Cancellation of Eaglecrest gondola deal, $12M refund to Goldbelt gets final Assembly OK

Mark Sabbatini
May 18
3 min read

City leaders’ next steps for ski area include proposed budget for next season that cuts staff 44%, selling gondola at a projected loss, determining if long-term operations are feasible

By Mark Sabbatini

Juneau Independent

An agreement for the installation of a used gondola at Eaglecrest Ski Area was officially ended by the Juneau Assembly on Monday night, with members voting 8-1 to cancel an agreement and repay Goldbelt Inc. more than $12 million in funds the Alaska Native company provided for installation plus interest.

The vote comes two months after Assembly members were told the gondola, originally estimated in 2022 at a total cost of $9 million, could be as much as $37 million. Assembly members said that made the project too expensive for the city.

Goldbelt provided $10 million for installation of the project, of which about $2.7 million is still available, so the Assembly’s vote Monday means about $9.5 million in general funds will be spent for the repayment. City administrative leaders have said the repayment will likely deplete most of the unrestricted fund balance expected by the end of the fiscal year that starts July 1.

The agreement with Goldbelt stated the gondola needed to be operating by May 1, 2028, or the company could seek repayment. Assembly Member Nano Brooks cast the lone dissenting vote on Monday, arguing keeping the agreement alive would allow the city to continue to explore options, including a possibly different arrangement with Goldbelt, while not draining the city’s fund balance.

"I think with the current circumstance and direction that we gave Eagecrest, and everyone knowing that it's an all-hands-on-deck type situation, I think letting things go for one more year to see what comes of it would be in the better interest," he said. "I know that the interest will gain during that time, but we have the possibility of not depleting our fund balance, and having a little bit of grace for these tough times and this current year."

Assembly Member Christine Woll said that while some type of agreement with Goldbelt about the gondola and possibly other operations at Eaglecrest may be feasible, it doesn’t make sense to have those discussions while the current agreement is in place.

"There is a lot to figure out if that goes forward and I don't know why we would do that while there is interest continuing to accumulate," she said. "By my math it would be almost another million dollars if we were to spend a year going down that road — and we would be doing it under duress because we want to do it quickly. And so I think we should do it carefully and on equal footing with Goldbelt, and so the only way we get there in my mind is we end this agreement and we try again, if that is the will of both parties."

The Assembly is also moving toward selling the gondola and extra parts, hoping to recover a portion of the more than $6 million spent on purchasing, shipping and other costs.

The cancellation adds to the questions about Eaglecrest’s future since the city-owned ski area has operated at a loss for many years, and officials supporting the gondola said it would be the key to an expansion into profitable year-round tourism based on traffic from cruise ship passengers.

The Assembly is scheduled during the coming weeks to finalize the ski resort’s budget for the coming year, with members at a Finance Committee meeting last Wednesday advancing an "absolute minimum requirements" spending plan that would result in a 44% staff reduction.

About 15 residents offered public testimony during Monday’s meeting expressing support for Eaglecrest, with virtually all urging the Assembly to provide enough funding to ensure the ski area can continue operations. Several also spoke about the gondola, with all but one asking the Assembly not to abandon the deal with Goldbelt.

Liam Carnahan, who lives in North Douglas near Eaglecrest, said the ski area shouldn’t suffer as a result of the Assembly making a poor choice by purchasing the gondola making the agreement paying 7% interest to Goldbelt.

"It's really the Assembly that's brought this unfortunate situation to bear, and I understand you're making the hard choices to figure out how to come out of this, but again don't blame Eaglecrest for things that are outside the control of Eaglecrest," he said.

Molly Emerson, testifying in favor of canceling the Goldbelt agreement, called it a $2.7 million mistake due to the interest owed, but "the city can take that and learn from it."

"I don't know if there's anything you can do with the gondola at this point, but I would encourage the city to approve the ordinance, move forward, cancel the (agreement) and think creatively about the future," she said.

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.