Cascade Point Ferry Terminal work delayed beyond 2026 due to US Army Corps of Engineers mandates

Federal officials want more details from the state about the terminal and its support infrastructure before allowing site preparation to proceed

Cascade Point, where work on construction of a proposed state ferry terminal has been postponed until after 2026. (Screenshot from Alaska Department of Transportation and Public Facilities video)

By Mark Sabbatini

Juneau Independent

Construction of the Cascade Point Ferry Terminal is being delayed beyond 2026 due to permitting issues raised by the U.S. Army Corps of Engineers, according to a notice published this week by the state.

Site preparation as the first stage of the project was scheduled to begin this summer and continue into 2027. However, the Corps of Engineers wants more complete information about the second stage of the project — the terminal and supporting infrastructure — before work begins, according to the notice issued Tuesday by the Alaska Department of Transportation and Public Facilities.

"This refined direction from the USACE and the Department’s commitment to honor the permit process necessitates delaying proposed construction until after 2026," the notice states.

Sonny Mauricio, a DOT spokesperson, stated in an email to the Juneau Independent on Thursday the length of the delay to the project’s timeline is unknown.

"A more specific timeline depends on completing the requested Stage 2 design details and the subsequent federal permitting and Tribal consultation process," he wrote.

DOT submitted a project application to USACE for Stage 1 work and a preliminary for Stage 2 on Feb. 2, according to the notice. The USACE, after reviewing the application, mandated "all design information for Stage 2 also needs to be included in the permit application."

"This new direction requires the completion of further Stage 2 details that are in design development for this spring and summer," the notice states.

Stage 2 is currently at 35% design in the developmental process, according to a state DOT website for Cascade Point.

The proposed terminal about 30 miles north of the current Auke Bay Ferry Terminal is the subject of multiple controversies, including a $28.5 million agreement signed by the state last July for first-stage work. The Dunleavy administration’s motivations for signing the contract were questioned by officials and regional residents, since it occurred days after the ferry system’s oversight board said the state had not proven the project’s economic viability.

Ongoing opposition to the terminal is largely focused on the belief the primary motivation of the project is providing an ore shipping site for a nearby proposed gold mine. There are also concerns it will cause further hardships for Alaska Marine Highway System riders who have already been subject to various scheduling cancellations due to budget and maintenance issues.

The Cascade Point website states the project’s intent is "shortening ferry routes, reducing travel times, and lowering operating costs" for people in Juneau, Skagway and Haines. A DOT report issued last fall states the terminal will have offsetting impacts on the ferry system, but will be an asset to the mine as well as Goldbelt Inc.’s prospects as the property owner of the terminal site and a partner in the project.

A reference that appears to refer to Goldbelt as an Alaska Native corporation, as well as other possible partners, is included in the DOT notice issued this week that refers to following the direction set by the USACE.

"A highly important part of that process is the engagement and consultation with our Tribal partners," the notice states. "The department will closely collaborate with Tribes and together will strengthen the protection of cultural resources. The USACE approves the start of the consultation process with the Tribes once they deem the permit application ready."

Goldbelt did not immediately respond to a request for comment by the Juneau Independent on Thursday afternoon.

A statement supporting the delay was issued Thursday by the Southeast Alaska Conservation Council

"We’ve been critical of the order of operations of this project — contracts awarded before public comments, plans to break ground before tribal consultation — so this update about the U.S. Army Corp of Engineers requiring Phase 2 details to be included in the permit application before they can move forward and the State of Alaska committing to conduct the environmental process as law requires feels like a necessary course correction, though intervention and correction shouldn’t have been required," SEACC Executive Director Maggie Rabb said in the prepared statement.

The DOT notice states additional public meetings involving both stages of the proposed terminal will be scheduled. A 10-week public comment period that ended in January saw 92% of the 622 respondents opposing the terminal.

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