CBJ to ask Goldbelt, others about taking over operations at Eaglecrest
- Mark Sabbatini
- 57 minutes ago
- 4 min read
City cannot sell financially struggling ski area, mayor says, but city leaders asking Native corporation if it wants to run summer and/or winter operations on the mountain
By Mark Sabbatini
Juneau Independent
This story has been updated to note the Assembly voted to postpone a decision about changing the authority of Eaglecrest’s board of directors, not on the proposed change itself.
City leaders said Monday night they are asking Goldbelt Inc. and other entities about taking over operations at the financially struggling Eaglecrest Ski Area.
"We met today with Goldbelt and we will be submitting an official request per direction from the Assembly at (a previous) joint meeting, and that request is to look at what Goldbelt could provide for assistance with both the gondola and the ski area," Katie Koester said during a Juneau Assembly meeting Monday.
In addition, Mayor Beth Weldon said that after discussing the matter with Eaglecrest board members "we're also going to look at other people that might be interested in running Eaglecrest." In a text message to the Juneau Independent on Tuesday she stated those entities could include "other ski resorts or someone interested in summer operations."
Such an agreement would be a landmark change for the city-owned ski resort that is celebrating its 50th season of operation this year.
Eaglecrest’s operations have been subsidized by the city for many years and, with financial losses increasing and the mountain’s infrastructure aging, officials are hoping an expansion into year-round tourism can make the resort profitable. However, a gondola intended as the centerpiece of that plan is proving far more costly and complex to install than planned, with an Assembly decision on its fate possibly looming at an April 1 meeting with Eaglecrest leaders.
Goldbelt agreed in 2023 to provide $10 million toward the installation of the gondola in exchange for a share of revenues for at least 25 years, with a minimum payout of $20 million. However, a possible installation cost of $27 million — and total project cost of $37 million — was discussed during a joint meeting of Assembly and Eaglecrest officials last week. That prompted suggestions the Juneau-based Native corporation be asked if it would be willing to provide additional funds in exchange for additional revenue.
Goldbelt President and CEO McHugh Pierre did not immediately respond to inquires Tuesday morning from the Juneau Independent. Goldbelt, which is projecting about $550 million in gross revenue this year, is already investing heavily in tourism on Douglas Island with a two-berth private cruise dock it hopes to open to hundreds of thousands of passengers in 2028. It has widespread operations and developing projects elsewhere, including partnering on the proposed Cascade Point Ferry Terminal on land the company owns.
City studies have shown the gondola has the potential to make Eaglecrest profitable year-round. A report presented to the Assembly last week projects the ski area can break even by 2034 and generate a $1.5 million surplus for Eaglecrest by 2038, assuming the gondola begins operating as hoped by May of 2028. Among the uncertainties are the lifespan and maintenance costs of the used gondola purchased from an Austrian ski resort, along with how many people will want to ride it at what ticket price.
Having Goldbelt buy Eaglecrest has been suggested by some skiers, but Weldon said after Monday’s meeting that isn’t an option.
"We can’t sell it because of the type of land it is," she said.
Eaglecrest, located on 640 acres of city-owned land, is surrounded almost entirely by U.S. Forest Service and Alaska Department of Natural Resources land parcels.
The discussion about having Goldbelt or another entity take over Eaglecrest occurred while the Assembly was considering an ordinance to demote Eaglecrest’s board to an advisory role.
Weldon, who proposed the change in January due to concerns about sudden changes in top leadership and ongoing operational struggles, said at the time she was seeking more direct city management of the ski area because "some of us are trying to save Eaglecrest and this is about the only way to save it."
However, on Monday she asked that a decision on the board’s status be postponed for six months because "there's just a lot going on and I don't think now is the time to tackle this issue with the board since we're tackling so many other issues." The motion to delay passed with unanimous approval.
In addition to a pending decision about whether to proceed with the gondola, Eaglecrest is also in the process of hiring a new general manager.
Furthermore, Weldon said, the question of who will be in charge of operations at Eaglecrest will affect "whether we're even going to have a board or not."
• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.
