City leaders considering third-party management of recreational facilities due to budget constraints

Options for groups and companies that could oversee facilities such as pools, ice rink, arboretum and field house to be presented to Assembly on Monday

Juneau-Douglas High School: Yadaa.at Kalé’s Paxton Mertl and Drew Cadigan-McAdoo work a drill during a Crimson Bears practice at Treadwell Arena on Nov. 19, 2025. (Klas Stolpe / Juneau Independent)

By Mark Sabbatini

Juneau Independent

Closing city-owned recreation facilities to cope with a budget shortfall was considered and largely rejected by the Juneau Assembly this spring. Now they are looking at the potential savings of having a third party operate some of those facilities, but among the concerns are if that will result in users paying more.

Options for sites such as Juneau’s two public pools, the Dimond Park Field House, Treadwell Arena and the Jensen-Olson Arboretum are scheduled to be presented to Assembly members during a Committee of the Whole meeting on Monday evening. Because it is a work session no public testimony will be taken and the Assembly cannot enact any official changes, although a decision to further pursue such changes is permissible.

A third-party agreement for one or more facilities is likely to be complex due to questions about the qualifications of interested parties and the city’s legal responsibilities since it will still own the sites, according to Marc Wheeler, parks and recreation director for the City and Borough of Juneau.

"There are significant challenges associated with third-party management of each of our Parks and Recreation facilities," he wrote in a memo to Deputy Mayor Greg Smith. "If we could secure adequate management without needing General Fund support, this would benefit the overall CBJ budget. If the Assembly wants to pursue a third-party model for any facility, it will likely take significant time to iron out details of a transfer, including who is responsible for capital maintenance, liability, and how to guarantee an adequate level of equitable public access. In the meantime, we must care for our existing staff and facility users to ensure continuity of operations and employee stability."

One of the primary challenges is the high fixed costs at each facility, Wheeler wrote. Using general funds to subsidize costs "allows us to provide services to the community at reasonably accessible rates and schedules."

"Giving up control undermines our ability to protect these public benefits," he added.

A range of parks and recreation fee hikes were implemented as of July 1 as part of the Assembly’s efforts during the past budget cycle to close its budget gap. But Assembly members have since noted the city is still facing an annual multimillion-dollar deficit with the budget as currently structured — along with major future costs such as glacial flood protection — and looking at a multitude of ways to resolve the gap.

The other major concern expressed by Wheeler is maintaining the facilities so they remain serviceable and safe.

"We have found enforcing contract provisions with even minor contracts, such as janitorial services, to be difficult," he wrote. "Without a serious commitment to taking management authority back for deficiencies, it would be challenging to ensure adequate facility maintenance to protect the lifespan of these public assets."

An assessment of individual facilities by Wheeler shows different levels of opportunities and challenges at each:

• Augustus Brown Pool and Dimond Park Aquatic Center: Juneau’s two pools are among the highest-subsidized facilities, with user revenues covering about 25% of their cost. Operations require technical expertise and the facilities have significant deferred maintenance needs. The YMCA of Alaska years ago expressed interest in management, which the Assembly could revisit, and the Glacier Swim Club "may

have the capacity to run this one pool at a very basic level."

• Dimond Park Field House: "There are a number of youth and adult user groups who use the facility. None of these organizations has the professional staff or organizational bandwidth to manage the facility," Wheeler notes. User revenues cover about 45% of its expenses. He notes that during this year’s budget process "a community member interested in exploring taking over the Field House. At the Assembly’s direction, we could revisit that conversation."

• Treadwell Arena: "The arena has the highest percentage of cost-recovery of any of the sports facilities – roughly 49%," Wheeler notes. "A number of youth and adult user groups use the facility. None of these groups have any professional staff or organizational depth to manage the facility."

• Jensen-Olson Arboretum: Several legal restrictions including a property easement and specifications on how commercial revenues can be spent make a third-party agreement difficult, according to Wheeler.

• Eagle Valley Center: The facility requires the least amount of general fund dollars, making it potentially appealing to third-party operators, Wheeler notes. Southeast Alaska Independent Living already has an agreement to operate an adjacent ropes course, and "has significant professional staffing and is a well-run nonprofit and may have the bandwidth to operate the facility."

The Assembly, as a separate agenda item, is also scheduled to get an update Monday about possible third-party management of the city-owned Eaglecrest Ski Area. City Manager Katie Koester, in a memo to Assembly members, states consideration of a partnership with an entity such as Goldbelt Inc. should wait until the completion of a strategic plan Eaglecrest is developing with the consulting company SE Group, which is expected to be completed this fall.

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