Eaglecrest expects $6M loss over three years, twice the estimate of a year ago, as decision about gondola looms

Officials still forecast ski area will overcome its debt with profitable operations if gondola opens; repairs to chairlift and water main, plus low ticket sales, are hurting current finances

Eaglecrest Ski Area in a screenshot of a video shared by the resort on its Facebook page on Saturday, Jan. 3, 2026. (City and Borough of Juneau image)

By Mark Sabbatini

Juneau Independent

Eaglecrest Ski Area expects a deficit of at least $2 million during the current fiscal year and the same amount for each of the following two years, twice as much as predicted a year ago, as the resort faces a monumental decision within a couple of months about proceeding with a gondola seen as the key to its financial future.

A report presented to Eaglecrest board’s finance committee on Monday night projects the ski area will have a negative fund balance of between $7 million and $8 million as of June 30, 2028 — about two months after the gondola begins operating if it opens by its current deadline. An economic analysis published for the city in December of 2024 projected deficits averaging about $1 million during the three-year period, but also detailed numerous alternative scenarios based on levels of infrastructure work and funding support from city leaders.

Jim Calvin, a board member presenting the most recent report, said revenue this year is down sharply during what’s been a difficult season and Juneau Assembly members are likely to raise serious concerns about ski area budgets they’re being asked to approve during the next two years.

"The long-term numbers still look good that there could be significant gondola-related revenue surpluses, but it’s not going to happen overnight," he told the committee and other Eaglecrest leaders.

However, a big "if" is whether the Assembly will give the go-ahead to complete installation of the 20-year-old gondola purchased from an Austrian ski resort once an estimate of that cost is provided by a general contractor. A joint meeting of Eaglecrest leaders and the Assembly Finance Committee is scheduled March 4, which matches with the timeline for when resort officials have said they expect a decision.

"What's most important for me for this is to understand the trajectory of our fund balance and ask that we will be making of the Assembly," Calvin said. "We need to be very transparent with them that we will need a lot of further support in terms of allowing further negative fund balance before we get to gondola revenues. And it just needs to inform our thinking about if there's no gondola — what is our path forward if the price tag on the gondola proves to be too high? We'll have an important reset coming as we think about how to come up with a sustainable budget going forward."

The city-owned ski area has operated at a loss for many years, but the Assembly has subsidized operations — and in recent years said they're willing to continue doing so on the assumption the gondola will allow Eaglecrest to operate profitably by expanding into large-scale summer tourism. But Christine Woll, chair of the Assembly’s finance committee, said in an interview last month that if the gondola doesn’t proceed it’s unlikely the ski area will get future budgets approved that have a negative fund balance.

"It doesn't mean that we won't subsidize Eaglecrest in the future, but they can't run a negative fund balance," she said.

Both Eaglecrest and Assembly leaders have said the current expectation is the gondola project will get the go-ahead.

Eaglecrest is celebrating its 50th year of operation, but the season has gotten off to a rough start due to a broken water main on Dec. 19 that has left the base lodges without indoor plumbing and food/beverage services, and ongoing repairs to the Ptarmigan lift that accesses the top of the mountain.

Estimated repair dates for the water main and Ptarmigan lift were not available from Eaglecrest officials on Tuesday, but board members said Monday indications are the chairlift will open soon.

Season pass sales are down about 40% this year compared to last year — and last year’s sales were down about 20% compared to fiscal 2022, Calvin said.

Eaglecrest’s budget and a gondola update are scheduled to be discussed when the full board meets at 5:30 p.m. Thursday.

Short- and longer-term fixes for the ski area’s woes were discussed by finance committee members at Monday’s meeting.

"I was going up Hooter a couple times on Sunday when they were putting the pads on the Ptarmigan seats, and people were getting super stoked," said Brandon Cullum, the committee’s chair. "So that and some positive news with the porta-potties, might just turn some people around."

A complicating factor cited by some members is the Assembly is facing significant cuts to budgets for the coming year and beyond, due to tax cuts passed by voters during last October’s election. Assembly members said before and after the election that recreational programs such as libraries and the ski areas would be likely targets for cuts instead of more crucial functions such as public safety and infrastructure.

Hannah Shively, an Eaglecrest board member, said that means Eaglecrest leaders are facing difficult options for "responding to the voters of Juneau who are not willing to provide funding for services."

"The one thing that we do know that we probably will be asked to do (by the Assembly) is significantly raise ticket prices," she said. "And I know that in the past we're trying to find that tip-over spot between where revenue rising means that less people buying passes, so revenue falls. And there's consternation about whether we've hit that point already or not."

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