Who's steering: Public investment and the future of Juneau
- Guest contributor
- 1 minute ago
- 3 min read
By Clayton Dale
In Juneau, as we struggle to maintain our standard of living amidst competing interests and rising costs — we still find ourselves with uncontested local elections and manager-driven city policies-- policies which all too often subsidize private profit on our public dime.
We might find ourselves wondering who the heck is in charge? Who is it all for? Increasingly, it seems to be private entities, like Goldbelt Inc.
As Juneau grapples with the fate of public assets like Eaglecrest Ski Area, the line between partnership and corporate dominance is confused. A review of the historical record — from the Mount Roberts Tram to the Cascade Point Ferry Terminal — reveals a pattern where Goldbelt secures advantageous terms and profits on public investment while the community accepts the risks and foots much of the bill.
The original Mount Roberts Tramway lease tells the story well. Initially the lease included a profit-sharing agreement: a modest 1% to 3% of the revenue on top of a very low lease fee. Thus, the city was supposed to share in the benefit in exchange for what was then an unprecedented imposition on the local skyline.
Almost immediately though, after securing the lease, Goldbelt balked, refused to open its books and never paid any profit sharing. By the time the lease was renegotiated in 2015, the profit-sharing provision was gone. Instead, Docks and Harbors agreed to a modest lease rate that remained flat for years and years.
This pattern repeats. Goldbelt consistently secures below-market rates, often leveraging its status as a Native corporation to avoid scrutiny. The proposed Cascade Point Ferry Terminal, currently on hold, is indicative of the same methodology. The state signed a $28.5 million agreement for site work on Goldbelt's land — public infrastructure that a mining partner admitted is "highly advantageous" to developing a private ore terminal.
This strategy is also evident in Goldbelt's dual pursuit of a private cruise port and control of Eaglecrest. The corporation is developing a $500 million cruise ship port on Douglas Island, in partnership with Royal Caribbean. Simultaneously, the Juneau Assembly can't think of any other solutions for the financially struggling, city-owned ski area besides asking Goldbelt to take over. The vision is clear, vertical integration: tourists arriving at a private dock, shuttled to a gondola where Goldbelt holds the right to exclusive use, enjoying a "world-class destination" — while the city bears the cost and gives up its agency in shaping the future.
Goldbelt's shareholders are members of this community. Yet the corporation is pushing for unfettered tourism that overwhelms the local quality of life and is privately profiting from decades of public investment in cruise ship infrastructure. We all have to stop trading the livability of our community for short-term revenue.
From broken promises of tram profit-sharing to Cascade Point and Eaglecrest, to strong-arming the harbor board into advantageous lease agreements; the pattern is clear. The public absorbs the risk and infrastructure costs, while the company secures the bag. As the city administration considers handing over Eaglecrest, we must ask whether it is giving away a public treasure to an entity whose interests are not necessarily aligned with our well-being.
• Clayton Dale is a local business owner, and a member of the city’s Docks and Harbors Boards.
