Manager recommends terminating Goldbelt RSA; assembly introduces ordinance and appropriation by unanimous consent
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Summary
City staff recommended terminating the gondola RSA with Goldbelt and appropriating funds to exit the agreement; the assembly approved introduction of ordinances to terminate the RSA and appropriate $9.5 million of fund balance plus $2.7 million in project funds to cover repayment and contingencies.
The city manager briefed the Committee of the Whole on April 13 about options for the stalled Eagle Crest gondola project and the RSA with Goldbelt. The manager reported the city is accruing roughly $70,000 per month in interest on the outstanding balance, that repayment due May 1 would be roughly $12 million, and that about $3.3 million remains in the project account but that open purchase orders and obligations reduce immediately available funds.
The manager outlined three broad options: terminate the RSA and pay Goldbelt with available fund balance; liquidate the gondola parts and market them to recover some value (industry estimates ranged from about $1.5 million to $2.75 million, though staff cautioned recovery is uncertain and storage and marketing costs apply); or keep pursuing negotiations with Goldbelt about land or operational trades and potential continued investment. The manager recommended appropriating $9.5 million of fund balance and allocating about $2.7 million of remaining project funds to terminate the RSA while retaining funds to cover ongoing obligations and potential disposition costs.
Assembly members pressed for detail on storage and disposition costs (the manager estimated roughly $500,000 for several months of storage in Austria and additional costs to market and ship towers), the valuation of parcels Goldbelt had shown interest in (appraisals in the packet included a ~$3.0 million valuation for one site and ~$650,000 for another), and alternatives such as trading land or waiving lease fees. Staff emphasized that negotiating a land trade or operational transfer would take time and involve other boards (Eagle Crest, Docks and Harbors) and that those conversations did not yet constitute authority to transfer land.
Mayor Weldon moved to introduce ordinance 2026‑18 terminating the RSA with Goldbelt and an appropriating ordinance for $9.5 million in fund balance plus $2.7 million in remaining gondola project funds; she asked for unanimous consent to introduce at the April 29 meeting. No member objected and the assembly approved introduction of both ordinances by unanimous consent. The measures will return to the assembly for final action on the proposed schedule.
