Juneau assembly directs staff to halt CBJ‑led Eagle Crest gondola project, draft ordinance to end RSA with Gold Belt

The Juneau City and Borough assembly voted to halt the CBJ‑led Eagle Crest gondola project and instructed staff to draft an ordinance to terminate the revenue‑sharing agreement (RSA) with Gold Belt, while exploring options to minimize direct cash repayment.

The motion, passed by a 6–3 roll call, directs staff to end CBJ project work in a manner that preserves City assets, prepare an ordinance to settle the RSA, and investigate alternatives to repaying Gold Belt strictly in cash. The assembly also asked the Eagle Crest board to continue searching for outside investors and to return with revised financial plans for the ski area.

Why this matters: City staff said the gondola has stalled amid leadership turnover, procurement delays and sharply higher construction estimates, leaving the borough exposed to mounting monthly interest and possible triggered repayments under the RSA. Special projects manager Craig D. told the committee that the City has already spent roughly $8.2 million on the gondola to date — about $5.5 million on the gondola equipment, $438,000 in salaries and about $2.3 million in engineering and design — and that a recent CMGC rough order of magnitude came in near $27 million.

“We have expended $5.5 million just on the gondola — the parts, the shipping, and the gondola itself,” Craig D. said during the AFC presentation, warning that additional tariffs and shipping charges could add materially to costs.

Assembly debate focused on the tradeoffs between ending the City’s role (and stopping the monthly interest accrual currently estimated at roughly $70,000 a month) and preserving options for Eagle Crest’s future. Several members urged caution until Gold Belt — the RSA investor partner — submits a formal written response expected after its board meeting; others argued the compounding interest and rising estimates required decisive action.

Assembly member Hugh Scandies, who moved the primary motion, said the direction was intended to stop new spending while staff and the Eagle Crest board pursue ways to retain value and explore investor solutions. “This is a hard pause and attempt to avoid as many costs as can be avoided,” she said during debate.

What the ordinance and next steps will do: Staff told the committee they would prepare an ordinance to appropriate funds as necessary to settle the RSA and formally terminate the contract; under the RSA’s terms the failure to meet the original delivery deadline would trigger Gold Belt’s repayment claim, which staff described in the meeting using different figures presented during the briefing (transcript references included $10 million and other estimates). Because numbers in the presentation and Q&A varied, staff said they will return to committee with refined estimates and the written response from Gold Belt before final action.

Schedule and follow‑up: The assembly directed staff to introduce the ordinance at a special assembly meeting on April 29, discuss it at a Committee of the Whole meeting on May 4 and hold the public hearing at the regular assembly meeting on May 18. In parallel the assembly directed the Eagle Crest board, working with the manager’s office, to present a revised financial sustainability model and an FY27 expenditure budget aligned with revenue plus a $930,000 general fund subsidy, and to examine capital investments and financing options to increase revenue and long‑term viability.

Claims and responses in the meeting: A public commenter, Deb Craig of West Juneau, criticized CBJ procurement and management decisions and warned taxpayers could be on the hook for a large bill; she urged the assembly to consider pausing the gondola and reallocating other projects. Staff and the manager traced the cost escalation to procurement timing, the late selection of the CMGC, tariff exposure, lost construction seasons, and earlier leadership turnover. Craig D. said pausing the project at the lowest cost — for example leaving some parts staged in Europe — is one of several viable options staff will study.

Numbers to note (as stated in the AFC presentation): the City has spent about $8.2 million on the gondola to date; staff modeled the total project cost in one scenario near $9.44 million (against roughly $12.7 million total funding reported earlier), while the CMGC’s rough order of magnitude was reported at about $27 million. Staff also reported a monthly interest accrual tied to Gold Belt financing of roughly $70,000. The presentation included varying repayment figures (staff described both a $10 million and an $8.7 million net repayment figure in the discussion), and the assembly directed staff to reconcile and return with precise numbers and the investor’s written response.

What the assembly did not vote to do: The assembly did not sell gondola cars or other assets immediately, and the motion as passed specifically directed staff to avoid incurring new costs and to preserve as much asset value as possible. Members left open the possibility that a third‑party investor (including Gold Belt) could still step in if the RSA is terminated and assets are held as part of a new deal.

The vote: Roll call on the final amended motion recorded six ayes and three nays: Yes — Hugh Scandies, Kelly, Atkinson, Mayor Weldon, Brooks, Chair Wall. No — Smith, Hall, Steininger.

The assembly also set a schedule to move quickly on the ordinance while the manager’s office and the Eagle Crest board continue to engage Gold Belt and potential investors. Staff advised members they expect to have a refined GMP (guaranteed maximum price) estimate from the CMGC and Gold Belt’s written response in late April, which will inform whether the ordinance proceeds to final passage.