Juneau finance committee directs staff to pursue ending gondola agreement with Gold Belt and draft ordinance

The Assembly Finance Committee voted 6–3 on April 1 to direct staff to prepare ordinance language to end Juneau’s revenue‑sharing agreement (RSA) with Gold Belt Inc. and to pursue ways to avoid or reduce cash repayment while preserving municipal assets.

The action followed a presentation by Craig Dahl, special projects manager for the City and Borough of Juneau, who told the committee the project’s schedule and costs have slipped. Dahl said CBJ has expended about $8.2 million to date — including roughly $5.5 million for gondola acquisition and parts, $2.3 million in engineering and design, and $438,000 in salaries — and reported a construction rough order of magnitude of about $27 million. He warned the RSA requires the city to deliver a working gondola system by May 2028 and that failing to meet that deadline would trigger repayment of Gold Belt’s $10 million investment, which Dahl estimated at about $12.045 million as of the presentation and noted is increasing at roughly $70,000 per month in interest.

The committee debated three broad paths presented by staff: negotiate a revised development/operating agreement with Gold Belt, pause the project and leave equipment in Europe while seeking other investors, or stop the project entirely and sell assets. Dahl said pausing the shipment of parts could avoid an estimated $946,000 in immediate costs tied to staging and tariffs, but other near‑term obligations would remain.

Assemblymember Hughes Candies moved to direct staff to end CBJ’s active project involvement and to draft an ordinance to repay Gold Belt and exit the RSA. The motion was amended to instruct staff to investigate alternatives to pure cash repayment (for example, asset transfers or other compensation) and to ask the Eagle Crest Board to continue searching for other investors; that amended motion passed on a roll call vote of 6 in favor and 3 opposed.

Manager Kester told the committee the ordinance introduction could be accelerated but would require coordination with the city attorney and might use a special meeting; the Assembly later voted 5–4 to direct staff to introduce the ordinance at a special assembly meeting on April 29 for committee review and a public hearing on May 18.

Supporters of the motion cited mounting monthly interest and the need to stop further avoidable spending. Opponents said they were not yet ready to terminate CBJ involvement, citing pending refined cost estimates from the construction manager/general contractor and the possibility of renegotiation with Gold Belt.

The committee’s direction does not immediately sell the gondola cars or parts, staff said; rather, it pauses CBJ project work, preserves value where possible, and begins legislative steps to settle the RSA if a negotiated non‑repayment exit cannot be reached. The Assembly will receive draft ordinance language and additional analysis on repayment scenarios and asset options in coming weeks.

The committee also directed staff to continue working with the Eagle Crest Board on investor outreach while preparing the ordinance, preserving the option for a third‑party investor to pursue the project if that path emerges.

The committee returned to other agenda items after the vote; the ordinance introduction and subsequent public hearings will determine the next formal steps.