Juneau’s beloved city-owned Eaglecrest Ski Area is embroiled in controversy over a gondola project and its price tag, which has ballooned to a potential cost of as much as $37 million.
That has left city leaders and the ski area’s board scrambling to find ways to make the millions of dollars in unexpected costs pencil out. Now some are worried the situation could threaten the existence of the ski area itself.
KTOO’s Clarise Larson spoke with Alaska News Nightly host Casey Grove about the situation and what’s at stake.
This interview has been lightly edited for length and clarity.
Casey Grove: When did this idea of purchasing a gondola first come up, who was behind it, why did they want it, and how was the project described at the time?
Clarise Larson: The idea came up back in late 2021 and early 2022, under a different general manager of the ski area and the board of directors, and different members of the Juneau Assembly.
The gondola is used, it’s about two decades old and was purchased from a ski resort in Austria. At the time, Eaglecrest officials asked the Assembly to basically fast-track the purchase of it before the window closed, saying it was a rare opportunity.
So, the Assembly did. They greenlit the purchase back then for about $2 million, and the project was estimated to cost under $10 million. But, recent preliminary construction estimates now clock it in at potentially costing up to $37 million instead, and that’s only preliminary. We will learn more about the breakdown of the costs next month.
Casey Grove: That’s quite a difference. Were there concerns about the cost from the beginning? What did gondola boosters say about that?
Clarise Larson: Of course there were concerns. A lot of residents and some Assembly members were really hesitant about the purchase and how quickly it was made.
At the time, Eaglecrest Ski Area officials argued the gondola would be the cornerstone of concepts for expanding summer operations and end the need for local taxpayers’ support of the city-owned ski area as it continues to age and needs some major infrastructure updates for its current lifts.
But now with the new cost estimates, city officials and the Eaglecrest board are scrambling to find a way to pay for it without running the ski area itself into the ground.
Casey Grove: Wow, yeah. It seems like there were some unforeseen problems along the way. Can you describe those for us?
Clarise Larson: Yeah, some seen, some unseen. But for example, the gondola is from Austria, so shipping it was obviously going to be expensive, and then the Trump administration’s tariffs went into place and the price for shipping some parts really escalated.
Also, the project needed a lot of additional parts that weren’t expected. The board also made the decision to ship the gondola carts from Juneau to Colorado for refurbishment, again adding to the cost. And just the overall environment of high labor and construction costs has really skyrocketed the cost to install this gondola.
One thing to note is that Goldbelt Incorporated, a local Alaska Native corporation, invested $10 million in the gondola in 2022 in exchange for a revenue-sharing agreement. But obviously now with the updated estimations, that’s simply not enough anymore.
Casey Grove: What has happened more recently with the ski area’s board and management?
Clarise Larson: Well since 2022, Eaglecrest has had two general managers leave, or asked to leave by the board, since the gondola was purchased, and its board is actively hiring a new general manager.
The board itself has also had two chairs step down during that time, so having stable leadership throughout this project’s lifespan has been difficult.
Casey Grove: Are people worried about Eaglecrest’s future because of all this?
Clarise Larson: Absolutely. In my reporting, the Juneau Assembly and Eaglecrest board have been having very candid in public meetings about the fact that this situation could very well threaten the existence of the ski area as a city-owned entity. Right, this is owned by the City and Borough of Juneau.
Right now, they’re fielding a lot of options to prevent that, like asking Goldbelt and other major investors to help pay for the additional millions that they’re having to cough up. But nothing is off the table and they could very well decide to abandon the project altogether despite already sinking roughly $11 million into the project.
Casey Grove: That sunk cost they talk about. Will the gondola ever be built?
Clarise Larson: That’s kind of the golden question. As it stands, the revenue-sharing agreement with Goldbelt stipulates that the gondola must be up and running by May of 2028. However, that is unlikely, given the current financial uncertainty. There’s going to be much more robust discussion and financial overview of the project on April 1 where the Assembly and Eaglecrest board will meet again to figure out a path forward for “Will this gondola be built or not?”
