Eaglecrest gondola may cost $37M, Juneau Assembly hears

Published 2:05 pm Monday, March 9, 2026

Eaglecrest’s Board of Directors announced at a Juneau joint assembly finance committee meeting on March 4 that the new gondola may cost $27 million to install. Plus the $10.9 million Eaglecrest has already spent, it could be a total cost of $37 million.

“That requires a reset,” Board Member Jim Calvin said of the increased installation cost at the meeting. “It’s unlikely we’re going to get this thing down to the $20 million level.”

The $27 million price tag is not final. But it indicates the gondola will cost more to install than expected. Special Projects Manager Craig Dahl said in an interview with the Empire that he and Eaglecrest’s Board will meet with the general contractors to “see what we can do.”

Dahl will present a final estimate on the installation costs for the gondola to the Juneau Assembly on April 1.

Three solutions for the increased price were discussed at the meeting on March 4. Either Goldbelt Inc. will invest more in the project, the project will not be completed or another company will invest in the project.

The Juneau based Native corporation Goldbelt Inc. has already provided $10 million for gondola installation costs, which the city may have to repay with interest if the gondola is not operating by May of 2028.

One reason for Goldbelt’s interest in the project may be the two berth private cruise ship dock it plans to build on the west coast of Douglas Island. The gondola would serve as a tourist attraction for eager cruise ship passengers.

Another reason is the return on investment. In exchange for its $10 million, Goldbelt will receive 10% to 25% of the gondola’s gross revenue for at least 25 years. Eaglecrest would pay Goldbelt, at minimum, $20 million in return for the original investment.

When asked what new deal would be made with Goldbelt or another investor, Dahl replied, “We’re looking for additional investment, and if that results in a new agreement I can’t speak to that.”

“Whatever we come up with, we want to make sure Eaglecrest stays open and operational for the community,” Dahl said. “The ultimate goal is that we want to see Eaglecrest remain a local ski area.”

The problem with ending the project is the “sunk” cost. Eaglecrest has already invested $10.9 million in the gondola. This includes the purchase of two gondolas in Europe: one being refurbished in Colorado, and the other awaiting transport to the United States in Austria.

Still, about 70% of the funds for the gondola remain to be spent or saved. A 50% steel tariff will increase transportation costs for the gondola in Austria by nearly $1 million, and these costs may be further exacerbated by increased oil prices due to the war in Iran.

Eaglecrest’s gondola project was controversial at its genesis. The reason Eaglecrest pursued the project was the expectation of increased revenue during the summer.

“There are 8,000 to 12,000 people that want to do something here in June,” Dahl said. “The expectation was for that excess revenue to help Eaglecrest stop drawing down general fund money from the city.”

Tourists from cruise ships, like Goldbelt’s proposed port on Douglas, would be driven to Eaglecrest and use the gondola to explore the mountain. One report, presented to the Juneau Assembly on March 4, predicts the ski area will be profitable by 2034 if the gondola begins operating on schedule in May of 2028.