Juneau, Alaska — After a surprising cost estimate for its stalled gondola project, all options are on the table for the future of Eaglecrest Ski Area.
This season featured maintenance issues, a lodge closure due to water issues, staffing gaps, the resignation of the General Manager, and departures from the Eaglecrest Board. Thankfully, the past month or so has been smoother sailing for mountain operations, aided by snowy conditions. It’s been so snowy that Juneau’s airport set an all-time snow record this winter. If you’re looking for a last-minute spring skiing trip idea, tell them we sent you.
However, challenges remain for its future, including a large deficit and needed maintenance projects.
The Problems
Over the past month, there have been a few updates on the future of Eaglecrest.
The first important matter is the cost of the gondola. Originally estimated at around $9 million for acquisition and installation, the gondola’s installation is now projected to cost up to $27 million. The City of Juneau, which owns Eaglecrest, has already spent $10.9 million on the gondola project. This could lead to the project costing up to $37 million to complete. This new estimate shocked local officials, ski area leaders, and the community in general. One idea is to call on Goldbelt to increase its financial investment in the project. Alternatively, a third-party could chip in. Having previously put down $10 million, they are set to receive a share of ticket-sale revenue if it opens. The next meeting on the gondola project is scheduled for April 1st.
To make matters worse for the gondola, there was a hiccup in the delivery of the cabins. Plans for repairs this winter by a Colorado firm were complicated when they were put on their sides rather than standing upright. Because of this, an inspection was needed to determine whether they were okay to use. Early indications suggest they aren’t damaged.
The second issue the City of Juneau is concerned with is whether the ski area is a sustainable business, given its deficit. According to the Juneau Independent, city leaders have called for creating a plan to allow third-party companies to operate the ski area, either solely in the summer, in the winter, or year-round. The ski area can’t be sold outright, but could be operated by a third party.
One option could be Goldbelt, which has various investments in the area and is a financier of the gondola project. Goldbelt does plan on growing its presence on Douglas Island, which is home to the ski area. It’s currently building a dock for two cruises at a time, which is expected to open in 2028.
“We met today with Goldbelt and we will be submitting an official request per direction from the Assembly at (a previous) joint meeting, and that request is to look at what Goldbelt could provide for assistance with both the gondola and the ski area,” said Katie Koester, City Manager, to the Juneau Assembly earlier this month.
Goldbelt didn’t have any comments for local media outlets about investing more money in the development or becoming the operator of the ski area.
The third part of the dilemma is whether the Eaglecrest Board, which guides the decision-making at the ski area, should lose its authority due to the recent missteps at the mountain. Earlier this year, the Mayor said that it seemed appropriate to take away their power. However, KTOO reports that they have delayed this decision until September.
An East Coast Example For What Could Come Next
How the situation has evolved reminds me of my local mountain. Mount Sunapee in New Hampshire was state-owned and operated for decades. Over time, its aging infrastructure couldn’t keep up with inconsistent New England conditions, resulting in financial losses. Pondering whether to close it, they requested that a third party operate it. The Mueller family, who operated Okemo and eventually Crested Butte, took over operations.
In their two decades running the place, they installed several lifts, built a new base lodge, upgraded the snowmaking infrastructure, and made it a four-season destination. During their tenure, Sunapee became well-regarded for its snow quality and grooming. They ended up selling to Vail in 2018. While Vail hasn’t been as great a steward as the Muellers, they still do a pretty good job overall.
Ultimately, the point of that tangent is that the government can be a good operator of ski areas if it invests in them properly, but when extensive upgrades are needed, a third-party operator can be the right move.
Image/Video Credits: Eaglecrest Ski Area
