NOTN- The Juneau Assembly has voted to unwind its controversial gondola deal at Eaglecrest at tonight’s assembly meeting.
Members approved the ordinance to enter negotiations to terminate the revised revenue sharing agreement with Goldbelt and stop the mounting 7% interest charges on the gondola investment.
A follow-up measure, appropriates $12.2 million to repay Goldbelt’s $10 million, plus interest. Both votes passed 8-1, with Assembly Member Nano Brooks in opposition.
Finance Director Christine Woll argued that continuing to delay would only add nearly another $1 million in interest.
“I think we’ve been over where we are with the project and why we can no longer afford to move forward.” She said, “I think we should continue to talk to Goldbelt about the future of Eaglecrest. I think there’s plenty of things that we’ve discussed that could be mutually beneficial in a future partnership, but there is a lot to figure out if that goes forward, and I don’t know why we would do that while there is interest continuing to accumulate. By my math, it would be almost another million dollars if we were to spend a year going down that road, and we would be doing it under duress, because we want to do it quickly.”
The Assembly also took a major step toward buying out the repeatedly flooded homes along View Drive in the Mendenhall Valley.
Members approved $558,000 from the general fund to plan a buyout program with the U.S. Department of Agriculture’s Natural Resources Conservation Service. The money will pay for backdated appraisals and cost estimates to demolish homes and restore the land to a natural state.
“Each individual homeowner would have a decision to make as to whether or not they would participate in the buyout program.” Said Deputy City Manager Robert Barr, “There would be a real estate transaction that would occur, NRCs would pay 75% of that appraised value of the house. They will also pay 75% It’s a little bit more complicated than that, but in general, they would also pay 75% of the project costs to demolish and return those properties to that natural state.”
Residents could also publicly testify, using their time to warn city leaders against deep cuts to recreation and to question the future of Telephone Hill development.
Public testimony in the hour prior to the passage of terminating the gondola deal, focused on Eaglecrest and the city’s budget shortfall. Supporters called Eaglecrest a cornerstone of Juneau’s livability and a key reason families stay.
“I came to Juneau in 1971 when I was 23. I learned to ski and met my husband at Third Cabin before Eaglecrest. When we had children, skiing became something of a family thing we did on Sundays, because it was much cheaper on Sundays. And Eaglecrest has always been more affordable than any area down south. Our kids grew up skiing, and I really attribute those years at Eaglecrest with helping our children grow up with grit, a love for the outdoors, learning time management when they started traveling with the ski team, and having a sport that helped to create healthy adults.” Said longtime skier and testifier Sharon Denton, “I honestly can’t imagine a winter in Juneau without Eaglecrest. I thank you for funding to keep it going next year, but we have to look further.”
Several speakers also challenged the city’s approach to Telephone Hill.
Larry Talley and Mary Alice McKeen cited the city’s own market analysis, arguing the proposed housing project would require tens of millions in subsidies and a per-unit funding gap far above Juneau’s normal affordable housing support.
“From what I know, the proposed development on Telephone Hill of 155 units with 25 affordable is not financially feasible. The first question in the City Manager’s Telephone FAQ was, ‘why is CBJ moving forward with evictions and building demolition without a developer in place?’ And the answer was, quote, ‘Telephone Hill has been carefully analyzed through the market analysis, and the Assembly has chosen to develop the property.’ She did not cite any specific numbers or pages from that market analysis.” Said McKeen, asking of the RFQ, “How many units will be built if the development plan goes forward as proposed? How many units will be affordable? And the most important question, How much public subsidy will be required? The maximum subsidy in the Juneau Affordable Housing Fund is $50,000 If the gap for this project is greater than $50,000 the project should not go forward.”
Separately, the city is actively working to craft next year’s budget, as well as Eaglcrest’s budget.
The city must finalize the budget by June 15, there will be another opportunity for public testimony on June 8.
