Public Commenter Blames Management Turmoil for $12M Gondola Cost Surge

Public commenter Deb Craig blamed the City and Borough of Juneau for management turmoil that led to gondola project delays and warned taxpayers may face a $12 million shutdown cost during public participation on non-agenda items at an April 1 special Assembly meeting.

Craig told the Assembly that the gondola project cost increased since its 2023 approval because of the forced departure of General Manager Scanlon in May 2024. Construction could have started then but came to a hard stop, she said. The loss of competent leadership at Eagle Crest degraded the situation further, she said.

"The new general manager was unqualified, and although the general manager had significant direction from the CBJ, who also lacked ski area operations experience, he was unable to manage the ski area, let alone the gondola project," Craig said. "This resulted in the hire of a project consultant in May 2025."

Craig said CBJ procurement inefficiency led to more gondola project delays. Trump tariffs on materials worsened the situation, she said. Two construction seasons were lost.

"I really want to stress, Juneau taxpayers will be justifiably livid if they have to pay the $12 million tab on the gondola shutdown without careful, reasoned consideration," Craig said.

Craig questioned why Eagle Crest is expected to be self-sustaining when other CBJ recreational facilities are not. The Diamond Park Aquatic Center cost $15 million in 2010 and requires substantial ongoing maintenance and heating costs, she said. The Augustus Brown pool recently cost $8 million to renovate, she said.

CBJ carries the Zach Gordon Youth Center, the field house, the hockey rink, and the local trail system, Craig said. None of those facilities are self-sustaining, she said. Their cost recovery pales in comparison to Eagle Crest's almost 70 percent when functioning under competent management, she said, while Eagle Crest serves about 10 percent of Juneau's population.

"It begs the question why Eagle Crest is expected to be self-sustaining and how to afford the cost of the gondola," Craig said.

Craig said CBJ could explore cost-saving measures in other areas and reallocate funds. She cited $18 million allocated to renovate an office building to be used as an office building. The renovation is intended to enhance retention, she said. Employee retention research does not list a plush office in the top five reasons people stay, she said.

Craig also questioned $14 million budgeted for Jackie Renninger Park serving skateboarders. She asked what the number of users would be and whether it would generate income. The park includes an outdoor pickleball court while the Marie Drake Gym sits empty and is suitable for indoor pickleball year round, she said.