Goldbelt, Inc., offered to invest in the gondola systems the City and Borough of Juneau purchased from Austria for Eaglecrest ski area. This week’s assembly meeting saw Goldbelt and the assembly discuss what this deal might look like.
They are currently working on a revenue sharing arrangement. So far, the city has spent more than $2 million. Goldbelt will contribute $10million to the project. It would receive between 10-25% of the gross revenue that the gondola generates.
The agreement lasts for 25 years. Goldbelt will receive a portion of ticket sales profits over that period, with the goal of getting $20,000,000 back from their investment. The agreement can be extended by Goldbelt and the city if it takes more than 25 years.
According to the agreement, the gondola’s opening day will be May 31, 2027. Goldbelt has the right to withdraw if that doesn’t happen.
In the first year, the proposal is to attract 75,000 people to the gondola. This is about 750 people per day in the summer months. Rorie Watt, Juneau’s city manager, said that he believes a partnership with Goldbelt could help achieve this number.
span style=”font weight: 400 ;”>” If it were CBJ alone, I wouldn’t be very comfortable,” he stated.
He referred to Goldbelt’s tram-operating experience and stated, “I think [it] is] quite plausible, but small, really, when you consider the number of visitors that have come.”
McHugh Pierre is Goldbelt’s president, CEO and chief executive officer. He said that the gondola at Eaglecrest provides future visitors something that the Mt. Roberts tram doesn’t offer more access to outdoor activities.
span style=”font weight: 400 We’re not going mountain biking on Mount Roberts. Pierre stated that Goldbelt Tram will never allow this. “But we could imagine in the future where your mountain bike might be used to descend Eaglecrest. These are just a few of the things we love .”
Pierre stated that he believes this partnership will succeed.
He said that he believes this is a great opportunity to take part. “We believe that 75,000 visitors per year is possible .”
Pierre predicts that tickets will be around $100
Next step in the gondola project will be to introduce an ordinance to Congress on December 12, followed by public comment in January.
