Economy

Renters living in Juneau’s Telephone Hill neighborhood have until Saturday to vacate their homes before the city evicts them.  

That will clear the way for the city’s plan to demolish the houses in December and redevelop the area to build newer, denser housing there in response to the city’s housing crunch.

The evictions were originally slated for Oct. 1, but the city postponed them until this Saturday due to a legal hiccup. The evictions come after outcry by local advocates, who asked the city to halt them until it produces a clearer redevelopment plan. Right now, a developer has not signed on to the project. 

Advocates collected more than 800 signatures opposing the redevelopment plan ahead of the Juneau Assembly meeting on Monday. There, more than a dozen people testified in hopes of persuading members to reverse course and save the historic downtown neighborhood. However, no action was taken on the topic. 

The Juneau Assembly is slated to discuss the project and next steps for the redevelopment at a committee meeting on Monday at 6 p.m. The discussion will include the timeline for demolition and finding a developer, and will address several other questions about the project brought forth by advocates. 

A state plan to build a new ferry terminal north of Juneau is hard to justify on its financial merits but could pose long-term benefits, including more flexible regional travel and a boost to the mining industry.

That’s the conclusion of an economic analysis released by the Alaska Department of Transportation in mid-October. It weighs the agency’s plan to shorten the ferry route between Juneau, Haines and Skagway by routing passengers through a new terminal located 40 miles outside the capital city.

For months, local officials and members of a key advisory board have called on the state to provide an economic analysis or feasibility study of how the project might help – or hurt – travelers. At least so far, they’re unimpressed with the resulting document.

“It’s not convincing me,” said Haines Mayor Tom Morphet. “And it’s certainly not, even in their own words, a slam dunk.”

Bob Horchover of the Alaska Marine Highway Oversight Board echoed that point during a meeting last week. He said the analysis, which was first reported by the Juneau Independent, read “like a timeshare brochure.”

“I don’t think it was realistic, and I’m not sure where they got some of their numbers,” he said.

Report calls proposed terminal “a strategic investment”

At issue is the so-called Cascade Point ferry terminal project. The state says it’s been working on the idea for several years. But DOT recently kickstarted the effort by signing a $28 million contract for the first phase of the project.

The site is located on land owned by Goldbelt, Inc., a Juneau-based Alaska Native Corporation. News of the initial contract was welcomed by Canadian mining company Grande Portage, which plans to develop an ore terminal at the site – in partnership with Goldbelt.

DOT, for its part, argues the project would reduce operating costs and ease passenger travel by moving the ferry terminal significantly closer to Haines and Skagway, shortening the ferry route.

The new economic analysis assesses those claims plus concerns raised by critics. It was written by a contractor, Ed King, who formerly served as chief economist and economic advisor for the state of Alaska.

On the whole, the report acknowledges that the project’s “extensive capital costs” are “difficult to justify based on savings alone.” Still, it paints a picture of the so-called Cascade Point ferry terminal as a project with more pros than cons – especially in the long term.

“In conclusion, although the Cascade Point Ferry Terminal presents challenges as an independent initiative,” the report reads, “it may prove valuable as a strategic investment that facilitates resource development and improves access to the Capital.”

A skeptical ferry board 

That framing drew sharp criticism from members of the Alaska Marine Highway Oversight Board during a meeting last week.

Board Chair Wanetta Ayers said it seems like the analysis aims to “build a case for Cascade Point,” as opposed to evaluating it against alternative options.

“I don’t believe it makes a strong case, certainly from a customer service standpoint, and very marginally from an economic standpoint, that the project is justifiable,” Ayers added in a follow-up interview.

That’s concerning, she said, given that dollars are already being allocated to it — and that there’s a long list of other ferry-related projects in desperate need of funding. The nearly 45-page report explores potential impacts from the terminal, which would shorten the ferry ride between Juneau, Haines and Skagway.

The analysis acknowledges that the terminal would create new infrastructure and maintenance responsibilities for the state. It also finds that “construction costs are unlikely to be recovered in a meaningful timeline without additional changes.”

Another con is that passengers would have to make up for the shorter ferry route by traveling 28 more miles outside Juneau. That would make regional travel more expensive, given extra gas, vehicle wear and tear, and ferry fares that would stay the same.

Goldbelt has committed to running a bus service to transport passengers between Cascade Point and Juneau. But uncertainty remains about the reliability and cost of that shuttle for those traveling without a vehicle – and about what the longer drive would mean for those who do bring a car.

“My guess – and obviously, I’m not an economist – is that for the average user, it’s not a clear cut win, to put it most lightly,” said Morphet, the Haines mayor. “And certainly, to a lot of people, I think would be a loss” of access.

DOT spokesperson Danielle Tessen did not directly address those concerns during an interview Wednesday morning. She said shortening the ferry route ultimately comes down to saving money for the chronically underfunded ferry system.

“That is what we’re focused on, is creating these shortened ferry distances, because that’s how we’re able to continue reducing the cost of operations,” Tessen said.

Cascade Point “not an on-its-own project,” DOT says 

The analysis concludes that the new terminal would reduce planet-warming emissions and operating costs. Shorter ferry runs would result in “modest reliability gains” and an estimated 5% bump in ridership, it says.

But the real value comes from other long-term factors.

“Cascade Point, and this terminal, it’s not an on-its-own project,” said Tessen, of DOT. “And what I mean by that is, there is a bigger plan.”

That bigger plan has two main prongs. The first is another DOT effort, known as the Chilkat Connector Feasibility Study, which has also faced fierce opposition in the Upper Lynn Canal.

The agency is assessing what it would take to build a road aimed at easing travel between Skagway, Haines and Juneau. Cascade Point, the analysis notes, would be a “foundational” component of that effort.

The second prong is regional economic development by way of mining. The analysis says the new terminal would serve as a major boon for Grande Portage Resources’ proposed New Amalga Gold Project, which would likely use Cascade Point as its logistical base.

Morphet took issue with that logic.

“It’s kind of based on this trickle-down view of the economy, that if there’s commercial or industrial development at Cascade Point, there’s a greater benefit to the public,” he said.

“But is there a greater benefit to the traveling public?” he added. “That’s what this question is about: transportation.”

Horchover, the operations board member, echoed that point.

“I don’t know exactly what the motivation is, but it sure isn’t for the good of the Alaska Marine Highway service,” he said. “That’s my two cents.”

The board has previously raised concerns that the Cascade Point planning process deviated from the ferry system’s long-range planning process. During last week’s meeting, the board voted to write a so-called “corrective action” letter to the agency and state legislature saying as much.

The state announced on Wednesday that it is soliciting public comment on phase one of the project through Nov. 28.

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The City and Borough of Juneau’s planning commission approved Juneau Hydropower’s permit to build its Sweetheart Lake hydroelectric project at a meeting on Tuesday night.

Duff Mitchell is the managing director of Juneau Hydropower. He said in an interview that this is one of the last permits the new utility needed before breaking ground.

“This is very strong momentum for us, for us meeting our timeline of being in construction next year,” Mitchell said.

It’s been a long time coming. Mitchell started the process more than 15 years ago. 

The proposed Sweetheart Lake hydroelectric project would grow Juneau’s hydropower capacity by 19.8 megawatts. That’s enough to increase the borough’s electricity by around 20%. It would bring renewable energy to rural parts of Juneau — including Coeur’s Kensington Mine, which burns roughly 4.5 million gallons of diesel per year. 

Mitchell said at the meeting that getting the mine on renewable power benefits Juneau. 

“We got mines that want lower-cost power,” he said. “Those mines create not only the jobs, but they also pay our schools through the property tax, and so extending the lives of those mines through lowering their cost of power helps our community.”

He said the project will also provide the capital city with energy security and room to expand industries. 

Next steps

Mitchell estimates it will cost $270 million to build.

“So the fun part starts now, which is completing our financing,” he said.

He said that he’s seeking a loan through the U.S. Department of Agriculture’s Rural Utility Service that could finance 75% of the project, if approved. He’s also pursuing investment tax credits, which can be sold for cash and could finance a portion of the project.

To shuttle power to Kensington Mine, the company must build several pieces of major infrastructure. Mitchell said the company will start by digging a tunnel that starts near the outlet of Sweetheart Creek at Gilbert Bay and runs up to Lower Sweetheart Lake, around 35 miles southeast of downtown Juneau. 

“We will drive equipment and man and gear and everything else up there to build the intakes, to build the dam, to build the diversion tunnel, and all of the equipment and everything that we need to operate Sweetheart Dam in the Sweetheart Lake,” he said.

Then, he plans to use the tunnel to convey water to the turbines that generate electricity. The company plans to install substations, transmission lines and submarine cables simultaneously. He also plans to build a battery energy storage system to serve as a backup power source if an avalanche or other interruption cuts electricity. It would be charged by surplus hydropower.

Juneau Hydropower is contracting with Ameresco, a company that builds energy infrastructure, and David Burlingame, an electrical engineer with companies based in Anchorage, to design and construct it. Mitchell said around 200 workers will be needed to build it, and he would prefer to use local labor. 

Energy needs

Juneau Hydropower’s only contracted customer so far is Kensington Mine. But Mitchell has a “build it and they will come” mentality, so he’s confident that more customers will emerge. 

“So every interruptible customer is an unmet demand — they can be burned onto diesel,” he said at the meeting. “For every dock that’s not electrified, that is an unmet demand.”

Mitchell said he could also supply power to the proposed ferry terminal at Cascade Point, if that comes to fruition, and to any cell service company that wants to bring to life the dead zones at the northern end of the borough.

But Juneau Hydropower and Alaska Electric Light & Power each have their own service territories where they are allowed to sell electricity. To electrify a cruise ship dock, mine, or other customer within AEL&P’s territory, Juneau Hydropower would have to enter into an agreement with the utility and sell them the energy. 

The only commissioner, out of eight, who voted no to approving the conditional use permit was Nina Keller. She said she isn’t sure there is demand for more hydropower.

“I just am not convinced that where we are now, and looking at any forecasts that we have seen that recently came out with where Juneau is going in terms of population, I just don’t see the need, as (of) like today, for it,” she said.

The permit that the city issued has two conditions. First, the company needs to submit photo proof of a barrier to block sound and light from the powerhouse near Sweetheart Creek to protect local wildlife and recreational users. Second, the company needs to get a flood zone development permit. Mitchell said he’s confident he will fulfill both requirements. 

He said Juneau Hydropower could start offering electricity as early as 2028. 

Correction: a photo caption has been updated to remove a former funder that is no longer part of the project. 

The proposed Alaska natural gas pipeline project picked up another nonbinding agreement last week. This time, the letter of support comes from Tokyo Gas Company, one of Japan’s largest energy utilities. It’s the fifth acquired for the project since Glenfarne, a private energy asset developer, took over majority project ownership earlier this year.

If it’s built, the Alaska LNG Project will move natural gas from the North Slope through a roughly 800-mile pipeline to Nikiski to be liquefied and shipped overseas.

Adam Prestidge is the project president with Glenfarne. He told KDLL last month that preliminary agreements, though nonbinding, are a necessary first step toward agreements that are binding. But he says that can take a while.

“Typically, an LNG contract like this, can take, you know, 12, 18, 24 months to go from initial concept to being a binding agreement,” he said.

Glenfarne celebrated the preliminary Tokyo Gas agreement in a press release for pushing the project over the halfway mark of its LNG export capacity.

Glenfarne Communications Director Tim Fitzpatrick said the project’s annual capacity boils down to two separate numbers.

The first is the natural gas capacity of the pipeline, measured as a volume in billion cubic feet. The second is the liquid volume of natural gas for export, measured as a weight in million tons.

Fitzpatrick says the pipeline has an estimated capacity of 3.3 billion cubic feet of natural gas per day. Of that, 15.2%, or 500 million cubic feet, is earmarked for in-state use by Alaska residents as natural gas. According to a report commissioned by the Alaska Gasline Development Corporation, that’s roughly double what Alaskans in the Anchorage, Matanuska-Susitna and Kenai Peninsula regions actually use each year – between 180 and 200 million cubic feet.

The remaining project output will be converted to 20 million tons of liquefied natural gas for export, Fitzpatrick said. Of that, 11 million tons already have tentative customers through the handful of preliminary agreements reached this year.

Glenfarne estimates it needs binding commitments for five million more tons of liquified natural gas to fund the full $44 billion project.

The Tokyo Gas announcement comes on the heels of a town hall Glenfarne held in Nikiski earlier this month to promote the project.

This week, the head of the International Energy Agency predicted a forthcoming increase in liquefied natural gas supply could change global markets. Reuters reports the shift is creating a buyer’s market, pushing prices down for importers in places like Asia.

Glenfarne is eyeing the end of this year to decide whether to move forward with project development or not.

Correction: A previous version of this story incorrectly stated the annual natural gas capacity of the pipeline.

John Boyle, commissioner of the Alaska Department of Natural Resources, abruptly resigned his position on Friday.

Gov. Mike Dunleavy announced the appointment of his deputy, John Crowther, as acting head of the agency that regulates Alaska’s agriculture, mining, oil and gas.

The governor’s office declined Monday to answer questions about the resignation, which had not been previously announced.

Dunleavy is term-limited and will leave office in December 2026. Boyle’s departure follows those of Revenue Commissioner Adam Crum and Attorney General Treg Taylor.

The resignations of both of those men — who are now Republican candidates for governor in next year’s elections — were announced in advance, unlike Boyle’s departure.

Boyle could not be reached for comment on Monday.

The departing commissioner has extensive experience in the oil industry. Before joining Dunleavy’s cabinet in 2023, he was a lobbyist for BP and Oil Search.

Crowther, who will replace Boyle on an interim basis, has been with the Department of Natural Resources since 2012, the governor’s office said.

He previously worked as director of the governor’s Washington, D.C. office and served on the staff of the U.S. Senate’s Energy and Natural Resources Committee. He holds a law degree from Georgetown University.

“The Department of Natural Resources is at the forefront of protecting and developing Alaska’s precious land and waters. Mr. Crowther’s legal background and experience as a deputy commissioner make him a great choice to advance the responsible development, and maximum use, of Alaska’s natural resources consistent with the public interest as mandated by Alaska’s Constitution,” the governor said in a prepared statement released on Friday.

Correction: This story originally had the wrong byline. 

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Normally, this time of year, Juneau’s largest craft store would be full of plastic pumpkins, skeletons, ghosts, and, of course, fabric. But instead, the former Joann store in the Nugget Mall sits dark and empty — a spooky reality, say local costume makers.

Months after the chain closed across the nation, the gap in craft supplies is being put to the test at a crucially creative time of year: Halloween.

Elizabeth Bauer makes her five-year-old daughter’s Halloween costume every year, and usually, she wants to be something a bit unusual.

“Last year, she knew for months she wanted to be a white bat,” Bauer said. “So it’s like, you can’t find a white bat costume anywhere.” 

Bauer found white furry fabric at Joann, and made wings and a headband with bat ears for her daughter. 

But this year, Bauer is scrambling to find the material she needs to make another unusual costume, a hybrid jaguar and parrot from her daughter’s favorite cartoon, “Elena of Avalor.” She needs to make a pink base outfit, leopard spots, wings and a tail. And she has to find all of the materials and finish sewing by Friday. 

“But there’s not one store that you can go to and get all of those items that you’re looking for for a craft project,” she said. “You have to piece it together between all these different places.” 

Meanwhile, in Maggie Hyde’s costume closet, she held up a blue and green dress with scalloped ribbons of different colors. The shade of the fabric she bought online is not quite right. 

“I made it work, but these two shades were supposed to be a lot more different,” Hyde said. “They were not supposed to be the same shade, but on a website, they looked very different to what they look like in person.”

Hyde is a costumer. She participates in Juneau’s annual Wearable Arts show — where creators show off costumes they’ve made themselves — and she designs outfits for renaissance fairs, cosplay photoshoots and, of course, Halloween.

She said it’s a gamble to buy materials online for her creations. And she doesn’t want to support online retailers that don’t treat their employees well and often sell lower quality materials. Shipping costs are often high, if a company even ships to Alaska. 

“Now it’s this whole process of shipping, of looking and that just makes it a lot more difficult,” Hyde said. “You kind of have to adapt.”

Juneau Drag Mother Gigi Monroe said she and her fellow drag performers have been doing just that. 

“For professionals, we know how to get what we need and figure things out,” she said.

But this year, she had to pivot from a costume idea for Juneau Drag’s Halloween show because she couldn’t find more niche materials anywhere. Monroe said Joann usually had that kind of thing. 

And she said the store’s closing also impacts her methods. She would often go to the store with parts of an idea in mind, and figure out the rest based on what fabric she could touch and see in person. 

“So there’s a lot of designing that actually happens in the store, and you don’t really always have to go in knowing exactly what you need,” Monroe said. 

When they first heard the bad news, Monroe and other performers went to Joann’s closing sales and stockpiled on some heavy-hitter supplies — like rhinestone glue.

Monroe said other stores in town — including Juneau’s two quilting shops — help fill some of the gaps. 

And for Juneau’s more casual costumers, there are still options. Kathy Buell is owner of local party store Balloons by Night Moods.

“Halloween is our busiest season for anything that is not balloon-related,” she said.

The store’s shelves are stocked with ready-made costumes that fit infants, kids and as many sizes for adults Buell can find. It also has pieces that can be added to home-grown costumes. 

“We have makeup, we have wigs, we have hats,” she said. “Prosthetics that you put on with latex, blood, lots of blood.”

There is still a lot left for holiday procrastinators, she said. 

“We still have a lot of stock, because honestly, I’ve already—and it’s not even Halloween yet—I’m already buying for next year,” Buell said.

Still, the hole left by the Joann closure is a hard one to fill. But Monroe said there’s a letter-writing campaign asking national craft chain Michaels to step in.