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Is this empty gravel lot about to become downtown Juneau’s newest tourist attraction?

Snow covers the Archipelago Lot on South Franklin Street on Friday, Feb. 20, 2026. (Photo by Clarise Larson/KTOO)

A large gravel lot in the heart of downtown Juneau’s tourism corridor has sat empty for years. But that might soon change. 

On Tuesday, the city’s planning commission will consider whether to approve a conditional use permit for the construction of a two-story retail and entertainment building called “Alaska Fly & Dive.”

According to the permit application, the project will bring tourists coming off cruise ships into an immersive theater experience of Alaska’s natural wonders, like local glaciers and underwater adventures. The development would include three large interactive theaters/rides, a retail store and some office space. 

The project, estimated to cost at least $60 million with hopes of opening in 2027, would turn into a civic and educational venue in the tourism off-season. 

This is a drawing of the proposed Alaska Fly & Dive building in downtown Juneau. (City and Borough of Juneau)

“I know it’s private property. They should be allowed to develop as they do, but I just don’t know that it will benefit Juneau, as I know it, or the Juneau that is here after the tourists leave,” former Juneau Assembly member Loren Jones said in an interview.  

Back in 2019, the Juneau Assembly negotiated a land swap with property owner Archipelago Properties LLC, a subsidiary of Morris Communications based in Georgia and the former owner of the Juneau Empire newspaper. The negotiation was so that the city could develop bus staging and additional pedestrian space along the seawalk. Plans for Morris Communications to develop something on their property have been discussed for at least close to a decade. 

Jones voted against the land trade deal. He was skeptical about how any development there would benefit the community as a whole. 

At the time of the deal, a representative for the property said they wanted to develop the lot into retail shops and restaurants starting in 2020. That never happened. 

Instead, the nearly 1-acre property adjacent to the downtown library and parking garage — along South Franklin Street and under the watchful eyes of the Elizabeth Peratrovich mural — has remained largely empty. That’s despite the property’s extreme proximity to where 1.7 million cruise ship tourists walk off ships and into downtown Juneau each summer.

Jones said he’s not totally against the current “Alaska Fly & Dive” project — but needs more convincing that it will actually benefit Juneau.

“I don’t see anything in there that tells me that somebody in the middle of winter is going to leave their home in the valley and go,” he said. “I can’t imagine any of us going down in the middle of winter to take a simulated boat ride or a simulated submarine ride.”

Still, the new project has received letters of support from the Juneau Economic Development Council, Travel Juneau, the Downtown Business Association and the Society of St. Vincent de Paul. According to its application with the city, the development is in collaboration with Melvern Entertainment, a company that develops theater attractions for Disney, Universal Studios and Six Flags.

The proposed theaters include a 60-person 4D theater, a 72-person flying theater, and three 20-person ocean simulator theaters. The flying theater and ocean simulator theater would also be rides, taking guests via immersive films to see local glaciers and landscapes, and on underwater adventures.

This is a concept design of the Alaska Fly & Dive’s flying theater. (City and Borough of Juneau)

Liz Perry with Travel Juneau said in an interview that she’s excited to see the empty lot turn into something new. 

“This would be a terrific year-round addition to our offerings for both visitors and residents — it will create something that hasn’t been in that lot,” she said. 

And before you ask – no, they’re not planning to build any housing there. At least not in this application. Alix Pierce is Juneau’s Visitor Industry Director. In an interview, she said she thinks the project could help with managing the number of tourists that come into town each day in the summer. 

“I think having something downtown on the waterfront that’s indoors and helps manage congestion by pulling people into an activity, is a positive thing,” she said. 

The applicant for the permit is Reuben Willis, a local insurance Agent for State Farm. He declined an interview with KTOO to speak about the project before the meeting on Tuesday. In the application, it states that he signed a sales agreement for the lot, which is in a “due diligence period.” Morris Communications has also not responded to multiple requests for comment. 

The Juneau planning commission will decide whether to approve a conditional use permit for the project’s construction, along with two other variance requests related to the project, on Tuesday at 6 p.m. at City Hall. 

Copyright 2026 KTOO

Clarise Larson