Bid process opens for constructing relocated City Hall inside Michael J. Burns Building

Mark Sabbatini
Jun 19
3 min read

Deadline is July 13 for builders interested in converting first two floors into offices for 147 employees and an Assembly Chambers; project expected to cost about $20M

By Mark Sabbatini

Juneau Independent

Bids for a projected $20 million move of City Hall offices and services to the first two floors of the Michael J. Burns Building are now being accepted, according to an announcement posted Friday.

Funding approved by the Juneau Assembly for the project includes purchasing 46,000 square feet of office space for $9.3 million, $2.7 million allocated upfront for future maintenance, and nearly $5 million for the construction work that’s included in the bid. The remaining funds are for design and other work.

Local leaders have sought for several years to move out of the existing City Hall — originally built in 1951 as a fire station and renovated in the 1970s — saying it is in poor condition and needs extensive work. Assembly members last September approved the move to the three-story Burns buidling, which houses the Alaska Permanent Fund Corp. on the top floor.

"You will not see a bright, shiny City Hall," City Manager Katie Koester told the Greater Juneau Chamber of Commerce during a June 11 presentation. I think we're calling it the municipal building, at least internally, because it's not really a City Hall, (it’s) two floors of an office building."

Koester told the chamber audience the move will cut by half the $1.2 million in annual City Hall operating expenses, helping the investment to pay off in the long term, and the city has to move some employees regardless because some leased spaces downtown are no longer an option.

"It's going to be better for the public to have one stop," she added. "We're going to have a nice public counter where you can come in and you can do cash office, permit center, manager's office, you can ask all those questions. Oh, by the way, parking will be better and it'll also be easier to access off the road system when you're coming in versus having to come all the way downtown."

Juneau’s City Hall on Friday, March 13, 2026. (Mark Sabbatini / Juneau Independent)

The bid process announced Friday states the project is designed to "accommodate CBJ offices for 147 personnel, an accessible Assembly Chambers and central public service counter." The deadline for bids is July 13.

"The primary scope of work addresses critical updates to the building’s mechanical and electrical systems that are out of code and at risk of needing constant repairs if not updated," the announcement states. "There will also be limited renovations to the first floor for an Assembly Chambers, public service counters and restrooms. Some office spaces will receive minor renovations, including replacing partitions and limited finishes. At this time, the current budget does not include paint and flooring updates, however, should bid come in below budget, these are included among several items that could be added as alternates to the scope."

The Assembly in January approved a total of $20.6 million for the project. The funding is for what was described as a limited remodel due to higher projected costs than estimated several months earlier, with a full remodel potentially costing more than $30 million.

The announcement posted Friday states the current City Hall, which houses about 40% of CBJ staff, "faces major renovation and repairs estimated at nearly $10 million for immediate health and safety repairs, and over $45 million for full structural repairs." The city also leases other downtown office space at additional costs.

The move has been criticized by many residents, especially during the recently completed budget process during which the Assembly made millions of dollars in funding reductions to general city services, some programs such as operations at the Juneau-Douglas City Museum, and raised various fees and taxes.

The Assembly is considering options for the existing City Hall, including selling it at auction to recover some of the relocation costs.

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.