Juneau’s new City Hall: Cheaper, but a missed opportunity

The Michael J. Burns Building, a portion of which city leaders are planning to use as a new City Hall. (Mark Sabbatini / Juneau Independent)

By Angela Rodell

The City and Borough of Juneau recently announced it will purchase two floors of the Michael J. Burns Building from the Alaska Permanent Fund to serve as the new City Hall. The proposed purchase price is $9.3 million for two floors of the building and the establishment of capital improvement reserve of $2.7 million. 

The purchase is envisioned as a business condo association, allowing CBJ to own the lower two floors and the Alaska Permanent Fund retaining ownership of the third floor. This arrangement requires shared control and management, and includes payment of proposed condo dues of $650,000 annually for operational costs and long-term maintenance. It does not include any amounts the City will use for remodeling — such as adding interior walls to the space. 

Compared to the $45 million new construction bond that voters rejected, this is certainly less expensive. It shows city leaders heard the community’s concerns about debt and cost.

But it’s important to look at what was lost in the process. The purchase price flows directly back to the Alaska Permanent Fund. Once expenses are settled, the net proceeds are deposited into the Earnings Reserve Account, the same account that funds the Permanent Fund Dividend. That means money collected locally in Juneau will be distributed statewide through dividends, rather than staying here to generate local value.

Had we opted to remodel one of our school buildings or purchase underutilized private office space, all the money would have remained in town. At a time when Juneau faces declining population, unaffordable housing, and increasing pressure on basic services, this was a missed opportunity. Ideally, large city investments should create lasting local impact — jobs, contracts for local businesses, and reinvestment in our own economy. Instead, the financial benefit is exported.

This experience also underscores why it's so important for voters to pay close attention to this fall’s ballot initiatives and consider their long-term implications. When we engage with these measures thoughtfully — whether supporting or opposing — we shape how our community invests in itself. 

Yes, buying space in the Burns Building is less costly than a brand-new City Hall. But cheaper doesn’t always mean better. This decision prevents Juneau from capturing the full multiplier effect of its own spending at the very moment when we need it most. The city’s challenge isn’t just finding affordable office space — it’s keeping Juneau itself affordable.

• Angela Rodell is a member of the Affordable Juneau Coalition and a former executive director of the Alaska Permanent Fund Corp.