Next stages of Telephone Hill development before Assembly on Monday as final occupants set to leave by Feb. 28

‘It is unlikely developers will take us seriously before demolition begins,’ city manager reports after eviction cases and other controversies delay project for several months

An image of Telephone Hill and the surrounding area in a document presenting the concept of a proposed redevelopment project to companies interested in performing the work. (City and Borough of Juneau)

By Mark Sabbatini

Juneau Independent

A several-month delay in plans to redevelop Telephone Hill means moving ahead quickly with demolition of existing homes is vital once the last of them is vacated at the end of the month, Juneau Assembly members will be told at a meeting Monday when next steps for the project are scheduled to be discussed.

"Because of the highly visible and political nature of the project it is unlikely developers will take us seriously before demolition begins," City Manager Katie Koester wrote in a memo for the Assembly’s scheduled Committee of the Whole meeting. "The vulnerability that the Assembly will change their mind is too great."

A majority of Assembly members have continued to express their support for the development project since an 8-1 vote to proceed with the initial demolition stage at a projected cost of $5.5 million was approved by an 8-1 vote last June. But opponents are showing up in significant numbers during the public comment periods during each regular Assembly meeting, and some have filed a civil lawsuit seeking to halt the redevelopment.

"The city has assumed that the houses are unsafe, worthless wrecks," Mary Alice McKeen, a local attorney involved representing the last couple to be evicted from the homes, told the Assembly during its Feb. 9 meeting. "That assumption is wrong. The city can immediately save $5.5 million by not demolishing them, as the intense interest in these houses shows many people value older historic homes and the craftsmanship in them that has enabled them to house people for over 100 years."

McKeen and other opponents argue the project concept approved by city leaders, which includes four midrise apartments with up to 155 total units, is economically unviable. City leaders argue the neighborhood offers one of the top housing development opportunities for a town where a shortage of housing is a foremost issue, and the redevelopment may serve key future needs such as homes for U.S. Coast Guard personnel when an icebreaker is homeported here during the coming years.

Demolition of the existing neighborhood was initially scheduled during the fall and winter of 2025, according to Koester. The original eviction date for the 13 households was Oct. 1, but legal challenges have delayed the deadline for the final household — which happens to be the oldest occupied home in Juneau — until Feb. 28.

Koester, in her memo, states next steps within the coming month should be issuing a bid for a company to perform the demolition work and to seek a company to draft qualification requirements for developers interested in building the new housing.

"When demolition begins we will more aggressively reach out to potential developers," Koester wrote, noting the demolition is expected to take about three months.

A civil lawsuit by several former Telephone Hill residents challenging the redevelopment project is pending in Superior Court, with a readiness hearing scheduled April 17 and a pre-trial conference scheduled June 26. City officials have said they plan continue with the demolition and other aspects of the project before the matter goes to trial.

Among the items of discussion scheduled Monday night is a draft "Statement of Objectives" for the project. Koester stated the most important criteria are the number of total housing units and that a minimum of 20% of those are officially categorized as affordable housing.

"CBJ seeks a high-density, multi-family housing development ideally providing 100-155 units, with flexibility on building count, configuration, and phasing," a summary of the project states in the draft. "Development should support year-round and seasonal workforce, provide affordable housing, and accommodate the senior population. The site should encourage safe access for pedestrians and provide greenspace or recreation areas."

The meeting is scheduled to start at 6 p.m. in the Assembly Chambers. Because it is a Committee of the Whole worksession, public testimony will not be taken. Formal actions such as approving a contract for demolition work will have to occur at a regular Assembly meeting that includes an opportunity for public testimony.

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