Pause and reassess when conditions are changing
- Guest contributor
- 2 hours ago
- 3 min read
By Katharine Coghill
Was there ever a time in your life when you were worried about how you would pay your bills? Did you forge ahead with a big new purchase, or did you slow down to carefully consider whether the purchase was a critical need or just an alluring want? CBJ is making quite an effort to give residents a say in their budget decisions, and I hope they will listen to the full range of ideas on how to get through this challenge.
Finding cuts that will consistently decrease CBJ expenses on an annual basis is critically important, but that effort should not preclude careful reconsideration of big-ticket items that carry a high risk of costing a whole lot more than expected. If we’re short on money, the first step is to pause movement on risky projects that do not ensure reliable results.
When the gondola purchase was proposed, there was pressure to act quickly to catch a fleeting opportunity. A quick decision to buy it was made without carefully looking at the full cost of getting it up and running. It was a bold but risky gamble, formed during more optimistic times. Rushing forward on that project without adequate information turned out to be a big mistake. It was an avoidable burden that we will struggle under now and for many years to come.
When the Telephone Hill project to demolish and rebuild housing was first approved, conditions affecting that decision were very different than they are today. Back then, CBJ had a more robust budget, and it might have been tempting to dream big and take some risks. Since then, tax revenues have been cut, Mendenhall River expenses are projected to skyrocket, and new housing projects have softened the urgency to demolish Telephone Hill. There are 10 new units near Crow Hill in Douglas, 48 units are under construction on the hill above the Pioneer Home, a second multi-unit building is under construction near Fred Meyer, and many obstacles to new housing developments have been reduced by recent re-zoning and CBJ changes to housing construction code.
No disaster will ensue if we delay demolition of Telephone Hill, but racing forward, being in a hurry to destroy existing housing is a huge gamble and could be devastating if CBJ has not secured a contractor to rebuild there. An essential first step would be to write the demolition subsidy into a building contract and secure a builder. But even securing a builder before starting demolition would be risky.
Considerable evidence suggests that building on that site would be technically challenging, and costs can be expected to follow the same trajectory we are seeing with the gondola. We need to consider the possibility that no builder will ever be able to build there without either going bankrupt or leveraging CBJ for ever-increasing subsidies.
Imagine if CBJ moves forward and tears everything down this spring, only to find that no entity is willing or able to build new housing there. It’s a distinct possibility and if that happens, the Assembly would be responsible for wasting $5 million, destroying a historic district, creating an ugly, unstable hole in the heart of our beautiful downtown, and evicting long-time residents from their housing. No win-win outcome here, just lose-lose-lose-lose. Would they follow that up with even more subsidies in a desperate attempt to initiate construction, or to finish a stalled or abandoned project? Would they seek another loan from Goldbelt?
These are scary possibilities. There are innumerable reasons this project is so unpopular, but the financial risk during troubled times and the potential for the costs to escalate is a flashing red light that urgently needs to be recognized and addressed. The Assembly has heard an outpouring of concern for years, escalating over the past months from thoughtful, respectful residents who have been providing innovative alternatives, expert opinions, ideas from architects, and begging CBJ to pause their plans for demolition. We would all benefit if the Assembly would take these new factors into account to reassess whether this high-risk project with devastating potential, makes sense in this new fiscal environment.
The Assembly has an opportunity right now to show great leadership by responding appropriately to a changing situation. Please join the many voices who are asking CBJ to “hit pause” on this unrealistic pipe dream, especially considering the new budget crisis. If they can’t get necessary commitments to ensure that Telephone Hill doesn’t become another fiasco like the gondola, demolition should not move forward. Pausing this project is an essential piece of the CBJ budget solution and I hope the Assembly will act accordingly. We cannot afford any more big mistakes.
• Katharine Coghill is a Juneau resident who originally moved here in 1982 and has lived here continuously since 2012.
