What to do with the City Hall building? Assembly members want firmer foundation of information before deciding

Leaders vote Monday to discuss the sale options during a future meeting that allows for public input, but then discuss the matter further in committee

The second floor hallway of City Hall on Monday, March 16, 2026. (Mark Sabbatini / Juneau Independent)

By Mark Sabbatini

Juneau Independent

Assembly members have some thoughts about what they want to see happen with the current City Hall — including year-round use and the best possible selling price — but aren’t yet close to ready to put it on the market.

Members voted 7-2 as the Committee of the Whole on Monday to have the sale of the building considered at a full Assembly meeting, which will allow for public testimony, but afterward send the matter back to the committee for further review. Among the questions raised Monday are if an appraisal might result in a higher sale price and if conditions about how the building is used (including the possibility of demolition) should be considered.

"You have heard me talk for the last six years probably about the condition of this building — but the boiler seems to be working this evening," City Manager Katie Koester told Assembly members, the latter part of the remark referring to a heating/ventilation system that often results in uncomfortable temperatures in the Assembly Chambers. "I think there's definitely a good chance that someone who purchases would want to take down the building."

The most specific option put before Assembly members by Koester is an auction — either open or sealed-bid — with a minimum bid of $2.5 million.

"We've had a lot of questions about where the $2.5 million as a minimum bid came from," she said. "That was in consultation with our assessor and just doing an analysis of the building."

The building that originated as a fire station in 1951 and was renovated during the 1970s to serve as City Hall is set to be vacated by the City and Borough of Juneau during the coming year, with municipal government offices relocating to the first two floors of the Michael J. Burns Building. That move is currently expected to cost $18 million and city leaders are hoping the sale of the existing City Hall will offset some of that expense.

The existing City Hall is a two-story, 21,884-square-foot building in a premium location right across the street from Marine Park and cruise ship docks where 1.7 million passengers arrive annually. But city leaders have also said for years the building needs extensive repairs — a recent estimate specified $14 million for structural, safety and systems repairs — which is why persistent attempts to relocate CBJ offices have occurred.

Christine Woll, chair of the Assembly Finance Committee, said during Monday’s meeting the relocation of City Hall has been "more sensitive than we would have ever wanted and the public is not happy about it." As such, she favors getting an appraisal of the building before putting it on the market.

"I do feel like we have a responsibility to get at least fair market value for this property," she said. "That being said, I don't think we need to get the highest amount that we could get out of this because I think that will come at an expense to our other goals. This is our downtown core and our waterfront, and we hear all the time from people who want to make sure this space stays year-round in nature."

Mayor Beth Weldon said she disagrees with an appraiser since "I think that's spending money we don't have to." She said bidders will likely be aware "this is going to be a really valuable piece of property," especially if the new private Huna Totem cruise dock opens nearby soon. Also, she said she favors ensuring at least some of the space is for year-round operations, not necessarily restricting a buyer who would want to use space for a seasonal business such as a jewelry store.

Another consideration in determining sale parameters is the character of the site, since it’s long been a government space, said Assembly Member Alicia Hughes-Skandijs. Deputy Mayor Greg Smith said among the entities expressing interest in the site is Sealaska Heritage Institute, which occupies two buildings on the same block offering a variety of cultural, commercial and professional facilities.

Koester said while there isn’t an urgent need for the Assembly to make an immediate decision, city staff hope to complete the move to the Burns building by the end of this year. She also estimates a "disposal" of the building — via sale or other means — will take nine months, plus an additional three to four months if an appraisal is needed.

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