Juneau Assembly approves $5.4M for Telephone Hill redevelopment amid resident pushback

The Juneau City Assembly has taken a significant step towards the redevelopment of Telephone Hill, approving a $5.4 million appropriation for the first phase of the project during their regular assembly meeting on June 9, 2025. This phase includes demolition, site development, and replatting into four developed lots, with a total project cost estimated at $9 million.

The assembly's decision comes amid concerns from residents and community members regarding the impact of the redevelopment on current tenants. Notices to vacate have been issued to residents, requiring them to leave their homes by October 1, 2025, with construction expected to begin shortly thereafter. The assembly emphasized the need for increased housing in Juneau, particularly affordable options, as part of their long-term strategy to address the housing crisis.

However, the decision has sparked significant public outcry. Many residents voiced their opposition during the meeting, arguing that the project could displace families without a clear plan for future development. Testimonies highlighted fears of losing historical homes and the potential for the site to become an unattractive vacant lot during the lengthy redevelopment process. Critics also raised concerns about the financial implications, questioning the allocation of funds that could detract from other essential projects.

Assembly members debated the urgency of the project, with some advocating for a more cautious approach that would allow for a detailed plan and developer commitment before proceeding with evictions and demolition. Despite these concerns, the assembly ultimately voted in favor of the ordinance, with a 7-2-1 outcome.

As the assembly moves forward with the Telephone Hill redevelopment, the implications for the community remain significant. The decision reflects a broader commitment to addressing housing needs in Juneau, but it also raises critical questions about the balance between development and the preservation of community history and stability. The assembly's next steps will be closely watched by residents as they navigate the complexities of urban development in a changing economic landscape.