Juneau assembly approves $1.8M for Telephone Hill site prep amid resident objections

The Juneau City and Borough Assembly voted to adopt Ordinance 2024-01 (version B, “AY”), appropriating $1,800,000 for site preparation of the Telephone Hill redevelopment project and transferring $1,922,615 from the Peterson Hill Phase 1B2 capital improvement project. The assembly adopted the ordinance after public hearings and deliberations and a roll-call vote the assembly recorded as carrying the motion, 7–2–1.

Supporters and opponents urged different priorities during more than two hours of public testimony. Opponents warned the project would divert funds from other housing efforts and displace residents. Supporters and the manager argued the appropriation funds necessary early steps to make the parcel “shovel ready” for developers.

City Manager Kester told the assembly that the overall Telephone Hill redevelopment is currently estimated at $9,000,000 and that Phase 1 — demolition, site development and replatting into four developed lots — is estimated at about $5,510,000. Kester also said notices to vacate were delivered the week of May 19, 2025 and that staff mandated that all residential units be vacated no later than Oct. 1, 2025; phase 1 construction will not start earlier than Oct. 1, 2025.

Residents who live on Telephone Hill and nearby urged the assembly to delay eviction and demolition until a developer was firmly committed and a clear development plan existed. “This is a housing project that's going to take away our housing,” testified Joshua Adams, a longtime Juneau resident, who argued the city would be crowding out funding for other housing projects. Maureen Connor, who identified herself as a Telephone Hill resident, questioned the jump from an earlier demolition estimate of $500,000 to the current $9 million figure and asked why the project was not submitted to voters as a distinct ballot measure: “Why isn't it on the ballot as a separate item?”

Assemblymember Kelly said the absence of a signed development commitment made him unable to support the appropriation that night. “Before I could vote yes on this, I would prefer to have a signed commitment,” he said. Assemblymembers who supported the motion argued that site preparation is necessary to make the property viable for developers and pointed to prior infrastructure work the city has done to enable private development.

The ordinance text and manager’s memo show the appropriation and transfer would secure $5,400,000 toward the project with the remainder already secured in the Telephone Hill CIP. The ordinance notes funding sources as land funds, general funds and sales tax funds. The assembly record shows the motion to adopt was made by Assemblymember Bryson; the roll call recorded seven yes votes, two no votes and one absence, and the clerk announced the motion carried.

Discussion at the hearing ranged from the project’s fiscal risks to the cultural and environmental character of Telephone Hill. Multiple speakers described Telephone Hill as an established neighborhood with mature trees, gardens and historic structures, and several asked the assembly to allow residents more time or to tie any demolition to a signed development agreement.

The assembly’s action authorizes the manager to expend the appropriated funds for the Telephone Hill redevelopment capital improvement project as described in the ordinance. Implementation steps described in the manager memo include demolition and site preparation; the ordinance also preserves the assembly’s direction that construction not commence earlier than Oct. 1, 2025.

The assembly’s vote completes the appropriation step; future steps — developer selection, design approvals, permits and construction contracts — remain contingent on additional decisions by the assembly and staff.