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Assembly directs manager to pursue MOU with U.S. Coast Guard on potential housing at Peterson and Telephone Hill
Summary
The assembly unanimously directed the city manager to work on a memorandum of understanding with the U.S. Coast Guard exploring use of CBJ land (Peterson Hill and part of Telephone Hill) and developer solicitations to provide housing suitable for Coast Guard families and unaccompanied service members.
The assembly voted by unanimous consent to direct the city manager to negotiate a memorandum of understanding (MOU) with the U.S. Coast Guard exploring whether CBJ-owned parcels—Peterson Hill and a portion of Telephone Hill—could be offered for consideration by private developers to build housing suitable for Coast Guard personnel.
Manager Kester told the Committee of the Whole that Coast Guard staff had provided preliminary estimates of housing needs—approximately 48 family units and 23 unaccompanied service-member units—but those numbers were not final and were described as an initial assessment. The Coast Guard prefers developments tied into broader community projects (not standalone gated housing) and can offer guaranteed leases to developers to support bank financing for construction; the agency said it will likely use a request for information (RFI) process to survey the development market.
Kester said Peterson Hill has multifamily zoning but requires completion of a second access road (an expensive requirement tied to emergency access rules) before additional development can proceed. Telephone Hill also requires road alignment and utility installation; site-prep funding has been discussed but additional work remains. CBJ staff have discussed five potential CBJ parcels with the Coast Guard and highlighted Peterson Hill and Telephone Hill as potentially suitable.
Assemblymember questions centered on whether the Coast Guard RFI would allow privately held parcels to compete, how CBJ would participate without crowding private developers, and whether the arrangement could produce mixed-use developments that include units for the general public as well as Coast Guard-assigned units. Kester and Coast Guard staff said the agency intends a fair, transparent RFI and would consider existing private development options as well as CBJ-owned land.
The motion to direct the manager to pursue an MOU passed by unanimous consent; the assembly provided no additional appropriation or binding commitment to any parcel or developer at the meeting.
