Juneau assembly approves $1.8M appropriation to begin Telephone Hill site work amid pushback from residents

The Juneau City and Borough Assembly on June 9 approved an ordinance to appropriate $1,800,000 and transfer additional funds to begin phase 1 site preparation at Telephone Hill, moving forward despite public testimony urging delay.

The ordinance, introduced as Ordinance 2024-01 (version b, “AY” in the meeting packet), was moved by Assemblymember Bryson and adopted following roll-call votes. Assemblymember Kelly registered an objection during debate and voted no; the clerk announced the motion carried with a recorded result of 7 yes, 2 no, 1 recused/absent.

The manager told the assembly the Telephone Hill redevelopment total cost is estimated at about $9 million, with phase 1 — demolition, site development, replatting into four lots and related site work — estimated at $5,510,000. Passage of the ordinance secures roughly $5.4 million toward the project when combined with previously appropriated funds, the manager said.

Why it matters: the appropriation authorizes CBJ to begin clearing and preparing the site before a developer has signed a final development agreement. Residents and preservation advocates argued the timing, cost and potential loss of historic structures and established green space warrant delaying demolition until a concrete redevelopment plan and firm developer commitment exist.

Public testimony was heavily weighted against immediate demolition. Joshua Adams, who said he has lived in Juneau his whole life, told the assembly the project would “crowd out the funding for other needed housing projects” and described Telephone Hill Redevelopment as “bankrupt socially... spiritually... economically.” Resident Skip Gray said eviction and demolition before a developer signs on risks leaving the site an “ugly camp for at least several years.” Several long-time Telephone Hill residents described gardens, mature trees and ongoing community stewardship and urged more time.

Assembly debate focused on timing, financial risk and the practicalities developers face. Manager Kester told members the city issued a request for information and received limited concrete responses from developers; staff recommended site preparation and demolition as a way to reduce developer uncertainty. Assemblymember Wall asked staff to summarize developer willingness; the manager said informal conversations indicated many developers were reluctant to assume the uncertainty of demolition and site readiness without city action.

Council members who supported the motion framed the appropriation as a necessary early step to make the site marketable. Assemblymember Bryson compared the proposed action to prior CBJ work that built infrastructure to enable private development, and Assemblymember Wall said high-density affordable housing in Juneau requires substantial public investment before private projects proceed.

What the ordinance does and next steps: the package adopted included a direct appropriation of $1.8 million to the manager and a transfer of roughly $1.9 million from a different CIP line to Telephone Hill. Staff said notices to vacate were delivered to Telephone Hill residents the week of May 19, 2025, with a requirement that all residential units be vacated no later than Oct. 1, 2025; phase 1 construction will not commence earlier than Oct. 1, 2025, per the manager’s presentation. The manager also said a site assessment exists and that staff can provide additional information on building maintenance and other costs if the assembly requests it.

Opponents asked the assembly to delay eviction and demolition until there is a signed development agreement or clearer plan. Assemblymember Kelly said he could not vote in favor without a signed commitment from a developer. Supporters said delaying risks never getting the infrastructure in place and reiterated that city-led site preparation has enabled other projects in Juneau.

The ordinance text and supporting materials say the funding sources include land funds, general funds and sales tax funds. The manager noted the $9 million total includes later phases and that the immediate action funds site remediation and demolition for phase 1.

The assembly action was recorded as an ordinance adoption; the motion was moved by Assemblymember Bryson and carried by the stated roll-call. Several residents and community members who testified said they plan to press the assembly for additional outreach and to seek more explicit developer commitments before later phases proceed.

Ending: The assembly’s decision authorizes CBJ to start site work and to proceed with resident relocations on a schedule staff described as beginning with vacate notices and site preparation this fall; opponents said they will continue to press for delays or further public vetting.