Juneau assembly approves $5.5 million first-phase plan for Telephone Hill site

The City and Borough of Juneau Assembly Committee of the Whole on May 5 approved a phased, city‑led first phase for Telephone Hill that funds demolition, site preparation and replatting and directs staff to pursue private development of the prepared lots.

The decision follows a staff presentation from Manager Andrew Kester outlining four options and a place‑guide developed through more than a year of public outreach. Kester said Telephone Hill — conveyed from the state to CBJ in February — contains roughly 2.5 acres of developable land on top of the hill and that replatting is necessary because existing property lines cut through buildings. “Telephone Hill was conveyed from the state of Alaska to CBJ in February,” Kester said. “We’ve spent over a year, in a pretty extensive public process … and the assembly picked Concept C” as the preferred vision.

The assembly selected “scenario 2,” the phased approach recommended by staff and the consultant First 40 Feet, which funds demolition, hazardous‑materials abatement, some excavation to create buildable pads and a replat to produce four developable lots. The assembly voted 8‑1 to approve the motion to proceed with scenario 2; Assembly Member Michael Kelly cast the lone no vote. Mayor Weldon moved the scenario motion.

Why it matters: Telephone Hill is a downtown site the assembly has prioritized for years as potential infill housing. The chosen approach accepts short‑term city investment in site preparation so the parcel can be marketed to developers with fewer unknowns (hazardous materials, grading, road alignment) that could deter proposals.

Key facts and next steps - The place‑guide envisions a mix of studios, one‑ and two‑bedroom units, up to a 65‑foot height limit, with a goal that 20% of units be affordable at 80% AMI. - Staff estimated four developable lots after replatting and excavation; consultants and staff described steep slopes and likely blasting/excavation as part of creating buildable pads. - Kester presented two cost estimates: a $5,000,000 construction estimate from the consultant plus contingency and hazardous‑materials allowances that yielded a roughly $9,000,000 full project estimate; a smaller phase‑1 focused on demolition/site prep was estimated at $5,500,000.

Tenant notice, timing and displacement Staff laid out a timeline that would include direction to start funding planning by the next Committee of the Whole and serving notice to tenants. Manager Kester recommended an early fall move‑out date for tenants (September 15 was discussed earlier in the presentation; the assembly later moved notice to October 1 to avoid competing with seasonal housing needs). Assembly members and staff estimated current occupancy at roughly 14–16 people and discussed that replatting and demolition will displace those residents. Kester said the city would try to give tenants as much notice as possible and follow the schedule tied to ordinance introduction and appropriation.

Funding vote and sources After approving scenario 2, the assembly considered funding. Mayor Weldon moved a $5,500,000 funding package and specified sources: $1,700,000 from the Telephone Hill CIP; $2,000,000 from the Peterson Hill CIP; $800,000 from the land fund; and $1,000,000 from the general fund, with the general fund amount intended to be repaid once the land is sold. The assembly adopted the funding motion without recorded roll‑call objections.

Assembly vote on scenario 2 (roll call recorded in the transcript) - Yes: Mayor Weldon; Mr. Bryson; Miss Huskandis; Miss Atkinson; Miss Wall; Miss Hall; Mr. Steininger; Deputy Mayor Smith - No: Mr. Kelly Outcome: approved, 8 yeas, 1 nay.

What remains unresolved Staff noted multiple unknowns: the extent and cost of hazardous‑material remediation, whether private developers will build the density and affordability the assembly wants, and whether a developer will be secured before demolition. Staff recommended either issuing an RFP (rather than the earlier RFI) or phasing the work to improve marketability. The assembly directed staff to proceed with the chosen scenario and return with ordinance language and funding details.

Speakers quoted or referenced in this article came from the meeting transcript and the assembly’s discussion about Telephone Hill.

Ending: The assembly directed staff to advance the phased site‑preparation option and approved the appropriation package to fund the first phase; staff will return with ordinance language and implementation steps for the assembly and, if enacted, will begin tenant notification consistent with the adopted timeline.