Juneau assembly approves HESCO-barrier local improvement district after contentious public hearing

The Juneau City and Borough Assembly on Feb. 3 approved an ordinance creating Local Improvement District No. 210 to install HESCO flood barriers along the Minnehaha River and appropriating funds for the first phase of the project.

The ordinance, identified in meeting materials as ordinance 2024-40 AM, covers the phase-1 HESCO installation estimated in staff materials at $7,830,000 and includes an assessment rule and repayment terms for affected property owners. Deputy Mayor Smith moved the ordinance and an adopted amendment that sets a 0% interest rate for the initial repayment period and provides 0% interest for the first 10 years on four larger assessments before increasing to about 4.78% thereafter. The measure passed by unanimous consent after public testimony and a recess to count written objections.

Why it matters: The proposal responds to flooding in the Minnehaha Valley and is intended as an immediate protective measure before a longer-term solution can be designed and funded. The hearing drew large turnout from valley residents, who expressed sharp disagreement about costs, project scope and potential downstream impacts.

City staff told the assembly that the city used inundation maps to identify 466 properties that would “benefit” from phase 1. The packet included lists of written objections; the municipal clerk reported receiving 117 property objections by the close of testimony, below the threshold that would block the LID. Staff also said project costs will be split 40/60 between property owners and the City and Borough of Juneau (CBJ).

Residents who oppose the LID told the assembly the barriers are unfairly shifting cost burdens to homeowners who already suffered flood damage in 2023–24 and that the barriers could alter river hydraulics and shift risk downstream. Joseph Little, a Mendenhall Valley resident, told the assembly the project “stops at River Court Way” while “Thunder Mountain, the library, the Field House, Riverbend, the post office, [and] Riverview Senior Living” remain downstream and not included in the assessment area. Little urged the assembly: “Please, vote against the Hesco barrier project when it is time for your decision.”

Other speakers said financial hardship made the assessment untenable. Sam Hatch, who said he has three mortgages and exhausted his savings retrofitting his home after prior floods, asked why homeowners should shoulder emergency-protection costs: “Should I have to pay for life saving emergency work?” he asked. Several speakers asked the assembly to remove any interest from homeowner assessments.

Supporters said action was urgent. Michelle Hale of the Mendenhall Valley said experts, including the U.S. Army Corps of Engineers, identified HESCO barriers as the best immediate protective measure for 2025: “Those raging waters are going to be here before we know it, and we don't have a choice of not acting.” Bill Diebels, a valley resident, urged the assembly to view the measure as the best available option in the time available.

Funding and next steps: During discussion, staff described ongoing efforts to seek additional funding to reduce homeowner costs, including a Forest Service award of $1,000,000 to do preparatory work, an Army Corps request for $10,000,000 to support a general investigation study for a long-term solution, HUD disaster recovery funds routed through the state, and a potential low-interest loan from the state Department of Environmental Conservation. Staff also noted they are continuing outreach and will publish full lists of mailed notices and objections in supplemental materials.

Assessment and process clarifications: The municipal clerk explained that written objections must be filed to be counted; staff distributed paper objection forms and paused for a recess so the clerk could complete a final count. The manager told the assembly an updated assessment rule and a corrected reflected amount ($6,292 as published in materials) were included in the ordinance packet. City legal staff explained the LID assessments can be revisited after final receipts are in and a second assessment roll and hearing occur if the body wishes to change the apportionment.

Assembly reaction and vote: Several assembly members said the ordinance was imperfect but necessary to provide immediate protection before the 2025 flood season. Deputy Mayor Smith said the decision was made reluctantly but that the city had “data scarcity” and limited time. After a recess to allow the clerk to count written objections, the assembly took the ordinance up with the amendment reducing interest terms; no assembly member objected and the ordinance passed by unanimous consent.

The assembly and staff emphasized they will continue pursuing long-term solutions and additional funding and said they planned more federal advocacy and grant seeking in the coming weeks.