Assembly rejects mayor’s 'split‑and‑sell' plan for Telephone Hill, votes to delay demolition until RFQ responses
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Summary
After debate, the assembly voted down Mayor Weldon’s proposal to divide Telephone Hill into three lots for sale and instead approved a motion not to award the demolition contract until developer RFQ responses are received, directing the manager to prioritize outreach to potential respondents.
City staff updated the Committee of the Whole on April 13 that demolition bids for Telephone Hill had been solicited and that a request for qualifications (RFQ) for developers would follow. The manager said demolition cost estimates were roughly $2.3 million and that, although assembly members have sued to stop demolition and a jury trial is set for August, no court order currently bars moving forward.
Mayor Weldon proposed an alternative: split the hill into three parcels, retain one parcel for Coast Guard or workforce housing and sell the other two 'as is' to avoid further city demolition spending. The mayor said the plan would be a faster way to respond to public outcry about additional expenditures.
Multiple assembly members raised procedural, equity and feasibility concerns. Members asked about lot lines that cross structures, the appraised value of parcels, whether homeowners exist on the lots, the political sensitivity of eviction, and contractor feedback that demolition work had become 'political.' Several members argued the city should not take irreversible demolition steps until it has more clarity from developers about what could be built there.
The assembly first voted on the mayor’s ordinance authorizing disposal through sealed competitive bid; after discussion, that motion failed with five nays and four yays. Deputy Mayor Smith then moved — and the assembly approved, as amended — a motion not to award the demolition bid until RFQ results are returned and to direct the manager to prioritize soliciting and encouraging responses to the RFQ. That motion carried 5–4.
Members on both sides emphasized competing obligations: some stressed the city’s limited fiscal capacity and the public’s request to avoid further demolition spending, while others argued that proactive city investment is required to make development feasible on the hill and to address downtown housing shortages. The approved sequencing change pauses demolition award to gather developer proposals, with staff charged to intensify outreach to maximize meaningful RFQ responses.
