The Alaska Legislature’s House-Senate Committee approved $6.6 million in funding to renovate a downtown Juneau building into 33 apartments. This will be for staff and legislators.
The proposal was approved by lawmakers during Monday’s vote.
Housing is one of our greatest challenges,” stated Sen. Bert Stedman (R-Sitka).
He said, “I believe this is the right decision.”
A Juneau-based foundation is subsidizing construction costs. Their goal is, at most, to keep Juneau the state capital.
The Assembly Building will be the new apartment building for the Legislature. It was built in 1932. It is located kitty-corner of the Capitol. It was originally built as an apartment building, but was converted to offices in the 1980s.
The renovations will take at least one year with an expected completion date of January 2024. It’s not yet clear how the building is going to be managed, who will have access to it, and whether legislators will get rid of their per diem expenses if they live in a state-owned apartment.
Legislators were entitled to $307 per legislative session in 2022. This was to pay for food, housing, and other expenses during the legislative session. These payments were in addition to their annual salary of $50,000.
The Legislative Council voted 9-2 to approve the apartment plan, with Republicans, Democrats, and Independents voting in support.
Against it were Republican Rep. Cathy Tilton (R-Wasilla) and Sen. Mike Shower (R-Wasilla).
Tilton stated that “I don’t like the Legislature being in business of being landlords and competing with private sector.”
Shower stated that he is concerned about rising costs for the project. The Legislative Council approved a $5.5million plan based upon preliminary estimates. The final contract with Dawson Construction is almost $8.6million.
The Juneau Community Foundation bought the building in 2021. It gave it to the Legislature for free. They are also donating $2million to help pay part of the renovation. This will lower the Legislature’s share at $6.6 million.
Juneau is the capital city. It fills up our restaurants and brings people in,” Amy Skilbred (executive director) of the foundation, which is worth $70 million.
The wealthy owner of Juneau’s electric company, Alaska Electric Light and Power , sold the business and donated the majority of the proceeds to the foundation. The Juneau Capitol Fund was one of the conditions for that donation. It is designed to support the Capitol so long as it remains in Juneau.
Skilbred stated that the purchase of the Assembly Building is in keeping with the fund’s goals.
She said that staff and legislators have had difficulty finding housing because of the fact that May is tourist season, which compresses the market for short-term rentals at end of legislative session.
These problems can be exacerbated by the Legislature calling special sessions during the summer.
Skilbred stated, “It’s difficult to find housing during and after sessions when they are called back.”
Garrett Schoenberger, Juneau realty agent and developer said that the price for the renovation is “high but not surprising.”
He said, “I would say that’s probably in accord with just the crazyness of today’s building pricing.”
Plans published February include 15 one-bedroom apartments as well as 18 studio apartments, each with a shared laundry.
Juneau is in a similar situation to other Alaska towns and cities. The downtown of Juneau has many commercial buildings that have been converted into apartments on the upper floors.
Shoenberger stated that renovating the Assembly Building was a “net gain for our community” as he hopes it inspires others to do similar things.
He said, “It’s an added benefit.”
The Alaska Beacon originally published this story. It is republished with permission.
