Alaska has returned to Juneau, a multimillion-dollar parcel of land that was once intended for a new Capitol building.
On Tuesday, Vasilios Gialopsos , Acting Commissioner of the Department of Natural Resources, signed an order to transfer Telephone Hill, a historic residential neighborhood overlooking downtown Juneau to the capital.
The legislation was passed earlier this year by lawmakers. It ended a nearly 50-year-old project to build a new Capitol for Alaska Legislature.
Kiehl stated in August that “it really needs to be the hands of the City.” It will lead to better use of the parcel with full public participation.
John King, DNR natural resources specialist, stated that the transfer will not be finalized until the city officials sign an acknowledgment of release from state liability. This would allow the deeds to be transferred.
Juneau officials are already considering all options, including the possibility of using the property as a new city hall.
Local voters rejected a proposal for $35 million to fund the new city hall. However, because the bonding proposition failed to pass by less than three percentage points, Rorie Watt, the city manager, stated that officials believed voters might have liked the idea of building a new cityhall, but not the specific plan.
Kiehl stated that he does not care about the idea of a city hall.
He said, “This is prime real estate.” It could be hotel or condo, with a variety of housing options, including an inclusive low-income component. Or it could be large-scale light commercial. Although I don’t think that Juneau should have its own city hall, I am not opposed to it.
Telephone Hill residents are also concerned about the idea. They’ve been left in limbo since Kiehl’s legislation was passed and are now subject to unenforced, eviction notices.
Tony Tengs , a resident, testified in September to the city assembly that it is not sensible to demolish homes in times of housing crisis.
Telephone Hill, Juneau’s oldest historical neighborhood, is home to the Edward Webster House which was built in 1882. According to a August city survey, seventeen people live in seven of the seven properties in the neighborhood. The area’s seven properties are not eligible for historic recognition as they have been modified. However, all of them date back to before 1920 and are among the oldest remaining Alaskan homes.
Since 1984, the state has owned the neighborhood. It was contemplating building a new Capitol so it purchased the land in anticipation. Under the condition that the property be developed for a new Capitol Building, the city contributed $2million to the purchase of the hill’s properties.
This never happened due in part to the high cost of the project, the controversial result from a 2005 city-sponsored Capitol design competition. The state was charged interest by the city on the $2 million invested. The figure was $6.4 million by 2008. Juneau and the state had signed an agreement in which the debt would be forgiven if it was transferred to the city.
Governor Mike Dunleavy was elected in 2018. In 2018, Mike Dunleavy was elected governor. He ordered a review of Alaska’s surplus land. Telephone Hill, then owned by the Department of Transportation and Public Facilities, was identified to be a prime candidate for disposition.
In preparation for the final transfer to the city, DOT transferred Telephone Hill from DNR after Kiehl’s legislation was passed. This ended a long-running lease agreement with the remaining residents of the neighborhood, who were served with eviction notices on August.
Watt stated that the city does not intend to enforce those notices. Residents are currently on month-tomonth leases with Watt, who is also responsible for managing the property.
City officials will decide how long the status quo can be maintained once they take full control of the local government.
Kiehl stated in August that there are many good options and, frankly, downtown has tremendous opportunities for redevelopment.
The Alaska Beacon originally published this story. It is republished with permission.
