NOTN- City manager Katie Koester told the Assembly of the Whole Monday evening, that the Burns Building renovation, or the new City Hall is delayed and will not allow offices to move out of temporary space by year‑end as planned.
“We are not going to be able to move out of the Marine View building or this building by the end of the calendar year as we had originally hoped, so we have entered into an additional six-month lease with Marine View. We anticipate the project to be complete by May.” Koester said.
Bids are still being received; alternates in the bid package total about $1.3 million for items such as flooring, ceiling work and mechanical controls. The city has signed a six‑month lease extension for its space at Marine View, and Koester warned that lease costs and schedule slippage could draw on project contingency.
Koester said they may request additional funding or transfer from the lands fund if needed and will update the Assembly when bid results are finalized and a construction award is required.
The Assembly also moved forward with two parallel paths to dispose of the current City Hall at 155 Heritage Way after extended discussion.
Members voted to advance an ordinance for a sealed competitive bid sale with a $2.5 million minimum and also directed staff to prepare a negotiated‑sale ordinance for consideration with the Sealaska Heritage Institute’s $1.5 million proposal.
Members cited community and year‑round benefits from a cultural use, but others pushed to test market interest through bids.
“Not everything can be quantified, so I weigh the value of having a known entity being in this space.” Said Assembly member Maureen Hall, “I see the quandary. Do we open it up for a bid and go with the highest bidder, or see what it is and then scale back to an entity that’s going to provide year-round benefit and additional benefit to the community as far as sharing of resources.”
The twin approach schedules both options for the same public‑hearing timeline so the Assembly can weigh competitive offers against a negotiated community proposal.
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