NOTN- The Juneau Assembly has approved selling City Hall to Sealaska Heritage Institute for $1.5 million, rather than putting the property up for auction with a minimum bid of $2.5 million.
Assembly members on both sides of the debate framed the decision as a test of Juneau’s priorities: shore up depleted city reserves, or lock in a project supporters say will anchor a year-round cultural campus at the gateway to downtown.
“I will start by saying that there are many ways to look at this. What is our ultimate goal? Are we trying to get maximized profit, are we trying to maximize control?” Said Assembly member Alicia Hughes‑Skandijs, “As we move out of that space, I think it is so important for us to think about what we leave in that space. This is a way for us to leverage this opportunity that is going to result in the maximum community good, and is something we can feel good about in completing a beautiful campus with a beautiful mission.”
Public testimony mirrored the Assembly’s split, with longtime Juneau residents and SHI partners urging approval and others warning that bypassing an open bidding process could shortchange taxpayers.
“SHI has a proven track record for designing and building exceptional structures that contribute to the beauty and attractiveness of downtown,” Said Dr. Charles Smith.
Assembly Member Nano Brooks was opposed along with Deputy Mayor Greg Smith and Neil Steininger.
“I’ll object, and it’s a really unfortunate scenario because if we were in a better financial standing a year prior, this would be an easy decision, but we completely wasted all of our savings.” Brooks said, “I believe that we should try and get as much money as possible for the property. In regular circumstances, I wouldn’t see it that way. But this, to me, is viewed as one of the few opportunities that we can recoup some of that much needed reserve funds.”
The measure sets a minimum sale price of $1.5 million and leaves room for that figure to be adjusted in negotiations, according to the city attorney.
Some members argued the sale proceeds could help rebuild reserves or cover looming capital needs; the ultimate decision is reflected well by Assembly Member Ella Adkison, who noted that if the building went up for auction, that would be one-time revenue and would not address Juneau’s ongoing budget deficit.
“I think that we are putting a lot of pressure for our entire budget situation on this one one-time transaction, and I would say that if people on the Assembly were concerned about the state of our fund balance, then we should have made different decisions in our recurring budget process.” Adkison said, “This is not the weight of the entire city’s future, I would rather have this be something our city is proud of, that is year round, that supports cultural education, rather than have a $5 million dollar one time slug of cash to put somewhere. I would have been happy to have more money in our fund balance, but those were not the decisions we made last budget cycle.”
City Hall will remain in its current location until staff relocates to the Burns Building. SHI representatives told the Assembly they intend to demolish the existing structure, clean up environmental issues and quickly convert the lot into landscaped public space while raising funds for a new building.
