Next steps for Telephone Hill redevelopment to be considered by Juneau Assembly on Monday

Revised timeline after legal delays envisions possible agreement with developer by fall 2027; draft guidelines still seek up to 155 housing units, but will allow other proposals

Fences surround vacated homes on Telephone Hill on Saturday, Oct. 31, 2026. (Mark Sabbatini / Juneau Independent)

By Mark Sabbatini

Juneau Independent

A year-long delay in the proposed redevelopment of Telephone Hill is back before the Juneau Assembly on Monday night with a new timeline that envisions awarding a contract to a developer a year from now.

The type of redevelopment and number of residences are not firmly set in a draft Request for Qualifications being presented to the Assembly at a Committee of the Whole meeting. It notes the objective is for "up to 155 market-rate and affordable units" on 1.4 acres of the four-acre downtown site, but the City and Borough of Juneau "is not requesting specific design proposals and/or financial analyses at this point."

"CBJ is open to proposals with other mixes of affordable and market-rate units, as long as some affordable units are planned," the draft RFQ adds.

If the Assembly approves moving ahead, city staff will formally publish the RFQ next week and keep it open for at least 60 days, according to City Manager Katie Koester. A timeline issued by her office envisions Assembly review of proposals next February, finalizing terms with a developer by staff during spring, a public hearing on the proposed agreement in July, and finalizing the deal in September or October.

The Committee of the Whole meeting is scheduled to begin at 6 p.m. in the Assembly Chambers at City Hall. Because it is a work session, public testimony will not be taken. Email comments can be submitted at any time to boroughassembly@juneau.gov.

Redevelopment of the neighborhood that features some of Juneau’s oldest homes has been both controversial and a well-known intention among people who lived there as renters for many years. The state considered it as a possible new Capitol site after acquiring the land during the 1970s and the city began exploring residential development possibilities when it took over ownership in 2022.

A development concept that got the initial go-ahead from the Assembly in early 2024 called for four midrise buildings that would include "a mix of studio, 1-bed, and 2-bed units, for a total of 155 new units added to the site," according to the draft RFQ.

The Assembly last Juneau approved a redevelopment plan that included evicting the occupants of 13 residences in seven structures by October, but legal delays resulted in the final home being vacated in February. That stalled plans to begin the demolition process of existing homes last fall and the Assembly in April voted to further postpone the process pending further consideration of redevelopment options.

Some of the evicted residents have filed a civil lawsuit against the city challenging its redevelopment plans, with a trial scheduled to begin Dec. 14. City officials have stated they plan to proceed with the redevelopment process despite the trial, but the revised timeline means bidders would still be submitting proposals when the trial occurs.

The draft RFQ lists three key goals:

• "Construct up to 155 housing units in downtown Juneau, ideally with 30 units to be offered at a price affordable to households earning 80% of the area median income (AMI). The CBJ is open to proposals with other mixes of affordable and market-rate units, as long as some affordable units are planned."

• "Create or preserve open space and recreation areas for the local community."

• "Create a project that is attractive to mixed-income groups including the local workforce and seniors."

An update posted this month at the city’s Telephone Hill webpage notes "Fencing has been installed on the Telephone Hill site with the purpose of securing the properties, preventing unauthorized entry, and protecting against damage until next stages of site development. The site will continue to be monitored by the property manager."

City leaders favoring the redevelopment project say it will help address a housing shortage that is one of Juneau’s biggest ongoing problems, an issue that may be relevant with the planned homeporting of a U.S. Coast Guard icebreaker in Juneau that will bring up to 340 crew and family members.

Former residents and other opponents of the project say they want to protect at least some of the neighborhood’s historic homes — possibly by allowing smaller-scale development that keeps them intact — and question impacts higher-density housing such as apartment buildings will have on the area.

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.