Juneau sets hearing on $1.5M City Hall sale to Sealaska Heritage Institute

The City and Borough of Juneau will take public testimony Aug. 17 on whether to sell the old City Hall site to Sealaska Heritage Institute for $1.5 million or open the property to the highest bidder. The decision determines whether SHI's proposed arts building at the site moves forward.

SHI released architectural schematics for the building last week. The facility would span roughly 30,000 square feet across three floors and include a Northwest Coast art glass studio. The institute would give the city first right of refusal to move the Juneau-Douglas City Museum to the building's second floor, closer to the cruise ship docks. SHI is also weighing space for apartments, citing the community's housing needs and those of its own employees.

SHI President Rosita Worl said the proposal would bring "more Northwest Coast arts, cultural experiences and economic diversity to Juneau."

The existing building would have to come down first. It is contaminated with asbestos and other toxins, and the city has deferred $13 million in maintenance on it. Demolition alone would cost more than $1 million before construction could begin, SHI Chief of Operations Lee Kadinger said. Construction would run about $32 million at today's prices, he said, and closer to $40 million over a four-year fundraising timeline.

City staff recommended a sealed-bid sale with a $2.5 million minimum after consulting the assessor. The Assembly advanced both options in July.

At the Assembly's July 13 discussion, Mayor Beth Weldon floated raising the minimum to $5 million. "I support SHI, but again, they don't pay property tax, so we're going to get $1.5 million and that will be it," Weldon said.

Assembly member Neil Steininger said he wanted the lot's value known first. "I think the best way is by putting it out to bid," he said.