Anchorage Assembly to vote on paying $2.5M settlement to contractor for work on homeless shelter

Anchorage City Hall
A small group of Anchorage Assembly members and the news media gather for a press conference outside Anchorage City Hall on April 19, 2023. (Jeremy Hsieh/Alaska Public Media)

Update, Monday afternoon: 

The Anchorage Assembly held a special meeting Monday about a proposed legal settlement for a construction contractor suing the city, but did not vote on it. 

The Assembly set June 16 for a public hearing and vote on the proposed payout of nearly $2.5 million to Roger Hickel Contracting. The company wants to be paid for work it started last year to build a new homeless shelter and navigation center for the city. 

Attorney Bob Owens has been working on the case for the city. He updated the Assembly on the status of that case, and how the settlement fits in. The contractor has a motion pending asking the judge for a decision without a trial. 

“In other words, it basically says, ‘We’re entitled to a judgment promptly without going through discovery and the usual pre-trial procedures because there really aren’t many facts in dispute,’” Owens said. “After filing that motion, RHC delivered a letter to us that offered to settle the case for the amount claimed without interest, costs or attorney’s fees.”

The city has a deadline to respond by June 19. Assembly Chair Chris Constant said he intends for the Assembly to debate and vote on the settlement measure after the public hearing on June 16. 

Jeremy Hsieh

Original story:

The Anchorage Assembly is set to take up a potential legal settlement with a local construction company. It’ll be the Assembly’s third decision in two weeks on payouts to settle legal claims against the Bronson administration — and it’s the largest amount. 

The Assembly will vote Monday whether to pay Roger Hickel Contracting roughly $2.5 million for work it completed on a controversial homeless shelter project in East Anchorage.

The contractor had begun construction last year. However, work was suspended by the Assembly after it was revealed that Mayor Dave Bronson’s administration authorized spending millions of dollars on the project without Assembly approval. 

Roger Hickel Contracting later sued the city in March, asking for roughly $2.5 million for the work they’d done.

Last week, Assembly members approved a legal settlement of just over $270,000 for Heather MacAlpine, the city’s former director of the Office of Equal Opportunity, who also sued the city. She says she was fired illegally for investigating complaints made against former Deputy Library Director Judy Eledge. 

Meanwhile, the Assembly voted down a $550,000 settlement for former municipal manager Amy Demboski who was fired in December.

Though she didn’t file a lawsuit, Demboski alleged in a letter numerous unethical and unlawful actions by the Bronson administration, including directing Roger Hickel Contracting to build the East Anchorage shelter without Assembly approval. Demboski’s lawyer has said he and his client are disappointed by the Assembly’s decision, and will discuss whether to sue the city. 

a portrait of a man outside

Wesley Early covers Anchorage life and city politics for Alaska Public Media. Reach him at wearly@alaskapublic.org and follow him on X at @wesley_early. Read more about Wesley here.

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