The Juneau Assembly unanimously asked the city manager to explore moving all city staff to the building that houses the Alaska Permanent Fund Corporation on Monday.
The city has been looking for new office space since this fall, when voters rejected the city’s request to fund a new City Hall through a $27 million bond. It was the city’s second attempt to fund a new city hall through a ballot measure.
Assembly member Wade Bryson said he favors having all employees under one roof despite the higher costs of leasing space — anticipated to be around $1.6 million a year.
“Nobody likes what a lease rate is going to be but that’s what the citizens asked us to do. To lease space instead of go build new stuff,” he said. “That’s what we’re doing, let’s do it right and have everybody under the same thing.”
Right now, 60% of the city’s employees can’t fit in City Hall. They work in four separate office spaces downtown, at a total cost of nearly $900,000 per year in rent.
The Michael J. Burns Building, which houses the Permanent Fund offices on 10th Street, is one of three rental options that met the city’s criteria. City Manager Katie Koester said it appears large enough to fit all city employees — an issue city leadership pointed to during the past election.
Tracey Ricker of Ricker Real Estate, the broker representing the Alaska Permanent Fund Corp., said space will soon be opening in the building.
“One of the reasons we have more square footage to house CBJ is because one of the state agencies has verbally said that they are not going to renew their lease at mid ‘25,” she said.
The corps’ board of trustees announced in August that it will open a satellite office in Anchorage. The Alaska Beacon reported that about 5% of staff could relocate to Anchorage.
Assembly member Wáahlaal Gíidaak Barbara Blake said she supports the city moving to entirely leased space because of the maintenance problems and lack of space at City Hall.
“Knowing what this building needs in order to keep it functioning safely, literally safely for employees, I think it makes sense for us to be in a space all together,” she said.
According to the city, renovating and repairing City Hall, which has cracking walls, leaking ceilings and asbestos in the carpet, would cost around $14 million.
Koester said the Michael J. Burns Building also offers the option of a partial move, should the Assembly decide against a full move. She said the city could rent out City Hall if a full move occurs.
Deputy Mayor Michelle Bonnet Hale suggested selling it.
Correction: This story has been updated to reflect that Alaska Permanent Fund Corporation announced in August that it will open a satellite office in Anchorage.
Disclosure: Tracey Ricker serves on KTOO’s board of directors.
