It has been 25 years or more since Juneau has seen a new state office building erected in the capital city. Approximately 500 state employees are housed in space that needs immediate infrastructure investment – and in the case of the Department of Labor space –the current lease expires in 2012 and the state will need to vacate the building. This creates an opportunity to partner with The Alaska Mental Health Trust, the owner of some of the most desirable commercial space downtown – the old subport area.

One year ago, Trust officials and the Department of Administration began discussing the possibility of partnering on a project that would provide state office space while at the same time supporting the beneficiaries of the Alaska Mental Health Trust. A local architect was hired to draw up plans for a facility that could house the Departments of Labor, Fish and Game, Corrections and Public Safety.

The design envisions a well built, energy efficient facility consistent with the values of the Waterfront Plan. Covered pedestrian facilities on the Egan Drive side, and plaza like opportunities in part of the building will increase the community features of the site. The area which is now rarely used by pedestrians will be converted into a multi-use, urban hub. New green space and integration with the waterfront will not only attract use by the employees at the Trust building, but our residents and visitors alike will be able to enjoy this new waterfront space.

HB 161 and SB 157 are the vehicles to see this project happen. The legislation will enable the Trust to access $22.7 million in Trust Funds currently invested by the Permanent Fund, and allow the State to issue Certificates of Participation for an equal amount. Receipts from the state leases will be used to pay off the certificates on a 20 year cycle. It is important to note that the State will save approximately $13 million over the life of the lease in the proposed Trust facility, as compared to investing in the current infrastructure upgrades and required new leasing.

HB 161 will be heard in the House Finance committee on March 23 at 1:30 p.m. This is an important project for Juneau and for the Southeast region. This is a bi-partisan effort unanimously supported by all southeast legislators, and many of our friends "up north."