Perched on the steep, forested slopes of Telephone Hill above downtown Juneau, seven weathered homes have stood watch over Alaska's capital for generations.

Their Victorian-style porches have overlooked the glistening Gastineau Channel since the gold rush of the late 1800s, with the earthy hazel-colored properties appearing almost like a natural part of the 100-foot ridge beside lush glacier-tipped mountains. 

However, residents who have been living a quiet existence in the historic homes for decades recently found themselves at the center of a fierce tug-of-war between modern development and historical preservation.  

The city plans to demolish the homes at a cost of $5.6 million to make way for 155 condo units which would provide much-needed housing for the next generation - though a contractor for the glossy new project has not yet been secured. 

City and Borough of Juneau officials began the process by evicting residents in November, and the last of the tenants had moved out by February this year. 

However, a handful of stubborn locals have hit back with a lawsuit against the city, claiming that tenants who have lived in the houses should not have been removed without a solid plan and contract for the new development. 

The lawsuit laments how Telephone Hill is 'known for its historic homes,' including Webster House, which is 'Alaska's oldest continuously occupied house.' Built in 1882, it was once a Navy outpost hosting the state's first commercial telephone company.

Larry Talley, 70, who is among the plaintiffs, told the Daily Mail he has lived in Juneau since the 1970s, and the homes would be demolished at a hefty cost to a city of just 31,000 people.

'The city is spending more than $5.5 million to destroy housing when it isn't clear whether they are going to be able to put additional housing up there,' he said. 

'So it was the money that got me involved - the city spending our money in a way that is probably going to be wasteful. 

'It would be more valuable to preserve the houses and add new ones in between to preserve the history while making it more vibrant. 

'Juneau is full of classic old houses, and it has arguably some of the oldest houses in the state.' 

Talley, who captains a local whale-watching ship, said the demolition of the homes comes at a high cost because, like many old properties, their structures are contaminated with arsenic, lead and asbestos.  

'If they get torn down, the waste has to be put in a container and shipped on a barge to Seattle because there's nowhere in the town of Juneau to dispose of hazardous waste,' he explained. 

'Juneau doesn't have a road out of it, so the city is going to spend millions of dollars just to ship this waste down to a disposal facility in Washington state, meanwhile destroying homes that people could live in.'   

Another longtime Juneau resident, Jacqueline Fowler, 73, slammed the city's development proposal as 'horrendous', saying local officials who passed it should be 'ashamed.'

'As the last family moves out of Telephone Hill, I cannot sit idly by regarding this absolutely horrendous decision, to tear down historical homes, on the part of the assembly,' she said in a statement when the decision was made. 

'Every member should be ashamed of this decision. It’s incredibly short sighted. 

'If you put this decision on the ballot, the town would overwhelmingly say no this is a bad idea.'

Communications Director for Mayor Beth Weldon's office, Ashley Heimbigner, confirmed that the proposed development has not yet secured contractors, and is currently on hold.  

'The assembly moved to pause the demolition until we have information back from developers and have a more firm project in place,' she told the Daily Mail.

'There's not currently a developer on board for the project.' 

'The assembly continues to prioritize this project because of the acute need for housing in Juneau,' Heimbigner added. 

'We have very little buildable land, and studies show we need an estimated 500 housing units. We are in desperate need of housing.'

Morgan Johnson, 29, who owns Pottery Jungle, a quaint store selling plants and pots close to the base of Telephone Hill, agrees.

'A lot of the houses are in pretty rough conditions, a lot of them are not very safe to live in,' Johnson told the Daily Mail. 

'There's a lot of not-great housing options in the Juneau area as is. It's a really wonderful place to live, but housing is incredibly tight. 

'Many housing options in town have mold, or lead paint, they're old buildings and things are crumbling, so the idea of newer housing that's safe and healthy to live in is really appealing to me.'

The need for housing becomes more acute over the summer, when seasonal workers flood the city to service the cruise ship and tourism industry which keeps the local economy afloat. 

Johnson said her own home, where she has lived for 10 years, is built in a landslide-prone area, and that many properties in Juneau are located in avalanche or flood zones.  

'I want the downtown to be lively, and have people walking around and filling up the space,' she added. 

'I think there are still ways to honor the history of the place while still creating livable homes for future generations.' 

However, anger over the development reached a boiling point this year, when one assembly member was unseated in favor of an anti-demolition candidate, casting yet more uncertainty over the future of the project. 

The State of Alaska had owned Telephone Hill since 1984, but in 2023 it ceded it to Juneau as a site for the expansion of much-needed housing.  

Heimbigner said the ousted locals have each been rehoused in city properties around Juneau, and their lawsuit against the city is ongoing. The development is likely to be in limbo for several more months.