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Peggy Ward is right-on in her views. Juneau has a hill overlooking Auke Lake that would be perfect for a new capitol site. Since the Empire's memory is somewhat limited, I should prompt you to look in the news archives for earlier articles that described some building possibilities on Petersen Hill. They looked great but were not pursued since Juneau was riding high from defeating another capitol-moving force.
Expanding the capitol building in an area where there is little room for parking and expanding into what has become a tourist area is really poor planning. Think about the crush of state workers, legislative workers, and tourists all running into each other in the density of "downtown" Juneau; this is ridiculous.
We should accept the de-facto point that Juneau, population and business, is really focusing on the Valley while downtown is focused on tourism. I never go downtown any more unless I have city business, and I certainly don't go downtown in the summer.
I think the Juneau Assembly and capitol committee should consider the alternative of a entirely new capitol site rather than Band-Aid the current one.