1998-02-06                     House Journal                      Page 2237
HB 382                                                                       
HOUSE BILL NO. 382 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act relating to international airports revenue bonds; and                 
providing for an effective date."                                              
                                                                               
was read the first time and referred to the House Special Committee            
on International Trade & Tourism and the Transportation and Finance            
Committees.                                                                    
                                                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal note, Dept. of Revenue, 2/6/98                                          
Zero fiscal note, Dept. of Transportation & Public Facilities, 2/6/98          
                                                                               
                                                                               
The Governor's transmittal letter dated February 4, 1998, appears              
below:                                                                         
                                                                               
"Dear Speaker Phillips:                                                        
                                                                               
The Anchorage International Airport is a vital business center and             
major force in Alaska's economy.  As our economy grows, Alaska's               
largest airport must be poised to accommodate and assist that growth.          
This bill I transmit today authorizes the issuance of $204 million in          
revenue bonds to pay for a much-needed redevelopment of the                    
Anchorage International Airport to better meet airport user needs today        
and into the next millennium.                                                  
                                                                               
A record number of passengers - more than 5 million - used                     
Anchorage International Airport last year.  Analysts expect a 4 percent        
annual domestic growth rate to continue through the year 2005. The             
airport generates 7,000 direct jobs and another 4,000 indirect jobs, and       
that job growth also is expected to increase by about 5 percent in             
coming years.                                                                  
                                                                               

1998-02-06                     House Journal                      Page 2238
HB 382                                                                       
Along with this demand and growth, Anchorage's domestic terminal               
suffers from major deficiencies.  The terminal area is only 75 percent         
of the space needed, while the baggage claim and ticket lobby areas            
are only 40 percent of necessary space.  Concourse C, built in the             
1950s, is functionally obsolete and code deficient.                            
                                                                               
                                                                               
The airport redevelopment plan is projected to cost about $191 million         
with $26 million coming from federal funds.  The plan will expand the          
existing ticket lobby, baggage claim, and retail areas by 350,000 square       
feet; add five new aircraft jetways, seven aircraft parking spaces for         
regional carriers, and a tour-group handling facility; and extend              
curbside space for vehicles.                                                   
                                                                               
                                                                               
The airport redevelopment plan is the product of a comprehensive               
needs assessment that examined existing terminal facilities and forecast       
passenger demand.  Based on international aviation standards, the              
assessment identified major deficiencies for both passengers and               
aircraft.  Airport officials and airlines spent six months carefully           
examining 14 different terminal master plan concepts.  This effort             
resulted in a generally agreed upon concept for terminal redevelopment         
and expansion for the year 2005.  The plan accommodates a variety of           
future development options for the next 20 years. Airlines that have           
signed the airport's five-year operating agreement recently committed          
to provide the revenue necessary to pay the debt service on these              
bonds through user fees, as provided in the operating agreement.               
                                                                               
                                                                               
It is vital to the state's economy that we improve and expand the              
Anchorage International Airport to keep pace with public and business          
demand.  This bill is a necessary element to permit financing of the           
airport expansion project.                                                     
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"