02/25/2010 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

              HB 273-MUNICIPAL GENERAL GRANT LAND                                                                           
                                                                                                                                
9:38:10 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON announced  that the next order  of business would                                                               
be HOUSE  BILL NO. 273,  "An Act  relating to general  grant land                                                               
entitlements for the City and  Borough of Wrangell; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
9:38:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON, Alaska State Legislature,  speaking as                                                               
the sponsor  of HB  273, explained  that HB  273 would  correct a                                                               
deficit in the formation process  that resulted in a minimal land                                                               
entitlement,  1,952 acres,  for the  City &  Borough of  Wrangell                                                               
(CBW).   The aforementioned would  be accomplished  by increasing                                                               
CBW's municipal  land entitlement.   The land grant  requested in                                                               
HB  273 was  derived  from  the average  percentage  of the  land                                                               
grants  that  were  given  to   other  boroughs.    However,  the                                                               
legislation was held in the  House Community and Regional Affairs                                                               
Standing Committee  in order to  allow CBW and the  Department of                                                               
Natural  Resources (DNR)  to  agree on  a  specific acreage  that                                                               
would  be  appropriate  for  the   CBW's  municipal  land  grant.                                                               
Negotiations  between   CBW  and  DNR  resulted   in  a  proposed                                                               
amendment that would entitle CBW  to 6,506 acres.  The additional                                                               
acreage, she  related, is important  to provide for the  needs of                                                               
the  borough and  address the  economic, cultural,  and resource-                                                               
based goals of the CBW  residents.  Therefore, she encouraged the                                                               
committee to adopt the amendment  and report the legislation from                                                               
committee.                                                                                                                      
                                                                                                                                
9:40:51 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  MUNOZ  moved that  the  committee  adopt the  amendment                                                               
labeled 26-LS1292\A.1, Cook, 2/24/10, which read:                                                                               
                                                                                                                                
     Page 2, line 6:                                                                                                            
          Delete "18,675"                                                                                                   
          Insert "6,506"                                                                                                    
                                                                                                                                
CO-CHAIR HERRON objected for discussion purposes.                                                                               
                                                                                                                                
9:42:37 AM                                                                                                                    
                                                                                                                                
TIMOTHY ROONEY,  Borough Manager,  City and Borough  of Wrangell,                                                               
related his belief  that all would believe that  CBW shouldn't be                                                               
penalized because of the lack  of state land in Southeast Alaska.                                                               
The  existing  formula for  land  grant  entitlements worked  for                                                               
other communities because there  was enough available state land.                                                               
However,  CBW is  unique and  thus he  requested the  committee's                                                               
support for the legislation.                                                                                                    
                                                                                                                                
9:43:46 AM                                                                                                                    
                                                                                                                                
CAROL RUSHMORE,  Economic Development Director, City  and Borough                                                               
of Wrangell, informed  the committee that since  its last meeting                                                               
on HB 273,  CBW has met with  DNR numerous times to  work out the                                                               
entitlement amount.  The CBW  had selected about 9,000 acres, but                                                               
about a week  ago the issue of the  sustainable yield calculation                                                               
for the  annual allowable timber harvest  arose.  Since CBW  is a                                                               
timber  community,  it  understands  the  state's  need  for  the                                                               
aforementioned.   Therefore,  CBW carefully  reviewed the  [9,000                                                               
acres] of  land it selected  in terms of  how it could  work with                                                               
DNR.   There were  three areas of  concern to DNR.   One  area of                                                               
concern  was the  Bradfield  area, which  has  some state  forest                                                               
lands.  The CBW has been  pursuing the Bradfield Road for over 60                                                               
years; the  area is extremely  important to  CBW from a  port and                                                               
road corridor  standpoint.  Another  area of concern for  DNR was                                                               
the  Crittenden  Creek  area, which  has  some  valuable  timber.                                                               
However, it's right  across from the Wrangell  community and thus                                                               
would be a  logical expansion for the borough  from a commercial,                                                               
settlement, and  recreational standpoint.  Still,  CBW decided to                                                               
reduce its  selection in that  area.   The agreement was  that as                                                               
DNR pursues  timber sales in  the Crittenden Creek area,  the log                                                               
transfers to roads  may help CBW in accessing its  area.  The CBW                                                               
will continue to discuss the  aforementioned with DNR.  The third                                                               
area of concern was Wrangell  East, which is commonly referred to                                                               
as the  Back Channel.   This area  is a long  strip of  land that                                                               
DNR,  over the  last  few years,  has used  for  timber sales  to                                                               
benefit CBW.  The CBW is  still looking at some pockets of timber                                                               
and there is  an existing settlement and the  potential for other                                                               
settlements.   Moreover,  the Wrangell  East area  is 10  minutes                                                               
from town and  two roads from town access the  area.  She related                                                               
that CBW  is working with  DNR regarding potentially  linking the                                                               
two  roads and  providing  access to  some of  the  lands CBW  is                                                               
considering  in that  area.   Mr.  Rushmore opined  that CBW  has                                                               
worked with DNR  to provide the sustainable  yield calculation as                                                               
well as the things that CBW needs to move forward in the future.                                                                
                                                                                                                                
9:46:42 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON asked  if CBW  has,  through the  aforementioned                                                               
negotiations, reserved  acreage for discussion in  the future, or                                                               
is the 6,506 acres all CBW will receive.                                                                                        
                                                                                                                                
MS. RUSHMORE  related her  understanding that  this is  CBW's one                                                               
chance to select the lands that it's seeking.                                                                                   
                                                                                                                                
REPRESENTATIVE HARRIS commented that CBW is giving up a lot.                                                                    
                                                                                                                                
MS. RUSHMORE interjected  that she doesn't know  the mechanics of                                                               
this and thus would defer to Representative P. Wilson.                                                                          
                                                                                                                                
9:47:41 AM                                                                                                                    
                                                                                                                                
CO-CHAIR MUNOZ explained that the  land grant allocations are set                                                               
at 10  percent of vacant [unappropriated  unreserved (VUU)] state                                                               
lands,   which   for   CBW  would've   originally   amounted   to                                                               
approximately 1,800  acres.   The CBW went  through a  process to                                                               
identify  additional  lands  outside  of  those  VUU  lands  that                                                               
resulted  in CBW's  request  for 18,675  acres.   The  department                                                               
voiced serious  concern for  that large amount  of acreage.   The                                                               
requested  land  entitlement  in the  earlier  offered  amendment                                                               
recognizes a compromise  between all of the  parties.  Therefore,                                                               
Co-Chair Munoz  related her  support for  the change  embodied in                                                               
the amendment.                                                                                                                  
                                                                                                                                
9:48:37 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON pointed out that  in 50 years things could change                                                               
and  CBW  may have  a  serious  need  for  land.   Therefore,  he                                                               
questioned why CBW would forever give  up acres to which it has a                                                               
right merely because of these negotiations.                                                                                     
                                                                                                                                
CO-CHAIR MUNOZ deferred to DNR  regarding the process that led to                                                               
the [6,506 acres].                                                                                                              
                                                                                                                                
9:49:59 AM                                                                                                                    
                                                                                                                                
REED  HARRIS, Staff,  Representative Peggy  Wilson, Alaska  State                                                               
Legislature, reminded  the committee that  there is a  formula by                                                               
which when  boroughs are  formed they receive  10 percent  of VUU                                                               
designated land.  The difficulty in  CBW is that 97.28 percent of                                                               
the land  in Wrangell is  federal land as  most of the  island is                                                               
part  of the  Tongass  National Forest.    Therefore, CBW's  land                                                               
grant  entitlement was  very  small,  approximately 1,900  acres.                                                               
Upon  research by  CBW's consultant,  it was  discovered that  on                                                               
average boroughs  receive 1.13  percent of  the lands  within the                                                               
borough  as   the  entitlement.     However,  CBW's   land  grant                                                               
entitlement  was .12  percent and  thus  significantly less  than                                                               
that  average.   Using CBW's  total  land plus  the 1.13  percent                                                               
resulted in the request for 18,675 acres.                                                                                       
                                                                                                                                
9:51:34 AM                                                                                                                    
                                                                                                                                
DICK  MYLIUS,  Director,  Division  of Mining,  Land  and  Water,                                                               
Department of Natural Resources, began  by thanking CBW for being                                                               
willing to  work out this  issue.   The acreage in  the amendment                                                               
works for  DNR and CBW.   He reminded the committee  that DNR was                                                               
concerned  with the  formula  utilized to  arrive  at the  18,675                                                               
acres because it established a  troubling precedent.  A precedent                                                               
that the department  feared may result in  other boroughs seeking                                                               
larger  land entitlements.   Furthermore,  DNR believes  that the                                                               
original  request in  HB  273 would've  consumed  too much  state                                                               
land, 57 percent, and would've  caused a tremendous impact on the                                                               
state's  timber   program  throughout  Southeast  Alaska.     The                                                               
meetings between CBW  and DNR educated DNR  regarding CBW's needs                                                               
and  CBW regarding  the impacts  of  the land  selections on  the                                                               
state's timber program and other  programs.  The two parties came                                                               
to  an agreement  as related  in the  earlier offered  amendment.                                                               
Mr. Mylius  related that DNR  supports the 6,506 acre  request by                                                               
CBW.    He  clarified  that  the  aforementioned  acreage  amount                                                               
doesn't  reduce  the borough's  entitlement  per  the formula  in                                                               
statute.  In fact, the 6,506  acres is about three times the land                                                               
entitlement it would receive per existing law.                                                                                  
                                                                                                                                
9:54:16 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON withdrew  his objection to the  amendment.  There                                                               
being  no   further  objection,  the  amendment   [text  provided                                                               
previously] was adopted.                                                                                                        
                                                                                                                                
9:54:32 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  MUNOZ  moved to  report  HB  273,  as amended,  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal  note.  There  being no objection, CSHB  273(CRA) was                                                               
reported from  the House Community and  Regional Affairs Standing                                                               
Committee.