Legislature(2007 - 2008)BARNES 124

04/03/2007 08:00 AM House COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 212 LAND TRANSFERS ALASKA RR & EKLUTNA TELECONFERENCED
Moved Out of Committee
*+ HB 222 PASSENGER VESSEL TAX CREDIT TELECONFERENCED
Heard & Held
HB 212-LAND TRANSFERS ALASKA RR & EKLUTNA                                                                                     
                                                                                                                                
8:06:25 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH  announced that  the first order  of business                                                               
would be HOUSE BILL NO. 212,  "An Act authorizing the transfer of                                                               
land from the  Alaska Railroad Corporation to  Eklutna, Inc.; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
8:06:43 AM                                                                                                                    
                                                                                                                                
BEN MULLIGAN, Staff to Representative  Bill Stoltze, Alaska State                                                               
Legislature,   explained  that   HB   212   is  land   conveyance                                                               
legislation in  which land from  the Alaska  Railroad Corporation                                                               
(ARRC) would  be conveyed to Eklutna,  Inc.  In order  for a land                                                               
transfer to  happen, ARRC has  to request and obtain  approval of                                                               
the  legislature  to  transfer  the land  known  as  the  Eklutna                                                               
Quarry, which is  48 acres [north of] Eagle River.   Prior to the                                                               
introduction  of HB  212,  ARRC, Eklutna,  Inc.,  and the  Native                                                               
Village of  Eklutna all  worked out the  logistics of  what would                                                               
occur with this  parcel and signed a  memorandum of understanding                                                               
(MOU) to that  effect.  Everyone is [in agreement]  with the deal                                                               
and thus coming before the legislature  is a formality.  What has                                                               
already been  blasted in the  quarry will  be taken out  and then                                                               
the parcel will be conveyed to Eklutna.                                                                                         
                                                                                                                                
8:09:12 AM                                                                                                                    
                                                                                                                                
CURTIS MCQUEEN, Corporate Affairs,  Eklutna, Inc.; Native Village                                                               
of Eklutna (NVE), thanked the  committee for hearing this matter,                                                               
which has been lingering for 30  years.  Mr. McQueen related that                                                               
Eklutna, Inc.  has worked closely  with NVE, which is  the tribal                                                               
side  of  the organization.    Over  30  years ago,  Eklutna  was                                                               
promised this  land and quarry  through the Alaska  Native Claims                                                               
Settlement Act  (ANCSA).  Although  ARRC, Eklutna, Inc.,  and NVE                                                               
don't have the best history  in regard to finding resolution, Mr.                                                               
Gamble  has been  very proactive  in attempting  to resolve  this                                                               
matter.  Over the last two  years, an agreement was reached after                                                               
working closely with ARRC.                                                                                                      
                                                                                                                                
8:11:00 AM                                                                                                                    
                                                                                                                                
PAT GAMBLE, President & CEO,  Alaska Railroad Corporation (ARRC),                                                               
Department of Commerce, Community,  & Economic Development, noted                                                               
his agreement  with Mr. McQueen in  that ARRC hasn't had  a great                                                               
history  with Eklutna  as the  48  acres resulted  in ARRC  being                                                               
taken  to supreme  court three  times.   However,  there is  rich                                                               
potential  with regard  to the  future  of Eklutna.   Mr.  Gamble                                                               
explained  that after  spending a  day  in NVE  talking with  the                                                               
elders, he  came to understand  the deeper meaning of  the quarry                                                               
in  relation  to the  culture.    The aforementioned  resulted  a                                                               
cultural approach  to the  solution.   He echoed  earlier remarks                                                               
that the  Railroad Transfer Act  specifies that ARRC  must obtain                                                               
approval from the  legislature to transfer land, which  is why HB
212 is before  the committee today.  Mr.  Gamble highlighted [the                                                               
importance]  of  the  relationship   ARRC  has  established  with                                                               
Eklutna through  this process as  there is  promising development                                                               
for Eklutna and  ARRC.  The geographic area [of  Eklutna] holds a                                                               
considerable   future  and   ARRC  is   already  discussing   the                                                               
possibilities  of  development  through  the area.    Mr.  Gamble                                                               
characterized  this  transfer  as   a  "no-brainer"  because  the                                                               
intention is  to pull up rocks  and finds on the  ground, cleanup                                                               
the property,  possibly adjust the  face of the quarry,  and pull                                                               
up the  track.  All of  the aforementioned will be  performed per                                                               
the MOU.   In  conclusion, Mr.  Gamble requested  the committee's                                                               
approval of the land transfer embodied in HB 212.                                                                               
                                                                                                                                
8:14:56 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  noted her appreciation  for Mr.  Gamble visiting                                                               
NVE to actually see the situation.                                                                                              
                                                                                                                                
MR. GAMBLE  said the visit  made all the difference  in resolving                                                               
the matter.   He commented  that this land transfer  doesn't hurt                                                               
ARRC, which  he characterized as a  good value for the  state and                                                               
the right thing to do.                                                                                                          
                                                                                                                                
8:16:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN   asked  if   any  other   reclamation  is                                                               
necessary  to  the area  beyond  taking  out  the rock  that  was                                                               
blasted.                                                                                                                        
                                                                                                                                
MR. GAMBLE replied no.                                                                                                          
                                                                                                                                
8:17:24 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH asked  if explosives will be able  to be used                                                               
to remove the  materials off the property with  24-hour notice to                                                               
the village.                                                                                                                    
                                                                                                                                
MR. GAMBLE replied yes, noting that's specified in the MOU.                                                                     
                                                                                                                                
CO-CHAIR FAIRCLOUGH related her  understanding that a conditional                                                               
use permit  will be  required.  The  conditional use  permit from                                                               
planning and zoning that happened  on December 4, 2006, specifies                                                               
that ARRC  shall seek  jurisdiction from the  U.S. Army  Corps of                                                               
Engineers  (COE) and  shall seek  clean  water authorization,  as                                                               
necessary,  from  COE  and the  Environmental  Protection  Agency                                                               
(EPA).  The document  further specifies  that ARRC  will sod  and                                                               
hydro seed the site in order  to maintain runoff and air quality.                                                               
The aforementioned  is located on page  2 of the document  and is                                                               
different than the MOU.  She  inquired as to which is the abiding                                                               
document.                                                                                                                       
                                                                                                                                
MR. GAMBLE informed the committee  that ARRC has already received                                                               
the conditional use permit to pick up  the rock.  He said that he                                                               
isn't familiar with the document  to which Co-Chair Fairclough is                                                               
referring and thus would need to obtain that information.                                                                       
                                                                                                                                
CO-CHAIR FAIRCLOUGH  said that  she merely  wanted the  record to                                                               
reflect how  the site will be  left and whether NVE  and Eklutna,                                                               
Inc. are happy  with planning and zoning's  expectations for ARRC                                                               
to leave the site with some  vegetation.   She related her belief                                                               
that NVE  and Eklutna, Inc.  may want to  return the area  to its                                                               
natural habitat.                                                                                                                
                                                                                                                                
8:19:44 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH then  turned  to the  disparity between  the                                                               
value of  the materials  coming off  the site.   She  pointed out                                                               
that  the  sponsor statement  specifies  that  the value  of  the                                                               
materials  is  approximately  $2  million while  a  letter  dated                                                               
January 22, 2007, specifies that the value is $1 million.                                                                       
                                                                                                                                
MR. GAMBLE  specified that the correct  value is $2 million.   He                                                               
explained  that  the $1  million  was  the  first review  of  the                                                               
property and the material on the  ground.  Given the market value                                                               
of  those materials  at the  time, the  estimate was  $1 million.                                                               
However,  once the  actual tonnage  and  specific materials  were                                                               
determined, the estimate rose to $2 million.                                                                                    
                                                                                                                                
8:21:12 AM                                                                                                                    
                                                                                                                                
JIM ARNESEN, Corporate Land &  Regulatory Manager, Eklutna, Inc.,                                                               
informed  the committee  that Eklutna  is interested  in stopping                                                               
the  destruction.   The area  is  barren rock  and the  residents                                                               
don't want  to sod and seed  the area because there  are no plans                                                               
for the  land at this point.   He related that  Eklutna, Inc. and                                                               
NVE  basically  want the  property  to  be  returned as  soon  as                                                               
possible and  to be  left in as  original condition  as possible.                                                               
Mr. Arnesen  then related  that at one  time Eklutna  Reserve had                                                               
390,000 acres that was reduced  to its current 1,200 acres around                                                               
the village.   Even within that 1,200 acres,  other entities were                                                               
allowed  to  come  in  and take  various  parcels  from  Eklutna.                                                               
However, once ANCSA  passed, Eklutna reclaimed some  of its land.                                                               
The parcel addressed in HB  212 was addressed in ANCSA, mentioned                                                               
in the  Alaska National Interest Lands  Conservation Act (ANILCA)                                                               
and  the 3(e)  agreements.   Because the  federal government  was                                                               
using  the  property  at  the   time,  it  wasn't  available  for                                                               
selection.    However,  the  [federal]  legislation  included  an                                                               
allowance for a future transfer,  which is what is occurring with                                                               
HB 212.                                                                                                                         
                                                                                                                                
8:23:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  inquired as to  what will happen  with the                                                               
rail spur.                                                                                                                      
                                                                                                                                
MR.  ARNESEN related  his understanding  that after  ARRC removes                                                               
the materials on the ground, the rail spur will be removed.                                                                     
                                                                                                                                
8:24:14 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH,  upon determining  no  one  else wished  to                                                               
testify, closed public testimony.                                                                                               
                                                                                                                                
CO-CHAIR FAIRCLOUGH,  relating her  perspective as a  resident of                                                               
the area, said  that NVE and Eklutna, Inc.  have been outstanding                                                               
community  partners.   In fact,  Eklutna has  leased the  land on                                                               
which Chugiak High  School sits for $1.  She  then applauded ARRC                                                               
for  taking a  different direction,  and noted  that it  benefits                                                               
Alaska because  it provides access  to material that has  been in                                                               
dispute for many years.   That material would reduce construction                                                               
costs for future ARRC and highway projects.                                                                                     
                                                                                                                                
8:26:41 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX moved  to report  HB 212  out of  committee with                                                               
individual recommendations and the accompanying fiscal notes.                                                                   
                                                                                                                                
REPRESENTATIVE SALMON objected.                                                                                                 
                                                                                                                                
A  roll call  vote  was taken.    Representatives Olson,  Cissna,                                                               
Salmon,  Neuman,  LeDoux,  and   Fairclough  voted  in  favor  of                                                               
reporting HB 212 from committee.   Therefore, HB 212 was reported                                                               
out  of  the  House  Community   and  Regional  Affairs  Standing                                                               
Committee by a vote of 6-0.                                                                                                     
                                                                                                                                
The committee took an at-ease from 8:28 a.m. to 8:30 a.m.                                                                       
                                                                                                                                

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