Legislature(2003 - 2004)
04/28/2003 02:30 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 97
An Act authorizing a long-term lease of certain Alaska
Railroad Corporation land at Anchorage; and providing
for an effective date.
REPRESENTATIVE VIC KOHRING commented that in 2002, the
Legislature passed House Bill 298 to increase the maximum
lease term without termination rights the Alaska Railroad
can grant without Legislative approval to 55 years from the
35-year maximum set in 1984. The increase was to encourage
economic development in communities along the Rail belt by
making it easier for large commercial and residential
developers to obtain financing through grants and other
sources, which require a longer lease. For example, the
Housing and Urban Development (HUD) 202 Senior Housing
Grants required a minimum 40-year lease. The 55-year lease
maximum set forth in HB 298 went into effect May 30, 2002.
Representative Kohring noted that after the minimum lease
requirement for HUD 202 grants increased from 40 years to 75
years, in effect putting developers back at square one. The
Alaska Railroad can approve a lease in excess of 55 years;
however, they must reserve the right to terminate the lease
in the event the land is needed for railroad purposes.
A multi-family senior housing project has been planned for
Government Hill in Anchorage and the Alaska Railroad Board
granted the developer a 55-year lease for the project site.
When HUD changed the terms of the 202 program, it
disqualified the project for consideration for HUD 202
grants.
Representative Kohring commented that HB 97 would allow the
Alaska Railroad to extend the developer's current 55-year
lease, without the termination clause, allowing them to
apply for HUD 202 funding.
Representative Foster MOVED to report HB 97 out of Committee
with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
HB 97 was reported out of Committee with "individual"
recommendations and with zero fiscal note #1 by the
Department of Community and Economic Development.
AT EASE: 3:50 P.M.
RECONVENED: 4:00 P.M.
(TAPE MALFUNCTION)
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