Legislature(2005 - 2006)HOUSE FINANCE 519

04/24/2006 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Postponed to 2:00 PM Today--
+ HB 375 RETIREMENT BENEFIT LIABILITY ACCT. TELECONFERENCED
Heard & Held
+ HB 482 SCHOOL:BULLYING/HARASSMENT/INTIMIDATION TELECONFERENCED
<Bill Hearing Canceled>
+ HB 306 CONVEY HATCHER PASS TO MAT-SU BOROUGH TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 308 ALASKA RAILROAD REVENUE BONDS TELECONFERENCED
Moved Out of Committee
-- Testimony <Invitation Only> --
3:24:15 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 306                                                                                                            
                                                                                                                                
     "An Act making certain land available for selection by                                                                     
     the Matanuska-Susitna Borough."                                                                                            
                                                                                                                                
Representative  Stoltze,  sponsor, spoke  in  support of  the                                                                   
legislation.  He observed that  the Mat-Su Borough  requested                                                                   
the legislation.  The legislation would transfer  land out of                                                                   
a public use  area as part of the borough's  land entitlement                                                                   
to facilitate  a  proposed development.  The legislation  was                                                                   
amended in the previous committee  with the addition of a 600                                                                   
feet set back on the Little Susitna  River and an requirement                                                                   
of a vote in the MatSu Borough prior to conveyance.                                                                             
                                                                                                                                
RICK  THOMPSON, ACTING  DEPUTY DIRECTOR,  DIVISION OF  MINING                                                                   
LAND AND  WATER, DEPARTMENT  OF NATURAL RESOURCES,  testified                                                                   
via  teleconference   in  support  of  the   legislation.  He                                                                   
observed  that  the department  worked  with  the borough  to                                                                   
achieve the objectives set out in the legislation.                                                                              
                                                                                                                                
In response  to a  question by  Representative Kerttula,  Mr.                                                                   
Thompson  noted that  the public  use area  was set aside  in                                                                   
either 1984 or 1986. He thought  the margin was approximately                                                                   
a half a mile.  Public use areas sustain all uses  and do not                                                                   
restrict   public  use   for   hunting,   fishing  or   other                                                                   
recreational uses.  The ski area activities were  not thought                                                                   
to  conflict  with  the  public   use  at  the  time  of  its                                                                   
conception.  He thought that  the planned  ski area  would be                                                                   
10,000 acres.                                                                                                                   
                                                                                                                                
JOHN  DUFF, BOROUGH  MANAGER, MAT-SU  BOROUGH, testified  via                                                                   
teleconference  in support  of the  legislation. He  observed                                                                   
that  the legislation  would convey  200  acres, which  would                                                                   
provide access  to other borough  properties and  is critical                                                                   
to the  success of  the Hatcher  Pass Ski  Area project.  The                                                                   
borough has  3,000 acres  immediately west  of the  200 acres                                                                   
being proposed  for transfer.  The addition  would allow  for                                                                   
development on  the northern  part, supplemental  parking for                                                                   
the alpine  ski area, and  community picnic area  and trails.                                                                   
The  project  provides  public and  private  partnership  and                                                                   
fulfills  long-term economic  objectives for  diversification                                                                   
of the tax  base and recreational opportunities.  The Hatcher                                                                   
Pass  Management  Unit,  which  is open  for  public  use  is                                                                   
200,000 acres in  size. Local and state funds  have been used                                                                   
to  provide infrastructure  improvements  such as  electrical                                                                   
power and parking. The borough  has conducted numerous public                                                                   
hearings  on various  aspects  of  the project.  The  borough                                                                   
anticipates further  public hearings. Northern  Economics has                                                                   
completed  an  economic assessment,  which  identified  1,600                                                                   
jobs would be created and a public  and private investment of                                                                   
approximately  $41 million  in  investments. The  legislation                                                                   
contains lands  to be  transferred that  are critical  to the                                                                   
success of the project.                                                                                                         
                                                                                                                                
3:33:58 PM                                                                                                                    
                                                                                                                                
Representative   Kerttula   asked   how   many   acres   were                                                                   
developable.  Mr. Duffy  noted that  there are  3,000 on  the                                                                   
south side of Government Peak,  where most of the residential                                                                   
village development  would take place.  An additional 5  - 10                                                                   
acres would  be used  for the lodge.  He clarified  that they                                                                   
are only asking for 200 acres  at this time. He observed that                                                                   
the entire area borders the Lower  Susitna River. The Hatcher                                                                   
Pass Management  Plan has  a setback of  200 feet.  The House                                                                   
Resource Committee  added a  600 foot  setback, which  is the                                                                   
river corridor.                                                                                                                 
                                                                                                                                
3:36:13 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula asked if  the negotiation  price was                                                                   
public.  Mr.  Duffy observed  that  the  price has  not  been                                                                   
negotiated. There is a joint venture  between the borough and                                                                   
JL  Properties,  where the  borough  would provide  the  real                                                                   
property assets and JL Properties  would provide the majority                                                                   
of the funding  (approximately $31 million) to  invest in the                                                                   
alpine  ski area  and the  south side  residential/commercial                                                                   
development.                                                                                                                    
                                                                                                                                
3:37:24 PM                                                                                                                    
                                                                                                                                
RON SWANSON,  COMMUNITY DEVELOPMENT DIRECTOR,  MATSU BOROUGH,                                                                   
pointed  out  that  the  Hatcher Pass  Public  Use  Area  was                                                                   
created in  1986. The  management plan  was created  the same                                                                   
year,  but amended  in 1989,  in  response to  a proposal  to                                                                   
build a ski area. The ski area  for a seasonal resort was not                                                                   
considered for three years. The  lease area does cover public                                                                   
use, anywhere from one half to  three-quarters of a mile wide                                                                   
on either side  of the river. He maintained  that the request                                                                   
is within their  municipal land entitlement and  objective of                                                                   
recreational  and  economic diversity.  An  extensive  public                                                                   
process  was in  its  final  stages, including  two  advisory                                                                   
board  public hearings.  Any  actions will  receive  scrutiny                                                                   
from the  public.  He proposed  that the current  plan  was a                                                                   
great deal more restrictive than the 1989 plan.                                                                                 
                                                                                                                                
3:40:05 PM                                                                                                                    
                                                                                                                                
JAY  NOLFI,  BIG  LAKE,  testified  via  teleconference.  She                                                                   
expressed   concern  about  conveying   the  properties   for                                                                   
economic development.  She suggested  that designated  public                                                                   
use  property  was  being  given to  a  private  company  for                                                                   
development and that this was  a case of imminent domain. She                                                                   
also noted  that the  longevity  bonus was  taken due to  non                                                                   
sustainability.  She   applied  this  term  to   the  current                                                                   
situation. She  stressed that it  was the intention  when the                                                                   
area  was designated  that  it  be used  for  public use  and                                                                   
benefit  all people.  She stated  that the  residents of  the                                                                   
area were not  in support of the project, and  suggested that                                                                   
the entire project should be placed  on the ballot. She noted                                                                   
that setback  projections were  not adequate to  meet borough                                                                   
requirements.                                                                                                                   
                                                                                                                                
3:43:48 PM                                                                                                                    
                                                                                                                                
Representative Stoltze   agreed  that  these concerns  should                                                                   
be worked out in further public process.                                                                                        
                                                                                                                                
Co-Chair Meyer closed public testimony on the bill.                                                                             
                                                                                                                                
Representative Hawker  noted that the Alaska  Outdoor Council                                                                   
testified in opposition in the previous Committee.                                                                              
                                                                                                                                
3:45:00 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer noted  that  the  bill  would  be  held  until                                                                   
Wednesday, at which time amendments would be heard.                                                                             
                                                                                                                                
HB  306  was   HEARD  AND  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  

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