Legislature(2005 - 2006)CAPITOL 124

04/19/2006 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 1:00 PM on 04/20/06 --
*+ HB 501 POSSESSION OF BIG GAME HORNS OR ANTLERS TELECONFERENCED
Heard & Held
+ HB 378 CHILKAT BALD EAGLE PRESERVE ADV COUNCIL TELECONFERENCED
Moved CSHB 378(RES) Out of Committee
+ HB 498 TAX CREDITS NONCONVENTIONAL OIL/GAS TELECONFERENCED
Heard & Held
*+ HB 306 CONVEY HATCHER PASS TO MAT-SU BOROUGH TELECONFERENCED
Moved CSHB 306(RES) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 306-CONVEY HATCHER PASS TO MAT-SU BOROUGH                                                                                  
                                                                                                                                
CO-CHAIR RAMRAS announced  that the next order  of business would                                                               
be HOUSE BILL NO. 306, "An  Act making certain land available for                                                               
selection by the Matanuska-Susitna Borough."                                                                                    
                                                                                                                                
CO-CHAIR SAMUELS moved to adopt  the committee substitute (CS) HB
306,  labeled  24-LS0907/F,  Bullock,   as  a  working  document.                                                               
Hearing no objection, Version F was before the committee.                                                                       
                                                                                                                                
2:35:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BILL  STOLTZE, Alaska  State Legislature,  said he                                                               
introduced  HB  306  at  the  request  of  the  Matanuska-Susitna                                                               
Borough regarding  "the ski and  resort development  project that                                                               
the borough  has been advancing  for a number  of years."   It is                                                               
not without  criticism, including his  own, he stated.   The area                                                               
became  a  public-use area  in  the  1970s with  broad  community                                                               
support.  He noted that he wanted  to make changes to the bill to                                                               
include setbacks  from the  river and to  require a  public vote.                                                               
He said he is the facilitator,  and the advocates for the borough                                                               
and  the developers  will speak  with more  passion than  he has.                                                               
The project has been talked about "for a number of years."                                                                      
                                                                                                                                
2:38:22 PM                                                                                                                    
                                                                                                                                
RON SWANSON,  Director, Community  Development, Matanuska-Susitna                                                               
Borough, said the  bill would make 200 acres  available under the                                                               
municipal  land entitlement,  which has  not been  fulfilled from                                                               
the promise made by the legislature  back in 1979.  This 200-acre                                                               
piece is important to economic  development, he opined.  The land                                                               
transfer is consistent  with the Municipal Land Act, but  it is a                                                               
public-use  area, so  it takes  action by  the legislature.   The                                                               
public-use  area   is  5,200  acres   and  was   established  for                                                               
recreation,  fish and  wildlife,  and  water quality  protection.                                                               
The area follows the Susitna River  from the Hatcher Pass area to                                                               
its headwaters.  The Matanuska Moose Range is to the east.                                                                      
                                                                                                                                
2:41:06 PM                                                                                                                    
                                                                                                                                
MR. SWANSON said the Hatcher  Pass Management Plan was amended in                                                               
1989 to  provide for  a ski area  and residential  and commercial                                                               
development.   A  lease  was issued  to a  Japanese  firm and  it                                                               
included  the  land  in  HB  306.   The  state  turned  over  the                                                               
development   to  the   borough,  which   has  assumed   complete                                                               
management and  ownership for  the lease.   He  said he  wants to                                                               
make  sure Hatcher  Pass is  developed in  a way  to protect  the                                                               
environment and the public-use area  "even if it is excluded from                                                               
the  area."   He  said the  borough  is in  the  final stages  of                                                               
adopting  a  special  land  use   district,  which  will  include                                                               
setbacks of at  least 200 feet from the  [Little] Susitna River-a                                                               
goal of  Representative Stoltze.   He said  the borough  has been                                                               
doing water  monitoring to establish  baseline information.   The                                                               
special use  area was  developed by a  wide variety  of citizens,                                                               
and full public participation will  continue.  A master plan will                                                               
be developed  by the  developer and then  be approved  by several                                                               
entities, he explained.  There  are strict development guidelines                                                               
including densities.  Open areas  and greenbelts are included, he                                                               
noted.   The  legislation states  that the  transfer of  the land                                                               
will  be  subject to  the  Hatcher  Pass  Management Plan.    All                                                               
current protections,  other than the development,  will continue,                                                               
he said.   The alpine  ski area will  be located in  the northern                                                               
portion of  the Hatcher Pass  area.  The housing  development has                                                               
been moved  away from  the river  to the  Nordic ski  area, which                                                               
will be a world-class facility, he stated.                                                                                      
                                                                                                                                
2:45:16 PM                                                                                                                    
                                                                                                                                
MR. SWANSON said,  "This piece is very key to  the development in                                                               
that...it will  be actually the  gateway to the  southern portion                                                               
of Hatcher  Pass."   Other access points  don't provide  the same                                                               
visual  impact, and  billboards "will  never happen."   The  bill                                                               
will consolidate  management to  just the borough.   He  said the                                                               
borough will  continue to manage  the Hatcher Pass area  with the                                                               
Department  of  Natural Resources,  but  for  development, it  is                                                               
difficult to work with a variety of entities.                                                                                   
                                                                                                                                
REPRESENTATIVE SEATON  asked about  the land remaining  under the                                                               
Hatcher Pass designation, which he doesn't see in the bill.                                                                     
                                                                                                                                
2:47:42 PM                                                                                                                    
                                                                                                                                
MR. SWANSON said  the conveyance of the land would  require it to                                                               
be consistent  with the Hatcher Pass  Management Plan throughout.                                                               
He  said  he  supports  that,  and  it  goes  farther  with  more                                                               
restrictive zoning in certain ways.                                                                                             
                                                                                                                                
REPRESENTATIVE GATTO asked about the southern boundary.                                                                         
                                                                                                                                
MR.  SWANSON  referred  him  to  a map  showing  the  Nordic  and                                                               
residences in  the southern  portion and the  alpine area  to the                                                               
north without residences but with an Alyeska-type operation.                                                                    
                                                                                                                                
2:50:10 PM                                                                                                                    
                                                                                                                                
JOHN DUFFY, Manager, Matanuska-Susitna  Borough, said the borough                                                               
supports  HB  306, as  written,  because  it provides  lands  for                                                               
development and  a Hatcher Pass  ski area.  The  project fulfills                                                               
municipal entitlement  for economic  development, diversification                                                               
of  the tax  base,  and recreational  opportunities.   Electrical                                                               
power has been  installed, and the project will  provide a return                                                               
on  those  investments, he  stated.    He  said the  borough  has                                                               
completed an economic  analysis showing 360 jobs  provided by the                                                               
ski area  and 1,350 jobs  for the south-side development.   There                                                               
will be  a special-use  district with a  setback from  the Little                                                               
Susitna River.  He opposed a  proposed amendment on a public vote                                                               
because  "it might  send a  chill in  other economic  development                                                               
projects in the  borough.  For instance, we have  the Lucky Shock                                                               
Mine  that   is  currently  being   reviewed  and   proposed  for                                                               
development."   He  spoke  of a  port at  Pt.  McKenzie that  the                                                               
public would not have voted for.   He is against that requirement                                                               
because there has been "more than enough public participation."                                                                 
                                                                                                                                
2:53:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO asked if the  land transfer is essential for                                                               
the project.                                                                                                                    
                                                                                                                                
MR. DUFFY said  that is correct; the private  developer said that                                                               
the land is needed for access and development.                                                                                  
                                                                                                                                
REPRESENTATIVE GATTO asked about the setback to the river.                                                                      
                                                                                                                                
MR. DUFFY said the borough has  a 75-foot water body setback, and                                                               
the Hatcher Pass Management Plan already has a 200-foot setback.                                                                
                                                                                                                                
2:55:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRAWFORD   asked  if   the  200  acres   will  be                                                               
transferred  to the  borough which  will then  transfer it  to JL                                                               
Properties for residential home building.                                                                                       
                                                                                                                                
MR. DUFFY said that  is correct, in part.  He  added that some of                                                               
the areas would  be used for access, and there  are hopes for the                                                               
development of picnic areas near the river.                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD  asked if  the property  will be  sold or                                                               
given to JL Properties.                                                                                                         
                                                                                                                                
MR. DUFFY said it is a little bit  of both.  Some of the property                                                               
will  be  retained  in borough  ownership,  and  the  residential                                                               
development property would be transferred to JL Properties.                                                                     
                                                                                                                                
2:57:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked  if the land within  the setbacks can                                                               
be transferred.                                                                                                                 
                                                                                                                                
MR. DUFFY said it could be transferred but not developed.                                                                       
                                                                                                                                
REPRESENTATIVE GATTO asked how much land will JL properties get.                                                                
                                                                                                                                
MR. DUFFY said he doesn't know  exactly, but it will be about 20-                                                               
25 percent of the transferred land.                                                                                             
                                                                                                                                
REPRESENTATIVE  GATTO asked  if the  current access  to the  area                                                               
will be affected.                                                                                                               
                                                                                                                                
MR. DUFFY said no.                                                                                                              
                                                                                                                                
2:58:49 PM                                                                                                                    
                                                                                                                                
JEAN WOODS  said she worked  on setting  up the special  use area                                                               
many  years  ago.     She  said  JL  properties   can  "do  their                                                               
development  without this  200 acres."   She  was told  they only                                                               
wanted  about  25  acres  of   this  parcel  for  the  commercial                                                               
development, "and I  told them if they would leave  the 200 acres                                                               
alone, that  I would drop all  opposition to this project."   She                                                               
sees this as  taking land from the public to  convey to a private                                                               
developer.  She  said the project can be done  without this land.                                                               
She said if  the developers get it, she wants  a 600-foot setback                                                               
so their village center would not be visible from the road.                                                                     
                                                                                                                                
REPRESENTATIVE GATTO asked if she meant the road or the creek.                                                                  
                                                                                                                                
MS. WOODS  said if there  is a  600-foot setback from  the creek,                                                               
the development could not be seen from the road.                                                                                
                                                                                                                                
3:01:41 PM                                                                                                                    
                                                                                                                                
ROB   WELLS,  Executive   Director,  Matanuska-Susitna   Resource                                                               
Conservation and Development  Organization, said his organization                                                               
supports  this project.   The  economic  spin-off and  recreation                                                               
opportunities  are the  driving  reasons for  the  support.   The                                                               
special  planning  effort  is making  the  development  standards                                                               
stricter  than  the plan.    Allowing  an alternate  access  will                                                               
minimize the impact  in the nearby neighborhood, he  opined.  The                                                               
ski area project will affect a  few thousand acres, and there are                                                               
still over  200,000 acres of  public use land  to the north.   To                                                               
the east is the moose range that is 150,000 acres, he stated.                                                                   
                                                                                                                                
3:03:49 PM                                                                                                                    
                                                                                                                                
DAVID  GERMER,   Project  Manager,   Hatcher  Pass   Project,  JL                                                               
Properties, said his company was  solicited to create a ski area,                                                               
so JL Properties  developed a preliminary plan  composed of three                                                               
pieces: alpine area, residential/recreational  area, and a Nordic                                                               
area.    The three  need  to  be  integrated  for each  piece  to                                                               
succeed, he  opined.  The  additional 200 acres is  necessary for                                                               
financial viability.   He said,  "JL will actually  be developing                                                               
very specific CR&Rs for development  within this area...to insure                                                               
integration  of  the  new   buildings,  the  infrastructure,  the                                                               
landscaping into their natural settings."   He said the next step                                                               
is to  initiate due diligence,  and he  would like to  start that                                                               
work this summer to begin construction by the spring of 2008.                                                                   
                                                                                                                                
3:06:52 PM                                                                                                                    
                                                                                                                                
RICK THOMPSON, Acting Deputy Director,  Division of Mining, Land,                                                               
and  Water, Department  of Natural  Resources, said  he has  been                                                               
involved "over the years," and DNR supports the legislation.                                                                    
                                                                                                                                
CO-CHAIR  SAMUELS  asked  about  an  amendment  for  a  1000-foot                                                               
setback on the [Little Susitna River].                                                                                          
                                                                                                                                
MR. THOMPSON  said he doesn't  have a problem with  setbacks, per                                                               
se, but he has not seen the amendment.                                                                                          
                                                                                                                                
3:08:33 PM                                                                                                                    
                                                                                                                                
ROD ARNO,  Alaska Outdoor Council,  said the council  opposes the                                                               
bill  because urban  sprawl in  nearby areas  makes Hatcher  Pass                                                               
"extremely  important to  us."   He  said the  state land  should                                                               
remain as  state land.   Public access  has been better  with the                                                               
state rather than the borough and its lakes management plan.                                                                    
                                                                                                                                
REPRESENTATIVE GATTO asked if the  borough and the state have had                                                               
different positions on lake access.                                                                                             
                                                                                                                                
MR. ARNO  said lakes management  plans are incorporated  into the                                                               
borough's coastal management  plan.  In the past,  people who own                                                               
property on a  lake can vote to make the  lake non-motorized.  He                                                               
was told  that the  state couldn't  assert its  authority without                                                               
suing the borough.                                                                                                              
                                                                                                                                
REPRESENTATIVE GATTO  asked if the land  would have grandfathered                                                               
rights for access.                                                                                                              
                                                                                                                                
3:12:38 PM                                                                                                                    
                                                                                                                                
MR. ARNO said  that is a major concern, and  the access rights to                                                               
the Knik River  public use area are cumbersome.   He doesn't know                                                               
if traditional access will be protected or not.                                                                                 
                                                                                                                                
REPRESENTATIVE   GATTO  said   Ms.  Woods   testified  that   the                                                               
developers don't need 200 acres.                                                                                                
                                                                                                                                
MR. ARNO said he doesn't want to  give up an inch of state public                                                               
use areas close to urban areas.                                                                                                 
                                                                                                                                
REPRESENTATIVE  STOLTZE  asked   about  his  proposed  amendments                                                               
requiring the set back and a public vote.                                                                                       
                                                                                                                                
MR. ARNO said he supports the set backs and the public vote.                                                                    
                                                                                                                                
The committee took an at-ease from 3:15:58 PM to 3:19:20 PM.                                                                
                                                                                                                                
CO-CHAIR SAMUELS offered  Amendment 1, written by  the sponsor as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Page 2, following line 22, following:                                                                                      
          Insert a new subsection to read:                                                                                      
          "(d) That  portion of the land  selected under (b)                                                                    
          of  this section  that lies  within 1,000  feet of                                                                    
          the  line of  ordinary  high water  of the  Little                                                                    
          Susitna may not be developed or improved."                                                                            
                                                                                                                                
REPRESENTATIVE   SEATON  objected   and   offered  a   conceptual                                                               
amendment  to  Amendment  1  to  change  the  1,000-foot  setback                                                               
requirement to  600 feet.   He said, "And  on line 5,  after 'may                                                               
not  be improved'  inserts  'except  for trails  and  may not  be                                                               
transferred from public ownership'."   Hearing no objections, the                                                               
amendment to Amendment 1 was adopted.                                                                                           
                                                                                                                                
3:20:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON withdrew  his objection,  and a  roll call                                                               
vote was taken on Amendment  1.  Representatives Gatto, Crawford,                                                               
Olson,  Ramras, and  Samuels  voted in  favor  of the  amendment.                                                               
Amendment 1, as amended, was adopted by a vote of 5 to 0.                                                                       
                                                                                                                                
CO-CHAIR  SAMUELS  offered  Amendment  2,  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Page 2, line 7, following "(b)":                                                                                           
          Delete "The"                                                                                                          
          Insert "Subject to authorization by a majority of                                                                     
          the qualified voters in the borough voting on the                                                                     
          question at a general or special election, the"                                                                       
                                                                                                                                
REPRESENTATIVE CRAWFORD asked if a vote will delay the project.                                                                 
                                                                                                                                
REPRESENTATIVE  STOLTZE  said  a  borough  election  and  primary                                                               
election are coming up;  it could be put on a  number of local or                                                               
state elections.   He added  that it  is a multi-tier  process of                                                               
significant scope.  It is  exciting project, but not without some                                                               
controversy  so   it  merits  local  discussion,   including  the                                                               
financial involvement of the local government and other issues.                                                                 
                                                                                                                                
3:24:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SAMUELS asked  if the vote could occur  at another point                                                               
in the  process rather  than during a  simple land  transfer from                                                               
the state  to the borough.   The vote  would really be  about the                                                               
ski area, he explained.                                                                                                         
                                                                                                                                
REPRESENTATIVE STOLTZE said not that he has any control over.                                                                   
                                                                                                                                
REPRESENTATIVE  GATTO  said  the  bill refers  to  a  general  or                                                               
special election.                                                                                                               
                                                                                                                                
REPRESENTATIVE STOLTZE said his  legal advisors said that general                                                               
election covers all elections.                                                                                                  
                                                                                                                                
3:27:27 PM                                                                                                                    
                                                                                                                                
Hearing no further objections, Amendment 2 carried.                                                                             
                                                                                                                                
REPRESENTATIVE  GATTO  moved  to   report  HB  306,  labeled  24-                                                               
LS0907/F,  Bullock, 2/1/06,  as  amended, out  of committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
Hearing no  objections, CSHB  306 (RES) passed  out of  the House                                                               
Resources Standing Committee.                                                                                                   
                                                                                                                                
3:28:53 PM                                                                                                                    
                                                                                                                                

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