Legislature(2019 - 2020)BARNES 124
05/06/2019 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB95 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 116 | TELECONFERENCED | |
| + | SB 95 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
May 6, 2019
1:02 p.m.
MEMBERS PRESENT
Representative John Lincoln, Co-Chair
Representative Geran Tarr, Co-Chair
Representative Grier Hopkins, Vice Chair
Representative Sara Hannan
Representative Ivy Spohnholz
Representative Dave Talerico
Representative Sara Rasmussen
MEMBERS ABSENT
Representative Chris Tuck
Representative George Rauscher
COMMITTEE CALENDAR
SENATE BILL NO. 95
"An Act approving the transfer of certain Alaska Railroad
Corporation land; and providing for an effective date."
- HEARD & HELD
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 116
"An Act relating to the renewal or extension of site leases for
aquatic farming and aquatic plant and shellfish hatchery
operations."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 95
SHORT TITLE: LAND TRANSFERS
SPONSOR(s): SENATOR(s) COGHILL
03/22/19 (S) READ THE FIRST TIME - REFERRALS
03/22/19 (S) RES, FIN
04/05/19 (S) RES AT 3:30 PM BUTROVICH 205
04/05/19 (S) Moved SB 95 Out of Committee
04/05/19 (S) MINUTE(RES)
04/08/19 (S) RES RPT 4DP 1NR
04/08/19 (S) DP: BIRCH, KIEHL, GIESSEL, COGHILL
04/08/19 (S) NR: KAWASAKI
04/15/19 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/15/19 (S) Heard & Held
04/15/19 (S) MINUTE(FIN)
04/24/19 (S) FIN RPT 3DP 4NR
04/24/19 (S) DP: VON IMHOF, MICCICHE, BISHOP
04/24/19 (S) NR: STEDMAN, WIELECHOWSKI, OLSON,
WILSON
04/24/19 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/24/19 (S) Moved SB 95 Out of Committee
04/24/19 (S) MINUTE(FIN)
04/26/19 (S) TRANSMITTED TO (H)
04/26/19 (S) VERSION: SB 95
04/27/19 (H) READ THE FIRST TIME - REFERRALS
04/27/19 (H) RES
05/06/19 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
SENATOR JOHN COGHILL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking as the sponsor of SB 95,
introduced the bill.
RYNNIEVA MOSS, Staff
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Senator Coghill, sponsor,
explained aspects of SB 95.
BARBARA BLAKELEY, Vice President
Board of Directors
Whittier Manor Condominium Association
Whitter/Sterling, Alaska
POSITION STATEMENT: Testified in in regard to SB 95.
SID ATWOOD, Condominium Owner
Whittier Manor Condominium Association
Whittier/Anchorage, Alaska
POSITION STATEMENT: Testified in regard to SB 95.
ACTION NARRATIVE
1:02:10 PM
CO-CHAIR JOHN LINCOLN called the House Resources Standing
Committee meeting to order at 1:02 p.m. Representatives Hannan,
Rasmussen, Hopkins, Tarr, and Lincoln were present at the call
to order. Representatives Talerico and Spohnholz arrived as the
meeting was in progress.
SB 95-LAND TRANSFERS
1:02:35 PM
CO-CHAIR LINCOLN announced that the only order of business would
be SENATE BILL NO. 95, "An Act approving the transfer of certain
Alaska Railroad Corporation land; and providing for an effective
date."
1:02:48 PM
SENATOR JOHN COGHILL, Alaska State Legislature, sponsor,
introduced SB 95. He explained the bill would transfer land
from the Alaska Railroad Corporation ("the railroad") in the
Whittier area to the Whittier Manor Condominium Association Inc.
("condo association"). He noted there is a timeliness issue
with this transfer and that his staff person, Ms. Moss, would
provide the committee with further details.
RYNNIEVA MOSS, Staff, Senator John Coghill, Alaska State
Legislature, on behalf of Senator Coghill, sponsor of SB 95,
explained that this condo complex sits on about 58,000 square
feet that were part of a 40-year lease dating back to 1979.
This lease expires at the end of 2019, she said, which will
leave the 100 condominiums without a lease. [The association]
could get a 13-year lease through the lease management agreement
that the railroad has with the City of Whittier, she continued,
but a 13-year lease is insufficient for being able to sell a
property and have a bank finance it. She noted the condos are
now over 40 years old and deferred maintenance needs to be done,
but money cannot be borrowed from a bank on a 13-year lease.
She stated that SB 95 would deed the 58,000 square feet to the
condo association and part of the payment would go to the City
of Whittier to settle the management agreement that the railroad
has with the City of Whittier. It is a win-win, she added, in
that it puts the property with the condos, gives the City of
Whittier a tax base, increases the value of the condos, and
allows the deferred maintenance to be done.
SENATOR COGHILL specified that this is critical land and so a
caveat in the agreement is that if the condo association were to
sell the land, the railroad would have first right to buy back
the land.
1:05:45 PM
REPRESENTATIVE HANNAN, in regard to the railroad having first
right to buy back the land, inquired whether the buyback would
be at fair market value at that time or would be an amount the
condo association chooses.
MS. MOSS replied she is unsure, but said she knows the railroad
must sell the land at fair market value and she sees no reason
why the condo association would want to sell it for less than
fair market value.
REPRESENTATIVE HANNAN expressed her concern about the offering
of a speculative value as opposed to a fair market value; for
example, a cruise line offering to pay half a billion dollars
for the land even though it is appraised for less.
MS. MOSS responded that the railroad's land managers would be
online at the bill's next hearing. She deferred to them to
answer that question.
SENATOR COGHILL pointed out that [the property] is right along
railroad spur lines and is critical access land for the
railroad. He said the agreement to sell was so the private
investment could happen in [the condos]. He offered his belief
that one of the key elements in the discussion is if [the condo
association] should for whatever reason decide to sell.
REPRESENTATIVE HANNAN asked whether there is a fair market
appraisal for the railroad selling the land today.
MS. MOSS answered yes; it was appraised at $170,000 in total for
the land, the land being a little bit more than one acre.
1:07:56 PM
REPRESENTATIVE RASMUSSEN inquired whether an easement is in
place for the railroad in the purchase transaction.
MS. MOSS replied that the property is actually in the railroad
corridor area.
REPRESENTATIVE RASMUSSEN asked whether that easement stays in
place as part of the transaction agreement.
MS. MOSS responded that there is no road on the property; the
property is consumed by the condos.
1:08:56 PM
CO-CHAIR LINCOLN opened public testimony on SB 95.
1:09:50 PM
BARBARA BLAKELEY, Vice President, Board of Directors, Whittier
Manor Condominium Association, testified she lives in Sterling
and has a [Whittier Manor] condominium. She related that the
condo association's agreement with the railroad and the city is
that should [the condo association] ever decide to sell, [the
railroad] will have right of first refusal. She said the
agreement is that [the condo association] will purchase the land
for fair market value plus 25 percent. She explained this is
because the right of first refusal includes that in 40 years
[the railroad] has the right to purchase the property, but only
if it needs the property for the movement of trains, for the
fair market value at that time plus 25 percent. The railroad
was smart enough not to let [the condo association] speculate on
selling it to a cruise line, she added.
1:11:33 PM
REPRESENTATIVE HANNAN inquired whether she heard correctly that
in 25 years the railroad could force the condominium association
to sell the land back to the railroad.
MS. BLAKELEY answered 40 years, not 25 years. This gives [the
condo association] what it wants for 40 years at least, she
said, and [the railroad] would only have the right to purchase
the land if it was needed for the movement of trains and that
would be the only reason the railroad could buy back the land.
1:12:19 PM
SID ATWOOD testified he lives in Anchorage and that he and his
wife have a Whittier Manor condominium. He said he is excited
that the condo association could possibly own the land that
Whittier Manor is sitting on because, due to the end of the
lease, property values are dropping similar to a rock in a lake.
He stated it is a win-win-win because the railroad is in a
position to sell, the association has the money to buy, and the
City of Whittier would have that property on its tax rolls.
1:14:00 PM
REPRESENTATIVE RASMUSSEN asked whether there are currently any
provisions in [the association's] bylaws that prohibit anyone
from renting out their property. She offered her understanding
that one of the concerns with this is that people won't be able
to secure financing for the loans because of the leasehold
situation that the property is in. She offered her further
understanding that another cause for making the property
unfinanceable is too high of a tenant to owner ratio.
MR. ATWOOD replied that what he does know is that in order to
rent or sublease a lease must be had in the first place and the
first problem is obtaining enough time to have ownership.
REPRESENTATIVE RASMUSSEN restated her question. She asked
whether there is something in the condo association's bylaws
that states that [owners] can or cannot rent out their condos.
MR. ATWOOD responded that owners could certainly rent out their
condos.
1:15:31 PM
CO-CHAIR LINCOLN closed public testimony, but noted it will be
reopened at the bill's next hearing.
[SB 95 was held over.]
1:16:24 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 1:16 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB95 - Version U.PDF |
HRES 5/6/2019 1:00:00 PM |
|
| SB 95 - Sectional Version U.pdf |
HRES 5/6/2019 1:00:00 PM HRES 5/8/2019 1:00:00 PM |
SB 95 |
| SB 95 - Fiscal Note.pdf |
HRES 5/6/2019 1:00:00 PM |
SB 95 |
| SB 95 - Whittier City Resolution March 2019.pdf |
HRES 5/6/2019 1:00:00 PM |
SB 95 |
| SB 95 - Whittier Manor Condominium Lease.pdf |
HRES 5/6/2019 1:00:00 PM HRES 5/8/2019 1:00:00 PM |
SB 95 |
| SB95 Sponsor Statement.pdf |
HRES 5/6/2019 1:00:00 PM HRES 5/8/2019 1:00:00 PM SFIN 4/15/2019 9:00:00 AM SRES 4/5/2019 3:30:00 PM |
SB 95 |
| SB95 Weolber & Cole Letter 3.29.19.pdf |
HRES 5/6/2019 1:00:00 PM HRES 5/8/2019 1:00:00 PM SRES 4/5/2019 3:30:00 PM |
SB 95 |
| SB95 ARRC Resolution 3.21.19.pdf |
HRES 5/6/2019 1:00:00 PM HRES 5/8/2019 1:00:00 PM SRES 4/5/2019 3:30:00 PM |
SB 95 |
| SB 95 Background - photos.pdf |
HRES 5/6/2019 1:00:00 PM HRES 5/8/2019 1:00:00 PM SFIN 4/15/2019 9:00:00 AM |
SB 95 |
| Whittier Map.png |
HRES 5/6/2019 1:00:00 PM HRES 5/8/2019 1:00:00 PM |
SB 95 |
| SB 95 Testimony - Support.pdf |
HRES 5/6/2019 1:00:00 PM SFIN 4/15/2019 9:00:00 AM |
SB 95 |
| HB116 Sponsor Statement 4.15.19.pdf |
HFSH 4/23/2019 10:00:00 AM HFSH 4/25/2019 10:00:00 AM HRES 5/6/2019 1:00:00 PM |
HB 116 |
| HB116 ver U 04.30.19.pdf |
HRES 5/3/2019 1:00:00 PM HRES 5/6/2019 1:00:00 PM HRES 5/10/2019 1:00:00 PM |
HB 116 |
| HB116 DNR Fiscal Note 04.30.19.pdf |
HRES 5/3/2019 1:00:00 PM HRES 5/6/2019 1:00:00 PM HRES 5/10/2019 1:00:00 PM |
HB 116 |
| HB116 ver U Sectional Analysis 04.30.19.pdf |
HRES 5/3/2019 1:00:00 PM HRES 5/6/2019 1:00:00 PM HRES 5/10/2019 1:00:00 PM |
HB 116 |
| HB116 Explanation of Changes ver A to ver U 04.30.19.pdf |
HRES 5/3/2019 1:00:00 PM HRES 5/6/2019 1:00:00 PM HRES 5/10/2019 1:00:00 PM |
HB 116 |
| HB116 Aquatic Farm Application Review Flow Chart 04.30.19.pdf |
HRES 5/3/2019 1:00:00 PM HRES 5/6/2019 1:00:00 PM HRES 5/10/2019 1:00:00 PM |
HB 116 |
| HB 116 - AFDF Letter of Support 2019-04-15.pdf |
HFSH 4/16/2019 10:00:00 AM HFSH 4/25/2019 10:00:00 AM HRES 5/3/2019 1:00:00 PM HRES 5/6/2019 1:00:00 PM |
HB 116 |
| HB116 ASGA Letter of Support 04.15.19.pdf |
HFSH 4/23/2019 10:00:00 AM HFSH 4/25/2019 10:00:00 AM HRES 5/6/2019 1:00:00 PM HRES 5/10/2019 1:00:00 PM |
HB 116 |
| HB116 Supporting Document- Mariculture Plan.pdf |
HFSH 4/16/2019 10:00:00 AM HFSH 4/25/2019 10:00:00 AM HRES 5/3/2019 1:00:00 PM HRES 5/6/2019 1:00:00 PM HRES 5/10/2019 1:00:00 PM |
HB 116 |
| HB 116 Letter of Opposition-Hillstrand.pdf |
HRES 5/6/2019 1:00:00 PM |
HB 116 |