Legislature(2019 - 2020)BARNES 124

05/06/2019 01:00 PM RESOURCES

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Audio Topic
01:02:10 PM Start
01:02:35 PM SB95
01:16:24 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 116 AQUATIC FARM/HATCHERY SITE LEASES TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony <Time Limit May Be Set> --
+ SB 95 ALASKA RAILROAD CORP. LAND TRANSFERS TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled 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