Legislature(1997 - 1998)
04/28/1997 01:15 PM House TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SJR 25 - SUPPORT ACCESS TO DENALI/WONDER LAKE Number 23 CHAIRMAN WILLIAMS announced the first order of business to be SJR 25, "Supporting enhancement of visitor access to Denali National Park and Preserve through development of a northern railroad route corridor access to the vicinity of Wonder Lake." He asked Senator Wilken to present the bill. Number 71 SENATOR GARY WILKEN, Alaska State Legislature, stated: "That as a 40 year plus Alaskan resident, one of the things that has embarrassed me terribly is that when we ask people to come to Alaska and we ask them to see our natural beauty and we promise them Mt. Mckinley, they come with a promise of a mountain and what we show them is a canyon. We show them a six hour bus ride - a school bus ride - and the chances are one of three that they'll see the most grand mountain on the North American Continent." The northern railway would bring people in an environmentally friendly way to Wonder Lake and to the best viewing place for Mt. McKinley. There were 16 different organizations that had endorsed this concept as a northern viewpoint and access to Mt. McKinley. He encouraged full support of this legislation. Number 323 BILL PERHACH was the first person to testify in Juneau. He was a resident of the community adjacent to Denali Park, had lived there since 1977, and had worked in the tourism industry since that time. For fourteen years he had worked with the package tour cruise ship industry and for the last six years he had been working with the eco-tourism market. He was against the railroad. Number 378 MR. PERHACH referred to page 1, line 6, "chance to encounter wildlife". There was not much "watchable" wildlife there. The park and the original wildness designated portion traverses a series of valleys and the road was intended to be a tourist draw. Trains did not lend itself to watching wildlife because they could not be stopped at every turn. The train proposed was a high speed train - 40 to 45 miles per hour - to move the people into the area to see the mountain. The mountain was more visible on the south side of the range; the weather was less harsh, so that would be the place for development. Number 565 MR. PERHACH referred to page 1, line 12-13, "lack of facilities at these areas are major obstacles to enhancing the wilderness experience". There was a wilderness designated portion of the park that did not have many facilities to give a wilderness experience. The plan for the south side development project was going to address the idea of development. Mt. Mckinley was more visible from the area of Petersville Road. MR. PERHACH referred to page 2, line 5-line 6, "taking advantage of a long-established and historic transportation route previously used by the mining industry". the Stampede Trail was used by Earl Pilgrim but only in the winter time to move ore out on sleds. He put a road in there in the 1960's but felt that the road in the summertime would not hold up under his usage. Consequently, he never transported in the summertime. The road now had gone back to nature. Number 756 MR. PERHACH further stated that the project would cost between $280 million to $350 million, having two 300 room hotels. At $100 per ticket there would not be enough business on the railroad for the debt service let alone to make a profit. Number 828 REPRESENTATIVE KIM ELTON stated that he was thinking of this in terms of the White Pass Railway in Skagway. The experience was not quantified by the number of animals that was seen but by the spectacular country that otherwise would not have been seen. He asked Mr. Perhach who made the decision of what was financially viable or not; and, did the numbers include the cost of the right- of-way? Number 904 MR. PERHACH replied they were asking for the right-of-way and for the building site at the wonder lake station. They were willing to work on a concession but they were not buying the right-of-way; they were asking for it to be given to them. REPRESENTATIVE ELTON stated that cost of $50 million was just for the construction of the rail line. MR. PERHACH stated that it was the construction of the rail line, rolling stock, hotels, and infrastructure to maintain the products. If something was build on the south side of Denali, there would be access to the road system and power and to the existing railroad which was not being used to its maximum capacity. The package tour market did not think that they were going to be able to supply the 500,000 additional guests that the railroad was going to depend on. The package cruise ships industry was not trying to sell Denali Park; they were selling time on a ship. Number 1081 SENATOR WILKEN stated that the meteorological viewing days from the north side of the mountain were double the meteorological viewing days from the south side. He asked Mr. Perhach what was an eco- tourism operator? Number 1130 MR. PERHACH replied that it could be defined in terms of the clientele. People that came here on eco-tours had already been to Alaska once and now they wanted to see a lot of a little rather than a little of a lot. Eco-tourists were more interested in the hands-on experience of participating in the environment. Number 1157 SENATOR WILKEN asked Mr. Perhach if it would be possible to develop both the south-side and the north-side? Number 1200 MR. PERHACH replied, "Yes." But Denali Park to him was not just a way to make a living. In addition, over the years, there had been a gradual decline in viewing wildlife. If the south side was developed, the wilderness designated portion of the park would have to be left alone. Number 1277 JOE FIELDS testified next via teleconference in Fairbanks. The mayors of Denali, Fairbanks-North Star, Haines, city of Fairbanks, Seward, municipality of Anchorage, city of North Pole, and Matsu- Susitna had all signed resolutions of endorsement of the north-side access to the park and to the Denali railway concept. The determined cost was at about $185 million for the rail system and $60 million for the two hotels. The market projections were about 525,000 people into the park on a yearly basis. There would not be any development inside the wilderness portion of the park. The cost for the south-side was proposed as publicly funded development. The rail line was a plan to take a large number of people in a comfortable and safe form of visitation into the interior of the park to the area by wonder lake - a good stable area that could be developed without having a great impact. The area was already developed with cabins and forest ranger stations. Number 1591 SENATOR WILKEN asked Mr. Fields if he would speak to Healy being the terminus of the plan in regards to its proximity to the railroad, parks highway, and electric power? Number 1602 MR. FIELDS stated that it was a little bit north of Healy, about two miles from the new power plant - 300 feet vertical from the parks highway. It was all outside the wilderness area. The Healy area had good access from two different roads, one which was proposed to be built along side the right-of way to the rail junction. Number 1692 REPRESENTATIVE JERRY SANDERS moved that SJR 25 move from the committee with individual recommendations and the attached zero fiscal note. There was no objection, SJR 25 was so moved from the House Transportation Standing Committee.
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