Legislature(2009 - 2010)CAPITOL 17

04/09/2009 01:00 PM House TRANSPORTATION


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 165 AUTHORIZING TRANSFER OF RAILROAD LAND TELECONFERENCED
Moved Out of Committee
+ SB 25 RICHARD DEWEY DUVALL FERRY TERMINAL TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
SB 165-AUTHORIZING TRANSFER OF RAILROAD LAND                                                                                  
                                                                                                                                
VICE CHAIR  JOHNSON announced  that the  first order  of business                                                               
would be  SENATE BILL NO.  165, "An Act authorizing  the transfer                                                               
of two  parcels of land  from the Alaska Railroad  Corporation to                                                               
the  Municipality of  Anchorage; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
1:09:48 PM                                                                                                                    
                                                                                                                                
JESSE  CROSS-CALL,  Staff,  Senator  Johnny  Ellis,  speaking  on                                                               
behalf  of Senator  Johnny Ellis,  the prime  sponsor of  SB 165,                                                               
explained  that  the bill  would  authorize  the Alaska  Railroad                                                               
Corporation to  exchange two parcels  of land on  Government Hill                                                               
in  Anchorage for  land owned  by the  Municipality of  Anchorage                                                               
(MOA).   The parcel  of land  to be exchanged  is located  on 3rd                                                               
Avenue between the  A and C street couplet.   He related that the                                                               
ARRC has  worked with the  MOA and the Government  Hill Community                                                               
Council on this exchange.  The bill has a zero fiscal note.                                                                     
                                                                                                                                
JESSE CROSS-CALL  provided a  section-by-section analysis  of the                                                               
bill.  He referred to Section  1 of the bill, which describes the                                                               
1.93 acres of rail land  and the specific parcel description with                                                               
an appraised market  value of $480,000.  He related  that the MOA                                                               
would  own  the  land  after the  trade  and  could  subsequently                                                               
subdivide or sell  the parcel.  The second parcel  of land is one                                                               
fifth of  an acre  near Government Hill  Elementary School.   The                                                               
Anchorage School  District would use  the land to design  a safer                                                               
entrance to  the Government Hill  Elementary School.   The parcel                                                               
has an appraised market value of $122,000.                                                                                      
                                                                                                                                
JESSE CROSS-CALL  explained that proposed Section  2 provides the                                                               
purpose of the land transfer.   The first parcel is surrounded by                                                               
MOA owned or controlled land  that is currently being redeveloped                                                               
into a residential subdivision, and  the transfer of the property                                                               
will  allow  the  area  to be  subdivided  and  more  efficiently                                                               
incorporated  into the  overall redevelopment  plan.   The second                                                               
parcel will enable the MOA  to develop safe and reasonable access                                                               
to  the Government  Hill Elementary  School.   He explained  that                                                               
proposed Section  3 of the  bill will  allow the MOA  to transfer                                                               
land located on 3rd Avenue between  the A and C street couplet in                                                               
Anchorage and allows  the ARRC to accept fee simple  title to the                                                               
land.  The  land is currently used for parking  and is managed by                                                               
the Downtown  Parking Authority  and is valued  at $645,000.   He                                                               
referred members to a map  in members' packets that highlight the                                                               
land to be  exchanged.  He indicated the specific  parcel of land                                                               
is marked in red on the bottom of map.                                                                                          
                                                                                                                                
1:14:30 PM                                                                                                                    
                                                                                                                                
MR. CROSS-CALL  also pointed out  that although the value  of the                                                               
land that  the MOA is proposing  to trade is valued  at $602,800,                                                               
the MOA has  stated it will not  request additional consideration                                                               
for the difference in the property value.                                                                                       
                                                                                                                                
1:15:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  recalled  the area,  and  referred  to                                                               
Block B, tract A of the  parcel, which previously was the site of                                                               
an auto detailing  shop.  He offered his belief  that at one time                                                               
it  was also  a  gas station.   He  expressed  concern about  any                                                               
potential remediation of the land.                                                                                              
                                                                                                                                
JESSE  CROSS-CALL  answered that  he  did  not know  whether  any                                                               
remediation would be required.                                                                                                  
                                                                                                                                
VICE  CHAIR JOHNSON  mentioned that  the  ARRC would  be able  to                                                               
provide testimony on that topic.                                                                                                
                                                                                                                                
1:17:37 PM                                                                                                                    
                                                                                                                                
BOB   FRENCH,  Co-Vice   President,  Government   Hill  Community                                                               
Council, stated that  community councils are the  most basic form                                                               
of  local government  for Anchorage.    He related  that the  MOA                                                               
looks  to  community  councils  for  guidance  on  local  issues.                                                               
Government  Hill  is  notable as  Anchorage's  first  and  oldest                                                               
neighborhood.   He related that  the Alaska  Railroad Corporation                                                               
yards are located  south of Government Hill,  while Elmendorf Air                                                               
Force Base  is located  on the  north and east,  and the  Port of                                                               
Anchorage tank farms are located to the west of Government Hill.                                                                
                                                                                                                                
MR.  FRENCH testified  in favor  of SB  165.   He explained  that                                                               
Government Hill's  history has  been closely  tied to  the Alaska                                                               
Railroad  and   has  the  largest  density   of  Alaska  Railroad                                                               
Corporation (ARRC)  land in  the midst  of any  residential area,                                                               
excluding the  terminal reserve lands.   He pointed out  that the                                                               
land is  located in  many parts  of the  neighborhood.   The ARRC                                                               
lands  can  only  be  leased.   Thus,  their  presence  can  make                                                               
development very difficult, he opined.                                                                                          
                                                                                                                                
MR. FRENCH  described the Government  Hill neighborhood  near the                                                               
elementary school.  He provided  examples of activities such as a                                                               
Spanish immersion program  held at a magnet  school that attracts                                                               
students  from all  over Anchorage.    Thus, substantial  traffic                                                               
traverses the neighborhood each  morning and afternoon, he noted.                                                               
He also  noted that a Pizza  Parlor and three or  four roads join                                                               
together near  the parking  lot.  An  old crossing  bridge allows                                                               
students to  cross the street,  but the  bridge is often  icy and                                                               
unsafe.   He opined  that the  Government Hill  Elementary School                                                               
entrance  is a  very difficult  entrance situation  for students.                                                               
If the  land swap is  approved, the community  has the hope  of a                                                               
solution  to a  longstanding  problem in  the  neighborhood.   He                                                               
urged members to support SB 165.                                                                                                
                                                                                                                                
1:20:38 PM                                                                                                                    
                                                                                                                                
VICE CHAIR  JOHNSON, after first  determining no one  else wished                                                               
to testify, closed  public testimony on SB 165.   He related that                                                               
the committee now has a quorum to conduct business.                                                                             
                                                                                                                                
REPRESENTATIVE  GRUENBERG  referred  to  Block P,  Tract  A,  and                                                               
inquired  if any  remediation issues  exist since  the site  once                                                               
housed a gas station.                                                                                                           
                                                                                                                                
1:20:59 PM                                                                                                                    
                                                                                                                                
WENDY  LINDSKOOG, Assistant  Vice  President, Corporate  Affairs,                                                               
Alaska Railroad Corporation (ARRC)  stated she contacted the real                                                               
estate section of  the ARRC just prior to the  hearing.  The ARRC                                                               
confirmed  that  hazardous substances  had  been  present on  the                                                               
site,  but the  Department  of  Environmental Conservation  (DEC)                                                               
previously  completed  a  cleanup  process  on  the  land.    She                                                               
referred to an official DEC  record of decision for the property.                                                               
She read from the document,  as follows: "The hazardous substance                                                               
contamination has been adequately addressed  and does not pose an                                                               
unacceptable  risk to  human  health or  the  environment."   She                                                               
stated the  letter also contains  a conditional closure  based on                                                               
institutional  controls so  that certain  activities, such  as if                                                               
the  owner  removed  soil  would  necessitate  that  the  DEC  be                                                               
contacted.   However, in terms  of fixing an access  issue, there                                                               
is  no problem.   She  offered  to make  the letter  part of  the                                                               
record.                                                                                                                         
                                                                                                                                
1:23:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  recalled that the Hollywood  Vista area                                                               
contained low-cost  housing and  asked if  the building  had been                                                               
"torn down."  He said he imagined they had been removed.                                                                        
                                                                                                                                
JAMES  KUBITZ,  Vice-President,   Real  Estate,  Alaska  Railroad                                                               
Corporation  (ARRC)  answered  that Representative  Gruenberg  is                                                               
correct.   He answered the building  had been torn down  for many                                                               
years  and is  a vacant  piece of  land.   He explained  that the                                                               
development has already  begun, that the road  and utilities have                                                               
been completed and the site is currently ready for development.                                                                 
                                                                                                                                
1:24:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG recalled  the  planned development  for                                                               
the parcel was to construct quality condominiums on the site.                                                                   
                                                                                                                                
MR. KUBITZ  answered that  the MOA  is planning  the development.                                                               
He  offered his  belief  that  the platting  is  for some  single                                                               
family residences  and several condominiums.   He  explained that                                                               
the  lots  are  delineated  as  mixed-zone  lots  and  are  zoned                                                               
accordingly.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  expressed  interest in  the  area  and                                                               
offered his belief that some nice residences could be added.                                                                    
                                                                                                                                
RON POLLOCK, Executive  Director, Anchorage Community Development                                                               
Authority ACDA),  stated that the  project is separated  into two                                                               
sites.   The  easterly  portion  is divided  into  lots that  are                                                               
designed  for duplex/condominiums  with two  units per  building.                                                               
The westerly  portion of the  development is designed  for single                                                               
family dwellings.                                                                                                               
                                                                                                                                
1:26:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  remarked that the whole  project sounds                                                               
like a  "win-win" project.  He  inquired as to the  plans for the                                                               
land on 3rd Avenue, and whether it would be used for parking.                                                                   
                                                                                                                                
MS. LINDSKOOG answered that in the  near future the land would be                                                               
used for  parking.  She opined  that the advantage to  having one                                                               
owner is  in the event someone  did have an interest  in building                                                               
on the land, that  it would make the land easier  to develop.  If                                                               
that were to happen, the land  would also be on the municipal tax                                                               
roll, which  could be  an added future  benefit.   She reiterated                                                               
that the land currently will be used as a parking lot.                                                                          
                                                                                                                                
1:28:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOOGAN  moved to  report SB  165 out  of committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
note.                                                                                                                           
                                                                                                                                
There  being no  objection, SB  165 was  reported from  the House                                                               
Transportation Standing Committee.                                                                                              
                                                                                                                                

Document Name Date/Time Subjects