Legislature(2017 - 2018)BELTZ 105 (TSBldg)

02/02/2017 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 9 MILITARY FACILITY ZONES TELECONFERENCED
Moved CSSB 9(CRA) Out of Committee
+= SB 39 MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS TELECONFERENCED
Moved CSSB 39(CRA) Out of Committee
*+ SB 28 MUNICIPAL LAND SELECTIONS: PETERSBURG TELECONFERENCED
Heard & Held
          SB  28-MUNICIPAL LAND SELECTIONS: PETERSBURG                                                                      
                                                                                                                                
3:50:34 PM                                                                                                                    
CHAIR BISHOP announced SB 28 to be up for consideration.                                                                        
                                                                                                                                
MELISSA  KOOKESH,  staff to  Senator  Bert Stedman,  Alaska  State                                                              
Legislature, sponsor  of SB 28, testified that  this measure would                                                              
give  the Petersburg  Borough  an  opportunity to  grow,  generate                                                              
revenue,  and increase  economic  development  from nearby  lands.                                                              
For several  months Senator  Stedman's office and  representatives                                                              
from  the Petersburg  Borough  have  reviewed  the bill  with  the                                                              
Alaska  Department  of  Natural  Resources  (DNR),  and  discussed                                                              
where  the  borough  selections  would occur,  and  they  have  no                                                              
objection to the bill.                                                                                                          
                                                                                                                                
She reviewed  the bill:  Section  1 adds subparagraph  (16)  to AS                                                              
29.65.010(a)  that sets  the general  land  grant entitlement  for                                                              
the Petersburg  Borough at  14,666 acres. This  is an  increase of                                                              
12,770 acres from its current level of entitlement.                                                                             
                                                                                                                                
Section  2 of  the bill  is a  conforming amendment  to allow  the                                                              
borough time to  make its new additional selections.  Section 3 is                                                              
also a  conforming amendment to  allow the land  selection process                                                              
at DNR to apply to the new Petersburg land selection.                                                                           
                                                                                                                                
3:52:43 PM                                                                                                                    
Section 4 is an immediate effective date.                                                                                       
                                                                                                                                
3:53:12 PM                                                                                                                    
SENATOR GARDNER  asked how the  original allocation  is calculated                                                              
and where the 14,666 acre figure comes from.                                                                                    
                                                                                                                                
3:53:32 PM                                                                                                                    
DAVID  SCOTT, staff  to Senator  Bert Stedman,  sponsor of  SB 28,                                                              
Alaska State  Legislature, answered  that DNR  and the  Borough of                                                              
Petersburg came up with the number.                                                                                             
                                                                                                                                
SENATOR GARDNER  added that  she was  thinking if Petersburg  gets                                                              
to  increase their  allocation,  will the  other 15  beneficiaries                                                              
say  they weren't  treated  fairly and  need  to increase  theirs,                                                              
too.                                                                                                                            
                                                                                                                                
3:54:36 PM                                                                                                                    
MARK  JENSEN, Mayor,  Borough of  Petersburg, Petersburg,  Alaska,                                                              
supported  SB  28. He  explained  the  way  they arrived  at  this                                                              
number is that  it is an equal  percentage of land that  the other                                                              
15  boroughs  that   have  already  formed  ahead   of  them  have                                                              
received. So Petersburg  is just trying to get up  to par with the                                                              
other boroughs that have received additional land.                                                                              
                                                                                                                                
He explained that  when the borough was formed in  2013, they were                                                              
allowed  to select  10 percent of  their area,  which was  18-plus                                                              
thousand acres. Since  they already had 400 and some  acres in the                                                              
city limits  they were  allowed  to select 1440  more acres.  They                                                              
are now asking  for the other 14,666  acres just to get  up to par                                                              
with the volume as the other boroughs did.                                                                                      
                                                                                                                                
SENATOR  MACKINNON asked  DNR why  she didn't  see a fiscal  note,                                                              
because she  assumed the land is  coming from the State  of Alaska                                                              
selections.  Where was the  value determination  of what  would be                                                              
moving  as far  as  gravel rights,  use  of public  facilities  or                                                              
whatever the borough would like to use the land for?                                                                            
                                                                                                                                
3:57:07 PM                                                                                                                    
MARTY  PARSONS,  Deputy Director,  Division  of Mining,  Land  and                                                              
Water, Department  of Natural Resources (DNR),  Anchorage, Alaska,                                                              
said the department submitted a zero fiscal note.                                                                               
                                                                                                                                
SENATOR  MACKINNON  asked  if he  was  telling  her that  land  is                                                              
valued at zero.                                                                                                                 
                                                                                                                                
MR. PARSONS  answered no; the land  is not valued at zero.  He was                                                              
saying  the fiscal  note is  what it  would cost  the division  to                                                              
process the additional land.                                                                                                    
                                                                                                                                
SENATOR  MACKINNON said  the fiscal  note has  a spot for  listing                                                              
the capital  value  of the property.  She understands  there  is a                                                              
zero fiscal  note for  operations for  the state, but  considering                                                              
the $3  billion deficit, there should  be a value  associated with                                                              
the acreage in that transfer.                                                                                                   
                                                                                                                                
MR.  PARSONS  said  that  is  correct,  but  the  state  does  not                                                              
necessarily  inventory its  land  on an  acre by  acre basis.  The                                                              
value is  indeterminate, although  there is  gravel and  timber on                                                              
it.                                                                                                                             
                                                                                                                                
3:59:34 PM                                                                                                                    
SENATOR MACKINNON  said she knows that Petersburg  needs resources                                                              
and assets at  their disposal to help their community,  but saying                                                              
the  value of  the land  is indeterminate  is  not a  satisfactory                                                              
answer. A value  needs to be established on the  property. If they                                                              
haven't done it before, it needs to be done now.                                                                                
                                                                                                                                
4:00:26 PM                                                                                                                    
MR. PARSONS said he could pull those numbers together.                                                                          
                                                                                                                                
4:00:52 PM                                                                                                                    
CHAIR BISHOP asked  if the DNR maintains an overriding  royalty on                                                              
top of  what the borough  can charge a  contractor for  using sand                                                              
and gravel.                                                                                                                     
                                                                                                                                
MR.  PARSONS  answered no.  Once  those  lands are  conveyed,  the                                                              
municipality  is given  management  authority and  it's theirs  to                                                              
sell the material and land and reap the benefits.                                                                               
                                                                                                                                
4:01:46 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
4:02:04 PM                                                                                                                    
CHAIR  BISHOP said  that  request  was in  to  DNR  and he  opened                                                              
public testimony.                                                                                                               
                                                                                                                                
4:02:40 PM                                                                                                                    
MR.  JENSEN added  that they  worked  with the  DNR after  borough                                                              
formation on the  original 1,400 acres and they  have been working                                                              
with  them on  the additional  parcels and  he has  not heard  any                                                              
opposition.                                                                                                                     
                                                                                                                                
4:03:43 PM                                                                                                                    
CHAIR BISHOP  closed public testimony  on SB 28 and held  the bill                                                              
in committee.                                                                                                                   

Document Name Date/Time Subjects
PEDC_sb28.pdf SCRA 2/2/2017 3:30:00 PM
SB 28
SB 28 Hearing Request Packet.pdf SCRA 2/2/2017 3:30:00 PM
SB 28
PSG boro land graphic.pdf SCRA 2/2/2017 3:30:00 PM