Legislature(2017 - 2018)BELTZ 105 (TSBldg)
02/07/2017 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB28 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 28 | TELECONFERENCED | |
SB 28-MUNICIPAL LAND SELECTIONS: PETERSBURG
3:31:14 PM
CHAIR BISHOP announced consideration of SB 28. He noted the
committee had been waiting on a revised fiscal note from the
Department of Natural Resources (DNR).
3:31:53 PM
SENATOR MACKINNON asked for a brief description of what the bill
does.
3:32:36 PM
MELISSA KOOKESH, staff to Senator Bert Stedman, sponsor of SB
28, Alaska State Legislature, Juneau, Alaska, said SB 28 will
set the total general land entitlement for the Petersburg
Borough at 14,666 acres, an increase of 12,770 acres from its
current level of entitlement, and would bring the Borough's land
entitlement to a level similar to the other 15 organized
boroughs in the state. SB 28 will address the long-term economic
sustainability of a recently formed borough.
3:33:14 PM
She read the following statement:
When the Borough formed in 2013, it received a general
land grant entitlement from the state of 1,896 acres.
Of the 1,896 acres, 457 acres had already been given
to the City of Petersburg. A substantial part of the
457 acres is restricted to public, charitable, or
recreational use.
After deducting the 457.47 acres that went to the
City, the Borough's land entitlement is 1,438 acres
which is an area roughly a third the size of the
Anchorage International Airport. This 1,438 acres
simply does not provide enough land to support
economic development such as rock and sand material
sites for roads, airports, waterfront land for tourism
development, or residential homes.
The Borough would select the additional 12,770 acres
from seven different areas around the Borough. All
selections would be made from vacant, unappropriated,
and unreserved state lands. No selections would
interfere with existing State, University, or Alaska
Mental Health Trust lands, including the Southeast
State Forest, or private ownership.
3:35:21 PM
SENATOR MACKINNON thanked Mr. Parsons for trying to value the
property that has not been subdivided on the fiscal note, but
the full selection amount is multiplied and this bill is only
for 12,770 acres. She asked if she should use the $68,638,750
number or the $78,829,750 number for the full acre valuation -
unless the original designation hadn't been accounted for.
MARTY PARSONS, Deputy Director, Division of Mining, Land, and
Water, Department of Natural Resources (DNR), said their
analysis was based on the entire 14,666 acres, so that would be
the $78 million-plus-change.
SENATOR MACKINNON asked if the Petersburg Borough would receive
14,666 acres or 12,770 acres in this bill.
MR. PARSONS answered in this bill they have asked for the entire
allotment of 14,666 acres and that is what they would be
receiving. The other number is less what the original
entitlement would have been.
SENATOR MACKINNON asked if they had selected their original
acreage.
MR. PARSONS answered yes.
SENATOR MACKINNON said she didn't understand why the additional
acreage would be included in the fiscal note. It says:
"Historically, municipal land transfers have not been reported
as having a negative fiscal impact or as an appropriation.
However, a rough estimate of the monetary value of this expanded
land transfer based on indicated value in the area is $5,375 per
acre." She believed the next multiplier overstates what this
bill does and asked "Wouldn't it be reasonable to have the
12,770 acres that is the change in this bill for this fiscal
note versus the entire allocation?"
MR. PARSONS responded that he could do that calculation. They
were estimating the entire entitlement that Petersburg would
receive, which is the 1,400 plus the additional to get to the
14,666 acres. It's a total of all land that would be conveyed.
3:39:09 PM
CHAIR BISHOP opened public comment on SB 28.
CHAIR BISHOP, finding no further questions, closed public
testimony on SB 28.
3:40:00 PM
At ease
3:41:00 PM
SENATOR MACKINNON said the department indicates no anticipated
operating costs, employee increases, or capital expenditure for
FY18-FY23 and on page 2 the DNR does not anticipate any direct
fiscal impact to adjudicate selections under the proposed
legislation. Additionally, there will be some travel costs for
land inspections under the proposed entitlement but that will be
absorbed by the department. There are only 12,770 acres
associated with this transaction. So, she moved to delete
language on the last line of the fiscal note that states the
average value in the area is set at $5,375 per acre and in
parenthesis multiplies that by "14,666 acres" and insert "12,770
acres," which should then equal $68,638,750. There were no
objections and the amendment was adopted.
CHAIR BISHOP said he would ask for a clean amended fiscal note
from the department going forward.
SENATOR MACKINNON moved to report SB 28, version 30-LS0045\D,
from committee with individual recommendations and attached
amended fiscal note that begins "SB028-DCCED-DCRA-1-27-17 and
SB028-DNR-MLW-1-30-17.
CHAIR BISHOP found no objection, and SB 28 moved from the Senate
Community and Regional Affairs Standing Committee.
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