Legislature(2007 - 2008)SENATE FINANCE 532
04/17/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB89 | |
| HB168 | |
| SB100 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 100 | TELECONFERENCED | |
| + | SB 76 | TELECONFERENCED | |
| + | SB 137 | TELECONFERENCED | |
| + | HB 168 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 89 | ||
HOUSE BILL NO. 168
"An Act authorizing two exchanges of land between the
Alaska Railroad Corporation and the Department of
Transportation and Public Facilities; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Stedman pointed out that this is the House of
Representatives companion bill for SB 137, which is in
Committee, but has not been heard.
DAVID SCOTT, Staff to Representative Kyle Johansen, Chair, House
Transportation which sponsors this bill, read from the sponsor's
statement as follows.
House Bill 168 would authorize the Alaska Railroad
Corporation (ARRC) to exchange approximately ten acres of
land with the Department of Transportation and Public
Facilities (DOTPF) to accommodate two DOTPF projects. The
Parks Highway Improvement project in Wasilla and the Heavy
Aircraft Cargo Apron project at the Fairbanks International
Airport both require an adjustment to the Alaska Railroad's
track and right-of-way lands. This legislation ensures that
all the appropriate titles to property can be in place for
both of these important DOTPF projects.
The Alaska Railroad Corporation Act, Alaska Statute
42.40.285, requires Legislative approval for the ARRC to
"exchange, donate, sell or otherwise convey its entire
interest in land".
Mr. Scott noted that this bill was reviewed by three House
Committees. Its Senate companion bill, SB 137, was reviewed by
the Senate Transportation Committee.
9:17:19 AM
MARY SIROKY, Special Assistant to the Commissioner, Department
of Transportation and Public Facilities, identified this as an
important bill to the Department. Receipt of these fee simple
titles would satisfy the projects' fund sources, specifically
federal agencies.
9:18:28 AM
Senator Thomas understood that the land in question had
originally been owned by the State. The State had conveyed it to
the Railroad.
Ms. Siroky affirmed.
9:18:51 AM
WENDY LINDSKOOG, Assistant Vice President, Corporate Affairs,
Alaska Railroad Corporation, Department of Commerce, Community
and Economic Development, specified that this legislation would
"clean up" matters of title as these projects move forward.
Co-Chair Stedman considered the action proposed in the bill "a
fairly straight forward land exchange" that would clean up the
land titles.
Co-Chair Hoffman asked how the expense of relocating the
railroad tracks would be addressed.
9:19:52 AM
Ms. Siroky pointed out that the Parks Highway track relocation
project had already been completed.
Co-Chair Hoffman thus asked why the title transfer for that
project was being requested.
Ms. Siroky communicated that when the Department began the
construction process, "it entered into lease arrangements" with
the ARRC. This legislation would allow the State "to get the fee
simple title where it's available for the land".
Co-Chair Hoffman questioned the reason for pursuing a title
transfer since "the lease arrangement had been adequate" to
allow for the track relocation.
Ms. Siroky expressed that "it is always in the State's best
interest to have fee simple title wherever possible so that we
don't have to go back" and renegotiate a lease. In this case, it
would be difficult to move the highway and the railroad back to
its original location in the event the lease renegotiation
faltered.
Co-Chair Hoffman asked the cost of the lease.
Ms. Siroky did not have that information and deferred to other
Department of Transportation and Public Facilities (DOT)
personnel.
9:21:31 AM
FRAN ZIMMERMAN, Central Region, Department of Transportation and
Public Facilities, testified via teleconference from an offnet
location. One of the conditions of the temporary construction
permit that permitted the Parks Highway project to commence was
that the State would initiate the process to acquire the title.
She also noted that the project was supported by federal highway
funding.
In response to a question from Co-Chair Hoffman, Ms. Zimmerman
explained that moving the railroad tracks had been an integral
component of the Parks Highway project.
Co-Chair Hoffman again asked the State's cost for the right-of-
way lease with ARRC.
Ms. Zimmerman did not have the exact information but assured the
Committee it was a "nominal fee".
9:22:49 AM
JOHN BENNETT, Right-of-Way Chief, Northern Region, Department of
Transportation and Public Facilities, testified via
teleconference from an offnet location to speak to the Fairbanks
Heavy Cargo Apron Relocation project. The right-of-entry
contract the State signed with ARRC allowed DOT's contractor to
enter ARRC's railroad right-of-way "and relocate it in
anticipation that we will eventually transfer title".
Mr. Bennett informed the Committee that this title transfer
process had begun the previous year; however, the Legislature
adjourned before the action could be addressed. That situation
prompted the Department to enter into the right-of-entry
agreement with ARRC.
Mr. Bennett communicated that because the acreages being
transferred were considered to be of equal value, no exchange of
money would be required. He also noted that federal aviation
funding would provide for the cost of relocating the rail track.
Co-Chair Hoffman asked whether the land was valued in terms of
acreage or dollar amount.
Mr. Bennett specified that the acreages were equal, and, since
the parcels were in close proximity to each other, an appraisal
was not deemed necessary. The values of the land would be
similar.
9:24:31 AM
In response to a question from Co-Chair Stedman, Mr. Bennett
affirmed the lands had not been appraised.
Co-Chair Stedman asked whether not conducting an appraisal was
standard operating procedure in Department right-of-way land
transfers.
Mr. Bennett responded in the negative. When properties are
geographically distant, an appraisal would be conducted as
different values would be expected. However, that is not the
case with the lands in question.
9:25:21 AM
PHYLISS JOHNSON, Vice President, General Counsel, Alaska
Railroad, Department of Commerce, Community and Economic
Development testified via teleconference from an offnet location
and advised she was available to answer questions.
Co-Chair Stedman asked whether she, as a representative of ARRC,
deemed the value of these properties to be equal, and thus,
would not warrant an appraisal.
Ms. Johnson expressed that ARRC "is getting equivalent value in
the sense of having an operating route covering the same
stretch" from one point to another. Therefore, even were the
acreage or the value to vary slightly, ARRC would consider the
transfer "status quo" in that ARRC would be able to move traffic
in a similar fashion as before.
9:26:22 AM
Co-Chair Stedman, observing that neither of two ARRC land issues
being considered by the Legislature have had appraisals done,
asked whether this was the norm for ARRC.
Ms. Johnson specified that both issues concerned exchanges. The
land in this bill would be transferred to another State entity
and thus, the land would not "be leaving the umbrella of State
ownership". In addition, the land parcels were in close
proximity to each other and would be "operationally very
equivalent".
Ms. Johnson considered ARRC's other land issue to be a "unique
land transfer … it stands on its own two feet for other reasons
other than an appraised value". The president of ARRC has
expanded on the circumstances involved in that land transfer
issue several times before the Legislature.
9:27:38 AM
Co-Chair Stedman asked whether ARRC's decision not to have these
parcels of land appraised was an anomaly or regular operating
procedure.
Ms. Johnson advised that an appraisal is conducted in the
majority of ARRC's land transactions, including lease
transactions.
Ms. Johnson noted that an appraisal would have been conducted on
the land identified in this bill were the transactions to have
involved a private party rather than a State entity. Thus, this
situation is an anomaly.
9:28:43 AM
Co-Chair Hoffman moved to report the bill from Committee with
individual recommendations and accompanying fiscal notes.
There being no objection, the HB 168 was REPORTED from Committee
with previous zero fiscal note #1 from the Department of
Commerce, Community and Economic Development and previous zero
fiscal note #2 from the Department of Transportation and Public
Facilities.
AT EASE 9:29:24 AM \ 9:30:09 AM
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