Legislature(1997 - 1998)

02/18/1998 03:40 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
        SB 204 - STATE LAND FOR MUNICIP. SPORT FACILITIES                      
                                                                               
CHAIRMAN HALFORD announced SB 204 to be up for consideration and               
asked for an at-ease for two minutes.                                          
                                                                               
MS. MEL KROGSENG, Staff to Senator Taylor, sponsor, said our youth             
are too often left unattended after school, at night, and on                   
weekends with little to do.  Recreational and sports facilities in             
communities offer an alternative to crime and other undesirable                
activities.  SB 204 proposes to give State land to municipalities              
for development of sports and recreational facilities.  This land              
that is granted will not count against the local government                    
entitlement and make development of these facilities more                      
economically feasible for the communities.  The bill contains a                
reversionary provision which prohibits local governments from                  
selling the land.  If they should decide not to use it for that                
purpose, it would revert back to the State, but they may trade the             
land for other land that might be more suitable in their area than             
the available State land.                                                      
                                                                               
CHAIRMAN HALFORD asked if Senator Taylor minded taking out the                 
reversionary clause because it gets complicated when you are trying            
to exchange land.                                                              
                                                                               
SENATOR TAYLOR answered not at all.  He added that the Department              
wanted the clause.  He thought the land should just be fee simple.             
                                                                               
Number 526                                                                     
                                                                               
SENATOR SHARP asked if this meant that the Fairbanks North Star                
Borough could apply for the route of the Yukon Quest if the                    
Department of Natural Resources would grant that and not be counted            
against their land selection.                                                  
                                                                               
SENATOR TAYLOR said he wouldn't mind.  He didn't intend for there              
to be limitations.  There are a lot of activities out there.  His              
community is putting in an archery range.                                      
                                                                               
SENATOR GREEN said it looks like this creates unfair competition to            
some individual who might want to create a for-profit facility such            
as a hockey rink or tennis facility.                                           
                                                                               
SENATOR TAYLOR answered that wasn't the intent.  Most individuals              
do not put up soccer or little league fields.                                  
                                                                               
SENATOR GREEN responded they would if they were given free land.               
                                                                               
SENATOR TAYLOR said it is set up so that those individuals who have            
land that the municipality could better use for that purpose could             
receive land in exchange.                                                      
                                                                               
Number 495                                                                     
                                                                               
SENATOR LINCOLN asked if there was any size limitation to the land.            
                                                                               
SENATOR TAYLOR said the discretion is left up to the Commissioner              
of the DNR, but there is no limitation.                                        
                                                                               
SENATOR LINCOLN asked him to define municipality under this                    
scenario.                                                                      
                                                                               
SENATOR TAYLOR replied that there would be home rule and second                
class.                                                                         
                                                                               
SENATOR LINCOLN asked if all other unorganized boroughs would be               
eligible for the same land.                                                    
                                                                               
MS. KROGSENG answered that it is her understanding that all                    
political subdivisions fall under the classification of                        
municipality (according the George Utermohle, Legislative Legal                
Services).                                                                     
                                                                               
SENATOR LINCOLN asked what a political subdivision meant.                      
                                                                               
MS. KROGSENG answered that she thought it meant you're incorporated            
as an entity.                                                                  
                                                                               
CHAIRMAN HALFORD added that a city and borough does not include                
unincorporated communities.                                                    
                                                                               
SENATOR LINCOLN asked if there was a definition of what development            
means.  Is it planning or does there have to be a structure?                   
                                                                               
SENATOR TAYLOR answered that he planned on having it done by that              
time.  He didn't want cities applying for ball fields and then                 
never building them just so they could get additional land.                    
                                                                               
CHAIRMAN HALFORD clarified that taking out the reversionary                    
requirement doesn't mean the Commissioner can't enter into a                   
contractual obligation that gets performance within that four year             
period.                                                                        
                                                                               
MS. CAROL CAROLL, Director, Administrative Services, DNR, said they            
have looked at the bill and there are a couple of differences with             
the authority they already have to transfer lands or make grants to            
municipalities or entities.  Those two differences are the reverter            
clause which they prefer not to be there and the other is that it              
won't be applied to the municipal entitlement portion.  The grants             
that they make now for public purposes count against the entity's              
municipal entitlement.  She said that when DNR does this kind of               
transfer, it is always for a public purpose and there was a                    
question that the land in this bill might be used for a private                
facility.  Other than those differences, this does duplicate the               
authority DNR already has.                                                     
                                                                               
CHAIRMAN HALFORD asked if this was intended for private ownership.             
                                                                               
SENATOR TAYLOR answered no, he had never thought of it.                        
                                                                               
SENATOR LEMAN said he wasn't so sure they should restrict this from            
being a privately constructed facility even though it was on public            
land.  He thought they would want a municipality to have that                  
option.                                                                        
                                                                               
CHAIRMAN HALFORD said he didn't want to create something that was              
in direct competition with a private entity, but he also agreed                
with the other view that there are private management contracts                
running public facilities.  He wasn't sure he wanted to create a               
preferential way to create a privately owned facility, even if it's            
open to the public.                                                            
                                                                               
SENATOR LEMAN said he understood, but there are times when you may             
have to pony up the land to make the economics work.                           
                                                                               
CHAIRMAN HALFORD asked if they would contribute the land to a                  
private profit-making developer.                                               
                                                                               
SENATOR GREEN said she thought Ms. Caroll said there was a                     
prohibition against it going to a for-profit entity.                           
                                                                               
MS. CAROLL responded that she was comparing what DNR's authorities             
are right now to the bill as Senator Taylor had it.  Usually DNR,              
when they grant land, requires it to be for a public purpose and               
for the most part it is in public ownership.  There are leases that            
private entities do have on State and municipal land.                          
                                                                               
SENATOR GREEN asked about the Sullivan Arena.                                  
                                                                               
CHAIRMAN HALFORD said it is publicly owned and financed, but there             
are management contracts.                                                      
                                                                               
SENATOR GREEN asked if there would be a prohibition against                    
management contracts.                                                          
                                                                               
MS. CAROLL said she would check on that.                                       
                                                                               
SENATOR LEMAN asked if there is a prohibition against any entities             
being owned by private enterprise.                                             
                                                                               
MS. CAROLL said she didn't think there was, but she would check on             
that also.                                                                     
                                                                               
Number 363                                                                     
                                                                               
SENATOR TAYLOR moved on line 10 to delete the reversionary                     
statement.  There were no objections and it was so ordered.                    
                                                                               
There was general discussion of lands for public purposes versus               
private and SENATOR TAYLOR said that many cities are already fully             
entitled and other cities are afraid if they take land under                   
current law for recreational purposes, they are restricting the                
amount of land they may need for another commercial or industrial              
purpose.                                                                       
                                                                               
Number 291                                                                     
                                                                               
SENATOR LEMAN moved on page 1, line 7 to delete "by the                        
municipality" and insert "for public purposes."  Also in that same             
amendment on page 2, line 1 delete "by the municipality."  There               
were no objections and it was so adopted.                                      
                                                                               
SENATOR SHARP asked Ms. Caroll if she felt they were still                     
operating within the present parameters the Department wishes as               
far as maintaining public ownership.                                           
                                                                               
MS. CAROLL said it would still be their wish that it be out of the             
municipality's land.                                                           
                                                                               
SENATOR TAYLOR moved to pass CSSB 204(RES)from committee with                  
individual recommendations.  There were no objections and it was so            
ordered.                                                                       

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