Legislature(1999 - 2000)
03/08/2000 03:12 PM Senate RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SB 249-DEPT NAT RES & AK HARDROCK LAND EXCHANGE
CHAIRMAN HALFORD thanked Mr. Pierce for his presentation and
announced SB 249 to be up for consideration.
MR. JIM STRATTON, Director of the Division of Parks and Outdoor
Recreation, said the Independent Mine State Historical Park is
located about 90 minutes from Anchorage in the Hatcher Pass area.
It's an historic mine operation that was closed down during WWII
and it came to the division from those mining interests in 1980.
Currently, about 52,000 visitors per year make their way there.
It's very accessible and it is near the proposed new ski area in
Hatcher Pass. It's a major tourist attraction in the Mat-Su
Borough and it sits on one of the few roads off the major highway
system. The main attractions are the historical mining structures
and the beginning of one of the mine tunnels in the side of the
mountain. Maintaining historical buildings is expensive. The
division held a public meeting in March of 1997 to discuss options
with the community about different ways to protect and sustain the
buildings in the Park. Everyone at the meeting acknowledged that
some kind of adaptive reuse of the structures was the only way to
ensure the buildings would remain standing.
MR. STRATTON said, in his mind, the only way to accomplish that is
to work with a private partner to develop a visitor destination
facility that would include overnight lodging, food service, a
gift shop, and tours. This is compatible with the purposes for
which the Park was established a couple of years ago but the
division learned from prospective private partners there is not
enough cash flow in lodging and food service alone to support the
investment needed to adapt and reuse the buildings.
MR. STRATTON told committee members the prospective private
partners would need another attraction, such as underground mine
tours. However, the division did not own beyond the first few
hundred feet of the tunnel. The tunnel was owned by Alaska
Hardrock, Inc., who is interested in pursuing an exchange for
property the State owned on the Willow Creek side of Hatcher Pass
that Alaska Hardrock is currently using for its mining operations.
The division got together last year with Alaska Hardrock and
signed a preliminary exchange agreement and split the costs of
doing the surveys and appraisals. In the final analysis, they
signed an agreement in which the State will receive 118 acres of
underground mine tunnel valued at $87,000 and Alaska Hardrock will
receive 107 acres of surface estate on the Willow Creek side of
Hatcher Pass valued at $66,500. Because of the unequal values of
the exchange, legislative approval is required, which is why SB
249 is before the committee today.
SENATOR TAYLOR asked how much Alaska Hardrock will pay per acre
for the State lands. He figured it to be a little over $500 per
acre.
MR. STRATTON said it calculated out to $620.
Number 1811
SENATOR TAYLOR asked if the division had to survey that land,
stake it and create a subdivision with a five-year plan before it
could be conveyed.
MR. STRATTON said the parcels had to be surveyed this summer and
Alaska Hardrock paid for that. The survey for the acreage the
State is receiving did not have to be redone.
SENATOR TAYLOR asked if the State is just receiving tunnels.
MR. STRATTON said that is correct.
SENATOR TAYLOR asked if they wouldn't need legislation if the
appraisal values had been the same.
MR. STRATTON said that is true.
SENATOR TAYLOR commented that he needs to talk to the Division of
Lands because that might be the only way an Alaskan can acquire
land in this state.
MR. STRATTON replied they try to be creative at the Division of
Parks.
SENATOR TAYLOR said he didn't want to discourage them in any way.
CHAIRMAN HALFORD asked if the division received any opposition to
this proposal.
MR. STRATTON replied that the division had a public comment period
for the month of December and the first part January and received
a couple of comments from folks, but essentially it's a non-
controversial action.
Number 1898
SENATOR TAYLOR moved SB 249 out of committee with individual
recommendations. There were no objections and it was so ordered.
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