Legislature(2001 - 2002)
02/08/2002 03:34 PM Senate RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SB 255-LAND EXCHANGES: GOLD CORD DEVELOPMENT
CHAIRMAN TORGERSON announced SB 255 to be up for consideration.
MR. JERRY BURNETT, staff to Senator Lyda Green, sponsor of SB 255,
said the measure provides for legislative approval of an unequal
land exchange between the State of Alaska and Gold Cord
Development, Inc., and incorporates a proposed change to land
trade statutes to remove legislative approval for unequal land
exchanges with a value of less than $5 million. He explained:
Alaska State Parks has been working since 1978 to
develop an opportunity for private reuse and management
of historic buildings at Independence Mine State Park.
To facilitate road access to the underground mine tour,
the State of Alaska sought an exchange with Gold Cord
Inc., an owner of a critical section of the road. The
state held an easement across the property that was not
of sufficient size to accommodate anticipated
reconstruction to provide for bus access. In addition,
Gold Cord held a federal mining claim that extended into
the existing park boundaries. The exchange has been
agreed to by all parties. The state trades away no land,
but provides the process by which Gold Cord can receive
fee title to 19 acres of land valued at $63,000
currently held by Gold Cord as federal mining claims.
The state receives about six acres of land valued
at$68,500 from Gold Cord. Because the state brought no
land to trade and because final values are not equal,
the transaction requires legislative approval. The
difference here is $5,500. The Alaska Legislature has
approved another unequal value exchange at the
Independence Mine State Park between the State of Alaska
and Alaska Hard Rock Inc. for access in the year 2000.
In addition to the Gold Cord trade approval, SB 255
allows for administrative approval of land trades with a
value of under $5 million. Currently by statute, unequal
exchanges that do not benefit the State of Alaska are
not allowed. Any land exchange, whether equal or unequal
in value, involves only willing participants.
Under existing statute, even though all parties agree
and the state comes out ahead, unequal exchanges must
still receive legislature approval. Any exchange, equal
or unequal, over $5 million in state value, would still
come before the legislature for approval. Since the
exchange must benefit the state in any case, unequal
value exchanges under the $5 million level could be
accomplished administratively to enhance efficiency
under the terms of this legislation.
CHAIRMAN TORGERSON asked why "the environs" was deleted on page 2,
lines 17 and 18.
MR. BURNETT answered that any land exchange must be a benefit to
the State of Alaska, whether it's equal or unequal in value. In
order to enhance the efficiency of the Department of Natural
Resources, they requested a section to allow administrative
approval of unequal land exchanges. This is the policy decision
for the legislature.
CHAIRMAN TORGERSON asked what would happen if they delete that
section and whether that would accomplish what Senator Green wants
to do.
MR. RON SWANSON, Director, Community Development, Mat-Su Borough,
supported SB 255. He stated, "We feel it fully compliments our
plan for ski resort development that's located close by. It will
make the area a very good tourist destination facility." He said
the Borough Assembly in a resolution it passed on January 15
endorsed the exchange.
MS. CAROL CARROLL, Director, Administrative Services, DNR, said
DNR put the section on administrative approval for land values
under $5 million before the legislature because it has done a
couple of small value exchanges and found administrative
efficiencies in doing so.
CHAIRMAN TORGERSON asked her if she supported the bill without
that section. She said she did.
SENATOR HALFORD moved to delete Section 2 [Amendment 1].
SENATOR ELTON asked if the net effect, in future cases in which
the value is greater to the state than to the other land owner if
Section 2 is not deleted, would be to give DNR the administrative
latitude to make a decision on its own without coming to the
legislature.
SENATOR HALFORD said that is correct, but added that the other
values to the state may be subjective.
There was no further discussion and Amendment 1 was adopted.
SENATOR WILKEN moved to pass CSSB 255 (RES) from committee with
individual recommendations and its zero fiscal note. There were no
objections and it was so ordered.
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