Legislature(1993 - 1994)
04/14/1994 02:30 PM House CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
April 14, 1994
2:30 p.m.
MEMBERS PRESENT
Representative Harley Olberg, Chairman
Representative Jerry Sanders, Vice-Chair
Representative Con Bunde
Representative Ed Willis
Representative Bill Williams
Representative Cynthia Toohey
MEMBERS ABSENT
Representative John Davies
OTHER LEGISLATORS PRESENT
Representative Gary Davis
COMMITTEE CALENDAR
Long Range Municipal Planning Presentation
WITNESS REGISTER
GARY WILLIAMS, City Manager
City of Whittier
P.O. Box 608
Whittier, AK 99693
Phone: 472-2337
POSITION STATEMENT: Presented the City of Whittier's
Redevelopment and Urban Design Plan
AMES BARNETT, Attorney
City of Whittier
10050 Prospect Drive
Anchorage, AK 99516
Phone: 346-2755
POSITION STATEMENT: Provided information
ACTION NARRATIVE
TAPE 94-17, SIDE A
Number 000
CHAIRMAN HARLEY OLBERG called the meeting to order at 2:35
p.m. Members present at the call to order were
Representatives Willis, Bunde, Williams and Toohey. He
noted for the record a quorum was present.
Number 017
GARY WILLIAMS, CITY MANAGER, CITY OF WHITTIER, presented the
City of Whittier's Redevelopment and Urban Design Plan
saying, "I'm really gratified by the opportunity to present
to you what I think is a very happy vision of the future in
these gloomy times...but first of all, I'd like to say,
thank you very much that in your wisdom, in the last session
you appropriated money sufficient to match the ISTEA
(Intermodal Surface Transportation Efficiency Act) funds
which can put a road into Whittier. I also would share with
you that the environmental impact statement which can make
this all possible, is in draft form now... From that we've
learned a great deal about what it is that we need to do to
prepare for the future. Indeed, that's what this report to
you is all about...to share with you...what will accrue to
the state of Alaska when we are able to realize the benefits
of the road access project. We will indeed, realize
economic benefits far, far in excess of that investment that
you have made in us..."
MR. WILLIAMS continued, "The first thing I wanted to do is
give you a perspective on Whittier as it exists today...
(He reviewed numerous illustrated charts.) When he referred
to the railroad yards he said, "This is an area that the
city of Whittier and the railroad are working very
diligently to come to terms on how this can be used for a
higher and better use than it is today, yet how can we
accommodate the railroads capability to operate the roll
on/roll off capability. And that is an important subject
that we are working on with the railroad, and I want to say
to you that despite the difficultly that the city and the
railroad have experienced in the past, I think we have
dawned a new era in terms of that relationship and we will,
I think very soon, have a working relationship that
implements the plan...
Number 084
REPRESENTATIVE CYNTHIA TOOHEY asked how many of the other
committee members have visited Whittier.
All, but Representative Bill Williams had.
MR. WILLIAMS said, "...we felt that we had to show that
indeed Whittier can accommodate the visitation or market who
will seek out Whittier. (He then referred to a report
produced by International Resort Advisors.) He offered many
details of long range planning and added, "So by
implementing this plan which provides for living space for
some 1,500 souls in the future, looking out 20 years,
provides ample commercial and economic development here and
the creation of an actual city hall... we're able to create
a real community in western Prince William Sound..."
MR. WILLIAMS continued, "International Resort Advisors was
adamant about the point that there is a certain level of
amenities and infrastructure that you must provide in order
to retain your market. Our market is estimated to be in the
low case scenario, the first year the road is open, 900,000
visitors. We currently can accommodate without undue grief,
200,000 visitors..."
Number 253
REPRESENTATIVE TOOHEY said, "You've approached the railroad
obviously, and they are willing to give? sell? lease the
land to you guys?"
MR. WILLIAMS replied, "There are probably many ways in which
this can be done and the next step in this process is a
bilateral agreement between the city and the railroad which
implements the intra plan as operational between the
railroad and city. What we adopt, will become the game
plan... whether they lease this building to the city of
Whittier, whether they find a developer to develop it,
whether they develop it themselves..."
JAMES BARNETT, ATTORNEY, CITY OF WHITTIER, said, "What we
understand is that they need the 1.75 million (dollars)
required to reconfigure themselves to get out of the way but
essentially, once they have that money to reconfigure
themselves, the basic concept is that they're going to
provide the land for free with the expectation that there
will be leases on the commercial parcels. But the notion is
that where you saw all those parking lots, there will be
private operations like you see in Seward or Homer, who are
going to be paying the railroad for the right to be there.
The railroad sees a real estate opportunity if they commit
the land."
Number 286
REPRESENTATIVE CON BUNDE said, "I see you have a cruise ship
dock there. I assume you are going to do something to
encourage them to come back."
MR. WILLIAMS said, "Yes, basically the encouragements need
be very little. They've told us they want to come back if
there's a road, they will be back provided they have a dock.
And the reason they left was the railroad said we cannot
guarantee our dock...some parts of it...are in rather bad
repair. That, and the fact that the tariff was quite
high... The cruise ship industry decided because they are a
business and they like a stable environment in which to
work, they decided Seward would be a better...alternative."
MR. WILLIAMS continued, "To do what you see there is an
investment of about three million dollars. About $1.2
million to revitalize the marginal wharf and dock to the
extent that it can be completely safe and handle virtually
any size cruise ship coming to Alaska... We want to provide
the amenity that attracts them to Whittier..." He then
provided details of the amenities in the plan.
Representative Sanders joined the committee at 2:45 p.m.
Number 315
MR. WILLIAMS then said, "The next step that we will begin
going through in this plan (is), after it is adopted by the
planning commission as the comprehensive plan... We'll
begin packaging all of the redevelopment configurations and
this is just one of 26 redevelopment packages that need to
be put together and taken out for financing, and that is the
next step that we'll begin going through in this process."
MR. WILLIAMS concluded, "The bottom line to all of this
means that we create an economy that IntRA (International
Resort Advisors) expects will reach $30 million annually
through all of the activities that are planned. It will see
an investment of private money of $80 million. There will
obviously be an investment of public infrastructure
development money. The plan also includes something that
we've got to be looking at right away, which is a sewage
treatment facility. We now have primary treatment which is
fine for 280 souls, and we exist under an EPA waiver now
because the effluent is not that toxic to Passage Canal. If
we touch the system, we're obviously going to loose that
waiver and we're suddenly off and running on a $1.6 million
primary treatment facility. That's one of the first and
biggest steps that we've got to take in this initial
redevelopment plan... There's a certain minimum level of
investment that needs to made in order to attract that
market...provided that we have road access. Road access
obviously is a condition precedent to all that we've talked
about today..."
REPRESENTATIVE GARY DAVIS asked, "What is the overall status
of the landownership? You've touched on the railroad owning
land. What about the city or borough or private and
federal?"
MR. WILLIAMS said, "There are three regimes of ownership.
The railroad being the largest owner of land...amounting to
about 70 percent of the waterfront and 50 percent of the
entire core area. The city of Whittier's ownership: ...
when I say "city" I'm talking about people who also own land
privately... The other regime of ownership is the U.S.
Forest Service and all of the land exterior to the city
limits...is in U.S. Forest Service hands."
REPRESENTATIVE TOOHEY, MR. WILLIAMS and MR. BARNETT
discussed the ownership of properties outlying Whittier.
Number 494
REPRESENTATIVE TOOHEY asked if the other 280 residents of
Whittier "share" the favorable views of Mr. Williams on this
development.
MR. WILLIAMS indicated generally, yes.
REPRESENTATIVE DAVIS asked, "On the harbor, what is the
current capacity of the harbor and what's your waiting
list?"
MR. WILLIAMS said, "332 boat capacity and we have a waiting
list that's more than 200 long."
REPRESENTATIVE ED WILLIS said, "How about that Buckner
Building, what's the status of that?"
MR. BARNETT gave a history of the building, including its
builder's bankruptcy. He said, "The court has since agreed
to abandon the property. So essentially no one owns it.
The only party that probably could claim it today would be
Mr. Zamorello, but for him to own it he'd have to pay the
back taxes which approach a quarter of a million dollars."
REPRESENTATIVE WILLIS asked if it was boarded up?
MR. BARNETT said, "No."
REPRESENTATIVE BUNDE said, "The question is why doesn't the
city take possession?"
MR. BARNETT said, "That's certainly an option for the city,
the city would (then) have to board it up and fence it up.
It's wide open right now."
MR. WILLIAMS said, "It's a serious problem that has a
$40,000 price tag to solve."
CHAIRMAN OLBERG said, "For the city to take it back, you
also take back all of the liability."
MR. BARNETT reminded Chairman Olberg, "One of our very small
legislative requests is in fact to put a fence around the
Buckner Building."
CHAIRMAN OLBERG adjourned the meeting at 3:08 p.m.
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