Legislature(1999 - 2000)
04/14/1999 05:15 PM House EDT
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HOUSE SPECIAL ECONOMIC DEVELOPMENT AND TOURISM COMMITTEE
April 14, 1999
5:15 p.m.
COMMITTEE CALENDAR
MAT-SU BOROUGH PRESENTATION:
PROPOSED HATCHER PASS SKI AND RESORT DEVELOPMENT PLAN
DISCUSSION:
TRANSPORTATION DEV. TO RESOURCE AREA NEEDS
TAPES
99-6, SIDE A & B
CALL TO ORDER
CHAIR GAIL PHILLIPS called the House Special Economic Development
and Tourism Committee to order at 5:15 p.m.
PRESENT
Committee members present at the call to order were Representatives
Cissna, Dyson and Halcro. Representatives Kerttula and Rokeberg
joined the meeting at 5:19 and 5:25 p.m. respectively.
Representative Barnes was excused.
SUMMARY OF INFORMATION
MAT-SU [MATANUSKA-SUSITNA] BOROUGH PRESENTATION:
PROPOSED HATCHER PASS SKI AND RESORT DEVELOPMENT PLAN
KYLE RANDICH, Vice-President, Hatcher Pass Development Corporation,
was introduced by Darcie salmon, Mat-Su Borough Mayor, and he
presented his company's plans to develop a ski area and year-round
recreation area in Hatcher Pass in four stages: one, initial ski
area with two chair lifts, base facility and night lighting; two,
infrastructure development (power, utilities); three, village
development (hotels, convention center, residential housing, golf
course, additional ski area and lifts, ice rink and other
recreation amenities); four, marketing program to attract
destination visitors.
According to an Alaska Industrial Development and Export Authority
(AIDEA), the initial ski development could attract 100,000 skiers
from within Alaska. AIDEA recommends keeping the capital
improvement costs at $9 million, because beyond that figure too
much debt service would be incurred.
A study by Scott Goldsmith determined that the initial construction
would support 150 jobs with a $5 million payroll, 138 winter jobs
and $5 million in visitor spending.
The land lease payment to the Mat-Su Borough is $100,000 per year
with the Mat-Su Borough pledging to put the payment into the
project development category.
REPRESENTATIVE HALCRO was informed, upon request, that the AIDEA
report referred to was published in 1994. He also was informed,
upon request, that the Department of Transportation maintains the
road. The corporation hopes to complete surveying by the fall of
this year and by 2001 have a highspeed quad lift in operation.
MIKE SCOTT, Manager, Mat-Su Borough, referred members to the last
two pages in the presentation booklet outlining costs and projected
income. The $13.3 million cost for phase I is almost secured with
$8 million from the Hatcher Pass Development Corporation and about
half of the balance secured to date. The corporation is asking for
$1.2 million from the state, of which, $427,000 is already budgeted
in the State Transportation Improvement Program (STIP) for capital
projects and he hopes the state will fund the balance; $800,000.
REPRESENTATIVE HALCRO commented that the property tax value of such
a development would be valuable to the Mat-Su Borough.
MR. SCOTT replied that, indeed, it would; however, the Mat-Su
Borough was not in a position to advance funds based on this
projected debt service.
REPRESENTATIVE SCOTT OGAN informed the committee members that the
Mat-Su Borough, unlike many others, suffers from private sector
development, such as commercial fishing processing or port and
harbor facilities that allow the governing entity to earn
significant income from taxation. He voiced his strong support for
the project.
REPRESENTATIVE PHILLIPS added that she wants to encourage
development of a light rail system from Anchorage to the Mat-Su
area.
MR. SCOTT said the Hatcher Pass area is ideal for attracting
visitors as it is close to Anchorage, on the railway and highway to
northern tourist destinations. It also has an adjacent historical
attraction (Independence Mine) and major hotel chains have already
approached the developers.
DISCUSSION: TRANSPORTATION DEV. TO RESOURCE AREA NEEDS
CHAIR PHILLIPS referred members to information in their packets
about three transportation routes they will discuss at the next
meeting.
REPRESENTATIVE CISSNA referred members to information about
developing Internet highway access to all Alaskans. Many rural
Alaskans would be able to make a living competing on a worldwide
basis for Internet business with such access.
REPRESENTATIVE ROKEBERG discussed other points relating to Erate
Subsidies relating to Internet access. He and Representative
Cissna will meet together before the next committee meeting to
share information.
REPRESENTATIVE PHILLIPS said both topics would be discussed at the
May 12 meeting. The next committee meeting is April 28 with two
programs: Tlingit-Haida Central Council, jobs in Rural Alaska;
Alaska Seafood Industrial update (and product samples).
COMMITTEE ACTION
The committee took no action.
ADJOURNMENT
CHAIR PHILLIPS adjourned the House Special Committee on Economic
Development and Tourism at 6:25 p.m.
NOTE:
The meeting was recorded and handwritten log notes were taken. A
copy of the tape(s) and log notes may be obtained by contacting the
House Records Office at 130 Seward Street, Suite 211, Juneau,
Alaska 99801-1182, (907) 465-2214, and after adjournment of the
second session of the Twenty-first Alaska State Legislature, in the
Legislative Reference Library.
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