Legislature(1999 - 2000)

01/27/2000 05:10 PM House EDT

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT AND TOURISM                                                                   
                        January 27, 2000                                                                                        
                           5:10 p.m.                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
Review of transportation corridor issues and issuance of priority                                                               
for future meeting topics.                                                                                                      
                                                                                                                                
TAPE                                                                                                                            
                                                                                                                                
00-1, SIDE A                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Representative Phillips, Chair, convened the House Special                                                                      
Committee on Economic Development and Tourism meeting at 5:10 p.m.                                                              
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Committee members present at the call to order were Representatives                                                             
Phillips, Cissna, Kerttula, and Dyson.                                                                                          
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                          
                                                                                                                                
CHAIR PHILLIPS introduced the new Committee Aide, Scott Petsel.                                                                 
Minutes of the last meeting were reviewed and approved.  A list of                                                              
issues concerning transportation corridors was read, and reports on                                                             
them followed.                                                                                                                  
                                                                                                                                
REPRESENTATIVE DYSON reported that the Williamsport Road from                                                                   
Illiamna Bay to Pile Bay has badly deteriorated, washed out in many                                                             
places, and is in need of repair.  An upgraded road will improve                                                                
access for recreation to Lake Illiamna and South Alaska.                                                                        
Representative Dyson also said people who live in the area have                                                                 
expressed some concern about impact on their lifestyle.  Chair                                                                  
Phillips said improving this road would open up a whole new part of                                                             
Alaska for recreation, commercial fishing, and mining.                                                                          
                                                                                                                                
JEFF OTTESON, Statewide Planning Chief, Division of Statewide                                                                   
Planning, Department of Transportation and Public Facilities                                                                    
(DOT/PF) gave a brief update on studies that may result in cost                                                                 
savings to the state and the public. He mentioned that there is a                                                               
safety issue involved with the Williamsport Road, and that its                                                                  
upgrade is a top priority with DOT/PF.  Potential extension of the                                                              
road across the top of Lake Illiamna also is being considered.                                                                  
                                                                                                                                
MARK HICKEY, lobbyist for the Lake and Peninsula Borough, said that                                                             
borough is in full support of the proposed roads.                                                                               
                                                                                                                                
Discussion among Representative Dyson, Chair Phillips, and Mr.                                                                  
Hickey focused on alternatives and why these were not preferred.                                                                
Mr. Dyson stated that dredging the Kvichak River would solve the                                                                
immediate freighting problems but would not provide access for                                                                  
fishermen with boats.                                                                                                           
                                                                                                                                
MR. OTTESON said the Army Corps of Engineers will be studying the                                                               
Williamsburg Road project as part of the Southwest Transportation                                                               
Plan, and it will have a high priority this year.                                                                               
                                                                                                                                
REPRESENTATIVE DYSON told the committee that he has been studying                                                               
this issue for three years and is gratified to see that progress is                                                             
being made.                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA spoke briefly about the Telecommunications                                                                
Highway, focusing on individual Alaskans' use of that electronic                                                                
communication technology throughout the state.  Large corporations                                                              
and the Denali Commission have taken up the issue and have made                                                                 
great strides, she said.  Now we should facilitate a mentoring                                                                  
program to use that technology to link entrepreneurs who                                                                        
successfully market their products with people who want to do so.                                                               
She also mentioned telemedicine.                                                                                                
                                                                                                                                
CHAIR PHILLIPS recommended that the committee schedule a meeting on                                                             
e-commerce, covering all aspects of it including taxation,                                                                      
government, and legal issues.                                                                                                   
                                                                                                                                
JANET SEITZ, Legislative Assistant to Representative Rokeberg,                                                                  
office updated the committee on the Pogo Gold Development Project,                                                              
and mentioned that there were handouts in the packet.  When Carl                                                                
Hanneman of Teck Corporation, the developer, was contacted, he said                                                             
Teck would consider all options: air, water, and an all-season road                                                             
for transportation to the site.                                                                                                 
                                                                                                                                
CHAIR PHILLIPS requested information about the length of the road.                                                              
She mentioned that it should be possible to get some federal funds                                                              
for planning through Alaska's United States Senator Ted Stevens.                                                                
                                                                                                                                
MR. OTTESON gave an update on DOT/PF work on the area-wide                                                                      
transportation plan.  The next phase will focus on the northwest                                                                
coast of Alaska, working with communities and resource companies                                                                
and looking at the issue of access to tidewater.                                                                                
                                                                                                                                
MR. PETSEL reported on the Rock Creek Road. describing Alternative                                                              
Three, the preferred alternative.  The road will provide access                                                                 
needed to permit development of hard rock mining of gold deposits                                                               
in the area.  The existing road is very winding and cannot be used                                                              
year-round.  The new road will be rerouted and straightened,                                                                    
thereby shortening the  total length by two miles, and will be                                                                  
usable in all seasons.                                                                                                          
                                                                                                                                
MR. OTTESON updated the committee on the proposed railroad line                                                                 
from Point Lay to the Red Dog Mine.  The railroad line could carry                                                              
ore to the dock and power to the mine and villages.                                                                             
                                                                                                                                
CHAIR PHILLIPS mentioned that the price of power is a big problem                                                               
across the NW, and said this railroad line could help pay for                                                                   
itself.                                                                                                                         
                                                                                                                                
REPRESENTATIVE DYSON said there is enough coal for 800 years of                                                                 
production at Point Lay.  The railroad could make it possible to                                                                
develop other deposits, including the Bornite and Kubuk copper                                                                  
mines.                                                                                                                          
                                                                                                                                
MR. OTTESON said the Red Dog dock expansion will be large enough                                                                
for other operators to utilize for other commodities.                                                                           
                                                                                                                                
CHAIR PHILLIPS then listed future meeting topics.  Among them were                                                              
future updates on the road issues, a joint meeting on potential                                                                 
economic ties to Alberta with the House Special Committee on Oil                                                                
and Gas and representatives of the Provincial Parliament of                                                                     
Alberta, the Anchorage-Fairbanks Airport Authority issue, a mining                                                              
overview, and an update on tourism, including cruise ship issues.                                                               
                                                                                                                                
REPRESENTATIVE DYSON, who had visited the Tulsequah Chief mine site                                                             
in British Columbia with Representatives Harris and Green, said                                                                 
development there could be of benefit to Alaska and merits                                                                      
discussion.  He said there may also be some interest in a road to                                                               
from Copper Center to Tazlina Lake.                                                                                             
                                                                                                                                
CHAIR PHILLIPS announced the next meeting will be on February 8 and                                                             
will feature a briefing on the National Missile Defense Program,                                                                
which will have significant impact on Alaska.                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 5:55 p.m.                                                                                              
                                                                                                                                
NOTE:  The meeting was recorded and handwritten log notes were                                                                  
taken.  A copy of the tape and log notes may be obtained by                                                                     
contacting the House Records Office at 129 6th Street, Suite 229,                                                               
Juneau, Alaska  99801-2197, (907) 465-2214, and after adjournment                                                               
of the second session of the Twenty-first Alaska State Legislature                                                              
this information may be obtained by contacting the Legislative                                                                  
Reference Library at 129 6th Street, Suite 102, (907) 465-3808.                                                                 
                                                                                                                                
                                                                                                                                

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