Legislature(2003 - 2004)

04/30/2003 05:18 PM House EDT

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
        HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT,                                                                      
                INTERNATIONAL TRADE AND TOURISM                                                                               
                         April 30, 2003                                                                                         
                           5:18 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Cheryll Heinze, Chair                                                                                            
Representative Lesil McGuire, Vice Chair                                                                                        
Representative Nancy Dahlstrom                                                                                                  
Representative Vic Kohring                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Harry Crawford                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Pete Kott                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW BY  THE ANCHORAGE  ECONOMIC DEVELOPMENT  CORPORATION RE:                                                               
PROMOTING ANCHORAGE AS A PLACE TO LIVE AND DO BUSINESS                                                                          
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
03-11, SIDE(S) A                                                                                                                
                                                                                                                                
CHAIR CHERYLL  HEINZE convened the  meeting of the  House Special                                                             
Committee  on  Economic   Development,  International  Trade  and                                                               
Tourism  at  5:18  p.m.    Present at  the  call  to  order  were                                                               
Representatives   Heinze,   Kohring,   Cissna,   Dahlstrom,   and                                                               
Crawford.  Representative McGuire arrived shortly thereafter.                                                                   
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                              
LARRY CRAWFORD, President and  Chief Executive Officer, Anchorage                                                               
Economic Development  Corporation (AEDC), introduced  himself and                                                               
provided some  background into the  achievements and aims  of the                                                               
corporation.  Noting that AEDC  is a nonprofit organization whose                                                               
aim is to expand and  diversify Anchorage's economy, he also said                                                               
AEDC  members  serve  as  ambassadors to  the  world  to  promote                                                               
business,   travel,   and   economic   development   in   Alaska.                                                               
Mr. Crawford offered compact disks  (CDs) containing a PowerPoint                                                               
presentation to  all members of the  committee.  He said  much of                                                               
the "outside world" maintained  some misconceptions regarding the                                                               
Anchorage airport and the city  of Anchorage in general, and that                                                               
he  felt  strongly   that  it  was  important   to  dispel  these                                                               
misconceptions.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  CISSNA   noted  that   Paul  Fuhs   had  proposed                                                               
something regarding Fire Island.                                                                                                
                                                                                                                                
MR. CRAWFORD responded that Fire Island was indeed an asset.                                                                    
                                                                                                                                
CHAIR HEINZE mentioned  that committee members would  all like to                                                               
travel and promote Alaska, and  asked if members of the committee                                                               
might be able to have more CDs.                                                                                                 
                                                                                                                                
MR. CRAWFORD  agreed that  AEDC would be  happy to  provide ample                                                               
CDs  to  the  committee  in   an  effort  to  dispel  the  common                                                               
misconceptions surrounding Alaska as a  place to live, visit, and                                                               
do business.                                                                                                                    
                                                                                                                                
CHAIR HEINZE mentioned  that the Council of  State Governments is                                                               
planning to come to Anchorage in  the fall of 2003, and suggested                                                               
that they also  should have copies of the CDs  to promote Alaska.                                                               
She then  asked if AEDC  was specifically targeting any  areas to                                                               
promote Alaskan business.                                                                                                       
                                                                                                                                
MR. CRAWFORD responded  in the affirmative, stating  that Asia is                                                               
the  number-one focus.   He  suggested  that on  their routes  to                                                               
other locations, flights should be  via Anchorage, where they can                                                               
easily stop for  refueling, thus enabling them to  carry a larger                                                               
payload.                                                                                                                        
                                                                                                                                
CHAIR HEINZE  responded with the  idea that on their  return trip                                                               
they might carry Alaskan products  such as fish and geoducks, and                                                               
stated that in the Asian market the demand for geoducks is huge.                                                                
                                                                                                                                
REPRESENTATIVE  CRAWFORD offered  that in  the near  future, with                                                               
the increased  use of the  Anchorage airport  facilities, perhaps                                                               
there could  be light assembly [manufacturing  outfits] in place.                                                               
He suggested that if the  facilities are built, the business will                                                               
come.                                                                                                                           
                                                                                                                                
MR. CRAWFORD responded  that yes, "we" can  provide the necessary                                                               
goods and services if there is  interest.  He also mentioned that                                                               
66 percent of  the Anchorage airport operating  dollars come from                                                               
air cargo, and that some  carriers will use the Fairbanks airport                                                               
as well.                                                                                                                        
                                                                                                                                
CHAIR  HEINZE  asked  if the  Anchorage  airport  subsidizes  the                                                               
Fairbanks airport.                                                                                                              
                                                                                                                                
MR. CRAWFORD responded that the  Anchorage airport subsidizes the                                                               
Fairbanks airport at approximately $6 million a year.                                                                           
                                                                                                                                
REPRESENTATIVE  McGUIRE  mentioned   that  former  Representative                                                               
James  had once  had  a  bill dealing  with  the  subject of  the                                                               
airport, and that  the governor may be in favor  of supporting an                                                               
airport commission.                                                                                                             
                                                                                                                                
CHAIR HEINZE  inquired if there  were any  nonmilitary warehouses                                                               
at the airport at the present time.                                                                                             
                                                                                                                                
MR.  CRAWFORD  responded  that  no,   at  present  there  are  no                                                               
nonmilitary warehouse,  but given  the demand, they  could easily                                                               
and quickly be put into place.                                                                                                  
                                                                                                                                
MITCHELL GRAVO,  Lobbyist, stated that  this would be  a capital-                                                               
appropriations  issue,  and  that  they had  drawn  up  a  letter                                                               
addressed to the  finance committee that would  be distributed to                                                               
all   Anchorage   legislators   as  well   as   Matanuska-Susitna                                                               
legislators for signature;  this letter is a  request for funding                                                               
for Global Logistics  Marketing.  Mr. Gravo  mentioned that there                                                               
have been  four phases to the  program, and that now  they are in                                                               
phase four.                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOHRING asked how  much money was being requested,                                                               
and what the money would be used for.                                                                                           
                                                                                                                                
MR.  CRAWFORD responded  that AEDC  is funded  40 percent  by the                                                               
private  sector and  60 percent  by the  public sector;  that the                                                               
money would go  toward funding of AEDC's operations;  that in the                                                               
four  phases, $150,000  was utilized;  and that  it was  expected                                                               
that now,  in the fourth  and final stage,  the same sum  will be                                                               
needed.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  KOHRING asked  for  an example  of some  projects                                                               
that have proven successful in the past.                                                                                        
                                                                                                                                
MR.  CRAWFORD  responded  that   they  have  been  successful  in                                                               
bringing  Fed-Ex  and UPS  [United  Parcel  Service] business  to                                                               
Anchorage.                                                                                                                      
                                                                                                                                
JOE  GRIFFITH,  Board   Member,  Anchorage  Economic  Development                                                               
Corporation, added that  in addition to these  examples, there is                                                               
a small  high-tech company  of 25 employees,  as well  as another                                                               
small company that employees 19 Alaskans.                                                                                       
                                                                                                                                
CHAIR  HEINZE  added  that  the company  called  Tasty  Fries  is                                                               
looking to the Alaskan seafood industry to do business.                                                                         
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
There were no committee announcements.                                                                                          
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special  Committee on  Economic Development,  International Trade                                                               
and Tourism meeting was adjourned at 5:45 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  State Capitol,  Room 3,                                                               
Juneau,  Alaska  99801  (mailing address),  (907)  465-2214,  and                                                               
after  adjournment  of the  second  session  of the  Twenty-Third                                                               
Alaska  State Legislature  this  information may  be obtained  by                                                               
contacting the Legislative Reference Library at (907) 465-3808.                                                                 

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