Legislature(2011 - 2012)BARNES 124
01/25/2011 10:15 AM House ECON. DEV., TRADE & TOURISM
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| Start | |
| Overview(s): Committee Goals & Priorities | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, INTERNATIONAL
TRADE AND TOURISM
January 25, 2011
10:18 a.m.
MEMBERS PRESENT
Representative Bob Herron, Chair
Representative Kurt Olson, Vice Chair
Representative Neal Foster
Representative Wes Keller
Representative Cathy Engstrom Munoz
Representative Steve Thompson
Representative Peggy Wilson
Representative Berta Gardner
MEMBERS ABSENT
Representative Chris Tuck
COMMITTEE CALENDAR
OVERVIEW(S): COMMITTEE GOALS & PRIORITIES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
No witnesses to record
ACTION NARRATIVE
CHAIR BOB HERRON called the House Special Committee on Economic
Development, International Trade and Tourism meeting to order at
10:18 a.m. Representatives Herron, Peggy Wilson, Olson, Keller,
Foster, Thompson, and Gardner were present at the call to order.
Representative Munoz arrived as the meeting was in progress.
Representative Tuck was excused.
^OVERVIEW(s): COMMITTEE GOALS & PRIORITIES
OVERVIEW(s): COMMITTEE GOALS & PRIORITIES
10:19:25 AM
CHAIR HERRON announced that the only order of business would be
soliciting committee members' goals and priorities for the
committee during this session. He noted that the constituencies
of the members of the committee contain all of the elements of
economic development, tourism, and trade, and without
duplication of any one region of the state. His expectation is
that the committee will travel throughout the state so each
member can showcase the successes, and near successes, in each
community. Chair Herron advised members that the committee will
hear two bills from the governor and will receive one more
shortly. He asked members to speak to their interests and
expectations for the committee.
10:22:28 AM
REPRESENTATIVE OLSON stated that tourism is a good portion of
the economy in the central Kenai Peninsula and he is pleased to
sit on a committee with a focus on tourism. He will present
information on a business unique to this area at a later time.
10:23:25 AM
CHAIR HERRON advised that one focus of the committee may be to
gather information on "value-added" projects.
10:23:54 AM
REPRESENTATIVE OLSON related Dow Chemical canceled plans to
build a new plant in the next 10 years on the Kenai Peninsula.
Land for the plant was offered by the Kenai Peninsula Borough, a
skilled work force from the technical college and former Agrium
Inc. workers was available, and the peninsula has a practically
ice-free port, but it does not have a supply of one billion
cubic feet (Bcf) of gas per day.
10:24:51 AM
CHAIR HERRON observed that members serve on other committees
which will be focused on oil and gas taxes; this committee can
add information to those discussions.
10:25:39 AM
REPRESENTATIVE KELLER expressed his concern about the overall
economy and opined this committee has a golden opportunity to do
proactive and positive activities. In his role on the National
Conference of State Legislators Deficit Reduction Task Force he
has heard dire economic projections for other states, but Alaska
is not in that situation. He is eager to take the committee on
a tour of the Matanuska-Susitna (Mat-Su) Borough port terminal
at Port MacKenzie. He said the potential there is "stunning,"
including a mile loop of rail for staging areas. This
development will create jobs in his district and will also have
statewide economic impact.
CHAIR HERRON informed the committee the agenda for the 1/27/11
meeting includes a presentation by the Division of Agriculture,
Department of Natural Resources (DNR), on the export of seed
potatoes to China.
10:28:48 AM
REPRESENTATIVE KELLER stated his district has a seed potato
facility that is undergoing significant growth. In general,
agriculture in the Mat-Su is impressive and farms are supplying
large amounts of local produce to stores.
10:29:47 AM
CHAIR HERRON said the next meeting will also include a
presentation by an agriculture entrepreneur from Bethel who has
grown 50,000 pounds of potatoes for local sale.
10:30:24 AM
REPRESENTATIVE GARDNER added that the aforementioned
entrepreneur has more than just potatoes.
10:30:43 AM
REPRESENTATIVE THOMPSON noted that the farming of seed potatoes
extends into the Tanana Valley and out to Delta Junction. A
Chinese delegation visited the area recently, but he cautioned
that China's business practices of "grow their own, and take
care of their own, and ship their own," can cut Alaskans out of
jobs and control. He agreed that Port MacKenzie is very
important to Fairbanks because of the goods that must be shipped
in, and the potential to ship out value-added products. The
focus in Fairbanks now is on energy for home heating and
providing affordable energy for businesses such as the lime mine
at Livengood. He observed that the in-state natural gas
pipeline and the Susitna River Hydroelectric Project are far in
the future, however, the Healy Coal plant would be a good source
of electricity in the interim. Tourism is also vital to
Fairbanks and the Interior, and in some years has provided the
only growth in economic development. Representative Thompson
pointed out the successes of the Cold Climate Housing Research
Center (CCHRC) and a recently opened pellet plant that employs
30 residents. In addition, Georgia-Pacific was looking at
manufacturing several products from the abundant and high
quality birch trees, but the cost of shipping out the finished
goods is a problem. Fairbanks garners benefits from the Morris
Thompson Cultural and Visitors Center that showcases the Bush,
and books tours to the Bush and to villages along the Yukon
River, taking tourists to "the real Alaska." Representative
Thompson urged members to concentrate on improving Alaska's
ranking as 50th in the nation for "business friendly," an
example of which is that permits for drilling an oil or gas well
take much longer here than in Texas or North Dakota.
10:35:56 AM
CHAIR HERRON related that North Dakota is drilling 2,300
exploration wells this year. He then asked Representative
Thompson to press the Division of Agriculture, Department of
Natural Resources (DNR) regarding his concerns about China's
business practices.
10:36:55 AM
REPRESENTATIVE THOMPSON, in response to Chair Herron, spoke of
the Tanana River Bridge proposed by the Alaska Railroad
Corporation and US Army Alaska. The bridge is needed to provide
year around access to military training grounds. Because the
North Star Borough's air quality does not always meet standards,
the base is threatened for closure by the Base Realignment and
Closure (BRAC) commission. In order to eliminate another
negative aspect of the base, the bridge was proposed to connect
the base to its training facility. However, unexpected problems
have come up with the Environmental Protection Agency (EPA)
permits, and if in two years ground is not broken, the funding
will be withdrawn and the opportunity for construction of the
bridge will be lost.
10:38:31 AM
CHAIR HERRON observed one role of the committee is to point out
potential opportunities and opportunities that may be lost.
10:39:09 AM
REPRESENTATIVE P. WILSON stated that the economy in her area is
struggling after the loss of 5,000 residents during the last 20
years. Tourism and fishing survive, but there is no timber
industry. New projects in Wrangell include a 150-ton boat haul-
out that is doing well, a new harbor that is filling up with
boats, and a community garden. As the towns in her district are
roadless, special events such as the Bald Eagle Festival in
Haines and the Little Norway Festival in Petersburg are
scheduled to bring participants into these communities, and it
is important to have a reliable ferry system and airlines with
stable schedules. Reduced energy costs are needed to encourage
economic development, and she expressed her hope that
communities with hydroelectric power can be connected to those
without.
10:44:42 AM
REPRESENTATIVE GARDNER recognized that much of the wealth of
Alaska comes from outside her district in Anchorage, but her
interest in this committee is because of the small businesses
and small business owners in her constituency. The Institute of
Social and Economic Research (ISER) at the University of Alaska
Anchorage (UAA) is nearby her district, and she stressed the
university should be a booster of economic development and an
incubator for entrepreneurs, in addition to offering classes in
engineering and global logistics. Important to the future of
Anchorage are the Knik Arm Bridge and Toll Authority (KABATA)
and the Port of Anchorage, although both projects must address
challenges.
10:46:33 AM
CHAIR HERRON recalled a Pacific NorthWest Economic Region
(PNWER) meeting where he learned of a lawmaker from Washington
who wants to create an economic development community college.
He suggested that would be an interesting topic to present to
the university.
10:47:41 AM
REPRESENTATIVE GARDNER observed there is not a holistic approach
to economic development.
10:48:03 AM
REPRESENTATIVE FOSTER was reminded that economic development
means jobs. In the larger communities of his district such as
Nome, there was a period of mining exploration and construction
which also led to workforce development as residents of villages
came into town for training. This is the type of training, like
the training of health aides, which can keep residents working
in their home villages. At one time tourism from Asia was a big
part of the economy of Nome, and smaller cruise ship activity
and oil and gas exploration are expected to increase with the
opening of the Northwest Passage. This activity will need
further development of the current port in Nome. More of a
Coast Guard presence is also anticipated - along with the need
for a deepwater port - and he said he expected these subjects
will be studied by the current legislative task force on Arctic
issues. Representative Foster expressed his hope that the
courses of the Northwest Career and Technical Center can be
coordinated so complementary courses are offered at the various
campuses. In the smaller communities, one of the best ways to
reduce the cost of energy is through the weatherization of
outdated homes. This process creates jobs and energy savings.
He has heard of efforts to create an Internet-based system to
cooperatively sell Native art, but developing the right site is
a challenge. Representative Foster advised the fishing industry
is vital to Western Alaska, and a representative from the Alaska
Seafood Marketing Institute (ASMI) suggested if there were a
cannery in the region, fish and reindeer products could be
incorporated into domestic or international food aid programs.
As his district includes the poorest economic area in the state,
this would be a great opportunity. As a matter of fact, there
is a program underway to support the commercial harvesting of
reindeer meat.
10:54:46 AM
REPRESENTATIVE MUNOZ said her interest in the committee has to
do with tourism issues. Her district has benefitted from the
reduction of the [2006 Cruise Ship Initiative] head tax and she
now hopes to focus on tourism marketing needs. A stable
marketing system is needed for the tourism industry that pays
approximately $130 million into state coffers. She opined a
certain dollar amount of that money should be directed to
tourism marketing needs each year so the industry can rely on a
level of funding. She urged the committee to hear proposals
from the Alaska Travel Industry Association (ATIA) and other
focus groups.
10:57:00 AM
CHAIR HERRON assured Representative Munoz the ATIA will be heard
by the committee. He stressed the importance of "getting
information out through this committee to things that are
important to individual members."
10:57:45 AM
REPRESENTATIVE MUNOZ relayed the House Resources Standing
Committee will be touring the Coeur Alaska Kensington Gold Mine
and she would like to include this committee as well.
CHAIR HERRON informed the committee that Representative Tuck
will give a report on proposed film industry legislation at the
next meeting. He then reviewed the committee's schedule for the
beginning of the session. Chair Herron shared his intention to
instigate "lunch and learn" sessions that will preview
presentations to the committee. Regarding legislation, he will
introduce a concurrent resolution that will create a pan-Arctic
coalition of Alaska, Northwest Territories, and Yukon Territory,
because the Canadian territories and Alaska have similar issues
with their respective federal governments. Chair Herron asked
members to review HB 119 and HB 120 prior to the scheduled
hearings. Finally, the Canadian consulate from Vancouver wants
to make a presentation to the committee.
11:01:57 AM
REPRESENTATIVE GARDNER asked whether there is a consulate in
Anchorage.
11:02:13 AM
CHAIR HERRON indicated yes.
11:02:51 AM
REPRESENTATIVE P. WILSON heard discussion at the PNWER meeting
that Canada would like to open a gateway port into the Arctic.
She opined that the U.S. needs to turn its attention to this
economic opportunity and determine which Alaska communities are
interested in growing into a major port.
11:04:31 AM
REPRESENTATIVE KELLER emphasized that PNWER is an excellent
organization of Pacific Northwest states and Canadian provinces
and territories with similar problems.
11:05:27 AM
CHAIR HERRON, in response to Representative Keller, will get
information on whether PNWER will be holding meetings in Alaska.
11:05:41 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Economic Development, International Trade
and Tourism meeting was adjourned at 11:05 a.m.
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