Legislature(2011 - 2012)BARNES 124
03/13/2012 10:15 AM House ECON. DEV., TRADE & TOURISM
| Audio | Topic |
|---|---|
| Start | |
| Presentation: South Denali Visitor's Center | |
| 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
March 13, 2012
10:28 a.m.
MEMBERS PRESENT
Representative Bob Herron, Chair
Representative Neal Foster
Representative Wes Keller
Representative Cathy Engstrom Munoz
Representative Berta Gardner
Representative Chris Tuck
MEMBERS ABSENT
Representative Kurt Olson, Vice Chair
Representative Reggie Joule
Representative Steve Thompson
COMMITTEE CALENDAR
PRESENTATION: SOUTH DENALI VISITOR'S CENTER
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
BEN ELLIS, Director
Division of Parks and Outdoor Recreation
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation
entitled, "South Denali A Visitor Center on the Horizon," dated
3/13/12.
ACTION NARRATIVE
10:28:29 AM
CHAIR BOB HERRON called the House Special Committee on Economic
Development, International Trade and Tourism meeting to order at
10:28 a.m. Representatives Herron, Tuck, Munoz, and Keller were
present at the call to order. Representatives Foster and
Gardner arrived as the meeting was in progress.
^PRESENTATION: SOUTH DENALI VISITOR'S CENTER
PRESENTATION: SOUTH DENALI VISITOR'S CENTER
10:29:26 AM
CHAIR HERRON announced that the only order of business would be
a presentation on the South Denali Visitor Center by Ben Ellis,
Director, Division of Parks and Outdoor Recreation.
10:29:37 AM
BEN ELLIS, Director, Division of Parks and Outdoor Recreation,
Department of Natural Resources (DNR), provided a PowerPoint
presentation entitled, "South Denali A Visitor Center on the
Horizon," dated 3/13/12. Mr. Ellis said this project is one of
the most exciting of which the Division of Parks and Outdoor
Recreation (Alaska State Parks) has had the lead, and is 40
years in the making. There have been over 200 public meetings
on the project, beginning under the leadership of the U.S.
National Park Service (NPS), and now under his division. The
environmental impact study (EIS) on the area was completed in
2009, and an interpretative master plan has been created.
Although the design and pinpoint location are undecided, the
"feel and intent" of the proposed center has been captured. Mr.
Ellis advised there is a contract with the University of Alaska
Anchorage (UAA) Center for Economic Development for a
feasibility study, an economic impact study, and an operation
business plan for the project. He said the information
presented at this time is accurate, but still needs operations,
maintenance, and staffing issues to be well defined. Slide 1
was the view from the general location of the visitor center,
which will be located within Denali State Park, and has a good
view of Mt. McKinley from the south side. A visitor center at
that location would relieve congestion at the Denali National
Park and Preserve Denali Visitor Center. Slide 3 was a map
showing the common border between the Denali National Park and
Preserve and Denali State Park. The area surrounding the
proposed center is about 321,000 acres, with two existing
recreational developments: Byers Lake Campground, and Kasugi
Ridge Trail.
10:35:59 AM
REPRESENTATIVE MUNOZ asked how to access the trailhead.
MR. ELLIS said access is at Byers Lake and other trailheads. He
listed the experiences now available at the state park year
around including public use cabins, RVs, camping, hiking,
rafting, snow machines, dog sledding, skiing, snowshoeing,
mountain biking, and winter biking. The visitor center project
is a cooperative partnership between the state, the Matanuska-
Susitna (Mat-Su) Borough, NPS, and private enterprise. The
purposes of the proposed visitor center are: share the beauty
of the South Denali region; provide a unique visitor experience;
enhance recreational opportunities; and provide educational and
interpretive activities.
10:38:34 AM
MR. ELLIS displayed slide 11 which was a map showing existing
and proposed trails, and proposed road access to the visitor
center. It is envisioned that visitors will use the trails as a
gateway to the nearby surrounding area and for hiking and
overnight backpacking in the wilderness. Access from the George
Parks Highway will cross 130 acres of private property that will
be donated to the state park for this purpose, and will lead to
a transportation hub. The intent is for a shuttle system to run
from the transportation hub to the visitor center during the
summer peak season. During shoulder and off seasons, the road
to the visitor center will be open to vehicles. The
interpretative master plan seeks to have the center - even
though on a hill - somewhat hidden from the Parks Highway. The
concept of a transportation hub is to avoid just putting
visitors on a bus. For those visitors on a tour, Mr. Ellis
estimated the experience at the visitor enter would last about
two hours, and for those who wish to hike, the experience would
last up to six hours. There would also be a three-mile trail
from the transportation hub for hiking or biking to the center.
Slide 12 was a concept site map of the transportation hub which
indicated the location of bus parking and loading, car parking,
campgrounds, a ranger station, a shuttle pickup area, and an
interactive display. The project has received a $1 million
grant from Scenic Byways, America's Byways, Federal Highway
Administration, U.S. Department of Transportation, for
interpretative purposes. Mr. Ellis advised that all of the park
ranger station and maintenance facilities at Byers Lake will be
moved to this area. Slide 13 indicated the total project cost
of $36 million, not including an electrical grid extension to
the Parks Highway. He noted that the agencies involved in this
project agreed not to put in the access road without full
funding for the project, thus the first efforts are on the lower
section in a "phased approach." The estimated cost of the road
to the visitor center is $4.5 million, and the estimated cost of
the visitor center is $19 million. At this time, $13 million
has been received through state appropriations from the general
fund (GF) in the amounts of $8.9 million in fiscal year 2009 (FY
09) and $3 million in FY 12, in addition to $950,000 from the
Scenic Byways grant.
10:48:56 AM
CHAIR HERRON asked whether the GF funds were requested by the
governor or by the legislature.
MR. ELLIS said the requests were from the governor. The
remaining funding needed is $23 million for the building
project. Regarding the aforementioned electrical cost, he
advised that the facility requires three-phase electrical power
or diesel generators. Matanuska Electrical Association, Inc.
(MEA) estimates an extension of three-phase power to the visitor
center will cost $6 million, and Princess Tours will contribute
$1 million toward its cost. The extension would provide an
incentive for economic development along the surrounding
corridor.
10:52:15 AM
CHAIR HERRON asked for the amount of funding the project
partners should next pursue.
MR. ELLIS opined the next funding needed is for the design of
the center and the road up to it. Slide 16 was a conceptual
view of the 16,000 square feet visitor center. A portion of the
center is planned to be open for winter use if possible. The
exhibits will be state-of-the-art, but he restated the intent is
to encourage visitors to go outside. Slide 20 indicated the
parameters of the feasibility/economic impact studies used by
the UAA Center for Economic Development were the following: a
composite forecast model methodology; baseline visitation
projected at 230,600; and forecast based on visitor counts at
four other parks.
10:55:49 AM
CHAIR HERRON asked for the official comments on the project from
representatives of Princess Tours.
MR. ELLIS relayed they have been very supportive and have
participated in discussions on visitor participation, commenting
that the center would be an addition to their tour package. He
turned to the subject of revenue, noting the primary revenue
would be from a $10 charge for transportation from the lower
transportation hub to the visitor center, however, there would
be no entrance fee. Receipts from campgrounds, tour operators,
food, and bookstore concessions are projected at $625,000 per
year. In response to Representative Gardner, he said there
would be no fee for those walking or biking to the center, and
the fee for a ride would be $10 per person. A pass or discount
for Alaska residents visiting any of the national or state
facilities in the Denali area is a possibility.
MR. ELLIS continued to operations costs, saying that facility
maintenance is estimated at $1 million per year for both
facilities, and staffing for 22 positions, including state, NPS,
Mat-Su Borough employees, and volunteer stipends, is estimated
at $491,000. The potential state employees will have three
full-time and five seasonal positions. National Park Service
staff may be moved from Talkeetna to the proposed center
location, but there will be more discussion on this matter. He
stressed that the estimates are for the entire complex,
including campgrounds. Utilities and operations are estimated
at $240,000. Slide 23 indicated that a margin or surplus of
$1.25 million is projected for the initial year, with a margin
of $2.8 million annually by 2023, based on 3 percent investment
growth and contingent upon timing, start up, and marketing.
There will be a margin because there will be no debt service.
11:01:39 AM
MR. ELLIS indicated the overall economic impacts of the project
are measured by the projected expenditures by the state and
federal governments and private individuals, and the multiplier
of indirect and induced spending. The impacts of the
construction and operations phases - expenditures and new jobs -
will affect the state, the region, and local economies.
Construction, beginning with the construction of the lower
access road - this summer - and the construction of the
transportation hub - which is currently being designed - will
spur expenditures in the amount of $13 million annually, and
will create 230 new jobs. After construction, annual
operations will spend $1.9 million annually and fund 39 new
jobs. Additional spending by visitors, residents, and business
development after the center has matured is expected to be $30.6
million annually and to support 600 new jobs.
11:03:33 AM
CHAIR HERRON asked whether the governor has requested funding
for the project in this year's budget.
MR. ELLIS said, "We're wanting to make sure that our number is
right."
CHAIR HERRON asked if the legislature appropriated funding,
whether the commissioner and the governor would be supportive of
its inclusion in the current capital budget.
MR. ELLIS observed the commissioner and the governor have been
very supportive of the project overall, as evidenced by the
funding approved last year. However, there are many options to
be weighed.
CHAIR HERRON, on behalf of Representative Foster, asked for
comments on the contributions of Seal Lion Corporation (SLC) and
United Companies, Inc. (UCI).
11:05:12 AM
MR. ELLIS said they were "fantastic." His experience with UCI
was that it has been very cooperative; in fact, the access
provided by UCI reduced costs and increased the safety of the
grade of the road by several degrees. In further response to
Chair Herron, he said Representative Neuman is in support of the
project. At the conclusion of the presentation, he offered to
provide a breakdown of the funding needed.
REPRESENTATIVE KELLER expressed his support for a discount or
entrance pass for Alaskans.
MR. ELLIS added that the transportation shuttle will only
operate in summer, so there will be no cost to drive to the
center - when possible - during the shoulder season.
11:07:42 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 11:08 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| EDT 3.13.12 - South Denali Visitor Center - Ben Ellis, Director, State Parks.pdf |
HEDT 3/13/2012 10:15:00 AM |