Legislature(2005 - 2006)CAPITOL 124

02/14/2005 01:00 PM House RESOURCES


Download Mp3. <- Right click and save file as

Audio Topic
01:06:48 PM Start
01:16:53 PM HB130
03:05:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 130 UNIVERSITY LAND GRANT/STATE FOREST TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                       February 14, 2005                                                                                        
                           1:06 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jay Ramras, Co-Chair                                                                                             
Representative Ralph Samuels, Co-Chair                                                                                          
Representative Jim Elkins                                                                                                       
Representative Carl Gatto                                                                                                       
Representative Gabrielle LeDoux                                                                                                 
Representative Kurt Olson                                                                                                       
Representative Paul Seaton                                                                                                      
Representative Harry Crawford                                                                                                   
Representative Mary Kapsner                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 130                                                                                                              
"An Act granting certain state land to the University of Alaska                                                                 
and establishing the university research forest; and providing                                                                  
for an effective date."                                                                                                         
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 130                                                                                                                  
SHORT TITLE: UNIVERSITY LAND GRANT/STATE FOREST                                                                                 
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/07/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/07/05       (H)       RES, FIN                                                                                               
02/09/05       (H)       RES AT 1:00 PM CAPITOL 124                                                                             
02/09/05       (H)       Heard & Held                                                                                           
02/09/05       (H)       MINUTE(RES)                                                                                            
02/14/05       (H)       RES AT 1:00 PM CAPITOL 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KATHIE WASSERMAN, Policy and Program Coordinator                                                                                
Alaska Municipal League                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
JUDITH BRAKEL                                                                                                                   
Gustavus, Alaska                                                                                                                
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
PAUL JOHNSON                                                                                                                    
Elfin Cove, Alaska                                                                                                              
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
BOB JOHNSON                                                                                                                     
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
RON RASMUSSEN, Co-Owner                                                                                                         
Northland Wood Products                                                                                                         
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
CHARLIE RAFT                                                                                                                    
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
BRETT CARLSON                                                                                                                   
Northern Alaska Tour Company                                                                                                    
Coldfoot, Alaska                                                                                                                
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
JOAN MCBEEN                                                                                                                     
Tenakee Springs, Alaska                                                                                                         
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
DENNIS WATSON, Mayor                                                                                                            
Craig, Alaska                                                                                                                   
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
JOE BEEDLE, Vice President for Finance                                                                                          
Chief Financial Officer and Treasurer Trustee                                                                                   
Land Grant Endowment Fund                                                                                                       
University of Alaska                                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in favor of HB 130.                                                                               
                                                                                                                                
DANIEL TRAIL                                                                                                                    
Wrangell, Alaska                                                                                                                
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
WALTER NORTHRUP, Commercial Fisherman                                                                                           
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
MARTY REMUND                                                                                                                    
Port Alexander, Alaska                                                                                                          
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
JOHN LAWSON                                                                                                                     
Port Alexander, Alaska                                                                                                          
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
ZACH LENNING, Commercial Fisherman                                                                                              
Port Alexander, Alaska                                                                                                          
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
MARY MONTGOMERY, Director                                                                                                       
University Land Management Office                                                                                               
University of Alaska                                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Answered questions regarding HB 130.                                                                        
                                                                                                                                
TIM CIOSEK                                                                                                                      
Sitka, Alaska                                                                                                                   
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
ALBERT PAGH, Four Star Lumber Company                                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
DEBRA ROSE GIFFORD, Mayor                                                                                                       
Port Alexander, Alaska                                                                                                          
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
JULIE HURSEY                                                                                                                    
Petersburg, Alaska                                                                                                              
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
ERIC LEE, Commercial Fisherman                                                                                                  
Petersburg, Alaska                                                                                                              
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
JAMES BRENNAN                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition to HB 130.                                                                          
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR JAY  RAMRAS called the  House Resources  Standing Committee                                                             
meeting to order at 1:06:48  PM.  Representatives LeDoux, Elkins,                                                             
Kapsner, Ramras,  Samuels, Seaton, Olson, and  Gatto were present                                                               
at the  call to  order.  Representative  Crawford arrived  as the                                                               
meeting  was  in  progress.     Representative  Thomas  was  also                                                               
present.                                                                                                                        
                                                                                                                                
HB 130-UNIVERSITY LAND GRANT/STATE FOREST                                                                                     
                                                                                                                                
CHAIR RAMRAS announced that the only order of business would be                                                                 
HOUSE BILL  NO. 130, "An Act  granting certain state land  to the                                                               
University  of Alaska  and establishing  the university  research                                                               
forest; and providing for an effective date."                                                                                   
                                                                                                                                
KATHIE   WASSERMAN,  Policy   and  Program   Coordinator,  Alaska                                                               
Municipal League,  noted that the governor's  letter regarding HB
130 stated  that the  bill is a  product of more  than a  year of                                                               
discussions  between the  Department of  Natural Resources  (DNR)                                                               
and the  university; however, municipalities have  known about it                                                               
for  only one  week.   She said  she has  been contacted  by many                                                               
communities, and  it is  very difficult to  sift through  and see                                                               
how  HB 130  might affect  them because  of the  short timeframe.                                                               
She said that  the Alaska Municipal League is  concerned that the                                                               
public process has  been narrowed down.   Ms. Wasserman requested                                                               
that the state hold community workshops.                                                                                        
                                                                                                                                
REPRESENTATIVE  ELKINS asked  if  Ms.  Wasserman would  recommend                                                               
that  HB 130  go  to  the House  Community  and Regional  Affairs                                                               
Standing Committee.                                                                                                             
                                                                                                                                
MS.  WASSERMAN said  she thinks  there should  be more  community                                                               
input, and  that most of  the communities  are not even  sure how                                                               
this legislation will impact them.                                                                                              
                                                                                                                                
JUDITH  BRAKEL,  Gustavus,  said  the  public  process  has  been                                                               
extremely  narrowed  down.    She   said  she  can  see  why  the                                                               
proponents  want to  fast track  HB 130,  because with  more time                                                               
they will see that there are a  lot of places that people will be                                                               
angry  about.   There  will  be  special concerns  about  special                                                               
places,  she said,  and  Baranof  Warm Springs  is  one of  those                                                               
places.   It is not good  to spread development there,  she said,                                                               
and the  selected site is  near a special, precious  little tidal                                                               
lagoon, which has  a tidewater waterfall.  The bay  already has a                                                               
little  town site  with enough  property  there for  development.                                                               
She said that  the university needs money, but it  doesn't need a                                                               
bunch  of  little controversial  lands.    Ms. Brakel  recommends                                                               
providing  income  to the  university  by  revising the  economic                                                               
limit factor  or with an income  tax, but "don't give  away these                                                               
very special places."                                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON said that most  of the parcels in Southeast                                                               
Alaska are  in the  settlement category under  DNR, and  they are                                                               
slated to be sold for settlement uses  at some time.  He asked if                                                               
Ms. Brakel objects that they be sold at any time.                                                                               
                                                                                                                                
MS.  BRAKEL said  the parcel  at  Baranof Warm  Springs was  "for                                                               
dispersed  recreation, it  was not  for development  in the  land                                                               
planning categories."   She  noted that  the mental  health lands                                                               
were similar  in that they  were supposed  to make money,  but it                                                               
caused  much concern  in  Gustavus, and  the  community ended  up                                                               
raising money  to buy the  land.  She  said there is  no planning                                                               
for the HB 130  lands, and no one gets to weigh  in.  Some places                                                               
might be desirable to develop, she  said, "but we will never know                                                               
which are which under this kind of process."                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  asked   if  the   lands  classified   in                                                               
development  status are  of no  concern to  Ms. Brakel,  only the                                                               
Baranof Warm Springs land.                                                                                                      
                                                                                                                                
MS. BRAKEL  said she is not  familiar with the status  of all the                                                               
parcels, but  there's a  lot of  attachment to  "these far-flung"                                                               
places.                                                                                                                         
                                                                                                                                
1:16:53 PM                                                                                                                    
                                                                                                                                
PAUL  JOHNSON, Elfin  Cove, said  he is  disappointed by  HB 130.                                                               
"These lands  have a  lot of  history to them,"  he said,  and he                                                               
doesn't think  DNR or the university  "has any idea of  what they                                                               
are  getting here."   DNR  walked  through the  lands quickly  in                                                               
June, he  said, and  the land  may be  very different  at another                                                               
time of year.   Some may have "huge economic  ramifications."  He                                                               
added that many of the HB 130  lands are not yet under a borough,                                                               
forcing  a  future  borough  to   play  "second  fiddle"  in  its                                                               
selections.                                                                                                                     
                                                                                                                                
MR. JOHNSON  said the bill  definitely needs  to go to  the House                                                               
Community  and Regional  Affairs  Standing Committee.   He  noted                                                               
that other  land grant universities receive  downtown, urban real                                                               
estate.   He supports the university  but said that if  the state                                                               
takes away the region's "economic  opportunities," then "having a                                                               
university is not going to do us any good."                                                                                     
                                                                                                                                
CO-CHAIR RAMRAS  pointed out that  part of the  university's plan                                                               
"was not  just for your kids,  but it was your  grandchildren and                                                               
your great  grandchildren, and the way  that you get land  in the                                                               
middle of  a developed urban or  rural area is by  fulfilling the                                                               
mission  of  the land  grant,  and  communities grow  around  it.                                                               
That's the  Wal-Mart plan.  They  find a piece of  property in an                                                               
outlying area and then the community grows toward them."                                                                        
                                                                                                                                
MR. JOHNSON  said that  some areas have  mining, timber,  or oil.                                                               
"Our areas  [have] tourism."   Elfin Cove  is only 91  acres, and                                                               
the nearby  HB 130 parcel in  Idaho Inlet is 590  acres, he said.                                                               
Idaho Inlet is  the area of economic opportunity  for Elfin Cove,                                                               
he added,  "you take that away,  and the community does  not have                                                               
the opportunity."                                                                                                               
                                                                                                                                
1:19:53 PM                                                                                                                    
                                                                                                                                
BOB  JOHNSON, Kodiak,  said that  he believes  that most,  if not                                                               
all, of  the residents of Kodiak  are upset about the  land grant                                                               
of Narrow Cape.  "This  is Kodiak's playground, there's a working                                                               
cattle ranch  out there, the  beach is a tourist  attraction, and                                                               
any  suggestion that  we might  lose control  over that  piece of                                                               
property upsets us."   He expressed suspicion  that the president                                                               
of the  university is also on  the board of the  Alaska Aerospace                                                               
Development Corporation (AADC), and  that the president must know                                                               
the value  of that  property to  AADC and to  the military.   Mr.                                                               
Johnson said  that the university may  not intend to sell  to the                                                               
AADC or  the military,  but promises  are not  always kept.   "We                                                               
definitely oppose  this land grant  to the university even  if it                                                               
is not  their intent to  sell it  for profit," because  there may                                                               
come a time when the university needs that money.                                                                               
                                                                                                                                
1:22:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SAMUELS  asked if  the people of  Kodiak should  buy the                                                               
property.                                                                                                                       
                                                                                                                                
DR. JOHNSON said the community can't afford it.                                                                                 
                                                                                                                                
RON  RASMUSSEN,  Co-Owner,  Northland Wood  Products,  Fairbanks,                                                               
said his  company employs  30-50 people  year round,  operating a                                                               
sawmill  for the  last 40  years.   The company  relies on  state                                                               
timber sales  for all its  raw material,  and he said  he opposes                                                               
the  5,100-acre grant  to the  university research  forest.   The                                                               
Tanana State  Forest was developed  to provide a  constant timber                                                               
base for the  industry, he said, and the land  transfer will take                                                               
the  most prime  and most  accessible forest  out of  production.                                                               
"This block  of timber  may be studied  and researched  to death,                                                               
but  it most  likely won't  produce  another stick  of lumber  or                                                               
provide any  more real  jobs again."   He  said research  can co-                                                               
exist with  forest production, as  was done in the  Bonanza Creek                                                               
Experimental Forest.  Mr. Rasmussen proposed the following:                                                                     
                                                                                                                                
     Give  the  university   the  1,200-acre  Bonanza  Creek                                                                    
     Experimental   Forest   it   now  manages;   give   the                                                                    
     university the  10,000 acres  already set  aside within                                                                    
     the  Tanana  Valley  State   Forest  for  research  and                                                                    
     natural areas; and  since I don't see  any prime forest                                                                    
     acreage from  Southeast, I  suggest taking  the balance                                                                    
     from there.                                                                                                                
                                                                                                                                
1:25:14 PM                                                                                                                    
                                                                                                                                
CHARLIE  RAFT,  Kodiak,  said  he agrees  100  percent  with  Bob                                                               
Johnson, and added that he  has witnessed land acquisitions where                                                               
access  was  promised,  but  over  the  course  of  time  it  was                                                               
restricted.    He  said  he   didn't  hear  a  good  answer  when                                                               
Representative  LeDoux  asked the  university  why  it needed  to                                                               
actually purchase the land.                                                                                                     
                                                                                                                                
1:27:23 PM                                                                                                                    
                                                                                                                                
BRETT CARLSON,  Northern Alaska Tour Company,  Coldfoot, told the                                                               
committee that he operated tours  on the Dalton Highway, which he                                                               
said  is  a  critical  economic resource  for  transportation  to                                                               
Arctic oil fields and a  budding world-class tourism destination.                                                               
He said the  Dalton Highway is a success story  for land planning                                                               
because  of  the  public  processes,  which  have  included  many                                                               
agencies  and private  industry.    He said  it  is a  wilderness                                                               
highway  while  being  an  industrial  highway,  and  the  public                                                               
planning has  limited development  along the  highway to  keep it                                                               
clean and attractive.  He  said people in Coldfoot were surprised                                                               
to hear of HB 130, which proposes  to turn all of the land in the                                                               
Coldfoot area  over to  settlement.   It may be  a good  idea, he                                                               
said, "but there  obviously are a lot of down  sides to that, and                                                               
clearly, I  think private landowners...should  be involved."   At                                                               
the Yukon River there are  many private landholders that would be                                                               
impacted, as  well as  villages, and  there should  be discussion                                                               
before the  bill leaves the  House Resources Committee,  he said.                                                               
Mr. Carlson  noted that there  is a third  parcel in HB  130 just                                                               
north of Happy  Valley, which he can't find  much information on.                                                               
He asked the  committee to view the Dalton Highway  as a resource                                                               
for  our grandchildren.    "Slow  the process  down  and get  the                                                               
information out," he concluded.                                                                                                 
                                                                                                                                
1:31:28 PM                                                                                                                    
                                                                                                                                
JOAN MCBEEN, Tenakee Springs, reported  that from where she is in                                                               
Tenakee Spring's  public library she  sees four clear cuts.   She                                                               
said she  has concerns about  transfers of large acreages  to the                                                               
university,  which  she said  is  not  consistent with  Tenakee's                                                               
community plan.  She said she  was a planning commissioner for 20                                                               
years, and  the community  plan says  that Tenakee  residents put                                                               
value on  their lifestyle,  and they do  not like  sudden changes                                                               
but prefer incremental growth, which  is in accord with community                                                               
values.   Another objective of  the community plan, she  said, is                                                               
to avoid property speculation and a  land rush.  She added that a                                                               
subdivision  would  drop  land prices  dramatically.    She  also                                                               
expressed  her  concern  with  how  HB  130  conflicts  with  the                                                               
Northern Southeast  Area Plan of  October 2002.  DNR  worked with                                                               
Tenakee  on it,  and citizens  were  satisfied with  some of  the                                                               
decisions.  She said  that one parcel that is part  of HB 130 has                                                               
the following  management intent: "the  parcel is to  be retained                                                               
by the state and managed  to accommodate the current recreational                                                               
uses...further  development  of  this parcel  is  not  considered                                                               
appropriate."  She  said another parcel in HB 130  also was to be                                                               
retained  by the  state,  as written  in DNR's  area  plan.   Ms.                                                               
McBeen asked the committee how  it can be appropriate to transfer                                                               
such lands, and she also noted  that citizens were not given much                                                               
time and she would like more public participation.                                                                              
                                                                                                                                
1:36:13 PM                                                                                                                    
                                                                                                                                
DENNIS WATSON,  Mayor, Craig,  said he has  been involved  in the                                                               
selection  of state  lands, and  he is  not opposed  to conveying                                                               
state lands  to the university trust,  but he has issues  with HB
130 as written.  He said  his complaint "about the public process                                                               
is the  absolute lack of  process" of  this bill, which  has been                                                               
"kicking around for  a year, and this is the  first we know about                                                               
it.   I hate  reacting in the  last minute," he  said.   He added                                                               
that  it  is particularly  troublesome  because  DNR hadn't  done                                                               
their  homework in  a  previous land  selection  project, and  it                                                               
created an unnecessary fight.                                                                                                   
                                                                                                                                
MR.  WATSON   said  the  land   transfers  will   severely  limit                                                               
entitlement land  for a  future Prince  of Wales  Island Borough.                                                               
Such properties  will be  important for  municipal income  and to                                                               
build  infrastructure to  provide  borough  services required  by                                                               
law,  he stated.   Another  negative  aspect is  that any  timber                                                               
harvested by  the university  would not be  sent to  local mills.                                                               
DNR worked  with Craig  on a recent  land selection  process, and                                                               
the conveyance to  the university was not on the  table, he said,                                                               
and the  community would have  made selections  much differently.                                                               
He  quoted DNR's  Bob Loeffler  who said,  "These are  really our                                                               
most  valuable lands."    "We  agree," said  Mr.  Watson, and  he                                                               
requests the  committee withdraw any  lands in the bill  that are                                                               
within the  model borough boundary,  or at  least hold on  to the                                                               
bill until things can be worked out.                                                                                            
                                                                                                                                
1:40:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS  said he heard  that the process was  rushed, but                                                               
"that's precisely what  we are doing here is  listening to folks'                                                               
concerns.   We are taking our  time; we are opening  up to plenty                                                               
of testimony.  When others  criticize how quickly we're moving on                                                               
this, what  exactly do  you mean because  we're the  committee of                                                               
first  referral and  then it  goes  through house  finance...what                                                               
makes you think this is moving at a breakneck speed?"                                                                           
                                                                                                                                
1:41:03 PM                                                                                                                    
                                                                                                                                
MR. WATSON said  he was concerned because  information about this                                                               
land transfer was kept secret.                                                                                                  
                                                                                                                                
CO-CHAIR  RAMRAS  asked  Joe  Beedle to  "dispel  some  of  these                                                               
concerns   that  we're   hearing   that  suggest   a  degree   of                                                               
recklessness or uncertainty as to how we're doing things."                                                                      
                                                                                                                                
1:41:38 PM                                                                                                                    
                                                                                                                                
JOE BEEDLE,  Vice President for Finance,  Chief Financial Officer                                                               
and Treasurer  Trustee, Land Grant Endowment  Fund, University of                                                               
Alaska, Fairbanks,  responded that there  is a section  of Alaska                                                               
statutes AS 14.40.170,  items 7 and 8, that refers  to the duties                                                               
and powers of the Board of  Regents and the University of Alaska,                                                               
and  it says  to adopt  reasonable  rules for  the prudent  trust                                                               
management and the long term  financial benefit to the University                                                               
of Alaska  of the land of  the university, and to  provide public                                                               
notice of  sales, leases, exchanges  and transfers of land.   Mr.                                                               
Beedle  suggested  looking  at  the  university's  website  which                                                               
discusses  a policy  numbered: PO5.11.04,  which  provides for  a                                                               
very specific process  of public input and final  approval by the                                                               
Board of Regents.                                                                                                               
                                                                                                                                
MR.  BEEDLE  said normally  the  university  would go  through  a                                                               
strategic   process  which   includes  an   annual  plan   and  a                                                               
development  plan if  the  university is  going  to subdivide  or                                                               
develop the property  before selling.  He said there  is one very                                                               
important  exception  when  the university  gets  an  unsolicited                                                               
offer for high  public demand property: the university  can do an                                                               
accelerated sale.   He said that  DNR cannot be as  responsive as                                                               
the university.                                                                                                                 
                                                                                                                                
MR.  BEEDLE stated  the university  has the  desire to  work with                                                               
people with  valid and  existing rights.   He  said that  DNR has                                                               
nominated  these parcels  of land,  and the  university does  not                                                               
have a specific idea of what to  do with them.  As it decides, it                                                               
will be engaged with the  community with a public notice process.                                                               
The university is  not going to operate with a  sense of urgency;                                                               
we are  very deliberate,  he said.   People  will have  plenty of                                                               
opportunity to  engage, and if  there are valid  existing rights,                                                               
the university  would have to  adhere to  all of those,  he said.                                                               
If the land  is not in an organized borough,  the university will                                                               
look to DNR for development approvals.   He said that it would be                                                               
wrong to  say the university  is anxious  to sell or  develop; it                                                               
might be 50  or 100 years before the university  finds that there                                                               
is a  high enough demand for  some parcels.  The  university will                                                               
be  going  through  a  slow   process,  but  he  added  that  the                                                               
university can act fast as well.                                                                                                
                                                                                                                                
1:48:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS asked  Mr. Beedle  to explain  how parcels  were                                                               
selected for HB 130.                                                                                                            
                                                                                                                                
MR.  BEEDLE said  some ideas  like  the Tanana  Forest came  from                                                               
legislators and  university officials during deliberations  of SB
7 in 2000, where there was much input.                                                                                          
                                                                                                                                
1:50:25 PM                                                                                                                    
                                                                                                                                
MR. BEEDLE said  that most properties came about  through the DNR                                                               
area planning  process, whereby  DNR investigated  potential uses                                                               
for  state land.   The  state  inventoried all  of its  Southeast                                                               
timber land, and  excluded that land from the  university for the                                                               
benefit  of  local value-added  industries.    He said  that  DNR                                                               
eliminated  critical habitat  and any  lands that  were in  DNR's                                                               
five-year sales  plan.   He said  the area  plans were  a "public                                                               
zoning  process."     What  was  left  for   the  university  was                                                               
development, settlement, or recreation lands.   HB 130 lands were                                                               
nominated from those lands.                                                                                                     
                                                                                                                                
1:53:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  said  that  it  appears  there  was  much                                                               
discussion between the governor's  office, DNR and the university                                                               
as to what lands would be on HB 130.                                                                                            
                                                                                                                                
MR. BEEDLE  said that the  university's discussions date  back to                                                               
the Knowles Administration in 2000.   In the last five months the                                                               
University  and DNR  have looked  at  lands "in  a serious  way."                                                               
"We've  asked  for  some lands  specifically  on  steep  mountain                                                               
slopes located in the Brad[field]  Canal as an example...and some                                                               
properties  in the  Skagway area  that we  didn't think  we could                                                               
ever develop.   So there was some fleshing out  of the nomination                                                               
list  that was  provided by  DNR, and  in fact  this has  been an                                                               
ongoing effort."                                                                                                                
                                                                                                                                
REPRESENTATIVE LEDOUX  said that President Hamilton  spoke to the                                                               
Kodiak Island Borough  Assembly, and he said he had  no idea that                                                               
the university  was going  to get the  rocket launch  property on                                                               
Kodiak.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  ELKINS  asked  Mr.   Beedle  if  he  thought  the                                                               
university would be interested in  a covenant that the university                                                               
would have to do value-added for  any timber harvesting.  He also                                                               
asked  if there  could be  a  requirement that  the watershed  of                                                               
Neets Bay be protected.                                                                                                         
                                                                                                                                
1:56:50 PM                                                                                                                    
                                                                                                                                
MR. BEEDLE  said that  as to  value-added: "We  anticipate adding                                                               
value to any and all  property that gets transferred."  Regarding                                                               
timber, he  said the  lands were not  nominated for  their timber                                                               
value,  but   there  could  be   secondary  value   from  timber.                                                               
Currently  the  university  doesn't have  a  primary  manufacture                                                               
requirement, but  "that's not  to say  the university  won't work                                                               
with local  value-added mills."   For  Neets Bay,  the university                                                               
would  be taking  that  property subject  to  the valid  existing                                                               
rights.  He said he believes  the reason the property is of value                                                               
is  because  of  the  hatchery, and  the  university  would  only                                                               
contemplate  uses  that  would  be  compatible,  preserving  that                                                               
highest and best use.  He  added that "even one piece of property                                                               
falling off  of the list is  a concern to  us.  We would  be very                                                               
motivated to try to provide assurances  in a transfer deed and in                                                               
covenants."                                                                                                                     
                                                                                                                                
1:59:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ELKINS asked "if you  were to receive forest lands                                                               
within the  Tongass with  a covenant on  it that  required value-                                                               
added so  the mills in  that area wouldn't be  jeopardized, would                                                               
you be interested?"                                                                                                             
                                                                                                                                
MR. BEEDLE said the university had  offered "to the state that we                                                               
would  be  pleased to  accept  land  within their  defined  state                                                               
forest, and  that we would  be happy to accommodate  the rotation                                                               
of the timber such that that  timber was allocated to - dedicated                                                               
for - the local value-added mills.   If for some reason this bill                                                               
got changed, and parcels of  those lands currently not included--                                                               
that you  just defined--we  would not  object to  the requirement                                                               
that those have value-added local manufacture stipulations."                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS  asked  if  this   land  selection  process  was                                                               
collaborative between  the university, DNR, Alaska  Department of                                                               
Fish & Game, and some others.                                                                                                   
                                                                                                                                
MR. BEEDLE  responded that that is  true for the area  plans, but                                                               
not the university selections.                                                                                                  
                                                                                                                                
2:02:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS asked "Did you also  say some of these lands or a                                                               
percentage...were going  to be sold  by DNR sometime in  the next                                                               
five years, that that was part of their area plan."                                                                             
                                                                                                                                
MR.  BEEDLE  said that  DNR  has  a  different process  than  the                                                               
university for selling lands, but "that is absolutely correct."                                                                 
                                                                                                                                
CO-CHAIR RAMRAS asked, "and that  applied to some of these lands,                                                               
not  all  of  the  lands,  that are  before  us  today,  is  that                                                               
correct?"                                                                                                                       
                                                                                                                                
MR.  BEEDLE  responded that  most  of  the Southeast  lands  were                                                               
included in the area plans.                                                                                                     
                                                                                                                                
2:03:34 PM                                                                                                                    
                                                                                                                                
DANIEL TRAIL,  Wrangell, said he  and the  homeowners association                                                               
from Thom's  Place are  "all pretty dismayed."   He  added, "This                                                               
land giveaway really takes away our capacity for self-                                                                          
determination  as  a community  out  there.    The size  of  this                                                               
parcel, which is  2,360 acres, dwarfs our small  community and it                                                               
is  right adjacent  to  it."   He said  the  residents fear  that                                                               
"clear  cutting  is on  the  way,"  which would  be  unacceptable                                                               
because   people  live   there  for   the  beautiful,   pristine,                                                               
wilderness setting.   He  added "we honor  the mechanism  to fund                                                               
the university,"  but "for  us to  give up  such a  large parcel,                                                               
hardly seems fair."                                                                                                             
                                                                                                                                
2:05:57 PM                                                                                                                    
                                                                                                                                
WALTER  NORTHRUP, Commercial  Fisherman, Ketchikan,  said he  has                                                               
been   commercial  fishing   since  1948,   and  he   watched  it                                                               
deteriorate  and then  become revitalized  by Southern  Southeast                                                               
Regional Aquaculture Association (SSRAA).   He is very opposed to                                                               
the granting  of land  in the  Neets Bay  area because  SSRAA has                                                               
spent much  money and effort  in establishing its  fish hatchery,                                                               
and has  "revitalized the fishing in  this area."  He  added that                                                               
any income  derived from  Neets Bay tourism  should go  to SSRAA,                                                               
and "above  all, don't log their  watershed."  He warned  that if                                                               
the  university gets  the land  and then  sells it,  there is  no                                                               
guarantee it  won't be logged.   Mr.  Northrup said that  this is                                                               
the first  chance he  has had to  look at this,  and he  told the                                                               
committee to get maps of the HB  130 areas out to the public.  He                                                               
thinks there  will be a "very  incensed public."  Looking  at the                                                               
map of Coffman Cove, he said,  it looks like the university takes                                                               
the whole town.   "I think you might have  a tremendous uproar if                                                               
you don't  go very careful on  this and let people  know what you                                                               
are talking about."                                                                                                             
                                                                                                                                
2:08:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS said that DNR's web page does have all the maps.                                                                
                                                                                                                                
MR. NORTHRUP said he, like  many others, doesn't have a computer.                                                               
"Put it in the papers," he added.                                                                                               
                                                                                                                                
REPRESENTATIVE GATTO asked if Mr.  Northrup said that there is no                                                               
guarantee that these lands wouldn't be logged.                                                                                  
                                                                                                                                
MR. NORTHRUP  answered that the  local paper said  the university                                                               
might sell some of these places.                                                                                                
                                                                                                                                
REPRESENTATIVE  GATTO   followed  by  asking  if   there  is  any                                                               
guarantee now that the lands won't be logged.                                                                                   
                                                                                                                                
MR. NORTHRUP said, "The university  didn't make any friends" when                                                               
it  logged Mountain  Point.   It advertised  it in  the Anchorage                                                               
newspaper,  "but nobody  out here  knew  it was  going to  happen                                                               
until it was on top of them."                                                                                                   
                                                                                                                                
2:10:37 PM                                                                                                                    
                                                                                                                                
NICK  STELTZENMULLER, Student,  University  of Alaska  Southeast,                                                               
Sitka, said  he cares about  the university, but he  is concerned                                                               
about  the  lands  in  the  Sitka  area,  specifically  Lisianski                                                               
peninsula, Middle  Island, and  Baranof Warm  Springs.   He said,                                                               
"they are  big enough deals" for  each one to have  a full public                                                               
hearing.   He said that  this kind of  land transfer should  be a                                                               
five-year process,  with DNR and  the university looking  at each                                                               
parcel individually and discussing  future development goals with                                                               
the  community and  with the  tribes.   He said  that Mr.  Beedle                                                               
testified that  the university does  not have a sense  of urgency                                                               
with   these  parcels.     He   told  Representative   Gatto  the                                                               
distinction between  land owned  by the state  and land  owned by                                                               
the university.   As a  citizen of Alaska,  he said, he  has more                                                               
influence in what happens on state lands...                                                                                     
                                                                                                                                
CO-CHAIR  RAMRAS interjected,  "thank you  very much  and we  are                                                               
very pleased to be taking your testimony--right now."                                                                           
                                                                                                                                
2:13:48 PM                                                                                                                    
                                                                                                                                
TARNICA GARNICK,  Port Alexander,  reported that there  were four                                                               
people in Port Alexander to testify.                                                                                            
                                                                                                                                
CO-CHAIR RAMRAS asked that only three people speak.                                                                             
                                                                                                                                
MARTY  REMUND,  Port Alexander,  said  that  he opposes  HB  130,                                                               
because it  is not a  proper way to  fund the university,  and in                                                               
the  process,  the governor  is  bypassing  local government  and                                                               
land-use  planning efforts.   HB  130 goes  directly against  the                                                               
Port  Alexander  comprehensive plan,  he  said.   He  added  that                                                               
residents favor  a stable population  and economy and that  it is                                                               
disrespectful  not  to  seek  community input.    The  267  acres                                                               
proposed for transfer is large compared  to the size of the town,                                                               
which has a total deeded acreage  of 128 acres, and it would have                                                               
tremendous impact,  he said.   Only 80  of the  community's acres                                                               
are privately  owned, and the rest  are held by the  city of Port                                                               
Alexander.   The  transfer  would devalue  the  private and  city                                                               
land,  and  Port Alexander's  water  supply  is not  adequate  to                                                               
service new lands,  he said.  He added that  the community worked                                                               
with the  state in developing  the Northern Southeast  Area Plan,                                                               
which states that "DNR should contact  the city prior to making a                                                               
decision   on  any   applications   involving  development"   and                                                               
"development is  not considered  appropriate during  the planning                                                               
period given the  uncertainty over the need  for additional lands                                                               
in this remote  fishing community and the ability of  the city of                                                               
Port Alexander to provide public services."                                                                                     
                                                                                                                                
2:16:59 PM                                                                                                                    
                                                                                                                                
JOHN LAWSON,  Port Alexander, said  that it looks like  the lands                                                               
being  transferred include  the town's  watershed, transit  line,                                                               
water supply, tank, and chlorinator  and filtration building.  By                                                               
putting people there  it "could be completely  detrimental to our                                                               
total  water  system."   He  added  that  HB  130 is  in  "direct                                                               
adversity to our  comprehensive plan, even our  cemetery would be                                                               
completely blocked off except from a water access."                                                                             
                                                                                                                                
ZACH LENNING,  Commercial Fisherman,  Port Alexander,  noted that                                                               
Mr.  Beedle said  that the  university wants  to move  slowly and                                                               
some of the  lands would not be developed for  many years, but at                                                               
the last teleconference  he heard that the  Southeast lands would                                                               
be used  for quick cash,  which does  not sound like  a long-term                                                               
plan.                                                                                                                           
                                                                                                                                
CO-CHAIR RAMRAS said  that he is responsible  for that confusion,                                                               
"the funds are  supposed to be for  the legacy of the  next 50 to                                                               
100  years,  but  the  university's  point of  view  was  a  land                                                               
disposal that should be 20-year plus period."                                                                                   
                                                                                                                                
MR. LENNING noted that "these  lands basically sandwich our town.                                                               
It's a huge  amount of land compared  to what we have."   He said                                                               
the land is where locals go hunting.   "If I leave my house to go                                                               
hunting, I  have to  go across  those lands unless  I want  to go                                                               
way, way  out of [my] way."   He added that  it "would completely                                                               
change"  almost everyone's  subsistence  activities, "and  that's                                                               
how we mainly live out here."                                                                                                   
                                                                                                                                
2:19:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON expressed  concern of  the land  transfers                                                               
boxing in the  city, and he doesn't see access  routes and trails                                                               
on the  map.  He asked  Mr. Lenning if there  are specific trails                                                               
that are used.                                                                                                                  
                                                                                                                                
MR. LENNING  said that  whole area is  the city's  watershed, and                                                               
there are  no marked trails.   He  said residents use  the entire                                                               
area.                                                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON  asked him to send  the committee notations                                                               
on where the water structures are.                                                                                              
                                                                                                                                
2:21:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS  asked the  university to  reiterate how  a land-                                                               
sale process will work in a small community like Port Alexander.                                                                
                                                                                                                                
MARY  MONTGOMERY, Director,  University  Land Management  Office,                                                               
University  of Alaska,  Fairbanks,  said that  if the  university                                                               
planned  to  develop  the  property  it  would  go  talk  to  the                                                               
community.   She said that  "periodically it's just  not feasible                                                               
and the  timing's not right for  development."  She said  that if                                                               
there  are  trails and  access  issues,  "we're very  careful  to                                                               
always  provide  access  to adjacent  properties--we  get  people                                                               
through our  property and out the  other side."  She  said she is                                                               
not  aware of  the  water system,  and  "it is  not  the type  of                                                               
property  that  we  would  have  wanted  to  have  in  this  land                                                               
selection list."   She  said the university  and DNR  should look                                                               
into that.                                                                                                                      
                                                                                                                                
CO-CHAIR RAMRAS  asked that "when  it comes to a  small community                                                               
like  Port  Alexander, will  there  actually  be someone  on  the                                                               
ground who  meets with the community  leaders...to discuss things                                                               
like  a watershed  and  some  of their  other  concerns prior  to                                                               
dispersal of property?"                                                                                                         
                                                                                                                                
MS.  MONTGOMERY said,  "Absolutely.   We would  always go  on the                                                               
ground  and  meet  with  the community  and  hear  the  community                                                               
concerns.  We generally spend  eight or twelve hours listening to                                                               
the   community    concerns,   and   try   to    mitigate   those                                                               
concerns...trying to  develop a project  that is  compatible with                                                               
the community."                                                                                                                 
                                                                                                                                
2:24:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS  said it  is his intuition  that people  in rural                                                               
communities think there  is more of a public process  in the more                                                               
urban areas.  He asked Ms.  Montgomery to explain how the process                                                               
might be different in a small  community like Port Alexander.  He                                                               
first asked how many people live in Port Alexander.                                                                             
                                                                                                                                
MR. LENNING  said there are  69 residents,  and he added  that if                                                               
someone looked at the land they  would have a "quick sense of our                                                               
concerns."                                                                                                                      
                                                                                                                                
MS. MONTGOMERY  explained that the  process begins with  a 60-day                                                               
notice  from the  university, then  a meeting  is scheduled  with                                                               
community  leaders, and  the university  tries to  have an  open-                                                               
house workshop  for locals, bringing  an engineer or  surveyor to                                                               
help  design  projects.   The  university  listens to  issues  of                                                               
utilities and access and tries to  determine if there is a market                                                               
for the  lots.  The  university representatives go back  and work                                                               
on a design,  and they would probably return to  the community to                                                               
get more  feedback, she  said, and once  the university  has gone                                                               
through  the  community process,  it  goes  through the  platting                                                               
authority process  with public  notice.  At  that time  the state                                                               
will ensure access is available  to adjacent property owners, and                                                               
that  streams  are  protected.     Responding  to  Representative                                                               
Ramras,  she said  that  usually  at least  two  people from  the                                                               
university and a consultant go to the initial meeting.                                                                          
                                                                                                                                
REPRESENTATIVE  LEDOUX  said  that  the process  of  coming  into                                                               
communities is  similar to  what is in  university policy,  but a                                                               
similar section  of the  old bill  was repealed by  HB 130.   "In                                                               
light of  the university  intention to...elicit  public comments,                                                               
what is the purpose of  repealing AS 14.40.366 which provides for                                                               
that public comment period?" she asked.                                                                                         
                                                                                                                                
MR. BEEDLE  responded that  the entire  section is  not repealed,                                                               
and  there  are  several  sections  in old  SB  7  that  are  not                                                               
appropriate  because mineral  properties were  not selected.   He                                                               
added that the "university policy  already exists to provide that                                                               
protection,"  but that  the university  wants  to be  able to  be                                                               
responsive to  the market and  not slowed down by  public process                                                               
when "an opportunity" is available.                                                                                             
                                                                                                                                
REPRESENTATIVE   SEATON  read   AS  14.40.366   which  says   the                                                               
university  "shall"  provide  public notice,  whereas  university                                                               
policy  states that  they are  to provide  notice "to  the extent                                                               
practicable."  He  said there is a huge difference.   He restated                                                               
that his  chief concern  is about  access, and  university policy                                                               
number 6, says that "access  through university property, subject                                                               
to  the  receipt  of  acceptable  tort....  the  university  will                                                               
recognize  or provide  alternate access  for R.S.  2477 right-of-                                                               
ways and  existing state-identified  historic trails  which cross                                                               
[university] property."   He  noted that  the policy  states that                                                               
the university will "provide additional  easements at fair market                                                               
value."  Representative Seaton asked  if access is only provided,                                                               
even on  right-of-ways, if the  university is given  immunity and                                                               
fair market value.                                                                                                              
                                                                                                                                
MS.  MONTGOMERY said  that policy  deals with  people who  want a                                                               
specific easement  for private access through  land already owned                                                               
by the university.  "For access  through the property if they are                                                               
undeveloped,  that  means  just  the public  casually  using  the                                                               
property to  go through our  property to  get to the  Tongass and                                                               
recreate or  go on this  property to pick blueberries  - whatever                                                               
it is - it's  covered in this bill that the  public can do that,"                                                               
she  said.   She  added that  the public  does  that on  existing                                                               
university  lands.   She  said  that  there  is a  public  notice                                                               
requirement in AS 14.40.170.   "We can't get around public notice                                                               
even if it weren't practicable," she added.                                                                                     
                                                                                                                                
2:34:05 PM                                                                                                                    
                                                                                                                                
TIM CIOSEK, Sitka,  is a property owner in  Baranof Warm Springs,                                                               
which, he said,  is not officially a city, but  it is a community                                                               
of people.   He said  he has  concerns that that  community might                                                               
not  be  heard.    He  said  he is  opposed  to  HB  130  and  is                                                               
particularly disappointed  in the  proposed transfer of  lands in                                                               
Lisianski  peninsula, Baranof  Warm Springs,  Port Alexander  and                                                               
Middle Island.   He said the Baranof Warm  Springs land transfers                                                               
compromise the  salt chuck and watershed.   He said the  land has                                                               
more and  better recreational, biological, and  historical value.                                                               
He  responded to  the question  of why  people feel  the bill  is                                                               
moving too  fast.  He  said several  things have been  sliding by                                                               
the  community  of  Sitka,  and  there  is  not  enough  time  to                                                               
adequately apprise people.                                                                                                      
                                                                                                                                
CO-CHAIR RAMRAS  asked if Baranof  Warm Springs is  beautiful and                                                               
if other people would enjoying owning private property there.                                                                   
                                                                                                                                
MR. CIOSEK responded in the affirmative.                                                                                        
                                                                                                                                
2:38:35 PM                                                                                                                    
                                                                                                                                
ALBERT  PAGH,  Four  Star  Lumber   Company,  Fairbanks,  read  a                                                               
prepared  statement.   He  said  Governor  Murkowski promised  to                                                               
encourage resource development,  but HB 130 does  the opposite by                                                               
tying  up logging  land.   He said  that when  the United  States                                                               
Forest  Service (USFS)  managed  the  Bonanza Creek  Experimental                                                               
Forest, it was  managed as a productive forest, and  they had the                                                               
Alaska  forestry division  conduct timber  sales using  different                                                               
methods of  cutting and  reforestation.  When  the USFS  left, it                                                               
was turned  over to the  university, which ended all  logging, he                                                               
said.   After a heavy infestation  of insects, Mr. Pagh  said the                                                               
university decided to  leave the trees to see what  happened.  He                                                               
said if the  university had looked at what happened  on the Kenai                                                               
Peninsula, it would have known  the bugs would denude the forest.                                                               
In  1982,  he said,  a  group  of  loggers and  firewood  cutters                                                               
lobbied to get a state forest  established.  If there hadn't been                                                               
a viable  timber industry, the  timber from the Rosie  Creek fire                                                               
would have been  wasted, he noted.  He added,  "There are 254,000                                                               
acres in the Chena Hot  Springs Recreation Area if the university                                                               
just wants to  watch trees grow; there's a lot  of good timber in                                                               
that area for them to watch."   He said that given the history of                                                               
the university,  he did  not think  there would  be a  program to                                                               
encourage logging.                                                                                                              
                                                                                                                                
2:43:02 PM                                                                                                                    
                                                                                                                                
DEBRA ROSE GIFFORD, Mayor, Port  Alexander, noted that the Alaska                                                               
State Constitution  states that  no land  disposal shall  be made                                                               
without prior  public notice.  She  said that the public  has not                                                               
had time to fully respond, and  that HB 130 lands will impact the                                                               
community's watershed  and vital hunting  and hiking areas.   She                                                               
added that a parcel to the  west of Port Alexander was designated                                                               
as  general  use   in  the  Northern  Southeast   Area  Plan  and                                                               
encompasses the  town's water supply.   She said that  DNR's plan                                                               
states that  that watershed "will  remain as state lands."   "Our                                                               
point is that the parcels in  Port Alexander should not have been                                                               
selected," she concluded.                                                                                                       
                                                                                                                                
REPRESENTATIVE  SEATON asked  if  there was  a  problem with  the                                                               
parcel on the other side.                                                                                                       
                                                                                                                                
2:46:10 PM                                                                                                                    
                                                                                                                                
MS. GIFFORD replied  that the parcel to the east  is used heavily                                                               
for  subsistence  hunting,  which  is  the  community's  mainstay                                                               
because the  town is so  remote.   She noted that  Port Alexander                                                               
and DNR  already went through  a process to identify  those lands                                                               
as such.                                                                                                                        
                                                                                                                                
2:46:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS said that the  university will come in with three                                                               
people, and he asked Ms. Gifford to describe what would follow.                                                                 
                                                                                                                                
MS.  GIFFORD answered  that she  hoped they  would not  be coming                                                               
because the  parcels should  not have been  considered.   But she                                                               
said, "When  people come to our  community, like that, I,  as the                                                               
mayor, will meet  them.  I will notify the  community and open up                                                               
the  community hall;  start up  the oil  stove," and  then people                                                               
will come and ask questions.                                                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS  asked  how  many people  would  attend  such  a                                                               
meeting.                                                                                                                        
                                                                                                                                
MS. GIFFORD said  about 15-20 people, with some  staying for part                                                               
of the meeting and others staying the entire time.                                                                              
                                                                                                                                
2:49:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS  said he is "trying  to get a handle  on how this                                                               
land selection process would work."   He told Ms. Montgomery that                                                               
the communities feel threatened and  asked her to "interact" with                                                               
the mayor.                                                                                                                      
                                                                                                                                
MS. MONTGOMERY said her team would  come and work with people one                                                               
on one,  bringing maps and  aerial photos.   She often  sends out                                                               
materials in  advance.  The  team would  talk about what  type of                                                               
development  opportunities would  be available.   She  noted that                                                               
her  job is  to make  money for  the university.   She  said they                                                               
would discuss how large to  make the subdivision lots, what types                                                               
of covenants the community would  want, whether the university or                                                               
the community would construct the roads.                                                                                        
                                                                                                                                
MS. GIFFORD said her community could not afford to build roads.                                                                 
                                                                                                                                
MS. MONTGOMERY said  that in Coffman Cove people  wanted to build                                                               
roads, and she wasn't suggesting  that the community provide free                                                               
roads.   She added that some  communities do not want  roads, and                                                               
those are the things they "will evaluate."                                                                                      
                                                                                                                                
MS. GIFFORD  noted that Port  Alexander just has  boardwalks, and                                                               
the community has several private  lots that people are trying to                                                               
sell right  now.  To open  up more land for  settlement would put                                                               
those lots in competition, and it  seems silly, she said, to open                                                               
up lots when current ones are available.                                                                                        
                                                                                                                                
CO-CHAIR RAMRAS  asked what  happens in  a small  fragile economy                                                               
with lots already for sale.                                                                                                     
                                                                                                                                
MS.  MONTGOMERY responded  that  if they  have  lots that  aren't                                                               
selling, the  university will  not be there  because there  is no                                                               
market.   She said  the university  won't come  in and  depress a                                                               
market, and  it sounds  like a place  where the  university would                                                               
just  wait and  watch  the market.   She  added  that they  often                                                               
respond  to communities  that request  they come  in and  develop                                                               
their land.                                                                                                                     
                                                                                                                                
2:56:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  RAMRAS asked  if the  mayor will  see someone  from the                                                               
university within  90 days of passage  of this bill, or  will she                                                               
not see the university until a plan is developed.                                                                               
                                                                                                                                
MS.  MONTGOMERY said  her  team  won't go  there  until there  is                                                               
potential,  and  often  the  community gets  in  touch  with  the                                                               
university when  they have a  need or concern with  the property.                                                               
The university  has no specific  plan to do  a tour of  all these                                                               
properties, but it will come at the request of the community.                                                                   
                                                                                                                                
2:58:00 PM                                                                                                                    
                                                                                                                                
MS.  GIFFORD  suggested  the  university come  and  look  at  the                                                               
parcels, because she predicts that it would not be interested.                                                                  
                                                                                                                                
JULIE HURSEY, Petersburg,  Alaska, said she is opposed  to HB 130                                                               
because the  university will try  to maximize profits  by selling                                                               
it to  private entities in large  chunks.  "They can't  afford to                                                               
hang on  to this land  forever, and  selling it off  piecemeal is                                                               
going to be  a land management headache for  the university," she                                                               
said.  The university may say  that they can offer covenants, she                                                               
said, but  if the land ends  up in private hands,  residents will                                                               
not have  any control.   She added that  Joe Beedle said  that if                                                               
these lots were  sold it would realize about $5  million per year                                                               
for the  university, and this is  just one percent of  its annual                                                               
budget.  The large uproar is not  worth it, and she said the land                                                               
grant idea was  good in the 1800s  but not now.   She stated that                                                               
public process is painful, messy,  and expensive but that is "why                                                               
we live in this  country, and that's what we have  to be proud of                                                               
as a nation."                                                                                                                   
                                                                                                                                
ERIC  LEE, Commercial  Fisherman,  Petersburg, said  that at  the                                                               
meeting  held  in  Petersburg  last   week,  DNR  and  university                                                               
representatives  said HB  130  was being  fast  tracked, and  the                                                               
governor wanted it as soon as  possible, and then they went on to                                                               
say that  it would be  many years until any  money comes in.   He                                                               
said he  asked what the  rush was, and  the only answer  was that                                                               
the governor  wanted it  passed this session,  which he  said was                                                               
really no  answer at all.   A huge  land transfer bill  should be                                                               
the product of a thorough public  process, he said.  DNR told Mr.                                                               
Lee that someone  would get back to him to  explain the big rush,                                                               
but no one did.   Mr. Lee concluded that there  is a rush because                                                               
the bill authors know it will not survive the public process.                                                                   
                                                                                                                                
3:02:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS interjected that  part of the governor's strategy                                                               
is  that   "we're  also  applying   for  an   additional  250,000                                                               
acres...from the federal  government which is to try  to get land                                                               
back  in the  hands of  the state  and consequently  back in  the                                                               
hands of  the people, so  I don't want  you to ascribe  just pure                                                               
Machiavellian purposes to the governor."                                                                                        
                                                                                                                                
3:03:10 PM                                                                                                                    
                                                                                                                                
JAMES BRENNAN,  Anchorage, Alaska, said that  it is inappropriate                                                               
for the  legislature to  take this on  in a  three-month session,                                                               
and  he called  it  "micro-management" by  the  legislature.   He                                                               
added  that  the public's  concerns  are  not alleviated  by  Ms.                                                               
Montgomery's description of the  university's process for selling                                                               
land, because  once the  university has the  property, it  is too                                                               
late.  Baranof  Warm Springs has a  long-standing settlement with                                                               
many lots,  and he told  the committee  that if someone  wants to                                                               
buy property, there  is land available.  But the  lagoon and lake                                                               
are not appropriate  for development because they  are enjoyed by                                                               
many residents  and tourists as  a recreation site, and  he said,                                                               
"If you could  see this location, we could all  save our breath."                                                               
Mr. Brennan  disputed Mr. Beedle's  statement that the  area plan                                                               
was a zoning process to set the acceptable uses.                                                                                
                                                                                                                                
3:05:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS interjected because of time.                                                                                    
                                                                                                                                
[HB 130 was held over.]                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 3:06 p.m.                                                                 

Document Name Date/Time Subjects