01/31/2002 01:10 PM House TRA
| Audio | Topic |
|---|
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
January 31, 2002
1:10 p.m.
MEMBERS PRESENT
Representative Vic Kohring, Chair
Representative Beverly Masek, Vice Chair
Representative Scott Ogan
Representative Drew Scalzi
Representative Peggy Wilson
Representative Albert Kookesh
MEMBERS ABSENT
Representative Mary Kapsner
COMMITTEE CALENDAR
HOUSE BILL NO. 298
"An Act relating to legislative approval of certain land leases
by the Alaska Railroad Corporation."
- MOVED CSHB 298(TRA) OUT OF COMMITTEE
PREVIOUS ACTION
BILL: HB 298
SHORT TITLE:LEGISLATIVE APPROVAL OF RAILROAD LEASES
SPONSOR(S): REPRESENTATIVE(S)MURKOWSKI
Jrn-Date Jrn-Page Action
01/14/02 1952 (H) PREFILE RELEASED 1/4/02
01/14/02 1952 (H) READ THE FIRST TIME -
REFERRALS
01/14/02 1952 (H) TRA, L&C
01/31/02 (H) TRA AT 1:00 PM CAPITOL 17
WITNESS REGISTER
REPRESENTATIVE LISA MURKOWSKI
Alaska State Legislature
Capitol Building, Room 408
Juneau, Alaska 99801
POSITION STATEMENT: Sponsor of HB 298.
SCOTT JANKE
City of Seward
P.O. Box 167
Seward, Alaska 99664
POSITION STATEMENT: Testified on HB 298 on behalf of the City
of Seward.
WENDY LINDSKOOG, Director
External Affairs
Alaska Railroad Corporation (ARRC)
P.O. Box 107500
Anchorage, Alaska 99510-7500
POSITION STATEMENT: Testified on HB 298 on behalf of the ARRC.
JAMES KUBITZ, Vice President
Real Estate
Alaska Railroad Corporation
P.O. Box 107500
Anchorage, Alaska 99510-7500
POSITION STATEMENT: Testified on HB 298 on behalf of the ARRC.
ACTION NARRATIVE
TAPE 02-1, SIDE A
Number 0001
CHAIR VIC KOHRING called the House Transportation Standing
Committee meeting to order at 1:10 p.m. Committee members
present at the call to order were Representatives Ogan, Wilson,
Masek, and Kohring. Representatives Scalzi and Kookesh joined
the meeting as it was in progress.
HB 298-LEGISLATIVE APPROVAL OF RAILROAD LEASES
CHAIR KOHRING announced that the matter before the committee was
HOUSE BILL NO. 298, "An Act relating to legislative approval of
certain land leases by the Alaska Railroad Corporation."
Number 0058
REPRESENTATIVE LISA MURKOWSKI, Alaska State Legislature, sponsor
of HB 298, said HB 298 is a simple piece of legislation, and
that she believes it to be relatively non-controversial. She
said HB 298 extends the lease period from 35 to 55 years for
those leases within a terminal reserve located at Anchorage,
Fairbanks, Seward, or Healy. She said the reason for these
areas' selection was "this is were you have the commercial
development." Representative Murkowski also said the reason for
the request to change the lease term to a longer period was to
allow for appropriate financing.
REPRESENTATIVE MURKOWSKI gave the example of Ship Creek as an
area that has been looked at for development. She told the
committee that developers have hesitation when they see that
"after 35 years, this property might revert back to the
railroad," and they shy away from pursuing projects there. In
order to combat this, HB 298 would extend leases from 35 to 55
years. The bill is supported by businesses in those areas as
well as the cities and assemblies.
Number 0280
CHAIR KOHRING requested a motion to adopt the proposed committee
substitute (CS) for HB 298, version 22-LS1192\C, Utermohle,
1/21/02, for discussion purposes.
[An unidentified member said, "So moved."]
CHAIR KOHRING asked if there was any objection and then
announced that Version C was adopted.
Number 0350
SCOTT JANKE, Manager, City of Seward, testified via
teleconference. He said the City of Seward supports the 55-year
lease period, and that the city council passed a resolution
supporting it in late November. He said the bill will help
large development projects take place, and give developers time
to amortize large capital costs. He restated Seward's support
of the bill.
Number 0419
CHAIR KOHRING asked Wendy Lindskoog if there were any potential
investors approaching the Alaska Railroad Corporation (ARRC).
WENDY LINDSKOOG, Director, External Affairs, Alaska Railroad
Corporation (ARRC), testified before the committee. In response
to Chair Kohring's question, she gave the example of the
Government Hill area. She said that there was a senior housing
development looking at the "rail land" for lease, and the
prospective developers would like to get U.S. Department of
Housing and Urban Development (HUD) financing, but HUD requires
a 50-year lease.
Number 0480
JAMES KUBITZ, Vice President, Real Estate, Alaska Railroad
Corporation (ARRC), testified via teleconference. He said that
he did not have "people ready to sign the minute this is
passed," but he said there were three or four people who were
curious about "how this turns out." He said that a common
problem developers have come to him with is that they cannot get
financing for a 35-year lease.
CHAIR KOHRING said that it sounds like a good bill and asked why
it hadn't come up sooner. He asked if, in the past, there was
not an interest in leasing the land beyond 35 years.
MS. LINDSKOOG said that it has come more to the ARRC's attention
in recent years. She gave the example of the "Tri-Valley
Subdivision" in Healy for which the legislature passed a bill
that allowed a couple to get a 30 year loan on land that had 20
years left on the lease. Ms. Lindskoog said that showed the
ARRC that it would not be a controversial issue. She said that
getting currently underdeveloped land developed would be one of
the benefits of the bill. She gave the example of Ship Creek.
Number 0589
CHAIR KOHRING asked if she expected a substantial revenue stream
from the leases.
MS. LINDSKOOG said, "Hope so." She pointed out that the ARRC is
required to charge fair market value by law. In a long-term
lease, the land is reappraised every five years, and the lease
rate is adjusted accordingly. She also pointed out that there
are "caps so you can't just skyrocket the price."
CHAIR KOHRING surmised that any lease agreements have to be
approved by the ARRC board of directors.
MS. LINDSKOOG confirmed Chair Kohring's statement, and added
that ARRC leases go through a full public process. She said if
the land is undeveloped, there is a 30-day public notice. She
said in the case of land that has been leased before, there is a
15 day notice.
Number 0659
REPRESENTATIVE OGAN made the observation that the only
difference between the original bill and the proposed CS,
appeared to be the title.
MS. LINDSKOOG said that the new title was more concise and
targeted towards the bill. She said that from the perspective
of the ARRC, "leasing bills" for railroad land have the
potential for many added amendments.
Number 0705
REPRESENTATIVE WILSON asked if it was a "swatch of land." She
asked Ms. Lindskoog to clarify a bit on the "origination" of the
actual land.
MS. LINDSKOOG said the ARRC has 36,000 acres of land. That was
the amount under federal ownership when the state purchased the
railroad. She said it was agreed at that point that the land
would stick with the railroad as a vehicle with which the
railroad could earn revenue. She said that revenue was to go
back into capital improvements every year. She said of the
36,000 acres, half is railroad corridor land - the right-of-way
where the track lies - and also the land for facilities such as
the yards. This half is not leased out. Ms. Lindskoog said the
other half is leasable, and there are large reserves of
contiguous land in Anchorage, Fairbanks, Healy, Seward, and
Curry.
CHAIR KOHRING asked Ms. Lindskoog if she knew of any opposition
to the legislation.
Number 0800
MS. LINDSKOOG answered that there was none, to her knowledge.
REPRESENTATIVE OGAN moved to report CSHB 298, version 22-
LS1192\C, Utermohle, 1/21/02, out of committee with individual
recommendations and no accompanying fiscal notes.
REPRESENTATIVE MASEK asked for unanimous consent. There being
no objections, CSHB 298(TRA) was moved out of the House
Transportation Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 1:20
p.m.
| Document Name | Date/Time | Subjects |
|---|