Legislature(2009 - 2010)BELTZ 211

03/31/2009 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS


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03:31:20 PM Start
03:32:09 PM SB165
03:55:55 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 165 AUTHORIZING TRANSFER OF RAILROAD LAND TELECONFERENCED
Moved SB 165 Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
    SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                  
                         March 31, 2009                                                                                         
                           3:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Donald Olson, Chair                                                                                                     
Senator Joe Thomas, Vice Chair                                                                                                  
Senator Hollis French                                                                                                           
Senator Albert Kookesh                                                                                                          
Senator Linda Menard                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 165                                                                                                             
"An Act authorizing the transfer of two parcels of land from the                                                                
Alaska Railroad Corporation to the Municipality of Anchorage;                                                                   
and providing for an effective date."                                                                                           
     MOVED SB 165 OUT OF COMMITTEE                                                                                              
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 165                                                                                                                  
SHORT TITLE: AUTHORIZING TRANSFER OF RAILROAD LAND                                                                              
SPONSOR(S): SENATOR(S) ELLIS                                                                                                    
                                                                                                                                
03/25/09       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/09       (S)       CRA                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JESSE CROSS-CALL, Staff                                                                                                         
to Senator Johnny Ellis                                                                                                         
Alaska State Legislature                                                                                                        
Juneau AK                                                                                                                       
POSITION STATEMENT: Presented SB 165.                                                                                         
                                                                                                                                
JAMES KUBITZ, Vice President of Real Estate                                                                                     
Alaska Railroad Corporation                                                                                                     
Anchorage AK                                                                                                                    
POSITION STATEMENT: Spoke in support of SB 165.                                                                               
                                                                                                                                
BOB FRENCH, Co-Vice President                                                                                                   
Government Hill Community Council                                                                                               
Anchorage AK                                                                                                                    
POSITION STATEMENT: Spoke in support of SB 165.                                                                               
                                                                                                                                
WENDY LINDSKOOG, Assistant Vice President                                                                                       
Corporate Affairs                                                                                                               
Alaska Railroad Corporation                                                                                                     
Anchorage AK                                                                                                                    
POSITION STATEMENT: Spoke in support of SB 165.                                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
3:31:20 PM                                                                                                                    
                                                                                                                                
CHAIR  DONALD  OLSON called  the  Senate  Community and  Regional                                                             
Affairs  Standing  Committee  meeting   to  order  at  3:31  p.m.                                                               
Senators Kookesh, Thomas,  Menard, and Olson were  present at the                                                               
call to order. Senator French arrived soon thereafter.                                                                          
                                                                                                                                
          SB 165-AUTHORIZING TRANSFER OF RAILROAD LAND                                                                      
                                                                                                                                
3:32:09 PM                                                                                                                    
CHAIR OLSON announced the consideration of SB 165.                                                                              
                                                                                                                                
JESSE CROSS-CALL,  Staff, to Senator  Johnny Ellis,  Alaska State                                                               
Legislature, said SB 165 is  a land swap between the municipality                                                               
of Anchorage  and the  Alaska Railroad  Corporation. The  bill is                                                               
the  culmination of  a lot  of  work with  the municipality,  the                                                               
railroad, the Anchorage School District,  and the Government Hill                                                               
Community Council, and  all parties support SB  165. He presented                                                               
a map of the parcels.                                                                                                           
                                                                                                                                
MR. CROSS-CALL said  there are two lots in  Government Hill owned                                                               
by the railroad  that will be transferred to  the municipality of                                                               
Anchorage. One  is a  little under two  acres on  Hollywood Drive                                                               
that is  appraised at  $480,000. That  area is  being redeveloped                                                               
into homes,  and if Anchorage owned  the lots they would  be sold                                                               
for residential  development. The  second parcel is  much smaller                                                               
and is  next to an elementary  school. If Anchorage owned  it, it                                                               
would be made into a safer entrance to the school.                                                                              
                                                                                                                                
3:35:14 PM                                                                                                                    
CHAIR OLSON asked the size of that parcel.                                                                                      
                                                                                                                                
MR. CROSS-CALL said it is 0.18 acres and worth $122,800.                                                                        
                                                                                                                                
SENATOR THOMAS asked where it is on the map.                                                                                    
                                                                                                                                
MR. CROSS-CALL  said it  is at the  top of the  map in  blue. The                                                               
purpose of the  transfer is described on page 2  of the bill. The                                                               
municipality of Anchorage will transfer  land that is across Ship                                                               
Creek  near  downtown Anchorage.  It  is  surrounded by  railroad                                                               
land,  and it  is  a  parking lot  run  by  the downtown  parking                                                               
authority.  Giving the  parcel  to the  railroad  will allow  the                                                               
railroad to  develop it.  It is appraised  at $645,000.  The land                                                               
being given to  the railroad is worth more.  The municipality has                                                               
said it doesn't expect future compensation for the difference.                                                                  
                                                                                                                                
3:37:41 PM                                                                                                                    
CHAIR  MENARD asked  if the  municipality is  transferring 20,150                                                               
square feet to the railroad.                                                                                                    
                                                                                                                                
MR. CROSS-CALL  said yes,  and he reiterated  the support  by all                                                               
the parties involved.                                                                                                           
                                                                                                                                
SENATOR KOOKESH asked why the legislature has to authorize this.                                                                
                                                                                                                                
MR. CROSS-CALL  said any transfer  of land from the  railroad has                                                               
to be approved by the legislature.                                                                                              
                                                                                                                                
CHAIR OLSON asked  if the parcels are owned fee  simple. He asked                                                               
about letters from land developers or the nearby Comfort Inn.                                                                   
                                                                                                                                
3:39:44 PM                                                                                                                    
MR.  CROSS-CALL  said it  is  fee  simple  land, and  his  office                                                               
doesn't have any letters. He doesn't know about the Comfort Inn.                                                                
                                                                                                                                
SENATOR THOMAS  said he has land  he would like to  swap with the                                                               
railroad. The bill could be amended to take care of it.                                                                         
                                                                                                                                
SENATOR MENARD asked  why the railroad wants this land  and if it                                                               
is the piece they have wanted for the ferry or for parking.                                                                     
                                                                                                                                
MR. CROSS-CALL said  he thinks the railroad was  just looking for                                                               
land of an equal value.                                                                                                         
                                                                                                                                
3:41:13 PM                                                                                                                    
SENATOR  MENARD asked  if the  railroad has  plans for  the land.                                                               
There has been  some controversy about getting  more [Ship] Creek                                                               
property in the railroad's possession.                                                                                          
                                                                                                                                
JAMES  KUBITZ, Vice  President of  Real  Estate, Alaska  Railroad                                                               
Corporation, Anchorage,  said the railroad was  approached by the                                                               
municipality because it wanted the  parcel on Government Hill. So                                                               
the railroad  looked for something  of equal value. The  city has                                                               
owned the  small in-holding, making  it burdensome for  anyone to                                                               
do anything with it. It gives  the railroad a usable lot. He said                                                               
he has not heard any opposition to the trade.                                                                                   
                                                                                                                                
3:43:21 PM                                                                                                                    
CHAIR OLSON said  he understands why the  municipality would want                                                               
the trade,  but what does the  railroad want with a  half acre in                                                               
the middle of a parking lot?                                                                                                    
                                                                                                                                
MR. KUBITZ  said it  could be continuous  parking, but  making it                                                               
one  piece makes  it developable.  A building  could be  built if                                                               
this  bill passes.  The railroad  would lease  it out  if someone                                                               
wanted to build on it.                                                                                                          
                                                                                                                                
3:44:32 PM                                                                                                                    
BOB   FRENCH,  Co-Vice   President,  Government   Hill  Community                                                               
Council, Anchorage,  said his council  is the most basic  form of                                                               
local  government. The  39 community  councils in  Anchorage have                                                               
few powers,  but the  municipality looks to  them for  advice and                                                               
guidance on  local issues.  His council  is in  favor of  SB 165.                                                               
Government  Hill is  the oldest  neighborhood  in Anchorage.  Its                                                               
history is  tied to the  railroad, so it  has a large  density of                                                               
railroad-owned  land. The  railroad  owns many  small parcels  on                                                               
Government Hill,  which can hinder  development. The  entrance to                                                               
the elementary  school doesn't  function well.  There is  a small                                                               
street  and  a  metal  school crossing  bridge  right  where  the                                                               
entrance to Elmendorf Air Force  Base and two disconnected halves                                                               
of Bluff Road all join together.  The railroad property is in the                                                               
middle  of all  that and  blocks  attempts to  create a  workable                                                               
entrance.  It may  not be  easy, but  there will  be the  hope of                                                               
finding a solution if the land is swapped.                                                                                      
                                                                                                                                
3:47:50 PM                                                                                                                    
SENATOR FRENCH said the entrance to  the school is really in need                                                               
of a  makeover. It is  hard to see  from the map.  The Government                                                               
Hill Community  Council is known  for its strength  and awareness                                                               
of  local issue.  It  is  a very  proactive  group,  and when  it                                                               
speaks, it speaks with authority about what the community wants.                                                                
                                                                                                                                
CHAIR OLSON asked about the boundaries of the council.                                                                          
                                                                                                                                
MR. BOB  FRENCH said  it includes all  of the  Anchorage terminal                                                               
reserve  owned by  the Alaska  railroad.  There are  quite a  few                                                               
industrial partners in the community  council, including the Port                                                               
of Anchorage, Ship Creek Valley, and Elmendorf Air Force Base.                                                                  
                                                                                                                                
3:50:03 PM                                                                                                                    
CHAIR OLSON asked if the Saturday Market is included.                                                                           
                                                                                                                                
MR.  BOB FRENCH  said  he thinks  that is  part  of the  downtown                                                               
council.                                                                                                                        
                                                                                                                                
SENATOR MENARD asked  if everything on the map that  is orange is                                                               
within Government Hill.                                                                                                         
                                                                                                                                
SENATOR FRENCH said it is the opposite of that, he thinks.                                                                      
                                                                                                                                
MR. KUBITZ said he doesn't have a map.                                                                                          
                                                                                                                                
3:51:47 PM                                                                                                                    
WENDY  LINDSKOOG, Assistant  Vice  President, Corporate  Affairs,                                                               
Alaska  Railroad Corporation,  Anchorage,  said  the orange  line                                                               
defines  the   railroad  property,  and  it   doesn't  relate  to                                                               
community  council  boundaries.  The  two  blue  parcels  are  in                                                               
Government Hill. This  was a good negotiation with  the city, and                                                               
she would like to see the bill move.                                                                                            
                                                                                                                                
SENATOR THOMAS asked  if everything to the west,  south, and east                                                               
of the orange line is railroad  property. "Are we just not seeing                                                               
the continuation on the right side of the map?"                                                                                 
                                                                                                                                
MS. LINDSKOOG said yes.                                                                                                         
                                                                                                                                
3:54:21 PM                                                                                                                    
The committee took a brief at-ease.                                                                                             
                                                                                                                                
SENATOR  FRENCH  moved  to  report SB  165  from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no objection, SB 165 moved out of committee.                                                                              
                                                                                                                                
SENATOR MENARD said  the only difficulty was  the $42,200 benefit                                                               
to the railroad. It is a small struggle to see the inequity.                                                                    
                                                                                                                                
The meeting was adjourned at 3:55 p.m.                                                                                          
3:55:55 PM                                                                                                                    

Document Name Date/Time Subjects
SB165 ARRC Resolution.pdf SCRA 3/31/2009 3:30:00 PM
SB 165
SB165 Anchorage SD.pdf SCRA 3/31/2009 3:30:00 PM
SB 165
SB165 Government Hill CC.pdf SCRA 3/31/2009 3:30:00 PM
SB 165
SB165 Sponsor Statement.pdf SCRA 3/31/2009 3:30:00 PM
SB 165
SB165 Map.pdf SCRA 3/31/2009 3:30:00 PM
SB 165