Legislature(2009 - 2010)

04/16/2010 08:06 AM Senate L&C


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Audio Topic
08:06:51 AM Start
08:07:36 AM Presentation: Future of Ice Alaska
08:48:50 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 16, 2010                                                                                         
                           8:06 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Joe Paskvan, Chair                                                                                                      
Senator Joe Thomas, Vice Chair                                                                                                  
Senator Bettye Davis                                                                                                            
Senator Kevin Meyer                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Con Bunde                                                                                                               
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                              
Senator John Coghill                                                                                                            
Representative Tammie Wilson                                                                                                    
Representative Mike Kelly                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: FUTURE OF ICE ALASKA                                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DICK BRICKLEY, Chairman                                                                                                         
Ice Alaska                                                                                                                      
Fairbanks, AK thanked the committee for taking the time to help                                                                 
with this issue. He said this event had been going on for 21                                                                    
years.                                                                                                                          
POSITION STATEMENT: Commented on site selection for the Ice                                                                   
Alaska event.                                                                                                                   
                                                                                                                                
JOHN BINKLEY, Chairman                                                                                                          
Board of Directors                                                                                                              
Alaska Railroad Corporation                                                                                                     
POSITION STATEMENT: Commented on site selection for the Ice                                                                   
Alaska event.                                                                                                                   
                                                                                                                                
JIM KUBITZ, Vice President                                                                                                      
Real Estate and Facilities                                                                                                      
Alaska Railroad Corporation (ARRC)                                                                                              
POSITION STATEMENT:  Commented on  lease options  for a  site for                                                             
the Ice Alaska event.                                                                                                           
                                                                                                                                
MAYOR LUKE HOPKINS                                                                                                              
Fairbanks North Star Borough                                                                                                    
POSITION STATEMENT: Commented on his  negotiations for a site for                                                             
the Ice Alaska event.                                                                                                           
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:06:51 AM                                                                                                                    
CHAIR JOE PASKVAN  called the Senate Labor  and Commerce Standing                                                             
Committee meeting  to order at 8:06  a.m. Present at the  call to                                                               
order were Senators Thomas, Meyer, and Paskvan.                                                                                 
                                                                                                                                
^Presentation: Future of Ice Alaska                                                                                             
               Presentation: Future of Ice Alaska                                                                           
                                                                                                                                
8:07:36 AM                                                                                                                    
CHAIR PASKVAN  said they are  holding this meeting to  discuss an                                                               
important issue  for winter tourism  in Interior Alaska,  the Ice                                                               
World Championships, and their lease  with the Alaska Railroad is                                                               
scheduled to expire in June.                                                                                                    
                                                                                                                                
8:09:36 AM                                                                                                                    
DICK  BRICKLEY,  Chairman,  Ice Alaska,  Fairbanks,  thanked  the                                                               
committee for  taking the time to  help with this issue.  He said                                                               
this  event had  been  going on  for 21  years.  When they  first                                                               
started,  they  bought ice  in  Seattle  and  had it  shipped  to                                                               
Fairbanks, but they  have found that Fairbanks has  the very best                                                               
ice   and  now   uses  that.   Ice  Alaska   provides  tremendous                                                               
opportunities to  capitalize on  the cold Fairbanks  weather that                                                               
extends for  seven months  of the  year. The Ice  Park is  like a                                                               
Disney feature; over 40,000 people  went through it last year. It                                                               
truly  helps the  winters go  faster.  Ice Alaska  is staffed  90                                                               
percent  by  volunteers  who  are  all working  hard  to  see  it                                                               
continue.                                                                                                                       
                                                                                                                                
8:15:57 AM                                                                                                                    
JOHN  BINKLEY,  Chairman,  Board of  Directors,  Alaska  Railroad                                                               
Corporation  (ARRC),  said they  want  to  find ways  to  provide                                                               
economic development  to Alaskans,  and Mr. Brickley's  Ice World                                                               
realizes that  impact. That is why  they want to make  sure it is                                                               
preserved in  perpetuity as an  event. Recently they  have agreed                                                               
with Mayor  Hopkins that the 2011  event will go on.  In the next                                                               
60 days he will work with  the Mayor, Ice Alaska and the Railroad                                                               
on a prepaid lease or find another location within the borough.                                                                 
                                                                                                                                
8:20:07 AM                                                                                                                    
SENATOR   THOMAS  said   he   appreciated   his  enthusiasm   and                                                               
recognition of what the ice park  does. This is a great location;                                                               
it is already  somewhat connected. In looking at  the two images,                                                               
he assumed that image 2 was  more the frontage road along Philips                                                               
Field which  is Railroad land.  If that's the case,  it concerned                                                               
him  a bit  even though  he liked  the idea  of extending  to the                                                               
river, which would allow access to  the other side. How would the                                                               
parking  work  out, because  it  looks  like  a majority  of  the                                                               
existing parking  goes away?  He was also  concerned if  the land                                                               
was leased that it be with a long-term lease of 30-40 years.                                                                    
                                                                                                                                
JIM KUBITZ,  Vice President, Real  Estate and  Facilities, Alaska                                                               
Railroad  Corporation  (ARRC),  said  they  discussed  a  35-year                                                               
prepaid lease with the Mayor, but 55 years is the maximum.                                                                      
                                                                                                                                
SENATOR  THOMAS  said   sale  of  the  property   would  be  more                                                               
reasonable for at  least the continuity and  the understanding of                                                               
what could  take place  on the  property as  far as  building any                                                               
kind of bridges or other access  to it. He noted an existing bill                                                               
that would  allow the  Railroad a better  opportunity to  look at                                                               
non-essential property and potentially consider selling it.                                                                     
                                                                                                                                
8:22:52 AM                                                                                                                    
SENATOR BETTYE DAVIS joined the committee.                                                                                      
                                                                                                                                
CHAIR PASKVAN  said agreements hadn't  been reached in  full, but                                                               
he wanted to know more about "the balls that are in the air."                                                                   
                                                                                                                                
MR.  KUBITZ  said he  is  the  one doing  the  eyeball-to-eyeball                                                               
discussions  with former  Mayor  Whitaker and  the current  Mayor                                                               
Hopkins  about how  to  reach a  long-range  solution. There  are                                                               
essentially  two paths,  and they  are working  them both  to see                                                               
which one  "will float to the  top." The first path  is a prepaid                                                               
35-year lease  for 20  acres under Mayor  Whitaker. He  and Mayor                                                               
Hopkins  are working  on that  as well  as the  value of  what it                                                               
would be. The second path would  be if Ice Alaska decided to move                                                               
to another location.  He mentioned that the ice  that is provided                                                               
for this  event is harvested  right on  the property from  a pond                                                               
that was created by the  Railroad when it was developed. Material                                                               
from the  pond was used  to build the  roads and to  help develop                                                               
the site.  So, if  from some  reason this event  were to  move to                                                               
another  location, Ice  Alaska,  the Mayor,  and  the North  Star                                                               
Borough have been assured that they  will have access to that ice                                                               
forever -  because that is probably  one of the highest  and best                                                               
uses of  a pond they can  think of. A lease  would be established                                                               
based on fair market value. The  second path would help the North                                                               
Star Borough find  a permanent home for the park.  In that event,                                                               
they have  already agreed to  extend the existing lease  with the                                                               
Borough so the 2011 event can be held in the exact location.                                                                    
                                                                                                                                
8:26:16 AM                                                                                                                    
MR. BINKLEY said in answer  to Senator Thomas' question about the                                                               
scope of the park, Mr. Kubitz  was saying that they are trying to                                                               
tailor this to get the acreage  with the money that the Ice Parks                                                               
has now available  to prepay a long-term lease. That  is why it's                                                               
constricted to the 20 acres.                                                                                                    
                                                                                                                                
SENATOR THOMAS  pointed out that  both pieces are larger  than 20                                                               
acres; one is  30 and one is 28.35. He  appreciated the status of                                                               
the pond, but moving to some  other place and still attempting to                                                               
use  that  ice  just  creates   another  expense  and  logistical                                                               
exercise in trying to transport it.                                                                                             
                                                                                                                                
REPRESENTATIVE MIKE KELLY joined the committee.                                                                                 
                                                                                                                                
MR. BINKLEY  explained that the 20  acres on image 2  is the area                                                               
that includes  just track 8,6,  and a  portion of track  7. Their                                                               
available funds  would equate to  the value  of that land  over a                                                               
pre-paid 35 year lease.                                                                                                         
                                                                                                                                
SENATOR THOMAS asked if track 2 is the donated property.                                                                        
                                                                                                                                
MR.  BINKLEY responded  that track  2 would  be above  and beyond                                                               
that amount.                                                                                                                    
                                                                                                                                
8:29:08 AM                                                                                                                    
MR. KUBITZ said  he knows that parking is an  issue, because this                                                               
is a 5-6 week public event  and people park everywhere; then they                                                               
are  gone  for the  rest  of  the  year.  The problem  with  this                                                               
property  is question  of whether  that is  its highest  and best                                                               
use,  because  currently  this  property  sits  vacant  for  10.5                                                               
months. The Railroad, while they  value the event, thinks that is                                                               
not the highest and  best use. So they are trying  to help find a                                                               
solution. One  solution they have  discussed with the  North Star                                                               
Borough is to  have parking across the river in  the Pioneer Park                                                               
area  and then  people can  walk across  an existing  foot bridge                                                               
that  was installed  by the  Railroad. The  foot bridge  could be                                                               
easily maintained with a four-wheeler  plowing snow. While it's a                                                               
little bit  of a walk, there  would be access to  huge amounts of                                                               
parking right  across the river  and the footprint of  the actual                                                               
event could be kept smaller. All  of that property would not have                                                               
to be used for parking for just a six-week event.                                                                               
                                                                                                                                
8:30:25 AM                                                                                                                    
MAYOR LUKE HOPKINS,  Fairbanks North Star Borough,  said this has                                                               
been a long process along a  sometimes bumpy road. The end result                                                               
will ensure that the Fairbanks  area and the economy continues to                                                               
benefit from this incredible world-class ice carving event.                                                                     
                                                                                                                                
He said of  the continued economic benefit to  the Fairbanks area                                                               
and to  the State of  the Alaska in  winter tourism, this  is the                                                               
only area of  the state, according to the  Fairbanks Visitors and                                                               
Convention Bureau that is expanding  tourism by 13 percent growth                                                               
in  the winter.  That  is primarily  because  of Interior  winter                                                               
opportunities, and Ice Alaska is huge.                                                                                          
                                                                                                                                
In  terms of  the future  of Ice  Alaska, Mayor  Hopkins said  he                                                               
wants to ensure  that it has a  firm site in the  local area; his                                                               
office and  the Railroad have  been able  to agree on  a one-year                                                               
land use  permit to the Fairbanks  North Star Borough to  use the                                                               
current  properties  for the  2011  Ice  Art event.  Everyone  is                                                               
pleased the  event will be  able to  continue and be  even bigger                                                               
next year.                                                                                                                      
                                                                                                                                
He said  image 1  is the  current area used;  the second  map was                                                               
sent  to him  by  the  Railroad as  a  continuing negotiation  in                                                               
finding a  suitable long-term lease arrangement.  They realize to                                                               
keep Ice  Alaska at  this location  the borough  needs to  have a                                                               
strong connection to its park  facility, Pioneer Park. The second                                                               
map  shows  a  non-motorized  trail across  track  2  that  would                                                               
connect to Pioneer Park where people could park their cars.                                                                     
                                                                                                                                
A third map labeled image 2  showed the 20-acre parcel within the                                                               
existing Chena  Landing Loop Road  that the Railroad  proposed as                                                               
the long-term  leased property. Negotiations are  continuing, but                                                               
he  said the  Assembly  is  looking for  a  strong connection  to                                                               
Pioneer Park  and they are the  ones who would have  to approve a                                                               
long-term lease.                                                                                                                
                                                                                                                                
MAYOR HOPKINS explained  that Ice Alaska has  offered its capital                                                               
project funds  to the borough  unanimously for a long  term lease                                                               
arrangement with the  Railroad if that were to be  arrived at. He                                                               
has had conversations with individual  Assembly members that if a                                                               
small amount of  additional funds would be needed  to ensure that                                                               
either  the Railroad's  20 acres  or the  borough's hope  that an                                                               
approximate 30 acre  long-term lease would be  funded, that could                                                               
possibly be advanced as a bed tax.                                                                                              
                                                                                                                                
8:39:00 AM                                                                                                                    
The other  piece he wanted to  mention is in the  long-term lease                                                               
policy  that may  still  be  current with  the  Railroad is  3.05                                                               
public  entity  section. That  would  address  the ability  of  a                                                               
community  purpose discussion  that  the borough  hasn't yet  had                                                               
with the Railroad. It would  also provide added discussions for a                                                               
less than fair market value  lease arrangement for this property.                                                               
He thought a solution could be found within the next 60 days.                                                                   
                                                                                                                                
SENATOR   THOMAS  asked   if  they   have   talked  with   Alaska                                                               
Land/Pioneer Park regarding  a bridge that would  come onto their                                                               
land that would be used at that time of the year.                                                                               
                                                                                                                                
MAYOR HOPKINS  said he had  talked to  his director of  Parks and                                                               
Recreation  about that  option and  it entails  basically working                                                               
with the  Coast Guard and the  Army Corps of Engineers.  A lot of                                                               
discussion  will be  needed,  the idea  being  that a  pedestrian                                                               
bridge would address the parking issue.                                                                                         
                                                                                                                                
8:42:21 AM                                                                                                                    
He said the question had been  asked about moving this event into                                                               
Pioneer Park, but staff does not  think that would work. It would                                                               
be  a large  operation in  a very  small area,  a very  difficult                                                               
situation for  both power requirements,  temporary usage  and the                                                               
lack of trees to shade the ice event.                                                                                           
                                                                                                                                
SENATOR COGHILL thanked him for all  his work and said he noticed                                                               
that the Carlson Center parking lot  is a lot closer than Pioneer                                                               
Park, and asked if he had considered that.                                                                                      
                                                                                                                                
MAYOR HOPKINS  answered yes, but  the other complication  to some                                                               
degree is  that when events are  held at the Carlson  Center that                                                               
parking  lot  might  not be  available.  Other  discussions  have                                                               
considered the Tanana Valley Fairgrounds  and other properties in                                                               
the area  that might include  the State  of Alaska, but  they are                                                               
all more  difficult to  arrive at  and would be  at least  two or                                                               
three years out to get everything developed.                                                                                    
                                                                                                                                
8:44:58 AM                                                                                                                    
MR. BINKLEY expressed  appreciation to Mayor Hopkins  and said he                                                               
knew  there  was  a solution,  particularly  with  the  borough's                                                               
willingness  to  step  in, recognizing  the  tremendous  positive                                                               
economic impact it has.                                                                                                         
                                                                                                                                
CHAIR PASKVAN thanked everyone for being present.                                                                               
                                                                                                                                
8:46:51 AM                                                                                                                    
SENATOR  THOMAS  commented  that  it is  an  extremely  important                                                               
event,  but  it  also  has  difficulty  with  raising  funds  and                                                               
operates for a  short period of time even though  a lot of people                                                               
attend  it.  Hopefully  they  will reach  a  resolution  that  is                                                               
beneficial to both parties.                                                                                                     
                                                                                                                                
8:48:50 AM                                                                                                                    
CHAIR PASKVAN, finding no further business to bring before the                                                                  
committee, adjourned the meeting at 8:48 a.m.                                                                                   

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