Legislature(2009 - 2010)
04/16/2010 08:06 AM Senate L&C
| Audio | Topic |
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| Start | |
| Presentation: Future of Ice Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ 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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