00 HOUSE BILL NO. 412                                                                                                    
01 "An Act providing for the transfer of certain land to the City of Whittier; and                                         
02 providing for an effective date."                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  FINDINGS.  The Alaska State Legislature finds that                                                   
05   (1)  the state has undertaken the construction of a road to the City of Whittier                                      
06 that is scheduled to be completed in the year 2000;                                                                     
07   (2)  the construction of the road to the City of Whittier is part of a statewide                                      
08 program to provide the people of the state with road access to the western Prince William                               
09 Sound region to expand recreational opportunities available to the people of the state as well                          
10 as to facilitate the growth of tourism in the state;                                                                    
11   (3)  on completion of the road to the City of Whittier, the city will suffer severe                                   
12 economic and social dislocation if the city is not provided resources to help the city cope with                        
13 the effects of road traffic and greatly increased pressure from recreational and commercial                             
14 users of the Prince William Sound area;                                                                                 
01   (4)  the City of Whittier suffers from a severe shortage of land that is capable                                      
02 of development; of the 211.6 acres that comprise the city's core area in its 1995                                       
03 comprehensive plan, only 137.2 acres, or 64.8 percent, are suitable for development; of the                             
04 211.6 acres in the core area, more than half is owned by the Alaska Railroad Corporation;                               
05 much of this land is not needed for the operations of the railroad; in addition, the Alaska                             
06 Railroad Corporation owns or will otherwise receive other land within the City of Whittier                              
07 outside the core area that is not used or required for railroad operations; the city needs land                         
08 on which to establish the public facilities that will be necessary to handle the visitors both                          
09 from within the state and out of the state;                                                                             
10   (5)  the transfer to the City of Whittier of the lands owned by, or to be received                                    
11 by, the Alaska Railroad Corporation from the federal government will enhance the ability of                             
12 the city to respond to the effects of the expansion of the state road system and to serve the                           
13 needs of the people and businesses that are and will be attracted to the city;                                          
14   (6)  the transfer of land under this Act is made subject to easements necessary                                       
15 to ensure the continued successful operation of the Alaska Railroad Corporation in the City                             
16 of Whittier.                                                                                                            
17    * Sec. 2.  TRANSFER OF LAND TO CITY OF WHITTIER.  (a)  Real property of the                                        
18 state-owned Alaska Railroad that is located within the corporate boundary of the City of                                
19 Whittier, including tide and submerged land, is transferred to the City of Whittier subject to                          
20 the provisions of this Act.                                                                                             
21  (b)  The Department of Natural Resources shall receive title on behalf of the state to                                 
22 real property of the state-owned Alaska Railroad within the corporate boundary of the City                              
23 of Whittier that is conveyed to the state by the federal government after the effective date of                         
24 this Act.  Title to real property of the state-owned Alaska Railroad within the corporate                               
25 boundary of the City of Whittier acquired by the Alaska Railroad Corporation before the                                 
26 effective date of this Act shall be conveyed to the Department of Natural Resources for                                 
27 subsequent reconveyance to the City of Whittier under this Act.  Subject to valid existing                              
28 rights and to the provisions of this Act, the commissioner of natural resources shall transfer                          
29 to the City of Whittier exactly the same right, title, and interest held by the state in and to the                     
30 real property described under (a) of this section.  The commissioner of natural resources shall                         
31 approve transfers to the City of Whittier of real property subject to this Act that is owned by                         
01 the state or has been tentatively approved or patented to the state by the federal government                           
02 but may not issue patent to the City of Whittier until the real property has first been patented                        
03 or otherwise conveyed to the state.  After approval of a transfer by the commissioner of                                
04 natural resources but before patent to the City of Whittier, the City of Whittier may execute                           
05 conditional leases and make conditional sales only with the consent of the commissioner.                                
06  (c)  A perpetual easement to land within railroad rights-of-way received by the state                                  
07 under 45 U.S.C. 1201 - 1241 that is within the corporate boundary of the City of Whittier is                            
08 reserved to the State of Alaska for transportation, communication, and transmission purposes.                           
09  (d)  An exclusive-use easement to the railroad utility corridor within the corporate                                   
10 boundary of the City of Whittier as the corridor exists on February 15, 1998, is reserved to                            
11 the state for the benefit of the state-owned Alaska Railroad.  The easement is subject to valid                         
12 rights in existence on February 15, 1998.                                                                               
13  (e)  An exclusive license to use, occupy, and directly receive all benefit of rail land                                
14 and other real property of the state-owned Alaska Railroad physically occupied and actively                             
15 used by the railroad for railroad operations on February 15, 1998, within the corporate                                 
16 boundary of the City of Whittier is reserved for the state-owned Alaska Railroad.  The license                          
17 is subject to valid rights in existence on February 15, 1998.  The rail land and other real                             
18 property of the state-owned Alaska Railroad that is subject to the exclusive license reserved                           
19 by this subsection is that portion of the city that is comprised of rail sidings, freight dock, and                     
20 Alaska Railroad Corporation occupied buildings that can be generally described as follows:                              
21 Starting at the bridge across Whittier Creek the northern boundary shall follow more or less,                           
22 the southern edge of the road commonly referred to as Harbor Street fronting the Whittier                               
23 small boat harbor until such boundary intersects with the boundary of ATS 879; then                                     
24 following the boundary of ATS 879 southeasterly and then easterly until the ATS 879                                     
25 boundary intersects the existing settlement line, then following the settlement line northeasterly                      
26 to the point where the settlement line intersects with the northern edge of the Depot Road;                             
27 then southwesterly following the northern edge of the Depot Road until the line intersects with                         
28 the northern boundary of USS 2559; then westerly along the northern boundary of USS 2559                                
29 and continuing along the line until the line intersects with the northern edge of Whittier Street;                      
30 then northwest along the northern edge of Whittier Street to the starting point at the bridge                           
31 across Whittier Creek.                                                                                                  
01  (f)  Conveyances of real property made under this Act are subject to AS 38.05.125 and                                  
02 38.05.127.                                                                                                              
03  (g)  Tide or submerged land conveyed under this Act is subject to the public trust                                     
04 doctrine that may be enforced by the state in a court of competent jurisdiction.  The City of                           
05 Whittier shall ensure that reasonable access to public waters and tidelands is provided.  The                           
06 City of Whittier may not lease tide or submerged land conveyed under this Act for shore                                 
07 fisheries, but, after conveyance, the land may be leased by the state for shore fisheries under                         
08 AS 38.05.082 if the commissioner of natural resources determines that the lease is compatible                           
09 with the city's use of the land.                                                                                        
10  (h)  If real property transferred under this Act to the City of Whittier is unsurveyed                                 
11 on the effective date of this Act, the commissioner of natural resources shall survey, or may                           
12 approve the municipality's survey of, the exterior boundaries of the real property or a parcel                          
13 of the real property and shall issue patent in terms of the exterior boundary survey.  The cost                         
14 of the survey shall be borne by the City of Whittier.  If land transferred by this Act has been                         
15 surveyed on or before the effective date of this Act, the boundaries shall conform to the public                        
16 land subdivisions established by the approved survey.  The boundaries of the areas subject to                           
17 an exclusive license under (e) of this section shall be surveyed and the survey may be by the                           
18 meter and bounds method.                                                                                                
19  (i)  The Alaska Railroad Corporation shall indemnify, hold harmless, and defend the                                    
20 City of Whittier from all losses and all claims, liabilities, judgments, damages, or expenses                           
21 arising out of the past or future operations of the railroad on property transferred to the city                        
22 under this Act including, without limitation, all claims and liabilities for environmental                              
23 damages, cleanup, or removal costs, and restoration costs arising out of the release, storage,                          
24 disposal of any oil or petroleum products, or any hazardous materials, or other material on the                         
25 property transferred to the city.                                                                                       
26  (j)  This Act does not enlarge or diminish the general grant land entitlement of the City                              
27 of Whittier under AS 29.65, nor is a conveyance under this Act counted against the general                              
28 grant land entitlement of the City of Whittier.                                                                         
29  (k)  Title to land conveyed under this Act that is retained by the City of Whittier                                    
30 reverts to the state upon the dissolution of the municipality without a successor municipal                             
31 government to assume title to the assets of the city.                                                                   
01  (l)  This Act supersedes conflicting provisions of AS 42.40.                                                           
02  (m)  A sale, lease, or other disposition by the Alaska Railroad Corporation to a third                                 
03 party of land subject to this Act executed after February 15, 1998, without the consent and                             
04 approval of the City of Whittier, will be revocable by the city at any time after the effective                         
05 date of this Act.                                                                                                       
06  (n)  In this Act,                                                                                                      
07   (1)  "exclusive-use easement" has the meaning given in 45 U.S.C. 1202;                                                
08   (2)  "rail land" means land of the Alaska Railroad Corporation outside a                                              
09 railroad utility corridor;                                                                                              
10    (3)  "railroad utility corridor" means railroad right-of-way;                                                        
11   (4)  "real property of the state-owned Alaska Railroad" means land, interests                                         
12 in land, buildings, and other improvements to land that the State of Alaska is entitled to                              
13 receive under the Alaska Railroad Transfer Act (45 U.S.C. 1201 - 1214) and land, interests                              
14 in land, buildings, and other improvements to land otherwise acquired before the effective date                         
15 of this Act by the state-owned Alaska Railroad.                                                                         
16   * Sec. 3.  This Act takes effect immediately under AS 01.10.070(c).