2000-02-08                     Senate Journal                      Page 2218
SB 249                                                                       
SENATE BILL NO. 249 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act authorizing a land exchange between the                                
Department of Natural Resources and Alaska Hard                                
Rock, Inc.; and providing for an effective date.                               
                                                                               
was read the first time and referred to the Resources and Finance              
Committees.                                                                    
                                                                               
Zero fiscal note published today from Department of Natural                    
Resources.                                                                     
                                                                               
The Final Exchange Agreement, Independence Mine SHP Exchange                   
with Alaska Hardrock, Inc., was attached and is on file in the Office          
of the Secretary of the Senate.                                                
                                                                               
Governors transmittal letter dated February 3:                                 
                                                                               
                                                                               

2000-02-08                     Senate Journal                      Page 2219
SB 249                                                                       
Dear President Pearce:                                                         
                                                                               
This bill I transmit today would provide legislative approval of a             
land exchange agreement between the state Department of Natural                
Resources, and Alaska Hardrock, Inc. The purpose of the land                   
exchange is for the state to acquire private land located within and           
adjacent to Independence Mine State Historical Park, near Hatcher              
Pass. The land to be acquired would be developed to enhance the                
interpretive and recreational uses of the park. The land the state is          
exchanging is also located in the Hatcher Pass area and is presently           
under permit to Alaska Hardrock, Inc., which is interested in                  
receiving title.                                                               
                                                                               
State law requires legislative approval of land exchanges involving            
lands of unequal appraised value. In this proposed exchange, the               
state will receive land appraised at $87,000 while conveying land              
appraised at $66,500. Alaska Hardrock, Inc. is agreeable to this               
unequal exchange and will be receiving a federal tax credit for the            
difference.                                                                    
                                                                               
Adding this land to the Independence Mine State Historical Park,               
particularly the underground mine tunnels, will greatly add to the             
tourism potential of the park. The DNR expects to contract with a              
private concession to run tours and maintain the historic buildings in         
the park, saving a part of Alaska's history while increasing economic          
activity in the area.                                                          
                                                                               
A copy of the land exchange agreement between the DNR and                      
Hardrock, Inc., is being provided to the legislature. The DNR has              
available a report that explains the proposed exchange in more detail.         
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor