Legislature(2003 - 2004)
03/24/2003 03:36 PM Senate RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CSHB 139(RES)-CLOSING CERTAIN LAND TO MINERAL ENTRY
REPRESENTATIVE MIKE HAWKER, sponsor of HB 139, gave the
following explanation of the measure.
This is a rare opportunity for me to come before you
and ask you to extend for 10 years a moratorium
against mining claims. It's kind of an unusual
circumstance. HB 139 affects a certain area in the
upper Girdwood Valley - an area that is immediately
adjacent to the current Alyeska Ski Resort development
area. This land, 5,740 acres, that exists adjacent to
the current ski resort, was closed to - or a mining
closure was issued on this 10 years ago. That order
has expired. This bill - and actually then, through
the process, the Administration reauthorized the
order. We, as the legislative body, need to affirm
that authorization for it to remain in effect and we
have until April 20 for that closure to remain in
effect.
This is a 10-year extension of the moratorium on new
mining claims in this area, specifically to allow the
owners of the property, which is a combination of the
State of Alaska, the Municipality of Anchorage (MOA),
Heritage Land Bank, to issue a request for proposal
and seek for additional major world class alpine ski
resort development. The area that is subject to this
closure had been mined in the late 1800s. It pretty
much ceased being mined in the mid-20th Century. There
were additional claims staked on it in the 1980s by
the Toohey (ph) family, who operates commercial and
recreational mining areas on the other side of the
valley - also I was going to say on the far side of
this particular parcel.
When the mining area was first closed 10 years ago,
there were no takings - I have to emphasize - there
were no takings involved. The claims that folks had
were purchased out, fee simple purchases, and the
entire community concurred that the best and highest
development for this property would not be for the
commercial mining but would be for recreation resort
development.
Your bill package includes the spectrum of
endorsements we've got to extend this closure -
probably the most important to us is the Alaska
Miners' Association has specifically endorsed the
continuation of this closure, then all of the
community interests - the Girdwood Board of
Supervisors, Heritage Land Bank, Municipality of
Anchorage, the Department of Natural Resources (DNR),
as well as personal conversations I've had with the
Toohey family of not only non-objection, but
endorsement of this project. It's important to note
the [Department of] Natural Resources document here
indicates that the prospect of commercial development
in this area is minimal. There's very little
[indisc.]. From the standpoint of mining, it's really
at best a recreational mining area. The use for
recreational mining is not incompatible with ski
resort development. It's my understanding that that
use would not be closed by this order. This order
again would apply only to commercial development that
would impede the ability to use this land or to
further lease this land for ski resort development. I
would be very happy to entertain your questions but,
again, would certainly hope you'd be able to continue
to help us move this bill along and get it to the
Governor before April 20th.
CHAIR OGAN announced that Senator Lincoln joined the committee
shortly after the meeting convened. He then asked if voting in
favor of this bill would ruin his zero rating with environmental
groups.
REPRESENTATIVE HAWKER expressed concern that might occur. He
then said this is a unique opportunity in which very diverse
interests have agreed that the highest, best, economic
development of this area is for recreational activities.
CHAIR OGAN asked who is anticipated to develop this area.
REPRESENTATIVE HAWKER said he learned, in his conversations with
the current management at Alyeska, that Alyeska is interested
but doubts it would be the prevailing party. This bill will
actually bring competition to that area.
CHAIR OGAN asked if a 10-year moratorium will create a situation
in which no development will occur for 9 years and whether it
would be more advantageous to implement a 5-year moratorium to
encourage development sooner.
REPRESENTATIVE HAWKER said if commercial development does not
begin within 10 years, the area would automatically reopen to
mining. There has been some debate on the time frame and window
but, considering the magnitude of the projects under
consideration and current world economics, he believes a 10-year
window is appropriate.
3:45 p.m.
SENATOR LINCOLN read from the Alaska Miners' Association letter:
...Our concern is that lands not be permanently closed
to mineral entry in the case that the ski area is not
developed.
She then said, according to the memorandum dated March 6 from
Kathryn Kurtz, legislative counsel, Section 4 of the bill has an
effective date of 2012 and provides that the repeal in Section 4
will take effect unless the commissioner of natural resources
certifies on or before April 2 that development of a resort has
begun in the closed area. She asked whether a minor structure
would fit that description.
REPRESENTATIVE HAWKER said the reference she made to the letter
from the Alaska Miners' Association referenced the first draft
of this bill. It required that an affirmative action be taken by
the administration of the State of Alaska for the area to be
reopened to mining. The Alaska Miners' Association preferred
that the reopening happen automatically, rather than requiring
an affirmative action. The bill that passed the House is a
committee substitute (CS) in which the Alaska Miners'
Association concern was accommodated.
SENATOR LINCOLN asked Representative Hawker to cite that section
in CSHB 139(RES).
REPRESENTATIVE HAWKER said that can be found on page 3, lines 3
through 7. He explained that section provides important
parameters in that someone will not be able to slap together a
structure at the last minute and ask to keep the area closed to
mining. The development must be in concert with the
comprehensive land use plans developed for this area by the
state and MOA.
SENATOR LINCOLN said she does not interpret that section to
apply to development of the full resort or to a specific stage
of development. It only adds that the development plan is in a
land use plan. She asked if the Alaska Miners' Association has
endorsed CSHB 139(RES).
REPRESENTATIVE HAWKER said it has. He repeated the 10-year
window is for the beginning of the construction of a viable
resort as described. It is not for completion of that facility.
SENATOR ELTON asked if anyone is planning to develop the ski
resort at this time.
REPRESENTATIVE HAWKER said no one is "waiting in the wings" at
this time. He said this is not special interest legislation and,
in fact, the current issue of the Turnagain Times features this
resort in the Girdwood 2020 organization. The article says the
next step, following the passage of CSHB 139(RES), is a two-year
plan to update a 10-year old feasibility study and issue a
formal request for proposals to develop the area.
SENATOR ELTON asked if the only reason CSHB 139(RES) is
necessary is to preclude staking that might be done on
speculation.
REPRESENTATIVE HAWKER said that is correct; CSHB 139(RES) is
preemptive.
SENATOR LINCOLN asked if the subsurface rights on the 5,740
acres will remain with the state.
REPRESENTATIVE HAWKER deferred to George Cannelos for an answer
to that question.
CHAIR OGAN said the state will still own the subsurface rights
and could not lease those rights to anyone during that time.
MR. GEORGE CANNELOS, Heritage Land Bank, MOA, said he believes
the state would maintain ownership of the subsurface rights but
deferred to DNR for more detailed information.
MR. BOB LOEFFLER, Division of Mining, Land and Water, DNR,
affirmed that the state would maintain ownership to the
subsurface rights. He noted that of the 5,740 acres, 1,000 acres
are owned by the MOA and 4,700-plus acres are owned by the
state.
CHAIR OGAN asked if the MOA land is fee simple.
MR. LOEFFLER said it is fee simple only with respect to the
surface rights. The state retains the subsurface rights.
MR. CANNELOS stated support for CSHB 139(RES) as it provides an
opportunity for the state, the MOA, and the private sector to
partner together to test the feasibility of developing the
Glacier Winner Creek area as the next major alpine ski resort
area for Girdwood. The Heritage Land Bank wants to do two things
this year. First, it would like to issue a request for a
proposal to update the development concept and look at the
economics of the project again. Some excellent studies were done
about 10 years ago, but they need to be updated. Second, when
that is concluded, it wants to go out to the private sector and
solicit interest from a prime developer. Regarding the question
asked about the participation of Alyeska, while Alyeska has said
it probably will not be a direct partner, the $200 million hotel
was located halfway between Alyeska Mountain and the new Glacier
Winner Creek resort. Regarding the 10-year period, he agrees
with Representative Hawker that a project of this magnitude will
be built in phases so 10 years is a reasonable time frame.
SENATOR STEVENS arrived.
MR. LOEFFLER stated support for CSHB 139(RES) and said DNR has
reviewed this bill with a critical eye.
There being no further questions or testimony, SENATOR DYSON
moved CSHB 139(RES) from committee with individual
recommendations and its zero fiscal note.
CHAIR OGAN noted that without objection, the motion carried. He
then announced the committee would take up SB 70.
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