04/09/2009 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

          HB 156-ALLOWING CERTAIN LANDFILL FEE WAIVERS                                                                      
                                                                                                                                
3:34:22 PM                                                                                                                    
CHAIR OLSON announced consideration of HB 156.                                                                                  
                                                                                                                                
REPRESENTATIVE BOB LYNN, Alaska  State Legislature, sponsor of HB
,  said  the  legislation  permits,   but  does  not  require,                                                               
municipalities  to waive  disposal  or "tipping"  fees for  waste                                                               
materials   from   deteriorated   properties   that   are   under                                                               
renovation. It's  good public policy  and doesn't cost  the state                                                               
money.  This can  make  it economically  feasible  to renovate  a                                                               
deteriorated property to the betterment of the community.                                                                       
                                                                                                                                
3:36:12 PM                                                                                                                    
SENATOR  MENARD   asked  if   this  legislation   includes  minor                                                               
renovations by a home owner.                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  said  the  statute  applies  to  commercial                                                               
properties only.                                                                                                                
                                                                                                                                
DIRK MOFFATT, Staff  to Representative Lynn, added  that there is                                                               
a definition in the back of  the members' packets and he believes                                                               
the smallest is an eight unit property.                                                                                         
                                                                                                                                
SENATOR MENARD asked  if this would apply to a  residence that is                                                               
in a commercially zoned area.                                                                                                   
                                                                                                                                
REPRESENTATIVE LYNN asked Mr. Moffatt to read the definition.                                                                   
                                                                                                                                
MR. MOFFATT read AS 29.45.050(o) through AS 29.45.050(p).                                                                       
                                                                                                                                
3:42:09 PM                                                                                                                    
CHAIR  OLSON  asked  what  the  answer  is  to  Senator  Menard's                                                               
question.                                                                                                                       
                                                                                                                                
REPRESENTATIVE   LYNN   said   his  understanding   is   that   a                                                               
deteriorated  property is  commercial property  that is  not used                                                               
for  residential purposes  other  than properties  with at  least                                                               
eight  units. Within  the last  five years  it has  to have  been                                                               
determined by the  municipality to be "deteriorated";  it must be                                                               
not  less than  15 years  of age  and have  undergone substantial                                                               
renovation,  demolition,  and  removal;   and  is  located  in  a                                                               
deteriorated  or deteriorating  area  with  boundaries that  have                                                               
been determined by the municipality.                                                                                            
                                                                                                                                
CHAIR OLSON queried, "So the answer to her question is no?"                                                                     
                                                                                                                                
REPRESENTATIVE LYNN agreed.                                                                                                     
                                                                                                                                
CHAIR  OLSON  recognized that  Senators  Thomas  and Kookesh  had                                                               
joined the meeting.                                                                                                             
                                                                                                                                
3:42:58 PM                                                                                                                    
MARK MARLOW,  Principal, Marlow  Corporation, explained  that the                                                               
Fairbanks North Star Borough in  2005 passed a local ordinance to                                                               
waive tipping  fees to facilitate  the renovation of  the Polaris                                                               
Tower in downtown  Fairbanks. HB 156 stemmed from  a concern that                                                               
the ordinance  could be challenged  on a constitutional  basis of                                                               
equal  treatment. The  fix was  to  define deteriorated  property                                                               
within AS  29.35 - somewhat like  AS 29.45 was amended  to define                                                               
deteriorated property  - so  that municipalities  could implement                                                               
property tax  relief to facilitate redevelopment  of deteriorated                                                               
property.  Deteriorated  property  was defined  as  a  particular                                                               
class of property so that it met the constitutional test.                                                                       
                                                                                                                                
HB 156 aims  to define deteriorated property within  AS 29.35 and                                                               
points back  to AS  29.45 so  that if  a municipality  chooses to                                                               
extend  this  benefit  to  help  facilitate  redevelopment  of  a                                                               
property that,  through a very  public process, has  been defined                                                               
as deteriorated, then it will meet the constitutional test.                                                                     
                                                                                                                                
MR. MARLOW said his firm is  involved in an effort to restore the                                                               
Polaris Tower to usefulness and  he would like the legislation to                                                               
pass.                                                                                                                           
                                                                                                                                
3:45:21 PM                                                                                                                    
CHAIR OLSON asked  if Fairbanks is the only  municipality that is                                                               
having a problem related to this issue.                                                                                         
                                                                                                                                
MR.  MARLOW said  he  isn't  aware of  others.  This  would be  a                                                               
significant benefit because the  Polaris Tower renovation project                                                               
will produce  a great deal of  debris. It was a  little different                                                               
when the old MacKay building  in downtown Anchorage was renovated                                                               
because the building had already  been stripped. As buildings and                                                               
infrastructure age these things need  to be addressed to mitigate                                                               
blight. This  would be a  good tool for local  municipalities, he                                                               
said.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  LYNN  highlighted  a  March 10  letter  from  the                                                               
Anchorage Downtown Partnership supporting the bill.                                                                             
                                                                                                                                
3:47:17 PM                                                                                                                    
CHAIR OLSON  closed public  testimony and asked  the will  of the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR  KOOKESH  moved to  report  HB  156 from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no  objection, HB 156  moved from the Senate  Community and                                                               
Regional Affairs Standing Committee.