04/14/2009 09:00 AM Senate STATE AFFAIRS

          HB 156-ALLOWING CERTAIN LANDFILL FEE WAIVERS                                                                      
                                                                                                                                
CHAIR MENARD announced the consideration of HB 156.                                                                             
                                                                                                                                
9:39:15 AM                                                                                                                    
REPRESENTATIVE BOB LYNN, Alaska  State Legislature, Sponsor, said                                                               
HB  156 amends  Alaska  statute  to permit  --  not  require -  a                                                               
municipality to waive the tipping  fee at landfills for materials                                                               
from  renovating  deteriorated  properties.  It  is  good  public                                                               
policy and  won't cost  the state  a dime. It  will make  it more                                                               
economically feasible  to renovate dilapidated properties  to the                                                               
benefit of communities.                                                                                                         
                                                                                                                                
MARK  MARLOW, Contractor/Developer,  Anchorage, said  the genesis                                                               
of  HB 156  was a  local ordinance  in the  Fairbanks North  Star                                                               
Borough  to assist  in a  renovation of  a deteriorated  downtown                                                               
property. The  local assembly passed  an ordinance for  a tipping                                                               
fee waiver, but it may  have been challengeable. The solution was                                                               
"to define deteriorated  property in AS 29.35 as  it's defined in                                                               
AS  29.45 to  create  a class  of property  that  is eligible  to                                                               
receive  these  waivers."   Municipalities  aren't  obligated  to                                                               
extend this benefit but will be able to with this bill.                                                                         
                                                                                                                                
9:43:37 AM                                                                                                                    
SHAWN  EVANS,  Realtor,  Alaska Commercial  Property,  Fairbanks,                                                               
urged  the passage  of  HB 156.  It makes  projects  like this  a                                                               
little more feasible. The Polaris Hotel  has been a blight on the                                                               
city of  Fairbanks; it is an  eyesore and has vagrants.  The bill                                                               
will help  generate a little  more life into  downtown Fairbanks.                                                               
It will not cost the state anything.                                                                                            
                                                                                                                                
CHAIR MENARD asked if the municipality would lose revenue.                                                                      
                                                                                                                                
REPRESENTATIVE LYNN  said obviously  they would lose  the tipping                                                               
fee,  but they  will be  renovating  property so  he assumes,  by                                                               
adding to the tax roll, it will be positive in the end.                                                                         
                                                                                                                                
CHAIR MENARD asked if a homeowner can get a waiver.                                                                             
                                                                                                                                
9:46:08 AM                                                                                                                    
REPRESENTATIVE  LYNN said  the bill  precludes homeowners;  it is                                                               
limited to deteriorated commercial property.                                                                                    
                                                                                                                                
CHAIR  MENARD noted  that in  Canada property  taxes are  reduced                                                               
when  someone improves  their property.  It  is frustrating  that                                                               
Alaska increases the assessment when improvements are made.                                                                     
                                                                                                                                
REPRESENTATIVE LYNN  said the  bill includes  commercial property                                                               
and residential buildings with at  least eight units, and it must                                                               
meet  one of  the following  requirements: within  the last  five                                                               
years  it  has been  subject  to  environmental remediation;  the                                                               
property is  vacated, condemned, or demolished;  the structure is                                                               
not less  than 15  years old;  or is  located in  a deteriorating                                                               
area as determined by the municipality.                                                                                         
                                                                                                                                
CHAIR MENARD said  Senator Paskvan provided her  with the statute                                                               
that has a clear definition of deteriorated property.                                                                           
                                                                                                                                
SENATOR FRENCH said  he supports the bill, but  the definition is                                                               
somewhat   remarkable.  "It   basically   means  all   commercial                                                               
property,  no matter  what its  state of  construction. It  could                                                               
have been built  yesterday." It refers to "real  property that is                                                               
commercial property not used for residential purposes."                                                                         
                                                                                                                                
SENATOR  PASKVAN  said  the  language goes  on  to  list  certain                                                               
requirements, [which Representative Lynn just listed.]                                                                          
                                                                                                                                
9:49:47 AM                                                                                                                    
SENATOR  FRENCH  said  he  thinks it  refers  to  all  commercial                                                               
property.  Then  he said  he  could  read  it another  way.  "I'm                                                               
tending now to see it Senator Paskvan's way."                                                                                   
                                                                                                                                
SENATOR  PASKVAN  said it  defines  an  eight-plex (or  more)  as                                                               
commercial.  Within  that  category of  commercial  property  the                                                               
building needs to meet those requirements.                                                                                      
                                                                                                                                
CHAIR MENARD  said she appreciates that  a building has to  be at                                                               
least five years old.                                                                                                           
                                                                                                                                
SENATOR PASKVAN said it refers to having been subject to an                                                                     
order in the last five years - meaning that it is condemned,                                                                    
demolished, or vacated. It can't be less than 15 years old.                                                                     
                                                                                                                                
9:51:38 AM                                                                                                                    
SENATOR FRENCH moved to report HB 156 from committee with                                                                       
individual recommendations and attached fiscal note(s). There                                                                   
being no objection, HB 156 moved out of committee.