04/05/2012 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

               HB 314-ALASKA RAILROAD LAND LEASES                                                                           
                                                                                                                                
4:09:52 PM                                                                                                                    
CHAIR OLSON announced the consideration of HB 314.                                                                              
                                                                                                                                
4:10:06 PM                                                                                                                    
ANNA LATHAM,  Staff for Representative  Kurt Olson,  Alaska State                                                               
Legislature, said HB  314 would extend the time  period for which                                                               
the  Alaska Railroad  Corporation  (ARC) may  lease land  without                                                               
reserving the  right to  terminate the lease.  She said  the bill                                                               
would extend the  maximum ARC property lease terms  from 55 years                                                               
to 95 years.                                                                                                                    
                                                                                                                                
She said railroads have historically  owned large parcels of land                                                               
which  they  lease  to  generate  revenue.  She  said  ARC  owned                                                               
approximately 36,000  acres with 260 long-term  leases accounting                                                               
for 2,000  leased acres.  She said  out of  the 36,000  acres, 38                                                               
percent of the  land was devoted to right-of-way,  12 percent was                                                               
used for  operations and the  remaining 50 percent  was available                                                               
for lease.                                                                                                                      
                                                                                                                                
She said  ARC was a state  owned entity with an  economic mandate                                                               
for  statewide development  and longer  lease terms  would be  in                                                               
line with that directive. She  said longer leases would encourage                                                               
high  value  building  construction by  assuring  developers  and                                                               
financers that  developments would retain their  value for future                                                               
buyers.                                                                                                                         
                                                                                                                                
She  said standard  leases would  not be  95 years  and extending                                                               
terms was  at the discretion of  the ARC board of  directors. She                                                               
said HB 314  had received wide spread support  from lease holders                                                               
and multiple  municipalities, such  as Anchorage,  Valdez, Seward                                                               
and Whittier.                                                                                                                   
                                                                                                                                
4:12:40 PM                                                                                                                    
JIM KUBITZ,  Vice President, Real  Estate and  Facilities, Alaska                                                               
Railroad Corporation, said  he had no comments  and was available                                                               
to answer questions.                                                                                                            
                                                                                                                                
4:12:55 PM                                                                                                                    
CHAIR OLSON said HB 314 would be set aside.