04/15/2019 09:00 AM Senate FINANCE

SENATE BILL NO. 95                                                                                                            
                                                                                                                                
     "An Act approving the transfer of certain Alaska                                                                           
     Railroad Corporation land; and providing for an                                                                            
     effective date."                                                                                                           
                                                                                                                                
9:09:42 AM                                                                                                                    
                                                                                                                                
RYNNIEVA MOSS, STAFF, SENATOR JOHN COGHILL, explained the                                                                       
bill. She outlined the sections and subsections of the                                                                          
bill.                                                                                                                           
                                                                                                                                
9:11:29 AM                                                                                                                    
                                                                                                                                
SENATOR JOHN  COGHILL, SPONSOR,  stated that the  legislation                                                                   
put Whittier  Manor into private  hands and put  railroad out                                                                   
of  a  conflict with  the  city.  He  felt that  the  private                                                                   
ownership  would increase the  tax base,  and the  ability to                                                                   
improve the building.                                                                                                           
                                                                                                                                
Co-Chair von  Imhof stated that  there was invited  testimony                                                                   
prepared to present to the committee.                                                                                           
                                                                                                                                
9:12:50 AM                                                                                                                    
                                                                                                                                
BARB   BLAKELEY,   VICE-PRESIDENT,   WHITTIER   MANOR   CONDO                                                                   
ASSOCIATION, WHITTIER  (via teleconference), shared  that she                                                                   
owned  a  condo  in  Whittier  Manor.  She  stated  that  the                                                                   
property was  owned by the  Alaska Railroad Corporation,  and                                                                   
the forty  year lease  was set to  expire December  31, 2019.                                                                   
She stated that  there had been an attempt for  many years to                                                                   
purchase  the property,  but the  matter  was complicated  by                                                                   
the master  lease agreement  that the  railroad had  with the                                                                   
City of  Whittier, whereby  when some  of the leases  expire,                                                                   
the management  of the leases  would be assumed by  the city.                                                                   
She stated that  a long-term lease was not  possible, because                                                                   
the  city's master  lease  was  set to  expire  in 2033.  She                                                                   
stressed  that  it  was  a  time   of  uncertainty,  and  the                                                                   
property values  were declining. She stressed  that financing                                                                   
was  unavailable for  units for  sale, because  of the  lease                                                                   
agreement.  She shared  that there was  an agreement  reached                                                                   
for the railroad to sell the land  to the condo association.                                                                    
                                                                                                                                
Co-Chair von  Imhof shared  that there  were two people  from                                                                   
the Alaska Railroad Corporation available for questions.                                                                        
                                                                                                                                
Co-Chair von Imhof OPENED public testimony.                                                                                     
                                                                                                                                
9:16:30 AM                                                                                                                    
                                                                                                                                
DUTCH LUCORE,  WHITTIER MANOR  CONDO ASSOCIATION,  MATSU (via                                                                   
teleconference),  spoke in  support  of the  bill. He  echoed                                                                   
the comments from Ms. Blakeley.                                                                                                 
                                                                                                                                
9:17:31 AM                                                                                                                    
                                                                                                                                
BRENT  COLE,  WHITTIER  MANOR  CONDO  ASSOCIATION,  ANCHORAGE                                                                   
(via teleconference), spoke in support of the bill.                                                                             
                                                                                                                                
Co-Chair von Imhof CLOSED public testimony.                                                                                     
                                                                                                                                
9:18:55 AM                                                                                                                    
                                                                                                                                
Senator Micciche reviewed the fiscal note.                                                                                      
                                                                                                                                
SB 95 was HEARD and HELD in committee for further                                                                               
consideration.