Legislature(2025 - 2026)BUTROVICH 205
05/15/2025 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB191 | |
| HJR14 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 191 | TELECONFERENCED | |
| *+ | HJR 14 | TELECONFERENCED | |
SB 191-TRANSFER OF RAILROAD LAND TO WHITTIER
1:41:52 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO.
191 "An Act approving the transfer of land owned by the Alaska
Railroad Corporation to the City of Whittier; and providing for
an effective date."
1:42:07 PM
SENATOR CATHY GIESSEL, District E, Alaska State Legislature,
Juneau, Alaska, advanced to slide 2 and gave a brief overview of
SB 191. She surmised that an agreement transferring Alaska
Railroad Corporation (ARRC) lands to the City of Whittier would
surprise some individuals.
1:42:43 PM
SENATOR GIESSEL advanced to slide 3 and gave a brief overview of
Whittier:
[Original punctuation provided.]
Whittier Facts
• Population of 272
• Built during WWII
• Ice-Free Deep-Water Port for year -round access
• Gets thousands of visitors a year
• Popular cruise, fishing and outdoor recreation
launch point
1:43:07 PM
SENATOR GIESSEL advanced to slide 4 and explained that ARRC owns
85 percent of the developable land surrounding Whittier. She
said that Begich Towers was built during WWII and houses the
majority of Whittier's population. Slide 4 contains an aerial
image of Whittier with overlays to indicate land lots and the
ARRC Reserve/Lands Boundary.
1:43:32 PM
SENATOR GIESSEL advanced to slide 5 and continued to discuss the
proposed land transfer. She emphasized that the City of Whittier
wants to grow. She explained that Huna Totem Corporation is
building a large dock at the far end of the Whittier Harbor,
which would increase local tourism. The Whittier Tunnel provides
additional opportunities for growth. Slide 5 contains a map
depicting ARRC's areas of interest (AOI). This land transfer
would benefit Whittier by providing the opportunity for the city
to grow its economic base. In turn, this economic growth would
benefit the entire state.
1:44:09 PM
SENATOR GIESSEL advanced to slide 6:
Original punctuation provided.]
Timeline
November 1998
Master lease signed by ARRC and the City of Whittier
March 2021
Whittier passes resolution requesting non-essential
lands from the Railroad.
March 2024
Whittier has initial discussions with Alaska Railroad
Corporation (ARRC)
October 2024
Memorandum of Understanding signed by ARRC and City of
Whittier.
SENATOR GIESSEL emphasized that the City of Whittier and ARRC
have reached a land transfer agreement for approximately 85
acres. This land is nonessential to rail operations. ARRC would
maintain control of railroad infrastructure, while the City of
Whittier (as landowner) could build housing, improve the harbor,
etc. She emphasized that there is strong local support for the
transfer. She stated that, despite the agreement between the
City of Whittier and ARRC, ARRC cannot transfer land without
legislative approval. She listed the various ways that committee
members are familiar with ARRC. She emphasized that the
agreement would have a positive impact and opined that SB 191 is
a positive bill that displays collaboration and agreement on the
part of ARRC.
1:45:47 PM
SENATOR STEDMAN clarified that his district has a railroad
easement but does not have a railroad.
1:46:03 PM
SENATOR KIEHL clarified that the railroad in his district is not
ARRC.
1:46:15 PM
SENATOR TOBIN asked whether any of the land that ARRC would
transfer has been contaminated, and if the citizens of Whittier
would be responsible for remediation.
1:46:43 PM
SENATOR GIESSEL deferred the question.
1:47:03 PM
SENATOR TOBIN noted that Alaska is located on Indigenous lands
and asked whether the land might require archeological survey.
She pointed out that there may be construction prohibitions if
an archeological survey is not completed prior to beginning
construction.
1:47:37 PM
PAIGE BROWN, Staff, Senator Cathy Giessel, Alaska State
Legislature, Juneau, Alaska, emphasized that the City of
Whittier wants to grow; however, this is hindered by a lack of
developable land.
1:48:07 PM
CHAIR BJORKMAN announced invited testimony on SB 191.
1:48:19 PM
JACKIE WILDE, City Manager, City of Whittier, Whittier, Alaska,
provided a brief history of the land agreement. She said the
City of Whittier has been working closely with ARRC for the past
1.5 years to reach an agreement. The land transfer includes land
that is nonoperational for ARRC but is core infrastructure for
the City of Whittier. She briefly discussed ARRC's terminal
master plan and how the reduction of ARRC-owned land would
ensure the continuation of that plan. She said the City of
Whittier is looking forward to the future of the terminal master
plan. In response to the question related to the need for an
archeological survey, she explained that the City of Whittier
was built for the military and suggested that because of the
land's military history, an archeological survey would not be
required. She noted that the City of Whittier has begun a
waterfront economic development plan and has also entered into
an agreement with Huna Totem Corporation for the new double-
berth cruise ship dock. The City of Whittier is looking forward
to gaining the ability for future growth and economic
development.
1:50:25 PM
SENATOR STEDMAN asked whether the municipality would subdivide
and sell the transferred land.
1:50:39 PM
MS. WILDE replied that most of the land is already leased. Those
leases would continue. She directed attention to a 39-acre
parcel adjacent to Glacier Street that could be developed
through private partnerships to build multi-family units. The
bay section would allow the City of Whittier to create
recreation facilities and would bring additional economic
development with cruise ship agencies.
1:51:44 PM
SENATOR STEDMAN asked if the deed contains any restrictions.
1:51:59 PM
MS. WILDE replied no. She explained that the master lease
contains restrictions and the transfer of land would eliminate
the master lease (and its restrictions).
1:52:10 PM
SENATOR STEDMAN clarified his question. He asked whether the
deed includes restrictions that would inhibit the City of
Whittier's ability to sell the land.
1:52:23 PM
MS. WILDE answered not on the 39-acre parcel. She shared her
understanding that the only restrictions contained in the lease
apply to the City's tank farm property. She said lease
restrictions have not been discussed in negotiations and talks
with ARRC.
1:52:45 PM
SENATOR STEDMAN commented that development is often inhibited on
leased land. He encouraged the City of Whittier to consider this
moving forward. He stated that land sales result in greater
development and are often more beneficial to the community (as
opposed to land that is leased to developers by the
municipality).
1:53:00 PM
REPRESENTATIVE MCCABE joined the meeting.
1:53:55 PM
MS. WILDE concurred and said the majority of Whittier's land is
non-taxable. She indicated that properties would be developed
and sold in the future. While the City of Whittier does not want
to be in the business of real estate, waterfront leases are
important to the city's economy and future growth.
1:54:38 PM
CHRISTY TERRY, Vice President, Real Estate, Alaska Railroad
Corporation (ARRC), Anchorage, Alaska, stated that ARRC has
worked closely with the City of Whittier for the past 1.5 years
to create a land transfer that holds up the interest of both
parties. SB 191 is an essential step in that process. She
briefly described the process, which included public work
sessions and regular council meetings, among others. ARRC's goal
is to reach an agreement that supports economic development
while enhancing transportation infrastructure in the region. In
response to Senator Tobin's questions about potential
remediation and whether an archeological survey may be needed,
she said SB 191 is an essential step in the process and would
allow ARRC and the Whittier City Council to work through the
details, which would include reviewing these types of questions.
1:56:13 PM
SENATOR KIEHL recalled a small land sale from ARRC to the City
of Whittier within the past 5-6 years. He asked the parcel size
and price per acre for that sale.
1:56:34 PM
MS. TERRY replied that she did not recall and offered to follow
up with this information. She said that ARRC has worked closely
with the City of Whittier on the Delong Dock transfer and
wondered if this could be the sale he is referring to.
1:56:57 PM
SENATOR KIEHL recalled that the parcel of land was adjacent to
an existing multi-family building. He noted that SB 191 requires
a transfer at the fair market value (FMV) and asked whether
there is a rough sense of the value of the 85 acres of land.
1:57:33 PM
MS. TERRY replied that the value is roughly $7 million.
1:57:40 PM
SENATOR SHOWER joined the meeting.
1:57:46 PM
SENATOR KIEHL asked about the per-acre value.
1:58:03 PM
MS. TERRY replied that she could provide appraisals for each
lot.
1:58:38 PM
CHAIR BJORKMAN said that information could be provided at a
later time.
1:59:12 PM
SENATOR GIESSEL said the requested information would be
provided.
1:59:21 PM
CHAIR BJORKMAN asked if SB 191 is time sensitive and whether a
particular timeframe would facilitate an advantage for one party
over the other.
1:59:37 PM
SENATOR GIESSEL replied that there is no urgent deadline.
1:59:53 PM
CHAIR BJORKMAN held SB 191 in committee.