Legislature(2001 - 2002)
02/08/2002 03:34 PM Senate RES
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 255-LAND EXCHANGES: GOLD CORD DEVELOPMENT CHAIRMAN TORGERSON announced SB 255 to be up for consideration. MR. JERRY BURNETT, staff to Senator Lyda Green, sponsor of SB 255, said the measure provides for legislative approval of an unequal land exchange between the State of Alaska and Gold Cord Development, Inc., and incorporates a proposed change to land trade statutes to remove legislative approval for unequal land exchanges with a value of less than $5 million. He explained: Alaska State Parks has been working since 1978 to develop an opportunity for private reuse and management of historic buildings at Independence Mine State Park. To facilitate road access to the underground mine tour, the State of Alaska sought an exchange with Gold Cord Inc., an owner of a critical section of the road. The state held an easement across the property that was not of sufficient size to accommodate anticipated reconstruction to provide for bus access. In addition, Gold Cord held a federal mining claim that extended into the existing park boundaries. The exchange has been agreed to by all parties. The state trades away no land, but provides the process by which Gold Cord can receive fee title to 19 acres of land valued at $63,000 currently held by Gold Cord as federal mining claims. The state receives about six acres of land valued at$68,500 from Gold Cord. Because the state brought no land to trade and because final values are not equal, the transaction requires legislative approval. The difference here is $5,500. The Alaska Legislature has approved another unequal value exchange at the Independence Mine State Park between the State of Alaska and Alaska Hard Rock Inc. for access in the year 2000. In addition to the Gold Cord trade approval, SB 255 allows for administrative approval of land trades with a value of under $5 million. Currently by statute, unequal exchanges that do not benefit the State of Alaska are not allowed. Any land exchange, whether equal or unequal in value, involves only willing participants. Under existing statute, even though all parties agree and the state comes out ahead, unequal exchanges must still receive legislature approval. Any exchange, equal or unequal, over $5 million in state value, would still come before the legislature for approval. Since the exchange must benefit the state in any case, unequal value exchanges under the $5 million level could be accomplished administratively to enhance efficiency under the terms of this legislation. CHAIRMAN TORGERSON asked why "the environs" was deleted on page 2, lines 17 and 18. MR. BURNETT answered that any land exchange must be a benefit to the State of Alaska, whether it's equal or unequal in value. In order to enhance the efficiency of the Department of Natural Resources, they requested a section to allow administrative approval of unequal land exchanges. This is the policy decision for the legislature. CHAIRMAN TORGERSON asked what would happen if they delete that section and whether that would accomplish what Senator Green wants to do. MR. RON SWANSON, Director, Community Development, Mat-Su Borough, supported SB 255. He stated, "We feel it fully compliments our plan for ski resort development that's located close by. It will make the area a very good tourist destination facility." He said the Borough Assembly in a resolution it passed on January 15 endorsed the exchange. MS. CAROL CARROLL, Director, Administrative Services, DNR, said DNR put the section on administrative approval for land values under $5 million before the legislature because it has done a couple of small value exchanges and found administrative efficiencies in doing so. CHAIRMAN TORGERSON asked her if she supported the bill without that section. She said she did. SENATOR HALFORD moved to delete Section 2 [Amendment 1]. SENATOR ELTON asked if the net effect, in future cases in which the value is greater to the state than to the other land owner if Section 2 is not deleted, would be to give DNR the administrative latitude to make a decision on its own without coming to the legislature. SENATOR HALFORD said that is correct, but added that the other values to the state may be subjective. There was no further discussion and Amendment 1 was adopted. SENATOR WILKEN moved to pass CSSB 255 (RES) from committee with individual recommendations and its zero fiscal note. There were no objections and it was so ordered.
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