Legislature(1997 - 1998)
05/05/1998 02:00 PM House FIN
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* first hearing in first committee of referral
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SENATE BILL NO. 281
"An Act relating to general grant land entitlements for
the City and Borough of Yakutat; and providing for an
effective date."
SENATOR JERRY MACKIE, SPONSOR, testified in support of SB
281. Senator Mackie read the sponsor statement. He noted
that SB 281 was introduced to complete the formation of the
Yakutat Borough and the land entitlements that the state
grants to support local government. Yakutat's petition to
incorporate as a borough in 1992 was considerably reduced in
size by the Local Boundary Commission. The land entitlement
for the new borough by the formula of 10% of "vacant,
unappropriated, and unreserved" (vuu) state lands was a mere
138 acres.
The City and Borough of Yakutat subsequently petitioned the
Local Boundary Commission to reclaim much of the area on its
northern boarder. In a reversal of its earlier decision,
the Local Boundary Commission approved the annexation, which
contains a substantial amount of state "vuu" lands. It is
estimated that if the annexed area had been included for the
original borough formation, the municipal land entitlement
would have amounted to 33,000 acres.
Senator Mackie observed that it has been a long established
policy for the state to assist the formation and operation
of local governments with generous grants of state land. He
maintained that SB 281 corrects the defects in the borough
formation process that resulted in such a small land
entitlement for the City and Borough of Yakutat by
increasing its entitlement to 21,500 acres. The bill also
gives additional authority to the Director of the Division
of Lands in the Department of Natural Resources to condition
and restrict any of the municipality's selections made under
this increased grant.
Senator Mackie reiterated that the City and Borough of
Yakutat only received 138 acres of land as an entitlement.
The original legislation would have granted a 30,000-acre
entitlement. This was reduced to 21,500 in the Senate
Community and Regional Affairs Committee. The Senate
Resource Committee reduced the entitlement to 8,552 acres.
The entitlement was increased back to 21,500 in the House
Community and Regional Affairs Committee. He emphasized
that the University of Alaska, Department of Natural
Resources, Department of Fish and Game and the regional
native corporation supported an entitlement of 21,500 acres.
He reviewed the selection process through the Division of
Land in the Department of Natural Resources.
Co-Chair Therriault questioned if the Borough anticipates
selecting the log transfer site.
PAUL FUHS, LOBBYIST, CITY OF YAKATAT stated that the
community does plan to ask for the log transfer site. He
observed that there is no guarantee that the City's request
would be approved. He explained that no fee would be
charged to the agencies, University or to the Mental Health
Lands Trust during the lifetime of their cut. He stressed
that there would be reasonable fees for the University if
they receive more land.
In response to a question by Representative Martin, Mr. Fuhs
noted that there are approximately 800 individuals in the
Borough. Representative Martin compared entitlements to
other Boroughs. Senator Mackie emphasized that every
community is different and availability of state land must
be considered.
Representative Martin felt that the grant was too large.
Mr. Fuhs spoke in support of the entitlement. He observed
that Yakutat is no longer a single site school district. He
added that fishing and timber receipts are down.
Representative Davies spoke in support of the legislation.
He noted language allowing stipulations. Mr. Fuhs explained
that stipulations would be applied to alleviate concerns by
the Department of Fish and Game regarding habitat.
Representative Davis spoke in support of the legislation.
Co-Chair Therriault asked if the community's memorandum of
understanding with the Mental Health Trust differs from the
current one with the University of Alaska. Mr. Fuhs stated
that the memorandum with the Mental Health Trust is
different than the memorandum with the University of Alaska.
He explained that the Mental Health Trust is a fee simple
title owner. The University would have to renegotiate for
additional property. Mr. Fuhs clarified that the City would
charge a reasonable rate on future operations. The City's
agreement with the Mental Health Trust is for free access
during the current period. A lease fee would be charged on
future cuttings based on an accessed value.
WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY
OF ALASKA spoke in support of the legislation. She noted
that the University is working on a memorandum of agreement
with the Borough. She estimated that they would reach
agreement in the next couple of days.
Senator Mackie stressed that the Borough wants to maintain a
good relationship with the University.
In response to a question by Representative Kohring, Mr.
Fuhs stated that the community supports land sale to private
holders.
Representative Mulder MOVED to report HCS CSSB 281 (CRA) out
of Committee with the accompanying fiscal note. There being
NO OBJECTION, it was so ordered.
HCS CSSB 281 (CRA) was REPORTED out of Committee with a "do
pass" recommendation and with a fiscal impact note by the
Department of Natural Resources.
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