Legislature(2005 - 2006)CAPITOL 124
03/24/2006 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HB57 | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 57 | TELECONFERENCED | |
| + | SB 55 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 57-SALE OF STATE LAND TO ADJACENT LANDOWNERS 1:09:30 PM CO-CHAIR RAMRAS announced that the first order of business would be SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 57, "An Act relating to the sale of certain state land to adjacent landowners." REPRESENTATIVE BRUCE WEYHRAUCH, Alaska State Legislature, sponsor, informed the committee that SSHB 57 was introduced to spur the State of Alaska to purchase more federal land from the federal government. However, information from the Department of Law and the Department of Natural Resources made moot the purpose of the bill. Still, the legislation came to the attention of Mr. Schnabel who owns a gold mine in the Haines area. Essentially, SSHB 57 will help Mr. Schnabel to proceed with his operation while the state would receive fair market value for the land. 1:12:47 PM REPRESENTATIVE ELKINS commented that although SSHB 57 may appear to be special legislation, it might help someone else in the future. 1:13:14 PM REPRESENTATIVE CRAWFORD opined that the problem with special interest legislation is that it provides an advantage to someone to the disadvantage of someone else. Although SSHB 57 only applies to one individual at this point, it doesn't disadvantage anyone else. Therefore, Representative Crawford said that he didn't view SSHB 57 as special interest legislation. Representative Crawford further opined that Mr. Schnabel should be able to purchase the property he is working. 1:14:20 PM REPRESENTATIVE CRAWFORD asked if there are any ways that what SSHB 57 proposes could be abused. REPRESENTATIVE WEYHRAUCH said he didn't know. 1:14:43 PM DICK MYLIUS, Director, Division of Mining, Land and Water, Department of Natural Resources, said he has worked with the sponsor on SSHB 57. He explained that the route taken by the legislation was chosen to address Mr. Schnabel's situation because Mr. Schnabel expressed interest in purchasing a parcel of land that the state couldn't sell to him under existing law. Mr. Mylius explained that in most instances when state land is sold, it's through a competitive process that provides all Alaskans an equal chance to purchase it. However, this parcel has two problems with offering it to the general public. First, the land is totally surrounded by land owned by Mr. Schnabel and thus there is no legal access to the parcel. Second, there are mining claims under the property, and if the parcel were sold a split estate situation would result. The aforementioned is generally avoided. Therefore, SSHB 57 allows the land to be sold under a preference rights sale, which allows DNR to offer the land to one individual due to that individual's specific interest in the land. Mr. Mylius opined that the situation SSHB 57 addresses could theoretically apply to other situations because state land surrounded by land owned by one individual is of very little value to the public and that state land can't be sold through the state's regular sale programs without access to the land. Mr. Mylius concluded by characterizing SSHB 57 as a good solution. 1:17:16 PM REPRESENTATIVE SEATON asked if the access issue will be considered in the fair market value. MR. MYLIUS said an appraiser will review the value of surrounding lands, although the appraiser will likely reduce the value of land such as Mr. Schnabel's because of the lack of legal access. He said that the value would be determined through a fair market appraisal. 1:18:17 PM REPRESENTATIVE SEATON asked if there are other state parcels in a similar situation. MR. MYLIUS said that although he doesn't know of specific parcels, he said he is sure such parcels exist. Mr. Mylius said this situation is unusual because the state acquired this parcel under the 1959 state law requiring people to register their parcels and if they didn't, then the state foreclosed on the parcel. The parcel under discussion is a foreclosed mining claim. 1:19:24 PM JOHN SCHNABEL, landowner, informed the committee that he wants to purchase the 13 acres of land without an outcry auction because anyone can bid for a parcel of land that he has elected to lease or purchase without having to pay the upfront costs for the survey, legal research, advertising, title insurance, et cetera. He further informed the committee that he is in the process of developing the 80 acres he owns that surrounds the state's parcel into a tourist destination. Mr. Schnabel related that to date he has invested over $1 million and he needs the state's parcel in order to avoid future conflict. He mentioned that he has no problem complying with the R.S. 2477 [easement]. He concluded by expressing his hope that the legislature could make it possible to transfer the land this year. 1:21:17 PM REPRESENTATIVE SEATON asked if the R.S. 2477 easement is something that the department normally ensures occurs during the transfer of state lands. MR. MYLIUS replied yes. He clarified that if it's determined that there is a R.S. 2477 easement, then the desire would be to reserve it for the State of Alaska. In further response to Representative Seaton, Mr. Mylius confirmed that conditions to that effect could be attached to the sale. REPRESENTATIVE ELKINS moved to report SSHB 57 out of committee with individual recommendations and the accompanying fiscal notes. Hearing no objection, SSHB 57 was passed out of the House Resources Standing Committee.
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