02/25/2014 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

         HB 223-MUNI TAX EXEMPTION: MIL. FACILITY ZONE                                                                      
                                                                                                                                
3:35:46 PM                                                                                                                    
CHAIR MICCICHE announced that today is the second hearing on HB
.                                                                                                                            
                                                                                                                                
3:36:01 PM                                                                                                                    
REPRESENTATIVE STEVE THOMPSON, Alaska State Legislature, Juneau,                                                                
Alaska, HB 223 sponsor. He announced to the committee that Ms.                                                                  
Pierson will provide an overview of HB 223.                                                                                     
                                                                                                                                
3:36:11 PM                                                                                                                    
JANE  PIERSON,  Staff,   Representative  Thompson,  Alaska  State                                                               
Legislature,  Juneau,  Alaska;  said   HB  223  gives  permissive                                                               
authority for local  governments to seek up to ten  years of full                                                               
or partial property tax exemptions  in the Military Facility Zone                                                               
(MFZ). She said the MFZ  property tax exemptions would create and                                                               
support   industry,   development,   educational,   or   training                                                               
opportunities related  to defense  activities in Alaska.  She set                                                               
forth that the  flexibility in HB 223 allows  each community with                                                               
a  MFZ to  provide broad  authority  for their  exemptions to  be                                                               
specifically defined to give maximum  benefits to the region. She                                                               
pointed out  that HB  223 will  expand on  HB 316.  She explained                                                               
that  HB 316  was passed  in  the 27th  Legislature and  provided                                                               
statutory authority  to the Department  of Military  and Veterans                                                               
Affairs to establish MFZs. She  summarized that HB 223 provides a                                                               
tool for  local governments in military  installations to support                                                               
economic  development of  projects  that  enhance the  military's                                                               
operations, missions,  and the economic development  goals of the                                                               
community.                                                                                                                      
                                                                                                                                
CHAIR MICCICHE announced that public  testimony remains open from                                                               
the previous committee meeting.                                                                                                 
                                                                                                                                
3:37:53 PM                                                                                                                    
AARON  GRIFFIN, Assembly  Member,  Kodiak  Island Borough  (KIB),                                                               
Kodiak,  Alaska; announced  that KIB  is very  interested in  the                                                               
prospects that  HB 223 will provide  the borough. He said  KIB is                                                               
currently  in  the  process of  formalizing  its  application  to                                                               
create a  MFZ. He  detailed that  an MFZ will  allow access  to a                                                               
possible  joint housing  venture with  the Coast  Guard base.  He                                                               
said  currently  the Coast  Guard  is  having  a very  hard  time                                                               
positioning  additional resources  in Kodiak  simply because  the                                                               
city  does not  have  access  to housing  for  the Coast  Guard's                                                               
personnel. He explained that every  C-130 Hercules aircraft comes                                                               
with  close  to 30  men,  every  H-60  helicopter comes  with  12                                                               
people, and a  Coast Guard Cutter comes with  over 100 personnel.                                                               
He asserted that having access to  any vehicle that will help KIB                                                               
build  infrastructure is  a highly  desirable. He  noted a  joint                                                               
housing venture project at  Joint Base Elmendorf-Richardson where                                                               
the contractor actually owns the  property. He remarked about the                                                               
prospects provided by HB 223 in  giving a break in property taxes                                                               
for an area that is currently  not generating revenue for KIB and                                                               
would provide a huge incentive  to draw in contractors. He stated                                                               
that KIB is wholeheartedly in support of HB 223's prospects.                                                                    
                                                                                                                                
CHAIR MICCICHE asked if anyone would like to testify.                                                                           
                                                                                                                                
3:39:40 PM                                                                                                                    
CHAIR MICCICHE closed public testimony.                                                                                         
                                                                                                                                
CHAIR MICCICHE asked if there is a motion to move HB 223.                                                                       
                                                                                                                                
3:39:52 PM                                                                                                                    
SENATOR GIESSEL moved to report HB 223, version 28-LS0993\A from                                                                
committee with individual recommendations and attached zero                                                                     
fiscal note.                                                                                                                    
                                                                                                                                
3:40:06 PM                                                                                                                    
CHAIR MICCICHE announced that without objection, [HB 223 moved                                                                  
from committee.]