Legislature(2017 - 2018)BELTZ 105 (TSBldg)

01/31/2017 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 9 MILITARY FACILITY ZONES TELECONFERENCED
Heard & Held
*+ SB 39 MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS TELECONFERENCED
Heard & Held
                 SB   9-MILITARY FACILITY ZONES                                                                             
                                                                                                                                
[CHAIR BISHOP announced the consideration of SB 9.]                                                                             
                                                                                                                                
3:39:34 PM                                                                                                                    
SENATOR JOHN COGHILL, Alaska State  Legislature, sponsor of SB 9,                                                               
related that  Fairbanks is host  to two military bases  that have                                                               
approved  military  facility  zones. Setting  up  these  facility                                                               
zones  entailed the  Department  of Military  & Veterans  Affairs                                                               
(DMVA) approving a comprehensive plan  that takes more time to go                                                               
through than  a zoning ordinance.  This makes it a  less valuable                                                               
tool for this  purpose. So, SB 9 proposes that  the DMVA does not                                                               
have  to  approve this  comprehensive  plan.  He said  these  two                                                               
issues in SB 9 and SB 39 have  a huge impact on his district, but                                                               
they would be helpful anywhere else  in the state that deals with                                                               
military issues.                                                                                                                
                                                                                                                                
3:43:21 PM                                                                                                                    
CHAD HUTCHISON,  staff to Senator  Coghill, said SB 9  deals with                                                               
military facility zones related to  the decision to place 54 F-35                                                               
aircraft  at  Eielson   Air  Force  Base.  This   bill  is  about                                                               
maximizing  the   benefits  for  the  local   community  and  the                                                               
surrounding  areas next  to  a military  installation  - more  is                                                               
going on than just the F-35s - particularly in the Interior.                                                                    
                                                                                                                                
He said some  of the action points in the  presentation came from                                                               
the Fairbanks  Tiger Team made  up of Senator  Murkowski, Senator                                                               
Sullivan, and  Congressman Young's  office, Fairbanks  North Star                                                               
Borough Mayor Karl Kassel, Fairbanks  Mayor Jim Matherly, and the                                                               
North Pole  Mayor, Bryce Ward. Other  representatives include the                                                               
Chamber  of  Commerce  and  the  Fairbanks  Economic  Development                                                               
Corporation headed by Jim Dawson.                                                                                               
                                                                                                                                
3:45:19 PM                                                                                                                    
MR. HUTCHISON  said the F-35 is  a thirsty aircraft and  a lot of                                                               
communities will  benefit by having refueling  facilities for it.                                                               
He added that  the military industry is an important  part of the                                                               
Fairbanks economy generally,  but it also affects  other areas of                                                               
the state.  The ones  getting the attention  now are  Eielson Air                                                               
Force Base  and Fort  Wainwright that  just received  the Apaches                                                               
and  the  Grey  Eagle  Squadron, which  is  the  unmanned  aerial                                                               
vehicle that  houses the Long Range  Discrimination Radar (LRDR).                                                               
Fort  Greely also  has  14 new  missile  interceptors. All  these                                                               
facilities will  be a  potential benefit  to Delta,  to Anderson,                                                               
Fairbanks,  North Pole,  and a  lot of  communities around  Joint                                                               
Base Elmendorf-Richardson (JBER).                                                                                               
                                                                                                                                
He  displayed slides  of planned  military construction  projects                                                               
given to them  by the Army Corps of Engineers  (ACE) saying their                                                               
number illustrates the  need to move quickly, because  there is a                                                               
short window in 2017 in which to maximize the benefits.                                                                         
                                                                                                                                
3:47:40 PM                                                                                                                    
He explained  that military facility  zones are  designated areas                                                               
established by  the Department of Military  and Veteran's Affairs                                                               
(DMVA), usually  close to a  military installation, with  the key                                                               
purpose of ensuring that the  industrial and economic development                                                               
capacities in the surrounding area  are maximized to the greatest                                                               
extent  possible. If  the project  is  deemed to  be helping  the                                                               
greater  military mission,  it  can open  up  public and  private                                                               
financing, credit guarantee programs, and grants in those zones.                                                                
                                                                                                                                
MR.  HUTCHISON explained  that  the DMVA  considers  a number  of                                                               
different   factors   in   the  applications   from   the   local                                                               
communities; one of  them has to do with  the comprehensive plan.                                                               
The  last   time  the   Fairbanks  North   Star  Borough   did  a                                                               
comprehensive  plan  was  in  2005,  which  was  before  military                                                               
facility  zones were  analyzed.   The problem  with comprehensive                                                               
plans is that they are resource-intensive  and take a lot of time                                                               
and the window of opportunity  now is very limited. The suggested                                                               
change adds the  four words: "or local  zoning ordinance" because                                                               
they are  quicker than comprehensive  plans and will be  a better                                                               
fit for  the window of time  needed to maximize this  benefit for                                                               
the  $561 million  allocated  military  construction spending  in                                                               
September 2016.                                                                                                                 
                                                                                                                                
3:50:43 PM                                                                                                                    
CHAIR BISHOP said he would hold SB 9 for a future hearing.                                                                      
                                                                                                                                
3:51:58 PM                                                                                                                    
JIM   DODSON,   Fairbanks   Economic   Development   Corporation,                                                               
Fairbanks,  Alaska, said  he supported  SB 9.  Not only  does the                                                               
current  statutory authority  cause  undue  time constraints,  he                                                               
said, but  it also causes  money constraints  that no one  has to                                                               
take.  In  an effort  to  be  more  efficient and  diversify  the                                                               
economy, they support the bill.                                                                                                 
                                                                                                                                
3:52:54 PM                                                                                                                    
SENATOR GARDNER asked if there is any opposition to this bill.                                                                  
                                                                                                                                
MR. HUTCHISON said he wasn't aware of any.                                                                                      
                                                                                                                                
3:53:22 PM                                                                                                                    
JEFF STEPP,  staff to Karl  Kassel, Mayor of the  Fairbanks North                                                               
Star  Borough, Fairbanks,  Alaska, supported  SB 9.  He said  the                                                               
statutory  authority for  municipalities and  the DMVA  to create                                                               
military facility  zones was  established in HB  316 by  the 27th                                                               
Legislature in 2012.  By design these zones  are designated areas                                                               
in  close proximity  to a  military installation  where increased                                                               
industrial    activity,     economic    development,    workforce                                                               
development,   or  training   and  educational   activities  will                                                               
directly enhance the base's ability  to fulfill its mission. That                                                               
is what makes them so appealing to a community.                                                                                 
                                                                                                                                
Promoting expansion of infrastructure,  such as Civil Defense and                                                               
Homeland  Security,   can  encourage  increased   private  sector                                                               
activity near  these installations  opens the  door to  state and                                                               
federal  business  development  tax  credits,  loans,  and  other                                                               
funds. So,  military facility zones can  help facilitate economic                                                               
growth and  development in communities,  regions, and  the entire                                                               
State  of Alaska.  The synergy  created by  shared knowledge  and                                                               
leveraged resources  focused on  these common concepts  and goals                                                               
can  yield  greater  benefits  for both  the  community  and  the                                                               
military.                                                                                                                       
                                                                                                                                
MR. STEPP said the reason  adding the language about planning and                                                               
zoning to  this particular  legislation is  so important  is that                                                               
currently  a military  facility  zone must  be  determined to  be                                                               
consistent with  the comprehensive  plan for  the area  and those                                                               
have broad land use designations and  a wide variety of goals and                                                               
policies. Military facility zone  designation proposals are site-                                                               
specific  locations, which  are generally  smaller in  scale than                                                               
the  broad generalized  categories of  different types  of future                                                               
land  use listed  in comprehensive  plans. Site  selection for  a                                                               
military  facility   zone  is  intended   to  be   optimized  for                                                               
civilian/military interface and public/private partnerships.                                                                    
                                                                                                                                
He explained  that comprehensive  plans address  a wide  range of                                                               
land  use elements,  and many  Alaska  communities including  the                                                               
Fairbanks North  Star Borough  have plans  that are  outdated and                                                               
did  not anticipate  a land-use  type such  as military  facility                                                               
zone designation  and/or do not address  military facilities, and                                                               
sometimes not  even economic  development at  all. Unfortunately,                                                               
the process to  amend a comprehensive plan is lengthy  and can be                                                               
expensive and often difficult.                                                                                                  
                                                                                                                                
MR. STEPP  said that zoning,  however, is a regulatory  tool that                                                               
identifies the  appropriate use of  each specific parcel  of land                                                               
and  the applicable  process  for obtaining  a  land use  permit.                                                               
Zoning regulations are required to  be adopted in accordance with                                                               
local  comprehensive plans.  Zoning  is a  better, quicker,  more                                                               
specific  method   for  a  community   to  evaluate   a  specific                                                               
development  proposal,  a  building  site  plan,  or  a  military                                                               
facility zone by  applying the detailed standards  that are found                                                               
in both local  zoning regulations and the  military facility zone                                                               
legislation.  Greater  flexibility  in  how to  qualify  for  the                                                               
military facilities zone  designation provides communities around                                                               
the state  and the Fairbanks  North Star Borough with  more local                                                               
control to decide  the best location and  process for determining                                                               
compatibility.  That  is why  this  legislation  is important  to                                                               
them.                                                                                                                           
                                                                                                                                
3:58:04 PM                                                                                                                    
BOB DOLE, Deputy Commissioner, Department  of Military & Veterans                                                               
Affairs  (DMVA),  said he  supported  SB  9  and that  since  the                                                               
passage  of  the  original  bill  they  have  had  "exactly  zero                                                               
applicants for these  sorts of zones." They believe  the time and                                                               
expense  it takes  to get  one authorized  is why  Alaska doesn't                                                               
have  military facility  zones. This  measure provides  a way  to                                                               
make  it  happen  faster,  is an  opportunity  to  diversify  the                                                               
economy,  and  makes  Alaska's   bases  more  cost-effective  and                                                               
viable.                                                                                                                         
                                                                                                                                
3:58:53 PM                                                                                                                    
SENATOR MACKINNON joined the committee.                                                                                         
                                                                                                                                
CHAIR  BISHOP closed  public testimony  on SB  9 and  held it  in                                                               
committee for future consideration.                                                                                             

Document Name Date/Time Subjects
SB 9 - Presentation Military Facility Zones 1 17 17.pptx SCRA 1/31/2017 3:30:00 PM
SB 9
SB 9 - Request for Hearing SIGNED 1 25 17.png SCRA 1/31/2017 3:30:00 PM
SB 9
SB 9 - Supporting Document - List of Military Projects in Fairbanks Area - For Demonstration Purposes - From August 2016 Supplier Day.pdf SCRA 1/31/2017 3:30:00 PM
SB 9
SB 9 - Sponsor Statement 1 17 17.pdf SCRA 1/31/2017 3:30:00 PM
SB 9
SB 9 - Version A.pdf SCRA 1/31/2017 3:30:00 PM
SB 9
SB 9- Sectional Analysis 1 17 17.pdf SCRA 1/31/2017 3:30:00 PM
SB 9
SB 39 AEA Power Point C-PACE Senate CRA 01.31.17.pdf SCRA 1/31/2017 3:30:00 PM
SB 39
SB 39 PACE Letter of Support Municipality of Anchorage.pdf SCRA 1/31/2017 3:30:00 PM
SB 39
SB 39 REAP Support Letter.pdf SCRA 1/31/2017 3:30:00 PM
SB 39
SB 39 Sectional Version D.pdf SCRA 1/31/2017 3:30:00 PM
SB 39
SB 39 Sponsor Statement.pdf SCRA 1/31/2017 3:30:00 PM
SB 39
SB 39 Version D.pdf SCRA 1/31/2017 3:30:00 PM
SB 39
SB39 fiscal note.PDF SCRA 1/31/2017 3:30:00 PM
SB 39