Legislature(2017 - 2018)BELTZ 105 (TSBldg)

02/07/2017 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

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Audio Topic
03:30:20 PM Start
03:31:14 PM SB28
03:45:00 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved SB 28 Out of Committee
          SB  28-MUNICIPAL LAND SELECTIONS: PETERSBURG                                                                      
3:31:14 PM                                                                                                                    
CHAIR  BISHOP  announced consideration  of  SB  28. He  noted  the                                                              
committee  had been  waiting on  a  revised fiscal  note from  the                                                              
Department of Natural Resources (DNR).                                                                                          
3:31:53 PM                                                                                                                    
SENATOR MACKINNON asked  for a brief description of  what the bill                                                              
3:32:36 PM                                                                                                                    
MELISSA  KOOKESH, staff  to Senator  Bert Stedman,  sponsor of  SB
28,  Alaska State  Legislature, Juneau,  Alaska, said  SB 28  will                                                              
set  the  total  general  land   entitlement  for  the  Petersburg                                                              
Borough  at 14,666  acres, an increase  of 12,770  acres from  its                                                              
current level of  entitlement, and would bring  the Borough's land                                                              
entitlement  to  a  level  similar   to  the  other  15  organized                                                              
boroughs in the  state. SB 28 will address the  long-term economic                                                              
sustainability of a recently formed borough.                                                                                    
3:33:14 PM                                                                                                                    
She read the following statement:                                                                                               
     When the Borough  formed in 2013, it received  a general                                                                   
     land grant  entitlement from  the state of 1,896  acres.                                                                   
     Of the  1,896 acres,  457 acres  had already been  given                                                                   
     to the  City of  Petersburg. A  substantial part  of the                                                                   
     457  acres  is  restricted  to  public,  charitable,  or                                                                   
     recreational use.                                                                                                          
     After  deducting  the  457.47  acres that  went  to  the                                                                   
     City,  the Borough's  land  entitlement  is 1,438  acres                                                                   
     which  is  an area  roughly  a  third  the size  of  the                                                                   
     Anchorage  International   Airport.  This   1,438  acres                                                                   
     simply  does   not  provide   enough  land  to   support                                                                   
     economic  development  such as  rock  and sand  material                                                                   
     sites for  roads, airports, waterfront land  for tourism                                                                   
     development, or residential homes.                                                                                         
     The  Borough would  select the  additional 12,770  acres                                                                   
     from  seven  different  areas around  the  Borough.  All                                                                   
     selections  would be made  from vacant,  unappropriated,                                                                   
     and  unreserved   state  lands.   No  selections   would                                                                   
     interfere  with existing  State,  University, or  Alaska                                                                   
     Mental  Health  Trust  lands,  including  the  Southeast                                                                   
     State Forest, or private ownership.                                                                                        
3:35:21 PM                                                                                                                    
SENATOR  MACKINNON thanked  Mr. Parsons  for trying  to value  the                                                              
property  that has  not been subdivided  on the  fiscal note,  but                                                              
the full  selection  amount is multiplied  and  this bill  is only                                                              
for 12,770  acres.  She asked if  she should  use the  $68,638,750                                                              
number or  the $78,829,750  number for the  full acre  valuation -                                                              
unless the original designation hadn't been accounted for.                                                                      
MARTY  PARSONS, Deputy  Director,  Division of  Mining, Land,  and                                                              
Water,  Department   of  Natural   Resources  (DNR),   said  their                                                              
analysis was  based on the entire  14,666 acres, so that  would be                                                              
the $78 million-plus-change.                                                                                                    
SENATOR MACKINNON  asked if the  Petersburg Borough  would receive                                                              
14,666 acres or 12,770 acres in this bill.                                                                                      
MR. PARSONS answered  in this bill they have asked  for the entire                                                              
allotment  of  14,666  acres  and  that  is  what  they  would  be                                                              
receiving.   The  other   number   is  less   what  the   original                                                              
entitlement would have been.                                                                                                    
SENATOR  MACKINNON  asked  if they  had  selected  their  original                                                              
MR. PARSONS answered yes.                                                                                                       
SENATOR MACKINNON  said she didn't  understand why  the additional                                                              
acreage  would   be  included  in   the  fiscal  note.   It  says:                                                              
"Historically,  municipal land  transfers have  not been  reported                                                              
as  having  a  negative fiscal  impact  or  as  an  appropriation.                                                              
However, a rough  estimate of the monetary value  of this expanded                                                              
land transfer based  on indicated value in the area  is $5,375 per                                                              
acre."  She believed  the  next  multiplier overstates  what  this                                                              
bill  does  and asked  "Wouldn't  it  be  reasonable to  have  the                                                              
12,770  acres that  is the  change in  this bill  for this  fiscal                                                              
note versus the entire allocation?"                                                                                             
MR.  PARSONS responded  that he  could do  that calculation.  They                                                              
were  estimating  the entire  entitlement  that  Petersburg  would                                                              
receive,  which is the  1,400 plus  the additional  to get  to the                                                              
14,666 acres. It's a total of all land that would be conveyed.                                                                  
3:39:09 PM                                                                                                                    
CHAIR BISHOP opened public comment on SB 28.                                                                                    
CHAIR  BISHOP,   finding  no  further  questions,   closed  public                                                              
testimony on SB 28.                                                                                                             
3:40:00 PM                                                                                                                    
At ease                                                                                                                         
3:41:00 PM                                                                                                                    
SENATOR  MACKINNON said  the department  indicates no  anticipated                                                              
operating costs,  employee increases,  or capital expenditure  for                                                              
FY18-FY23 and  on page 2  the DNR does  not anticipate  any direct                                                              
fiscal  impact   to  adjudicate  selections  under   the  proposed                                                              
legislation.  Additionally, there  will be  some travel  costs for                                                              
land inspections  under the proposed entitlement but  that will be                                                              
absorbed  by   the  department.   There  are  only   12,770  acres                                                              
associated  with  this  transaction.   So,  she  moved  to  delete                                                              
language  on the  last line  of the  fiscal note  that states  the                                                              
average  value in  the  area is  set  at $5,375  per  acre and  in                                                              
parenthesis multiplies  that by "14,666 acres" and  insert "12,770                                                              
acres,"  which  should then  equal  $68,638,750.   There  were  no                                                              
objections and the amendment was adopted.                                                                                       
CHAIR BISHOP  said he would  ask for a  clean amended  fiscal note                                                              
from the department going forward.                                                                                              
SENATOR  MACKINNON moved  to report  SB  28, version  30-LS0045\D,                                                              
from  committee  with  individual   recommendations  and  attached                                                              
amended  fiscal  note that  begins  "SB028-DCCED-DCRA-1-27-17  and                                                              
CHAIR BISHOP found  no objection, and SB 28 moved  from the Senate                                                              
Community and Regional Affairs Standing Committee.                                                                              

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