Legislature(2001 - 2002)
02/13/2002 09:12 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE CS FOR CS FOR HOUSE BILL NO. 96(STA)
"An Act relating to acquisition and development of the Jesse
Lee Home; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
REPRESENTATIVE KEN LANCASTER, sponsor of the bill, addressed the
fiscal note, stating that during testimony in other committees, he
had understood the amount should have been zero. However, the
Department of Natural Resources had recently submitted a new fiscal
note for $65,000. He stressed that if there must be a fiscal note,
the amount should be no higher than $55,000.
Co-Chair Kelly injected he had the same understanding that the
fiscal note should be zero.
Representative Lancaster gave a history of the Jesse Lee Home,
which was established in Seward in 1926 to house Alaskan Native
children who lost their parents during a tuberculosis epidemic. He
pointed out that Benny Benson designed the Alaska State Flag while
living at the Home and the flag was officially raised for the first
time at the Home on July 9, 1927.
Representative Lancaster informed that the Home was severely
damaged during the 1964 Earthquake and has been vacant ever since.
He stated that a private party purchased the facility with the
intention of opening a hotel, but the Kenai Peninsula Borough
foreclosed on the property to satisfy a tax obligation. He noted
the City of Seward has since acquired the property from the
Borough.
Representative Lancaster stated the City of Seward has cleared the
area of overgrowth and erected a fence securing the Home. He
remarked that $5,000 from the Department of Natural Resources and
$5,000 from the City of Seward had been appropriated and expended
to undertake initial soil testing.
Representative Lancaster informed if this bill passes, the intent
is to hire an architect to inspect the building to determine
whether it could be saved. If the building could not be saved, he
said, a volunteer task force would be organized to consider other
options for creating a historical site at the location.
Amendment #1: This amendment replaces "2002" with "2003" on page 2,
line 8 of the Senate State Affairs committee substitute. The
amended language reads, "The department shall report to the
governor and the legislature by November 1, 2003, concerning its
recommendations…" This amendment also changes the effective date of
the bill from July 1, 2001, to July 1, 2002.
Senator Ward moved for adoption and explained this is a technical
amendment to update the bill because it did not pass into law the
previous year.
There was no objection and the amendment was ADOPTED.
Senator Green voiced concerns regarding an unrelated report
presented by a task force established to write regulations. She
relayed that in this instance, the legislature was not given notice
of the actual regulations and it was asserted that because the
legislature authorized the creation of the task force, it was
assumed the legislature gave automatic approval of the forthcoming
regulations as well. She wanted assurance this situation would not
arise in regards to the task force proposed in this bill.
Representative Lancaster remarked for the record that this
legislation only establishes the task force to review the
architectural and soil surveys to determine possible future uses of
the site. He assured that because the property is owned by the City
of Seward, future legislation would be necessary to authorize
additional state expenditures.
Senator Hoffman asked what is the next step if the report
determines the facility is sound.
Representative Lancaster replied further grant funds would be
pursued. He noted there are no windows remaining in the Home and
that numerous other repairs are necessary.
JUDY BITTNER, State Historic Preservation Officer, and Chief,
Office of History and Archaeology Alaska Historical Commission,
Division of Parks and Outdoor Recreation, Department of Natural
Resources, spoke to the fiscal note. She informed that the Office
receives federal historic preservation grant funds, and it is
intended a portion of these funds would be used to partially fund
the task force. She noted the Office awarded a $5000 grant to the
City of Seward to begin the soil and building studies. She said an
additional $30,000 could be appropriated if $25,000 in matching
funds were provided. She pointed out the Office is "project funded"
and the federal grants utilized require matching funds.
Co-Chair Kelly stated the Committee was under the impression that
the necessary matching funds were already available within the
Department's budget.
Ms. Bittner responded match funds were not available for the task
force itself.
Co-Chair Kelly referenced the $35,000 GF Match and $30,000 general
funds contained in the fiscal note. He surmised the $30,000 amount
should not be included.
Ms. Bittner affirmed.
Co-Chair Kelly clarified the total amount of the fiscal note should
actually be $35,000.
Ms. Bittner affirmed.
Co-Chair Donley asked why the federal funds were not listed in the
fiscal note.
Co-Chair Kelly stated this would be corrected.
Representative Lancaster affirmed.
Co-Chair Donley listed the travel, per diem, meeting space and
meeting preparation expenses involved in the four meetings of the
proposed commission at a cost of $4,500 each. He noted the
legislation does not stipulate that a commission would be formed.
He suggested Seward residents could undertake the efforts with no
travel required.
Co-Chair Kelly requested the witness comment.
Ms. Bittner replied the intent is to form a task force comprised
primarily of Seward residents, with meetings held in Seward.
However, she continued, the intent is that professionals would need
to travel from elsewhere in the state to provide expertise.
Co-Chair Donley pointed out the fiscal note indicates an architect
consultant would be hired at a cost of $70,000.
Co-Chair Kelly announced the bill would be held to rectify the
fiscal note concerns.
Co-Chair Donley next referred to Section 2 of the Senate State
Affairs committee substitute, and asked if an architectural
assessment was currently available that determined the building is
structurally sound and could be restored.
Representative Lancaster answered such a report was completed in
1995 when the building was placed on the National Registry of
Historic Places. He said this report must be updated.
Co-Chair Donley commented the language is drafted with the
assumption that the facility is restorable. He suggested it could
be determined the structure should be rebuilt instead.
Representative Lancaster said the intent is to repair the facility
if possible, but an inspection is necessary before such a decision
could be made.
Senator Ward added that there is a possibility that the building
would be removed and replaced with a monument. He shared he has
visited the location and did not think the structure was sound,
although it does have historical significance and has "affected a
lot of people's lives." He opined $70,000 "is a lot of money for
something that seems fairly obvious to me." He also questioned the
placement of a statute of Benny Benson in a congested area of
Anchorage, and asserted most people are unaware of its existence.
He suggested relocating the statue to the Jessie Lee Home site. He
talked of the historical and cultural importance of the Seward
location.
Co-Chair Kelly referenced explanatory language in the fiscal note
"An Architectural consultant will be secured. Anticipated cost for
the architectural consultant is $70,000, of which half is covered
by an existing historic preservation grant program, so only half
the match is requested here." He ascertained the match requirement
should therefore be reduced to $25,000 based on this and the
matching funds provided by the City of Seward. He also questioned
how the meeting expenses are calculated into the total request.
Senator Green was unsure if similar historical preservation
projects had been undertaken in the past using state funds. She
remarked there are other historical locations in the Palmer area
that "we would love to have…added" to the National Registry of
Historic Places. She surmised there are many more such locations in
throughout the state. She was concerned that that this legislation
could start a trend for state funding.
Co-Chair Kelly commented that other historical sites have been
addressed in the past although they generally do not receive much
attention because the funding is appropriated through the capital
budget process as opposed to individual legislation.
SCOTT JANKE, Manager, City of Seward, testified via teleconference
from Seward to inform that the Seward City Council and the Historic
Preservation Commission have each adopted resolutions in support of
the bill. He elaborated on the efforts taken by the City of Seward
in this process to acquire the property and secure it to reduce
liability. He detailed how $50,000 was expended for such projects
as boarding windows and erecting a fence. He spoke of media
attention given to the Jesse Lee Home, both in Alaska and Outside,
as a result of these efforts. He stressed, "this is a significant
historic resource for the state, not just for Seward." He expressed
the rehabilitation cost is too large for the City of Seward to
cover in its entirety.
RACHEL JAMES, Planner, Planning and Zoning Commission, City of
Seward, and Staff, Historical Preservation Commission, City of
Seward, testified via teleconference from Seward about the timing
th
of passage of this legislation to coincide the 75 anniversary of
the design and first official raising of the Alaska flag at the
Jesse Lee Home site. She also noted the City of Seward would be
celebrating the centennial of the community in the year 2003. She
asserted it is important for the state to take a "leading role" in
this project because the Home played an important role in the
state's history.
TIM ROGERS, Member, Board of Directors, Alaska Children's Services,
testified via teleconference from Anchorage about the 112-year
history of the Alaska Children's Services beginning with the
establishment of the Jesse Lee Home in Unalaska. He spoke of
services offered for troubled children, originally focusing on
orphaned children. He stated that in 1925, the Home was relocated
to Seward, where it operated as an orphanage until the Good Friday
Earthquake of 1964, at which time the facility was moved to its
current location on Abbott Road in Anchorage. He stressed the
Seward site has significant historical value to the organization as
well as the state. He stated that during its operation in Seward
"literally hundreds of children" from all areas of Alaska, lived at
the Home.
Co-Chair Kelly ordered the bill HELD in Committee.
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