Legislature(1993 - 1994)

04/14/1994 02:30 PM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                             
                       STANDING COMMITTEE                                      
                         April 14, 1994                                        
                            2:30 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Harley Olberg, Chairman                                       
  Representative Jerry Sanders, Vice-Chair                                     
  Representative Con Bunde                                                     
  Representative Ed Willis                                                     
  Representative Bill Williams                                                 
  Representative Cynthia Toohey                                                
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative John Davies                                                   
                                                                               
  OTHER LEGISLATORS PRESENT                                                    
                                                                               
  Representative Gary Davis                                                    
                                                                               
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  Long Range Municipal Planning Presentation                                   
                                                                               
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  GARY WILLIAMS, City Manager                                                  
  City of Whittier                                                             
  P.O. Box 608                                                                 
  Whittier, AK  99693                                                          
  Phone: 472-2337                                                              
  POSITION STATEMENT:  Presented the City of Whittier's                        
                       Redevelopment and Urban Design Plan                     
                                                                               
  AMES BARNETT, Attorney                                                       
  City of Whittier                                                             
  10050 Prospect Drive                                                         
  Anchorage, AK  99516                                                         
  Phone:  346-2755                                                             
  POSITION STATEMENT:  Provided information                                    
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 94-17, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN HARLEY OLBERG called the meeting to order at 2:35                   
  p.m.  Members present at the call to order were                              
  Representatives Willis, Bunde, Williams and Toohey.  He                      
  noted for the record a quorum was present.                                   
                                                                               
  Number 017                                                                   
                                                                               
  GARY WILLIAMS, CITY MANAGER, CITY OF WHITTIER, presented the                 
  City of Whittier's Redevelopment and Urban Design Plan                       
  saying, "I'm really gratified by the opportunity to present                  
  to you what I think is a very happy vision of the future in                  
  these gloomy times...but first of all, I'd like to say,                      
  thank you very much that in your wisdom, in the last session                 
  you appropriated money sufficient to match the ISTEA                         
  (Intermodal Surface Transportation Efficiency Act) funds                     
  which can put a road into Whittier.  I also would share with                 
  you that the environmental impact statement which can make                   
  this all possible, is in draft form now...  From that we've                  
  learned a great deal about what it is that we need to do to                  
  prepare for the future.  Indeed, that's what this report to                  
  you is all about...to share with you...what will accrue to                   
  the state of Alaska when we are able to realize the benefits                 
  of the road access project.  We will indeed, realize                         
  economic benefits far, far in excess of that investment that                 
  you have made in us..."                                                      
                                                                               
  MR. WILLIAMS continued, "The first thing I wanted to do is                   
  give you a perspective on Whittier as it exists today...                     
  (He reviewed numerous illustrated charts.)  When he referred                 
  to the railroad yards he said, "This is an area that the                     
  city of Whittier and the railroad are working very                           
  diligently to come to terms on how this can be used for a                    
  higher and better use than it is today, yet how can we                       
  accommodate the railroads capability to operate the roll                     
  on/roll off capability.  And that is an important subject                    
  that we are working on with the railroad, and I want to say                  
  to you that despite the difficultly that the city and the                    
  railroad have experienced in the past, I think we have                       
  dawned a new era in terms of that relationship and we will,                  
  I think very soon, have a working relationship that                          
  implements the plan...                                                       
                                                                               
  Number 084                                                                   
                                                                               
  REPRESENTATIVE CYNTHIA TOOHEY asked how many of the other                    
  committee members have visited Whittier.                                     
                                                                               
  All, but Representative Bill Williams had.                                   
                                                                               
  MR. WILLIAMS said, "...we felt that we had to show that                      
  indeed Whittier can accommodate the visitation or market who                 
  will seek out Whittier.  (He then referred to a report                       
  produced by International Resort Advisors.)  He offered many                 
  details of long range planning and added, "So by                             
  implementing this plan which provides for living space for                   
  some 1,500 souls in the future, looking out 20 years,                        
  provides ample commercial and economic development here and                  
  the creation of an actual city hall... we're able to create                  
  a real community in western Prince William Sound..."                         
                                                                               
  MR. WILLIAMS continued, "International Resort Advisors was                   
  adamant about the point that there is a certain level of                     
  amenities and infrastructure that you must provide in order                  
  to retain your market.  Our market is estimated to be in the                 
  low case scenario, the first year the road is open, 900,000                  
  visitors.  We currently can accommodate without undue grief,                 
  200,000 visitors..."                                                         
                                                                               
  Number 253                                                                   
                                                                               
  REPRESENTATIVE TOOHEY said, "You've approached the railroad                  
  obviously, and they are willing to give? sell? lease the                     
  land to you guys?"                                                           
                                                                               
  MR. WILLIAMS replied, "There are probably many ways in which                 
  this can be done and the next step in this process is a                      
  bilateral agreement between the city and the railroad which                  
  implements the intra plan as operational between the                         
  railroad and city.  What we adopt, will become the game                      
  plan... whether they lease this building to the city of                      
  Whittier, whether they find a developer to develop it,                       
  whether they develop it themselves..."                                       
                                                                               
  JAMES BARNETT, ATTORNEY, CITY OF WHITTIER, said, "What we                    
  understand is that they need the 1.75 million (dollars)                      
  required to reconfigure themselves to get out of the way but                 
  essentially, once they have that money to reconfigure                        
  themselves, the basic concept is that they're going to                       
  provide the land for free with the expectation that there                    
  will be leases on the commercial parcels.  But the notion is                 
  that where you saw all those parking lots, there will be                     
  private operations like you see in Seward or Homer, who are                  
  going to be paying the railroad for the right to be there.                   
  The railroad sees a real estate opportunity if they commit                   
  the land."                                                                   
                                                                               
  Number 286                                                                   
                                                                               
  REPRESENTATIVE CON BUNDE said, "I see you have a cruise ship                 
  dock there.  I assume you are going to do something to                       
  encourage them to come back."                                                
                                                                               
  MR. WILLIAMS said, "Yes, basically the encouragements need                   
  be very little.  They've told us they want to come back if                   
  there's a road, they will be back provided they have a dock.                 
  And the reason they left was the railroad said we cannot                     
  guarantee our dock...some parts of it...are in rather bad                    
  repair.  That, and the fact that the tariff was quite                        
  high...  The cruise ship industry decided because they are a                 
  business and they like a stable environment in which to                      
  work, they decided Seward would be a better...alternative."                  
                                                                               
  MR. WILLIAMS continued, "To do what you see there is an                      
  investment of about three million dollars.  About $1.2                       
  million to revitalize the marginal wharf and dock to the                     
  extent that it can be completely safe and handle virtually                   
  any size cruise ship coming to Alaska...  We want to provide                 
  the amenity that attracts them to Whittier..."  He then                      
  provided details of the amenities in the plan.                               
                                                                               
  Representative Sanders joined the committee at 2:45 p.m.                     
                                                                               
  Number 315                                                                   
                                                                               
  MR. WILLIAMS then said, "The next step that we will begin                    
  going through in this plan (is), after it is adopted by the                  
  planning commission as the comprehensive plan...  We'll                      
  begin packaging all of the redevelopment configurations and                  
  this is just one of 26 redevelopment packages that need to                   
  be put together and taken out for financing, and that is the                 
  next step that we'll begin going through in this process."                   
                                                                               
  MR. WILLIAMS concluded, "The bottom line to all of this                      
  means that we create an economy that IntRA (International                    
  Resort Advisors) expects will reach $30 million annually                     
  through all of the activities that are planned.  It will see                 
  an investment of private money of $80 million.  There will                   
  obviously be an investment of public infrastructure                          
  development money.  The plan also includes something that                    
  we've got to be looking at right away, which is a sewage                     
  treatment facility.  We now have primary treatment which is                  
  fine for 280 souls, and we exist under an EPA waiver now                     
  because the effluent is not that toxic to Passage Canal.  If                 
  we touch the system, we're obviously going to loose that                     
  waiver and we're suddenly off and running on a $1.6 million                  
  primary treatment facility.  That's one of the first and                     
  biggest steps that we've got to take in this initial                         
  redevelopment plan...  There's a certain minimum level of                    
  investment that needs to made in order to attract that                       
  market...provided that we have road access.  Road access                     
  obviously is a condition precedent to all that we've talked                  
  about today..."                                                              
                                                                               
  REPRESENTATIVE GARY DAVIS asked, "What is the overall status                 
  of the landownership?  You've touched on the railroad owning                 
  land.  What about the city or borough or private and                         
  federal?"                                                                    
                                                                               
  MR. WILLIAMS said, "There are three regimes of ownership.                    
  The railroad being the largest owner of land...amounting to                  
  about 70 percent of the waterfront and 50 percent of the                     
  entire core area.  The city of Whittier's ownership: ...                     
  when I say "city" I'm talking about people who also own land                 
  privately...  The other regime of ownership is the U.S.                      
  Forest Service and all of the land exterior to the city                      
  limits...is in U.S. Forest Service hands."                                   
                                                                               
  REPRESENTATIVE TOOHEY, MR. WILLIAMS and MR. BARNETT                          
  discussed the ownership of properties outlying Whittier.                     
                                                                               
  Number 494                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked if the other 280 residents of                    
  Whittier "share" the favorable views of Mr. Williams on this                 
  development.                                                                 
                                                                               
  MR. WILLIAMS indicated generally, yes.                                       
                                                                               
  REPRESENTATIVE DAVIS asked, "On the harbor, what is the                      
  current capacity of the harbor and what's your waiting                       
  list?"                                                                       
                                                                               
  MR. WILLIAMS said, "332 boat capacity and we have a waiting                  
  list that's more than 200 long."                                             
                                                                               
  REPRESENTATIVE ED WILLIS said, "How about that Buckner                       
  Building, what's the status of that?"                                        
                                                                               
  MR. BARNETT gave a history of the building, including its                    
  builder's bankruptcy.  He said, "The court has since agreed                  
  to abandon the property.  So essentially no one owns it.                     
  The only party that probably could claim it today would be                   
  Mr. Zamorello, but for him to own it he'd have to pay the                    
  back taxes which approach a quarter of a million dollars."                   
                                                                               
  REPRESENTATIVE WILLIS asked if it was boarded up?                            
                                                                               
  MR. BARNETT said, "No."                                                      
                                                                               
  REPRESENTATIVE BUNDE said, "The question is why doesn't the                  
  city take possession?"                                                       
                                                                               
  MR. BARNETT said, "That's certainly an option for the city,                  
  the city would (then) have to board it up and fence it up.                   
  It's wide open right now."                                                   
                                                                               
  MR. WILLIAMS said, "It's a serious problem that has a                        
  $40,000 price tag to solve."                                                 
                                                                               
  CHAIRMAN OLBERG said, "For the city to take it back, you                     
  also take back all of the liability."                                        
                                                                               
  MR. BARNETT reminded Chairman Olberg, "One of our very small                 
  legislative requests is in fact to put a fence around the                    
  Buckner Building."                                                           
                                                                               
  CHAIRMAN OLBERG adjourned the meeting at 3:08 p.m.                           
                                                                               
                                                                               

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