Legislature(2005 - 2006)CAPITOL 106
03/20/2006 05:00 PM House ECONOMIC DEV., TRADE, AND TOURISM
| Audio | Topic |
|---|---|
| Start | |
| Presentation: Knik Arm Bridge and Toll Authority (kabata) | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT, INTERNATIONAL
TRADE AND TOURISM
March 20, 2006
5:09 p.m.
MEMBERS PRESENT
Representative Mark Neuman, Co-Chair
Representative John Coghill
Representative Bob Lynn
Representative Nancy Dahlstrom (via teleconference)
Representative Harry Crawford
MEMBERS ABSENT
Representative Jay Ramras, Co-Chair
Representative Beth Kerttula
OTHER LEGISLATORS PRESENT
Representative Bill Stoltze
Representative Berta Gardner
COMMITTEE CALENDAR
PRESENTATION: KNIK ARM BRIDGE AND TOLL AUTHORITY (KABATA)
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
GEORGE WUERCH, Chair
Knik Arm Bridge and Toll Authority (KABATA)
Anchorage, Alaska
POSITION STATEMENT: Provided a presentation on KABATA.
HENRY SPRINGER, Executive Director
Knik Arm Bridge and Toll Authority (KABATA)
Anchorage, Alaska
POSITION STATEMENT: Provided a presentation on KABATA
ACTION NARRATIVE
CO-CHAIR MARK NEUMAN called the House Special Committee on
Economic Development, International Trade and Tourism meeting to
order at 5:09:01 PM. Representatives Neuman, Coghill, Lynn,
Dahlstrom (via teleconference), and Crawford were present at the
call to order. Representatives Stoltze and Gardner were also in
attendance.
^PRESENTATION: KNIK ARM BRIDGE AND TOLL AUTHORITY (KABATA)
5:09:09 PM
CO-CHAIR NEUMAN announced that the only order of business would
be a presentation from the Knik Arm Bridge and Toll Authority
(KABATA).
5:10:23 PM
GEORGE WUERCH, Chair, Knik Arm Bridge and Toll Authority
(KABATA), referred to Alaska Statute 19.75, which specifies that
the purpose of KABATA is as follows:
... to develop, stimulate, and advance the economic
welfare of the state and further the development of
public transportation systems in the vicinity of the
Upper Cook Inlet with construction of a bridge to span
Knik Arm and connect the Municipality of Anchorage and
the Matanuska-Susitna Borough.
MR. WUERCH directed the committee's attention to a map of the
vicinity of the Knik Arm Crossing as illustrated in the
PowerPoint presentation. He also presented a photo of the
congestion on the Glenn Highway during a recent morning commute.
The Knik Arm Crossing would provide the ability to handle a
substantial amount of traffic via an alternative route that
would lighten the impacts of the future population on the Glenn
Highway. The aforementioned may reduce the demand for highway
funds for public infrastructure.
5:13:39 PM
MR. WUERCH, in response to Co-Chair Neuman, related that the
Glenn Highway currently handles about 50,000 vehicles per day,
which is increasing annually. The Glenn Highway will be maxed
out within 10 years and the prospect of adding lanes will arise.
However, the problem is that additional lanes would traverse
from Anchorage to the intersection of the Parks and the Glenn
Highway to Palmer, which is about 40 miles in each direction.
Estimates for such are about $300 million, which would be public
money, and the result is the same corridor with no other
alternatives. He mentioned the possibility of tolling new
lanes.
5:15:21 PM
MR. WUERCH continued with a slide of two graphs that relate the
historic growth from 1980-2003 and the projected population from
2004-2050. The graphs illustrate that the Matanuska-Susitna
Valley is growing much more rapidly than Anchorage. He then
directed attention to the slide entitled "2030 ISER [Institute
of Social and Economic Research] Population & Employment." He
explained that the Federal Highway Administration requires a
capacity that would be sufficient for 20-25 years and thus the
[proposal] is to open the bridge by 2010 and have 20 years in
use by 2030. The graph illustrates that with or without a
bridge, the population of Anchorage grows. However, without the
bridge Anchorage grows a little less because more people will
choose to live in the Mat-Su Valley. Therefore, the question is
in regard to the quality of life in Anchorage and the Mat-Su
Valley by not building the bridge.
5:17:07 PM
CO-CHAIR NEUMAN asked if Mr. Wuerch, as the former mayor of
Anchorage, could inform the committee as to how much area is
available for further expansion.
MR. WUERCH informed the committee that in Anchorage there is
about 7,000 acres of undeveloped land, although 6,000 of those
acres are located on the Hillside where there is no water and
sewer. Therefore, Anchorage really doesn't have much building
capacity land left. However, in the Mat-Su Valley there is
77,000 acres of privately-held land, most of which is buildable.
He specified that there are 9,000 private owners of this 77,000
acres. Additionally, the Mat-Su Borough has 10,000 acres in the
port district and there's a substantial amount of land for
various uses. He then turned attention to the slide relating
that about 2,500 new single family houses per year are built [in
the Anchorage, Eagle River, and Mat-Su Valley areas]. The
expectation is that the construction is going to continue
because the population will continue to grow. He predicted that
the opening of the bridge would result in more new homes in the
Point MacKenzie area.
5:19:06 PM
MR. WUERCH then turned to the conceptual designs of the bridge.
Due to the air traffic in the area, the bridge design isn't a
suspension bridge but rather the design discussions are focusing
on a traditional pilling-supported bridge. He noted that
borings have been done in the bridge area and have proven to be
of substantial material, although not bedrock.
5:20:31 PM
HENRY SPRINGER, Executive Director, Knik Arm Bridge and Toll
Authority (KABATA), reiterated that the bridge isn't in the
design stage. However, the perimeter had to be specified under
the environmental impact statement (EIS) process in order to
determine the real challenges. By far, the most influential
factor of this bridge is seismic design and fortunately, there
is lots of data on the earthquakes in the area. He explained
that the earthquakes in the Anchorage Bowl are quite different
than those elsewhere as the fault plates are somewhat skewed. A
symposium has been put together of most of the North American
experts in order to provide guidance. The aforementioned has
resulted in a formula that will be incorporated in the design
standards, no matter the design of the bridge. [The experts]
agreed that the seismic aspect can be addressed, although it
will cost because more steel will be required.
5:22:25 PM
MR. WUERCH then presented a rendition of what the bridge may
look like.
REPRESENTATIVE LYNN inquired as to the difference in cost and
ease of building between concrete and steel.
MR. SPRINGER noted that one unknown is in regard to what the
Chinese are going to do with steel in the next few years.
However, he said that the cost of the bridge, whether concrete
or steel, is similar because in order to make the bridge
earthquake proof, steel has to be put in the concrete. He
opined that the difference will come from the location at which
it will be manufactured and the shipping costs that will result.
In further response to Representative Lynn, Mr. Springer
informed the committee that construction of the bridge will take
about three to three-and-a-half years. If the concrete
components are made locally, then a bit more lead time will be
required.
5:24:23 PM
MR. WUERCH continued his presentation by addressing the issue of
travel time and distance. He presented a computerized rendering
of the area that has to be driven without the bridge and
informed the committee that with the bridge a commuter saves 80
minutes and 68 miles, which is substantial. Furthermore, at
today's gas prices if the miles traveled without the bridge were
rounded to 60 miles, the bridge would save commuters $7.50,
which is the upper limit of the toll. The lower limit of the
toll is about $3.00. He explained that since more private
funding than public funding is being sought for the bridge, the
toll will likely be more than $3.00. Mr. Wuerch pointed out
that a price higher than the alternative can't be charged.
CO-CHAIR NEUMAN requested an outline of a situation in which the
road would be extended to mile 73, just north of Willow, and a
new north-south corridor that traverses around Wasilla would be
constructed.
5:27:01 PM
MR. WUERCH clarified that the route presented on the computer
rendering is that road. Such a corridor would be excellent for
the Alaska Railroad so that cargo could be loaded directly from
the ship. If a rail corridor is built there is the potential
for a highway corridor along side it as well as power, gas, and
utility lines. However, he mentioned that the implications for
freight service to the Interior are measurable.
5:28:50 PM
REPRESENTATIVE GARDNER expressed her interest in the Alaska
Railroad and related her understanding that there are technical
reasons to not have the bridge also accommodate railroad
traffic. She posed a situation in which the highway bridge was
built first and the railroad bridge second, and asked whether
there would be a cost savings to the railroad in that scenario
because KABATA has performed all the studies.
MR. WUERCH said there would be a cost savings because KABATA
would've processed the EIS and the permits and [a railroad
bridge] would merely be an amendment. Mr. Wuerch then informed
the committee that KABATA is committed to building a highway
bridge that's railroad compatible and thus the road approaches
and elevation changes will be designed to railroad grade
standards. Furthermore, KABATA is actively talking with the
Alaska Railroad leadership regarding whether the gravel for the
roadbed and the railroad can be laid at the same time. Mr.
Wuerch said that the biggest hurtle for the railroad is
acquiring and clearing the right-of-way for permits, which he
estimated will take probably five years or so.
5:31:14 PM
CO-CHAIR NEUMAN highlighted that the railroad is also
considering upgrades on the road from Anchorage through Wasilla
at a cost of $150-$200 million. The railroad is also looking at
another way around Wasilla.
5:32:16 PM
MR. WUERCH directed attention to the Burma Road connection
that's just a bit higher grade than an all-terrain vehicle (ATV)
trail. The governor's budget includes funds to start the EIS,
which will probably take a couple of years. If the
aforementioned occurred, northbound traffic could move in a
different direction such that traffic follows the Big Lake Road
to the Big Lake intersection and head north, which would be a
savings of 30 miles or so.
5:33:10 PM
REPRESENTATIVE CRAWFORD recalled two-three years ago hearing
about an interim ferry in order to get people accustomed to the
location of the crossing and living in the area. He inquired as
to what has happened with that idea.
MR. WUERCH said that the Mat-Su Borough has worked with the U.S.
Navy Research and Development Center, which is designing and
building a ferry with attributes that are good for water [such
as found in the Knik Arm] as an experiment to determine whether
it can be used for landing military troops across hostile
shores. That ferry is due to be in service in 2007, he
surmised. Mr. Wuerch opined that such a ferry is a good thing
because it will help people become accustom to commuting that
direction and will transport those working on the bridge.
CO-CHAIR NEUMAN added that industry is already moving to the
Point MacKenize side.
5:34:56 PM
MR. WUERCH informed the committee that during the development of
the EIS, KABATA has performed a land use and transportation
forecast. The forecast reviews the development suitability of
land using a variety of sources. In fact, an economic working
group convened and interviewed no less than 50 business
executives and government officials in the North Cook Inlet
area. It was determined that there is quite a bit of land with
little development opportunity because it's a game refuge. The
triangular area from Wasilla past Big Lake to the Nancy Lakes
area is the growth area for economic development.
5:36:51 PM
MR. WUERCH then moved on to the highway called Port MacKenzie
Road, which needs to be a four-lane road in order to meet
capacity. The computer program that reviews the improvement
tests was financed by KABATA and is now in use by the Mat-Su
Borough, the Municipality of Anchorage, the Department of
Transportation & Public Facilities, and the Federal Highway
Administration for regional transportation planning.
5:38:42 PM
REPRESENTATIVE LYNN asked if it has been settled that the
Anchorage connection will be through Government Hill or is there
the possibility of going through the military base.
MR. WUERCH specified that the approach on the Anchorage side
hasn't been decided as the Federal Highway Administration has
yet to issue that draft EIS. However, the Federal Highway
Administration did issue its scoping report, which specifies
that there are two feasible [approaches], both of which would
tunnel under Government Hill and would initially use the C
Street viaduct since it has capacity to do so. Still, between
2020-2025, it appears that another crossing of Ship Creek with a
viaduct/bridge will have to built if the City of Anchorage is
successful in building the highway-to-highway connection, which
connects the Glenn Highway to the new Seward Highway by
separating it from street traffic, which is a $600-$800 million
project. In further response to Representative Lynn, Mr. Wuerch
predicted that in late summer or early fall, the Federal Highway
Administration will issue the final decision. In the meantime,
KABATA is hopeful that within the next two weeks, the draft EIS
will be released for public comment and agency review. There
will be more public hearings. Mr. Wuerch noted that currently
there are no proposals on the table to go through the military
base.
5:42:20 PM
REPRESENTATIVE DAHLSTROM confirmed that currently there are no
proposals to go through either of the bases, although the base
personnel and those in Washington, D.C., continue to be very
involved because they will need to transport their vehicles to
the port.
5:43:39 PM
MR. WUERCH continued his presentation with regard to the
reasonably foreseeable events between now and 2030: railroad
spur to Port MacKenzie; industrial development in both the
Anchorage and MacKenzie ports and cruise ship traffic into Cook
Inlet; 200 megawatts gas fired generator, gas liquids spur line
and a water line to the Mat-Su Valley. He noted that when he
was mayor [the Municipality of Anchorage] had a 40 million
gallon a day surplus of water that could be piped across the
bridge to serve the new housing areas in the Mat-Su and Point
MacKenzie area. In response to Representative Gardner, Mr.
Wuerch clarified that there's no water system in Point MacKenzie
and thus everyone must have wells.
5:45:39 PM
MR. WUERCH continued with the reasonably foreseeable events,
which include the ferry to Kenai, the commuter rail, the Willow
connector, the Wasilla bypass; Hatcher Pass ski area, increased
military presence, small plane base; and more connectivity.
However, an airport in Point MacKenzie isn't envisioned nor is a
capitol move, or construction of any new bridges over the
Susitna River.
5:46:58 PM
MR. WUERCH moved on to the slide entitled "Community Impacts."
He highlighted the following impacts of the bridge: the linkage
of critical port facilities, infrastructure to meet growth,
emergency access and egress, commuter convenience, reduce
transit pollution, save popular greenbelts, sustain business
base, and provide access to recreational areas.
5:49:15 PM
MR. WUERCH then turned attention to the slide highlighting the
March 16, 2006, Anchorage Daily News article entitled, "Fastest
growing counties are rural, suburban." In fact, the Mat-Su
Borough ranks 31st nationally adding 3,800 residents or 5.3
percent of its population from July 2004 - July 2005. He
indicated that when the long distances cause new population
centers, good things happen in the way of new businesses. The
slide entitled "Commercial Sector Population Thresholds"
prepared by Northern Economics relates the population thresholds
required to be profitable, which for a gas station is about
3,827. To be profitable with a grocery store, there has to be a
population of about 6,949. With the increasing population in
the Mat-Su Valley, an estimated 73,000 more people will live in
the Mat-Su Valley over the next 20 years. Such an increase in
population will provide the opportunity for many new businesses.
Therefore, the population thresholds for the businesses listed
on the slide will easily be met, he opined.
5:51:31 PM
MR. WUERCH continued the presentation by focusing on the
preliminary cost estimate of the bridge and financing for it.
The preliminary cost estimate of the bridge project is $600
million. He explained that the governor's budget includes $94
million in federal dollars that are backed with a small state
match and ultimately provides $100 million for the $600 million
project. The $100 million should allow KABATA to complete
permitting, develop a financing plan, and provide a package of
work to be done in 2007. He specified that construction of the
bridge will occur from 2007-2010. The remaining $500 million in
private sector investment will be paid back by the tolls. In
January a group of bankers, investment counselors, Federal
Highway Administration staff, state employees, and contractors
who said that with $100 million down payment, a $500 million
mortgage could be financed.
5:53:39 PM
CO-CHAIR NEUMAN requested that Mr. Wuerch discuss how the bridge
financing might ultimately facilitate other transportation and
infrastructure projects.
MR. WUERCH, in regard to federal funds for transportation
projects, informed the committee that Alaska will receive about
$2.5 billion over the five years of the transportation
legislation in Congress. The aforementioned is more money than
Alaska has ever had in any transportation legislation. If the
legislature approves HB 471/SB 303, KABATA is requesting some
language changes to the statute that created KABATA in order to
clear up some ambiguities and establish a debt ceiling at $500
billion. Therefore, there is $2.5 billion in federal funds of
which KABATA is asking for $100 million and will borrow $500
million. The result of the aforementioned would be that the
entire state's transportation infrastructure, as an investment,
would increase from $2.5 billion to $3 billion without an
additional drain on the general fund.
CO-CHAIR NEUMAN recalled that there are concerns with regard to
the STIP and whether the federal funds have to go toward
federally funded state highways.
5:56:12 PM
MR. WUERCH agreed, and explained that the federal money once
earmarked for bridges has had the earmarks removed, although the
intended purpose hasn't been removed. The federal funds are
intended to be used for the high priority projects listed by the
state that fall under the National Highway System (NHS)
category. Therefore, those federal funds for the bridges can't
be applied to patching potholes on a neighborhood street. He
explained that there are five categories for funding in Alaska,
including the NHS. The NHS includes all the numbered highways
in the state, some of the main arterials in Anchorage that were
built prior to the consolidation of the Municipality of
Anchorage, and roads to ports.
REPRESENTATIVE STOLTZE commented that he has seen very few
projects that have this opportunity to have federal funds match
private sector funds. He informed the committee that he is a
non-voting member of KABATA. In regard to the economic benefits
of this project, he highlighted that this project would benefit
those in the Interior.
5:58:40 PM
CO-CHAIR NEUMAN mentioned that the toll authority will pay for
the potholes on its road.
MR. WUERCH confirmed that tolls have to pay for the entire
operation, maintenance, and debt retirement. He emphasized that
the analysis specifies that KABATA will achieve the
aforementioned and create a reserve for future expansions in
order to add capacity for future populations. Such
public/private partnerships are happening all over the world.
6:00:31 PM
REPRESENTATIVE STOLTZE opined that he would want the bridge to
be built with as much steel and iron as possible.
CO-CHAIR NEUMAN noted that he is impressed with the economic
development opportunities that can occur due to this project.
6:01:05 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Economic Development, International Trade
and Tourism meeting was adjourned at 6:01 p.m.
| Document Name | Date/Time | Subjects |
|---|