Legislature(2021 - 2022)SENATE FINANCE 532
04/28/2021 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB97 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 97 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 28, 2021
9:02 a.m.
9:02:18 AM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 9:02 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Natasha von Imhof
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
None
PRESENT VIA TELECONFERENCE
Marty Parsons, Director, Division of Mining, Land, and
Water, Department of Natural Resources (DNR), Anchorage;
David Schade, Director, Division of Agriculture, DNR, Eagle
River.
SUMMARY
SB 97 STATE LAND SALES AND LEASES; RIVERS
SB 97 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 97
"An Act relating to state land; relating to the
authority of the Department of Education and Early
Development to dispose of state land; relating to the
authority of the Department of Transportation and
Public Facilities to dispose of state land; relating
to the authority of the Department of Natural
Resources over certain state land; relating to the
state land disposal income fund; relating to the
leasing and sale of state land for commercial
development; repealing establishment of recreation
rivers and recreation river corridors; and providing
for an effective date."
9:03:48 AM
MARTY PARSONS, DIRECTOR, DIVISION OF MINING, LAND, AND
WATER, DEPARTMENT OF NATURAL RESOURCES (DNR), ANCHORAGE
(via teleconference), discussed the presentation, "SB 97
State Land Sales and Leases" (copy on file). He displayed
slide 2, "Authority to Department of Education and Early
Development (DEED) and Department of Transportation and
Public Facilities (DOT) ":
Authority to DOT/PF and DEED to Dispose of State Land
Provides authority to ease disposal of excess
buildings around the state
? The bill amends current statutes to allow DOT/PF and
DEED to acquire and transfer excess buildings and land
that is no longer needed for the purposes of the
original acquisition
? This will streamline the disposal process and reduce
multi-agency efforts
9:05:36 AM
Co-Chair Bishop asked that there be a pause between each
slide for questions.
Senator Hoffman wondered whether there was map of parcels
available for consideration by the citizens of Alaska. He
stressed that there were many people in western Alaska that
did not have access to state lands because they were not in
close proximity to those lands.
Mr. Parsons shared that there were many parcels that were
scattered throughout the state. He stated that there were
also lands available at auction. He remarked that there was
an attempt to make many parcels available in the state.
Senator Olson assumed that "private sector" referred to
both individuals and businesses.
Mr. Parsons replied that the attempts as related to the
efforts with the Department of Transportation and Public
Facilities (DOT) and the Department of Education and Early
Development (DEED), those departments' statutes were
determined the disposal of land. He assumed that
individuals could bid on the parcels, because there was
nothing in the legislation that prohibited that action.
Senator Olson wondered how there could be a leveling to
ensure that both individuals and corporations could acquire
the land.
Mr. Parsons replied that the conversation must be done with
DOT and DEED to see how they would dispose of the land.
9:10:50 AM
Mr. Parsons highlighted slide 3, "Land Disposal Income Fund
(LDIF)":
Increase Land Disposal Income Fund (LDIF) Cap
Increase spending authority from the LDIF for project
development
The cap on the LDIF is proposed to be increased from
$5M to $12M to provide additional capital for the
department to develop and dispose of state lands and
to offset inflation since the fund was established in
2000
? The $5M cap has not been adjusted in 20 years
? Personnel and Development costs have increased
significantly, reducing the available "working
capital"
? This will result in more acreage available for sale
and construction of access
? This is not an increase in appropriation simply an
adjustment to the funding cap
Senator Hoffman requested the most recent five years of the
income fund expenditures.
Mr. Parsons agreed to provide that information.
Co-Chair Bishop requested a list of the efforts that were
not followed through.
Mr. Parsons agreed to provide that information.
9:14:18 AM
Mr. Parsons pointed to slide 4, "Commercial Use":
Commercial Use Land Sales
This new statute governing the leasing and sale of
state lands deemed suitable for commercial
development, within Qualified Opportunity Zones or in
state determined commercial development areas
? Land can be nominated by the public
? Leasing option to complete requirements for sale and
allow immediate commercial activity
? After conclusion of the lease requirements for sale
will occur
? Individuals have requested a program to allow for
such sales
? The number of acres identified for proposed
development will be significant and the number of
acres conveyed will depend on the proposals received
Co-Chair Bishop wondered whether a green energy project be
allowed commercial use.
Mr. Parsons replied in the affirmative.
9:18:45 AM
DAVID SCHADE, DIRECTOR, DIVISION OF AGRICULTURE, DNR, EAGLE
RIVER (via teleconference), addressed slide 5, "Agriculture
Lands":
Reduced Restrictions to Agricultural Land Disposals
Statutes are modified to reduce restrictions on
agricultural land to private ownership
? Reduces parcel size from a minimum of 40 acres to 20
acres when subdividing
? Increases the number of parcels from a maximum of
four parcels to eight parcels when subdividing
? Allows for land use and improvements, including
those that do not limit the primary use for
agricultural purposes
9:20:40 AM
Co-Chair Bishop wondered whether the program would allow
for continued agriculture, but also allow for a subsidy of
the farm.
Mr. Schade replied that it was the intent of the
legislation.
Mr. Parsons pointed to slide 6, "Development":
Road Development and Minimum Lot Size Standards
The bill clarifies statutes relating to the
development of roads and minimum lot size standards
? Provides statute language to ensure State land
disposals are held to the same platting and zoning
requirements as all municipal projects for both lot
size and constructed access
Senator Wilson wondered whether there was a desire to sell
the lots to developers after meeting the minimum, or
whether they would be sold in subsections.
Mr. Parsons responded that, currently, it would be a
subdivision development that the state would build the
roads and offer lots for sale. He shared that there was an
examination of larger parcel sales to a developer with no
infrastructure in place, therefore putting that
responsibility on the developer.
9:25:31 AM
Senator Wilson remarked that many preferred that the larger
lots be sold to a developer.
Mr. Parsons noted that the small lots would be sold at
once, to individuals, but understood the concern.
Mr. Parsons looked at slide 7, "Additional Sales and
Authorities."
Provides for ease of Land Sales purchase contracts and
clarification
? Modifies auction requirements for easier
administration of land offerings
o Allows for more modern sale options, including
online auctions
? Increases max contract term to 30 years
o Currently capped at 20 years
o Allows for longer financing of higher value
parcels
? Language referencing "foreclosure" is modified to
"termination" to align with the current administrative
process
Senator Wilson queried the normal state rate of return on
the land sales.
Mr. Parsons replied that it varied, depending on the
location of the sold land. He stated that land in the
Interior would sell for approximately $3000 and acre, but
land closer to road construction increased the cost. He
shared that land in Southeast was valued higher, mainly
because it was often waterfront. He agreed to provide
further information.
Senator Wilson queried the typical interest rate for
financing in the slide.
Mr. Parsons replied that it was prime plus two.
Mr. Parsons concluded his presentation.
9:30:35 AM
Co-Chair Bishop OPENED and CLOSED public testimony.
Senator Wilson wondered whether there was opposition to the
bill.
Co-Chair Bishop replied that there was slight opposition in
the Senate Resource Committee, so there was removal of a
section.
Senator von Imhof furthered that the impetus of the bill
would begin to look at a 30-year-old plan related to
recreational rivers to determine modernization.
Co-Chair Bishop discussed the following day's agenda.
SB 97 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
9:32:39 AM
The meeting was adjourned at 9:32 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 97 Summary of Changes.pdf |
SFIN 4/28/2021 9:00:00 AM |
SB 97 |
| SB 97 Sponsor Statement 2.26.21.pdf |
SFIN 4/28/2021 9:00:00 AM |
SB 97 |
| SB 97 SFIN Land Sales 4.28.21.pdf |
SFIN 4/28/2021 9:00:00 AM |
SB 97 |
| SB 97 Sectional Analysis 4-28-21.pdf |
SFIN 4/28/2021 9:00:00 AM |
SB 97 |
| SB 97 Land Disposal Letter of Support.pdf |
SFIN 4/28/2021 9:00:00 AM |
SB 97 |
| SB 97 HB120 Land Surface Disposal White Paper 4.28.2021.pdf |
SFIN 4/28/2021 9:00:00 AM |
HB 120 SB 97 |