HB 216-TRANSFER OF RAILROAD LAND TO WHITTIER  2:37:54 PM CO-CHAIR EISCHEID announced that the final order of business would be HOUSE BILL NO. 216, "An Act approving the transfer of land owned by the Alaska Railroad Corporation to the City of Whittier; and providing for an effective date." 2:38:13 PM REPRESENTATIVE KY HOLLAND, Alaska State Legislature, as prime sponsor, presented HB 216. He began by introducing himself and the geographic features of his district, emphasizing that Whittier will become an essential part of the state's ability to move freight. He stated that he has attended city council meetings every month for the last year and a half and described their efforts working with the Alaska Railroad Corporation (ARRC). He explained that by moving land into ownership of the city, HB 216 would help Whittier continue to grow its economy. He explained that the legislature must approve the transfer of land from ARRC to a city and the transfer is not completed until both entities agree on the transfer cost. 2:42:22 PM AYDEN NICHOL, Staff, Representative Ky Holland, on behalf of Representative Holland, prime sponsor, presented a PowerPoint, titled "HB 216 Whittier-Alaska Railroad Land Transfer" [hard copy included in the committee file]. He began on slide 2, titled "History: Whittier and the Alaska Railroad", which read as follows [original punctuation provided]: • Whittier (pop. 272) connects Anchorage with Prince William Sound shipping and ferry routes, and is a popular cruise destination • For most of its history, the Alaska Railroad was the only land route connecting Whittier with the rest of the state, via the the Anton Anderson Tunnel • The Alaska Railroad has long benefitted from its significant land holdings within the city limits, which constitute 85% of Whittier's developable land • In 1998, the Railroad agreed to lease 250 acres to the City for development MR. NICHOL moved to slide 3, titled "From a lease to City Ownership," which read as follows [original punctuation provided]: • The status of the land under the City's lease discourages investment and prevents the City from bringing in tax revenue from businesses situated on the property. • Early in 2024, negotiations began for the transfer of ownership of five parcels of land from the Railroad to the City. • In December of 2025, the City Council authorized the City Manager to negotiate a final agreement for three parcels, and the Railroad submitted a conditional letter of intent to proceed with the sale. • Legislative approval is a critical element required to allow this deal to proceed: under AS 42.40.285, the Railroad is prohibited from relinquishing land without the authorization of the legislature. MR. NICHOLS moved to slide 4, which showed a map of AARC the area of interest. MR. NICHOLS gave the sectional analysis [hard copy included in committee file], which read as follows [original punctuation provided]: Section 1: Authorizes the Alaska Railroad Corporation to convey five parcels of land to the City of Whittier for fair market value. (a) Authorizes the transfer and describes the five parcels authorized for sale, including: the property where the Sportsman's Lounge currently sits, the harbor parking area below Whittier Creek, the Harbor Uplands area abutting the bay, the area surrounding the Whittier Airport, and the area surrounding the Whittier Bay Campground adjacent to the Glacier Creek Cruise Terminal. (b) Clarifies that further platting and surveying will be necessary to execute the sale, and that the parcel boundaries articulated in this section may be reasonably modified subject to the agreement of both parties. (c) Authorizes the Railroad to accept cash equivalent to the fair market value of the land. (d) Designates this section as sufficient legislative approval for the transfer of land under AS 42.40.285. Section 2: Establishes that the Act takes effect immediately. 2:46:04 PM CO-CHAIR CARRICK noted that HB 216 would transfer a lot of acreage in Whittier. She asked to hear from an opposing viewpoint of the land transfer, if available. 2:49:14 PM REPRESENTATIVE HOLLAND, in response to a question from Co-Chair Carrick, stated that due to the nature of the land transfer, both entities wanted the opportunity to make any last minute changes as needed and HB 216, as written, would allow for that. 2:50:13 PM REPRESENTATIVE HOLLAND, in response to a question from Representative Mina, explained that there is still some certainty regarding the resolution of the property at the head of the bay, while there is full agreement regarding the property value of the downtown parcel of land. He further explained that the intention of both entities involved is to come to an agreement for all five land parcels, without needing to return to the legislature. 2:52:13 PM REPRESENTATIVE MCCABE confirmed the legislature's role in this land transfer. 2:52:46 PM CO-CHAIR CARRICK asked to hear from Whittier's city manager regarding HB 216. 2:53:00 PM JACKIE WILDE, City Manager, City of Whittier, began by stating that over 90 percent of Whittier's land is either owned by the state or non-taxable. She explained how the current structure of the Whittier community came to be. She said that Whittier is home to 273 year-round residents but is much more than a residential community. Whittier is at an intersection of many forms of transportation from across the state, which serve much more than Whittier. She emphasized that most of the land in Whittier is non-taxable but is needed to support municipal services. Over the years, Whittier has paid over 40 percent of its total revenue to ARRC. She stated that HB 216 would help establish a better structure that reflects how land is used and responsibilities are distributed today. She reaffirmed that legislative authority is required to convey ownership and she asked for the committee's support of HB 216. 3:01:10 PM MEGHAN CLEMENS, External Affairs Director, Alaska Railroad Corporation, testified in support of HB 216. She began by stating that selling land is not something ARRC takes lightly. She highlighted that over the last two years, ARRC and the city of Whittier have engaged in conversations regarding a mutually beneficial land sale. She described the process of their negotiations regarding the first three land parcels and noted that parcels 4 and 5 would still be available for transfer in the future. 3:03:43 PM MS. CLEMENS, in response to a question from Representative McCabe, compared this land transfer to the one Nenana. 3:04:16 PM The committee took a brief at-ease at 3:04 p.m. 3:04:21 PM CO-CHAIR EISCHEID set an amendment deadline for HB 216. [HB 216 was held over.]