SB 191-TRANSFER OF RAILROAD LAND TO WHITTIER  1:41:52 PM CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 191 "An Act approving the transfer of land owned by the Alaska Railroad Corporation to the City of Whittier; and providing for an effective date." 1:42:07 PM SENATOR CATHY GIESSEL, District E, Alaska State Legislature, Juneau, Alaska, advanced to slide 2 and gave a brief overview of SB 191. She surmised that an agreement transferring Alaska Railroad Corporation (ARRC) lands to the City of Whittier would surprise some individuals. 1:42:43 PM SENATOR GIESSEL advanced to slide 3 and gave a brief overview of Whittier: [Original punctuation provided.] Whittier Facts  • Population of 272 • Built during WWII • Ice-Free Deep-Water Port for year -round access • Gets thousands of visitors a year • Popular cruise, fishing and outdoor recreation launch point 1:43:07 PM SENATOR GIESSEL advanced to slide 4 and explained that ARRC owns 85 percent of the developable land surrounding Whittier. She said that Begich Towers was built during WWII and houses the majority of Whittier's population. Slide 4 contains an aerial image of Whittier with overlays to indicate land lots and the ARRC Reserve/Lands Boundary. 1:43:32 PM SENATOR GIESSEL advanced to slide 5 and continued to discuss the proposed land transfer. She emphasized that the City of Whittier wants to grow. She explained that Huna Totem Corporation is building a large dock at the far end of the Whittier Harbor, which would increase local tourism. The Whittier Tunnel provides additional opportunities for growth. Slide 5 contains a map depicting ARRC's areas of interest (AOI). This land transfer would benefit Whittier by providing the opportunity for the city to grow its economic base. In turn, this economic growth would benefit the entire state. 1:44:09 PM SENATOR GIESSEL advanced to slide 6: Original punctuation provided.] Timeline  November 1998  Master lease signed by ARRC and the City of Whittier March 2021  Whittier passes resolution requesting non-essential lands from the Railroad. March 2024  Whittier has initial discussions with Alaska Railroad Corporation (ARRC) October 2024  Memorandum of Understanding signed by ARRC and City of Whittier. SENATOR GIESSEL emphasized that the City of Whittier and ARRC have reached a land transfer agreement for approximately 85 acres. This land is nonessential to rail operations. ARRC would maintain control of railroad infrastructure, while the City of Whittier (as landowner) could build housing, improve the harbor, etc. She emphasized that there is strong local support for the transfer. She stated that, despite the agreement between the City of Whittier and ARRC, ARRC cannot transfer land without legislative approval. She listed the various ways that committee members are familiar with ARRC. She emphasized that the agreement would have a positive impact and opined that SB 191 is a positive bill that displays collaboration and agreement on the part of ARRC. 1:45:47 PM SENATOR STEDMAN clarified that his district has a railroad easement but does not have a railroad. 1:46:03 PM SENATOR KIEHL clarified that the railroad in his district is not ARRC. 1:46:15 PM SENATOR TOBIN asked whether any of the land that ARRC would transfer has been contaminated, and if the citizens of Whittier would be responsible for remediation. 1:46:43 PM SENATOR GIESSEL deferred the question. 1:47:03 PM SENATOR TOBIN noted that Alaska is located on Indigenous lands and asked whether the land might require archeological survey. She pointed out that there may be construction prohibitions if an archeological survey is not completed prior to beginning construction. 1:47:37 PM PAIGE BROWN, Staff, Senator Cathy Giessel, Alaska State Legislature, Juneau, Alaska, emphasized that the City of Whittier wants to grow; however, this is hindered by a lack of developable land. 1:48:07 PM CHAIR BJORKMAN announced invited testimony on SB 191. 1:48:19 PM JACKIE WILDE, City Manager, City of Whittier, Whittier, Alaska, provided a brief history of the land agreement. She said the City of Whittier has been working closely with ARRC for the past 1.5 years to reach an agreement. The land transfer includes land that is nonoperational for ARRC but is core infrastructure for the City of Whittier. She briefly discussed ARRC's terminal master plan and how the reduction of ARRC-owned land would ensure the continuation of that plan. She said the City of Whittier is looking forward to the future of the terminal master plan. In response to the question related to the need for an archeological survey, she explained that the City of Whittier was built for the military and suggested that because of the land's military history, an archeological survey would not be required. She noted that the City of Whittier has begun a waterfront economic development plan and has also entered into an agreement with Huna Totem Corporation for the new double- berth cruise ship dock. The City of Whittier is looking forward to gaining the ability for future growth and economic development. 1:50:25 PM SENATOR STEDMAN asked whether the municipality would subdivide and sell the transferred land. 1:50:39 PM MS. WILDE replied that most of the land is already leased. Those leases would continue. She directed attention to a 39-acre parcel adjacent to Glacier Street that could be developed through private partnerships to build multi-family units. The bay section would allow the City of Whittier to create recreation facilities and would bring additional economic development with cruise ship agencies. 1:51:44 PM SENATOR STEDMAN asked if the deed contains any restrictions. 1:51:59 PM MS. WILDE replied no. She explained that the master lease contains restrictions and the transfer of land would eliminate the master lease (and its restrictions). 1:52:10 PM SENATOR STEDMAN clarified his question. He asked whether the deed includes restrictions that would inhibit the City of Whittier's ability to sell the land. 1:52:23 PM MS. WILDE answered not on the 39-acre parcel. She shared her understanding that the only restrictions contained in the lease apply to the City's tank farm property. She said lease restrictions have not been discussed in negotiations and talks with ARRC. 1:52:45 PM SENATOR STEDMAN commented that development is often inhibited on leased land. He encouraged the City of Whittier to consider this moving forward. He stated that land sales result in greater development and are often more beneficial to the community (as opposed to land that is leased to developers by the municipality). 1:53:00 PM REPRESENTATIVE MCCABE joined the meeting. 1:53:55 PM MS. WILDE concurred and said the majority of Whittier's land is non-taxable. She indicated that properties would be developed and sold in the future. While the City of Whittier does not want to be in the business of real estate, waterfront leases are important to the city's economy and future growth. 1:54:38 PM CHRISTY TERRY, Vice President, Real Estate, Alaska Railroad Corporation (ARRC), Anchorage, Alaska, stated that ARRC has worked closely with the City of Whittier for the past 1.5 years to create a land transfer that holds up the interest of both parties. SB 191 is an essential step in that process. She briefly described the process, which included public work sessions and regular council meetings, among others. ARRC's goal is to reach an agreement that supports economic development while enhancing transportation infrastructure in the region. In response to Senator Tobin's questions about potential remediation and whether an archeological survey may be needed, she said SB 191 is an essential step in the process and would allow ARRC and the Whittier City Council to work through the details, which would include reviewing these types of questions. 1:56:13 PM SENATOR KIEHL recalled a small land sale from ARRC to the City of Whittier within the past 5-6 years. He asked the parcel size and price per acre for that sale. 1:56:34 PM MS. TERRY replied that she did not recall and offered to follow up with this information. She said that ARRC has worked closely with the City of Whittier on the Delong Dock transfer and wondered if this could be the sale he is referring to. 1:56:57 PM SENATOR KIEHL recalled that the parcel of land was adjacent to an existing multi-family building. He noted that SB 191 requires a transfer at the fair market value (FMV) and asked whether there is a rough sense of the value of the 85 acres of land. 1:57:33 PM MS. TERRY replied that the value is roughly $7 million. 1:57:40 PM SENATOR SHOWER joined the meeting. 1:57:46 PM SENATOR KIEHL asked about the per-acre value. 1:58:03 PM MS. TERRY replied that she could provide appraisals for each lot. 1:58:38 PM CHAIR BJORKMAN said that information could be provided at a later time. 1:59:12 PM SENATOR GIESSEL said the requested information would be provided. 1:59:21 PM CHAIR BJORKMAN asked if SB 191 is time sensitive and whether a particular timeframe would facilitate an advantage for one party over the other. 1:59:37 PM SENATOR GIESSEL replied that there is no urgent deadline. 1:59:53 PM CHAIR BJORKMAN held SB 191 in committee.