HJR 27-RELOCATE COASTAL VILLAGES REGION FUND  8:13:05 AM CO-CHAIR HERRON announced that the next order of business would be HOUSE JOINT RESOLUTION NO. 27, Supporting the relocation of the home port of the Coastal Villages Region Fund fishing fleet from Seattle to Alaska. 8:13:18 AM KATIE KOESTER, Staff, Representative Paul Seaton, Alaska State Legislature, stated HJR 27 is a resolution to support bringing the Alaska fishing fleet home. She reminded the committee of the 3/31/11 presentation by representatives of Seward detailing the merits of this initiative, and that several committee members have signed as co-sponsors. Ms. Koester said HJR 27 is an effort to bring about economic development in all of the state by encouraging the Coastal Villages Region Fund (CVRF) to homeport its fleet in Seward. Coastal Villages Region Fund is one of six Community Development Quota (CDQ) groups that were developed in the '90s and given "a stake in the Bering Sea fisheries." The CDQ groups represent 65 Bering Sea communities and are required to reinvest their profits, bringing economic development, jobs, and hope to coastal villages in the Bering Sea region. Coastal Villages Region Fund is the largest Alaskan-owned and Alaska-based fishery company, with expected seafood sales in the amount of $75 million in 2011. In addition, CVRF has an impressive fleet of vessels that spend $5- $10 million on maintenance each year, $20 million in moorage in Seattle, and $10 million on crew annually. She relayed that CVRF wants to return its fleet, crews, and jobs to Alaska. A survey indicated that the requirements to homeport a fleet of this size are: a year around ice-free port; road, rail, and air access; space for harbor and uplands development; a maritime licensing facility. Nearby Seward is able to provide all of these services, in addition to a drydock and the Alaska Vocational Technical Center (AVTEC), which is an educational and licensing facility. Ms. Koester restated the purpose of the resolution is about economic development, and she pointed out the letters of support from around the state and the Alaska Congressional delegation found in the committee packet. Furthermore, the City of Seward has funded a preliminary study in favor of this issue, the U.S. Corps of Engineers (USACE) has found that the relocation is economically feasible, and CVRF has determined that Seward is the best choice for an Alaska port. 8:18:00 AM REPRESENTATIVE GARDNER has heard from a Seward resident questioning the city's public process prior to the engineering study on this issue. Also, she asked about any efforts on Seattle's part to keep the fleet there. 8:19:23 AM MS. KOESTER said Seward did a small study at a cost of $5,000, and has submitted a capital budget request for $400,000 to complete an in-depth study that would incorporate public testimony. Regarding a response from the Port of Seattle, she opined it is the legislature's responsibility to advocate for Alaska. CHAIR HERRON observed a fleet of this size is important to any economic region. 8:20:43 AM CHAIR HERRON opened public testimony. 8:21:55 AM WILLARD DUNHAM, Mayor, City of Seward, expressed his belief that this is a unique opportunity in that an industry is interested in moving its operation to Alaska. The City of Seward has passed two resolutions and has held public hearings regarding this issue; in fact, the property involved is a 476-acre tract zoned for industrial use. He advised the idea for the expansion of the port has been vetted in the community and is supported by most residents. Mr. Dunham agreed that there will be a reaction from the Port of Seattle; furthermore, if all six CDQs decide to move, that would entail a fleet of 200 vessels. 8:25:30 AM PHILLIP OATES, City Manager, City of Seward, added that one of the resolutions passed by Seward was a comprehensive resolution outlining the merits of the proposed project. The first phase of the project will be built onto existing infrastructure in an area that already has been permitted. Dr. Oates assured the committee Seward will continue to address concerns from its residents. He advised that members of the Congressional delegation felt that the Port of Seattle may not have an impact on the CVRF phase of this project, because federal money is not involved. In fact, the ultimate funding for the project will be a combination of general obligation (GEO) bonds at the state level, revenue bonds at the local level, and public-private financing. He called attention to documents from the Congressional delegation and others in full support of HJR 27 that are found in the committee packet. 8:29:01 AM CO-CHAIR HERRON stated his intent for the committee to visit the site during interim. He asked Dr. Oates to comment on the significance of the support from the Congressional delegation. DR. OATES opined that the support from the Congressional delegation indicates that they see this as the fulfillment of the vision of the original purpose of the CDQ groups, which was to strengthen the American presence in the fishing fleets that were formally dominated by foreign vessels, and to provide quotas to the communities surrounding the fishing areas. Also, CDQ groups allow for the reinvestment of profits into education, and growth of the local fishing industry. Dr. Oates pointed out that support for HJR 27 extends from both political parties and urges other CDQ groups to move their homeports to Alaska. 8:32:05 AM REPRESENTATIVE FOSTER asked how the resolution would help. DR. OATES said the resolution indicates there is solid support at all levels for the project, which always helps with permitting. In addition, the resolution will indicate to the Senate and the governor that the House supports Seward's capital budget request to pay for the full engineering, geotechnical, and economic analysis of the project and its costs. 8:33:49 AM MR. DUNHAM added that fishing organizations are supportive of the project. NEIL RODRIGUEZ, Regulatory Manager, Coastal Villages Region Fund, affirmed that moving the fleet is a long-time goal for the CDQ program and a benefit to the fishing industry. 8:35:52 AM REPRESENTATIVE ALAN AUSTERMAN, Alaska State Legislature, relayed his experience as a commercial fisherman in the '60s when he watched foreign fishing vessels interfere with and destroy his crab pots. Today, through the Congressional imposition of the three-mile limit, the fisheries are American, but are not Alaskan. The value of the fishery in the Bristol Bay region is between $2.3 billion and $2.5 billion, but 90 percent of the jobs and profits go to Seattle and Oregon. He opined the value of keeping fleet jobs and support services in Alaska is "mind boggling." Representative Austerman strongly supported HJR 27 and the idea of bringing all of the CDQ groups back to Alaska. 8:39:04 AM CO-CHAIR HERRON closed public testimony. 8:39:13 AM REPRESENTATIVE TUCK stated that HJR 27 represents a great vision and plan, and an opportunity to keep money in Alaska. In addition, the move would create new industries to support the fishing fleet. He expressed his support for the resolution and said he would like to participate as a co-sponsor. REPRESENTATIVE FOSTER observed that the power and impact on Western Alaska of the CDQ program - which brings an influx of jobs and money to small villages - has been amazing. 8:40:54 AM REPRESENTATIVE TUCK moved to report HJR 27, Version 27-LS0780\M, from committee with individual recommendations and the accompanying fiscal note. There being no objection, HJR 27 was reported from the House Special Committee on Economic Development, International Trade and Tourism. 8:41:42 AM The committee took an at-ease from 8:41 a.m. to 8:42 a.m. 8:42:40 AM