HB 304-CHUGACH STATE PARK/EAGLE RIVER LIONS CLUB  1:08:28 PM CHAIR PATKOTAK announced that the first order of business would be HOUSE BILL NO. 304, "An Act modifying the boundary of Chugach State Park; directing the sale of land to the Eagle River Lions Club; and providing for an effective date." 1:08:49 PM REPRESENTATIVE KELLY MERRICK, Alaska State Legislature, as the prime sponsor, introduced HB 304. She stated that the bill is an opportunity for her community of Eagle River, as well as all Alaskans. Lions Club Park, she continued, is a special place in the heart of Eagle River where community residents and other Alaskans have participated in sports, watched their children on the playground, and attended town meetings, concerts, and fairs. She thanked the committee for considering the bill and urged its passage. 1:10:07 PM JAYME JONES, Staff, Representative Kelly Merrick, Alaska State Legislature, on behalf of Representative Merrick, prime sponsor of HB 304, provided an overview of the bill. She explained that in 1964 the Eagle River Lions Club was granted a special land use permit by the Department of Natural Resources (DNR) to lands within Chugach State Park. The original permit was for 20 years and has been renewed twice. The current permit expires 1/2/24. Lions Club Park is a popular community park encompassing 40 acres, centrally located in Eagle River at the junction of Eagle River Road and Eagle River Loop Road. Since finalization of the 1964 agreement the Lions Club has developed the park by building baseball fields, a clubhouse, and other facilities. The park has become a recreational staple of the town and many public events are held there. MS. JONES specified that a 2013 Alaska Supreme Court decision requires that permits for use of designated state park land must be revocable at will. This decision means that DNR cannot issue a new permit for the Eagle River Lions Club since the facilities cannot be readily removed. Both the Lions Club and DNR believe that the Eagle River community will be better served by this park if the Eagle River Lions Club is allowed to operate the park under the direct ownership. This requires modification of the Chugach State Park boundary to remove this land from the state park. The Land and Water Conservation Fund (LWCF), she continued, requires that replacement land of equal value be added to Chugach State Park. She drew attention to a map of the area and noted that the lighter green color is the boundary of Chugach State Park, the purple square in the bottom lefthand corner of the map is Lions Club Park, and the four blue parcels are the suggested replacement land. A memorandum of understanding (MOU) between the Eagle River Lions Club and DNR outlines the terms. Four parcels of general state land will replace the parcel being transferred to the Lions Club. There is no cost to the state as the Lions Club will cover fees incurred by the department and any appraisal costs associated with all five parcels. 1:12:39 PM DAN BEUTEL, Natural Resource Specialist III, Division of Parks and Outdoor Recreation, Department of Natural Resources (DNR), provided a PowerPoint presentation titled, "Lions Club Park Chugach State Park." He proceeded to the second slide, "Lions Club Park," and said Lions Club Park is a popular community park centrally located in Eagle River that is used for sports, walking, and community gatherings. MR. BEUTEL displayed the third slide, "Lions Club Park and Chugach State Park," and explained that the Eagle River Lions Club developed and operated Lions Club Park under a series of permits from DNR, with the current 20-year permit set to expire 1/2/24, and which cannot be renewed. He pointed out that the organized sports fields, clubhouse with alcohol sales, and community park make this very different from the rest of Chugach State Park. Therefore, DNR believes the Eagle River community will be better served by Lions Club Park if the Eagle River Lions Club is allowed to operate the park under direct ownership. This requires modification of the Chugach State Park boundary that was set in statute by the Alaska State Legislature. 1:15:47 PM MR. BEUTEL reviewed the fourth and fifth slides, "Lions Club Park and Chugach State Park history." Speaking to the fourth slide, he related that DNR acquired this 40-acre parcel in 1961 as a Mental Health grant and issued a permit to the Eagle River Lions Club in 1964. The Lions Club began developing the park in the 1960s and 1970s, building baseball fields, the clubhouse building, and other facilities. Chugach State Park was designated by the legislature in 1970, including all state-owned land in this section, subject to valid existing rights such as this permit. This section was presumably included because Eagle River flows through the southern portion of this section. MR. BEUTEL, speaking to the fifth slide, specified that LWCF grants from the federal government were first used in Chugach State Park in 1970, shortly after park designation, and LWCF grants require the state to preserve the park for outdoor recreation in perpetuity. Any use other than outdoor recreation constitutes a "conversion" and requires replacement land be added to the park of equal value, not area. The Division of Parks and Outdoor Recreation renewed the Eagle River Lions Club's permit for two additional 20-year terms, with the current permit expiring 1/2/24. An Alaska Supreme Court decision in 2013 requires that permits for use of legislatively designated state parks must be revocable at will. This decision means that DNR cannot issue a new permit to the Eagle River Lions Club since the facilities cannot be readily removed. MR. BEUTEL displayed photographs on the sixth, seventh, and eighth slides, respectively titled "Lions Club Park activities and facilities Baseball and Softball fields," "Lions Club Park Football Tennis Basketball Horseshoes," and "Lions Club Park Picnic shelter Playground Clubhouse." 1:18:03 PM MR. BEUTEL discussed the nineth slide, "Chugach State Park." He informed committee members that the park covers about 485,000 acres of mostly undeveloped mountains stretching from Knik River Road to Turnagain Arm. Visitor activities include sightseeing, hiking, ATVing, snowmobiling, skiing, hunting, and fishing. Facilities are primarily trails, trailheads, campgrounds, and public use cabins. Unlike Lions Club Park, Chugach State Park has no facilities for organized team sports. No other Alaska state park has a facility comparable to Lions Club Park and the division lacks the experience, funding, or authority to operate facilities for these types of sports. MR. BEUTEL continued to the tenth slide, "LWCF Conversion Replacement Land," and explained that the LWCF requires replacement land of equal value be added to Chugach State Park to replace Lions Club Park. Four parcels of general state land are proposed as the replacement parcels - three in Eagle River Valley and one on Pioneer Peak. All four proposed replacement parcels are steep mountains adjacent to Chugach State Park. The primary current use is wildlife habitat, with occasional use by hikers or hunters. None of the parcels has any active DNR authorizations or known development or mineral potential. The inclusion of these parcels in Chugach State Park will not change access for hunters, hikers, or others who currently use these parcels. MR. BEUTEL moved to the summary table on the eleventh slide, "LWCF Conversion Replacement land summary." He noted that values for the parcels listed on the table are based on tax- assessed or estimated values and that appraisals by a certified appraiser will be required as part of the LWCF conversion. 1:20:28 PM MR. BEUTEL turned to the twelfth slide, "Eagle River Parcel 1," and stated that this parcel covers 60 acres in the Meadow Creek Valley, has an estimated value of $150,000, and north of the parcel are some larger lots that are residential development. MR. BEUTEL spoke to the thirteenth slide, "Eagle River Parcels 2 and 3," and said these parcels are further out Eagle River Road. Parcel 2 covers 60 acres on steep slopes near Berryhill Road and has an estimated value of $135,900. Parcel 3 covers 24 acres on steep slopes above Eagle River Road [and has an estimated value of $213,300]. Both parcels are adjacent to existing Chugach State Park parcels with a handful of private property. 1:21:48 PM REPRESENTATIVE FIELDS asked whether parcel 3 comes down to the Eagle River Road right-of-way. MR. BEUTEL replied that it comes very close but not quite to the Eagle River Road right-of-way. A section line easement connects from the road right-of-way to the parcel. That easement is very steep and while it could be hiked, it likely could not be developed. 1:22:32 PM REPRESENTATIVE RAUSCHER asked whether state lands that are not in the park are what surround parcels 1, 2, and 3. MR. BEUTEL responded that these parcels are bordered either by Chugach State Park land or by private land. 1:23:26 PM REPRESENTATIVE HANNAN said it looks like parcels 2 and 3 abut Chugach State Park. Regarding parcel 3, she offered her understanding that a section line easement can be exercised to access one's property, and that for parcel 3 it doesn't look like there is much private property. She asked whether there is a section line easement for parcel 1 that would be exercisable to access the private property that is two squares inside of it. MR. BEUTEL answered that the two squares between the proposed parcel 1 and the existing state park (in green) are accessed by a road that breaks off from Skyline Drive in Eagle River. There are platted rights-of-way, so the access practically and legally would be through that existing road system by the rights-of-way. Crossing that parcel of state land would not be needed as that parcel would be an impractical route. REPRESENTATIVE HANNAN offered her understanding that anyone can exercise a section line easement to access their private property. She said she therefore wants to make sure that the Division of Mining, Land and Water has said there is no section line easement which could be exercised on parcel 1 to access the land in those two squares. MR. BEUTEL replied that he will talk to the Division of Mining, Land and Water and get back to the committee. However, he said, there is not a section line that bisects that parcel. REPRESENTATIVE HANNAN said that would be the answer if no section line is there, then a section line easement cannot be accessed. MR. BEUTEL concurred. 1:27:31 PM MR. BEUTEL displayed the fourteenth slide, "Parcels 2 and 3," and resumed his presentation. He said the photo of parcel 2 shows the steep hillside with birch and spruce trees and the view across Eagle River from the parcel. Regarding the two photos of parcel 3, he noted that the bottom one shows Eagle River Road from the downhill edge of the parcel where the section line access would provide access for a hiker. MR. BEUTEL reviewed the fifteenth slide, "Parcel 4 Pioneer Peak." He specified that parcel 4 by Pioneer Peak [covers 10,160 acres] and is surrounded on two sides by Chugach State Park land and by private land on the other sides, including Native lands. He pointed out that the Pioneer Peak Trail heads uphill and that the first mile of the trail is in the Matanuska- Susitna Borough. MR. BEUTEL closed his presentation with the sixteenth slide, "Conclusion." He said HB 304 directs DNR to complete the LWCF conversion, retain road and utility rights-of-way, and convey Lions Club Park to the Eagle River Lions Club. Upon completion of these steps, he advised, Lions Club Park is secure as a community park, Chugach State Park boundaries are updated, and access is unchanged to the Chugach State Park additions for hunters, hikers, and other park visitors. 1:30:42 PM REPRESENTATIVE HANNAN remarked that most people who have hiked Pioneer Peak would be surprised to learn that it is not part of Chugach State Park. Given that the first mile of the trail is in the Matanuska-Susitna Borough, she asked whether Chugach State Park has an agreement to ensure guaranteed access to Pioneer Peak in perpetuity. She said she supports the proposed parcels for addition to Chugach State Park. MR. BEUTEL responded that he will research that access status and report back to the committee. REPRESENTATIVE FIELDS commented that securing this area on Pioneer Peak is of immense public value and from a public value perspective justifies the Eagle River Lions Club transfer. 1:32:33 PM REPRESENTATIVE MCKAY asked whether Lions Club Park is within the Municipality of Anchorage and whether DNR, as the owner, pays the property taxes on the parcel's estimated value of $1.4 million. He surmised that the term "convey" means to "give" the land. He further asked whether the Eagle River Lions Club will be responsible for paying the property tax on that land and what safeguards there are to ensure that the taxes are paid and to keep the park from being sold and turned into something else, like a mobile home park. MR. BEUTEL answered that a value is assigned for tax assessment purposes by the Municipality of Anchorage. However, he explained, the municipality doesn't charge any taxes on state- owned land; the state's interest in land is exempt from taxation by local government. Once the land is conveyed to the Eagle River Lions Club, the club would technically be responsible, but as a recognized 501(c)(3) nonprofit the club is eligible for a property tax exemption and thus the Lions Club should not have to pay property tax. Regarding protection of the property's status, a clause in the bill provides that DNR will retain reversionary interest so that if the property is no longer used as a community park it would revert to DNR. 1:36:33 PM CHAIR PATKOTAK opened invited testimony on HB 304. 1:36:52 PM RICHARD FAGG, President, Eagle River Lions Club, provided invited testimony in support of HB 304. He said Lions Club Park is the only facility of its kind in the Eagle River/Chugach area and its importance to the community cannot be emphasized enough. The community's youth enjoy it for sports and the people enjoy it for winter and summer recreational activities as well as attending concerts, so it is hard to imagine the community without this park. When completed the tennis courts will host both tennis and pickle ball tournaments and play. A dog park will also be completed this summer and the playground will be renovated and new equipment added. The bill will allow the Lions Club to continue to maintain and promote these activities for community members and keep the park open for everyone to enjoy. He urged the passage of HB 304. 1:38:34 PM CHAIR PATKOTAK opened public testimony on HB 304. 1:39:04 PM BILL STOLZE, former representative in the Alaska State Legislature, testified in support of HB 304. He said he has used Lions Club Park for over 50 years and is now a Lions Club member. He reminisced regarding how the park used to be and how it has now grown into a state-of-the-art facility. All of this has been done without any operating help from state or local government, although capital help has been received over the years. There is no charge to anyone for using the facility. The clubhouse is the largest community facility in the area and events could not happen without it. As someone who fought for the permit extensions, he is now glad to see this [transfer] happen and be permanent. 1:42:06 PM DAN SADDLER, former representative in the Alaska State Legislature, testified in support of HB 304. He said Lions Club Park is a tremendously important asset to the community - it is the heart of sports, civic, and social activities. The bill is a win-win because it provides certainty in the ownership of this facility for Eagle River and provides additional land for Chugach State Park, which is another important part of the community and the state. He commended the sponsor for coming up with a way to resolve this issue that benefits the people of the community. He urged the committee to pass HB 304. 1:44:09 PM RYAN JOHNSTON, Second Vice President, Eagle River Lions Club, testified in support of HB 304. He noted that he is the building manager at Lions Club Park. He said the bill would allow the Lions Club to continue managing the property as a community resource. 1:45:27 PM WILLIAM AFFLECK, Vice President, Eagle River Lions Club, testified in support of HB 304. He said he likes the phrases that have been heard it is a win-win and doesn't cost anything to the state. But more important, he continued, is the passion of the Eagle River Lions Club that makes it what it is. The new children's playground will be accessible for handicapped and non-handicapped children. Everything is done with volunteers and donations from the community. He was recruited by an Eagle River Lions Club member who began volunteering for the club as a child. It is all about the kids, he stressed, children are the future, and this is the way to prove it. 1:48:30 PM STEVE GROHOL, Membership Chairman, Eagle River Lions Club, testified in support of HB 304. He stated that as an eight- year-old he raked rocks on the first of the park's now ten baseball fields. Currently there are two football fields as well as tennis and basketball courts, horseshoes, and children's playground. There isn't a better park in Alaska, including municipal and state government parks, and Lions Club Park is run by all volunteers and the goal is to make sure the park remains free to everyone. The club has user agreements with other groups who then maintain the fields in return for using them at no charge. Every family in the community has been touched by the park. He offered his appreciation to DNR for working with the club to figure out a framework. 1:50:45 PM CHAIR PATKOTAK closed public testimony on HB 304 after ascertaining that no one else wished to testify. 1:51:14 PM REPRESENTATIVE MCKAY asked whether the agreement under the MOU requires Eagle River Lions Club to pay $50,000 to DNR to cover DNR's anticipated administrative costs. He further asked whether the club would have trouble coming up with that money. MR. FAGG replied that the Eagle River Lions Club has plans for handling this because it's worth it and the club will ensure it happens. The club will approach numerous entities for grants, including entities that have previously made donations. As well, the club has income streams from gaming activities with other groups and on its own that will help raise this money. 1:52:46 PM REPRESENTATIVE CRONK expressed his support for HB 304. REPRESENTATIVE HOPKINS expressed his appreciation for the sponsor's work on HB 304 to make this transfer happen. REPRESENTATIVE HANNAN noted that the advisory board for Chugach State Park unanimously supports this transfer, the park's management plan going back several years calls for the transfer, and Lions Club Park will remain a [community] park after the transfer. She said she therefore supports the bill. REPRESENTATIVE RAUSCHER thanked the bill's sponsor for her work. REPRESENTATIVE SCHRAGE said he associates himself with Representative Hannan's comments and commends the sponsor for making a win-win situation happen. 1:55:02 PM REPRESENTATIVE KEN MCCARTY, Alaska State Legislature, as a co- sponsor of HB 304, offered comments on the bill. He noted that Lions Club Park has been there for 60 years and is strictly run by volunteers. Hundreds, if not thousands, of people in the community made the park's development happen. He related his past involvement with the tennis courts and that the cost of their renovation was only $70,000 due to the work being done by volunteers and in-kind donations. He pointed out that the park is not named after any one person, it is simply Lions Club Park because of the involvement of hundreds of volunteers. It is known as the park of the people. Bringing in the other parcels as additions to Chugach State Park solves the issue of Lions Club Park being an island in the state park system. The bill is a triple-win because the legislature gets to make a good decision. 1:57:59 PM REPRESENTATIVE MERRICK offered closing comments on HB 304. She noted that the enthusiasm of the witnesses shows the importance of the bill to the community. She said she hopes to get the bill through the legislature now because the lease expires in 2024 and some federal permitting needs to be done. She asked for the committee's support of the bill. CHAIR PATKOTAK announced that HB 304 was held over.