SCR 1-SUPPORT ROADS/HOT SPRINGS LOOP ROAD CO-CHAIR HOLM announced that the next order of business would be CS FOR SENATE CONCURRENT RESOLUTION NO. 1(FIN), Relating to economic development generated by new road construction and to the design and construction of the Hot Springs Loop Road to connect Chena Hot Springs and Circle Hot Springs, of a highway along the Bradfield/Iskut Rivers transportation corridor, of the Knik Arm Crossing, of a road from Iliamna Bay to Pile Bay, and of other roads and highways. Number 0410 SENATOR GARY WILKEN, Alaska State Legislature, sponsor of SCR 1, began his testimony by saying he wanted the committee to consider what is possible in Alaska if there is courage to look ahead and build roads that would benefit residents, visitors, and entrepreneurs interested in developing land that is touched or accessed by the proposed roads. He said there are six roads that have been proposed for consideration and/or evaluation in this resolution. Senator Wilken began his PowerPoint presentation with a map of the proposed Hot Springs Loop Road, and oriented the committee by pointing out locations such as Chena Hot Springs, Circle Hot Springs, Fairbanks, the Steese National Conservation Area, Circle, and the Yukon River access. He said the loop road would connect Chena Hot Springs, a well- developed year-round tourist resort, to Circle Hot Springs; the trip could then become a two- or three-day trip in which one night is spent at each location. SENATOR WILKEN continued with a map of the second of the six proposed roads, the Bradfield/Iskut River Transportation Corridor. He oriented the committee to locations such as Wrangell and the Cassiar Highway. He said "this little piece of road" bypasses thousands of miles and connects Alaska with the [rest of the] world through the Alcan Highway and provides an alternate route from the road that goes through Skagway and Haines. He said there would be one tunnel, and instead of the flow going north, the flow would come south through the Alcan Highway. SENATOR WILKEN proceeded to describe the third proposed road, the Knik Arm Crossing. He noted that many people are already familiar with this project, and said that this is a billion- dollar project that opens up areas in the Anchorage area for development. SENATOR WILKEN went on to describe the proposed Pile Bay Road, pointing out Homer on the map, and saying that the project would provide fishermen access to two different fisheries. He told the members that the Department of Transportation & Public Facilities (DOT&PF) has a good presentation on this project, and explained that this road would require a couple of bridges and involves some "nasty stretches." However, it opens up the area to residents, and the commercial fishing industry, and it would also be a great drive for tourists. He added that it is about 14 miles from Pile Bay to Iliamna Bay. SENATOR WILKEN then showed a slide of the proposed 15-mile Donlin Creek Road, and pointed out the Kuskokwim River and Donlin Creek. He told members that there are gold resources and other minerals in that area and, a generation from now, it will transform the Southwestern area of Alaska, which is in need of industrial development. He said the way he sees it, this is, comparatively speaking, a road to Fort Knox [mine] which, by providing access, would be of benefit. Number 0864 SENATOR WILKEN completed his presentation with the proposed sixth road; the 2.5-mile Rock Creek Access Road near Nome. He said the road leads across the peninsula to a gold mining area. SENATOR WILKEN reiterated that there is a common thread running through all of the proposed six roads that are included in SCR 1. That common thread addresses the following three criteria: "1) Do they benefit the existing population? 2) Do they provide opportunity for tourists? 3) Do they allow development of the roads that they provide access to, or are they contiguous?" CO-CHAIR MASEK thanked Senator Wilken for the maps provided [as a PowerPoint presentation and in the committee packets] and for the presentation of the proposed roads projects. She asked if SCR 1 would include a specified listing that would indicate to whom the resolution would be forwarded. SENATOR WILKEN replied that although this had not been addressed, the list would be the "standard distribution list," from the President on down. CO-CHAIR MASEK wondered about the feasibility of the Hot Springs Loop Road, noting that the terrain near Chena Hot Springs was hilly, and the area includes a lot of wetlands. SENATOR WILKEN said that the road does not go quite to Chena Hot Springs, but is within 5 or 10 miles of [Chena] Hot Springs. He said there is a preliminary run - there are some R.S. 2477 trails through the area that are available, if "we assert them." He said, "The topography appears to accept a road, with normal road-building possibilities." Senator Wilken noted that a study was done in the 1980s on this project. Number 1027 REPRESENTATIVE OGG offered an amendment regarding a road that would open up the west side of Kodiak Island. He said this road would be of benefit to residents in the area, would contribute to increased tourism, and should also support the fisheries industry - thereby meeting the three criteria that Senator Wilken referred to earlier. The written amendment read [original punctuation provided]: p.4 Line 8, ADD: FURTHER RESOLVED that the Alaska State Legislature supports the completion of the identified needed improvements prioritized by the Alaska DOT STIP program for the realignment, reconstruction and providing of hard surface to Anton Larsen Bay Road on Kodiak Island. REPRESENTATIVE FATE said he understands the amendment and that there are other roads being proposed throughout the state that are short and connect villages in rural Alaska. He questioned whether this amendment would entertain other similar proposals, or if it pertained to this specific road. Representative Fate asked if this project had already been surveyed, proposed, or was in need of funding. He asked Representative Ogg for further clarifying information. REPRESENTATIVE OGG said the road does exist; however, it is in very poor shape and is in need of funding. REPRESENTATIVE FATE said he was speaking to the concurrent resolution as well as to the amendment. He said the roads that were included in SCR 1 were examples of roads with the highest needs and did not pertain to roads that have already been funded or earmarked, or where the design had been completed. He questioned the appropriateness of incorporating this amendment into SCR 1. SENATOR WILKEN said the intent of the SCR 1 is to highlight new roads that would be over and above what exists today. He said he has had numerous requests to include upgraded roads, which is what Representative Ogg's amendment appears to be. He stated that this resolution is not about upgrading roads; it is about new roads. He noted that because of an existing trail, there has been some discussion regarding the Pile Bay Road. However, a new road would probably have to be built, since the project requires two major bridges. Senator Wilken said that regarding the kinds of projects suggested by Representative Ogg, including them might in effect be "to jumpstart the STIP [Statewide Transportation Improvement Program]," which is to be avoided. He said he suspects that this road is or should be in the STIP process, where it would undergo an annual review and scoring process. He said if it is an existing road, efforts should be made to get it moved up in the STIP process so that it can be funded through traditional means, rather than highlighting it in a resolution that is really meant to highlight new roads that are of a more grandiose scale. CO-CHAIR HOLM concurred with Senator Wilken. Number 1347 REPRESENTATIVE OGG withdrew his amendment. CO-CHAIR HOLM asked Co-Chair Masek if she wanted to offer a conceptual amendment to ensure that the resolution would go to the federal authorities so that the Denali Commission, or whoever needs to know, would be advised. CO-CHAIR MASEK said she would be willing to offer an amendment, but would rather leave that decision to the discretion of Senator Wilken. SENATOR WILKEN said this was an oversight, and he would have Tim [Lamkin] work with Co-Chair Masek by reviewing other resolutions. CO-CHAIR MASEK concurred that they could proceed in that manner. REPRESENTATIVE KOOKESH asked if there had been any discussion with the owners of Chena Hot Springs or Circle Hot Springs, as the committee had heard in previous testimony [meeting of 2/6/03] that the owners had not been contacted. He asked if this situation had been corrected. SENATOR WILKEN responded that he had spoken with [the owners] last fall. He reported that their concern was "why are we talking about building $100-million roads when we can't take care of the roads that we have today." Senator Wilken said this was a valid point. He added that if U.S. Representative Don Young and U.S. Senator Ted Stevens were successful, Alaska would start receiving $450 million a year in no-match grant money, for six years. The money would come through the Denali Commission and the Rural Road Initiative. He said that the people of Alaska need to set forth, and "these are roads that we ought to at least consider." He said two things need to be done: "1) we need to pledge to maintain the roads that we have, and 2) at the same time have the courage to look to spend this money wisely. [This is money] that's going to be given to us; [this is money] that this state probably will not have the opportunity to access [again] for probably another 50 or 100 years." SENATOR WILKEN repeated that the roads in existence need to be maintained and at the same time new roads need to be built. He said the owners are "on board with this" and appreciate the efforts being made to make their areas accessible as tourist destinations. Number 1514 MIKE STREDNY, noting that he was a member of the Trails Advisory Commission, said he was speaking in opposition to SCR 1 on his own behalf. He said he was not in favor of building the proposed Hot Springs Loop Road because of difficulties with maintenance. He said that there have been difficulties with maintaining the Steese Highway. Mr. Stredny stated that the funding was cut and then restored at half of the level by the governor. He noted that the Chena and Circle Hot Springs do not have trouble drawing summer tourists. He noted that these roads would "trash" the Circle-Fairbanks Trail, which is now 100 years old, and that there are prior rights to be considered. He indicated that the resort owners are not that interested in the roads, and the driving force seems to be to "spend the money because we're going to get it." He commented that there is not sufficient foresight on how to maintain the roads. (Indisc.) doesn't suit roads very well. He pointed out that it will take an act of Congress to approve of crossing Birch Creek and the wetlands, and that the project will cost a lot of money. MR. STREDNY continued by saying when "you open it up" there are things to think about like hunting, for example. Mentioning Representatives Fate and Holm, he said that the Representatives are elected because of their support for hunting, and he said he believes things need to be "balanced a little bit." He concluded his testimony by asking Senator Wilken to clarify his previous comment referring to Fort Knox. SENATOR WILKEN responded that his earlier comment was comparing the Donlin Creek Road from the Kuskokwim River to the Donlin Creek gold deposit, to the access road from the Steese Highway to Fort Knox. He said the implication was that Fort Knox is to Fairbanks what Donlin Creek will be to the lower Kuskokwim Delta, that is, economic development with good jobs and a good property tax base. Number 1651 REPRESENTATIVE KOHRING moved to report [CSSCR 1(FIN)], as amended, out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, HCS CSSCR 1(TRA) was reported from the House Transportation Standing Committee.