SB 165-AUTHORIZING TRANSFER OF RAILROAD LAND VICE CHAIR JOHNSON announced that the first order of business would be SENATE BILL NO. 165, "An Act authorizing the transfer of two parcels of land from the Alaska Railroad Corporation to the Municipality of Anchorage; and providing for an effective date." 1:09:48 PM JESSE CROSS-CALL, Staff, Senator Johnny Ellis, speaking on behalf of Senator Johnny Ellis, the prime sponsor of SB 165, explained that the bill would authorize the Alaska Railroad Corporation to exchange two parcels of land on Government Hill in Anchorage for land owned by the Municipality of Anchorage (MOA). The parcel of land to be exchanged is located on 3rd Avenue between the A and C street couplet. He related that the ARRC has worked with the MOA and the Government Hill Community Council on this exchange. The bill has a zero fiscal note. JESSE CROSS-CALL provided a section-by-section analysis of the bill. He referred to Section 1 of the bill, which describes the 1.93 acres of rail land and the specific parcel description with an appraised market value of $480,000. He related that the MOA would own the land after the trade and could subsequently subdivide or sell the parcel. The second parcel of land is one fifth of an acre near Government Hill Elementary School. The Anchorage School District would use the land to design a safer entrance to the Government Hill Elementary School. The parcel has an appraised market value of $122,000. JESSE CROSS-CALL explained that proposed Section 2 provides the purpose of the land transfer. The first parcel is surrounded by MOA owned or controlled land that is currently being redeveloped into a residential subdivision, and the transfer of the property will allow the area to be subdivided and more efficiently incorporated into the overall redevelopment plan. The second parcel will enable the MOA to develop safe and reasonable access to the Government Hill Elementary School. He explained that proposed Section 3 of the bill will allow the MOA to transfer land located on 3rd Avenue between the A and C street couplet in Anchorage and allows the ARRC to accept fee simple title to the land. The land is currently used for parking and is managed by the Downtown Parking Authority and is valued at $645,000. He referred members to a map in members' packets that highlight the land to be exchanged. He indicated the specific parcel of land is marked in red on the bottom of map. 1:14:30 PM MR. CROSS-CALL also pointed out that although the value of the land that the MOA is proposing to trade is valued at $602,800, the MOA has stated it will not request additional consideration for the difference in the property value. 1:15:27 PM REPRESENTATIVE GRUENBERG recalled the area, and referred to Block B, tract A of the parcel, which previously was the site of an auto detailing shop. He offered his belief that at one time it was also a gas station. He expressed concern about any potential remediation of the land. JESSE CROSS-CALL answered that he did not know whether any remediation would be required. VICE CHAIR JOHNSON mentioned that the ARRC would be able to provide testimony on that topic. 1:17:37 PM BOB FRENCH, Co-Vice President, Government Hill Community Council, stated that community councils are the most basic form of local government for Anchorage. He related that the MOA looks to community councils for guidance on local issues. Government Hill is notable as Anchorage's first and oldest neighborhood. He related that the Alaska Railroad Corporation yards are located south of Government Hill, while Elmendorf Air Force Base is located on the north and east, and the Port of Anchorage tank farms are located to the west of Government Hill. MR. FRENCH testified in favor of SB 165. He explained that Government Hill's history has been closely tied to the Alaska Railroad and has the largest density of Alaska Railroad Corporation (ARRC) land in the midst of any residential area, excluding the terminal reserve lands. He pointed out that the land is located in many parts of the neighborhood. The ARRC lands can only be leased. Thus, their presence can make development very difficult, he opined. MR. FRENCH described the Government Hill neighborhood near the elementary school. He provided examples of activities such as a Spanish immersion program held at a magnet school that attracts students from all over Anchorage. Thus, substantial traffic traverses the neighborhood each morning and afternoon, he noted. He also noted that a Pizza Parlor and three or four roads join together near the parking lot. An old crossing bridge allows students to cross the street, but the bridge is often icy and unsafe. He opined that the Government Hill Elementary School entrance is a very difficult entrance situation for students. If the land swap is approved, the community has the hope of a solution to a longstanding problem in the neighborhood. He urged members to support SB 165. 1:20:38 PM VICE CHAIR JOHNSON, after first determining no one else wished to testify, closed public testimony on SB 165. He related that the committee now has a quorum to conduct business. REPRESENTATIVE GRUENBERG referred to Block P, Tract A, and inquired if any remediation issues exist since the site once housed a gas station. 1:20:59 PM WENDY LINDSKOOG, Assistant Vice President, Corporate Affairs, Alaska Railroad Corporation (ARRC) stated she contacted the real estate section of the ARRC just prior to the hearing. The ARRC confirmed that hazardous substances had been present on the site, but the Department of Environmental Conservation (DEC) previously completed a cleanup process on the land. She referred to an official DEC record of decision for the property. She read from the document, as follows: "The hazardous substance contamination has been adequately addressed and does not pose an unacceptable risk to human health or the environment." She stated the letter also contains a conditional closure based on institutional controls so that certain activities, such as if the owner removed soil would necessitate that the DEC be contacted. However, in terms of fixing an access issue, there is no problem. She offered to make the letter part of the record. 1:23:15 PM REPRESENTATIVE GRUENBERG recalled that the Hollywood Vista area contained low-cost housing and asked if the building had been "torn down." He said he imagined they had been removed. JAMES KUBITZ, Vice-President, Real Estate, Alaska Railroad Corporation (ARRC) answered that Representative Gruenberg is correct. He answered the building had been torn down for many years and is a vacant piece of land. He explained that the development has already begun, that the road and utilities have been completed and the site is currently ready for development. 1:24:36 PM REPRESENTATIVE GRUENBERG recalled the planned development for the parcel was to construct quality condominiums on the site. MR. KUBITZ answered that the MOA is planning the development. He offered his belief that the platting is for some single family residences and several condominiums. He explained that the lots are delineated as mixed-zone lots and are zoned accordingly. REPRESENTATIVE GRUENBERG expressed interest in the area and offered his belief that some nice residences could be added. RON POLLOCK, Executive Director, Anchorage Community Development Authority ACDA), stated that the project is separated into two sites. The easterly portion is divided into lots that are designed for duplex/condominiums with two units per building. The westerly portion of the development is designed for single family dwellings. 1:26:32 PM REPRESENTATIVE GRUENBERG remarked that the whole project sounds like a "win-win" project. He inquired as to the plans for the land on 3rd Avenue, and whether it would be used for parking. MS. LINDSKOOG answered that in the near future the land would be used for parking. She opined that the advantage to having one owner is in the event someone did have an interest in building on the land, that it would make the land easier to develop. If that were to happen, the land would also be on the municipal tax roll, which could be an added future benefit. She reiterated that the land currently will be used as a parking lot. 1:28:03 PM REPRESENTATIVE DOOGAN moved to report SB 165 out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, SB 165 was reported from the House Transportation Standing Committee.