CSHB 334(FIN)-MUNICIPAL PROPERTY TAX DEFERRAL/EXEMPTION      CHAIR BERT STEDMAN announced HB 334 to be up for consideration. 2:22:38 PM  REPRESENTATIVE JAY RAMRAS, Sponsor of HB 334, introduced the bill as an effort to deal with dilapidated buildings. He noted that much like the MacKay Building in downtown Anchorage, Fairbanks has the Polaris Building, which is boarded up and has become quite an eyesore. The condition is made more obvious due to the fact that it's located just across the street from the new Jay Rabinowitz Courthouse. Builder Marc Marlow, who has had experience with converting dilapidated buildings, has been working with Fairbanks community officials to get property tax concessions to encourage renovation of dilapidated buildings. However, there is some question as to whether one city council may bind a future council. HB 334 clarifies that once a local governing body enters into an agreement related to an exemption, it remain valid for the duration of the project. It still allows for local control and latitude for municipalities to strike a deal. The only exception is a beneficial occupancy, which is between a potential developer and the local municipality. CHAIR STEDMAN referenced page 1, line 12 and said he understands that once a property is sold all the deferred taxes would be due to the municipality. REPRESENTATIVE RAMRAS responded changes were made in the Finance Committee because of substantial occupancy issues that arose. The concern related to creating an unfair advantage for a developer who then became a landlord that didn't participate in the sale of the building. CHAIR STEDMAN asked for clarification that there would not be multiple stacking issues. REPRESENTATIVE RAMRAS responded he believes that is correct. SENATOR KOOKESH asked whether the McKay building was refurbished under this statute or under municipal ordinance. REPRESENTATIVE RAMRAS replied Mr. Pound informed him it was a combination, but there hasn't been clarifying language. HB 334 would provide a developer certainty that once a tax exemption has been secured; it will remain in effect through the life of the project even if the local governing body changes composition. The hope is that the clarifying language will give developers certainty so they're willing to rehabilitate eyesores and thereby provide regentrification to communities. SENATOR GARY STEVENS asked for assurance that municipalities would have the option of adopting this and that it would in no way be a mandate. REPRESENTATIVE RAMRAS said that's correct. 2:31:35 PM CHAIR STEDMAN asked him to discuss the procedure if a developer were to abandon a property that had been exempted. REPRESENTATIVE RAMRAS responded HB 334 isn't meant to address a default by a developer. SENATOR WAGONER commented anything that helps communities is worth consideration and he could see the need, but more than likely just a few properties would fall under this bill. REPRESENTATIVE RAMRAS responded the head of the Alaska Tourism Industry Association (ATIA) sees the bill as a potential vehicle for various cities to use to renovate dilapidated buildings that might be used in the tourism industry. ATIA is the only private sector entity that made contact, which is why he went out of his way to contact Mr. Marlow to get his perspective and assure himself that this legislation wouldn't benefit just one party. SENATOR GARY STEVENS motioned to report CSHB 334(FIN) and attached fiscal note(s) from committee with individual recommendations. There being no objection, it was so ordered.