SB 9-MILITARY FACILITY ZONES  [CHAIR BISHOP announced the consideration of SB 9.] 3:39:34 PM SENATOR JOHN COGHILL, Alaska State Legislature, sponsor of SB 9, related that Fairbanks is host to two military bases that have approved military facility zones. Setting up these facility zones entailed the Department of Military & Veterans Affairs (DMVA) approving a comprehensive plan that takes more time to go through than a zoning ordinance. This makes it a less valuable tool for this purpose. So, SB 9 proposes that the DMVA does not have to approve this comprehensive plan. He said these two issues in SB 9 and SB 39 have a huge impact on his district, but they would be helpful anywhere else in the state that deals with military issues. 3:43:21 PM CHAD HUTCHISON, staff to Senator Coghill, said SB 9 deals with military facility zones related to the decision to place 54 F-35 aircraft at Eielson Air Force Base. This bill is about maximizing the benefits for the local community and the surrounding areas next to a military installation - more is going on than just the F-35s - particularly in the Interior. He said some of the action points in the presentation came from the Fairbanks Tiger Team made up of Senator Murkowski, Senator Sullivan, and Congressman Young's office, Fairbanks North Star Borough Mayor Karl Kassel, Fairbanks Mayor Jim Matherly, and the North Pole Mayor, Bryce Ward. Other representatives include the Chamber of Commerce and the Fairbanks Economic Development Corporation headed by Jim Dawson. 3:45:19 PM MR. HUTCHISON said the F-35 is a thirsty aircraft and a lot of communities will benefit by having refueling facilities for it. He added that the military industry is an important part of the Fairbanks economy generally, but it also affects other areas of the state. The ones getting the attention now are Eielson Air Force Base and Fort Wainwright that just received the Apaches and the Grey Eagle Squadron, which is the unmanned aerial vehicle that houses the Long Range Discrimination Radar (LRDR). Fort Greely also has 14 new missile interceptors. All these facilities will be a potential benefit to Delta, to Anderson, Fairbanks, North Pole, and a lot of communities around Joint Base Elmendorf-Richardson (JBER). He displayed slides of planned military construction projects given to them by the Army Corps of Engineers (ACE) saying their number illustrates the need to move quickly, because there is a short window in 2017 in which to maximize the benefits. 3:47:40 PM He explained that military facility zones are designated areas established by the Department of Military and Veteran's Affairs (DMVA), usually close to a military installation, with the key purpose of ensuring that the industrial and economic development capacities in the surrounding area are maximized to the greatest extent possible. If the project is deemed to be helping the greater military mission, it can open up public and private financing, credit guarantee programs, and grants in those zones. MR. HUTCHISON explained that the DMVA considers a number of different factors in the applications from the local communities; one of them has to do with the comprehensive plan. The last time the Fairbanks North Star Borough did a comprehensive plan was in 2005, which was before military facility zones were analyzed. The problem with comprehensive plans is that they are resource-intensive and take a lot of time and the window of opportunity now is very limited. The suggested change adds the four words: "or local zoning ordinance" because they are quicker than comprehensive plans and will be a better fit for the window of time needed to maximize this benefit for the $561 million allocated military construction spending in September 2016. 3:50:43 PM CHAIR BISHOP said he would hold SB 9 for a future hearing. 3:51:58 PM JIM DODSON, Fairbanks Economic Development Corporation, Fairbanks, Alaska, said he supported SB 9. Not only does the current statutory authority cause undue time constraints, he said, but it also causes money constraints that no one has to take. In an effort to be more efficient and diversify the economy, they support the bill. 3:52:54 PM SENATOR GARDNER asked if there is any opposition to this bill. MR. HUTCHISON said he wasn't aware of any. 3:53:22 PM JEFF STEPP, staff to Karl Kassel, Mayor of the Fairbanks North Star Borough, Fairbanks, Alaska, supported SB 9. He said the statutory authority for municipalities and the DMVA to create military facility zones was established in HB 316 by the 27th Legislature in 2012. By design these zones are designated areas in close proximity to a military installation where increased industrial activity, economic development, workforce development, or training and educational activities will directly enhance the base's ability to fulfill its mission. That is what makes them so appealing to a community. Promoting expansion of infrastructure, such as Civil Defense and Homeland Security, can encourage increased private sector activity near these installations opens the door to state and federal business development tax credits, loans, and other funds. So, military facility zones can help facilitate economic growth and development in communities, regions, and the entire State of Alaska. The synergy created by shared knowledge and leveraged resources focused on these common concepts and goals can yield greater benefits for both the community and the military. MR. STEPP said the reason adding the language about planning and zoning to this particular legislation is so important is that currently a military facility zone must be determined to be consistent with the comprehensive plan for the area and those have broad land use designations and a wide variety of goals and policies. Military facility zone designation proposals are site- specific locations, which are generally smaller in scale than the broad generalized categories of different types of future land use listed in comprehensive plans. Site selection for a military facility zone is intended to be optimized for civilian/military interface and public/private partnerships. He explained that comprehensive plans address a wide range of land use elements, and many Alaska communities including the Fairbanks North Star Borough have plans that are outdated and did not anticipate a land-use type such as military facility zone designation and/or do not address military facilities, and sometimes not even economic development at all. Unfortunately, the process to amend a comprehensive plan is lengthy and can be expensive and often difficult. MR. STEPP said that zoning, however, is a regulatory tool that identifies the appropriate use of each specific parcel of land and the applicable process for obtaining a land use permit. Zoning regulations are required to be adopted in accordance with local comprehensive plans. Zoning is a better, quicker, more specific method for a community to evaluate a specific development proposal, a building site plan, or a military facility zone by applying the detailed standards that are found in both local zoning regulations and the military facility zone legislation. Greater flexibility in how to qualify for the military facilities zone designation provides communities around the state and the Fairbanks North Star Borough with more local control to decide the best location and process for determining compatibility. That is why this legislation is important to them. 3:58:04 PM BOB DOLE, Deputy Commissioner, Department of Military & Veterans Affairs (DMVA), said he supported SB 9 and that since the passage of the original bill they have had "exactly zero applicants for these sorts of zones." They believe the time and expense it takes to get one authorized is why Alaska doesn't have military facility zones. This measure provides a way to make it happen faster, is an opportunity to diversify the economy, and makes Alaska's bases more cost-effective and viable. 3:58:53 PM SENATOR MACKINNON joined the committee. CHAIR BISHOP closed public testimony on SB 9 and held it in committee for future consideration.