SENATE BILL NO. 153 "An Act authorizing a long-term lease of certain Alaska Railroad Corporation land at Anchorage; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken explained that this legislation "would allow the Alaska Railroad to lease certain corporation land in Anchorage for a period in excess of 55 years without reserving the right to terminate the lease." RICHARD SCHMITZ, Staff to Senator John Cowdery, explained that the purpose of this legislation is to allow Alaska Enfranchise Facilities, Inc to build a multi-family, senior housing project on leased Alaska Railroad land on Government Hill in Anchorage, utilizing a federal Housing and Urban Development (HUD), Section 2, grant. He continued that "the way the law now reads, the Alaska Railroad can approve leases in excess of 55 years; however, the railroad must reserve the right to terminate the leases in the event the land is needed for railroad purposes." However, he continued, recently enacted federal regulations require a minimum 75-year lease, and in order to accommodate this grant's timeline requirement, this bill seeks to remove the termination clause from the lease agreement. He noted that State statute allows the Alaska Railroad to request this language exemption as exampled by previous legislation, CS HB 344(FIN) [copy on file]. Mr. Schmitz noted that Alaska Enfranchise Facilities, Inc. has received a 55-year lease, but requires this legislation to accommodate the federal grant provisions. SFC 03 # 43, Side B 09:52 AM MARC MARLOW, Alaska Enfranchise Facilities, Inc., testified via teleconference from Anchorage to explain that Alaska Enfranchise Facilities, Inc (AEF) is a 501-C3 non-profit entity, which proposes to construct senior housing on the property it is leasing from the Alaska Railroad. However, he continued, in order to qualify for two federal grants to fund the project, a 75-year lease must be in place. SUSANNE DIPEITRO, Co-President, Government Hill Community Council (GHCC), testified via teleconference from Anchorage to voice concerns regarding this lease. She informed the Committee that two entities were interested in leasing the land and applying for the HUD grants; and, she opined, Mr. Marlow signed the lease paperwork with the knowledge that the 55-year lease did not qualify for the HUD grant. Now, she continued, after eliminating "the competitive process," he is "asking for you to essentially change the terms of the lease," so that he can qualify for money that the other applicant does not have the benefit of." Ms. DiPeitro continued that the GHSS would like to participate in the discussion regarding what is constructed on the site. She continued that she has furthered this request with Mr. Marlow, and she voiced that "an understanding" about this communication could be possible; however, she stated, the Community Council is on record in opposition to this legislation. Co-chair Wilken noted that the Committee has a letter [copy on file] from the GHSS, dated March 21, 2003, stating its position. He specified that the information supplied by Alaska Enfranchise Facilities, Inc. titled "Providing safe, Clean and affordable Housing for Alaskan Seniors" [copy on file] has also been received. Co-Chair Green asked Mr. Marlow for information regarding other legislation that he has previously submitted to the Legislature. Mr. Marlow responded that he was involved in legislation "to amend Alaska Statute 45 that would have allowed municipalities to extend property tax relief to projects that would provide for facilitating urban redevelopment." Co-Chair Green asked the name of the building that legislation involved. Mr. Marlow identified the building as the McKay Building in downtown Anchorage. Co-Chair Green asked whether the previous request involved more than one piece of legislation. Mr. Marlow stated that the bill was introduced in one Legislative session, but was not acted upon. Therefore, he continued, it was re-introduced the following session. Co-Chair Wilken ordered the bill HELD in Committee.