SB 235-APPROVING LAND TRANSFERS FOR RAILROAD SENATOR LOREN LEMAN, sponsor of SB 235, explained that the measure deals with land transfers among the Alaska Railroad Corporation (ARRC), the U.S. Army, the U.S. Air Force, the Municipality of Anchorage (MOA), and Eklutna, Inc. He asked Ms. Highland to present the sponsor statement and answer questions. MS. WHITNEY HIGHLAND, an intern to Senator Leman, read the following statement. SB 235 authorizes the ARRC to enter into several land exchange and transfer agreements needed for a track upgrade and realignment project. This bill approves exchanges of railroad land for certain parcels held by five landholders who are the Army, the Air Force, Eklutna, Inc., Chugach Alaska Corporation, and the Municipality of Anchorage (MOA). SB 235 also approves the conveyances of 5.1 acres to certain private landowners in Chugiak who live adjacent to railroad right-of- way. It is federal law that abandoned railroad land will be reverted back to the federal government after 18 years. The federal government would then deed the land out to the adjacent landowners. SB 235 thus accelerates a land transfer that is already required to occur under federal law. The exchanges and transfers will allow the railroad's track realignment project between Anchorage and Wasilla to proceed and will also allow the Department of Transportation and Public Facilities to relocate a portion of the Seward Highway just north of Seward. Upgrading and realigning the track will increase safety and efficiency. A straighter track is safer due to reduced track and equipment wear, consistency in train handling, increased sight distance, and reduced maintenance requirements. Another benefit of this project is that the running time between Anchorage and Wasilla will be decreased from 95 minutes to less than 55 minutes, making commuter service a more viable option. This would also mean a potential reduction in the traffic growth and impact on the Glenn and Parks Highway. Most importantly for the communities neighboring the railroad, this project includes upgrades to vehicle crossings and public access amenities that will enhance safety and access across the tracks. The railroad plans an investment of between $45 and $60 million for its first phase of improvements and these funds will come from federal transportation grants as well as the Alaska Railroad's operating revenues. No general funds will be used for this project. This project is supported by a number of organizations including the Alaska Visitors' Association, the Alaska Chamber of Commerce, Chugiak-Eagle River Chamber of Commerce, Palmer Chamber of Commerce, Wasilla Chamber of Commerce, Anchorage Economic Development Corporation, Matanuska-Susitna Convention and Visitors' Bureau, Anchorage Convention and Visitors' Bureau, and the City of Wasilla. CHAIRMAN HALFORD noted that, being a member of the Transportation Committee, he has reviewed this legislation and therefore has no questions. Number 879 SENATOR LINCOLN asked if anyone else would be testifying on SB 235. CHAIRMAN HALFORD said no one else signed up but that representatives of ARRC are available to answer questions. He noted a House hearing is being held on the same topic. SENATOR LINCOLN asked whether the realignment will have any effect on the Coastal Trail. MS. HIGHLAND responded that Senator Leman is aware of that issue which is very distinct and separate from SB 235. CHAIRMAN HALFORD asked if SB 235 will have no impact on the Coastal Trail. MS. HIGHLAND said that is correct. SENATOR PARNELL moved SB 235 from committee with individual recommendations and accompanying fiscal notes. Without objection, the motion carried.