CSHB 298(L&C)-LEGISLATIVE APPROVAL OF RAILROAD LEASES  CHAIRMAN TORGERSON announced CSHB 298(L&C) to be up for consideration. MS. ROBIN PHILLIPS, staff to Representative Lisa Murkowski, sponsor of HB 298, gave the following synopsis of the bill. The Alaska Railroad Corporation (ARRC) requested this bill, which extends the length of time they can lease lands from the current 35 years to 55 years. This change in statute will help cultivate economic development in communities along the Railbelt by making commercial and residential development on Alaska Railroad lands more viable. The current 35-year leases are an obstacle in leasing lands to large commercial and residential developers who need to secure long-term financing for their investments. Financial lenders are reluctant to invest in large scale projects requiring substantial equity participation when there's no guarantee the land will be available for 35 years. HB 298 will also make the ARRC's leasing practices more consistent with other state agencies. Both the University of Alaska and the Department of Natural Resources can lease land for up to 55 years. The proposed extension of the allowable lease term is supported by the following businesses, individuals and organizations: Anchorage Historic Properties, Anchorage Neighborhood Housing Services, Mel Tipton (Ship Creek tenant and commercial developer), Seward Ship's Drydock, Inc., Dowl Engineers, Northrim Bank, AIDEA, Yukon Fuel, Kantishna Holdings, Inc., A&A Construction and Development, Inc., the Anchorage Chamber of Commerce, City of Seward, Anchorage Assembly and Fairbanks Chamber of Commerce. MR. JIM KUBITZ, Vice President, Real Estate Division, ARRC, said there really hadn't been much controversy about this. It came from a demand from their tenants and leaseholders who really are looking for longer terms to lease lands. CHAIRMAN TORGERSON said he didn't know of any opposition either.