HB 304-CHUGACH STATE PARK/EAGLE RIVER LIONS CLUB  3:58:06 PM VICE CHAIR MICCICHE announced the consideration of HOUSE BILL NO. 304 "An Act modifying the boundary of Chugach State Park; directing the sale of land to the Eagle River Lions Club; and providing for an effective date." 3:58:43 PM REPRESENTATIVE KELLY MERRICK, Alaska State Legislature, Juneau, Alaska, sponsor of HB 304, introduced the legislation. The sponsor statement read as follows: In 1964, the Eagle River Lions Club was granted a special land use permit by the Department of Nature Resources for lands within the future boundary of Chugach State Park. The original permit was for 20 years and has been renewed twice; the current permit expires January 2, 2024. Lions Club Park is a very popular community park encompassing 40 acres, centrally located in Eagle River at the junction of Eagle River Road and Eagle River Loop Road. Since 1964 when this agreement was finalized, the Eagle River Lions Club has developed the park, building baseball fields, the clubhouse building, and other facilities. As the community has grown, Lions Park has become a recreational staple of the town. Many public events are held there, from sports like little league to community gatherings and holiday fireworks. The Alaska Supreme Court's 2013 decision in SOP v. DNR requires that permits for use of legislatively designated state parks must be revocable at will. This decision means that DNR cannot issue a new permit to the Eagle River Lions Club, since the facilities cannot be readily removed. Both the Lions Club and the Department of Natural Resources believe that the Eagle River community will be better served by this park if the Eagle River Lions Club is allowed to operate the park under their direct ownership. This requires a modification of the Chugach State Park boundary and removes this land from it. A memorandum of understanding between the Lions Club and the Department of Natural Resources outlining the terms has been signed by both parties. Four parcels of approximately 10,304 acres of general state land will replace the 40-acre parcel being conveyed to the Lions Club. There is no cost to the State, as the Lions Club will cover the fees to the department and any appraisal costs associated with all five parcels. HB 304 ensures this treasured part of the Eagle River community will be around for years to come. REPRESENTATIVE MERRICK reported that HB 304 had a zero fiscal note. 4:00:42 PM DAN BEUTEL, Natural Resources Specialist III, Division of Parks and Outdoor Recreation, Department of Natural Resources (DNR), Anchorage, Alaska, presented the PowerPoint, Lions Club Park Chugach State Park during the hearing on HB 304. MR. BUETELL advanced to slide 3 Lions Club Park and Chugach State Park and paraphrased the following: • The Eagle River Lions Club developed and operated Lions Club Park under a series of permits from DNR. The current 20-year permit expires January 2, 2024 and cannot be renewed as explained below. • The organized sports fields, clubhouse with alcohol sales, and community park are very different from the rest of Chugach State Park. DNR believes that the Eagle River community will be better served by Lions Club Park if the Eagle River Lions Club are allowed to operate the park under their direct ownership. This requires modification of the Chugach State Park boundary. MR. BUETELL advanced to slides 4 and 5 and reviewed the history of Lions Club Park and Chugach State Park: • DNR acquired this 40-acre parcel in 1961 as a Mental Health grant • DNR permit issued to the Eagle River Lions Club effective January 2, 1964, with a 20-year term. • Eagle River Lions Club began developing the park in the 1960's and 70's, building baseball fields, the clubhouse building, and other facilities. • Chugach State Park was designated by the legislature in 1970, including all state-owned land in this section, subject to valid existing rights. This section was presumably included because Eagle River flows through the southern portion (Section 13, Township 14 North, Range 2 West, Seward Meridian). • Land and Water Conservation Fund (LWCF) grants from the federal government were first used in Chugach State Park in 1970, shortly after park designation. LWCF grants require the state to preserve the park for outdoor recreation in perpetuity. Any use other than outdoor recreation constitutes a "conversion" and requires replacement land of equal value be added to the park. • Division of Parks and Outdoor Recreation renews the Eagle River Lions Club's permit for 2 additional 20-year terms. The current permit expires January 2, 2024. • Alaska Supreme Court's 2013 decision in SOP v. DNR requires that permits for use of legislatively designated state parks must be revocable at will. This decision means that DNR cannot issue a new permit to the Eagle River Lions Club, since the facilities cannot be readily removed. 4:04:05 PM MR. BUETELL displayed slides 6-8 that show the following Lions Club Park activities and facilities: baseball and softball fields, areas for football, tennis, basketball, and horseshoes, and the picnic shelter, playground, and clubhouse. MR. BEUTEL advanced to slide 9 to show the contrast in Chugach State Park. He reviewed the following highlights: • Chugach State Park covers approximately 485,000 acres, mostly undeveloped mountains, stretching from Knik River Road to Turnagain Arm. • Visitor activities include sightseeing, hiking, ATVing, snowmobiling, skiing, hunting, fishing, and more. • Facilities are primarily trails, trailheads, campgrounds, and public use cabins. • Chugach State Park has no other facilities like Lions Club Park for organized team sports. No Alaska State Park has a facility comparable to Lions Club Park. The Division of Parks and Outdoor Recreation lacks the experience, funding, or authority to operate facilities for these types of sports. 4:05:43 PM MR. BEUTEL advanced to slide 10, LWCF Conversion Replacement Land. He reviewed the following highlights: • The Land and Water Conservation Fund (LWCF) requires replacement land of equal value be added to Chugach State Park to replace Lions Club Park. There are 4 parcels of general state land, 3 in Eagle River Valley, and one on Pioneer Peak, which are proposed replacement parcels. • All 4 proposed replacement parcels are steep mountains adjacent to Chugach State Park. The primary current use is wildlife habitat, with occasional use by hikers or hunters. None of them has any active DNR authorizations or known development or mineral potential. • The inclusion of these parcels to Chugach State Park will not change access for hunters, hikers, or others who currently use these parcels MR. BEUTEL displayed the table on slide 11, LWCF Conversion Replacement land summary that shows that the 40 acres that Lions Club Park occupies in Chugach State Park has an estimated tax assessment value of $1.4 million. The four parcels that would be added to Chugach State Park through the LWCF conversion occupy more than 10,000 acres and have an estimated tax assessment value of just under $1.5 million. He noted that as part of the LWCF conversion process, the parcels would all need to be appraised. MR. BEUTEL displayed slides 12-15 that describe the four parcels that would be added to Chugach State Park: He reviewed the following highlights: Eagle River Parcel 1  • Parcel 1 covers 60 acres in the Meadow Creek Valley. Estimated value of $150,000.  • Legal description T. 14 N., R. 1 W., S.M., Section 5, SE1/4 SW1/4, S1/2 SW1/4 SE1/4  Eagle River Parcels 2 and 3  • Parcel 2 covers 60 acres on steep slopes near Berryhill Rd. Estimated value of $135,900. • Legal description T. 14 N., R. 1 W., S.M., Section 24 NE1/4 SW1/4, E1/2 NW1/4 SW1/4 • Picture from parcel 2 shows a steep hillside and view across Eagle River • Parcel 3 covers 24 acres on steep slopes above Eagle River Road. Estimated value of $213,300. • Legal description T. 14 N., R. 1 E., Section 30, Lot 3 • Picture depicting parcel 3 shows steep hillside and Eagle River Road Parcel 4 - Pioneer Peak  • Parcel 4 covers 10,160 acres above Knik River Road. Estimated value at least $1 million (no tax assessed value) • Legal description T. 16 N., R. 3 E., S.M., Section 7, Section 8, excluding N1/2 NE1/4, Sections 17-21, Sections 27-35 4:08:24 PM FIX MR. BEUTEL advanced to slide 16, Conclusion and highlighted the following points: • The proposed bill directs DNR to: • Complete the LWCF conversion • Retain road and utility rights-of-way • Convey the Lions Club Park to the Eagle River Lions Club • Upon completion of these steps • Lions Club Park is secure as a community park • Chugach State Park boundaries are updated • Access to the Chugach State Park additions for hunters, hikers, and other park visitors is unchanged 4:09:11 PM SENATOR BISHOP asked for the timelines to complete the appraisal and finish the transaction. MR. BEUTEL answered that appraisers have been contacted and will be hired once the bill passes. He estimated that the appraisals will take one field season, after which the paperwork for the conversion will be completed. The entire transaction will probably be finished in 12 months after the bill passes. SENATOR BISHOP relayed his summary that in 12 months the transaction is estimated to be complete and everybody will be happy. MR. BEUTEL replied that the real push is to complete the transaction before the current permit expire in January 2024. 4:10:27 PM VICE CHAIR MICCICHE asked if he agreed that the Eagle River Lions Club would be required to pay $50,000 to cover DNR's costs. MR. BEUTEL responded that is correct. VICE CHAIR MICCICHE observed that the reason for no fiscal note was that there would be no cost to the state. MR. BEUTEL answered yes, DNR has a memorandum of understanding with the Eagle River Lions Club such that the club would pay for the third-party appraiser and DNR's administrative costs. 4:11:25 PM VICE CHAIR MICCICHE said he assumes that the Eagle River Lions Club paid for the improvements over the last 50 years and that there would be no ongoing maintenance encumbrance to the state. Once the land is conveyed, the Eagle River Lions Club will be responsible for all ongoing costs. MR. BEUTEL responded that is correct; the state would have no ongoing costs. 4:12:23 PM VICE CHAIR MICCICHE turned to invited testimony on HB 304. 4:12:33 PM RICHARD FAGG, President, Eagle River Lions Club, Eagle River, Alaska, testified by invitation on HB 304. He stated that this park is the only facility of its kind in the Chugiak area. The park is very important for summer and winter recreational activities and it would be hard to imagine the community without it. He relayed that the refurbished tennis courts will host both tennis and pickleball tournaments and play. The football fields are used by Pop Warner teams, the baseball fields are used by both boys' and girls' softball teams. In the summer the basketball courts are horseshoe pits are used constantly. The park offers tremendous opportunities for recreational activity. MR. FAGG reported that organizations that use the park aren't charged anything, but are asked to help with some maintenance. He mentioned plans for this summer to create a new dog park and renovate the playground, including the addition of new equipment. He urged the committee to support HB 304. 4:14:37 PM VICE CHAIR MICCICHE opened public testimony on HB 304. 4:15:00 PM RYAN JOHNSTON, Building Manager and Second Vice President, Eagle River Lions Club, Eagle River, Alaska, Testified in support of HB 304. He spoke about his connection to the park relayed that the Eagle River Lions Club would be honored to continue to continue to manage and continue to develop it as the valuable resource it is to the community. He asked the committee to support the property transfer so the club could continue its stewardship of the park. VICE CHAIR MICCICHE recognized former Senator Stoltze as the next testifier. 4:16:02 PM BILL STOLTZE, former Senator representing self, Eagle River Lions Club, Chugiak, Alaska, testified in support of HB 304. He stated that he was a member of the Eagle River Lions Club and a half dedicated user of the park. He said this is good legislation that will allow his fellow Lions to continue their good work on behalf of the community, particularly youths. 4:16:58 PM VICE CHAIR MICCICHE closed public testimony HB 304. SENATOR STEVENS commented that he was still supportive of the bill. 4:17:22 PM VICE CHAIR MICCICHE found no further questions or comments and solicited a motion. 4:17:29 PM SENATOR STEVENS moved to report HB 304, work order 32-LS0928\I, from committee with attached [fiscal notes] and individual recommendations. 4:17:41 PM VICE CHAIR MICCICHE found no objection and HB 304 was reported from the Senate Resources Standing Committee.