HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE April 14, 1994 2:30 p.m. MEMBERS PRESENT Representative Harley Olberg, Chairman Representative Jerry Sanders, Vice-Chair Representative Con Bunde Representative Ed Willis Representative Bill Williams Representative Cynthia Toohey MEMBERS ABSENT Representative John Davies OTHER LEGISLATORS PRESENT Representative Gary Davis COMMITTEE CALENDAR Long Range Municipal Planning Presentation WITNESS REGISTER GARY WILLIAMS, City Manager City of Whittier P.O. Box 608 Whittier, AK 99693 Phone: 472-2337 POSITION STATEMENT: Presented the City of Whittier's Redevelopment and Urban Design Plan AMES BARNETT, Attorney City of Whittier 10050 Prospect Drive Anchorage, AK 99516 Phone: 346-2755 POSITION STATEMENT: Provided information ACTION NARRATIVE TAPE 94-17, SIDE A Number 000 CHAIRMAN HARLEY OLBERG called the meeting to order at 2:35 p.m. Members present at the call to order were Representatives Willis, Bunde, Williams and Toohey. He noted for the record a quorum was present. Number 017 GARY WILLIAMS, CITY MANAGER, CITY OF WHITTIER, presented the City of Whittier's Redevelopment and Urban Design Plan saying, "I'm really gratified by the opportunity to present to you what I think is a very happy vision of the future in these gloomy times...but first of all, I'd like to say, thank you very much that in your wisdom, in the last session you appropriated money sufficient to match the ISTEA (Intermodal Surface Transportation Efficiency Act) funds which can put a road into Whittier. I also would share with you that the environmental impact statement which can make this all possible, is in draft form now... From that we've learned a great deal about what it is that we need to do to prepare for the future. Indeed, that's what this report to you is all about...to share with you...what will accrue to the state of Alaska when we are able to realize the benefits of the road access project. We will indeed, realize economic benefits far, far in excess of that investment that you have made in us..." MR. WILLIAMS continued, "The first thing I wanted to do is give you a perspective on Whittier as it exists today... (He reviewed numerous illustrated charts.) When he referred to the railroad yards he said, "This is an area that the city of Whittier and the railroad are working very diligently to come to terms on how this can be used for a higher and better use than it is today, yet how can we accommodate the railroads capability to operate the roll on/roll off capability. And that is an important subject that we are working on with the railroad, and I want to say to you that despite the difficultly that the city and the railroad have experienced in the past, I think we have dawned a new era in terms of that relationship and we will, I think very soon, have a working relationship that implements the plan... Number 084 REPRESENTATIVE CYNTHIA TOOHEY asked how many of the other committee members have visited Whittier. All, but Representative Bill Williams had. MR. WILLIAMS said, "...we felt that we had to show that indeed Whittier can accommodate the visitation or market who will seek out Whittier. (He then referred to a report produced by International Resort Advisors.) He offered many details of long range planning and added, "So by implementing this plan which provides for living space for some 1,500 souls in the future, looking out 20 years, provides ample commercial and economic development here and the creation of an actual city hall... we're able to create a real community in western Prince William Sound..." MR. WILLIAMS continued, "International Resort Advisors was adamant about the point that there is a certain level of amenities and infrastructure that you must provide in order to retain your market. Our market is estimated to be in the low case scenario, the first year the road is open, 900,000 visitors. We currently can accommodate without undue grief, 200,000 visitors..." Number 253 REPRESENTATIVE TOOHEY said, "You've approached the railroad obviously, and they are willing to give? sell? lease the land to you guys?" MR. WILLIAMS replied, "There are probably many ways in which this can be done and the next step in this process is a bilateral agreement between the city and the railroad which implements the intra plan as operational between the railroad and city. What we adopt, will become the game plan... whether they lease this building to the city of Whittier, whether they find a developer to develop it, whether they develop it themselves..." JAMES BARNETT, ATTORNEY, CITY OF WHITTIER, said, "What we understand is that they need the 1.75 million (dollars) required to reconfigure themselves to get out of the way but essentially, once they have that money to reconfigure themselves, the basic concept is that they're going to provide the land for free with the expectation that there will be leases on the commercial parcels. But the notion is that where you saw all those parking lots, there will be private operations like you see in Seward or Homer, who are going to be paying the railroad for the right to be there. The railroad sees a real estate opportunity if they commit the land." Number 286 REPRESENTATIVE CON BUNDE said, "I see you have a cruise ship dock there. I assume you are going to do something to encourage them to come back." MR. WILLIAMS said, "Yes, basically the encouragements need be very little. They've told us they want to come back if there's a road, they will be back provided they have a dock. And the reason they left was the railroad said we cannot guarantee our dock...some parts of it...are in rather bad repair. That, and the fact that the tariff was quite high... The cruise ship industry decided because they are a business and they like a stable environment in which to work, they decided Seward would be a better...alternative." MR. WILLIAMS continued, "To do what you see there is an investment of about three million dollars. About $1.2 million to revitalize the marginal wharf and dock to the extent that it can be completely safe and handle virtually any size cruise ship coming to Alaska... We want to provide the amenity that attracts them to Whittier..." He then provided details of the amenities in the plan. Representative Sanders joined the committee at 2:45 p.m. Number 315 MR. WILLIAMS then said, "The next step that we will begin going through in this plan (is), after it is adopted by the planning commission as the comprehensive plan... We'll begin packaging all of the redevelopment configurations and this is just one of 26 redevelopment packages that need to be put together and taken out for financing, and that is the next step that we'll begin going through in this process." MR. WILLIAMS concluded, "The bottom line to all of this means that we create an economy that IntRA (International Resort Advisors) expects will reach $30 million annually through all of the activities that are planned. It will see an investment of private money of $80 million. There will obviously be an investment of public infrastructure development money. The plan also includes something that we've got to be looking at right away, which is a sewage treatment facility. We now have primary treatment which is fine for 280 souls, and we exist under an EPA waiver now because the effluent is not that toxic to Passage Canal. If we touch the system, we're obviously going to loose that waiver and we're suddenly off and running on a $1.6 million primary treatment facility. That's one of the first and biggest steps that we've got to take in this initial redevelopment plan... There's a certain minimum level of investment that needs to made in order to attract that market...provided that we have road access. Road access obviously is a condition precedent to all that we've talked about today..." REPRESENTATIVE GARY DAVIS asked, "What is the overall status of the landownership? You've touched on the railroad owning land. What about the city or borough or private and federal?" MR. WILLIAMS said, "There are three regimes of ownership. The railroad being the largest owner of land...amounting to about 70 percent of the waterfront and 50 percent of the entire core area. The city of Whittier's ownership: ... when I say "city" I'm talking about people who also own land privately... The other regime of ownership is the U.S. Forest Service and all of the land exterior to the city limits...is in U.S. Forest Service hands." REPRESENTATIVE TOOHEY, MR. WILLIAMS and MR. BARNETT discussed the ownership of properties outlying Whittier. Number 494 REPRESENTATIVE TOOHEY asked if the other 280 residents of Whittier "share" the favorable views of Mr. Williams on this development. MR. WILLIAMS indicated generally, yes. REPRESENTATIVE DAVIS asked, "On the harbor, what is the current capacity of the harbor and what's your waiting list?" MR. WILLIAMS said, "332 boat capacity and we have a waiting list that's more than 200 long." REPRESENTATIVE ED WILLIS said, "How about that Buckner Building, what's the status of that?" MR. BARNETT gave a history of the building, including its builder's bankruptcy. He said, "The court has since agreed to abandon the property. So essentially no one owns it. The only party that probably could claim it today would be Mr. Zamorello, but for him to own it he'd have to pay the back taxes which approach a quarter of a million dollars." REPRESENTATIVE WILLIS asked if it was boarded up? MR. BARNETT said, "No." REPRESENTATIVE BUNDE said, "The question is why doesn't the city take possession?" MR. BARNETT said, "That's certainly an option for the city, the city would (then) have to board it up and fence it up. It's wide open right now." MR. WILLIAMS said, "It's a serious problem that has a $40,000 price tag to solve." CHAIRMAN OLBERG said, "For the city to take it back, you also take back all of the liability." MR. BARNETT reminded Chairman Olberg, "One of our very small legislative requests is in fact to put a fence around the Buckner Building." CHAIRMAN OLBERG adjourned the meeting at 3:08 p.m.