HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT & TOURISM May 12, 1999 5:13 p.m. COMMITTEE CALENDAR TRANSPORTATION CORRIDOR DEVELOPMENT TAPE(S) 99-8, SIDE(S) A CALL TO ORDER Representative Phillips, Chairman, convened the House Special Committee on Economic Development & Tourism meeting at 5:13 p.m. PRESENT Committee members present at the call to order were Representatives Phillips, Rokeberg, Dyson, Halcro, and Cissna. SUMMARY OF INFORMATION CHAIR PHILLIPS reminded the committee that at the beginning of the year she requested committee members think about possible road projects. There were four different suggestions: Rock Creek - Nome area; Pogo Project - Northeast of Delta Junction; Donlin Creek - Kuskokwim area; and Williamsport Road - Iliamna Bay to Pile Bay. Each project ties into some form of resource development which was one of the tenets set. Chair Phillips noted that letters have been written to U.S. Senator Ted Stevens to place design funding for the Donlin Creek Mine Road in this year's appropriations bill. She noted that the Pogo Project could end up being a railroad extension versus a road. Chair Phillips announced that plans would be worked up on all four projects, if the committee is supportive. REPRESENTATIVE CISSNA commented that she had been working on the Internet Highway project. There are many places in which the last mile of connectivity is not happening; sometimes it is the private telephone companies. Perhaps, the best approach would be to have a hearing involving all the players possible, including the Utility Restructuring members. She indicated the need to perform a survey prior to that to determine the various Internet providers in the villages. TOM BRIGHAM, Director, Division of Statewide Planning, Department of Transportation & Public Facilities, informed the committee that of the four projects proposed, he believed that three are in the Statewide Transportation Improvement Program (STIP). He recalled that Williamsport Road, Donlin Creek, and Rock Creek had been reviewed, but said he would have to review the records. He pointed out that Williamsport - Pile Bay is the only road that could be classified as a general purpose road. The other projects receive points for economic development, but there seems to be an absence of other public benefits. He suggested the notion of cost sharing with the mine companies on these projects which would boost the scoring. Per Representative Dyson's request, Mr. Brigham agreed to review the department's records on the Williamsport project with regard to dock access and provide the committee with a cost analysis. MR. BRIGHAM commented that the department's system is set up to do community roads as well as to promote economic development. He noted that one model is the Red Dog Road for which AIDEA (Alaska Industrial Development and Export Authority) put up the funding and built the road. Now the mine is paying that back over time. If such were proposed in these four projects, he was not sure the deposits would be rich enough to do so. However, there are other ways. He said that the department would look for some kind of private contribution which would be matched or propel a greater amount of public money to bring the project. There would be attempts to achieve the appropriate mix of private and public money. CHAIR PHILLIPS commented that the rail line to the Arctic Coal project is not listed, but can be added. MR. BRIGHAM informed the committee that with some of the high priority funds provided by Congress, the department will be performing a Northwest Alaska transportation plan analogous to the one recently completed in Southeast Alaska. In response to Representative Dyson, Mr. Brigham said that the department has looked into the road into Klutina Lake. He commented that there are some private land holdings impediments; however, there is recreational potential. There was discussion regarding other possible projects the committee could review. COMMITTEE ACTION The committee took no action. ADJOURNMENT The meeting adjourned at 5:42 p.m. NOTE: The meeting was recorded and handwritten log notes were taken. A copy of the tape(s) and log notes may be obtained by contacting the House Records Office at 130 Seward Street, Suite 211, Juneau, Alaska 99801-1182, (907) 465-2214, and after adjournment of the second session of the Twenty-first Alaska State Legislature, in the Legislative Reference Library.