HOUSE SPECIAL ECONOMIC DEVELOPMENT AND TOURISM COMMITTEE April 14, 1999 5:15 p.m. COMMITTEE CALENDAR MAT-SU BOROUGH PRESENTATION: PROPOSED HATCHER PASS SKI AND RESORT DEVELOPMENT PLAN DISCUSSION: TRANSPORTATION DEV. TO RESOURCE AREA NEEDS TAPES 99-6, SIDE A & B CALL TO ORDER CHAIR GAIL PHILLIPS called the House Special Economic Development and Tourism Committee to order at 5:15 p.m. PRESENT Committee members present at the call to order were Representatives Cissna, Dyson and Halcro. Representatives Kerttula and Rokeberg joined the meeting at 5:19 and 5:25 p.m. respectively. Representative Barnes was excused. SUMMARY OF INFORMATION MAT-SU [MATANUSKA-SUSITNA] BOROUGH PRESENTATION: PROPOSED HATCHER PASS SKI AND RESORT DEVELOPMENT PLAN KYLE RANDICH, Vice-President, Hatcher Pass Development Corporation, was introduced by Darcie salmon, Mat-Su Borough Mayor, and he presented his company's plans to develop a ski area and year-round recreation area in Hatcher Pass in four stages: one, initial ski area with two chair lifts, base facility and night lighting; two, infrastructure development (power, utilities); three, village development (hotels, convention center, residential housing, golf course, additional ski area and lifts, ice rink and other recreation amenities); four, marketing program to attract destination visitors. According to an Alaska Industrial Development and Export Authority (AIDEA), the initial ski development could attract 100,000 skiers from within Alaska. AIDEA recommends keeping the capital improvement costs at $9 million, because beyond that figure too much debt service would be incurred. A study by Scott Goldsmith determined that the initial construction would support 150 jobs with a $5 million payroll, 138 winter jobs and $5 million in visitor spending. The land lease payment to the Mat-Su Borough is $100,000 per year with the Mat-Su Borough pledging to put the payment into the project development category. REPRESENTATIVE HALCRO was informed, upon request, that the AIDEA report referred to was published in 1994. He also was informed, upon request, that the Department of Transportation maintains the road. The corporation hopes to complete surveying by the fall of this year and by 2001 have a highspeed quad lift in operation. MIKE SCOTT, Manager, Mat-Su Borough, referred members to the last two pages in the presentation booklet outlining costs and projected income. The $13.3 million cost for phase I is almost secured with $8 million from the Hatcher Pass Development Corporation and about half of the balance secured to date. The corporation is asking for $1.2 million from the state, of which, $427,000 is already budgeted in the State Transportation Improvement Program (STIP) for capital projects and he hopes the state will fund the balance; $800,000. REPRESENTATIVE HALCRO commented that the property tax value of such a development would be valuable to the Mat-Su Borough. MR. SCOTT replied that, indeed, it would; however, the Mat-Su Borough was not in a position to advance funds based on this projected debt service. REPRESENTATIVE SCOTT OGAN informed the committee members that the Mat-Su Borough, unlike many others, suffers from private sector development, such as commercial fishing processing or port and harbor facilities that allow the governing entity to earn significant income from taxation. He voiced his strong support for the project. REPRESENTATIVE PHILLIPS added that she wants to encourage development of a light rail system from Anchorage to the Mat-Su area. MR. SCOTT said the Hatcher Pass area is ideal for attracting visitors as it is close to Anchorage, on the railway and highway to northern tourist destinations. It also has an adjacent historical attraction (Independence Mine) and major hotel chains have already approached the developers. DISCUSSION: TRANSPORTATION DEV. TO RESOURCE AREA NEEDS CHAIR PHILLIPS referred members to information in their packets about three transportation routes they will discuss at the next meeting. REPRESENTATIVE CISSNA referred members to information about developing Internet highway access to all Alaskans. Many rural Alaskans would be able to make a living competing on a worldwide basis for Internet business with such access. REPRESENTATIVE ROKEBERG discussed other points relating to Erate Subsidies relating to Internet access. He and Representative Cissna will meet together before the next committee meeting to share information. REPRESENTATIVE PHILLIPS said both topics would be discussed at the May 12 meeting. The next committee meeting is April 28 with two programs: Tlingit-Haida Central Council, jobs in Rural Alaska; Alaska Seafood Industrial update (and product samples). COMMITTEE ACTION The committee took no action. ADJOURNMENT CHAIR PHILLIPS adjourned the House Special Committee on Economic Development and Tourism at 6:25 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.