HOUSE SPECIAL COMMITTEE ON ECONOMIC DEVELOPMENT AND TOURISM January 27, 2000 5:10 p.m. COMMITTEE CALENDAR Review of transportation corridor issues and issuance of priority for future meeting topics. TAPE 00-1, SIDE A CALL TO ORDER Representative Phillips, Chair, convened the House Special Committee on Economic Development and Tourism meeting at 5:10 p.m. PRESENT Committee members present at the call to order were Representatives Phillips, Cissna, Kerttula, and Dyson. SUMMARY OF INFORMATION CHAIR PHILLIPS introduced the new Committee Aide, Scott Petsel. Minutes of the last meeting were reviewed and approved. A list of issues concerning transportation corridors was read, and reports on them followed. REPRESENTATIVE DYSON reported that the Williamsport Road from Illiamna Bay to Pile Bay has badly deteriorated, washed out in many places, and is in need of repair. An upgraded road will improve access for recreation to Lake Illiamna and South Alaska. Representative Dyson also said people who live in the area have expressed some concern about impact on their lifestyle. Chair Phillips said improving this road would open up a whole new part of Alaska for recreation, commercial fishing, and mining. JEFF OTTESON, Statewide Planning Chief, Division of Statewide Planning, Department of Transportation and Public Facilities (DOT/PF) gave a brief update on studies that may result in cost savings to the state and the public. He mentioned that there is a safety issue involved with the Williamsport Road, and that its upgrade is a top priority with DOT/PF. Potential extension of the road across the top of Lake Illiamna also is being considered. MARK HICKEY, lobbyist for the Lake and Peninsula Borough, said that borough is in full support of the proposed roads. Discussion among Representative Dyson, Chair Phillips, and Mr. Hickey focused on alternatives and why these were not preferred. Mr. Dyson stated that dredging the Kvichak River would solve the immediate freighting problems but would not provide access for fishermen with boats. MR. OTTESON said the Army Corps of Engineers will be studying the Williamsburg Road project as part of the Southwest Transportation Plan, and it will have a high priority this year. REPRESENTATIVE DYSON told the committee that he has been studying this issue for three years and is gratified to see that progress is being made. REPRESENTATIVE CISSNA spoke briefly about the Telecommunications Highway, focusing on individual Alaskans' use of that electronic communication technology throughout the state. Large corporations and the Denali Commission have taken up the issue and have made great strides, she said. Now we should facilitate a mentoring program to use that technology to link entrepreneurs who successfully market their products with people who want to do so. She also mentioned telemedicine. CHAIR PHILLIPS recommended that the committee schedule a meeting on e-commerce, covering all aspects of it including taxation, government, and legal issues. JANET SEITZ, Legislative Assistant to Representative Rokeberg, office updated the committee on the Pogo Gold Development Project, and mentioned that there were handouts in the packet. When Carl Hanneman of Teck Corporation, the developer, was contacted, he said Teck would consider all options: air, water, and an all-season road for transportation to the site. CHAIR PHILLIPS requested information about the length of the road. She mentioned that it should be possible to get some federal funds for planning through Alaska's United States Senator Ted Stevens. MR. OTTESON gave an update on DOT/PF work on the area-wide transportation plan. The next phase will focus on the northwest coast of Alaska, working with communities and resource companies and looking at the issue of access to tidewater. MR. PETSEL reported on the Rock Creek Road. describing Alternative Three, the preferred alternative. The road will provide access needed to permit development of hard rock mining of gold deposits in the area. The existing road is very winding and cannot be used year-round. The new road will be rerouted and straightened, thereby shortening the total length by two miles, and will be usable in all seasons. MR. OTTESON updated the committee on the proposed railroad line from Point Lay to the Red Dog Mine. The railroad line could carry ore to the dock and power to the mine and villages. CHAIR PHILLIPS mentioned that the price of power is a big problem across the NW, and said this railroad line could help pay for itself. REPRESENTATIVE DYSON said there is enough coal for 800 years of production at Point Lay. The railroad could make it possible to develop other deposits, including the Bornite and Kubuk copper mines. MR. OTTESON said the Red Dog dock expansion will be large enough for other operators to utilize for other commodities. CHAIR PHILLIPS then listed future meeting topics. Among them were future updates on the road issues, a joint meeting on potential economic ties to Alberta with the House Special Committee on Oil and Gas and representatives of the Provincial Parliament of Alberta, the Anchorage-Fairbanks Airport Authority issue, a mining overview, and an update on tourism, including cruise ship issues. REPRESENTATIVE DYSON, who had visited the Tulsequah Chief mine site in British Columbia with Representatives Harris and Green, said development there could be of benefit to Alaska and merits discussion. He said there may also be some interest in a road to from Copper Center to Tazlina Lake. CHAIR PHILLIPS announced the next meeting will be on February 8 and will feature a briefing on the National Missile Defense Program, which will have significant impact on Alaska. ADJOURNMENT The meeting adjourned at 5:55 p.m. NOTE: The meeting was recorded and handwritten log notes were taken. A copy of the tape and log notes may be obtained by contacting the House Records Office at 129 6th Street, Suite 229, Juneau, Alaska 99801-2197, (907) 465-2214, and after adjournment of the second session of the Twenty-first Alaska State Legislature this information may be obtained by contacting the Legislative Reference Library at 129 6th Street, Suite 102, (907) 465-3808.