HOUSE TRANSPORTATION STANDING COMMITTEE March 9, 1993 5:00 p.m. MEMBERS PRESENT Representative Richard Foster, Chair Representative Gary Davis, Vice-Chair Representative Eldon Mulder Representative Al Vezey Representative Bill Hudson Representative Jerry Mackie MEMBERS ABSENT Representative Curt Menard COMMITTEE CALENDAR *HJR 28: Supporting increased access near Mt. McKinley through establishment of a visitor activity area at Kantishna. PASSED OUT OF COMMITTEE (* First public hearing.) WITNESS REGISTER REPRESENTATIVE TOM BRICE Alaska State Legislature State Capitol Juneau, Alaska 99801-1182 465-3466 Position Statement: Prime Sponsor of HJR 28 JOSEPH FIELDS, III, DIRECTOR Kantishna Group, Inc. P.O. Box 71045 Fairbanks, Alaska 99707 451-7906 Position Statement: In favor of HJR 28 GINNY WOOD 1819 Musk Ox Trail Fairbanks, Alaska 99708 455-4283 Position Statement: Against concept of HJR 28, felt current access was adequate. TERI CANERY 1816 Musk Ox Trail Fairbanks, Alaska 99708 455-4283 Position Statement: Against HJR 28, felt current access was adequate. LARRY IRVING, President Kantishna Group, Inc. 1205 Smythe Street Fairbanks, Alaska 99701 456-4298 Position Statement: Spoke in favor of HJR 28 and the need to expand services into the park. CONNEL MURRAY, Director Division of Tourism Department of Commerce and Economic Development P.O. Box 110801 Juneau, Alaska 99811-0801 465-2012 Position Statement: In favor of HJR 28 CLYDE STOLTZFUS, Chief Office of Strategic Mgmt. Planning and Policy Department of Transportation 3132 Channel Drive Juneau, Alaska 99801-7898 465-3900 Position Statement: In favor of HJR 28 LENORE SAPPINGTON Denali Citizens Council 2842 Bass Anchorage, Alaska 99507 522-1956 Position Statement: Observer; Against HJR 28 CINDY FIELDS P.O. Box 73303 Fairbanks, Alaska 99707 451-7906 Position Statement: Observer; In favor of HJR 28 PREVIOUS ACTION BILL: HJR 28 SHORT TITLE: SUPPORT KANTISHNA AREA TOURISM DEVELOP'T BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) BRICE, Kott, Mulder, Phillips, Davies, James TITLE: Supporting increased access near Mt. McKinley through establishment of visitor activity area at Kantishna. JRN-DATE JRN-PG ACTION 02/17/93 361 (H) READ THE FIRST TIME/REFERRAL(S) 02/17/93 361 (H) TRANSPORTATION 02/17/93 372 (H) COSPONSOR(S): KOTT, MULDER 02/19/93 396 (H) COSPONSOR(S): PHILLIPS 02/24/93 444 (H) COSPONSOR(S): DAVIES 03/03/93 525 (H) COSPONSOR(S): JAMES 03/09/93 (H) TRA AT 05:00 PM CAPITOL 17 ACTION NARRATIVE TAPE 93-9, SIDE A Number 015 CHAIR FOSTER called the meeting to order at 5:10 p.m. Chair Foster requested Representative Brice to brief the committee on the resolution. HJR 28: SUPPORT KANTISHNA AREA TOURISM DEVELOP'T Number 013 REPRESENTATIVE TOM BRICE, PRIME SPONSOR OF HJR 28, stated that establishing rail access and a visitor area in Kantishna would help solve the problems of overcrowding and limited access that Denali National Park is now experiencing. A rail corridor would provide for controlled public access, would not add to problems such as vandalism and littering that are associated with road access, and provide for a basically environmentally sound option for public access. Rail access would increase visitor capacity and create a new way for visitors to experience the park. This would support the private sector's efforts in adding to Alaska's economy. This could be accomplished by establishing a rail utility corridor that could be leased from the state by the private sector as well as provide for a visitor activity area in Kantishna. Number 059 CHAIR FOSTER announced there were people standing by via teleconference who wished to testify. Number 065 JOSEPH FIELDS, DIRECTOR, KANTISHNA GROUP, INC., began his testimony from Fairbanks by referring to last session's House and Senate versions of HJR 28. He stated that over the past year the subject of access into the park has continued to be the subject of much debate. He said they have been working with the state Department of Natural Resources (DNR) and are negotiating a recognizance permit for the first thirty miles of alignment. The railroad they are proposing would be a public carrier that would meet the criteria and would provide year around access that the existing road does not. The project is proposed to be built from private funds. The Denali Borough Assembly and mayor have passed a resolution supporting the creation of a Railroad/Utility Corridor. MR. FIELDS further stated that the Kantishna Railroad is an environmentally sound and responsible method for expanding the tourism infrastructure in Alaska. It doesn't conflict with existing tour operators in his view, and as an economic development project it meets the criteria that the new president has set out in sustaining economic growth, and it is not a resource extractive project. Tourism is one of the largest producers of foreign exchange, perhaps affecting the national balance of trade more directly than any other form of enterprise. He felt that the park should be accessed by disabled people and this transportation mode would provide for that. Number 225 GINNY WOOD began her testimony from Fairbanks by stating her concerns of HJR 28 and the possibility of spoiling resources by crowding too many people into the park. She mentioned the businesses that currently provide tours in the park already, and she felt that the tourism trade was being adequately provided. She voiced her concern for the businesses that were going to be impacted by HJR 28. Number 352 LARRY IRVING, PRESIDENT, KANTISHNA GROUP, INC., testified from Fairbanks that he was aware of the need to expand services in the area of the Denali National Park and stated they had turned away half a million visitors a year who indicated they would spend time and dollars if there were facilities and transportation into the park. The tourism marketing efforts have maximized capacity in the summer season, he said. He felt it would provide significant economic development opportunity. Number 362 TERI CANERY, testifying from Fairbanks, spoke against HJR 28, however, her testimony referred entirely to a "road" system instead of the proposed "railroad" system included in HJR 28. She felt the addition would change the character of the park. Number 574 CONNEL MURRAY, DIRECTOR, DIVISION OF TOURISM, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, spoke on behalf of the project. He mentioned that an increase of people on the highway made it harder for people to get into the park. Number 635 CLYDE STOLTZFUS, CHIEF, OFFICE OF STRATEGIC MGMT. PLANNING AND POLICY, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, spoke in favor of the Kantishna project. He felt it would relieve the bottleneck that exists around the existing entrance to the park which has resulted in escalating land use, traffic, and tourism capacity problems. He felt improved access would allow tourism industry expansion. TAPE 93-9, SIDE B Number 035 REPRESENTATIVE MACKIE moved HJR 28 from committee with individual recommendations. Number 056 CHAIR FOSTER ADJOURNED the meeting at 6:00 p.m.