SENATE COMMUNITY & REGIONAL AFFAIRS April 14, 1994 9:05 a.m. MEMBERS PRESENT Senator Randy Phillips, Chairman Senator Robin Taylor, Vice Chairman Senator Loren Leman Senator Fred Zharoff MEMBERS ABSENT Senator Al Adams COMMITTEE CALENDAR PRESENTATION ON WHITTIER REDEVELOPMENT & URBAN DESIGN PLAN WITNESS REGISTER Gary Williams, City Manager City of Whittier P.O. Box 608 Whittier, AK 99693 Jim Barnett, City Attorney City of Whittier P.O. Box 608 Whittier, AK 99693 ACTION NARRATIVE TAPE 94-28, SIDE A Number 001 The Senate Community & Regional Affairs Committee was called to order by Chairman Randy Phillips at 9:38 a.m. He announced the presentation on the Whittier Redevelopment & Urban Design Plan would be the only business to come before the committee. GARY WILLIAMS, City Manager, City of Whittier, expressed appreciation for the last year's appropriation of match money for the Whittier project. SENATOR RANDY PHILLIPS asked what Whittier is doing as far as explaining this project to the public, because he has received a lot of comments from his constituents on why money is being appropriated for this project when there is budget shortfall in the state. Mr. Williams spoke to the economic diversification and the new industry in Western Prince Sound that can be created based upon tourism and recreation. He emphasized that this is not a road for Whittier; it is Alaska's road. It is a road that will produce substantial economic benefit for the State of Alaska. Whittier's role in this is simply to make the community available and to participate in the economic activity that will result. Mr. Williams directed attention to charts showing the Whittier core area. He noted the railroad yards occupy the larger portion of the core area and split the town between the living community and its potential economic activity. A draft environmental impact statement shows that improved access to Prince William Sound will result in approximately 900,000 per year for the first year and increasing thereafter with the opening of road access. Currently, that area experiences approximately 200,000 visitors a year. The project includes enlarging the harbor and providing 1,350 parking spaces in the harbor area. The key to this phase is a bilateral agreement between the City of Whittier and the Alaska Railroad for the reconfiguration of this area. The Alaska Railroad owns 70 percent of the waterfront and 50 percent of the overall core area of Whittier. That bilateral agreement is in progress. One of the first things that has to happen in order to make the plan work is that the ferry terminal will need to be moved in order to provide additional area because they anticipate substantially increased use of the ferry. By moving the ferry terminal, it enables them to open up their entire harbor and provide for what is expected to be the largest of the economic activity in the City of Whittier, which is the day cruises. Also, access points will be provided for people who trailer their boats in. In each one of these redevelopment packages there is private investment that with basic state and federal investment will leverage many times the investment in private dollars put into these functions. One of the key developments in Whittier is the development of the railroad dock and the marginal wharf building. It will cost $1.2 million to make the dock perfectly serviceable, and it will cost another $2 million to build the marginal wharf building. Mr. Williams related that the report by the consultants working on the project, International Tourism and Resort Advisors (INTRA), indicates that with a basic development over a course of time amounting to approximately $30 million, it attracts nearly $80 million in private investment. The economy that would be developed within the core area of Whittier would amount to about $30 million a year annually. He added that the City of Whittier will be an investor in this to the extent that they are able to bond. Number 195 JIM BARNETT, City Attorney, City of Whittier, said this investment that the state has already made, if protected and if permitted to be constructed, will generate a very substantial tourism opportunity in Southcentral Alaska. The community of Girdwood already has substantial development underway, and the addition of this project will provide the opportunity to generate substantial tourism in this area near to Anchorage. He said they believe that tour boats that left Whittier a couple of years ago for Seward because of the condition of the railroad dock will come back in strength. Number 237 SENATOR RANDY PHILLIPS reiterated his concern on the marketing of this project to the public because these are state funds. GARY WILLIAMS responded that this is going through a public review process now, and the findings of the INTRA plan are being worked on by the planning commission of the City of Whittier and being integrated into their comprehensive plan. JIM BARNETT added that the plan only came out about a month ago, but they have already been talking to key business leaders. During the summer and fall months they will continue to advise key businesses, as well as going on the circuit and to explain the opportunities that exist here. It is their intent, over the next six to eight months, to respond to the public's concerns with the project. Number 268 SENATOR TAYLOR stated his support for the project and noted that he co-sponsored the original Whittier tunnel road with Representative Betty Cato when she represented that district. He said it's going on the tenth or eleventh year of this project and he is still waiting for somebody to build one inch of new road in this state. He stated that the Alaska Railroad Corporation has not been at all supportive on this project because they still want to maintain their own little monopoly. JIM BARNETT responded that the railroad has helped with this. Number 340 SENATOR LEMAN asked if they have good fishing opportunities in that area that might relieve some of the conflicts that exist in the Deep Creek fishery in the Kenai River. GARY WILLIAMS answered that there is a fishery in Whittier, and if the Whittier option were available, a lot of people would go there rather than drive to Homer, Seward or Deep Creek. Number 368 SENATOR ZHAROFF expressed his appreciation for the presentation by the two gentlemen. He said it looks like they are proceeding along lines with the progression. He added there is not much more the Legislature can do to hurry the process along because there are certain steps and benchmarks that they have to meet at certain times. Number 390 SENATOR PHILLIPS thanked Mr. Williams and Mr. Barnett for appearing before the committee, and stressed the importance of getting this project out before the public. There being no further business to come before the committee, the meeting was adjourned at 9:38 a.m.