22nd Alaska State Legislature
Representative Lisa Murkowski

Portrait of Representative Lisa Murkowski, 91.46k. Session:
State Capitol, Room 408
Juneau, AK 99801-1182
Phone: (907) 465-3783
Fax: (907) 465-2293

Subscribe to Newsletter
District 14 and L & C Committee Info

716 W 4th Avenue, Suite 650
Anchorage, AK 99501-2133
Phone: (907) 269-0174
Fax: (907) 269-0177

Sponsor Statement for HB 298
Legislative Approval of Railroad Leases

An Act relating to legislative approval of certain land leases by the Alaska Railroad Corporation.
Released: January 22, 2002
Contact: Representative Lisa Murkowski's office at (907) 465-5031

At the request of the Alaska Railroad Corporation, I have introduced House Bill 298, extending the length of time the Alaska Railroad Corporation (ARRC) can lease lands within its Anchorage, Fairbanks, Seward and Healy terminal reserves from the current 35 years to 55 years.

This change in statute will help cultivate economic development in communities along the Railbelt by making commercial and residential development on Alaska Railroad lands more viable. On any existing ARRC lease with a term longer than 35 years, an option to extend leases beyond that time includes a termination clause. This clause allows the ARRC to terminate any lease after 35 years in the event the land is needed for railroad purposes.

While the 35-year lease limit is adequate for most of ARRC's tenants, it is an obstacle in leasing lands to large commercial and residential developers who need to secure long-term financing for their investments. Financial lenders are reluctant to invest in large-scale projects requiring substantial equity participation when there is no guarantee the land will be available beyond 35 years. It will also make ARRC's leasing practices more consistent with other state agencies. Both the University of Alaska and the Department of Natural Resources can lease land for up to 55 years.

The proposed extension of allowable lease term is supported by the following businesses, individuals and organizations: Anchorage Historic Properties, Anchorage Neighborhood Housing Services, Mel Tipton (Ship Creek tenant and commercial developer), Seward Ship's Drydock, Inc., Dowl Engineers, Northrim Bank, AIDEA, Yukon Fuel, Kantishna Holdings, Inc., A&A Construction and Development, Inc., the Anchorage Chamber of Commerce, City of Seward, Anchorage Assembly, and Fairbanks Chamber of Commerce. I urge your support of this legislation.

# # #


| Rep. Murkowski's Page |

| Top | [an error occurred while processing this directive] Previous Page | Home | Site Search | Breaking News | Legislators | Bills |
| Committees | E-Newsletter | Surveys | Research | Help |

The Official Web Site of the House and Senate Legislative Majorities
for the 22nd Alaska State Legislature

To Report Technical Problems or Contact Webmasterse-mail address list

Related Links

Alaska Railroad Corporation

HB 230 : Railroad Employee Salaries and Wages

HB 241 : Rail and Utility Corridor to Canada

HB 244 : Right-of-Way Denali Borough for RR Utility Corridor

HB 298 : Legislative Approval of Railroad Leases

HB 431 : Land Use On Railroad Land

SB 51 : Legislative Approval of AK RR Land Acquisitions

SB 123 : Legislative Approval of Railroad Facilities

SB 170 : Railroad Employee Salaries and Wages

SB 209 : Legislative Approval of Railroad Leases