Sponsor Statement for HB 85

"An Act giving notice of and approving a lease-purchase agreement with the City of Soldotna for a maintenance facility of the Department of Transportation and Public Facilities."

This legislation authorizes the State Department of Transportation and Public Facilities to make annual lease payments to the City of Soldotna to pay-off Bonds the City has sold to build a new DOT/PF Maintenance Facility. The new facility is intended to cost $5 million, with annual lease payments of roughly $500,000 for 12 years (+/-).

The citizens of Soldotna have been attempting to have the facility relocated for over 20 years. The current facility is located on a 7 + acre parcel of Kenai River bank property, in the heart of Soldotna. The bulk of the facility was built over 30 years ago and is considered an eyesore.

The new location is a 15 acre parcel located 2 miles south of the existing site. Local and regional DOT personnel, Borough Planning Dept., and the City of Soldotna officials were all part of selecting the new site.

Recent environmental concerns related to contaminated soils on the Kenai River property as well as efforts to protect the habitat values along the river banks has drawn the interest of several groups in supporting this move effort. This proposal is long overdue. We feel this lease-purchase option is the only viable option at this time to accomplish the project.