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Senate committee hears bill to transfer about 85 acres of Alaska Railroad land to Whittier
Summary
Senate Bill 191 would transfer roughly 85 acres of nonoperational Alaska Railroad land to the city of Whittier in fee simple to allow housing and harbor development; committee took testimony and set the bill aside for further information.
Senate Transportation held a first hearing Thursday on Senate Bill 191, a measure that would transfer approximately 85 acres of Alaska Railroad land to the city of Whittier to allow the city to build housing and improve harbor facilities, sponsor Sen. Kathy Giesel said.
The bill matters because most developable land in Whittier is railroad-owned and the Alaska Railroad cannot convey full interest in its lands without legislative approval, Giesel told the committee. “The subtitle of this bill is transfer of specified Alaska Railroad lands to the city of Whittier,” she said.
City of Whittier officials and Alaska Railroad real-estate staff told the committee the transfer would be fee simple ownership for the city while the railroad would retain control of infrastructure located on transferred parcels. Jackie Wilde, Whittier city manager, said the city has negotiated with the Alaska Railroad and is pursuing economic development tied to a recently-built cruise terminal. “We have entered into an agreement with Hoonah Totem Corporation, and they have built an $87,000,000 cruise ship terminal there,” Wilde said.
Christie Terry, vice president of real estate for the Alaska Railroad, told senators the parties have worked together for more than a year and a half and that the bill is an “essential step” to permit the city and railroad to complete the details, including environmental and cultural surveys and appraisals. In response to a committee question about value, Terry said, “In very general terms, the magnitude we're speaking regarding is in the realm of $7,000,000.”
Committee members asked whether parcels could be subdivided or carry deed restrictions once titled. Wilde said the larger residential opportunity is a roughly 39-acre parcel adjacent to Glacier Street where multifamily development would be feasible, and that deed restrictions were not raised in current negotiations: “Not on the 39 acres... I would hate to say absolutely no, but it has not been something that has been brought to my attention.”
Sen. Tobin asked whether any parcels are suspected to be contaminated or would require archaeological surveys; invited witnesses said those questions would be addressed during the follow-up work and noted past military-era uses in Whittier. Christie Terry said the railroad and city will complete any environmental or historical surveys as part of the next steps.
No formal committee action was taken on SB 191 at the hearing. Chair Bjorkman said the committee would “set this item aside for future consideration” and requested follow-up material on appraisals, deed restrictions and survey findings. Wilde told the committee there is no immediate statutory or contract deadline driving the schedule: “There's no, no urgent as in a few days type deadline.”
The bill will return to committee when staff have supplied the requested appraisals and survey information.
