Giessel says governor kept DNR commissioner from legislative hearing on AIDEA land transfers

Senate Resources Chair Cathy Giessel told a joint meeting of the Alaska Senate and House Resources committees Thursday that Department of Natural Resources Commissioner John Crowther's attendance had been denied by Gov. Mike Dunleavy. The committees met to examine proposed no-cost state land transfers to the Alaska Industrial Development and Export Authority, or AIDEA.

The department drafts and signs those land decisions, so without it, lawmakers could not get the agency's answers. Giessel said Crowther sent her a message that "his presence today had been denied by the governor." She said Alaska Housing Finance Corporation Director Bryan Butcher was at an out-of-state conference with a dinner engagement at the hour of the meeting and declined to attend. AIDEA Executive Director Randy Ruaro did appear.

When Rep. Mike Prax asked whether AIDEA had weighed other parcels, including land in the Interior, Giessel said the commissioner "who would have this information, was denied access to this meeting by the governor." She said the committee would pursue his attendance at another time.

The transfers

The largest transfer would move about 19,950 acres north of Houston to AIDEA at no cost, as Alaska News has reported. More than 7,000 acres of that parcel are classified as wetlands, and DNR's preliminary decision would waive the state's right to take the land back. Legislative attorneys told the committees that DNR's decision to leave AIDEA's future uses out of its review may raise legal issues.

Ruaro said AIDEA has no data center project for the Houston land and believes state law treats its job creation work as a public purpose. DNR's preliminary decision lists logistics hubs, energy corridors, manufacturing and data centers among the intended uses for the site. AIDEA has said it would hold the land and its gravel as equity in future projects rather than sell them.

A second DNR preliminary decision covers 885 acres at Port MacKenzie. That conveyance keeps the state's right to reclaim the land if it is not developed within five years. The state proposed it one day after the Mat-Su Borough Assembly passed a resolution urging AIDEA to build there instead of near Houston.

Giessel said DNR also made four large conveyances to the housing corporation in late July, including one near Ester, "allegedly for low and medium level housing for folks. Again, very vague."

Unanswered requests

The committee filed a public records request with DNR on Sept. 1 seeking the data behind the AIDEA and housing conveyances. The commissioner's office replied Sept. 10 that the records would be gathered as quickly as possible, but "we have no information yet," Giessel said. The committee also sent DNR two letters of public comment, on Aug. 19 and Sept. 9, along with a memo from nonpartisan legislative attorneys, and has received no response.

Giessel called it a "rushed process."

Public comment on the Port MacKenzie transfer is open until 5 pm Wednesday, Oct. 21. Giessel said the Senate Resources Committee will meet Oct. 14 at 10 am on the DNR conveyances and on options for getting executive branch officials to appear.