Giessel says governor kept DNR chief from AIDEA land hearing

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 the governor. 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. Without it at the table, lawmakers could not get the agency's answers on the proposed transfers.

Giessel said Crowther sent her a message that "his presence today had been denied by the governor." Giessel said she learned a day earlier that Alaska Housing Finance Corporation Director Brian Butcher was at an out-of-state conference, had accepted a dinner engagement at the hour of the meeting and declined to attend. AIDEA Executive Director Randy Ruaro did appear.

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.

Giessel said DNR made four large conveyances to the housing corporation in late July. She described them as "allegedly for low and medium level housing for folks. Again, very vague."

The committee filed a public records request with DNR on Sept. 1 seeking the data behind the AIDEA and housing conveyances. She said the commissioner's office replied Sept. 10 that the records would be gathered as quickly as possible. "We have no information yet in response from the Department of Natural Resources," 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. "We have received no response yet," Giessel said.

The largest transfer would move about 19,950 acres north of Houston to AIDEA at no cost. More than 7,000 acres of that parcel are classified as wetlands. DNR's preliminary decision on the Houston parcel 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 own preliminary decision, however, lists logistics hubs, energy corridors, manufacturing and data centers among the intended uses for the site.

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 the Port MacKenzie transfer one day after the Mat-Su Borough Assembly passed a resolution urging AIDEA to build there instead of near Houston.

Giessel called it a "rushed process." "I'm very concerned that we've got a short timeframe with this administration and things are going to get shoved through and that's unacceptable," Rep. Donna Mears said.

Public comment on the Port MacKenzie transfer remains open until 5 pm Wednesday, Oct. 21. Giessel announced that the Senate Resources Committee will meet Oct. 14 at 10 am. "The subject of that meeting will be the DNR public and charitable use conveyances and the options relating to the appearance of executive branch officials," Giessel said.