Alaska Business September 2024

Page 1


LARRY GARRITY Vice
Shee Atiká
STEVE KARPSTEIN Chair
Shee Atiká

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10 SMALL BUSINESS

Honored Owners

Alaska winners of the

By Amy Newman

24 TOURISM

Growth in the Forest Alyeska Resort expands for guests and neighbors

By Vanessa Orr

30 REAL ESTATE

Commercial Conversions

An obvious but unlikely source of housing

34 OIL & GAS

Stranded No More

Converging strategies to liberate North Slope natural gas

38 UTILITIES

Customers, Members, or Both

Comparing co-ops and private utilities

By Chuck Green

16 RETAIL

Secondhand

Experience

Thrift stores at a crossroads By Scott Rhode

72 MINING

First Pour

Manh Choh joins the ranks of producing gold mines By Terri Marshall

80 FISHERIES

Swim Free or Die

Effects of fish farming on the wild harvest By Alex Appel

86 AGRICULTURE

Wired Cattle

High-tech tools for Alaska livestock By Rindi White

QUICK READS

92 PROFESSIONAL SERVICES

A Tool and a Teammate

Generative AI in marketing, advertising, public relations, and design By Tracy Barbour

98 TELECOM & TECH

Hello? Are You There?

VoIP and the customer interaction By Adam Mohr

8 FROM

YOUR SOLUTION

Shape Your Tomorrow

CONTENTS SPECIAL SECTION: ALASKA NATIVE

56 JOINT FORCES

Multi-village corporations prove stronger together

62 MEET NEW ANCSA LEADERSHIP

A batch of new presidents and CEOs

66 RIVERS OF DATA

Alaska FiberOptic Project connecting Interior villages

CORRECTION: Page 41 of the August 2024 issue erroneously describes 49th State Brewing Co. as owning The Boardroom coworking space. The Boardroom is under separate ownership, located in a building on Depot Drive that 49th State Brewing happens to own.

ABOUT THE COVER

Before Sitka was Alaska’s first capital city, the Kiks.ádi Tlingit people inhabited the place. To trade with them, the RussianAmerican Company established a settlement at Sitka Sound. Bountiful woods and waters empowered the Kiks.ádi to resist exploitation, at least until Russian reinforcements arrived and seized Sitka by conquest.

As a US territory, the boarding school in Sitka became a contact point for Native people from all over Alaska. Thus, Sitka was the cradle for the Alaska Native Brotherhood’s struggle for civil rights.

December 1971 saw two epochal changes for Sitka: the city and borough unified to create the largest US municipality by area, and the Alaska Native Claims Settlement Act authorized the creation of regional and village corporations. Shee Atiká, an urban corporation for tribal members in the incorporated city, carries on the legacy of the Kiks.ádi and other Indigenous clans. Steve Karpstein and Larry Garrity, as board chair and vice chair, are entrusted with tending the corporation’s modern bounty of tech developers and government contractors.

Photography by Caitlin Blaisdell
50 2024 ANCSA REGIONAL CORPORATION REVIEW By Tasha Anderson
Caitlin Blaisdell
Bering Straits Native Corporation

FROM THE EDITOR

For 2024, I compiled the Alaska Native Claims Settlement Act (ANCSA) regional corporation review that we publish nearly every year, as I have many times before. I start the process by sending out a handful of questions about recent financial milestones, community programs and initiatives, shareholder news, et cetera. The first time I was responsible for this roundup years ago, I took those answers and forced them into a consistent format: company name, number of shareholders, top executive, regional description, financial news, shareholder update. It was frustrating, honestly, because I spent a lot of time trying to fill in the gaps that I had created trying to contort all of their responses into a template.

I’ve backed away from that idea over the years, and finally this year I abandoned it completely. I sent out the questions, and when I got the answers back, I took at face value that the corporations sent me the information that they wanted to highlight. As you’ll see in the regional review, some are proud of financial milestones, others were focused on recent efforts to connect with or support their Elders and shareholders, and others had exciting news about subsidiaries.

There are pros and cons to this approach. For those unfamiliar with the ANCSA corporations, it would be helpful for me to take up some of the annual review’s limited word count to explain the geographic area of the region or latest revenue figures. Using a template would also add consistency to the article for those who want to scan it and pick out certain data points. However, this method can give the impression that a particular corporation did not have exciting community programs or financial highlights, because they aren’t mentioned, which is not the case.

In the review this year, the space reflects the corporations as what they are: groups formed by the same circumstances with wonderfully varied results. I think this plays into the exact logic of why ANCSA created more than 200 corporations. It would have been completely inappropriate for all Alaska Natives to be represented by one massive corporation.

Although the ANCSA regional, village, and urban corporations share an origin story, as well as a common responsibility for their shareholders and lands, they are a diverse group that represent independent and unique people. For example, this month our cover story is about Shee Atiká, which as the urban corporation for Sitka had to find solutions to specific challenges in its path. As I was working with Shee Atiká to finalize the profile, the corporation’s Board Chair Steve Karpstein provided me this quote: “It’s our responsibility to represent the diverse interests and needs of our shareholders, so we must do our best to understand their perspectives and values as we make long-term operational and business decisions.”

Karpstein’s insight paints a clear picture of how the corporations are as diverse as the people they represent, yet they are united in their responsibility to them.

EDITORIAL

Managing Editor

Tasha Anderson

907-257-2907

tanderson@akbizmag.com

Editor/Staff Writer

Scott Rhode srhode@akbizmag.com

Associate Editor Rindi White rindi@akbizmag.com

Editorial Assistant Emily Olsen emily@akbizmag.com

PRODUCTION

Art Director

Monica Sterchi-Lowman 907-257-2916

design@akbizmag.com

Design & Art Production

Fulvia Caldei Lowe production@akbizmag.com

Web Manager Patricia Morales patricia@akbizmag.com

SALES

VP Sales & Marketing

Charles Bell 907-257-2909 cbell@akbizmag.com

Senior Account Manager

Janis J. Plume 907-257-2917

janis@akbizmag.com

Senior Account Manager

Christine Merki 907-257-2911 cmerki@akbizmag.com

Marketing Assistant

Tiffany Whited 907-257-2910 tiffany@akbizmag.com

BUSINESS

President

Billie Martin

VP & General Manager

Jason Martin 907-257-2905 jason@akbizmag.com

Accounting Manager

James Barnhill 907-257-2901 accounts@akbizmag.com

CONTACT

Press releases: press@akbizmag.com

Postmaster:

Send address changes to Alaska Business 501 W. Northern Lights Blvd. #100 Anchorage, AK 99503

Partners to the Alaska Native Community

DWT has been part of the Alaska community for more than forty years. Our lawyers use their depth and breadth of experience to serve and partner with our clients, including many Alaska Native entities, as they develop, grow, and strengthen their non-profit and for-profit enterprises.

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Honored Owners

Alaska winners of the 2024 Small Business Administration awards

An outdoor cleaning equipment manufacturer, a professional mover, and an abatement and demolition expert check into a small boutique inn. While relaxing in the warmth of an outdoor hot tub, they swap stories about the successes and difficulties of small business ownership.

Sounds like a modern Canterbury tale. Instead, this group comprises the Alaska winners of the 2024 US Small Business Administration (SBA) awards. The SBA—which offers funding programs, counseling, and federal contracting certifications to small businesses across the country—announced this year’s winners on May 6 to coincide with National Small Business Week.

“The nominations we received from around the state this year are a witness of the ingenuity and tenacity of Alaska’s small business owners,” SBA Alaska District Director Steve Brown said at the time. “They are the backbone of our economy. They create jobs, drive innovation, and contribute to our communities. [They] embody the spirit of entrepreneurship and are a testament to the strength and diversity of Alaska’s small business community.”

Spreading Warmth and Wellness

“We technically sell hot tubs, saunas, and swim spas,” says Kali Bennett, second-generation owner of The Waterworks and the Alaska Small Business Person of the Year. “But we’re helping Alaskans create a wellness space in their homes and in their lives.”

The Waterworks began in 1976 as a mobile jacuzzi rental business in Girdwood. Bennett’s father, who was a hardhat diver and underwater photographer during construction of the Cook Inlet oil rigs, bought a hot tub to help with his photography.

“He needed a place to test his underwater photography equipment, so he called a [previous] roommate who made redwood hot tubs,” Bennett says. “Go figure! About forty years later, here we are selling hot tubs.”

As word of the Bennetts’ hot tub spread, the family started the mobile business, followed by a brick-and-mortar shop in Anchorage in 1982. Bennett delivered hot tubs with her father across Alaska during high school and was head of the service department when she graduated from college. She took over running the business seventeen years ago.

“[My parents] are still active in the business, which is fantastic because it’s a heart and soul situation for them,” Bennett says. “It was never that I was taking the baby away; it was that I was helping the baby grow up.”

And help it grow she did. Within her first year as owner, Bennett opened a second storefront in Eagle River, followed by a third (now closed) store in Soldotna. The company’s biggest growth came during the COVID-19 pandemic.

“We happened to have the right product line for everybody who had to stay home,” she says. “That was a really wild ride, with lots of unexpected growth. There was no way to plan for the complete and total chaos.”

Though Bennett may have been unable to plan for the chaos, she was able to leverage it to The Waterworks’ benefit, renting a warehouse and then, in 2024, purchasing a new 5,700-square-foot showroom on Old Seward Highway near Dimond Boulevard. The showroom, which she describes as “a really fun space and extremely relaxing,” has a sauna lounge,

The Waterworks

an endless pool, a mood room, and more space to showcase inventory.

Bennett explains, “The goal here was more so to create an environment where we could host events that would speak to our clients. No matter the product you’re looking at, the end goal, whether it’s entertainment or relaxation, it’s still wellness.”

From Bagels to Boutique Inn

When Jill Ramiel moved to Juneau in the ‘90s, she noticed that her new hometown had a dearth of breakfast and lunch spots. Rather than lament the scant offerings, Alaska’s Woman in Business of the Year opted to fill the hole herself.

She chose to fill it with bagels.

Ramiel purchased the Silverbow Bakery and Inn in 1997 and opened Alaska’s first New York-style bagel shop. It quickly became popular not just for its bagels and schmears but also for its sandwiches, freshly baked bread, and sweet treats. It also served as a gathering place for locals and tourists to linger over a cup of coffee or play a board game in the adjacent small dining room. That community feel was by design.

“I was coming out of architectural school, where we were learning about the notion of the third place, of being like a community center for congregating outside of your house,” Ramiel says. “That’s sort of where my interest was.”

The inn portion of the Silverbow was mostly an afterthought to Ramiel, who says her focus when she purchased the building was the bakery’s commercial kitchen. But she began to redirect her focus as the reality of running a restaurant settled in.

“Over the years the realization was, ‘Wait a minute, restaurants are really hard.’ And this little inn here is easier to run; it’s more profitable; it’s less labor intensive,” Ramiel says. “I started to enjoy that part of the business more, so I sort of shifted my focus to growing that.”

She renovated the space and added rooms, and in 2012 she built a second building for her family to live in. In 2015 she decided to focus exclusively on the inn and sold the bakery. Today, the Silverbow Inn is a sixteen-room boutique inn, complete

Over 50 years of experience in industrial, commercial and technical services Built on Safety & Customer Satisfaction

with a rooftop hot tub with views of downtown Juneau, Douglas Island, and the Gastineau Channel.

“What I learned is, I really like the boutique hotel business, and I’m very thankful that I don’t have a restaurant anymore,” Ramiel says with a laugh.

Packing Up and Moving Anchorage

Loading the contents of a home or business into a moving van requires careful maneuvering and strategic placement to ensure that every box fits and its contents arrive at its destination intact. Given Dacia Smith’s background, it’s no surprise that the owner of Green Gorilla Movers segued into the moving business.

“Dacia had worked in warehousing and logistics for a while and started the moving business on top of his two other jobs,” says Business Manager Anna Berecz. “He has a lot of energy, and he has the vision, so it’s definitely what drives the company forward.”

Green Gorilla Movers, named the Minority Small Business of the Year, provides residential and commercial moves to communities on Alaska’s road system. Smith started small in the spring of 2020—so small, Berecz says, that the company rented trucks for each job. By that August, Green Gorilla had grown so much that Smith left his other two jobs to focus on the business full time.

“We acquired at first a small truck, then a couple months later a bigger truck, and we hired people so we can manage the business better,” Berecz says. “Four years later, we’re still growing fast.”

Green Gorilla now owns six trucks and employs eight to fifteen people, depending on the season. At the end of 2023, the company purchased a small warehouse in East Anchorage to use as a storage facility.

“We specialize in short-term storage if someone is trying to bridge the time between their move-out and move-in dates,” Berecz says. “We also store overflow equipment or furniture for businesses.”

Berecz says customers often ask what sets Green Gorilla apart from other moving companies.

“We’re here in town, and I think that really matters,” she explains. “We’re part of the community, and we’re still small

Dacia Smith started Green Gorilla Movers, the Minority Small Business of the Year, in 2020 to provide residential and commercial moves on the Alaska road system. Today, the company owns six moving vans and a warehouse it uses as a short-term storage facility for clients.
Green Gorilla Movers

enough that, if customers call us, it’s easy to reach the management.”

Industrial Cleaning at Home and Abroad

Hans Vogel started Triverus in 2001 in response to a US Department of Defense solicitation seeking better technology for cleaning aircraft carrier flight decks. More than twenty years later, the Palmer-based company is SBA’s Alaska Exporter Small Business of the Year.

“They [the US Navy] had an existing cleaning machine, but it was an aging platform,” says Vogel, Triverus’ president and CEO. “We worked on designing toward that special cleaning environment for fifteen years.”

Those years of research and development resulted in the Mobile Cleaning Recovery Recycle System (MCRRS, or “McChris”), which uses water-jet technology, integrated air recovery, and wastewater recycling to quickly clear aircraft carrier flight decks of debris that can damage aircraft.

Use of MCRRS isn’t limited to domestic clients. Triverus also works

with the navies of Spain and Italy. “We have a presence in other places, too, like Japan. It kind of got us into those environments, and we’re able to sell in those spaces,” Vogel says.

While it was business with the Italian and Spanish navies that qualified Triverus as an exporter for the SBA award, the inherent challenges of doing business from Alaska means he has a broader view of what it means to be in the export business.

“I think the export concept is recognizing that you’re… going out and figuring out what customers need,” he says. “We designed our business from the very beginning to be an ‘export’ business. Figuring out what the Navy needs on flight decks, figuring out what cities need for environmental needs, really paying attention to the customerspecific spaces and trying to be the best at understanding what they need. That is the export activity in my mind.”

Vogel says Triverus is not content to simply manufacture the machines.

“We’re subject matter experts on using and maintaining those machines, and we’re now involved in this thing

“What I learned is, I really like the boutique hotel business, and I’m very thankful that I don’t have a restaurant anymore.”
Jill Ramiel Owner
The Silverbow Inn

called life-cycle management,” he says. “We’re working to get those machines that have been out in the field for a while and get them back to Alaska to rework them and recertify their capabilities. Just a chance to participate in that aftermarket is a big deal.”

Clean-up for Construction

Cuauhtémoc “Rod” Rodriguez drew on his military and construction background to build Coldfoot Environmental Services from the ground up. Now, it is the Alaska Veteran Owned Small Business of the Year.

Rodriguez joined the US Air Force in 1992 and served as a contract specialist when he transferred to Anchorage two years later. He fulfilled a lifelong dream of owning and operating his own business when he started Coldfoot in 2001, which initially offered painting, general construction, waste handling, and other constructionrelated services. But as Alaska’s construction industry developed, Rodriguez recognized the need for general demolition, environmental remediation, and hazardous materials abatement services, so he adapted the company to fill that niche.

Today, Coldfoot specializes in asbestos and lead abatement and specialty demolition projects across Alaska. Rodriguez is active in the business and Anchorage community; he’s past president of the Associated General Contractors of Alaska and a life member of its board of directors, a member of the Anchorage Chamber of Commerce, and president of the Anchorage Freestyle Wrestling Club.

What’s Next?

Not content to rest on their laurels, the award winners are pushing forward with the same hustle that earned favor from the SBA.

Triverus took what it learned from the development of MCRRS and created the Municipal Cleaning Vehicle (MCV) for airports and municipalities to clean outdoor hard surfaces such as parking facilities, sidewalks, and airfield ramps and runways. The MCV cleans large debris and sub-micron particles that are more difficult to recover and can pollute adjacent waters if not removed, giving the machine environmental applications

Triverus, the Exporter Small Business of the Year, spent fifteen years researching and developing the MCRRS to clean US Navy aircraft carriers. The product is now also used by the Spanish and Italian navies.

as well, Vogel says. The company plans to release a larger, street-sweeper size version of the MCV this fall.

Berecz says Green Gorilla hopes to increase its warehouse space and has a mid-term goal to expand its geographical region to include interstate moves. “We just want to make sure that we’re providing a good service and that we have happy customers,” she says.

Ramiel has plans for further improvements to the Silverbow Inn. Renovations to the restaurant’s façade and parking lot slated for this fall will enhance the entire property’s curb appeal, and a zoning survey confirmed

the ability to add five more rooms to the top of the third floor, but she’s unsure of a start date for that project.

“I don’t know when I’m going to jump on it,” she says. “I still remember the pain of my last renovation, so I have to wait a little longer to forget.”

And the new showroom for The Waterworks reshapes the business closer to Bennett’s vision. It has allowed her to host wellness-focused events at the store, such as hot tub yoga, with plans to do more in the future. She says, “We finally have this space that I’ve been craving, to do right by the clients and the experience that I wanted to create.”

Triverus
The Waterworks’ brand new 5,700-square-foot showroom on Old Seward Highway in Anchorage has a sauna lounge, endless pool, and mood room.
The Waterworks

Secondhand Experience

Thrift stores at a crossroads

Wh ere the Spenard neighborhood intersects with the Midtown Anchorage commercial strip, nearly a dozen secondhand or thrift shops are within line of sight.

There’s the Habitat for Humanity ReStore at one end of the Northern Lights Center shopping mall; at the other end, there’s Title Wave Books. Across the street, Clothesline Consignment, Plato’s Closet, and Penny Royalty sell modern and vintage fashions. The Hoarding Marmot consigns outdoor gear, and Play It Again Sports trades in athletic equipment. Next door along Spenard Road, Video Game Depot sells classic titles for even the oldest systems. And back at the intersection, Once Upon a Child offers bargains for baby and toddler needs.

A few doors away from Once Upon a Child’s trademark “Buy. Sell. Repeat.” banner, a new outlet joined the cluster this summer. 907 Overstock opened its second location in Anchorage at the end of June, selling surplus housewares just like its flagship store at Raspberry and Jewel Lake Roads.

Within easy walking distance, a frugal shopper can amass a tremendous haul while saving a fortune and supporting small businesses.

“Thrifting is essential for our community,” says Brittani Clancey, founder and owner of FashionPact. “Thrifting allows consumers to find what they need or want while giving items a second life and actually reverses the problem of items purchased once going to the landfill.”

The Thrift District

FashionPact, which resells used apparel and housewares, has two locations in Anchorage, but neither is anywhere near Northern Lights Boulevard and Spenard Road. Secondhand, thrift, and antiques stores are found in most parts of the city.

“I think there’s used shops, of a variety, spread around the Anchorage municipality,” says Title Wave Books owner Angela Libal. “But it certainly seems as if there are a higher concentration within our footprint of Spenard.”

The district, such as it is, extends up Spenard Road to Bosco’s Comics, Cards,

and Games, which stocks back issues purchased from private collectors. Around the corner, Pack Rat Antiques sells knickknacks of every description. In fact, the Pack Rat storefront on Fireweed Lane was the previous location of Title Wave. Libal was working there when Title Wave moved in 2002, and she recalls another used bookstore, TwiceTold Tales, that once existed in the Northern Lights corridor.

Three franchises under one corporate family triangulate the intersection. Play It Again Sports, Plato’s Closet, and Once Upon a Child are all franchises of the Minnesota-based Winmark Corporation, yet each store operates separately.

Play It Again Sports forms part of another cluster in the neighborhood: recreational equipment dealers. From Alaska Mountaineering and Hiking to Barney’s Sports Chalet and the bicycle shops all in a row, Dana Drummond knew where to go for gear during his ski bum and climbing days. Plus, as Drummond notes, “the behemoth” of REI used to anchor the corner before it moved a few blocks east to the Midtown Mall in 2019.

Drummond now owns The Hoarding Marmot. When he was setting up the business in 2015, his real estate agent convinced him that Northern Lights and Spenard was the right place, not just because of the sporting goods strip but because of the secondhand neighbors. “The ecosystem, the culture, and similar businesses are here,” he says.

Anywhere first-run retail has a foothold, a secondhand store is part of the economy. Willow has one. Talkeetna has one. Bethel has a few. But nowhere in the state is so much secondhand as close at hand as in Spenard.

Lifehack or Lifestyle?

Shoppers not only spend less on clothes, furniture, books, toys, outdoor gear, and more; they can make some extra cash by unloading household surplus. Secondhand stores provide multiple opportunities to stretch household budgets.

During the Great Recession of 20072009, Winmark CEO John Morgan stated that people were more likely to sell used clothing to make money and buy used clothing to save money. Thus, the

Plato’s Closet business line, dealing in brand name apparel for teenagers and young adults, weathered the economic downturn best.

Pre-owned books are another easy bargain. Libal says Title Wave typically sells for half price or less. “If you’ve got kids in school and they’re having to do lots of reading,” she says, “they’re blazing through ten or fifteen books in a week. Do that with two kids or three kids, all of a sudden it’s really expensive.” By making books affordable, Libal figures Title Wave is promoting a lifelong love of reading.

“Thrifting is trendy right now,” Clancey observes. “A lot of people may attribute the trend to the ‘young people’ looking for cool vintage apparel, but as a local store owner I would say it’s appealing to so many more than that. People over 60 are a huge part of our base, and every age group in between shops with us too.”

Part of the appeal, she believes, is reducing the impact of consumption. “When they thrift, they are giving items a second life instead of items heading to the dumpster,” Clancey adds. “It may

sound obvious, but if consumers weren’t willing to come spend their money on secondhand purchases, so many items would go to the landfill.”

Another aspect is the shopping experience itself. “You never know what you are going to find, and seeing all the things brings you joy as you browse,” Clancey says. “For example, we just had in a Bob Ross waffle maker that makes waffles in the shape of his head. It sold fast, and something else completely unique went in its place.”

Libal knows the thrift hobbyist type. “I’ve got a couple friends that live in the neighborhood and know all of the used shops and all of the thrift stores outside of Spenard,” she says. “They make a weekly rotation of, you know, ‘I’m not looking for anything in particular, but I never know what I’m going to find.’”

More serious thrifters practice arbitrage: they buy an asset for a low price and then find a buyer who will pay more. Another friend of Libal fits this mold, hunting for vintage trucker hats to sell online for a profit. She gets flippers at Title Wave too. “We do see a fair amount of folks who do it as a

profession, but I’d say the bulk of our customers are families and individuals wanting to turn things over for their own library or collection,” Libal says.

The Hoarding Marmot sometimes takes in goods that have already resold for less. “We have people that hit Goodwill [Industries Alaska], Value Village, and Bishop’s Attic every day (or as much as they possibly can), or they’re buying stuff in bulk,” Drummond says. “They make a little money off of it.”

The store must balance a fair return for consignors while keeping prices low for shoppers. “We want to be seen as an affordable place to get some of this expensive equipment and clothing that’s a barrier for people to get into the activities that we facilitate,” Drummond says. Affordable doesn’t mean cheap; without disparaging thrift stores, Drummond says that’s not what

The Hoarding Marmot is.

Discerning Buyers

Not every secondhand store is a thrift store, which connotes a lower tier of retail. And, importantly, not every thrift store sells secondhand merchandise.

Items at 907 Overstock, for example, have never been used before. Overstock is defined as excess inventory discarded by a manufacturer or distributor, usually because warehousing the unsold goods costs more than liquidating them to a willing seller.

In publishing, overstock books are called “remainders,” and some of those unread copies end up at Title Wave. Libal says, “New books are more expensive. A publisher sells [remaindered books] to us at maybe 50 percent off cover price. For used merchandise, we’re not paying cover price to customers [at the intake counter]; we’re paying them about half of what we sell it for.”

Libal does not consider Title Wave to be a thrift store. “We want things to be in good condition. Good, for us, means no highlighting, no broken bindings, no rips or tears. Occasionally we might decide to take something that’s a little rough around the edges,” she says. “We pay a little less for it, and then we mark that on the sticker ‘condition noted,’ and it’s marked down.”

Something that’s too rough is

Pack Rat Antiques displays treasures of every description.
Alaska Business

simply rejected, which Libal admits can lead to friction when donors expect compensation. All staff are trained to work at the intake counter, and saying “no” is part of the job. Libal says, “We can’t have this slush pile of space set aside to deal with other people’s unwanted things, essentially trash for both parties.”

Items that Title Wave rejects during processing go to nonprofits supporting seniors and children. Some books might end up at thrift stores.

“We prefer to be discerning,” Libal says. “We want to buy things that we are able to sell. If we cannot sell it, we won’t buy it.”

Cash, Credit, or Consignment

Buying from walk-in customers is not the only way that secondhand and thrift stores acquire inventory, but the approach works well for Title Wave.

Libal figures about 95 percent of the store’s used inventory came from customers. “Our intake counter is open six days a week. Cash is always an option; you get about two and a half times more in credit than in cash. We’ve always felt it was important to offer cash,” she says.

Of course, the option of store credit

builds customer loyalty. “We always have operated under the model that if you have $25 of store credit, then you have $25 to spend in the bookstore,” Libal says.

Instead of cash or credit on the spot, The Hoarding Marmot takes items on consignment. “We don’t pay them unless the gear gets sold. There’s no money exchanged up front,” Drummond explains.

Consignment makes sense for items that, unlike books, have no retail price printed on the cover. Pricing takes research or experience. “We have a big volume of stuff coming in here, and I don’t know how to give [store staff] the agency to make those purchase decisions without basically low-balling,” Drummond says. “That would work fine for some people; they’re just happy for their stuff to be gone.”

Another reason not to pay cash up front is to discourage anyone trying to peddle stolen property. He’s constantly on the lookout for shady characters. “You make a surface judgment on someone, and you go, ‘Eh, none of this is really checking out.’ I don’t want to be a fencing locat ion,” Drummond says.

Consignors must wait for a payday,

but not terribly long, thanks to a steady flow of shoppers. Drummond says, “A really good scenario is, like, a week. If it’s a bike, we don’t have room to store those… Occasionally, that’s the same day.” The bottleneck, he adds, is not the dwell time on the shelf but the delay in processing the merchandise when it arrives. Intake can get backed up in busy seasons.

Some thrift stores pay nothing at all; donated items are essentially contributions to the fundraising aims of a charitable cause. At FashionPact, though, Clancey is pioneering a hybrid approach. Her shop allocates 30 percent of every purchase to a local charity. The donor picks a nonprofit “ally” for half of the payout, and the buyer designates the other half.

“From what I know, FashionPact is the first business with this model,” Clancey says. She could have budgeted 30 percent for cash or credit to donors (or some margin for pure profit), but she believes the charitable angle adds value for FashionPact patrons and drives people into her shops.

“I think our locals thrift because they know their money goes directly into our community,” says Clancey. “Everyone’s favorite secondhand stores

Dana Drummond started The Hoarding Marmot to make outdoor recreation easier to afford. The hard part is setting a fair price for items consigned at the intake desk.
Alaska Business

are the local ones, and Alaskans care deeply about community.”

New Becomes Used

Alongside merchandise that countless hands have owned, secondhand and thrift stores in Spenard also stock more conventional retail items. The front end at Title Wave, for example, displays puzzles, games, and gifts that have never been unwrapped before.

Roughly 10 percent of clothing and toys at Once Upon a Child are new, and Play It Again Sports allows up to 70 percent of the inventory at its franchises to be new.

The Hoarding Marmot also has items that don’t make sense to resell from previous owners, like food, spare parts, or repair kits. Drummond says his challenge is to figure out what those items are and buy them wholesale. He explains, “Everybody’s got their comfort level with what is an acceptable thing to buy used: a base layer, a piece of

mountaineering equipment, a hat, gloves—some people are like, ‘It doesn’t look bad; I’ll wash it and be happy with it.’ Other people are like, ‘I’m just never gonna buy used X, Y, or Z.”

The mix of new and used inventory has shifted since Drummond started The Hoarding Marmot. “Initially, it was maybe 10 percent new, 90 percent used. Right now, from a gross sales standpoint, we’re generally more 70 or 75 percent used, 25 or 30 percent new on any given day,” he says. However, he’s also seen shops trending the other way, adding consigned or used items to otherwise 100 percent new retail, given the ease of online selling.

Title Wave supplements used books with a curated selection of new material. Libal says demand for Alaskana often outpaces intake, so the store will order new guidebooks or maps. “We look at the areas of the store that might be underrepresented by used merchandise coming in,” she says,

recalling the sudden demand in 2020 for backyard chicken manuals.

Drummond adds that new merchandise might return to the store when the firsthand owner is finished with it. “You have people who would never buy something used, but they drop off their used stuff. Then they have store credit, and they can spend that in the store,” he says.

The Hoarding Marmot also has plenty of regular customers who only buy, never sell. According to Drummond, “They’re sort of the end of the road for the equipment. These are people that, ideally, never buy new; they use the thing until it’s in the ground.”

Whether in Spenard or anywhere else, secondhand and thrift stores form a link in the consumption chain. Thanks to these merchants, a tennis racket or a rain jacket with a little more useful life can find a new home with a budgetconscious shopper.

To further extend an item's lifespan (without changing owners), The Hoarding Marmot opened a rental and repair department last year.
Alaska Business

THE IMPORTANCE OF A COMPETITIVE COMPENSATION PROGRAM HR MATTERS

One of the most crucial factors in maintaining a thriving business is attracting and retaining top talent. Central to this objective is implementing a competitive compensation program. This strategy is not just a nice-tohave, it is an essential component for business success.

ATTRACTING TOP TALENT

Alaska’s remote location and unique living conditions require businesses to go the extra mile to attract skilled professionals. Potential employees are more likely to consider relocating to Alaska if they are offered salaries and benefits that match or exceed what they could earn elsewhere. Competitive pay, comprehensive health benefits, and attractive retirement plans can make the decision to move to Alaska easier for top-tier candidates.

RETAINING SKILLED EMPLOYEES

High turnover rates can be costly and disruptive, especially in specialized industries. According to Gallup, the cost to replace leaders and managers is approximately 200% of their salary; for professionals in technical roles it’s around 80%; and for frontline employees, it’s about 40%. A well-designed compensation program ensures employees feel valued and appreciated and can boost employee loyalty and reduce turnover. “74% of HR professionals

cited compensation as the top reason for turnover.” (SHRM)

ENHANCING EMPLOYEE SATISFACTION AND PRODUCTIVITY

Competitive compensation is directly linked to job satisfaction. Employees who feel they are being paid what they are worth are more likely to be engaged and motivated. In Alaska the cost of living can be high, so ensuring that employees are financially secure can significantly impact their overall well-being and job satisfaction.

29% of employees believe their company does not pay fairly. For one in ten workers, they don’t believe they’re paid fairly because they don’t have any insight into why they’re paid their current salary.” (WorldatWork)

STANDING OUT IN THE MARKET

Standing out in the market is crucial, and a competitive compensation program can be a key differentiator. It signals to potential employees that your company is committed to investing in its workforce. This reputation can attract high-caliber professionals who are looking for a company that values and rewards their contributions.

ADAPTING TO MARKET CONDITIONS

Regularly reviewing and adjusting compensation packages ensures that your company remains attractive to both current and prospective employees. Keeping an eye on industry trends and adjusting salaries and benefits can help your company remain a desirable place to work.

CONCLUSION

A competitive compensation program is not just an investment in your employees, it is an investment in your company’s future. By attracting and retaining top talent, enhancing employee satisfaction, and staying adaptable to market conditions, businesses can build a loyal, motivated, and highperforming workforce, which leads to greater success in the challenging yet rewarding Alaska market.

Patty brings a wealth of experience and topnotch certifications in HR, specializing in developing and implementing competitive compensation programs. With her deep understanding of strategic HR management, Patty is adept at navigating organizational transitions and managing critical projects with ease. She ensures that your business attracts and retains top talent through well-structured compensation plans, fostering loyalty and reducing turnover.

For more information call (907) 276-5707 or visit our website at PeopleAK.com

HR Matters is sponsored content:

Growth in the Forest Alyeska Resort expands for guests and

neighbors

Fo rty years after downhill skiers first laid stakes on Mount Alyeska in Girdwood, the worldclass Alyeska Resort opened its doors to guests in 1994. Three decades later, the resort is planning a major upgrade and expansion to meet the needs of guests—and the Girdwood community—far into the future.

Spurred by the COVID-19 pandemic, resort owner Pomeroy Lodging decided to look at Alyeska’s old master plan to see how the resort could be more attractive to guests and to employees who don’t want or need to make the thirty-minute commute from Anchorage. And not just employees at the resort but telecommuters from anywhere.

“COVID-19 led to people working remotely; because they no longer had to go to the city, they were opting to move to places where they wanted to live, like where they could ski or mountain bike,” explains Pomeroy Lodging Development Manager Willam Laurie. “This created some opportunities for us as a resort town.”

Working with resort master planners SE Group and Skylab Architecture, Pomeroy Lodging spent the last two years nailing down the operational details and gathering community input.

The new master plan not only enhances the resort but includes numerous amenities for the 1,700 or so full-time Girdwood residents.

“Quite a few of the things we’ve got planned have been a long time coming, like a rec center for Girdwood and new housing products and commercial space,” says Laurie. “Now we’re in a place where we’re very comfortable with the plan, and we got city approvals in June, so we’re excited and ready to go.”

Hotel Renovations and Conference Center

Renovations are already underway at the resort, with approximately half of the rooms completed. All the rooms are being completely updated and refreshed, and the aBar, previously Aurora Bar and Grill, has also been fully redone.

“We’re looking at more renovations to the common spaces throughout the hotel, which has been an ongoing effort since we purchased the resort at the end of 2018,” says Laurie. “We started with the Forte Restaurant, and we recently opened the Black Diamond Club lounge.”

Plans also include a new conference center separate from the hotel, which will be able to hold up to 600 people. “This is something that the resort has needed for a long time,” says Laurie. “When people come to Alaska for a conference from the Lower 48 or Canada, they’ll get the true Alaska experience by being out in the forest and not in the middle of the city. And the stunning mountains that serve as a backdrop will make it a great venue for large weddings as well.”

The company is also building Alyeska Village, a ski village with ground floor retail, restaurants, and a grocery store. Phase 1 of the Village will include roughly seventy condominium units with more to follow in Phases 2 and 3.

Mathias Rhode
“We’re

The village will connect to the hotel and tramway and is designed for pedestrian traffic.

“The whole area will be walkable as well as ski in, ski out, which should keep the area bustling,” says Laurie.

Housing for Staff and Neighbors

One of the first things that Alyeska’s Alberta-based owners realized upon acquiring the resort in 2018 was that there was not enough staff housing. While building its new Nordic Spa, Pomeroy Lodging also built seventyone studio and one-bedroom units that were completed a year ago—a far cry from the twenty-four units that previously existed.

When the resort is fully staffed, more than 750 people work at Alyeska, adding more pressure to an already limited housing market. To this end, Pomeroy Lodging will be building Moose Meadows Village on the current overflow parking lot, which will include 180 rental units for resort employees and oth er Girdwood workers.

“There’s been a huge outcry about the lack of housing over the years, so we wanted to make more units available to provide rental security,” says Laurie, noting that many of the area’s previous rental properties have been sold to become vacation homes or short-term rentals, if they haven’t been torn down entirely.

While speaking with the Girdwood community about the needs of the area, the issue of permanent housing also arose. “A lot of people who have been renting here for ten or fifteen years got priced out of the market when real estate became more expensive,” says Laurie.

Willam Laurie, Development Mana ger, Pomeroy Lodging

Hockey is a priority for Alyeska Resort's Canadian owners, so the new YMCA recreational facility for Girdwood will

To this end, Pomeroy Lodging will be creating Glacier Creek Village, an area that will offer more attainable units in addition to single-family housing that will give some priority to first-time homebuyers and people who have been living and working in the valley for an extended period of time.

“We’re really excited about being able to provide long-term, viable housing that will enable people to live in Girdwood and raise their families and to provide a way into the market without going through the conventional buying process where local buyers get shut out by people buying vacation homes,” says Laurie. “We’ll be providing a product that is not available now: smaller footprint homes on smaller lots. A lot of the properties on the market now are on large lots, with the average price for a detached home close to $800,000.”

Glacier Creek Village will be designed around existing trails, and a proposed trail system will enable homeowners to walk outside and hop on a ski trail from their own backyards.

Active Community

Pomeroy Lodging is pleased that the new master plan was not created in a vacuum; the process was open to Girdwood residents, businesses, and organizations to determine what would work best for the company and the community. The company hosted a town hall several months in advance of beginning the community meeting process with the municipality. Later, it opened the site plan for feedback so that suggestions could be integrated into development at an early stage.

As a result of this interaction, Girdwood will be adding two muchneeded facilities on Alyeska Resort land. The first, a state-of-the-art community center that will be run by the YMCA, will include a four-lane pool, two fitness rooms (one for equipment and free weights and one for cardio), a children’s room, and a multipurpose space that can be used for group fitness, meeting space, or special events, as well as an National Hockey League-sized hockey rink.

“As a Canadian company, we’re very passionate about hockey, so early on we knew we needed a hockey rink within the development,” says Laurie. “Local residents had been using the pool

include a professional-sized rink.
Pomeroy Lodging
Workforce housing at Moose Meadows Village has room for Little Bears Playhouse to move Girdwood's only licensed childcare center out of an aging building.
Pomeroy Lodging
A new conference center adjacent to the hotel could host conferences up to 600 people, a capability that Girdwood currently lacks.
Pomeroy Lodging
“People have been using the pool and
at the hotel, but it’s becoming so busy that it’s not sustainable. We’ll be able to provide a warm, safe, affordable place where people can stay healthy, make connections, and meet new people.”

and fitness center at the hotel, and as we held our community meetings, we realized that this combination of a recreation center and ice rink would work here.”

According to Nathan Root, COO at YMCA of Alaska, discussions for opening a YMCA in Girdwood had been going on for two decades. When Pomeroy Lodging met with the community nonprofit Girdwood, Inc. and the Girdwood board of supervisors (a council for the local service area), they suggested that the YMCA would be a good fit to run the $15 million to $20 million facility.

While the YMCA is still finalizing the budget and building costs, the goal is to open the 30,000-square-foot community center in 2027.

“That’s a very short timeframe to build anything, and we’re already planning fundraising events,” says Root, adding that the YMCA plans to hold an annual gala at Alyeska starting in October 2025. “We’ve been meeting with elected officials and community members to discuss general fundraising and a capital campaign, and we’re also looking at grant opportunities. We’re doing anything and everything.”

The community center will lease the land from Alyeska, paying $1 a year for ninety-nine years.

“As a quaint little ski village, we don’t have a lot of recreational space,” says Root. “The weather at the base of the mountain is pretty wet during the year, and it’s hard to find things to do to keep kids active a nd out of the rain.”

YMCA of Alaska, which operates two locations in Anchorage and one in Wasilla, aims to bring its services to Girdwood. “This community center will

Nathan Root, COO, YMCA of Alaska

provide organized, functional fitness opportunities and recreational fitness opportunities that people can afford,” Root says. “People have been using the pool and fitness center at the hotel, but it’s becoming so busy that it’s not sustainable. We’ll be able to provide a warm, safe, affordable place where people can stay healthy, make connections, and meet new people.”

Practical for Parents

A new location for Little Bears

Playhouse will be located alongside the community center. Little Bears Playhouse, a childcare center, has been working with Alyeska for the past several years but has needed a new site for decades, according to Krystal Hoke, internal project manager for Girdwood, Inc. Alyeska offered the organization space on Tract B of its new development and has entered into a ninety-nine-year lease for $1 per year.

“We’d looked at various locations all over Girdwood, but they were

going to be extremely expensive because of the lack of infrastructure,” says Hoke. “Our current building has been in operation for forty-two years and is past its useable life. We need to expand our capacity and hav e a safer building.”

The new facility, which will be owned and operated by Little Bears, will include rooms for infants, toddlers, and preschool children, as well as an executive director’s office, room for distance learning, and a possible

Pomeroy Lodging

multipurpose room. When completed, the childcare and learning center should be able to house approximately 112 children plus staff.

To date, the childcare project has raised $3.3 million through grants and donations. Construction is expected to be com pleted in fall 2026.

“Right now, Little Bears Playhouse is the only licensed childcare facility in this geographic area; parents need to drive to Anchorage otherwise, which can add four hours of roundtrip commuting to their day,” says Hoke. “Having a larger childcare facility in our community makes it more practical for parents to work.”

According to Little Bears Executive Director Rachel Byers, the current facility only holds twenty-seven children in two classrooms and has a waitlist of thirty-one students.

“The demand for childcare here is through the roof; it’s essential for our community,” she says.

“Parents aren’t even putting their children on our waitlist because of its length. There is a great need

here for an intentional supportive le arning environment.”

Phases of Work

The project will take place in four phases, with Phase 1 construction beginning this summer with ground clearing; infrastructure work is scheduled to begin May 2025. Phase 1 includes Alyeska Village, the conference center, access roads, and a parking lot. The Moose Meadows Village project will be constructed in tandem, with roughly forty-five units of workforce housing being completed, as well as the community center and Little Bears Playhouse.

Phase 2 will include the build-out of additional condominiums and commercial space in Alyeska Village and more workforce housing, as will Phase 3. Phase 4 will include the construction of Glacier Creek Village.

While predicting how many jobs these projects will create is not easy, Laurie estimates approximately a decade of construction to come. Comparable projects employed roughly 400 construction workers and

associated trades, with most positions going to local hire.

Even though this is a huge undertaking, Pomeroy Lodging believes one of the most important aspects of the project is that it preserves the forest-like feel of Alyeska Resort

“A lot of the structures will sit close to or below the tree line, and you won’t see the village area until you’re right on it,” says Laurie. “We’ve been working with Skylab Architecture to maintain a natural feel throughout the whole development by using materials natural to Alaska and trying to maintain as many trees as possible in order to minimize our footprint.”

He adds that planning has tried to consider every single angle, from wetlands and drainage to traffic volume and more. Laurie says, “We’ve been working with some of the best groups in the nation to design this to make it successful. We really love this place and want to see it grow in a healthy way, and we’re excited that we can provide some aspects that everyone in the com munity can enjoy.”

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Commercial Conversions

An obvious but unlikely source of housing

Rising eight floors above a narrow lot on West 31st Avenue in Midtown Anchorage, the Emerald Building seems like a taller tower seen from farther away. Neighboring offices are single-story structures, almost indistinguishable from houses.

The building was one of a kind in 1986 when Charles E. Braun, founder of International Steel Erectors, designed and constructed it. Although its familiar name, Chez Braun, literally means “at Braun’s house” in French, the building has held a series of commercial tenants over th e last four decades.

The slender tower overlooks the Anchorage Legislative Information Office, the off-season headquarters for half of the Alaska House and Senate. In June, lawmakers passed several bills aimed at increasing homeownership, in the face of housing supply unable to meet demand. One approach revives the new-

home rebate program, an incentive to sweeten the price of energyefficient construction by $10,000, which could stimulate development of hundreds of new homes.

However, with so many commercial properties standing vacant or underutilized, the obvious solution would be to convert offices, shops, or warehouses into roofs for homeowners and renters to lay their heads beneath. The idea of converting commercial properties to increase residential inventory isn't new, but it also doesn't happen often in Alaska.

Incompatible Purposes

"The primary difference between the commercial and residential classification of real estate is the property use and potential for income," says Lydia Larson, senior appraising partner at Rikrland Valuation Services.

Commercial real estate is generally used for business purposes, obviously,

while residential properties are used for housing or living purposes. Some multifamily apartments can qualify as commercial properties, but private living quarters generally fall under the residential category. This includes single-family residences, duplexes, triplexes, and four-plex apartments. Commercial purposes might bring high volumes of traffic during daytime hours; residential buildings are, almost by definition, occupied overnight.

Purpose drives design, which affects every aspect of construction, inside and out. Commercial and residential buildings are constructed to different specifications, using different materials and different structural, electrical, and plumbing systems. Commercial buildings are generally larger, with structures typically made from steel, concrete, glass, et cetera. Heating, ventilation, and air conditioning (HVAC) systems are more extensive, and plumbing and electrical systems are

Patricia Morales | Alaska Business

more advanced. Space is designed for efficiency, multi-purpose use, and to accommodate large numbers of people.

In comparison, residential buildings are smaller and designed with a focus on warmth, aesthetics, and personal space. Standard materials for residential housing, like wood framing and drywall, are selected for cost effectiveness and comfort, and electrical and plumbing systems are relatively basic. The use of space accommodates a much smaller number of people.

Regulations play a role in differentiating the two categories. Commercial properties follow rules that are more complex than their residential counterparts. These regulations and building codes address issues such as zoning, accessibility, occupancy loads, and system requirements for different businesses. Residential properties are subject to building codes and regulations prioritizing safety and comfort, focusing on issues like structural integrity, fire safety, and livability.

All these factors come into play when determining if a commercial building can be converted into a residential building, in addition to other resource considerations such as budget, time, and availability of labor. Larson says there are instances in which conversion will pencil as financially feasible. For example, in communities with limited housing options—where inventory creates a scarcity effect on rents and market prices, combined with developable land in commercial areas—Larson says there is a significant benefit of converting properties to residential use.

"Conversion can bring inventory to the market which can aid in keeping people in the community that are in need of housing," says Larson. "It can also bring relief to prices and rates which have been held high by these market influences."

Larson emphasizes that the ideal property for conversion is a small segment of existing commercial properties. In most situations, she says, conversion will not be financially feasible because it often only makes sense during a time of scarcity. If a return to normal happens, the conversion may no longer be profitable, but the property is stuck with its new purpose.

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A Shining Example

The Emerald Building is living up to its Chez Braun moniker, recently converted into assisted living for seniors. Each floor is allocated for different uses and types of care. The ground floor hosts Roberto's, a Mexican restaurant open to the public. Floors two through five offer senior assisted living and additional care programs. Floors six through eight provide space for the Emerald Adult Day program, where elders can socialize with peers, participate in staffled social activities and games, and attend community events.

Hultquist Homes purchased the building in May 2022 with the intention of converting it for residential purposes. It was previously a commercial location for multiple businesses, including a dentistry, accountant, and legal firm.

"It required a complete overhaul that took time," says Julie Drayton, manager of the Emerald adult day program. “Once the building was complete, it took time to finalize all the permits for the change from a commercial building to a residential one.”

Hultquist Homes is no stranger to developing residential housing or senior assisted living in Alaska. In addition to building residential housing for the past forty-five years, the company recently developed a new senior facility in Anchorage called East View Assisted Living; another one is under development in South Anchorage. However, Drayton says that repeating a conversion project like The Emerald is something the owners would only consider under the right circumstances.

"They said that if they do it again, it would have to be a building that would meet a specialized need," says Drayton. "It would also depend on the age of the building, the size of the lot, and the estimated price for converting from commercial to residential."

Practical Limits

A commercial building may have the space to create smaller residential units, but the space usually isn't adequately partitioned for residential living. The need for renovation drives up cost. That’s the primary reason why few commercial-to-residential conversions

"I would ask anyone who wants to complete this kind of a conversion how deep are their pockets…
Conversions are expensive. There are many roadblocks and unforeseen issues."
Ryan Schwalbe
Commercial Real Esta te Sales and Leasing Spire Commercial

happen in Alaska, according to Ryan Schwalbe, who handles commercial real estate sales and leasing at Spire Commercial.

A commercial building has a limited number of bathrooms configured for shared public use, meaning additional bathrooms with additional plumbing are needed. This also holds true for other systems like HVAC and electric wiring for lighting and outlets. A successful conversion means digging deep into the building's infrastructure and, most likely, demolishing parts of the building before retrofitting it with a new layout and systems design to meet an entirely different building code. Schwalbe says these types of changes, depending on the structure, can easily cost millions of dollars.

"I would ask anyone who wants to complete this kind of a conversion how deep are their pockets," says Schwalbe. "Conversions are expensive. There are many roadblocks and unforeseen issues."

Schwalbe adds that some buildings are simply not suited for conversion

due to a lack of windows for natural light or emergency egress, or they have extreme ceiling heights that make HVAC and electrical retrofits impossible.

When looking at The Emerald, Spire Commercial owner and broker Hugh Wade believes that the owners will see a quick return on investment, given that the income from round-the-clock senior assisted living is reasonably high. Monthly prices for senior care at The Emerald depend on the level of service, but a base cost is around $12,000 per month. Average rent for residential housing is much lower, of course, which means landlords and investors would possibly have to wait much longer before seeing a profit.

"That's a lot of financial risk," says Wade. "In general, those who are looking at this option have experience in this kind of development."

Lottie Michael, senior vice president of the commercial division at Berkshire Hathaway HomeServices Alaska Realty, says conversion of The Emerald doesn't necessarily point to a trend in Alaska. She says not many commercial properties have been successfully redeveloped into residential, given the extent of changes necessary to meet current building codes.

"Talking about conversion is a great soundbite but financially unfeasible," says Michael. "A complete demolition and new construction are often the least expensive option."

Michael says it would take many changes before commercial-toresidential conversions are feasible, such as less expensive labor, materials, and utility costs. She says property tax abatements and incentives are not enough to make this kind of project profitable because the reduction in property tax is generally only for a defined period of time.

Larson agrees that feasibility is about matching capability to need, not forcing it. She says Alaska is also unique, so even if conversion works elsewhere, Outside trends seldom produce the same results when tried here.

"Lowering the logistical costs of materials or finding locally sustainable alternatives is a more long-term solution," says Larson. "If we can solve those problems, we’ll solve a lot of Alaskan problems."

Stranded No More

Converging strategies to liberate North Slope natural gas

Aconvergence of key players may finally bring long-held visions of utilizing local North Slope natural gas resources to fruition. The Interior Gas Utility (IGU) is advancing plans to power the Fairbanks area, while Pantheon Resources and the Alaska Gasline Development Corporation (AGDC) are exploring options to supply Southcentral.

Pivoting North

Economic implications for energy consumption in the Interior are substantial. According to IGU, diesel fuel was 26 percent more expensive than natural gas with equivalent energy content, as of July. For a region with some of the highest energy costs in the nation, the prospect of affordable natural gas represents significant economic relief.

IGU had begun the transition away from diesel by trucking natural gas to Fairbanks from its Titan liquefaction facility on the shore of Cook Inlet. Around the time Hilcorp, the inlet’s largest producer, announced a lack of certainty regarding natural gas availability, IGU management had been preparing to proceed with an approximately $60 million expansion project at Titan. Because of the announcement, IGU no longer found it feasible to make a sizable investment into an asset that may become unusable as soon as 2032, when IGU's last available contract renewal would expire.

But the reality that IGU needed more liquefaction capacity to sustain its growth did not change, so IGU looked for alternatives. The search culminated with two twenty-year contracts on the North Slope. IGU representatives hailed the new course as both historic and exhilarating.

According to a statement from IGU, “The move to the North Slope for natural gas supply is what allows IGU to continue fulfilling our mission of providing clean-burning, affordable natural gas to as many people in the Fairbanks North Star Borough as possible, as soon as possible."

IGU's initiative is set to generate substantial economic activity through infrastructure development and home conversions. "There is significant economic activity that is generated by new natural gas installations," the IGU statement adds. "IGU employs a seasonal crew that installs natural gas main and service lines. We also contract out some of that work to one or multiple contractors. Natural gas conversion work inside customers' premises generates work for mechanical contractors, as well as supply houses."

Beyond economics, the shift to natural gas addresses critical environmental concerns. The Fairbanks North Star Borough has been designated by the US Environmental Protection Agency as a non-attainment area for air quality, a status that carries significant economic

risks, including the potential freeze of highway funding. Natural gas has been widely recognized as the cleanestburning fossil fuel, offering a recognized path to improving air quality.

This shift to North Slope gas is more than a mere change in supply source; it's an expansion for IGU's core mission. By tapping into this abundant resource, IGU aims to deliver cleanerburning, more-affordable natural gas to an ever-expanding customer base in the Fairbanks North Star Borough. The economic ramifications are profound, particularly in a region burdened by some of the nation's highest energy costs.

Pantheon Pipeline

Since it was formed in 2010 as a subsidiary of the Alaska Housing Finance Corporation, AGDC has been spearheading a project that could revolutionize Alaska's energy landscape: the Alaska LNG project. A federally authorized, integrated natural gas and liquefied natural gas (LNG) export project, Alaska LNG aims to deliver natural gas within Alaska and up to 20 million tonnes per annum of LNG for export. AGDC’s work exposed a new path to commercialize North Slope gas—building a largecapacity pipeline to meet in-state demand and then using the existence of that pipeline to shorten the timing gap and lower the risks associated with an export pipeline to tidewater.

Then in-state users would benefit from the lower-cost gas.

Ever since the first proposals fifty years ago to tap natural gas stranded on the North Slope—at first, via a pipeline along the Beaufort Sea shore to the Mackenzie River in Canada— designs have envisioned a starting point somewhere around Prudhoe Bay. New developments farther south, however, offer an alternative source for an in-state pipeline.

Great Bear Pantheon is seeking to develop two large North Slope oil fields, Kodiak and Ahpun, containing some 2 billion barrels of recoverable oil, condensate, and natural gas liquids. There will be significant volumes of associated natural gas, and what Pantheon had previously seen as an inconvenience that would require costly reinjection wells is now positioned to be its solution to a cost effective project that benefits all.

Pantheon has offered to supply lowcost natural gas to the Alaska LNG project to significantly improve the project’s ability to provide the lowestcost energy alternative to Interior and Southcentral. In June, the London-based company signed a gas sales precedent agreement with AGDC.

AGDC President Frank Richards says, “Our recent agreement with Pantheon sets the terms for accessing enough gas to meet Alaska’s energy needs for the foreseeable future. Alaska LNG is the only project capable of heading off the looming energy crisis facing Southcentral Alaska and resolving longstanding air quality problems plaguing Interior Alaska."

Pantheon’s gas improves AGDC’s project economics by providing a gas supply at minimal cost. Not only are its fields close to the Dalton Highway but the gas contains less carbon dioxide that would have to be scrubbed out, avoiding the need to build an expensive conditioning plant.

Under the terms, Pantheon agrees to supply up to 500 million cubic feet per day of natural gas at a maximum base price of $1 per million BTU (mmBtu) in 2024 dollars. The agreement takes effect only if AGDC and Pantheon make affirmative final investment decisions for their respective projects, including required permits and regulatory approvals.

“This agreement solidifies the commercial foundation needed for the Phase 1 portion of Alaska LNG and provides enough pipelineready natural gas, at beneficial consumer rates, to resolve Southcentral Alaska’s looming energy shortage as soon as 2029.”
Frank Richards President
Alaska Gasline Dev elopment Corporation

Just a Phase

Pantheon’s previous plans for Ahpun focused on developing up to 200 million barrels from three or four pads along the Dalton Highway, modeled to plateau out at a rate of approximately 40,000 barrels per day. The agreement with AGDC potentially opens additional development pathways. The Ahpun scope can be expanded, with an accelerated pace of ramp-up by 2028 or 2029, in line with in-state gas demand and AGDC’s development schedule.

AGDC is pursuing an option to prioritize Phase 1, the in-state segment consisting of a 42-inch pipeline to provide natural gas for customers in Southcentral. Phase 1 does not involve construction of a liquefaction plant, lowering the capital expenditure and allowing gas transport as early as 2029. Phase 1 has an estimated price of $10.7 billion, compared to $44 billion for the fully integrated export gasline.

“Phasing Alaska LNG by leading with the construction of the pipeline will make Alaska LNG’s export components more attractive to LNG developers and investors, and this agreement will help unlock the project’s substantial economic, environmental, and energy security benefits for international markets as well as for Alaska,” says Richards. “This agreement solidifies the commercial foundation needed for the Phase 1 portion of Alaska LNG and provides enough pipeline-ready natural gas, at beneficial consumer rates, to resolve Southcentral Alaska’s looming energy shorta ge as soon as 2029.”

Although the agreement focuses on Phase 1, it also creates opportunities for Pantheon to benefit when the full gasline, including export capability, is completed.

“We are delighted to have the opportunity to create a win/win for the State of Alaska and for Pantheon as we turn the fantastic exploration an appraisal success of the past five years into the development of two giant oil and gas fields on Alaska’s North Slope,” says Pantheon Executive Chairman David Hobbs. “When we set out our strategy to achieve early production and cashflow on the path to financial self-sufficiency, we considered gas monetization (as a path to non-

dilutive funding) only one of several possibilities. However, the availability of our pipeline-quality associated gas created the opportunity to bolster the Alaska LNG project, including the pipeline, LNG export facilities, and gas conditioning facilities.”

The initial term of the precedent agreement is until June 30, 2025, and it will automatically renew for additional one-year terms until either party provides notice of termination.

Power the Future

The potential economic impact of releasing North Slope natural gas from its geologic captivity is significant. The project promises to create approximately 10,000 construction jobs and 1,000 permanent highpaying operations jobs, boosting Alaska's economy and increasing its strategic value both domestically and internationally.

Outside of direct job creation, the project could open new economic frontiers by decreasing energy costs, making the state more attractive for energy-intensive industries like mining. The Alaska Center for Energy and Power reported that long-term reliable sources of gas have the potential to reduce costs of energy to existing industry and to precipitate new energy-intensive development in the Railbelt region. All future energy mix scenarios outlined for a cleaner energy transition in Alaska will require supplemental power from conventional fuel products.

The collaborative efforts of IGU, Pantheon Resources, and AGDC represent a significant opportunity toward securing Alaska’s energy independence. By leveraging the vast gas reserves of the North Slope, these initiatives promise to bring affordable, clean, and reliable energy to both the Interior and Southcentral regions of the state. This transition not only alleviates fiscal burdens on businesses and residents but also addresses critical environmental concerns, paving the way for a sustainable energy future. As these developments unfold, they herald a new era of economic growth and stability through energy independence, positioning Alaska as a key player in the global energy market and ensuring a more energy-secure future for residents.

Committed to Alaska for more than 50 years.

“Alaska has been an energy producer since before it became a state, from the first well at Swanson River in the 1950s through the unprecedented discoveries on the North Slope. We are proud to be Alaska’s partner in all of it.”

Lisa, 30-year ConocoPhillips Alaska employee

Customers, Members, or Both Comparing co-ops and private utilities

The average Alaskan’s residential electricity rate is $0.24 per kWh, according to findenergy.com. That compares to the average price of $0.16 nationally. Only five states have higher average electricity rates. On a monthly basis, on average, the state’s residents see a household electricity bill totaling $140.69, slightly higher than the national average of $138.02.

Averages, though, smooth over an important distinction in how electricity reaches Alaskans. Well, a couple of distinctions; the fundamental difference is whether customers are plugged into a wider grid or if they are an isolated system. Behind the wires, though, utilities differ in a key way. Some are forprofit companies whereas others are not-for-profit cooperatives.

How do the two ownership models differ operationally? According to Michael Rovito, deputy director of the Alaska Power Association, the main distinction is the level of consumer participation. Member-owned cooperatives (co-ops) are governed by a board of directors elected directly by customers. A privately-owned electric utility often has a board made up of shareholders, or it operates under a sole ownership structure. Alaska Power

Association, an Anchorage-based trade group, covers utilities of both types, although its principal members are cooperatives or municipal departments selling at least 800 MWh per year.

Philip Wight, an affiliate researcher with the Alaska Center for Energy and Power at UAF, notes that investorowned utilities (IOUs) have been “very focused on making a profit; returning money to their investors.” Consequently, “generally speaking, I think that means that those investor-owned utilities have been more interested in load growth, in electrification.”

More than 90 percent of Alaskans receive electricity from co-op or municipal utilities, according to the Alaska Power Association, yet the forprofit segment plays an important role.

Wight says they have been better at innovation, in a sense. “Part of that’s based on their desire to make more profit. And they're coming from a different background; more of a business background for-profit background, a little bit more nimble,” he says.

Conversely, Wight describes co-ops as “very focused on things like community. They're really not driven by profit. They’re owned by those that they serve.”

Rate-Making Principles

As an example, Matanuska Electric Association (MEA) operates differently from privately owned utilities, explains Julie Estey, MEA’s chief strategy officer. “Our primary focus is on serving the needs and interests of our memberowners rather than generating profits for shareholders,” says Estey of the member-owned cooperative.

That focus leads to different ratemaking principles. Estey notes, “We aren’t allowed to earn and retain a profit, and rates are based only on actual costs from quarter to quarter. Any overcollection which may be due to higher than anticipated usage or lower than anticipated spending (called margins) offsets future rates or is returned back to members through the allocation of capital credits.”

Capital credits are invested back into MEA infrastructure in the short term to ensure reliability and longevity of assets or, as financial health of the cooperative allows, returned to members. “This ensures rates are limited only to what is essential to run the cooperative and investments are made with long-term health and sustainability in mind versus just high turnover of investment dollars to shareholders,” Estey explains.

On matters such as rate hikes, infrastructure investment, or how to leverage a surplus budget, co-op members often can chime in.

An investor can buy shares of a forprofit utility (if any are for sale), whereas customers of a co-op automatically become voting members. There are more ways to become directly involved with how electricity is produced and distributed, and members have a say in how it’s purchased and sold in a local community.

Safe, Reliable, and Affordable

Meera Kohler, the retired CEO of Alaska Village Electric Cooperative, notes there are more than IOUs, co-ops, or municipal utilities in Alaska. Some hybrid organizations are tribally owned but might be for-profit.

“Since cooperatives are member owned and the governing board is elected by the membership, I believe they’re more responsive to their rate payers,” Kohler says. “They’re also more favorably taxed; co-ops pay a modest gross receipts tax to the state, which is then sent back to the local community.” That rebate lowers the “rate base” that determines how rates are calculated.

In Kohler’s forty-two years of experience, mostly in cooperatives, “while municipal utilities try to be responsive, they’re hampered by many things—especially mayoral and assembly priorities, which don’t necessarily mesh with individual ratepayer needs.” On the other hand, co-ops “tend to be smaller and locally led and participate in many community events,” demonstrating a strong sense of civic responsibility.

Among the few for-profit IOUs in Alaska, the most prominent example defies the stereotype of a Wall Street shark. Alaska Power and Telephone provides electricity and communications services in more than forty communities, from Metlakatla and Wrangell to Tok and Bettles. The investors, though, are the people who work for the utility; it has an employee ownership structure. Earlier this year, the company relocated its headquarters from Port Townsend, Washington to Ketchikan, to be closer to its customers.

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For all that, Rovito doesn’t see a big disparity in how each ownership model provides services. “While a member-

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“I’ve experienced very direct engagement with my members, and they know they can reach out to us at all levels within the cooperative and get a quick and fair resolution to most matters. We can’t always be knights in shining armor, but we can usually resolve minor issues that certainly aren’t minor to the individual and get to a win/win solution.”
Meera Kohler Former CEO Alaska Village Electric Cooperative

owned cooperative is not-for-profit and a privately-owned utility is for profit, they both have the same goals: safe, reliable, and affordable power.”

In many areas of the country, privately-owned utilities tend to serve large cities while memberowned cooperatives tend to serve rural areas. “This isn’t necessarily the case in Alaska, with member-owned cooperatives providing power to a majority of the state while privatelyowned utilities also provide power to rural areas and some larger communi ties,” Rovito notes.

Direct Engagement

The main difference between how member-owned cooperatives and privately-owned utilities interact with their customers, as Rovito sees it, comes down to the governance structure. “Electric cooperative members directly elect the board of directors, giving them the power to shape the direction of the co-op through their voting choices,” he says. “Electric consumers don’t have a say in the makeup of a privatelyowned utility’s board of directors or governance structure.” Unless, of course, the consumer happens to be a shareholder as well.

That said, both types of utilities provide customer service functions and offer ways to get answers to questions, Rovito says.

A survey of business leaders by Harvard Business Review Analytic Services finds that, by a wide margin, organizations know how integral the customer service experience is. A whopping 93 percent of leaders surveyed indicate that addressing customer inquiries properly is highly or extremely important to the success of their organization.

Kohler shares, “I can mainly speak for myself, but I’ve experienced very direct engagement with my members, and they know they can reach out to us at all levels within the cooperative and get a quick and fair resolution to most matters. We can’t always be knights in shining armor, but we can usually resolve minor issues that certainly aren’t minor to the individual and get to a win/win solution.”

At MEA, member interactions are characterized by high levels of engagement and transparency, says

Estey. “As member-owners, our coop members are integral to our decision-making process. We actively seek their input through comments at the board meetings, surveys, and other direct communications,” she says, which fosters “a strong sense of community and mutual trust.”

MEA’s cooperative model, she emphasizes, “allows us to be more responsive to the unique needs of our members,” such as implementing programs and services that directly benefit them.

IOUs, while also customer focused, “might have different engagement strategies driven by business objectives,” Estey observes. “Their interactions might be more transactional, aimed at customer satisfaction and retention to maintain a competitive edge in the market.”

Customer Responsiveness

For his part, Wight believes that co-ops have been more responsive to the needs of their members, more often than not, since they’re also the owners. “The members are really the shareholders. And compared to investor-owned utilities, which, if you're going to run a business, you need to be responsive to your customers,” he says.

Customers who are also owners have extra sway with co-op managers. Wight says, “Co-ops, I think, during these extraordinary social moments, have been more willing to suspend the need for margins to help their customers,” such as during the COVID-19 pandemic when many people couldn't pay their electric bills. In response, member-owned Golden Valley Electric Association suspended disconnections, saying, “If you can't pay your bill, we're not going to turn yo u off,” he recalls.

Nevertheless, Wight emphasizes that IOUs have not, by any means, ignored their customers. He considers them more agile when it comes to new technology.

Wight cites the example of private companies helping customers install electric vehicle chargers. Customers pay for more juice from the utility, but the utility saves the customer money on fuel. Wight observes, “That's a win/win, right?”

Global Operations Local Impact

Alaska Native Special Section

The Indigenous inhabitants of this corner of North America maintained distinct cultures prior to European arrival; indeed, the languages of the northern and western coast, called the Eskaleut family, are entirely unrelated to the Na-Dene family of the Interior and Southeast coast. These diverse groups, brought together by the past century of shared circumstances, have forged an identit y as Alaska Natives.

Subdividing those united people into a pantheon of twelve regional corporations represented an experiment in the stewardship of Alaska Native lands and wealth. Leaders must balance entrepreneurial acumen against traditional values; harmonize regional needs among hundreds of villages, each with their own corporations; and preserve the sovereignty of Alaska Native tribes dwelling within a modern technological society. After five decades, the results are encouraging.

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Alaska Native Corporations

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Maria Dosal of Cold Bay, a shareholder of the Aleut Corporation.

Caitlin Blaisdell

He adquartered in Sitka, Shee Atiká stands as one of the four urban Native corporations created under the Alaska Native Claims Settlement Act (ANCSA). Since its establishment, Shee Atiká has grown from its early days of timber harvesting into a diversified organization with a robust presence in various industries across the United States.

Shee Atiká has faced unique challenges, but it remains an important touchstone to its shareholders whose roots in Southeast are defined by pride of place and sense of history.

Shee Atiká Board Chair Steve Karpstein says, “We’re committed to working as one team to provide direction, oversight, and support to ensure that we meet the best interests of all our shareholders, from our youth to our elders. It’s our responsibility to represent the diverse interests and needs of our shareholders, so we must do our best to understand their perspectives and values as we make long-term operational and business decisions.”

Urban corporations were a late addition to ANCSA before it was signed into law on December 18, 1971. This inclusion recognized the indigenous inhabitants of Sitka, Juneau, Kenai, and Kodiak from before those places incorporated as cities. On paper, urban corporations are functionally identical to the village corporations, with a couple of major exceptions. ANCSA excluded those four from receiving payments from the Alaska Native Fund, the nearly $1 billion financial component of the settlement. Urban corporations are also ineligible for revenue sharing under ANCSA Section 7(j), which requires the twelve regional corporations to split 50 percent of the proceeds generated on ANCSA-conveyed lands with village corporations.

“We’ve had to be a lot more creative with how Shee Atiká has operated over the years,” says President and CEO Tim Castro. “When it was founded in 1974, one of the founding board members paid the filing fee with the State of Alaska, and another founding board member loaned the company $50,000 of his own money to start the corporation, and another $40,000 later on. Shee Atiká has had to do it themselves.”

“We have been blessed with so many elders who pushed and held up Shee Atiká to get it up and running,” says Board Vice Chair Larry Garrity. “Those elders were raised with a strong belief in community, and when something happened the community would come together… Now we work on honoring them by doing the same thing.”

Precious Land

What ANCSA gave Shee Atiká was a land settlement comprising 23,000 acres of forest on Admiralty Island, 3,000 acres at Katlian Bay near Sitka, and the Alice and Charcoal Islands adjacent to Sitka Rocky Gutierrez Airport. In its early years, Shee Atiká’s primary source of revenue stemmed from its 49 percent ownership in Atikon Forest Products. The 50 percent owner, Koncor, was a consortium of village and urban corporations including Yak-Tat Kwáan, Chenega Corporation, Natives of Kodiak, and Ouzinkie Native Corporation. Atikon would go on to purchase Shee Atiká’s Cube Cove timber, creating net operating losses. Quaker Oats took that liability off Shee Atiká’s balance sheet, providing cash to operate while paying down debt and making distributi ons to shareholders.

Atikon proceeded to log the timber at Cube Cove after a lengthy legal battle with environmental groups that went all the way to the US Supreme Court. Shee Atiká ultimately won the $20 million legal battle, but it became clear that any future logging or development would be met with the same challenges, given that the Cube Cove land was in the middle of Admiralty Island National Monument.

In 2010, the Shee Atiká board of directors decided to survey shareholders to see if they would be in favor of selling the Cube Cove land, using the proceeds to generate revenue rather than wait decades for trees to grow so the timber to be logged again. The board traveled to various communities explaining the issues with the Cube Cove land and answering questions. Survey results showed most shareholders favored a land sale. Shortly thereafter, the board voted unanimously to work with the US Forest Service to sell the land back to the federal government.

“Shee Atiká has had a rough go of it in recent years, and I feel like we’re just now hitting our stride, getting a lot of forward momentum, and we want to keep building on our momentum moving forward and not settle.”
Tim Castro President & CEO
Shee Atiká

In 2016, the US Forest Service bought back one-fifth of the Cube Cove property, or 4,463 acres. As more money became available through the Land and Water Conservation Fund, the final segments were finally purchased in 2020. Liquidating the land grant brought the corporation more than $18 million, or slightly less than $800 per acre. It is not a transaction that Shee Atiká, or any Native corporation, is likely to pursue again lightly.

“Land is precious and personal to our shareholders,” Castro says, “and the decision to sell upset a large group of shareholders and created some changes to the board of directors. Today, our board is committed to never selling ANCSA land, to holding on to what we have, and preserving our land for generational use. And our next goal is how we acquire additional land.”

Nationwide Reach

Castro joined the corporation in 2019. Initially brought on to start a subsidiary called Alaska Northstar Resources, specializing in cloud integration and other information

Shee Atiká Board Vice Chair Larry Garrity at the corporation's 50th anniversary celebration.
Caitlin Blaisdell

technology services, Castro quickly ascended to the role of CEO by April 2023. Under his leadership, Shee Atiká has seen significant growth, particularly in government contracting, with expected contracts exceeding $100 million in 2024. He acknowledges that growth would not have been possible without the cash generated from the Cube Cove sale.

"Our entire team has been instrumental in this growth," Castro notes. "We have revived the culture of the organization and put people in the right spots. The strong team we’ve built has led to our success."

Shee Atiká's growth strategy has focused on diversification and expansion across various sectors. Castro’s first subsidiary, Alaska Northstar Resources, currently has 170 geographically dispersed employees providing information technology government contracts. Shee Atiká Enterprises, another subsidiary, specializes in medical studies and research, including COVID-19 related contracts.

In 2021, Shee Atiká acquired Lakota Solutions, a logistics and maintenance

company primarily serving the US Air Force and Army. Lakota Solutions has grown to employ up to 170 people across the southeastern United States and New York. Additionally, Shee Atiká launched American Technical Solutions, a manufacturing and fabrication company originally based in North Carolina.

“We try to be very strategic in how we’re growing, so we’re diverse in every industry and our customer base is very diverse,” Castro says. “The worst thing to do when you’re starting out new and building this up is to win a bid and not execute. Reputation is all you’ve got, and you have one shot at it, so we want to execute at a very high level, and that’s not always a quick answer. We try to go after smaller contracts so we do a really good job, and the big ones will follow.”

Plugged Into Community

Beyond government contracting, Shee Atiká has ventured into tourism again. The corporation is partnering with the City and Borough of Sitka to develop Sheet’ká Treetop Adventures, an adventure park featuring an aerial

“We try to be very strategic in how we’re growing, so we’re diverse in every industry and our customer base is very diverse… We try to go after smaller contracts so we do a really good job, and the big ones will follow.”
Tim Castro, Preside nt & CEO, Shee Atiká

ropes course set among Sitka's giant trees. This venture includes plans for pavilions, cultural events, trails, and use of the water frontage.

“We want to be better plugged into our communities, and tourism is a great way to do that and connect with our local shareholders,” Castro says. “We believe in hiring locals and shareholders where we can and encouraging leadership to engage in the community. Shee Atiká has been making more of an effort in recent years, so we’re really leaning forward on community engagement and involvement showing that we’re here, we’re part of the community.”

Shee Atiká remains committed to being a good community steward. The corporation's office in Sitka serves as a hub for board meetings, shareholder services, and accounting for the subsidiaries, ensuring a continued presence in its hometown despite the geographically dispersed shareholders and workforce.

“Our shareholders are pushing us to do better while holding us up. Our traditions are strong in family: our shareholders and our corporate employees are family,” says Garrity.

In 1993, Shee Atiká established the Shee Atiká Fund Endowment, a trust fund designed to provide consistent annual distributions to shareholders. Five years later, the Shee Atiká Benefits Trust was created to offer educational and funeral benefits to shareholders. The establishment of both funds demonstrated financial foresight

that has enabled the corporation to distribute approximately $86.2 million to shareholders over the years.

Hitting Stride

A significant long-term project for Shee Atiká is the state’s development of Katlian Bay Road. This road will connect Halibut Point Road to Shee Atiká's land in Katlian Bay. Its completion, some ten years in the works, is crucial for opening land for economic development, Castro says. Currently, access to the land is limited to planes or boats. The road is expected to be fully connected within the year, with plans for bridges and additional infrastructure.

"Our intention is to never sell ANCSA land again," Castro states. "We are committed to holding on to what we have and preserving our land for generational use."

In recent years, Shee Atiká's board and staff reevaluated the mission, vision, and values that are central to its culture and overall operations, Castro says. They begin each meeting by revisiting them and reading them aloud. The vision is, “Our people thrive, prosper, and are self-sustaining. We inspire and hold each other up through meaningful connections to our land, ocean, traditions, and heritage.”

"We practice what we preach," Castro asserts. "Our board adopted these principles, and we integrate them into every aspect of our work. This commitment is reflected in our strategic decisions and community engagements."

As Shee Atiká looks to the future, it remains focused on expanding government contracts, diversifying revenue streams, and contributing to the economic development of Sitka and its shareholders, Castro says. The team hopes that the corporation’s dedication to preserving and acquiring land, coupled with its innovative business ventures, ensures that Shee Atiká will continue to be a pillar of its community in the near future and for generations to come.

Karpstein says, “Over the next five years, we're focused on creating and delivering value to our shareholders and communities through strategic business choices and nurturing our cultural heritage in everything we do. Our shareholders play a crucial role in preserving our cultural lifestyle, guiding our land use decisions, and ensuring our lasting presence for generations as the keepers of the torch. By fostering honest and transparent relationships, we're laying a strong foundation for Shee Atiká’s next fifty years.”

“At the end of the day, we are committed to our shareholders,” Castro says. “Shee Atiká has had a rough go of it in recent years, and I feel like we’re just now hitting our stride, getting a lot of forward momentum, and we want to keep building on our momentum moving forward and not settle. We are always trying to learn, look at trends, look at market segments. We are always learning. I think it’s important as we keep getting bigger.”

2024 ANCSA Regional Corporation Review

Th e Alaska Native Claims Settlement Act established Alaska Native-owned corporations charged with making a profit and then using those profits for the benefits of their shareholders and communities. Over the last five decades, the regional corporations have all found exceptional levels of success, generating thousands of jobs and millions of dollars in revenue, the profits of which are used for shareholder dividends, Elder programs, education and scholarships, job programs, community projects, and much more. Below are highlights of the activities of each of the twelve in late 2023 and 2024.

Ahtna, Incorporated

In January, Ahtna announced that the trustees of the Ahtna Hwt’aene Trust decided to issue quarterly distributions in 2024 of $875 each to Ahtna’s Elders, those original shareholders who are 62 years of age or older. This pencils out to $3,500 in total distributions to Elders for the year, which is $500 more than last year, according to Ahtna President Michelle Anderson.

“We want our Elders to know they are appreciated,” she states.

In addition to its Elders, Ahtna continues its investment in its shareholders through the Helping Our People Excel, or HOPE, program.

According to Anderson, “Sometimes just a little bit of extra help makes all the difference in finding and advancing careers.” The Ahtna Shareholder Internship, National Park Service Intern Program, Walter Charley Memorial Scholarship, Ahtna Vocational Scholarship Program, and Career Assistance Program are all aspects of HOPE, designed to support shareholder employment opportunities with Ahtna or elsewhere and creating opportunities for shareholders to gain work experience.

Ahtna Netiye’, which manages the corporation’s subsidiaries and provides them with “strategic direction and corporate structure,” was listed in Engineering News-Record magazine’s “2023 Top 200 Environmental Firms” for the third consecutive year. Ahtna CEO Roy Tansy Jr., who leads Ahtna Netiye’, states, “The demand for environmental consulting services is on the rise globally, and we are proud to be recognized as a leader in the field.”

Aleut Corporation

Aleut hit a major milestone in FY2024, earning more than $380 million in revenue, an increase of more than $100 million from the year previous and the largest earnings in the corporation’s history. According to the company, “This remarkable feat

reflects Aleut’s hard work, innovation, and dedication to our shareholders throughout the enterprise.”

Expansion and growth in the company’s subsidiaries account for much of the additional revenue: Aleut Federal saw a new president in 2024 as well as a revenue increase of 27 percent in FY2024 “largely fueled by the company’s strategic focus on sustainable development, particularly within the rapidly expanding technology sector,” and Strata-G Solutions more than doubled its revenue and operating income from the fiscal year previous. Aleut Patrick Mechanical, Aleut Ventures, and Aleut Real Estate are also all expanding their services and adding to the company’s growth.

Aleut has partnered with McKinley Alaska Growth Capital to launch the Aleut Shareholder Marketplace, a business plan competition exclusively available to Aleut shareholders or descendants, and the corporation is upgrading and enhancing its shareholder portal to improve accessibility, user experience, and the overall efficiency of shareholder interactions with the corporation. The company is also launching a new logo and branding. “Our new look continues to honor our heritage while embracing a future of growth and innovation,” the corporation states.

Aleut shareholders Melanie Hoblet and her son (left) and Gregory Fratis Sr. (right), with Unangax̂ Dancers at the 2023 Aleut Annual Meeting (center).

Arctic Slope Regional Corporation

According to the company, “In 2023, ASRC achieved record-breaking amounts in revenue and earnings, acquisitions, dividends, and shareholder growth.”

The corporation’s gross revenue climbed to $5.5 billion, and for the first time in its history it reported more than $400 million in EBITDA. With operations in all fifty states and more than 16,000 employees, ASRC is not only a major Alaska company but is also being recognized on a national stage, ranking 137 on Forbes’ list of America’s Largest Private Companies.

ASRC “closed on six strategic and growth-oriented acquisitions” in 2023, including the largest acquisition in its history: subsidiary ASRC Federal acquired the logistics and supply chain management division of Science Applications International Corporation.

As the company continues to grow, so does its impact on its over 14,000 Iñupiaq shareholders. In 2023 ASRC distributed a $115 per share dividend, the largest combined dividend in the corporation’s history.

The corporation shared its impact goes beyond its shareholders: “ASRC provides necessary economic support to Alaska Native communities throughout the state,” the corporation states. Through the ANCSA revenue sharing provisions, ASRC’s aggregate 7(i) and 7(j) payments to the other Alaska Native corporations surpassed $1.7 billion, though it has “utilized less than 2 percent of our lands for natural resources, including the Alpine field near Nuiqsut.”

Echoing the historic 1989 shareholder vote which made ASRC the first ANC to open enrollment to descendants of original shareholders, in June 2025 shareholders will decide whether to authorize additional Class C and Class D shares ensuring future descendants are eligible to enroll in ASRC.

Bering Straits Native Corporation

BSNC is working to capture the wisdom of its Elders in their own words through the Heritage Preservation Project, collecting Elders’ thoughts and stories in writing or recorded video. The project “seeks to preserve and share our Elders’ invaluable knowledge,” the

corporation states. It is also working to engage young shareholders and descendants through its My Bering Straits activity book, which encourages children “to embrace the vibrant music and dance of Alaska Native culture and teaches them the basics of plants and wildlife in our region.”

Other community investments include a $250,000 donation to the Nome Community Center’s HomePlate Apartment project, which “serves as a key step on the path towards permanent housing for some of Nome’s most vulnerable individuals,” and $20,000 to Iḷisaqativut, a “community-led grassroots collective dedicated to the revitalization of the Iñupiaq language.”

On the business side, in late 2023 the BSNC board approved a $2 million investment in Graphite One for the Graphic Creek project, which has potential to create stable, well-paying jobs in the region. The corporation recently established three new holding companies: BSNC Government Services, BSNC Commercial Services, and BSNC Regional Services. “These holding companies, each focusing on a specific sector, will allow for more specialized management and growth strategies that best fit a certain sector,” the company states. During the last fiscal year, BSNC saw more than 20 percent growth, increasing its gross revenue to nearly $800 million.

Bristol Bay Native Corporation

BBNC launched and completed several community projects in 2023. The Mobile Department of Motor Vehicles program provides residents of Bristol Bay with convenient access to drivers’ licenses and REAL IDs without burdensome travel. BBNC continued its successful Youth Culture Camp (grades 9-12) and launched a Young Adult Culture Camp (ages 18-26) in response to young shareholders expressing a desire to explore their identity as shareholders and Alaska Natives. Last year marked the 20th anniversary of the corporation’s Bristol Bay Native Place Names Project, which collects and preserves the Native names and stories; the project resulted in two Indigenous place names being approved, Nanvarpak (Large Lake) and Tl’useł Vena (Pants Lake), which will now appear on state and federal maps.

In April, BBNC’s board voted to double the corporation’s Elder distribution from $125 to $250 per quarter in response to shareholder concerns. BBNC is also working to better engage with shareholders and descendants through Mug Up with BBNC, a podcast launched in 2023 that features BBNC shareholders, employees, community leaders, and others devoted to BBNC’s mission of “Enriching our Native way of life.”

BBNC is also investing in its employees and was recognized as one of the 2023 Best Workplaces by Alaska Journal of Commerce and Peak 2 Peak Events, which “reflects BBNC’s strong leadership, employee growth opportunities, and a commitment to a positive work/life balance,” the company states.

Calista Corporation

Calista hit a revenue milestone for 2023, seeing 23 percent growth over 2022 to $969 million in gross revenue. “Calista’s increased revenue was driven by operational growth in both federal contracting and construction business lines,” says Calista President and CEO Andrew Guy.

Calista Brice is the corporation’s holding line focused on construction, environmental, and technical solutions. Its nineteen subsidiary companies include two companies launched in 2023: Brice Integrated, an engineering firm focused on end-to-end solutions for environmental projects, and Brice Pacific, a construction firm specializing in federal projects.

Calista’s holding line that specializes in government contracting, Yulista, acquired DSoft Technology, a Colorado-based firm specializing in technology, engineering, and analysis services to defense and civil clients. According to Yulista, this acquisition “significantly broadens

the holding line’s information and techn ology capabilities.”

Through its subsidiaries, Calista is connecting with student shareholders and descendants interested in apprenticeships, internships, and jobs. In 2023, Brice Civil hosted its first STEM, Construction & Survey Career Camp, which nine high school students from the Calista region attended. Calista and its subsidiaries have hosted 28 interns in 2023, and since 2010 has provided internship opportunities for 212 shareholders from forty-one of its villages.

Calista also continues to support its more than 37,000 shareholders through dividends, distributing $16.3 million to them in 2023, nearly $2 million more than 2022 and $11 million more than a decade ago. Calista’s nonprofit arm, Calista Education and Culture, has provided more than $6.4 million in scholarships to shareholders and descendants since 1994.

Chugach Alaska Corporation

Chugach is optimistically anticipating the passage of the Chugach Alaska Land Exchange Oil Spill Recovery Act of 2024, which would grant the corporation ownership of 65,000 acres of “culturally significant and economically viable” lands, and it would transfer nearly 240,000 subsurface acres to the federal government, reducing split estate conflicts in Prince William Sound. Chugach Chairman Sheri Buretta says, “Introducing this bill represents a meaningful, long-awaited step towards healing the Chugach region following the devastation of the Exxon Valdez oil spill… Resolving the existing splitestate conflicts will empower Chugach to exercise self-determination for its people as intended by the Alaska Native Claims Settlement Act.”

Buretta and Interim President and COO Peter Anderson, who stepped

into the role of interim president when Josie Hickel retired earlier this year, have welcomed new CEO Jonathan Darlrymple to the corporation. Darlrymple says of the shake-up in leadership, “Welcoming a mix of new and long-standing leaders to the Chugach team has brought both continuity and change. New leaders bring fresh perspectives and ideas, while also benefiting from and respecting the wisdom and lessons gained from predecessors.”

The company is also looking at a potential shakeup at the shareholder level as its board considers Open Enrollment for the descendants of Chugach shareholders; if the board decides to move forward, a resolution will be placed before shareholders in 2025 to expand shareholder eligibility to descendants, which the corporation says would “strengthen our cultural heritage and ensure long-term prosperity through a larger and more active shareholder base.”

Cook Inlet Region, Inc.

On January 1 CIRI welcomed Swami Iyer as its CEO and Sarah Lukin as its president, “marking an unprecedented bifurcation of the president and CEO role, which historically has been combined since CIRI was incorporated in 1972,” the corporation states. In other leadership news, CIRI’s largest subsidiary, The North Wind Group, also welcomed a new CEO, Rich Driggs, in November 2023.

Also in 2023 CIRI was proud to support the 30th anniversary of the Alaska Native Justice Center, which “promotes justice through culturally based advocacy, prevention, and intervention services to restore dignity, respect, and humanity to all Alaska Native people.”

Earlier this year, CIRI launched the “Yah” (“grow” in Dena’ina) program,

an executive mentorship for CIRI shareholders and descendants to build executive level skills “to prepare for future executive leadership needs throughout CIRI’s ecosystem.”

In spring 2024, CIRI partnered with the Alaska Native Heritage Center as the lead sponsor of Indigenous traveling exhibit Nakenaghch’ Sutdu’a, meaning “Our Traditional Legacy, Stories of Our History” in Dena’ina.

“The exhibit marks an exciting new chapter in cultural preservation and sharing Dena’ina culture and history with our people,” says Lukin. “We are thankful for the many brilliant working hands and minds that helped bring the exhibit to life.”

Doyon, Limited

Doyon started 2024 with a bang, in January granting Discovery Alaska, an Australia-based mining company, a lease on the 2-million-ounce Vinasale gold project, which Doyon owns 16 miles south of McGrath. According to Doyon Communications Manager Cheyenna Kuplack, “This venture not only signifies economic development but also reflects Discovery Alaska and Doyon’s commitment to supporting the Alaska Native community.” Discovery Alaska’s exploration will focus on “reconfirming the gold deposit and exploring the project’s upside potential,” and as part of the agreement Discovery Alaska is making “substantial

contributions” to educational programs for Doyon’s shareholders.

In May, Na-Dena`, a joint venture between Doyon and Huna Totem Corporation, celebrated the opening of Port Klawock, a development that Kuplack says will “revolutionize the cruise ship industry on Prince of Wales Island.” It’s modeled after Huna Totem’s successful Icy Strait Point and is the first port capable of hosting large cruise ships on the west side of the island.

In 2023, Doyon released its inaugural environmental, social, and governance (ESG) report, which reflects Doyon’s “continued commitment to our shareholders and partners, Alaska’s communities,

BBNC continues its support of Youth Culture Camps (left), shareholder and descendant training opportunities (center), and a summer hockey camp in partnership with the Seattle Kraken and Anchorage Hockey Academy (right).
Bristol Bay Native Corporation

the environment, and the public by reporting on ESG metrics to formally plan and improve.” Doyon took action toward this commitment by announcing the installation of two 100 kW wind turbines on the Doyon Drilling pad in Deadhorse, which will “provide supplemental power to Doyon Drilling’s warehouse and offset its electricity u sage,” Kuplack says.

Koniag

In 2023 Koniag joined seventeen of its region’s tribes, nonprofit organizations, and village corporations to sign the Kodiak Region Unity Protocols, which describes the group’s collective ideals for partnerships and affirms its commitment to working collaboratively.

The corporation is also partnering with the Kodiak Island Housing Authority to identify housing solutions and put those into action, “ensuring that our shareholders and descendants will always have thriving, economically sound communities they can call home in our region,” the corporation states. Koniag is also focused on its shareholders and descendants by offering careerdevelopment opportunities, such as a partnership with US Fish and Wildlife Service to advance a collaboration between the Kodiak National Wildlife Refuge and in-region communities resulting in Youth Environmental Technician Interns, or YETI, a program to inspire youth to pursue resource management careers.

As Koniag says, “The better we do, the more good we can do,” and ongoing financial success has allowed increased annual shareholder dividends, provided additional support to Elders, and implemented the Good Grade Incentive Program, which offers prizes to middle and high school students who excel in their studies.

In Anchorage, Koniag moved into new office space in the JL Tower. The new space, known as Suugemta (“Our People’s Place”) Suite, houses staff from Koniag, Koniag Educational Foundation, Koniag Government Services, and Kodiak Area Native Association. According to Koniag, “This one-stop shop offers a wealth of services for our Alutiiq people who live in or visit Alaska’s largest city.”

NANA Regional Corporation

According to the corporation, “NANA ended the 2023 fiscal year with gross revenue of $2.5 billion, driven by record performance from federal subsidiary Akima and continued growth from NANA North.”

In 2023 NANA reorganized its Alaska-based businesses under NANA North, a wholly owned subsidiary that offers engineering and project management, construction, support services, and transportation. Akima acquired Pinnacle Solutions, a provider of training and sustainment products for defense customers, and “this strategic acquisition enhances Akima’s aviation and training capabilities in the defense market,” according to NANA.

Also in 2023 NANA founded public benefit company Atautchikun, which serves as the corporation’s grantmaking arm. NANA and Atautchikun are already making strides in supporting shareholders, using a $65.2 million grant from the National Telecommunications and Information Administration to bring faster, more reliable internet to NANA communities.

Also in its region, NANA’s Village Economic Investments has funded 112 projects worth more than $23 million to benefit its shareholders and villages since it launched in 2009. From 2023 and into 2024, NANA initiated twentyfive community projects in eight of its eleven villages, ranging from solar

battery projects to community centers and capital equipment investments.

In late 2023, NANA shareholders voted to approve the creation of a permanent fund that will use net proceeds from Red Dog Mine to generate earnings for future shareholder dividends, “a historic vote that creates stability and a strong base for NANA’s financial future,” the company states.

Sealaska

After serving nine years as president and CEO of Sealaska, Anthony Mallott retired at the end of 2023. Since then, Sealaska Executive Chair Joe Nelson has been serving as interim president. The Sealaska leadership team expanded in March with Desiree Jackson, chosen to serve as Vice President of Administration and Outreach, and again in May, when Derik Frederiksen was brought in as Vice President of Regional Business Development.

Frederiksen served in many roles at Sealaska over the years, including as an intern while he pursued a degree in forestry. He is one among many: since Sealaska began its internship program, it has provided 346 interns the opportunity to gain work experience. Sealaska also invested $8.6 million in scholarships from 2014 to 2024 and has distributed $373 million in dividends in that same period. In the spring of 2024, it issued a distribution totaling $19.2 million to shareholders.

Nelson states, “We are proud of the stability and diversity reflected across Sealaska’s businesses and investments.”

He continues, “This makes possible both distributions and an ever-growing variety of programs and benefits for our shareholders. Sealaska’s shareholders are at the center of all we do, and our focus on both people and planet is a path forward that will continue to strengthen this commitment.”

Koniag was one of seventeen groups to sign the Kodiak Region Unity Protocols (center); it continues to help shareholders with educational opportunities, such as through captain training (right); and Koniag works to preserve its culture and traditions (left). Koniag

Joint Forces Multi-village corporations prove stronger together

Be tween the level of the twelve regional corporations formed under the Alaska Native Claims Settlement Act (ANCSA) and more than 200 corporations for individual villages, an intermediate level of organization exists. No, not the four urban corporations for Juneau, Kenai, Kodiak, and Sitka. A handful of village corporations stand out because they are joint ventures for multiple communities.

Afognak has done quite well for itself since merging corporations with Port Lions in 1977. On the other side of Kodiak Island, Akhiok-Kaguyak represents those two villages.

Nima Corporation is named for its two constituents: Nunivak Island and Mekoryuk. And MTNT stands for McGrath, Takotna, Nikolai, and Telida. Downstream, the next ten villages along the Kuskokwim River merged into The Kuskokwim Corporation (TKC).

The Koyukuk River ties Allakaket, Alatna, Hughes, and Huslia together as K’oyitl’ots’ina Limited, also called K Corp. And where the river meets the Yukon, the villages of Koyukuk, Galena, Nulato, and Kaltag are “friends together,” which is the meaning of Gana-A’Yoo.

Merging made sense in the '70s. “At the time, a lot of our people didn’t have a business background and had never participated in the business world, creating an uphill learning curve,” says Gana-A’Yoo CEO Dena Sommer-Pedebone.

Additionally, the overhead to maintain multiple village corporations was dauntingly expensive. Rather than go it alone, many villages chose to merge by creating joint corporations. Sommer-Pedebone says, “They knew we would be stronger together and be able to do more for our shareholders and descendants.”

Alaska Peninsula Corporation

Judging by its name, Alaska Peninsula Corporation (APC) sounds like one of the big regional twelve. But it’s not; its five component villages are all within the Bristol Bay Native Corporation region.

From the the shore of Iliamna Lake to the coast of Bristol Bay, the villages of Kokhanok, Newhalen, Port Heiden, South Naknek, and Ugashik formed APC in 1978.

“My grandparents and their friends worked closely together to get everything set up with the corporations after ANCSA was established,” says APC COO Adrianne Christensen. “With ANCSA requiring each village to form a corporation, they quickly realized it would be beneficial for all of the villages to work together as one corporation.”

APC now has more than 1,000 shareholders and is one of the largest landowners in the Bristol Bay area with more than 400,000 acres of the world’s most remote and undeveloped country. The land is a premier destination for outdoor recreation enthusiasts. Adventure seekers enjoy camping, fishing, river floats, and hunting on this treasured land.

Headquartered in Anchorage, APC specializes in administrative services, environmental consultation, management services, and remediation. By bringing the villages together as one corporation, APC has successfully developed six subsidiaries.

• APC Federal serves as the administrative management entity for the government services lines of business.

• APC Construction Services builds in coastal areas of the North Pacific, Bering Sea,

Prince William Sound, Eastern Aleutian Islands, and the North Slope.

• APC Services offers environmental consulting and resource exploration.

Wētaviq, Limited is a transportation maintenance, logistics, and equipment leasing company. Customers include Alaska Native corporations, resource developers, and the US military.

Yukon Electric, Inc.’s experience includes residential and commercial service calls, vertical construction, power distribution, and power generation.

• Talarik Research and Restoration Services is an environmental remediation company which was recently awarded an Indefinite Delivery, Indefinite Quantity contract with the Alaska Department of Environmental Conservation to provide planning and environmental restoration from contamination. The company is currently remediating contaminated soil, collecting groundwater samples, and restoring the land at Johnstone Point in Prince William Sound to its natural state.

APC’s stated mission is “to preserve and enhance the quality of life of Alaska Peninsula Corporation shareholders and to

Connecting Alaska and the World

An aerial view of Sweetie's Lake and North River, near Port Heiden, one of five villages that joined together to form Alaska Peninsula Corporation.
Alaska Peninsula Corporation
Adrianne Christensen Alaska Peninsula Corporation

protect our culture while managing our assets in a manner which enhances their value.” The corporation continues to accomplish this mission by utilizing the strength of unity.

“With our shareholders as a top priority, Alaska Peninsula Corporation focuses on providing dividends first and foremost,” says Christensen. “We strive to provide jobs and opportunities in the region and throughout Alaska.”

The Kuskokwim Corporation

Before merging into TKC on April 25, 1977, the villages of Aniak, Chuathbaluk, Crooked Creek, Georgetown, Lower Kalskag, Napaimute, Red Devil, Stony River, Sleetmute, and Upper Kalskag operated independently as ten small companies each with a separate board of directors and staff—a costly burden for the small villages.

“We merged in 1977 fairly early after ANCSA was enacted,” says TKC President and CEO Andrea Gusty.

The merger of the villages has proven to be a tremendous success. “We had 1,100 shareholders in 1977 and today we have more than 4,300 worldwide,” shares Gusty. “We steward nearly a million acres of land—a responsibility we take very seriously.”

TKC began diversifying in 2005 and started developing a portfolio across Alaska and the Lower 48. “We continue growing those businesses year over year and bring the funds back home to the middle Kuskokwim and our shareholders,” explains Gusty.

In addition to meeting the expectations of shareholders, the corporation focuses on sustainable land management, scholarships, energy workforce development, and direct payments relative to the cost of living. “We’re working on what we call stewarding our homelands,” says Gusty. “Working on the infrastructure in our villages is a constant focus.”

Last year, TKC worked on the Connect TKC Project to bridge the digital divide while pursuing grants to improve broadband infrastructure. “We wanted to positively impact connectivity for all of our shareholders anywhere in the world,” says Gusty. “We provided all shareholders the opportunity for access through installation of Starlink hardware and paid for that out of TKC profits.”

Life is sweet on the Middle Kuskokwim and getting sweeter. The Connect TKC Project is partnering with Microcom to supply Starlink satellite internet for shareholders, at least until the ten constituent villages are hooked up by fiber-optic cable like their neighbors downstream.
The Kuskokwim Corporation

Before the project, 49 percent of TKC shareholder households didn’t have connectivity. “These were not just rural locations; there were even parts of Anchorage where our shareholders didn’t have connectivity. Through our program efforts, these shareholders were able to realize immediate savings for these services,” shares Gusty. TKC plans to apply for the State of Alaska Broadband Equity Access and Deployment program to build broadband fiber optic infrastructure in the Middle Kuskokwim region in early 2025.

The corporation provided similar assistance with its TKC Brighter Futures Lightbulb project. “In one month, we changed out 10,000 light bulbs in everyone’s homes from incandescent to LED while we continued to work on infrastructure issues,” explains Gusty. “The money we make in the Lower 48 has a direct impact on our shareholder homes, and we believe in delivering the needed services to our villages as soon as possible. We aren’t waiting around for someone e lse to do the work.”

TKC became one of the first ANCSA corporations to vote to enroll descendants who were born after 1971. “Through merging and opening enrollment to our descendants, we were successful in growing our shareholder numbers,” says Gusty. “While we remain focused on the continued growth of our programs, we also focus on growing our profits to make certain we are maintaining our commitment to our shareholders.”

To accomplish this, TKC’s board of directors created a permanent dividend within its TKC Settlement Trust. “Our dividend is growing year to year as our shareholder base is growing,” shares Gusty. “We continue the work necessary to meet the challenge of our shareholders' expectations of always growing and always doing more for them—because there’s always more to be done in rural Alaska.”

Gana-A’Yoo, Limited

Miranda Wright, an original GanaA’Yoo board member familiar with the early days of ANCSA, shared her insights in the corporation’s winter 2022 annual report. “For the village corporations, those early days were

people values

When ANCSA corporations first formed, shares were limited to people enrolled in 1971. The next generation had to wait for its inheritance—until TKC became one of the first corporations to let descendants enroll. Calista Corporation adopted the practice region-wide in 2017.

The Kuskokwim Corporation

hectic, scary, confusing, and required a lot of work educating our people on how to navigate a foreign system. When I ran for election to our village corporation board of directors, I had already been in business for a number of years. I had established a corporation for the construction company my husband and I ran, so I had a good understanding of how a corporation works. ”

Wright shared her business experience as a board member for Nik’aghun, Limited, which at the time was the village corporation for Nulato. “Other village corporations were struggling with this new concept called corporations,” she recalled. “A couple of villages had populations of less than 100 residents… After many meetings, it was decided that unity and support was necessary to keep our land intact and under Native ownership. By merging, we could share expertise, cut administrative costs, and pool our financial resources to help grow the company.”

Nearly forty years later, “friends together” continues to serve the Gana-

A’Yoo villages well as the corporation pursues its primary purposes of preserving its lands while creating shareholder opportunities through the success of its business ventures.

Gana-A’Yoo has assembled a family of companies in the fields of construction, logistics and camp services, manufacturing, technical services, and facility services.

As the steward of 438,000 acres, the corporation strives to balance protection of cultural resources with management of natural resources. Subsistence remains the highest priority use of the corporation’s lands, which are managed to preserve important historic and cultural aspects of the Gana-A’Yoo heritage.

Village needs also remain a major focus of Gana-A’Yoo. “The board of directors is very mindful of the needs of each village,” says SommerPedebone. “There is a huge need for infrastructure development. Some of the villages have more systems in place than others to meet their ongoing needs, but the needs are very similar in each community.”

Strength in Numbers

In each case, the joint corporations have succeeded to a degree they might not have achieved as isolated villages.

Christensen credits the success of APC to its unified approach to business opportunities. “We have people that live throughout the region, and we utilize our combined ability to grow our business in a more efficient way,” says Christensen. “I think the benefits are that we are stronger together and we have a more diverse board because of our merger.”

Of TKC’s early decision to merge, Gusty says, “Our elders knew we were stronger together than apart. We were always closely connected, so it was an easy decision to combine our initial funds and work together to build our corporation.”

And Gana-A’Yoo continues to work as a team. “I think it is combined talent and perspectives that allowed us to be able to build a more robust business and ultimately provide more to the people from our area,” says Sommer-Pedebone. “We also know we are stronger with our four villages working together.”

Where Tradition and wisdom drive our success

UIC is a proudly Iñupiat corporation with diversified business lines serving clients around the globe. Our traditional values enrich our cutting-edge products and services to create a strong and sustainable future from Utqiaġvik, across Alaska, and beyond.

Photo Credit: Amaguq Media

Meet New ANCSA Leadership A batch of new

presidents and CEOs

Th e corporations formed by the Alaska Native Claims Settlement Act (ANCSA) have nimbly adapted to changing economic circumstances and opportunities to safeguard their lands and resources and support their communities and shareholders. Through a combination of homegrown leadership and Outside expertise, Alaska Native corporations have flourished as the state’s most prosperous enterprises, with many earning millions of dollars in revenue— and a few pulling in billions—annually.

Several ANCSA corporations have recently welcomed new leaders to help guide them into another five decades of growth and profitability.

Bering Straits Native Corporation

Until December 2023, BSNC had vested leadership responsibility in a single person bearing the title of president and CEO. The board of

Dan Graham Bering Straits Native Corporation
Cindy Towarak Massie Bering Straits Native Corporation
Swami Iyer Cook Inlet Region, Inc.

directors decided to split those roles.

Board Chair Roy Ashenfelter said the change was due to BSNC’s recent growth and that splitting up the president and CEO roles “provides significant oversight of company management to better prepare for growth while simultaneously focusing on BSNC’s mission to improve the quality of life of [its] people.”

Dan Graham had been interim president and CEO of BSNC since May of 2023 before moving into the CEO position.

“It’s an honor and a privilege for me to be confirmed to the role of CEO for BSNC,” Graham said at the time. “I truly appreciate the board for entrusting me with this responsibility and for their ongoing support in our collective pursuit to make BSNC a premier employer and service provider, guided by our steadfast corporate mission and vision.”

Graham has worked at the Nomebased regional corporation since 2014 and is described as a key player in its recent growth. With a bachelor’s degree in civil engineering from Villanova University, Graham had a twentyeight-year career as a contractor with the federal government.

To work alongside Graham as president, BSNC elevated board member Cindy Towarak Massie to the role of president. A graduate of Covenant High School in Unalakleet, she co-founded a multimedia company called Outdoor Channel Holdings and is a former owner of Winnercom, a production company honored with thirteen Emmy awards. She is also president of the Thomas and Cindy Massie Foundation, her family’s philanthropic organization.

Upon being named president, Massie said, “Our Alaska Native values are integral to the company and our community, and I am committed to preserving our cultural heritage while creating opportunities for economic growth at BSNC.”

Massie has been a member of BSNC’s board of directors since 2019 and previously served as chair. She remains on the board while serving as president.

Cook Inlet Region, Inc.

Another regional corporation divided its president and CEO position

in 2023. Sophie Minich retired last fall after ten years leading Cook Inlet Region, Inc. (CIRI). According to CIRI Board Chair Douglas Fifer, the decision to split CIRI leadership “will help CIRI foster growth and have a positive impact on the services [the company provides to its] shareholders, descendants, and the 60,000 Alaska Natives and American Indians that re side in our region.”

Swami Iyer, CIRI’s new CEO, most recently served as the president of

aerospace systems at Virgin Galactic, a California-based spaceflight company that carried tourists on supersonic suborbital jaunts in 2023 and 2024, after sixteen years of development.

Iyer holds bachelor’s and master’s degrees in engineering from the University of Michigan and went to US Air Force Test Pilot School to earn a master’s degree in flight test engineering. He was the school’s director of operations after flying B-52 bombers in the Air Force.

Say Hello to Alasconnect

We have rebranded from Ampersand to Alasconnect to better reflect our dedication to Alaska and our clients. Our mission is to humanize technology by building strong relationships, fostering clear communication, and promoting seamless collaboration.

Iyer has twenty-five years of experience in the aerospace, defense, and computing industries. He also spent time in the public sector as South Asia and Oceania Chief for the Deputy Under Secretary, International Affairs of the US Air Force. Working in the Los Angeles area for Virgin Galactic, Iyer was responsible for leading the manufacturing, engineering, and program-management teams, processes, and facilities to support the design and build of its current and future fleet of vehicles.

At CIRI, Iyer manages the overall direction of the company and sets long-term strategy. “I am committed to building upon the strong foundation laid by Ms. Minich, the board of directors, and the entire CIRI team,” he said upon his hiring in December.

To provide the CEO with an Alaskan perspective, CIRI named Sarah Lukin as president. Lukin is Alutiiq and hails from Port Lions on Kodiak Island. An enrolled tribal member of the Native Villages of Afognak and Port Lions, she is a shareholder of Koniag and Afognak Native Corporation. She served as CIRI’s chief strategy officer for two years before being promoted.

As president, Lukin focuses on CIRI’s day-to-day operations. “I want to express my appreciation to the board for entrusting me with this role. I’m very excited to continue to lead such a talented and dedicated team as CIRI’s new president,” Lukin said upon her promotion.

Lukin is a graduate of Alaska Pacific University’s Alaska Native Executive Leadership Program. She has experience in government contracting,

private equity, business development, and government relations.

Chugach Alaska Corporation

A lengthy executive search concluded last November with the selection of Jonathan Dalrymple as Chugach Alaska Corporation’s CEO. This ended Board Chair Sheri Buretta’s relatively brief service as interim CEO; however, her service to the corporation spans decades, as she’s been on Chugach’s board since 1998.

Experience in the aerospace, defense, and intelligence contracting industries make Dalrymple “uniquely qualified to lead Chugach’s business operations at a crucial time for our corporation,” says Buretta.

“Chugach relies upon a strong board and leadership team to govern the corporation and serve as stewards of our founders’ vision. Solidifying a capable, well-rounded leadership team and refining our organizational structure has been a significant focus area for Chugach in 2023 and 2024,” says Buretta.

After a hitch with the US Navy, Dalrymple studied political science at the University of Georgia and earned a master of business administration degree from SDA Bocconi School of Management in Milan, Italy. His career in business development includes a stint as a vice president for Raytheon in Texas. Prior to joining Chugach, Dalrymple led a consulting firm in Washington, DC.

“I am impressed by the hard work and dedication that Chugach’s 4,100 employees have poured into this

company. It’s one of the things that inspired me to join the Chugach family, and that sentiment has grown as I’ve met people across the organization,” says Dalrymple. “I’m equally excited for the opportunity to steer Chugach towards a new era of growth, while remaining true to Chugach’s culture and traditions that have guided us over the past fifty years.”

Ahtna, Incorporated

While the president of Ahtna, Incorporated remains Michelle Anderson, the corporation for the Copper River region promoted a fellow member of the Caribou clan to an executive role last year.

Roy Tansy Jr. had been chief operating officer of Ahtna Netiye', the corporation’s holding company, prior to being named Ahtna CEO. A shareholder from Cantwell, Tansy has been with the Ahtna family of companies for more than thirty years. Tansy has executive-level experience in operations, business development, strategic planning, and corporate leadership and has experience in management of construction, oil and gas, facilities management, and security companies. Tansy also sits on the boards of the Alaska Native Heritage Center and the Alaska Chamber of Commerce.

In the corporation’s 2023 Spring edition Ahtna Kanas , its newsletter to shareholders, Tansy stated: “I am so grateful to have been promoted to CEO of Ahtna Netiye’. I am thankful for all the support I’ve received, and I look forward to the excitement and challenges that lie ahead.”

Sarah Lukin Cook Inlet Region, Inc.
Jonathan Dalrymple Chugach Alaska Corporation
Roy Tansy Jr. Ahtna, Incorporated

Beyond Numbers Fiber internet insures dependability when providing back-office accounting services

One of the most difficult parts of being a business owner is taking the time to do the financial work that keeps the company running. Beyond Numbers (formerly known as Gray Services) takes on that responsibility so that its clients can spend more time successfully running and building their businesses.

“By outsourcing these accounting tasks, business owners are free to focus on doing what they love,” says Kirstie Gray, who began the Anchorage-based, woman-owned company in 2015.

As the leading provider of back-office support for small business owners who need help with accounting, Beyond Numbers provides full-service bookkeeping and payroll services, utilizing technology that automates and streamlines administrative tasks related to financial record-keeping, data entry, and reporting. Not only does this technology help improve accuracy, efficiency, and productivity by reducing manual processes and minimizing the risk of errors, it also enables business owners to make informed decisions in real-time while freeing them up to focus on other aspects of their businesses.

Beyond Numbers has become so indispensable to its clients, in fact, that it has a 92 percent retention rate, and new customers come largely through referrals from satisfied clients.

“We appreciate that our clients trust us, and that they are willing to help us create that type of relationship with other businesses,” says Gray.

Gray credits the company’s relationship with GCI to helping it meet the needs of clients through its landline phone and fiber internet services.

“Because the online software we use is 100 percent cloud-based, we have to have reliable internet, and with GCI we never have any issues,” says Gray of working with Alaska’s largest telecom.

“When I need support, my account manager is amazing, but I rarely have to call them—it’s just always on.

“If we don’t have reliable Internet, we can’t effectively do our job,” adds Gray, who also uses the internet to share data with clients no matter where they are in the world. “Our goal is to provide quality service, and with GCI’s help, we’re able to do so.” ”

Headquartered in Alaska, GCI provides data, mobile, video, voice, and managed services to consumer, business, government, and carrier customers throughout Alaska, serving more than 200 communities. The company has invested more than $4 billion in its Alaska network and facilities over the past 40 years and recently launched true standards-based 5G NR service in Anchorage. GCI is a wholly owned subsidiary of Liberty Broadband Corporation. To learn more about GCI and its services, visit www.gci.com.

Kirstie Gray, Owner of Beyond Numbers, an Anchorage-based, woman-owned small business
Photo
Credit: Amber Johnson Photography

Co nnectivity is crucial in rural Alaska, where reliable internet service has the power to dramatically enhance the quality of life for residents.

Rivers of Data

Alaska FiberOptic Project connecting Interior villages

That’s why the Alaska FiberOptic Project is so consequential. The massive initiative will connect up to twenty-one underserved communities along the Yukon and Kuskokwim Rivers with high-speed, fiber optic networks. The project partners—Calista Corporation; Doyon, Limited; GanaA'Yoo, Limited; Tanana Chiefs Conference (TCC); and Alaska Communications—will build, operate, and maintain the fiberoptic network and service.

“Reliable, affordable, high-speed internet is a key to connecting our people with the world, celebrating and advancing our culture, and offering opportunities for young people in our communities,” says Calista President and CEO Andrew Guy.

Doyon President and CEO Aaron Schutt adds, “There is no better time than now to connect our communities. This project will provide the most reliable, affordable, and fastest internet today and for the next generation.”

Alaska Communications, which grew out of the city-owned phone utility in Anchorage to become a subsidiary of ATN International, already operates the most diverse undersea fiber optic system connecting Alaska to the Lower 48.

Russell Slaten | Calista Corporation

“We’re honored to work with Calista Corporation, Doyon, Limited, Gana-A'Yoo, Limited, and Tanana Chiefs Conference to bring life changing broadband service to rural communities,” says Heather Cavanaugh, vice president of external affairs and corporate communications at Alaska Communications. “The remoteness of these communities has resulted in them being left behind. The Alaska FiberOptic Project will eliminate that divide for these communities, providing access to virtual meetings, online classes, telehealth, and online jobs without having to leave their village or way of life.”

Project Progression

Fiber internet will be a fast, reliable, and affordable alternative to current internet options for these communities, such as microwave. Cavanaugh explains, “We’ve heard feedback from rural residents about the cost being unattainable and burdensome, sometimes in the hundreds-of-dollarsper-month range, depending on data overages incurred.”

Consumer satellite internet, primarily Starlink, has arrived as an alternative, but Cavanaugh believes it’s not the best solution. “It comes with significant up-front costs for the equipment and is not as reliable as fiber internet. Starlink’s website references higher latency [data transfer delay] will occur in remote locations, including Alaska,” she says. “With Alaska Communications’ fiber-to-the-home service, residents will receive gigabit speeds, which remain stable and strong, thanks to the direct connection.”

Cavanaugh adds that Alaska Communications will offer available discounts for qualifying households on tribal lands through the federally supported discounts. “We are not charging installation fees and will share information about the FCC’s Lifeline program, which provides a discount of $34.25 a month on tribal land,” she says.

The Alaska FiberOptic Project has been progressing by phases since its launch. In 2021, Calista, Doyon, GanaA'Yoo, and Alaska Communications submitted grant applications to the National Telecommunications and Information Administration (NTIA). So far, funding has been awarded for three

“Reliable, affordable, high-speed internet is a key to connecting our people with the world, celebrating and advancing our culture, and offering opportunities for young people in our communities.”
Andrew Guy, President & CEO, Calista Corporation

(907) 302-2323

Building community through phenomenal shared experience

info@toastofthetownak.com ToastOfTheTownAK.com

segments: the upper Yukon River to Fort Yukon; from Fort Yukon to Circle, Venetie, and Chalkyitsik; and the Lower Kuskokwim River portions. Completion of these segments will connect fifteen communities to high-speed internet.

Alaska Communications began the permitting process in January 2023. The company is on track to complete

the construction of the upper Yukon segment by the end of 2025 and the lower Kuskokwim segment by the end of 2026, Cavanaugh says.

Upper Yukon Segment

More than 1,000 rural Alaskans in five communities along the Yukon River will be receiving affordable, high-

wise counsel

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speed internet for the first time through the Alaska FiberOptic Project. This is thanks to a $50.6 million NTIA grant awarded on August 8, 2022 to Doyon, the Alaska Native regional corporation for the Interior. Cable will be installed to each home in Fort Yukon, Beaver, Stevens Village, Rampart, and Tanana. Connectivity will also extend to schools,

Allen Todd, Doyon’s general counsel (at left), looks at a map with a resident. The red line shows 135 road miles out of Fairbanks, and the blue line follows the Yukon River from Fort Yukon in the northwest, 310.7 miles downstream to Tanana, pictured at right.
Alaska Communications

clinics, tribal and village corporation offices, stores, businesses, and other entities in the community.

The upper Yukon River fiber line will travel from Fairbanks along the Elliot Highway to the Yukon River Bridge. From the bridge, fiber will be embedded in the Yukon River channel, upstream to Fort Yukon, and downstream to

Tanana. The fiber line will run 445 miles, with 135 miles overland and 310 miles underwater.

Work on the upper Yukon River segment encompasses construction and installation of equipment, kiosk environmental resource evaluations, deployment of fiber optic cable from existing utility poles to buildings, and terrestrial construction along the Dalton Highway from Fairbanks to the Yukon River Bridge.

Sarah Obed, senior vice president of external affairs at Doyon, says installation of the terrestrial portion will precede next summer’s work in the river to connect Beaver, Fort Yukon, Stevens Village, Rampart, and Tanana.

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ASRC is more than a business, it is an invaluable source of economic support for our people, our

Doug Hudson (at right) of DeployCom, a partner company of Alaska Communications, consults with a resident on a map of Tuluksak, part of the Lower Kuskokwim segment of the Alaska FiberOptic Project in the Calista region.
Alaska Communications

Alaska

Alaska Communications

Beaver

Stevens

Yukon River

Tanana

Rampart

Nulato Kaltag

Kuskokwim River

Circle Venetie

Chalkyitsik

Fort

Fairbanks

As work is completed in each village, there will be a variety of employment opportunities. Jobs for brush clearing, tree trimming, food preparation, and laundry support are available this year. Employment opportunities for 2025 will involve trucks and drivers, water taxis to ferry installation crews, and small boat captains to transport fuel.

Obed says internet service should be operational by the end of 2025. In the meantime, Doyon and Alaska Communications have been preparing villagers for the arrival of high-speed broadband. In May and June, a webinar in each village shared information on what community members could expect, such as how to sign up for service.

Community meetings enabled Alaska Communications to address questions about fiber-to-home device installation. “This device will allow customers to purchase services once the riverfiber construction is complete in 2025,” Cavanaugh says.

To Obed, the Alaska FiberOptic project is a “big step forward” in providing internet to the impacted Interior communities. “Doyon and Alaska Communications are really committed to providing high-speed

internet to residents,” she says. “I think everyone sees it as a great opportunity.”

Yukon Flats Segment

As the tribal nonprofit in the Doyon region, TCC is partnering with Alaska Communications to bring broadband to three underserved villages: Circle, Chalkyitsik, and Venetie. The initiative is funded by a $35 million grant that the US Department of Agriculture awarded TCC on September 19, 2023.

For this phase of the Alaska FiberOptic Project, instead of Fort Yukon being the end of the line, it’s the jumping-off point for the other villages. “The terrestrial fiber network will begin in Fort Yukon and extend to Venetie and Chalkyitsik. Submarine fiber cable will be placed in the Yukon River to connect Fort Yukon and Circle,” TCC explained at the time of the award.

As with their neighbors downstream, the three villages will be able to benefit from much-needed broadband internet. “The lack of reliable connectivity perpetuates disparities in education, healthcare, economic opportunities, and social well-being for our people,” TCC Chief and Chairman Brian Ridley said upon receiving the USDA grant.

“We’re working diligently with our Native corporation partners, the Alaska [Congressional] Delegation, government entities, and Alaska Communications to remedy market conditions that have left our Alaska Native Villages on the wrong side of the digital divide. Mahsi' Choo to the US Department of Agriculture and the Biden-Harris administration for this profound opportunity.”

Middle Yukon Segment

While funding has been secured to connect villages up the Yukon River, work continues for villages farther downstream. “We continue to look for other opportunities to expand the network and provide reliable, highspeed fiber connectivity to other communities,” Cavanaugh says.

Alaska FiberOptic Project partners are seeking funds for the Middle Yukon River segment. This portion would link the upper Yukon River and Lower Kuskokwim River segments. If the Middle Yukon River segment is funded, the collaboration between Gana-A'Yoo, TCC, and Alaska Communications would expand broadband to six communities: Ruby, Galena, Koyukuk, Nulato, Kaltag, and Holy Cross.

This section—which spans more than 400 miles—would start at Tanana and travel downstream to Holy Cross. An overland terrestrial fiber line would run south to the Kuskokwim River village of Upper Kalskag, linking there with the Lower Kuskokwim segment connection to Napakiak.

Lower Kuskokwim Segment

Calista is working with Alaska Communications to connect seven communities along the Kuskokwim River: Upper Kalskag, Lower Kalskag, Tuluksak, Akiak, Akiachak, Kwethluk, and Napakiak. This section is funded by a $52.6 million NTIA grant that Calista received on October 6, 2022.

Thom Leonard, Calista’s vice president of corporate affairs, emphasizes the particular importance of the Alaska FiberOptic Project for the Southwest region. “Limited bandwidth in the Calista region is a barrier to economic development, employment, education, telehealth, and many daily functions that are now delivered online,” he says. “GCI's Terra network is an incredible feat but is technologically limited. We are grateful for the opportunity to help expand reliable, affordable fiber-optic service in the region that will help our shareholders and other community residents to access virtual meetings, classes, medical appointments, and employment opportunities without leaving their village or their way of life.”

The Alaska FiberOptic project will cover 180 miles to connect the seven communities of the lower Kuskokwim segment. When complete, more than 2,300 rural Alaskans along the Kuskokwim River will receive access to affordable, high-speed internet.

Leonard says he expects household service to be ready by the end of 2026. “The project remains on track, and we are looking forward to construction beginning in 2025,” he says.

As the Alaska FiberOptic Project advances, its partners remain committed to bridging the digital divide for Interior river villages. Partnership has been essential to progress so far.

Leonard says, “We are grateful for the tribal support for this project, which was critical for us to receive funding. The leaders and residents in the communities are wonderful to work with.”

USE WASTE OIL TO HEAT YOUR FACILITY!

First Pour

Manh Choh joins the ranks of producing gold mines

Mo lten gold filled a brickshaped mold to form a 600-ounce ingot on July 8, 2024. The metal had been waiting all winter for its chance to shine. The first pour from the Manh Choh gold mine was a moment for celebration.

"From the first discovery hole to pouring the first bar of gold emblazed with the special Manh Choh branding, it has certainly been a journey, but one that sets us up for future success," said Rick Van Nieuwenhuyse, president and CEO of Contango ORE, during the ceremony at the Fort Knox mill north of Fairbanks.

The Manh Choh mine exists on land owned by the Native Village of Tetlin. The tribe entered a partnership with Fort Knox operator Kinross Alaska—a subsidiary of Kinross Gold Corporation—(70 percent) and Contango ORE (30 percent) for the mining project. From the exploration phase to the first gold pour, Kinross Alaska and Contango ORE pledged to honor the traditions of the Tetlin tribe and address any concerns or questions.

“Manh Choh has become an integral part of the Kinross Alaska operation. The Kinross approach is to work closely with our stakeholders

to reflect their priorities and ensure there are lasting, long-term benefits for our host communities. I believe we have done that here, and we will continue to do that going forward,” says Kinross CEO Paul Rollinson.

“Manh Choh is Kinross Alaska’s first operation on tribal land, and from the beginning, we have been keenly focused on doing it right—for the people and for the land,” says Kinross Alaska Vice President and General Manager Terence Watungwa. “We wanted to make sure that this was always a trust-based, relationship-focused partnership with Tetlin.”

Tetlin Tribal Council Chief Michael Sam and Kinross Alaska General Manager Terence Watungwa at the celebration of the first pour at Manh Choh.
Greg Martin | Kinross Alaska
R ick Van Nieuwenhuyse President & CEO, Contango ORE
Photos Courtesy of Valdez Native Tribe and Seed Media.
“We recognize that these economic opportunities must be balanced with environmental protection and the preservation of traditional ways of life.”
Meadow Riedel Exte rnal Affairs Manager Kinross Alaska

Tetlin had a choice when the Alaska Native Claims Settlement Act became law in 1971. It could form a village corporation eligible for revenue sharing or it could take a fee simple title to reserve lands and forgo all other benefits. Tetlin chose the fee simple surface and subsurface title to approximately 743,000 acres. Monetizing those subsurface resources took decades.

In 2008, the Tetlin Council reached out to Contango to begin mineral exploration. The first discovery hole in 2011 confirmed high-grade gold resources were at the site. In 2020 Contango ORE partnered with Kinross Alaska to begin the steps toward mining.

“Alaska is a world-class mining jurisdiction, and we are proud to partner with the Tetlin people,” says Rollinson. “This partnership benefits residents and cements our commitment to the people of the state of Alaska.”

Bridge to Production

Originally launched as the Peak project, Kinross Alaska asked the Tetlin Tribal Council if they would like

to rename it. The Tetlin Tribal Council named the project "Manh Choh" which translates to "Big Lake" in the Upper Tanana Athabascan language and refers to nearby Tetlin Lake, which is culturally significant to the community.

“Our agreement is with the tribe, with whom we have always maintained a good relationship,” says Van Nieuwenhuyse.

Manh Choh underwent a rigorous, multi-year process to obtain the required federal and state permits to operate. Both the federal and state processes included a formal public notification process and public comment period.

Before starting operations, nearly eighty community meetings provided opportunity to discuss the Manh Choh permits, and the project team met with school districts and bus providers along the transportation route. The Manh Choh team continues to meet regularly with communities along the corridor and surrounding villages.

Mining started in the fall of 2023. The actual earthmoving is contracted to Kiewit, one of the largest

engineering, construction, and mining companies in North America.

The process begins with a controlled blast to extract the ore. The ore is then staged for transport to the Fort Knox facility approximately 240 miles away.

“By using the existing infrastructure at Fort Knox, we are able to minimize the environmental footprint for this project,” explains Meadow Riedel, Kinross Alaska external affairs manager. At full production, trucks make about sixty round trips per day.

For the Manh Choh project, Black Gold Transport delivers the ore to Fort Knox in state-of-the-art trucks. “The trucks being used for this project were specifically designed for Alaska roads,” says Riedel. “The vehicles are also equipped with Samsara technology to increase safety for the drivers,” referring to an internet-connected fleet management system.

After transport, the ore is stockpiled in a designated area at Fort Knox, Alaska’s largest open-pit gold mine, to be processed. The ore is delivered to the primary crusher and reduced in size before being fed into the grinding

Speakers at the celebration of Manh Choh's first pour included Kinross Alaska General Manager Terence Watungwa (top left), Alaska Lieutenant Governor Nancy Dahlstrom (right), and Kinross Gold CEO Paul Rollinson (bottom left).
Greg Martin | Kinross Alaska
“We enacted strict guidelines for our employees who utilize the campus. For example, it is a dry campus, and no alcohol consumption is allowed on site.”
Meadow Riedel Exte rnal Affairs Manager Kinross Alaska

circuit. This process releases the gold particles from the surrounding rock. After grinding, the ore undergoes a process to dissolve gold from the ore. A carbon-in-pulp method is used to recover the gold from solution before it is further concentrated in the refinery into a high-grade powder. Ultimately, the powder is melted and transformed into gold bars.

Community Impact

"Manh Choh is the second largest private employer and source of income in the Southeast Fairbanks Census Area,” says Watungwa. “We’re continuing to build a world-class operation here, one constructed by Alaska companies and Alaska workers—with goods and services purchased from other Alaska companies. And we’re doing it safely, prudently, and responsibly."

The Manh Choh mine is viewed as a legacy project because it will bring economic development and employment opportunities to the local community. The mine is expected to

create approximately 400 jobs with a 62 percent Alaska hire rate.

Riedel says, “The project provides financial advantages, employment opportunities, and a large focus on job training for local peoples. Employees receive cross-functional training including heavy equipment skills, mechanics, mining techniques, and safety. These are skills and experiences that they can transfer to other opportunities in the future.”

The impact extends to the project campus in Tok. “We purchased a shuttered-down dilapidated hotel and restored it for use as a corporate office base. It also includes facilities and lodging for our employees,” says Riedel. Initially, locals were concerned about the influx of people and how that might affect current infrastructure. “We had robust conversations with local representatives to ensure they understood how our campus would impact the community,” explains Riedel. “As a result, we enacted strict guidelines for our employees who utilize

The Tetlin Tribal Council toured Fort Knox as part of the celebration of Manh Choh's first pour.
Greg Martin | Kinross Alaska
“Employees receive training across several platforms, including heavy equipment skills, mechanics, mining techniques, and safety. They obtain experience in the mining industry that they can transfer to other projects in the future.”
Meadow Riedel Exte rnal Affairs Manager Kinross Alaska

the campus. For example, it is a dry campus, and no alcohol consumption is allowed on site. Employees are also not permitted to go out to a bar in the community. We wanted to be certain the campus wasn’t going to have adverse effects.”

The campus serves as a place for employees to eat, sleep, and work. “We also focused on utilizing as much locally sourced goods as possible at the campus,” shares Riedel. “If we can, we buy eggs, flour, fresh meat, and vegetables from local vendors.”

The project also touches the local economies of communities along the haul route, which includes Fairbanks and North Pole. “We are a part of those communities and work with Contango ORE and other business partners to support them,” says Riedel.

That support by Kinross Alaska and its business partners includes culture camps, sustainability projects, new playgrounds, and funding local emergency services.

2,000 Pours Later

“We recognize that economic opportunities must be balanced with environmental protection and the preservation of traditional ways of life,” says Riedel.

Kinross has operated in Alaska for almost thirty years. The company has approximately 750 employees at the Fort Knox mine, and 95 percent of these are local hires.

Designed as an open pit mine, Manh Choh is expected to operate for four to five years, extracting at least 1.2 million ounces of recoverable gold.

“We’ve always talked about this project as being a four- to five-year mine life, and we want everyone to recognize that,” says Riedel.

Those 1.2 million ounces could be poured into one bar each day like the one first formed on July 8, every day of the year. That’s roughly 2,000 bars over the mine’s lifespan; probably more, given that typical gold bricks are 400 ounces, unlike the 6 00-ounce first pour.

After the mining is complete, everything will be removed, trees will be planted, and vegetation will return, restoring the land to its natural state. “For any mining projects in Alaska, a $650 million bond must be filed with the state to ensure the reclamation happens,” explains Riedel.

“Kinross values people and the environment as its first priorities,” says Riedel. “As we develop projects, we consult with experts and adjust project plans based on suggestions from community members and industry professionals. We are committed to responsible development and respect for culture and the land. This includes navigating through controversial topics with civility. We take great pride in being good neighbors, contributing community members, and an exceptional workplace.”

The Tetlin Tribal Council named the Manh Choh project, which translates to "Big Lake" in the Upper Tanana Athabascan language and refers to Tetlin Lake.
Greg Martin | Kinross Alaska

Perfecting Our Path Forward

In the Yup’ik language, Ciunerkaput Elluarqurluku means “Constantly perfecting our path forward.” At Calista Corporation, our cultural and corporate values include continuous improvement.

Improving the lives of our Shareholders. Growing our companies. Perfecting our path forward.

Swim Free or Die Effects of fish farming on the wild harvest

Fi shing is going out of style— at least on a global scale. The world’s fishing fleets have been decreasing since 2019, according to the Food and Agriculture Organization of the United Nations. In contrast, the fish farming industry has been growing. In 2022, the number of farmed fish in the world finally surpassed that of wild-caught fish.

“Farmed fish” encompasses a variety of cultivated seafood. It can involve breeding and releasing red king crab until the wild population rebounds, growing shellfish or finfish in controlled environments, or a dozen other practices. Hatcheries are the only legal form of finfish aquaculture in Alaska; all other fish farming is forbidden.

While the number of farmed fish is growing, it’s not a new practice. There is evidence that the Chinese farmed fish more than 2,000 years ago, according to the Wilson Center. The National Atmospheric and Oceanic Administration (NOAA) states that farmed fish is “one of the most resource-efficient ways to produce protein.” Proponents of fish farming

claim that it is more sustainable than wild-caught fish because raising fish in a regulated environment avoids overfishing and other environmental harms, unlike fishing on the ocean.

The reality of the situation is more complex.

While certain types of farmed seafood are reliably safe and sustainable— such as farmed seaweed, mussels, and rainbow trout from the United States—the standards of fish farming can vary drastically within different countries, according to a spokesperson from the Monterey Bay Aquarium’s Seafood Watch.

“Generally speaking, US-based aquaculture is well regulated and performs well against Seafood Watch standards for environmental sustainability,” the spokesperson states.

However, most of the seafood in the United States is imported. The United States imports most of its farmed fish from China, such as freshwater tilapia, according to trade reports from NOAA Fisheries. Seafood Watch warns against eating Chinese fish for multiple reasons: the habitat the fish are raised

in and concerns about chemicals, diseases, and environmental damage.

Even friendly countries can have problems. Seafood Watch reports that consumers should avoid almost half of the salmon from Norway and most salmon from Chile, the United Kingdom, and Canada—the four largest salmon farming countries in the world. In Chile, from where around half of US-imported farmed fish originates, farmers rely heavily on antibiotics to control bacterial diseases.

Still, the fish farming industry is expected to continue grow, according to the US International Trade Administration. One of the most popular farmed fishes in the world is salmon, and this competes directly with wild Alaska fisheries.

An Ever-changing Market

“In a complex, diverse, and global category like seafood, farmed fish and seafood definitely competes with Alaska, and other wild seafood, throughout,” says Greg Smith, communications director at the Alaska Seafood Marketing Institute (ASMI).

Farmed salmon makes up roughly 75 percent of the global salmon market, and that number is expected to increase, according to ASMI’s April 2024 Economic Value Report.

“The most direct, and largest, competition from farmed seafood would be with salmon. Notable regions with significant farmed salmon production include Chile, Norway, and New Zealand,” Smith says. Alaska pollock and cod also compete against farmed tilapia and pangasius, also known in the United States as swai or Asian catfish.

Foreign fis h farms are not the only concern.

NOAA Fisheries reports that fish farming makes up around 7 percent of domestic seafood production by weight and almost 25 percent of seafood production by value. The majority of this—more than 80 percent—is in the form of mollusks. As for finfish, $66 million worth of Atlantic salmon was farmed in the United States in 2018, for example.

Alaska’s interest in preserving wild seafood—both in the ecosystem and as a share of the market—has raised

Alaska Seafood Marketing

political alarms. Representative Mary Peltola, for instance, is including language prohibiting offshore aquaculture permits in legislation that would otherwise fund competitive grant programs to increase processing capacity for farmed shellfish and seaweed, as well as for wild caught fish.

Little Fish in the Big Sea

Raised apart from their wild cousins, farmed fish are not entirely isolated. Even though farmed fish is often sold as a “sustainable” alternative to wild seafood, the farming process still has its downsides.

For starters, farmed fish need to eat, and farmed species usually eat other fish. Thus, millions of tons of low-value fish, such as sardines and anchovies, are made into fish meal for the sole purpose of feeding farmed seafood, Seafood Watch states on its website. This can put pressure on wild populations and contribute to overfishing. According to the Wilson Center, this already happened decades ago when China overfished its own waterways.

A natural parasite of salmon, sea lice are isopod crustaceans that thrive in the close quarters of aquaculture pens.
Oscar Dyson | Nicholette Durkan | NOAA

It is possible to raise certain fish with mostly plant diets—catfish, tilapia, and carp are notably non-carnivorous. However, most of the lucrative fish on the market, such as salmon, are carnivores and need that extra protein.

Feedstock aside, farms can pose other threats to the environment.

“[Farmed fish] is banned in the state of Alaska because it hurts our wild fish populations by reducing their survivability, causing disease spread, and polluting water with antibiotics and other chemicals,” according to Peltola’s office.

Most finfish are farmed in netted off sections of the open ocean. This puts them in proximity with wild populations—and makes it easy to catch diseases, according to NOAA Fisheries. Wild fish are usually killed or eaten by prey before they can spread germs or parasites to large numbers of other fish. Farmed fish, which live in high-density spaces, spread their diseases to each other.

These illnesses can be reintroduced to wild populations on a large scale, making their impact on the populations

more prominent, according to the United Kingdom’s Natural History Museum. For instance, salmon farms are notorious for sea lice outbreaks.

More than 16 percent of farmed salmon in Norway—more than 62 million fish—died in 2023, mostly due to sea lice related injuries and illnesses, SeafoodSource reported. Most of those fish were sold as fish meal.

More than 865 million fish died in mass mortality events at major salmon farms between 2012 and 2022, a study published in March by the scientific journal Nature found. Both the number of mass casualty events and the amount of fish killed in each one have increased over time.

A report from Fisheries and Oceans Canada, which is the federal institute responsible for managing Canadian fisheries, found connections between sea lice outbreaks in salmon farms and outbreaks among juvenile salmon populations in British Columbia.

There is no easy way to deal with sea lice. Many farmers turn to chemical interventions to kill the pests, according to the Natural History Museum. These

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“In a complex, diverse, and global category like seafood, farmed fish and seafood definitely competes with Alaska, and other wild seafood, throughout.”

Alaska Seafood Marketing Institute

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chemicals often make the fish sick by reducing their appetites and stunting their growth. Not only that, but sea lice have also gained resistance to the chemicals used to fight them.

To fight off bacterial diseases, farmed fish are given antibiotics, which introduces health risks to the consumer, according to a Seafood Watch report on Chilean farmed salmon.

“When antibiotics are used appropriately, the final food product is considered safe to eat,” says a spokesperson from Seafood Watch. “The misuse of antibiotics in animal production, though, is a concern for both the environment and human health—specifically because of the development of antibiotic-resistant bacteria.”

The US Food and Drug Administration places regulations on antibiotics in imported seafood, but there are no global standards or regulations.

“This is a growing issue, but the exact effects of antibiotic use on the

surrounding environment are still poorly understood,” Seafood Watch adds.

Rising Tides Lift All Boats

There are some easy ways to tell if a fish is farmed or wild caught. For example, all Atlantic salmon is farmed, and all fish with an Alaska seafood label on it is wild caught.

“It’s important for consumers to know what they are eating,” Smith says.

Although there was a large bump in seafood sales during the COVID-19 pandemic that continued into 2022, it didn’t last. By 2023 seafood sales in the United States dropped beneath prepandemic levels, according to ASMI’s April 2024 Economic Value Report. Even though the price of seafood has decreased, land-based proteins are still less expensive.

On this front, farmed fish might actually bring some positive change, according to Smith. If farmed fish can make the market grow again, it will lift the Alaska seafood market up with it.

“Seafood as a category, especially in the United States, lags behind terrestrial proteins such as pork, beef, and chicken in overall consumption. We need more consumers buying and eating seafood more often,” Smith says. “Farmed fish certainly impacts Alaska fisheries by reducing demand and increasing competition. However, getting more people comfortable eating seafood can help in the long term.”

ASMI’s consumer research found that, once people start eating fish, they come back for more. According to Smith, this will draw consumers to Alaska seafood.

Smith says, “ASMI believes the numerous positives of Alaska seafood—sustainable, always wild, healthy, harvested from pristine waters by hardworking Alaskans who respect the environment, and follow strict environmental and labor laws—will lead them to purchase A laska seafood.”

A pink salmon fillet is, as the name suggests, naturally pink, thanks to the pigment astaxanthin in the krill and shrimp eaten at sea. Farm-raised salmon have astaxanthin added to their feed.
Alaska Seafood Marketing Institute

Greetings

from Washington

Wired Cattle

High-tech tools for Alaska livestock

If only our Neolithic ancestors could see us now. They’d hardly believe that farming and animal husbandry, which transformed society roughly 12,000 years ago, could be done from miles away without stepping in a pile of manure.

Alaska farmers and ranchers have not been practicing animal husbandry for as long as those in the Fertile Crescent, but Alaskans are early adopters of new technology. With factors stacked mostly against raising crops and cattle here, Alaskans tend to jump on board if there’s an advantage to be had.

From camera-monitored calving and wireless fences to robotic milking machines, Alaskan farmers and ranchers are using modern tools to make the most of what Alaska has to offer.

Backup Power Provides Stability

It’s not the manure that keeps Julia Saunders away from her livestock on Hungate Farms; her cows and pigs are pets, friendly and curious to see if she’ll give them a pet or a treat when they see her. And she’s not put off by a cow flop or pig slop. Saunders has a day job: she runs Advanced Blasting Services, a heavy civil contractor specializing in explosives.

Hungate Farms, which Saunders operates with her husband, is a side project and labor of love that they’ve carved out of roughly 280 acres north of Wasilla, in the foothills of the Talkeetna Mountains. It’s a year-round operation, selling farmto-table beef and pork. The beef is Black and Red Angus cattle, with a little Hereford blood in the herd. The pigs are a mix of Berkshire, Yorkshire, and Hampshire breeds. All the livestock are born, raised, finished, and butchered at the farm.

Customers—mostly repeat business or those who’ve learned of the farm through word of mouth—purchase a side of beef or a whole animal at the Hungate Farm website and, when it’s time for processing, the customer picks the cuts they prefer and picks up the order from the processor, Bear Mountain Meats in Palmer.

There are two things a modern farming operation, especially one set up as a side venture, needs to have: reliable power and reliable internet. While the farm is connected to local power, Saunders says they’ve learned they need backup. A January 2022 windstorm took out power for several days, which meant the stock water tanks weren’t running, among other issues. It’s an event Saunders says they don’t want to repeat.

“Our water is on demand; when we’re out of water, there is no backup,” Saunders says. “We decided we wanted to go with a Tesla Power Wall, a large lithium-ion battery. It’s Phase 1 of our backup plan. We have four Tesla Power Walls, and then our goal is to have solar, so the solar will charge the batteries.”

Saunders says she hopes that, once the solar panels are in place, the farm can primarily run off solar power in the summer, which will help cut down electrical costs. The solar portion is still up in the air; Saunders has applied for an agriculture-focused rural energy 50/50 matching grant and hopes to hear if they’ve received it later this year.

Renewables are a focus for Hungate Farms, Saunders says. She and her husband have electric vehicles and brought one of the first electric tractors to Alaska. Solectrac, a Californiabased company, has been making tractors for several years but really gained a foothold in 2021 when Soletrac was

Patricia Morales | Alaska Business

purchased by Ideanomics, a company whose mission is to accelerate the commercial adoption of electric vehicles. Hungate Farms uses an e25G tractor, the smaller of the two versions Solectrac makes. In the year and a half they’ve had it, Saunders says it has suited their needs well.

“We can use it indoors; there are no exhaust emissions, and it’s indooruser friendly,” she says. They keep it in the heated barn and, although battery use depends on temperatures outside, the tractor can often go up to a month without recharging. They use it for moving around grain, fencing supplies, manure, bales of hay, stock trailers, mineral tubs, et cetera. It charges with a simple 110-volt outlet, which makes it easy to incorporate into the farm.

Remote Monitoring

Working a full-time job with the farm as a side venture requires some clever multi-tasking, especially at key points during the year. In the spring, when cows and pigs are birthing, Hungate Farms relies on remote cameras to let Saunders know if she needs to

rush home to help a heifer struggling to deliver its first calf or keep an eye on a pig and her piglets. Nestled in the foothills, the farm is outside the coverage area of local internet service, so Starlink satellite internet keeps a strong connection.

“Starlink was another big move forward for us, to be able to have the cameras. I can see if a pig is birthing and go home,” Saunders says.

“This spring, we had cameras up in our calving barn and, during the day in our office, I noticed one of our heifers was not acting like she usually does. On the camera, I saw that she had prolapsed,” she says. “If I hadn’t had the cameras and Starlink, I wouldn’t have known that, and she may have died.”

Moose-proof Fencing

While remote monitoring and electrical stability have proven vital to keeping the farm on track when working several miles away, Saunders began using a new tool this summer that is even more exciting: wireless fencing. The virtual fence requires internet connectivity through

A component of the Tesla Power Wall is mounted in the Hungate Farms barn.

Patricia Morales | Alaska Business

Starlink. Customers without propertywide internet can install a base station that beams coverage to the collars, Saunders notes.

Each cow wears a collar that has a solar-powered medallion. The fencing program recognizes each collar as an individual cow, tracks its movement, and can even tell the direction it’s facing. On her computer or mobile app, Saunders can draw a line on a map to set up a “fence” to keep the cows in. If the cow ventures near the boundary, a warning tone starts to sound. If the cow gets too close to the virtual fence, the collar delivers a small shock—Gallagher Animal Management, the company that makes the eShepherd collars, calls it “an aversive, but harmless, pulse.” The setup is similar to wireless dog fencing systems on the market.

Hungate Farms is the only user of the eShepherd system in Alaska, and definitely the furthest-north user, Saunders says. Bill Gallagher Senior, the founder of Gallagher Animal Management, is also the inventor of the modern pulsed electric fence. Gallagher was founded in New

Zealand, although it now has offices in Australia, Europe, Chile, North America, and South Africa.

The system takes training for both humans and animals. Saunders says her cows are used to wearing big bells around their necks—the best method for keeping track of them in wooded terrain, she says. The virtual fence is a little different; each cow needs to learn for herself where the fence is, what the warning tones mean, and what happens if she strays. The app shows how many times a cow gets into the “warning zone” area as well as whether the cow has crossed the fence. If a cow is being chased and crosses the fence, for example, the collar goes quiet again, not delivering further warning or shock—but it does deliver a text alert to Saunders that a cow is out of bounds.

“And naturally, the cattle will want to go back to the herd,” she notes. “Once they re-enter the virtual fence, it resets the collar.”

Saunders says she and her husband have gone to considerable effort and expense to erect perimeter fencing, both barbed wire and electric. The

Photo by Amanda Doney Umialik Employee

At left, cows graze in the hilly, wooded acreage of Hungate Farms. At right, Saunders points out features of the eShepherd collars they began using this summer.

virtual fencing is mainly for the inner perimeter, allowing cattle to graze on a 40-acre block and then gradually move to another.

The virtual system is costly, but perhaps less costly than erecting physical barriers only for wild ungulates to destroy them.

“It was super disheartening to spend the money and invest the time into our fencing, and then the moose would tear it down every day,” she says. “It’s a bigger upfront cost, but it’s worth it in the long run. It’s really nice to be able to pull up the app and see if my cows are out.”

Saunders enjoys working in the construction industry, but she sees the farm as her passion. In construction, keeping abreast of technology and moving with the times is essential. It’s no different for farming, she says, but the focus is a little different.

“I’m passionate about food; I’m passionate about farming. Construction is a good industry for us here, but I love having the farm, having to get out of bed at 5 a.m. and check on the animals,” she says.

On-demand Milking Machine

Dairy farmers are known for their 5 a.m. milking routines, but Scott Plagerman says early morning milkings are not part of his family’s routine. Plagerman and his family have run Alaska Range Dairy since 2021. Milk from the Delta Junction dairy is in stores all over the Interior and Southcentral,

including most Walmart and Three Bears Alaska stores.

Plagerman says his family of four couldn’t have gotten into the dairy business if they had to rely on traditional milking practices—even with automatic milkers. It’s too labor intensive, he says, and there aren’t enough agricultural laborers in Delta Junction. Instead, from the start, his dairy has used a robotic milking machine.

Replacing a milking parlor, the Astronaut A4 is a chute that cows walk into and out of on their own. When they walk in, a collar recognizes the cow and distributes a little feed into a trough. A robotic arm goes under the cow, locates and attaches to its teats, and the milking process begins. Because each cow’s visit to the milking robot is tracked, the food can be modified to correspond with milk output, and things like the temperature and fat content of each cow’s milk can be intricately tracked and monitored.

Plagerman says the cows seem to prefer the freedom; they come and go at will, without having to be herded, which can be stressful. Some cows visit the milking machine twice a day while others might go more frequently, but Plagerman says his herd of about sixty cows averages about three milkings a day. The only limit is that the machine will not respond if a cow has been through just a couple minutes before.

Mechanical Efficiency

The larger benefit to the robotic milking machine, he says, is that the

collars track movement and behavior, such as how often a cow swallows. If there’s a variance of about ten percent, the program will note the change.

“The system will alert us if the cow isn’t feeling well. We have zero health issues because we catch stuff early,” he says. He’s generally able to treat the issue with minor medications (think an aspirin or antacid instead of prescription antibiotics, for example), and the illness is quelled before it becomes something significant.

The Astronaut A4 is made by Dutch company Lely, an industry leader in dairy robots. Plagerman says, “Efficiency is the main thing of this. We’re a family farm and trying to do all of that with a family, it would be impossible—and with the lack of veterinary service in the state, especially where we are.”

Plagerman also uses a barn floor cleaner made by Lely. Instead of mucking stalls, this Roomba-like device pushes piles of manure into a hole in the barn floor that leads to a holding tank under the barn. The underground storage tank can be cleaned out, and the manure becomes fertilizer, so nothing is wasted—including time spent mucking the barn.

Plagerman added a second robot milker last fall, in anticipation of growing the herd from sixty to eighty cows. With more and more stores carrying Alaska Range Dairy milk and yogurt, the herd must expand to keep up. And high-tech tools make that possible, even in the hardscrabble farmlands of Alaska.

At left, Julia Saunders demonstrates how the eShepherd program works on her laptop. At right, a curious yearling greets farm visitors. Patricia Morales | Alaska Business

IA Tool and a Teammate

Generative AI in marketing, advertising, public relations, and design

n the dynamic world of marketing, the maxim “content is king” remains as relevant as ever. But today, generative artificial intelligence (Gen AI) is transforming how marketing, advertising, and public relations (PR) agencies produce high-quality and consistent content for their clients. At the same time, these agencies are actively shaping strategies to ensure their ethical, transparent, and responsible use of Gen AI.

Gen AI empowers users to quickly create text, images, audio, video, and other content with minimal human input. In essence, Gen AI leverages machine learning algorithms that analyze existing data patterns to synthesize new content. From blog posts and social media updates to

advertisements, pictures, movies, and music, Gen AI renders content based on simple text instructions—known as prompts—provided by users. Examples of popular Gen AI tools include chatbots like ChatGPT, Copilot, and Gemini (formerly Bard), as well as text-to-image programs such as Stable Diffusion, Midjourney, and DALL-E.

Marketing, advertising, and PR professionals are increasingly adopting this rapidly evolving technology. Software platform Muck Rack released a State of AI in PR 2024 report that found 64 percent of professionals surveyed are using it, up from 23 percent the year before. Furthermore, 74 percent said they improved the quality of thei r work by using AI.

The trend is nationwide, and creative firms in Alaska are no exception.

Jumping-Off Point

Gen AI is helping Wasilla-based Optima Public Relations refine its efforts when concepting and finalizing content. This enables the small agency, which has several offices in Alaska as well as in Arizona and Nevada, to better serve its diverse clients, which include local nonprofits, family-owned businesses, medical facilities, and political candidates.

“I think AI is a great tool for getting some thought-starters going,” says Optima CEO Becca Koonce. “We write all our copy, and sometimes we will run it through the AI platform. It’s an autopilot for improving grammar, adjusting a

tone, or seeing if there’s anything else that needs to be included.”

However, she treats AI as a tool, not a one-and-done resource. “It’s a great jump starter to get some ideas going and a great option to see if there are any little tweaks,” Koonce explains. “It’s like having another team member. We are using it as a platform to see if our bases are covered and we’re not missing out on any opportunities. We are human, after all.”

AI adds a unique element of objectivity to content development, she believes. For instance, ChatGPT can help fill gaps in messaging that team members might overlook.

“When you’re all working on a project, it’s like drinking your own Kool-Aid,” Koonce says. “Using AI is kind of like pitching to a fake client.”

Occasionally, Optima uses AI to tweak graphics, taglines, and other elements. It’s nice to be able to input original designs or current logos and ask AI for feedback and alternative concepts, Koonce says. However, she points out, “AI is only as good as the information it’s provided or the prompt you give it.”

Optima also relies on AI to summarize team notes from client meetings and complete other timeconsuming administrative tasks. “All and all, it’s about working smarter, not harder,” Koonce says.

Likewise, Gen AI is helping redefine content creation at Spawn Ideas, a fullservice Anchorage advertising agency.

AI helps Spawn Ideas expedite the “creative journey,” according to Amy Adams, creative lead and director of digital and social engagement.

Amy

“In the past, we might have gained our footing with content ideas by spending hours and days in content ideation and building a plan for content,” she says. “AI helps to shape that plan much faster. AI helps us get

“We, the humans, have the relationships with the client to know the nuances of what they are looking for, and that’s driving the prompts for AI… AI is not necessarily the generator for us; we own these campaigns.”
Amy Adams, Lead Creative & Director of Social and Digital, Spawn Ideas

CREATING NEW JOBS & GOLDEN OPPORTUNITIES FOR ALASKA’S INTERIOR

Alaska is a premier mining jurisdiction with the highest and most stringent standards in the world. We know how to do mining right.

Terence Watungwa Vice President, Kinross Alaska

Becca Koonce Optima Public Relations
Adams Spawn Ideas
“I think we will see AI creators, AI accounts, or brand pages create content more quickly… I think it’s important for people in our industry to understand how AI will factor into the customer’s journey.”
Zach Aregood Co-foun der, President & CEO ARM Creative

a lot of that thinking out of the way, and we can make it [the content] our own after that. It gives us a head start, a jumping-off point.”

Gen AI also helps the agency streamline its approach to creating storyboards, saving hours in the process. “In the past, we might have had to employ an illustrator; now with the Gen AI illustrator tools, we can prompt an image to come out that matches our script and storyboard,” Adams says.

Marketing and ad agency ARM Creative is taking a calculated approach to Gen AI. The Anchorage company doesn’t employ AI tools every day or for broad purposes. Instead, it’s selectively using AI to assist mediumto-large-size businesses with marketing campaigns, media buying, graphic design, and social media. ARM Creative primarily implements AI tools in the early stages of developing ideas for projects ranging from organic social media content to full-scale marketing campaigns to pre-production.

“It really helps to kick start our creative concepting,” says President and CEO Zach Aregood. “We’re not using it for every project, but it’s helping us to streamline and focus on the more strategic aspects.”

work for you, it can help tremendously with that,” Aregood says.

Ensuring Content Uniqueness

Humans are still in control, ensuring the uniqueness and creativity of the content they generate with AI.

“It’s not just a dump that you can copy and paste out of and expect it to deliver value to clients,” says Koonce. “Any time we utilize anything that’s AI-generated, it’s something that’s contributing to, refining, or adding to content. At the end of the day, everything will be unique to our brand or the client’s brand. It’s leveraging the value and efficiency of what AI can bring.”

AI is not a replacement for creativity, but a complementary tool, Koonce emphasizes. “There are some things that can’t be auto generated,” she says. “I think if we harness that, there can be a harmonious blend between efficiency and human ingenuity. We can continue to create impactful, thoughtful, and inclusive content that resonates with our client.”

Using AI, Koonce says, is about balance. “It’s one of those things where we’ll keep tabs on it and keep our checks and balances in place. We’ll do our due diligence but utilize and leverage things that can be beneficial for our client.”

Zach Aregood ARM Creative

For instance, with the preproduction process for video and photography, AI acts as a “research partner” in the preplanning and ideation stage with creative briefs. This can save a considerable amount of time, as there can be numerous shots, lenses, and angles involved with some photo shoots. “We can input our brief, goals, and objectives and then give ChatGPT a prompt to create a shot list,” Aregood says. “It’s much easier to start with that than from scratch. And it [AI] can come up with missed opportunities that we may not have gathered in our research.”

Gen AI also enables the agency’s copywriters to minimize frustrating situations like writer’s block. “When you have tools like this, if you can find ways to prompt it [the AI model] and make it

Like Koonce, Adams notes that it’s human creativity that formulates the prompts. “We, the humans, have the relationships with the client to know the nuances of what they are looking for, and that’s driving the prompts for AI,” she says. “AI is not necessarily the generator for us; we own these campaigns. We are enriching our ideas in ways we might have previously outsourced, such as hiring an artist to do a storyboard or prompting AI to get us started on some email headers or a content plan. We use it to get started and add a personal touch with the brand we know so well.”

Gen AI can only answer what humans ask of it, Adams says. “When we put in quality prompts and creative solutions, it’s helping us down the path in creating our creative vision,” she says. “We own the process. Even though AI is filling in the gaps, it’s under our supervision.”

Spawn Ideas is also using AI to expand its resources and competitive advantage in the marketplace. “We call it the great equalizer because it allows us

Photo Station Photo Booth
“It’s a great jump starter to get some ideas going and a great option to see if there are any little tweaks. It’s like having another team member. We are using it as a platform to see if our bases are covered and we’re not missing out on any opportunities. We are human, after all.”
Becca Koonce CEO
Opt ima Public Relations

to have more tools at our fingertips, but we still own the creativity that’s driving those tools,” she says.

Ethical, Transparent, and Responsible Use

Gen AI is vulnerable to “garbage in, garbage out” errors, so human oversight remains essential. While Koonce says she hasn’t noticed any biases with AI-generated content, her agency is vigilant about the issue. “When we are putting out content, we always look for anything that may come across as inappropriate in a context and make adjustments,” she says. “We want to make sure things are inclusive and accurate. The most important thing for us is to make sure that anything we put out is authentically representing the client, not just Optima, and that it's work we will stand behind.”

ARM Creative relies on the skills of its diverse and experienced team to address the inherent weaknesses of AI. “We’re aware that AI models can inadvertently perpetuate biases, so it is important that we closely review and fact check anything we get from these models to make sure we are genuine, factual, and authentic,” Aregood says. “For us, all the work is done by ARM Creative. Our biggest asset is our team, their minds, and their skills. We’re just using the tools for efficiency and brainstorming.”

Marketing and advertising agencies in Alaska are also focusing on applying AI tools transparently. Optima, for example, informs clients whenever it can use AI. Optima uses AI to summarize its quarterly reports for clients, saving a considerable amount of time and effort. “We obviously have to audit the report, but being able to get that off our plate is beneficial,” Koonce says. “Rather than using all those hours and bandwidth up front, we can use our time to make a better, more polished final product.”

Spawn Ideas is also forthright about using AI in content creation. It’s not a tool to be ashamed of using, Adams says. In fact, Spawn Ideas’ strategy is to use Gen AI as a point of differentiation. “We’re upfront with clients when we use it,” she says. “We’ll say, ‘This story board was generated with AI.’”

Increasingly, the agency’s clients are expressing an interest in

using AI in their business. That interest—often coupled with a sense of awe—gives Spawn Ideas an opportunity to educate them.

So far, ARM Creative has not had clients asking about AI, but when they do, Aregood says he will be transparent. “We’re still learning how to work AI into our business for creative purposes,” Aregood says. “We’re doing the research to make sure we are doing it transparently and responsibly. We don’t ever want to replace that human element [with AI].”

The Revolution Will Be Digitized

Aregood says Gen AI is revolutionizing many industries, and it will be interesting to see its longterm impact on marketing, advertising, PR, and graphic design. In the future, AI will become commonplace and allow teams to tailor content more swiftly and efficiently.

“Attention spans are shorter than ever; consumers want more content and content more frequently,” he says. “I think we will see AI creators, AI accounts, or brand pages create content more quickly… I think it’s important for people in our industry to understand how AI will factor into the customer’s journey.”

At this stage, Aregood feels many people in the marketing industry—particularly creatives—are apprehensive about AI. However, he says, “It’s just a tool, and I think the artistic and creative side will always do better with a human touch. We don’t know all the mediums in which it will be applied because this is just Day One. But it’s fun to think about these opportunities.”

From Adams’ perspective, it will be interesting to see how AI will be the “great differentiator” with content development. As a creative, she appreciates AI because it augments the capabilities in her toolbox.

“It gives me more flexibility with creation styles and the ability to change images,” she says. “But I think we’re still going to want to see real images and videos of people. It will be interesting to see how the world starts to view AI use. I think at the end of the day, relationships and the people factor are still important.”

Hello? Are You There?

Ring, ring! That familiar sound brings joy to any business owner’s face, as there is often a potential customer on the other end of the telephone line. Unless you’ve kept up with modern telephony systems, chances are that is all your phones can do: ring.

For many, upgrading or changing the telephone system is a last thought or falls under the “if it ain’t broke, don’t fix it” category. But many of the innovations around voice over internet protocol (VoIP) and unified communications as a service (UCaaS) can greatly improve a business owner’s capabilities and the customer’s journey and experience.

VoIP and the customer interaction

To define it simply, VoIP is the transmission of the telephone call over the internet instead of dedicated copper telephone lines. This conversion from analog to digital opened the way to overlay many additional features and services on top of the traditional phone call. All these extra services bundled together are known as UCaaS, or many different communication technologies or channels coming together under one umbrella. This article treats VoIP and UCaaS interchangeably.

Most people don’t think twice about a phone call. The phone rings, it’s answered, and a conversation is started and finished. There is so much more that could be captured in that simple transaction. You may be saying, “I got everything I needed from the phone call; I don’t need anything else from it.” If that’s you, then as Bill Nye has famously said, “Consider the following.”

Improved Customer Interactions and Business Presence

If you run a call-heavy business, call metrics can be important. Do you know how long the average wait time is? Can you monitor which employees are signed into call queues? Can your staff see who is already on a call before trying to transfer a call? Is your call routing set up so your customer connects with the staff member who can best help them?

VoIP platforms are powerful, and the best ones unify your communication channels. They add the options of reporting, recording, routing, and integration.

Managers can listen in on calls for training—and if a call starts to get tough, they can “whisper” advice to the employee or take over the call completely. Add some computergenerated sentiment analysis, and if a call is deemed negative, then managers can review the interaction, giving customer management a proactive workflow.

Calls, texts, files, and video calls can all be recorded to avoid the dreaded “he said/she said” arguments.

Integrations with third-party services are often part of VoIP systems. Connections with customer success management/customer relationship management (CSM/CRM) suites, electronic health records, or any customer management tool with an open Application Programming Interface allows for customer records to pop open before your staff answers the phones. These services can capture call details to prevent duplicate work. Outbound automations can also send mass texts for marketing purposes or for ap pointment reminders.

Is your staff on the go? VoIP can let them start a call on a computer and then flip to a cell phone to continue the call while running to the next meeting. Remote work is also a breeze since this service can work from anywhere with an internet connection. Remote workers can be located anywhere and make and receive calls from local numbers. If you’re opening a new office out of state, local numbers for that new location are added to the account and assigned to the staff working there. No need to source local phone service and add an additional bill.

Finally, customers (especially younger generations) expect to be able to contact a business without picking up the phone. If your business isn’t set up to receive text messages or have a website that can handle chat requests, you are losing customers.

Business Continuity

Employees come and employees go. With their departure goes any communication history they had with your customers and other staff

members—unless it was manually captured elsewhere, say, within a CRM database. With UCaaS platforms, a reassigned phone number can keep all the historical communications intact, available for the employee taking over that position. Archiving features are also available, so any and all communications (texts, calls, chats, shared files, et cetera) can be automatically captured and stored for years, protecting against deletion.

Most VoIP providers have a cell phone app available, so your employees can use their own mobile phones (no more carrying around multiple devices) while keeping business communications separate from personal. The app handles all texts and calls that come through the business line. Employees no longer need to share a personal cell number if a client likes to text.

These features can maintain interactions so that knowledge isn’t lost when an employee leaves. Files and folders on computer systems are backed up; your communications data should be too.

Security and Compliance

Data fidelity refers to the accuracy and completeness of data. Many industries—law, healthcare, finance, government—have minimum standards to meet or exceed for protecting the data they collect and being able to reproduce that information in a complete and accurate state.

VoIP systems can capture more than simple call recording. As previously discussed, built-in archiving can capture everything: text messages, intraoffice chats, shared files, recorded calls, and video meetings. Archival storage is often immutable storage, meaning the data can’t be deleted until a certain number of years has passed— whatever your industry’s compliance requirements mandate. This ensures that you can recall more than just email communications if a litigation event or information request come up, giving a more complete picture.

With UCaaS doing so much more than just making and taking calls, data encryption is also built into these platforms; many services offer encryption and security levels that meet or exceed Health Insurance

Most VoIP providers have a cell phone app available, so your employees can use their own mobile phones (no more carrying around multiple devices) while keeping business communications separate from personal.

Portability and Accountability

Act, Payment Card Industry Data Security Standard, Customer Proprietary Network Information, and General Data Protection Regulation standards, among others, keeping data protected and your business compliant.

Cost Savings

The ubiquity of broadband internet has made the rapid advancement of cloud-based technologies a reality. VoIP platforms are no exception. Gone are the days when you needed to purchase expensive phone servers, which needed maintenance and replacement every few years, to house in your office. Cloud-based VoIP and UCaaS platforms are easy to deploy, scale, and afford.

Being fully digital, VoIP systems are easy to set up and maintain.

Web portals exist that allow for the configuration of user accounts, phone numbers, extensions, call routing, and the management of other features included in your service. Another benefit is that these services easily scale from 1 to 1,000 users. If you’re a brand-new solo-preneur opening an office, downsizing, or need call center capabilities, the number of active lines on your account can increase or decrease easily and be provisioned in a matter of minutes.

With less equipment to buy, there is obviously less cost to adopt a new VoIP service. Since many services offer apps for computers and cell phones, traditional desk handsets aren’t even needed. For many businesses, the reality is that switching to VoIP has a zero-dollar adoption cost. However, these services are so flexible that if a few physical phones are needed, they are bought, assigned to a person, and auto-configure once connected to the internet.

With so many features bundled with a simple phone call, your business can excel at keeping communication consistent and of high quality with your customers and clients. Calls can be controlled to reduce fatigue on frontline workers, and managers can gather the metrics needed to make changes to staffing or how many people are signed into any given call queue. Your business can capture and store data to aid in compliance and protections, and the flexibility and lower costs gives you an easy-touse tool to keep your business agile to changing needs.

Adam Mohr has been living in Alaska since 2009. He is originally from a suburb around Pittsburgh, Pennsylvania and graduated from Penn State University in 2005 with a degree in information science and technology. He started Solve IT Alaska, a managed service IT company, in 2013 and Leyline, a VoIP solutions company, with his business partner Courtney Moses in 2021. For more information visit solveitalaska.com or yourleyline.com.

Both Feet in the Boat

How great employees become great managers

Iwatched as the person put one foot into the kayak. It was wobbly, and they were nervous. Unsure and uncommitted, they kept one foot on the dock.

The kayak started to move away from the dock, and they suddenly realized what was happening. They couldn’t pull it back. They were half in, half out, and had a dilemma. Step back on the dock, and the kayak would drift into the lake. Or step into the kayak and see if they could paddle.

Paralyzed by indecision, the kayak moved farther away from the dock, and the inevitable happened. The span became too great, and they fell into the lake. The kayak drifted away.

This type of story plays out in organizations all the time. Managers move halfway into management, trying to balance their management responsibilities with their individual contributions but doing neither well.

Being a great manager is hard and requires commitment from the manager and the organization. When a manager isn’t successful, everyone loses. Employees feel neglected, the manager’s career hits a setback, and the organization loses momentum.

Great Managers Won’t

Happen

by Chance

Businesses need great managers to develop employees, lead teams, and achieve strategic objectives. Great employees want to continue advancing their careers and make an impact with the work they do. To become great managers, employees must put both feet in the management boat, get stabilized, and start paddling on their own.

Ultimately, the leaders of the business are responsible for the success of their managers. These leaders must be deliberate about developing managers to create stability in the organization, support growth, and encourage succession planning for long-term success. They must have a vision for the management roles needed, a process for selecting candidates, and a plan to support them through the coming waves and storms.

Cast a Vision

Before considering whom to move into management, the organizational leader must create a vision for the role.

What is the purpose of this role? What will success in the role mean for the employees and the business? What must be accomplished in this role? What are the critical results? When achieved, what else will be possible?

• How will this role look in five years? What will change, and how will the role adapt?

This exercise is natural when creating a new position, but it should also be done when backfilling a position. Defining a role by how the prior person fulfilled it is easy, but that approach may constrain the next manager with unreasonable or li miting expectations.

Include Subjectivity in Selection

Businesses want proven results and often rely on objective data for promotion decisions. However, top performers may not be the best candidates for manager roles. Measurable results are important, but leaders should also evaluate other subjective factors.

Coachability. Managers get feedback, criticism, and input from every angle: their employees, their boss, other departments, external partners, and customers. They must show they are receptive, can process feedback, and can make appropriate changes.

• Relationships. A manager needs to be able to connect with people. Consider how candidates build and maintain relationships with others. What are their peer relationships like? What is their reputation? Do people respect them? Will they have credibility with the team?

• Self-development. A great manager is constantly learning and growing. No matter how much support is promised, the manager is responsible for developing themselves. Consider how candidates invest in their growth. Do they seek out opportunities? What motivates them in their professional development? What areas have they sought to distinguish themselves personally or professionally? The ideal candidate has a growth

Telling Your Best Story with a Business Profile

As a business owner you want to find the best way to tell the story of your business. It can be a challenge to share your company’s products, services, and capabilities with existing and potential customers in a way that is engaging and convinces them that your business is worthy of consideration. While display ads are effective at presenting your brand in an eye-catching way, there usually isn’t a lot of room for an informative, persuasive message. Depending on ad size, you’ll have space for three to five lines of well-honed copy—a smaller ad might may necessitate a few bullet points.

An effective way to reinforce your branding is through a long form advertorial. According to the marketing experts at Intuit Mailchimp, advertorials have distinct benefits:

• Increased Credibility. With a format that resembles editorial content, an advertorial can help build trust and

credibility with the target audience. It’s both beneficial and necessary to state that the story is “Paid Advertising” or “Sponsored Content.”

• Increased Engagement. By sharing valuable information and educating readers, advertorials can establish a relationship with the target audience. Reading a story about your company prompts the reader to consider how your business might benefit them or their business.

• Long-Term Impact. Advertorials are designed to have a long-lasting effect. Readers tend to spend more time reading sponsored content and return to the story repeatedly, resulting in better information retention.

A Business Profile placed in Alaska Business offers you an effective way to tell the story of your business. We arrange for a professional freelance writer to learn more about and craft the story of your business while you retain complete control of what’s

ultimately published. A Business Profile also includes a professional photo session for businesses in the Anchorage and Fairbanks areas. Your Business Profile is published in the issue of your choice (both print and digital editions), and you own the rights to use the Business Profile text or photography in your other marketing materials. In addition to 100 printed copies, we also provide you with a framed printout of your Business Profile to enhance the decor of your business.

If you would like to expand on your current advertising with a Business Profile in Alaska Business, drop me a line or give me a call. Let’s talk further about how your business can benefit from an advertorial approach through a Business Profile. We’ve been telling the good stories about businesses in Alaska for almost 40 years and want to help tell yours.

JANIS PLUME 907-257-2917 |

mentality, which will be evident before they are promoted.

If a managerial candidate doesn’t do well in a couple of these areas, they may not be the best candidate for a management role. At the very least, the evaluation is worth further review.

Promotion to management shouldn’t be the only option to keep top performers engaged and rewarded. For many talented experts, a different approach may be more appealing. Consider the following options.

• Thought leadership. An expert in the business can become an expert in the industry, raising their status and the status of the organization.

Having a thought leader on staff can drive new business and be a powerful recruiting tool. Many companies are now designing technical tracks for their experts so they can continue advancing without pursuing management.

• Research and development. What new products or services could the business offer? Is a role available for designing, testing, and bringing those to market?

• Special projects. Employees who know the business and its operations can make a bigger impact through project-based improvement initiatives. These projects will help them grow professionally and provide rewarding ways to contribute to the organization.

Co-Create the Transition

For candidates suited to a leadership promotion, a successful move into a management position includes a transition plan. The boss and the manager should create and execute this plan together so that the manager feels empowered to lead the team from the start.

Here are three components to address in the transition plan.

Leaving the current position. If you’ve read my earlier column in the March 2024 edition of Alaska Business about the stages of progression in a role, this can be done in the Pioneer stage. Address the following areas when transitioning a managerial candidate out of the current position.

What are the essential duties the manager will need to delegate so they can fully commit to their new role?

• How can the manager make sure their individual contributions are effectively absorbed by others in their group?

• What strategies and techniques will the new manager use to preserve their boundaries and stay committed to their success as a manager?

Learning the new position. New managers are often surprised when they realize how much they must know. Although a manager’s learning never stops, explicitly identifying a period for learning in the transition plan reassures the manager, reduces stress for the boss, and provides security for the employees.

• What relationships will the new manager need to develop? How will existing relationships change now that the new manager is promoted?

• What skills will the manager need to learn, and how will they obtain them?

• What systems does the manager need to know? Consider including time and opportunities to shadow other managers and do rotations with other departments.

• Schedule a formal check-in time at the end of the learning stage to review progress and results. Managing the change. Promotions impact all employees and can be a cause for celebration. They may also cause stress or hard feelings. The boss and new manager must consider how to manage the change.

• Consider who the change affects most, internally and externally. Create a communication plan for all affected parties.

• Identify risks and create a mitigation strategy.

Commit to the Long Term

A smooth transition is important, but it doesn’t make a great manager. New leaders need ongoing support. When a manager is successful, it is easy for the organization to assume the manager is happy and fulfilled. However, managers get bored and will start thinking about what is nex t for their careers.

If businesses want great managers, they must continually support them and their career aspirations. One way to do this is for the boss to discuss the manager’s development and

desires regularly. Topics for these discussions include how they are doing overall, expectations for performance, needed training or support, strategic relationships, and career aspirations. Additionally, a manager's role can be lonely. Managers should seek out and build a community of peers from within and outside the organization. They should have time to network with peers in professional groups and attend industry events. This can improve their job satisfaction and provide new ideas and inspiration.

Management is a noble and necessary career path, but it isn’t always respected. Those who step into it will inevitably question their decision and waver in their resolve at points. Providing ongoing support and investing in their long-term development is a service to them and a benefit to the business.

Taking the Boat for a Ride

The management boat is wobbly and unstable. Employees need to know that before stepping off the dock, and organizations need to consider whom to promote into management and how to help them get both feet in the boat. Managers have an outsized impact on how people feel about work. Employees who feel great about their jobs go home with more energy to give to their friends, families, and communities. Managers change people’s lives. Managers also have unlimited potential to impact the business. Successful managers provide stability, improve retention, increase productivity, and support growth. With the support and commitment of their bosses, more great employees will step off the dock and become great managers, and everyone will benefit.

Brian Walch is an executive coach, consultant, and speaker on leadership development. He uses his extensive experience in people and systems to provide tools and services to empower managers to lead themselves, their teams, and their organizations. Learn more at shiftfocus.com.

INSIDE ALASKA BUSINESS

The Binkley Company

News remains daily on the Anchorage Daily News website, but in July the paper stopped printing six days each week. The state’s largest newspaper now puts out printed editions on Wednesdays and Saturdays. In a message to readers, publisher Ryan Binkley noted that only 7 percent of readers interact with content in print; most use digital platforms. Furthermore, print subscriptions have steadily declined while digital subscriptions rose to 19,000. Print subscribers will continue to have access to content published every day on the website, along with an “e-edition” that replicates the layout and features of the print newspaper. adn.com

Mat-Su Sentinel

A former Anchorage Daily News reporter joined the hyper-local journalism movement by launching the Mat-Su Sentinel. Amy Bushatz began posting stories on her website in June, and some of her reporting was picked up by the big city newspaper. With a focus on local government in the MatanuskaSusitna Borough, the Mat-Su Sentinel is organized as a nonprofit supported by the Tiny News Collective, a national fundraising network established in 2021. Subscriptions, including a weekly newsletter, are free. matsusentinel.com

Raw Market

Shoppers in Girdwood gained an organic option for buying fruits and vegetables. Raw Market opened in July at a former thrift store, just around the corner from the town’s main grocery store, Crow Creek Mercantile. Raw Market co-owners James Glover and Michelle Young were in the construction business, but Glover sees a future in aquaponic gardening, and the store creates an outlet for such produce. The shop also sells bulk spices and dry goods, houseplants, and refillable housewares. A smoothie

bar serves the Raw Market brand of cold-pressed juices. rawmarket.co

Tommy’s Burger Stop

Twice the winner in the Burger Joint category of the Best of Alaska Business awards, Tommy’s Burger Stop expanded with a second location. The new shop near Dimond and Arctic Boulevards holds more seating than the original storefront in Spenard. Owner Tommy Persons says customers have asked for more room to sit down and enjoy his Cajun-inspired fare, Philly cheesesteaks, and Double Musky pie using a dessert recipe from the Girdwood restaurant that his parents own. tommysburgerstop.com

Burlington Stores

National off-price retailer Burlington relocated its South Anchorage store eastward along Dimond Boulevard. The location on West Dimond closed, and the store moved into the former Bed Bath & Beyond at the Dimond Crossing shopping center, across from the Dimond Center mall. The company operates a second store at Tikahtnu Commons in Northeast Anchorage. With more than 1,000 locations nationwide, Burlington sells apparel for women, men, and kids; footwear; infant supplies; toys; and pet supplies. stores.burlington.com/ak/anchorage

Hilcorp

The largest oil and gas operator in Cook Inlet and Prudhoe Bay is entrenching its position. Hilcorp announced in June that it would take over two North Slope units developed by Italian energy company Eni. The Oooguruk and Nikaitchuq fields, located in near offshore waters northwest of Prudhoe Bay, produce about 22,000 barrels of crude oil per day. The transaction price was not disclosed, and the deal is pending

regulatory approval. Hilcorp also secured a major piece of Cook Inlet hardware by purchasing the Spartan 151 jack-up rig for nearly $40 million. Previously owned by Enterprise Offshore Drilling, the rig was brought to Alaska in 2011 by Escopeta Oil to explore in the Kitchen Lights Unit. Hilcorp hired the rig in 2019 for midchannel exploration before it was sent to Seward for storage.

hilcorp.com

Verizon

Verizon recently expanded its network across Alaska, adding spectrum at eighty-nine cell sites to increase network capacity by approximately 30 percent. This additional spectrum provides greater bandwidth and higher data speeds for Verizon customers in Homer, Anchor Point, Kenai, Soldotna, Seward, Meadow Lakes, Denali Park, Two Rivers, and Pleasant Valley. Part of Verizon’s massive, multi-year, nationwide network transformation, this expansion comes as Verizon celebrates ten years in Alaska, serving 87 percent of the state’s population. Verizon will be able to expand the footprint for its LTE Verizon Home Internet broadband service.

verizon.com

RIM Architects

RIM Architects, founded in Anchorage nearly forty years ago, is rebranding as GHD Design, a business line of Australia-based global professional services company GHD, which bought RIM Architects. The acquisition adds RIM’s 75 employees at offices in Alaska, California, Hawai’i, Guam, Idaho, Florida, and Washington, DC, to a staff of 11,000 around the world. GHD and RIM have partnered on projects before, and the company looks forward to adding RIM’s federal contracting experience. RIM spread its ownership among a dozen senior personnel, whereas GHD has a partial employee-ownership structure. rimarchitects.com | ghd.com

RIGHT MOVES

Golden Valley Electric Association

· The board of Golden Valley Electric Association (GVEA) chose Travis Million as its CEO, succeeding John Burns, who retired in June. Since last September, Million had been working as GVEA’s chief operating officer. Prior to that, he was CEO at Copper Valley Electric Association, an electric utility that serves roughly 2,700 customers (covering 8,000 people) from Valdez to Glennallen.

Alaska Communications

· Jessica Linquist joins the team at Alaska Communications as Vice President of Human Resources, overseeing compensation and benefits, workforce development, employee engagement, performance management, and labor strategy for the Anchoragebased telecommunications provider. Linquist previously served in human resources roles at Hilcorp, BP Alaska, and Alyeska Pipeline Service Company. She has a bachelor’s degree from Western Washington University and a master’s degree in public administration from UAA.

UAF

· After serving for three years in an interim capacity, Diane O’Brien was named Director of the UAF Institute of Arctic Biology. O’Brien, a professor of biology and wildlife, came to UAF in 2004 and served as deputy director of the UAF Center for

Alaska Native Health Research. She was recently elected to the National Academy of Sciences. O’Brien earned a bachelor’s degree in biology from Amherst College and a doctorate in ecology and evolutionary biology from Princeton University. Her research investigates nutritional questions in public health and ecology using naturally occurring stable isotopes.

Alaska Pacific University

· Alaska Pacific University (APU) hired Allison Knox as Chief Advancement Officer, responsible for fundraising strategy, alumni relations, sponsored programs, and major gifts. Knox has worked in the Alaska Native healthcare system and for Native corporations and nonprofits. Her background is mainly in public relations and strategic communications, such as serving as a press liaison at the 2002 Winter Olympics in Utah and handling media relations for the 2003 World Mountain Running Trophy in Girdwood. Knox earned an MBA with an emphasis in health services administration from APU in 2020, and she started working at APU on January 2, 2024.

Atwood Foundation

· The new Executive Director of the Atwood Foundation succeeds her father in the role.

The board of the Anchoragebased philanthropic fund supporting journalism, arts, and culture chose Sara Perman to lead the organization now that her father, Ira Perman, is retired. Sara Perman has been an integral part of the Atwood Foundation

for the past five years, and the board selected her as the best individual through a succession planning process. She brings eight years of experience in public affairs, most recently as the state government relations manager for UA. She is a lifelong Anchorage resident with an extensive background in Alaska Dance Theater and playing first-chair violin in the Alaska Youth Orchestra. She received two Alaska Press Club awards for her radio storytelling.

United Way

· United Way of Anchorage’s board of directors appointed Eric Utraq Billingsley as the organization’s next President and CEO.

Billingsley worked for NANA Regional Corporation for fifteen years, most recently as president of NANA Management Services.

Billingsley previously served as United Way's employee campaign coordinator. A graduate of Chugiak High School and UAA, Billingsley grew up in Anchorage while his father served in the US Air Force. He takes over for Mike Abbott, who led the organization during the interim since Clark Halvorson stepped down as CEO last December.

NMS

· A veteran of the US Army and Anchorage Police Department, Myron Fanning was promoted to Vice President of Operations, Security at NMS. As the largest and most experienced security provider to Alaska’s oil and gas industry, NMS has benefited from Fanning’s leadership with the company. He is credited with expanding NMS’ footprint into the

RIGHT MOVES IS BROUGHT TO YOU B Y NORTHERN AIR CARGO
Million
Linquist
Knox
O'Brien
Perman
Billingsley
Fanning

Lower 48 and initiating the first-ever security internship program for shareholders of parent company NANA Regional Corporation. Prior to joining NMS, Fanning served nearly a decade as a US Army infantry officer. He spent twenty-three years in law enforcement, earning the Medal of Valor twice and rising to the rank of Deputy Chief of Police.

Calista Brice

· Calista Brice, a holding line for construction and environmental subsidiaries of Bethel-based Calista regional corporation, hired Mac Stevens as Director of Safety and Risk at its Anchorage office. In this role, Stevens supports the safety and risk programs across nineteen Calista Brice companies and spearheads new programs to engage employees in Calista Brice’s safety-focused culture. Originally from Talkeetna, Stevens earned a degree in occupational safety and health from UAA. He began his career on the North Slope and previously managed health, safety, and environment for ASRC Construction.

UIC Construction

Reorganization of two subsidiaries of UIC Commercial Services—a holding line for businesses owned by Ukpeaġvik Iñupiat Corporation (UIC), the village corporation for Utqiaġvik—into the Alaska Civil Construction division means new leadership titles.

· To lead the division, Kodi Long is promoted to Vice President of Alaska Civil Construction and continues as General Manager of component company Qayaq Construction. Since 2020, his leadership

efforts have resulted in building a highly skilled and dedicated Qayaq team.

· Bill Hoople, CEO of the division’s other core component, HC Contractors, is promoted to Chairman of HC Construction Holdings. Hoople founded HC Contractors in North Pole in 1993, growing it to $87 million in revenue. UIC acquired HC Contractors in 2022.

PND Engineers

· To lead its Juneau office, PND Engineers promoted Sean Sjostedt to Vice President. In that role, he assumes office coordinator responsibilities for the firm’s Southeast Alaska operations. Sjostedt takes over for PND Vice President Dick Somerville, who has worked the firm for more than thirty-six years and has managed the Juneau location since 1996; Somerville continues to work at PND to support Sjostedt while Somerville transitions into retirement. Sjostedt, who grew up in Cordova, is approaching his 13th anniversary at PND, all from the Juneau office.

Bettisworth North

· David Popiel joined the Anchorage office of Bettisworth North Architects and Planners as a Senior Architect. During twelve years of practice in Alaska, Popiel has been involved in projects for the Alaska State Library, Archives & Museum in Juneau; Mt. Edgecumbe High School Aquatic Center in Sitka; Kelsey Dock Interpretive Center in Valdez; and Alutiiq Museum in Kodiak. Popiel earned a bachelor’s degree in architecture from Washington University in St. Louis and a master’s degree in architecture from the University

of Colorado. As a board member of the nonprofit Alaska Huts Association, Popiel is volunteering to develop a ski hut at Spencer Glacier on the Kenai Peninsula.

Alaska Public Media

· Tara Riemer joined Alaska Public Media as Senior Director of Finance. In this newly established position, Riemer serves as the financial liaison with the board of directors and reports to the chief operations officer and vice president of administration on budget management, grants, cost-benefit analysis, and financial forecasting. Riemer holds a bachelor’s degree in biomedical and electrical engineering from Johns Hopkins University and a PhD in biomedical engineering from Johns Hopkins School of Medicine. Prior to moving to Alaska in 2002, she worked as a strategic management consultant for McKinsey and Company in Boston and Auckland, New Zealand. Riemer joined the Alaska SeaLife Center in 2003 and served as its president and CEO starting in 2012.

IAC

· The board of the Interior Alaska Center for Non-Violent Living (IAC) selected Brian Taylor as Executive Director. In that role, he carries out the organization’s mission of domestic violence intervention and prevention. Taylor was previously executive director at Fairbanks Youth Advocates. He has worked in mental health, chemical dependency counseling, education, electrical, business management, accounting, administration, and as a hospice chaplain. He takes over for Interim Executive Director Kara Carlson, who returns to her previous role as Deputy Director.

Sjostedt
Hoople
Riemer
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Stevens
Long
Popiel

ALASKA TRENDS

The Alaska Small Business Development Center (SBDC) and Alaska Business share a similar mission. SBDC helps small businesses grow by offering informational resources online and in person. This magazine likewise aspires to strengthen and diversify the state’s commercial sector, and our methods sometimes overlap with SBDC’s. For example, the center’s website aksbdc.org highlights success stories from businesses it assisted, and readers can find role models within these pages, particularly in Amy Newman’s article “Honored Owners.”

Both SBDC and Alaska Business collect and publish data about small businesses. For instance, the July 2024 edition of Alaska Trends reported that the US Small Business Administration considers 99.1 percent of Alaska businesses—i.e., all but about 650 employers—to be "small," defined as having up to 499 workers on staff.

In its 2023 annual report, SBDC counts about 76,500 small businesses (as of 2020), and more than half are solo owneroperators. Demographically speaking, non-white owners are underrepresented, yet clients seeking SBDC assistance are more diverse, with a higher percentage of military veterans, women, and non-white entrepreneurs.

Through its 6 offices, SBDC supported 165 new businesses established last year, and clients raised more than $37 million in new funding. One avenue is the Phase 0 grant, awarded through UAA for small business innovation research or technology transfer. Furthermore, the Alaska SBDC is the only center of its kind to lead a State Small Business Credit Initiative program. The US Department of the Treasury allocated $60 million to Alaska over 10 years, to be matched by private financing.

This edition of Alaska Trends consults the SBDC annual report for more facts about the small business landscape and the work that its six regional offices have done.

SOURCE: 2023 SBDC Annual Report; aksbdc.org/wp-content/uploads/2024/06/2023-Alaska-SBDC-Annual-Report.pdf

100 Communities are served by SBDC offices.

1,750 Businesses are served by SBDC offices.

Per Capita Density

The per capita density of small businesses is highest in areas with fluctuating seasonal populations.

Finding Clients/Customers

Workforce - Finding Qualified Employees

Increase in Cost of Goods/Inflation

Operating Costs

Finding Funding

Other

Shipping Costs

Tax/Regulations

Marketing to Customers (Out of State)

Marketing to Customers (In State)

Poor Local/State Economy

Lack of Experience/Mentors

Supply Chain Issues

Political Uncertainty

Retaining Customers/Clients

Lack of Childcare (For Owner)

Lack of Childcare (For Employees)

Above Average

Biggest Challenges Businesses Currently Face

36% of Alaska's small businesses are women-owned, surpassing the national average.

2nd Largest

Alaska has the second-largest share of American Indian and Alaska Native-owned businesses in the nation.

TREND Phase 0 grants

Applications are evaluated on several parameters: scalability, achievability, technical merit, and innovation. This is the most geographically diverse set of Phase 0 winners that TREND has seen throughout the program's history.

The program's success rate is 30%, twice the national average.

 $10K Hexegy, Inc. (Auke Bay)

 $10K Integrated Robotics Imaging Systems (Kenai)

 $9K Alaska Adaptable Housing (Fairbanks)

 $10K Copper River Fish Market (Cordova)

 $10K GRAYSTAR Pacific (Anchorage)

$37M Total Capital Infusion

Total capital infusion includes stock/ venture, grants, equity, SBA loans and non-SBA loans.

 $7M Anchorage  $5M Fairbanks

 $2M Juneau  $17M Kenai Peninsula

 $1M Matanuska-Susitna Borough

 $5M Rural

Kenai Peninsula Rural Juneau

$49K Total

Anchorage Fairbanks

Accommodation & Food Service

All SBDC offices listed Accommodations & Food Service as one of the top 5 industries advised.

$120M Impact

Alaska is allocated to receive $60M over 10 years. Private funds match allocated dollars, creating a $120M impact on the Alaska economy.

Small & Mighty

Small businesses with fewer than 500 employees employed more than 134K Alaskans total, greater than half of the state's private sector workforce.

What book is currently on your nightstand?

Possible: How We Survive (and Thrive) in an Age of Conflict by William Ury.

What charity or cause are you passionate about?

Big Brothers Big Sisters.

What’s the first thing you do when you get home after a long day at work?

I jump on my Peloton. I love my Peloton bike. It’s easy, it’s fast, it’s a great workout.

What vacation spot is on your bucket list?

Probably South Africa. My significant other is from South Africa. I think it’s a beautiful place, and the history behind it is really intriguing.

If you could domesticate a wild animal, what animal would it be?

I am Kaagwaantaan; in our Tlingit culture I’m an Eagle/Wolf. So my first would be a wolf; my second would be an eagle.

by Kaley McGoey

Photos

OFF THE CUFF

Russell Dick

“We’ve always been doing cool things,” says Russell Dick of the seeming overnight success of Huna Totem Corporation. Converting a defunct fish cannery in Hoonah into the Icy Strait Point tourist magnet has, with other investments, propelled the corporation to the top ranks of Alaska companies.

While the growth happened under Dick as president and CEO, he reserves most credit for his staff: “We’ve got people that are excited about what they do and the impact that tourism can have in the state of Alaska, in our region, and in our community.”

Dick grew up around Huna Totem; his father was the corporation’s longest-serving chairman of the board. To serve his community, Dick studied industrial engineering at Stanford University—“It’s about managing organizations, managing people, setting up processes, how to make things more efficient. It takes a lot of the people side of business, integrating with the technical side of business,” he explains—and then returned to Palo Alto for a master’s degree in management.

Guiding that effort was a value Dick’s parents instilled in him: “If you always have an opportunity to build something and create value for other people, there’s no better way to live than that.”

Alaska Business: What do you do in your free time?

Russell Dick: Anything sports related. I like to get outdoors. I love hanging out with my dog and doing massive hikes.

AB: Is there a skill you’re currently developing or have always wanted to learn?

Dick: I would love to learn how to play the guitar. I think it would be cool to sit on the couch, play some songs, relax and unwind, and play for friends.

AB: What’s the most daring thing you’ve ever done?

Dick: I did a solo muskox hunt on Nunivak Island… I had to do all the work; I got it processed and taken care of and was ready to go when [the transporter] came.

AB: What are you superstitious about?

Dick: What do you call it? Splitting the pole, where you’re with a friend or loved one walking down the street, you never split apart to walk around an obstacle. Always walk around it together.

AB: What’s your favorite local restaurant?

Dick: In Juneau, SALT… The other is The Fisherman’s Daughter in Hoonah.

AB: Dead or alive, who would you like to see perform live in concert?

Dick: Eminem.

AB: What’s your greatest extravagance?

Dick: Wine. I love my wine. I spare no expense when it comes to wine. I’m a big Pinot noir person.

AB: What’s your best attribute and worst attribute?

Dick: My best attribute is [that there is] nothing too difficult, too challenging, or something I’m not willing to take on when it comes to positively impacting my community or the people I love… Uh, I react pretty quickly and then overthink some things… It’s not a great attribute to have in the work we do.

ADVERTISERS INDEX

Airport Equipment Rentals 115 airportequipmentrentals.com

Alasconnect 63 alasconnect.com

Alaska Air Cargo - Alaska Airlines 101 alaskacargo.com

Alaska Dreams Inc 13 alaskadreamsinc.com

Alaska International Business Center 83 akibc.org

Alaska Pacific University 19 alaskapacific.edu

Alaska Travel Industry Association 29 alaskatia.org

Altman, Rogers & Co. 19 altrogco.com

Anchorage Chrysler Dodge 17 accak.com

Anchorage Convention Centers 27 anchorageconventioncenters.com

Anchorage Sand & Gravel 89 anchsand.com

Arctic Slope Regional Corporation 69 asrc.com

ASTAC - Arctic Slope Telephone Assoc 39 astac.net

Calista Corporation 79 calistacorp.com

Chugach Alaska Corporation 73 chugach.com

City and Borough of Wrangell 28 wrangell.com

Color Art Printing, Inc. 51 colorartprinting.com

ConocoPhillips Alaska 37 alaska.conocophillips.com

Conrad-Houston Insurance Agency 28 chialaska.com

Construction Machinery Industrial 2 cmiak.com

Cook Inlet Tug & Barge Inc ............. 39 cookinlettug.com

Craig Taylor Equipment 107 craigtaylorequipment.com

Davis Wright Tremaine Llp 9 dwt.com

Denali Commercial 105 denalicommercial.com

Donlin Gold 74 donlingold.com

Dorsey & Whitney LLP 68 dorsey.com/locations/anchorage

Doyon, Limited 59 doyon.com

Equipment Source, Inc 33 esialaska.com

First National Bank Alaska .................5 fnbalaska.com

Fountainhead Development 25 fountainheadhotels.com

Gana-A' Yoo Ltd 53 ganaayoo.com

GCI 65, 91 gci.com

JEFFCO Inc. 12 jeffcogrounds.com

Kinross Alaska 93 kinross.com/home/default.aspx

Koniag Inc 59 koniag.com

Landye Bennett Blumstein LLP 46 lbblawyers.com

LONG Building Technologies 55 long.com

Lynden 116 lynden.com

Material Flow & Conveyor Systems, Inc. 87 materialflow.com

Matson Inc. 49 matson.com

MICROCOM 3 microcom.store

Nana Regional Corp 41 nana.com

Nenana Heating Services, Inc 71 nenanaheatingservicesinc.com

Northern Air Cargo 108, 109 nac.aero

Northrim Bank 15 northrim.com

Oxford Assaying & Refining Inc..... 77 oxfordmetals.com

Parker, Smith & Feek 97 psfinc.com

PeopleAK 23 peopleak.com

Personnel Plus Employment Agency 81 perplus.com

Price Gregory International Inc 11 pricegregory.com

Quintillion 57 quintillionglobal.com

Resolve Marine 47 resolvemarine.com

Schwabe, Williamson & Wyatt, P.C. 43 schwabe.com/locations-anchorage-alaska

T. Rowe Price 7 alaska529plan.com

Toast of the Town 67 toastofthetownak.com

Tongass Federal Credit Union 71 tongassfcu.com

TOTE Maritime Alaska LLC 85 totemaritime.com

Udelhoven Oilfield System Services, Inc 11 udelhoven.com

Ukpeagvik Inupiat Corporation................................. 35, 61 uicalaska.com

Umialik Insurance Company 88 umialik.com

United Way of Anchorage 21 liveunitedanc.org

University of Alaska Office of Public Affairs 82 alaska.edu

yukoneq.com

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