Alaska Business March 2021

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OIL & GAS DISTRIBUTION | CONSTRUCTION DIRECTORY | RARE EARTH ELEMENTS MARCH 2021

CHRIS DEVINE

President & CEO Craig Taylor Equipment

CHRIS DEVINE

President & CEO Craig Taylor Equipment

CHRIS DEVINE

President & CEO Craig Taylor Equipment


Eric Cole Sales Rep. Juneau Branch

Alvin Ott Product Support Fairbanks Branch

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CONTENTS MARCH 2021 | VOLUME 37 | NUMBER 3 | AKBIZMAG.COM

FE AT UR E S 10 INSURANCE

78 ENVIRONMENTAL

Insuring Peace of Mind Surety bonds: Sleep-at-night coverage for when the job must get done By Tracy Barbour

Study, Plan, Build

Executing quality projects while mitigating environmental effects By Julie Stricker

16 OIL & GAS

How to Deliver Fuel Anywhere The complex distribution of critical, refined oil products By Danny Kreilkamp

22 REAL ESTATE

The Real Estate Reality Despite hiccups brokers expect an economic rebound later in 2021 By Bruno J. Navarro

90 ALASKA NATIVE Pushing Boundaries

ANCs find success investing beyond state borders

Ahtna Environmental, Inc.

Ucore Rare Metals Ahtna

By Vanessa Orr

84 RESOURCE DEVELOPMENT

Reaching for Rare Earth

CIRI

Alaska’s critical minerals—including rare earth elements—gain national attention By Vanessa Orr

QUICK READS 8 FROM THE EDITOR

98 INSIDE ALASKA BUSINESS

102 ALASKA TRENDS

98 ECONOMIC INDICATORS

100 RIGHT MOVES

104 OFF THE CUFF

4 | March 2021

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We’ve always believed in Alaska. And for nearly a century, First National has helped Alaskans build strong, local businesses and communities. Together, we can build a brighter future. Like you, we’re here for the long haul.


CONTENTS MARCH 2021 | VOLUME 37 | NUMBER 3 | AKBIZMAG.COM

S P EC I A L S EC T I O N : CO N S T R U C T I O N Kerry TAsker

48 GETTING OFF THE GROUND CARES Act, AIP funding multiple airport construction projects By Julie Stricker

54 ATTRACTIONS GAINING TRACTION

Alaska’s path to better (and longer) visitor experiences By Isaac Stone Simonelli

62 CONSTRUCTION DIRECTORY 40 BUILDING COMMON GROUND

Contractors, community help bring public projects to fruition By Vanessa Orr

32 HARDWARE HANGS IN

Construction retailers keep optimism in stock Davis Constructors & Engineers

By Tasha Anderson

ABOUT THE COVER Heading into the pandemic, Chris Devine and the Craig Taylor Equipment team were expecting the worst. Brick and mortar retail is historically one of the harderhit sectors during economic recession, and a 2020 study from Yelp estimates that nearly 100,000 businesses closed their doors permanently between May and August of 2020 alone. But this trend didn’t necessarily translate to the retail construction space—and in some cases, demand went up. “What seems to be happening is there’s a lot of money floating around, and folks are looking to spend it,” says the Craig Taylor Equipment President and CEO. And spending it they are. To learn how, dig in to this month’s cover story: “Hardware Hangs In.” Cover Photo by Kerry Tasker

Alaska Business (ISSN 8756-4092) is published monthly by Alaska Business Publishing Co., Inc. 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577; Telephone: (907) 276-4373. © 2021 Alaska Business Publishing Co. All rights reserved. No part of this publication May be reproduced without written permission from the publisher. Alaska Business accepts no responsibility for unsolicited materials; they will not be returned unless accompanied by a stamped, self addressed envelope. One-year subscription is $39.95 and includes twelve issues (print + digital) and the annual Power List. Single issues of the Power List are $15 each. Single issues of Alaska Business are $4.99 each; $5.99 for the July & October issues. Send subscription orders and address changes to circulation@akbizmag.com. To order back issues ($9.99 each including postage) visit simplecirc.com/back_issues/alaska-business.

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FROM THE EDITOR

Alaska’s Essential Construction Industry

VOLUME 37, #3 EDITORIAL STAFF Managing Editor Kathryn Mackenzie 257-2907 editor@akbizmag.com

Associate/Web Editor Tasha Anderson 257-2902 tanderson@akbizmag.com

Digital and Social Media Specialist Arie Henry 257-2910 ahenry@akbizmag.com

T

he construction industry is responsible for about 9 percent of all Alaska jobs, and construction industry-related activity accounted for $3.4 billion in labor income in 2019, representing 10 percent of the state’s total labor income ($32.7 billion). The industry has continued to inject billions of dollars into the Alaska economy—even in the face of the devastating effects of the pandemic—as the state perseveres, continuing to build, expand, and upgrade. In 2021, the industry is expected to spend $4.3 billion, split pretty evenly between the private and public sectors, according to AGC of Alaska’s 2021 Construction Spending Forecast. There are so many exciting projects on the horizon that there was no shortage of ideas when the editorial team was discussing what to cover in this year’s construction special section. What kept coming up over and over was how construction in some of the state’s most hard hit industries has fared over the past year—retail, tourism, and community-based projects, to be specific. We wanted to know if the pandemic put planned projects on pause or if, somehow, construction on a new hotel in Anchorage or trail and visitor center upgrades were still going forward. What we found is that the industry has persevered. Every person who lives in Alaska knows all too well how hard the visitor industry was hit in 2020, and though recovery from such unbelievable drops in visitor numbers will be as slow-moving as the glaciers left unvisited last year, investment in tourism-related construction continues in 2021 with the projects like the Aloft Hotel in Anchorage and Hilton Home 2 in Wasilla. And I don’t want to give too much away because we’re featuring a story on this subject in April, but suffice to say (for now) that work at the state’s ports, harbors, docks, and related facilities hasn’t come to a standstill either, not even close. Particularly interesting is what’s going on with construction and retail. Since many of us officetypes have been working at home for the past year, we’ve had more than enough time to look around and notice all the little things we’ve been “meaning to get to.” And, with restaurants and bars shut down on and off throughout the year, some of the discretionary money we used to spend dining out is being redirected toward finally getting around to home projects. The home project, DIY trend has translated into a much-needed bump in demand for some retailers. “The demand has been through the roof: our biggest problem this year in the retail side was that we are completely out of inventory, and John Deere can't provide it fast enough,” says Craig Taylor Equipment President and CEO Chris Devine in this month’s cover story, “Hardware Hangs In.” Devine’s sentiment is backed up by numbers: April 2020 broke a record in small tractor sales, the highest volume compact tractor sales John Deere has ever seen in a single month. Of course, this represents one piece of the much larger, family-size pie, and not every sector of the industry is seeing positive growth, but what is happening industry-wide is a cohesive push to make sure that the industry is seen as what it is: essential.

Staff Writer Danny Kreilkamp danny@akbizmag.com

Art Director Monica Sterchi-Lowman 257-2916 design@akbizmag.com

Art Production Linda Shogren 257-2912 production@akbizmag.com

Photo Contributor Kerry Tasker

BUSINESS STAFF President Billie Martin VP & General Manager Jason Martin 257-2905 jason@akbizmag.com

VP Sales & Marketing Charles Bell 257-2909 cbell@akbizmag.com

Senior Account Manager Janis J. Plume 257-2917 janis@akbizmag.com

Advertising Account Manager Christine Merki 257-2911 cmerki@akbizmag.com

Accounting Manager Ana Lavagnino 257-2901 accounts@akbizmag.com

Customer Service Representative Emily Olsen 257-2914 emily@akbizmag.com

CONTACT

Press releases: press@akbizmag.com

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Kathryn Mackenzie Managing Editor, Alaska Business

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INSUR ANCE

Insuring Peace of Mind Surety bonds: Sleep-at-night coverage for when the job must get done By Tracy Barbour

S

urety bonds are an essential but often misunderstood insurance product used by companies that serve both the public and private sectors. Surety bonds are a distinct type of insurance designed to ensure a project is completed based on the terms of the contract. More specifically, a surety bond is a three-party agreement in which a surety (bonding company) promises to pay an obligee (the project owner or whoever is requiring the bond) if a principal (the contractor or whoever needs the bond) does not satisfy their contractual obligation.

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Essentially, bonding companies vouch for principals, promising to fulfill their commitment if they go out of business, declare bankruptcy, or fail to deliver for any other reason. “When you do a bond, you’re putting up a certain amount of your assets to say you’re going to be able to finish the job,” says Dave Adams, partner and senior account executive at RISQ Consulting. “If you’re not able to do it, the bonding company will come in and take over.” So, for example, if a contractor has bonded a construction project in Midtown Anchorage and can only

complete half the job, the bonding company will step in and finalize the project. Then the company will go after the contractor and liquidate enough of their assets to finish the job. Of course, the hope is that this type of scenario will not ensue because bonding companies prefer not to take over jobs. “The underwriters at the bonding company underwrite the client’s financial status, so they have a pretty good understanding of the principal’s financial position,” Adams explains. “And if they do not meet the requirements, they will not bond them.”

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Similarly, Guy Armfield, principal at Parker, Smith & Feek, says bonding companies do not expect to have a loss—unlike with regular insurance. He likens a surety bond to “sleep-at-night coverage” that provides a financial hedge for the project owner. “If I am the owner of a project and I absolutely must know that the project will be finished, I will require a surety bond,” he explains.

Dave Adams RISQ Consulting

But if a principal fails to satisfy a contract, then the surety company is forced to take action—and the remedy is more costly. The surety will have to spend 30 to 50 percent more to complete the project. “Nobody wins when there’s a surety claim,” Armfield says.

The Role of Surety Bonds There are two basic types of surety bonds: contract and commercial. Contract bonds—commonly referred to as construction bonds—include bid, performance, and payment bonds. A contract bid bond ensures a contractor will adhere to the agreed-upon price. A performance bond guarantees that the contractor is qualified to perform the contract. And a payment bond promises the contractor will pay any subcontractors, laborers, and suppliers that work on the project. Commercial bonds, which are often used to support certain laws, include license and permit, fidelity, fiduciary, public official, and court bonds. These types of bonds are typically obtained by companies and individuals www.akbizmag.com

who require bonding due to legal issues, government regulations or requirements that may take the place of insurance, or letters of credit. Surety bonds play a unique role in business activities, Armfield says. Performance and payment bonds are project-specific and are generally required on construction projects where the owner of the project is using public funds to pay for the work. License and permit bonds relate to compliance with Alaska state or municipal statutes and are required by many types of businesses other than just construction contractors. “Both of these types of bonds are intended to protect the interests of the general public by creating a financial incentive for businesses to comply with the laws governing their activities and/or perform the obligations of their contracts,” says Armfield, who specializes in surety bonds for general and specialty contractors and Alaska Native corporations.

Who Typically Requires a Bond The construction industry is one of the largest users of surety bonds, according to Armfield. And there are a few reasons why: Due to the Miller Act, all federally funded construction projects require the prime contractor to provide performance and payment bonds equal to 100 percent of their contract price. State-enacted “Little Miller Acts” call for similar requirements on all state-funded construction work. Additionally, the practice of prime contractors requiring subcontractors to provide bonds is commonplace in construction. “Construction certainly makes up the lion’s share of all surety bond company premiums, with the number ranging from 60 to 70 percent, depending upon the year,” Armfield says. “And the percentage is probably higher in Alaska.” He adds, “Outside of construction, most bonds are connected to any manner of business that may need permits, licenses, appeals of court decisions, and financial guarantees of private contracts such as leases.” Armfield says 99 percent of the companies that write surety bonds use a network of independent brokers to interface with the customer. Alaska has a bevy of surety brokers who are Alaska Business

adept at helping clients in this area, including firms like Parker, Smith & Feek, RISQ Consulting, Business Insurance Associates, and Liberty Mutual Surety. However, Armfield says, the number of surety companies actively seeking to provide bonds is limited. This is especially true in Alaska where there are only six to eight firms that write surety. A surety bond is such a specialized product, and there is, ultimately, a smaller pool of individuals who are qualified to be part of the underwriting. Plus, surety companies face the possibility of significant losses that can wipe out decades of profit. “Not everybody has the profits or the appetite for the risk,” he says. In addition, some surety bonds may be harder to secure than others. Armfield explains: “In the case of license and permit bonds, many surety companies view these as modest credit risks, and there are multiple facilities in place to secure these bonds with relative ease. Performance and payment bonds are a more complicated product to secure and lend themselves to long-term relationships between contractors and a surety.” In both cases, there is an underwriting process that takes place with various levels of financial and operational information being evaluated, in some cases, quite extensively. However, some businesses use surety bonds for reasons where the underwriting may not be as challenging, according to Chris Pobieglo, president of Anchoragebased Business Insurance Associates. For instance, almost anyone can obtain a notary bond; there is literally no underwriting that goes into that. Another example is an ERISA surety bond that requires posting a bond with a minimum payout equal to 10 percent of the assets in a company’s retirement plan. “The underwriting guidelines can vary greatly depending on the level of risk. Tax liability bonds, for example, are riskier,” Pobieglo says. “Often folks are already behind on their taxes when they are required to provide a tax liability bond.”

The Bonding Process Since a surety bond is essentially a type of credit extension, it involves March 2021 | 11


an underwriting process in which the principal is closely scrutinized. Underwriters typically evaluate the contractor in three main areas: capital (liquidity, debt, and profitability), capacity (experience and capabilities), and character (reputation). The financial documents required for bonding will vary somewhat between surety companies. And the process of securing a surety bond is shaped by a variety of factors. While there are an increasing number of alternative procurement methods, the most common is a standard design/bid/build project, according to Travis Remick, regional underwriting officer for Liberty Mutual Surety’s Western region. Using the design/bid/build project delivery method as an example, the project owner will work with an architect or engineer to develop the scope of the project and then release a set of plans to the public for bids. Contractors who want to pursue the project will need to submit a bid, which the project owner will require to be secured with a bid bond.

The contractor will then submit a bid request to the surety agent, who will forward it to the surety partner for review and underwriting. The complexity of the underwriting process varies depending on the size of the request and how usual or unusual the project is for the contractor, Remick says. For more routine job requests, the underwriter may simply want to confirm that the scope, size, and location are within the contractor's ongoing experience and capabilities. For a relatively small percentage of projects that involve large or unusual jobs, the bonding process can be much more involved. The surety company wants to understand as much as possible about the contractor and project, including the contractor's interest in the project, an overall project breakdown, key risks, primary mitigating factors, key cash flow considerations, who will manage the job and their experience with the scope, how much additional work the contractor wants to pursue if successful, and any unusual contract

provisions. The in-depth assessment is entirely appropriate, given the exposure the surety company assumes when issuing a bond. “No one is going to issue that type of guarantee without doing their due diligence,” Remick says. Once the bond bid is approved, the contractor submits a bid for the project, along with the bid security. After the project is awarded, the contractor is required to post a performance and payment bond. This effectively guarantees all the contractor's obligations under the contract for an amount equal to that of the contract. Typically the underwriter will review the bid results in between the bid date and project award. Then assuming everything is in order, performance and payment bonds will be approved and issued. So how long does all of that take? It depends. It can take less than a day for an account that has an established surety relationship and ongoing surety needs. “This assumes there is an active relationship and active communication between the

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“Construction certainly makes up the lion’s share of all surety bond company premiums, with the number ranging from 60 to 70 percent, depending upon the year. And the percentage is probably higher in Alaska.” Guy Armfield, Principal, Parker, Smith & Feek

contractor, the surety agent, and the surety company,” Remick says. The process can run significantly longer for a contractor who needs a bond for the first time or does not have an active surety relationship. To properly underwrite an account, the surety company requires a lot of documents and information. If the contractor has that information readily available, the process can take less than a week. But it could require more time if some of the information needs to be prepared, if there are

any underwriting challenges, or if the surety requires a meeting prior to providing a final determination. Ultimately, the relationship between the contractor, surety agent, and surety company will have a significant impact on the bonding process.

Compliance and Renewal In terms of compliance, responsibilities vary for the different parties involved with surety bonds. For instance, employers generally have to maintain workers’ compensation

Guy Armfield Parker, Smith & Feek

insurance for licensing purposes, but that’s a standard requirement that many companies must meet, Adams says. And sometimes on contractor’s bonds there are covenants that require the principal to keep certain financial ratios. “This is normally on a contractor’s payment or performance bond and usually relates to much larger bonds,” he says. In addition, Pobieglo says, brokers must be compliant with underwriting requests in terms of what each surety company requires. Likewise,

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“In Alaska, every contractor has to have a contractor’s license bond posted. Once the bond is renewed, then we send out a certificate to the state, showing that the contractor has had its bond renewed.” Chris Pobieglo, President, Business Insurance Associates

Chris Pobieglo Business Insurance Associates

the bonding company must comply with the requirements of the state. There are also areas where principals must comply. “The state requires a contractor’s license bond or a motor vehicle dealer bond,” he says. “If you are working in the right-of-way, you have to post a bond that ensures you will return the right-of-way to its previous condition.” To remain current, some principals may need to renew their surety bond. Licensing and permit bonds usually renew every year, Adams says. However, bid, payment, or performance bonds typically don’t renew. Instead, the bonding line might be renewed. The bonding line signifies that a principal—especially a contractor—is worth a certain amount of money to complete the job. Ultimately, the bonding line will depend on the principal’s financial position, current projects, and other criteria. “Bonding companies look at how much cash you have on hand, your business assets, personal assets, your percentage of work completed, your jobs you have pending,” Adams says. Some bonds automatically renew. They don’t have an expiration date printed on the bond form, so the bond is considered to be continuous, Pobieglo explains. In this case, the principal would simply need to pay the renewal premium. Or if the principal wanted to cancel, that could be arranged as well. “In Alaska, every contractor has to have a contractor’s license bond posted,” he says. “Once the bond is renewed, then we send out a certificate to the 14 | March 2021

state, showing that the contractor has had its bond renewed.” However, gaming license operators must be issued a new bond every year because the bond form has an expiration date. These types of bond renewals may require some level of underwriting where the client may have to submit financial statements and a new credit report. “We know ahead of time, as the broker, whether financial statements are required for the renewal,” Pobieglo says. “We notify our clients ninety days ahead of time that they have a renewal coming up.” Incidentally, construction bonds are written for a specific project and are usually not renewable.

The Pros of Using AlaskaFocused Brokers There are distinct benefits to working with an Alaska-based surety bond broker versus an outside firm that is unfamiliar with the state. Local brokers can provide insight into the logistical aspects that impact projects here that an Outside firm doesn’t have. A big consideration is the scheduling of work because the seasons are so different in Alaska. “We know a lot of material suppliers, subcontractors, so there are cases where we may be able to head off problems and help our clients because we have a lot of relationships here,” Pobieglo says. In addition, surety brokers can help their clients effectively comply with state-specific conditions. This can include any bonds required at the federal, state, and local levels.

Bonding specifications fluctuate from state to state, so it is critical for brokers to know the exact requirements their clients must satisfy, Pobieglo says. Adams agrees that an Alaskafocused surety broker has a valuable understanding of the environment and challenges that companies must navigate to complete projects. And this knowledge can be especially advantageous for construction contractors. He explains: “Part of it is knowing the contractors—and knowing the businesses here, what they build, and how they build… There are things that local surety companies are more cognizant of.” Armfield also feels that it’s essential for principals to establish a relationship with a professional surety broker and firm that understands their business. This lends an obvious advantage to a firm that actively serves the Alaska marketplace. And with the surety market firming, principals only get one chance to make a first impression. “Surety companies rely more than ever upon their broker to know the business climate and advise them of reputational and economic elements of a client and market,” he says. “The average underwriter who is not based in Alaska needs more help from their broker to understand the client and the marketplace in order to maximize surety credit. This is where a surety broker that has spent years cultivating knowledge and relationships in the Alaska market can be of a big advantage.”

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H R M AT T E R S

A Journey of Engagement Amidst Change By Paula Bradison

W

hile the recent worldwide pandemic plays out as a major economic influence, keeping our employees engaged and productive is more important and challenging than ever. According to a Gallup survey* published during the third quarter of 2020, 33 percent of US workers are currently working remotely, with approximately two-thirds of those individuals communicating a desire to continue working from home post-pandemic. Interestingly of those surveyed, more than half of US workers are not concerned about the exposure of COVID-19 at work. What does this mean to our Alaskan business leaders? Something entrepreneurs have known for years, change is here to stay. How we navigate change will influence workforce engagement. As leaders our best course now is to seek out opportunity to move from (disaster) response to active change management. First, understanding the effectiveness of change, regardless of solution is an excellent way to embark on meaningful and solution-orientated change. It is important to understand this should not be considered a destination but rather an adoption of a culture of change in itself. One of the best tools we have found is the Kotter model of change, including 8 steps.

THE 8-STEP PROCESS FOR LEADING CHANGE 1 Create a sense of urgency

5 Enable action by removing barriers

2 Build a guiding coalition

6 Generate short-term wins

3 Form a strategic vision and initiatives

7 Sustain acceleration

4 Enlist a volunteer army

8 Institute change

As leaders we can orchestrate change by providing our workforce clarity regarding the current environment, by engaging a core team to develop a plan to align strategic vision with new forming initiatives, and then deploy. Specific to the pandemic, this model may be used at the micro and macro level. By engaging our staff incrementally day to day while adjusting to a major event, individuals understand Paula Bradison is the President of Alaska their value and role in bringing their A game. In place of traditional accountability Executive Search matrices, we provide clear short-term wins both motivating to the employee and (AES) and Bradison focused on excellence. By developing an intentional change management plan, we engage our team with roles and responsibilities focused on the needs of the business. Either; out of health and safety or out of a desire for more flexible work-space transitions, decisions when, how, or if employees are allowed to work from home becomes a part of the organization’s overall change plan.

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Management Group (BMG). She dedicated her career to helping develop professionals in their chosen fields. For more information about AES please visit akexec.com, or for BMG please visit bmgak.com, or call 907-276-5707.


R

OIL & GAS

How to Deliver Fuel Anywhere The complex distribution of critical, refined oil products

Inlet Energy

By Danny Kreilkamp

efined petroleum doesn’t just heat our homes and fuel our cars: it ensures Alaska’s economy is a well-oiled machine. But how does a substance formed from the fossilized remains of plants and animals transform into useful, highly valuable products? And of equal importance, how does processed petroleum eventually reach its various end users? Following its 800-mile journey from the wells of Prudhoe Bay through the winding Trans Alaska Pipeline System, North Slope crude arrives at a tract of land covering 1,000 acres in the northeast corner of Prince William Sound: the Valdez Marine Terminal. From here, the raw product is loaded onto tankers and shipped off to a variety of locations. While it’s true that much of this oil is exported to destinations across the globe, a great deal of product actually remains in the state—contrary to a long and widely held misconception. There are currently three oil refineries operating in Alaska: Marathon Petroleum’s refinery on the Kenai Peninsula (formerly operated by

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Andeavor), and Petro Star’s facilities in North Pole and Valdez. These refineries take in the raw crude and, through the refining process, turn it into a variety of highly valuable products including gasoline, heating fuel, and jet fuel, among countless others. Following the refining process, these petroleum products undergo a multimodal transportation mix of truck, rail, marine, and (in some cases) air to reach their eventual end users in Alaska. The path refined petroleum products take next depends on a variety of factors, with particular regard to the location of the purchaser; there is no single route for heating oil, no single route for gasoline. There is, however, several highly specialized distribution companies working day and night to get these items into the hands and homes of Alaskans.

Diverse Means of Distribution According to Inlet Energy’s President Joel Lawrence, the fuel distribution segment of the oil and gas industry is a competitive one—one that his

company has been successful in for more than thirty years. Founded as Inlet Petroleum Company and now part of the NorthStar Energy family of companies that includes Delta Western, Alaska Petroleum Distributing, and Northern Oilfield Solutions, the revamped Inlet Energy has been providing Alaska with fuel and lubricant transportation services since 1986. The company is well versed in the many ways refined petroleum is being moved around the state. “Really, there’s a few ways [that fuel comes into the state]—there’s fuel coming in via barge that could be imported from refineries outside of Alaska. Or it could be lifted at the rack via Petro Star or Marathon,” says Lawrence. Inlet Energy’s sister companies, Northern Oilfield Solutions and Alaska Petroleum Distributing, which operate in Deadhorse and Fairbanks respectively, allow the company to cover a wide swath of the distribution market. “Inlet Energy distributes fuel along the road system while Delta Western

“Really, there’s a few ways [that fuel comes into the state]— there’s fuel coming in via barge that could be imported from the Pacific Northwest. Or it could be lifted at the rack via Petro Star or Marathon.” Joel Lawrence, President, Inlet Energy

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“There’s no refined lubricants produced in Alaska, it all comes up from the Lower 48 in multiple ways… It’s a different model, and I think the transportation part for Alaska is very unique compared to states in the Lower 48 other than Hawaii— the distribution model is very challenging.” Joel Lawrence, President, Inlet Energy

Distributing fuel to rural locations like this gas pump in Naknek takes a multi-modal, coordinated effort. Division of Community and Regional Affairs’ Community Photo Library

18 | March 2021

has the marine locations servicing Western and Southeast Alaska,” Lawrence explains. Since its inception, the company has grown into one of the largest fuel and lubricants distributors in the state, serving a myriad of industries in the process: “Our trucks are designed for retail fuel, off-road construction, aviation, marine, and home heating fuel,” Lawrence says. Inlet Energy’s other expertise lies in lubricants, of which Lawrence says the distribution network differs greatly from gasoline and other fuels. “There’s no refined lubricants produced in Alaska, it all comes up from the Lower 48 in multiple ways,” he says. “It’s a different model, and I think the transportation part for Alaska is very unique compared to states in the Lower 48 other than Hawaii—the distribution model is very challenging.” Expanding, Lawrence explains that receiving product from the Lower 48 generally takes seven to ten days, whereas it is typical for distributors in the Lower 48 to receive those same products in twenty-four to forty-eight hours. This leads to Alaska distributors to carry larger inventories and have larger lead times. “We typically have a month of supply on hand for our customer base just to make sure they don’t run out of product,” says Josh Parks, Inlet Energy’s director of marketing. “We also have a best-in-class facility where we have twenty tanks that can bring in bulk product,” he says, adding that the product comes in by iso-tanker 6,000 gallons at a time. Such a broad range of products requires an equally broad approach to meeting customer needs; a “typical day” does not exist for Inlet Energy’s team of drivers, but the one thing that remains consistent, Lawrence notes, is the team’s commitment to complete deliveries in Alaska safely each and every day. Apart from gasoline, there are a few key products that Alaska individuals and businesses can’t get enough of. Among them—heating oil and jet fuel. Such is the importance of heating fuel that certain executive-branch state agencies have mandatory obligations to keep

the product on hand, as per the Shared Services of Alaska. And despite the pandemic decimating gasoline demand worldwide, jet fuel is still one product that the 49th State can’t manufacture enough of. Crowley began serving Alaska’s fuel needs in 1953. Since then, the company has grown to service more than 280 communities throughout the state. Remote communities across Western Alaska are particularly dependent on heating oil, and a Crowley brochure, “Getting Fuel From There to Here,” breaks down the way in which the company accomplishes this need. After purchasing fuel from the refineries, Crowley transports fuel to Western Alaska via large, ocean-going barges. Then, the fuel is transferred onto small coastal barges for final delivery to regional terminals or fuel hubs. Fuel is then placed into a tank farm and stored at regional terminals or fuel hubs. From there, small, shallow draft tugboats and barges transport the fuel to community tanks and tank farms. The brochure points out that the majority of villages do not have docks, so fuel barges must be grounded on the beach to make deliveries. Finally, local tank farms/ terminals can sell the product to their customers.

Price Considerations So how exactly are fuel prices determined in Alaska? And what factors go into that equation? The short answer: a lot. While the details are often kept proprietary, fuel prices in Alaska are determined by a mix of supply-and demand-based market conditions, in addition to a few other key considerations. The same Crowley document also offers insight into the associated costs of producing heating oil—and fuel costs in general. One component of price is a company’s overhead cost, which includes indirect costs such as utilities, a company’s payroll, and fees. “Each community has a different fee structure that impacts the price of heating oil,” the graphic states. Distribution costs vary depending on how far a community is located from

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The Atmautluak tank farm is centrally located near the town's power plant and contains nine vertical and seven horizontal fuel tanks. Storage facilities featuring massive storage tanks.

Division of Community and Regional Affairs’ Community Photo Library

Inlet Energy

a refinery. “Shallow water locations of Western Alaska require transportation with specifically designed shallowdraft vessels,” Crowley’s infographic continues. “Insufficient or non-existent docking and off-loading facilities increase time, safety, and environmental risks, which increase costs as well.”

And of course, there are production costs. North Slope crude is one of the most expensive varieties of crude oil on the market, and as prices in crude rise and fall, so to do the associated costs of producing goods such as heating oil, impacting the final price when the fuel is distributed.

An analysis published in 2010 by UAA’s Institute of Social and Economic Research examined some of the conditions relevant to rural communities that are not accessible by road. Titled “Components of Alaska Fuel Costs: An Analysis of the Market Factors

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Dutch Harbor serves as a fuel hub for the Aleutian Islands and Alaska Peninsula submarkets, accommodating distribution of fuel and lubricants to homes and businesses in Unalaska and beyond. Vipersniper | iStock

and Characteristics that Influence Rural Fuel Prices,” the report goes on to divide the communities into two regions: Western Alaska, comprised of North Aleutian villages beginning with Nelson Lagoon all the way up to Kotzebue Sound, and Ice-Free Coastal Alaska, the region spanning Southeast Alaska, Prince William Sound, the Kodiak area, the Alaska Peninsula, and the Aleutian Islands. The analysis found that fuel in the Western Alaska region was typically more expensive than fuel in the IceFree Coastal Alaska region, though fuel costs in Ice-Free Coastal Alaska were still higher than those on the Alaska road system. The report also notes that while it is possible to fly fuel to most locations in Alaska, flying is only cost effective to communities located within a 20 | March 2021

few hundred miles of refineries in Kenai or Fairbanks. Even then, the quantities would need to be under 5,000 gallons. This is a major reason why marine transport remains the most cost-effective way to deliver fuel to most communities in Western Alaska.

A Word on Renewables Lawrence and other fuel distributors are cognizant of the rise of renewable generation to offset fuel-based heating. “You’re starting to see some hydropower and LNG distributed for home heat,” he says. “But I think with distributors like us, we’re looking at additional options, and so maybe that means having more control over supply meaning better storage, more storage for fuel to be brought on, more gallons

so you can barge fuel and have a more competitive resource.” Indeed, according to the US Department of Energy’s Alternative Fuels Data Center, transportation fuel consumption in Alaska peaked in the mid ‘90s, while experiencing a gradual decline ever since. Distribution companies are well aware of the growing demand for renewable energy production. “You’re starting to see electrification offset some of the fuel footprint—more so in the Lower 48 but eventually it will expand into Alaska.” Part of NorthStar Energy’s goal with rebranding Inlet Petroleum to Inlet Energy was to align the company with a new mission and vision “of driving a cleaner energy future while guiding customers through the changes of an evolving petroleum industry.”

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R E A L E S TAT E

The Real Estate Reality

Despite hiccups brokers expect an economic rebound later in 2021

cweimer4 | iStock

By Bruno J. Navarro

22 | March 2021

Alaska Business www.akbizmag.com


T

he COVID-19 pandemic has wreaked havoc on state and local economies throughout the United States, and, at least temporarily, changed the landscape of commercial real estate in Alaska. The good news is that real estate experts say it’s only a matter of time before the market rebounds. The Alaska Department of Labor and Workforce Development (ADOLWD) acknowledged in its annual economic report, published in January, that it previously forecast modest growth in construction employment for 2020; however, the pandemic ushered in “crippling uncertainty” that nobody could have predicted. ADOLWD economist Karinne Wiebold points to ongoing interest in the state’s staple industries such as mining, oil and gas, and tourism, combined with Alaska’s strategic location for military operations, as critical, positive elements. “It may take a couple of years for visitor numbers to return to pre-COVID levels, and some tourists’ preferences may change, but Alaska will continue

“That market is still strong. The pandemic slowed it down, but it didn’t crash. Companies like Overstock and Wayfair are going through the roof because so many people are buying things online. When people do that, we need warehouses everywhere.” Lottie Michael, Senior Vice President, Berkshire Hathaway HomeServices Alaska Realty

to draw visitors. Investments in Juneau, Hoonah, Skagway, and other coastal communities—such as new cruise ship docks—were expected to pay off sooner, but they will eventually bear fruit,” Wiebold writes. The report notes that “two or three new hotels planned to break ground in 2020 but stalled with the loss of tourism,” but it also expects a positive outlook for residential housing.

“Anchorage permitted the largest number of new homes in five years through October,” according to the department’s Alaska Economic Trends jobs report. “A near-repeat Lottie Michael performance is Berkshire Hathaway Alaska Realty likely in 2021.”

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“It’s going to be interesting. As time goes on, if your workforce retention is no longer confined to the market you’re in, you might be inviting companies or their employees from all over the world to come and work or live in Alaska — and viceversa.” Brandon Spoerhase, Principal Broker BSI Commercial Real Estate

Lottie Michael, senior vice president at Berkshire Hathaway HomeServices Alaska Realty, says that some segments of the real estate market have held up better than others, such as industrial space, particularly warehouses. “That market is still strong. The pandemic slowed it down, but it didn’t crash,” she says. Michael attributes this resilience to the strength of online retail. “Companies like Overstock and Wayfair are going through the roof because so many people are buying things online,” she says. “When people do that, we need warehouses everywhere.” The global pandemic didn’t cause the shift to online shopping, but it did accelerate the ongoing trend. McKinsey & Co. says a previous 2019 forecast expected e-commerce to account for 24 percent of sales by 2024. In July 2020, that figure reached 33 percent of total sales. “To put it another way, the first half of 2020 saw an increase in 24 | March 2021

e-commerce equivalent to that of the previous ten years,” according to “The next normal arrives: Trends that will define 2021—and beyond,” an article published in January by the group. At the same time, ADOLWD said in its January economic report that retail employment in Anchorage has declined every year since 2016. “Specialized stores and department stores suffered the most. In just the last few years, Anchorage lost Nordstrom, Pier 1 Imports, Forever 21, one JOANN Fabrics location, and Sears, to name just a few.” Even as online retail has placed a premium on warehouse space, the economics of developing industrial space doesn’t add up: “With the rate of return, it doesn’t make sense. We can’t get enough rent to justify new construction,” Michael says. For retail space in strip malls, momand-pop stores can expect to pay effective rent of about $1.80 to $2.25 per square foot, Michael says. Bigbox retailers that might need 50,000 square feet could pay around $1.80 per square foot, although they are less common. “We just don’t have that Brandon Spoerhase many Sam’s Clubs,” BSI Commercial Real Estate she says. When Kmart closed its Alaska locations after filing for bankruptcy, Michael notes that its stores were backfilled with two or three retailers per building. “If it’s in a power center like Tikahtnu Commons, the covenants dictate that they have to stay retail,” she says. “They want someone that brings in traffic.”

Michael expects that once the COVID-19 vaccine becomes widely available and the virus becomes more manageable, the economic rebound will begin. “We’ll have our arms around it and have a game plan by the third quarter of ’21,” Michael says. “Nobody’s anticipating this lasting forever.” Yet she also expects some changes to take root over a longer period of time. One sector that is unlikely to return to a pre-pandemic levels is brick-andmortar retail. “[But] I don't think the retail is going away,” Michael emphasizes. “In Anchorage, we do something called ‘recreational shopping.’ It’s just recreating.” While many goods can be bought online, she says that some types of retailers will see more of a rebound than others. “If you’re going to buy furniture, like a couch, you want to sit on it,” she says, adding that the same goes for clothing purchases. “I think it’s going to be more refined shopping.” Meanwhile mixed-use properties are seeing significant activity. “For the most part, they’re the ones that make sense,” Michael says, adding that a combination of residential and office space is particularly attractive to potential buyers, especially with spaces leased to a national tenant. Prospective buyers should consider taking the plunge if they can lock in an interest rate at around 3 percent for a fixed, 25-year loan, she says. “I would say to a buyer, if they are astute investors, that would make sense,” she says. “It might not be totally sexy, but it might be a solid investment… Find a good property and lock it in for 25 years. You don’t have to own it for 25 years.”

A mixed-use property listing on Old Seward Highway offers retail and office space. Berkshire Hathaway Alaska Realty

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Despite a growing work from home trend, Lottie Michael believes many workers are resistant to converting their homes into permanent workspaces—unless compensated. DGLimages | iStock

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Park Plaza is slated to open November 2021.

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The “Work from Home” Effect Michael says she expects some resistance to the growing workfrom-home trend, saying employees could balk at turning home offices into permanent workspaces. “If you bought a four-bedroom house, you probably want four bedrooms,” she

says. “No one wants to give a room of their house or their apartment without compensation, and I don’t know of any [companies] that are giving compensation,” she adds. Anecdotally, Michael says that she has only heard from one group of workers whose employer was providing

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a stipend of $20 per month for home office costs. Class A office space leases are being advertised at around $2.50 per square foot, but effective prices—once landlord concessions are factored in—are closer to $2.25 or $2.30 per square foot.

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“Right now would be a good time to negotiate,” she says. “If you could come in as a strong tenant, you can take that headache or that worry from the landlord.” While it might take six months or more for demand to pick up significantly, Michael sees a sea change coming in how businesses approach office space. “It just evolves, and if we don’t change with it, we die,” she says. “The market morphs into a different way of doing business.” Michael says that the current market climate is just “another hiccup” that requires “discipline to excel.” “The people who are going to survive and prosper are those who have kept up with the market and evolved,” she adds. “My advice would be for people to pay attention to good advice, not your neighbor’s brother-in-law. Have a plan and do your homework.”

The Demographic Challenge Brandon Spoerhase, principal broker at BSI Commercial Real Estate, says population decline poses a giant challenge to Alaska’s real estate market.

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“The people who are going to survive and prosper are those who have kept up with the market and evolved. My advice would be for people to pay attention to good advice, not your neighbor’s brother-in-law. Have a plan and do your homework.” Lottie Michael, Senior Vice President, Berkshire Hathaway HomeServices Alaska Realty

ADOLWD reports that the state’s population declined by nearly 4,000 people, or about 0.5 percent, from July 2019 to July 2020. The agency’s figures represent the fourth consecutive year that the state’s population—estimated at 728,903—has declined. Net outward migration and lower birth rates account for much of the loss. “For traditional commercial property owners, it was a real flat market, with much uncertainty,” Spoerhase says.

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He says owners of Class A office space were providing concessions on the back end, with the rate continuing to drop throughout the third quarter of 2020. Yet the absorption of space also created a slightly higher price per square foot, up a penny from the second quarter to the third for the overall Class A market to $2.56 per square foot. Vacancy rates fell slightly from the second quarter of 2020 to the third

March 2021 | 27


quarter, with Class B space accounting for most of the losses, declining from 10.59 percent to 9.15 percent in the period. The vacancy rate for Class A space declined slightly from 12.91 percent to 12.67 percent, according to quarterly surveys conducted by BSI Commercial Real Estate. Despite the slowdown, Spoerhase sees optimism in the market. “Some projects are still going forward,” he says, adding that developers are looking ahead. “They think 2021 is going to be a good year, and 2022 is going to be even better.”

Anchorage’s Retail and Industrial Scene

Construction has begun on Park Plaza, a mixeduse development slated to open November 2021 in downtown Anchorage. BSI Commercial Real Estate

28 | March 2021

“Downtown retail came to a standstill because of the lack of people traveling,” Spoerhase says, adding that despite tourism’s decline, inventory has risen. “On the investment side, even out-ofstate, large-scope investors have really shied away from retail in Anchorage which historically has been a hot market to attract investors,” he adds. Credit A retail tenants are becoming harder to find, meaning that the market is “having a difficult time getting investors interested in that product,” Spoerhase says. Like Michael, Spoerhase sees a tight market for industrial real estate, continuing a trend that has taken shape over the past decade. “Most demand is for good-quality, high-cube warehouse space, which we have very little inventory,” he says. For industrial spaces, Spoerhase says the market is looking at about $1.15 per square foot. Meanwhile, new construction is clocking in at around $1.45 per square foot. “The challenge is the high cost of land and cost of construction has been prohibitive to new industrial developments,” he says, adding that clients are paying “exorbitant” prices for industrial spaces in some parts of the state, including Anchorage. “That’s something that we have to educate tenants [about] as they come to town.” A full market rebound might take a while, Spoerhase says. “We might not see it for a long time, depending on how Alaska’s oil and gas and mineral exploration is going to be affected by Alaska Business www.akbizmag.com


THE OIL FIELD OF THE FUTURE By Aaron Helmericks Senior Director, Energy & Mining, GCI Business

V

olatility in the global oil market, the recent decline in oil prices and extreme weather patterns in Alaska have made digital innovation in the oil and gas industry essential. To remain competitive in a rapidly changing marketplace, operators in the North Slope must find new ways to increase efficiency, reduce costs and improve safety for employees in the field. While a smart oil field might sound like something out of a sci-fi movie, we are moving closer to this reality with the adoption of technological solutions like Industrial Internet of Things (IIoT), Augmented Reality (AR) and wearables. These innovative technologies allow oil companies to make faster and better-informed decisions about missioncritical systems through real-time data. With IIoT, wireless sensors connect physical devices, enabling them to talk to each other and to be controlled and monitored remotely. In the past, crews needed to physically visit each location in the field to check for leaks or gather data. But with a push to a smarter digital oil field that allows pulling in previously stranded data, enhanced remote sensors, and remote HD video, workers can avoid unnecessary trips into the field and companies gain real-time awareness with historical behavior analytics. March 2021

Smart glasses with AR support can allow field workers to perform tasks hands free while also allowing the operation control center the ability to see for themselves and make recommendations. It also gives the ability for a field technician to virtually pull in an expert from anywhere in the world for hands on troubleshooting.

GCI is equipping smart oil fields with tech solutions like IIoT and AR to help oil companies make faster and better-informed decisions. Companies are already starting to equip workers with smart glasses and have seen improved safety and efficiency in the field. Other smart wearables are being explored to support worker safety. Many fieldworkers must endure harsh conditions to perform their jobs that might also be miles from the nearest worker, but with a smart wearable the control center could monitor critical health data to ensure employee safety.

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A technician wearing smart glasses with AR allows field workers to perform tasks handsfree while also virtually pulling in an expert from anywhere in the world for hands-on troubleshooting.

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has provided a damper. “Lending institutions are… really riskaverse right now,” Spoerhase says. “I would say it really hasn’t been as beneficial as people would think for purchasing commercial property.” Yet Spoerhase sees bright spots in Anchorage retail. “I’m kind of bullish on downtown. I always have been,” he says. “You can’t have a city without a downtown.” New tax credits to increase housing density in the downtown area will provide another tailwind for commerce in the area, he adds. Spoerhase points to the mixed-use development of the nine-story building at 601 W. Fifth Avenue, formerly Key Bank Plaza, which will accommodate more than 120,000 square feet of office and ground floor retail space that will be wrapped “with a high-performance glass curtain wall on the north, south, and east sides.” It’ll include expansion of an existing building and construction of a 400-plus-car garage.

Vacancy rates climbed in 2020 but remained below 2018 highs. BSI Commercial Real Estate

Changes to Office Work

Juneau is one of many Alaska coastal communities that invested in tourism industry infrastructure pre-COVID-19, and while the community will still see a return on that investment, it's going to be more slowly than originally anticipated. virsuziglis | iStock

the incoming administration because we’re such a resource-driven state.”

Bright Spots “We don’t really have a really crisp stock answer as to what’s going to 30 | March 2021

happen,” Spoerhase says. “Much of that depends on what happens with vaccinations.” While interest rates might have helped the commercial real estate market somewhat, the overall climate

Remote work will certainly change the face of how businesses approach staffing and office decisions, and the shift could benefit Alaska, Spoerhase says. “With COVID, a challenge to the workforce has been retention,” he says. “The workforce is a global competitive market, so you might have people wanting Alaska’s quality of life and end up working from Alaska for companies that are geared up toward teleworking and Zoom meetings and things like that. So you might see people coming to Alaska that are working for companies outside of Alaska. “It’s going to be interesting,” he adds. “As time goes on, if your workforce retention is no longer confined to the market you’re in, you might be inviting companies or their employees from all over the world to come and work or live in Alaska—and vice-versa.” Like Michael, Spoerhase says that the development of COVID-19 vaccines has provided a real reason for optimism— and confidence—in a market rebound. “Once the money starts flowing again because of that confidence, projects will resume,” he says. “We’ve had a real shadow of uncertainty, but better days are ahead.”

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Construction retailers keep optimism in stock By Tasha Anderson

T

urns out, predicting the effects of a pandemic on a global economy is kind of impossible. In the midst of the uncertainty, those companies that crumbled and those that found ways to thrive seemed random at times, depending on local economies, access to financial aid, the unpredictability of consumers, changing regulations, and a little bit of “who knows.” Fortunately, many businesses have found ways to make it work. And at the turn of the new year, following several months of various degrees of hunkering down and the slow but steady distribution of vaccines, there was a general sense that Alaska might be reaching a turning point—that perhaps, with continued caution, the worst could be behind us. In February, Acting Anchorage Mayor Austin Quinn-Davidson eased hunker down restrictions in response to a significant drop in the number of COVID-19 cases statewide, and the Anchorage Economic Development Corporation’s annual Economic Forecast, published in January, anticipates that by the second half of 2021, there will be additional jobs in most major sectors in the state. As economists and community leaders try to get a handle on what’s next, there’s a simultaneous drive to understand what exactly happened: to inform predictions and better prepare everyone for what may come.

32 | March 2021

Kerry Tasker

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Hardware Hangs In


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CONS TRUC TION SPECIAL SEC TION

Hidden Highlights In looking back at nearly a year of COVID-19, there are unexpected positives: According to an August 2020 article by Mike Stachura in Golf Digest, “Golf Datatech tabulated sales for July [2020] to be the highest for a single month since the company began tracking information in 1997. Sales at on- and off-course retailers were $388.6 million, which easily surpassed the previous best two months (June 2007 at $368.1 million and June 2006 at $364.0 million).” According to ReportLinker, a market research organization, the home gym equipment market (by revenue) is expected to grow at a compound annual growth rate of close to 9 percent during the period 2019 to 2025. “The industry has been witnessing high growth opportunities during 2020 and are likely to continue in 2021 owing to the outbreak of the COVID-19 pandemic and subsequent shutdown of gyms and health clubs across the globe.” Meanwhile, Progressive Farmer Senior Editor Dan Miller reported in a May 2020 article published on AgFax that “a report of farm machinery sales in March hinted at the possible coming impact of COVID-19 on the industry. The pandemic, some speculated, would bring down the hammer on sales in April. But that did not happen.” Instead, year-over-year tractor sales were up 12.3 percent in April 2020, and “tractor units sold rose on a 16.2 percent increase in sales of tractors 40 horsepower and below… The strong result in this category might be the result—and there is some speculation here—of newly workingfrom-home weekend hobby farmers investing in equipment to complete long-overdue projects.” That at-home project and activity equipment purchasing isn’t limited to agriculture, notes Craig Taylor Equipment President and CEO Chris Devine. Craig Taylor Equipment provides sales, rentals, parts, and ser vice for equipment ranging from S T IHL chainsaws to Doosan heav y construction equipment , so it s customer base al so runs the gamut from individual s workin g o n


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“Alaskans adjust, we adapt, we overcome:

Renovations of the new AIH store continued in late January in preparation to open to the public in early April. Tasha Anderson | Alaska Business Publishing Co.

that’s Alaskans. What we’ve seen, at least in our market, is that Alaskan spirit that we’re going to figure this out.” Terry Shurtleff President/CEO Alaska Industrial Hardware

home projects to some of Alaska’s largest contractors. “What’s been fascinating to us, which was not expected in March when things really started to hit the fan, is that our retail business—although it’s been hamstrung by just the physical restrictions of what we're dealing with— the actual demand has been extremely strong… And we’re seeing this in all retail categories: four wheelers, snowmachines, cars,” Devine says. As far as Devine can tell, “What seems to be happening is there's a lot of money floating around, and folks are looking to spend it. Specifically in our scenario, our customer base, in a lot of ways, they have a little bit more discretionary income—John Deere's not necessarily the cheapest brand out there—and those folks have not been impacted by this crisis as much.” Since the pandemic turned most office occupations into at-home positions, workers with a generally higher level of income are spending all day in their own environment, constantly reminded of projects that were easily put off or neglected before. “These folks are sitting in their houses, staring at their front lawn going, ‘Why don’t I finally get around to doing this yard project, or this driveway project,’” he says. In fact, for Craig Taylor’s retail side, Devine says a significant challenge 34 | March 2021

After construction is complete, the new AIH location on the Old Seward Highway will create twenty to twenty-five new jobs. Tasha Anderson | Alaska Business Publishing Co.

Alaska Business www.akbizmag.com


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Consistent Progress Fortunately for Craig Taylor Equipment, finding ways to operate in a challenging environment is almost second nature. The current ownership group purchased Craig Taylor Equipment from Craig Taylor’s widow in 2013, and within a year was operating in a state smothered by recession after oil prices crashed. “It’s been good in the sense that it’s forced us to really cut our teeth,” Devine says. “We really had to learn the industry and learn the business. When oil is $120 a barrel, a lot of mistakes or inexperience can be hidden, right? We were forced to learn the business more intimately and in a shorter period of time.” That said, the group did anticipate a certain amount of growth that has been delayed—though not stalled—by an economy in recession followed by a pandemic. “It has taken longer than expected to get the business to where it is today,” he says. “We were hit pretty good in those early years: 2014, 2015, 2016… but the market was in a really rough place and continues to be.” Funny enough, it’s as the pandemic continues that Craig Taylor Equipment is really finding its footing and pushing forward. “We’re confident with what we’ve been able to build, and we’re confident that we can replicate it,” Devine says. “We're very system and process driven operators, and we feel like we built the systems, we've tested the systems, we're to a place now where we can essentially start to scale and extend those systems into new businesses www.akbizmag.com

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presented by the pandemic in 2020 was keeping inventory in stock for customers to purchase. “The demand has been through the roof: our biggest problem this year in the retail side was that we are completely out of inventory, and John Deere can't provide it fast enough.” And it’s a nationwide trend. According to Devine, April 2020 broke a record in small tractor sales, the highest volume compact tractor sales John Deere has ever seen in a single month. “I don’t know how anyone could have thought that would happen—it’s just crazy to see the way that these things unfold,” he says.


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“What’s been fascinating to us, which was not expected in March when things really started to hit the fan, is that our retail business— although it’s been hamstrung by just the physical restrictions of what we're dealing with—the actual demand has been extremely strong… And we’re seeing this in all retail categories: four wheelers, snowmachines, cars.” Chris Devine, President/CEO Craig Taylor Equipment

effectively and efficiently so that, even though things are pretty tough, we're able to move pretty nimbly.” A recent big move for the company has been the acquisition from Dobbs Peterbilt of all its Alaska Peterbilt assets, which include two branch locations, equipment, and approximately forty employees. According to Devine, the acquisition benefits both the company and its customers. “A majority of our current customers on [our] products also have the need for trucking to haul 36 | March 2021

their equipment—at the same time almost all of the truckers, in one way or another, could have a need for Bobcat equipment. So in both directions there’s a lot of synergy,” he says. Craig Taylor Equipment isn’t the only retailer making big moves despite a challenged construction industry, tricky retail environment, and the other ongoing effects of COVID-19. Quite literally, Alaska Industrial Hardware (AIH), a Bering Straits Native Corporation subsidiary, is taking up residence in what used to be the Sam’s Club on the Old Seward Highway. AIH President and CEO Terry Shurtleff explains that the retailer, which provides hand and power tools, builder hardware, contractor and industrial supplies, and maintenance and safety products, as well as repair services, has been in need of a larger retail footprint for some time. “We’ve been a little over capacity in our current facilities for a while,” Shurtleff says. “We’ve been looking for [potential new locations] for a while and it just came about that this facility opened up.” The building was originally constructed in 1993 as a Sam’s Club, which parent company Walmart closed in 2018. Coincidentally, UNIT Company, the general contractor for the initial construction, was selected again—after a competitive bid process—to renovate the facility to meet AIH’s needs, with a scope of work including three new loading docks, material storage racks, and lighting upgrades. The approximately 153,000-squarefoot location will serve as AIH’s headquarters, housing corporate offices in addition to retail operations, retail support, a repair center, and a cross-stocking/laydown area, and will create the opportunity for twenty to twenty-five new jobs. As of publication, Shurtleff anticipates that the store will open for retail business the first week of April.

Surviving Retail While other retailers are reducing operations or shutting down entirely, some because of COVID-19 and others as a result of an ongoing decline in the retail sector, Shurtleff explains AIH has been able to maintain operations and even expand because of the type of products it sells and where it operates.

“We continue to benefit from Alaska's geography, and we continue to benefit from the immediacy of the need: when a customer needs something that we stock, they have to have it right now, they can't wait. So we're not completely Amazon proof, but we're a little more Amazon proof than some other retailers,” he says. “If a company has three people standing around and they don’t have the tools or materials they need to do the job, it’s costing them a fortune.” But no one is exempt from the challenges of the pandemic. Much like Craig Taylor Equipment, Shurtleff says a significant struggle for AIH is getting products on the shelves or installed in the store itself—and when one is planning to open a new, flagship retail location, that’s not an insignificant issue. “We’re pretty concerned that, because of supply chain issues we’re seeing all over the world now, we’re going to have trouble getting all the building materials we need for the new store on time,” he says. “Right now what we’re seeing— what anybody that’s shipping around the world is seeing—are bidding wars going on. For example: nitrile gloves. We were notified a few days ago [in January] that our nitrile glove manufacturers are basically making people bid for orders that they placed because others are willing to pay more money—it’s that ugly. “And when it gets to the dock,” he continues, “the shipping companies that had previously quoted, say $1,600 a container, are asking for the current spot price of $3,200 a container versus what they previously quoted… Across the country, if you see a hole on the shelf, odds are its COVID supply chain-related.”

Adjust and Adapt So what’s everyone doing? In short, adapting. “We’re pivoting—though I don’t like the word pivoting, everybody says that, and it seems like we are pivoting so much we are spinning in circles—we’re going to new suppliers, alternate vendors. Our people are moving to fill those holes, just like everybody in a distribution business,” Shurtleff says.

Alaska Business www.akbizmag.com


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“What seems to be happening is there's a lot of money floating around, and folks are looking to spend it. Specifically in our scenario, our customer base, in a lot of ways, they have a little bit more discretionary income—John Deere's not necessarily the cheapest brand out there—and those folks have not been impacted by this crisis as much.” Chris Devine, President/CEO Craig Taylor Equipment

Everyone is looking for replenishment because, in specific sectors, demand for retail remains high. The same customers eyeing failing retaining walls or overgrown yards are painting walls, updating kitchens, or installing home gyms. “We didn’t see the same, what we are calling the ‘COVID bump,’ that say a Home Depot or Lowe’s did, because we don’t carry lumber or paint; however, we did see a bump in the categories we do stock like fasteners and PPE—we do carry basically everything else to do the job.” After a dramatic drop in sales in March 2020 as Alaska essentially shut 38 | March 2021

Despite physical restrictions due to the pandemic, demand has remained strong for construction tools, materials, and other supplies, like those at Craig Taylor Equipment’s Wasilla showroom Kerry Tasker

down in response to the pandemic, construction retail saw a bit of a bounce back as Alaskans began their search for tools and supplies and a new normal. “Alaskans adjust, we adapt, we overcome: that’s Alaskans,” Shurtleff says. “What we’ve seen, at least in our market, is that Alaskan spirit that we’re going to figure this out.” Across the state, businesses like AIH have been given opportunities to practice adapting and making do: the pandemic piggy backed a multi-year recession, which AIH was in no way immune to. “Alaska’s been in recession for five years… hard times are not exactly new,” Shurtleff laughs. “Obviously we’ve seen contraction from different markets, so what we do is look to other product lines,” he

says. Throughout the recession, AIH introduced several new product lines to its retail offerings, “so that we’re basically selling a deeper breadth of product to support the market,” including STIHL and Hilti. “We’ve been pursuing STIHL for years but finally made the decision to put it in all of our stores,” Shurtleff explains. “It was a big move for us: it’s a great line, it’s a premium line that fit [our brand] to a ‘T’, but we had to work on them for years in order to make that happen, and fortunately it came right at the right time.” No single fix covers the challenges, but cumulatively they’ve allowed AIH to continue to efficiently and effectively supply its customers with the supplies they need. “We’re positioned well for a recovery; we just hope it comes soon," Shurtleff laughs.

Alaska Business www.akbizmag.com


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Building Common Ground Contractors, community help bring public projects to fruition By Vanessa Orr

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ccording to the Associated General Contractors of Alaska’s (AGC) 2021 Construction Spending Forecast, construction spending this year is expected to total $4.3 billion, with 52 percent ($2.2 billion) of that money spent on private sector projects and 48 percent ($2.1 billion) spent on public sector projects. While a large part of the public sector funding includes national defense projects and highway and road construction and improvements, it also encompasses community-based projects that include school replacements and renovations, regional housing initiatives, behavioral health and other medical facilities, and spaces dedicated to the arts. Putting together something that the public will use—and that they or the government often fund—requires the expertise of multiple different stakeholders, from municipalities 40 | March 2021

and local governments to architects and designers to the contractors that build the facilities, bringing the vision to fruition.

What Makes Public Projects Different? The main difference between a private and public construction project is often how the project is funded: private projects are commissioned and paid for by private institutions, businesses, or building owners while public construction projects are usually built using public funds. These projects might also have to follow certain rules—such as how apartments are apportioned in publicly funded housing—that are determined by the state or federal government. “Any large project with public funding needs to be competitively bid and awarded,” says Pearl-Grace Pantaleone,

business development and marketing manager for Cornerstone General Contractors. “Whether it is design/bid/ build, design/build, or construction management/general contractor, there is typically a combination of qualifications and pricing in a proposal response from both designers and builders. For public projects, there is generally a formal request for proposal from the client and sometimes an interview/presentation is required to land these contracts.” There is often a substantial amount of public input surrounding the process as well. In addition to working with the owners and investors, those working on a project must be open to user feedback, whether from stakeholders or end-users. For example, in 2015, Cornerstone General Contractors was awarded the Wasilla Public Library renovation

Alaska Business www.akbizmag.com


As part of the Anchorage Museum expansion, Davis Constructors & Engineers installed nine new columns threaded through the existing structure. The heaviest beam weighed 30,000 pounds. Davis Constructors & Engineers

through a competitive Best Value (qualifications and pricing) process. Construction of the new 25,000-square-foot library included the main library, a teen area, children’s library, business center, three large private study rooms, staff offices, forty public-use computers, an outdoor amphitheater, and ninety parking spaces. “The project was funded solely by the city of Wasilla through a ‘sunshine tax’ that the people of Wasilla voted for, so the community was well informed about the project make-up since they had been romanced with information to get a ‘yes’ vote on the tax’s implementation,” explains Cornerstone General Contractors Superintendent Tony Link. “When out in the community wearing a Cornerstone hat or jacket, I would get inquiries about the project, with www.akbizmag.com

“As a museum, we have a sensitive environment and systems, a public building, and many objects to protect, so having a contractor who could be responsive to very specific operational needs was critical. ” Julie Decker, CEO Anchorage Museum Association

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people usually voicing their excitement for its completion.” In addition to the 2013 voterapproved 1 percent hike in the city sales tax, funding also came from the Friends of the Wasilla Library, the State of Alaska, the Rasmuson Foundation, and the Foraker Group. The MatSu Borough donated the four-acre parcel through a transfer to the City of Wasilla. Public process was an integral component of the Anchorage Museum Expansion, a privately funded project undertaken by Davis Constructors & Engineers in 2016 that included the renovation of existing museum space as well as the addition of a new wing. “The design process included a committee of stakeholders that embraced meetings to design a museum with a focus on the North as well as the overall visitor experience,” says Davis Constructors & Engineers President Luke Blomfield, who served as senior project manager for the museum expansion. He adds that the expansion needed to connect to the museum’s mission-critical goals, which revolved around telling the story of the North

One of the major innovations Davis Constructors & Engineers used to help separate Anchorage Museum expansion construction activities from the public and create clear paths for movement and egress was the utilization of plastic building blocks similar to LEGOS. Davis procured 8,000 “life-sized” LEGOS to construct temporary construction walls throughout the Atrium, Discovery Center, and Alaska Gallery, significantly decreasing waste, increasing reuse, and maximizing installation durations. Davis Constructors & Engineers

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The project included thirty-eight units of affordable housing for those earning 50 to 60 percent of the area median income and twelve marketrate units. Among the thirty-eight affordable housing units, fifteen are fully equipped for people with sensory and mobility impairments; ten units are set aside for those who are otherwise differently abled; and four are set aside for people experiencing homelessness. In addition, the development features 2,680 square feet of ground-floor commercial space.

Keeping the Doors Open One of the difficulties of working on public projects is that—in many cases— the current building needs to be kept open to serve the public. The Gladys Wood Elementary School project, completed in 2017, included new construction of a 50,000-squarefoot school in Anchorage to serve 375 students. The current school needed to remain in operation while Cornerstone General Contractors increased the building size by 8,200 square feet and made parking lot and playground accessibility improvements.

“Although it seemed like it was your standard project for the school district, it was a complex renovation, and our school district project manager made this job run smoothly,” says Link. “Our team’s ability to function effectively with limited laydown, staging, and storage ensured a smooth construction process.” Because it was taking place in an occupied school, construction required extensive coordination to minimize impacts to students, staff, and the public. “This included working with school administrators to orchestrate construction efforts around academic and afterschool activities and to plan for systems transfers or temporary utilities so that the changes were seamless,” adds Pantaleone. Davis Constructors & Engineers faced the same hurdle when working on the Anchorage Museum Expansion, as the museum’s galleries and event spaces needed to remain open during construction. This was quite a task, considering that the project expanded the amount of space dedicated to the museum’s collection from 3,000 square feet to 25,000 square feet,

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March 2021 | 43

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through art, design, history, science, and culture. The design of the new Rasmuson Wing also required an immense amount of coordination between the construction company and government agencies. “Because the two spaces that cantilever out over the Anchorage Museum’s property line into the rightof-way of the sidewalk, one on Sixth Avenue and one on A Street, it was necessary for us to coordinate with the federal government, the Municipality of Anchorage, and the Alaska Department of Transportation to get the necessary permits,” says Blomfield. As with any project, contractors must account for functionality, longevity, efficiency, and maintenance for the end-user, says Pantaleone. “Our mission is to give people the best construction experience every time, and collaboration and clear client objectives make this successful,” she says. In 2019, Cornerstone completed Elizabeth Place for the Cook Inlet Housing Authority, a mixed-income development in downtown Anchorage.


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which required the removal of more than 800,000 pounds of concrete to make way for the new addition. The addition itself weighs 2.2 million pounds and is supported by 1 million pounds of new steel, including nine new columns threaded through the existing structure. According to the project summary, Davis crews were comingled throughout the back-of-house space with museum archivists, collections, operations, and other staff. Construction methods were influenced by the project’s adjacency to millions of dollars of irreplaceable works of art, and the crew was often tasked with coordinating moving, storing, and resetting these priceless objects. “Work was conducted under, over, and through the existing museum, which remained open and full of sensitive works of art,” says Blomfield. “We had 30,000 objects to protect from any kind of vibration or disruption. To be able to auger micropile under an existing building, stay operational, and not have to move the museum collection was a pretty remarkable feat.” All told, the Anchorage Museum Expansion required Davis to coordinate more than 3,000 deliveries of supplies, attend 2,040 hours of meetings, and spend more than 42,000 man hours to construct the addition. While the museum was closed to the public for six months in 2005 during its previous expansion, resulting in a loss of revenue and visitor numbers, the 2017 expansion resulted in no loss in viewership or visitor counts as the construction firm and the museum worked together to ensure that only small portions of the museum were closed or disrupted at any given time. One of the major innovations used to help separate construction activities from the public and to create clear paths for movement and egress was the use of plastic building blocks similar to LEGOs. Davis procured 8,000 of these ‘life-sized LEGOs’ to construct temporary construction walls throughout the Atrium, Discovery Center, and Alaska Gallery. “In contrast to temporary construction walls that have to be framed, drywalled, and painted for each phase, we incorporated 44 | March 2021

Davis Constructors & Engineers had to manage extremely tight space constraints: sidewalk to sidewalk construction in busy downtown Anchorage. Its team coordinated and managed all road and sidewalk closures and received zero negative comments or complaints from the community during these closures. Davis Constructors & Engineers

Concrete crews work in synchronization to complete the floor decks at the Anchorage Museum Expansion. Davis Constructors & Engineers

Alaska Business www.akbizmag.com


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under, over, and through the existing museum, which remained open and full of sensitive works of art. We had 30,000 objects to protect from any kind of vibration or disruption. To be able to auger micropile under an existing building, stay operational, and not have to move the museum collection was a pretty remarkable feat.” Luke Blomfield, President Davis Constructors & Engineers

46 | March 2021

Projects on the Horizon In December 2020, the Municipality of Anchorage purchased the Best Western Golden Lion Hotel with the intention of converting it into a drug and alcohol treatment center. The $9.3 million purchase was paid for with proceeds from the sale of Municipal Light & Power; the remainder of the $15 million budget is being used to prepare and convert the building for its new purpose. While renovations at the hotel are expected to be minor, the Anchorage Assembly also approved $12.5 million in CARES Act funds over the summer to purchase three other buildings for homelessness services, including the Bean’s Café soup kitchen and an America’s Best Value Inn & Suites. The third site has not yet been determined.

On the education front, the AGC forecast notes that previously authorized state funds are expected to stimulate construction work in 2021, including work on the Eek and Bristol Bay schools and school replacements in Atmautluak and Aniak. Spending on Southcentral earthquake repairs and replacements includes Houston’s school and several Anchorage schools, most notably repairs at Gruening Middle School and Eagle River Elementary School. Roughly $140 million is expected to be spent on other federal government projects, including those supporting government entities (including tribal governments) and nonprofit organizations. This includes more than $35 million in funding to Alaska’s regional housing authorities to build housing units and to rehabilitate existing homes. Another $280 million in state and local government expenditures is anticipated in 2021 for projects such as solid waste transfer stations, bulk fuel storage upgrades, water and wastewater treatment facility upgrades, community development initiatives, public employee professional housing, and renovations and repair to state buildings. This spring, a new $6.2 million, 44-unit apartment complex will be constructed in Anchorage through an agreement between The Anchorage Community Development Authority, a municipal corporation, and real estate developer and property management firm Debenham Properties. The Block 96 Flats complex will include studio and one-bedroom apartments. Construction will break ground in May and is expected to be complete in summer of 2022. Chris Arend

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“Work was conducted

this LEGO wall solution into the project, which significantly decreased waste, increased reuse, and optimized installation durations,” says Blomfield. The museum, and the public, benefited from the firm’s innovative approach. “As a museum, we have a sensitive environment and systems, a public building, and many objects to protect, so having a contractor who could be responsive to very specific operational needs was critical,” says Julie Decker, CEO of the Anchorage Museum Association, on the success of the project. “Davis was a collaborator in addition to a contractor, working closely with us, the architects, and the subcontractors to ensure a project that was on time, on budget, well managed, and that allowed us to stay operational throughout.”

Alaska Business www.akbizmag.com


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DOT&PF

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Getting Off the Ground

CARES Act, AIP funding multiple airport construction projects By Julie Stricker

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ir travel is a lifeline for Alaska, connecting major urban hubs to remote gravel landing strips and back. The Alaska Department of Transportation & Public Facilities (DOT&PF) oversees maintenance on more than 300 aviation facilities, including 237 airports. In 2020, the COVID-19 pandemic hit much of the state's aviation industry hard, with a major rural carrier declaring bankruptcy and a drastic reduction in passenger travel curtailing flights and cancelling seasonal air schedules. But all of the disruption came with a silver lining: increased federal funding and a reminder of Alaska's importance to global cargo routes. In March 2020, the Federal Aviation Administration (FAA) announced a $124.17 million grant for Alaska to offset some of the impacts from the pandemic for 257 airports across the state, including 20 not under DOT jurisdiction. The funding came from the Airport Grant program, part of the CARES Act, a $2.2 trillion economic stimulus bill passed by Congress as the country shut down. 48 | March 2021

John MacKinnon, commissioner of Alaska DOT&PF, expressed the state’s appreciation of Congress’ and the FAA’s support in a news release last year. "This funding is critical to support airport maintenance and operations and replace lost revenue resulting from the decline in aviation traffic due to the COVID-19 pandemic," MacKinnon said in March 2020. "Funds can be used for any aviation expense, including airport operating expenses, airport debt service payments, capital projects, and more." That "and more" so far has meant funding for projects as varied as a new terminal in Juneau, firefighting trucks, pavement resurfacing, snowblowers, and brooms. This is in addition to projects DOT&PF already has on its books, some of which have been scheduled over multiple fiscal years. Another source of funding is the FAA's Airport Improvement Program (AIP), which awarded Alaska more than $75 million in September 2020. That funding is for airports to make capital improvements, improve public safety, and improve infrastructure. Alaska Representative Don Young, former chairman of the House

Committee on Transportation and Infrastructure, notes that Alaska has one of the largest and most active aviation communities in the United States. "For many of our state's communities, air travel is one of the only ways to remain connected to one another," Young says. "As a pilot myself, I know just how important it is that Alaska has reliable and safe airport infrastructure. The FAA's AIP program is one of the nation's most important funding sources for airport infrastructure, and I am a proud advocate for this program. Whether it is the ability to access goods and services, medical care, or to simply earn a living, air travel will continue to be crucially important to our state."

CARES Act The initial CARES Act grant was divided three ways: approximately $33 million for Ted Stevens Anchorage International Airport (ANC) and Fairbanks International Airport; $49 million for state-owned rural airports; and $41.7 million for non-state-owned airports. The latter includes Juneau International Airport, Merrill Field

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A new and expanded runway is under construction at Crooked Creek. The work was well under way in this Sept. 23, 2020 photo. DOT&PF

replace visual aid markers such as segmented circles, towers and poles, beacons, and wind cones. • $1.4 million for a combination of grants for ten different projects for such things as brush cutting, pavement repairs, and threshold markers. • $5.2 million for snow removal equipment such as motor graders, eight-cubic yard trucks with a slide-in sander, snow blowers, and brooms.

• $ 4.3 million for twenty-nine projects to preserve airport surfaces such as sealing cracks, dust palliative erosion control, and rehabbing threshold markers and pavement markings. • $725,641 for three projects to remove obstructions such as brush and trees. In Fairbanks, CARES Act funding is being used to revamp or "right-size" one of the runways at the East Ramp side of the airport, which is used by

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in Anchorage, and Kenai Municipal Airport, as well as those in Ketchikan, Soldotna, and Wasilla. Roger Maggard, statewide airport development manager at DOT&PF, says much of the CARES Act funding went to maintain operations at airports. In addition, the act also provided money to increase the federal share to 100 percent for grants awarded under the Fiscal Year 2020 appropriations for the AIP and supplemental grants. That grant program included $14.9 million for sixty-four airport maintenancerelated projects around the state: • $1.1 million each for aircraft rescue and firefighting trucks for airports in Cold Bay and Deadhorse. These trucks are an essential part of the FAA's certification process for airports that serve scheduled and charter aircraft with more the thirty seats, as well as scheduled service for aircraft with between nine and thirty-one seats. • $176,580 for aqueous film forming foam test equipment for airports in Bethel, Dillingham, and Homer. • $817,725 for five projects to


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“The pandemic has caused a significant shift in the air traffic mix. Nominal amounts of passenger aircraft are flying, displacing the cargo they once carried in their bellies. It has created considerable demand for freighter space to carry that cargo.” Jim Szczesniak, Airport Director Ted Stevens Anchorage International Airport

small planes, according to airport engineer R.J. Stumpf. Currently runway 2R/20L has a 6,500-foot runway, which is too big, Stumpf says. "We are right-sizing the runway, so we're going to shrink that down to 4,500, resurface the runway itself and the taxiways, and replace all the lighting," he says. HC Contractors is performing work for the nearly $7 million project. It is expected to begin this summer and will not impact flights. Juneau is also benefiting from CARES Act funding. The airport is owned by the City and Borough of Juneau and is in the midst of a multiyear $16.2 million project, led by Dawson Construction, to replace its passenger terminal, parts of which date back to the ‘40s. In September, the airport was awarded a lump sum of $15 million by the FAA, which will pay for the bulk of the project. The city originally had planned to pay for it over several years with airport passenger facility charges and sales and property taxes. It is expected to be completed later this year.

Rural Alaska Projects Most of the projects slated for 2021 in rural Alaska are state funded, although federal funding plays a role there, too. While most consist of seasonal maintenance, several big projects in McGrath, Mertarvik, Aniak, Crooked Creek, and Nome are also on the drawing board. The state is also looking at options for the airport in Seward, which is subject to flooding by the adjacent Resurrection River, but Maggard says that isn't on the list for 2021 and he's not sure when such a project could begin. Erosion and melting permafrost are taking a toll on the infrastructure in rural Alaska. In the past decade, DOT&PF has seen a greater need to resurface runways and do other seasonal maintenance, "particularly for Arctic airports and other airports located on permafrost," he says. In McGrath, the airport is located within a bend along the Kuskokwim River, and the water has moved just a few feet from the runway and access roads at times. McGrath has received

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close to $34 million from the FAA to help with erosion control. The runway, taxiway, and apron pavements also have extensive cracks and the lighting system is outdated. The purpose of the proposed project is to reconstruct the those pavements. The contractor, Knik Construction, is expected to complete this work in 2021. Erosion is also the reason for a new airstrip in Mertarvik, the new community housing previous residents of Newtok, just 9.5 miles away. The Ningliq River has been encroaching on the village of Newtok for years, and the airport is expected to be compromised within a couple more years. About half of the residents have already moved to the new site at Mertarvik, which is on higher ground. The new airport will have a 3,300-foot runway, with construction expected to begin this year and be completed in 2022. Total cost is expected to be between $20 million and $30 million. In Aniak, a major airport project that moved the runway 260 feet south of its original location is nearly complete. Knik Construction has been working

The village of Mertarvik, to which residents from the eroded village of Newtok have been moving. DOT&PF

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Alaska Business

Locally Owned & Operated March 2021 | 51


CONS TRUC TION SPECIAL SEC TION The Resurrection River is spilling onto the runway of the Seward Airport in this 2013 photo. Flooding and erosion have become a major problem and the state is looking at its options to relocate or rehabilitate the airport. Paul Janke

on the $58 million project, which was mostly funded by the FAA. The previous airport did not meet federal standards, Maggard says. The airport in Crooked Creek was also substandard, with a runway that was too short for many planes and subject to dips and cracks. A $16 million grant in 2019 allowed the project to move forward, and construction is expected to be complete in 2022. The project includes a new 3,300-foot runway, as well as lights and buildings to house snow removal equipment. Brice Inc. is the contractor. The runway at the Nome Airport is due for a major upgrade after receiving $21.6 million via CARES and AIP grants in 2020. Knik Construction is the contractor for the project, which is expected to total nearly $28 million. The current runway surface is degraded and prone to buckling due to permafrost. The project is expected to be complete in 2022.

Other Major Projects In the second quarter of 2020, ANC was the third busiest airport in the United States because of an increase in cargo flights for shipments that 52 | March 2021

normally would have been carried in the belly of passenger flights. The airport remained in the top ten in the third quarter, which saw a 25 percent increase in cargo tonnage over the same quarter in 2019. It's also the sixth busiest cargo destination in the world and second in the United States. “The pandemic has caused a significant shift in the air traffic mix. Nominal amounts of passenger aircraft are flying, displacing the cargo they once carried in their bellies. It has created considerable demand for freighter space to carry that cargo,” says Anchorage Airport Director Jim Szczesniak. “This demand for moving cargo displaced by the decrease in passenger aircraft availability is further bolstered by a substantial increase in e-commerce as people across the globe have embraced online shopping throughout the pandemic. The shift in the movement of air cargo has highlighted ANC's efficiencies and significance as the Center of the Air Cargo World.” Several new projects and expansions totaling more than $500 million are on tap for 2021 for the

Anchorage and Fairbanks airports. In Anchorage, Alaska Cargo & Cold Storage is a 700,000-square-foot, climate-controlled facility that will be constructed in phases, beginning later this year. In September 2020, the US Department of Transportation awarded the Alaska Energy Authority a $21 million BUILD (Better Utilizing Investments to Leverage Development) grant for the project, which is a joint venture of McKinley Capital Management and entrepreneur Chad Brownstein. When it's fully complete, the facility will offer cold storage, which would benefit the seafood and peony industries, as well as warm storage and warehouse options, logistics, and office space. FedEx and UPS are also planning major facilities expansions at ANC. FedEx has announced a $57 million project that would include a 98,000-square-foot operations center, with additional offices and parking for vehicles and aircraft. UPS plans a $110 million expansion, including a flight operations building and warehouse. Both projects are privately funded. In Fairbanks, Omni Logistics is building a $6 million hangar designed to handle 737-900s and narrowbody aircraft, which is expected to be complete this summer. Omni provides ground handling services for several carriers as well as handling charters and diversions from Anchorage. LifeMed Alaska is building a $6.9 million fully equipped air medical transport facility in Fairbanks, which is expected to be wrapped up this summer. It will double the current hangar space, which opened in 2019, and add 6,600 square feet of office space. In addition, both escalators in the main Fairbanks terminal are being replaced this spring, according to Stumpf. The $1 million state-funded project, which got underway in January, will be conducted in two phases, with Phase 1 replacing the up escalator to the TSA security checkpoint. That is expected to be finished in the first quarter. Phase 2 will replace the down escalator to the baggage carousel. Bliss Construction is the contractor.

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眀眀眀⸀琀漀爀挀猀椀氀氀⸀挀漀洀

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䔀一嘀䤀刀伀䴀䔀一吀䄀䰀䰀夀  䘀刀䤀䔀一䐀䰀夀 ∠  倀爀漀搀甀挀攀猀 氀攀猀猀 琀栀愀渀 栀愀氀昀 琀栀攀     挀愀爀戀漀渀 漀昀 挀漀渀挀爀攀琀攀 ∠ 刀攀甀猀愀戀氀攀⼀刀攀挀礀挀氀愀戀氀攀 ∠  一漀 猀瀀漀椀氀猀 昀爀漀洀 椀渀猀琀愀氀氀 ∠  匀洀愀氀氀 椀渀猀琀愀氀氀愀琀椀漀渀 昀漀漀琀瀀爀椀渀琀 ∠  娀攀爀漀 瘀椀戀爀愀琀椀漀渀猀 搀甀爀椀渀最   椀渀猀琀愀氀氀愀琀椀漀渀

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吀伀刀䌀匀䤀䰀䰀 䤀匀 䄀 䘀唀䰀䰀夀 䤀一吀䔀䜀刀䄀吀䔀䐀 倀刀伀嘀䤀䐀䔀刀 伀䘀 䐀䔀䔀倀 䘀伀唀一䐀䄀吀䤀伀一匀 唀吀䤀䰀䤀娀䤀一䜀 䠀䔀䰀䤀䌀䄀䰀 倀䤀䰀䔀 吀䔀䌀䠀一伀䰀伀䜀夀


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Attractions Gaining Traction Alaska’s path to better (and longer) visitor experiences

Teri Hendricks | Visit Anchorage Alaska

By Isaac Stone Simonelli

54 | March 2021

Alaska Business www.akbizmag.com


T

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he Ted Stevens Anchorage International Airport and the state’s ports and other vital gateways for long-haul tourism destinations are what most think of when it comes to tourism infrastructure. However, community visitor centers, roadside cabins, and robust trail systems are also essential parts of the infrastructure needed to support this multi-billion dollar sector in Alaska. “We lack tourism infrastructure all over the state,” says Bonnie Quill, president and CEO of the Mat-Su Convention & Visitors Bureau. “What tourism infrastructure does is it increases the visitor experience, whether it's a visitor center or a trailhead or the new ski lift at Hatcher Pass.” Improved infrastructure that connects visitors to communities and businesses has a positive economic impact, Quill explains. And the longer visitors stay, the better, says Alaska Trails Initiative Coordinator Chris Beck. “When you look at the length of stay in Alaska versus some of our competing destinations, stays in Alaska generally are fairly short,” Beck says. “In New Zealand, a place that has invested in substantial, active outdoor recreation infrastructure, particularly trails and hut-to-hut systems… the average stay is nineteen days. In Alaska, it's only nine days.” Those trail infrastructure development projects in New Zealand are integrated with private businesses that profit from the infrastructure, Beck says. Based on Alaska Visitor Statistics Program VII, Beck estimates that if half of the out-of-state visitors during a typical year spent one more day in the state, they would spend $137 million more annually. “We can do more to provide a diversity of ways to deliver what people really seek in Alaska, that intimate experience of our wilderness, wildlife or mountains or glaciers. Trails are an essential part of the infrastructure that delivers that experience,” Beck says. “While a trail may not come to mind, like a bridge or a port, if the goal is a strong and diverse and sustainable economy, trails, trailheads, and huts are all really high on the list of the infrastructure that Alaska Business

March 2021 | 55


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“When you look at the length of stay in Alaska versus some of our competing destinations, stays in Alaska generally are fairly short. In New Zealand, a place that has invested in substantial, active outdoor recreation infrastructure, particularly trails and hut-to-hut systems… the average stay is nineteen days. In Alaska, it's only nine days.” Chris Beck, Coordinator, Alaska Trails Initiative

delivers those experiences and those economic benefits.”

Slow and Steady While some funding for trail systems in the state has trickled in through federal programs, such as the Recreational Trails Program, the state has done little to invest in the opportunities, Beck says. Despite a lack of investment, nature walks and hiking have seen the greatest increase of all categories of Alaska visitor activities, according to

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Alaska received about $1.25 billion in CARES Act funds, and some of that money has already been tagged for tourism infrastructure projects. “The piece that has been significantly lacking is investments on state land,” Beck says. “Chugach State Park, the backdoor wilderness area in Anchorage, has received virtually no money for trails in the last ten to twenty years.” However, that changed with the CARES Act. The heavily eroded popular trail up O’Malley Gully in Chugach State Park was one of several projects

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Kayaks sit near a forest service cabin and dock looking over the mud flats toward the Pacific Ocean on an island near Wrangell. mlharing | iStock

funded with $546,000 set aside by the municipality for a public land jobs program, Beck says. “The Anchorage Assembly concluded that it was a smart decision to aim to achieve two goals with one action,” Beck says. “That was to put people back to work at a time when

many folks, especially people in the tourism industry, were out of work and to make an investment that would have a lasting contribution to our community's economy.” The trail building project created eleven new jobs and provided an investment for the tourism industry

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that can be leveraged once the nation begins to recover from the pandemic.

Exciting Projects on the Horizon Beck says there are many shovelready trail projects ready to be rolled out once funding is secured. These

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“As the Appalachian Trail example shows, when they [smaller trail systems] become part of this longer, branded, internationally-known experience, there is sort of this magic dust sprinkled on those routes. Now people go out of their way to find them.” Chris Beck, Coordinator, Alaska Trails Initiative

include the Angel Rocks Trail project in the Interior and the Iditarod National Historic Trail connecting Seward and Anchorage. But the Alaska Trails Initiative’s flagship project is The Alaskan Long Trail—the Last Frontier’s answer to the Lower 48’s Appalachian Trail. The goal is to create a single trail system linking Fairbanks to Seward, Beck explains. “As the Appalachian Trail example shows, when they [smaller trail systems] become part of this longer, branded, internationally-known experience, there is sort of this magic dust sprinkled

on those routes,” he says. “Now people go out of their way to find them.” Even if someone isn’t a thru-hiker, the attraction of hiking a section of an iconic trail system has significant draw for tourists, Beck says. Another shovel-ready project that is positioned to benefit from the CARES Act is the Mat-Su Convention & Visitors Bureau. In 2010 there was a feasibility study to look at relocating and rebuilding the Bureau after it had been nearly encompassed by the Mat-Su Regional Medical Center, decreasing visibility and access, Quill says.

Community leadership settled on the Gateway Visitor Center, to be built on the Glenn Highway between the Parks Highway interchange and Palmer. Mat-Su Convention & Visitors Bureau secured funding for the land, as well as approximately $2 million for the design of the center, which was done by Alaska-based Wolf Architecture; however, raising the $8.4 million needed for construction has been a struggle. “We've been looking for federal grants, and it's really heartbreaking that the pandemic created an opportunity,” Quill says. “We hired grant writers

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and submitted an application for an EDA [Economic Development Administration] CARES Act grant. The CARES Act really had a lot of funds for immediate relief for businesses, but the EDA grants were more of a longterm economic benefit, which this would provide.”

Connecting Tourists with Opportunities Successful visitor center design connects visitors to other experiences and opportunities within the community, Quill says. “So, within the interpretive plan and design, there's a little area that we

talk about our agricultural and Alaska Grown, but we then provide [visitors] with interpretive information, where they can go have those experiences, visiting a ‘you-pick’ farm or going to one of our local markets.” When the request for proposal for the design was put out, there was

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A stunning view of Alaska Range from Eielson Visitor Center in Denali National Park and Preserve.


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a huge response from architects, Quill says. “These are the kinds of projects that they really enjoy designing,” Quill says. “We had an advisory group of people from different organizations from our museums and historical societies and local businesses that provided feedback to the architects.” Ultimately, Wolf Architecture won the contract. Tourism infrastructure, such as a visitor center, needs to be able to create a bridge between the opportunities a place offers and the people wanting to experience them, explains Chris Whittington-Evans, an architect with Wolf Architecture. “It's done in part through digital means and methods, but the boots on the ground approach is still relevant and it really is still vital to visitors getting good information,” he says. “We had to, as designers, kind of take both of those approaches into consideration when looking at the Gateway Center.” Gary Wolf, also an architect with Wolf Architecture, says one of the reasons his firm was selected for the project was the team’s intimate knowledge of the area and what it has to offer to visitors. “We live out here, are involved in the development of local parks and trails through a trails foundation,” Wolf says. “We knew this area a lot better than our competitors.” Whittington-Evans points out that the premier trail system in the borough is across the Glenn Highway from the new center’s location. “The interesting thing about this particular opportunity is that it's not just about public lands or trails or whatnot. It's really trying to be as the name implies; a gateway to those trails but also to small businesses and nonprofits.” Once funding for the build is greenlit, a request for proposal will be put out for a construction contractor. “I don’t think there's anyone in Alaska who can specialize in constructing visitor centers but there are a myriad of qualified contractors who do great work,” WhittingtonEvans says. “We've designed it to be aesthetically pleasing and to capture the views of Chugach.” 60 | March 2021

Exit Glacier provides an exquisite background for those visiting or hiking in Kenai Fjords National Park. Eder Maioli | iStock

Given the site's proximity to Anchorage, Wolf and WhittingtonEvans expect to see many Anchorage contractors bidding on the project. While an Alaska construction company will likely be selected to do the build, the interpretive work inside the building will most likely be subcontracted to a firm Outside. “What will be a specialized aspect of this project is the exhibit design and fabrication and construction that will go into the interior of the project,” Wolf says. “For example, the graphical displays of the trail systems and three dimensional maps of the parks.” Wolf says there simply aren’t enough public dollars being spent on this type of specialty work in Alaska to keep a business focused on such creations in the black.

Public Lands Key for Recovery “All these amenities and outdoor attractions are tied to infrastructure

that boosts the tourism economy, so there are just more and more opportunities,” says Sarah Leonard, president and CEO of the Alaska Travel Industry Association. “The infrastructure is needed so that people can access, or have appropriate access, to our wild lands, into our waterways, into our park lands and public lands.” Leonard recognizes that the tourism sector’s recovery from the pandemic will likely be slower than originally anticipated. However, she says the industry will certainly play an important role in the state’s overall economic recovery. “Alaska has the most public lands of any state, by far,” WhittingtonEvans says. “We benefit from developing our public lands. And that includes the development of pathways to experiences. Experiences are what people pay top dollar for.”

Alaska Business www.akbizmag.com


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Construction Directory COMMERCIAL & INDUSTRIAL SUPPLIERS

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General contractor specializing in energy efficient remodeling and product sales. Seamless siding and gutters, windows, doors, and all remodeling. Material sales include: commercial and residential doors, windows, metal siding, and metal flashing.

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AIRSIDE SOLUTIONS Rick Lafferty, VP/Region Mgr. 2222 W. Valley Hwy. N., Ste. 140 Auburn, WA 98001 airsidesolutionsinc.com rlafferty@airsidesolutionsinc.com 253-833-6434 AirSide Solutions is a full line provider of Airfield and Heliport Lighted Navigation

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1978/1988 | 13/-

Janeece Higgins, CEO 5811 Old Seward Hwy. Anchorage, AK 99518 alaskarubbergroup.com info@alaskaruber.com 907-562-2200 AK’s largest supplier of hydraulic and industrial hose assemblies and associated products; specialize in fabrication/testing of wire rope, chain and synthetic slings for overhead lifting and rigging; supply and service fueling, lubrication and cleaning equipment. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

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John Horjes, Pres. PO Box 92688 Anchorage, AK 99509 alaskamaterials.com john@alaskamaterials.com 907-290-8031 Alaska Materials is a “direct ship” wholesale construction materials supply company. We serve all industries including oil, power, LNG, mining, marine, seafood, federal, state, tribal, and village projects. We specialize in full truckloads. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2017/2017 | 5+/1+

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ALASKA RUBBER GROUP

Traditional retail hardware store with core departments: tools, hardware, plumbing, electrical, paint, and seasonal products. Niche departments for barbeques and Kitchen Gadgets and accessories. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1949/1949 | 25/25

APHCO-AARON PLUMBING & HEATING COMPANY Tom Fisher, Pres./GM

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Mechanical contractor providing mechanical systems for the vertical construction industry within Alaska. Also specialize in the provision of utilities, fuel systems, rural Alaska scope and DoD projects. Commercial and industrial; DB and BB. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1982/1982 | 35/35

ARCHITECTURAL SUPPLY CO. Jennifer Mattingly, AHC/Pres. 3699 Springer St. Anchorage, AK 99503 jennifer@archialaska.com 907-561-1919 Supplier of division 8 and 10-commercial doors, frames, hardware, toilet partitions, and toilet accessories. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

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ARCTIC PIPE & UTILITIES 6320 Mackay St. Anchorage, AK 99518 jprotzman@alaskaff.com 907-232-6932 Insulated pipe and fitting, HDPE pipe fabrication, HDPE pipe fusion. Equipment rental sales service. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

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ARCTIC SOLAR VENTURES Jackie Savina, Pres. 2000 W. International Airport Rd., Ste. B3 Anchorage, AK 99502 arcticsolarventures.com company@arcticsolarventures.com 907-268-4188 Arctic Solar Ventures is Alaska’s premier solar energy company. Headquartered in Anchorage, Alaska, we specialize in both commercial and residential solar build and installation all across the Last Frontier. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2015/2015 | 10/10

AURORA CONSTRUCTION SUPPLY Dale Engebretson, Pres. PO Box 83569 Fairbanks, AK 99708 auroraconstructionsupply.com info@auroraconstructionsupply.com 907-452-4463 www.akbizmag.com

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2143 Standard Ave. Fairbanks, AK 99701 aaronak.com office@aaronak.com 907-452-3463

Specialty items in Division 10. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1978/1984 | 3/2

BEACON BUILDING PRODUCTS Rodney Larson, Branch Mgr. 8207 Hartzell Rd. Anchorage, AK 99507 becn.com rodney.larson@becn.com 907-349-6668 Commercial and residential roofing, windows, waterproofing, dampproofing, digital platform business enhancement. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1928/1950 | 8,150/10

BERING SHAI ROCK & GRAVEL Diane J. Shaishnikoff, Owner/Mgr. PO Box 196 Unalaska, AK 99685 beringshairock@gmail.com 907-581-1409 Native-owned and operated business specializing in the production and placement of high-quality rock materials, as well as providing heavy equipment rentals and services for any type of small or large construction project. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2004/2004 | 8/8

BROWN’S ELECTRIC Chip Brown, Pres. 1415 Spar Ave. Anchorage, AK 99501 brownselectric.com info@brownselectric.com 907-272-2259 For all electrical and lighting needs. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1959/1959 | 48/48

C & R PIPE AND STEEL Dennis Wilfer, Pres. 401 E. Van Horn Rd. Fairbanks, AK 99701 crpipeandsteel.com sales@crpipe.net 907-456-8386 C & R Pipe and Steel has the largest selection of low temperature pipe in Alaska. We provide a range of steel and pipe products for any project. For the largest inventory at affordable prices for pipe, aluminum, and steel in Alaska, think of C & R Pipe. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1992/1992 | 49/49

Alaska Business

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CABINET FEVER Kurt Vincent Echols, Pres. 8220 Petersburg St., Ste. 1 Anchorage, AK 99507 cabinetfever.net kurt@cabinetfever.net 907-349-4871 Commercial and residential custom cabinet shop producing high-end custom kitchen cabinets, counter tops, and installation as well as custom furniture, entertainment centers, reception desks, medical, dental and retail casework, store fixtures. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1999/1999 | 6/6

CARBERRY ASSOCIATES Tom Carberry, Owner PO Box 242563 Anchorage, AK 99524 carberryassociates@acsalaska.net 907-227-1598 Manufacturer’s representative for specialty, commercial building products. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1994/1994 | 1/1

DENALI DRILLING Ron Pichler, Pres. 8240 Petersburg St. Anchorage, AK 99507 denalidrilling.com 907-562-2312

Beth Bergh, Owner 18727 Old Glenn Hwy. Chugiak, AK 99567 doorsystemsak.com 907-688-3367

1200 E. 70th Ave. Anchorage, AK 99518 iltalaska.com sales@iltalaska.com 907-344-3383

Commercial/industrial/architectural doors. Modernfold Flat wall partitions and accordion partitions, skyfold vertical partitions. Rolling doors, grilles, shutters. Fire-rated rolling doors. McGuire dock equipment. Renlita. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Authorized dealers and repair centers for Advance floor care machines. CAT, Jungheinrich, Mitsubishi, Manitou, Maximal, Bendi and DREXEL forklifts; GEHL and Wacker Neuson construction equipment. Full parts, sales and service for most all makes and models.

2000/2000 | 10/10

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

ESI ALASKA (EQUIPMENT SOURCES INC.) Nick Ferree, VP 1919 Van Horn Rd. Fairbanks, AK 99701 esialaska.com FAI-Sales@esialaska.com 907-458-9049 ESI designs, develops, and builds quality, innovative worksite products for the oil, mining, construction, and ag industries. All of our products are Built Arctic Tough, designed to last, and tested in harsh environments. Alaska’s Kubota & JCB Dealer. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2000/2000 | 45/40

HALTNESS EQUIPMENT Erik Haltness, Mgr. 205 Meals Ave., PO Box 2989 Valdez, AK 99686 haltness.com contactus@haltness.com 907-835-5418

DDI provides geotechnical, environmental, mineral exploration, commercial water well and large diameter (8-foot) shaft drilling. We also drill, install tie-backs, and construct retaining walls. We have provided these services throughout Alaska since 1970.

Equipment and tool rentals and sales.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1970/1970 | 10/10

1987/1987 | 10/10

DIBBLE CREEK ROCK

HAYDEN ELECTRIC MOTORS

Cap Shafer, Pres. 34481 North Fork Rd. Anchor Point, AK 99556 dibblecreekrock.com office@dibblecreekrock.com 907-235-7126

Roger L. Saunders, Pres. 4191 Old Seward Hwy. Anchorage, AK 99503 Hayden-ak.com roger@hayden-ak.com 907-561-1073

We own a portable crushing plant and crush material in the Bush. At our home plant on the Kenai Peninsula in Anchor Point, besides crushing gravel, we also operate a wash plant and produce washed gravel products and also own a batch plant.

Sales, service, and rewinding of electric motors and generators and associated equipment. On-site service calls. Recertification of explosion-proof motors. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1959/1959 | 10/10

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1984/1984 | 40/40

DOOR SYSTEMS OF ALASKA 64 | March 2021

INDEPENDENT LIFT TRUCK OF ALASKA Wayne Dick, Pres.

1982/1982 | 15/15

K&H CIVIL CONSTRUCTORS Matthew P. Ketchum, Owner/Mng. Member PO Box 877037, Wasilla, AK 99687 khcivil.com matt@khcivil.com 907-373-4133 Public works civil general contractor (MatSu Borough) and construction aggregate supplier within the city limits of Wasilla (commercial and retail sales). Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2016/2016 | 10/10

KASSBOHRER ALL TERRAIN VEHICLES Dennis McGiboney, VP Sales/Mktg. 18460 SW 126th Pl. Tualatin, OR 97062 pistenbullyusa.com contact@pistenbullyusa.com 503-783-1935 PistenBully tracked utility vehicles and PowerBully tracked carriers. Up to 520 horsepower. Up to 18-ton payload. Ice road construction, snow removal, equipment transport, pull heavy sleds, personnel cabins, special use. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1969/1985 | 75/-

LIFEWATER ENGINEERING COMPANY Bob Tsigonis, Pres. 1963 Donald Ave. Fairbanks, AK 99701 LifewaterEngineering.com Info@lifewaterengineering.com 907-458-7024 We design and manufacture the onsite waste water treatment plants for the Arctic and beyond. These plants serve hotels, lodges, man camps and residential applications. We are the largest plastic fabrication shop in Alaska. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1998/1998 | 9/9

Alaska Business www.akbizmag.com


Stacy Stoltenow, VP 3116 Commercial Dr. Anchorage, AK 99501 mthousing.net office@mthousing.net 877-929-9902 Remote housing for mining, logging, construction, construction offices, industrial facilities, laboratories, field offices, dormitory buildings, office buildings, urban housing, shower and locker room facilities, medical facilities.

V TE VOTE: March 1-31, 2021

SCAN ME

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1995/2005 | 30/6

N C MACHINERY John W. Harnish, Pres./COO 6450 Arctic Blvd. Anchorage, AK 99518 ncmachinery.com 907-786-7500 Cat machine sales, parts, service, and rental. Cat engines for marine, power generation, truck, petroleum, and industrial applications. Sales and rental of Cat and other preferred brands of rental equipment and construction supplies. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1926/1926 | 1,050/200

NORTH WIND CONSTRUCTION SERVICES Brent Brooks, Pres. 2525 C St., Ste. 130 Anchorage, AK 99503 northwindgrp.com bbrooks@northwindgrp.com 907-290-8222 Heavy civil and vertical construction; site demolition and reconstruction; site work/ underground utilities; landfill closures; mine reclamation; floodplain, habitat, and water quality; sister company with Silver Mountain Construction & Weldin Construction.

PROVEN DEPENDABILITY, DELIVERED EVERY TIME At Crowley Fuels, we don’t just talk about dependability – we deliver it, every time. We serve industries across Alaska, safely and reliably delivering millions of gallons of high-quality fuel across Alaska and Canada. From small projects to large, we can help keep your business running smoothly. For the fuel partner you can depend on, contact Crowley Fuels.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2010/2012 | 1,650/91

NORTHSTAR SUPPLY Richell Carmichael, Owner PO Box 3637 Palmer, AK 99645 nssalaska.com info@nssalaska.com 907-357-1147 Alaska’s premier supplier of industrial construction materials specializing in calcium chloride, geotextiles, and erosion www.akbizmag.com

DIESEL • GASOLINE • LUBRICANTS PROPANE • HEATING FUEL • AVIATION FUELS

888.769.1995 • Crowley.com/AB

Alaska Business

March 2021 | 65

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MODULAR TRANSPORTABLE HOUSING


CONS TRUC TION SPECIAL SEC TION

environmental, construction, and oilfield operations.

control products as well as dust and ice control solutions. We are a local, woman owned company in Palmer, AK.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1934/2002 | 2,000/4

2017/2017 | 4/4

PACIFIC ALASKA LUMBER COMPANY Vint Jones, Pres. 9810 40th Ave. SW, Ste. C Lakewood, WA 98499 pacaklumber.com sales@pacaklumber.com 907-341-3500 Suppliers of construction and specialty products. Serving all industries in AK. All grades and species of lumber/timber/ply/ panels, treatment, EWP, GLB, metal, SIP, GEO, rigid foam, GWB, helical piers, HM doors/frames/hardware. Matting solutions. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2007/2007 | 4/1

PCE PACIFIC Scott Davis, VP Sales 4730 Business Park Blvd., Ste. H-18 Anchorage, AK 99503 pcepacific.com pcepacific@pcepacific.com 907-243-3833

SPECIALTY PRODUCTS Mike Brunke, AK Mgr. 1425 Spar Ave. Anchorage, AK 99501 specialty-products.com mikeb@specialty-products.com 907-276-7932 Manufacturer and distributor of polyurethane spray and pour foams, polyurea elastomer coatings, and application equipment. Solutions for oil and gas, mining, wastewater, building insulation, marine, and many other industries. Yearround 24/7 tech support. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1974/1974 | 29/3

SPILL SHIELD Lark Christensen, Ops Mgr. 2000 W. International Airport Rd., #D-1 Anchorage, AK 99502 spillshield.com lark@spillshield.com 907-561-6033

EMERSON-DeltaV Control System, SIS systems and SIL instrumentation, Fisher Valves, Anderson Greenwood and Crosby Safety Relief Valves, Rosemount Instrumentation, MicroMotion Flow Meters, wireless devices and systems.

Supplier for Smart Ash, Oil Away, Drug Terminator, and MediBurn incinerators. Absorbents, water scrubbers, oil spill response kits, Super Sacks, harbor boom, nitrile gloves, MicroBlaze, absorbent pads, rolls, boom, sock, duck ponds, spill kits, and more.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1983/1983 | 124/9

1992/1992 | 4/4

PUGET SOUND PIPE & SUPPLY CO.

STEELFAB

Scott English, AK Div. Mgr. 2120 Spar Ave. Anchorage, AK 99501 pugetpipe.com senglish@pspipe.com 907-277-7473

Richard Faulkner, Pres. 2132 Railroad Ave. Anchorage, AK 99501 steelfabak.com rfaulkner@steelfabak.com 907-276-4303

Alaska’s largest supplier of pipe, valves, and fittings to Alaska’s oil and gas markets. Two locations in Alaska: Anchorage and Kenai.

STEELFAB-Steel Source for Alaska. Fullyintegrated steel fabricator, service center, and coatings facility with the largest volume capacity in the state. Located in Ship Creek since 1948.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1917/1984 | 175/34

RAIN FOR RENT Paul Harrington, COO PO Box 1931 Kenai, AK 99611 rainforrent.com rharris@rainforrent.com 907-283-4487 Pump, tank, pipe, filtration solutions for 66 | March 2021

907-563-5630 Swagelok Alaska is your source for the highest quality fluid system products, solutions, and training in Alaska. Our endto-end quality system helps to guarantee consistent quality, each and every time. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1965/1965 | 10/6

YUKON FIRE PROTECTION SERVICES Matt Atkins, GM 5601 Silverado Way Anchorage, AK 99518 yukonfire.com matkins@yukonfire.com 907-563-3608 Fire and gas detection and suppression system design, supply, installation, and service. Alaska’s only representative of Detector Electronics. Kidde Fire Systems, Marioff Hi-Fog, Ansul, Tyco Fire Protection Products. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1978/1978 | 58/47

ELECTRICAL CONTRACTORS ARCTIC SOLAR VENTURES Jackie Savina, Pres. 2000 W. International Airport Rd., Ste. B3 Anchorage, AK 99502 arcticsolarventures.com company@arcticsolarventures.com 907-268-4188 Arctic Solar Ventures is Alaska’s premier solar energy company. Headquartered in Anchorage, we specialize in both commercial and residential solar build and installation all across the Last Frontier. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2015/2015 | 10/10

BROWN’S ELECTRIC

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Chip Brown, Pres. 1415 Spar Ave. Anchorage, AK 99501 brownselectric.com info@brownselectric.com 907-272-2259

1948/1948 | 48/48

For all electrical and lighting needs.

SWAGELOK ALASKA Tarek Sheira, Reg. Bus./Ops Mgr. 341 E. 56th Ave. Anchorage, AK 99518 alaska.swagelok.com info@alaska.swagelok.com

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1959/1959 | 48/48

DELTA CONSTRUCTORS Ed Gohr, CEO 351 E. 104th Ave. Anchorage, AK 99515

Alaska Business www.akbizmag.com


MAKE A

Delta Constructors specializes in construction management (estimating, planning, scheduling, and project execution), procurement, fabrication, and self-perform construction in support of the up-stream and mid-stream oil and gas and mining industries.

WITH

BIG

IMPACT

LARGE FORMAT PRODUCTS

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2007/2007 | 705/210

POWER & LIGHT

Fine Arts Artist Girdwood Alaska juleswolfe@icloud.com

Todd Houston, Pres. 7721 Schoon St., #4 Anchorage, AK 99518 powerandlight.biz powerlightak@gmail.com 907-522-5678 Commercial, residential, and industrial electrical installations. Automation, audio, video, CCTV security systems, fire detection and controls. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2004/2004 | 8/8

RAVEN ELECTRIC Dave House, Pres. 8015 Schoon St. Anchorage, AK 99518 ravenelectric.com info@ravenelectric.com 907-349-9668 Full service electrical company, residential commercial, industrial, and generators. Data, telecommunications, and security. 24-hour service.

• • • •

Vinyl Banners Fabric Banners Yard Signs Pull Up Banners (907) 277-2409 • www.colorartprinting.com 430 W. 7th Ave., Suite 10 Anchorage, Alaska 99501

Alaska PTAC offers FREE training to help government contractors. Check out our on-demand courses and live webinars at akptac.ecenterdirect.com/events

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1978/1978 | 22/22

SHERMAN TECHNOLOGIES Randy Sherman, Member PO Box 876476 Wasilla, AK 99687 shermantechnologies.com info@shermantechnologies.com 907-313-8100 Sherman Technologies is an Alaska Native-owned low voltage contractor servicing the state of Alaska. Our areas of expertise include communications, security, wireless, and audio visual in government, commercial, healthcare, education and industrial.

Assistance Alaska PTAC Offers: Register in vendor databases Apply for small business certifications Locate solicitation notices Specialized training for your business Keep informed of changes to government requirements

Alaska Procurement Technical Assistance

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2017/2017 | 25/25

SIEMENS INDUSTRY Dan Hart, Branch GM 5333 Fairbanks St., Unit B www.akbizmag.com

ptacalaska.org

We can help! Contact PTAC Today Anchorage: (907) 786-7258 Fairbanks: (907) 456-7830

PTAC is a program of the UAA Business Enterprise Institute and a member of the National Association of Procurement Technical Assistance Centers.

Alaska Business

March 2021 | 67

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deltaconstructors.net 907-771-5800


CONS TRUC TION SPECIAL SEC TION

Anchorage, AK 99518 usa.siemens.com daniel.hart@siemens.com 907-563-2242 Energy services company and system integrator, including automation/energy management control systems, fire alarm, HVAC mechanical systems, security (card access, CCTV, intrusion, etc.), mass notification systems, and electrical distribution. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1849/1982 | 351,000/95

GENERAL CONTRACTORS ABC Susan Ellison, Pres. 401 Driveway St. Fairbanks, AK 99701 akabc.com info@akabc.com 907-457-2221 General contractor specializing in energy efficient remodeling and product sales. Seamless siding and gutters, windows, doors, and all remodeling. Material sales include: commercial and residential doors, windows, metal siding, and metal flashing. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1995/1995 | 15/15

AHTNA CONSTRUCTION David M O’Donnell, Pres./CEO 110 W. 38th Ave., Ste. 100 Anchorage, AK 99503 907-929-5612 Pipeline and ROW maintenance, street and highway construction, electrical and mechanical services, rock and gravel processing, and water/sewer line installation. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1974/1974 | 250/225

AHTNA ENVIRONMENTAL Tim Finnigan, Pres. 110 W. 38th Ave., Ste. 200B Anchorage, AK 99503 aeiak.com 907-644-0760

AHTNA GLOBAL

ALASKA QUALITY BUILDERS

Tim Finnigan, Pres. 110 W. 38th Ave., Ste. 200J Anchorage, AK 99503 ahtnaglobal.com 907-569-8250

Karrol A. Johnson, Pres. PO Box 674 Willow, AK 99688 alaskaqualitybuilders.com akqualitybuilders@outlook.com 907-495-6200

AGL is an 8(a) and HUBZone subsidiary specializing in the execution of timesensitive, complex, and multifaceted environmental, construction, engineering, and professional services projects for government and commercial clients. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2016/2016 | 79/52

1994/1994 | 11/11

ALASKA CONCRETE CASTING

ALASKA SPECIALIZED CONSTRUCTORS

Dave Hanna, Mng. Member 5761 Concrete Way Juneau, AK 99801 alaskaconcretecasting@gci.net 907-780-4225 Precast concrete supplier, furnishing utility, traffic, and retaining wall products as well as custom casting, building panels, and foundation systems. Rebar fabrication and supply house stocking 20’ and 40’ bar. Detailing, bending, and cage tying. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2004/2004 | 6/6

ALASKA DREAMS Meini Huser, Pres./CEO 2081 Van Horn Rd., Ste. 2 Fairbanks, AK 99701 alaskadreamsinc.com sales@alaskadreamsinc.com 907-455-7712 Design, sales, and construction of fabric covered steel building and pre-engineered metal buildings. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1994/1994 | 30/30

ALASKA NATIVE RENEWABLE INDUSTRIES Edwin R. Bifelt, Founder/CEO PO Box 33 Huslia, AK 99746 edwin@anr-industries.com 907-687-2296

Specializes in the execution of timesensitive, complex, and multifaceted environmental, engineering, construction, and professional services projects for government and commercial clients.

Alaska licensed general contractor focused on renewable energy services and the engineering, procurement, and construction of utility scale solar PV ground-mount projects. Completed the two largest solar projects in rural Alaska to-date.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2010/2010 | 187/71

2017/2017 | 25/3

68 | March 2021

Residential and commercial construction: home building, warehouses and shops (any size), garages, decks, docks, and, of course, custom homes. “We Build Dreams.”

4485 W. Rangeview Dr. Wasilla, AK 99623 907-707-6316 Steel erectors, precast, welding. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2015/2015 | 5/5

ALBORN CONSTRUCTION Adam Alborn, Pres. 118 E. International Airport Rd. Anchorage, AK 99518 Albornconstruction.com info@albornconstruction.com 907-276-4400 Full service commercial and residential general contracting. Specializing in tenant improvements, building modifications, home additions, and renovations. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2001/2001| 7/7

APHCO-AARON PLUMBING & HEATING COMPANY Tom Fisher, Pres./GM40 2143 Standard Ave. Fairbanks, AK 99701 aaronak.com Office@aaronak.com 907-452-3463 Mechanical contractor providing mechanical systems for the vertical construction industry within Alaska. Also specialize in the provision of utilities, fuel systems, rural Alaska scope, and DoD projects. Commercial and industrial; DB and BB. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1982/1982 | 35/35

BC EXCAVATING Nathan Haines, Pres. 2251 Cinnabar Lp. Anchorage, AK 99507

Alaska Business www.akbizmag.com


Complete hauling and excavation services, environmental, water, sewer and storm utilities, site work, hydro excavation, GPS site mapping, and fabrication. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1982/1982 | 35/35

CADENCE GENERAL CONTRACTORS David DeRoberts, Mng. Member 700 E. 46th Ave. Anchorage, AK 99503 cadencegeneral.com 907-268-2051 Commercial construction. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2018/2018 | 50/50

CDF GENERAL CONTRACTORS Gary Murphy, Pres. PO Box 211586 Anchorage, AK 99521 cdfincak.com cdfincak@gmail.com 907-227-1102

Our outstanding management team specializes in providing design, pre-construction and construction services on all types of civil, commercial and industrial projects. The Federal Express Ramp Replacement at Anchorage International Airport is just one of our many projects. For a complete listing and more information visit our website www.rogerhickelcontracting.com 11001 Calaska Circle I Anchorage, Alaska 99515 I Phone 907-279-1400 I contact@rhcak.com

Tenant improvements, commercial, renovation, and repair of damaged buildings, new construction, and general contracting. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1983/1983 | 5/5

CHEMTRACK ALASKA Carrie Jokiel, Pres. 11711 S. Gambell St. Anchorage, AK 99515 chemtrack.net info@chemtrack.net 907-349-2511 Please check out our Statement of Qualifications at chemtrack.net/about_ us.htm. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1973/1973 | 20-30/20-30

COLASKA Jon Fuglestad, Pres. 4000 Old Seward Hwy., Ste. 101 Anchorage, AK 99503 colaska.com info@colaska.com 907-273-1000 Colaska is a heavy civil contractor and part of the worldwide Colas Group. Colaska’s operating companies cover all of Alaska and include QAP, Secon, Southeast Roadbuilders, Exclusive Paving, AGGPRO, www.akbizmag.com

Alaska Business

March 2021 | 69

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bcxllc.net 907-344-4492


CONS TRUC TION SPECIAL SEC TION

Emulsion Products Company, and University RediMix. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1999/1999 | 58,000/800

CONAM CONSTRUCTION Mike Colombie, Pres. 301 W. Northern Lights Blvd., Ste. 300 Anchorage, AK 99503 conamco.com 907-278-6600 General construction contractor specializing in design and construction of oil and gas facilities and pipelines, mining facilities, water and sewer facilities, and other remote infrastructure projects. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1984/1984 | 300/300

CONSOLIDATED ENTERPRISES INC. Destry T. Lind, Pres. 633 E. 81st Ave. Anchorage, AK 99518 ceiak.com dlind@ceiak.com 907-344-4567 Commercial roofing and commercial general construction. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1974/1974 | 53/53

CORNERSTONE GENERAL CONTRACTORS, INC. Joe Jolley, Pres. 4040 B St., Ste. 200 Anchorage, AK 99503 cornerstoneak.com ppantaleone@cornerstoneak.com 907-561-1993 General contracting utilizing collaborative project delivery methods for new commercial construction and renovation of existing facilities for Alaska’s leading organizations. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1993/ 1993 | 35/35

CRUZ CONSTRUCTION Jeff Miller, Sr. VP Ops 7000 E. Palmer Wasilla Hwy. Palmer, AK 99645 cruzconstruct.com 907-746-3144 Experts in resource development and heavy civil construction. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1981/1981 | 250/250

70 | March 2021

DAVIS BLOCK & CONCRETE Scott E. Davis, Pres. 36122 Ravenwood St. Kenai, AK 99611 davisblock.com info@davisblock.com 907-335-5106 Ready mixed concrete/concrete block, precast concrete, remote concrete, supplied statewide. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Chugiak, AK 99567 doorsystemsak.com 907-688-3367 Commercial/industrial/architectural doors. Modernfold Flat wall partitions and accordion partitions, skyfold vertical partitions. Rolling doors, grilles, shutters. Fire-rated rolling doors. McGuire dock equipment. Renlita. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2000/2000 | 10/10

1977/1977 | 50/50

DOYON ASSOCIATED

DAVIS CONSTRUCTORS & ENGINEERS

Warren Christian, Pres. 615 Bidwell Ave., Ste. 100 Fairbanks, AK 99701 doyonassociated.com 907-374-9130

Luke Blomfield, Pres./CEO 6591 A St., Ste. 300 Anchorage, AK 99518 davisconstructors.com admin@davisconstructors.com 907-562-2336 In Davis Constructors’ forty-plus year Alaska history, we have completed more than 300 projects totaling almost $2.25 billion throughout Alaska. We are currently performing work in Bethel, Clear AFS, Fairbanks, Anchorage, Eielson AFB, and Kodiak. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1976/1976 | 90/90

DELTA CONSTRUCTORS Ed Gohr, CEO 351 E. 104th Ave. Anchorage, AK 99515 deltaconstructors.net 907-771-5800 Delta Constructors specializes in construction management (estimating, planning, scheduling, and project execution), procurement, fabrication, and self-perform construction in support of the upstream and midstream oil and gas and mining industries.

Doyon Associated (DAL) specializes in arctic pipeline construction and associated infrastructure. DAL has an established presence in Alaska with offices in Fairbanks and Anchorage and shop/yard facilities in Fairbanks and Deadhorse. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2006/2006 | 200/200

DRAKE CONSTRUCTION Toby Drake, Pres. PO Box 338 Kotzebue, AK 99752 drakeconstruction.net tdrake@drakeconstruction.com 907-442-3512 Full suite general contractor including heavy civil, airports, roads, barge landings, pile foundations, site work, building demolition, sewer and water, barging for project or charter, and supply of aggregates and concrete. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1982/1982 | 45/45

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2007/2007 | 705/210

DIRTWORKS Owen “Scott” Johnson, VP 3255 S. Old Glenn Hwy. Palmer, AK 99645 alaskadirtworks.com dirtwork@mtaonline.net 907-745-3671 Excavation contractor. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1989/1989 | 20/20

DOOR SYSTEMS OF ALASKA Beth Bergh, Owner 18727 Old Glenn Hwy.

EKLUTNA CONSTRUCTION AND MAINTENANCE Richard Weldin, Mng. Member 10950 Mausel St., B1 Eagle River, AK 99577 eklutnainc.com 907-696-3838 Eklutna Construction & Maintenance (ECM) is an SBA 8(a) Certified federal government contracting firm. Additional subsidiaries of Eklutna, Inc.: Eklutna Services, Eklutna Sand & Gravel, and Eklutna Real Estate Services. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1972/1972 | 68/43

Alaska Business www.akbizmag.com


Jay Frawner, Pres. 8123 Hartzell Rd. Anchorage, AK 99507 frawnercorp.com frawner@frawnercorp.com 907-561-4044

COMMITTED TO SERVING ALASKA FOR

General contractor including building construction, remodel, HVAC systems, sewer, water, and storm systems.

OVER 70 YEARS

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2000/2005 | 48/45

O L E S .CO M

GRANITE CONSTRUCTION COMPANY Derek Betts, VP/Reg. Mgr. 11471 Lang St. Anchorage, AK 99515 graniteconstruction.com alaska.projects@gcinc.com 907-344-2593 Public and private heavy civil construction, design-build/alternative delivery, construction aggregates, recycled base, warm and hot mix asphalt, road construction, bridges, piling, mine infrastructure and reclamation and sitework. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

We all have a job to do to keep Alaska’s economy strong. Our clients are the ones improving state transportation infrastructure, expanding military facilities and building new commercial and residential buildings. As a law firm, our job is simple – help our clients find solutions to legal issues that arise at all stages of the construction process so the job can get done and our state can thrive. ALASK A

I

WA SHINGTON

I

CALIFORNI A

1922/1974 | 9,410/250

GREAT NORTHWEST John Minder, CEO/Pres. PO Box 74646 Fairbanks, AK 99707 grtnw.com info@grtnw.com 907-452-5617 Heavy highway civil construction, utilities, paving, landscaping.

ARE YOU READY? to take your construction company to the next level?

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1976/1976 | 250/250

H C CONTRACTORS Bill Hoople, Pres. PO Box 80688 Fairbanks, AK 99708 hccontractors.net bill.hoople@hccontractors.net 907-488-5983 Road and airport construction and paving, bridges, utilities, and concrete construction. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1993/1993 | 200/200

Bonding credit Bank financing Smart tax moves We have been trusted advisors to Alaskan contractors since 1994 helping grow their financial capacity to bid the work that builds Alaska.

HECTOR’S WELDING Ken Therriault, VP/GM 721 Finnel Dr. North Pole, AK 99705 www.akbizmag.com

Jim Meinel CPA, P.C. Construction Accountant Alaska Business

CALL TODAY

Learn how a construction accountant can be a valuable addition to your team of advisors.

907-258-2727 March 2021 | 71

CONS TRUC TION SPECIAL SEC TION

FRAWNER CORPORATION


CONS TRUC TION SPECIAL SEC TION

hectors@acsalaska.net 907-488-6432

(commercial and retail sales).

Steel sales, iron fabrication: 10’ shear and brake; roll, iron worker; burn table.

2016/2016 | 10/10

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

KIEWIT INFRASTRUCTURE WEST CO.

1956/1956 | 7/7

JAY-BRANT GENERAL CONTRACTORS Daniel Cope, GM 460 Grubstake Ave. Homer, AK 99603 jaybrant.com dcope@jaybrant.com 907-235-8400 Public works, military and commercial construction. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1983/1983 | 25/25

JD STEEL CO Scott Hamilton, VP 511 E. Steel Lp. Palmer, AK 99645 jdsteel.com ralvarez@jdsteel.com 907-746-6750 Fabrication and installation of reinforcing steel, fabrication and erection of structural steel, fabrication of miscellaneous steel, supply of concrete forming accessories. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1970/2002 | 500/50

K & W INTERIORS Dale Kaercher, Pres. 9300 Old Seward Hwy. Anchorage, AK 99515 k-winteriors.com knwinteriors@alaska.net 907-344-3080 K&W Interiors is a family owned business, providing Alaskans with fine quality interior finishes for more than thirty years. K&W was selected as one of the top 500 Remodelers in the nation by Qualified Remodeler magazine. From design to installation. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1985/1985 | 18/18

K&H CIVIL CONSTRUCTORS Matthew P. Ketchum, Owner/Mng. Member PO Box 877037, Wasilla, AK 99687 khcivil.com matt@khcivil.com 907-373-4133 Public works civil general contractor (MatSu Borough) and construction aggregate supplier within the city limits of Wasilla 72 | March 2021

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Pat Harrison, Exec. Area Mgr. 2000 W. International Airport Rd., #C6 Anchorage, AK 99502 kiewit.com 907-222-9350 Heavy civil construction including transportation, marine, dams, and resource development. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1884/1947 | 18,000 | 50-100

KLEBS MECHANICAL Mike Klebs, Pres./CEO 1107 E. 72nd Ave. Anchorage, AK 99518 klebsheating.com 907-365-2500 Mechanical plumbing, heating. Air conditioning, HVAC, sheet metal work. Residential, commercial, industrial, service. Design build, consulting, preconstruction services, construction services. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1986/1986 | 70/70

KNIK CONSTRUCTION Dan Hall, Pres. 6520 Kulis Dr. Anchorage, AK 99502 lynden.com/knik knikinformation@lynden.com 907-245-1865 Knik Construction specializes in complex, logistically challenging projects in hard-toreach places. We’ve been building highways, roads, bridges, airstrips, breakwaters, and more for more than 45 years. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1974/1974 | 172/170

KUCHAR CONSTRUCTION PO Box 770508 Eagle River, AK 99577 907-885-3111 General contractor. Commercial remodels, additions, new constructions, structural repairs. Churches, nonprofits, healthcare and dental, pre-engineered buildings, businesses offices, modular construction, residential housing authorities. Remote.

LOKEN CONSTRUCTION Tyler Loken 5400 Eielson Anchorage, AK 99518 lokenconstructionak.com tyler@lokenconstructionak.com 907-868-8880 Framing, steel, solar, and siding contractor. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2003/2003 | 25/25

LONG BUILDING TECHNOLOGIES Chris Bracken, AK Branch Mgr. 5660 B St. Anchorage, AK 99518 long.com alaskadispatch@long.com 907-561-3044 LONG Building Technologies engineers, secures, services, and automates systems in commercial buildings. Our services include security, CCTV, and card access systems, as well as energy audits, recommissioning, and building analytics. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1965/1976 | 450/40

MASS EXCAVATION Luke Blomfield, Pres./CEO PO Box 241093 Anchorage, AK 99524 massexcavation.com admin@massexcavation.com 907-771-9272 Mass Excavation was born out of a need for a responsive civil contractor capable of meeting the diverse range of services from large project development to more intricate building site improvement details. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2004/2004 | 41/41

MOBILE CONCRETE & GROUT OF ALASKA Terry Waschke, Pres. 11901 Toy Dr. Anchorage, AK 99515 concretealaska.com mcgalaska@gmail.com 907-349-0680 Stabilizing and raising buildings and slabs with compaction grouting. Remote concrete production and pumping. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2000/2000 | 6/6

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

NANA CONSTRUCTION

2010/2010 | 25/25

Fred S. Elvsaas Jr., GM

Alaska Business www.akbizmag.com


CONS TRUC TION SPECIAL SEC TION

PO Box 520788 Big Lake, AK 99652 nanaconstruction.com info@nanaconstruction.com 907-892-3383 Specializing in industrial and commercial fabrication and installation, camp design, constructability support, and longevity services. Full-service general contractor safely providing core services to Alaska’s mining and oil and gas industries. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2008/2008 | 320/320

NORTH COUNTRY BUILDERS OF ALASKA Thomas Smith, Pres. 3435 N. Daisy Petal Cir. Wasilla, AK 99654 northcountrybuilders.com tsmith@northcountrybuilders.com 907-373-7060 Commercial and residential general contractor for new, remodel, and all phases of construction. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1998/1998 | 3/3

NORTHERN DAME CONSTRUCTION Stacey Coy, Pres. 1600 W. Edlund Rd. Wasilla, AK 99654 northerndame.com stacey@northerndame.com 907-376-9607 Traffic control, traffic maintenance, flagging, certified flagger training, and traffic control plans. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1992/1992 | 7/6

OLHAUSEN CONSTRUCTION AND MANAGEMENT 510 W. 41st Ave., Unit B Anchorage, AK 99503 olhausenconstruction@gmail.com 907-830-1774 General contracting and subcontracts, construction management, carpentry, and labor. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2016/2016 | 5/5

ONE OF A KIND DESIGN Tami Taylor, Co-Owner 1601 Abbott Rd., Ste. 100 Anchorage, AK 99507 oneofakinddesignak.com toby@oneofakinddesignak.com www.akbizmag.com

Alaska Business

March 2021 | 73


CONS TRUC TION SPECIAL SEC TION

907-522-7350

and development.

907-279-1400

We specialize in creating fabulous, functional kitchens and baths. From timeless traditional designs to sleek contemporary spaces, every innovative interior we construct is customized to fit your space, lifestyle, and budget.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

General contractor; commercial construction vertical and civil work.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2012/2012 | 1/1

PACIFIC PILE & MARINE Wil Clark, CEO 4753 W. 80th Anchorage, AK 99502 pacificpile.com info@pacificpile.com 907-276-3873 Pacific Pile & Marine is a heavy civil marine contractor. Our portfolio includes waterfront structures such as marinas and breakwaters; dredging and capping; sheet pile shoring; cofferdams; rock sockets and anchors; drilling; marine demolition; drive rock sockets and anchors; drilling; demolition. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2008/2009 | 160/20

PRICE GREGORY INTERNATIONAL Robert Stinson, Sr. VP AK Division 301 W. Northern Lights Blvd., Ste. 300 Anchorage, AK 99503 pricegregory.com 907-278-4400 Pipeline, power, heavy industrial construction, EPC, and consulting services. Infrastructure construction services provider. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1974/1974 | 3,500/150

PRUHS CONSTRUCTION Dana Pruhs, CEO 2193 Viking Dr. Anchorage, AK 99501 907-279-1020 Heavy civil contractor, roads, airports, site work, underground utilities, industrial. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1958/1958 | 110/110

R H DEVELOPMENT Richard Harris, Pres./CEO PO Box 32403 Juneau, AK 99803 rhdalaska.net RHDevelopment@gci.net 907-790-4146 Residential and light commercial construction. Real estate development. All aspects of construction, land acquisition, 74 | March 2021

1992/1992 | 8/8

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

RAIN PROOF ROOFING

1995/1995 | 85/85

Brion Hines, Pres. 2201 E. 84th Ct. Anchorage, AK 99507 rainproofroofing.com info@rainproofroofing.com 907-344-5545

SMNC PROPERTIES

Specializing in residential and commercial roofing and waterproofing. Re-roofs, new construction, shingles, shakes, metal, built-up roofing as well as single-ply. We have a year-round dedicated repair and maintenance division. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1962/1962 | 89/89

REDPATH USA CORPORATION George Flumerfelt, Pres./CEO 16345 Lena Loop Rd. Juneau, AK 99801 redpathmining.com 907-789-3752 Mining contractor: development and construction, production mining, raise mining. Hydroelectric: penstocks, tunnel repair, grouting. Alaska projects: Pogo Mine, Kensington Mine, Allison Lake, Sitka Blue Lake, Eklutna-Chugach, Lake Dorothy AEL&P. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1962/1991 | 3,000/30

REMOTE ALASKA SOLUTIONS Seth Kroenke, Pres./Owner 600 N. Mount Pilot Cir. Palmer, AK 99645 remoteAK.com info@remoteAK.com 907-406-4545 We offer Concrete Building Solutions that defy Mother Nature. Specializing in ICF commercial, residential and hangar solutions for the ultimate in strength, disaster resilience, value, and energy efficiency. We’re Changing The Way Alaska Builds. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2012/2012 | 40/40

ROGER HICKEL CONTRACTING Mike Shaw, Pres. 11001 Calaska Cir. Anchorage, AK 99515 rogerhickelcontracting.com awright@rhcak.com

Susan Taylor, GM 840 K St., Ste. 200 Anchorage, AK 99501 stmnc.net estimating@stmnc.net 907-302-0750 SMNC Properties provides an array of services including general contracting, construction and project management, facilities maintenance support, environmental remediation, and dust control solutions. We are 8(a) and HUBZone certified. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2009/2009 | 33/10

SPINELL HOMES Charles Spinelli, Pres. 1900 W. Northern Lights Blvd., Ste. 200 Anchorage, AK 99517 spinellhomes.com spinell@spinellhomes.com 907-344-5678 General contractor: residential and light commercial construction. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1987/1987 | 25/25

STEELFAB Richard Faulkner, Pres. 2132 Railroad Ave. Anchorage, AK 99501 steelfabak.com rfaulkner@steelfabak.com 907-276-4303 STEELFAB-Steel Source for Alaska. Fullyintegrated steel fabricator, service center, and coatings facility with the largest volume capacity in the state. Located in Ship Creek since 1948. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1948/1948 | 48/48

STEPPERS CONSTRUCTION 6382 E. Beechcraft Rd. Wasilla, AK 99654 steppers-alaska.com aspen@steppersak.com 907-746-1880 Commercial and residential general contractor. Site work, septics, metal buildings, custom homes, hangars, commercial buildings, and more. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1982/1982 | 25/25

Alaska Business www.akbizmag.com


Jason Davis, Pres. 8241 Dimond Hook Dr., Unit A Anchorage, AK 99507 turnagain.build business@turnagain.build 907-261-8960 Turnagain Marine specializes in designing and building complex heavy marine construction projects, including large diameter socketing, rock anchors, offshore mooring, and heavy lift requirements. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2014/2014 | 35/35

UIC CONSTRUCTION Justin Jones, GM 6700 Arctic Spur Rd. Anchorage, AK 99518 uicalaska.com 907-762-0100

CONS TRUC TION SPECIAL SEC TION

TURNAGAIN MARINE CONSTRUCTION

WE ARE

NORTHWEST CARPENTERS UNION Representing the highest skilled and most productive craftspeople with a commitment to excellence.

Design-build, contractor assisted design dev. Remote logistics. Heavy civil const. Refrig. & augured piling foundations. Helical piers & piles. Trenching & excavating. Concrete & steelwork. Pre-engineered metal. Carpentry & finishing. Subcontracting.

General Carpenters • Millwrights • Insulators • Exterior/Interior Systems Trade Show • Millwork • Scaffold Erectors • Floor Layers • Piledrivers/Divers

nwCarpenters.org/build

opeiu8aflcio

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1978/1978 | 90/90

UNIT COMPANY Michael J. Fall, Pres. 620 E. Whitney Rd. Anchorage, AK 99501 unitcompany.com info@unitcompany.com 907-349-6666

Extensive Inventory, Statewide Delivery.

Commercial general contractor involved in all types of building construction including design-build, construction management, and design-assist. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1977/1977 | 38/38

WATTERSON CONSTRUCTION CO. Jim Watterson, Pres. 6500 Interstate Cir. Anchorage, AK 99518 wattersonconstruction.com info@wccak.com 907-563-7441 Watterson Construction Co. is a general contractor specializing in alternate delivery of commercial, medical, civic, education, warehouse, government, and military sectors. Services include: design/build, CM/ GC, CM@Risk, and design/bid/build. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

ONE STOP SOURCE: Locally owned and operated, we get the materials you need to where you need them, no matter how remote. WE FOCUS ON YOUR UNIQUE NEEDS for projects large and small. Customer service is our number one priority. -

SWPPP and Erosion Control Dust and Ice Control Asphalt Maintenance Geotextiles ADA Tiles Drilling Fluids 10788 E. Grandview Road, Palmer (907) 357-1147 I www.nssalaska.com

1981/1981 | 110/110

www.akbizmag.com

Alaska Business

March 2021 | 75


CONS TRUC TION SPECIAL SEC TION

WORLEY

EQUIPMENT DIRECT

Kelly Droop, VP AK Field Services/US O&M 949 E. 36th Ave., Ste. 500 Anchorage, AK 99508 worley.com 907-275-5100

L. Butera, Pres. PO Box 425 Willow, AK 99688 eqdirect.com info@eqdirect.com 907-696-7375

Full life-cycle engineering, procurement, fabrication, construction (EPC) and O&M, including full brownfield services, sustaining capital projects, TARs/ shutdowns, asset operations, maintenance builds and execution, commissioning/ decommissioning.

Construction equipment sales, parts, rentals. Morooka all-terrain crawler carrier dumper specialty parts and sales, 14K GWV tilt deck trailers, Japan origin machine parts. Established network of Japan construction and mining machines sales and parts.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1962/1962 | 60,000/450

2006/2006 | 1/1

HEAVY EQUIPMENT DEALERS

ESI ALASKA (EQUIPMENT SOURCES INC.)

AIRPORT EQUIPMENT RENTALS Jerry Sadler, Owner/Pres. 1285 Van Horn Rd. Fairbanks, AK 99707 airportequipmentrentals.com aer@aer-inc.net 907-456-2000

Nick Ferree, VP 1919 Van Horn Rd. Fairbanks, AK 99701 esialaska.com FAI-Sales@esialaska.com 907-458-9049 ESI designs, develops, and builds quality, innovative worksite products for the oil, mining, construction, and ag industries. All of our products are Built Arctic Tough, designed to last, and tested in harsh environments. Alaska’s Kubota & JCB Dealer.

AER has the largest and most diverse fleet across Alaska. With six locations providing rentals, sales, and service for the construction and oil and gas industries. AER has the expertise, inventory, and dedication to meet any of your equipment needs.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2000/2000 | 45/40

1986/1986 | 108/108

CONSTRUCTION MACHINERY INDUSTRIAL Ken Gerondale, Pres./CEO 5400 Homer Dr. Anchorage, AK 99518 cmiak.com 907-563-3822 Construction and mining equipment sales, rentals, service, and parts. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1985/1985 | 101/101

DELTA INDUSTRIAL SERVICES FAIRBANKS Rick Circle, GM 2630 Van Horn Rd. Fairbanks, AK 99709 deltaindustrial.com Rcircle@deltaindustrial.com 907-457-4577 Construction and agricultural equipment, sales, rentals, parts, and service. Volvo, Volvo-Penta, New Holland, LeeBoy, Gehl, Heatmeister, Major Wire, Clark, Manac.

HALTNESS EQUIPMENT Erik Haltness, Mgr. 205 Meals Ave., PO Box 2989 Valdez, AK 99686 haltness.com contactus@haltness.com 907-835-5418

6450 Arctic Blvd. Anchorage, AK 99518 ncmachinery.com 907-786-7500 Cat machine sales, parts, service, and rental. Cat engines for marine, power generation, truck, petroleum, and industrial applications. Sales and rental of Cat and other preferred brands of rental equipment and construction supplies. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1926/1926 | 1,050/200

SMS EQUIPMENT Steve Morico, Ops/Sales Mgr. 8895 King St. Anchorage, AK 99515 smsequipment.com smsonline@smsequip.com 907-275-3300 SMS Equipment is a leading dealership for the construction, forestry, mining, and utility industries, selling and servicing worldrenowned equipment brands including Komatsu. We are committed to providing solutions that increase efficiency and profit. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2008/2018 | 2,000+/8

WASHINGTON CRANE & HOIST Mike Currie, Pres. 940 Orca St. Anchorage, AK 99501 washingtoncrane.com sdick@washingtoncrane.com 907-336-6661

Equipment and tool rentals and sales.

Crane builders, crane design, new crane sales, new hoist sales. Material handling solutions for industry, hoists, jib cranes, work stations, chain falls, lever hoists, crane upgrades, crane maintenance, crane inspections.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1987/1987 | 10/10

1975/2008 | 35/8

LOKEN CRANE, RIGGING & TRANSPORT

YUKON EQUIPMENT

Tyler Loken 5400 Eielson St. Anchorage, AK 99518 lokencrane.com tloken@lokencrane.com 907-868-8880 Full service mobile crane, rigging, and transport operations. Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

2014/2014 | 5/5

Charles Klever, Pres. 2020 E. Third Ave. Anchorage, AK 99501 yukoneq.com Info@yukoneq.com 907-277-1541 Sales, service, parts, rental and lease equipment, including Case, Trail King, Elgin, Vactor, Oshkosh, Etnyre, Monroe, Trackless, and Snow Dragon. Anchorage, Fairbanks, and Wasilla locations. A subsidiary of Calista Corp.

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

N C MACHINERY

Year Founded/Est. in Alaska | Worldwide/Alaska Employees:

1997/1997 | 70/17

John W. Harnish, Pres./COO

1945/1945 | 45/45

76 | March 2021

Alaska Business www.akbizmag.com


CONS TRUC TION SPECIAL SEC TION


I

E N V I R O N M E N TA L

Study, Plan, Build

Executing quality projects while mitigating environmental effects

CIRI

By Julie Stricker

78 | March 2021

f you take a drive along the Steese Highway north of Fairbanks on a sunny summer afternoon, the landscape alternates between lushly forested hills and bare, twisting mounds of rock sprinkled with scrubby trees and brush on the valley floors. These mounds of rock, which sometimes extend for miles, are the result of gold mining using bucket dredges from the ‘30s to the ‘70s. These giant machines, some of which are still scattered among Alaska's historic placer mining sites, picked up the gold-bearing earth in huge buckets, sifted out the gold and dumped the tons of waste rock in long ropy strands behind it. Decades later, those lines of mine tailings are stark evidence of the industry, which at the time had no rules about reclaiming the land after mining. Times have changed. A few miles up the Steese Highway is a green, grassy hillside that was the site of another mine twenty years ago. True North mine was active between 2001 and 2004. Kinross, which operates the larger Fort Knox gold mine 7 miles south, produced 11.7 million tons of gold ore from the 2,050 acre site, which yielded 490,000 ounces of gold from the milling operations at Fort Knox. Before mining began, Kinross had submitted a site reclamation plan to the Department of Natural Resources. When mining operations ended, Kinross started remediating the site, 615 acres of which had been directly affected by mining operations. Over the next six years, the site was graded and recontoured, reseeded and fertilized, and all mining structures were removed. Native trees and plants were reintroduced. The site was then monitored for several years to ensure the landscape was stabilized. Today, it’s just another green, grassy hillside, “Which is the whole point of reclamation,” says Alaska Department of Natural Resources (DNR) spokesman Dan Saddler. In October 2020, DNR officially certified the completion of the True North reclamation. True North is one of the first—and the largest—modern hard rock mines on state land where operators have completed work, the state has accepted the operator’s

Alaska Business www.akbizmag.com


anything with the potential to affect water and air quality, wetlands, wildlife, cultural resources, and more. Julie Stricker

request to relinquish the land, and the land has been returned to the state for management consistent with current land use plans, according to DNR. "Alaska's founders knew responsible resource development was key to a secure and prosperous state, and our experience with True North shows that they were right," DNR Commissioner Corri Feige says. "The developers leased state land, produced a valuable commodity to serve global markets, employed Alaskans, and paid state taxes and royalties. When they were done, they remediated the effects of their work and returned the land to the state for its next use. The system works.” The "system" is a rigorous set of studies and requirements overseen by an alphabet soup of state and federal agencies designed to ensure development does not harm the environment and that if an area is disturbed during development, it is restored to as close to its natural state as possible after operations end or other mitigation processes are employed. It's a process that isn't confined to mining but applies to any development such as roads, pipelines, construction—

Fire Island Wind Fire Island is located about 3 miles from Anchorage in Cook Inlet. It is 5.5 miles long and home to eleven wind turbines that generate 17.6 megawatts of electricity. It is owned by Fire Island Wind, a subsidiary of CIRI. The wind farm came online in 2012, but the planning for it began years before. According to Suzanne Settle, vice president of energy, land, and resources for CIRI, the corporation

began looking at options for a commercial wind farm in the late ‘90s. She has been involved since 2009. CIRI had selected Fire Island as part of its land allocation under the Alaska Native Claims Settlement Act, and it proved to be a good place for the wind farm: it’s adjacent to Anchorage, but not in Anchorage; there’s no competing use for the land; and it’s offset enough from town that people didn’t get riled up about the turbines in view. In addition, Fire Island has reliable winds, is near the Railbelt power grid, and had minimal environmental factors. Minimal, however, certainly doesn’t mean none. Multiple permits and studies were required before, during, and af ter construction. That ’s where Midnight Sun Environmental came in. Brian Kovol, vice president of Midnight Sun Environmental, as well as the principal scientist and project manager, says a project with a primary-type of impact, like building in wetlands, has different requirements and mitigation issues than a secondary impact that may be related to dealing with contaminated water.

Central Environmental Inc. The Solutions Company - When experience meets ingenuity • Safe, cost effective solutions to the most challenging projects • From the Arctic to the Gulf Coast • Full facility removal, asbestos, remediation, waste management, demolition and site work

CEI I The Solutions Company

Locations: Anchorage I Fairbanks I Las Vegas I Los Angeles 888-876-0125 I www.cei-alaska.com I #centralenvironmentalinc www.akbizmag.com

Alaska Business

March 2021 | 79


A Pile of Permits

Tailings from the Woodchopper Dredge, which operated until 1960. The dredge and surrounding areas are a private inholding within Yukon-Charley Rivers National Preserve. News-Miner Archive

“Any project that size that deals with federal money or federal permits, you have to deal with the National Environmental Policy Act [NEPA] and get through that process,” he says. “It

really depends on the resource that’s being impacted. Some projects we cross fish streams. We have to mitigate for the impact for those resources so there isn’t an impact.”

Fire Island was one of the most challenging projects Kovol has ever worked on. “There were probably sixty different permits and authorizations we had to get for that project,” he says. “A lot of different stakeholders were involved.” Required permits include coastal zone; the US Corps of Engineers Section 404 permit that regulates the discharge of dredged or fill materials in water or wetlands; NEPA environmental assessments; and permits for potential impacts to bald eagles and endangered species, such as the Cook Inlet beluga whale. They also had to evaluate whether the project would impede operations at the nearby Anchorage Ted Stevens International Airport. Even after construction, surveys of bird mortality and bald eagle nests were required. After the project was built, more studies were done to establish the turbines’ actual impact on migratory birds. “In Fire Island’s case, it was really interesting,” he says. “There’s a major flyway over Fire Island and there was

Visual Cues in Advertising By Janis J. Plume, Senior Account Manager

I

t is cliche to say a picture is worth a thousand words. Yet, most successful print advertisements have a robust and appealing photograph that grabs the reader’s interest. The main reason is that most consumers are visual, and there are very few examples of successful ad campaigns that rely on copy only. Some people think that print and digital advertising is fleeting. The reality is these mediums have permanence, either ink on a page or pixels on a screen. What can be fleeting is the attention readers give to the ad. The eye scans, neurons fire, and the brain provides a moment of thought to the message. The visual imagery draws people in. Remember the cliche about first impressions? The image draws attention, and then people will read the copy. In Alaska Business, most ads identify Alaska visually - most advertisers portray a business activity taking place in our beautiful backyard. The most successful

ones are instantly identifiable as “that’s Alaskan!” Whether they’re transporting a piece of equipment across the Dalton Highway or flying a small plane through a mountain pass, ads that show Alaska are identifiable and relatable to the local business community. Alaska Business’ senior designer, Monica Sterchi-Lowman, sums it up, “Custom photography is critical when targeting local & regional markets, as it captures the local touches people identify with (and) brings authenticity and sincerity to your message.” Be careful to avoid relying too heavily solely on beautiful images. Anchorage-based ad executive, Carl Sollenberger, warns that there must be a balance between art and function in ad photography. He states, “There are rules in advertising, whereas in art there are no rules. The artist in everyone is going to have to give way to the practical when It comes to advertising. ”Photography is like the icing on the cake that draws people in, but the cake still has to taste good for people to come back again.

A smile is worth a thousand words Before joining Alaska Business, Janis was a ‘jack of all trades’ in Alaskan advertising for over two decades, working at some of Alaska’s best ad agencies. While he is pretty capable with a camera and loves photography and graphic art, he’s quick to say, “I’m not a graphic designer, and I don’t play one on TV.” He is, however, pretty handy at working one on one with clients seeking advertising solutions in Alaska Business. Janis is a product of the UAA JPC program and believes the pursuit of knowledge and professionalism are lifelong endeavors. When not helping advertisers, Janis celebrates his love for fish and music with a guitar in one hand and a fly rod in the other.

JANIS PLUME

907-257-2917 | janis@akbizmag.com

– SPO N S O R E D C O N T E N T–

80 | March 2021

Alaska Business www.akbizmag.com


a lot of concern early on that there would be a lot of impact based on what they’ve seen in the Lower 48. But what they actually found was there were very few birds being killed. Mainly we found out that when the weather’s bad, the birds don’t fly, so they’re only flying in fairly good weather and they could see the wind turbines.” Wetlands mitigation is a huge issue in Alaska because the state is threequarters wetlands, he says. Even the Eva Creek Wind Farm, the state’s largest, located on a mountain north of Healy, is on alpine wetlands. In Anchorage, there’s a methodology to deal with wetlands mitigation. It assigns a number of debits to a fill that vary depending on the quality assessed of that wetland. A fishery might mean a high assessment while a landfill in a low-quality wetland might be lower. Credits are assigned to offset that. Mitigation banks have been set up where developers pay a fee to someone to offset the mitigation. In Anchorage, that’s the Great Land Trust or Harmony Ranch wetlands bank. It’s

also possible no mitigation is needed for a project. “Those are the discussions that go on during the permitting process,” he says.

Also, the Airport Another difficulty with Fire Island was that project put big, tall towers right at the approach to the Anchorage airport. “You have these spinning turbine blades that are traveling at the speed of a propeller in a [Cessna] 172,” Kovol says. Radar operators tracking aircraft coming in and out of Anchorage kept seeing “stationary aircraft”— the turbines. “There was a lot of mitigation work that had to go into how to address that,” he says. “And it’s not just Anchorage International. You have aircraft coming into and out of Elmendorf. There was quite a bit of discussion. “You talk about mitigation, wetlands and fish, and certainly we did all of that, but this whole airspace issue and how to mitigate for that, how to turn off different little pixels on a radar

“I think there’s opportunity for future development and wind technology has improved and the cost has come down, so adding more turbines would be more costeffective.” Suzanne Settle, Vice President of Energy Land and Resources, CIRI

return to make them disappear so they weren’t causing problems for the aircraft controllers.”

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March 2021 | 81


so adding more turbines would be more cost-effective.”

Taking the Time

The True North mine site, which operated until 2004, before reclamation began. Kinross Alaska

Reclamation at True North was certified as complete in October 2020. Kinross Alaska

In addition, a major navigational aid for pilots was located on Fire Island. Dealing with that was one of the more difficult parts of the project, Settle says. “We had to convince the FAA to allow us, as a private contractor, to build a new navigational aid at the airport,” she says. The technology of the navigational equipment on Fire Island was outdated and due to be replaced, but not on the schedule CIRI needed to install the wind turbines. CIRI paid for the new installation at the airport. “We felt it was a good investment for us to have that device off the island,” Settle says. “That was certainly a huge challenge.” The move turned out to be a benefit for pilots, Kovol says. “If you’re an aircraft in bad weather, flying, trying to find the landing strip, you’re probably not going to want to fly to Fire Island, you’re going to want to fly to the airport,” he says. “But to get that done was a Herculean 82 | March 2021

effort. That was one of the major issues that had to be resolved with that project.” Because the population of beluga whales in Cook Inlet is listed as endangered, Kovol says they had to do a lot of modeling to make sure the project complied with the Endangered Species Act. They also had to take a look at how the project would affect a potential expansion of the Anchorage airport. “We’re putting transmission lines in the dog park that’s adjacent to Anchorage International. You’ve got a lot of user groups there that were impacted,” he says. “So there was a lot to pack and unpack with that.” Overall, CIRI has been very happy with Fire Island, Settle says. “I’m always so proud every time I see that project and remember how challenging it was,” she says. “I think there’s always lessons learned. I think there’s opportunity for future development and wind technology has improved and the cost has come down,

Embarking on any project that would fill or place materials in wetlands requires a process. Any federal permit that is issued is required to go through the NEPA process, and part of that NEPA process deals with avoidance, minimization, and mitigation measures. Timelines can vary greatly. In general, a basic Corps of Engineers permit is expected to take 120 days, but it frequently runs longer if there are questions from the agencies. On the other hand, sometimes it only takes half as long if the project is cut and dried. However, the process differs depending on the project size and how controversial it is. Permits for small projects are often approved quickly. Larger, generally popular projects such as Fire Island require an environmental assessment, which has public notice requirements and take one to three years. Other large projects that are more controversial, such as a major mine or gas line, must go through an Environmental Impact Statement process, which can take from two to ten years. With some very controversial projects, approval can take even longer. Kovol says Midnight Sun Environmental has been working on a project in Cordova, a 4.5 mile road to a new oil spill response facility at Shepard Point, which just received $40 million in funding. That project dates back to the 1992 Alyeska Consent Decree that designated funding for the facility in the wake of the 1989 Exxon Valdez oil spill. After more than sixteen years of studies by state and federal agencies, the final major permit, the 404 permit that is required for the discharge of materials into wetlands and water bodies, was issued. “There was a lot of controversy over building it and where it should be placed,” he says. “Ultimately, it took twenty years to get through that environmental review process and mitigate all of the concerns that were out there. That may be the longest project I’ve ever worked on.”

Alaska Business www.akbizmag.com


Photo credit: SLR

S

SLR Celebrates 20 Years in Alaska

LR International Corporation (SLR) is celebrating its 20-year anniversary – initially establishing U.S. operations in Washington State in 2000 followed with opening offices in Anchorage and Fairbanks in 2001. Throughout this time, SLR’s technical team and resources have been committed to providing responsive, technical solutions for our clients across multiple business sectors.

Originally focused on clients in the natural resource and upstream oil and gas sectors, the Alaska team has grown and expanded its compliance, permitting, emergency response and advisory expertise to cover clients in the power, infrastructure, and industry business sectors. With its team of 40 employees, SLR staff are adept at working in and understanding the environmental and regulatory complexities of working in the Arctic and cold region environments providing solutions for facility development, land development and restoration, community engagement and, increasingly, coastal management and resiliency planning at locations throughout the state.

SLR values client relationships. By focusing on the delivery of business solutions designed to address client needs, its services have steadily expanded and diversified to support clients address ongoing and emerging regulatory, reputational, and economic drivers. As an international, multidisciplinary consulting firm, the SLR team can apply expertise from its world-wide network to support Alaskan operations. These unique services available to Alaska clients include site selection and permitting, coastal resilience, water resource management, marine acoustics, public outreach and social engagement, and expertise in the broad field of environmental, social, governance (ESG). “We are absolutely committed to our team in Alaska,” comments Kevin Rattue who established SLR’s U.S. operations in 2000. “We will further expand our services to address the needs of our Alaska clients and, in doing so, expand our technical teams in Anchorage and Fairbanks through the recruitment of the professionals with proven abilities to deliver clientfocused services.”

AlaskaBusiness Profile

“Having worked in Alaska since 1990," Rattue continued, “I have witnessed how the business needs have shifted and how operational requirements have become increasingly complex. SLR’s team has continued to support our Alaska clients through these changing times. We recognize that the Alaska market is unique and we look forward to the next twenty years and supporting clients and the community.” SLR is an international environmental and advisory consultancy that provides technical service offerings to clients around the world through a network of 34 offices in the U.S. with over 70 global offices. Visit slrconsulting.com for more information on the SLR team and services.

Anchorage Office 2700 Gambell Street, Suite 200, Anchorage, Alaska, 99503 907.222.1112 slrconsulting.com


RESOURCE DE VELOPMENT

The Dotson Ridge resource is the highest grade NI 43-101 compliant heavy rare earth resource on US soil. The resource is open both at depth and on strike, indicating potential expansion. Ucore Rare Metals

Reaching H for Rare Earth

ave you used a cellphone, logged on to a computer, or watched a flat screen TV lately? If so, you’ve been using a device that requires rare earth elements (REEs). And while these elements can be found throughout the world, including in Alaska, most of the world’s production takes place in China, putting the supply chain for hundreds of products—as well as significant defense applications—at risk.

Alaska’s critical minerals— including rare earth elements—gain national attention By Vanessa Orr 84 | March 2021

What are Rare Earth Elements? Simply put, REEs are a set of seventeen metallic elements, including the fifteen lanthanides on the periodic table plus scandium and yttrium. According to the US Geological Survey news release "Going Critical," while the amount of REEs used in a product may not be a significant part of that product by weight, value, or volume, it can be necessary for the device to function. For example, REE magnets often represent

only a small fraction of a device’s total weight, but without them, spindle motors and voice coils in desktops and laptops would not be possible. “A number of these commodities are crucial for consumer electronics but also for alternative energy sources like wind turbines that have specialty magnets that require rare earth elements,” explains Steve S. Masterman, state geologist and director for the Alaska Division of Geological & Geophysical Surveys. “They are also used in military applications such as lasers and laser guidance systems, and GPS systems.” This is important because—despite the overwhelming need for REEs—in 2019 China produced approximately 90 percent of the world’s total output while accounting for 70 percent of the world’s exports, according to research firm Adamas Intelligence. This is a huge change from 1993, when 38 percent of REE world production was in China,

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33 percent in the United States, 12 percent in Australia, and 5 percent each in Malaysia and India. Other countries, including Brazil, Canada, South Africa, Sri Lanka, and Thailand, made up the remainder. The Chinese government determines the amount of the REEs that are produced and exported and can also limit the number of companies that export REEs from China. This is of particular concern to the United States, which relies heavily on those materials. “A few years ago, when China cut off the supply of REEs, it was a wakeup call for the US government,” says Masterman. “They realized that, ‘Holy moly, we are completely relying on China for an integral element that we need to run environmentally friendly power systems, military technologies, and even cellphones.’” The government compiled a list of significant elements that the United States sources from foreign markets. “The question then became, ‘How do we reduce our dependence on foreign supplies and stimulate domestic production?’” continues Masterman of the thirty-five critical elements that made the list. “It became the US Geological Survey’s responsibility to assess in what states these metals and minerals occur and to share that information with the public and industry.”

Good News for Alaska According to Masterman, of the thirty-five identified critical minerals, which include REEs, only three are considered unlikely to occur in economic quantities in Alaska. “Each of these generally occurs in a specific geologic environment, so if you understand the geology of the state and the mineral systems, you can identify areas where a particular critical mineral is likely to occur,” says Masterman. “For example, rhenium is very commonly found in the porphyry copper-molybdenum deposits, and the Pebble Mine area probably contains forty years’ worth of global rhenium demand. Massive sulfide deposits contain barite, and the Palmer deposit outside Haines includes barite in its economic analysis, which could be recovered for a saleable product. So, if www.akbizmag.com

you know where porphyry and massive sulfide systems occur, you have an idea where to look for rhenium and barite.” While the minerals are here, one of the issues facing those who would mine for REEs is how to make it a profitable enterprise. “When people think about the buzz surrounding critical minerals, what they need to realize is that many of them are not produced in vast quantities; for example, the US consumption of beryllium was 180 tons, which is almost nothing,” says Masterman. “The economics of mining some of these minerals are quite fragile, which is why many of these commodities are produced as a byproduct of mining other more economically substantial commodities,” he adds. The Red Dog Mine, for example, produces lead and zinc as its principal commodities, but could also benefit from recovering the byproducts of indium and germanium. “You would never produce indium and germanium as principal commodities as they are not primary economic drivers,” says Masterman, adding that some critical minerals—tin, chromium, cobalt—are. “But if you can find the gold, zinc, and silver deposits that host them, it makes the economics of their production more attractive.” While these established mines could profit from recovering critical minerals, there is also interest in creating new mines specifically geared toward REE production. These include a possible mine as part of the Bokan-Dotson Ridge REE project near the head of Kendrick Bay on the southern end of Prince of Wales Island, where engineering studies are underway.

First Things First According to Michael Schrider, Ucore Rare Metals’ vice president and COO, the company currently has two primary goals in Alaska: develop a processing and separation plant for REEs, followed by the development of the BokanDotson Ridge mine. “We envision the plant, called Alaska SMC, as the very first component for the Bokan-Dotson Ridge project, where we hope to ultimately develop a mine,” he says. “The Alaska SMC would enable us to import US-allied-sourced feedstocks and process them into made-in-theAlaska Business

“There is a little bit of a race going on right now in the United States; there is ore being mined in California, but it is being sent to China for processing. There are various plans in the works from different companies to create processing plants, but what differentiates us is that while there are plants being considered that focus on either heavy REE or light REE, we will have the ability to process both.” Michael Schrider, Vice President/COO Ucore Rare Metals

USA finished REE oxides, which would put us in revenue mode. “In the meantime, on a parallel track, we are continuing with engineering work behind the scenes to advance the mine to the point where we can get it to a near shovel-ready status, meaning that engineering is complete and permitting is well underway,” he adds. According to Schrider, the roughly $35 million Alaska SMC plant, which March 2021 | 85


Bokan Mountain's Dotson Ridge resource core shack has held approximately 8,000 meters of diamond drill samples in qualifying the resource. Ucore Rare Metals

“A few years ago, when China cut off the supply of REEs, it was a wake-up call for the US government. They realized that, ‘Holy moly, we are completely relying on China for an integral element that we need to run environmentally friendly power systems, military technologies, and even cellphones.’” Steven S. Masterman, Director, Alaska Division of Geological & Geophysical Surveys

86 | March 2021

will be located in the Ketchikan Gateway Borough, would be one of the first REE processing and separation plants in the nation. “There is a little bit of a race going on right now in the United States; there is ore being mined in California, but it is being sent to China for processing. There are various plans in the works from different companies to create processing plants, but what differentiates us is that while there are plants being considered that focus on either heavy REE or light REE, we will have the ability to process both,” he explains, adding that the Bokan deposit contains heavy rare earth elements, which, because they are less abundant, tend to be more valuable. To this end, in May 2020, Ucore acquired Innovation Metals Corporation and its separation technology, known as RapidSX. “This was a critical piece to ensuring economic viability of the Alaska SMC,” says Schrider. “Right now, we’re working to develop specific engineering based on RapidSX technology, which will help us to obtain funding.” Ucore is in discussions with AIDEA (Alaska Industrial Development & Export Authority) about some form of funding participation and is looking at other ways of raising the balance, including potentially taking advantage of Department of Energy loan programs as well as private financing. The goal is to have the Alaska SMC up and running by the end of 2023. The facility would create roughly two dozen jobs with the possibility of expanding beyond that number. While there is no set timeline for the development of the mine, the next phase of engineering studies is expected to be complete by the end of this year or the first quarter of 2022.

Alaska Benefits As interest in REEs grows, support is building on both local and state levels. “We’ve been in touch with Governor Dunleavy and he has been very supportive and has spoken publicly of the importance of REEs coming out of Alaska,” says Mark MacDonald, vice president of business development for Ucore Rare Metals. “He believes that Alaska could be an important strategic supplier of REEs and processing for the US market.”

Alaska Business www.akbizmag.com


According to Marleanna Hall, executive director of the Resource Development Council, having responsible REE development in the state would not only help already established mines but have far-reaching impacts for America’s security. “Our policy is to advocate to develop resources in responsible ways, including encouraging exploration and production of natural resources from existing deposits,” Hall says. “We support the development of mined materials that benefit Alaska with jobs and economic activity, and that could decrease dependence on foreign minerals. “We have a lot of different prospects, as well as six large operating mines and hundreds of placer mines and smaller operations that could help to provide what the nation needs going forward,” she continues. In addition to the jobs that new or expanded mines would create, Hall adds that such developments support infrastructure improvements as well. “When you have a resource development project in rural Alaska, you often see improvements in the related infrastructure in the area,” she says. “These projects not only provide family-wage jobs but have an impact on the communities through general improvements in infrastructure and access, such as increased broadband or upgraded transportation facilities.” She credits recent efforts by the Alaska delegation and Senator Lisa Murkowski to get critical minerals included in federal legislation. In January, thenPresident Donald Trump signed the Consolidated Appropriations Act of 2021, which included the American Minerals Security Act, sponsored by Murkowski. This act includes such key provisions as codifying the methodology used to designate minerals as critical; new requirements for geological surveying and resource assessments; streamlining certain regulatory review processes; and authorizing research and development for recycling and replacement. “Senator Murkowski has been an avid supporter and leader in not only passing legislation concerning critical minerals but in securing funding to do the work that is ongoing,” says Masterman. “Our own state www.akbizmag.com

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Alaska is an abundant source of minerals, metals, and rare earth elements. Steven Masterman

“In the short term, the best approach may be encouraging existing mines and development projects to produce the critical minerals they contain while advancing technologies to develop other mineral systems.” Steven S. Masterman, Director, Alaska Division of Geological & Geophysical Surveys

government has been very supportive of this work as well, with the current administration recognizing the value of mineral development in all forms.” This level of support is not a surprise. A McKinley Research (formerly McDowell Group) study commissioned in 2013 showed that the two-year construction of the Bokan mine alone would employ approximately 200 workers per year, with peak employment of 300. Annual payroll in 2013 was estimated at $20 million a year, with indirect and induced statewide employment equaling another 125 people with an addition payroll of $7 million. “This is based on the idea that the initial life of the mine is eleven years, but keep in mind that the extent of the mineral resource has not yet been defined,” says Schrider. “Based on 88 | March 2021

eleven years, the study indicated that we would create 190 jobs per year with a payroll of $20 million and indirect and induced statewide employment of another 150 jobs with benefits of $8 million. That’s quite significant.” There are also other areas of Alaska that contain critical minerals, including the Ray Mountains in northcentral Alaska, where Ucore holds claims; Trilogy’s Bornite deposit, which contains cobalt; and at Graphite One’s Graphite Creek project north of Nome. As interest in REEs and other critical minerals continues to grow, so will interest in the 49th State. “There’s not a huge push now from an exploration standpoint, but that’s mainly because these minerals are not as financially significant in terms of dollars on the table as other elements

like copper, gold, and zinc. If the United States is consuming 15 tons of gallium a year, who is going to go out and start a gallium mine?” says Masterman, adding that it is more likely that a company will search for zinc deposits and then assess those deposits for gallium. “In the short term, the best approach may be encouraging existing mines and development projects to produce the critical minerals they contain, while advancing technologies to develop other mineral systems. “But because critical minerals are of national interest, mining companies are starting to pay more attention,” he adds. “This might also change things on the permitting side; it might ease the permitting path for new mines because these are nationally recognized, important commodities.”

Alaska Business www.akbizmag.com


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A L A S K A N AT I V E

Pushing Boundaries ANCs find success investing beyond state borders By Vanessa Orr

90 | March 2021

internationally. To this end, many regional and village corporations have expanded their business holdings far beyond the 49th State, not only to provide a new source of revenue for their parent companies but to service clients across the country and the world. “If an ANC only does business within the state, the market is very limited,” says Josh Herren, president and CEO of Yulista Holding, a Calista Corporation subsidiary based in Alabama. “In some cases, you need to branch out to where the customers are in order to expand your business. “It can also expand the financial footprint of the organization, which opens doors for paying dividends, as well as providing jobs and other opportunities,” he adds. “It keeps t h e

co r p o r atio n a viable ongoing entity, which is the intent of ANCSA [Alaska Native Claims Settlement Act].”

Meeting Customer Needs Even with conference calls and Zoom, there’s still nothing better than being face-to-face with clients— especially when, in the case of Yulista, the “home office” is more than 4,000 miles away. Up until 2002, Yulista was mostly an Alaska-based company. Then it landed a large Army contract in Huntsville, Alabama, which it still holds to this day. “We moved our operational headquarters to Huntsville because our customer base got so big that it just made sense to have our operations here,” says Herren of the holding company that now has ten subsidiaries in twenty-eight different states. Of the company’s 2,000 total employees, 1,000 work in Huntsville with the rest distributed across the nation. The move also allowed the corporation to add efficiencies and to make better use of its workforce.

Alaska Business www.akbizmag.com

Yulista Holding, LLC

O

ne of the main goals of Alaska Native Corporations (ANCs) is to earn money for their shareholders. And while many have been very successful in starting and running businesses within the state’s borders, there are even more opportunities to be found nationally and


Yulista team members inspecting mission-essential equipment. Yulista Holding, LLC

“We had support employees in Alabama and some in Alaska, and they were doing basically the same work. Moving our headquarters to Huntsville not only allowed us to get closer to our customers but to become more efficient,” says Herren,

adding that a number of Yulista employees who remained in the state moved into jobs in the accounting and human resources departments at Calista Corporation. The move also enabled Yulista, originally a single subsidiary of Calista

known as Yulista Management Services, to diversify its services. “In the beginning, Yulista had just one big contract, and from a shared risk perspective, if that contract went away, there was concern about what would happen with both Yulista and

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Calista,” says Herren. “By diversifying the business, we could reduce our reliance on a single contract and generate more shareholder value.”

Embracing Expansion

At the Redstone Gateway in Huntsville, Alabama, Yulista has a 4,800-square-foot paint facility with a cross-draft recirculating paint booth. Yulista Holding, LLC

92 | March 2021

As village and regional ANCs grow, some seek to expand beyond Alaska’s borders. According to the Alaska Research and Development Council, in 2018, Bering Straits Native Corporation had twenty-five subsidiaries, from professional services to hardware retail to aerospace logistics services, and employed more than 1,500 people worldwide, with approximately 27 percent located in Alaska. Bristol Bay Native Corporation and its subsidiaries employed approximately 4,000 people worldwide, with 40 percent in Alaska. And Koniag Development Corporation, a wholly-owned subsidiary of Koniag, employed approximately 1,100 people in a dozen subsidiaries, 8 percent of whom worked in Alaska. Of NANA Regional Corporation’s 13,000 employees at operations spanning the globe, 32 percent held positions in Alaska. In many cases, one of the prime drivers of national expansion is ANCs’ ability to take advantage of the federal government’s 8(a) program, which gives them a foothold into government contracting. The program, which was created to assist small, disadvantaged businesses, including firms owned by ANCs, is designed to help these companies in gaining access to federal and private procurement markets through the award of sole source and set-aside contracts. “The 8(a) program and its set-aside contracts can provide kind of a kick-off point for ANCs to get into the business world and the government contracting world a lot faster,” says Herren, adding that Yulista, an aerospace defense contractor that provides Army aviation support, base operation support, and range maintenance, now receives more competitive contracts than direct awards. “We have certain advantages from a competitive standpoint to access new markets, and we’ve learned how to leverage that.” In some cases, ANCs choose to invest in already established companies, which can help to expand their reach into national and international markets. Alaska Business www.akbizmag.com


The Brice Family of Companies was purchased by Calista in July 2010 and is now known as Bilista Holding. While still based in Alaska, it includes a number of 8(a) companies that have a nationwide presence, including Brice Environmental, which runs logistically complex environmental and construction projects in rural and remote locations; Brice Engineering, which provides engineering, environmental consulting, and construction services; Brice Civil Constructors, which deals with marine, construction, and environmental remediation projects; and STG Pacific, which is involved in specialty foundations, vertical, horizontal, and heavy industrial construction. “When Calista bought our companies, one of the primary reasons was to get ready to train shareholders to work on the Donlin Mine project,” explains Sam Robert Brice, president of Bilista Holding. “At that time, it was thought that the mine was three to five years away, and here we are in 2021 with that same prospect. “In the meantime, Calista’s president and board of directors asked us to continue growing our business to support the growing shareholder numbers at Calista,” he continues, adding that when the company was purchased in 2010, Calista had about 13,000 shareholders. Today, that number totals more than 33,000 individuals. “Without the Donlin project, we knew that we had to find work outside of Alaska to meet that goal, so we started ramping up in 8(a) programs that offered opportunities out-of-state; at the time, we had four businesses, and we’ve since grown to ten, mainly utilizing 8(a) to grow inside and outside of Alaska.” While most of Bilista’s work is in the United States, one of its subsidiaries provides services in Kuwait and Germany, and they have been working on Wake Island in the Pacific for the past four years. “Some of the businesses are set up with permanent offices in states other than Alaska; Tunista Construction, for example, is based out of Tacoma, Washington, and Brice Environmental has offices throughout the United States,” says Brice. www.akbizmag.com

“We try to take our cultural aspects and bring them into Yulista. We are not suits in a conference room; we are Alaska folks that have a real personal tie to our organization, and we really communicate that to our teams in the states.” Josh Herren, President/CEO, Yulista Holding

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Brice Builders, an 8(a) construction company and subsidiary of Calista Corporation, is performing work at Tyndall Air Force Base, Florida, supporting the rebuild of the base after it was hit by Hurricane Michael in October 2018. The initial contract has a period of performance of two years and is valued in excess of $18 million. Jake Muirhead

Keeping the Connection

Calista subsidiaries Brice Civil Constructors and Tunista Construction teamed up to work on the 2020 McChord Runway Emergency Repair project in Tacoma, Washington. A decades-old culvert failed underneath the runway in early 2020, cutting it in half. Brice Civil Constructors won the job based on its rapid schedule-based design-build approach and opened the runway approximately thirty days ahead of schedule in December 2020. Justin Vena

94 | March 2021

With subsidiaries located all over the globe, it’s important to keep the lines of communication open. “I don’t check in with Alaska every day, but we do have a meeting about every two weeks with the executive members, and I talk to Calista’s President and CEO, Andrew Guy, quite often,” says Herren. “While we work at the direction of Calista to meet the needs of the shareholders, they let us operate pretty autonomously. We have a lot of freedom to run the business.” The companies are tied together financially, with subsidiaries sending profits to their parent corporation, which are then distributed as dividends or used to provide other types of shareholder support. In Calista’s case, having these out-of-state subsidiaries has been a win on both ends; Yulista and Bilista both provide jobs and job training to Calista shareholders, and Alaska Business www.akbizmag.com


“We try to actively develop a shareholder workforce, but it’s a little challenging when a number of our operations are outside the state… We are always looking for opportunities to bring on shareholders that are interested in the business and who are comfortable working inside and outside of Alaska.” Sam Robert Brice, President, Bilista Holding

both contribute financially to Calista’s bottom line. One of the only drawbacks is that since these subsidiaries are not located in Alaska, shareholder hire, which is an ANC priority, can be a challenge. “We try to actively develop a shareholder workforce, but it’s a little challenging when a number of our operations are outside the state,” says Brice, adding the Bilista does a lot of work in communities in rural Alaska to promote hiring. “We are always looking for opportunities to bring on shareholders that are interested in the business and who are comfortable working inside and outside of Alaska.” “We’ve definitely struggled with shareholder hire in the past; it’s a little difficult to get shareholders interested in coming to Huntsville, where there are snakes and spiders, and it’s hot and muggy,” says Herren, who is originally from Nenana. “There’s big difference between Alabama and Alaska.” www.akbizmag.com

Alaska Business

March 2021 | 95


Yulista employees donated 100 backpacks with school supplies to the Downtown Rescue Mission in Huntsville, AL. Each year, the company’s employee-led backpack campaign also provides 1,000 backpacks and school supplies to three schools in the Calista region as a way to strengthen ties with shareholders. Yulista Holding LLC

To interest more shareholders, Yulista began a robust internship program that allows young Calista shareholders to go to Huntsville in the summer to get a taste of what working for Yulista is like. “If they want to come back, the door is always open,” says Herren, noting that since the program’s inception, more shareholders work for the company now than in the past. One other difficulty caused by so much distance is keeping employees connected to their Native culture, as well as Calista’s corporate culture. To this end, the subsidiaries try to provide opportunities for employees to become part of the bigger picture. “We try to take our cultural aspects and bring them into Yulista,” says Herren, adding that a lot of the company’s employees are excited to 96 | March 2021

work with a group of shareholders that are Alaska-based and not Wall Streetbased. “We are not suits in a conference room; we are Alaska folks that have a real personal tie to our organization, and we really communicate that to our teams in the states.” Each year Yulista sponsors an employee-led backpack campaign to provide 1,000 backpacks and school supplies to three schools in the Calista region. “Our highest-performing employees get to fly to Alaska to deliver the backpacks, and they get to see firsthand what happens in the villages,” says Herren. “They come back and share their stories, and that keeps us tied to our shareholders. “While we may be in another state, we don’t forget where we came from,” he adds.

According to Brice, when Calista bought the Brice Family of Companies, he knew it would be a good fit. “We’re not a large corporate business, but a series of smaller, family-owned companies, and we felt that when we meshed with Calista, we would be able to keep that culture alive,” he says. “We’ve been able to stay who we are, and as we continue to grow, that’s the type of people we like to bring into the organization.” Even from far away, ANCs and their subsidiaries share a bond that many other companies—even those located much closer to each other—cannot replicate. “The shareholder element is a powerful piece; I consistently remind our team in Huntsville that there is a meaningful purpose behind what we do every day,” says Herren. “And the employees really rally behind it.”

Alaska Business www.akbizmag.com


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INSIDE ALASKA BUSINESS Craig Taylor Equipment | Dobbs Peterbilt Craig Taylor Equipment has acquired all of its Alaska Peterbilt assets from Dobbs Peterbilt. Formerly known as Western Peterbilt and now operating as Peterbilt of Alaska, the assets include branch locations in Anchorage and Fairbanks, equipment, and approximately forty employees. “Our business has been around for sixty-five years; we have a lot of deeply entrenched customers in Alaska, many of which are also Peterbilt customers— or could be. And so we think there’s a lot of synergy opportunity there that could be beneficial on both sides,” says Craig Taylor Equipment President and CEO Chris Devine. craigtaylorequipment.com | dobspeterbilt.com

Division of Oil and Gas The Alaska Department of Natural Resources Division of Oil and Gas issued a Mount Spurr Noncompetitive Geothermal Prospecting Permit in late December, giving Raser Power Systems, a Utah-based geothermal drilling company, the exclusive right to prospect for geothermal resources on about 6,750 acres of state land for two years. Developing geothermal resources beneath Mount Spurr would be in the best interest of the state, which should approve permits for such development. dog.dnr.alaska.gov

Municipality of Anchorage | Eklutna Marking a historic first event in Indigenous relations, the Anchorage Assembly adopted AO No. 2020137 (S) by a unanimous 10-0 vote to formalize into code government-to-

government relations between the Municipality of Anchorage and the Native Village of Eklutna. The ordinance was developed by a working group—which includes assembly members Christopher Constant, Forest Dunbar, and Kameron Perez-Verdia, Native Village of Eklutna (NVE) President Aaron Leggett, municipal attorney Jessica Willoughby, and North Star Group advisors—with assistance from tribal law and government affairs specialists, as well as NVE tribal members. Under the ordinance, MOA will create policies and protocols to institute a government-togovernment relationship with NVE. muni.org | eklutna-nsn.gov

thread thread, Alaska’s childcare resource and referral network, recently awarded $940,000 to 260 licensed early childhood and afterschool/schoolage education programs statewide as part of its COVID-19 Quality Initiative 2. thread partnered with The Alaska Community Foundation and the State of Alaska Department of Health and Social Services (DHSS) to address the continued needs of early childhood education programs during the pandemic with support from the COVID-19 Quality Initiative 2. threadalaska.org

APD The Anchorage Police Department celebrates 100 years of service in 2021. Anchorage had a modest beginning as a tent city on the banks of Ship Creek— originally called Ship Creek Landing— and law enforcement for the Alaska Territory at the time was in the hands of the United States Marshals. Today,

APD serves a population of more than 285,000 in a service area that covers the Knik River bridge on the north end to Ingram Creek on the south side. APD currently employs just under 600 people made up of both sworn and non-sworn positions. muni.org/departments/police

BLM | NPS | AIDEA The Bureau of Land Management, National Park Service, and the Alaska Industrial Development and Export Authority (AIDEA) signed agreements granting a 50-year right-of-way for the future construction of the Ambler Mining District Industrial Access Road. AIDEA Executive Director Alan Weitzner says, “The signing of this permit is a major milestone. It’s the first step in a multi-year phase of feasibility and pre-development. The permits are for a controlled industrial access road with stipulations that protect subsistence and environmental resources.” blm.gov/Alaska | nps.gov | aidea.org

CVRF | BBEDC Thirty communities, Coastal Villages Region Fund (CVRF), and Bristol Bay Economic Development Corporation (BBEDC) announced significant crab industry acquisitions to bring new revenue streams to Western Alaskan communities. The buy-out of the Mariner Companies, a Seattle-based fishing enterprise majority-owned by Kevin Kaldestad and Gordon Kristjanson, provides participating communities with opilio and red king crab quota, equaling 3 percent of the total crab fishery, while CVRF and BBEDC acquires full ownership of seven crabbing vessels. coastalvillages.org | bbedc.com

ECONOMIC INDIC ATOR S ANS Crude Oil Production  493,545 barrels  -1% change from previous month

ANS West Coast Crude Oil Prices  $56.47 per barrel  10% change from previous month

Statewide Employment  347,9351 Labor Force  5.8% Unemployment

1/31/21 Source: Alaska Department of Natural Resources

2/1/21 Source: Alaska Department of Natural Resources

12/1/21. Adjusted seasonally. Source: Alaska Department of Labor and Workforce Development

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Alaska Business www.akbizmag.com



RIGHT MOVES Denali Universal  Following Bob Kean’s retirement, Maria Bourne has been promoted to President of Denali Universal Services (DUS). Over the past five Bourne years as senior vice president of operations and chief financial officer, Bourne has been responsible for DUS’ financial management. Her responsibilities included supervising operational execution, assisting in company growth, facilitating development, and supervising internal management. Along with her bachelor’s in accounting from UAA, Bourne is a CPA and has spent more than a decade in senior financial management positions. Prior to DUS, she worked at KPMG, where her work focused on auditing, advisory, and valuation services.

Fidelity  Fidelity Title Agency of Alaska has hired Bob Manwaring as Client Relationship Manager. Manwaring was most recently Manwaring business development director for Taylored Restoration. His previous positions include more than three years as CEO of the Alaska Association of Realtors, four years as business development officer for Stewart Title of Alaska, and fourteen years as customer relations liaison with Alaska Multiple Listing Service.

NAC  Northern Air Cargo appointed Robbie Graham as its new HR Director. Graham

comes to NAC with sixteen years of HR experience at BP. Her professional career includes work in Indiana, Illinois, and Alaska, Graham supporting a variety of industries including retail and North Slope operations. She graduated from the University of Illinois with a master’s in human resources and industrial relations and possesses a bachelor’s in psychology and speech communication.

Northrim Bank Northrim Bank announced four new officers hired in Anchorage. Bond Stewart, VP–Loan Officer, Commercial Real Estate; Kyle Hernandez, Assistant Branch Manager, Float Team; Amanda Maly, Consumer Leader; and Jodie Stone, Assistant Branch Manager, West Anchorage Branch.  Stewart comes to Northrim Bank with thirty-two years of commercial and real estate lending experience throughout Alaska. He holds Stewart a bachelor’s in business management from UAA and is a graduate of the Pacific Coast Banking School. A lifelong Alaskan, Stewart has been a member of Rotary, Chamber, and the Small Business Development Center.  Hernandez joins Northrim with nine years of experience in the financial services sector, five of which have Hernandez been as a manager. He also has fourteen years of experience in retail sales. Hernandez has volunteered in many community events, including with the food bank and financial education events.

 Maly comes to Northrim with fifteen years of experience in banking, more than ten of those being in consumer and indirect Maly lending. A lifelong Alaskan, Maly has been part of the Get Real Financial Fair in past years.  Stone joins Northrim with twenty-two years of banking and leadership experience, working in retail banking and back office branch support. Stone She has participated in the annual Heart Walk and Relay for Life events.

KPMG Mike Fink has been promoted to Audit Partner and Christine Krysinski has been promoted to Audit Managing Director in KPMG’s Anchorage office. Fink and Krysinski are now responsible for audit quality and leading engagement teams in project execution. They both continue to act as role models who foster the firm’s culture by living the firm’s values, including serving clients with excellence and demonstrating a commitment to the developing the careers of KPMG professionals.  Fink joined KPMG in 2018 and has sixteen years of public and private accounting experience. He provides audit services Fink to both public and non-public companies, including telecommunications and Alaska Native corporations, and has extensive experience helping companies adopt new accounting standards. He is a

RIGHT MOVES IS BROUGHT TO YOU BY NORTHERN AIR CARGO

Stone

100 | March 2021

Alaska Business www.akbizmag.com


graduate of UAF and lives in Anchorage with his wife and daughter.  Krysinski joined KPMG in 2010. She provides audit and accounting advisory services to a variety of clients, including not-for-profit Krysinski organizations, state and local governments, fisheries-related companies, oil and gas, and Alaska Native corporations. She serves as the treasurer of the board of directors for Girls Scouts of Alaska and resides in Chugiak with her husband and two daughters.

UAF  UAF Chancellor Dan White appointed UAF School of Management faculty member Peggy Keiper to serve as Interim Athletic Director for Keiper the Alaska Nanooks. Keiper is an associate professor and director of the sport and recreation business program in the UAF School of Management. She has a doctorate in sport administration from the University of New Mexico. Prior to joining UAF faculty in 2017, she worked for nearly a decade in the sports industry, including sports tourism and the NBA’s minor league system, and as a college women’s basketball coach. She was national sales manager for the West Michigan Sports Commission, where she led the commission’s effort to generate economic spending to the Greater Grand Rapids Area and won bids to host six NCAA National Championships with Grand Valley State University and Calvin College.

Furie  Catherine Briner accepted an employment offer from Furie Operating Alaska as Office Manager. Briner’s

responsibilities include overseeing accounts payable/receivable and payroll. Briner brings with her more than forty years of Briner experience in finance and accounting with twenty-one years at iHeartMedia previously as finance lead/ business manager.  Hunter Van Wyhe has also joined Furie as Operations Engineer. In this role, Van Wyhe is working on engineering and geologic Van Wyhe assignments supporting Furie’s Kitchen Lights Unit asset in the Cook Inlet. Prior to joining Furie, Van Wyhe worked on oil and gas projects around the state, including Nenana Basin and North Slope exploration as field engineer for Fairweather. Van Wyhe is originally from Fairbanks and earned his bachelor’s degree from Louisiana State University in Baton Rouge.

Tlingit & Haida  Tlingit & Haida welcomes Cheryl Demmert Fairbanks as the newly appointed Associate Justice for Tribal Court. As an associate justice, Fairbanks Fairbanks serves on Tlingit & Haida's Supreme Court and hears all appeals of Trial Court or subordinate Court decisions. Fairbanks is Tlingit-Tsimshian and was born in Ketchikan. She obtained her bachelor’s degree from Fort Lewis College in 1969 and her juris doctorate in 1987 from the University of New Mexico. Fairbanks currently works in the area of Indian law as an attorney and Tribal Court of Appeals justice and serves as the senior policy advisor for the University of New Mexico, Native American Budget and Policy Institute.

RHC  Sean Hickel recently assumed the role of President at Roger Hickel Contracting (RHC). In this role, Hickel is involved Hickel in estimating, project management, business development, and the overall financial management of the company. Hickel joined RHC in 2010 working as an estimator and project manager. He has been in the construction industry his entire life and has had various roles in the field. He is a board member of the Association of General Contractors of Alaska. Hickel received a bachelor’s in business from Montana State University and is a lifelong Alaskan.

Littler  Littler has added Gregory S. Fisher as a Shareholder in its Anchorage office. Fisher was previously a partner at Davis Wright Tremaine. Fisher Fisher defends companies in complex litigation involving a wide range of labor and employment matters before federal, state, and appellate courts, as well as administrative agencies. In addition to his litigation practice, Fisher counsels on compliance with regulations impacting the workplace and provides guidance on developing workplace policies and compliance programs. He also provides workplace trainings required by federal and state agencies, including the Equal Employment Opportunity Commission and the Alaska State Commission for Human Rights. Fisher received his juris doctorate from University of Washington School of Law and his bachelor’s from State University of New York at Binghamton, Harpur College.

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www.nac.aero / Alaska Business

March 2021 | 101


ALASKA TRENDS

F

ew industries have been spared the pandemic’s disruptions and far-reaching effects. And fewer have a clear path to recovery. Fortunately for Alaska’s construction industry, there is some cause for optimism according to a recent report from the Department of Labor and Workforce Development. Construction projects across the state are a silver lining in an otherwise bleak year for Alaska’s economy. In Anchorage, real estate construction in particular is trending up, with the number of new home permits hitting a new high since 2015. Record-low interest rates mean refinancing opportunities are skyrocketing. Elsewhere in Fairbanks, a growing military population could result in an added boost to home construction and remodeling. And with the long-awaited rollout of a few promising vaccines, this month’s installment of Alaska Trends delivers news of a few other welcome developments.

2020 Recap

Wholesale 2%

Pandemic disruptions don't appear in first quarter employment data, but they were obvious by April. In the months that followed, job losses swept the state and left no major industry unscathed.

Construction 2% Information 2% Manufacturing 3% Financial 3% Other 4% Healthcare/Private Ed

4%

Oil & Gas

7%

Professional Services

7%

COVID-19 surged in Alaska later in the year, with total monthly cases more than doubling from October to November. For context, Alaska’s first 6,000 cases took nearly seven months to accumulate, but the state recorded 6,000 cases in the first nine days of December. Anchorage entered another “hunker down” phase for the entirety of December.

Government 9% Retail 9% Transportation/Utilities 13% Leisure & Hospitality

35%

Source: Alaska Department of Labor Workforce Development, Research and Analysis Section

2021 Employment Forecast Statewide By Industry Construction expected to see a slight uptick in employment from 2021.

20k 19k

4000

Construction 35k 30k 25k 0 2011

2013

2015

2017

2019

2021

3500

18k 17k

3000

16k

2500

15k 14k

0 2011

16k 14k 12k 10k 8k 6k 4k 2k 0

Mining & Logging

40k

2013

2015

2017

2019

2021

2011

2013

2015

2017

2019

2021

2019

2021

40k 35k 30k

Oil & Gas

Leisure & Hospitality

25k 0 2011

2013

102 | March 2021

2015

2017

2019

2021

2011

2013

2015

2017

Alaska Business www.akbizmag.com


Investments in Fairbanks After years of a shrinking population and economic stagnation, Fairbanks is beginning to recover. A regional hub, many of the businesses in Fairbanks remained open during the mandated shutdown. 2021 will be more about recovery than growth for industries that support construction projects.

$500 Million

6.7% Population Growth

The Air Force invested $500 million in 41 construction projects around Eielson. These projects include new hangars, a flight simulator, and a new school.

A growing military population will give the construction industry an added boost with new home construction and remodeling.

Investments in Anchorage Significant air cargo projects at the airport and work on the new cement dock at the Port of Alaska will begin in 2021. Highway construction, which is mostly federally funded, also looks promising.

$83 Million Bond

Increase in Home Sales

The $83 million bond package passed for the Anchorage School District boosted the 2020 construction season and will continue in 2021.

Anchorage home sales were up slightly through Sept. 2020. The average price rose in 2020 and refinancing skyrocketed with record-low interest rates.

5 Year High in New Home Permits Anchorage issued the largest number of new home permits in five years through October 2020.

Investments in the Southeast Investments in Alaska's coastal communities—such as new cruise ship docks—will eventually bear fruit with construction and mining expected to bounce back to pre-pandemic levels.

$15 Million Juneau anticipates winning a $15 million FAA grant this year for its ongoing airport terminal reconstruction project. www.akbizmag.com

Alaska Business

March 2021 | 103


AT A GLANCE What book is currently on your nightstand? I’m reading the new book by Brad Taylor, American Traitor: A Pike Logan Novel. What’s the first thing you do when you get home after a long day at work? I greet the family, give them hugs, help my wife with dinner, and then we gather around the table for our family dinner.

Images ©Kerry Tasker

What vacation spot is on your bucket list? I've never been to Europe, so I would just say anywhere in Europe. If you could domesticate a wild animal, what animal would it be? I'm not really a big pet fan, so I don't think I would [he laughs]. I guess if you could miniaturize like a giraffe or an elephant and have that as a pet, and it was about the size of a dog, that would be rather interesting.

104 | March 2021

Alaska Business www.akbizmag.com


OFF THE CUFF

Luke Blomfield L

uke Blomfield joined Davis Constructors & Engineers in 2002; by 2012 he was a partner at

the company, and he’s been the general contractor’s president and CEO for a little more than two years. Despite his upward movement and the more than two decades he’s spent with it, what he loves about his job remains the same. “I still think the favorite part of my job is what brought me to it: when we've completed construction of a building, an infrastructure project, or any sort of development that's going to be there long after I'm gone, it's nice to drive around town or different places throughout the state and just say, ‘Our team had a hand in building that.’” Alaska Business: What do you do in your free time? Luke Blomfield: The family and I, we go to the cabin quite a bit up in Willow, and there's plenty of summer and winter activities there; we're on a creek and we can fish, and play in the water, and in the winter we can snow machine, and snowshoe, and cross-country ski. AB: Is there a skill you’re currently developing or have always wanted to learn? Blomfield: I've been really trying to pick up golf—I need to get substantially better at it before I can, you know, play with the big dogs. AB: What’s the most daring thing you’ve ever done? Blomfield: I got an opportunity once to fish in the Brooks River right by Katmai with the bears, and I didn't realize that's where we were going at the time, so I ended up fishing next to all those grizzlies. I don't know if it was necessarily "daring," because I think it's pretty safe, but when you're fifteen feet to a big grizzly, or twenty-five feet, it spooks you a little bit. AB: What’s your favorite local restaurant? Blomfield: Club Paris: I tend to lean towards whatever their special is. www.akbizmag.com

AB: Other than your current career, if you were a kid today, what would your dream job be? Blomfield: I’ve been doing this since I was fourteen… If I won the lottery tomorrow, I'd probably take a longer weekend, but I'd still be at work the following Monday. So it's hard to say—I'm one of those people fortunate enough to really do what they love. AB: Dead or alive, who would you like to see perform live in concert? Blomfield: Billy Joel, preferably on a Saturday, not too late, about 9 o’clock. AB: What’s your greatest extravagance? Blomfield: Probably the biggest extravagance is just the cabin, and the toys, and fun things that we get there to keep the kids engaged. I think that's where the majority of our supplemental income goes is to develop that place. It's old— built in the ‘40s—so over the past six or so years we’ve been upgrading it and rebuilding it. AB: What’s your best attribute and worst attribute? Blomfield: I would say my best attribute is also my worst attribute: I can process things really quickly, however in doing so in a conversation, I tend to assume what someone's going to say next and quit listening while I develop a response.

Alaska Business

March 2021 | 105


ADVERTISERS INDEX Airport Equipment Rentals......................107 airportequipmentrentals.com

Delta Industrial Services............................37 deltaindustrial.com

Alaska529...................................................31 Alaska529Plan.com

Design Alaska.............................................55 designalaska.com

Alaska Executive Search-AES (BMG)........15 akexec.com

Equipment Source Inc. (ESI)......................89 esialaska.com

Alaska PTAC...............................................67 ptacalaska.org

First National Bank Alaska...........................5 fnbalaska.com

Alaska Railroad Real Estate Division..........27 alaskarailroad.com/real-estate

Fountainhead Hotels.................................42 fountainheadhotels.com

Alaska Traffic Company.............................63 alaskatraffic.com

GCI.............................................................29 gci.com

Altman Rogers & Co..................................95 altrogco.com

Great Northwest Inc.................................. 51 grtnw.com

American Heart Association.....................19 heart.org

Holmes Weddle & Barcott.........................73 hwb-law.com

Anchorage Chrysler Dodge......................25 anchoragechryslercenter.com

Inlet Energy ...............................................21 inletenergy.com

Anchorage Sand & Gravel (AS&G).............50 anchsand.com

Jim Meinel CPA PC.................................... 71 meinelcpa.com

Arctic Information Technology................... 7 arcticit.com

Logic Geophysics & Analytics LLC............91 logicgeophysics.com

Associated General Contractors (AGC)....55 agcak.com

Lynden Inc.............................................. 108 lynden.com

BSI Commercial Real Estate......................23 bsialaska.com

Material Flow & Conveyor Systems Inc.....56 akflow.com

Carlile Transportation Systems.................61 carlile.biz

N C Machinery...........................................47 ncmachinery.com

Central Environmental Inc. (CEI)...............79 cei-alaska.com

NANA Regional Corp.................................87 nana.com

Color Art Printing Inc.................................67 colorartprinting.com

NCB............................................................91 ncb.coop

Conrad-Houston Insurance Agency........12 chialaska.com

Nenana Heating Services Inc....................87 nenanahaetingservices.net

Construction Machinery Industrial (CMI).....2 cmiak.com

New Horizons Telecom Inc...................... 49 nhtiusa.com

Craig Taylor Equipment.............................45 craigtaylorequipment.com

NORTECH - ARCTOS Alaska.....................81 nortechengr.com

Valdez Convention & Visitors Bureau........................................................12 valdezalaska.org

Credit Union 1............................................13 cu1.org

Northern Air Cargo (NAC).............. 100, 101. nac.aero

Westmark Hotels - HAP Alaska...................3 westmarkhotels.com

Crowley Alaska Inc....................................65 crowley.com

Northrim Bank.............................................9 northrim.com

Yukon Equipment Inc................................33 yukoneq.com

Cruz Companies........................................57 cruzconstruct.com

NorthStar Supply LLC................................75 northstarsupplyak.com

Delta Constructors....................................93 deltaconstructors.net

Oles Morrison Rinker & Baker LLP............ 71 oles.com

106 | March 2021

Pacific Northwest Regional Council of Carpenters.................................................75 nwcarpenters.org Pacific Pile & Marine..................................99 pacificpile.com Parker Smith & Feek...................................39 psfinc.com PDC Inc. Engineers....................................73 pdceng.com PND Engineers Inc.....................................43 pndengineers.com Ravn Alaska................................................35 flyravn.com Roger Hickel Contracting Inc....................69 rhcak.com Shoreside Petroleum................................. 17 shoresidepetroleum.com SLR Alaska..................................................83 slrconsulting.com Span Alaska Transportation LLC................59 spanalaska.com Stellar Designs Inc.....................................95 stellar-designs.com The Plans Room........................................69 theplansroom.com Tikigaq/CONAM LLC.................................41 tikigaq.com TorcSill Foundations..................................53 torcsill.com Tri Jet Precision.........................................26 trijetprecision.com Tutka LLC...................................................58 tutkallc.com UA Local 375 Plumbers & Pipefitters...................................................77 ualocal375.org

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