Alaska Business September 2017 by Alaska Business

HEALTHCARE | PHILANTHROPY | ARCTIC | CONSTRUCTION September 2017 Digital Edition

SHARING

THE CATCH

Koniag CEO Dr. Elizabeth Perry

Plowing Through The Recession Alaska Native Regional Corporation Review

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September 2017 Digit al Edition TA BLE OF CONTENTS

DEPARTMENTS

FROM THE EDITOR EAT, SHOP, PLAY, STAY EVENTS CALENDAR RIGHT MOVES BUSINESS EVENTS INSIDE ALASKA BUSINESS ALASKA TRENDS AD INDEX

ABOUT THE COVER: Dr. Elizabeth Perry is Koniag, Inc.’s CEO. Her educational background is in anthropology, but early in her career she transitioned into professional consulting for regulatory compliance. Perry says, “I’ve personally found tremendous value in culture and heritage and legacy. Because of this I’m in strong alignment with the values of the corporation, the Board, and our shareholders.” Under her leadership and through the direction of the Board, Fiscal Year 2017 is Koniag’s fourth consecutive year of net income growth.

7 110 112 114 116 117 120 122

Cover Photo: @Judy Patrick Photography Cover Design: Art Director David Geiger

Alaska Native Special Section

ARTICLES CONSTRUCTION

Melvin (“Joe”) Cook, a NANA shareholder and electrician at Red Dog Mine.

Image courtesy of The Conservation Fund

Photo by Chris Arend, courtesy of NANA Regional Corporation

8 Aerial photo of the largest crane in the state of Alaska, standing 396 feet tall. The crane is being used to place heavy equipment into Eklutna River canyon.

8 | Deconstructing

50 | Alaska Native Regional

the Eklutna Dam

Corporation 2017 Review

18 | Summer 2017 Roadway

56 | Koniag CEO

Multiple agencies come together to remove obsolete structure By Jessica Rohloff

Corporations plow through recession with continued shareholder, community support By Julie Stricker

Construction Round-Up

Dr. Elizabeth Perry

FINANCIAL SERVICES

58 | Alaska Native

Highway, roadway, and runway improvements By Kathryn Mackenzie

22 | Millennial Homebuyers Young buyers partial to home ownership, home-buyer education, online resources By Tracy Barbour

‘Sharing the catch’ By Tasha Anderson

Healthcare Organizations Collaborating to provide quality healthcare statewide By Tom Anderson

66 | Alaska Native Village Corporations

From oil and gas to tourism, Alaska Native Village Corporations vital to Alaska economy Compiled by Tasha Anderson

72 | Cultural Education in Alaska

Helping Alaska Native students find the path to success By Richard Perry

80 | 2017 Alaska Regional

Native Corporation Directory

84 | 2017 Alaska Regional

Village Corporation Directory

Alaska Business Monthly | September 2017 www.akbizmag.com

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S e pte m b e r 2 017 Digit a l Edition TA B L E

O F

C O N T E N T S

Photo by Barry Jenkins

ARTICLES

26 The inside of the new Shockwave trampoline park in Anchorage. The owner converted the former Northway Mall OfficeMax into the indoor park.

REAL ESTATE

26 | Alaska’s New Mall Tenants Local malls bring national options to Alaska consumers By Sam Friedman

TRANSPORTATION

32 | Moving to Rural Alaska: It Takes a Village

Methods for moving cargo to the bush By Garrison Wells

TELECOM & TECH

40 | Building Alaska’s Telecommunications

Telecom upgrades improve Internet speed, reliability statewide By Tracy Barbour

HEALTHCARE

46 | Employee Wellness Programs

Image courtesy of Matanuska Telephone Association

A healthy workforce gets the job done By Tom Anderson

ARCTIC

88 | Ongoing Activity in the Arctic

National and international interest and activity increase By Garrison Wells

OIL & GAS

92 | Innovation Keeps North Slope Oil Flowing

Technology reduces costs, increases safety, yields results By Julie Stricker

PHILANTHROPY

98 | Anchorage Museum Expansion

Looking back, building out, moving forward By Tasha Anderson

SMALL BUSINESS

102 | Alaska’s Increasing Fitness Options

New ideas and new facilities available statewide By Tasha Anderson

TOURISM

104 | Visiting Hughes

New group offers eco-immersion tours of traditional Athabascan culture By Kathryn Mackenzie

CORRECTIONS

40 Matanuska Telephone Association fiber pedestal.

In the July Best of Alaska Special Section on page 44 Advanced Physical Therapy was spelled incorrectly. Advanced Physical Therapy’s Facebook page is: https://www.facebook.com/AptAKAnchorage/. On page 69 the image of Great Harvest Bread Co. was taken by Carleen Dawn. In Hazardous Waste Disposal in Rural Alaska originally published in the August 2017 issue Nate Kruk was incorrectly referred to as General Manager of Total Reclaim. Jake Sneddon is Total Reclaim’s general manager in Alaska. The article also incorrectly said Seattle-based Total Reclaim collects PCB ballasts. The company collects non-PCB ballasts. The corrected version of this article may be found on our website and in the digital edition of Alaska Business.

Alaska Business Monthly | September 2017 www.akbizmag.com

FROM THE EDITOR VOLUME 33, NUMBER 9 Published by Alaska Business Publishing Co. Anchorage, Alaska EDITORIAL STAFF Managing Editor Kathryn Mackenzie 257-2907 editor@akbizmag.com

Associate Editor Tasha Anderson 257-2902 tanderson@akbizmag.com Art Director David Geiger 257-2916 design@akbizmag.com Art Production Linda Shogren 257-2912 production@akbizmag.com Photo Contributor Judy Patrick 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 Advertising Account Manager Janis J. Plume 257-2917 janis@akbizmag.com Advertising Account Manager Holly Parsons 257-2910 hparsons@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 501 W. Northern Lights Boulevard, Suite 100 Anchorage, Alaska 99503-2577 (907) 276-4373 | Toll Free: 1-800-770-4373 Fax: (907) 279-2900 www.akbizmag.com Editorial email: editor@akbizmag.com ALASKA BUSINESS PUBLISHING CO., INC. 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; Fax: (907) 279-2900, ©2017, Alaska Business Publishing Co. All rights reserved. Subscription Rates: $39.95 a year. Single issues of the Power List are $15 each. Single issues of Alaska Business are $3.95 each; $4.95 for October, and back issues are $5 each. Send subscription orders and address changes to the Circulation Department, Alaska Business, 501 W. Northern Lights Boulevard, Suite 100, Anchorage, Alaska 99503-2577. Please supply both old and new addresses and allow six weeks for change, or update online at www.akbizmag.com. Manuscripts: Email query letter to editor@akbizmag.com. Alaska Business is not responsible for unsolicited materials. Photocopies: Where necessary, permission is granted by the copyright owner for libraries and others registered with Copyright Clearance Center to photocopy any article herein for $1.35 per copy. Send payments to CCC, 27 Congress Street, Salem, MA 01970. Copying done for other than personal or internal reference use without the expressed permission of Alaska Business Publishing Co., Inc. is prohibited. Email specific requests to editor@akbizmag.com. Online: Alaska Business is available at www.akbizmag.com/ Digital-Archives, www.thefreelibrary.com/Alaska+Business+Monthly-p2643 and from Thomson Gale. Microfilm: Alaska Business is available on microfilm from University Microfilms International, 300 North Zeeb Rd., Ann Arbor, MI 48106.

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Alaska Native Corporations Strengthen Communities and Economy in the Last Frontier

he Alaska business community does not exist without Alaska Native regional and village corporations. Since their inception more than forty-five years ago, Alaska Native corporations have contributed billions upon billions of dollars to the state’s economy through a vast variety of endeavors; from oil and gas, construction, and real estate to resource development and tourism, there are very few industries that are not touched by Alaska Native companies and their subsidiaries. A few months ago I was fortunate enough to participate in a tour of Hughes, a small Interior village north of Fairbanks where community leaders worked for more than a year to conceptualize and launch their own tourism company called Koyukuk River Tribal Tours (KRTT). “This business is an important step to grow our economy, employ our community members, enhance our tribal services, and move away from our reliance on federal funding. We’ve finally reached this important milestone with the arrival of our first tour group and we remain committed to seeing this business succeed for years and decades to come,” says First Chief Wilmer Beetus. The group says the village has big plans for KRTT eventually including resort-style accommodations and tours to the local hot springs and gold panning. KRTT is designed to introduce visitors to the Koyukon Athabascan way of life through several days of total cultural immersion. As a tribally owned- and operated-business, KRTT has set itself apart by stressing the importance of its connection to the land and water that sustain this subsistence-based community. In 2016, the twelve operating Alaska Native regional corporations reported gross revenue of about $8.2 billion, down slightly from $8.5 billion in 2015. Given the challenges most businesses in Alaska are facing as the state waits for oil prices to rebound, it’s a testament to the corporations’ strong leadership and business savvy that their revenue has remained relatively flat (and in the billions), even in a down economy. The continued success of the Alaska Native regional corporations, villages, and communities can also be attributed to their creativity (as in the case of KRTT), utilization of shareholders as a resource, business-line diversification, and in some cases, knowing when to pullback. In this issue of Alaska Business, we celebrate these accomplishments and highlight the many ways in which Alaska Native companies and communities are finding success and continuing to look to the future. (Check out our story on the Eklutna Dam removal on page 8.) Also in the September issue of Alaska Business, we feature the Anchorage Museum’s newest expansion, introduce some of the latest exercise facilities to hit Alaska, and talk about how Alaska Native healthcare organizations are working to keep their communities healthy. September is also the month in which we hold our annual Top 49ers celebration where we honor the Top 49 Alaskan-owned businesses—many of which are Alaska Native corporations—as ranked by gross revenue. Don’t miss the Top 49ers Special Section in our October issue! Thank you to the entire team at Alaska Business for putting together another amazing lineup of top notch articles for your enjoyment. Read on!

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—Kathryn Mackenzie, Managing Editor, Alaska Business www.akbizmag.com

September 2017 | Alaska Business Monthly

CONSTRUCTION

Image courtesy of Eklutna Inc.

Workers descend 300 feet to the worksite located in a canyon bed.

Deconstructing the Eklutna Dam Multiple agencies come together to remove obsolete structure By Jessica Rohloff

ecades after it became obsolete and was abandoned, the lower Eklutna dam is finally being removed. Construction is ahead of schedule, under budget, and expected to be complete this fall. But it may only be the first step of a two-part pro8

cess, and part two could prove to be more difficult. “The project is moving faster and going better than anyone expected,” says Brad Meiklejohn, Alaska state director for The Conservation Fund. “Because it’s gone faster, we’ve been able to stay under budget.” One of the ingredients that has contributed to the success of the Eklutna dam removal project was careful planning. The planning stage alone took fifteen months, according to Sam Barber, construction manager for Eklutna Construction and Maintenance, the company contracted to remove the dam. That time was spent evaluating different scenarios for tearing down the dam in a way that is

both safe and cost-effective. “There have been a lot of challenges, but it [has] gone way faster and better than we expected, and, because it [has] gone faster, it’s been able to stay under budget,” says Meiklejohn. “We had a limited amount of money, and we said, ‘Hey, let’s see if we can pull this off with the time and money that we have.’” So far, so good.

Eklutna Construction and Maintenance Planning began in January 2015 and was finalized by February 2016, allowing preconstruction to begin. The Conservation

Alaska Business Monthly | September 2017 www.akbizmag.com

Aerial view of the large crane used to lower equipment to the deconstruction site. Image courtesy of Eklutna Inc.

Fund raised $7.5 million for the project and contracted with Eklutna Construction and Maintenance for the work. Because Eklutna Construction and Maintenance is a wholly-owned subsidiary of Eklutna, Inc., the Alaska Native Corporation that owns the land on which the dam resides, “They’re motivated [and] have a lot of skin in the game,” Meiklejohn says. “They’re being very creative and responsible, finding the most cost efficient ways to do the work.” This is not a typical worksite. Workers must descend 300 feet down into the canyon to reach the work site. To accommodate this, a 400-step aluminum staircase was constructed to allow workers to get in and out of the canyon. During pre-construction, the crew removed trees from the canyon and put structures in place for emergencies. A helicopter pad was built, as well as a floodplain in www.akbizmag.com

the event workers need to get to high ground in a hurry. There are additional factors complicating the deconstruction: the dam is constructed of seventy feet of century-old concrete, and because concrete continues to harden after it cures—even underwater—this particular concrete presents even more difficulties for those removing it. By late July, workers had removed the top six feet of the dam. This part of the job was especially slow-going because the top ten feet of the dam are reinforced with rebar. The original plan was to use hydraulic chippers to break apart the concrete dam, but that wasn’t going as quickly as planned. So workers began drilling holes in the dam and filling them with a substance that expands overnight to crack the concrete. The material is similar to spray foam insulation used in

residential homes, but it’s strong enough to break 100-year-old concrete and is completely inert (so it does not impact water quality). The next step for the workers is to install pipes to divert water that’s coming through the dam around the worksite, so the sediment removal and concrete-breaking cycle can continue. In order to get bulldozers and other heavy equipment down into the canyon, project managers employed the services of the largest crane in Alaska. The crane was initially slated to be used at a different job site this summer, but Barber says they expect to have it back around the middle of September. It should take six to eight weeks to chip the dam down and prepare the riverbed so fish will be able to make passage “if and when there is more water,” Barber says. When the crane comes back, it will be to

September 2017 | Alaska Business Monthly

take equipment back out of the canyon— work is expected to be complete sometime this fall.

Images of the lower Eklutna dam.

Map courtesy of The Conservation Fund

Images courtesy of The Conservation Fund

Map of the “plumbing” of the Eklutna River valley.

Sediment Management When the lower Eklutna dam was decommissioned in 1955, it began to fill up with silt, sand, and gravel. To remove the concrete dam, the crew has to deal with seventy years’ worth of built-up sediment. None of the sediment is being removed from the canyon. Instead, it is being relocated so that the construction team can expose the dam face and chip it apart. The crew is working on the upstream side to push sediment back and over the top of the dam. “It’s kind of an ongoing ballet to expose segments of the concrete itself,” Meiklejohn says. Significant thought went into sediment management because “we don’t want a gigantic slug of sediment going downstream as the dam is removed,” Meiklejohn says. “There are still five species of salmon in the lower river, so one goal of sediment management is to avoid inundating their habitat.” To be safe, The Conservation Fund hired a consulting firm to conduct a sediment transport analysis, since today there is infrastructure that did not exist when the lower Eklutna dam was built. As part of the conditions for one of the five permits needed for this project, infrastructure monitoring must be done. If sediment changes the hydraulics of any of the bridges downstream, it’s likely that someone will have to come in and dredge the channel. However, that is a relatively unlikely scenario because only ten cubic feet per second of water currently moves through the river. At that rate, it will take a very long time to wash away the sediment plug. This should give the entire ecosystem—both fish and infrastructure—plenty of time to adapt. Sediment is, of course, important to fish habitat. “The idea was that if we remove the dam, sediment would be allowed to return to the aquatic system,” says Amanda Heath of the US Army Corps of Engineers. “Right now the Eklutna River doesn’t have a great deal of gravel for fish to utilize for habitat.” It’s a condition experts call a “sediment starved system.” When the dam is removed, the fish habitat should be healthier. That said, without an increase in the volume of water in the river, “there’s no certainty that additional fish habitat would form” and support the fish that are in the system, says Heath. A Dream Made Reality “Removing a dam is a big deal,” Heath says. “You’re asking for the environment that’s already adjusted to having this dam go back to life without it.” That’s a big change but a welcome one for many involved in the Eklutna dam project. There’s been talk of taking down the lower Eklutna dam for decades. The Native Village of Eklutna even tried to raise money for the project in 2002. They inherited the obsolete dam through ANCSA in the 1970s, by which time the dam had already been abandoned by its previous owners.

Alaska Business Monthly | September 2017 www.akbizmag.com

hen the City of Kodiak recently replaced its antiquated 1960s Channel Transient Float facility, it opted to solicit design-build proposals seeking a single entity—a design builder—to design and construct its new facility. “We wanted to make the project as economical as possible and take advantage of the opportunity for designers and builders to work together on the same team,” says Kodiak Harbor Master Lon White. Kodiak retained Amanda Wilson, president of Windward Project Solutions, to help initiate the project. Together, they devised a RFP that spelled out the owner’s preferences and goals, along with performance-based specifications. The RFP served as evidence that the project was “shovel-ready,” aiding the grant application process. “Design-build is a project-first mindset where meeting the performance criteria is of equal interest and value to the design builder as it is to the owner,” Wilson says.“Clear expectations in a welldefined contract serve as the basis for getting what you want.” The RFP sought to identify a proposal that would provide the best value based on the proposer’s technical response and price. Turnagain Marine Construction was selected as the design-builder,

working with AJD Engineering as the designer and Transpac Marinas as the float builder. The team finished the facility in record time. “A mere four months after [the] contract award, the project is complete and the float is operational,” says Traci Stark of Transpac Marinas. “The project was delivered on time and below the owner’s budget with no change orders or cost escalations.” The end product is a very heavyduty, high-quality float system. Its design incorporated simple but new concepts that should have a long design life. “We will look at using the design concept for future float replacement projects,” White says. “We are confident the design-build approach was the most cost-effective and efficient way to do the project.” Kodiak’s project is a prime example of how design-build can be more advantageous than design-bid-build or low-bid project delivery, which are more prevalent in Alaska. Design-build gives owners a greater chance of receiving a high-quality product. “The contractor is building a design that he helped develop,” says Allen Danskine of AJD Engineering. “It’s a design he is comfortable with and will work well with his particular skill –

PAID

A DV ERTISEM ENT

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set. And since he helped develop it, he wants it to work.” Additionally, design-build reduces the owner’s risk and enables quicker delivery and better cost efficiencies since the contractor and designer are constantly working together. “All of the parties have a greater stake in the project,” says Jason Davis, President of Anchorage-based Turnagain Marine. “Owners get more certainty of having a successful project and less chance of costs overruns and changes. They get the highest possible overall value.” For more information about the benefits of design-build project delivery, contact Turnagain Marine or visit the Design Build Institute of America’s website at www.dbia.org.

Turnagain Marine Construction Jason Davis, President 8241 Dimond Hook Dr. Unit A Anchorage, Alaska 99507 (907) 261-8960 www.turnagain.build

Work continues on the Eklutna dam removal. Images courtesy of The Conservation Fund

Alaska Business Monthly | September 2017 www.akbizmag.com

Aerial photo of the largest crane in the state of Alaska, standing 396 feet tall. The crane is being used to place heavy equipment into the canyon. Images courtesy of The Conservation Fund

In fact, according to Charles Cobb, dam safety engineer for the Alaska Dam Safety Program, this particular dam may have been obsolete even before it was replaced in 1955. “It wasn’t a good place for a hydroelectric project in the first place,” Cobb says. “The old dam was built down in a canyon and quickly filled up with sediment.” For that reason alone, it may have been functionally obsolete long before it became officially so. “We were happy to see it go,” Cobb says. “It was of no value to anybody and it was out of service.”

The Permit Process Seen from the outside, it’s not too much of a stretch to call this project a miracle of bureaucratic efficiency. A massive project that was originally expected to take ten years to www.akbizmag.com

September 2017 | Alaska Business Monthly

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complete, in fact only took two; and securing the five different permits required to get the work done was no small feat. “The permit process went well because of the level of support we had from all the state and federal agencies involved,” Meiklejohn says. He goes on to say the idea “wasn’t completely unknown to the state and federal agencies.” So when The Conservation Fund proposed to do it, “the constellation of state and federal government was right there. We had a lot of support from all the agencies involved, which was super helpful, especially on the state side.” Although the group didn’t need permits from all of the agencies involved, they did need to communicate with all stakeholders in order to move forward. As Heath with the US Army Corps of Engineers points out, “there are a lot of moving parts. A lot of communication is involved in this process, which takes time. But in this case it worked pretty efficiently.” Much of the time it takes to prepare a permit is spent collecting environmental and scientific data. In this case, the US Army Corps of Engineers and the Native Village of Eklutna had already collected much of that data and provided “stacks and stacks of environmental studies” to the consulting firm that helped The Conservation Fund navigate the permitting process, which helped expedite the process greatly.

A Unique Dam Project According to Heath, “Alaska doesn’t take down dams every day”—making this project unique from the start. Meiklejohn points out, “This is the first dam removal for The Conservation Fund.” He’s already encouraged other people in the organization to cast around for similar projects. “We’re having a lot of fun with this project and looking to do more of this kind of work.” Another aspect that’s unique about the Eklutna dam removal is that no state or federal money is being used for the project. “That’s been the hardest part of my job,” Meiklejohn says, “to raise money. We’re not done yet.” He made a strategic decision to stay away from state and federal money, “just to make the project go faster. When you involve state and federal money there’s various strings attached. You’re tied to those budgets, and they have long budget cycles, so you’re in to multiyear appropriations, which is why a lot of these big dam removals have taken decades. You get the money in fits and spurts, and we just decided we’re going to short circuit that and take a different approach.” The dam is also technically a historic property and eligible to be on the National Register of Historic Places. The project required a historic evaluation of the dam and approval from the State Historic Preservation Office before it could move forward. “Basically we’re taking out a historic structure, so we have to mitigate that removal,” according to that office. In this case, historic mitigation comes in the form of a digital archive. Eklutna, Inc.

Alaska Business Monthly | September 2017 www.akbizmag.com

is building and will host a website to display and preserve all the documents related to the dam including photos, environmental and historical documents, and videos.

The Native People The people of the Native Village of Eklutna have endured a past filled with challenges, Meiklejohn says. “They’re the largest landowner in Anchorage, and people are beginning to recognize how much the Eklutna [people] have done for the community over the last hundred years.” “That village was put there because of the salmon resource,” which the dam negatively affected. “I’m sure they weren’t consulted, but that’s the way business was done,” Meiklejohn says. It’s easy to “get into the axe grinding of history, but it’s more meaningful to focus on the fact that we’re putting that behind us and doing something good,” he continues. Eklutna, Inc. CEO Curtis McQueen agrees: “We prefer to be proactive and lead with carrots rather than sticks. Our belief is that it won’t be productive for us to focus on the past, complaining about what happened and that the dam is there.” “In some ways I think things are coming full circle,” McQueen continues. “A dam that was built without our permission is coming down, and it’s physically being taken down by us. We get to be the ones to take it down, even though we didn’t put it up in the first place… We are the aboriginal people,” says McQueen. “We’re the ones this project is for,

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and we provided a lot of real estate for infrastructure. We know a city needs drinking water, electricity, and all the things that utilities do. We appreciate those.” With the dam being removed, McQueen says, “We are in the early processes—with a lot of different stakeholders and a tremendous amount of help—we’re going to study how much water is needed to make that river whole again.”

A 400-step aluminum staircase was built to access the worksite in the Eklutna River canyon. Image courtesy of The Conservation Fund

What Happens Next? McQueen believes the river will require several years of rehabilitation once the dam is removed. “There will be studies of salmon habitat and discussions with the utilities and [the] City of Anchorage about trying to get some water back into the watershed.” Once the lower dam is removed an instream flow study will be conducted. The goal of the study is to “figure out exactly how much water needs to be restored to that river to maintain natural processes and support the salmon,” says Meiklejohn. When the old dam is removed, there is enough water “coming past the dam right now to let some fish get up past. If you make sure they don’t have rubble in the way—and I think the construction crew is going to do a good job of that—the fish will be able to pass upstream and lay their eggs,” says Rick Sinnott, former Alaska wildlife biologist. “There is some rearing habitat upstream now,” he says. “There are pools that probably don’t freeze all the way to the bottom in wintertime, and the creek seems to flow all winter long.”

September 2017 | Alaska Business Monthly

Work on the dam removal continues even in snow and ice. Image courtesy of Eklutna Inc.

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The Conservation Fund’s perspective is that “without water flows, we’re wasting our money. We are very focused on defending our investment and making sure that the follow-on steps are coming,” Meiklejohn says. He’s confident that they are. McQueen believes the project is going to have a life for the next five to ten years, but “none of it means anything without that concrete dam coming down.”

A Two Step Process Taking down the dam is really phase one of a two-phase project. “One of the problems with this project is that there’s an upper dam, and no water comes out of the Eklutna Lake unless there’s a really big storm event,” says Ron Benkert, habitat biologist for the Alaska Department of Fish and Game. “Getting more water is going to make or break the response from fish,” Benkert says. “There’s a watershed there, but as far as we can tell, there’s no place else to get water. There’s not a whole lot of habitat.” According to Meiklejohn, “The water situation is going to be the harder part of this project, and it’s a piece that we don’t necessarily control.” Meanwhile, Heath adds, “With no increase to the flow of the river, there’s no guarantee that removing the dam would improve the fish habitat.” So even though taking down the dam is an improvement, there’s still a lot of uncertainty about whether or not additional fish habitat will form. As far as the ultimate outcome, time will tell. “It’s surprisingly complex, but I think it’s all solvable,” says Meiklejohn. “If I didn’t believe it were solvable we wouldn’t be spending $7.5 million just to take out a stupid piece of concrete.” R

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Jessica Rohloff is a freelance writer and aspiring Alaskan.

Alaska Business Monthly | September 2017 www.akbizmag.com

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CONSTRUCTION Ted Stevens Anchorage International Airport Gate B reconstruction. Image courtesy of Roger Hickel Contracting Inc.

Summer 2017 Roadway Construction Round-Up Highway, roadway, and runway improvements By Kathryn Mackenzie

S Image courtesy of Davis Constructors & Engineers Inc.

ummer is primetime for road improvement projects in Alaska; the weather is warm and ice and snow are distant memories of winter past. As fall arrives and the state prepares for the inevitable frigid weeks and months ahead, workers statewide are busy preparing Alaskaâ&#x20AC;&#x2122;s highways, roads, runways, and other infrastructure for another round of snow plowing, studded tires, and wear and tear from heavy trucks toting cargo from one end of the state to the other. Companies all over Alaska are involved in dozens of projects worth millions of dollars designed to make life on the road safer and smoother for the thousands of commuters, visitors, and truckers who depend on Alaskaâ&#x20AC;&#x2122;s roads.

Doug Carter of Mass Excavation prepares to install storm pipe at the MOA 100th Ave. Extension Phase 2B project.

Stantec The multidiscipline architecture and engineering firm is involved in numerous projects designed to improve highways, roads, and runways statewide. The company was contracted by the Alaska Department of Transportation and Public Facilities (DOT&PF) to provide design services for the reconstruction of the Glacier Highway in Juneau from the Fritz Cove Road intersection to the intersection of Seaview Avenue in Auke

Alaska Business Monthly | September 2017 www.akbizmag.com

Bay. Work on the $13.8 million project will improve sightlines and reduce conflicting turning patterns, while also improving the roadway’s shoulders and pedestrian crossings near Auke Bay Elementary School. The project includes roadway subbase improvement, widening, curve realignment, and surfacing. Pedestrian facilities, retaining walls, lighting, drainage, and guardrail are part of the Stantec-designed project set for completion in August 2018. The Municipality of Anchorage employed Stantec’s services to design the 100th Avenue Extension to provide roundabouts at the Minnesota Drive and 100th Avenue interchange. The second phase (Phase 2B) of this project includes construction at the previously surcharged roadway between Minnesota Drive and C Street. This minor arterial roadway—scheduled to be complete in August 2018—will have three lanes and five-foot shoulders, as well as separated, multi-use pathways on both sides of the road and continuous LED lighting along its length. Some of the most important horizontal construction projects in the state are the “roads” airplanes use to take-off and land. Runways and taxiways are the vital conduit through which much of Alaska receives personnel, cargo, and, of course, tourists. At Ted Stevens Anchorage International Airport, Taxiway Y is undergoing reconstruction. Stantec is providing design services for the $18.6 million project owned by DOT&PF. Contractor QAP is working with Stantec on the Taxiway Y project. The entire taxiway and all taxiways connecting to the runway will be reconstructed and all airfield lighting and guidance signs replaced. The project must be constructed this year in order to accommodate the reconstruction of the runway next year. Both projects have been carefully coordinated. In Cordova, Stantec is working with contractor Pruhs Construction to expand and reconstruct airfield pavements between the runway and the Copper River Highway, including construction/reconstruction of Taxiways C, www.akbizmag.com

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Cody Troseth and Sharayah Dollente inspecting the recently poured curb at Yosemite Drive. Image courtesy of Davis Constructors & Engineers Inc.

D, and K and Taxilane L; construction of the General Aviation, Main, and ARFF/SREB aprons; construction of apron access roads; and replacement of associated airfield lighting. Upgrades will rehabilitate old facilities and provide expansions to better accommodate aircraft operations. The $6.3 million project commissioned by DOT&PF involves 4,900 linear feet (LF) of taxiway construction, 2,170 LF of access roads, and 35,360 square yards (SY) of apron construction.

Mass Excavation, Inc. The general contractor for the 100th Avenue Extension Phase 2B project is Mass Excavation, Inc., an Anchorage-based civil contractor. The project will provide roundabouts at the Minnesota Drive and 100th Avenue interchange and is anticipated to finish in fall 2017. This aspect of the $4.8 million job consists of approximately 16,505 SY of pavement removal; 3,175 LF of curb and gutter removal; 58,100 cubic yards (CY) of usable excavation; 30,800

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CY of unusable excavation; 7,300 tons of leveling course; 7,014 LF of plain cement concrete curb and gutter; 8,520 tons of asphalt concrete pavement; 3,013 LF of storm pipe; and other related work. Mass Excavation is repairing areas along the Denali and Richardson Highways that were damaged during September 2012 and May 2013 flooding events. The DOT&PF project is set to be complete later this year at a cost of about $2.4 million. The Yosemite Drive upgrade is a $3.5 million project owned by the Municipality of Anchorage. Mass Excavation is contracted to provide extra lanes, new curbs, and a long median at the southern end. Work includes approximately 55,500 tons of classified fill and backfill; 24,500 CY of unusable excavation; twenty-one storm drain catch basins and manholes; 2,130 LF of storm drain; 900 LF of water main, 9,325 LF of curb and gutter; 3,240 tons of asphalt concrete pavement; 2,070 SY of sidewalk; nineteen curb ramps; twenty-three street lights; and landscape improvements and other related work. Mass Excavation is also the general contractor for the 2017 Merrill Field Airport Improvements project to rehabilitate Taxiway Quebec, Phase 6. This consists of rehabilitation of approximately 830 LF of Taxiway Q and 253,400 square feet of adjacent Golf East Apron located over the Merrill Field Landfill. Work includes the removal of existing pavement, demolition, dynamic compaction of soil and landfill waste, furnishing and installing 186,800 tons of classified fill, reconstruction of approximately 477 LF of the landfill gas extraction system, furnishing and installing leveling course, paving 4,240 tons of hot mix asphalt, taxiway lighting, and other related work in Anchorage as contracted by the Municipality at a cost of about $6.6 million with a completion date of October 2017.

Roger Hickel Contracting Roger Hickel Contracting is working with the State of Alaska and DOT&PF on a threephase project to reconstruct ANC Gates B1,

Alaska Business Monthly | September 2017 www.akbizmag.com

B3, and B5 at Ted Stevens Anchorage International Airport. The project cost is $6.9 million and it is expected to be fully complete in May 2019. Gate B1 was complete in May of this year. Another project with DOT&PF is the Lake Hood Seaplane Base Lake Hood Lakeshore Taxilane Reconstruction. The $2.9 million project began in May and was completed in August 2017. It included reconstructing 1,900 feet of Lakeshore taxilane and the replacement of the Lake Hood Ramp float plane launch at Ted Stevens Anchorage International Airport—Lake Hood. Roger Hickel Contracting is working with UPS for the Gateway Hardstand Replacement Phase II at Ted Stevens Anchorage International Airport. This roughly $2.8 million project will remove and replace four concrete hardstands.

2016-2019 STIP Amendment 3 Gold Mine Trail Road Upgrade in Fairbanks: This amendment to the state STIP includes reconstruction to upgrade and pave approximately 4,750 feet of Gold Mine Trail and the replacement of the guardrail. It also includes the realignment of two 90-degree turns as they approach the Steese Highway with possible realignment of the intersection with the Steese. Haines Highway Reconstruction—Haines MP3.5-12.2: Amendment 3 also includes plans to widen the Haines highway to a paved width of 36 feet and to develop the roadside environment with improvements to drainage, straightening selected curves to a 55 mph design speed where applicable, and other improvements. This is one of three construction projects that fall under the Haines Highway Reconstruction, MP3.5‐25.3 Design project. For more information on STIP-related projects visit: http://dot.alaska.gov/stwdplng/ cip/stip/index.shtml. R

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FINANCIAL SERVICES

Millennial Homebuyers Younger buyers partial to home ownership, home-buyer education, online resources By Tracy Barbour

ational research and Alaska’s mortgage industry experts reveal interesting insights about the practices of millennial homebuyers. Millennials—people born between 1982 and 2000—have a strong penchant for home ownership and educating themselves about the home-buying process. They’re also partial to using online resources, yet value having a personal touch when pursuing a home loan. But while many millennials are interested in going from renting to owning, fewer of them are making the transition. The percentage of home owners between the ages of eighteen and thirty-five has been sloping downward nationally for more than ten years, according research firm Abodo. As part of its study of home-buying trends in the United States, Abodo found that 39.5 percent of young adults were home owners in 2005 while only 32.1 percent were in 2015. (Abodo’s analysis used data from the US Census Bureau 2015 American Community Survey and focused on the one hundred largest metropolitan statistical areas by population.) Why the slowdown in home buying for the younger generation? The prevalence of college attendance, mounting student loan debt, and an increasingly tight housing market are slowly pushing back the age of first-time homebuyers, according to Abodo. Millennials—also called Generation Y—now account for just 7.5 percent of the value of all US homes, despite being the largest generation of adults. A similar home ownership trend was revealed by the “2017 State of the Nation’s Housing” report by the Joint Center for Housing Studies at Harvard University. The report indicates that the number of home owners over age fifty-five jumped by 13 percentage points to 54 percent between 2001 and 2015. But over the same period, the share of home owners under age thirty-five shrank by 5 percentage points to about 33 percent.

Home Ownership Still the American Dream Home ownership still represents the American dream to the millennial generation. At least, that’s one of the findings of the “2016 How America Views Homeownership” survey by Wells Fargo. It affirms that there is a strong appetite for home ownership, particularly among millennials and diverse groups. “They see home ownership as something to be proud of, some22

ABOVE: From the 2016 Wells Fargo survey on How America Views Homeownership. LEFT: Five tips to help potential home buyers prepare to purchase their first home.

“They see home ownership as something to be proud of, something that is a dream come true.”

—Brenda Miernyk Manager Wells Fargo Home Mortgage, Alaska Area

thing that is a dream come true,” says Wells Fargo Home Mortgage Alaska Area Manager Brenda Miernyk. The Wells Fargo survey is the result of three years of consumer research and includes 3,400 adults across the nation. While the survey doesn’t cover Alaska specifically, it reveals viewpoints that are likely similar to what younger homebuyers in Alaska are feeling, says Anchorage-based Miernyk. In addition to having positive feelings about home ownership, most of the millennials surveyed say they plan on purchasing a house soon. In fact, 58 percent of Wells Fargo’s survey respondents said they would be buying a home in the next few years. The survey also indicates that homebuyers, including millennials, perceive that buying a house is challenging. “Twenty-four percent say it’s difficult to save money for a down payment,” Miernyk says. “Of those, 26 percent say they’re not sure where they will be in a few years, which is part of their hesitation in making a decision to buy a home. Forty-

seven percent of millennials think they need 20 percent down [in reality, consumers may have other options], compared to 40 percent of the general population. And 67 percent understand that they have to have good credit.” Brenda Miernyk According to the Image courtesy of survey, almost 60 perWells Fargo cent of millennials are seeking information about home buying. They are well-educated about the process and are looking for online resources. In fact, millennials frequently use technology when searching for and purchasing a home, according to the survey. Two-thirds use mobile devices to search for homes, and 39 percent would agree to complete the mortgage process online without talking to a person. However, most millennials still want to have a personal relationship with their mortgage lender, knowing that someone is there to answer their questions. And they prefer to receive individual guidance versus working with a group. “It’s exciting that home ownership is important to them,” Miernyk says. “And even though we have technology, our borrowers are telling us that technology shouldn’t replace human guidance.”

Millennial Mortgage Trends at Denali Katie Jan, a mortgage loan originator for Denali Federal Credit Union, is seeing millennials in

Alaska Business Monthly | September 2017 www.akbizmag.com

“Millennials up here really want to do what’s best for themselves and their financial situation.”

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Alaska take a conservative and practical approach to home buying. The majority of them are researching online and trying to find the best way to buy a home. “Millennials up here really want to do what’s best for themselves and their financial situation,” says Jan, who is based in Anchorage and happens to be a millennial. Lately, Jan has had a number of unmarried younger borrowers purchasing homes together, which strengthens their overall financial profile. And a significant number of millennials have loans in their parents’ names, which minimizes their personal debt and enhances their financial position. Most millennial homebuyers in Alaska have enough financial stability to qualify for a mortgage loan on their own. But some receive gifts from their parents, such as a 20 percent down payment, to avoid paying the mortgage insurance that is often required with a lower down payment. So what type of homes are Alaska’s millennials purchasing? Instead of choosing big, fancy properties, they’re taking a prudent stance. “They know the trends of the market and are aware of where our economy is headed,” Jan says. “I don’t think they want to worsen the stakes by buying a big house that stretches their budget… They often don’t want to buy anything too fancy because they want to rent it out.” In fact, a significant number of millennials want to buy investment property right off the bat, Jan says. Some purchase multi-family housing and live in one of the units to take advantage of the lower down payment and potential tax write-offs. “They can get a FHA [Federal Housing Administration] loan and put 3.5 percent down if they occupy the property,” Jan says. She notes that millennials ask an abundance of questions and conduct the bulk of their research on their own before they ever meet with her. “They are educating themselves and looking at what is better for them financially,” she says. “They shop around for the best interest rate.” It’s great that millennials want to educate themselves and explore their options, Jan says. But it can complicate matters if they have incorrect information and misconceptions about how the mortgage loan process works. “That poses a very difficult situation for the mortgage lender who has to reverse their train of thought—but still have to maintain a good relationship with the customer,” she says. Millennials also tend to have an aggressive approach to the prequalification and preapproval phase when pursuing a mortgage loan. “If you don’t have the answers right then, they might leave a lot of messages and send emails,” Jan says. “They want answers now.” www.akbizmag.com

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Millennial Homebuyers lennials do tend to complete a lot at KeyBank of research, which can help faciliAs with most consumers, millentate the home-buying process. “I nials have different needs and goals have worked with many of them, when it comes to home ownership, providing education and an overall says KeyBank Mortgage Loan Ofunderstanding of the expectations ficer Chris Wold. And KeyBank associated with first-time home offers new homebuyer programs buying, and I often find that some strictly for the purpose of meeting of them are fully prepared,” he says. their needs. He adds, “My role as a mortgage Like Jan, Wold has noticed that loan officer is to help them navigate Chris Yelverton, quite a few Alaskan borrowers are the various loan programs availCommercial Relationship purchasing homes with someone able that will best fit their needs.” Manager, other than a spouse. They are optChris Yelverton, a KeyBank KeyBank ing for the longer thirty-year term commercial relationship manager to keep their monthly liabilities and a member of Key’s Young ProImage courtesy of KeyBank lower. And they often choose to fessional Group, says home prices purchase homes in a price range in the Alaska market are the major that will keep their monthly payment man- driver for thirty-year mortgages. And there are ageable. two main factors in the local market affecting Most millennial borrowers seem to want to millennials’ decisions to purchase a home: the rely on parents for any financial limited supply of single-family homes/townsupport. Those who carry debt have homes and the high cost of rent. “Although financial obligations primarily re- vacancy rates have trended up slightly in the lated to college tuition debt. past year, this has not had a significant impact Wold, who works in Anchorage, on the cost of renting,” says Anchorage-based is also seeing a significant num- Yelverton. ber of younger borrowers who are Consequently, younger homebuyers may be interested in real estate investing. challenged to find a primary residence within “We have observed recent trends, their budget, Yelverton says. Like Jan and Wold, particularly in the Lower 48, that Yelverton finds that it’s common for millenniinclude rental properties, flipping als to educate themselves prior to engaging a homes, etc., by millennials,” he representative at a financial services organizaChris Wold says. tion. There is an abundance of information onImage courtesy of From Wold’s perspective, mil- line to support their efforts, and many of them KeyBank

Younger consumers also try to take advantage of as many programs as they can tack on to each other—especially first-time buyer programs. As a guest facilitator of first-time homebuyer classes, Jan sees this playing out first hand in Alaska. Most of her classes are made up of millennials, which is consistent with what’s happening nationally. “The firsttime homebuyer market for millennials is booming; they make up 60 to 70 percent of the first-time buyers nationwide,” she says. Regardless of what loan program millennials are using, most of them are sticking with the traditional thirty-year mortgage instead of opting for shorter term mortgages. “With the financial profile they have and the income they have, it normally doesn’t support them doing a fifteen-year loan,” Jan says. “However, I do have millennials ask me how they can pay off their loan sooner.”

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—Chris Wold, Mortgage Loan Officer, KeyBank

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Alaska Business Monthly | September 2017 www.akbizmag.com

are using social media to search for real estate agents and mortgage lenders, he says.

Online Educational Resources Alaska’s financial institutions offer a variety of online resources to help millennials and other consumers educate themselves about the home-buying process. For example, KeyBank has a Financial Wellness tool that includes information about firsttime homebuyer programs. Financial Wellness provides users with a real-time, complete snapshot of their finances. They can also receive access to resources and guidance on topics like saving more, spending smarter, and knowing how to borrow wisely. Wells Fargo offers an online interactive tool called My FirstHome to help users learn about becoming a home owner. It takes them through a course that covers all aspects of the process, including deciding if they’re ready to buy, learning about homes and home loans, what to expect when they apply, and maintaining their new property. The course, which can be done in multiple visits to the website, takes about an hour to complete. In its ongoing effort to match customers with the most appropriate loan program, Wells Fargo recently launched yourFirst Mortgage. The program allows eligible homebuyers to secure a conventional, fixed-rate mortgage with a 3 percent down payment and flexible income guidelines. Borrowers can also receive $750 off their closing costs and other incentives if they take home-buyer education courses either online or in person. The program is designed to help more first-time homebuyers and low- to moderate-income families achieve sustainable home ownership. “In Alaska and elsewhere, it has been a good opportunity in helping more customers get into a home,” Miernyk says. Wells Fargo also has a My Home Roadmap service that offers free credit resources with the intent to have users prepared for home ownership within six to twelve months. The service is for customers who have met with a Wells Fargo Home Mortgage Consultant and were either turned down for credit or elected not to apply. It offers a referral for up to two hours (or $250) of free pre-purchase counseling with a certified national credit counselor (paid for by Wells Fargo) who provides customers with options and support on the path to home ownership. People who enroll in the program can receive ongoing educational emails from Wells Fargo as further support to help them prepare for sustainable home ownership. Miernyk says there are many myths surrounding the mortgage loan process. Therefore, she encourages anyone who is thinking of buying a home to speak with a mortgage consultant to get the most accurate information. She also offers this general advice: “Whether it’s a millennial or not, we recommend that all our customers know their profile and credit score, know how to manage their debt, have funds for the down payment, and have money in the bank to make sure they’re prepared for home ownership.” R Tracy Barbour is a former Alaskan. www.akbizmag.com

September 2017 | Alaska Business Monthly

SMALL BUSINESS

Image courtesy of Orangetheory Fitness

An Orangetheory Fitness promotional photo shows the team-based exercise approach using treadmills and rowing machines. The first Alaska Orangetheory Fitness recently opened in Anchorage.

Local malls bring national options to Alaska consumers By Sam Friedman

ationally, much of the retail industry faces an existential crisis from the growth of online shopping. Locally, Alaska is headed into its second year of recession. Neither of these factors has stopped business owners, including some major national brands, from investing in Alaska malls and shopping centers this year. It’s been a bad year for some existing national chains, most notably Sports Authority, which left four empty big box storefronts (three in Southcentral and one in Fairbanks) when the chain liquidated in the summer of 2016. Department stores have also struggled in Alaska, as they have elsewhere. This category’s workforce shrunk by more than 13 percent during the past five years across 26

Alaska, according to Anchorage Economic Development Corporation data. Discount department stores shed more than a quarter of their employees during the same period. Nevertheless, franchise, chain, and independent retail businesses are finding opportunities in Alaska’s various malls. Among new entrants to Alaska’s retail shopping scene are the state’s first Dave & Buster’s restaurant and arcade, a new Sportman’s Warehouse in Juneau’s Nugget Mall, Alaska’s first Victoria’s Secret store at Anchorage’s 5th Avenue Mall, a series of indoor trampoline parks around the state, two Cricket Wireless cell phone stores, and new fast-casual restaurants including Smashburger and Wild Wings ’n Things. Here’s a look at some of the changes Alaska’s malls and shopping centers are undergoing.

The Anchorage Retail Market There are recessions and then there are retail recessions. So far Alaska’s largest commercial real estate market is in better shape than during the Great Recession, which hit the retail

Photo by Kellie Windham

Alaska’s New Mall Tenants

The front of Juneau’s Nugget Mall in the winter of 2017. In 2016 the mall added a Sportsman’s Warehouse.

market especially hard, according to Andrew Ingram, a commercial real estate licensee at Jack White Real Estate in Anchorage. As part of his job, Ingram watches vacancy rates for commercial properties and keeps track of the amount of time they stay on the market. By these standards, Alaska’s largest retail market is in pretty good shape. “It’s still a tight retail market. It’s still a good market,” says Ingram. Anchorage had a retail vacancy rate of nearly 7 percent when Ingram gave a presentation

Alaska Business Monthly | September 2017 www.akbizmag.com

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Earlier this year, Ingram predicted property owners would try to quell rising vacancy rates by offering tenants incentives such as property improvements or periods of free rent. But later on, in July, he still hadn’t seen those incentives being offered. The number of empty storefronts varies widely by property type. Anchorage shopping malls were about 6 percent vacant in January and were the only category of Anchorage retail space that saw fewer vacancies over the course of 2016. Anchorage strip malls were roughly 8 percent vacant. Power centers were 2 percent vacant. A power center is a large outdoor shopping center typically made up of three or more large categorydominant stores such as warehouse or home improvement stores.

Building Up for Dave & Buster’s It took an act of the Alaska legislature to make possible the newest tenant in Alaska’s largest enclosed mall. In 2016 the legislature passed Senate Bill 157, a change to the state gambling law nicknamed the “Dave & Buster’s Bill.” The bill, signed into law by Governor Bill Walker, clarifies that skee-ball, air hockey, and arcade-style games at businesses such as Dave & Buster’s and Chuck E. Cheese’s do not constitute gambling. Dallas-based Dave & Buster’s is a combination restaurant, sports bar, and arcade that caters to adults and families. Anchorage’s Dimond Center reported in a news release that it is spending $11 million to get the mall ready for the new business, and Dave & Buster’s is investing an additional $10 million. Building the new restaurant involves raising the roof by six feet over a section of the mall that previously held a library. According to its website, Dave & Buster’s usually seeks markets of between 700,000 and 1 million people within ten miles of the business, a market far larger than Anchorage. An attorney for the business said at a legislative hearing last year that the business chose Anchorage even though it doesn’t meet their typical criteria because of the city’s role as a statewide hub and the fact that it’s an international tourism destination. At 44,000 square feet, the new Anchorage location is larger than the businesses’ usual site requirements. The Anchorage Dave & Buster’s is scheduled to open in 2018.

Photo by Barry Jenkins

A climbing wall in the new Shockwave Trampoline Park in Anchorage. The owner converted the former Northway Mall OfficeMax into the indoor park.

in January at the Anchorage Building Owners and Managers Association. He predicted the rate would increase by 2 percent during 2017. In July, vacancy rates remained on an upward trajectory with the expectation that vacancy rates will hit close to 9 percent by the end of the calendar year. But Anchorage’s retail vacancy rate remains below many Lower 48 markets including Phoenix, Spokane (Wash28

ington), and Boise (Idaho), Ingram says. It’s also stronger than during the Great Recession. Alaska weathered the Great Recession better than the Lower 48 in terms of employment numbers, but that same recession was especially hard on Alaska’s retail sector. “Retail stocks were getting killed. That was causing the big nationals not to come to Alaska,” Ingram says.

Going National in Juneau In Juneau, a community shopping center has gradually been growing and attracting national businesses. Last year the Nugget Mall added a Sportsman’s Warehouse, a major new anchor that took up space previously used for smaller stores, says Kellie Windham, the mall’s marketing director and bookkeeper. The Nugget Mall opened in 1974 with two main, locally-owned anchor tenants, the Nugget Department Store and Nugget Rexall, a drug store. Today the mall’s anchors include a Jo-Ann Fabric and Crafts and free-standing OfficeMax and Petco stores. The mall has 210,085 square feet of gross leasable space, less than one-third the size of Anchorage’s Dimond Center.

Alaska Business Monthly | September 2017 www.akbizmag.com

A typical Cricket Wireless Store. This AT&T subsidiary recently opened its first two Alaska storefronts. One is in Fairbanks’ Bentley Mall and one is in Anchorage’s Dimond Center. Image courtesy of AT&T

Sportsman’s Warehouse is a Utah-based outdoor equipment company that now has five Alaska locations in Juneau, Soldotna, Anchorage, Wasilla, and Fairbanks.

Wireless Change A wireless cell phone company expanded to Alaska, with storefronts at two Alaska malls in 2016 and 2017. AT&T subsidiary Cricket

Wireless is a wireless phone service provider that has more than 4,600 storefronts around the United States. The first Alaska store opened at Dimond Center in 2016, followed by a location at the Bentley Mall in Fairbanks in June 2017. Like other mall wireless cell phone businesses, the Alaska store offers customer service and a place to browse cell phones. A key differ-

ence between Cricket and other wireless service providers is that Cricket specializes in pre-paid phone plans with no contract requirements. Cricket’s Pacific Northwest Marketing Director Matthew Cave declined to discuss the company’s reasons for adding Alaska stores this year, citing business competition concerns. He says the business is always looking for new authorized retailers.

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Alaska Business Monthly | September 2017 www.akbizmag.com

Case Study: Jumping into the 49th State A new category of family entertainment centers landed in Alaska in 2015: the trampoline park. Trampoline park chains have proliferated for the last ten years, with more than 400 opened in the Lower 48. In 2015, a franchise of the Utah-based Get Air business opened next to Anchorage’s O’Malley Center Sports Complex. Competitor Shockwave opened in 2016, filling what had been a standalone OfficeMax in Anchorage’s Northway Mall complex. Shockwave co-owner Barry Jenkins is a general contractor and garage door company owner in Scottsdale, Arizona. He got into the trampoline park business for the first time five years ago and now co-owns two Arizona trampoline parks, in addition to the new Anchorage business. He’s also on the Board of Directors of the International Association of Trampoline Parks, a trade organization. Jenkins had never been to Alaska before making his first scouting trip in 2015 to research the possibility of opening his first trampoline park outside Arizona. The harsh weather and Anchorage’s high income drew him to Alaska’s largest city, he says. Median household incomes in Alaska’s urban centers are considerably higher than the US average of $56,516, although the most recent US Census figures are from 2015, before the onset of Alaska’s current recession. Anchorage’s median income was $78,326 as of 2015. Shopping centers often advertise their city’s high incomes to attract tenants. For Florida-based Orangetheory Fitness, another national chain that recently expanded to Anchorage, a minimum of a $75,000 median household income is the benchmark demographic for a city to be considered for an Orangetheory Fitness studio, according to the company website. Alaska’s first Orange theory Fitness opened at Anchorage’s Target/ Cabela’s power center. For trampoline parks, “bad weather” is good for business because people are less likely to visit if it’s nice outside. In Arizona, the busy season for the park is the summer because it’s too hot to play outside. Having a business in a cold winter state is especially helpful to counteract the seasonal fluctuations in Arizona, Jenkins says. “In Arizona, eight months out of the year it’s beautiful and you do everything outside. Come summer and you’re looking for anything with air conditioning. It’s the polar opposite in Anchorage,” he says. Jenkins chose the Northway Mall OfficeMax for Shockwave in part because of the building itself. Trampoline parks have ceiling height requirements that happen to be covered by box stores like OfficeMax. Jenkins needed a building with ceiling clearance of between eighteen and twenty-two feet. In the early days, trampoline parks tended to open in industrial spaces where developers were more likely to find cheaper real estate and the type of buildings that would work for trampoline parks. With increased competition, such parks are choosing more visible www.akbizmag.com

locations, Jenkins says. The Northway Mall location also comes with services including security and snow removal. “You do pay higher rent, we understand that. But location and exposure in a competitive market also helps,” Jenkins says. It cost almost $1 million and four months to remodel the office supply store into a trampoline park. Jenkins used all Alaska construction workers except for three, he says. Like many new entrants to the Alaska market, Jenkins says transportation logistics were one of the most challenging parts of starting the business. Jenkins says he paid about 30 percent more to ship equipment to his Alaska location as compared to his Arizona locations. During construction, a ship-

per lost an entire pallet of foam pads, which delayed the opening of one of Shockwave’s courts by about six months. So far Jenkins hasn’t made any plans to open additional parks in Alaska, but a few other companies have planned expansions. In June the Alaska Club announced it was converting part of its main Fairbanks facility to a trampoline park. A Facebook page was also set up for a Fairbanks Get Air park, but the company has not yet announced a location. R

Sam Friedman is a freelance reporter. He lives in Fairbanks.

September 2017 | Alaska Business Monthly

TRANSPORTATION

Photo by Jim Jager, Port of Anchorage

Anchorage-based tug Glacier Wind assists tanker Overseas Boston docking with a load of jet fuel at Port of Anchorage POL terminal 1 on January 25, 2017.

Moving to Rural Alaska: It Takes a Village Methods for moving cargo to the bush By Garrison Wells

ractors, airplanes, boats, trucks, snowmobiles, and dogsleds. When it comes to moving to Alaska’s bush territory, just about any mode of transportation is fair game. Michael Gonzalez, vice president of Denali Group, a relocation specialist company, says, “It is usually by air or water—a small boat. Once a shipment arrives to the bush we use all kinds of modes to deliver, depending on the ways we can get to the residence. We have used snow machines, tractors, boats, and other things.” Moving household goods to Alaska is no easy feat, especially to its rural outreaches. Outside of Anchorage and Fairbanks there are few paved highways. Most don’t meet the same interstate/highway standards drivers in the Lower 48 may be used to because many are two-lanes and undivided. And, for 32

many communities there are no roads at all. Add to that inclement weather, and a perfect storm of less-than-stellar moving conditions is formed. As a result, moving costs are often far more expensive here than in locations outside of Alaska. “We don’t get a lot of calls from people saying how do I get there?” says Bob Hafner, executive director for the Nome Chamber of Commerce. “We get calls from people asking: ‘Is there a road I can drive up there?’” The answer? There isn’t. The coastal community of Nome, which is nearly 540-air miles from Anchorage, sits on the northern coast of the Norton Sound in the Bering Sea. Because there are no highways to Nome, flying and water transport, snowmobile, and dogsled are the only modes of transportation by which cargo can be moved to and from the town. Still, Hafner says, it’s not difficult to move to Nome or to get household goods delivered: “You just can’t get here by car.” “It’s not hard to say: I am going to pack up my goods and then I am going to ship all of it here. That’s not hard,” he says. “It’s hard

when you ask: When is it going to be here?” There are plenty of companies that help people relocate their goods to Alaska: UHaul, U-Pack, Denali, RAVN Alaska, Lynden, Tote Maritime, and USPS are just a few of the companies that offer these services. Even with the wide range of companies offering moving services, there is still only a six- to eight-week “season” during which movers are more easily able to coordinate rural moves.

Is the Price Right? To determine the costs associated with moving to rural Alaska, experts recommend obtaining an estimate from one of many company websites offering such services. There are so many variables governing rural Alaska moves that price estimates are all over the map depending on location, time of year, and available modes of transportation. “It’s tough,” says Gonzalez. “There are too many variables that could increase the price substantially. For instance, where is it coming from? How fast do you want it? What kind of services are you requesting at the other end?”

Alaska Business Monthly | September 2017 www.akbizmag.com

Photo by Jim Jager, Port of Anchorage

Ships discharge fuel, cement, and cruise ship passengers at the Port of Anchorage on June 13, 2016, beneath a US Air Force C-17 Globemaster on final approach to land at Joint Base Elmendorf-Richardson.

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Alaska Business Monthly | September 2017 www.akbizmag.com

Gonzalez says he considers the cost to be “very expensive. It depends on how remote the area is and availability of transportation that is going to it.” Once a shipment arrives in one of Alaska’s more populated cities, such as Anchorage or Fairbanks, it can take a couple of weeks to get to rural destinations, he says. It depends “on how frequently the transportation company goes to the remote area.” “If the shipment is really big, sometimes it can take months to wait until a river unfreezes so a boat can transport it,” he says. “Small planes can only hold so much, so if it takes more than one small plane, it could be very expensive to make multiple trips.” Denali Group has been moving people to Alaska since 1954. “We have moved everything imaginable,” Gonzalez says. “We move hard things all the time. One thing that stands out is 120 full-size animal mounts. We moved the Native hospital to its new location and Alaska Airlines during its remodel.”

Lynden Inc.’s Alaska Marine Lines transports goods by barge.

By Sea and Sky Most items coming into Alaska arrive at the Port of Anchorage or Ted Stevens Anchorage International Airport before being delivered to other destinations, says Meadow Bailey, Alaska Department of Transportation & Public Facilities spokeswoman. “Aviation touches all aspects of life in rural Alaska and is a basic mode of transportation due to the vastness of Alaska,” she says. About 82 percent of Alaska communities are not served by roads and have no connec-

tion to the contiguous road system, she adds. The state is responsible for 242 airports. The Port of Anchorage is the other major transportation hub in the state. “It comes here and it may go down the road a couple hundred meters to Lynden or North Star’s barge terminal to go to Western Alaska,” says Jim Jager, director of external affairs for the Port of Anchorage. “It depends on the time of the year. Some stuff goes by truck to Fairbanks for distribution from there to Western Alaska. It depends on what the item is.”

www.akbizmag.com

Image courtesy of Lynden Inc.

Barges, Jager says, are the best way to move automobiles, whether it’s a car for personal use or cars headed to a dealership. “They get barged up. What would happen in the case of cars generally is they go from the port to a dealer, then back to a barge and then out again [to the buyer],” Jager says. Personal cars go from the barge to Lynden and North Star for shipment to owners. “A lot of people think of this port as a destination, but we’re not a destination, we’re a terminal,” Jager says. According to Jager, about 90 percent of

September 2017 | Alaska Business Monthly

Lynden Transport provides integrated truck, marine, and air services statewide. Image courtesy of Lynden Inc.

incoming products, such as food and household goods, arrive by marine transportation. “Of the 90 percent, about half of it comes into the Port of Anchorage and of that, half stays in Anchorage and half goes to other parts of Alaska like Fairbanks, Bethel, [and the] Mat-Su Borough,” he says.

Seasons Matter In the summer, Jager says, barges are able to load up in Seattle and travel to Western Alaska with unperishables such as automobiles and household appliances. During the winter, goods more often come into Anchorage’s port and are then flown out from the airport. It can all seem a bit complicated and perhaps overwhelming to those moving to rural Alaska for the first time. The Anchorage Chamber of Commerce can help, says Bruce Bustamante, president. The Chamber can “provide information on moving companies [and] storage facilities, along with information about services provided by member businesses,” he says. “Families and individuals who move to our city often need services and information with the move that are needed once they have relocated to Anchorage.”

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Ravn Alaska Ravn Alaska serves more than one hundred communities in Alaska. That includes locations such as Anchorage, Grayling, Hooper Bay, Nome, Koyukuk, Fairbanks, and Unalakleet—many of these communities are well off the beaten path. “From an air cargo standpoint, the challenge that we have is understanding changing weather conditions daily,” says Joe Freitag, director of air freight services for Ravn Alaska. “We meet those challenges head-on and are extremely successful in ensuring delivery of goods and cargo and air freight shipment as a lifeline to the villages.” Ravn uses sixty-nine single- and doubleengine prop planes. In the summer or during hunting season, goods being shipped often include salmon or wild game. During the winter and holiday seasons, gifts and packages are the norm. “We are always in peak season at Ravn Alaska,” Freitag says. Household shipments are year-round, says William Walsh, a Ravn Alaska spokesman. “We have the ability to handle appliances and routine household goods,” he says. “Some [appliances] are ordered online or bought at other locations and shipped to the villages.” Because flying in Alaska comes with challenges—tricky terrain, risky weather, and limited seating and cargo space on small aircraft—Ravn trains its pilots, flight crews, and employees to keep them prepared for any situation, Freitag says. “In most cases, we rely on the people who live in those destinations— Nome, Kotzebue, Kotlick—to deliver Ravn’s goods and provide assistance to passengers,” he says. “We enjoy not only providing things to the village or hub locations but also being part of the communities by employing local people. That includes the pilots who live and train there and then move to other stations and villages as needed.”

Alaska Business Monthly | September 2017 www.akbizmag.com

Ravn added a scheduled route between Anchorage and Kotzebue and has implemented Ravn Rush, next-flight-available shipping for expedited shipping to rural Alaska, Walsh says. From Anchorage, Freitag adds, shipments that go out on morning flights to Ravn hubs are often put on flights later that day to villages. “We have shipped birthday cakes or celebration cakes from Anchorage to the villages and they arrived the same day,” he says. “We have various levels of service we can offer our customers depending on their urgency, a lot of times within twenty-four to forty-eight hours.” Urgency doesn’t come cheap. “Outside of the main cities of Alaska, it can be more expensive,” Freitag says. Walsh says Ravn’s biggest accomplishment in Alaska is customer service to these hardto-reach regions. “A lot of people who fly or ship on Ravn Alaska are relying on us to get things to them out of our main hub and we are committed and in tune with our communities,” he says.

Edwin Bifelt, Alaska Native and owner of Zane Hills Capital. Image courtesy of Zane Hills Capital

U-Pack and They Haul With its center in Anchorage, U-Pack offers service to most of the state from Homer to Fairbanks and most of the military bases, says AJ Jones, U-Pack director. The idea, he says, is “you pack, we drive.” This model is designed to lower costs since consumers do some of the work themselves. The rate is based on the amount of space used, which gives consumers more control over the costs. Because shipments from Tacoma depart twice a week, it takes an average of seven to fifteen business days for goods to arrive at their destination. U-Pack’s modes of transportation for Alaska include an ocean container called a ReloCube and a truck trailer that takes items to the home. Consumers are given up to three days to load their containers. The shipment to Alaska goes to Tacoma where it sets sail for Anchorage, Jones says. While Anchorage is U-Pack’s most popular destination, Jones says other in demand locations are Fairbanks, Juneau, Palmer, Wasilla, Fort Wainwright, and Joint Base ElmendorfRichardson. Industry Expert Advice Lynden, one of the major movers in Alaska, offers a must-read blog for those looking to move their items to the state called “The Six Things You Need to Know About Shipping to Alaska.” Alaska is unique, it says, “particularly when it comes to shipping.” But for those who know what to expect, “the experience can be as smooth as ice.” Their key suggestions:  Find a carrier that has experience in the state. Look for a company with a network of offices statewide.  Find a carrier with mixed modes of transportation. Be sure your carrier can deal with all types of weather conditions. www.akbizmag.com

September 2017 | Alaska Business Monthly

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“It’s easy to ship your vehicle to Alaska by barge,” says Alaska Marine Lines (a Lynden company) President Kevin Anderson. “We use a system that allows vehicles to ride within an enclosed container, so it is protected from the elements.” The company can ship cars, pickups, or SUVs with regular service between Seattle and Southeast Alaska and Central Alaska and on a seasonal basis to Western Alaska. “Many of our customers like the fact that personal belongings can be included within the vehicle,” says Anderson. But, he cautions, there are restrictions, so those looking to use this particular service should conduct thorough research on the rules and regulations before booking the move.

Looking for Legislative Relief Edwin Bifelt is a rural village resident. For a Stanford University project, he researched the cost of air flight to Alaska’s rural, isolated locales. The result of his project ended up being adopted by the Alaska Federation of Natives, the state’s largest statewide Native organization, at its 2016 Annual Convention. The resolution, and Bifelt’s recommendation, calls for research into a state tax credit program for rural Alaska air industry participants for capital costs, fuel, and other operating costs; the resolution also recommends research into safety technology and the possibility that the program could create a 25 percent to 50 percent reduction in the cost of air services. “The cost of travel and freight for basic life necessities such as health, wellness, and food security are severely affected and impeded across Alaska,” Bifelt’s resolution says. Air service, says Bifelt, who is Koyukon Athabascan and owner of Zane Hills Capital in Huslia, is simply too expensive. “The fuel costs are high, there are lots of regulations, there are mountains and bad weather, and winter can get down to below zero. It’s tough to fly in Alaska, but it’s still the primary travel for most of Alaska.” He’s been studying the issue the past five years, and the main question that has arisen is, “What steps can Alaska and all the stakeholders take to make changes in the industry?” Bifelt’s goal is to get his resolution introduced to the state Legislature in 2018. He’s already had some interest from legislators. “I think air travel is such an important industry,” he says. “For me, it’s personal because I live in rural Alaska and am an Alaskan Native. It’s one of those things you see, and it’s not that good. There could be improvements that could have huge effects on Alaska.” R Garrison Wells is an award-winning business writer.

Alaska Business Monthly | September 2017 www.akbizmag.com

TELECOM & TECH

Building Alaska’s Telecommunications Telecom upgrades improve Internet speed, reliability statewide By Tracy Barbour

laska’s telecommunications companies are upgrading their infrastructure and services to enhance the coverage, speed, and reliability of their networks. They’re adding new cell towers, boosting the capacity of existing cell sites, installing more fiber optics, and leveraging partnerships and other resources. Telecom providers such as Alaska Communications, AT&T, GCI, Matanuska Telephone Association, and TelAlaska invested millions of dollars to lay the groundwork for even more enhancements and services in the future. Here we present a summary of some of the latest upgrades being made to enhance customers’ ability to capitalize on Internet technology. 40

Alaska Communications Currently, Alaska CommunicaEnhances its Network tions is building two test locations: Alaska Communications is excitone in Ninilchik on the Kenai ed about expanding its network to Peninsula and another on Chena serve more Alaskans in more parts Hot Springs Road in Fairbanks. Of of the state. Late last year, the comthe 31,500 locations the company pany received capital through the will be able to serve with the FCC Federal Communications Comfunding, about two-thirds will be mission’s Connect America Fund in or around Kenai. The remainPhase II (CAF II). CAF II—also ing one-third will be situated known as the universal service throughout the rest of the state, Rick Benken, High-Cost program—is the FCC’s with a concentration in Fairbanks. Senior Director program to expand access to voice “We’re proud of our employees Network Engineering, and broadband services in areas who are working hard and fast to Strategy, and where they are currently unavailconnect thousands of Alaskans Management, Alaska able. as soon as possible,” Benken says. Communications Alaska Communications is set “For example, while we must to receive $19.7 million per year Image courtesy of Alaska have these locations live by 2025, Communications for ten years to deploy broadband our people are working to have to about 31,500 locations around many of them up and running as Alaska, according to Rick Benken, senior di- soon as possible. And the minimum speed rector of network engineering, strategy, and required by the FCC under CAF II funding management for Alaska Communications. rules is a 10 Mbps [megabits per second] con“We’ll be bringing about 25,000 of these lo- nection, while we’re implementing speeds cations Internet for the first time,” he says. starting at 25 Mbps.”

Alaska Business Monthly | September 2017 www.akbizmag.com

GCI’s new cell tower, located in Kincaid Park, was designed to look like a tree to blend in with the park’s natural beauty. Images courtesy of GCI

Perhaps the most significant impact of CAF II funding is that it allows Alaska Communications to serve new areas. The company can provide more Alaskans and small businesses with secure, reliable Internet, as well as increase speeds in areas that currently have low speeds. Alaska Communications is also engaged in new partnerships to enhance its service offerings. In May, the company signed a memorandum of understanding (MOU) to become the first reseller of OneWeb-enabled broadband access in Alaska. “While not contractual, we are excited that this MOU allows us to work with OneWeb, whose goal is to bring high-speed, low-latency satellite-based broadband to Alaska,” Benken says. OneWeb uses low Earth orbit (LEO) satellites, which are substantially closer to the Earth than standard communication satellites that orbit about 22,000 miles above land. Because these standard communication satellites are further away, the service they provide can be slow and have high latency. But LEO satellites are closer, eliminating most of the delay and giving users more capacity and speed. www.akbizmag.com

Additionally, Alaska Communications upgraded its subsea fiber-optic cable that runs from Homer to Florence, Oregon. By installing new equipment on both ends of the cable, the company is now able to serve customers at 100 Gbps (gigabits per second) from Fairbanks to Seattle. It is also deploying more fiber to businesses around the state. Alaska Communications also had an exciting year expanding its capabilities with Microsoft solutions. According to Benken, it recently became the first IT company in Alaska to earn the company’s Silver Cloud Productivity Competency, giving Alaska businesses greater access to Microsoft’s world-class data centers, security, and support. It also became a Microsoft Gold Education Partner this year, creating opportunities for Alaska teachers and students to use the latest technology in classrooms. And late last year, Alaska Communications provided nonprofit healthcare organization Akeela with a private, secure cloud connection using Microsoft Azure. The improvements that Alaska Communications is making, Benken says, are all de-

signed to improve the customer experience. “Our infrastructure upgrades and service enhancements are always part of a larger plan to serve more customers and with better service.”

AT&T Invests in Local Networks AT&T recently made significant investments to enhance its network throughout Alaska. The investments include completing more than 250 miles of new fiber from Fairbanks to Coldfoot and launching Long Term Evolution (LTE) at various new sites, according to Shawn Uschmann, AT&T’s external affairs director for Alaska. Since 2016, AT&T Mobility has launched several new locations, including sites in Fairbanks, Juneau, and on Joint Base ElmendorfRichardson. It also expanded LTE coverage to more than seventy-five additional site locations such as Kodiak, Valdez, Sitka, Nome, and Skagway. AT&T Mobility also added additional LTE capacity to more than 200 site locations throughout Alaska and expanded LTE bandwidth throughout Anchorage to increase

September 2017 | Alaska Business Monthly

data speeds and enhance customvice to remote and rural areas in er experience. “By expanding our Alaska. By the end of 2017, TERRA LTE coverage and increasing our will deliver high-speed Internet to LTE capacity, we continue to deeighty-four communities in Alasliver our customers a faster more ka, according to GCI Senior Direcreliable network. These upgrades tor of Corporate Communications offer our customers improved Heather Handyside. The historic wireless capacity and speeds,” Usproject will also reach another chmann says. In addition, AT&T important milestone this year: Mobility supported the 2016 and completion of the TERRA network 2017 Arctic Man Events and the ring. “By completing the network Shawn Uschmann, 2016 Alaska State Fair by deployring west of Galena this year, GCI’s External Affairs Director for Alaska, ing a temporary COW (Cell on TERRA will now be the gold stanAT&T Wheels), also called a mobile cell dard for reliable Internet service in site. Uschmann says nearly 90 the region. A ringed network is suImage courtesy of AT&T percent of Alaska’s population is perior to the single fiber or ‘single covered by AT&T’s wireless network. And thread’ system because if there is a break or an the company’s investments in the state help interruption of service, network traffic can be ensure that it provides additional coverage rerouted in the opposite direction to avoid the and services to its customers. “Our invest- break.” ments in Alaska help Alaskans communicate Finishing the TERRA ring will be a major by voice, text, and social media sites,” he says. accomplishment both for telecommunica“By upgrading our network, we increase the tions reliability for rural Alaska and for the amount of users who can access the network size of the infrastructure project, Handyside while at the same time also boosting mobile says. The TERRA network is more than 2,000 data speeds.” miles long—nearly the distance from Washington D.C. to Las Vegas. GCI Completing TERRA Network Ring GCI has a number of other projects to Alaska’s largest telecommunications provider, expand and update wireless service across General Communications Inc. (GCI), is work- Alaska. For example, it launched 4G service ing on several major infrastructure and service in Kincaid Park this summer. The $1 million upgrades this year. A key focus is continuing tower project is now operational and providthe construction of its Terrestrial for Every ing much-needed coverage to users of one of Rural Region in Alaska (TERRA) network, Anchorage’s busiest parks. “This is a very welwhich provides high-speed broadband ser- come public safety improvement for park us-

ers,” Handyside says. “GCI worked together with the community to develop a mono-pine tower structure that so closely resembles a spruce tree that many people don’t notice it.” Soon the company will launch 3G/4G over satellite service to communities that currently only have access to 2G service due to their remote location. The new service will be available in select communities across Alaska, including Savoonga, Unalaska, Teller, and Gambell. GCI is also expanding coverage on the Kenai Peninsula and will have new towers online this summer to help Alaskans stay connected while fishing for reds and silvers. Recently, GCI completed a new cell site along the Haul Road which, until now, was the longest highway in the country without cellular coverage. “GCI spent more than $500,000 to cut that distance in half so that the more than 250 trucks that use the highway every day now have access to cell service near Coldfoot,” Handyside says. As an additional undertaking, GCI is launching a $40 million North Slope Fiber project. This will involve the company building a 250-mile fiber line between Coldfoot and Prudhoe Bay. The project provides greater connectivity, availability, and diversity to GCI customers on the North Slope.

Matanuska Telephone Association Extends Fiber A member-owned cooperative that serves rural Southcentral Alaska, Matanuska Telephone Association (MTA) has successfully navigated through a rapidly-changing com-

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munications industry over the course of its sixty-four-year history in the state. The company invested several hundred million dollars in its network, pushing fiber into subdivisions and businesses throughout its service area. Through its AlasConnect subsidiary—acquired in 2016—MTA is now the state’s leading provider of data center, futurefocused managed IT, and cybersecurity services, according to Eric Anderson, director of engineering, operations, and construction for MTA. In conjunction with a grant, MTA extended fiber up the Glenn Highway and connected its network to Copper Valley Telecom’s fiber network, another member-owned cooperative. MTA’s total investment was $4 million, and the project increased broadband Internet speeds, in some cases up to 1 Gbps. Anderson says MTA is changing with the times and evolving to be the leading, advanced technology provider in the state. He explains: “First, we were able to gain regulatory stability by working with our fellow Alaska telecommunications companies and our Congressional delegation to get the Alaska Plan approved by the FCC, which restores approximately $8 million in federal high-cost support we need in order to continue to invest in our service area. This in turn allows MTA to embark on a longterm construction program to invest hundreds of millions [of dollars] in new fiber optic infrastructure for our communities, with a goal of creating a state-of-the art network that rivals any comparable network in the country.” MTA’s capital budget is typically more than $20 million each year, according to Anderson. “With the approval of the Alaska Plan, MTA will continue to invest in the network to meet the growth of broadband Internet data usage and the demand of wireless traffic that is often supported and carried on MTA’s network,” says Anderson, who points out that MTA was the first provider to offer unlimited broadband Internet packages to its members. It was also, reportedly, the first to offer a tailored video streaming product—branded as MTA Stream—that allows customers to watch local TV programming via the Internet without having to subscribe to a full cable TV package. They can stream live TV channels to Roku devices, tablets, and smartphones, enjoying the freedom to choose additional subscription packages that fit their preferences. The Internet, Anderson says, plays an important role in everyone’s lives. Most businesses cannot function without it. Consumers rely on the Internet for entertainment and to communicate with family and friends via email and social media. And schools need fast Internet to educate society’s future leaders. “We are just beginning to see the evolution of what Internet technology can bring, and the future is unlimited,” he says. “MTA plays a vital role in providing a robust network that allows our customers access to state-of-the-art technology so they can connect when, where, and how they want.”

MTA Cable Splicer Nanette Hearn works on a fiber distribution panel at the new VistaRose Senior Housing complex in Wasilla. Photos courtesy of Matanuska Telephone Association

TelAlaska to Finalize Fiber Optic Project TelAlaska, which provides a full range of telecommunications products and services, is in the final phase of a multi-year project to www.akbizmag.com

September 2017 | Alaska Business Monthly

“The fiber project has allowed TelAlaska to significantly increase speeds for new and existing customers. In some cases, an existing customer’s speed has doubled at no additional monthly cost.”

—Jason Louvier Vice President of Operations, TelAlaska

install fiber optic cable between Moose Pass and Seward. The project, with a total cost of just under $1 million, should be completed this fall. The fiber optic project, which began last spring, was designed to increase capabilities and provide redundancy for the communities of Moose Pass and Seward. With the completion of this final phase, TelAlaska will be able to utilize the new capacity for product enhancements as well as provide opportunities for new products in the future, according to Vice President of Operations Jason Louvier. “The fiber project has allowed TelAlaska to significantly increase speeds for new and existing customers,” he says. “In some cases, an existing customer’s speed has doubled at no additional monthly cost.” The increased capacity into these communities allows TelAlaska to provide a better broadband experience for its customers, along with an ability to upgrade speeds in the future when it becomes necessary. In Seward, a worker moves earth to accomodate laying TelAlaska’s fiber cable in October 2016, approximately the midpoint of the project. Image courtesy of TelAlaska

Image courtesy of Matanuska Telephone Association

MTA contines to install fiber throughout their service area from Healy to Eagle River and Sutton; seen above is a MTA fiber pedestal.

TelAlaska also offers a unique benefit for its broadband customers in Seward. “The service is unlimited; we don’t meter usage and charge overage fees,” Louvier says. TelAlaska’s fiber optic project will also have a broader impact throughout Alaska. It Jason Louvier, will support increased Vice President of broadband capabilities Operations, TelAlaska that allow for advancements in telemedicine Image courtesy of and distance learning, TelAlaska both of which are needed in small, rural communities in Alaska. Louvier says the fiber optic project between Moose Pass and Seward is a milestone achievement under TelAlaska’s long-range improvement plans to increase the capabilities of its broadband networks. “There are twenty-one additional Alaska communities where we provide Internet service,” he says. “Unlike Seward, where a terrestrial network is possible, our other sites are in remote rural areas where satellite networks are currently our only option. While we don’t have any concrete plans to announce at this time, we continue to monitor opportunities to increase capacity in those areas as well.” R Tracy Barbour is a former Alaskan.

Alaska Business Monthly | September 2017 www.akbizmag.com

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HEALTHCARE

Employee Wellness Programs A healthy workforce gets the job done ompanies of all sizes in all industries face the daily reality that an employee might become afflicted with an ailment or suffer an injury that slows momentum, adversely affects performance and productivity, and dampens company morale. To counter the potential loss of work caused by a sick employee, medical providers, nonprofit organizations, businesses, and fitness centers are making concerted efforts to design and implement programs to improve employee wellness. This wellness-based focus may very well help change Alaska’s lagging employment statistics by encouraging a healthy mindset among the state’s workforce. A July 2017 “Alaska Economic Trends” report from the Department of Labor and Workforce Development ranks Alaska last in terms of job growth and unemployment. There are a variety of factors that contribute to stagnate or declining employment rates. For example, the fluctuating prices of Alaska’s natural resources, along with seasonal work variances, affect Alaska’s employment statistics, but there is another factor often overlooked by employers: worker health. While there are dozens of methods a business owner can promote to incentivize health and wellness in the workplace, the science behind such efforts is just as important as the programs themselves. Alaska’s employers and workers are fortunate enough to have a multitude of choices to help them improve their health and wellbeing through preventative measures and wellness programs.

Medical Group of Alaska Wade Erickson, MD, and CEO Billy Houck work diligently through their collective of five clinics and centers to ensure Alaskan employees and their family members have access to wellness counseling and treatment. Medical Group of Alaska (MGA) offers family medicine, urgent care, pharmaceutical, physical therapy, and pain management treatment options for Alaskan workers in Mat-Su and Eagle River, with anticipated expansion into Anchorage in the fall of 2017. MGA is the umbrella company under which Capstone Family Medicine operates. “We offer an extensive employee wellness program,” says Erickson. “From drug testing and worker compensation evaluations to pre-employment physicals and screening, Capstone Family Medicine and our family of companies are active in patient coverage.” Erickson adds that occupational health licensing—along with hearing and respiratory services, drug screening, firefighter preemployment exams, flight and CDL physicals, and standard employment medical evalua46

Image courtesy of The Alaska Club

By Tom Anderson

Master Beachbody Trainer Steve Dunn teaching “Insanity” at The Alaska Club South with his regular weekly participants.

tions—are all part of MGA’s wellness program. Houck has worked with Erickson since he launched Capstone Family Medicine’s business development division in 2010. “What’s unique about our practice is that we apply our philosophy to our own employees,” says Houck. He explains that from dental to medical coverage, MGA strives to inspire its employees to live and be healthy. “We offer nutrition education as well as fitness and ‘Ideal Protein’ planning [and] medically-monitored weight-loss programs. We promote use of fitness clubs, offer mental and emotional health counseling for employees facing personal challenges, and we even hold off on vending machines in our facilities, preferring catering and supporting local, nutritious choices for events and catering needs at local restaurants in the Valley like Bistro Red Beet and Turkey Red,” says Houck, who adds that keeping Alaskans healthy, particularly at work, is a priority for his medical team. In an occupational health and wellness sense, he says employers most fear a worker’s absence from the job. MGA works with Alaska businesses as a one-stop wellness source for employees and their families. “This results in a win-win for commerce and community,” says Houck.

The Alaska Club Alaska business owners and workers have everything to gain from promoting good health and fitness in the workplace. Physically active employees are more productive, healthier, happier, and even more engaged—all of which contribute to a positive bottom line. The Alaska Club adopted this philosophy more than two decades ago and today has built a successful corporate wellness partnership program. Tina Day, The Alaska Club’s director of marketing and public relations, says many Alaska

businesses offer their employees memberships to the club as a way to incentivize good health practices and to engage their workforce. She says recent health research indicates that when employees are physically active, they take fewer sick days and 15 percent to 25 percent fewer disability days than inactive coworkers. “Employees who exercise one or more times per week have lower healthcare costs,” says Day. Day adds there are many ways to promote exercise in the workplace. She says employers can host fitness parties to inspire team building and wellness; fitness challenges for company workers and their families; fitness seminars; and wellness fairs, all of which The Alaska Club and its wellness partners offer. The company’s corporate wellness programs for Alaska businesses include child care, personal training, hydro- and body massage, physical therapy and yoga, tanning to combat seasonal affective disorder, and access to a variety of spa and fitness facilities at fourteen Alaska Club facilities statewide. Print materials about wellness, distributed by The Alaska Club, are eye-opening. For example, 40 percent of American adults are obese; 54 percent of workers are concerned about health problems; and 62 percent of Americans say work has a significant impact on their stress level. The company’s business wellness packet also explains how employee health can help the bottom line by lowering employee medical costs. That doesn’t include the personal benefits of healthy employees such as improved attitude and increased energy.

Health Fairs are Integral Alaska Health Fair (AHF) is a nonprofit established in 1980 with the goal of promoting health education and screenings statewide.

Alaska Business Monthly | September 2017 www.akbizmag.com

AHF was founded “on the dream of a physician who believed the road to longevity rests in healthy lifestyles, which develop, in part, through education and screenings,” says the AHF website. AHF holds roughly one hundred health fairs annually throughout Alaska. The health fairs offer information and services for employers large and small from a variety of industries including oil and gas, financial services, transportation, and nonprofits. AHF clients include Eni Petroleum, Credit Union 1, Chugach Electric, Ravn Airlines, Alaska Insurance Company, NANA, and many others. As many as 20,000 people attend AHF events each year, and no other state has a dedicated nonprofit like AHF to provide affordable blood tests, screenings, and health education on such a grand scale. “Implementing wellness programs at work has many benefits: reduced absenteeism, improved employee morale, improved productivity. I am pleased to say that our worksite wellness program is probably the simplest and the easiest to manage because we do all of the leg work,” says Andrei Chakine, executive director of AHF. “Most importantly, we know that our clients’ employees love our worksite events, look forward to them, and ask for them year after year. Many of our clients have been with us for over a decade. We are proud to report that our client satisfaction rate is over 99 percent.” AHF worksite fairs are tailored to meet each organization’s wellness goals. Events usually include health education on desired topics, health screenings, massages, chiropractic care, natural health, safety, cooking demonstrations, and wilderness survival. Additionally, AHF can provide basic to advanced training for staff and management and helps develop and manage a simple yet effective wellness program that goes beyond what is offered at the annual worksite health fair events.

male-related healthcare issues. Epoch says its approach is designed to analyze symptoms common to men and pair those symptoms with appropriate medical treatments, regular proactive health screenings, and lifestyle changes that help men reach a healthier, happier state, according to its website. Epoch’s Anchorage clinic offers blood screening, exams, and counseling on weight control, exercise, and nutrition. “Epoch’s outreach is primarily to local Alaskan businesses,” says CEO Steve House. “Our objective is to encourage employees to get regular physicals and health screening. Serious ailments like colon and prostate cancer are prevalent with males; but add maladies like heart disease, obesity, alcohol and tobacco use, and poor exercise habits and suddenly an employee may not be able to perform basic duties, let alone keep working at all.” “Americans are not as healthy as they used to be,” says Tom Nittler, MD, National Medical Director for Epoch Health. “We’re finding a growing trend with American workers. They have higher cholesterol, are heavier in weight, and cardiac disease is as prevalent as it’s ever been.” Epoch’s vision is to expand throughout Alaska, with telemedicine opportunities that afford businesses outside Anchorage access to basic healthcare screening and exams so employees are able to stay on the job. House confirms that men typically don’t proactively seek out a medical provider. They have a tendency to procrastinate, which can exacerbate illness. “A company or nonprofit organization’s manage-

ment can craft a plan for its employees incorporating Epoch’s healthcare services, including wellness checkups and testing, which becomes integral to the employment and of benefit to employer and employee,” House says. Nittler notes that bad habits can cause a domino effect. Epoch’s staff encourages eating healthy by choosing nutritious foods at lunch and exercising to improve core muscles, flexibility, and balance. “Epoch wants healthy, happy employees. That’s our primary objective. The extrapolated benefits range from a strengthened workforce and economy to uninterrupted paychecks and secure families, all of which make our job that much more rewarding. The consequences from poor health and habits go far beyond pain and suffering because one’s pocketbook and overall employment could be affected too,” says Nittler.

PTSD on the Rise Another dimension of employee wellness is addressing the prevalence of post-traumatic stress disorder (PTSD), particularly in military veterans. When military personnel are placed in harm’s way during combat deployments, the psychological trauma can manifest in the form of PTSD, which affects their performance and mental stability in life and at work. Valor Corporation is a veteran-owned, Alaska-based nonprofit focused on veteran housing, workforce development, sustainable agriculture, and PTSD support. “We’re finding a growing number of our veterans are battling PTSD,” says Bodey Turner, COO of Valor. “Veterans

Epoch Health Men are half as likely as women to visit the doctor on an even semi-regular basis, according to survey data collected by the US Centers for Disease Control and Prevention. Further, about 53 percent of men report that their health is not something they talk about, preferring to discuss current events, sports, and work, according to a 2016 national survey from Cleveland Clinic. The survey, part of Cleveland Clinic’s educational campaign called MENtion It and designed to encourage men to open up about their health concerns, reports that 40 percent of men don’t receive annual checkups and 19 percent only go to the doctor to prevent a loved one from worrying or repeatedly reminding them to get checked out. Their reasons for not visiting the doctor on a regular basis include feeling their health is private, being uncomfortable receiving certain exams, being afraid of receiving bad news, and feeling uncomfortable with the entire examination process, according to Cleveland Clinic survey results. Epoch Health, founded in 2012, operates clinics in Arkansas, Missouri, Arizona, and Alaska that provide health and wellness programs designed specifically to address www.akbizmag.com

September 2017 | Alaska Business Monthly

WHY YOUR EMPLOYEES NEED A WELLNESS PROGRAM

40% of American adults ages 40-59 are obese.

54% of workers are concerned about health problems caused by stress*

Infographic courtesy of The Alaska Club

29%

of Alaskan adults are considered obese by The State of Obesity project**

62%

of Americans say work has a significant impact on stress levels*

EFFECTS OF CHRONIC STRESS High levels of stress can cause your workers to lose focus by leading to insomnia, depression and anxiety. It affects their health by leading to high blood pressure, muscle pains and a weakened immune system. Help your business and your employees by providing them with a healthy outlet to de-stress and relax.

GET UP & MOVE!

SITTING FOR 8 OR 9 HOURS CAN INCREASE... Diabetes by

91% 14% 13% Cancer by

Heart disease by

Sources: Center for Disease Control and Prevention. Web. January 1, 2017. Overweight and Obesity: Adult Obesity Facts. http://www.cdc.gov/obesity/data/adult.html Biswas A, Oh PI, Faulkner GE, Bajaj RR, Silver MA, Mitchell MS, et al. Sedentary Time and Its Association With Risk for Disease Incidence, Mortality, and Hospitalization in Adults: A Systematic Review and Meta-analysis. Ann Intern Med. 2015;162:123-132. doi:10.7326/M14-1651 Stress Statistics, Anxiety Statistics and Relaxation Tips. January 1, 2017. Adrenal-Failure.com. *http://www.adrenal-failure.com/stress-statistics.html **http://stateofobesity.org/states/ak/

THEALASKACLUB.COM

routinely contact Valor Corp., struggling with emotions exacerbated at their place of employment. That’s why our organization is imploring local businesses, big and small, to integrate education and support opportunities for employees suffering from PTSD.” Turner says PTSD is more common than employers may realize. He adds that it’s a lifelong battle that veterans can face. Employers who are cognizant and proactive helping those with PTSD will benefit from their eventual success and stability. “Mental wellness should be part and parcel to any comprehensive Alaskan business and training programs,” he says.

Making a Healthy Difference in Business When it comes to health and wellness in the workplace, few Alaska companies do as much as GCI does. GCI operates more than thirty retail stores statewide and employs more than 2,300 workers in Alaska and the Lower 48. “We take employee wellness seriously,” says Heather Handyside, senior director of corporate communications for GCI. “Anything we can do to keep our workforce healthy and promote healthy lifestyles where they reside and work makes our company culture successful and the Alaska economy robust.” GCI’s wellness philosophy revolves around employees having access to opportunities for personal improvement. Handyside says the company encourages employees to seek nutrition, drug and alcohol, and fitness counseling and guidance as needed. The company offers a discount to local gyms in communities where fitness centers are located. GCI also sponsors numerous events and donates to health advocacy groups such as the Alaska Women’s Summit, Strive Against Breast Cancer, and several 48

charity walks and runs. Athletes, such as award winning cross-country skier and Alaskan Kikkan Randall, help encourage fitness and wellness by teaming up with Alaska Pacific University sports teams and NANA Corporation. Mental health wellness is also very important to GCI management. “We want to [assure] our employees that we recognize depression and mental health challenges shouldn’t be stigmatized,” says Handyside. “GCI understands people have personal setbacks. We have a very strong internal, confidential program with online experts and support if an employee feels distress because of family problems, tragedy, drug or alcohol addiction, or myriad other reasons. This is statewide, 24/7, from small communities to larger urban centers.” GCI offers full-time employees healthcare benefits after just one month of employment. The goal is to ensure employees are mentally, emotionally, and physically able to perform a job they can enjoy and appreciate. The company also offers annual mobile mammography testing for all employees and staff. Handyside adds that, through GCI’s insurance provider, employees may receive biometric screening that affords a $108 monthly credit on their insurance premium. If a spouse takes the screening, an additional $54 credit is given. “The medical insurance payment credit is intended to be an incentive to our employees and their partners so they monitor their health, can receive early treatment if a problem arises, and benefit from a reduction in monthly fees for being proactive in wellness,” says Handyside.

TOTE Maritime TOTE Maritime is a shipping and transportation company operating at the Port of Anchorage that provides twice-weekly shipping

services to Alaska and Puerto Rico. TOTE’s Alaska Division has approximately forty employees, about a third of the company’s worldwide workforce. Grace Greene is the company’s vice president and Alaska general manager. “Employee wellness is of great importance to our ownership and management,” says Greene. “Some of our employees and contract personnel are working in harsh, remote conditions. We offer various employee benefits like medical insurance, nutrition education, safety training, and incentives to remain active and healthy.” Greene says TOTE Maritime sees the big picture of wellness, encouraging its employees to maintain their fitness and emotional health. “Our company values are safety, employee, customer and environmental commitment, and integrity,” she says. “These values are tethered to a health and wellness mentality that keeps our family of employees at work and gainfully employed. A lot of people depend on our personnel, from clients to their respective families.” TOTE Maritime is also active in community support statewide, from the American Heart Association’s “Go Red for Women” advocacy to help reduce heart disease and stroke to the annual Polar Plunge held by the American Red Cross. Greene serves on the Board of Directors for the Providence Foundation, which actively supports the Alaska CARES program, supporting children to heal and thrive after the trauma of abuse. “TOTE Maritime communicates with its employees. We work to maintain wellness through internal programs and community support because we recognize employee health is the backbone to a successful business,” says Greene. “From nutritious meal and vending services at our facilities to top-end safety gear and on-site fitness facilities at several of our regional offices, our collective direction is to make employees comfortable, safe, and focused on their responsibilities. Our safety record indicates TOTE Maritime’s wellness model is working, and we’re proud of that success.”

Health on the Horizon Alaskan employee wellness is and will remain an important factor in operating a successful business. “Today, Alaska employers have a much better understanding of the importance and benefits of an employee wellness program in comparison to a decade ago. Exercise in the workplace really is a smart business strategy. It leads to healthier families and a more engaged workforce,” says Robert Brewster, CEO of The Alaska Club. Access to healthcare is a primary objective at Medical Group of Alaska. “Our goal is to keep employees working. We accomplish this with modern, efficient protocols and treatment, both onsite and through telemedicine,” says Erickson. “The results are most often healthier patients, uninterrupted employment, and a smooth-running business environment that puts safety first. That’s what employee wellness is all about, from education to treatment; keeping Alaskans healthy and on the job.” R Tom Anderson owns a public relations firm and is a freelance writer in Alaska.

Alaska Business Monthly | September 2017 www.akbizmag.com

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Alaska Native Business

Alaska Native Regional Corporation 2017 Review Corporations plow through recession with continued shareholder, community support By Julie Stricker

ince their creation more than forty-five years ago, Alaska Native regional corporations have become a remarkable economic engine in Alaska. Together, they account for billions of dollars in revenue and employ thousands of Alaskans. Despite a stubborn statewide recession amid low oil prices, the diversity of these twelve corporations keeps them strong and profitable. The Alaska Native Claims Settlement Act was passed in 1971 to settle indigenous land claims and open the way for the trans-Alaska oil pipeline. Through ANCSA, Alaska Natives received 44 million acres of land and $962.5 million, after which they set up twelve regional corporations to receive and distribute those entitlements. A thirteenth corporation also was set up for Alaska Natives outside the state; however, it did not receive a land grant and is currently inactive. The regional corporations were tasked with dual economic and social mandates. They set up for-profit enterprises, which today operate subsidiaries around the globe and employ tens of thousands of people. They also spend millions of dollars each year to support shareholders through educational opportunities, scholarships, internships, elder benefits, and programs to maintain their cultures, languages, and heritage. One ANCSA clause, 7(i), acknowledges that some regions are richer in natural resources than others and requires corporations to share a portion of revenues created through resource development, such as minerals, oil, and timber. After certain deductions, the corporation can keep 30 percent of the resource revenues and distribute the remaining 70 percent to the twelve Alaska-based regional corporations (including itself). Therefore, low oil and commodity prices in 2016 affected all of the regional corporations, resulting in millions of dollars less distributed through 7(i) sharing, a drop of nearly 40 percent from 2015. As in years past, government contracting subsidiaries set up under the Small Business Administration’s 8(a) program provided the bulk of revenues for many of the corporations, despite increasing competition for contracts and tighter regulations.

Ahtna, Inc. Despite the recession in Alaska and a general downturn in government contracting, Glennallen-based Ahtna, Inc. had a strong year in 2016 with overall revenues of about $218 million, a 16 percent increase compared to 2015. 50

The majority of Ahtna’s income is derived from service contracts in both the federal and commercial arenas. It divides its businesses into four segments: government and technical contract services; construction and pipeline services; resource development; and real estate. Ahtna successfully spudded the exploratory Tolsona No. 1 oil and gas well eleven miles west of Glennallen in 2016. It has not announced any results to date, but is conducting additional work at the mile-deep well bore and is interested in additional exploration. In 2016, Ahtna purchased AAA Valley Gravel in Palmer. The corporation is also looking at developing a resort complex near Denali National Park. In recent years, Ahtna has taken a strong stance toward protecting its land and natural resources for the benefit of its 1,900 shareholders. In November 2016, the Ahtna Intertribal Resource Commission, a nonprofit not directly associated with the corporation, signed a cooperative wildlife management agreement with the US Department of the Interior that oversees moose and caribou on federal land in the Ahtna region, giving Ahtna tribal members a greater role managing wildlife. Ahtna is working with a company, Finite Carbon, to take advantage of its extensive timber holdings by leaving the trees standing. The corporation discovered it has more than eight million tons of carbon stored on a half-million acres, which can be used in a carbon offsetting program that will sell credits to companies such as utilities and refineries to offset the carbon they release into the air. It is Ahtna’s largest project to date. Its 2016 dividend of $5.75 per share is the highest in a decade. Also in 2016, Ahtna distributed $12.9 million in total shareholder benefits, including $8.4 million in wages and benefits, $1.5 million in dividends, $539,000 for its settlement trust, and $2.5 million in other contributions such as memorial support, shareholder development, community support, scholarships, and cultural and traditional uses of Ahtna lands.

The Aleut Corporation The Aleut Corporation boosted its government contracting business by 44 percent in 2016, giving the corporation a net profit after a loss in 2015. President Thomas Mack calls 2016 “a great year for progress and financial improvement.” The corporation has subsidiaries in government contracting; fuel delivery, sales, and storage; commercial and residential real

estate; gravel; instrumentation and controls sales; mechanical contracting; and oil field industrial services. Total revenues from all sectors rose to $171.66 million, with a net income of $3.03 million. Shareholders received a $4 per share dividend. The corporation put together a fourpronged approach to reverse its 2015 losses, says CEO Matthew Fagnani in a message to shareholders. The results “significantly exceeded the financial plan for the year and exceeded market performance for companies in similar lines of business,” Fagnani says. Operating companies provide 69 percent of Aleut’s revenues, while the remaining 31 percent comes from 7(i) funds. In 2016, Aleut received $3.41 million from 7(i), a 41 percent decrease from 2015. Aleut donated more than $1.05 million to charitable and not-for-profit groups that benefit its 3,900 shareholders, including $900,000 to The Aleut Foundation. It also funds seven cultural camps, five in Aleutian communities, one in Anchorage, and one in the Pacific Northwest.

Arctic Slope Regional Corporation Arctic Slope Regional Corporation (ASRC) continued to diversify its portfolio in various markets in 2016. The Barrow-based corporation is the largest Alaska-owned corporation, with holdings in four major categories: petroleum refining and marketing; government technical services; energy services; and construction. It had $2.37 billion in revenues in fiscal year 2016, down from $2.52 billion in 2015. ASRC’s wholly-owned subsidiary ASRC Federal Holding Company acquired Vistronic Intelligence and Technology Solutions, and ASRC Construction Holding Company acquired Builders Choice, Inc. The corporation created a new platform holding company, ASRC Industrial Services LLC, which includes Petrochem Insulation, Inc.; Restoration Services, Inc.; and its recently-acquired Finite Holdings. In an effort to expand core operations in Alaska, ASRC added an asphalt oil plant at Petro Star Inc.’s North Pole refinery. ASRC also completed construction of a shop in Deadhorse for ASRC Energy Services, which adds to service offerings on the North Slope. This summer, Petro Star acquired Terminal 1 at the Port of Anchorage from Tesoro. This acquisition was the culmination of a year’s worth of efforts by the Petro Star and ASRC senior leadership and will allow Petro Star to enter the Anchorage retail and commercial fuel market, says ASRC Communications Manager Morgan Thomas. In addition, ASRC recently joined the Arctic Economic Council as its first Northern Partner, allowing the corporation to take part in discussions relating to responsible economic development and business activity in the circumpolar Arctic. ASRC’s 13,000 Iñupiaq shareholders benefit from employment, education, and training opportunities, including internships, student camps, technical certifications, educational workshops, and leadership training. These of-

Alaska Business Monthly | September 2017 www.akbizmag.com

Bering Straits Native Corporation Last year was one for the records for Bering Straits Native Corporation (BSNC), largely on the strength of its government service contracting subsidiaries, according to President and CEO Gail Schubert. In 2016, overall revenues increased to $326 million, $243 million of which was generated through contracting. BSNC’s net income was $14 million. However, the percentage of revenue coming from contracting, which at one time was more than 90 percent of BSNC’s income, has been dropping as the Nome-based corporation diversifies its holdings. In 2016, it bought the retail chain Alaska Industrial Hardware. Looking toward the future and a warmer Arctic, BSNC sought conveyance of land at Point Spencer/Port Clarence, a deep-water port northwest of Nome, as part of its ANCSA land claim. In February 2016, President Barack Obama signed the Coast Guard reauthorization bill, which included provisions for the conveyance. The corporation is working with the Coast Guard, the state of Alaska, and Bureau of Land Management to implement the terms of the conveyance. “Port Clarence is the only natural deep water harbor and port of refuge along Alaska’s Arctic coast, and we continue to believe that it will gain importance as shipping, resource development, and Arctic tourism grow in the coming years,” Schubert says. BSNC paid out $2.5 million to its 7,500 shareholders, which included a special $500 elders’ dividend. It also awarded $212,700 to shareholders and descendants for postsecondary education and maintains a paid summer internship program. Bristol Bay Native Corporation The end of fiscal year 2016 capped a five-year strategic planning cycle that saw tremendous growth for Bristol Bay Native Corporation (BBNC). BBNC has operations in construction, government services, industrial services, and tourism with 2016 revenues totaling $1.51 billion, down from 2015’s $1.74 billion. It paid out $17.5 million in dividends to its 10,350 shareholders. While operating companies grew in 2016, the corporation saw a loss in its investment portfolio. BBNC continues to look for strategic acquisitions in several sectors. According to its annual report, BBNC’s largest subsidiary in its industrial services line is Peak Oilfield Service Company. Peak and BBNC’s other industrial service companies operate primarily in Alaska and have been affected by low oil prices and uncertainty in the oil and gas industry. The outlook for 2017 in this sector was cloudy. BBNC plans to increase the benefits afforded by 8(a) contracting and is implementing an initiative that includes establishing joint ventures and mentor/protégé arrangements between its www.akbizmag.com

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September 2017 | Alaska Business Monthly

ALASKA NATIVE BUSINESS SPECIAL SECTION

ferings span across the North Slope villages, the state of Alaska, and the Lower 48. ASRC has distributed an average of $16 million each year in benefits to its shareholders in the form of scholarships and community supporting funding, as well as training and development.

ALASKA NATIVE BUSINESS SPECIAL SECTION

government contracting subsidiaries and village corporations and tribes within its region. Over the past few years, BBNC also has focused on creating opportunities for shareholders within its region, which centers on Bristol Bay in southwest Alaska. The Bristol Bay Development Fund invests in businesses such as hydroponic gardening in Dillingham and a reindeer-herding project in Port Heiden. BBNC is also backing the Native Place Names Project, an online database that collects information, names, pronunciations, photos, stories, and news about culturally significant places throughout Bristol Bay. It supports an elders’ home in Dillingham called Grandma’s Place. The AlaskaNative.Life program supports local artists.

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Calista Corporation When ANCSA was passed, only Alaska Natives born before December 18, 1971, were allowed to become shareholders. In 1991, an amendment to ANCSA allowed the corporations to enroll those born after the deadline. Five corporations—Doyon, Sealaska, ASRC, NANA, and Ahtna—voted to enroll descendants. In 2015, Calista shareholders did so as well, opening enrollment in January, according to Calista Communications Manager Thom Leonard. The move is expected to triple the number of Calista shareholders from 13,000 to 43,000. In July, Leonard says, 13,500 applications have been submitted, half of which are from people eighteen to forty-four years old. The youngest was born May 2017. Nearly threefourths of the applicants live in the Calista region in southwest Alaska. As its shareholder base expands, the corporation continues to thrive. Calista has operations in defense contracting; construction; heavy equipment sales, rental, and service; real estate; environmental services; marine transportation; oil field services; and fiber optic services. Total revenues grew to $492 million in 2016, up from $460 million in 2015. Calista closed two subsidiaries, Solstice Advertising and Futaris, Inc. “Calista also continued our efforts to expand geographically by searching for opportunities in the Lower 48, including our construction and real estate operations,” Leonard says. Subsidiary Tunista Construction earned a safety excellence award from Associated General Contractors of Washington. Since its scholarship program began in 1994, Calista nonprofit Calista Education and Culture (CEC) has awarded $4.2 million in scholarships, with more than half of that being awarded since 2010. With support from the Alaska Humanities Forum, CEC hosts a culture camp each year for youth that includes inviting new teachers in the Calista region to learn about its Yup’ik, Cup’ik, and Athabascan cultures. A local elder couple in the teacher’s community essentially adopts the teacher, introducing them to families and taking them to community events and answering questions about culture, Leonard says. The goal is to reduce turnover rates. CEC was awarded a grant to create the Yuuvarag Project with the Lower Kuskokwim School District. Yuuvarag means “the

Alaska Business Monthly | September 2017 www.akbizmag.com

Chugach Alaska Corporation Chugach Alaska Corporation had a “transformational year” in 2016, with all of its business lines delivering strong financial results. Overall revenues totaled $842.4 million with $32.9 million in net income. The corporation, which has a land base in Prince William Sound, is building a more powerful, diversified portfolio. It has leveraged its long history of facilities management and maintenance work for federal government contracting customers and is applying its expertise to the commercial facilities service and energy services sectors. In doing so, Chugach more than doubled the percent of gross profit from commercial businesses and investments from 8 percent to 18 percent. In October, Chugach completed its largest acquisition to date, purchasing Chicagobased facilities services provider Rex Electric & Technologies. It also completed permit applications and an environmental analysis related to constructing a commercial hard rock quarry in Port Gravina. Chugach sold its coal rights within the Bering River Coal Field to New Forests, a sustainable forestry and conservation investment manager. New Forests retired the rights by transferring them to The Nature Conservancy and the local Native Conservancy land trust. The sale allows Chugach to provide financial benefits to shareholders including its Chugach Heritage Foundation (CHF) Endowment and Settlement Trust. Chugach is beginning a forest carbon offset project on 115,000 acres of its timberlands, securing revenue under California’s cap-andtrade program while committing to a longterm carbon management strategy. The project will benefit shareholders by generating significant revenue over the life of the project as credits are sold, while also maintaining the land for cultural and subsistence use. In 2016, Chugach returned $11.5 million in shareholder programs and benefits, including $9 million in shareholder and elder dividends. It’s the seventeenth consecutive year Chugach has distributed dividends, a total of $120.5 million. Chugach has 2,600 shareholders. CHF awarded $760,000 in scholarships. Chugach also contributed $2.6 million to the CHF endowment in 2016, bringing the balance to $6.3 million, and pledged an additional $24 million in future contributions to CHF. www.akbizmag.com

Cook Inlet Region, Inc. Low oil prices hit some sectors of Cook Inlet Region, Inc.’s (CIRI) business hard in 2016. The Anchorage-based corporation owns 7 percent of Cruz Energy Services, which moves oil rigs in North Dakota’s Bakken oilfield. When CIRI acquired its interest in the company in 2012, Cruz had 205 oil rigs in Bakken. Today there are only 34. As a result, CIRI’s revenues in the oilfield and construction services sector are less than half of what they were three years ago, President and CEO Sophie Minich said in a message to shareholders. More than 80 percent of CIRI’s resource development revenue comes from natural gas production, which declined 38 percent in 2016. Despite the challenges, and due in part to the diversity of its operations, CIRI’s total overall revenue grew to $289 million in 2016, with a net income of $9.1 million. However, other sectors are performing well and CIRI is continuing to add to its energy portfolio. Its North Wind Group is expanding to new geographic regions and secured large, multi-year contracts with the US Department of Energy. It also acquired long-time competitor Portage, Inc. CIRI is a major investor in the Middletown Energy Center, a large natural gas-fired power plant in Ohio that will replace aging coal plants in the region. It is scheduled to go into operation in 2018. In Anchorage, CIRI’s Fire Island Wind reported record output in 2016. Fire Island Wind and CIRI’s other wind energy investments—Capistrano Wind Partners, Palouse Wind, and Briscoe Wind— boosted the corporation’s finances. CIRI exited the tourism industry when it sold its high-profile CIRI Alaska Tourism Corporation in 2016 to Viad Corporation. Meanwhile, its real estate sector broke ground on a thirteen-acre oceanfront subdivision in Kauai, Hawaii. CIRI supports a range of nonprofit organizations, which provide healthcare, housing, employment, education, legal advocacy, and other services. Doyon Limited Low oil prices plagued Fairbanks-based Doyon in 2016, dropping its operating income below 2015 levels. However, the company still marked its second-highest income in its forty-five-year history, marked by success in other operations, such as Doyon Utilities. Overall, Doyon recorded $305.41 million in revenues, with a net profit of $51.59 million, just below 2015’s record. That’s in large part due to the diverse family of companies Doyon runs, with operations in oil field services, government contracting, land and natural resource development, utility management, security, engineering, facility management, construction, and tourism. The corporation paid more than $33 million in shareholder wages in 2016, as well as a $5.99 per share dividend to more than 19,000 shareholders. It was the 30th consecutive dividend for the corporation. Subsidiary Doyon Drilling added a new state-of-the art rig to its fleet in 2016. Rig 142 is designed to operate in Alaska’s extreme arctic conditions and is under contract to ConocoPhillips for five years.

Doyon is continuing its oil and gas exploration efforts in the Nenana/Minto Flats Basin. A well drilled in summer 2016 did not show commercial quantities of oil and gas but confirmed the presence of an active petroleum system. The company is planning a 3D seismic survey in the northern part of the basin for winter 2017. Since 1999, the corporation has contributed $25 million to the nonprofit Doyon Foundation, which funds scholarships and language preservation programs, among other shareholder benefits.

Koniag, Inc. For the third consecutive year, Koniag, Inc. showed an increase in net earnings in fiscal year 2016, amidst a reduction in corporate and general expenses. The Kodiak-based corporation, with 3,850 shareholders, saw steady growth from its operating companies. “These trends paint a picture of Koniag ‘doing more with less,’ which we have found is achievable with focus and efficiency,” CEO Dr. Elizabeth Perry said in a letter to Koniag shareholders. Koniag had $252 million in revenue in 2016 and $7.67 million in net earnings. While gross revenues were slightly below 2015 levels, they still exceeded 2014 revenues by 31 percent. About 89 percent of Koniag’s operating revenues come from professional services subsidiaries, which include companies working in information technology services and government services. “Koniag’s investment in these two sectors is intentional, as the commercial sector provides balance to risks associated with federal spending uncertainty, and vice versa,” Perry says. Its information technology services company formed two new subsidiaries in Hong Kong and Singapore and acquired a technology design services company in 2016. The government services sector is continuing to win competitive federal contracts that are projected to return consistent revenue streams over the next several years. The remaining 11 percent of operating revenues come from Koniag’s technical services, oilfield services, a granite quarry, and tourism. Due to its continued earnings improvement, Koniag shareholders received a $5 per share dividend. Koniag also contributed $374,000 to the Koniag Education Foundation, as well as donations to Alaska Native organizations such as the Alutiiq Museum and Archaeological Repository, Alaska Native Heritage Center, and Dig Afognak. Koniag also developed an advocacy plan that outlines critical support and services that will improve the lives of its shareholders, such as access to the Alaska Marine Highway System and subsistence resources. NANA Regional Corporation NANA Regional Corporation settled into operations under President and CEO Wayne Westlake, who took the helm of the Kotzebuebased corporation in February 2015. NANA has operations in fifty states, fifteen countries, and four continents in its core areas of resource development/mining; federal and commercial contracts; and oil and gas support. In 2016, NANA posted revenues of $1.3 billion. NANA was able to partially offset the

September 2017 | Alaska Business Monthly

ALASKA NATIVE BUSINESS SPECIAL SECTION

way of being” in Yup’ik and refers to a welldefined set of cultural values encompassing traditional personal life skills. Yuuvarag is leading a full and fruitful life with respect for oneself, others, and nature. Calista also offers an internship program that placed twenty interns in Calista corporate offices in Bethel and Anchorage, as well as its subsidiaries. Since 2014, Calista has paid dividends twice annually. The spring dividend is based on operations, while the fall dividend is from its Akilista investment portfolio. In 2016, Calista distributed $8.57 million in dividends, bringing total dividends to $52.1 million since Calista’s inception. Calista elders have received an additional $5 million in dividends since 2008.

ALASKA NATIVE BUSINESS SPECIAL SECTION

downturn in oil and gas due to ten-year highs for the price of zinc at its Red Dog Mine. NANA paid shareholders, partners, and affiliates, many of whom work at Red Dog, $64 million in wages in 2016. “We are happy with the upswing, recognizing that metals are a cyclic commodity and one needs to plan for the ups and downs,” says Amy Hastings, senior director for corporate communications. The downturn in the oil and gas industry has affected every Alaska business, she says. “Our clients in the industry have been with NANA for over thirty years, and we will continue to support them fully. We are confident that this market swing will trend up again.” In the eastern part of the NANA region, Trilogy Metals partnered with South32 to start a $17 million field season in the Ambler mining district known as the Upper Kobuk Mineral Project. NANA also supports social and cultural programs, contributing about $2.9 million in 2016. It also supports the Aqqaluk Trust, contributing $1 million in 2016. The trust awarded 326 scholarships for a total of $752,483 in 2016.

Sealaska Sealaska’s strategic focus has been to grow its business income since a major reorganization in 2012. Its efforts are paying off, with a $15.2 million increase over the last four years. The Juneau-based corporation has operations in natural resources, government services, and natural foods. It is focusing on relevant businesses close to Southeast Alaska and the Pacific Northwest such as remote project management, environmental monitoring, data analytics, and natural foods that include a platform of opportunity for Sealaska shareholders. In 2016, the corporation saw total revenues of $145.51 million, with net income of $14.033 million. As part of its 2012 strategic plan, Sealaska bought a minority interest in Independent Packers Corporation, a custom seafood processor in Seattle. Its goal is to “develop and market products in a way that builds on the unique culture, knowledge, and heritage as Tlingit, Haida, and Tsimshian people.” While timber has long formed a key role in Sealaska’s business model, carbon sequestration offers another way to benefit from one of Southeast Alaska’s most abundant resources. In 2016, Sealaska created a 155,000 acre carbon bank from which the corporation will earn carbon credits that it can sell to carbon-emitting companies to mitigate or defer global warming. In 2013, Sealaska created the nonprofit Spruce Root, Inc. to provide financial and technical assistance to shareholders. It invested nearly $1 million in loans to eight businesses in four communities. Sealaska also contributed $1.6 million in cash and in-kind services in support of the Sealaska Heritage Institute. It also contributed $539,500 toward scholarships. R

Julie Stricker is a journalist living near Fairbanks. 54

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Alaska Native Business

Koniag, Inc.’s CEO Dr. Elizabeth Perry ‘Sharing the catch’ By Tasha Anderson

n May, Koniag, Inc.’s Board of Directors added to their existing core values—planning for the long term, celebrating our heritage and culture, embracing diversity, being open and honest, and having pride in our work—the newest core value: sharing the catch. The Summer 2017 Quliyanguapet, the Native Regional Corporation’s newsletter, explains, “‘Sharing the Catch’ is a core value rooted in the act of sharing. Sharing embodies the Alutiiq cultural values of generosity and selflessness. In Alutiiq communities, providers share their catch with others, and all community members are valued for the various ways they do so. As a community, Alutiiq people celebrate the sacrifice and commitment of our providers, honor our interdependence on each other, and remember that resources must be sustained to catch—or provide—for future generations.”

A Social and Cultural Mission Elizabeth Perry, PhD, explains it was the company’s values that drew her to her current position as Koniag’s CEO, which she took on in March of 2014. “I was delighted to be able to do this work on behalf of a higher purpose. Giving back to the Alaska Native community and the Kodiak community is inspiring. Being able to work for a corporation with a social and cultural mission is truly energizing.” Perry is originally from the Seattle area of the Pacific Northwest. As a child Perry and her family moved to Arizona, where her father worked as a professor. After graduating from college, Perry went on to earn her PhD in Anthropology. While gaining her doctorate in Arizona, she worked with many Native American communities in the Southwest and Western United States. “I fell in love with working for indigenous communities,” says Perry. “I found that these communities shared my personal commitment to cultural preservation, servant leadership, and giving back.” From there, she says, “instead of taking an academic route, I chose to take a consulting route. There was a fair amount of demand for scientific consultants to perform work to help comply with the National Environmental Policy Act, the National Historic Preservation Act, and the Native American Graves Protection and Repatriation Act. So I turned my education more to a business focus, working in anthropology and archaeology in support of regulatory compliance. We worked with tribes, we worked with Native American communities, we worked with industry, and we worked with government agencies.” It was in that capacity that Perry moved back to Seattle, and from there her work 56

@ Judy Patrick Photography Dr. Elizabeth Perry in Koniag’s Anchorage office; in the foreground is a beaded headdress made by Alutiiq artist and Koniag descendant Kayla Christiansen.

gradually expanded into Alaska. “We worked on a number of airport expansion projects in Alaska, and I began to become acquainted with the Alaska business community—of course Alaska Native Corporations—and formed many relationships and friendships in Alaska. When the Koniag opportunity came up, I was really excited to join the team.”

Financial Turnaround Perry says that when she began in 2014, her first priority was to continue the financial turnaround initiated by the Board. She says she was hired to “drive performance in our operating companies and create financial strength and stability.” And she did just that. Fiscal Year 2017 will be the fourth consecutive year for which Koniag reports net earnings growth. Even more impressive is the fact that Koniag’s growth has taken place during a period when Alaska’s economy has been optimistically described as uncertain. Many companies are looking to diversify and expand; conversely, Perry says one of the keys to Koniag’s turnaround was taking a hard look at their diversification. While diversification can provide stability when one market fluctuates, Perry points out that too much diversification can be expensive to maintain. “The challenge was making choices to divest of some assets and invest in others so that our overall portfolio of companies and other investments was well-balanced and had a rea-

sonable amount of risk, but not too much,” Perry says. “Moving forward, our goals are about continuing to grow profits, continuing to invest so that we can grow financially, sustainably, and predictably,” she says. “Ultimately, we need predictable financial growth to be able to fulfill the social and cultural aspects of our mission. We need to protect our lands, advocate for our communities, and provide benefits to our shareholders and descendants,” explains Perry. “All of those things require a stable and continuous earning stream.” One example of Koniag’s forward movement is their expansion of services through a new subsidiary. In the Summer 2017 Quliyanguapet, Koniag announced that its newest subsidiary—Kadiak LLC, established in March 2016—was awarded its first contract in spring 2017. Kadiak is the newest addition to Koniag’s government services sector and provides federal contracting compliance and management, tribal sovereignty and law, and cultural and environmental resource management. “We’re impressed because their first contract was $3 million to conduct tribal court assessments in rural Alaska for the Bureau of Indian Affairs. We’re pleased because Kadiak’s business focus aligns with our corporate values,” says Perry. “Most importantly, Kadiak’s President, Gordon Pullar, is a Koniag shareholder who understands the important work tribal courts do across rural Alaska.”

Alaska Business Monthly | September 2017 www.akbizmag.com

“Koniag has a responsibility to care for the economic, cultural, and social well-being of our shareholders,” says Hegna. “Providing jobs and scholarships are just some of the ways we do that. Ultimately, our goal is to provide benefits for our shareholders from birth to death.” Perry explains that regional advocacy is another priority for Koniag and a part of their corporate mission. According to the company, “Koniag’s lands are spread across the archipelago from the Sturgeon River Basin and Uyak Bays in southwest Kodiak Island to the northern peninsulas of Afognak Island.” Shareholder and Koniag Executive Tom Panamaroff says: “When we look at challenges in our region, we look at them from the perspective of our village communities. There are six villages on the island with populations ranging from under 100 to approximately 200. The biggest challenges facing these communities are their viability and sustainability. As the regional ANCSA Corporation, Koniag has a responsibility to support and enhance the lives of our shareholders in the villages, and we do so by being a leader in advocating on their behalf on issues important to them.” The company also launched a Regional Advocacy Plan to support initiatives that will positively impact Koniag shareholders, such as ensuring access to subsistence resources and access to the Alaska Marine Highway System. “Our shareholders are at the heart of why we do what we do at Koniag,” says

Perry. “We are honored that we are in a financial position to provide more programs for them.”

Servant Leadership Perry says, “My favorite part of this role is the impact that we can potentially have on our Kodiak community and on current and future generations of shareholders and descendants. Being able to engage face-to-face with our shareholders and talk to them about their vision and hopes for the corporation and for future generations—being able to really have that personal connection is what I like most.” This isn’t surprising because Perry believes that the purpose of leadership is to serve. She says, “Humility is an important quality of servant leadership, as is pride in the mission and the purpose of the organization… If as a leader you’re not showing trust and empathy and a sincere desire to collaborate, I don’t think you can expect that from everyone else in your organization. I’m always amazed by how much people are willing to reciprocate and devote their time and energy and their heart to their work if they feel like they’re truly being heard and understood and appreciated. A CEO should be a servant of their organization, its shareholders, and its stakeholders.” R Tasha Anderson is the Associate Editor for Alaska Business.

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Shareholder and Region Support “At the end of the day, we do what we do for our shareholders,” says Perry. “They are the reason we get up in the morning.” To this end, in 2016 Koniag donated $374,000 to The Koniag Education Foundation, which provides student scholarships. Koniag has also donated to the Alutiiq Museum and Archaeological Repository, the Alaska Native Heritage Center, tribes in the Koniag region, and other organizations that work to support the Koniag region. Two new programs have been initiated at Koniag this year: the Richard Frost Youth Scholarship Program provides shareholder and descendent K-12 students with funding to attend training or camps, and a burial assistance program helps offset burial expenses for Koniag shareholders. Perry’s commitment to Koniag’s higher purpose doesn’t stop at shareholder benefits. “I believe the best leaders enable the next generation to lead,” says Perry. “We have enormously talented shareholders and descendants who contribute to our success now and will continue to do so as our future leaders.” Within the parent company, 63 percent of Koniag’s employees are Alaska Native and 57 percent are shareholders or descendants. “We have a strong bench of Alaska Native and shareholder and descendent leadership,” Perry says. “At the executive level, shareholder Shauna Hegna leads our shareholder services and lands departments and shareholder Tom Panamaroff leads our regional and legislative affairs.”

Alaska Native Healthcare Organizations Collaborating to provide quality healthcare statewide By Tom Anderson

laska, even with its sparse population and relative youth as a state, is home to the largest tribal health organization in the nation. Alaska’s parity between healthcare and cultural respect has evolved into a paradigm for other states and nations to consider, if not emulate.

Federal Oversight The Indian Health Service (IHS) is part of the US Department of Health and Human Services. IHS oversees the provision of federal health services for Alaska Natives and American Indians. The agency, through its state and tribal partners, facilitates healthcare services for approximately 2.2 million American Indians and Alaska Natives belonging to 567 federally recognized tribes in thirty-six states. IHS works with the Alaska Native tribes and tribal organizations to deliver health services to more than 158,000 Alaska Native people. The IHS federal website notes that 99 percent of the Alaska budget is directed toward the 228 federally-recognized Alaska tribes as well as other tribal organizations operating under the authority of the Indian Self-Determination and Education Assistance Act. The tribal health system in-state refers to its members as Alaska Native Tribal Health Organizations, or THOs. All IHS funding is managed by THOs, which are privatelyheld nonprofit health corporations. For most THOs there are multiple streams of funding, of which IHS is only one, often providing less than 50 percent of required funds. THOs provide services to all members of their community, tribal or not, with few exceptions. Alaska Native Tribal Health System IHS funds numerous Alaska facilities that are managed by Alaskan tribes. IHS-funded, tribally managed hospitals in Alaska are located in Utiaġvik (formerly Barrow), Kotzebue, Nome, Bethel, Dillingham, Sitka, and Anchorage. In addition to regional hospitals, IHS’s website lists fifty-eight tribal health centers, 160 tribal community health clinics, and five residential substance abuse facilities throughout the state; the Alaska Native Med58

Image courtesy of Southcentral Foundation

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Alaska Native Business

A customer-owner checks in at the Anchorage Native Primary Care Center.

ical Center headquartered in Anchorage is the “state-wide referral center and gatekeeper of specialty care.” THOs have an integral relationship with IHS. The organizations are nonprofits and were created to meet the health and medical needs of Alaska Native and American Indian people residing in the state. The largest of these—and the manager of the main hub

specialty and hospital services—Alaska Native Tribal Health Consortium (ANTHC) is the second-largest Alaska health employer with more than 2,500 employees statewide. Health facilities covered by THOs blanket the state. Alaska’s regional hospitals, (sub-regional) primary care clinics, and village-based primary healthcare clinics—supervised by community health aides—give peace of mind to Alaskans,

Alaska Business Monthly | September 2017 www.akbizmag.com

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ALASKA NATIVE BUSINESS SPECIAL SECTION

visitors, and seasonal workers that healthcare will be available should the need arise. Since 1965, the Arctic Slope Native Association, a tribal healthcare nonprofit, has overseen and facilitated medical care and treatment to Alaska’s northern-most communities. Headquartered in Utqiaġvik and home to the 109,000-square-foot, critical access Samuel Simmonds Memorial Hospital, the Arctic Slope Native Association administers health and social service programs for the eight Arctic Slope villages and residents of the North Slope Borough. Maniilaq Association provides 8,000 people with healthcare and social services in Northwestern Alaska. It’s the largest employer in the Northwest Arctic Borough with a 550-person workforce. It also operates the $42 million, 80,000-square-foot Maniilaq Health Center located in Kotzebue. Twelve federally recognized tribes are served by the Maniilaq Association healthcare system, which also cares for workers at Red Dog Mine. Norton Sound Health Corporation manages healthcare needs for the Iñupiat and Yup’ik people residing along the Bering Strait and employs more than 500 people, 72 percent of whom are Alaska Native. Norton Sound Health Corporation covers an area of more than 44,000 square miles in Northwestern Alaska, and its facilities include the Norton Sound Regional Hospital in Nome and fifteen village clinics. In Southwest Alaska, the Yukon-Kuskokwim Health Corporation administers healthcare to more than fifty rural communities through its regional hospital, dental, primary care, and forty-seven village clinics. The Bristol Bay Area Health Corporation also in Southwest Alaska, serves thirty-four villages and employs more than 360 healthcare professionals. Headquartered in Dillingham, the Bristol Bay Area Health Corporation manages Kanakanak Hospital and the Bristol Bay Service Unit for IHS. ANTHC signed a contract in 1998 to manage operations for most of the IHS Alaska-area office programs, which support the voluntary THO system. The fifteen-member board

Dr. Daniel Hartman conducts a lung capacity test at the Anchorage Native Primary Care Center.

draws its members from the Utqiaġvik, Kotzebue, Nome, Bethel, and Bristol Bay healthcare regions, as well as Southcentral Foundation, Tanana Chiefs Conference in Fairbanks, Copper River Native Association, Southeast Alaska Regional Health Consortium, Kodiak Area Native Association, Aleutian Pribilof Islands Association, The Native Village of Eyak, Chickaloon Village, and Metlakatla Indian Community. The successful evolution of ANTHC and its affiliated umbrella of THO providers and facilities resulted in the expansion of modernized medicine and healthcare protocols for Alaskan patients statewide. Enhancements to trauma centers, increased rural connectivity for telemedicine access, as well as assisted living homes, mental health care, and dental services have all broadened in scope and scale through Alaska Native healthcare programs and facilities.

Expanded Primary Care Model Supporting fifty-five rural villages and THOs in the Anchorage Service Unit and covering 107,400 square miles of Southcentral Alaska

Image courtesy of Southcentral Foundation

Dr. Tamera Pickett conducts a well-baby checkup at the Anchorage Native Primary Care Center.

from Mat-Su to the Kenai Peninsula, Southcentral Foundation offers award-winning, fullaccess services including primary care, obstetrics, pediatrics, dentistry, optometry, physical therapy, mental health and substance abuse counseling, senior care, and numerous other services to more than 55,000 customer-owners. Dr. Douglas Eby is the vice president of medical services at Southcentral Foundation. He has supported increased Alaska Native leadership at Southcentral Foundation and the Alaska Native Medical Center since 1994. “We employ 2,100 people, have an annual budget of over $300 million, record over 200,000 medical visits each year, [and] offer seventy-six different programs in over forty-six facilities, the majority of which are located in Anchorage,” says Eby. Southcentral Foundation’s healthcare delivery has drawn attention from other states, nonprofits, and even nations because of its relationship-based, customer-driven design, says Eby, who says success in access, response time, and treatment really do matter. “In the last seventeen years under tribal leadership, our healthcare system has turned into a highly productive model that’s saving lives and supporting our partners across the region.” Eby cites Southcentral Foundation’s Nuka System of Care, a relationship-based, customer-owned approach to healthcare that enhances services and outcomes while reducing expenses. He says Nuka is “recognized as one of the world’s leading examples of healthcare redesign and a recipient of the Malcolm Baldrige National Quality Award.” Southcentral Foundation “offers healthcare organizations value-based solutions for data and information management, integrated care, behavioral health, workforce development, improvement, and innovation.” Patients (referred to as customer-owners), their families, and communities benefit from this approach, he says. Eby says the partnership and cohesion between the federal government, regional health associations, multiple sub-region and village facilities, and the hub in Anchorage inspires practitioners, medical staff, and entrepreneurs to join the Alaska Native healthcare field.

Alaska Business Monthly | September 2017 www.akbizmag.com

OUR STRENGTH Netiye’ means ‘our strength’ in Ahtna Athabaskan

ALASKA NATIVE BUSINESS SPECIAL SECTION

Image courtesy of Southcentral Foundation

A customer-owner checks in at Southcentral Foundation’s Optometry Clinic.

“Where our system is unique is through the partnership and safety net we offer. Alaska’s Native health programs and services have fail safes. When a village health aide can’t handle an emergency or ailment, the sub-region clinic or regional hospital will take over. If the problem is beyond their scope, there’s a transfer to ANMC. So Southcentral Foundation is a local [and] regional facilitator of statewide coverage with ANTHC to ensure our patients have access to care from across Alaska.”

—Dr. Douglas Eby Vice President of Medical Services, Southcentral Foundation

Image courtesy of Southcentral Foundation

Ophthalmic Technician Sabrina Tocktoo assists a customer-owner with contact lenses.

The Alaska Native Medical Center Jointly owned and managed by ANTHC and Southcentral Foundation, the Alaska Native Medical Center (ANMC) includes a hospital with more than 150 beds. ANMC provides primary, specialty, acute, and behavioral healthcare services, as well as help coordinating travel logistics and lodging, providing more than 250 rooms for patients from outside of Anchorage. From oncology to orthopedics, OB/GYN to general surgery, the range of medical services is comparable to Alaska’s two largest hospitals, Providence Alaska Medical Center and Alaska Regional Hospital both located in Anchorage. Eby says ANTHC and Southcentral Foundation share revenue, a joint operating board, and management of their health facilities. While ANTHC runs the majority of the hospital’s operations, which is approximately twothirds of the ANMC business, Southcentral 62

Foundation manages many of the outpatient facilities and clinics. “Where our system is unique is through the partnership and safety net we offer,” says Eby. “Alaska’s Native health programs and services have fail safes. When a village health aide can’t handle an emergency or ailment, the sub-region clinic or regional hospital will take over. If the problem is beyond their scope, there’s a transfer to ANMC. So Southcentral Foundation is a local [and] regional facilitator of statewide coverage with ANTHC to ensure our patients have access to care from across Alaska.”

Alaska Sleep Clinic There are a few healthcare businesses in Alaska owned by Alaskans of Native and American Indian decent. Alaska Sleep Clinic (ASC) is the first sleep clinic in Alaska with American Indian-ownership. Faith Allard—a stock

holder in Alyeska International dba Alaska Sleep Clinic—is part-owner of Alaska Sleep Clinic. Allard is an American Indian and lifelong Alaskan who has worked within tribal organizations for more than twenty years. She serves as executive director of ASC and is also an adjunct professor at the Kachemak Bay Campus of the Kenai Peninsula College. Allard helped develop a Native Alaskan scholarship program, through the ASC, for Alaska Native and American Indians seeking to develop skills and obtain certification in the sleep healthcare industry. Brent Fisher is the president and CEO of Alaska Sleep Clinic. “I started the first private equity ‘search fund’ in Alaska about four years ago,” he says. “During my search to invest in and acquire a small business, I had discussions with board members and executives of Alaska Native regional corporations. The [Alaska] Native leaders I spoke with envisioned opportunities for Alaska Natives to develop management and leadership skills in a small business competitive marketplace in order to be successful in a competitive non8(a) world, particularly healthcare.” Fisher says forward-thinking Alaska Native elders and corporate executives are striving to encourage Alaska Natives to own and lead small businesses. “We would like to see Alaska Native-owned healthcare businesses burgeon and flourish, considering there are almost 159,000 prospective Native/Indian patients in the state. They should be owners and managers as much as patients and clients in our industry,” says Fisher. The organization’s members point to its ethnic diversity and cultural recognition for

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ALASKA NATIVE BUSINESS SPECIAL SECTION

“One of our primary goals as a for-profit healthcare company is to partner with organizations such as the Alaska Native Tribal Health Consortium, Southcentral Foundation, Tanana Chiefs Conference, and the myriad of healthcare providers in villages, smaller cities, and urban centers. Our management team recognizes that in unison we can make a tangible impact in our medical niche at the Alaska Sleep Clinic.”

—Faith Allard Part-owner, Alaska Sleep Clinic

its success. ASC is the largest, most comprehensive sleep clinic in Alaska. Since 2002, the clinic has provided services ranging from sleep disorder diagnosis to treatment followup, including sales and marketing of sleep disorder-related medical equipment. ASC operates through four locations in Anchorage, Fairbanks, Soldotna, and Wasilla. The company plans to expand to more Alaska regions, prioritizing employing Alaska Natives, building opportunity and experience in Alaska Native communities that lays the groundwork for success in the growing Alaska healthcare industry. Allard and Fisher understand the urgency for training and grooming future Alaska Native healthcare entrepreneurs. They support this goal by providing opportunities for ASC staff to participate in the Alaska Native Executive Leadership Program. Fisher notes that ASC—accredited at its Anchorage location by the American Academy of Sleep Medicine—

employs Alaska Natives at a higher percentage than most Alaska companies, which gives ASC’s staff valuable experience in the competitive, for-profit healthcare work environment. He says it also allows them to continue to strengthen their services. ASC trained the first Alaska Native sleep technologist in the state and continues to support growth and development in this area. The company offers a scholarship for Alaska Natives and American Indians who want to enter the sleep technology career field and remain in Alaska.

Celebrating Healthcare Growth “What we value most, when it comes to Alaska Native healthcare, is the connectivity and synergy between regions and the nonprofit healthcare organizations,” says Allard. “One of our primary goals as a for-profit healthcare company is to partner with organizations such as the Alaska Native Tribal Health Consortium, Southcentral Foundation, Tanana Chiefs Con-

ference, and the myriad of healthcare providers in villages, smaller cities, and urban centers. Our management team recognizes that in unison we can make a tangible impact in our medical niche at the Alaska Sleep Clinic.” Eby and the owner group at ASC are part of a growing population of healthcare providers that value the growth of the Alaska market and healthcare delivery system. “The system is working; communication and service delivery [are] state-of-the-art in our state. Celebrating ethnic diversity and the cultures of the Alaska Native and American Indian people adds to our pursuit, and we know it’s making a positive difference,” Allard says. R Tom Anderson is a lifelong Alaskan freelance writer for local and national publications and owns a public relations firm.

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Alaska Native Business

Afognak Leasing’s one-hundred-bed Sea Lion Camp is located in Deadhorse. It was built for WorleyParsons and ExxonMobil as the base of operations camp for the Point Thomson project. Photo courtesy of Afognak

Alaska Native Village Corporations From oil and gas to tourism, Alaska Native Village Corporations vital to Alaska economy Compiled by Tasha Anderson

hroughout the state, Alaska Native Village Corporations operate in every major industry, including oil and gas, tourism, energy, and IT. The following are short profiles and selected highlights from some of the state’s Alaska Native Village Corporation endeavors in 2016 and early 2017.

Afognak Leasing LLC Afognak Leasing has years of experience providing successful housing options to its clients, and is especially proud of the business reputation of excellence it has established on the North Slope and throughout Alaska. Afognak Leasing LLC is a subsidiary of Afognak Native Corporation that creates remote housing options to maximize efficiency for Class A housing needs and to satisfy both short and long-term housing requirements for its clients. Whether the task involves remote geographic regions, extreme climates, stringent timelines, or other unique problem sets, Afognak Leasing pairs years of subject matter expertise with innovation and flexibility to determine the best possible solutions to satisfy each client’s specific requirements. For example, Afognak Leasing can custom design and build a camp to client specifications, manage the daily operations of the camp, and provide the supply and distribution of goods and services necessary to provide a turnkey solution for a choice camp provider. Afognak Leasing maintains high standards for upkeep and maintenance of its facilities. This year, Afognak Leasing’s VP of Operations Ana Fisk was nominated as one of the Alaska Journal of Commerce’s Top Forty Under 40. At Afognak Leasing, Fisk plans, 66

directs, and coordinates operations including forming policies and strategic plans and managing daily operations of personnel and administration. Afognak | afognak.com

Ukpeaġvik Iñupiat Corporation UMIAQ Environmental LLC has been certified as a participant in the US Small Business Administration’s (SBA) 8(a) Business Development Program. This program offers various forms of assistance from the SBA, including eligibility for certain preferences in the award of contracts by the federal government. UMIAQ Environmental has the capability to support Alaska and Arctic operations through the development of oil spill response plans, emergency response plans, incident management expertise, National Environmental Protection Act (NEPA) documentation, and permit packages for even the most challenging projects. This certification allows UMIAQ Environmental to increase its market presence and to compete for larger revenue producing contracts. Ukpeaġvik Iñupiat Corporation (UIC), Barrow Utilities & Electric Cooperative Inc. (BUECI), and the North Slope Borough signed the final documents to complete the transfer of the natural gas and electric distribution system at UIC NARL (Naval Arctic Research Laboratory) to BUECI and the NSB. Under this landmark trilateral agreement, NSB owns and operates the four-inch natural gas pipeline and pressure reducing station that serves the NARL area. BUECI owns and operates the remaining portion of the natural gas utility system, and the entire electric utility system serving the NARL area. The negotiations that led to this agreement spanned several decades because each of the three parties had a vested interest in ensuring the agreement would benefit the community. This agreement will shape the future roles of the NSB, BUECI and UIC to meet the growing demands of electricity and natural gas in the Barrow area. UIC president and CEO, Anthony Edwardsen said, “It’s important that we contin-

ue to support the community by providing the best consistency and growth for natural gas and electric utility services within the city. This trilateral agreement with BUECI and the NSB is a perfect example of building strong business relationships at Barrow.” Spring/Summer 2017 Nasirvik | uicalaska.com

Sitnasuak Native Corporation Sitnasuak’s Petroleum Subsidiary consists of two business units: Bonanza Fuel LLC and Banner Wind LLC. Bonanza Fuel LLC is comprised of the Bonanza Fuel storage and delivery business and Bonanza Express convenience store and gas station. The Bonanza Fuel storage and delivery business has 5.9 million gallons of storage capacity for fuel products at the Port of Nome. It operates a fleet of fuel and propane delivery trucks for deliveries to commercial, marine, and residential customers in Nome and the surrounding road system area as far as Teller, Alaska. For more than twenty-five years, Bonanza Fuel has sold and delivered heating oil, diesel, gasoline, and propane throughout the village of Nome, in remote road accessible areas, and to marine vessels at the Port of Nome. Bonanza Fuel’s tank farm, which is connected by pipeline directly to marine headers at the Port of Nome, enables them to deliver large volumes of marine fuel directly to marine vessels. Bonanza Fuel recently expanded its bulk fuel terminal located at the Port of Nome, which can both receive and deliver bulk fuel to marine vessels during the icefree summer months. Bonanza Fuel | snc.org/business-operations/petroleum Sitnasuak Native Corporation (SNC) selected Roberta “Bobbi” Quintavell as its new president and CEO. Quintavell started the position earlier this year. She joins SNC with strong leadership skills and successful executive experiences that merge corporate priorities with community service. Quintavell is Iñupiaq and originally from Utqiagvik. “It is a distinct privilege to be selected by the Sitnasuak

Alaska Business Monthly | September 2017 www.akbizmag.com

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voiceofthearcticinupiat.org MEMBER ORGANIZATIONS Arctic Slope Native Association City of Anaktuvuk Pass City of Point Hope Native Village of Atqasuk Olgoonik Corporation Arctic Slope Regional Corporation City of Atqasuk City of Wainwright Native Village of Point Lay Tikigaq Corporation Atqasuk Corporation City of Utqiaġvik IỊisaġvik College North Slope Borough Ukpeaġvik Iñupiat Corporation Native Village of Kaktovik Kaktovik Iñupiat Corporation Nunamiut Corporation Native Village of Point Hope Wainwright Tribal Council

ALASKA NATIVE BUSINESS SPECIAL SECTION

Afognak Native Corporation, Alutiiq Update Alaska Business on Current, Future Plans

fognak Native Corporation, Alutiiq LLC, and our subsidiaries provide an exceptional track record of services in government and commercial sectors worldwide, including leasing; facility services; timber; engineering; IT; security; logistics, operations and maintenance; and youth services. Afognak Native Corp. is rooted in the core Alutiiq values of harmony, respect, efficiency, communication, trust, Elder knowledge, and heritage and culture. As an Alaska Native Corporation, employees and shareholders are united in this shared value system. In November, Afognak Native Corporation will celebrate our 40th Anniversary since the merger of two separate ANCSA village corporations—the Port Lions Native Corporation and Natives of Afognak, Inc. In both good times and challenging times, our Cuuliallrat (ancestors) taught us to respect and support each other to ensure that the Ag’wanermiut (people of Afognak) not only endure, but thrive. Only together will we preserve our collective prosperity. Looking forward, we are eager to expand our commercial business in Alaska and either sell, develop, or lease our C Street property in the heart of midtown Anchorage. With increased potential for the military footprint to grow in Alaska, Afognak Native Corporation, Alutiiq LLC, and their subsidiaries look forward to pursuing government contracts in construction, security, engineering, and logistics, amongst others. Our subsidiaries also provide extensive youth development and service work in the Lower 48 that we hope to expand in the Arctic. Finally, we are working to live out the promise of ANCSA by contributing our economic success into developing sustainable, healthy communities. We want to thank all those who participated in our 2nd Annual Afognak Youth Charity Golf Tournament in Anchorage in June. All sixty-three sponsors, thirty-six teams, and 144 players helped to ensure we made a significant contribution to support the Alutiiq youth from the Native Villages of Port Lions and Afognak. We look forward to next year’s event. Quyanaasinaq! R Board of Directors. I am looking forward to working with the Board to advance the businesses, while remaining grounded in our values and upholding our cultural sustainability,” said Quintavell.

Over the past twenty years, Quintavell has contributed her expertise to help Alaska Native corporations and their subsidiaries grow shareholder equity and operational profitability by establishing financial controls,

formalizing business processes, aggressively pursuing acquisitions, and building teams of highly-skilled, forward-thinking leaders. Over the course of her career Quintavell served as executive director of Arctic Slope Native Association, president/CEO of Arctic Slope Regional Corporation (ASRC) Constructors and ASRC Construction Holding Company, president/CEO and Board Member of ASRC and chief operating officer of Doyon Limited. Quintavell also served on the Boards of various nonprofits including the Alaska Federation of Natives, Alaska Municipal League, and Rasmuson Foundation. She received a bachelor’s degree in business administration from the University of Alaska Anchorage and graduated with an executive master’s degree in business administration from the Harvard Graduate School of Business. Quintavell is based in Sitnasuak’s Anchorage office. Board Chairman Bobby Evans said, “The Board of Directors is excited to begin this next chapter in Sitnasuak’s history.” Spring 2017 Venture | snc.org

Goldbelt, Inc. Last year, Goldbelt named Elliott “Chuck” Wimberly as its president and CEO, a position Wimberly held in the interim since January 2016. Wimberly previously served as Goldbelt’s senior vice president and filled the president and CEO role in the interim for a time in 2011. “Chuck’s ability to lead our company is well-proven and he stood out through the interview process as the best

40 Years of Fueling the 49th State Since 1977, Alyeska has safely and successfully moved more than 17 billion barrels of oil through the Trans Alaska Pipeline System. It’s an accomplishment that is not only meaningful to our employees, but to all Alaskans. We look to the future with continued confidence and commitment.

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Alaska Business Monthly | September 2017 www.akbizmag.com

The Eyak Corporation Updates Alaska Business on Diversification/ Investment Plans

he Eyak Corporation (TEC) is the Alaska Native Village Corporation for the community of Cordova, Alaska. TEC celebrated its 43rd birthday in July 2017, and, as noted by CEO Rod Worl, “is in excellent health.” As an Alaska Native Corporation, TEC’s purpose extends beyond profits. Its mission is to provide for present and future shareholders while protecting its lands and fostering cultural heritage. TEC and its subsidiaries have had the honor of providing services to the Federal government. TEC’s subsidiaries have broad capabilities and have recently acquired new projects to deliver cyber security, land mobile radio infrastructure, medical services, and base information technology support solutions. Although government contracting is a valued and significant income stream for TEC, the corporation has diversified into businesses outside of government contracting to reduce risk and expand operational performance. Those investments have been in entities whose business lines are consistent with TEC’s mission. For example, in 2011 TEC acquired an ownership interest in Native American Bank (NAB), which provides financing to Native individuals, Alaska Native Corporations, tribes, and Native enterprises. More recently, TEC invested in Baxter Senior Living, LLC, which is developing an assisted living/memory care facility in Anchorage. The facility will address the underserved market for elder housing in Alaska while providing a hiring preference for qualified TEC shareholders. TEC is actively exploring additional investment opportunities in Alaska. Ideally, those opportunities will enhance Native communities throughout the state, while returning financial benefits to TEC’s shareholders. As a result of TEC’s successes through government contracting and other investments, TEC is able to support community activities in Cordova, including an annual cemetery cleanup; a monument to recognize Veterans; and donations to support the Native Village of Eyak’s elder programs and cultural center. R www.akbizmag.com

team of dedicated employees who are focused on accomplishing the results set out by the board.” Goldbelt, Inc. was selected by the GSA to perform work under the 8(a) STARS II contract. The 8(a) STARS II contract is designed to provide simple to complex IT solutions for the federal government such as: IT help desk support, information assurance, cybersecurity, virtualization, IPVS, Web 2.0, and more. The performance period is five years with one five-year extension. The ceiling over ten years of work for this contract is $10 billion. The Goldbelt family of companies that will work on this contract include Hawk, C6, Peregrine Technical Solutions, and Nisga’a Data Systems.

“We are excited to be recognized as a premier service and products provider by our clients,” Wimberly said. “This is the largest contract Goldbelt has competed for and won. We are ready to continue exceeding the expectations of our customers and growing our business.” Goldbelt, Inc. | goldbelt.com

Huna Totem Corporation Icy Strait Point has been recognized by the American Indian Alaska Native Tourism Association as one of the Best Tribal Destinations at the Enough Good People awards banquet and silent auction. The Tribal Destination of the Year honors a destination that encompasses excellent customer service, visitor friendly

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ALASKA NATIVE BUSINESS SPECIAL SECTION

candidate to accomplish the lofty goals set by the Board of Directors,” said Joseph Kahklen, Goldbelt Board Chairman, in a statement. Wimberly brings with him a decade of experience as a senior executive with Alaska Native Corporations. “I am excited to lead Goldbelt to new heights,” Wimberly said. “We have a strong

ALASKA NATIVE BUSINESS SPECIAL SECTION

Tyonek Manufacturing Group Gives Alaska Business its 2017 Update

Photo courtesy of Afognak

Commissioned in 2013, Eagle Lodge is owned by Afognak Leasing and supports permanent operations personnel for Alyeska Pipeline Service Company.

Fab Manufacturing LLC, a subsidiary of Tyonek Manufacturing Group, Inc. and Tyonek Native Corporation, was recognized by Sikorsky as Black Hawk Supplier of the Year. The recognition comes in addition to the company achieving Sikorsky Supplier Gold status for the second year in a row. Tyonek is one of only fifteen companies worldwide to achieve this status. “Sikorsky’s Supplier Gold program recognizes the top 1 percent of our suppliers based on quality and delivery metrics,” says Dave Gunzenhauser, chief procurement officer of avionics at Sikorsky. “Tyonek has consistently exceeded our targets earning not only Supplier Gold Status, but also our Black Hawk program Supplier of the Year honor. Our partnership with Tyonek helps us maintain our commitment to our military and commercial customers.” Tyonek builds numerous products including relay panels for Sikorsky’s Black Hawk helicopter. Earlier this year, the company marked a significant milestone when the 10,000th relay panel for the Black Hawk was shipped to the customer. “This is a significant milestone in the history of Tyonek and I am very proud of our team for these accomplishments,” says Steve Adlich, president of Tyonek Manufacturing Group. “Our products are built to the rigorous quality standards that Sikorsky demands and this is recognition of our continued commitment to producing the best products possible to ensure our military’s success. Tyonek has a long standing relationship with Sikorsky and these awards are acknowledgement of our employees’ commitment to produce top quality products.” R destinations, authentic cultural heritage experience(s), and amenities for visitors. The teams at Icy Strait Point designed diverse attractions to serve and entertain cruise ship visitors, independent travelers, Hoonah citizens, and Southeast community members. The Duck Point Smokehouse restaurant is one of the newest attractions and features delicious halibut treats. Other attractions include the world’s largest ZipRider, named one of the Best Spots to Zipline by GRINDTV; guaranteed whale cruise; Spasski River Valley wildlife and bear search; Icy Strait kayak adventure; wilderness hikes; coastal exploration by Zodiak; In Alaska’s Wildest Kitchen, a hands-on tasting session hosted by an Alaska fisherwoman and master wilderness chef; discovering the birds of Hoonah tour; ATV expeditions; and backcountry Jeep adventure. April 2017 Headlines | hunatotem.com R

Alaska Business Monthly | September 2017 www.akbizmag.com

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Cultural Education in Alaska Cook Inlet Tribal Council’s fabrication laboratory is a unique educational space that challenges youth to connect to their full STEM potential. Created in partnership with Massachusetts Institute of Technology (MIT), the Fab Lab is a digital fabrication resource center where students use high-tech design programs, industrial-grade manufacturing machines, and electronic and programming tools to develop new solutions to practical problems that transform ideas into reality.

Helping Alaska Native students find the path to success By Richard Perry

itka’s Mt. Edgecumbe High School, which has a high enrollment of Alaska Native students, is one of the top educational facilities in the nation. It has a 90 percent minority enrollment, 79 percent of whom are Alaska Native students with a graduation rate of 98 percent. Yet, Alaska Native student graduation rates in other schools across the state are by far disproportionately worse than nearly all other student categories. As a comparison, according to the 20152016 Alaska State Report Card to the Public, the only groups that performed worse were students with disabilities (53.9 percent) and English learners (54.7 percent). The difference between the best performing student and Alaska Native students is as much as 16 percent. Professor of Education Policy Dr. Diane Hirshberg from the Institute of Social and Economic Research at the University of Alaska Anchorage explains that there has been a 72

Images courtesy of Cook Inlet Tribal Council

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Alaska Native Business

Educational programming through Cook Inlet Tribal Council’s (CITC) Youth Empowerment Services department focuses on STEM-based learning activities and a strong connection to cultural identity.

consistent problem attracting and retaining teachers who possess the tools to succeed with rural and Alaska Native students. In 2010, Alaska adopted the four-year co-

hort graduation rate method required by the US Department of Education. Alaska high school students are assigned a cohort year based on when they first enter ninth grade.

Alaska Business Monthly | September 2017 www.akbizmag.com

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ALASKA NATIVE BUSINESS SPECIAL SECTION

“While the student population in rural Alaska is primarily indigenous, the educators in rural schools are overwhelmingly non-Native. Fewer than 5 percent of certificated teachers are indigenous, and fewer yet are administrators. Most of the educators are also from outside Alaska; between 2008 and 2012 the University of Alaska prepared fewer than 15 percent of the teachers hired by districts each year.”

—Dr. Diane Hirshberg Professor of Education Policy, Institute of Social and Economic Research University of Alaska Anchorage

The assumption is that students are expected to graduate in four years. “Statewide, the four-year high school graduation rate for all students in 2015-2016 was 76.1 percent,” Hirshberg says. “This was lower for students who are Alaska Native or American Indian (64.1 percent), African American (74.4 percent), or economically disadvantaged (68.4 percent). Dropout rates reflect similar inequality; the statewide dropout rate for grades 7-12 was 3.9 percent, but for Alaska Native/American Indian students it was 6.7 percent and 4.5 percent for African American students.” Low graduation rates for Alaska Native students is not a new issue; it has been an ongoing challenge for educators and policy makers for decades. The issues concerning Alaska Native student success are known el-

ements. Dropout rates are higher for Alaska Native students, and more often than not, male Alaska Native students. “While the student population in rural Alaska is primarily indigenous, the educators in rural schools are overwhelmingly non-Native,” Hirshberg says. “Fewer than 5 percent of certificated teachers are indigenous, and fewer yet are administrators. Most of the educators are also from outside Alaska; between 2008 and 2012 the University of Alaska prepared fewer than 15 percent of the teachers hired by districts each year.” Another longstanding issue is the manner in which Western education was introduced to the Alaska Native population. The experiences of previous generations of Alaska Native people were fraught with social and

political adversity. There is a need to better understand the impact of intergenerational trauma associated with Alaska Native students, their families, and communities. “Many rural villages in Alaska struggle with social problems that are a legacy of the colonial history of Alaska,” Hirshberg says. “These problems include low school achievement, high dropout rates, and some of the highest sexual assault and suicide rates in the nation.” Hirshberg is quick to point out that students are fully capable of learning. The success of students at Mt. Edgecumbe in Sitka proves Hirshberg’s point with its 98 percent graduation rate. She suggests that rather than looking at how students fail to succeed, what actually needs to be examined are the reasons why schools fail to succeed. Research shows that early childhood education programs must address early childhood trauma and incorporate culturally-responsive programs to help students succeed later in life, according to Hirshberg. There is also considerable research that demonstrates the effectiveness of using culturally-based teaching resources and methods to improve academic achievement for indigenous students.

Educational Success through Cultural Orientation Rural Alaskan students tend to struggle with educators who are newly-graduated and from outside of Alaska—because teachers from the Lower 48 often are not prepared for the different and diverse cultures in Alaska.

Alaska Business Monthly | September 2017 www.akbizmag.com

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As part of CITC’s educational services, NYO Games Alaska is one of a handful of events—along with the World EskimoIndian Olympics and the Arctic Winter Games—that feature culturalbased contests of indigenous peoples of northern latitudes. Image courtesy of Cook Inlet Tribal Council

September 2017 | Alaska Business Monthly

ALASKA NATIVE BUSINESS SPECIAL SECTION

There are efforts to improve teacher preparedness and reduce turnover rates in Alaska in remote school districts. Part of the solution is cultural orientation. There are programs available throughout Alaska designed to educate teachers who are unfamiliar with Alaska and its diverse cultures. In 2003, the Alaska Native nonprofit Sealaska Heritage Institute (SHI) co-founded the Tlingit Culture, Language, and Literacy (TCLL) program in the Juneau School District to increase academic performance of Alaska Native students. A 2013 study found that, during a ten-year span, TCLL students generally did better than or as well as their Alaska Native peers on standardized tests in reading and writing. SHI—founded by Sealaska Corporation in 1980 to operate cultural programs—also sponsors cultural orientations for teachers and other educators in Juneau. Sealaska Corporation is one of thirteen ANCSA corporations; it represents 22,000 shareholders who are descendants of the Tlingit, Haida, and Tsimshian people of Southeast Alaska. In 2012, 60 percent of the first group of ten students enrolled in the TCLL program graduated from high school. This is compared to the overall Alaska Native graduation rate in Juneau of 47 percent. The TCLL program proved so valuable that the school district assumed financial responsibility for it in the years following its inception. Through these programs, educators are provided the tools they need to effectively

ALASKA NATIVE BUSINESS SPECIAL SECTION

teach people from other cultures. Dr. Rosita Kaaháni Worl, president of SHI, says, “Studies have shown that Native students do better academically when their culture is included in the class.” She continues, “It is critical that Native cultures are incorporated into public schools and that teachers have a general understanding of the cultures [they are teaching].” SHI’s cultural orientation program offers fifty hours of training for as many as twenty participants. The program is available through a series of seminars in August, September, October, and November. Along with enriching each educator’s understanding of Alaska Native culture, the program pays a stipend to participants who complete all of

the requirements. Program members also have the option to earn credits through the University of Alaska Southeast. “The program is offered through an agreement signed in 2012 by SHI, the University of Alaska Southeast, and the Juneau School District to expand partnerships on education programs,” Worl says. “Sealaska Heritage sponsors cultural orientations for teachers in public schools and at the University of Alaska through a memorandum of agreement. Participants learn Native history, the Native world view, and even about Northwest Coast art.” Attendees of the cultural orientation program are also required to take part in SHI’s three-day Culturally Responsive Education

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Conference in June. The program is also available to students from Outside who are able to trace their heritage to Alaska.

Retention and Inclusion Another key to student success is recruitment and retention of Alaska Native teachers. The Lower Kuskokwim School District (LKSD) is an example of a school that is increasing graduation and enrollment rates for Alaska Native students. A part of LKSD’s success can be attributed to local educators teaching area students. Alaska Native students who are taught by Alaska Native educators for an extended period of time report improved academic success as opposed to those who are taught by a series of new and non-Alaska teachers for a short time. Instituting culturally-responsive programs with Alaska Native teachers is also fundamental to distancing today’s student body from Alaska’s era of colonialism-based education. “The Lower Kuskokwim School District has spearheaded efforts to improve the academic success of Native students,” Director of Personnel and Student Services for LKSD Joshua Gill says. “This is accomplished through culturallyresponsive education programs that are led by Alaska Native teachers. We see positive results. LKSD has the highest number of Alaska Native certified teachers in Alaska— an estimated 20 percent to 22 percent.” In the late 1970s, LKSD founded programs to give Alaska Native teachers better access to secondary education with the goal of hiring and retaining greater numbers of Alaska Native educators. “One barrier to recruiting and retaining Alaska Native teachers has historically been the requirement that they leave their communities to obtain teaching certificates,” Gill says. “Programs available through LKSD allow students to receive their teaching certification without leaving home.” The results are evident. Historically, LKSD has one of the lowest teacher turnover rates in Alaska. “Compared to the rest of rural Alaska, LKSD has a 12 percent to 17 percent teacher turnover rate,” Gill says. “The rest of rural Alaska has an average that is closer to [a] 30 percent or 40 percent turnover rate.” Anchorage Partnerships Cook Inlet Tribal Council (CITC) is a longtime partner with the Anchorage School District (ASD), providing educational programs that support academics and culture. CITC’s student education programs incorporate traditional knowledge and family involvement. In fact, CITC was recognized in 2016 by the White House Champions of Change for Making for innovation and educational improvements. Champions of Change was created in 2014 by President Obama to provide students and business innovators with a means to improve access to newly-evolving technologies such as laser cutters, desktop machine tools, and 3D printers. The idea is to provide the next “makers” with educational opportunities that will help them become inventors and entrepreneurs.

Alaska Business Monthly | September 2017 www.akbizmag.com

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There are several education programs offered by CITC including Transitions, Schoolyard, and Techno-Culture Camps. The Transitions program is an ongoing partnership with ASD for Alaska Native and American Indian students that provides core academic classes and social support services. The program is offered within several ASD schools. “We know students learn best when they receive more individualized attention,” CITC Director of Youth Empowerment Services Renee Fredericks says. “CITC classes are limited to twenty students. All CITC classes involve Native culture in the curricula. This, in turn, helps students with a sense of belonging and impacts academic success.” Schoolyard is an afterschool program for students between the ages of twelve and nineteen who are Alaska Native and American Indian. Schoolyard offers students opportunities to explore science, technology, engineering, and mathematics (STEM) fields of study. These studies are often explored using Alaska Native cultural knowledge. For example, students build canoes—from small form to full-size. “One of our main focuses is to keep kids in school and on track to graduating,” Fredericks says. “This is done by having students work on school work in after-school programs. There we have the opportunity to support them and talk about classes they are taking. We also offer culture-centered activities and an hour of studying time.” The students are only allowed to come to Schoolyard if they attended their school that day.

CITC’s Techno-Culture Camps support youth learning traditional skills. “Our TechnoCulture Camps happen in the summer,” says Fredericks. “They span elementary, middle, and high school-aged students. We do things like kayak camp where they learn about the cultures connected to the different kayaks in the state.” Students also work on projects such as drumming, dance, and fish smoking, along with developing STEM-centered educational and job skills. CITC’s education programs help to prepare students to find success in school and be better prepared for life. Between 2013 and 2016 graduation rates of Alaska Native students enrolled in the CITC programs increased 38 percent to 96 percent compared to a graduation rate of 58 percent for Alaska Native students who were not enrolled in CITC’s programs. Because CITC is an Alaska Native nonprofit that provides culturally relevant social services, it also offers assistance to students and their families if they are facing issues outside of school that impact students well-being and/or their ability to obtain an education.

Developing Culturally Relevant Curricula While Sealaska, LKSD, and CITC provide much needed culturally-centered educational programs, there are still some students who don’t have access to culturally relevant curriculum or teaching practices in both rural and urban school districts. To address the need for more culturally sensitive curricula,

the Inuit Circumpolar Council (ICC)-Alaska in 2013 initiated the development of the Alaskan Inuit Education Improvement Strategy. This was largely in response to the Nuuk Declaration, passed in 2011 by the Arctic Council which represents the eight Arctic states. The Nuuk Declaration recognizes the importance of mutual efforts needed in the Arctic to support environmental protection, sustainable development, and the development of best practices across the circumpolar Arctic. In part, education is a key aspect to these goals. ICC-Alaska, as a result, seeks to continue to develop and improve culturally appropriate curricula and to require the use of Alaska Native languages as a significant part of educational practices. These many organizations have initiated and proposed compelling solutions to the problems that our current education programs aren’t addressing; but having a solution and implementing that solution require different levels of commitment and support. It is vital moving forward that solutions find social and political support. Through the successes that have been shown here and elsewhere, meaningful change can begin to take root, experts say. Parents and educators who continue to advocate for greater support and innovative education programs will have a lasting impact on student success. R Richard Perry is a freelance writer and photographer in Anchorage.

Alaska Business Monthly | September 2017 www.akbizmag.com

ALASKA NATIVE BUSINESS SPECIAL SECTION | REGIONAL CORPORATION DIRECTORY

Revenue Sources: Not disclosed to Alaska Business. Business Activities: Ahtna’s principle activities include construction and environmental, facilities management and support, engineering, government contracting, land management and resource development, and oil and gas pipeline services. Significant Endeavors: Ahtna remains dedicated to its mission of providing economic, cultural, and social benefits to its shareholders. A new endeavor for Ahtna is natural gas exploration near our Glennallen, AK headquarters. Subsidiaries: Ahtna Netiye’ Inc. | Ahtna Development Corp. | Ahtna Facility Services Inc. | Ahtna Enterprises Corp. | Ahtna Support & Training Services LLC | Ahtna Technical Services Inc. | Ahtna Government Services Corp. | Ahtna Construction & Primary Products Corp. | Ahtna Design Build Inc. | Ahtna Professional Services Inc. | Ahtna Environmental Inc. | Ahtna Technologies Inc. | AKHI LLC | Ahtna Global LLC | Ahtna Logistics LLC | Tolsona Oil & Gas Exploration LLC | Ahtna Engineering Services LLC | AAA Valley Gravel

AHTNA Inc.

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

Michelle Anderson President

374 1,413 1,991 1.5 MILLION $217,700,000 $188,400,000

Revenue Sources: Operations and maintenance contracts, $155,711,663; fuel sales, $7,943,881; rental properties, $2,821,042; natural resource, $3,648,632; investment income, $412,284; earnings, $833,639; other, $284,682. Business Activities: Federal contracting; O&M; instrumentation for oil and gas industry; mechanical contracting; radiological laboratory analysis, field testing, land remediation; commercial and residential real estate; fuel sales and storage; oil well testing services; information technology; and construction services. Significant Endeavors: Port of Adak development. Subsidiaries: Aleut Enterprises LLC | Aleut Management Services | Aleut Real Estate LLC, | Alaska Instrument LLC | C&H Testing LLC | Patrick Mechanical | ARS International

Aleut Corp.

Matt Fagnani CEO

ALASKA EMPLOYEES: 188 WORLDWIDE EMPLOYEES: 1,066 SHAREHOLDERS: 3,800 ACRES: 1.577* 2016 GROSS REVENUE: $171,655,823 2015 GROSS REVENUE: $137,942,098

* 1.5 million subsurface acres and 77,000 surface acres

Revenue Sources: Government services, 44.1%; petroleum refining and marketing, 23.4%; energy

support services, 19.6%; industrial services, 7.1%; construction, 4.0%; other, 1.8%. Business Activities: ASRC has six main lines of business including petroleum refining and marketing, energy support services, industrial services, construction, government services, and resource development. Significant Endeavors: In an effort to expand core operations in Alaska, ASRC added an asphalt oil plant at subsidiary Petro Star Inc.’s North Pole refinery, which is now in operation. ASRC also completed construction of a shop in Deadhorse for ASRC Energy Services, which adds to service offerings on the North Slope. Subsidiaries: ASRC Energy Services LLC | ASRC Federal Holding Company LLC | ASRC Construction Holding Company | Eskimos Inc. | Tundra Tours Inc. | Petro Star Inc. | Alaska Growth Capital | Little Red Services Inc. | Arctic Pipe Inspection Inc. | ASRC Industrial Services LLC

Arctic Slope Regional Corp.

Rex A. Rock Sr. President/CEO

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

3,687 11,316 12,493 ~5 MILLION $2,371,164,000 $2,515,377,000

COMPANIES

BUILDING ALASKA MARINE LLC

ENERGY SERVICES LLC A CIRI COMPANY

A CIRI COMPANY

FOR MORE THAN

s r a e y 6 3

CONTRUCTION, INC Experts in Resource Development and Heavy Civil Construction

Cruz Construction | Alaska Interstate Construction | Alaska Aggregate Products Cruz Energy Services | Cruz Marine Original

A CIRI Company

Option 1

A CIRI Company

Option 2

Alaska Business Monthly | September 2017 www.akbizmag.com

Gail R. Schubert President/CEO

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

534 1,566 7,700 2.1 MILLION $326,000,000 $304,404,000

Revenue Sources: Not disclosed to Alaska Business. Business Activities: Construction, government services, industrial services, and tourism. Significant Endeavors: BBNCâ&#x20AC;&#x2122;s most current and significant endeavor is increasing its earnings and

Bristol Bay Native Corp.

Jason Metrokin President/CEO

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

1,292 4,383 10,350 3 MILLION $1,525,181,000 $1,512,022,000

Calista Corp.

Andrew Guy President/CEO

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

788 2,900 13,000 6.5 MILLION $492,200,000 $460,100,000

Revenue Sources: Defense contracting; construction; heavy equipment sales, rental, service; real estate; environmental services; marine transportation; oil field services; fiber optic services; logistics. Business Activities: Calista Corporation owns more than thirty-five subsidiaries, providing a variety of services including rural camp services; heavy equipment sales, rental and service; both rural and urban construction; environmental remediation, range reclamation and natural resource development; ocean and shallow-draft river marine transportation; real estate investments; telecommunications, cyber security and cloud technology; and military defense contracting. Significant Endeavors: Enrollment of roughly 13,500 Descendants of original Shareholders, doubling our original enrollment of 13,000 Shareholders. Subsidiaries: Ookichista Drilling Services Inc | Tunista Services LLC | Y-Tech Services Inc. | Yulista Aviation Inc. | Yulista Management Services Inc. | Chiulista Services Inc. | Brice Incorporated | Tunista Inc. | Yukon Equipment Inc. | Brice Construction | Brice Marine LLC | Brice Equipment | Calista Real Estate | Aulukista LLC | Yulista Tactical Services LLC | Qagan Lands LLC | Calista Education & Culture | Brice Environmental Services Corp. | Alaska Crane Ltd. | Futaris Fibre LLC | E3 Environmental LLC | STG Inc. | STG Pacific

Af gnak Youth Charity

Golf Tournament

2017

Quyanaa for your contributions to help sustain cultural education opportunities for Alutiiq youth. The Native Village of Afognak and Native Village of Port Lions thank you for your generosity!

We look forward to seeing you at the 3rd Annual Afognak Youth Charity Golf Tournament in 2018! 2017 Sponsors Alaska Communications Ahtna Alaska Building Maintenance Group Alaska Energy Services Alaska Frontier Constructors Alaska Permanent Capital Management Alaska USA Federal Credit Union Anchorage Chrysler Jeep Dodge AT&T ATS Alaska Alutiiq, LLC BAC Bristol Bay Native Corporation BDO Best Western Kodiak Inn Captain Cook www.akbizmag.com

CDW CH2M Hill Coastal Television Coldwell Banker Connect HR Construction Machinery Industrial Delta Delta Leasing First National Bank Alaska GCSIT Solutions GCI GHA Technologies, Inc. Girdwood Brewing Company Government Service Administrators Ice Services Image Drywall & Paint, Inc. Insuvi

Jackson Lewis PC Jackson Rosenfield Kaladi Brothers Coffee KeyBank Kodiak Brown Bear Center Koniag, Incorporated Krispy Kreme Liberty Mutual Lounsbury and Associates Malone Construction, LLC Marsh and McLennan Merrill Lynch NANA Management Services Old Harbor Native Corporation Outlook Law Pacific Portfolio Perkins Coie

PND Engineers Price Gregory/Conam Rainproof Roofing SAExploration Schneider Structural Engineers Shrader Clan Signal Group Sorensen & Edwards Summit Group Tetra Tech Tikigaq Corporation Titan Tulalip Resort Casino UBS Verizon Wireless Waste Management Wells Fargo

September 2017 | Alaska Business Monthly

ALASKA NATIVE BUSINESS SPECIAL SECTION | REGIONAL CORPORATION DIRECTORY

Bering Straits Native Corp.

Revenue Sources: Base operation support services, information technology, logistics and procurement, professional support services, construction, security services, hardware retail and wholesale distribution, and environmental. Business Activities BSNCâ&#x20AC;&#x2122;s diverse capabilities include base operation support services, IT services, logistics and procurement, professional support services, construction, security services, hardware retail, and wholesale distribution. Significant Endeavors: BSNC subsidiary Eagle Eye Electric was awarded a contract by the Alaska Army National Guard to drain and close diesel fuel tanks in fifty Alaska communities. Unused fuel will be donated to local tribal organizations. Due to the high cost of fuel in rural Alaska, Eagle Eye will encourage tribal organizations to gift the fuel to Elders or families in need. Eagle Eye will filter the diesel fuel for water and sediment prior to donation. Subsidiaries: Inuit Services Inc. | Bering Straits Aerospace Services LLC | Bering Straits Logistics Services LLC | Bering Straits Information Technology LLC | Bering Straits Technical Services LLC | Bering Straits Aki LLC | Eagle Eye Electric LLC | Ayak LLC | Global Support Services LLC | Global Management Services LLC | Iyabak Construction LLC | Global Asset Technologies LLC | Global Precision Systems LLC | Bering Straits Development Co. | Global Technical Services LLC | Golden Glacier Inc. | 4600 Debarr LLC | Alaska Industrial Hardware | Paragon Professional Services LLC | Arcticom LLC | Alaska Gold Company LLC

ALASKA CORPORATION

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

Gabriel Kompkoff CEO

800 6,000 2,600 1 MILLION* $842,000,000 $758,000,000

Revenue Sources: Government services; facilities services; energy services; investments; land and resource development. Business Activities: Blending rich heritage and cultural values with vast experience and unparalleled customer service, we use the capabilities of the entire corporation to support our customers in ways no other company can: government services, facilities services, energy services, investments, land and resource development. Significant Endeavors: Chugach sold its coal rights in the Bering River Coal Field to New Forests in 2016 (the coal development rights were then retired) and is pursuing a carbon offset project on 115,000 acres of its timberlands in 2017 and beyond. Chugach also made its largest acquisition to date in 2016, with Chicago-based facilities services company Rex Electric & Technologies. These moves allow us to provide valuable financial benefits to shareholders today and well into the future. Subsidiaries: Rex Electric & Technologies | Heide & Cook | All American Oilfield | Chugach Alaska Services | Chugach Tuullek | Chugach Professional Oilfield Services | Chugach Commercial Holdings | Chugach Government Solutions | Chugach Investment Holdings | Chugach Government Services | Wolf Creek Federal Services | Chugach Management Services | Chugach Consolidated Solutions | Chugach Industries | Chugach World Services | Chugach Information Technology | Defense Base Services | Chugach Federal Solutions | Chugach Education Services | Chugach Technical Solutions | Chugach Training & Educational Solutions | Chugach Systems Integration *378,000 acres of full fee estate and 550,000 acres of subsurface

Cook Inlet Region Inc.

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

Sophie Minich President/CEO

283 1,403 8,797 1.9 MILLION* $289,048,000 $222,810,000

Revenue Sources: Real estate; oilfield and construction services; land and natural resources; energy and infrastructure; environmental services; government services and private equity. Business Activities: CIRI’s investments are primarily in the following business sectors: real estate, oilfield and construction services, land and natural resources, energy and infrastructure, environmental services, government services, marketable securities, and private equity. Significant Endeavors: CIRI is one of the primary investors in the Middletown Energy Center, a 475-megawatt natural gas fired power plant under construction in Middletown, Ohio. The plant is slated to begin commercial operations in 2018. Subsidiaries: CIRI Land Development Co. (CLDC) | North Wind Group | Fire Island Wind LLC | Cruz Energy Services LLC | Cruz Marine LLC | Weldin Construction LLC | Silver Mountain Construction LLC | CIRI Services Corporation | ANC R&D *625,000 acres (surface), 1.6 million acres (subsurface)

Doyon Ltd.

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

Aaron Schutt President/CEO

537 831 19,700 12.5 MILLION $305,412,000 $378,288,768

Revenue Sources: Oilfield services; government contracting; lands & natural resources; tourism. Business Activities: Oil field services, utility management, engineering management, land and natural resource development, facility management, construction, information technology, telecommunications, and commercial laundry services. Significant Endeavors: Doyon Drilling (DDI) and National Oilwell Varco are currently building a new Extended Reach Drilling Rig for ConocoPhillips, Alaska, announced in a joint media release in October 2016. Rig design is currently 85% complete, with fabrication 25% complete; DDI is on track for scheduled delivery to ConocoPhillips in early 2020. This new rig, Rig 26, will have the ability to directional drill to at least 33,000’ and have the capacity to develop resources within a 125-square mile area. Subsidiaries: Doyon Oil Field Services Inc. | Doyon Government Contracting Inc. | Doyon Natural Resources Development Corp. | Northern Laundry Services | Doyon Tourism | Northstar Manager LLC

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ALASKA NATIVE BUSINESS SPECIAL SECTION | REGIONAL CORPORATION DIRECTORY

Chugach Alaska Corp.

LEADER In All We Do Doyon operates more than a dozen for-profit companies driving hundreds of jobs in Alaska and beyond. WWW.DOYON.COM | 1-888-478-4755

Alaska Business Monthly | September 2017 www.akbizmag.com

Elizabeth Perry, PhD President/CEO

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

55 469 3,850 145,000 $251,588,000 $267,460,000

NANA Regional Corp.

Wayne Westlake President/CEO

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

5,296 14,095 14,000 2.2 MILLION $1,300,000,000 $1,600,000,000

Revenue Sources: Natural resources, marketable securities, and business units. Business Activities: NANA has operations in fifty states, fifteen countries and across four continents in our core areas of: resource development/mining, federal, commercial, and oil and gas support. Significant Endeavors: The Red Dog Mine, located in the NANA Region in Northwest Alaska, is NANA’s most profitable investment. Subsidiaries: NANA Development Corporation

Sealaska Corp.

Anthony Mallott President/CEO

ALASKA EMPLOYEES: WORLDWIDE EMPLOYEES: SHAREHOLDERS: ACRES: 2016 GROSS REVENUE: 2015 GROSS REVENUE:

51 264 22,079 360,000 $145,500,000 $109,440,000

Revenue Sources: Water and maritime: Water monitoring and data analytic capability, IT services, general construction and design-build, environmental remediation and services. Natural resources: Sustainable timber harvest and community-based food projects, forest products, construction aggregates. Seafood and natural foods: Seafood businesses that add value. Business Activities: Sealaska made its first investment in 2016, as part of its 2012 strategic plan and purchased a minority interest in Independent Packers Corporation, a custom seafood processor located in Seattle. In April 2017, Sealaska acquired a majority ownership in Odyssey, a Seattle-based seafood and marketing company. Significant Endeavors: Sealaska’s financial business success allows Sealaska to achieve its mission of increasing the benefits provided to shareholders in Southeast communities. Sealaska’s purpose is to strengthen people, culture, and homelands. Subsidiaries: Sealaska Timber Company | Alaska Coastal Aggregates | Sealaska Environmental Services | Managed Business Solutions | Sealaska Constructors LLC | Sealaska Construction Solutions LLC | Sealaska Government Services LLC | Sealaska Technical Services LLC

Innovation at the Speed of Light. It’s here. True, high speed, broadband, fiber optic capacity. Delivering performance Alaskans deserve. Service is currently available in Deadhorse, and Prudhoe Bay where Quintillion’s JV infield fiber system is also available. Coming in 2017: Utqiagvik, Point Hope, Wainwright, Kotzebue and Nome! Explore, produce, innovate and create efficiencies: • More Bandwidth • Lower Cost • Enhanced Security and Reliability

Qexpressnet.com

www.akbizmag.com

September 2017 | Alaska Business Monthly

ALASKA NATIVE BUSINESS SPECIAL SECTION | REGIONAL CORPORATION DIRECTORY

Koniag Inc.

Revenue Sources: For Fiscal Year ending March 31, 2016: contracting and sales revenue, $248,469,000; lease income, $124,000; natural resources revenue, $3,592,000; equity in earnings of affiliates, $21,000; interest income, $188,000; other, $175,000. Business Activities Alaska Regional Native Corporation with operations in government services, information technology, natural resource development, oilfield services, real estate services, technical services, and tourism. Significant Endeavors: Koniag established two new Shareholder programs this year. The Richard Frost Youth Scholarship Program provides Shareholders and Descendants, from kindergarten through high school, with up to $500 to attend training or camps that will help them reach their goals. The Burial Assistance Program provides up to $1,000 to assist with burial expenses. Subsidiaries: Digitized Schematic Solutions LLC | Frontier Systems Integrator LLC | Koniag Development Company LLC | Koniag Services Inc. | Professional Computing Resources Inc. | XMCO Inc. | Dowland-Bach Corp. | Koniag Information Security Services LLC | Granite Cove Quarry LLC | Koniag Technology Solutions Inc. | Nunat Holdings LLC | Near Island Building LLC | Karluk Wilderness Adventures Inc. dba Kodiak Brown Bear Center and dba Karluk River Cabins | PacArctic LLC | Open Systems Technology DE LLC | Arlluk Technology Solutions LLC | Eagle Harbor Solutions LLC | Kadiak, LLC | Tuknik Government Services LLC

SPECIAL SECTION

Alaska Native Business

2017 Alaska Native Village Corporation Directory Village Corporation Afognak Native Corporation Akhiok-Kaguyak, Incorporated Akiachak, Limited Akutan Corporation Alakanuk Native Corporation Alaska Peninsula Corporation Aleknagik Natives Limited Alexander Creek, Incorporated* Arviq Incorporated Askinuk Corporation Atmautluak Limited Atqasuk Corporation Atxam Corporation Ayakulik, Incorporated Azachorok Incorporated Baan O Yeel Kon Corporation Bay View, Incorporated Bean Ridge Corporation Beaver Kwit’chin Corporation Becharof Corporation Belkofski Corporation Bethel Native Corporation Brevig Mission Native Corporation Cape Fox Corporation Caswell Native Association* Chalkyitsik Native Corporation Chaluka Corporation Chefarnrmute, Incorporated Chevak Company Chickaloon-Moose Creek Native Association, Incorporated Chignik Lagoon Native Corporation Chignik River Limited Chinuruk Incorporated Chitina Native Corporation Choggiung Limited Chuloonawick Corporation Council Native Corporation Cully Corporation Incorporated Danzhit Hanlaii Corporation Deloy ges Corporation Deloycheet, Incorporated Dineega Corporation Dinyea Corporation Dot Lake Native Corporation Eklutna, Incorporated Ekwok Natives Limited Elim Native Corporation Emmonak Corporation Evansville, Incorporated Far West, Incorporated Gana-A’Yoo, Limited Goldbelt, Incorporated** Golovin Native Corporation Gwitchyaa Zhee Corporation 84

Address 215 Mission Road, Suite 212 1400 W. Benson Blvd. #425 PO Box 51010 PO Box 8 PO Box 89 2221 E. Northern Lights Blvd., Ste 119 PO Box 1630 8128 Cranberry Street PO Box 9 PO Box 89 PO Box 6548 PO Box 1169 PO Box 47001 3741 Richmond #5 PO Box 32213 PO Box 74558 7926 Old Seward, Suite A-7 PO Box 82062 PO Box 24090 PO Box 220029 PO Box 46 PO Box 719 PO Box 85024 PO Box 8558 HC 89 Box 83 PO Box 53 PO Box 104 PO Box 70 PO Box 179 PO Box 875046

City Kodiak Anchorage Akiachak Akutan Alakanuk Anchorage Dillingham Anchorage Platinum Scammon Bay Atmautluak Barrow Atka Anchorage Mountain Village Fairbanks Anchorage Fairbanks Beaver Anchorage King Cove Bethel Brevig Mission Ketchican Willow Chalkyitsik Nikolski Chefornak Chevak Wasilla

Phone (907) 486-6014 (907) 258-0604 (907) 825-4328 (907) 698-2206 (907) 238-3117 (907) 274-2433 (907) 842-2385 (907) 243-5323 (907) 979-8113 (907) 558-5411 (907) 553-5428 (907) 852-8633 (907) 839-2237 (907) 279-7911 (907) 591-2527 (907) 456-6259 (907) 345-9627 (907) 458-2176 (907) 456-1640 (907) 561-4777 (907) 497-3122 (907) 543-2124 (907) 642-4091 (907) 225-5163 (907) 345-6626 (907) 848-8112 (907) 576-2215 (907) 867-8115 (907) 858-7920 (907) 373-1145

16016 Mammoth Cir PO Box 48008 PO Box 90009 PO Box 3 PO Box 330 2635 Draper Dr PO Box 1183 5001 Eagle Street, Unit B PO Box 71372 PO Box 150 PO Box 228 PO Box 28 PO Box 71372 3500 Wolf Run 16515 Centerfield Dr. #201 PO Box 1189 PO Box 39010 PO Box 49 P.O.Box 60670 3150 C St., Suite 270 6927 Old Seward Suite 101 3075 Vintage Boulevard, Suite 200 PO Box 62099 PO Box 329

Eagle River Chignik Lake Nightmute Chitina Dillingham Anchorage Nome Anchorage Fairbanks Anvik Holy Cross Ruby Fairbanks Fairbanks Eagle River Dillingham Elim Emmonak Fairbanks Anchorage Anchorage Juneau Golovin Fort Yukon

(907) 840-2225 (907) 845-2212 (907) 647-6813 (907) 823-2223 (907) 842-5218 (907) 949-1234 (907) 443-6513 (907) 569-2705 (907) 455-8484 (907) 663-6396 (907) 476-7177 (907) 468-4405 (907) 452-5063 (907) 347-1251 (907) 696-2828 (907) 464-3336 (907) 890-3741 (907) 949-1129 (907) 374-7084 (907) 276-2580 (907) 569-9599 (907) 790-4990 (907) 779-3251 (907) 662-2933

Website http://www.afognak.com

http://www.alaskapeninsulacorp.com

http://bethelnativecorp.org http://capefoxcorp.com

http://www.chefarnrmuteinc.com http://www.chickaloon.org

http://www.chitinanative.com http://choggiung.com/

http://www.cullycorp.com

http://www.deloycheet.com/

http://www.eklutnainc.com

http://kazwork.net http://www.ganaayoo.com http://www.goldbelt.com

Alaska Business Monthly | September 2017 www.akbizmag.com

www.akbizmag.com

City Hydaburg Fairbanks Grayling Juneau Fairbanks Igiugig Anchorage Diomede Eek False Pass Kake Kaktovik Kasigluk Ketchikan Kenai Anchorage Kotzebue Nome Klawock Haines Wasilla Akiak Koliganek Kotlik Juneau Kotlik Fairbanks Koyuk Kipnuk Goodnews Bay Savoonga Anchorage Kwethluk Kwigillingok Anchorage Levelock Anchorage Kodiak Manokotak Teller Marshall Fairbanks Anchorage McGrath Napakiak Kodiak Nelson Lagoon Saint Mary’s Newtok Mekoryuk Ninilchik Northway Toksook Bay Kotlik Nunapitchuk Perryville Lower Kalskag Old Harbor Wainwright Dillingham Napaskiak Unalaska Ouzinkie Hooper Bay

Phone (907) 285-3721 (907) 453-5133 (907) 523-3670 (907) 778-2231 (907) 533-3211 (907) 571-1246 (907) 686-3221 (907) 536-5211 (907) 548-2217 (907) 785-3221 (907) 640-6120 (907) 447-6113 (907) 542-2214 (907) 283-4851 (907) 561-4487 (907) 442-3165 (907) 443-5494 (907) 755-2270 (907) 766-2211 (907) 376-2845 (907) 765-7228 (907) 596-3440 (907) 899-4016 (907) 790-2992 (907) 899-4014 (907) 452-8119 (907) 963-2424 (907) 896-5414 (907) 967-8428 (907) 984-6184 (907) 480-6220 (907) 757-6212 (907) 588-8112 (907) 222-6900 (907) 287-3040 (907) 276-1550 (907) 486-4833 (907) 289-1062 (907) 642-2308 (907) 679-6512 (907) 452-3094 (907) 569-9005 (907) 524-3391 (907) 589-2227 (907) 486-3606 (907) 989-2204 (907) 438-2332 (907) 237-2200 (907) 827-8636 (907) 567-3866 (907) 778-2298 (907) 427-7929 (907) 899-4453 (907) 527-5717 (907) 797-2300 (907) 679-6517 (907) 286-2286 (907) 763-2613 (907) 842-3511 (907) 737-7090 (907) 581-1276 (907) 680-2208 (907) 527-4915

Website http://www.haidacorp.com/index.htm

http://www.hunatotem.com/ http://www.igiugig.com/

http://www.isanotski.alaska.com

http://www.kavilco.com/ http://www.kijikcorp.com/ http://www.kikiktagruk.com/ http://www.kingislandnative.com/ http://www.klawockheenya.com http://www.klukwan.com

http://www.kootznoowoo.com http://www.koyitlotsina.com/

http://184.168.53.143/

http://www.leisnoi.com

http://www.mtnt.net/ http://www.nativesofkodiak.com

http://www.nimacorporation.com http://www.nnai.net

http://oldharbornativecorp.com http://www.olgoonik.com

http://www.ounalashka.com http://www.ouzinkienativecorporation.com

September 2017 | Alaska Business Monthly

ALASKA NATIVE BUSINESS SPECIAL SECTION | VILLAGE CORPORATION DIRECTORY

Village Corporation Address Haida Corporation PO Box 89 Healy Lake Trade Village Corporation PO Box 60300, Healy Lake No. 19 Hee-Yea-Lingde Corporation PO Box 9 Huna Totem Corporation 9301 Glacier Hwy., Suite 200 Hungwitchin Corporation PO Box 84594 Igiugig Native Corporation PO Box 4009 Iliamna Natives Limited 3201 C Street, Suite 406 Inalik Native Corporation PO Box 7040 Iqfijouaq Company PO Box 49 Isanotski Corporation PO Box 9 Kake Tribal Corporation PO Box 263 Kaktovik Inupiat Corporation P. O. Box 73 Kasigluk, Incorporated PO Box 39 Kavilco Incorporated PO Box KXA Kasaan Kenai Natives Association, Incorporated** 215 Fidalgo Ave. #101 Kijik Corporation 1577 C Street, Suite 302 Kikiktagruk Inupiat Corporation PO Box 1050 King Island Native Corporation PO Box 992 Klawock Heenya Corporation PO Box 129 Klukwan, Incorporated PO Box 209 Knikatnu, Incorporated PO Box 872130 Kokarmuit Corporation PO Box 147 Koliganek Natives Limited PO Box 5023 Kongnikilnomuit Yuita Corporation PO Box 20308 Kootznoowoo, Incorporated 8585 Old Dairy Road, Suite 104 Kotlik Yupik Corporation PO Box 20207 K’oyitl’ots’ina, Limited 1603 College Road Koyuk Native Corporation PO Box 53050 Kugkaktlik, Limited PO Box 36 Kuitsarak, Incorporated PO Box 150 Kukulget, Incorporated*** PO Box 160 Kuukpik Corporation 801 B Street, Suite 300 Kwethluk Incorporated PO Box 110 Kwik Incorporated PO Box 110 Leisnoi, Incorporated 2000 Dowling Road, Suite 3 Levelock Natives Limited PO Box 109 Lime Village Company 605 West Tudor Road Litnik, Incorporated PO Box 1962 Manokotak Natives Limited PO Box 149 Mary’s Igloo Native Corporation PO Box 650 Maserculiq, Incorporated PO Box 90 Mendas Cha-ag Native Corporation 457 Cindy Drive Montana Creek Native Association* 3300 C Street, Suite 111 MTNT, Limited PO Box 309 Napakiak Corporation PO Box 34030 Natives of Kodiak, Incorporated** 215 Mission Rd. #201 Nelson Lagoon Corporation PO Box 913 Nerklikmute Native Corporation PO Box 87 Newtok Native Corporation PO Box 5528 Nima Corporation PO Box 52 Ninilchik Natives Association, Incorporated PO Box 39130 Northway Natives Incorporated PO Box 401 Nunakauiak Yupik Corporation PO Box 37068 Nunapiglluraq Corporation PO Box 20187 Nunapitchuk Limited PO Box 129 Oceanside Corporation PO Box 84 Ohog Incorporated PO Box 49 Old Harbor Native Corporation PO Box 71 Olgoonik Corporation PO Box 29 Olsonville, Incorporated* PO Box 571 Oscarville Native Corporation PO BOX 6085 Ounalashka Corporation PO Box 149 Ouzinkie Native Corporation PO Box 89 Paimiut Corporation PO Box 209

ALASKA NATIVE BUSINESS SPECIAL SECTION | VILLAGE CORPORATION DIRECTORY

Village Corporation Address Paug-Vik Incorporated, Limited PO Box 61 Pedro Bay Corporation 1500 West 33rd Avenue, Suite 220 Pilot Point Native Corporation PO Box 487 Pilot Station, Incorporated PO Box 5059 Pitka’s Point Native Corporation PO Box 289 Point Possession, Incorporated* 877 Shakespeare Circle Qanirtuuq, Incorporated PO Box 69 Qemirtalek Coast Corporation PO Box 5070 Russian Mission Native Corporation PO Box 48 Saguyak Incorporated PO Box 4 Salamatof Native Association, Incorporated 100 N. Willow Street Sanak Corporation PO Box 194 Sea Lion Corporation PO Box 87 Seldovia Native Association, Incorporated P.O. Drawer L Seth-De-Ya-Ah Corporation PO Box 56 Shaan-Seet, Incorporated PO Box 690 Shaktoolik Native Corporation PO Box 46 Shee Atika, Incorporated 315 Lincoln St. #300 Shishmaref Native Corporation P.O Box 72151 Shumagin Corporation PO Box 189 Shuyak, Incorporated PO Box 727 Sitnasuak Native Corporation PO Box 905 Sivuqaq, Incorporated PO Box 101 Solomon Native Corporation PO Box 243 St. George Tanaq Corporation 4141 B Street, Suite 301 St. Mary’s Native Corporation PO Box 149 St. Michael Native Corporation PO Box 59049 Stebbins Native Corporation PO Box 71110 Stuyahok Limited PO Box 1309 Swan Lake Corporation PO Box 25 Tanacross Incorporated PO Box 76029 Tanadgusix Corporation 4300 B Street, Ste 209 Tanalian, Incorporated* 2425 Merrill Field Dr. Teller Native Corporation PO Box 649 Tetlin Native Corporation P. O. Box 657 The Chenega Corporation 3000 C St, Suite 301 The English Bay Corporation 1637 Stanton Ave. The Eyak Corporation 901 LeFevre St., PO Box 340 The King Cove Corporation PO Box 38 The Kuskokwim Corporation PO Box 227 The Port Graham Corporation 629 L Street, Suite 205 The Tatitlek Corporation 561 E 36th Ave Tihteet’aii, Incorporated PO Box 71372 Tikigaq Corporation 2121 Abbott Road Toghotthele Corporation PO Box 249 Togiak Natives Limited PO Box 150 Tozitna, Limited PO Box 129 Tulkisarmute Incorporated PO Box 65 Tuntutuliak Land, Limited PO Box 8106 Tununrmiut Rinit Corporation PO Box 89 Twin Hills Native Corporation PO Box TWA Tyonek Native Corporation 1689 C Street, Suite 219 Uganik Natives, Incorporated PO Box 853 Ukpeagvik Inupiat Corporation PO Box 890 Unalakleet Native Corporation PO Box 100 Unga Corporation PO Box 130 Uyak Natives, Incorporated PO Box 31 Wales Native Corporation PO Box 529 White Mountain Native Corporation PO Box 81 Yak-Tat Kwaan Incorporated PO Box 416 Zho-Tse, Incorporated PO Box 130

City Naknek Anchorage Pilot Point Pilot Station St. Mary’s Anchorage Quinhagak Kongiganak Russian Mission Clarks Point Kenai Sand Point Hooper Bay Seldovia Minto Craig Shaktoolik Sitka Shishmaref Sand Point Kodiak Nome Gambell Nome Anchorage Saint Mary’s St. Michael Stebbins Dillingham Nunam Iqua Tanacross Anchorage Anchorage Teller Tok Anchorage Anchorage Cordova King Cove Aniak Anchorage Anchorage Fairbanks Anchorage Nenana Togiak Tanana Tuluksak Tuntutuliak Tununak Twin Hills Anchorage Kodiak Barrow Unalakleet Sand Point Chignik Wales White Mountain Yakutat Shageluk

Phone (907) 246-4277 (907) 277-1500 (907) 797-2213 (907) 549-3512 (907) 438-2953 (907) 563-1848 (907) 556-8290 (907) 557-5529 (907) 584-5885 (907) 236-1235 (907) 283-3745 (907) 383-6075 (907) 758-4415 (907) 234-7625 (907) 798-7181 (907) 826-3251 (907) 955-3241 (907) 747-3534 (907) 649-3751 (907) 383-3525 (907) 486-3842 (907) 387-1200 (907) 443-7526 (907) 272-9886 (907) 438-2315 (907) 923-3143 (907) 934-3074 (907) 693-3122 (907) 498-4227 (907) 883-4130 (907) 278-2312 (907) 272-3581 (907) 642-6132 (907) 277-5706 (907) 562-4703 (907) 424-7161 (907) 497-2312 (907) 675-4275 (907) 272-7432 (907) 278-4000 (907) 455-8484 (907) 365-6299 (907) 832-5832 (907) 493-5520 (907) 366-7255 (907) 695-6854 (907) 256-2315 (907) 652-6311 (907) 525-4327 (907) 272-0707 (907) 486-3009 (907) 852-4460 (907) 624-3411 (907) 383-5215 (907) 486-4681 (907) 664-3641 (907) 622-5003 (907) 784-3335 (907) 473-8262

Website http://www.pvil.com http://www.pedrobaycorp.com

http://www.salamatof.com/

http://www.snai.com http://www.shaanseet.com http://www.sheeatika.com http://www.shumagin.com http://www.snc.org

http://www.stgeorgetanaq.com

http://www.tanacrossinc.com

http://www.chenega.com http://eyakcorporation.com http://www.kingcovecorporation.com/ http://www.portgrahamcorp.com http://www.tatitlek.com

http://toghotthele.com

http://www.tyonek.com/ http://www.ukpik.com

http://www.yak-tatkwaan.com

Notes: * Group Corporation, ** Urban Corporation, ***Reserve Corporation Source: State of Alaska | Department of Commerce, Community and Economic Development | Division of Community and Regional Affairs | Updated January 29, 2016

Alaska Business Monthly | September 2017 www.akbizmag.com

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ARCTIC

Ongoing Activity in the Arctic National and international interest and activity increase By Garrison Wells

n the Arctic summer, the sun never sleeps. It is covered by a blanket of tundra—there are no trees, and in the winter it’s a landscape of white-on-white, snow-speckled bluffs, ice covered coasts, and ice floes so cold they appear to be a frigid translucent blue. The average winter temperature in the Arctic is a bonechilling -37 degrees Fahrenheit. In the short summers, when the pent-up tundra bursts with flora, temperatures range between 37 degrees and a sizzling 54 degrees Fahrenheit. It may be a frigid climate, but in some ways it is one of the hottest spots on earth, drawing the attention of national and international leaders, billion-dollar oil companies, environmentalists, and military groups worldwide. 88

Oil in the Alaska Arctic Underneath the Arctic beats a crude heart that could pump out enough oil to supply the entire world with oil for at least five years. The US Geological Survey pegs the Arctic oil supply at an estimated 90 billion barrels, or about 13 percent of the world’s undiscovered oil resources and 30 percent of its undiscovered conventional natural gas. Despite this massive supply of oil and natural gas, major oil companies are chilling on the Arctic, chased away by a combination of rigid US regulations, sanctions against Russia, and the shaky price of crude. The majority of Arctic oil and gas projects are incredibly difficult to make profitable at today’s oil prices, causing companies to flock to lessharsh climates. Spanish company Repsol, for example, abandoned its leases for Alaska’s Chukchi Sea in 2016, though in 2017 the oil giant and its partner Armstrong Energy announced the discovery of 1.2 billion barrels of oil on state land on the North Slope.

Shell ceased Alaska operations after investing billions of dollars into the Arctic in 2014. And despite a more business-friendly environment promised by the Trump administration intent on increasing energy independence, Shell is not coming back any time soon. “We still have no plans to pursue frontier exploration offshore Alaska for the foreseeable future,” says Spokesman Ray Fisher. Arctic oil producing veteran ExxonMobil has been exploring and pumping oil out of the Arctic for more than ninety years; and they too are adjusting to the changing Arctic. “ExxonMobil will continue to conduct and support research in key safety, health, and environment areas associated with Arctic exploration, such as oil spill prevention and response in ice and Arctic environments. This is required to build upon current technology and is consistent with a philosophy that demands continuous improvement,” says ExxonMobil Spokesman Todd Spitler. The direct beneficiaries of Arctic resource development, he adds, “are the people of the

Alaska Business Monthly | September 2017 www.akbizmag.com

Hilcorp, one of the largest privately-held oil and gas producers in the world, on the North Slope. Image courtesy of Hilcorp

A drilling operation on Northstar Island lights up as it operates. Image courtesy of Hilcorp

Arctic, who mostly welcome development and seek greater economic opportunity. ExxonMobil and other international oil companies operating in the Arctic invest heavily in community development and local employment.” While the United States doesn’t need Arctic oil and gas because it has other oil and gas resources (in the Southern US, for example), Alaska is different. “Alaska is in great need of investment and cash flow and oil and gas is definitely one of its sources of revenue generation, so there is a big difference in the Alaskan oil and gas needs depending on whether you look from a federal perspective or Alaskan perspective. During the Obama administration, we had the ban for offshore oil and gas drilling, which is still in place for the moment. Now we have the Trump administration attempting to waive that ban. That development will be very interesting to see,” says Tero Vauraste, president and CEO of Arctia Ltd. and chairman of the Arctic Economic Council. Even though current oil prices are a challenge to Arctic oil and gas drilling, especially in the more difficult areas to develop, Vauraste points out that oil and gas companies eyeing the Arctic have a long-term outlook. www.akbizmag.com

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A drilling rig in action on a new development on the North Slope. Image courtesy of Alaska Oil and Gas Association

The Arctic Council The Arctic Council is a group of eight nations—Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden, and the United States—that have sovereignty over the lands within the Arctic Circle. To many, the Arctic Council is the most important organization in the Arctic’s future, in part because of the Arctic Council’s adoption of the World Economic Forum’s Arctic Investment Protocol, which has six themes to guide economic development. The Arctic Investment Protocol was published in December 2015. Its themes include:  Building resilient societies through economic development.  Respecting and including local communities and indigenous peoples.  Pursuing measures to protect the environment of the Arctic.  Practicing responsible and transparent business methods.  Consulting and integrating science and traditional ecological knowledge.  Strengthening pan-Arctic collaboration and sharing of best practices. “We definitely need responsible industrial activity,” Vauraste says. The country most involved in developing Arctic resources to date is Russia, Vauraste says. More than 20 percent of the country’s GDP comes from the Arctic area. “It’s in Russia’s interests to develop these types of operations,” he says. “They are definitely number one.” China’s recent shift in its trade policies and Arctic strategy will also have an impact on the Arctic’s future. 90

“They have added sea routes, and it is a significant change, and it really hasn’t been noticed,” he says. “China may see that area as a major shipping route.”

Changing Environments Climate change is having a huge impact on the Arctic, Vauraste says—beyond melting ice and new trade routes—there remains concern over US protectionist moves and the decision to pull out of the Paris Agreement. “Climate changes in the Arctic are the result of activity outside of the Arctic and not within the Arctic,” he says. Vauraste has little concern that development of Arctic oil could endanger the region, pointing out that there has been success in the US and Canadian Arctic. There’s also been successful drilling in offshore Arctic Russia and the subarctic areas around Sakhalin. “Everything went quite well,” he says. “They have been working safely, but we have to bear in mind that, on average, we are going into an era of less ice, and situations could get more difficult because of high waves and ice floes and because drilling around icebergs is much more dangerous than in an icefield.” A few years ago, he says, a huge crack developed on the Arctic sea ice “which meant that all operations had to be suspended. It was done successfully, but that was an example of a situation which is actually the result of climate change.” If oil and gas development is to continue, “We need to be very careful of the safety and security issues and use the very best service and technologies,” Vauraste says. “That is where I would highlight the need for free trade. Going into protectionism and raising barriers between Arctic nations—we are going in the wrong direction. Lowering barriers to free trade works for safe Arctic operations.” The loss of ice in the Arctic continues to be a growing concern. It affects whaling,

seal hunting, and fishing. The growth of other economic activities such as shipping, mining, and travel bring additional impacts to the Arctic. There has already been a significant uptick in travel—especially tourism—Vauraste says. “We are seeing very big growth, both in Iceland and Finland. You could consider that an Arctic resource,” he says. “The amount of tourism has more than doubled in the last three or four years in Iceland and grown 30 to 40 percent in Finland.” Many of the tourists are also from China and Japan, he says.

The Arctic’s Indigenous People On board the Finnish icebreaker Nordica in July, traveling from Vancouver toward Alaska and then on to the Bering Sea, were indigenous people from throughout the Arctic. They were there for a vital reason. “We have been actively working together with indigenous communities for that voyage and their opinions are very important to us,” Vauraste says. “There is a lot of variety among the indigenous nations. On one side some are saying, ‘We have adapted to development so we should be able to adapt again,’ and others say, ‘We have been hunting seal for centuries and we are not going with the development.’” Indeed, Vauraste says, nations and companies pursuing Arctic development should work within the indigenous communities, not just work together. “We should have a coherent view, because we are on their land where they have the best know-how and best information,” he says. “The impact of economic activity should be sustainable and in no way endanger indigenous communities.” Despite the differing needs and views about development, Vauraste says, the Arctic has managed to remain an area of peace and stability. “All of the Arctic nations and other nations are saying we should avoid the

Alaska Business Monthly | September 2017 www.akbizmag.com

Kara Moriarty, President and CEO of the Alaska Oil and Gas Association.

tensions,” he says. “The stability of the Arctic area should spill into the areas which are going through different types of tension.” The future could look a little different, however. “We have to remember that we have forthcoming claims, and these claims are going to question who is going to be in position in the future to master the North Pole and maybe control the increased traffic,” he says. “There is the potential for new, looming pressures that have not evolved yet.” He points to increased military activity in the Arctic by the United States, China, and Russia.

Alaska Is Vital Alaska is a critical player in the future of the United States.

“Simply put, and it’s not cliché, the way we view it is the pathway to energy dominance goes through Alaska,” says Vincent DeVito, Counselor for Energy Policy at the US Department of the Interior. “With regard to the Arctic and other opportunities to increase production and create jobs in a responsible fashion, we are examining the opportunities that would be beneficial to those in the market that would want to invest,” he says. “We’re talking here primarily about developers and producers.” DeVito says he sees plenty of optimism based on the Trump administration’s actions on oil and gas so far. “Not to be specific about the Arctic, but the reality is across the board we are seeing an uptick in interest in federally owned land,” he says. One example is the lease sale at Cook Inlet—the first in Alaska’s federal waters since 2008—that garnered more than $3 million in high bids. “We have a review of the final rule on drilling in the Arctic and I think we are being very prompt in that review,” DeVito says. “Alaska is obviously an economy that we are focused on. We believe, and the secretary believes, that our policies are going to help Alaska and jump start Alaskan energy. That is definitely an objective, even with the existing footprint.” DeVito adds that Interior Secretary Ryan Zinke and he have been meeting with Alaska Native and community leaders who will be affected by the administration’s policy on oil and gas development. “They’ve expressed enthusiasm for our approach and for the opendoor policy that we have,” he says. “It’s beyond a phone call or meeting. The follow up has been pretty robust, too.” Change can’t come a minute too soon. The state’s faltering oil and gas production has led to the loss of 6,000 jobs and the prices of commodities have lowered the state’s GDP, says Kara Moriarty, president and CEO of the Alaska Oil and Gas Association. “It’s no secret that Alaska’s economy is an oil based economy with one-third of all jobs in Alaska attributed to the

industry and over a third of private sector wages,” she says. “Clearly there’s no other private sector industry that even comes close to that.” Today, production hovers around 530,000 barrels a day, she notes, and the Trans Alaska Pipeline System was built for 2 million barrels a day. “Now we are number four in production in the United States. We have a ton of oil, but without a strong oil and gas business, Alaska does not have a strong economy. It is really that simple and the facts bear that out.” Says Joshua Kindred, environmental counsel for AOGA: “It depends on the interest in the region and the belief that Trump will work with operators to create a more streamlined process. The resources though are there. It’s just been the cost associated with opening up those resources.” Alaska’s future is on the table, Moriarty says. “As we look to the next generation or two of oil and gas, we have a lot of oil remaining in state lands, but the mega oil is in federal land and a lot of that is offshore,” Moriarty says. The North Slope has produced more than 17 billion barrels of oil. There is an estimated 27 billion in the Arctic offshore, she says. “You can see the magnitude of potential that exists,” Moriarty says. “Oil and gas could continue to be the heartbeat for Alaska for the next forty years. The resources sit there and we wait to have access to it.” The Arctic is going to be developed, regardless of the relationship between the United States and Russia. Russia is exploring and building infrastructure, she says. The United States shouldn’t be sitting on the bench. “Why would we want to take a back seat and not be a leader of energy development of our Arctic resources?” Moriarty says. “It makes sense for companies to look at it. That corridor is going to open and there’s going to be Arctic development.” R Garrison Wells is an award-winning business writer.

The Oooguruk project is located near-shore of Alaska’s Beaufort Sea. It consists of a six-acre gravel drill site approximately five miles offshore in 4.5 feet of water. Image courtesy of Caelus Energy Alaska

www.akbizmag.com

September 2017 | Alaska Business Monthly

OIL & GAS

Innovation Keeps North Slope Oil Flowing

K-2 Dronotics flies above a forty-five acre gravel pit in King Salmon to create fullcolor scaled 3D models and other GIS products for a surveying team. Image courtesy of K2 Dronotics

By Julie Stricker

uch has changed since oil was discovered at Prudhoe Bay in 1968. Since production began in 1977, constant technological innovation has resulted in more than 17 billion barrels of oil being carried through the trans-Alaska pipeline, far more than initial estimates predicted. Oil companies that once erected giant pieces of machinery to tap the oil directly below them are now able to drill laterally and access satellite deposits without changing their footprint on the fragile tundra. Advances in 3D seismic surveying allow companies to find and delineate petroleum-containing basins more precisely. And they’re able to access more oil from each basin through enhanced oil recovery techniques such as large-scale gas cycling, gas injection, and coiled tubing drilling. Technology is one method oil companies are able to use to yield more oil out of the ground safely, cost-efficiently, and with a reduced environmental footprint—and Alaska companies are leading the way.

All Projects Begin with Transportation The first step to reducing costs and increasing efficiency starts far from the North Slope in Washington State. That’s where almost all food, raw materials, and equipment needed in the oil fields begin their long trip north. 92

Matson is one of three major shippers serving Alaska, along with Saltchuk (which owns Tote Maritime) and Lynden (which owns Alaska Marine Lines and Lynden Transport). “Ultimately, we run a business in a region with some of the most extreme weather and tides effectively and efficiently,” says Lindsey Whitt, manager of external affairs for Matson. “For us, it all starts in Tacoma,” Whitt says. “If there’s something going to the North Slope, it would start from an order from the customer—maybe the product is made in Timbuktu, Ohio—it gets to Tacoma, and then we take it from Tacoma to Anchorage, and a freight for-

warder would take it to the customer [on the] North Slope.” Getting cargo from Tacoma to Alaska quickly and efficiently is a big part of the journey north, and over the forty years that Prudhoe Bay has been producing oil, shipping technology also evolved. Today, all cargo is automatically checked in and checked out from ports, and a program automates how the cargo is stacked, Whitt says. Matson always knows exactly where its ships are in the delivery process, as well as exactly what each ship is carrying, thanks to cutting-edge technology.

Image courtesy of K2 Dronotics

Technology reduces costs, increases safety, yields results

K-2 Dronotics flies a drone over Island Lake with the experimental LIDAR system developed for higher-accuracy mapping across frozen terrain.

Alaska Business Monthly | September 2017 www.akbizmag.com

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Matson’s Tacoma operations are solely focused on Alaska, Whitt says. “Everything is automated and computerized, so every time we stack the ship, there’s a specific computer program that is organizing what’s going to Kodiak Island, what’s going to Dutch, what needs to be off in Anchorage first.” Since Matson owns its own infrastructure at the Alaska ports, its ships are able to park immediately and begin unloading freight without having to schedule or wait for cranes. “I guess one of the most obvious efficiencies is just being up to date with our infrastructure and our equipment—owning our infrastructure and equipment. And then of course we have technology with our website, mobile apps, checking-in technology, and tracking technology that all make things go smoothly,” Whitt says. Customers have access to an app that displays the current location of their shipments. And Matson continues to upgrade its technology, as well as its fleet. The company plans to announce a couple of major projects later this year, Whitt says.

Advances on the Slope On the North Slope itself, innovations are making producing oilfields safer and more efficient. Northern Solutions is an Alaska company with an Alaskan workforce; their goal is to bring tools and innovations to the oilfields and to support the onset of gas within the state, says Proprietor Candice English. While the company focuses on drilling and well support, it also has created three patented tools, with another patent expected this summer and six others pending. Northern Solutions has machine shops in www.akbizmag.com

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September 2017 | Alaska Business Monthly

both Anchorage and Deadhorse with workers who craft custom tools and parts for customers. Creating these tools is a collaborative effort between Northern Solutions and companies working in the oil fields, says Brad Frazier, who oversees the company’s workshops. “Very much the driver of that is the oil companies that we work with,” he says. “They’re looking for innovation; they’re looking for new ways of doing the old ways and trying to get that oil out of there a little bit cheaper and a little bit better.” English started the company after working in the oil and gas industry for many years, recognizing the importance of collaboration and local knowledge. “Alaska has always been in the forefront of drilling and wells in the ‘70s and ‘80s after Prudhoe was developed,” she says. “Many of our folks have been shipped overseas and done many things in oilfields all around the world. So we have a lot to lean on as far as capabilities here. We’re a small and agile company and we’re seizing that opportunity.” Most of Northern Solutions’ workers came from the larger, multinational service companies, Frazier says. They have a strong knowledge base from all around the world, which they’re now applying to the North Slope. “We’ve got a tagline, ‘Local knowledge for a global industry,’” Frazier says. “That’s really where we’re at. We bring a lot of knowledge and we have a lot of highly experienced personnel. As we transition Prudhoe from what was this big, behemoth, gold-medal production field that’s turning into more of

a brown field, a cost-conscious and aging environment, we’re looking at ways we can extract the oil in a much cheaper, safer way.” The most visible equipment on the North Slope are the drilling rigs, Frazier says. “It’s a big piece of machinery that travels around the fields up there and it costs a lot of money and it takes a lot of the environmental footprint up.” Coiled tubing drilling, an innovation Alaskans have embraced, is a smaller operation. “It’s still a large piece of machinery, but it’s a lot smaller than a regular drilling rig,” he says. “It’s used to drill wells with continuous pipe rather than jointed pipe.” Coiled tubing drilling can be used to drill reservoirs in underbalanced conditions, where the pressure in the wellbore is kept lower than the static pressure of the formation it is drilling. It allows for continuous drilling and can be combined with directional drilling to tap reserves in mature fields. It is often faster than conventional drilling techniques and requires fewer workers on the rig floor. Multiple wells can be drilled from the same pad using a directional bottom hole assembly, reducing the environmental impact. “They can deploy and un-deploy tools in the wells and try to do as much off the beaten track of the drilling rig as they can,” he says. “That’s been a driver for the majority of the technology we’ve been doing here.” Northern Solutions also creates niche tools that are designed to work in the lower reaches of an oil well once oil is being produced. “We develop, with the customer, tools and proce-

Outside view of Northern Solutions’ Anchorage manufacturing, research, and development facility. Image courtesy of Northern Solutions LLC

dures that allow them to access the reservoir in a cheaper, more efficient way,” Frazier says. “We look at how they do things right now and say ‘Okay, how can we do it differently? What can we change? Are we adding too much to the process here that adds no value and adds no safety aspects to it?’” English says Northern Solutions also receives global inquiries and has conducted peer reviews and tested tools in different countries. It is looking at opportunities to work in the Southern Hemisphere. “We’re reaching out there and sharing with others what we’ve put together in Alaska,” she says.

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Image courtesy of Northern Solutions LLC

Working hard inside Northern Solutions’ Anchorage manufacturing, research, and development facility.

Environment of Extremes The working environment in Prudhoe Bay is one of extremes, Frazier says, and Alaskans are committed to keeping the environment safe. “You go from a typical summer’s day in the Midwest where it’s 60 to 70 degrees up there to -56 [degrees] months later,” he says, noting that, “Alaska is probably the cleanest, most safety conscious, environmentallyconscious working environment I’ve ever been around… Without sounding too over the top, they embrace that they are in a very environmentally conscientious area and they accept that and they thrive in that and try to

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maintain as minimal a footprint up there as possible.” Because of that, service companies on the North Slope have limited space to store equipment. “A lot of the innovation that’s come around is from looking at the existing products that are delivered up there and looking for multiple uses for it,” Frazier says. “Trying to keep inventories at a lower level also keeps costs down and drives efficiencies up.” That’s been one of the big drivers for Northern Solutions. They look at a piece of equipment down-hole that performs one function, but if

another small piece, dubbed a “giblet,” can be added between two pieces of equipment, the first can then perform additional tasks. “That way they get more functionality out of the equipment they’ve got with just a little piece,” Frazier says. “Some of the patents we have, and some of the innovations we come out with, are driven towards trying to get as much out of the equipment up there as possible.”

Local Machining English says no one locally is able to manufacture their equipment and tool ideas to the high standards they and their clients demand,

September 2017 | Alaska Business Monthly

“They like what we provide, and they like the fact that it’s local, and it’s local people who are driving that,” Frazier says, noting the company may be the only one that manufactures its own equipment in Alaska. “We’re very conscientious about keeping everything in-state and driving the economy up here. It just makes sense: We’re an Alaska company—let’s make the equipment in Alaska.”

Image courtesy of K2 Dronotics

At a rock quarry in Eagle River, a worker looks for ground control markers set by a surveying team, which the company is able to tie to its aerial data for increased accuracy.

so Northern Solutions’ machine shops have grown with the company. “We decided it was best just to do it ourselves,” she says. Having machine shops on location in Anchorage and on the North Slope allows the company to

offer quick turnaround on product development and to manufacture equipment without having to rely on outside sources. That has allowed the shops to expand to manufacture custom materials for clients.

Arctic Drones One oilfield innovation that is providing a boom market for startups is the use of unmanned aerial vehicles, commonly called UAVs or drones, for safety inspections and surveys. BP Alaska, a leader in technological innovation, was the first company to get FAA authorization to use drones over land. The first flight was less than three years ago in November 2014. At the time, the FAA had yet to release official rules on the use of drones, so few companies were able to take full advantage of the opportunities. Brothers Ben and Nick Kellie started their company, K2 Dronotics, in late 2015, which makes them one of the first Alaska businesses in the UAV field. “It’s a pretty new commercial offering, which has a lot to do with FAA rules, which have changed quite a bit over the years,” Ben Kellie says. Both men are mechanical engineers and are FAA-certified drone operators. They are also bush pilots and have years of experience in rural Alaska, so they are very familiar with the dangers of the weather and terrain in remote locations,

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challenges that make the use of drones ideal. “We try to focus on how to save money, how to improve safety at the same time for industry in Alaska,” Kellie says. “We try to bring both of those mindsets to what we do here.” Drones are ideal for mapping large pieces of land, mineral exploration, inspections, and surveys, he says. “Specifically, what we’re trying to do is figure out what data we can get from these drones to help people make decisions,” Kellie says. For example, a company may have a bunch of telecom towers in a remote area that require people to climb them in all kinds of weather to perform inspections. “It’s expensive, it’s dangerous. It can take a long time,” he says. With a UAV equipped with a sonar sensor that ensures the vehicle stays a certain distance from the tower, K2 Dronotics is able to set up an autonomous flight path and create a high-resolution photo map of the tower. “Since we cover every inch of the tower from the comfort of the office, they can then pore over those inspection documents in the report and it’s all dated and archived and can be brought up any time,” he says. K2 Dronotics plans to attach an optical gas imager to one of its UAVs to create a gas leak detection system that can be flown over pipelines. “What’s cool about that is we can cover a lot of ground,” Kellie says. “We have to keep the UAV in line of sight currently, but we can drive along with it. The advantage of using it in the air instead of just carrying it on the ground is we can easily gather from multiple angles of the

whole pipe as we go. So if we see a potential leak, we can change angle and that would help us to knock down the false positives we could get if we were stuck on a fixed angle on the ground.” In the future, if drone operators were able to get a beyond-line-of-sight license along a protected corridor such as the trans-Alaska pipeline, they would be able to take georeference photos, use lidar to take measurements, and create a 3D map in real time that would measure such things as pipe shifts or ground changes. A drone equipped with a good camera may even be able to detect corrosion, Kellie says. “The whole idea is essentially bridging technological gaps, bridging infrastructure gaps in remote places using UAVs,” he says. In the long-term, that could mean a lot of different things, such as someday having the ability to move supplies around from camp-to-camp or community-to-community. “Right now, it means preventing people from putting themselves in potentially dangerous situations: over the sides of oil rigs, up icy towers, down inspecting bridges over rivers at breakup time. We’re trying to pull people out of those dangerous situations, which is a win for everyone,” Kellie says. “But even more than that, the data we’re bringing back is more comprehensive. So it’s a win-win.” Another company using UAVs in the commercial arena is Alaska Aerial Media, which started out about three years ago shooting aerial videos using a Go-Pro camera on a drone, says Founder Beau Bivins. As the technology progressed, Bivins and his two partners started

looking at other applications. About half of their work is aerial photography for television shows. They also conduct inspections for Alaska telecommunications companies and work with engineering firms to supplement data collection. “A lot of these groups are collecting satellite imagery or lidar imagery, and if there’s one specific area—anything from 10 acres to 500 acres to a 1,000 acres that they’re really interested in and really want a high-quality, high-resolution product of that area—that’s where we come in and provide that,” Bivins says. As the field grows, Bivins says, the company is finding there’s a shortage of qualified people that can operate the drones, so they have created their own training curriculum, called Alaska Aerial Education, which attracts people from around the country. They also work closely with students at South High School in Anchorage who may be the next generation of Alaska’s technological innovators who can help keep oil flowing from Alaska’s North Slope. Northern Solutions’ English says the company is doing its part to ensure that oil and, eventually, gas production continue. “What I worry about is our majors getting discouraged with the politics and problems that have occurred in Alaska over the past few years,” English says. “We don’t want them to go away. They’re the ones that hold to the gold standard. That should never be denied. Ever.” R Julie Stricker is a journalist living near Fairbanks.

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PHILANTHROPY

Rendering by McCool Carlson Green

McCool Carlson Green Architects rendering of the Anchorage Museum Atrium rennovation, including removing a water feature and revamping the staircase.

Anchorage Museum Expansion Looking back, building out, moving forward By Tasha Anderson

he Anchorage Museum has watched me grow up. I remember as a young child I was barely tall enough to view some of the dioramas in the Alaska exhibit, but I would stand up on my toes and plaster my face to the glass to get the best view I could of the sled dogs or tiny campfires. I was fascinated by the life-size houses full of clothing and tools, and wished I could climb inside. I stood under the canoe suspended from the ceiling and thought that if I had made a bladder from a seal, I somehow would have kept the head. I sat in front of the massive portrait of Denali and felt dwarfed. I played in the Imaginarium (before it was integrated into the Anchorage Museum as the Discovery Center), climbing on the “glacier” and swinging the giant hanging table used to draw pictures (I admit I missed the physics lesson on that one, but I enjoyed it). Time and time again, as a child, as a teenager, and as an adult, I have come to the Anchorage Museum to read and observe and learn and feel. It has been so exciting, in turn, to see the Anchorage Museum quite literally growing up and out.

The New Rasmuson Wing This month the Anchorage Museum is open98

ing its newest expansion, the 31,000-squarefoot Rasmuson Wing, which is the museum’s fourth addition since it was built in 1968. The others opened in 1975, 1986, and 2010. Anchorage Museum CEO and Director Julie Decker says the primary goal of this newest expansion was to gain as much gallery space as possible. She says, “Our last major construction project was completed in 2010, and that allowed us to add temporary gallery space for changing exhibitions, the Discovery Center, and allowed us to bring the Smithsonian Alaska collections to Anchorage, which was 600 objects. But what we didn’t gain room for was all of our core mission, which is art, history, culture, and science. There was still a lot of artwork that was in storage and not available to be on public view. The donor who provided funds for this new wing was interested in bringing as much artwork into public view as possible.” The Rasmuson Wing was made possible entirely through donations from the Rasmuson Foundation and the Rasmuson family. The new wing cost in its entirety approximately $24 million, of which about $18 million was construction costs, Decker says. Davis Constructors & Engineers, Inc. Project Manager Luke Blomfield says the project team for the new wing was 100 percent local; Davis Constructors & Engineers was the general contractor, McCool Carlson Green was the architect, and local subcontractors were used throughout the project. “All the groups

have worked together; it was an excellent partnering relationship,” Blomfield says. While an Alaska-based construction team is unique for a project of this magnitude and scale, it’s only one of many fascinating aspects of the new Rasmuson Wing and other additions and renovations that took place throughout the museum. In January 2016 ground was broken for the new wing. Blomfield says, “We had six small phases, and for each one of those there were six or so micro-phases, so we had roughly forty-two total phases to prepare the existing building before we could start construction of the new space.” He continues, “This building actually sits on top of, through, and underneath the existing museum [structure].” The first few months of construction were spent underneath the existing museum’s foundation, which was built in 1968 and would not have been able to support the weight of the addition without reinforcement. Blomfield says that the project utilized micro-pile technology; Davis Constructors & Engineers, with Cruz Construction, Inc. as subcontractor, was the first contractor in Alaska to use augered piling to support a commercial structure. Essentially, a hole is drilled with an auger; when the correct depth is reached, the hole is then filled with grout that pumps through the hollow stem of the auger. “It’s a new technology for renovation and tight spaces,” Blomfield explains. “Instead of driving traditional piles we were able

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Discover what local design and creative collaboration can build.

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While renovating the Anchorage Museum’s exterior, it was necessary to remove some of the frieze panels designed by Alaskan Artist Alex Combs; several were installed in a hallway leading from the second story gallery of the Anchorage Museum Atrium. Photo by Tasha Anderson

to complete the foundation supports with a smaller piece of equipment and less impact to museum operations.” Additionally, all of the work was conducted within the existing museum, which was still open and full of sensitive works of art. “We have 30,000 objects that we try to protect from any kind of vibration or disruption,” Decker says. “To be able to safely pile through a building and be able to stay operational and not have to move our collection was a pretty remarkable feat.” Blomfield continues, “It’s [also] a unique relationship for the new steel structure to interact with the existing concrete structure; we have an eight-inch expansion joint between the old and new buildings, creating a separation for movement between the two, seismically.” The new Rasmuson Wing also features two spaces that cantilever out over the Anchorage Museum’s property line into the right-of-way of the sidewalk, one on Sixth Avenue and the other on A Street. “It was pretty difficult to get the waiver to allow us to do this,” Blomfield says. It was necessary for the team to coordinate with the Municipality of Anchorage and the Alaska the Department of Transportation to obtain the required permits. “We worked with all parties to find out who could actually provide the approval for us to cantilever out of the sidewalk, because we now have this really cool, uninterrupted view all the way down the main corridor of downtown [Anchorage].” Decker says, “What you want to build for a museum is a beautiful rectangle on the inside, so we wanted the outside—in any way that it could—to reflect our local environment and our northern environment, but to keep the building envelope really simple and beautiful.” She continues on to say that the Anchorage Museum recognizes it is a part of Downtown and wants to be a good neighbor. “We love the idea that people can see inside,” Decker says. “I actually heard somebody say, ‘Oh, I saw you were installing furniture,’ because they were driving by the museum on the way home one day.” Another feature of the new wing visible outside the building is the new façade, which is comprised of zinc panels and yellow cedar planks from Southeast Alaska. “Instead of installing it in a traditional method of flat on the surface, we turned it on its side so you 100

have two boards that are fastened together,” Decker says. She explains that, over time, the cedar will age and turn grey. “The entire building will have a really northern feel and feel integrated, so the new wing, in a way, speaks to the glass structure next to it.” Inside, the new galleries in the Rasmuson Wing are bright, open, and refreshing with white walls, soaring ceilings (left partially open to expose some of the building’s structure), and bright floors. “Obviously as a museum we’re very interested in design,” Decker says. “In that way we could probably be a really annoying client because we care a lot about quality and aesthetics and durability and maintenance—those are all important issues to us.” She says McCool Carlson Green, Davis Constructors & Engineers, and the museum spent a year in meetings going through design iterations. “We’d feed into the design, and Davis would feed into the design, and the architects would bring iterations, and I think we found the best possible solutions to all the problems set in front of us,” Decker says. Blomfield adds there were “a lot of mockups, drawings, 3D visuals, sketches, and coordination back and forth.” The Anchorage Museum team spent time visiting other museums nationwide, looking for design features and functional ideas that would integrate well into the new wing. “You end up going to museums in very strange ways. I can’t tell you what the exhibitions were when we were doing this,” Decker laughs. Every aspect was carefully considered, from ceiling heights and coverage to lighting and even the gap at the bottom of the gallery walls that separates them from the floor. Most walls are built to meet the floor, and then some type of floorboard or molding is installed to cover the unattractive corner that’s formed. “You don’t want a floorboard [in a gallery] because then what you see is a line around your entire floor,” Decker says. Since there needs to be a gap, the question becomes how big it should be: at least big enough to clean under, but not so large as to look awkward. “We also had a discussion about whether that space needs to be black or white,” she says. Blomfield points out that there were various opinions, and mock-ups were made of 0.5-inch, 0.75-inch, and 1-inch options for everyone to consider. It speaks to the An-

chorage Museum’s devotion to the space to have invested so much time and put so much thought into in a feature that most visitors never even consciously notice. The team decided to leave parts of the ceiling in the galleries in the new wing open, exposing the building infrastructure. “There’s a huge range from highly finished [museum] spaces to spaces that leave some [infrastructure] exposed, but seeing structure and understanding the true dimensions of the space we thought was quite fun. The panels [that are installed] help with acoustics and provide a plane that’s needed for lighting, but they also hide a lot of electrical, duct work, and other stuff that needs to be up there,” Decker explains. It only makes sense that a museum would be mindful of its own history, and at various times throughout the project steps were taken to preserve as much of the museum’s history as was possible. Decker says, “We love the construction of the building and the history of the building, so you can see places where we left 1968 showing because we think part of the history of the building is part of the history of the community.” For example, when the building was constructed in 1968, forty frieze panels were installed that were designed by Alaskan artist Alex Combs. It was necessary to remove some of them during the expansion, but “we really wanted to preserve those because again, it’s part of the building’s history and there’s a fondness of people, a nostalgia about what was here before,” she says. On Sixth Avenue, many of the friezes remain and can be seen along the museum’s roof line. Of those that were taken down, some were salvaged to be used elsewhere in the museum and others are being stored and can be made available “to find new life somewhere else in the city or state,” Blomfield says.

Beyond the New Wing The Rasmuson Wing foundation actually allowed for a little more space in the Discovery Center located on the first floor. More significant than the new space, however, it allowed for the installation of floor-to-ceiling windows, which now allow natural light into a space that previously had none. Decker says, “Some parents spend half their day there, so we want it to be a good environment.” Beyond the northeast expansion, many other parts of the Anchorage Museum were renovated, including the A Street patio, the Atrium,

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and what was formerly the Alaska Gallery. In the Atrium, the staircase was revamped but not replaced. Blomfield says, “We went through a lot of design iterations to find and maximize the use of that Atrium space within the budget constraints that we had. At the last closeout phase of the design, we went back and looked at one of our original plans and said: we would like to keep the staircase and maximize its potential as is and just upgrade the finishes.” This shift in design freed up funds that were used to upgrade floors, relocate the entry to the auditorium, upgrade the café kiosk, open up the corners of the Atrium to improve visibility, refresh the wall finishes, and create even more exhibit space on the second floor gallery by installing shadow boxes. A few of the outdoor friezes were installed in a second-floor hallway leading off the Atrium. A significant change within the Atrium was moving the entrance to the Alaska Exhibition. Originally the entrance followed a hallway from the second floor of the Atrium, but now it’s directly off the main space. “Everybody needed directions to get there, so one of our goals was to create these much brighter and more obvious openings and to take out the [wood fixtures originally installed in the corners] in the atrium so you could easily look up and look around and be able to navigate your way around,” says Decker. Blomfield says that the old hallway was converted into a storage room when the new entrance was built. “This is actually a 14-inch concrete wall that we had to shore up and cut out.

Rendering of the newly renovated A Street Patio, which will now feature Ice Walls by Athena Tacha, previously located in the Atrium. Rendering by McCool Carlson Green

The process of just removing the concrete was a crew of four to five people and three weeks of nonstop cutting and concrete block removal.” To address safety concerns, the Atrium water feature was removed, but the sculpture (Ice Walls by Athena Tacha, part of the Municipality’s 1% for Art Program) that had been centered within the water feature was moved to the A Street Patio. The Atrium, Decker says, is “not just central space to the museum, but it is central space for the community. It’s a rare night when there’s not some sort of community event going on in the space. We wanted to maximize the square footage that’s available to the community for big public events and make it a safer space.” The Anchorage Museum is excited to share all of the expansion and renovations with the community. It’s hosting several Grand Opening

activities on September 15, 16, and 17. Activities include the unveiling of the Cruisin’ the Fossil Coastline exhibit by Alaska Artist Ray Troll and Paleontologist Kirk Johnson, director of the Smithsonian National Museum of Natural History (Troll and Johnson will be on site for the opening); Craig Colorusso Sun Boxes will be installed on the museum’s front lawn (Colorusso will also be on site for the opening) and the Sun Boxes will remain through Design Weekend, which is September 22-24; and the opening of the John Mireles Neighbors portrait installation, which will be displayed in the Northern Narratives East Gallery as well as outside the museum and in communities across the city. R Tasha Anderson is the Associate Editor for Alaska Business.

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101

SMALL BUSINESS

Alaska’s Increasing Fitness Options New ideas and new facilities available statewide

By Tasha Anderson

ccording to the President’s Council on Fitness, Sports & Nutrition data (which operates under the US Department of Health & Human Services), more than 80 percent of adults do not currently meet recommended guidelines for both aerobic and muscle-strengthening activities. Less than 5 percent of adults participate in 30 minutes of activity every day and only one in three adults meet weekly physical activity guidelines. In better news, Alaska is one of three states (the other two are Vermont and Hawaii) in which adults are most likely to report exercising three or more days a week for at least 30 minutes; in Alaska about 60 percent of adults report this level of activity, according to the President’s Council on Fitness, Sports & Nutrition. Alaska is bursting at the seams with opportunities for outdoor recreation, and the options for indoor exercise and activities are steadily increasing. With this incredible range of options, Alaskans of every fitness level can find multiple activities suited to their personal preferences.

Our Many Fitness Options Orangetheory Fitness, a personal training, interval fitness franchise, opened its first branch in Alaska in March of this year. According to the company, “Orangetheory Fitness is a 60-minute workout broken into intervals of cardiovascular and strength training… The physiology behind the Orangetheory Fitness workout involves heart rate monitored training designed to keep the heart rate in a target zone that stimulates metabolism and increases energy.” Planet Fitness opened its first branch in Alaska in 2007 in Anchorage and has since expanded greatly. The fitness center offers a variety of equipment, but much of their focus is on ensuring a productive, welcoming exercise and fitness culture. “Everyone should feel at ease in our gyms, no matter what his or her workout goals are. And everyone should have access to lots of nice new equipment and feel comfortable asking for help,” the company says. Another growing trend in the state is trampoline parks. Alaska has seen the introduction of trampoline parks in the last few years that include Get Air and Shockwave, both of which are national franchises. In addition to trampolines, both parks sport dodgeball, foam pits, and ninja courses. Get Air also features a slack line and slam ball, and Shockwave has a climbing wall and 3D laser maze. Three other locations in Alaska host ninja training equipment (as made popular by the show American Ninja Warrior), including scaling walls, cargo nets, salmon ladders, ropes, 102

“They’re the people whose sole responsibility is to create the experience. They’re kind of like the cook in the kitchen: they’re behind the scenes but ultimately the quality of the meal is up to them. Routes have anywhere from a one-month to six-week turnover time. So the gym is constantly being evolved.”

—Eric Wickenheiser Operations Manager, Alaska Rock Gym

rings, tires, warped walls, spider climbs, and more. Ninja training courses can be found at Crossfit Alaska & Revolution Sports Training in Anchorage, Kronos Titan Ninja Training in Sitka, and Pacific Rim Athletics in Eagle River. In addition, there are numerous yoga studios; rock gyms; centers for self-defense and martial arts training such as Krav Maga and Jiu-Jitsu.

Established Gym, New Facility August 2017 marks the one-year anniversary of Alaska Rock Gym’s new facility, which the company (operating in Alaska for twenty-two years) built from the ground up to suit their needs. Alaska Rock Gym Operations Manager Eric Wickenheiser says the new building, located at 665 East 33rd Avenue in Anchorage, was designed by the ownership team, which is primarily comprised of local Alaskan rock climbing enthusiasts. “They toured other facilities in the Lower 48 to get some ideas and learn from other people’s mistakes and to make sure they did it right,” Wickenheiser says. Criterion General, Inc. was the general contractor for the 24,000-square-foot facility, which Wickenheiser says boasts nearly 19,000 square feet of climbing surface. In addition to gaining much needed space, the new facility also features an enclosed yoga studio and weight/exercise room. Wickenheiser says local response to the gym has been phenomenal and that industry-wide rock gyms are finding success. “The sport’s had an increase in popularity, and people are realizing how fun, holistic, and positive it is. The business model is not just about being a climbing gym anymore. It used to be very much for climbers and now it’s yoga, fitness, the whole package, he says. Alaska Rock Gym’s walls stretch 43 feet into the air and feature a variety of climbing routes with a range of difficulty. Wickenheiser says the gym uses the Yosemite Decimal System, which is a three-part system used for rating the difficulty of walks, hikes, and climbs. It is primarily used by climbers in the US and Canada. In that system, a 5 indicates a technical climb, meaning it requires a rope. “Within that there’s 5.1, which is kind of a gray area on the lower end of the spectrum: I’ve been on 5.0 or 5.1 that you can literally walk up. On the other end, the hardest climb in the world right now is 5.15C.” Alaska Rock Gym’s easiest route is a 5.6 and their most difficult is 5.13, “which is

pretty hard. I don’t climb 5.13—it’s a lifetime achievement if someone is a 5.13 climber,” Wickenheiser explains. There are three factors in rock climbing that determine difficulty: the angle of the wall, the shape of the holds, and the physical difficulty of the move (the space between holds, which muscle groups are being engaged, etc.). What’s exciting for Alaska Rock Gym climbers is that the routes are not set; holds of different shapes and sizes can be placed in holes that span the climbing walls, allowing the gym to create endless route variations, determined by route setters. “They’re the people whose sole responsibility is to create the experience. They’re kind of like the cook in the kitchen: they’re behind the scenes but ultimately the quality of the meal is up to them,” Wickenheiser says. Routes are marked by color, but that’s simply to aid the climbers in following the route and is not related to difficulty. “Routes have anywhere from a one-month to six-week turnover time,” Wickenheiser says. “So the gym is constantly being evolved.” Building these walls is actually how Wickenheiser found his way to Alaska and the Alaska Rock Gym: “I worked for the company Entre Prises [which designs and installs climbing walls], traveling around building climbing gyms. I came up and did this job and in the process applied for the operations manager position. The build was March 1 through May into early June, and by July 1, I was an Alaska Rock Gym employee and had moved to Alaska.” The check-in desk, exercise room, and yoga studio are all located on the gym’s first floor; the second floor is open on two sides, allowing those at the gym to view people climbing on the rock walls from a higher vantage point, and features the Alaska’s Rock Gym’s bouldering area. Bouldering involves climbing shorter surfaces (the tallest at the Alaska Rock Gym tops out at twelve feet) without ropes. “Bouldering is becoming more popular of a discipline right now in climbing,” Wickenheiser says. “It’s more social, it’s more instant gratification—it’s kind of the sprinting versus the marathon. Routes tend to be harder and more complex because you have to hold on for a shorter period of time and climbers can push themselves.” Because there are no ropes, all of the bouldering walls are grounded by 1.5-foot thick mats, which can

Alaska Business Monthly | September 2017 www.akbizmag.com

help prevent harm in the case of a fall but are not a total guarantee of safety. Alaska Rock Gym is well aware of the risks of climbing and takes steps to mitigate those risks as much as possible. All new members are given an orientation of the gym and can receive instruction on climbing, appropriate climbing techniques and behavior, and even methods of falling that will reduce the likelihood of injury. The gym rents out all the equipment necessary for beginners to get hands and feet on the wall, and Wickenheiser says the gym welcomes climbers of all ages and ability. “This is a lifetime sport and we have climbers from four- to eighty-five-years-old in here. It’s more akin to yoga or almost dance in the sense that it’s a mind-body experience.” He continues, “The beauty of climbing is you’re always really only competing against yourself. Whatever grade or difficulty level you’re working at and butting up against, the best climber in the world is having that exact same experience somewhere else on the spectrum. It’s a great equalizer; everyone understands that no matter where you are on that scale, you’re all getting your butt kicked somehow.”

Renovation and Reinvention In March the Alaska Club held a grand opening of its reinvented Studio at the Alaska Club, located at 3841 West Dimond Boulevard in Anchorage. Studio was previously referred to as the Jewel Lake branch and featured various aerobic and strength-building equipment, as well as free weights and tanning facilities. With the $650,000 redesign, the entire space was reimagined and additional space was added. Alaska Club President and CEO Robert Brewster says, “We’re in a constant state of remodeling facilities on a rotating basis and we had been looking at this facility, but we also saw that the industry has changed somewhat and we need to address new forms of exercise that are coming on the market and ways in which people want to access their exercise.” Aside from refreshing floors, walls, and other aesthetics of the interior, Studio now offers a functional training area, new freeweight equipment, an upgraded full-body strength training circuit, new cardiovascular equipment, and a brand new, 1,600-sqarefoot hot yoga studio. Brewster explains, “We found that boutique use has become more prevalent in the health and fitness space. So what we’ve done here is create a hybrid where our members can continue to use the fitness facility (which is important as a satellite from our larger facilities) but also separately access a boutique experience.” Alaska Club guests can continue to utilize the space as they have for years if they’d like, but now they can also conveniently investigate other fitness options, such as functional fitness. Carmen Jacobson, associate network personal training manager for the Alaska Club, explains: “Functional fitness just means movements that you would do in your everyday life. They’re going to help you with taking the groceries into the house, putting things www.akbizmag.com

up on the shelves, squatting down and getting up—just very basic movements that people have to do throughout their lives every day.” Functional fitness uses equipment such as kettle bells, stability balls, medicine balls, sand bags, boxes, and other common items. “It’s very easy for anyone to transition into,” says Jacobson. “It’s movements that people are used to doing every day: hinging motions with the waist and the knees, pressing, pulling.” Functional training can be a particularly good fit for those with injuries because all of the movements and motions can be modified, she says. Through a new locker area and up a new set of stairs, fitness enthusiasts can find the brand new hot yoga studio. The Alaska Club worked with the building owner to take over this additional space that can fit up to sixty or seventy students. Hot yoga is exactly what it sounds like: yoga performed in a heated room, at temperatures ranging anywhere from 90 to 105 degrees Fahrenheit. Janet Warner, Alaska Club executive director of group fitness, says the hourlong sessions offered at the hot yoga studio are designed to accommodate participants of all skill levels, including a foundations class specifically geared to those who have never participated in a yoga experience before. Heating the room has many benefits, Warner says. “At that temperature, your muscles are much more warm and therefore pliable, so you can move more easily and the joints move more easily as well, so that you find that you’ll get deeper into the poses.” The Alaska Club

also built humidity controls into the studio: “We’re going to be able to go from 10 percent humidity to 40 percent humidity, and along with that heat, it’s going to feel really good on your skin and muscles and everything.” Warner says that it may take some hot yoga participants a bit of time to acclimate to the hot and humid studio, “but I think for the majority of people it’s going to be such a neat experience, and that that hour is going to move really quickly.” She continues, “One of our goals is that [attendees] focus on how the yoga feels for them—not how they think it should look, not how their neighbor is looking—but how is it feeling for me and am I getting it the way it’s being described.” The Alaska Club is constantly upgrading and revisiting their facilities to ensure their members have access to the equipment, classes, and training they want, says Brewster. “What we’re really looking to offer here [at Studio] is a unique yoga experience that provides people with a boutique feel within the context of a normal health and fitness club. We’re hoping this will be a vehicle for people to both take advantage of hot yoga and of the wonderful community that comes with being part of the boutique, while at the same time using and having access to other modalities of exercise that they wouldn’t normally have access to in a boutique setting.” R Tasha Anderson is the Associate Editor for Alaska Business.

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TOURISM

Visiting Hughes New group offers ecoimmersion tours of traditional Athabascan culture By Kathryn Mackenzie

he first thing I notice about the Koyukuk River region from my perch in the cockpit of the tiny bush plane transporting a handful of villagers, visitors, and supplies to the Koyukon Athabascan village of Hughes are the magnificent splashes of bright magenta covering the mountains. Fireweed, true to its name, has completely overtaken the burned remains of hundreds of thousands of forestland left behind after massive fires raged on both sides of the Koyukuk River in 2015. Once we’ve made our requisite stops along the way from Fairbanks, we finally arrive at Hughes, some 210 air miles and three hours northwest from where we began at the Wright Airport. We step off the plane onto the dirt runway with our host for weekend, Edwin Bifelt (picked up from the neighboring village of Huslia), who has deep ties to Hughes where nearly everyone is related in one way or another. Bifelt’s business, Zane Hills Capital, contracted with the Hughes Village Council to create a business plan for a “proposed tourism operation,” says Bifelt. “This was the starting point for Koyukuk River Tribal Tours [KRTT]. A challenge we are currently experiencing is sales and booking clients. We believe if we are able to partner with travel agencies and other industry participants, the tour can become sustainable in the long term.” KRTT (krttalaska.com) guests choose from either a three- or six-day immersive, guided river and camping tour designed to introduce visitors to the Koyukon Athabascan way of life through exploration, storytelling, and time spent with locals.

Day One: It’s hot in July in Hughes; this particular Thursday afternoon the temperature is a sweltering 86 degrees, making the sparkling river just to the left of the runway particularly inviting. Located below a five-hundred-foot bluff on the south bank of the Koyukuk River, the Koyukon Athabascans have lived here for thousands of years, moving camps up and 104

“This [tour] is something we’ve talked about for a long time and now it’s no longer talk. It’s real. Today we welcome the first of what we hope will be many tour groups to come.”

—Wilmer Beetus, First Chief, Hughes

down river, following the food: fish, moose, and other wild game. Once we’ve deplaned, we stow our backpacks in the tribal offices and take a walking tour of the roughly three-square-mile village, founded about one hundred years ago along the clean, clear Koyukuk River. Hughes, home to less than one hundred people, is only accessible by air and water. As we make our way from the river up toward the village center, people zoom past us on ATVs, smiling and waving. Children approach us shyly, introduce themselves, and quickly scatter away, back to the playground near the Johnny Oldman School.

Our little group of three visitors plus Bifelt head to the community center, an octagonal building in which the community gathers to socialize, celebrate, perform traditional ceremonies, and conduct business. This day, village First Chief Wilmer Beetus is here along with about a dozen community members and Elders who have gathered to welcome us with a homemade lunch of spaghetti and meatballs, sandwiches with fresh lettuce and tomatoes, chips, and juice; all highly-valued commodities in this subsistence-based community. After we hungrily fill our plates and take our seats at one of the

Alaska Business Monthly | September 2017 www.akbizmag.com

The Koyukuk River with fireweed-laden mountains in the background near Hughes. Photo by Kathryn Mackenzie

long, plastic tables, Beetus stands to speak. “This [tour] is something we’ve talked about for a long time and now it’s no longer talk. It’s real. Today we welcome the first of what we hope will be many tour groups to come,” says Beetus, who explains this is a gigantic step for the village that intends to offer tours nearly year round as a way to grow the local economy, offer employment to community members, reduce community reliance on federal funds, and familiarize outsiders with the Athabascan way of life. After we meet with several members of the Hughes Village Council, Bifelt asks if we’re ready to head downriver to the Bill and Madeline Williams Fish Camp, where we’ll spend our first night. Before we even have time to offer to help load supplies, a group of villagers have tucked our packs away, set up our chairs, and helped load us onto the boat. Our boat pilot and all-around gracious host, Bob Beetus—a longtime Slope worker, hunter, and outdoorsman who is looking to retire www.akbizmag.com

in Hughes soon—has just finished checking in on his mother, the oldest woman on the Koyukuk River at ninety-four years, and is now ready to shuttle us down the river. “I love it here. My dream is to just live at the fish camp. It’s so quiet and peaceful. I’m happiest here,” he says. It’s not hard to see why. The view from the boat is spectacular. From the moment we pull away from the village shores the heat dissipates, and it becomes clear that the river is more than just a body of water to the villagers who live along its beaches. It’s a source of clean drinking water, its shores are home to summer camps, and it serves as a basis for the village’s subsistence hunting and fishing activities. During the roughly hour-long boat trip, Beetus points out favorite fishing spots and beaches where bears have recently been spotted. About halfway to our destination, we pull alongside a trickling stream from which we fill our water bottles with icy, crisp, sweet water that begins at a glacier up the moun-

tain and is filtered over miles of rocks until it reaches the river (and our water bottles). After we’re thoroughly satiated, we head back out on the river toward the fish camp, the roaring of our motor boat the only sound breaking the quiet on the lazy Koyukuk River. Upon reaching our destination, we are again greeted warmly by a group of Hughes’ elders, their children, and grandchildren. With the boat turned off, a calm settles around us. The cool breeze coming off the river combined with the twittering of birds and the soft murmur of our hosts discussing dinner lulls us to a semi-conscious state, reminding each of us that we have been up since 3 a.m. The fish camp is set up and stocked so generations of families can spend the long summer days fishing, picking berries, and telling stories. “We open it back up once it starts to get warm and we set up camp for the summer. I don’t go back to the village unless I have to,” says Madeline Williams, the camp matriarch. “I teach the children,

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It takes locals just seconds to cut the catch of the day before hanging it to dry. Photo by Kathryn Mackenzie

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Alaska Business Monthly | September 2017 www.akbizmag.com

we tell stories about our past, we fish, we enjoy our time here together.” The Bill and Madeline Williams fish camp sits about twenty feet above the river. It is made up of permanent and semi-permanent structures for cooking, eating, sleeping, and gathering around the fire-pit. “Grandma” Madeline Williams and her late husband (Grandpa Bill Williams, who passed away this past spring) have fished and camped for decades with their children and grandchildren at this camp. Grandma Madeline still holds court at the fish camp, anchored by an open-air wood structure that serves as the kitchen, complete with a stove, large picnic table that could seat twelve, and shelves filled with cooking utensils and food supplies. As we wonder at the view, Bifelt and Beetus set up our tents and Thelma Nicholia, city administrator for Hughes (also a KRTT board member) and family members prepare our first dinner of the trip: barbecued ribs and macaroni and cheese. Since this is the first “test” tour, the permanent , canvas structures the locals use to sleep in aren’t set up for visitors yet, but soon every tour guest will sleep in a structure that is built off the ground, furnished with cots and soft, cozy sleeping bags, and plenty of mosquito netting. For this trip, each of us sleeps in our own tent, with our own sleeping bags, on a pad provided by the village. After dinner and a little small talk, we drag ourselves to our tents to retire for the evening—typical for an Alaska summer, the sun is still high in the sky and the heat is intense. But it doesn’t matter; within minutes, the day has taken its toll and we’re snoozing deeply.

Day Two: We wake to fresh, cool air and the smell of pancakes on the griddle. Hot coffee hits the spot and we sit around the fire talking about our plans for the day. We’re going to visit the fishing nets placed downstream to see if they netted any chum salmon (lately the river has mostly been producing chum salmon instead of King salmon because of the warm water). Before we leave for the day, we get to spend some time listening to Grandma Madeline tell us tales of the many, many summers she’s spent at this camp with her children, her grandchildren, and dozens of youth from villages surrounding Hughes who visit the summer camp to continue their cultural education by participating in traditional activities such as cutting and hanging fish, Athabascan sewing and beading, and using traditional tools. They are also regaled with stories passed down from generation to generation to help preserve the tribe’s traditional values. After breakfast—during which Bifelt and Grandma Madeline tell us they saw a mother bear and two cubs across the river while we slept comfortably in our tents—we situate ourselves in the boat and head off to check the fishing nets with Beetus and Hugh Bifelt. It’s a happy day when the group pulls out several large chum salmon. As they collect their haul, we wander the beaches, spotting evidence of moose, bear, and wolves in the form of footprints in the mud. Beetus tells us how the evening before he saw a moose swimming across the river to get to this very beach. www.akbizmag.com

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Photo by Kathryn Mackenzie

Fields upon fields of fireweed surround Hughes, springing up after a series of devastating fires in 2015.

“There must be some good food around here,” he says, pointing to giant moose and bear tracks, nearly side-by-side. “They know this is where the fish are,” he says. After collecting the chum, we head back to the fish camp to watch the men cut the fish. Within minutes they are gutted, sliced, and hung from wood structures where they spin in the wind, drying in the summer sun. The fish will serve as food for Beetus’ sled dog team, which are about to be brought to the fish camp for the summer. When winter hits, KRTT tour groups will have the opportunity to enjoy sled dog excursions helmed by Beetus. After more time at the fish camp, our small group heads back to the village to spend some time relaxing and exploring. We visit the school, the tribal offices, the local store, and several homes of Bifelt’s and Beetus’ family members. It’s a true immersion experience and a must-do for vacationers who are interested in learning what daily life in rural Alaska is really like. Late in the afternoon we pile into the town’s shared pick-up truck and follow Beetus and his ATV up the steep mountain behind the village to wander through the fireweed while enjoying 360-degree views of the entire Koyukuk Valley. It’s a breathtaking experience that starts at the foot of the mountain and continues for miles as we slowly drive up the mountainside, Bifelt and Beetus patiently stopping every few minutes so we can take 108

even more photos of the natural beauty surrounding us. We stop at a plateau with a viewing bench placed at the ideal spot to see the entire region for miles around. Though we stop here, the road we take eventually ends up at an old mine that KRTT hopes to eventually make part of the tour package. “Once we get this road open all the way back to the mine, we can tour the mine site and even pan for gold,” says Beetus. “We know there is still gold back there, so we think that would be a really fun addition to the tours.” After a couple of hours of touring the Indian Mountain region, we head back to the village for some lunch and a little R&R. Later that evening we head upriver to view the Hughes Culture Camp, 12 Mile Camp: Grandpa Joe’s Country, and Alfred Attla’s Camp. The river is smooth and calm, making for a lovely evening ride. Every few miles we stop to explore another fish camp, learning more about how the Athabascans have lived along these shores for centuries. After another delectable dinner prepared by our gracious hosts and presented in the community hall in town, we retire for our last evening, exhausted from another day of exploring, learning, and just enjoying our time with our hosts.

more than skim the cultural surface of rural Alaska. In the two-and-a-half days we spent in and around Hughes, we learned how the Koyukon Athabascan tribal members have sustained their lifestyle in some of the most extreme conditions in Alaska’s Far North and Interior regions. We learned about the local wildlife, the traditions that are being passed on to each generation, and what role each member plays in this tiny, yet vibrant, community. Though our tour was in the summer, KRTT offers winter tours that include snowmachine and dog sled rides, aurora viewing, and other winter activities in Hughes, where winter temperatures regularly drop far below freezing. The summertime KRTT tour certainly hit the spot—fun in the sun, gorgeous water, new friends, and cultural education. And though it seemed as if we packed a lot into a short amount of time, our hosts’ laid back demeanor left me feeling refreshed. As we say our goodbyes, I take a second to look back at the village and see everyone is already back to business as usual: children are playing, residents are zooming around on ATVs, and chum salmon are still twisting in the wind. I can see why the first Athabascans settled this land so many years ago; it’s a little slice of paradise. R

Saying Good-Bye… For Now The authentic KRTT trip is the ideal vacation choice for anyone who wants to do

Kathryn Mackenzie is Managing Editor for Alaska Business.

Alaska Business Monthly | September 2017 www.akbizmag.com

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ALASKA’S TRAILS

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Fall Hiking T

he fireweed has topped out and another one of Alaska’s notorious summers is winding down. The majority of our seasonal guests will have returned home by mid-month, and Friday, September 22 marks the fall equinox. For those who want to take advantage of every sun-filled, non-iced autumn day, there are trails statewide that provide stunning views of Alaska’s beautiful fall foliage.

Mat-Su The Matanuska-Susitna Borough has an online resource of trails in the Valley (matsugov.us/trails) which can be filtered by trail type or season. Many of the trails feature a link to the trail’s website, if it has one, or a trail brochure PDF with a map, photos, and detailed information. The Borough announced that one of the Valley’s popular trails, West Butte, which is open yearround, has a brand new seventy-space parking lot. West Butte’s trailhead is at Mothershead Lane in Butte; it’s rated as easy-to-moderate, is 1.5 miles long, and hikers gain 880 feet in elevation from start to finish. According to the brochure, “If there’s one hike you want to take visitors, this is it. It’s a short hike, but gets your heart in the attic fast. The brief

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work has lasting rewards: an epic view—Knik Glacier, the face of 6,398-foot Pioneer Peak, and farms of the Valley floor. Turn to the northwest and take in the Talkeetna Mountains. Turn southwest and see the silhouette of Sleeping Lady or Mount Susitna.” Also in the Mat-Su, the Alcantra Park Trail and Disc Golf Course is a paved, 1.6-mile trail that starts at the Alcantra baseball field. The trail forms two loops, is mostly flat, and features trees and baskets for Frisbee golf throughout the forest. The Palmer-Moose Creek Railroad Trail begins at Eagle Avenue in Palmer and follows an old railroad bed along the Matanuska River between Palmer and Moose Creek. It’s open year-round and is a non-motorized trail stretching 6.1 miles. This trail is mostly level, but footing can be unsure after rain, when rocks may tumble down the embankment.

Homer The City of Homer also has an online resource for its 5.41 miles of city-maintained trails (cityofhomer-ak.gov/recreation/trails) that features a map of Homer with its trails clearly marked. The Homer Spit Trail is 4 miles and paved, running along the east side of the Homer spit. It can be

By Tasha Anderson

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accessed year-round by walkers, runners, bikers, and skaters. Reber is a short trail, just 0.38 miles, that runs from the west end of Fairview Avenue to the end of Reber Road, but several switch-backs through fireweed meadows provide amazing views of Kachemak Bay. In addition to the city trails, one of the most popular hikes in Homer is the Homestead Trail, which has several access points: 1 mile north of Homer off the Sterling Highway, at Rucksack Drive off Diamond Ridge Road, or at Bridge Creek Reservoir. Homestead Trail is approximately 6.7 miles long and is moderately difficult, leading hikers through forest, across meadows, and over streams.

Valdez Valdez Alaska provides information on local trails including several maps online (valdezalaska.org/ discover-valdez-maps-trails), including a city map and a map of the surrounding area. The seven trails the site lists all link to pages with maps and detailed trail information. The 3.8-mile (roundtrip) John Hunter Memorial Trail, formerly the Solomon Gulch Trail, intersects with the TAPS road and continues on to Solomon Gulch. This trail grants access to a bit of Valdez history, as, according to the site, “During 1915 an aerial tramway, 5.25 miles long, was put into operation and ran from the beach, up Solomon Gulch, to the Midas Mine (Jumbo claim). More than [1 million] pounds of copper were produced before closing down in 1919. The tram was

Alaska Business Monthly | September 2017 www.akbizmag.com

Anchorage The Municipality of Anchorage maintains numerous trails within the city as well as in Eagle River, Girdwood, and other small municipality communities, with information about them easily accessed online (muni.org/maps/Pages/MuniTrailsMaps.aspx) including maps, trail lengths, and levels of difficulty. The Campbell Creek Trail runs 7 miles from Tudor Road to Dimond Boulevard, following Campbell Creek for most of its length. There are information sites along the trail providing information on local flora and fauna, and the trail itself boasts opportunities for recreation, fishing, and salmon viewing. Kincaid Park, located in South Anchorage, is crisscrossed with trails for multiple uses, including horse riding, cross-country skiing, hiking, or

mountain biking. Many of the trails are specifically maintained for certain activities (such as mountain biking), but walkers/hikers can, with caution, take advantage of any of them. The Tony Knowles Coastal Trail follows the coast of Cook Inlet from Kincaid Park to Downtown Anchorage. The Muni’s website provides a list of Girdwood summer trails, such as the 0.75 mile California Creek Trail which traverses an old growth forest; the Upper Virgin Creek Trail, which leads to views of Virgin Creek Falls (0.2 miles); and the 9-mile Upper Winner Creek Trail, which is a less developed but beautiful Forest Service Trail over Berry Pass that ends at Rosehip Creek.

Fairbanks The Fairbanks North Star Borough issues the Trails Challenge annually, inviting locals and visitors alike to explore the area’s many trails. The challenge ends September 20, and hikers can explore the ten challenge trails independently or join weekly trail walks. Some of the trails highlighted in 2017 include Blue Loop at the Birch Hill Recreation Area, River Loop Trail at the Chena Lake Recreation Area, Secret Trail at Skyline Ridge Park, and the Equinox Marathon Trail at Ester Dome Rode. While the challenge invites hikers to travel roughly the first mile of the trail, many are much longer. Alaska.org Of course many of Alaska’s trails are outside of its population centers, and one of the best resources available when looking for trail options is Alaska.

org, which offers information for the independent Alaska traveler. The Alaska Parks & Hiking Trails page (alaska.org/things-to-do/parks-and-trails) lists hundreds of hiking, walking, and recreating options. Alaska.org offers information on accessing the trails, trail length, and difficulty, as well as often providing maps and photographs. For example, Sadie Lake Trail is located on Sadie Lake on Baranof Island and is described by Alaska. org as “muddy, steep, and wet,” but is a good place to see bears. Worthington Glacier State Recreation site is 113 acres and is located at Mile 28.7 on the Richardson Highway and offers views of Worthington Glacier— or hikers can take a short walk up to the glacier, close enough to touch the ice. Coalition Loop Trail is a moderately difficult hike about 5.5 miles long in Kachemak Bay State Park that climbs up 400 feet. Coalition Loop Trail is accessible by boat during high tide via the China Poot Bay trailhead. Those looking for a hike option on Alaska.org can filter their results by destination, type, difficulty, distance, elevation gain, or trail type. No matter one’s level of skill or physical ability, there are dozens upon dozens of trails available throughout the state and resources through many cities and organizations to help track them down. The crisp air and fall foliage make September and October the perfect time to step outside, take a deep breath, and appreciate all the Alaska autumn has to offer. R

Barrow

Kotzebue Fairbanks

Nome

Delta Junction

Mat-Su Anchorage Valdez Soldotna

Bethel Dillingham

Juneau Sitka

Kodiak Ketchikan Unalaska/Dutch Harbor

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ALASKA’S TRAILS

run by current that was furnished by the then local electric plant on Solomon Gulch. The present dam and power station were finished in 1982 and supply power to the Valdez and Glennallen areas during the summer months.” Mineral Creek Valley offers both a scenic drive and a charming hike. Guests travel 5.5 miles down Mineral Creek Drive before reaching a gate and parking area, where the Mineral Creek Trailhead is accessed. The trail forks about halfway up; the right fork leads to Wood Creek Waterfall and the McIntosh Roadhouse Ruins, while the left fork continues up the valley, eventually reaching the W.L. Smith Stamp Mill, which was built in 1913 and used in conjunction with the Mountain King Mine. The Mineral Creek Trail is approximately 1.75 miles round-trip.

EVENTS CALENDAR SEPTEMBER 2017

EAT

SHOP

Anchorage

PLAY 

wargaming, tournament play, and painting, this year at the Egan Civic and Convention Center. Battle Zone Ursa’s goal is to provide the community a space and location to come together and meet and play against new people while growing their gaming community both locally and nationally. battlezoneursa.com SEPT

Great Alaska

Show 16-17 Quilt Join the Anchorage SEPT

50th Annual Champagne Pops

9 Raise your glasses in celebration of two remarkable milestones: fifty years of Champagne Pops and the 100th birthday of “The First Lady of Song”, Ella Fitzgerald. This black tie event takes place at the Atwood Concert Hall at the Alaska Center for the Performing Arts. anchoragesymphony.org Anchorage SEPT

Battle Zone Ursa

Zone Ursa is the first 16-17 Battle of its kind, a nonprofit, by players for players tabletop miniature convention in Alaska, focused on multiple aspects of miniature

Log Cabin Quilters for the Great Alaska Quilt Show. Large bed-sized, traditional, modern, appliqué, machine, and hand quilted quilts, as well as wearable quilt garments made by members, will be displayed in the ConocoPhillips Atrium. anchoragelogcabinquilters.blogspot.com SEPT

Alaska Women’s Show

celebrate everything 22-24 Vendors that makes Alaska women unique. The show features financial seminars, fashion shows, jewelry, healthcare information, and more, all at the Sullivan Arena. auroraproductions. net/women.html SEPT-OCT

Senshi Con

Senshi Con is an annual convention that caters to enthusiasts of Asian culture, animation, graphic novels, and gaming. It is Alaska’s largest event to share fandoms, make new friends, and enjoy a nearly

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endless array of costumes, live events, panels, and contests. Attendees are also invited to shop favorite artists and vendors, this year at the Dena’ina Civic & Convention Center. senshicon.org

Fairbanks SEPT

Hospital Foundation Hospice program. Artists scheduled to perform include Seamus Egan, The ALT, The Barefoot Movement, Kieran Jordan, and Troy MacGillivray, all at the Davis Concert Hall. fairbankshospitalfoundation.com SEPT

Far North Fiddle Fest Benefit Concert

7-10 This is a fundraising event for The Greater Fairbanks Community Hospital Foundation. All proceeds from the concert will be donated to the Greater Fairbanks Community

STAY

Potato Festival

Local chefs prepare a magnificent, six-course meal featuring locally grown potatoes, a different variety in every dish. The Potato Festival takes place at the Festival Fairbanks Office. festivalfairbanks.org

Anchorage SEPT

Hope Gala Masquerade Ball

Join the Downtown Soup Kitchen Hope Center and the Dan Mac Big Band for a Hope Gala Masquerade Ball. Enjoy a night of live music, dancing, and food prepared by Feed Me Hope Culinary School and Bakery—Downtown Soup Kitchen Hope Center’s vocational training program that provides homeless and formerly incarcerated individuals the opportunity to gain experience and education in culinary arts and bakery techniques. All proceeds from ticket sales and donations support the Downtown Soup Kitchen Hope Center. downtownhopecenter.org

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SEPT

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Mountain Bike Festival

Three days of bikingthemed competitions including whips and tricks, wheelie comp, downhill race, and the popular Pond Crossing, where competitors attempt to cross a floating bridge without falling into the cold water. alyeskaresort.com

Juneau

Girdwood SEPT

Alyeska Climbathon

The Alyeska Climbathon is an endurance event where participants will walk, hike, and run up the steep North Face Trail of Mount Alyeska and ride the Tram down as many times as possible between 9 a.m. and 7 p.m. This event is a fundraiser for women’s cancer. alyeskaresort.com

SEPT

Oktoberfest at Alyeska Resort

22-23 Celebrate German traditions, & 29-30 the changing of the seasons,

and, of course, beer. This event spans over two weekends and features authentic Bavarian fare and festivities including full polka band and other live performances. Open to all ages and free admission at Alyeska Resort. alyeskaresort.com

SEPT

Tináa Art Auction

Sealaska Heritage Institute will showcase contemporary masterpieces of Northwest Coast art at its second art auction in an effort to perpetuate critical programs such as Native language revitalization and workshops on endangered Native art forms. The auction will be held at Centennial Hall in Juneau. sealaskaheritage.org

Seward SEPT

Seward Music & Arts Festival

22-24 The Seward Music & Arts Festival features live music and dance performances as well as local Alaska artisan craft and food vendors. The Seward Arts Council promotes a

family-oriented festival with children’s activities and artist projects throughout the weekend in addition to the food court, beer garden, and community art show and more than twenty live musical acts and dance performances. The festival is held at the Dale R. Lindsey Alaska Railroad Seward Intermodal Facility. sewardfestival.com

Juneau

Mat-Su SEPT-OCT

The Tin Woman

The Tin Woman is the story of a woman who receives a heart transplant and her eventual meeting with the family of the donor. Instead of relishing life after her heart transplant, Joy enters a downward spiral, unsure whether she truly deserves a second chance. Meanwhile, Alice and Hank mourn the loss of their son, Jack, whose heart was used to save Joy. Based on a true story, The Tin Woman uses humor and tragedy to explore loss, family, and what it means to be given new life. valleyperformingarts.org

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SEPT

International Flying Fish Festival

29 IF4 consists of short and feature-length films produced by professional filmmakers from all corners of the globe, showcasing the passion, lifestyle, and culture of fly fishing. glennmassaytheater.com R

SEPT

Capital City Brewfest

23 Don’t miss this popular, charity fundraiser filled with fun: live music, local food vendors, and beer from across Alaska and the world. Come grab some beer samples, bust some moves, and enjoy this annual event hosted by the Rotary Club of Juneau at the Juneau Arts and Culture Center. juneaurotary.org

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EVENTS CALENDAR SEPTEMBER 2017

Girdwood

RIGHT MOVES Pursuit

Pursuit announced that Fernando Salvador has been promoted to the position of Vice President and General Manager of the Alaska Collection. Salvador, former General Manager of Pursuit’s Talkeetna Alaskan Lodge, will be responsible for leading the team in Alaska to deliver unforgettable and inspiring experiences to guests and staff. Prior to his leadership at the Talkeetna Alaskan Lodge, Salvador’s career has developed and grown over many years in a variety of national park resort roles across Alaska and Washington, including notable posts managing the Denali Park Village, McKinley Chalet Resort, and the Sol Duc Hot Springs Resort.

Native Voice One

Native Voice One recently welcomed Bob Petersen to the role of Network Manager. In his this role, Petersen leads the charge producing quality programming that educates, advocates, and celebrates indigenous life and values. Much of Petersen’s broadcast background comes from producing Petersen and hosting a podcast called “Eskimo Bob Lives” in which he interviewed musicians, authors, and more. He volunteered at KYUK in Bethel and at his college radio station and brings a history of business experience to his new role at Native Voice One.

Northrim

The Board of Directors of Northrim BanCorp Inc., the parent company of Northrim Bank, named Joe Schierhorn as President and CEO of Northrim BanCorp in June. Schierhorn will also continue to serve as Northrim Bank’s President and CEO, while Joe Beedle will continue to serve as Chairman of the Board of Directors of Northrim BanCorp and Northrim Bank.

Coffman Engineers

Coffman Engineers is pleased to announce Aaron Morse obtained his Alaska Professional Engineering (PE) license in civil engineering. Morse is a civil/structural engineer in the Anchorage office. He received a BS in civil engineering from the University of Alaska Fairbanks in 2009. Morse’s industrial background as a construction field engineer includes supervision of ironworker and boilermaker crews erecting structural steel and performing structural welding, supervision of industrial painters, crane lift plans, quality control, calculating cost projections, and generating RFIs. In 2014 Morse transitioned

from construction management to design engineering. His structural design experience has been concentrated mostly in the oil and gas sector, including steel pipe support design, reinforced concrete foundation design, and deep foundation design.

Municipality of Anchorage

Mayor Ethan Berkowitz welcomed new Anchorage Police Department Chief Justin Doll, who takes the reins from retiring Chief Chris Tolley. Doll has been with APD since 1996 and has served in a variety of rolls including patrol officer, field training officer, academy instructor, motorcycle officer, traffic unit supervisor, SWAT team member, bomb technician, patrol shift commander, and commander of the homicide and robbery/assault detective units.

Ravn

Ravn Air Group announced that it has tapped one of the airline industry’s most experienced executives to grow Alaska’s largest airline. Dave Pflieger was named as Ravn’s new President, CEO, and member of its Board of Directors, effective in August. Bob Pflieger Hajdukovich, the airline’s previous President and CEO, was elevated to Vice Chairman of the Board. Pflieger brings more than three decades of aviation experience to Ravn. His award-winning career includes prior positions as the CEO of Fiji Airways, Silver Airways, and most recently of Island Air. Pflieger was also a Founding Officer and Senior Executive at Virgin America and held senior management roles in operations, safety, and legal at Delta Air Lines. Pflieger graduated from the US Naval Academy and served in the United States Air Force as a B-52 instructor pilot and a C-130 pilot. He holds a JD (with distinction) and an MBA from Emory University.

Alaska Heart & Vascular Institute

The Alaska Heart & Vascular Institute is pleased to announce the addition of Jacob Kelly, MD, who comes to Alaska after pursuing his training across three different regions of the United States. After obtaining a BS in evolutionary biology and ecology at Texas Tech University, he attended the University of Colorado School of Medicine and earned a Doctor of Medicine. Kelly completed his internship, residency, and was Chief Resident at UT-Southwestern/Parkland Memorial Hospital in Dallas, before beginning his cardiovascular disease fellowship

and a subsequent two-year research fellowship at Duke University Medical Center and the Duke Clinical Research Institute. Also, Gene Quinn, MD, MS, joins the organization from Harvard Medical School, where he is completing a Patient Safety and Quality fellowship program. He is also completing a fellowship program at Beth Israel Deaconess Medical Center, with a focus on cardiovascular disease. Quinn currently attends the Harvard School of Public Health, where he is pursuing a Master of Public Health with a concentration in public health leadership. He is expected to graduate this year. Additionally, The Alaska Heart & Vascular Institute is proud to welcome Mark M. Levin, MD, MS. Levin will join the team on September 18. He is board-certified in general surgery and a graduate of the Georgetown University School of Medicine, where he earned his MD as well as a MS in physiology and biophysics. Levin also holds a BA in neuroscience with a concentration in cellular and molecular neuroscience from the Johns Hopkins University.

Department of Natural Resources

Natural Resources Commissioner Andy Mack announced that Ethan Tyler joined the Department of Natural Resources as Director of the Division of Parks & Outdoor Recreation. Tyler has seventeen years of private sector and nonprofit experience in Alaska, largely in tourism, outdoor recreation, and economic development. Tyler has a BS in business administration from Mesa State College in Grand Junction, Colorado.

PND Engineers

PND Engineers, Inc. is pleased to announce the following professional achievements and new hire in its Anchorage office. Josh Gray and Daniel King recently obtained Professional Engineer (PE) registrations by the State of Alaska. Gray graduated from Montana Gray State University in 2012 with his BS in civil engineering. He joined the PND team in 2013, with his engineering duties encompassing general civil site design, roadway design, marine infrastructure, oil and gas development, and onsite inspection. King obtained his MS in civil engineering in 2016 from University of Alaska Anchorage. He specializes in structural evaluation and design. King King

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Compiled by Tasha Anderson began working at PND as an intern and has been with the company fulltime since 2013. Amy Steiner, EIT, joined the Anchorage office in January of this year. Steiner is a lifelong Alaskan who completed a BS degree in civil engineering from University of Alaska Fairbanks in 2012. Following that, she worked for PDC Engineering in Fairbanks for two and a half Steiner years before returning to school at Delft University of Technology (in The Netherlands) for her MS in geotechnical engineering, completed in 2016. Her engineering duties primarily consist of laboratory testing and the preparation of geotechnical reports.

PenAir

Several changes in upper management have been announced at PenAir. Current CFO Dave Richards has been named COO. Richards has been with PenAir nine months and brings experience from Era Aviation where he was VP of Finance for six years; he was Controller with the Municipality of Anchorage for six years as well. Brian Whilden has been promoted to Sr. Vice President of Flight Operations and Safety. Whilden has held many positions in his twenty-nine-year PenAir career, starting on the ramp in King Salmon. He also served as Station Manager, moving throughout PenAir’s routes of King Salmon, Dillingham, and Dutch Harbor. Murphy Forner has been named Sr. Vice President of Ground Operations and Business Development. Forner has held various positions with PenAir over the last six years and previously spent eleven years with Era Aviation and was with Alaska Airlines for twenty years, all in the ground operations and station operations arena. Al Orot has been named Vice President of Ground Operations—Alaska. Orot previously held the position of Vice President of cargo operations until the sale of the all-cargo Saab 340 fleet. Orot, another long-term employee with the company, has held various service positions in his twenty-eight-year career with PenAir. Dallas Anthony has been named Managing Director of Ground Operations—Contiguous US. His career includes four years with PenAir, including manager of safety and regional director ground operations, Alaska. Nick Aderman has been promoted to Vice President of Aircraft Maintenance. Aderman started with PenAir in September 2003 as a night shift aircraft mechanic. During his fourteen years prior to becoming director of maintenance he held positions including lead aircraft

mechanic, aircraft inspector, and outsource maintenance representative for heavy check aircraft.

AECOM

AECOM announced that it has hired Corissa Andrews to support its Alaska operations as a Student Intern. In this role, Andrews will provide project and administrative support to Anchorage’s 700 G Street location. Andrews is a 2017 graduate of Robert Service High Andrews School in Anchorage where she was enrolled in Advanced Placement studies. She will enroll at Washington State University in Pullman during the fall of 2017, majoring in environmental engineering. Additionally, the company has hired Stephen (Steve) Denton, a Professional Engineer who brings more than forty years of experience in mining, consulting, and construction to the AECOM team. Denton is a thirdgeneration Alaskan and second genDenton eration graduate of the University of Alaska Fairbanks, School of Mines. As an independent contractor, Denton has worked on a number of projects throughout Alaska in public works/roads, marine facilities, exploration, permitting, mine development/operations, and construction. He also has significant experience working on remote projects in the Arctic as well as experience working with Alaska Native Corporations on natural resource development projects.

Alaska USA Federal Credit Union

Alaska USA Federal Credit Union announced that Chris Brown has been selected for the position of Senior Vice President, Special Credits. Brown has more than twentythree years of lending and collections experience, including eighteen years with Ford Motor Credit. He holds both Bachelor and Master of advertising and public relations degrees from Michigan State University.

Brown

Department of Law

The Department of Law announced the appointment of Steve Wallace as the new Bethel District Attorney. Wallace began his career in 1982 as a police officer in the City of Kodiak. He went on to serve as a police officer in Barrow and the Village of Wainwright, before becoming

an attorney and joining the Department of Law in 1989 as an assistant district attorney in Palmer. Since then Wallace has served in Bethel, Anchorage, and, most recently, as the district attorney in Kodiak.

Ohana Media Group

Ohana Media Group announced Sandy Baker is joining their staff as the Sales Manager for OMG’s South Central Alaska cluster. Baker, who takes on local sales management for the region, spent the past year working in the freight industry and prior to that spent more than fifteen years with Morris Communications radio stations (now Alpha Media) in Anchorage and Wasilla.

Alutiiq Museum

The Alutiiq Museum has promoted Rebecca Pruitt to the position of Gallery Coordinator. In her new position, Pruitt oversees the daily operations of the Alutiiq Museum Store, assists artists and visitors, develops store merchandise, and hosts museum events. Pruitt is a Pruitt 2012 graduate of Kodiak High School. She began work at the Alutiiq Museum in 2014 and has contributed to everything from collections care and educational outreach to language programming and the museum store.

Homer Chamber of Commerce & Visitor Center

Debbie Speakman was named the Executive Director of the Homer Chamber of Commerce & Visitor Center. Speakman replaces Karen Zak who served as the executive director since February 2015. Speakman joined the team full time on August 1.

Speakman

Great Alaskan Holidays

Great Alaskan Holidays announced Andrew Aurelio has just been established as a new, full-time Mechanical Technician. Aurelio has been building his base of expertise for more than five years and continues to solidify the firm’s customer-focused efforts. Aurelio has called Alaska his home Aurelio since 2005.

Lumber. Siding. Insulation. Whatever you need, we deliver. Connect with us / 800.727.2141 / www.nac.aero /

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115

Business Events SEPTEMBER CommEx: Alaska SEPT 2017 Communicators Exchange

14-15

Dena’ina Center: Join professionals from all industries at CommEx, a two-day conference in downtown Anchorage featuring national and local speakers. Topics include metrics, reputation management, strategic thinking, crisis communication, media relations, branded content, social networks, and government relations. prsaalaska.org/commex

Recreation & Park SEPT Alaska Association Conference

14-15

Valdez: The focus of the conference is threefold: opportunities for continuing education and the exchange of best practices, the chance to network with other peers, and to recognize accomplishments through the ARPA Awards Ceremony. alaskarpa.org

Annual Training Conference SEPT NADO Dena’ina Center, Anchorage: This is

9-12

the National Association of Development Organizations’ annual training conference and will celebrate NADO’s 50th anniversary. nado.org/events/2017-annual-trainingconference

Annual Meeting SEPT APA/AIE Kodiak Convention Center, Kodiak:

12-15

The mission of Alaska Power Association (APA) is to assist members in accomplishing their goals of delivering electric energy and other services at the best value to their customers. alaskapower.org

Association of REALTORS SEPT Alaska Convention

16-20

Kenai Princess Wilderness Lodge, Cooper Landing: The annual convention includes keynote and guest speakers and opportunities for ECE credits. alaskarealtors.com

2017 SEPT IEEE/MTS–OCEANS Dena’ina Center, Anchorage: The

18-21

OCEANS conference is jointly sponsored

Compiled by Tasha Anderson by the IEEE Oceanic Engineering Society and the Marine Technology Society. This international conference is a major forum for scientists, engineers, and those with an interest in the oceans to gather and exchange their knowledge and ideas regarding the future of the world’s oceans. Included will be daily demonstrations of an innovative method of separating oil from icy water. ieee.org

Fire Conference SEPT Alaska Sitka: Includes training, workshops,

25-30

lectures, and a firefighter competition. This year’s keynote speakers are Paul Urbano, a thirty-one-year fire service veteran, and Loren C. Rotroff, who began his fire service career in 1957. alaskafireconference.com

Alaska Annual SEPT Museums Conference

27-30

Anchorage: This year’s conference theme is “Social Discourse: Responding to Our Communities.” museumsalaska.org

Business Monthly’s Top SEPT Alaska 49ers Luncheon

Anchorage Marriott Downtown: Join us as we celebrate the 2017 Top 49ers at our annual awards luncheon. This event honors the Top 49 businesses owned and operated by Alaskans, ranked by gross revenue. Tickets available now. 907-276-4373 | akbizmag.com | Emily@akbizmag.com

OCTOBER

OCT

AAHPA Annual Conference

Petersburg: This is the annual conference of the Alaska Association of Harbormasters & Port Administrators. alaskaharbors.org

2-6

OCT

Alaska Snow Symposium

Dena’ina Center, Anchorage: A one-day trade show for the snow and ice management industry brought to Alaska by the Snowfighters Institute. Learn about the latest in technology, education, and equipment for every branch of the business. alaskasnowsymposium.com

OCT

Arctic Ambitions

Sheraton Anchorage Hotel: This annual event uniquely focuses on business and investment opportunities flowing from developments in the Arctic. wtcak.org

3-4

OCT

3-5

ATIA Annual Convention & Trade Show

Kodiak Harbor Convention Center: The Alaska Travel Industry Association is the leading nonprofit trade organization for the state’s tourism industry; this year’s theme is “Alaska Untamed.” alaskatia.org

OCT

Alaska Chamber Fall Forum

OCT

All-Alaska Medical Conference

Sitka: Open to the public, the Alaska Chamber’s Annual Conference is the state’s premier business conference. The conference draws 200 to 225 attendees and features keynote speakers, panel discussions, and breakout sessions on issues of statewide concern to Alaska business. alaskachamber.com

10-12

Lakefront Anchorage: A continuing medical education conference put on by the Alaska Academy of Physicians Assistants, providing up to twenty-five CMEs. akapa.org

12-15 OCT

18-20

Alaska Forest Association Annual Convention

The Landing Hotel, Ketchikan: The Alaska Forest Association can be characterized as a high profile industry trade association. Its members hold in common general business interests in the timber industry of Alaska. This year is the 60th annual convention. akforest.org

OCT

19-21

Alaska Federation of Natives Annual Convention

Dena’ina Center, Anchorage: The Alaska Federation of Natives Convention is the largest representative annual gathering in the United States of any Native peoples. Delegates are elected on a population formula of one representative per twenty-five Native residents in the area, and delegate participation rates at the annual convention typically exceed 95 percent. nativefederation.org R

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Inside

Alaska Business September 2017

AHTNA

htna, Inc. and the State of Alaska reached agreement on a proposed settlement regarding lands along Klutina Lake Road and near the Historic Gulkana Village off the Richardson Highway. The agreement resolves a legal dispute that dates back to 2007 regarding property interests and use of Klutina Lake Road. It also resolves long-standing impacts to the Gulkana historic cemetery and townsite. Some of the settlement terms Ahtna and the state agreed to include:  Relocation of public parking and other facilities at the Gulkana River boat launch to protect the historic townsite and cemetery.  Transfer of state-owned land in Gulkana to the Native Village of Gulkana and release of the Old Richardson Highway right-of-way in exchange for land on the other side of the highway that the state will then use for a parking lot.  An easement from the state’s new parking lot to support additional fee parking, camping, and river access on Ahtna land.  A 100-foot-wide state highway right-of-way along Klutina Lake Road.  Where the right-of-way intersects with state land under the Klutina River, fishing, daytime parking, and boating access (without a trailer) from the Klutina Lake Road right-of-way.  Three locations along Klutina Lake Road where the public can launch boats using trailers.

Compiled by Alaska Business Staff

 Camping and overnight parking for at least fifty public users per night in locations along the Klutina Lake Road right-of-way, including at Boys’ Camp.  A new 50-foot-wide state right-of-way to connect Klutina Lake Road to state land on Klutina Lake, replacing the existing trail along the Klutina Lake shore. ahtna-inc.com

ALASKA GARDEN AND PET SUPPLY

n July the Alaska Department of Commerce, Community, and Economic Development awarded the Made in Alaska Manufacturer of the Year Award to Alaska Garden and Pet Supply. Alaska Garden and Pet Supply was founded in 1950 on the principles of providing the customer good advice, fair prices, and great customer service. Today, the company operates a garden and pet wholesale distribution business and the Alaska Mill & Feed retail store in Anchorage. Through nearly six decades of operation, the company has evolved to meet customer needs in Alaska, adding a feed mill in 1965, a fertilizer blending plant in 1978, and a liquid ice melt facility in 2015. Alaska Garden and Pet Supply always creates products with an eye toward the needs of Alaskans, which has contributed to its statewide success. Alaska Garden and Pet Supply became an employee-owned company in 2016. The company provides jobs for more than sixty-five people, supports twenty local nonprofits through charitable activities, and also offers community classes to teach Alaskans of all ages how to garden and farm. www.alaskamillandfeed.com

MAT-SU BOROUGH

he Matanuska-Susitna Borough’s most popular hiking trail—West Butte—opened seventy parking spaces in a new lot in July. The parking lot removes vehicles from the road, ending a chronic safety problem for the Borough. Some 24,000 hikers climb the Butte annually on just the West Butte Trail, not including the private trailside hikers on Bodenburg Loop. Total project cost is $251,336, which includes the purchase of an acre of private land opposite the present parking lot off Mothershead Lane. matsugov.us

LET’S RIDE ALASKA ACT

he Coast Guard is reminding Alaska boaters that Alaska House Bill 132, otherwise known as the Let’s Ride Alaska Act, that brings ridesharing services such as Uber and Lyft to Alaska roadways, does not pertain to navigable waters of Alaska. Despite the bill’s concessions for allowing ridesharing services to operate within Alaska, boat owners are not permitted to provide charter services as an Uninspected Passenger Vessel unless they meet pre-existing standards of safety and conduct. Safety requirements for UPVs relate to licensing, watch standing, vessel documentation, mandatory drug testing, casualty reporting, required charts and electronic equivalencies, navigation lights and sound signals, life saving and firefighting equipment, safety orientation and instruction, and pollution prevention. Any UPV operator, agent, master, owner, or individual in charge found in violation of the applicable laws and regulations may be liable for a $5,000 civil penalty per incident. uscg.mil/pvs/UPV.asp

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INSIDE ALASKA BUSINESS

he Alaska Accelerator Fund announced the first of two planned investments in Arctic Heat Technologies Inc., formerly known as CFT Solutions, a University of Alaska Anchorage start-up founded by Dr. Joey Yang and UAA Vice-Provost for Research and Graduate Studies Dr. Helena S. Wisniewski. The initial investment of $75,000 was approved by the AHT Board of Directors on June 1, 2017. A second investment is anticipated in the fall of 2017 to fund UL testing and expanded sales. AHT uses carbon fiber tapes to heat outdoor surfaces (walkways, driveways, parking lots, roadways, etc.) to keep them free of snow and ice. It has been successfully installed at two locations on the UAA campus and one other location in Anchorage. Under the new corporate structure, Timothy Allen will be the president and general manager of AHT. Allen is a long-time Alaskan with industrial product and marketing experience around the world. arcticheattech.com

SOUTHSIDE GARDEN SUPPLY

outhside Garden Supply, owned by locals Rob and Julie Martin, in July expanded and upsized into two super stores, one in Wasilla and the other in midtown Anchorage. The company, which has been in operation for three years, closed their previous location in South Anchorage, upsizing into the new, 20,000-square-foot building located at 2809 Arctic Boulevard. The Wasilla location is at 449 West George Parks Highway. Southside Garden Supply is Alaska’s largest hydroponics and indoor cultivation supplier, supplying gardening equipment, greenhouse lighting and air systems, soil and fertilizers, and hydroponic systems. The company supports Alaska’s growing agriculture businesses with their Wholesale Direct Farm Pricing on all equipment and supplies. sgsak.com

ALASKA DEPARTMENT OF NATURAL RESOURCES

he McCollum and Pinkelman families of Delta Junction have been selected by the Alaska agriculture community as the 2017 Alaska State Fair Farm Family of the Year. They were honored at the Alaska State Fair on August 24.

GCI

CI announced it has built a new wireless tower near Coldfoot, which brings the first voice and highspeed data service to Dalton Highway traffic. “Until now, travelers on the 415mile Dalton Highway have communicated by Citizens Band radio or satellite phone—there has been no cell coverage,” said Jimmy Sipes, VP of GCI Network Services. “GCI’s new tower, located near mile 175, will enable people to connect at Coldfoot. This is the first of several towers we will be building along the Dalton Highway as we continue to expand GCI’s wireless coverage for its travelers.” The new tower cost about $500,000 and took a year to permit, construct, and integrate into the GCI wireless network. The tower will provide wireless coverage along fifteen miles of the Dalton Highway. GCI is planning other wireless towers along the road as part of a $30 million project to expand and upgrade wireless communication throughout Alaska. As many as 250 trucks use the Dalton Highway each day. It has been called one of the world’s most dangerous roads for drivers. Until now, it was believed to be the longest highway in the United States without cell coverage.

Doug and Cathie McCollum and their daughter and son-in-law Jeannie and Russ Pinkelman operate their farm Northwest Land & Livestock and their processing plant Delta Meat & Sausage, Inc. The farm began in 1984, when Doug and Cathie purchased 17 heifers and a Galloway bull from a farm in South Dakota. Today they raise between 400 and 500 head of Galloway/ Angus cattle and 350 pigs. Delta Meat & Sausage was established in 1997 and is a full-service slaughter and meat processing facility. They market beef, pork, buffalo, yak, elk, and reindeer from local farmers and process specialty game from local big game hunters. The Farm Family of the Year award, sponsored

by the Matanuska Valley Federal Credit Union, was established by the Alaska State Fair in 2000 to honor an Alaska farming family and show appreciation for all the hardworking Alaskans committed to agriculture. dnr.alaska.gov

AEDC

n July the Anchorage Economic Development Corporation (AEDC) released its 2017 “3-Year Outlook Report,” co-sponsored by GCI, Coffman Engineers, and Matson Inc. and compiled by McDowell Group. The report gives readers threeyear insight on housing, jobs, tourism, oil prices, and more in Anchorage. aedcweb.com

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Image courtesy of GCI

ARCTIC HEAT TECHNOLOGIES

Compiled by ABM Staff

AGDC

he Alaska Gasline Development Corporation (AGDC) signed a memorandum of understanding with the Korea Gas Corporation (KOGAS) in Washington, DC in June. The MOU establishes a framework for AGDC and KOGAS to cooperate in several areas of Alaska LNG, including project investment, development, operations, and other arrangements. The memorandum of understanding establishes a joint committee with decision making authority and sets the framework for AGDC and KOGAS to collaborate on the potential of KOGAS participating in all aspects of the development of Alaska LNG. Specific areas addressed in the MOU include Korean investment in the project; KOGAS cooperation on the engineering, procurement, and construction of the project components; and operations. agdc.us

management team to focus on our employees, safe operations, retiring debt, and taking care of our customers.” penair.com

SOLITARIO ZINC CORPORATION

OFFICE OF THE GOVERNOR

Photo Courtesy of the Office of the Governor

olitario Exploration & Royalty Corporation and Zazu Metals Corporation announced in July that Solitario has completed its acquisition of Zazu Metals Corporation. The combination creates a new zinc-focused company with two advanced high-grade zinc projects that more than triple the company’s measured, indicated, and inferred zinc equivalent resources. One of those is Zazu’s Lik zinc-lead-silver project, which represents a large-tonnage, high-grade, and potentially openpittable development project in Northwest Alaska in partnership with Teck Resources Limited. solitarioresources.com

CH2M

acobs Engineering Group Inc. and CH2M HILL Companies Ltd. have entered into a definitive agreement under which Jacobs will acquire all of the outstanding shares of CH2M in a cash and stock transaction with an enterprise value (EV) of approximately $3.27 billion, including approximately $416 million of CH2M net debt. The combination unites two industry-leading, innovative companies with complementary capabilities, cultures, and relationships, resulting in a differentiated, end-to-end value proposition for clients and an enhanced platform for sustainable, profitable growth. ch2m.com

POLAR WIRE PRODUCTS

olar Wire Products is celebrating its 25th year in Anchorage, providing arctic specialty products to clients in Alaska and worldwide locations. The business launched in 1991 as Alaska Auto/ Marine Supply and initially stocked electrical components. With the development of its flagship wire, Arctic Ultraflex Blue and Arctic Superflex Blue, the product line transitioned; as a result of this transition the company name changed to Polar Wire Products, and shortly after the business moved to their current location at 7941 Brayton Drive. Today the company ships its wire and wiring control products to international sites as well as statewide—supplying oil and gas projects, manufacturing, mining, transportation, marine, renewable energy, and construction industries. polarwire.com

PENAIR

enAir has filed for Chapter 11 reorganization with the state of Alaska. This action will not affect scheduled air service operations in Alaska or Boston. PenAir’s Portland, Oregon, and Denver, Colorado, hubs began the process of closing scheduled service in August. PenAir announced the additional closing the Denver hub pending approval from the Department of Transportation. “The steps we are taking today will allow PenAir to emerge as a stronger airline while continuing our focus on safe operations,” said PenAir CEO and Chairman Danny Seybert. “We will be working with a restructuring officer to present a reorganization plan that will allow the

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overnor Bill Walker in August signed into law Senate Bill 30, which is expected to generate between $22 million and $27 million in revenue to the state. The legislation, which the governor introduced, approves a four-year contract in which the State of Alaska will sell royalty oil to Petro Star Inc. Under terms of the contract, which ends December 31, 2021, the state will sell royalty oil to Petro Star:

 16,400 to 20,500 barrels per day in 2018  13,200 to 16,500 barrels per day in 2019  10,800 to 13,500 barrels per day in 2020  8,400 to 10,500 barrels per day in 2021 Petro Star, an Arctic Slope Regional Corp., subsidiary, operates refineries in North Pole and Valdez. gov.alaska.gov R

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ALASKA TRENDS

01/01/2002 09/01/2000

0 400,000 800,000 1,200,000 SOURCE: Alaska Department of Revenue Tax Division

ANS West Coast Crude Oil Prices 07/31/2017 09/01/2014 09/01/2012 09/01/2010 09/01/2008 09/01/2006

ANS West Coast $ per barrel $52.61 Jul. 31, 2017

09/01/2004 09/01/2002 09/01/2000 $0

$20

$40

$60

$80 $100 $120 $140 $160

SOURCE: Alaska Department of Revenue Tax Division

Statewide Employment Figures 10/1976—6/2017 Seasonally Adjusted 06/01/2017 11/01/2012 01/01/2010 03/01/2007 05/01/2004 07/01/2001 09/01/1998

Labor Force 367,044 June 2017 Employment 341,922 June 2017 Unemployment 6.8% June 2017

11/01/1995 01/01/1993 03/01/1990 05/01/1987 07/01/1984 09/01/1981 11/01/1978 01/01/1976 0 100,000 200,000 300,000 400,000 SOURCE: Alaska Department of Labor and Workforce Development, Research & Analysis Section; and US BLS

Clothing

How We Spend Our Money

3.4%

Anchorage Consumer Price Index, 2016

Transportation 15.5%

Medical Care 7.2%

Housing 43.9%

Recreation 6.1%

Other goods and services

3.2% Food and beverages 14.3% 6.5% Education and communication

Is there really an ‘average consumer’? All cost-of-living measures have their shortcomings. No two consumers spend their money alike, and no index can accurately capture all the differences. For example, the average household in Kotzebue may spend money differently from the average household in Petersburg, and they may differ even more dramatically from a family in Seattle. An index may or may not take these differences into account, depending on how sophisticated it is. Also, in Alaska’s case, none of these measures take the consumption of subsistence goods into account.

Source: US Department of Labor, Bureau of Labor Statistics CPI-U

Average Movie Ticket Cost 15

12 $

.00

ANS Production per barrel per day 335,061 Jul. 31, 2017

05/01/2003

01/01/2006 09/01/2004

11.75

05/01/2007

The Council for Community and Economic Research, or C2ER, is the most widely cited source for comparing the cost of living in different cities. C2ER conducts detailed surveys of more than 250 US cities, including four in Alaska: Anchorage, Juneau, Fairbanks, and Kodiak.

09/01/2008

Alaska cities are expensive, but other US cities now higher

13.00

01/01/2010

Most any Alaska resident would agree that living here is expensive. The costs associated with getting even the basics to our homes and businesses are passed on to us, the consumers, making Alaska the third most expensive state in the union in terms of cost of living after Hawaii and California, according to recent data from the Alaska Department of Labor & Workforce Development. Anchorage residents spend nearly half of their income on housing, with the rest parceled out between transportation, food and beverages, medical care, recreation, and other goods and services (including clothing). For those looking to purchase a home, Bethel boasts the least expensive homes for sale at about $239,333 compared to the most expensive place to buy a home: Anchorage, where the average home price is $383,830. Kodiak had the highest rent for an average two-bedroom apartment in 2016 at $1,429. When it comes to buying staples such as eggs, milk, bread, and gas, prices vary by region. A gallon of milk in Barrow cost $10.29 in March 2017 compared to $3.69 in Anchorage. Meanwhile, gas in Barrow set drivers back $6.50 per gallon during the same time period compared to $2.55 in Anchorage. Alaska’s GDP fell for the fourth consecutive year in 2016, this time by 5 percent to $50.7 billion. This marks the longest downward trajectory for GDP in the state’s history, according to Alaska Economic Trends.

05/01/2011

11.67

09/01/2012

Alaska’s Cost of Living

01/01/2014

10.22

05/01/2015

ANS Crude Oil Production 07/31/2017

Anchorage Fairbanks Juneau Kodi

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Compiled by Alaska Business Staff Current decline the longest in Alaska’s modern history

55.50

50.50

54.10

58.80

60.90

59.80

58.30

53.40

50.70

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

49.20

Source: US Bureau of Economic Analysis

Paychecks Needed To Afford a House

$ $ $

Kenai Peninsula

Ketchikan Gateway Kodiak Island Anchorage worker buying in Mat-Su

0 0.3 0.6 0.9 1.2 1.5

300

600

900

Average Healthcare Exam Cost 200

Anchorage

Fairbanks

202.33 76.00 $

179.33 $

Juneau

228.00 $ 64.13

190.50

225.00 47.38

184.00

101.56 $ 50.42

107.63

100

Kodiak

150

50.38 $ 28.95

Juneau

44.31 14.48

Anchorage Fairbanks

35.88 $ .75 18

1,500

250

1,200

Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section and Alaska Housing Finance Corporation, Quarterly Survey of Mortgage Lending Activity

Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section and Alaska Housing Finance Corporation, Rental Market Survey

200.60 64.40

Source: Alaska Department of Commerce, Community, and Economic Development

1,429 1,381 $ 1,337 $ 1,294 $ 1,293 $ 1,191 $ 1,188 $ 1,021 $ 999 $ 828

20 10

Mat-Su

400,000

350,000

Juneau

49.35 $ .20 21

19.99 $

17.00

36.13 $

19.99 $

300,000

Average 2-bedroom apartment, 2016 Kodiak Island Borough Juneau, City and Borough Anchorage, Municipality Valdez-Cordova Census Area Sitka, City and Borough Fairbanks North Star Borough Ketchikan Gateway Borough Kenai Peninsula Borough Matanuska-Susitna Borough Wrangell Borough-Petersburg Census Area

28.58

250,000

Fairbanks North Star

Anchorage Fairbanks Juneau Kodiak

Kodiak Has Highest Rent

200,000

37.47 16.03

35 30 $ 25 $ 20 $ 15 $ 10 $ 5 $ 0 $

Average Haircut Cost $

Average Monthly Landline Phone Service Cost 40

150,000

March 2017 Survey

100,000

50,000

Anchorage

174.67

1.2 1.4 1.4 1.1 1.5 1.2 1.4 1.5 1.1

Statewide

Using average wage and single-family home, 2016

Eggs (1 doz) Milk (1 gal) Bread Gas (1 gal) Anchorage $2.00 $3.69 $2.50 $2.55 Juneau $1.99 $3.89 $2.39 $2.98 Fairbanks $1.99 $3.89 $3.59 $2.91 Kenai $1.97 $3.88 $1.68 $2.84 Kodiak $2.19 $4.19 $2.79 $3.14 Valdez $2.29 $4.09 $2.39 $3.32 Glennallen $5.50 $5.95 $3.95 $3.27 Nome $2.79 $6.49 $2.59 $4.67 Bethel $4.39 $8.29 $2.69 $4.99 Barrow $3.79 $10.29 $4.99 $6.50 Average $2.89 $5.47 $2.96 $3.72

44.70

$ $

Price Comparisons for Select Staples

383,830 373,046 323,909 $ 322,754 $ 303,396 $ 283,204 $ 269,436 $ 257,654 $ 239,333

Anchorage, Municipality Juneau, City and Borough Statewide Ketchikan Gateway Borough Kodiak Island Borough Matanuska-Susitna Borough Kenai Peninsula Borough Fairbanks North Star Borough Bethel

Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section and Alaska Housing Finance Corporation, Quarterly Survey of Mortgage Lending Activity

iak

Average price of single-family house in 2016

Alaska’s Gross Domestic Product in Bilions, 2006-2016

The four-year decline in the state’s gross domestic product is the longest downward slide since its inception in 1963. Alaska’s GDP has dropped ten times in its history, but declines never lasted more than a year. The steepest loss was in 1986, when Alaska GDP fell by 27 percent during the trough of the state’s housing bust. The 2016 drop is tied to Alaska’s current recession, and like every other GDP decline in Alaska’s history, nearly all of the loss has been attributable to the oil and gas sector.

Anchorage Home Prices Are Highest

GDP Down For Fourth Year

Kodiak

Average cost source: Council for Community and Economic Research Cost of Living Index for 265 Urban Areas, Published May 2017 for the ﬁrst quarter of 2017

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121

ADVERTISERS INDEX Advanced Physical Therapy of Alaska..........47 Advantage Air Freight LLC..................................38 AE Solutions Alaska LLC.......................................93 Afognak Leasing LLC.............................................97 Afognak Native Corp.............................................81 Ahtna Inc.....................................................................61 Alaska Air Cargo - Alaska Airlines...................73 Alaska Communications (ACS)............................3 Alaska Executive Search.......................................109 Alaska Pacific University (APU).........................27 Alaska Regional Council Carpenters.............19 Alaska USA Federal Credit Union....................24 ALSCO...........................................................................78 Alyeska Pipeline Service Co...............................68 American Fast Freight...........................................39 American Marine / Penco....................120, 121 Anchorage Messenger Service......................101 Anchorage Museum...............................................99 Arctic Catering & Support Services................64 Arctic Chiropractic...............................................111 Arctic Office Products.......................................106 AT&T................................................................................71 Avis Rent-A-Car.....................................................110 BDO................................................................................57

BP ..................................................................................70 Brice Environmental Services...........................69 Bristol Bay Native Corp.....................................123 Business Insurance Associates Inc.................13 C & R Pipe and Steel Inc.......................................94 Calista Corp...............................................................43 Carlile Transportation Systems........................49 Chugach Alaska Corp............................................75 CIRI..............................................................................116 Conrad-Houston Insurance Agency..............30 Construction Machinery Industrial (CMI).......2 Cruz Companies......................................................80 Dale Carnegie...........................................................38 Dianne’s Wild Fork Catering...........................112 Donlin Gold................................................................51 Doyon Limited..........................................................82 EDC Inc........................................................................13 Eklutna Inc..................................................................20 Everts Air Cargo - Tatonduk Outfitters.........37 Fairbanks Memorial Hospital.............................76 First National Bank Alaska.....................................5 Foss Maritime............................................................93 Fountainhead Hotels.............................................52 GCI...............................................................................124

Historic Anchorage Hotel................................113 Insurance Brokers of Alaska..............................16 Judy Patrick Photography...............................122 Koniag Inc...................................................................74 Land’s End Resort...................................................42 Landye Bennett Blumstein LLP.........................30 Loken Crane...............................................................21 LONG Building Technologies............................14 Lynden Inc..................................................................29 Matson Inc..................................................................77 Mechanical Contractors of Fairbanks...........15 Medical Park Family Care Inc............................21 Microcom.....................................................................51 N C Machinery...........................................................17 Nana Regional Corp...............................................89 Nenana Heating Services Inc............................95 New Horizons Telecom, Inc............................... 31 Northern Air Cargo.................................114, 115 Northrim Bank.......................................................107 Novagold Resources Inc.....................................55 Olympic Tug & Barge............................................36 Pacific Coast Maritime..........................................36 Pacific Pile & Marine...................117, 118, 119 Parker Smith & Feek...............................................59

PenAir...........................................................................35 Quality Asphalt Paving.........................................14 Quintillion Networks.............................................83 Ravn Alaska................................................................25 Sealaska Corp...........................................................63 Smiles Inc.................................................................103 Stellar Designs Inc................................................111 Superior Group........................................................23 T. Rowe Price.............................................................45 Tanana Chiefs Conference Inc.........................54 TDX Tanadguisix Corp. / Alaska Park.............79 TEX-R-US.....................................................................95 The Arc of Anchorage...........................................23 The Plans Room.......................................................19 TOTE Maritime Alaska...........................................33 Tulalip Casino Resort............................................65 Turnagain Marine Construction........................11 UIC Foundation........................................................34 University of Alaska Southeast.........................52 Verizon......................................................................112 Visit Anchorage........................................................87 Voice of the Arctic Inupiat..................................67 Washington Crane & Hoist..................................96 Western Towboat Company..............................38

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122

Alaska Business Monthly | September 2017 www.akbizmag.com

The past 45 years have brought many changes to the Bristol Bay region, but one thing remains the same: BBNC will always be dedicated to the prosperity and wellbeing of its shareholders and to preserving our Native way of life.

Celebrating 45 Years

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