Advancing Anchorage Magazine Spring 2014

SPRING 2014

The Commerce of

DIVER ITY INDUSTRY NEWS 12 VOT E NO O N 1

ECONOMICS 16 A LA SKA ’S FISC A L FUT UR E

TOURISM 18 SP R ING O UT LO O K

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Tulio Perez Project Services Challenger BP Alaska

Our Commitment to Alaska: Investing in Our Communities.

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F E AT U R E S TO RY

ECONOMICS

A R O U N D TOW N

LETTER FROM THE PRESIDENT 3 THE COMMERCE OF DIVERSITY 5 A DVO C AC Y I N AC T I O N 1 0 I N D U S T RY N E W S 1 2 B U S I N E S S & G OV E R N M E N T 1 4 ALASKA’S FISC AL FUTURE 16 TO U R I S M O U T L O O K 1 8 S C H O O L B U S I N E S S PA RT N E R S H I P 2 0 CHAMBEROLOGY 22 YO U R B U S I N E S S 2 4 BUSINESS LEADER PROFILE 26 A M B A S S A D O R O F T H E Q UA RT E R 2 7 MEMBER BENEFITS 28 A R O U N D TOW N C A L E N DA R 2 9 CHAMBER EVENTS 30 NEW MEMBERS 32

SPRING 2014

The Commerce of

DIVER ITY I NDU STRY NEW S 1 2 VOTE N O O N 1

EC O NO MI C S 16 AL AS K A’S F I S C AL F U TU RE

TO U RI SM 18 S PRI N G O U TL O O K

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ON THE COVER: Vasco and Julia Vea of Williams Fraser Advertising represent the changing face of Anchorage business.

Photo/Michael Dinneen/Alaska Journal of Commerce

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2014-2015

board of directors 2013-2014 Finance Committee:

Chair: Bob Heinrich

Secretary-Treasurer: Bill O’Leary At-Large: Julie Saupe At-Large: Mike Hayhurst At-Large: Matt Thiel At-Large: Susan Jensen

Immediate Past-Chair: Sandra Heffern Chair-Elect: Janelle Pfleiger Vice-Chair: Julie Anderson Secretary-Treasurer: Bill O’Leary At-Large: Julie Anderson At-Large: Tim Thompson At-Large: Mike Hayhurst Alternate: Christopher Clifford Ex-Officio: George Vakalis

Elected (15 Required; 3 year terms; can serve up to 3 terms) Eden Lovejoy, Yourbusinesslifestyle.com Anne Reed, Read Systems Sandra Heffern, EHD Enterprises Bruce Bustamante, Princess Cruises Bill O’Leary, Alaska Railroad Mike Hayhurst, KPMG Bob Heinrich, ConocoPhillips Colleen Starring, ENSTAR Natural Gas Company Greg Mattson, BP Janelle Pfleiger, RE/MAX Properties Julie Anderson, Alyeska Pipeline Service Chris Clifford, Wells Fargo Susan Jensen, Bayshore Clubhouse Melissa Reiser, First National Bank Alaska Tim Thompson, Alaska Airlines Appointees (Up to 12, Optional; 1-year terms; can serve up to 3 terms as appointed) J.R. Wilcox, Cook Inlet Energy Andy MacLeod, Northern Lights Media DBA KTUU-TV Jan Seglem, ExxonMobil Michael Acarregui, Providence Richard Watts, Safeway Marti Buscaglia, Anchorage Daily News Randy Cunningham, Klebs’ Mechanical Matt Thiel, Hickel Investment Corp.

Rochelle Marshall, GCI Andy Coon, Alaska Communications Art Clark, Art Clark – Associate Broker Joy Merriner, BDO USA, LLP

Ex-Officios Col. Duffy, US Air Force, Elmendorf, Installation Commander Col. Anderson, US Army, Alaska, Fort Richardson, Deputy Chief of Staff Col. Kerrigan, Alaska Army National Guard, Deputy Chief Joint Staff Ed Graff, Anchorage School District, Superintendent Rashmi Prasad, College of Business and Public Policy at UAA, Dean Bill Popp, Anchorage Economic Development Corporation, President and CEO Julie Saupe,Visit Anchorage, President and CEO Christopher Schutte, Anchorage Downtown Partnership, Ltd., Executive Director Chris Birch, Anchorage Assembly, Assembly Representative George Vakalis, Municipality of Anchorage, City Manager Tom Williams, BP, Past Chairman Bill Evans, Sedor, Wendlandt, Evans, and Filippi, Attorney

1016 W. Sixth Ave., Suite 303 Anchorage, AK 99501 phone (907) 272-2401 fax (907) 272-4117 info@anchoragechamber.org Anchoragechamber.org President/Managing Editor Andrew Halcro Publisher/Editor Corey Hester Photos submitted will not be returned unless accompanied by a self-addressed, stamped envelope. The Anchorage Chamber reserves the right to edit all information submitted for publication.

Published by

301 Arctic Slope Ave. Suite 350 Anchorage, Alaska 99518 (907) 561-4772 Alaska Regional VP Lee Leschper Managing Editor Andrew Jensen Graphic Artist Derek Schoenfeldt Photographer Michael Dinneen Advertising Director Tom Wardhaugh: tom.wardhaugh@morris.com Account Executives Ken Hanni: ken.hanni@morris.com Dustin Morris: dustin.morris@morris.com Jada Nowling: jada.nowling@morris.com

©Shutterstock/Lucas Payne

2013-2014 Executive Committee:

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letter from the president

Timing is right to tackle topic of diversity Andrew Halcro President & CEO Anchorage Chamber of Commerce Timing is everything, and our spring issue of Advancing Anchorage Magazine exemplifies that statement.

Last month the topic of Anchorage’s growing diversity and its effect on our local economy was thrust into the public dialogue. The comments made by a candidate for public office were clumsy and uninformed, but they drew attention to a legitimate question: what do immigrants bring to the local economy?

In this issue we answer that question, with the conclusion of our two-part series on the commerce of diversity. There is no doubt that our newly arrived neighbors are contributing everything from employment opportunities to property taxes to our local economy, and we celebrate that fact by highlighting a few growing immigrant businesses.

Our industry news focuses on the ballot initiative to repeal Alaska’s current oil tax structure that will appear on the August 2014 primary ballot. The Anchorage Chamber has been a strong supporter of tax reform, and have come out strongly against

Ballot Initiative One. As the president of an organization of almost 1,100 members, I hear every week from business owners who are benefiting from the increased investment the oil and gas industry are currently making due to tax reform.

The economics page hosts a great article

by Anchorage Chamber board member Melissa Reiser, who is the Vice President of Commercial Lending at First National Bank of Alaska. She writes about the importance of understanding the three-legged stool that is Alaska’s economy. The bank has done significant outreach to the public in an attempt to educate Alaskans on those three key areas that keep our economy humming.

Julie Saupe from Visit Anchorage gives our readers a sneak peek into the 2014 summer tourism season. Anchorage’s tourism guru explains how more flights and more hotel stays will benefit the Anchorage economy.

In our school business partnership column we highlight Alyeska Pipeline Company and their support of Russian Jack Elementary School. In 1999 after a devastating fire leveled the school, Alyeska stepped in to provide support for the school’s students, and a long term relationship was born.

In our Chamberology section, Patrick McGaughey writes about the importance of creating partnerships that are based on aligned goals and trust. In order to get the most out of any alliance, it’s best to start with a clear understanding about the expectations of each partner for both short and long term collaborations.

On the business page, Cassidy Davis from MSI explains the importance of a new initiative to protect independent contractors called “It’s my business.” The effort is

an attempt to fight legislation that seeks to undermine the ability of independent contractors by placing onerous requirements on America’s fastest growing segment of the economy.

The CEO profile for spring is a rising star in Anchorage, Brian Franklin the CEO of Frontier Tutoring. He answers questions about his company, his vision for education, and what he’d do if he was tasked with tutoring Ferris Bueller, Our Ambassador of the Quarter profile is on Matt Huffman with Alaska USA. He has become an active member in the Anchorage Chamber’s Ambassador Council, which promotes the chamber through member outreach and community service.

Under our Member Benefits section we give you great ideas on how you and your company can participate in our annual Military Appreciation events this summer, while honoring those whose sacrifice and service makes our freedom possible.

Finally, check out our events and around town calendar. From the Slam’n Salm’n Derby to Alaska Pridefest, there is something for everyone to enjoy this spring. On the Anchorage Chamber’s schedule, we will host U.S. Sen. Mark Begich for a Washington, D.C., update and hold our annual Military Appreciation lunch to honor those who serve and sacrifice for us.

We hope you enjoy the spring issue of Advancing Anchorage Magazine and I’d like to thank Corey Hester for his help in putting this magazine together.

Happy Spring!

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Salon Dimarcos owner Fran Flores, left, and Oaks Alterations owner Hyu R. Bae pose outsisde their Spenard businesses in Anchorage.

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In this issue of Advancing Anchorage Magazine, the Anchorage Chamber of Commerce explores the emerging cultures that are changing Anchorage’s economic landscape in the last of the two-part series entitled “The Commerce of Diversity.” These feature articles are intended to inform Anchorage Chamber members about the changing economic landscape in our community. In the first issue of our series we discussed the growing LGBT community in Anchorage, and their impact on the local economy.

The Commerce of

DIVER ITY

By Corey Hester

Photo/Michael Dinneen/Alaska Journal of Commerce

North to the Future

Alaska’s old time slogan, “North to the Future” is even more relevant today as it was in territorial times and early statehood years. We continue to expand upon that slogan by warmly welcoming immigrants from Asia, the Pacific, Africa, Europe and South America. We are eager for them to become entrepreneurs and play key leadership roles in our increasingly diverse economy.

Anchorage has become an international hub reflected by a growing number of small grocery stores, retail shops, professional services and restaurants highlighting the economic benefits brought to our local economy by our newly arriving neighbors.

Many of these business owners and managers are from Korea, Vietnam, Laos, Somalia, Niger, the Pacific Islands, Mexico, and other destinations from across the globe.

By far, Asians and Pacific Islanders are the state’s fastest growing population, increasing by 17,000 between 2000 and 2010. Immigration and birth rate projections indicate that the growth will continue. In the most recent census, the Asian and Pacific Islanders population is the number one minority group in the municipality. Between the two ethnicities, they currently comprise 8% of

the Anchorage population.

Paul Moon, an active leader in the Korean Community and owner of Yes Bistro, says with a growing number of restaurateurs, dry cleaners and tailor shops under Asian ownership, their progression in entrepreneurship is expanding. Seventeen percent of the jobs held in Alaska by Asians are in management, business, science, and arts. “The Asian community has tremendous potential for influence in government, business, and the economy.” Moon points out that as the Asian community continues to grow, their buying and labor power will significantly begin to influence Anchorage’s overall economy. In addition to their growing economic power, their sphere of political influence is increasing as well.

“With almost 300,000 residents, Anchorage’s neighborhoods show great diversity. A University of Alaska study recently noted that Alaska’s largest city’s Mountain View area is the most diverse census tract in the United States,” said Dianne Blumer, Commissioner of Department of Labor and Workforce Development.

“A lot of Polynesians come to Alaska, looking for a better way of living, in terms of education, healthcare, and employment,”

says Lucy Hansen, President of the Polynesian Association of Alaska. Many PacificIslanders move to Anchorage with traditionally large families so at times it’s hard to adjust quickly as these new residents look for a means of income to provide for their families.

For Pacific Islanders, only one in five jobs are in office and administrative functions.

“Jobs are limited for new families arriving in Anchorage,” says Hansen. “It’s hard for them to find a well-paying job.” The annual income for a bank teller is $29,271, a child care worker is $31,873, while a security guard averages $32,993 per year.

Meanwhile, many budding entrepreneurs trying to stake their own claim in our local economy find it difficult to navigate the process of starting a new business.

The Small Business Administration (SBA) has loans for small business owners, but it’s hard for some of these entrepreneurs to receive support states Dr. Tony Nakazawa, an active member in the Asian community. “Often times SBA assistance has to fit in with the time availability of the new Asian clientele that is not uncommon to work long days and 2-3 jobs to make ends meet and hope to realize future dreams.”

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“Anchorage is beginning to provide a good environment for these minority communities to engage in the business aspect, but there’s a lot more to be done.”

– Paul Maleehuan and Nampueng Ngewtong, Thai Community, Bilingual Tutor and Entrepreneurs

Despite the language and cultural barriers, along with being far away from their home country, the new immigrants often sponsor others to follow in their footsteps and seize the bountiful opportunities Anchorage has for motivated and resourceful residents. Currently, there are successful efforts to address the economic and social challenges that we face integrating our new neighbors into the economy.

“The Anchorage Community Land Trust’s revitalization of Mountain View is attracting investment and new businesses including retail, housing, medical providers, restaurants and financial institutions,” according to Commissioner Blumer. Evidence shows that these efforts are paying off in hundreds of new jobs and the 2013 Award for Excellence in Community Development from the National Development Council.

Education and Anchorage’s Future Economy

With the growing number of diverse ethnicities in our community, the Anchorage School District and the University of

Alaska Anchorage have become global entities and a critical part of educating a new generation of students. Yearly enrollments continue to rise in ethnic diversity, and it is getting national exposure. East Anchorage High School was recently named the most diverse school in the United States, followed closely by West Anchorage High School and Bartlett High School.

In 1992, the Anchorage School District reported that 29 percent of the student population identified with a minority group. Today, over 55 percent of the student population is identified as minority, and more than 25,000 students identify as Nonwhite with Asian or Pacific Islander making up the largest percentage at 15%.

In response, the interest and popularity of cultural and language immersion programs hosted by the district continues to grow and have added a new facet to engaging students in the globalization of Anchorage’s economy.

“ASD strives to provide a culturally responsive environment where students, staff and families can develop mutual respect

and understanding,” said ASD Superintendent Ed Graff. “With more than 90 languages spoken by ASD students, students have the ability to interact with peers from many different backgrounds, expanding their knowledge of other cultures and preparing for life in a global society.”

Meanwhile, the University of Alaska Anchorage has continued to incorporate more of an international focus that’s seen in the athletes they produce, and the implementation of culturally diverse programs. The university continues to increase its appeal to students from around the globe. For example, at the UAA College of Education there are classes on culture and a growing number of classes that teach ESL, multicultural studies, counseling diverse populations, comparative education, and culturally responsive teaching.

As student profiles continue to diversify, these students will continue to contribute to Alaska’s economy. Alaska’s more than 600 foreign students contributed $14.3 million to the state’s economy in tuition, fees, and living expenses for the 2011-2012

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academic years, according to NAFSA: Association of International Educators.

The Demands for Affordable Housing

One of the biggest challenges for immigrants is affordable housing, as rental vacancy rates hover at below 2% and home prices continue to rise.

As Anchorage attracts new cultures and embraces a growing diverse population, unprecedented challenges arise in the housing market outside the financial barriers.

Religions, such as Islam, forbid the paying of interest. Within the last five years the Muslim community in Anchorage has grown substantially as Indians, Sudanese, Somalians, and heavily dominated Muslim cultures make Alaska their new home. Due to their inability to pay interest, this forces many members of this emerging community in Anchorage to continually pay rent for housing.

As a result of the historically low vacancy rates in Anchorage, rental prices have remained high. In the rental market, a one bedroom apartment cost $862 a month and a two bedroom was renting at $1,104 a month. For bank tellers, child care workers, and hairdressers, about half their monthly income could go to rent. This creates significant challenges for some new arrivals,that tend to move in large families. “It’s not uncommon for a family of seven to be living in a two bedroom apartment,” said Amhed Omar, a Somali community leader.

“We came to Alaska for a better life and to provide for our family, but Anchorage needs to improve its current resources for the minority community.”

– Maggie and Arthur Yang, Hmong Community, Owners of Oriental Express

However affordable housing hasn’t just become a low income problem in Anchorage it is beginning to impact middle income According to the Center for Housing Policy, in 2013 Anchorage was ranked at a staggering 27th in the nation for the most

expensive metro areas with the average home price reaching $255,000. That’s 35% higher than the national average, meanwhile the annual income needed to qualify for a loan for an average priced home is over $67,000 per year.

“In 2013, Anchorage was 26 percent

“There’s a growing number of Filipino entrepreneurs and business owners. The opportunities are more and bigger businesses in 10 years.”

“When you pull up to a stop light look left and right, you’ll see the diversity just at the stop light. In the 90’s it wasn’t as diverse.”

– Leticinia Tadina, Filipino Community, Treasurer of Asian Alaskan Cultural Center

– Mao Tosi, Polynesian Community, Founder PRIDE

“These upcoming communities, we need to work together more to learn and develop ourselves.”

“There’s a lot of potential for minorities to own businesses in Alaska.”

– Paul Moon, Korean Community, Vice-President of Asian Alaskan Cultural Center

– Neil Bhargava, Indian Community, President of Asian Alaskan Cultural Center

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Taking PRIDE in the Community

Tosi tackles youth issues following football career Anchorage has a growing diverse population, and the benefits to our education system are becoming more and more evident. Yet Anchorage’s youth have limited options for after school programs due to lack of funding. In a recent statewide survey of teachers, the lack of quality before and after school programs was identified as a barrier to student performance.

When Mao Tosi’s injury ended his professional football career, he returned to Alaska with the intention of giving something back to his community. As a football and basketball standout at East Anchorage High School, Mao watched as hundreds of young Alaskans fell through the cracks.

Though born in Samoa, Mao’s Alaska roots are deep, here he recognized that the most rewarding way to do good was to inspire the young. He wanted kids of all ages and even adults to embrace and promote the growing diversity within Anchorage schools.

This lead to the creation of PRIDE. PRIDE is a youth-oriented program revolving around school clubs. It is built on a foundation of peer mentoring, teen leadership and academic support held together by common interests.

Numerous local businesses have jumped behind PRIDE’s mission. Founded in 2005, the non-profit organization works with Alaska’s youth to fight gang activity, suicides, substance abuse and the dropout rate. PRIDE, an acronym for “People Representing Integrity and Diverse Experiences,” is dedicated to connecting to the state’s young people with success by promoting their talents and looking to the future.

PRIDE uses music, art, dance and athletics as incentives to motivate leadership opportunities in Alaska’s teens. In return for community service, vocational training and academic excellence, PRIDE connects the teens with adult mentors and opportunities to perform and display their talents and works.

“I think we can change the community and bring together friends and family,” said Mike Bialy of the Bethel Regional High School PRIDE group.

PRIDE fits well with the Anchorage Chamber of Commerce initiatives that celebrate diversity and supports healthy community programs.

“We have kids from all ethnicities and cultures; Polynesian, Hmong, Sudanese, Hispanic and others,” said Tosi.

Tosi continues to expand and reach out to Alaska’s youth through different PRIDE programs. One of these is PRIDE Tour, which gives young people an opportunity to expose their talents such as break-dancing, choreographing, singing, performing, photography and poetry readings among others.

But it is much more than a dance or music group. It is a way to meet new friends and become a leader with the opportunity to develop artistic talents and build strong foundations for life after high school.

“Being in Alaska PRIDE has helped me gain so much confidence in myself and to care less what others think of me and my voice,” said Niko Manu, a member of the East High School PRIDE group.

There are over 200 students from across the state that participate in PRIDE such as Nyamat Bichio, a member of the West High School PRIDE group.

“My involvement has been a great leadership opportunity for me,” she said.

Nyamat helped start the group SCubed, which stands for Southern Sudanese Sisters, after a multi-cultural assembly and her continuous involvement with PRIDE. By fostering a safe and positive environment for Alaska’s young and emphasizing the importance of education and leadership, the kids become engaged and optimistic that they too will have successful and rewarding careers.

“We’re here to help strengthen their futures while they’re chasing their d r e a m s ,” Tosi said.

more than the national average cost of living, making our city the 23rd most expensive city in America to live,” said Bill Popp President/CEO of Anchorage Economic Development Corporation. “To put that into perspective, Seattle was only 19 percent over the national average. The high cost of housing is a significant contributor to our very high cost of living.” Popp said that while he understands there are different market forces at work in those cities, it should concern all of us that we pay more for housing than dense, highly populated urban areas.

Another associated benefit to affordable housing is the economic development that occurs around redeveloping neighborhoods. In Mountain View, after Cook Inlet Housing began investing in the neighborhood, the area has enjoyed a renaissance of economic interest. Over the last few years, businesses including Credit Union One, GCI, new medical offices, new restaurants and a growth of new tenants in the Glenn Square Mall, including Bass Pro Shop.

“Any solutions to this issue will result from a public private partnership between developers and the community of Anchorage,” said Popp. “Until we can carefully develop strategies and solutions that encourage developers to make the investments necessary to solve this problem, the situation will only grow worse in the next few years.”

Realizing the Dream in Anchorage

There are many opportunities that come with the challenges faced by emerging cultures. In Alaska there is little doubt of what immigrants contribute to the state’s economy. From 2006 to 2010 there were 3,394 new immigrant business owners and by 2010, 10% of all businesses in the state were owned by foreign-born or first generation Alaskans.

The new immi-

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grant business owners had a total net business income of $160 million, 7.8% of all net business income in the state.

In 2009, 33% of all science, technology, engineering, and mathematics graduates from the state’s universities were foreignborn. The growth of the Nonwhite population buying power in Alaska has been estimated by the Immigration Policy Center to be significant. The IPC estimates that Asian buying power has increased 470% since 1990 and that Asian-owned businesses had sales of $477 million and employed 4,219 Alaskans. The IPC also estimates that Hispanics have a purchasing power of $1.3 billion and Asian buying power is $1.7 billion.

Joe Samaniego, an immigrant from Mexico who owns ACE building and Maintenance in Turnagain said, “Many people come up here and stay because they fall in love with the state and the many business opportunities.”

The promise of “One Anchorage, One Economy”

Since January, community leaders from seven different emerging cultures have begun gathering together to share their ecoAK-AA_140500_ALYESKA PIPELINE.indd nomic challenges and work across cultural lines to find alignment on issues from education to affordable housing. “Our goal is to become an economic bridge builder between our members, our diverse ethnicities and the promise of economic opportunity for all,” said Andrew Halcro, president of the Anchorage Chamber of Commerce.

Paul Maleehuan, a former missionary from Thailand, turned Alaskan entrepreneur said, “Anchorage is beginning to provide a rich environment for these minority communities to engage in the business aspect, but there is still more work to be done.”

Globalization has brought the world to Anchorage’s doorstep and with it numerous and stronger opportunities for prosperity for all Alaskans. It is a wonderful time to be in Alaska as more and more peoples from around the world recognize the state as the land of opportunity. As Maureen Swartwood from Fiji, co-owner of M.J. Heenna on Northern Lights said, “We have so many dreams, but this one has come true.”

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advocacy in action

Celebrating the changing face of Anchorage

By Andrew Halcro President, Anchorage Chamber of Commerce A few weeks before we went to print with this issue, controversial comments were made by a candidate for public office regarding Anchorage’s growing diversity. The comments brought to the public’s attention the issue of the changing demographic landscape in our community, which makes our Spring issue of Advancing Anchorage Magazine even more timely.

The face of Anchorage is changing, and we need to celebrate that fact. The eco-

nomic contributions of our newly arrived neighbors are having a profound effect on the local economy. Over the last decade our community has welcomed immigrants from Asia, the Pacific, Africa, Europe and South America.

The main thrust of the recent dialogue surrounding immigrants is centered around the economic costs to taxpayers. The assertion is that Anchorage and the local economy is being swamped by newly arriving immigrants who are driving up cost to taxpayers. This simply isn’t true.

In a recent presentation to the Anchorage Chamber of Commerce’s Business Com-

mittee, Karen Ferguson who serves as the Alaska refugee coordinator and Refugee Assistance and Immigration Services program director, said Alaska has the second-lowest participation in the U.S. refugee program of any state. None of the new arrivals get to choose Alaska, as that is determined by federal agencies. In Anchorage, these new arrivals are helped along by Catholic Social Services — a local network of nonprofit organizations run by the Archdiocese of Anchorage — and its Refugee Assistance and Immigration Services program.

In addition, these new arrivals often outperform other groups and make a posi-

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tive economic impact on the city. Ferguson said 75 percent of adult refugees have a job within six months of their arrival in the U.S., and more than 75 percent of refugee families are off welfare within the first 12 months.

According to the Immigration Policy Center, in the 2011 American Community Survey, there were 711,920 people in Alaska of whom 6.9% were immigrants.

Among children under 18 years old, 11.4 percent had one or more parent who was an immigrant, and 86% of those children were U.S. citizens.

Meanwhile the growth of the Nonwhite population buying power in Alaska has been estimated by the IPC to be almost four billion dollars per year.

The IPC estimates that Asian buying power has increased 470% since 1990 and that Asian-owned businesses had sales and receipts of $477 million and employed 4,219. The IPC also estimates that between Alaska’s Hispanic and Asian populations combined, generate over $3 billion a year to Alaska’s economy.

This spending power touches everything from education to commerce. Currently, over 600 immigrant students attend Alaska’s University System, and contribute over $14 million annually. In 2009, one third of science, technology, engineering, and mathematics graduates from the University of Alaska system were foreign-born. There is no question that immigrants are helping grow the local economy. With senior Alaskans remaining our fastest growing demographic, the need to welcome and integrate young immigrants into both our education and economic systems is critical.

For the last few years, the Anchorage Chamber of Commerce has adopted diversity as one of our key focus areas. Recognizing and respecting the fact that we are truly One Anchorage, One Economy is essential

in promoting Anchorage as a great place to live, work and play. This initiative is to promote Anchorage as a dynamic and inclusive community, where access to opportunity is equal and we strengthen the local economy by strengthening our community.

According to Richard Florida, American economist and social scientist at the University of Toronto, America’s “Creative Class” (today’s younger workforce demographic) will be the leading force of growth in the future economy, expected to grow by over 10 million jobs in the next decade. This Creative Class includes almost 40 percent of the current population.

For Anchorage to attract the Creative Class, Florida argues, it must possess “the three ‘T’s”: Talent (a highly talented/educated/skilled population), Tolerance (a diverse community, which has a ‘live and let live’ ethos), and Technology (the technological infrastructure necessary to fuel an entrepreneurial culture).

If we want to insure

that Anchorage remains a dynamic city, we must cultivate the three T’s, while understanding that embracing diversity is an important bridge to a healthy community and economic vitality.

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industry news

With Alaska at crossroads, Voting No on 1 is a must

By Anchorage Chamber of Commerce Alaska stands at a crossroads. In August, we will decide at the ballot box whether to return to a failed oil tax system that contributed to declining North Slope production and shrinking state revenues — or to keep our new tax aimed at spurring production and softening the fiscal blow to the state treasury.

The choice is obvious. The new tax structure is necessary to promote businesses and job growth and prosperity in Alaska. It is necessary to stabilize state revenues and ensure economic growth.

Returning to the old, complicated tax, Alaska’s Clear and Equitable Share, would be a disaster for Alaska businesses, large and small. We might as well hang out a “Closed for Business” sign. The effects of reduced North Slope investment under ACES, coupled with softening oil prices and declining production, would be felt like a tsunami through Alaska’s economy.

Alaska, after all, is a state heavily dependent on oil. Our economy would be about half the size it is without oil. It accounts for a third of the state’s jobs, and each industry job spins off at least nine others. About 90 percent of state government revenues come from oil. It even funds the Permanent Fund.

The primary problem with ACES was that it did nothing to promote drilling for new oil on the North Slope. ACES’ incredibly high tax rates stymied new oil investment, which went elsewhere, and production continued to slide. While such investment was going up everywhere else in the nation, it fell here.

Nowadays, the trans-Alaska oil pipeline, which at its peak moved 2.2 million barrels a day from the North Slope to Valdez, carries only about 500,000 barrels and that amount is dwindling at up to 8 percent a year. Alaska has fallen to fourth among oilproducing states.

ACES was so bad — production fell each year it was in existence - that Democrats and Republicans alike in the Legislature agreed it needed changing. After countless hours of committee hearings and debate and public testimony, the Legislature finally adopted a simpler tax, with an increased 35 percent base rate and incentives for increased production and investment.

Now, we finally have a tax that is fair to the industry and fair to the state.

Repeal proponents say the new tax is a “giveaway,” but that is not true. Beginning with the new fiscal year in July, it will bring in more tax revenues for state government than ACES, which contributed to a crippling marginal tax rate of more than 90 percent at higher oil prices. Today, those kinds of prices - in the $140-a-barrel range — are seen as things of the past; experts say prices will hover near $100 a barrel or less.

They also blame the $2 billion state deficit on the new tax structure. The revenues

are lower because oil prices around the globe have fallen and production declined.

The actual amount of revenue the reform is costing, state Revenue officials say, is about $200 million out of a general fund budget exceeding $6 billion.

Repeal proponents conveniently ignore the possible, if not entirely probable, production increases the new tax will spur.

Those will mean increased revenue for the state and an economic boost. That means jobs and growth and stability. Already, the North Slope industry is responding to the new, sensible tax climate, planning billions in new investments — as much as $10 billion over the next decade.

Here is what we know: Production and revenues declined under ACES. A return to ACES would only guarantee more of the same, something Alaska can ill afford, and the new tax appears to be working, spurring investment. Increased production likely will follow. Why anybody would want to return to ACES is mystifying.

The Anchorage Chamber of Commerce has joined with the more than 200 businesses, labor organizations, community groups and countless individuals working to oppose the idea of repealing something that is working in favor of something that demonstrably has not.

Voting No on August 19 is critical for Alaska’s future. It may be the most important vote Alaskans have cast in 40 years.

Along with business leaders from across the state, we intend to work hard to ensure voters make the right choice

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business & government

Collaboration Needed On Transit Center Move

By Anchorage Chamber of Commerce After four decades of being nestled in the heart of downtown, the Municipality of Anchorage has put forward a proposal to move the People Mover bus transit center to a more centralized location in Midtown.

The logistical benefits for riders, and the cost benefits to the Municipality are easily recognizable with such a move, but the effects on downtown and mid-town businesses remain to be understood.

The People Mover bus system is a critical transportation link for the Anchorage economy. Studies have shown that 27 percent of Anchorage households do not own a vehicle. Every year, almost four million passengers a year utilize our public transportation system, which provides an affordable means for employees and families to traverse our community. In addition, People Mover carried 45,000 bikes last year, allowing riders to have greater freedom once they’ve arrived at their destination.

The economic reasoning for moving the bus transit center are solid. Currently the People Mover hosts fourteen routes through the Municipality, thirteen of which pass through downtown. Forty years ago, the downtown location was a sensible choice. Today, with the significant retail and population growth exploding south of

Tudor, mid-town Anchorage has become the most logical place for a transportation hub. A more centrally located facility will improve connections between routes, allow cost savings on fuel, while providing more timely access to businesses, professional services and the library.

However, while the proposed move makes sense for the Municipality and riders, there are legitimate concerns from businesses on both sides of the move.

In the 1970s, a young realtor named Mark Korting was earning his license as the commercial growth was beginning to take hold in mid-town.

“When I got my real estate license, they were filling in Blueberry Lake to build the Carrs grocery store,” Korting recalled.

Over the last 40 years, he has seen tremendous growth in the Midtown area, including the recent construction of his own gleaming Remax/Dynamic headquarters located on A Street.

With most of the large parcels having been developed in Midtown, the exact placement of the bus transit center has area business owners in the dark. While the specific parcel of land hasn’t been identified, the Municipality has asked the state legislature for $8.2 million for site selection, land acquisition, design and construction.

Business owners feel the process is moving too fast without inclusive conversations.

Concerns about the influx of transients in Midtown, at a time when more public safety issues are emerging in the area, are a legitimate concern.

In downtown, business owners also have concerns, albeit of a different nature. Many are worried that access to downtown will

be negatively affected by the departure of the 6th Avenue transit center. Currently a steady stream of passengers disembark downtown to shop, eat and enjoy civic activities.

With cost pressures of building the new transit center, and the history of budget cuts reducing bus routes, downtown merchants worry about not being the anchor of Anchorage’s public transit center.

In addition, they point to the fact that the Anchorage Downtown Comprehensive Plan recommends the Municipality undertake a Transit Center Relocation Feasibility Study to determine the best location within downtown, which has not been done.

The original comprehensive plan specifically recommended a 3rd Avenue location to leverage the Alaska Railroad Depot location and the potential for commuter rail service. The transit proposal comes at a time when downtown merchants are already feeling their voice is not being heard.

One of the consistent challenges for the private sector, is when government agencies act unilaterally on a major decision without any dialogue with stakeholders. If the bus transit center is relocated to Midtown, it will have a 40-year footprint on the area.

While the reasoning of moving the bus transit center has merit, fairness demands that both Midtown and downtown business and property owners have a seat at the table to fully understand the economic consequences.

If designed and planned properly, with collaboration of local business owners and a clear vision from the city, relocation of the transit center has the potential to benefit Anchorage.

Photo/Michael Dinneen/Alaska Journal of Commerce

A proposal has been made by the Municipality of Anchorage to move the People Mover bus transit center from Downtown to Midtown.

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Alaska’s fiscal future

By Melissa Reiser Vice President, First National Bank Alaska What does a healthy Anchorage economy mean to you? Quality schools, family parks, well-paying jobs, safe streets? Without a healthy economy, the quality of life many of us enjoy in Anchorage will change.

Because our Anchorage economy depends on a healthy Alaska economy, we must continue to encourage Alaskans to

actively participate in meaningful discussions about our economy and what it will take to keep it strong.

But, before we talk about where Alaska’s economy is going, let’s take a quick look back to see where it’s been.

In the two decades after Alaska became a state, the reality is it wasn’t all that good. Our economy was pretty simple — small, thin, and seasonal.

Total employment, averaged over the year, was about 90,000 jobs.The state had

little money to spend on social services, infrastructure or education. We paid income tax and there were no Permanent Fund Dividends. Most social service support was furnished by volunteers.

Since then our economy has changed, to say the least. Economic growth since statehood has been sensational when measured by raw numbers — jobs, personal income, and population. By 2012, employment has increased by more than 300 percent from 90,000 to 380,000 jobs.

Income, in constant dollars, has increased even more rapidly, from $3 billion to $28 billion, and population has tripled. Not

Photo/Adam Elliott/For Alaska Journal of Commerce

t u o b A n r Lea y m o n o c E s ’ Alaska e h t n i o J d an Discussion

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Photo/Adam Elliott/For Alaska Journal of Commerce

“We’re all affected by what happens in Alaska’s economy. We all need to be part of the decision.”

only is the economy much larger today, its strength is reflected by the fact that Alaska weathered the recent national recession much better than most of the nation.

What accounts for all this growth?

Federal spending plays an important role, of course, contributing to about one-third of those 380,000 jobs. Natural resource extraction industries, such as mining, seafood, agriculture and timber, along with the tourism and air cargo industry, make up another third. Those are two legs of Alaska’s economic threelegged stool.

So what’s the third leg of the stool? It’s no surprise to anyone who’s lived here for any length of time that the petroleum industry is a major economic driver in our state, and the critical third leg to our economic stool.

Today revenue from the petroleum industry funds a full 85 to 90 percent of the State of Alaska’s General Fund. That money pays for a myriad of state services, many vital to our quality of life. State of Alaska money from oil royalties also funds tax credit programs that help encourage economic diversification in industries like tourism and film-making. Even more jaw-dropping one out of every three jobs held by an Alaskan can be traced directly to the petroleum industry. Those two kinds of spending create jobs in every corner of Alaska.

But there are many more economic benefits from petroleum than just the jobs generated and the expenditure of revenues, benefits that have both strengthened and increased the size of the other two legs of the stool. Without petroleum not only would there be just two legs, but those legs also would be considerably shorter.

And the addition of the petroleum industry has brought stability to Alaska’s economy, taking us out of the “boom and bust” cycle that burdened the state for years.

Today, we stand at a crossroads concerning our economy.The road we travel down is a discussion in which every Alaskan should participate. To do that we all need to learn about the economic factors we face.

Oil production in Alaska has been de-

clining since 1989. That decline has been masked by high oil prices during the world economic boom. But that boom is definitely over. Price is not predictable, but production is.

The pipeline is currently less than onethird full and the volume of oil flow is declining at a rate of 6 percent a year.

The experts say it will have to be shut down before it’s completely empty.

With royalties from the pipeline funding almost 90 percent of Alaska’s General Fund, there is not enough time to diversify our economy in a way that will replace the huge income stream that oil in the pipeline provides to our state.

When it’s gone, what will state government do for money?

More questions like these need serious discussion: How can we stabilize and increase production? Do we focus on short-term gain or long-term goals?

There are many, many more.

We live in Anchorage because of the superior quality of life we enjoy. Sustaining that quality for us and all Alaskans depends on the decisions we will make in the next few years. The more we know about our economy, the better informed those decisions will be. So learn about it. Understand it, and join the discussion. You can do that at AlaskasEconomy.org and on the Alaska’s Economy Facebook page.

Talk to your neighbors and friends.

We’re all affected by what happens in Alaska’s economy.We all need to be part of the decision.

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Signs of Spring, Signs of a Positive Year in Tourism

By Julie Saupe President/CEO,Visit Anchorage How can you not love springtime in Alaska? The long, bright days and the promise of even longer ones yet to come provide a sense of energy and change.

For me, spring is marked by the ritual of placing my folding camp chairs back on the deck — even before the last of the snow is gone — and moving my skis from the house entry back to the garage.

It is these activities that tell me lawnmowers, dirt in the fingernails and roasted marshmallows are not far behind.

The change in seasons marks a shift in activities for those of us working in travel as well. A winter focus on helping consumers plan, educating trade on our destination, and booking future conventions shifts to welcoming summer visitors to Alaska.

For many in the travel industry, spring is also signaled by increasingly longer days at work ensuring all of the pieces, parts and people are in place to meet the demands of our peak visitor season. Visitor industry owners and operations employees know that a successful “ramp-up” in spring is critical to success in the peak summer season.

It is during this time that the questions on everyone’s minds begin to get answered, although never with the clarity we would like: • How many visitors can we expect and

how many staff will I need?

• How will visitors travel and how long will they stay?

• What services will they need and…what will they want to purchase?

And while our crystal ball isn’t always crystal clear, there are some early indicators that provide insight to future expectations.

Well ahead of most indicators, we must first look at the economies of our largest visitor markets: the United States, Australia/New Zealand, the UK, German-speaking Europe and Japan.

These markets feeding Alaska’s tourism industry are generally doing well, with stable or growing disposable income and personal wealth.

Next we turn to the early sellers of travel — airlines, cruise lines, travel agents, tour operators and to a lesser extent, accommodations. Early indicators and forecasts from these industry sectors are also positive.

Capacity for air travelers is stable, with some added frequency to domestic markets and continued international service, including from relatively new carriers. These international flights are expected to have increased passenger loads; travelers and marketers have had more time to learn about these new routes and put them to use.

While still less than 15 percent of all visitors to Alaska, overseas visitors tend to stay longer, visit more areas, and spend more money while in our state than our domestic passengers.

We will see a slight reduction in cruise berths for 2014, but there is some good news for Southcentral Alaska on the cruise front as well. Many of the cruise-tour itineraries are changing, with some additional time allotted in Anchorage. Another positive development over the last two to three years is something that is not happening.

During recessions and in declining visitor

years, cruise lines must often offer deep discounts to fill their ships. Steep discounting has not been part of cruise sales this year: another good indication of the “quality” of the visitor we can expect. Rather than the bargain traveler, we can expect a traveler that is more willing (or able) to stay longer and purchase up.

Hoteliers confirm that, generally, yearover-year bookings are favorable for 2014, particularly as we look to mid- and late summer patterns. You may have read the recent article in the Anchorage Daily News about three new hotel properties under development for Anchorage; this is another indicator of the strength of the visitor forecasts.

In addition to transportation and hoteliers, we also look for patterns in requests for destination information and visitors guides.

Visit Anchorage’s website, www.Anchorage. net, has seen a 74% increase in traffic and an 18% increase in requests for Anchorage Visitor Guides year-over-year through March.

In addition, personal visits with travel agents and tour operators over the past year invariably lead to the conclusion that these key travel sellers are receiving more and more requests for Alaska from their clients.

Considered as a whole — and in light of many other conversations with visitor industry businesses of all sizes and sectors, I am quite optimistic about this year’s summer visitor season — and even more so for 2015.

As those of us in the visitor industry transition from our winter and spring work to our summer duties welcoming visitors with a smile and a thanks for coming, I encourage all Alaskans to make time to become visitors in our their home state this summer.

Whether it’s a weekend getaway off the road system or a visit to one of our amazing parks, you might discover a new favorite place and new ritual to add to your year.

Photo/Kris Valencia/The Milepost

tourism outlook

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school business partnership

Alyeska Pipeline steps up for Russian Jack students Employees lend support to ‘their kids’ Russian Jack Elementary is an East Anchorage Title I school with multiple programs that depends on the support from Alyeska Pipeline employees to enhance the success of our students academically and socially.

For many years, Alyeska’s Anchorage corporate campus was on the corner of Bragaw and East 20th Avenue, just blocks from Russian Jack Elementary School.The proximity of the two organizations led to a natural partnership. Alyeska employees did a lot for the school and the students.

Then in 1999 over the winter break Russian Jack elementary school burned down.

Alyeska employees spoke up and stepped up for “their kids” offering to the school board office space to be used as classrooms. The kindergarten and a few other younger classes of students attended school at Alyeska until a new school was built.

The experience of having the students in their midst every day, forged an even stronger bond between Russian Jack Elementary and Alyeska employees. The relationship was formalized via the School Business Partnership program and now Alyeska and its employees do many things for Russian Jack students. These activities connect employees to the school where they help the kids be successful and broaden the students’ horizons.

“The support Alyeska provides allows

Russian Jack student’s opportunities that they may not get in any other way. They are more than a face at Russian Jack; they are a vital part of our school community and school culture! Alyeska employees feel that they are not ‘Russian Jack Students,’ but all of OUR students. With their support, we have made AYP (Adequate Yearly Progress), are an Anchorage School District 4-star school. Together enhancing the lives of children each day!” said Principal Elizabeth Hornbuckle.

PAIRED Reading Program: Each school year approximately a dozen Alyeska employees are released from work to volunteer one hour of time a week as a reading tutor for students. This is a win/ win program. The students get the help they need to improve their reading skills and build connections with caring adults.

The Alyeska tutors are encouraged by the improvements they see and the interactions they have each week.

Super Citizen Lunches: Four times a school year a group of students who are identified by their teachers to be “super citizens” who are “Respectful, Responsible, Safe and Kind” are transported to Alyeska’s new office building for a special lunch of pizza and cookies in their hightech conference room. The kids learn about the pipeline and what it does for Alaska. It is a great recognition program that inspires kids to be their best and it exposes the students, many of them

from low-income families, to the corporate world. The school principal reported that after one of the recent lunches, one student said to her, “I want to work here someday.”

Thanksgiving Dinner: (for 16 years and counting)-Russian Jack is a Title I school which means that a large portion of their student population lives below the poverty level. Over 16 years ago, Alyeska employees realized that many of the students wouldn’t have a real Thanksgiving dinner. The employees decided to do something about it and provided dinner. It has now become an important tradition.

Alyeska contracts with a local caterer to provide a holiday meal of turkey and all the trimmings for lunch on the Tuesday of Thanksgiving week. About 15 Alyeska employees volunteer to serve the meal.

The students are grateful for the festive food and share that thanks, often commenting to Alyeska employees throughout the year about the delicious turkey Holiday Cookies and Songs: Out of a winter ice storm came a new partnership activity with Alyeska. Employees bring holiday cookies and milk to Russian Jack during December and sing holiday songs with the students.The students and staff look forward to this Holiday cheer!

Bike Rodeo: At least 14 members of the Alyeska safety team helps Russian Jack students each year with bike safety. Kids bring bikes to school and safety team

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“The support Alyeska provides allows Russian Jack student’s opportunities that they may not get in any other way.They are more than a face at Russian Jack; they are a vital part of our school community and school culture!” — Principal Elizabeth Hornbuckle

employees ensure the bikes are in good working order and teach the kids how to be safe on their bikes. They have also donated helmets and Alyeska keepsake reflectors to keep the kids safe when riding!

They also collaborated with the ASD School Resource Officers when presenting the “rules of the road”.The bike safety course is the final challenge for students to show that their bike is road ready!

Halloween Carnival: Alyeska employees provided allergy-free/healthy snacks, toothbrushes, and trick or treat bags for the Halloween Carnival that had 400+ in attendance.About 20 Alyeska employees volunteered for the night of the carnival and decorated classroom doors and distributed the treats! The volunteers were the hit of the night with their festive spirit and holiday attire!

Safety Volunteering: Alyeska volunteers can be found out front of Russian Jack assisting with the morning and afternoon routine for students.The employees come during the busiest times of the year when all extra adults are needed! They support first weeks, last weeks and transitions to holiday breaks. They not only are a warm and welcoming adult they also ensure students and our staff stay safe. This year the Alyeska Safety Team is donating additional safety vests (as our staff has grown from the first donation) to all adults so they can be visible and safe during our long dark winters!

Russian Jack Family Nights: As a Title I school, Russian Jack Elementary works to educate parents on ways to support their child. Alyeska has taken that a step further and has worked on ways to educate parents on career possibilities

and ways to reduce/reuse/recycle! Russian Jack Family Services coordinators has said, “The visual displays quickly engaged families and further educated our community on Alyeska’s mission!”

Other support: Alyeska employees are more than just a “business partnership” they are part of the Russian Jack Family. They do other regular support including: financial support to purchase Kenwood Radios for staff safety communication, supports Teacher Appreciation Week, provides busing and admission for over 150 staff and students to attend the Young People’s Concert, and assists at school award assemblies. Alyeska also includes the Russian Jack Principal at community events such as the 21st annual Breast Cancer Focus Luncheon to help build community-wide relations.

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chamberology

How to begin a winning partnership

By Patrick H. McGaughey, CPF Activatingpeople.com Throughout my career in organization management I would be approached by volunteer leaders suggesting that we partner with other organizations for one purpose or another and I

soon came to realize these requests were seldom thought through. After I matured in this business I came to realize that most of the requests weren’t so much for partnerships as they were for alliances or simply creating a brief association with another organization to further a cause.

In business the word partnership infers things like a long-term relationship and equal shares in the profits and losses.

In the world of non-profit organizations (NPO’s) autonomy is king until we need help and then the need for help is usu-

ally for a temporary problem or issue. I learned to be careful in using the term partnership when approaching others when what we usually wanted was a short-term association or alliance. Therefore, the first step in searching out a partnership is asking yourself what you really want; a partnership or an alliance.

When it’s a true partnership I want to create, my first step is to review the alpha and omega of any partnership which is trust. Even before I connect with a potential partner I do a gut-check. Do I honest-

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ly feel good about calling and discussing a potential partnership? Do I feel we will be subservient with the potential partner? Do I feel we need them more than they need us? Are the feelings positive or negative? If the answers build your trust or lessen your trust proceed accordingly because the potential partner will sense your faith or lack of faith immediately.

If the initial trust is there on your part and theirs, move to discussing the expectations both organizations should have in forming a partnership. Expectations are critical in motivating a great partnership. From the partnership of marriage to the development of a sports team or in creating a business partnership, most fail when expectations are not discussed and understood in the beginning.

How many married couples do you know that wish they could go back to the week before their marriage and ask the questions, “Honey, before we do this just what exactly will you expect from me?

And oh, by the way, what do you think I will expect from you?� As you can imagine, there could be some deal-breakers in there but isn’t better to find out before the commitment?

The problem is that most are so much in lust, excuse me, in love that it either blinds them or holds them hostage to the truths they all need to know. We simply can’t allow desire and affection to interfere with establishing honest expectations which are the foundation of a great partnership.

Once you have discussed one another’s expectations of the proposed partnership, go back to your gut. If this was a smooth, productive and honest process for both sides, your trust factor has to be positive. It’s not a guarantee but it is an indication of a successful partnership.

If, on the other hand it was uncomfortable, only somewhat productive and a disingenuous process I would recommend following my gut feeling and postpone the concept of a potential partnership until a more productive timeframe allows it, which will probably be never.

The truth hurts for a short time where a lie usually lasts forever.

Start with trust and expectations before creating a partnership.

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Independent Contracting: It’s My Business

By Cassidy Davis Account Executive, MSI Communications It’s My Business” is a coalition of individuals and organizations dedicated to supporting Anchorage residents and more than 10.3 million people nationwide who work for themselves as independent contractors.

Often, when we hear the term “independent contractor,” we think of the construction business, but an independent contractor is simply an independent businessperson.

You have probably done business with an independent contractor if you’ve worked with a local plumber, landscaper, attorney, accountant, real estate agent, photographer, barber or hairstylist, or software engineer.

Independent contractors are an important part of Alaska’s workforce and economy, yet their role as job creators often goes unrecognized. More and more Alaskans are finding that independent contracting is a great choice for them and their families.

As an independent contractor, individuals may dictate their working hours to accommodate family life while also running a successful business.

It’s My Business has become an impor-

tant advocacy group for independent contractors. Chaired by former Sen. Blanche Lincoln of Arkansas, It’s My Business gives an identity to those who work for themselves and want to protect the independentcontracting model.

Believe it or not, some special interest groups are against Alaskans working for themselves. There are proposed changes to laws that could make independent contracting unlawful or highly restricted, forcing many Anchorage residents to close their businesses and fire employees.

Specifically, state and federal agencies are attempting to prohibit companies and organizations from working with independent contractors. Additionally, small-business owners who enjoy working as their “own bosses” may be forced to work as employees instead.

It’s My Business is working to protect our right to work and our right as consumers to hire the people we want. Or a law making it illegal to hire a house painter who doesn’t work for a corporation?

If the efforts of special interest groups succeed, the negative impact on Anchorage’s economy could be catastrophic, resulting in the loss of jobs, economic downturn and a significant disruption in important services.

At the federal level, President Obama has arranged through his budget for the IRS to raise federal taxes on Anchorage’s smallbusiness people through the reclassification

of independent contractors as employees.

In addition, U.S. Department of Labor is spending nearly $2 million to make it more difficult for independent contractors and companies to work together.

Not only does this attack on independent contracting threaten employment, threaten businesses and threaten to reduce services that our community depends on, it is also a threat to our economy. President Obama’s efforts are driven by a desire to raise more federal tax revenue, but creating laws that attack our independence and limit our ability to work hurts the economy. It’s My Business is fighting here in Alaska and throughout America to promote a healthy, expanding economy by protecting people’s ability to work.

It is an essential component of the “American Dream” for people to have the right to start a business and work for themselves.

Anchorage residents should be doing all we can to protect our rights, fuel our economy and support small-business owners, many of whom are independent contractors.

If you are interested in helping to support independent contracting, please visit www.itsmybusiness.com and sign up to be a member of this important movement to protect the rights of Alaskans who work for themselves. You can share your personal story and read the personal stories of independent contractors.

©Shutterstock/ Krivosheev Vitaly, Shutterstock/Dmitry Kalinovsky, Shutterstock/Andresr

your business

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business leader profile

CEO Q&A With Brian Franklin Brian Franklin is CEO of Frontier Tutoring LLC, Anchorage’s largest local educational services brand. Brian leads Frontier’s business unit operations managers, and he has primary responsibility for the company’s marketing, finance, and strategy functions.

He currently serves as a member of the Anchorage Business Committee for the Anchorage Chamber of Commerce, which is working to support the 90 Percent by 2020 initiative to improve Anchorage education outcomes. He also serves as a member of the Dean’s Advisory Board for the UAA College of Business and Public Policy.

Brian earned his Bachelor of Business Administration in Accounting from the University of Alaska Anchorage, where he graduated with highest honors. He has also been admitted to the Harvard Business School MBA class of 2017.

missions counseling. As an example of our success, when it comes to test prep, we’re the only company in Alaska to have an SAT prep team comprised exclusively of 99th percentile instructors, the only company to guarantee a 100 point score improvement, and the only company to transparently report our score improvement stats after every class. We’ve built a national-caliber SAT prep program designed just for Alaskans.

What landed you in the education business?

I originally fell into the tutoring business by accident in 2008 as a UAA freshman. We started to grow the business much more deliberately about six months in when we realized there was an opportunity to build something substantial and enduring. We realized Anchorage really needed a provider that delivered practical, high-value educational services with a local focus.

How many tutors does it take to tutor?

We have four full-time business unit managers and about 12 part-time Tutoring Specialists, many of whom come from the built-in talent pool at UAA. We work as a team and have made a conscious decision to staff our business with employees, not independent contractors.

If there were a tutoring center on every corner in Anchorage, what would set yours apart from the rest?

We’re Anchorage’s largest local educational services brand, offering academic tutoring, SAT/ACT prep, and college ad-

If you had to tutor Ferris Bueller, what would your advice to him be?

I like the hypothetical because it means we’ve opened up our first Chicago location.

After solidifying Bueller’s math and English fundamentals, I’d probably tell him to get serious about his future—then I’d tell him move to Alaska for college and a second chance at having a decent reputation.

We’ve had actors from Jack Black to Arnold Schwarzenegger to Edward James Olmos play teachers in the cinema. When is Hollywood going to make a movie about tutors?

I don’t know what tutoring’s chances are for Hollywood. But given Alaska’s film incentives and how many Alaska businesses are already the subject of reality TV shows,

it should be only a matter of time before our industry makes its debut on the small screen—I’ll be looking for The Real Tutors of Anchorage on cable in a few years.

How is Frontier Tutoring investing in our community?

We offer the most comprehensive suite of free, high-impact, Alaska-specific counselor resources of any company that operates here—things like educational resources on the college admissions process for Alaskans, free college counseling meetings through our North to My Future program, and school-based practice SAT/ACT testing. In addition, our involvement in the Anchorage Chamber of Commerce’s ABC Committee and our participation in the Anchorage School Business Partnerships program helps us contribute in new ways every year.

Does the fact that you were recently accepted into Harvard Business School’s MBA program mean you had a really great tutor?

I did have really great tutors and benefitted from some incredibly generous professors and business mentors who took the time to help me craft my career vision.

What’s next for Frontier Tutoring?

Our vision is to become Alaska’s largest, most respected, most effective educational services brand. We think we can get there by building and delivering the most effective product, hiring the best people, and staying on the leading edge of changes that impact our customers.

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ambassador of the quarter Advancing a Successful Business Network Matt Huffman, Alaska USA Mortgage Company The Anchorage Chamber’s Ambassador Council promotes membership within the organization while developing and expanding personal business networks.

Each quarter, one Ambassador is celebrated for his, or her, above and beyond service to the organization, helping the Anchorage Chamber advance a successful

business climate. We are happy to present the honors to Matt Huffman of Alaska USA Mortgage Company this quarter!

Matt Huffman joined Alaska USA in 2013 and says promoting positive relationships is key to his success.

“As a mortgage loan originator for Alaska USA Mortgage Company, it’s what I get to do every day,” he said. “Meeting with clients that have dreams of homeownership is rewarding. Working together, we find the right financing options that fit their goals and help turn dreams into reality.”

As a Chamber of Commerce Ambassador Council member, Matt enjoys being able to

interview new ambassadors, and share my passion for the organization: “Over the past year, I have been able to help plan, advertise and attend Business After Hours, Chamber Train Ride, Gold Pan Award Ceremonies and regular meetings. Each of these events provide an opportunity for individuals and groups to continue to strengthen the businesses in our area.”

Matt has truly invested in his membership and never hesitates to help the organization in its mission to advance a successful business climate.

Congratulations, Matt!

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ALASKA’S LARGEST PRIVATELY OWNED IT SUPPORT & SERVICES ORGANIZATION www.tekmate.net Anchorage Chamber of Commerce | 27 AK-AA_140500_TEKMATE.indd 1 AK-AA_140500_AMBASSADOR.indd 27

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advancing benefits

Volunteer to make the most of Military Appreciation Volunteers contribute greatly to the success of the Anchorage Chamber of Commerce, and there are numerous events throughout the year for you to participate.

During the summer months our focus is on our military.

The Military Appreciation lunch is scheduled for Monday June 23, 2014, at the Dena’ina Center. Over 400 people regularly attend this celebration, with a number of opportunities for volunteers to help make the event run smoothly.

The Military Appreciation Picnic is scheduled for Friday June 27, attended

by JBER service members and their families. Last year almost 8,000 military personnel and their families enjoyed hamburgers and hot dogs under a bright blue sky. The picnic features food, drink, entertainment and lots of activities for children, in a show of support for the military community. This requires close to 200 volunteers to pull off. The event is used by several member businesses, as both team building for their organization, and showing support for the women and men who serve our country and their families. The Military Appreciation Picnic not only brings people together, but is also the business community’s way of saying thank you for your sacrifice and service.

In addition to our signature summer events, the Anchorage Chamber fosters a strong relationships with the military year round. The Anchorage Chamber of Commerce has a standing Military Committee, which is open to all members.

The committee meets once a month,

to coordinate and plan military focused events, as well as get regular updates on the activities on JBER. The committee members are a collection of military, government and business leaders, working to insure our members understand the growing role of the military in Anchorage’s economy, and what lies ahead for our position as a strategic military location.

Getting involved with programs you care about connects you with the people and the information that will maximize

the value of your membership. To increase your businesses exposure, we encourage you and your employees to take advantage of the volunteer opportunities at the Anchorage Chamber. Getting involved is a great way for employees to network with other members while using their expertise and leadership to help make Anchorage’s economy stronger.

Get involved and you will surely make a difference. Get involved and you will surely see a difference.

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around town calendar

June 13-22 Daily Ship Creek Local: 907-277-4302 www.downtownsoupkitchen.org “Fish on!” is a phrase anglers hope to hear during the annual Slam’n Salm’n Derby.

Running through downtown Anchorage, Ship Creek is an urban fishing spot home to runs of king and silver salmon. Locals and visitors alike drop a line into the creek hoping to hook a king salmon and win cash and prizes. The event is a benefit for the Downtown Soup Kitchen.

Alaska PrideFest June 14 Noon-5 p.m.

Delaney Park Strip Local: 907-929-4528 www.alaskapride.org

Join us for entertainment and visit our vendors on the Park Strip for Alaska PrideFest celebrating Gay, Lesbian, Bisexual,and Transgender Pride in Anchorage. Everyone is welcome to enjoy this celebration as well as the Pride Events taking place the week before this event. Visit www.anchoragepride.org for all Anchorage PrideFest information.

Mayor’s Marathon & Half Marathon

June 21 Starting Times Vary Bartlett High School/West High School Local: 907-786-1325 www.mayorsmarathon.com/ Nearly 4,000 runners and walkers will travel to run the scenic trails of Anchorage at the annual summertime Mayor’s Marathon and Half Marathon. The event is timed to coincide with the summer solstice, when the longest day of the year brings 22 hours of functional daylight to the city. The event also has a four-person marathon relay, 5-miler and Youth Cup.

Polynesian Culture Flag Day Event

Polynesian food, dances, singing, arts, crafts, games and many more. Honoring our forefathers and our military families and love ones that have fought and those are still fighting for our freedom.

Anchorage July 4th Celebration Parade & Festival July 4 9 a.m.-6 p.m.

Downtown Anchorage www.anchoragejuly4thcelebration.com

Celebrate America’s birthday on July 4th in true Alaska style. This old-fashioned, patriotic celebration is complete with familyoriented events such as the pancake breakfast, downtown parade, picnic and other activities.

June 28 10 a.m.-5 p.m.

Anchorage Downtown Park Strip Rose Garden Delaney Park Strip between 9th and 10th avenues, Anchorage, AK 99501 Local: 907-250-4142 www.polynesianassocofalaska.com Ninth Annual Polynesian Culture Awareness Day. Celebrating our Polynesian Culture in Anchorage Alaska, bringing our culture and sharing with Alaska and Anchorage at no cost to the public, Free of charge. Celebrating our culture through

(July 4) Photo/File/AP

Slam’n Salm’n Derby

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chamber events

A

JUNE

Monday forum: Washington Update Sen. Mark Begich A

Monday, June 9 12–1 p.m.

B

Military Appreciation Luncheon: Dena’ina Center

B

Monday, June 23 12-1 p. m.

C

Military Appreciation Picnic: JBER

Friday, June 27 8 a.m.–3 p.m.

JULY

Business after Hours – TBD

Monday forum: Senate Bill 21 ballot Initiatives

C

Monday, July 28 3:30–5 p.m.

Member Orientation: Boardroom

Membership Committee

Wednesday, July 30 3:30–5 p.m.

7:30 a.m.

Second Thursday of the Month

COMMITTEE MEETINGS

Anchorage Business Committee

Military Committee

7:30 a.m.

First Thursday of the Month

3:30 p.m.

Third Wednesday of the Month

Ambassador Council Meetings

4 p.m.

Second Wednesday of the Month

Legislative Committee 3:30 p.m.

Third Wednesday of the Month

(Begich) Photo/Michael Dinneen/Alaska Journal of Commerce (both military) Photo/Frank Flavin/Anchorage Chamber of Commerce

Thursday, July 18 5-7 p.m.

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new members ABONDCREATED, LLC (907) 343-9412 | www.roviacs.com Adams Ergonomics (907) 345-0360

Consumer Energy Alliance - Alaska (907) 441-9119 | consumerenergyalliance.org/regional-chapters/cea-alaska/ Jay Her, Hypnotist (907) 720-9909 | www.jayher.com

Alaska Association for Historic Preservation (AAHP) (907) 929-9870 | www.aahp-online.net

Mabel T. Caverly Senior Center (907) 276-1496 | www.mabeltcaverly.org

Alaska Bus Connections & Private Charters Inc. (907) 717-9150 | www.alaskabusconnections.com

Manley & Brautigam, P.C. (907) 334-5600 | mb-lawyers.com

Alaska Choice Cuts (907) 331-9419 | www.alaskachoicecuts.com

Michael & Decker Real Estate (907) 229-2072

Alaska Legal Support (907) 2294534

Pacific Rim Media (907) 223-1213 | www.prmalaska.com

Alaska Trails (907) 334-8049 | www.alaska-trails.org

Perseverance Theatre (907) 364-2421 | perseverancetheatre.org

Amy Miller (907) 229-3524

Trinion Quality Care Services, Inc. (907) 644-6050 | www.trinionqcs.com

Anchorage Community Land Trust (907) 748 5848 | www.anchoragelandtrust.org

United Roofing Group, Inc. (907) 538-6772 | www.unitedroofingak.com/

Arktos Associates (907) 868-7631

Watterson Construction Co. (907) 563-7441 | www.wattersonconstruction.com

Baldwin Holdings, LLC (907) 222-3703 | www.keithbaldwin.com

Westward Seafoods (907) 562-2005 | www.westwardseafoods.com

Charity Carmody State Farm (907) 336-8800 | www.charitycarmody.com

Whitfield Benefit Solutions/Colonial Life (907) 274-0227 www.whitfieldbenefitsolutions.com/index.php

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