FA L L 2 0 1 4
The Rise of Alaska’s
SILVER
WAVE INDUSTRY NEWS 16 A NCH O R AGE R EA L ESTAT E MA R KET GROW ING
POLITICS 26
SP IN DO CTO R S O F A LA SKA
MEMBER SPOTLIGHT 32 GR EEN CO NNECT IO N
AK-AA_141100_Cover.indd 1
10/2/14 9:04:27 AM
AK-AA_141100_Cover.indd 2
9/25/14 2:39:11 PM
AK-AA_141100_DIRECTORS.indd 1
9/25/14 2:40:27 PM
2014-2015
board of directors 2013-2014 Elected (15 Required; 3 year terms; can serve up to 3 terms) Janelle Pfleiger, associate broker, RE/MAX Properties (chair) Bob Heinrich, vice president of finance, ConocoPhillips Alaska (immediate past chair) Julie Anderson, health, safety, environment & stakeholder manager, Alaska Energy Authority (chair-elect) J.R. Wilcox, president, Cook Inlet Energy (vice chair) Bruce Bustamante, vice president of community & public affairs, Princess Cruises Chris Clifford, vice president & principal business relationship manager, Wells Fargo Mike Hayhurst, office managing partner, KPMG Susan Jensen, manager, Bayshore Clubhouse Greg Mattson, vice president of drilling/ completions, BP Bill O’Leary, CEO, Alaska Railroad (secretary-treasurer) Melissa Reiser, vice president of commercial lending, First National Bank Alaska Tim Thompson, manager of public affairs, Alaska Airlines Joy Merriner, audit director, BDO USA, LLP Andy MacLeod, general manager, KTUU-TV Randy Cunningham, sales supervisor, KLEBS Mechanical
Appointees (Up to 12, Optional; 1-year terms; can serve up to 3 terms as appointed) Sandra Heffern, owner, EHD Enterprises (past chair) Art Clark, associate broker Dr. Michael Acarregui, CMO, Providence Alaska Medical Center Jan Seglem, operations technical manager, ExxonMobil Matt Thiel, corporate controller, Hickel Investment Company Richard Watts, district manager, Safeway Brian Franklin, CEO, Frontier Tutoring Jana Hayenga, owner, Cabin Fever
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 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.
Ex-Officios Published by
301 Arctic Slope Ave. Suite 350 Anchorage, Alaska 99518 (907) 561-4772 Managing Editor Andrew Jensen Graphic Artist Derek Schoenfeldt Photographer Michael Dinneen Advertising Coordinator Genevieve Turley Advertising Director Tom Wardhaugh: tom.wardhaugh@morris.com Account Executives Joy Bunde: joy.bunde@morris.com Ken Hanni: ken.hanni@morris.com Jada Nowling: jada.nowling@morris.com
ŠShutterstock/akphotoc
Col. Bruckbauer, Commander, U.S. Air Force, Elmendorf Ed Graff, superintendent, Anchorage School District Bill Popp, president/ CEO, Anchorage Economic Development Corporation Rashmi Prasad, dean, College of Business and Public Policy at UAA Julie Saupe, president/ CEO, Visit Anchorage Christopher Schutte, executive director, Anchorage Downtown Partnership, Ltd. George Vakalis, city manager, Municipality of Anchorage
2 | advancing anchorage magazine | Fall 2014
AK-AA_141100_DIRECTORS.indd 2
10/1/14 2:12:44 PM
F E AT U R E S TO RY
ON THE COVER Photo/Michael DeYoung/AlaskaStock The Coastal Trail in Anchorage is one of the many amenities that make the city one of the best in the country for outdoor activities.
E N T E RTA I N M E N T
M E M B E R S P OT L I G H T
LETTER FROM THE PRESIDENT 4 T H E R I S E O F A L A S K A ’ S S I LV E R WAV E 6 C H A M B E R A DVO C AC Y 1 3 I N D U S T RY N E W S 1 6 ECONOMICS 18 A RT S & E N T E RTA I N M E N T 2 0 DEVEOLOPMENT 22 H E A LT H & W E L L N E S S 2 4 S P I N D O C TO R S O F A L A S K A : A N I N S I D E L O O K I N TO T H E B U S I N E S S O F P O L I T I C A L C A M PA I N S 2 6 M E M B E R S P OT L I G H T 3 2 S C H O O L B U S I N E S S PA RT N E R S H I P 3 4 BUSINESS LEADER PROFILE 36 AMBASSADOR OF THE YEAR 37 CHAMBEROLOGY 38 A R O U N D TOW N C A L E N DA R 4 0 NEW MEMBERS 40
Thank you to our 2014 renewing Executive Level Members
AK-AA_141100_TOC.indd 3
10/2/14 11:20:40 AM
letter from the president
Changing Colors
Photo/Shutterstock/gary yim
Andrew Halcro President & CEO Anchorage Chamber of Commerce The fall issue of Advancing Anchorage takes on a distinctly silver tone as we highlight one of the fastest growing economic forces in Anchorage, the senior community. Alaska leads the nation with the fastest growing senior population which is presenting exciting opportunities for communities and commerce. In this quarter’s issue, our editor Corey Hester explores what is happening behind the scenes of Anchorage’s fastest growing demographic. Our secondary article is about Alaska’s political spin doctors. Over the last year, independent political groups have poured tens of millions of dollars into the Anchorage media market to sell their messages on everything from ballot measures to candidates. In this issue we take you behind the scenes to give you a view of what these con-
sultants see, and how they execute successful political campaigns. This fall our partners are full of helpful information and events from one end of Anchorage to the other. Julie Saupe from Visit Anchorage makes the pitch that studies show people who travel are happier and that it’s good for the brain. The Anchorage Downtown Partnership checks in with an update on the amazing potential for redevelopment in the downtown core, and why we should be moving on this idea now. Do you like LEGOs? If so, you’re going to love the Brick by Brick exhibit at the Anchorage Museum. In our Arts & Entertainment section, read about how this exhibit explores the creative potential of Lego toys and bricks. In our real estate corner, Mark Korting from ReMax Dynamic Properties gives us the latest on the market condition, and tight inventory continues to be the story. Running a small business can be tough enough, so how do you stay organized? Denali Alaskan Federal credit Union offers some very helpful tips on how to organize and prioritize the mountains of paperwork that you face every month. In our Health & Wellness section, our friends from Providence Medical Center write about the below the belt cancers that need to be discussed more to promote a greater understanding and awareness.
In our member spotlight we feature the Green Connection, a long time Anchorage Chamber member. The company began spreading the green word around Anchorage in 1977, and has become an industry leader in horticulture services. This quarter’s School Business Partnership focus is on the relationship between Mirror Lake Middle School and KTVA Channel 11 News. Students have been getting first hand broadcast experience from both news and radio personalities and have participated in a mock morning shows. The CEO Q&A profile features Bill O’Leary the CEO of the Alaska Railroad. What does it take to keep the trains running on time? We get the answer from Bill and then we ask him if we can take one of the trains for a spin around the station. Here at the Anchorage Chamber of Commerce we depend heavily on our volunteer Ambassador Council to keep us engaged with our members. This issue we recognize a truly valuable individual, who was also recently named Ambassador of the Year; Dan Newman from KTUU. We hope you enjoy our fall issue of Advancing Anchorage magazine.
4 | advancing anchorage magazine | Fall 2014
AK-AA_141100_LETTER_FROM_PRES.indd 4
10/2/14 12:57:24 PM
AK-AA_141100_LETTER_FROM_PRES.indd 5
9/25/14 2:41:16 PM
Roe Sturgulewski competes in the Powerline Pass Trail Run. Alaska’s growing population of seniors and their active lifestyles are making major contributions to the Anchorage economy.
AK-AA_141100_FEATURE_1_SILVER.indd 6
10/2/14 9:23:17 AM
The Rise of Alaska’s
By Corey Hester Editor
Michael Dinneen/Michael Dinneen Photography
W
hen you hear the word “retirement,” what comes to mind? Perhaps thoughts of warm weather and sunny skies, relaxation, or spending time with family and grandkids. The belief that seniors are relocating to a more tropical environment, like the sunshine state of Florida is a popular perception. As the baby-boomers join the ranks of senior citizens, retirement and the growing senior community is evolving into a common discussion. The senior population is the fastest growing demographic not only in the United States, but in Alaska as well, as our state currently leads all other states in per capita increases of seniors. One of the many reasons is in 2014, Forbes Magazine ranked the Last Frontier state as one of the top 50 states for retirees. During territorial times and early statehood years, retirement meant leaving Alaska. That’s not true today as more and more seniors are staying to enjoy their golden years. Why? There are more activities available to seniors, and senior services such as home care or care centers, easier access to public and private facilities, healthcare, and businesses are beginning to adapt effective marketing efforts catering to Anchorage’s senior population. There are advocacy agencies such as the Alaska Commission on Aging, the Older Alaskans Commission, and the Anchorage Senior Activity Center pushing for a friendlier and inclusive environment.
Many seniors in Alaska, both individuals and couples, were born and raised in the 49th state. They went through statehood, the Great 1964 Earthquake, the discovery of oil on the North Slope and the boom years of building the pipeline. Many are beginning to embrace the active lifestyles of their peers in the same state they’ve come to love. One such couple, Pete and Judy Weimer, are life-long Alaskans taking advantage of many of the benefits that Alaska has to offer its senior citizens. Pete and Judy Weimer, 77 and 73 respectively, were both raised in Alaska. They met at the University of Alaska in Fairbanks, in 1959; married three years later and have been together ever since. The Weimers continue to call Alaska home and their outlook on senior life is simply — there’s so much to do out there! The couple is active in the Anchorage Senior Activity Center (ASAC). The ASAC is solely an ‘event and activities’ hub for the senior community in Anchorage. They host and help facilitate large events, health fairs, sports teams and fitness classes for anyone over the age of 50. “The senior community is a great place to volunteer and get involved,” says Judy, who chairs the fitness committee at the ASAC. “I received a life-time membership on my 50th birthday,” says Pete, “It was really a great gift.” As the most concentrated and active place for seniors in Anchorage, the ASAC sees the growing impact of the senior demographic first hand. “The demand is exceed-
ing the support available,” says Judy. Both of the Weimers agreed that the $835,000 donation by the late Mary Louise Smith, an active senior citizen and member of ASAC, not only provides year round support for a growing, active senior community, but helps bring the increased growth of the senior population into focus. With the Anchorage Senior Activity Senior quickly approaching 2000 members, the Weimers are confident that the Activity Center will continue to grow as a hub for seniors to socialize and get involved with their peer group and the community. Yet aside from seniors being active in the community socially, they also have a growing economic impact.
More Seniors, More Money When we think of Alaska’s economic indicators we often think of industries such as fishing, timber, oil and gas, and tourism. But there’s an economic sector here, year round, that’s continually growing — our population of senior citizens. The economic impact of retired seniors was over $2 billion in 2013, making it one of Alaska’s top economic sectors. That’s $200 million more than what the U.S. seafood market purchased from Alaska in 2011, and $900 million more than the worth of Alaska minerals that was exported to the global markets in 2010. The senior citizen population was at 12 percent of the national demographic, and 6 percent of Alaska’s in 2000. Ten years later the national percentage increased by 1 per-
Anchorage Chamber of Commerce | 7
AK-AA_141100_FEATURE_1_SILVER.indd 7
10/2/14 9:23:34 AM
cent, while Alaska increased to 8 percent. By 2020, the senior citizen demographic is projected to grow to 15 percent nationally, and an impressive 12 percent in Alaska. That’s the wave of Alaskan seniors doubling (Figure 1)
Source: Health Care Spending in Alaska, ISER, 2010
in just under two decades, which is almost three to four times greater than the national growth rate. The “baby boomers,” those born between 1946 and 1964, are retiring today in greater numbers than ever before.
As of 2011, Alaska led the top seven states with the fastest growing senior population of persons age 65+ at a 58 percent growth rate; followed by Nevada at 53 percent, and Arizona at 37.3 percent. There are now over 104,000 seniors pumping in over $100 million annually to the state, growing from $1.7 billion in 2010 to $2.2 billion by 2013. This economic contribution also includes retirement income and healthcare spending, securing seniors as one of the state’s top economic engines. Seniors’ financial well-being in Alaska is independent and positive. “A senior’s financial situation varies with the age of the senior and circumstances of his/her life,” notes Mary Shields, Interim Director for the Anchorage Senior Activity Center (ASAC). “Overall, the cost of housing, transportation, and medical care are the areas of the most impact on all older adults in our Anchorage community. Cost determines accessibility which, in turn, determines quality of life for our seniors.” Regarding senior’s finances however, Kevin Turkington, CEO/Founder of Midnight Sun Home Care, states there’s “a misconception that the elderly are needy and that they depend on government resource.”
This impression is in conflict with reality since a large portion of the senior population doesn’t rely on state or federal resources, he said. Turkington’s company, Midnight Sun, serves Anchorage and the Mat-Su, and provides personal and direct in-home care to seniors and other adults in need. “The [large growth rate] means a lot of senior customers flooding the market,” points out Turkington. “We’re creating a climate to encourage the aging population to stay and reside in Alaska, with the goal to make housing, services, and resources widely and readily available to them here just as anywhere else.” His independent home-care company was founded on the idea that disabled and elderly loved ones can enjoy a greater quality of life and more independence in their own home.
Road Bumps For Seniors However, seniors, just like any other demographic have their own set of difficulties. It could be losing a partner, lack of mobility, becoming reliant on outside sources of transportation, or more frequent and expensive medical care. But one of the biggest challenges facing seniors is affordable and
Michael Dinneen/Michael Dinneen Photography
Pete and Judy Weimer, 77 and 73 respectively, were both raised in Alaska and are active members of the Anchorage Senior Activity Center.
8 | advancing anchorage magazine | Fall 2014
AK-AA_141100_FEATURE_1_SILVER.indd 8
10/2/14 9:23:55 AM
Michael Dinneen/Michael Dinneen Photography
suitable housing for elderly cliental. “We need to have more low income housing, everyone is on a waitlist,” says Denise Knapp, Executive Director for the Mabel T. Caverly Senior Center. “We don’t have enough housing.” This is echoed by Janelle Pfleiger, an associate broker at RE/MAX Dynamic Properties with over 35 years experience in the housing industry. “The cost of developing land is expensive and scarce,” she mentions.“You see other cities adapting and growing, (partly) because there’s incentives. But (our) market hasn’t engaged yet to satisfy the demographic.” The senior housing challenge is not just about enough housing, but adapting Anchorage’s housing codes and regulations to make residences more senior friendly. Turkington points out that many of the regulations are cumbersome and arduous to deal with, which makes construction and implementation of this type of housing time consuming and frustrating, and therefore less incentivizing. There are also the challenges of assisted living and nursing home costs. Alaska continues to have the highest nursing home cost in the country. In 2013 it was $701 per day or $255,891 per year. For assisted living, the average cost is $72,000 per year compared to the national average of $41,000. The largest expenditure for seniors is their home as well as living-related expenses from property taxes to lawn care. Though it declines with age, nationally 20 percent of retirement income is spent on dining and entertainment, followed by 13 percent on transportation. In Anchorage that number is higher, as our community is the second-highest city in America for percentage of income spent outside the home. According to U.S. News, seniors aged 65 to 74 spend about 12 percent of their income on medical expenses which includes insurance and surgeries, rising to 15 percent for those aged 75 to 84 and those 85 and older spend 18 percent on health care. With health care costs as much as 30 percent higher than Seattle, those costs consume a greater percentage of income. Yet Pfleiger mentions that the near future is more promising than people might initially see. “It’s an untapped market for suitable and
affordable housing,” states the veteran real estate broker. “Market pressure will resolve itself in 5 – 10 years, but not without supporting public policies. Cities need to have a concentrated effort from the business community and business leaders.” She mentions that it comes down to the business community and the municipality becoming more involved and ultimately adapting to this growing demographic, of which they have recently become engaged.
Businesses Court Seniors
don’t actually retire, but remain active in the workforce. In Alaska in 1970, 28 percent of the workforce was seniors, dropping to 14 percent in 1980 and rising to 22 percent in 2010 [Figure 2] . Seniors are being recognized in other important ways and thus able to provide new perspectives to fulfill new demand from businesses. “Companies are reaching out to seniors for their expertise and experience,” says ASAC Director Mary Shields. The growth of the senior market has inspired local busi-
Another surprising addition to the senior’s growth is that many
Among the 50 states, Alaska ranks second-best for retirees according to a 2014 study by PBS in association with the National Institution of Retirement Security.
Anchorage Chamber of Commerce | 9
AK-AA_141100_FEATURE_1_SILVER.indd 9
10/2/14 9:24:11 AM
(Figure 2)
nesses to become more senior friendly by removing barriers to shopping, and training employees to better recognize challenges some seniors face. Non-profits are looking for board members, organizations are looking for consulting, and startups are looking for advice and a wealth of knowledge from seasoned investors and mentors. “And as many of us Alaskans know the retail industry in Anchorage is extremely senior-friendly,” adds Shields. New Anchorage businesses such as Cabela’s Retail Store or the Pro Bass Shop employ dozens of seniors.
Anchorage Senior Friendly Project Earlier this year the Mabel T. Caverly Senior Center launched an innovative program to help make local businesses more attractive to seniors shopping for goods and services. The Senior Friendly Project (SFP) is aimed at improving the shopping experience for older citizens, and has garnered the support of the Anchorage Municipal Senior Citizens
Advisory Commission, Kevin Turkington, and Anchorage Mayor Dan Sullivan among other community leaders. Mayor Sullivan commented that, “The amount (seniors’ addition to the economy) is increasing further as baby boomers are added annually to our population. So how can we, as a community, help?” With about $2 billion to spend and a 52 percent increase in the senior population in the last 10 years, Anchorage seniors have a lot to contribute to our local economy –and the city has taken notice. The goal of the SFP is to offer guidance to local businesses on how to cater to the growing senior market. Senior Consumer Surveys indicate that there was a significant need in many businesses for better lighting, wider
aisles, larger signs, places to sit, and working electric carts. When a business joins the project it becomes a certified Anchorage Senior Friendly Project business member and is offered greater exposure to local seniors through targeted marketing by local groups. The innovative program is a collabora-
tive effort to increase public awareness of seniors with a positive understanding of the needs of an aging population and to increase profits for the business and community as well. The SFP goals are to provide improved community service and access through specific recommendations. The participating business gets a marketing advantage and increased visibility for older residents and visitors. The project was launched because local businesses were unsure about how to attract seniors and we wanted to prepare local businesses for this growing demographic, stated Executive Director Knapp. “We want them to be ready,” she said. The “mystery shopper” part of the project has been a success. The mystery shopper program assesses the business and makes recommendations. It was implemented to show younger employees and clerks how to better engage with senior citizens. “It’s awkward for the employees at
Michael Dinneen/Michael Dinneen Photography
Source: Alaska Department of Labor and Workforce Development, Trends, August 2012
10 | advancing anchorage magazine | Fall 2014
AK-AA_141100_FEATURE_1_SILVER.indd 10
10/2/14 9:24:30 AM
times because they aren’t used to dealing with elderly citizens,” said Knapp. “But it’s providing great feedback so we can make sure our businesses are ready to serve this growing demographic.”
Michael Dinneen/Michael Dinneen Photography
Alaska Ranks Second-Best State For Retirement Who would have thought that the coldest and northernmost state in the U.S. beat out Florida for one of the best places to retire. A more moderate climate and a favorable economic environment, Alaska has consistently proven to be at the top for one of the best places in the U.S. to retire. In 2014, PBS in association with the National Institution of Retirement Security released a study that showed out of all 50 states, Alaska ranked second-highest, only behind Wyoming, as the most financially secure state for retirees. The report concluded that due to “generous benefits, more working opportunities and better-funded services for seniors” Alaska was one of the best states for retirement. Yet another benefit for seniors retiring in Alaska is comparatively low taxes. In 2012, MarketWatch, a respected financial information website, boasted that “Alaska offers
an unparalleled retirement” due to the state not imposing a sales or individual income tax; the completely unique Alaska Permanent Fund Dividend; in some circumstances seniors receive great tax exemptions for property tax. In Anchorage, there’s also accessible transportation programs such as AnchorRides that provides courtesy rides to hospitals, doctors appointments, or pharmacies. Another benefit for the outdoors oriented senior is that Alaska has a no-cost fish and game license for seniors. Just recently in 2014, AARP and Forbes
A $835,000 donation by the late Mary Louise Smith, an active senior citizen and member of Anchorage Senior Activity Center, not only provides year round support for a growing, active senior community, but helps bring the increased growth of the senior population into focus.
Magazine echoed this by stating that Alaska was one of the best states for retirees from a tax perspective by also including an absence of tax on Social Security.
Silver Tsunami Ahead It’s clear that the “Silver Tsunami Wave” is already emerging, and by 2035 the 60+
(Figure 3)
Source: Alaska Commission on Aging, 2013 Annual Report
Anchorage Chamber of Commerce | 11
AK-AA_141100_FEATURE_1_SILVER.indd 11
10/2/14 1:47:11 PM
Sixty-year-old Bev Lewanski finishes the 2014 Tour of Anchorage Nordic ski race.
say there will always be seniorrelated issues to tackle, they’re comfortable with the direction things are going. The ASAC is going to expand its services and better communicate with the overall community by reaching out to the growing and soon-to-be senior population. “It sure is going to help out the seniors,” says Pete. “Yes, and engage more seniors to stay active and healthy,” adds Judy as she glances over towards Pete with a smile. “If we maintain our healthiness and fitness, we’re going to live longer and happier.”
(Figure 4)
Source: Alaska Commission on Aging, 2013 Annual Report
Michael Dinneen/Michael Dinneen Photography
population is projected to be close to 190,000 residents [Figure 3]. This adds hundreds of millions of dollars to the economy. Seniors contribute to the local economy because they spend a greater percentage of their income locally, boosting local businesses year round. Seniors are creating jobs throughout the state from entry-level positions to high-paying positions in healthcare. They provide formal and informal volunteer work worth an estimated $13 million to $52 million and caregiving valued at $47 million. Some of the state’s costs for older Alaskans may be surprising. In 2004, it was about 6 percent of Alaska’s General Fund. With the increased demand for services the cost of general state services will go up. In 2013, costs ranged from $22,700 per year for a personal care assistant to $255,891 for nursing home residents. The state spends about $125 million annually to serve over 5,000 seniors. Alaskan seniors have been captains of industry, government and political leaders. Many pioneered the tourism industry and set the course for Alaska’s the fishing industry.
Today there are seniors contributing their experience by sitting on board, and teaching at universities across Alaska. The wave of senior activities is beginning to grow to give seniors more options as well. For getting out and about Anchorage, there are a multitude of programs offered by groups like the Anchorage Senior Center and the Mabel T. Caverly Senior Center where seniors can gather to socialize or participate in community service outreach programs While both the Pete and Judy Weimer
12 | advancing anchorage magazine | Fall 2014
AK-AA_141100_FEATURE_1_SILVER.indd 12
10/2/14 9:25:05 AM
chamber advocacy
Growing senior population presents opportunities, challenges
Photo/©Shutterstock/ CREATISTA
By Andrew Halcro President/CEO, Anchorage Chamber of Commerce When we hear terms like aging demographic or growing senior population, we don’t always think about it as a key economic engine in Alaska, but it is. The silver tsunami that is hitting Alaska has provided both challenges and opportunities. The numbers of seniors calling Alaska home is growing four to five times faster than the rest of the country, fueled by baby boomers, and complimented by an existing senior population that is now calling Alaska home for good. In 2011 alone, the 65+ age category grew by 58 percent in Alaska. There are now over 104,000 seniors over age 60 contributing to the local economy in retirement income, healthcare spending and revenue from other sources, making seniors one of the state’s top economic engines. In 2012, the economic impact of Alaska seniors on the economy was almost $2 billion. It used to be that retirement meant leaving Alaska, and the term snowbird was ubiquitous. That’s not true today as more as more seniors stay here to enjoy their golden years. One reason that Alaska is a great place to retire is due to the tax advantages compared to other states. With no state sales tax or state income tax, Kiplinger recently ranked Alaska as the number one best place to retire in America. In addition, there are more senior citizens
services such as housing, increased healthcare access and businesses that are catering to the senior market with techniques such as wider aisles, larger print, and walkerfriendly ramps. There’s also strong advocacy for seniors such as the Alaska Commission on Aging, the Older Persons Action Group and locally, the Senior Citizen Advisory Commission. But we have more challenges and opportunities to help keep seniors strong, healthy, and independent. One of the key economic barriers is the challenge of assisted living and nursing home costs. Alaska continues to have the highest nursing home cost in the country at $701 per day or $255,891 per year in 2013. For assisted living, the average cost is $72,000 per year compared to the national average of $41,000. While this has spurned growth in the health care industry for personal health aides and nurses, at the end of the day the financial impact on seniors is significant. One positive trend with regards to housing is the number of seniors who are electing to stay in their own home. With the municipality offering a senior citizen tax exemption, the rapid growth of home health care services, and more moderate winters, seniors are finding it more beneficial to remain in their own homes. Almost 80 percent of Alaska seniors are living in own their homes, and that number will stay high as more and more seniors are unlikely to move. While there is an overall
out migration rate of 7 percent, the number for seniors falls to 4 percent. With the increasing population of seniors also comes with benefits for the business community. Nationally, 20 percent of retirement income is spent on dining and entertainment, followed by 13 percent on transportation. The percentage of income spent on dining is significantly higher here in Alaska, as Anchorage is ranks second in the country for the highest percentage of income spent on eating outside of the home. Health care is big business, as according to a U.S. News and World report, seniors aged 65 to 74 spend about 12 percent of their annual income on medical expenses while that number rises to an average of 18 percent for those over 75. There is also the employment and volunteer contributions made by seniors. Today, there are more seniors in the workforce. In 1990, 12 percent of seniors were in the work force. In 2010 that number had grown to 22 percent. Seniors also provide formal and informal volunteer work worth an estimated $31 million per year. For Anchorage seniors and local businesses the future is bright. Seniors spend a larger portion of their income locally, making local businesses more financially viable. The growing senior population will continue to create jobs in Anchorage from retail to healthcare, as their role as an economic engine will only get stronger in supporting our local economy.
Anchorage Chamber of Commerce | 13
AK-AA_141100_Chamber_Advocacy.indd 13
10/2/14 1:44:58 PM
tourism outlook
Adults who went on educational trips as kids earn 12 percent more money.
By Julie Saupe President/CEO,Visit Anchorage Tourism benefits you. When I say that, I mean you, the individual. We often measure the effects of tourism in the millions of visitors or billions of dollars. What’s lost in all that number crunching is just how much travel does for each of us, and in turn just how much our own personal choices on travel contribute to greater economic effects.
Travelers are Happy
Travelers report they are significantly more satisfied in their overall outlook on life when compared to non-travelers. In studies, the vast majority of those surveyed say travel improves their mood, decreases stress levels and improves friendships.
Travel Keeps the Doctor Away
That same group also reports benefits of travel to overall health and well-being. If you’ve ever plopped down in a hotel room after a day of walking nonstop, it shouldn’t come as a surprise that travel can have physical benefits.
Travel, Your Brain Will Thank You It may not come as a surprise that travel has health benefits, but it also improves your mind. While it may not be obvious, studies show travel has cognitive benefits, such as reduced risk of Alzheimer’s. Youth Travel is linked to greater income and higher college graduation rates The benefits of travel start young. Not only do many of us treasure childhood memories of trips taken with family, it turns out those trips had other benefits. The majority of those surveyed thought travel sparked more interest in what they were taught in school,
(Young Girl) Photo/Wayde Caroll, (Sunset) Photo/Roy Neese, (Couple) Photo/Carolyn Posey
The Benefits of Traveling
14 | advancing anchorage magazine | Fall 2014
AK-AA_141100_TOURISM_OUTLOOK.indd 14
10/2/14 9:32:08 AM
and half of the kids who traveled brought home better grades. That student travel has benefits beyond the report card; it has benefits to the bank account later in life. Adults who went on educational trips as kids earn more money. Those that went on educational trips earn 12 percent more when they grow up; 57 percent of those who traveled as kids went to college. These results cut across ethnic backgrounds and socioeconomic classes as well. So take time off and travel. It doesn’t have to be a grand expedition; 3 in 4 Americans say it doesn’t matter if it’s across the country or the next town over: travel is too good for you to neglect.
One Day, Many Benefits
Travel happy: Travelers report significantly more satisfaction in life compared to non-travelers.
(Young Girl) Photo/Wayde Caroll, (Sunset) Photo/Roy Neese, (Couple) Photo/Carolyn Posey
What would it look like if we all took just
one extra day off ? It would mean a lot. If everyone took just one additional day of earned leave each year, the economy would benefit to the tune of $73 billion. And don’t tell me you don’t have the time. On average, we each leave 3.2 days of earned time off on the table at the end of a year! If American workers used all of their available paid time off, the U.S. economy could reap an additional $160 billion in total business sales each year, supporting 1.2 million new American jobs, generating more than $21 billion in taxes, including $11.4 billion in federal, $4.1 billion in state and $5.5 billion in local taxes. Bet you didn’t know what you were capable of! So, where are you traveling next?
Anchorage Chamber of Commerce | 15
AK-AA_141100_TOURISM_OUTLOOK.indd 15
10/2/14 9:32:53 AM
industry news
Anchorage‘s Real Estate Market Growing Slowly By Mark Korting, CCIM, CRS Co-Broker Owner RE/MAX Dynamic Properties
Construction costs and land values continue to slow actual construction and sales as homebuilders are likely to less often build
on “spec” (building a home without it being pre-sold). Residential rental rates in Anchorage
The Municipality of Anchorage is fortunate to have a real estate market that is either stable or positive in pretty much all sectors. According to the Alaska Multiple Listing System, residential real estate for sale is showing an increase in prices in virtually all ranges of the residential market with the average sale price in single family homes at about $360,000, up 7 percent over last year, and condominiums at $197,000, up just slightly over last year. The volume of residential sold is just the opposite with single family volume (in dollar value) down about 3 percent and condominiums up almost 7 percent. This is probably due to the fact that affordability and availability of housing is short, and Anchorage is experiencing what is normally referred to as a “Seller’s Market.” This means that inventory based upon previous absorption rates is less than six months. Six months inventory is historically considered in the industry as a “Balanced Market”. Because of the “affordability issue” there will be a continuing trend toward construction of duplex and multifamily homes. New construction permits are up over last year by 16 percent but it must be remembered that permits are not necessarily homes actually built, just that an application to build has been submitted.
16 | advancing anchorage magazine | Fall 2014
AK-AA_141100_INDUSTRYNEWS.indd 16
10/2/14 1:43:36 PM
are increasing due to lack of construction, higher costs for taxes and utilities and the demand created by the lower inventory and higher costs of single family homes. Alaska Housing Finance Corp. estimates the vacancy rate at about 3 percent which is very tight. The average monthly rent for “non-subsidized” apartment is approximately $1,150 plus utilities. There are a number of government or “quasi government” and charitable organizations such as Alaska Housing Finance Corp. and Cook Inlet Housing Authority that offer rental assistance and are constructing new rental and ownership housing. Commercial construction year-to-date is slightly down over last year although it is mixed throughout the various sectors with residential (rental properties) being up 16 percent, general commercial down 23 percent and government up over 50 percent. Class “A” office space rates average $2.50 per square foot with a 6 percent vacancy rate;, Class “B” office at $1.95 with a 3 percent vacancy and warehouse at about $1.00 with a 2 percent vacancy rate. Retail averages $1.50 for older buildings with newer construction at about $2.65. Most new commercial construction is directed at “owner-users” and construction cost per square foot varies between $200 and $300 plus land. As land in the Anchorage Bowl is steadily built out, the industry and the Municipality will need to work harder and more creatively together to minimize costs in time and money so we can develop more affordable house in the future. The outlook for the near future for the construction industry, both residential and commercial, by most of the “prognosticators” is that Anchorage will be stable and see slightly positive growth.
Anchorage Chamber of Commerce | 17
AK-AA_140900_INDUSTRYNEWS.indd 17
10/2/14 11:11:52 AM
economics
By Denali Alaskan Federal Credit Union
If you’re a small-business owner or selfemployed, you’ll acquire a lot of paperwork throughout the year. Though you might find yourself in a throwing-out frenzy, you should keep some items: Financial documents: You might expect that you can toss items like taxi and parking receipts, but don’t. Experts recommend that small-business owners keep supporting documents for business expenses for at least five years. It’s a good idea to hang on to some documents indefinitely, such as tax returns and stock and investment statements.
“First, figure out which expenses affect your taxes and keep the related receipts in a specific place until they can be filed,” suggests Darla Dernovesk, a freelance writer in Clinton, Wis. “It can be a file folder, a basket, or even a shoe box, but make sure you put these documents there immediately. Then when you have a slow day, or even a slow week, you can file them away for easy access at year-end. Labeling the container used for this purpose is helpful, especially if others sometimes visit or use your office space.” Legal documents: Keep contracts, business licenses or incorporation papers, and critical correspondence with suppliers or customers—anything that could involve legal action. “Always record and file invoices as soon as they are generated so you know how much is owed and how much has been collected,”
says Dernovsek. “This makes it possible to predict your cash flow as well as allowing you to send another invoice after 30 or 60 days to pursue late payments. Stay on top of this by placing the material in file folders and checking them regularly. This will also help you at tax time.” Personnel records: Hang on to employee payroll records, insurance documents, and performance appraisals. Bids: Keep suppliers’ bids until the job is finished. Retaining bids for a couple of years may come in handy to help keep track of pricing. Miscellaneous paperwork: Everyone has a file of ideas and thoughts that could turn into something or may never mean anything at all, Dernovsek says. “Control this jumble of papers by putting it in a specific place. Then sort it regularly as time allows. This keeps you from saving papers
Photo/Shutterstock/ Thomas Bethge
Small-biz owners: Get organized
18 | advancing anchorage magazine | Fall 2014
AK-AA_141100_ECONOMICS.indd 18
10/2/14 2:00:28 PM
Photo/Shutterstock/ Thomas Bethge
that have no meaning while allowing you to retain ideas with merit,” she adds. Baskets, boxes, and files kept on your desktop or nearby shelves can be your friend as long as you recognize that they are temporary storage, Dernovsek says. She suggests you sort through file storage and decide what you must keep at least once a year. Then place everything you must keep for long-term records in permanent storage. This might be a file cabinet or carefully labeled boxes stored on basement shelves. The key is to sort it, label it, and store it appropriately. You can recycle some items, but be sure to use a cross-cut shredder to discard items with personal or financial information, including credit card applications and job applications for people you don’t hire, especially if they include Social Security numbers. To help get your home office in even better shape, arrange storage for supplies that you use regularly, Dernovsek suggests. When you need a new ink cartridge or staples, for example, you usually need them right away. Creating a simple system for storing everyday items will help to reduce stress when you’re under a time crunch. Aim to go through your piles and paperwork thoroughly each quarter so you tackle it at least two or three times a year, encourages Dernovsek. “Once a year is simply not often enough to find the records required to take maximum advantage of expenses and track payments. “When work or life becomes overwhelming, catching up on paperwork can be calming. You can’t control the chaos everywhere else, but at least you can create the illusion of order on your desk.”
Anchorage Chamber of Commerce | 19
AK-AA_141100_ECONOMICS.indd 19
9/25/14 2:46:13 PM
arts & entertainment
by
Brick By Anchorage Museum LEGOs aren’t just toys. These building blocks are a contemporary material used by architects, engineers, artists and other professionals in their day-to-day work. With LEGOs, people have designed everything from 3-D printers to robots to V-8 engines. More than 1,000 enthusiasts banded together in England to build an entire house (with working toilet and shower). Karen Zaccaro of ECI/Hyer, an architectural and interior design firm in Anchorage, said childhood memories of LEGOs can rejuvenate a dormant creative perspective for an adult. They’re also just practical. “The simplicity of the modules can facilitate fast and flexible explorations, while the tactile and kinetic aspects of building with LEGO let the mind relax and design evolve,” she said. Brick by Brick, organized by the Anchorage Museum, explores the compelling pull and creative potential of building toys, including LEGOs. On view from Oct. 3 to Jan. 11, 2015, the exhibition examines the topic from all angles, looking at the artistic,
The Anchorage Museum's Brick by Brick-themed summer camps included building LEGO Mindstorms robots, creating artwork with LEGO bricks, and solving engineering challenges using science and math scientific, technological, engineering and mathematical applications. This hands-on exhibition includes play areas as well as technology kiosks where visitors can experiment with LEGO software and video games. ECI/Hyer donated their design services to help the Anchorage Museum create a playful yet sophisticated exhibition space. Museum Director Julie Decker approached architect Jae Shin after seeing the LEGO architectural model his company created for the Alaska State Museum in Juneau, and seeing his Facebook post about a LEGO wall he designed for his children at home. The museum gallery spaces are designed to engage museum visitors at multiple lev-
els. Innovative touches include a play area with round tables that gives visitors the feeling of sitting on top of a giant LEGO piece. Several ECI/Hyer staff have school-age children and lots of LEGOs at home. “This gave us current perspective on the little things like why we might want carpet in the hands-on space (those bricks can really slide when you step on them),” Zaccaro said. “It also gives us everyday reminders of the creative potential children and adults have when given simple tools and no boundaries.” Building blocks have a long history tied to industry, particularly architecture. As a boy, Frank Lloyd Wright was inspired by the possibilities presented by the simple forms of Froebel Blocks, the educational wooden building blocks developed in the 1840s by Kindergarten creator Friedrich Froebel. In
IF YOU GO What: Brick By Brick, an exhibition that explores the creative potential of LEGO toys and bricks When: Oct. 3, 2014 - Jan. 11, 2015 Where: Anchorage Museum, 625 C St. How much: Free for museum members, W$17 adult Alaska resident, $15 senior/student/military, $12 child Buy tickets: www.anchoragemuseum.org
Image of Children: Chris Arend/Anchorage Museum; Yellow Sculpture: courtesy of brickartist.com
Brick
20 | advancing anchorage magazine | Fall 2014
AK-AA_141100_Arts_N_Ent.indd 20
9/19/14 2:44:11 PM
Image of Children: Chris Arend/Anchorage Museum; Yellow Sculpture: courtesy of brickartist.com
1916, Wright's son, John, invented Lincoln Logs. Working with LEGOs provided some out-of-the-box sponsorship opportunities for local companies. Artists are using LEGOs to re-create logos for presenting sponsor ConocoPhillips and top tier sponsors such as ECI Hyer, ExxonMobil, CIRI, GCI, BP and others. Those logos will be on display at the gallery entrance. “Without this corporate support, Brick by Brick wouldn’t be possible,” said Ann Hale, Anchorage Museum chief development officer. “It’s great to work with companies that recognize the educational value of exhibitions like this, and in return, we’ve found a fun way to let the community know just how much we appreciate our sponsors.” Brick by Brick is about the possibilities of the physical (and digital) building block, and humans’ continual longing to build and invent. Three artists are at the core of Brick by Brick. New York artist Nathan Sawaya composes large-scale sculptures from LEGOs. British photographer Mike Stimpson is known for re-creating notable photographs from history and pop culture using LEGO figurines. The third featured artist is you. Interactive stations in this exhibition include a LEGO brick workshop area and technology such as Chrome and Minecraft video applications. These hands-on stations emphasize LEGO bricks as learning tools. Cases in the gallery will display community creations. It’s impossible to know how many inventions and careers have been inspired by these simple, stackable, plastic blocks. Perhaps this exhibition will inspire Alaska’s next generation of architects, engineers, scientists and artists.
LEGO: FROM HUMBLE STARTUP TO WORLD’S LARGEST TOYMAKER In 1932, master carpenter Ole Kirk Kristiansen opened a little company in Denmark making stepladders, ironing boards and wooden toys. Two years later, he adopted the brand name LEGO for his toys. The name is derived from the Danish words "leg godt," which means "play well." A plastic incarnation of LEGOs was introduced in the U.S. market in 1961 and became an immediate hit. Today the ubiquitous LEGO brand has branched far beyond plastic blocks to include Mindstorms robots, video games, a major motion picture and theme parks. The Danish toy company recently surpassed rival Mattel to become the world’s top toymaker. In 2013, LEGO posted a net profit of $1.1 billion.
Nathan Sawaya,Yellow, LEGO bricks
Anchorage Chamber of Commerce | 21
AK-AA_141100_Arts_N_Ent.indd 21
9/19/14 2:44:23 PM
development
By Anchorage Downtown Partnership Several important factors shaped the ways in which communities developed over the past half-century, but none had more impact than the rise in automobile ownership. Americans became more mobile, encouraging development to spread further and further away from city centers and ushered in the growth of suburbs. But this outward growth of our cities also ushered in costly externalities like increased capital costs for schools, sewers, and roadways as housing and commercial development spread further from the cores of American cities. Increasingly, communities are addressing these negative externalities by shifting their neighborhood development and redevelopment efforts away from planning policies that encourage sprawl, focusing instead on policies that, as described by Willem van Vliet in The Encyclopedia of Housing, “reintegrate the components of modern life — housing, workplace, shopping, and recreation — into compact, pedestrian-friendly, mixed-use neighborhoods set in a larger regional framework providing open space and transit.” Communities of all sizes and in all locations are adopting development standards and planning policies that support more compact neighborhoods, with better pedestrian amenities, complementary mixed-use developments, and improved public spaces. Development and redevelopment that follows these tenets provide benefits to both
the consumers or residents of these communities, as well as those who finance, develop and build in these communities. Developers find it far easier to finance, market and sell projects that are located near retail amenities, transit facilities and public parks, a reflection of the desirability of these types of communities that is driven by consumer demand. Recipe for Successful Community Development/ Redevelopment • Pedestrian-friendliness should be encouraged while still accommodating vehicles • Support multi-modal transit options • Diversify tenants and services within the area, including a variety of housing options for people of varying income levels • Prioritize public buildings and spaces, cultural facilities and attractions, and artistic offerings • Make the hub attractive 24/7
And people are increasingly willing to forgo larger homes on big lots in exchange for smaller units located in a vibrant urban environment that provides convenient access to daily needs and lower transportation costs. Anchorage, for the most part, has not seen this type of development, but that’s not to say that it couldn’t. Anchorage may have developed after the advent of the automobile, but its future doesn’t have to be hitched to it. Already demographics of Anchorage are changing rapidly and with those changes
come different priorities and demands related to housing, work, transportation, and community. Just look at the 2012 United Way study where respondents indicated that they were willing to: live in a six-story or higher building (57 percent); live in space which is small, but modern and efficient (70 percent); and, park in a multi-story garage (71 percent) all if they could live closer to work. Even here in Anchorage, there is a growing demand for community development that reflects the desire of residents who to live closer to where they work, where they shop, where they eat, and where they recreate. One such project, still in the development stages, is the mixed-use project at 4th Avenue and L Street being proposed by Neeser Construction. The proximity to civic and business centers, the courthouses, and other retail amenities make this a prime location for mixeduse redevelopment. Not to mention the views of Cook Inlet. Neeser envisions two building masses on the north and south ends of the development, bridging up to 160 underground parking spaces. The towers will feature ground floor retail space, up to 80,000 square ft. of office space above, and residential units ranging from 800 square ft. efficiencies to 2,500 square ft. units on the top. Developments like Neeser’s can capitalize on existing urban amenities to better support the prices needed to make this project feasible, particularly the residential component. Residential units like these typically are
Courtesy Photo/Neeser Construction
100 years of development completed, 100 years of redevelopment to come for Anchorage
22 | advancing anchorage magazine | Fall 2014
AK-AA_141100_REDEVELOPMENT.indd 22
10/2/14 9:42:58 AM
more expensive per square foot than larger, more suburban style homes and will require a complete package of amenities to successfully compete. Dense, mixed-use developments like Neeser’s also are appealing for the municipality. Compact development can carry lower service costs for a city while also providing a greater tax base per acre. Local governments don’t need to build and maintain extensive infrastructure (roads, sewer, and water lines) since existing infrastructure can be utilized. Residents in compact neighborhoods rely less upon the automobile with amenities such as retail stores, restaurants, and other services closely located – while businesses
enjoy a built-in and immediate customer base. While Anchorage is not likely to see redevelopment of the scale that is occurring in other cities (like the City Creek Center redevelopment project that renovated 20 acres of downtown Salt Lake City into an upscale open-air shopping center, office and residential buildings), looking around our city leads one to believe that there is a lot of potential. So why hasn’t Anchorage seen large-scale redevelopment yet? Population is an obvious challenge when comparing Anchorage development to Salt Lake City, but so is the age of our city, according to Sue Lukens, Development Director for Anchorage Commu-
nity Development Authority. Anchorage is a young city that lacks large, outdated industrial areas that are obvious targets for redevelopment like other cities have. The value of dense development • The Wells Fargo Capital Center in Raleigh, N.C., is a high-rise residential development that has 90 times the tax value per acre than the average suburban acre. • It would take 600-single family homes on a 150-acre subdivision to equal the tax value of the Wells Fargo Capital Center, which sits on 1.2 acres of land. Source: Kristopher Larson and Mitchell Silver, 2008
Courtesy Photo/Neeser Construction
Then there are the higher costs of development in Anchorage, including infrastructure and utilities, according to Lukens and the authors of the Anchorage Housing Market Analysis. Public investment and other creative solutions such as expanded tax-abatement and fee-waivers can be pursued as redevelopment tools to help offset these higher costs, something the Anchorage Assembly hopes can encourage redevelopment in portions of Fairview and downtown through a recent ordinance passed by the body to grant special incentives to redevelopment in those neighborhoods. Barriers to increased redevelopment exist here in Anchorage, but they are not insurmountable. Diverse groups from both the private sector and the non-profit sector are working diligently to address those barriers. And through the vision and imagination of our community’s developers, guided by the demands of our evolving population and supported by the hard working people at the Municipality, our young city has much to look forward to during the next 100 years of its growth and development.
Anchorage Chamber of Commerce | 23
AK-AA_141100_REDEVELOPMENT.indd 23
10/2/14 9:43:22 AM
health & wellness
By Providence Medical Center
Here are some topics that you don’t often see discussed in a business publication: Cervical cancer. Ovarian cancer. Endometrial, uterine and fallopian cancer. These below-the-belt cancers claim the lives of some 30,000 women — professionals, wives, mothers and daughters — every year, yet there is a pervasive, quiet understanding that we just don’t talk about them. An outspoken nonprofit called Let Every Woman Know–Alaska is working to change that. “Our mission is to raise awareness so we can improve prevention and survival of gynecologic cancers,” says the organization’s founder, Joanie Mayer Hope, M.D. To raise awareness, she says, “We need to make some noise.” As the medical director of Gynecologic Oncology at Providence Cancer Center, Dr. Hope is passionate about giving a voice to this issue. She frequently talks, and even sings, about it (check out her band, No Evi-
dence of Disease, at nedtheband.com). If more people talked about these cancers, she believes, more women would be aware of the warning signs; more cancers would be discovered earlier; more treatments would begin sooner, when they have more success — and more women would survive them. So this September, during Gynecologic Cancer Awareness Month, we got the conversation started. Here are some things that Let Every Woman Know wants every woman to know: Know your body “The most important thing that a woman can do is to get to know her body,” says Dr. Hope. “There is no shame in investigating and understanding your own anatomy. You have to know what your normal baseline is before you can recognize when a new lump shows up that wasn’t there before.” Know the signs Some cancers send out clear warning signs, such as abnormal bleeding, itching, pain, lumps or bumps. These should always be evaluated by a physician. “Any bleeding outside of a normal period — whether it’s bleeding between periods, excessively heavy periods, bleeding after sex or bleeding after menopause — could be a concern and should be evaluated,” says
24 | advancing anchorage magazine | Fall 2014
AK-AA_141100_HEALTH.indd 24
Dr. Hope. “Even a small drop of blood after menopause should be evaluated right away.” Other cancers are harder to detect. The symptoms of ovarian cancer, for example — bloating or swelling in the abdomen, difficulty with digestion, changes in bowel habits, vague abdominal pain — are very subtle and could be caused by any number of ordinary complaints. “Stay on it,” says Dr. Hope. “Keep telling your doctors: ‘Hey, there’s something wrong here. Let’s figure this out.’ You need to be a vocal advocate for yourself.” Know your family history Some gynecologic cancers have no symptoms until the latest stages. For these, says Dr. Hope, “Family history is the most powerful tool we have right now. We’re learning that as many as 20 percent of gynecologic cancers may have a genetic component.” If you have a family history of ovarian, breast, fallopian tube or primary peritoneal cancer, talk to your doctor. Know about — and practice — prevention Pap screenings and routine pelvic examinations can catch pre-cancerous changes that could lead to cervical cancer. The HPV vaccine, when given to young women, can prevent cervical and other gynecologic can-
Courtesy Photo/Providence Medical Center
The cancers that we don’t talk about — but should
10/2/14 1:41:04 PM
Courtesy Photo/Providence Medical Center
cers for life. Of course, one of the best preventive tools every woman has is her voice: If you feel that something is wrong, talk to your doctor. Know when to speak up “Women should never feel inhibited in any way to tell their doctor, ‘I’ve noticed a change from my normal,’” says Dr. Hope. “Even vague symptoms – a little bleeding that’s never happened before, a strange feeling of fullness or bloating – are reasons to see your doctor immediately, because if we catch these cancers early, we can do a lot more about them.” Know that help is here, close to home For women diagnosed with gynecologic cancers, says Dr. Hope, state-of-the-art, compassionate care for the body and the spirit is available at the Providence Cancer Center. Patient navigators here help people access everything from the latest cancer therapies to counseling, dietary guidance, spiritual care and oncology rehabilitation. “It’s a carefully and lovingly created environment,” says Dr. Hope, “where people get all of their needs addressed under one roof.” Ideally, Dr. Hope would like to see fewer women require those services — or at least get them earlier. So let’s make some noise. Let’s all get comfortable with some personal terms. Let’s talk about the signs and symptoms of gynecologic cancer — and make sure that more women live to talk about it. For more information on gynecologic cancer prevention, visit www.leteverywomanknow.org. To learn more about care and services for women with gynecologic cancer, visit Providence Cancer Center at www.alaska.providence.org.
Anchorage Chamber of Commerce | 25
AK-AA_141100_HEALTH.indd 25
10/2/14 10:40:21 AM
Willis Lyford led the successful campaign to oppose Ballot Measure 1, which was defeated by more than 10,000 votes in the Aug. 19 primary.
AK-AA_141100_FEATURE_2_POLITICAL.indd 26
10/2/14 1:35:14 PM
Spin Doctor s of
ALASKA
An inside look into the business of political campaigns
By Corey Hester Editor
Photo/Michael Dinneen/Michael Dinneen Photography
P
ublic relations. Propaganda. Politics. And Money. These four are synonymous during any political campaign season, and Alaska’s 2014 election will feature an all-time high of all four. The city of Anchorage is burgeoning with signs of all sizes touting the best candidate for office, or which ballot measure to uphold, repeal or enact. Television stations seem to be airing more political advertisements than entertainment. Alaska’s political consulting and strategy businesses are playing a larger role in political campaigns offering experience and useful strategic planning, for candidates looking for an edge. For today’s candidates running for office, a large bank account is necessary to hire what are commonly called, political hit men. The cost of political consulting and advertising businesses has risen significantly in recent years due to changes in campaign finance laws. Many campaigns are spending over $10,000 a month in strategic consulting and advertising costs, while other campaigns can burn through more than half a million dollars in a given month.
Prices have increased since the January 21, 2010, U.S. Supreme Court ruling in Citizens United. Under the ruling, corporations, unions and organizations now have the same rights as people and can give unlimited amounts of money to candidates or Political Action Committees (PACs). Campaigns can be expensive, money sometimes hard to raise, so research and strategic planning is one of the most valuable components of any campaign. High profile campaigns cannot succeed without access to solid, reliable data, said Willis Lyford, a veteran of more than 40 campaigns. Lyford is senior vice president of Porcaro Communications and specializes in statewide ballot measures on resource development campaigns. Lyford explains that good survey research lets you understand where you are starting and helps you develop a roadmap to get you to victory. “That is, in my view, one of the hardest parts of any campaign,” he said. Lyford mentions the key to success is the
“managed” part by applying a disciplined approach that centers on some key fundamentals: research, strategy/tactics, outreach/field program and a good, smart, hard-working staff.
Citizens United A lot has changed since the U.S. Supreme Court ruled in Citizens United v. Federal Election Commission that it was unconstitutional to ban free speech through the limitation of independent communications by corporations, unions and associations. That meant that corporations and unions may spend their money to support or oppose political candidates through independent communications such as newspapers, television and internet advertisements. Before Citizens United, campaigns were more tightly regulated by government agencies. As a result of loosening campaign finance reporting requirements, money into Alaska campaigns have begun to entertain millions of dollars from outside special interest groups, not just due to the high
Anchorage Chamber of Commerce | 27
AK-AA_141100_FEATURE_2_POLITICAL.indd 27
10/2/14 1:35:33 PM
A History of Br By John Tracy President/CEO, Bradley Reid + Associates
stakes, but the relatively inexpensive media costs compared to other markets.
Alaska Players, Portfolios, & Procedures There are over 200 advertising and marketing firms in Anchorage. One particularly well known and established Alaskan firm is Bradley Reid & Associates, Inc. They have been around for 40 years and have advised such well-known corporations as Conoco Phillips, AT&T, Pebble, and Providence Alaska. One of Bradley’s better-known clients was Sen. Lisa Murkowski for her historic 2010 write-in campaign. They have also represented Pebble Limited Partnership since 2008, advising the corporation on permitting and development of the controversial project.
But what do these firms actually do? Some have particular strengths in voter polling such as one of the nation’s oldest firms, Dittman Research. Since its founding in 1969 by David Dittman, they have accurately predicted the outcome of every race for governor and the U.S. Senate in Alaska. Dittman traditionally represents clients on one side of the aisle. “It can be difficult because in a political campaign they expect everyone to be 100 percent loyal to it,” said Matt Larkin, owner of Dittman Research. However, polling firms also need campaign execution expertise that traditionally resides outside of a polling. Willis Lyford, for example, has 35 years of experience in federal, state, and local level campaigns spanning across three states. Over the last three decades he has managed many high profile campaigns. Most
AP File Photo/Michael Dinneen
Sen. Lisa Murkowski won reelection in 2010 in a historic bid as a write-in candidate after she lost the Republican primary to Joe Miller.
When Sen. Lisa Murkowski needed a media campaign to get her back in the race for U.S. Senate, or when GCI needed the expertise to build the first high-definition television station in Alaska, they turned to Bradley Reid and Associates. When Alaska Public Media and Imaging Associates of Providence needed a new look, Bradley Reid designed and launched their rebranding campaigns. And when the number of tourists visiting Alaska reached an all-time high last year, state officials pointed to their marketing campaign — designed and implemented by Bradley Reid. Today, with 24 employees, Bradley Reid is among Alaska’s largest advertising and public relations agencies and one of the largest fullservice agencies in the Pacific Northwest, with clients that stretch from Barrow to Los Angeles. Bradley Reid first opened its doors in 1968, when the late Rod Bradley launched an agency that would forge new ground in communications. It’s a tradition that has been handed down ever since, as ownership passed to Connie Reid and to the current owners, Debbie Reinwand and John Tracy. A former journalist, Reinwand first joined the agency in 1995 after five years as executive director of Arctic Power. She’s been instrumental in the tone and messaging behind ConocoPhillips, AT&T and the Alaska Permanent Fund. In addition to her experience in marketing and branding, she provides extensive public relations counsel for clients and is one of a handful of Alaska professionals to receive crisis communications certification. John Tracy joined Bradley Reid in 2008 as a partner and co-president with Reinwand. Tracy had worked the previous 23 years as an awardwinning anchor and news director at KTUU Channel 2 News. John’s expertise in creative messaging has helped clients like Providence, Arctic Slope Regional Corp. and Alaska Tourism. “I think what separates us from other agen-
28 | advancing anchorage magazine | Fall 2014
AK-AA_141100_FEATURE_2_POLITICAL.indd 28
10/2/14 1:36:01 PM
cies is ous ca market I starte Alaska you’ve 30 yea In 20 to mak she rea all broa This in the fi extensi lips Ala since it ago. Th On One poratio The ka’s to Their e also be Corp. a Heal cy, whi Provide ifornia, of Prov From profits the Ala in its c improv life in A “We represe leading nies in their b secto Deb said. see our as ners our cl whethe
of Bradley Reid + Associates cies is the experience we bring from our previous careers, and our knowledge of the Alaska marketplace,” John said. “Both Debbie and I started as communicators. We understand Alaska in a way that you simply can’t unless you’ve been listening to Alaskans for more than 30 years.” In 2010, when Sen. Lisa Murkowski decided to make a run at an historic, write-in campaign, she reached out to John and Debbie to produce all broadcast media for her campaign. This year, Bradley Reid was heavily involved in the fight against Ballot Measure 1, developing extensive media and materials for ConocoPhillips Alaska, which the agency has represented since it was known as ARCO more than 40 years ago. The firm also coordinated media for No One On One, the coalition of six regional Native corporations formed to oppose the initiative. The agency has marketed the state of Alaska’s tourism program for more than 20 years. Their expertise in destination marketing has also benefited clients like CIRI Alaska Tourism Corp. and the Alaska Marine Highway. Health care is also a specialty of the agency, which has created effective campaigns for Providence Health and Services Alaska and California, and most recently, Imaging Associates of Providence. From the Alaska Permanent Fund, to nonprofits like Hope Community Resources and the Alaska State Fair, Bradley Reid believes in its clients, and supports their efforts to improve the quality of life in Alaska. “We’re proud to represent Alaska’s leading companies in each of their business sectors,” Debbie said. “We see our role as partners with our clients, whether it’s
a large branding campaign or a grass-roots public relations effort. Big or small client, we put our heart and soul into our work, and our partners know that.” Part of Bradley Reid’s success comes from the many services it offers. They include an in-house edit suite with state-of-the art edit software producing national qualityhigh-definition television spots, along with a professional recording booth for producing audio tracks for both television and radio. Another critical element of the Bradley Reid team is the media department, which is responsible for strategic media planning, contract negotiations, media placement and post-buy analysis for all of the company’s clients. Bradley Reid’s media managers have more than 40 years’ experience in Alaska, and have developed solid relationships with the state’s radio and TV stations and newspapers. Bradley Reid is also at the forefront of online advertising and is the largest purchaser of targeted online media in Alaska. The company has also made a major commitment to social media, with online media strategists that help clients successfully use the proper online tools and track the results, and the recent addition of a digital marketing specialist with national experience in the travel industry. It’s all part of Bradley Reid’s long tradition of staying ahead of the curve and creating engaging campaigns that help clients communicate instantly with their customers, no matter where they live.
recently, Lyford was the strategist for the “Vote No on 1” campaign that successfully defeated an attempt to repeal Alaska’s oil tax reform legislation. Strategies and execution greatly depend on the financial resources the campaign has at its disposal. For a local or legislative campaign, you don’t have the luxury to engage in comprehensive research and analysis, states Lyford. “You just have to dive in based on instinct and experience. But for larger statewide campaigns and certainly for ballot measures, I like to say that campaigns are managed chaos,” he said. Large amounts of cash flow to campaigns are no surprise to Lyford, who managed close to $13 million for the Vote No campaign. Yet, a large reason for this is due to the rising cost of TV and media ads that as Lyford puts, he’s never seen the television stations implement a cost schedule like they did during the campaign cycle.
Positive & Negative Attack Ads Attack advertisements are always in full swing come election time. While many voters say they are offended by negative campaigns, there are many consultants who say they work because the negative advertisements focus on important political issues or the shortcomings of the opposing candidate. Such focus gives voters critical information about the differences in candidates or issues. Consultants often argue that attack advertisements do not degrade campaigns but strengthen and enrich debate vital to the democratic process. Alaska consulting firms advise campaigns on how to brand a candidate or initiative utilizing both positive and negative messaging. Negative advertisements, it is often said, that is risky, but in large part it works. Frontrunners in political races often find themselves targeted by opponents with negative attacks. Voters dislike negative campaigns and every candidate denies they’re running negative campaigns, instead claiming they are educating voters about an opponent’s record, but the truth is — negative campaigns can tip the scale when it comes down to the wire.
Bradley Reid + Associates Co-owners John Tracy and Debbie Reinwand Anchorage Chamber of Commerce | 29
AK-AA_141100_FEATURE_2_POLITICAL.indd 29
10/2/14 1:36:13 PM
Many voters hear during campaigns about polling data consistently through the political season. Yet few people actually understand the method and process behind how the numbers are obtained, analyzed, and ultimately delivered to the public. When it’s done right, it is an accurate social science, however but represents only a snapshot of a moment in time. Accurate pollsters adhere to strict standards as to sample sizes, selection of voters then factor in margins of error. A prominent example of polling errors is found in the 2008 election for one of Alaska’s U.S. Senate seats. Research 2000, a Maryland-based firm, released a poll days before the election that showed challenger
The Future of Alaska Campaigning Technology is advancing the way cam-
Matt Larkin, the owner of Dittman Research, said the key to polling Alaska accurately is identifying people who actually show up to vote. Dittman Research has correctly predicted the outcome of every Alaska governor and U.S. Senate race since 1969.
paigns communicate to the public. “’How we communicate to the public is changing,” says Willis Lyford. “Digital, online and social media are growing rapidly in importance, and, as people swap out their land lines in favor of cell phones, our ability to assess voter attitudes is becoming harder.” Accurate polling data is becoming more of a challenge as more people are abandoning traditional land lines and using cell phones exclusively.
What Really Matters Alaska used to be thought of as an appendage in a far off place. Not so much anymore. In the future, firms specializing in communications, marketing and polling will have a bigger say in how Alaskans are influenced as new methods and technology emerge. But as Lyford puts it, “fundamentally what will not change is the need to think critically, understand issues and communicate to the public in a way that motivates them to vote.” In the end, it boils down to Alaskans showing up to cast their ballots going in the privacy of the polling booth and making their own personal decisions.
Photo/Courtesy/Dittman Research
A Numbers Game
Mark Begich beating incumbent Ted Stevens by 22 points. Begich’s margin of victory barely exceeded one percentage point. Research 2000 consequently shut down in 2010 after being accused of fraud. Major polling errors like these can be largely explained due to polling. Polling experts say that one of the only ways to get the prediction terribly wrong is that the groups that end up turning out to vote is completely missed. “You have to be polling a group that at the end of the day shows up to the booths to vote,” says Larkin. Alaska has a small population and often firms doing polling have low response rates which results in Alaska being the fifth-most error prone in voter polling.
30 | advancing anchorage anchorage magazine | Fall 2014
AK-AA_141100_FEATURE_2_POLITICAL.indd 30
10/2/14 1:36:32 PM
AK-AA_141100_FEATURE_2_POLITICAL.indd 31
10/2/14 1:15:22 PM
member spotlight
GREEN Growing With Anchorage
By Gretchen Fowler, Greenhouse Manager & Monica Emerton, Owner Green Connection…our name describes our mission. In 1977, as the Alyeska Pipeline began connecting the world to the energy resources of Alaska, our fledgling company began connecting Alaskans to the beautiful world of horticulture through our garden center and landscape services. Many Anchorage residents have heard the name Green Connection, but many people do not know the full history behind our company or all we have to offer. Steve Shropshire and his wife Beth Ann were our company’s original founders. They opened the garden center that many Alaskans remember so fondly, as well as a thriving inte-
rior plant maintenance service. Their love of tropical plants eventually took them to Hawaii, after which Gary and Margie Schaefer purchased Green Connection in 2001. During the Schaefer’s ownership of Green Connection our commercial interior and exterior services were improved and expanded. We became very well known for distinctive design, excellent customer service, and the superb quality of our products. Gary and Margie retired in 2012, passing the Green Connection legacy on to the current owner, Monica Emerton. Monica began working for Green Connection in 2003. Her tenure with the company began as a seasonal flower maintenance worker during a summer off from college. After earning her Landscape Horticulture degree from Colorado State University she came back to Green Connection and took over the Operations Manager position. From there she moved on to Sales and Design manager, got her Masters of
Business Administration from UAA, and then as a final challenge took ownership of the company. In addition to running the show at Green Connection, Monica has enjoyed being involved in several Anchorage community organizations, including the Urban Design Commission, Building Owners and Managers Association, and the Fairview Business Council. She has made supporting local companies a large part of Green Connection’s business model, and has formed partnerships with several Alaskan companies to create a healthy business environment and to achieve the best possible results for our clients. Another task Monica has taken on is expanding Green Connection’s garden center. During the Schaefer’s ownership the garden center was downsized as focus was placed on the company’s commercial operations. Customers have asked us many times to expand our garden center back to what it once
Green Connections Staff
Courtesy Photos/Green Connection
CONNECTION:
Green Connection Grab and Go Table
32 | advancing anchorage magazine | Fall 2014
AK-AA_141100_MEMBER_SPOTLIGHT.indd 32
10/2/14 10:42:39 AM
books, bath and body products, teas, rustic planters, herbs, and annual flowers. We hope to carry more Alaskan made goods in the future as well. As mentioned previously, Green Connection’s offerings are not limited to the greenhouse. Our Interiorscape division offers Alaskan businesses unparalleled design, installation and maintenance services. We love to work with you so that your business gets exactly the right look, and can handle any design request from custom containers to green walls to atrium installations. We can install and maintain plants at large locations and we also love to do work for small businesses and residences. In addition to our Interior landscape services, we also offer Exterior flowerbed and container design and maintenance. Our horticulturalists and designers use unusual flowers and foliage to create plant combina-
tions that are both unique and beautiful. We love to experiment with different colors and styles, so give us a try if you want something grander than what you would find at a box store. And don’t forget about the holidays! From poinsettias to tree lighting, Green Connection can do it all! We excel at custom designs, so we can create gorgeous Christmas decorations to fit any color scheme and style. Our garden center will also be offering a sparkling array of holiday goods to help every elf deck the halls and trim the trees. Green Connection is the plant lover’s resource for all things horticultural. With our years of experience, educated and talented staff, huge variety of products, and commitment to our customers we aim to beautify Anchorage one garden at a time. Green Connection — the way to grow!
Courtesy Photos/Green Connection
was, and we listened! The garden center is once again retail-oriented, and we have lots of fun new products to offer. Some of our new products include terrariums, miniature garden figurines, a huge variety of containers, decorative lighting, gardening books, green walls, and garden accessories. We are once again offering exterior plants such as annuals, perennials, and veggies, and we focus on interesting varieties that are hard to find elsewhere in Anchorage. As usual, our houseplant selection is beyond compare. We currently stock interesting foliage plants in multiple sizes, cactus and succulents, carnivorous plants, fruiting tropical plants such as bananas and pineapples, orchids, bonsais, and much more. We have also started offering locally made products for sale in Green Connection’s garden center, such as jewelry, art,
Anchorage Chamber of Commerce | 33
AK-AA_141100_MEMBER_SPOTLIGHT.indd 33
10/2/14 1:06:05 PM
school business partnership
Max Friedli and Kylie Seagroves, along with James Gaddis, read the morning news.
By Cheri Spink Executive Director, Anchorage School Business Partnerships Mirror Lake Middle School’s Video and Radio News morning elective class taught by Emily Blahous had a special opportunity to get a behind the scenes tour of the new KTVA Channel 11 news station, their school business partner for many years. With on air talents James Gaddis, Laurie Tipton and meteorologist Brett Shepard leading the tour and giving valuable insight into the workings of a news broadcast, the students were inspired and dazzled. “This is like the best opportunity ever!” Max Friedli, Mirror Lake student exclaimed. The facilities are remarkable. “I have been in media facilities all over the country and this station is the newest and most modern of them all,” exclaimed Tipton. The students at Mirror Lake have been
broadcasting morning news in their school all year. They write and edit copy, film, edit film, do the graphic design work and take turns being the on screen commentators. In December, Tipton visited Mirror Lake Video News room. “They did great. I was really impressed with the content and we do a lot of the same on our show,” she said. The students learned about jobs available in a broadcast station and what type of education they require. “Go to college and get a degree” was a common theme. Broadcasters have to rely on other skills to be successful, including writing, editing and research. The students were surprised to find out that Gaddis and Tipton have to be at the station by 3 a.m. for the morning news. Tipton shared, “I get up by 1:30 a.m. to get to the station in time. When we get to the station there is much to be done before going on the air.” A highlight of the experience for the students was the opportunity to sit on the couch of the Day Break set and stand at the table where the evening news is presented. Each of the students was able to read a video
feed from a teleprompter as if it was a live broadcast. It wasn’t as easy as they thought. They found ad-libbing is challenging. “What do you do if you have an itch or have to sneeze?” asked one of the students. “Under no circumstances do you scratch an itch or sneeze on camera,” said Gaddis. “You will never live it down if you do.” Doing the weather was another enlightening experience. “Stand in front of the green screen and watch the graphics on the monitor. Point to the areas you are talking about by watching yourself on the screen. If Unalaska is to the right, you have to point to the left,” were the instructions from meteorologist Shepard. his proved to be very disorienting to the students as they stood in front of the blank green screen and gave it a go. On the way out of the studio, the students noticed a framed and enlarged news article featuring Augie Hiebert. The class studio at Mirror Lake is named after him. “He came in and was a very enthusiastic supporter of our program from the beginning,” explained Emily Blahous. “He was also the founder of KTVA and is known as
Courtesy Photos/Anchorage School Business Partnerships
Lights, Camera, Action!
34 | advancing anchorage magazine | Fall 2014
AK-AA_141100_PARTNER.indd 34
10/2/14 10:54:08 AM
Ebony Williams broadcasts to her listeners on KFAT radio and sends a shout out to Mirror Lake students.
responses before it was broadcast. This fascinated the students as they do similar tasks in their newsroom and radio station. She also encouraged them to go to college and study journalism, electronics or other related subjects. “We would starve if we tried to live off of what we make being a radio DJ,” she said. “We write commercials, research goods and services, do promotional advertising, work
on the equipment, market our stations and work with sponsors.” This was a field trip that these students will not easily forget. Some are interested in pursuing a career in media and were able to get a good look at what that means thanks to their school business partners. Hats off to KTVA and KFAT for giving these lucky students the opportunity.
Courtesy Photos/Anchorage School Business Partnerships
the Father of Alaska Television. From KTVA the students headed over to another media partner station. This one was the radio station KFAT in the AHANA Media Group. Here they were treated to a tour from radio personality Ebony Williams. She was on the air so students were able to watch her work. Then she had them talk to her on air and showed them how she could edit out mistakes or unexpected
Tia Kelliher and Noah Pope on the Daybreak set.
Anchorage Chamber of Commerce | 35
AK-AA_141100_PARTNER.indd 35
10/2/14 10:54:30 AM
business leader profile
CEO Q&A — Bill O’Leary, Alaska Railroad
How did you get into the railroad business? My first job out of college was as an auditor for the Alaska State Legislature. At that time, the Alaska Railroad had recently transitioned from federal ownership and there was keen interest within the legislature about the railroad’s activities. I was the lead auditor on financial and management reviews of the organization for a number of years, over which time I became intrigued by the railroad’s dual mission of being selfsustaining and yet charged with helping with the economic development of Alaska. When the Chief Financial Officer position became available, I jumped at the opportunity and was fortunate enough to be selected for it. What is the biggest challenge the Alaska Railroad faces? While the railroad faces challenges on many fronts, the most immediate issue is to stabilize its financial condition in light of some marked decreases in both key business lines and other fund sources, while at the same time deal with the unfunded federal mandate of installing a hugely ex-
pensive positive train control safety system. And we need to do all this while operating safely, provide great customer service, keep our existing infrastructure in good shape, look for ways to foster economic development for Alaska, and provide a great place to work for our nearly 700 employees. What is your advice for young professionals? Be engaged and involved not only at your job, but also in the community; it pays untold dividends to all. On a more specific note, continuously develop your written and oral communication skills; you can be the brightest person in the room, but if you can’t get your point across in an appropriate manner, your intellect and training are of diminished value. How has technology changed the railroad business? Most people would be shocked at how large a role technology plays in a modern railroad enterprise. Even with a railroad our size, it’s amazing to see all of the complex systems required to safely and efficiently transport freight and passengers in the world today. Technology has been a key driver of the growth railroads have experienced, permitting less costly, safer, and more efficient logistical movements than even ten or twenty years ago. The PTC technology project will have a significant impact on
36 | advancing anchorage magazine | Fall 2014
AK-AA_141100_CEO_PROFILE.indd 36
10/2/14 10:57:26 AM
Courtesy Photo/KTUU
What was your first job? My first job was working for the neighborhood convenience store, Denali Grocery, in Fairbanks in 1975. I was ten years old and obviously unaware of child labor protection laws when I accepted the position of raking trash up in the parking lot and sweep-
ing out the “Dark Shadows”-type basement storeroom. Given that it was Fairbanks in the winter, I placed significantly greater management emphasis on cleanliness of the basement area.
Courtesy Photo/Alaska Railroad Corp.
Bill O’Leary was born in Fairbanks, graduating from Monroe High School and the University of Alaska Fairbanks. Upon graduation from UAF with a bachelor’s degree in accounting, O’Leary worked for the state Division of Legislative Audit in Juneau, conducting financial and performance audits of state entities. In 1989, he transferred to DLA’s Anchorage office, working there until accepting the position of Controller with the Alaska International Airport System, where he was responsible for the financial activities of the Anchorage and Fairbanks International Airports. In 2001, O’Leary became the Chief Financial Officer of the Alaska Railroad Corp. In 2013, he transitioned to the railroad’s Chief Operating Officer position and that November he was appointed CEO. He is married with two daughters and resides in Anchorage.
Dan Newman - Advancing a Successful Business Network The Anchorage C h a m b e r ’s Ambassador Council promotes membership within the organization while developing and expanding personal business networks. Each year, one Ambassador is celebrated at the Anchorage Chamber’s Annual Gold Pan awards in early October. The coveted award is in recognition for his or her above and beyond service to the organization, helping the Anchorage Chamber advance a successful business climate on a consistent basis. We are happy to present the honors to Dan Newman of KTUU Channel 2 this year! railroads also, enhancing safety, but perhaps at a cost of delaying implementation of other important projects.
Courtesy Photo/KTUU
Courtesy Photo/Alaska Railroad Corp.
Do they let you drive the trains? No. I’ve asked. Is commuter rail from the Valley a possibility? It is. We’re always looking at how to enhance our passenger service offerings. We went through a robust planning exercise last winter regarding the proposed “Wasilla Turn” service, but had to table it due to the magnitude of the subsidy such a service would require at the same time we experienced a serious downturn from our largest freight customer (the closure of the Flint Hills Resources refinery outside of Fairbanks). We like the concept of this service, but it’s not financially feasible for the Alaska Railroad to
ambassador of the year
Dan Newman is a born and raised lifelong Alaskan of almost 28 years and is the proud father to his 7-year old son, Anthony, who shares his father’s Oct. 22 birthday. Dan has worked for KTUU Channel 2 for nine years. Dan’s work goal is to provide his clients with the best return on their advertising investment dollar by educating business owners and marketing professionals that it doesn’t have to take tens of thousands of dollars every month to put together an effective advertising campaign. Using the strong power of KTUU, Dan helps his clients put together an effective and targeted campaign that will help them cut through the media clutter and increase their market share and top of mind awareness about their products or services. As an Anchorage Chamber Ambassador, Dan volunteers his time with helping grow both the Ambassador Council and
the Anchorage Chamber membership by bringing in new members and helping existing members take full advantage of their membership benefits. He is also frequently seen helping out and networking at the monthly Business After Hours events and Make it Monday luncheons. He also takes great pride in volunteering for different roles for the Annual Anchorage Chamber Networking Train Ride, the Annual Military Appreciation Picnic and most recently, emceeing the 2013 Gold Pan Awards. To his credit, Dan received the 2012 Anchorage Chamber Volunteer of the Year Gold Pan Award in 2012. Dan has truly invested in his membership and never hesitates to help the organization in its mission to advance a successful business climate. Congratulations on a well deserved award, Dan!
solely take this one on currently.
What does the future of the Alaska Railroad look like? Bright. The Alaska Railroad is a key piece of infrastructure in a state that is stunningly light on basic infrastructure. Alaska needs a viable, strong railroad to keep the state moving forward. Working with our Board of Directors, we’re in the final stage of completing the organization’s strategic direction for the next few years to chart the course forward and create measurable goals to make sure we’re on-track. We’ll be working hard on external issues such as diversifying and growing our revenue base, controlling costs, making smart investments, and being a good neighbor, but we’ll also have an internal focus on our employees and the organization’s culture. I’m not saying it will be easy to get there, but it’s critical for the railroad’s success that we do.
What’s your favorite train movie? They make movies about trains? I can tell you my favorite train TV show is the Destination America Channel reality show, “Railroad Alaska,” whose second season has just completed filming. While the producers continue to ignore my pitch about how exciting it would be to follow the CEO around for a day, it’s a program that has some fabulous footage of how difficult railroading in Alaska can be and how our employees rise to the challenge on a daily basis. Is Thomas the Tank Engine a role model for the railroad industry? No, but the CEO of Thomas’ railroad, Sir Topham Hatt, is a personal hero and inspiration for me.
Anchorage Chamber of Commerce | 37
AK-AA_141100_CEO_PROFILE.indd 37
10/2/14 10:57:40 AM
Smart businesses don’t join chambers; they retain them
By Patrick H. McGaughey, CPF Activatingpeople.com In reality, smart businesses don’t join the local chamber of commerce, they pay the chamber’s membership fee for the chamber to join them. What they really do is look at chamber membership fees as a retainer for consulting services at a fraction of the going rate for consultants like me. Smart businesses have business plans and those plans usually include research, data development, business insurances, HR training and of course marketing. The intelligent strategy here is to contract with an organization that can support those strategies efficiently and at an amazingly low cost compared to private consulting firms, like mine. Smart businesses know that data is king and the local chamber of commerce is the first resource for the demographics and other numbers needed to update our business plans and have a pulse of the numbers that feed our plans. For example, the chamber compiles key numbers like housing and unemployment updating them for an efficient look at our local community as we prepare to recruit new employees. It’s amazing how major employers like hospitals are often the first to utilize the local chamber for recruiting physicians and highly sought after technical employees by using the data available and the community marketing material provided by the local chamber. When we hear, “The chamber doesn’t do anything for me,” smart businesses understand that this is actually a good thing. What this really means is that we haven’t
had to call the chamber for help. It’s similar to buying insurance. We all buy insurance hoping we never use it. If things are running smooth, we don’t need the local chamber to “do anything” for us. But, if there is an issue such as an unfriendly local government regulation, education improvement or a need to improve our local transportation infrastructure, the chamber staff serves as your “member agents” to address the issues and they usually can’t wait to help and prove the chamber’s value to you. As for Human Resource training, smart businesses include the local chamber of commerce as a key part of their training strategy. Chambers historically contract with speakers and consultants to address leadership, management, marketing, sales and customer service courses for a fraction of the price a business would have to pay individually. Working cooperatively with the chamber’s training agenda in these areas leaves thousands of dollars available for the technical trainers we must hire within our respective industries. Credibility and character is another reason why smart businesses have the local
chamber join their business plan. For many businesses, 90 percent of their customers are out of town so they don’t see the values listed above because they think it’s just about doing business with each other on the local level. Smart businesses are sure to include their local memberships when marketing the credibility and character of their organization. It speaks volumes to a potential client when they see a corporation not only invests in their own business, but in their home community as well. A smart account representative will always include this in her or his presentation. This is a peek at why smart businesses don’t join the chamber but why they have the chamber join their business plan. As for the bottom line, an average $500 annual (not monthly) retainer is a no brainer. Patrick H. McGaughey, CPF is an international business consultant, speaker and certified professional facilitator headquartered in Coeur d’Alene, Idaho. For more about Pat, go to www.activatingpeople.com.
Top Illustration ©Shutterstock/ra2studio: Bottom Illustration ©Shutterstock/pedrosek
chamberology
38 | advancing anchorage magazine | Fall 2014
AK-AA_141100_CHAMBEROLOGY.indd 38
9/23/14 11:35:36 AM
AK-AA_141100_CHAMBEROLOGY.indd 39
9/25/14 2:51:58 PM
around town calendar Tim McGraw Oct. 28-29, 2014 Alaska Airlines Center Website: alaskaairlinescenter.com McGraw will be one of the first major musicians to play at the new Alaska Airlines Center on the University of Alaska Anchorage campus.
Great Alaska Shootout Nov. 25–29, 2014 Starting Times Vary Website: www.goseawolves.com The men's field will feature UAA hosting 2009 Shootout champion Washington State, fourth-time visitor Pacific, and tourney newcomers Colorado State, Mercer, Missouri State, Rice and UC Santa Barbara. The women's field will feature UAA hosting Boise State, Long Beach State and Yale.
AT&T Downtown Holiday Tree Lighting Ceremony Nov. 28, 2014 5:30 p.m. – 7 p.m. Downtown Anchorage in Town Square Park Website: www.anchoragedowntown.org Enjoy FREE cookies, hot cocoa, music, holiday music, the Dancing Tree, Santa and his Reindeer and the lighting of the AT&T Holiday Tree.
New Year’s Eve Events Dec. 31, 2014 5 p.m.–1 a.m. Downtown Anchorage, Town Square Park Local: 907-929-4528 Website: www.anchoragedowntown.org With fireworks and live entertainment, New Year’s Eve is always a feast for the eyes and ears.
Celebrate with NECA/IBEW Fire & Ice New Year’s Eve in Town Square Park. The fun starts at 5 p.m. with a dance party and culminates in a kid-friendly fireworks spectacular that lights up the night at 8 p.m. True to the name you’ll find hot entertainment and icy fun, with a children’s ice gallery, food vendors and 3-D light projections all around Town Square. The grownups can party through the first hours of 2014 at the New Year's Eve Masquerade Ball at Dena'ina Center. Billed as "Alaska's largest and classiest New Year's Eve Party," this bash is open only to those 21 and older and runs until 2 a.m. on New Year’s Day. If you'd rather turn back the clock get your tickets for the New Year's Eve Rewind party held at the Hotel Captain Cook. Dance into the New Year with the greatest hits of the '70s, '80s and '90s.
CAPITOL GLASS CO., INC. (907) 272-4433 |www.cgnw.com LA BOUM EVENTS (907) 952-5982 |www.laboumevents.com GOVERNOR’S COUNCIL ON DISABILITIES AND SPECIAL EDUCATION (907) 269-8990 |dhss.alaska.gov/gcdse/Pages/default.aspx PACIFIC NORTHWEST ADULT AND TEEN CHALLENGE ALASKA (907) 545-1179 |www.teenchallengepnw.com/alaska RASMUSON FOUNDATION (907) 297-2700 |www.rasmuson.org ALASKA PRINTER SERVICE (907) 727-3357 |www.akprinterservice.com ALASKA PARK (907) 222-4002 |alaskapark.com
TILTED KILT PUB AND EATERY (907) 770-5458 |www.tiltedkilt.com RAVENS’ ROOST COHOUSING (907) 399-2051 |www.ravensroostcoho.org CLASSIC ALASKA TRADING CO. AKA ARMY NAVY SURPLUS (907) 279-2415 |classicalaska.com SHILOH COMMUNITY DEVELOPMENT, INCORPORATED (SCDI) (907) 770-9835 |scdialaska.org ANCHORAGE SIGN & DESIGN (907) 272-7446 |anchoragesign.com PHONES PLUS, INC.- A VERIZON PREMIUM RETAILER (208) 619-6101 |www.phonesplusinc.com ANCHORAGE MESSENGER SERVICE (AMS COURIERS) (907) 278-2736 |www.amsalaska.com
AP Photos/File
new members
40 | advancing anchorage magazine | Fall 2014
AK-AA_141100_ATC_NEW_MEMBERS.indd 40
10/2/14 10:58:58 AM
AK-AA_141100_Cover.indd 3
9/25/14 2:39:24 PM
AK-AA_141100_Cover.indd 4
10/2/14 11:27:22 AM