Borough and AIDEA Close to Agreement
May 21, 2003

At its April 29 meeting, the Borough Assembly addressed our concern about the financial arrangements between Teck-Cominco and AIDEA, the state's business development banking agency. As the source of funds for construction of the Red Dog haul road, AIDEA has been collecting annual payments from Teck-Cominco since the inception of the mine. Because those yearly payments total about $7 million more than the actual debt service, the state is receiving more direct revenue from the mine operation than either the Borough or NANA Corporation, the owner of the property on which the mine operates. As the Borough has extended its current bonding capacity to the limit while building schools in area villages, we have been exploring means of financing an additional $24 million for a Kotzebue High School addition.

After extended negotiations with AIDEA officials, we received word today that AIDEA is prepared to assist our borough with this additional financing. This is great news and we are appreciative of the efforts of all involved in this important outcome.

Personnel Update
Last month the Borough put a grant writer, Cheryl Winkler, on contract in order to allow us to assist villages with preparation of capital improvement funding applications. On behalf of Ambler, Cheryl just completed and submitted an application to the Denali Commission for a new multipurpose facility. She will be taking on a variety of new projects in the months ahead as a temporary hire.

Valerie Romaine, the Borough Clerk for several years before working as a special assistant to the mayor for the last two years, resigned from her position as of May 3, 2003. The vacant position may be filled in July.

Tom Bolen, the Public Services Director, continues to be on leave to recover from cancer treatment. All indications are that he is progressing very well and he hopes to back to work by early June.