April Report to Assembly

Economic Development

Fisheries Developments

While a grant request for further improvements to the Kotzebue fish plant will be acted upon by the end of this month, we have made strong moves to make needed improvements in the meantime.  Utilizing $19,000 in matching funds from the EDC budget, we have committed to refitting the second ice machine at the plant and insulating the ice storage room.  These changes will allow the plant to produce 10-12 tons of ice per day without any loss to melting.  The insulation will be sprayed on both the inside and outside of the building and covered with a protective coating.  These improvements will be allowable match for our grant, which is in heavy competition with nearly 120 other requests from around the state.  According to Al Adams, who is monitoring the situation for us, there are $30 million in requests and only $2.5 million in available funds.  On a brighter note, Alaska Airlines has committed to having at least one freight only flight daily to Kotzebue.  This will allow the Kotzebue Sound Fisheries Association to backhaul its fish to Anchorage on a reliable basis.  Finally, we have written to Senator Stevens office to request inclusion in the CDQ program.  The program is up for review in this, its tenth year, and we will at least make a valiant effort at getting our foot in the door.

Tax Assistance

A combination of Borough staff and the volunteers that we commissioned to come to the region prepared well over 150 income tax returns for residents of nearly every village in the region.  These returns resulted in well over $150,000 in refunds to those residents.  The total cost of that assistance to the borough was approximately $7,000 for travel and per diem costs.

Art Program

Strong sales of our region’s products at the Cultural Center gift shop in Barrow have inspired us to increase the quantity of our shipments to Barrow.  We expect to be sending shipments every two to three weeks, particularly in light of the reduction in local tourist traffic that will inevitably result from the closure of Tour Arctic operations.  According to our accounting office, our total sales are now over $650,000.

Grants and Loans

The loan program is being used regularly, largely for the purchase of inventory for resale and materials for arts and crafts.  Given the uncertainty of what the Permanent Fund Dividend may be in October, we are limiting loans to $800 again this year.  We continue to provide grants for tools and equipment, business licenses, website designs, education, and other start up costs of new businesses.

Art Centers

We have made a Tier II request to the Rasmuson Foundation for $80,000 that will allow us to complete the Kotzebue Art Center.  The current contract for $267,000, which will be performed between July 15 and August 15, does not include handicapped access ramp, new windows and doors, floor coverings, or siding for the exterior of the building.  We have made a similar request to the Alaska Mental Health Trust.

Economic Development Report

March 15, 2005

Commercial Fisheries Development

The Kotzebue Sound Fisheries Association has been meeting regularly at the Borough building with administrative support from the Department.  Developments:  We have pledged $20,000 in matching dollars for another Bering Sea Fisherman’s Association grant request for equipment and further improvements to the fish plant.  Main needs are more ice-making capacity, drain repair, waste removal system, and installation of a concrete pad outside the building.  We have also discussed inclusion in the CDQ program with Senator Stevens’ office.  Legislation governing the CDQ’s will be up for consideration this year and it is conceivable, although not altogether likely, that our area could be included.  We will do everything possible to insure consideration.

Art Center Development

The contractor and University administrator for the project visited Kotzebue this month to look at the building and review the contract.  Scheduled date for completion of the work is August 15.  We will have to pursue approximately $80,000 in additional funding for windows and doors, handicapped access ramp, work benches, siding and other additions to the work covered under the contract.  At this time, we plan to move the art program into that building in the fall.  A non-profit association will be established to operate both the building and the art marketing program.  This will a primary focus over the coming months.

Tax Preparation Assistance

The Borough has sponsored tax assistance in the region this year.  While we pursued co-sponsorship of this project from many local businesses and organizations, our only help came from Bering Air in the form of some inexpensive airfares.   Therefore, due to funding limitations, we had to scale back our plans to include just those villages that demonstrated the most interest.  A total of three tax specialists will be assisting all interested residents in Kotzebue, Selawik, Ambler, Shungnak and Kiana this week.

Art Marketing Program

Vika has continued to purchase arts and crafts from around the region, despite the fact that sales are predictably slow this time of the year.  However, we had our first sales from the Barrow outlet last month, totaling over $3,000, and hope to expand on that relationship.

Grants and Loans

We continue to accept and process loan and grant applications on a regular basis.  Our website has printable applications on line.

Travel

I will be out of the office during the first two weeks of April on vacation leave.