Small Business Development
In the annual ARDOR Report, which will be prepared and submitted to State at the end of this month, the final numbers for grants and loans to small businesses in our region will be formally tabulated. Well over 110 grants were administered in the fiscal year ending June 30, as well as 44 small business loans. The grant and loan programs are off to an energetic start in FY05 (beginning July 1), particularly due to the surge in new start-ups for fishermen. Small business grants have been utilized to pay for crew licenses for 24 residents since July 1, as well as for some gear and equipment purchases.

Fishing
The Borough provided a total of $40,000 in matching dollars to the Bering Sea Fishermen’s Association in association with the grant to renovate and activate the local fish plant. That match was provided in the form of both actual expenditures in support of the venture and a final payment of $16,000 directly to BSFA at the end of the fiscal year. The Borough has committed an additional $20,000 from our matching grant account for this fiscal year. Although numerous problems have been encountered with the delivery and installation of equipment for the plant, operations commenced on Monday, July 12. Although we are very early in the run, 10,000 pounds of product were shipped out to Great Pacific after the first two days of fishing. Great Pacific is also purchasing the roe. Improvements to the NANA fish plant have been extensive; including installation of a water line, new lighting, roof and wall repairs, office construction, rewiring, plumbing and clearing of the drainage system. The Board of the newly established Kotzebue Sound Fisheries Association has been active in assisting the entire project.

Art Center Development
At long last, the University/Borough project to renovate NANA’s “Old Tupiq Building” is going out to bid at the end of this month. Construction should begin in mid to late September and the building should be complete by the end of October. In addition to serving as arts and crafts center, the building will also house the Borough’s art program manager and serve as a showcase for our art marketing program. This will eliminate the huge traffic flow through the Borough office building, where dozens of people come each day to both sell and buy artwork. Additionally, both the Noorvik and Selawik art centers should be ready to open very soon. Renovation work has been completed on both donated facilities. The Borough has put funds on account to pay for utility expenses for these facilities through the small business grant program. Kivalina, Noatak, Kiana and Ambler have all identified buildings for sites of art centers in those villages as well and they will be targets for development in the coming year. Deering has also expressed interest in having such a facility. Both the Noorvik and Selawik buildings have been renovated for less than $5,000 each. In Buckland, where the modest art facility opened last December, 38 residents have signed use agreements for the facility.

Art Purchase/Marketing Program
This program continues to be well utilized by both sellers and buyers of art products. Purchases from this program are guesstimated to be approaching a half million dollars, meaning that we are turning over the $100,000 Revolving Purchase Account for the fifth time since the program began. The program is especially valuable to village craftspeople that have no local market for their work. It also represents a major source of interest from visitors to our region. The Borough office has become a regular feature of all tours operated by NANA.

Small Business Education
The Borough sponsored small business classes on July 5 and 6 in the Assembly Chambers. Seven local residents took advantage of this opportunity to learn about business planning and accounting.

Arctic Trade Fair
The Borough sponsored the annual art competition during the Trade Fair earlier this month. Prizes were awarded to first, second and third place finishers in the categories of atikluks, skin sewing, beadwork, jewelry, sculpture, masks, and birch bark baskets.

Travel
Lee Stoops was named to the Alaska Rural Development Council to replace Mayor Schaeffer, at his request. He attended his first meeting in June. Mr. Stoops will make trips to Selawik and Noorvik in the month ahead to organize artists for the opening of those art centers. Finally, the Borough is hosting a meeting of the Board of Directors of the Alaska Municipal League Joint Insurers Association on July 29 and 30. We are very honored that this statewide organization chose to have its meeting in Kotzebue this year. The 17-20 travelers will be spending 2-3 days in our area and contributing to our local economy. After their meeting in our Assembly Chambers on the 29^th, we will host a fishing derby for the participants in Kiana. Eight Kiana residents will be contracted to take up to three of the visitors out on their boats for a couple hours of trout fishing.