Economic Development Department Report
Prepared January 7, 2005
By Lee Stoops
The Economic Development Department has reached agreement with the Alaska Business Development Center to bring its Volunteer Tax Program to our Borough in mid-March. We have invited contributions from area organizations and businesses to help us meet the overall cost of the program, which will be about $20,000. These funds are for travel, per diem, and administrative cost only and would be payable to ABDC. The eight tax technicians that will visit our villages are volunteer college students who have been trained in the nuances of tax preparation. Last year, the ABCD Volunteer Program prepared 3091 returns in over 75 villages around the state, resulting in refunds and credits totaling $3.2 million dollars, or over $1,000 per return on average. We will be coordinating the effort from the Borough office.
The Kotzebue Sound Fisheries Association met in December. An effort will be made to join the CDQ Program in this, the tenth year of the program, when is scheduled for review. Members of the Association have cause to believe that Kotzebue may be considered for inclusion. We are assisting the Association by licensing the group as a business (accomplished last month) and preparing a draft business plan for the organization that would show how CDQ proceeds would be invested in our fisheries development. The group also discussed the potential of having a processing ship come to our region to buy fish during the upcoming season. Informal negotiations suggest that a price of 41-45 cents per lb. may be obtainable under this scenario. It appears highly likely that a processor will make this commitment. We have recommended that the Association get a binding, bonded agreement with the processor as soon as possible. With regard to the final outcome of last year’s effort by Bering Sea Fishermen’s Association, Director Henry Mitchell reports that they continue to hold about 220,000 pounds of fish, or about half of the catch. They are attempting to market these fish for about $1.25 to $1.35 per pound to a variety of potential buyers. Even at that price, the operating result for the plant would be a small loss for the year. This would be due primarily to the lack of ice during the season, which limited the amount of fish that could be handled. Mr. Mitchell has not reserved word from the state about grant funds for the coming year. For those fishing or working in the fish plant this season, 1099 and W-4 forms were mailed out on January 14 by BSFA.
Art Center Development
A Toyo stove has been installed at the Kiana Art Center and I traveled there on January 5-6. I delivered and installed equipment including sanders, rotary tools, buffer, dust collection systems and many accessories and met with four residents who express interest in managing and using the facility. Ironically, the two-story addition to the old Traditional Council building was built with a grant to develop an art center about eight years ago. The project just never got off the ground. I have discussed the potential of turning operation of the art centers over to Maniilaq Association, as operational funds may be available from programs such as alcohol rehabilitation, vocational rehabilitation, suicide prevention, etc. However, on January 11, I was informed that Maniilaq did not envision such a role for the Association.
We sponsored “The Basics of Entrepreneurship and Evaluating Business Opportunities” just before Christmas and had a total of 17 participants over three nights. The Borough provided travel for two participants from the IRA Councils of Noatak, Buckland and Shungnak for the purpose of evaluating the potential of taking over the ANICA-operated stores as their own businesses. In cooperation with Maniilaq Association, we are going to help evaluate the businesses, as they exist, to determine the possible benefit to the communities.
Sales of locally produced arts and crafts were very steady through the Christmas season. We are also pleased to report that an art store has opened at the Heritage Center in Barrow recently. We have invited the manager, Pearl Brower, to spend a couple days with us in Kotzebue so that we can share as much of our experience with her as possible. We will be looking at the possibility of sending some of our regional art to that store, where they have considerably more tourist traffic than we have here. UPDATE: Pearl Brower will be in Kotzebue on January 13 and 14 to spend time reviewing our program operations and establishing terms for the outlet of our artwork at their store.
The maximum amount of our small business loans will be $800 in the coming year, just as it was last year. We have already had many inquiries about 2005 loans and will begin accepting applications in mid-January. Over the past three years, we have made over 200 small business loans to residents for the purposes of buying inventory for resale, tools, supplies and equipment, and raw materials for the creation of marketable products.
Other Involvements:
The Alaska Resource Development Council, on which I serve as the Borough’s representative, printed my article entitled “Looking Backward for A Prosperous Future” in their Quarterly Magazine. The article focused on the importance of the culture and traditional values in development.
As an appointed member of Youth Advisory Council for the Alaska Workforce Development Board, I will be attending a meeting in Anchorage on February 10.