Economic Development
October Report to Assembly
Prepared by Lee Stoops on October 14, 2003

Small Business Loans
Loan applications were accepted through September 15 of this year. Approximately 200 loans have been issued in the three years that the program has been administered, but only 38 were executed this year due to the uncertain status of the Permanent Fund Dividend. Loans were made for the purchase of supplies and materials, inventory for resale, and equipment. The outstanding new business award has to go to Frederica and Tim Gavin of Buckland. The couple started a store in their home with just a $1600 inventory that they acquired with loans from the Borough program. They opened their door for business on August 18 and have already had sales in excess of $20,000. A list of all loan recipients for this year is available from our accounting office.

Small Business Grants
Over 37 small business grants have been approved in the first quarter of the year, putting us well on the way to reaching our goal of 100 for FY04. Many of the grants are in the $35-$150 range for basic tools and equipment to assist those engaged or wishing to engage in arts and crafts production. Other grants have funded a mechanic startup in Kiana, a drywall business and a locksmith business in Kotzebue, and a local hunting lodge. We also continue to support the development of an arts center in Selawik, which is nearly ready to open.

Arts Marketing Program
The program continues to work effectively for artists throughout the region. Sales were good on the local level this summer and fall. We are assisting the North Slope Borough with establishing an art store in their beautiful heritage center. It will become a major outlet for art for our region in addition to that of North Slope artists. We have recently begun to purchase products from a number of Barrow and Anaktuvuk Pass artists under our marketing program, which has positively impacted some Point Hope artists and the Shishmaref Tannery Cooperative as well.

Sulainich Art Center
The new art center will be constructed next summer at the site of the Old Tupiq Building. We recently spent time with Design Alaska, the firm that will be doing the design work for the new building. This project is the result of cooperation between the Borough, Chukchi Campus, NANA, Maniilaq Association and HUD Rural Development.

Fisheries Development
We continue to work with the Bering Sea Fishermens Association as coordinator for the re-development of the NANA fish processing facility. The Borough used its matching grant fund to provide the needed cash match for $432,000 worth of equipment and supplies for the processing facility, which will be managed by Bering Sea Fishermans Association initially. We are doing groundwork and acting as an expeditor on this project on a constant basis and will continue to do so through next summer.

ARDOR Program
I will be attending an ARDOR meeting in Anchorage on October 22. We will receive approximately $50,000 from the program this year. On behalf of the state's 12

ARDORs
I have been asked to make a presentation at the Alaska Municipal League annual meeting in Nome, which takes place in mid November.

Strategic Plan for Economic Development
The Strategic Plan for Economic Development for our region is being prepared at this time. It will be available for review by Assembly members, EDC Commission members and all interested parties in November.

Other activity
We have submitted a proposal to the State of Alaska for development of art centers in each of our ten outlying villages. Each facility would be similar in size and cost (1350-1400 sq ft.) to NIHA homes that have been built in the villages recently.

AVCP has requested our assistance in developing a loan program and small business education program, modeled after ours, and we are working with that organization.

Kawerak has requested our assistance in helping that region to establish an arts development and marketing program and we are providing that support.

We continue to accept requests for involvement with the school district for Career Days, Junior Achievement, and Inupiaq Days and do all we can whenever possible.

We assisted with a cultural exchange in October wherein a 9-member Russian delegation from Anadyr visited Kotzebue for wrestling matches.

We are entering an agreement to purchase and market Russian Native artwork that will benefit both the Russian artists and our marketing program. We have also been asked to consider marketing artwork from Magadan.