Legislature(2019 - 2020)SENATE FINANCE 532
02/20/2020 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Aidea and Alaska Development Team | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
February 20, 2020
9:01 a.m.
9:01:00 AM
CALL TO ORDER
Co-Chair von Imhof called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Co-Chair
Senator Click Bishop
Senator Lyman Hoffman
Senator Donny Olson
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
Senator Bert Stedman, Co-Chair
ALSO PRESENT
John Springsteen, Deputy Commissioner, Department of
Commerce, Community and Economic Development; Tom Boutin,
Executive Director, Alaska Industrial Development and
Export Authority, Department of Commerce, Community and
Economic Development; Alan Weitzner, Chief Investment
Officer, Alaska Industrial Development and Export
Authority; Senator Cathy Giessel; Representative Jonathan
Kreiss-Tomkins.
SUMMARY
^AIDEA and ALASKA DEVELOPMENT TEAM
9:01:11 AM
Co-Chair von Imhof discussed the day's agenda:
Today we will have two presentations one from
the Department of Commerce, Community and Economic
Development discussing their new Alaska Development
Team, and one from AIDEA, or the Alaska Industrial
Development and Export Authority.
I invited both of these groups to discuss
economic development opportunities in Alaska. I
believe we have the financial assets, the natural
resources, and the people to develop a vision to
create new wealth for Alaska.
As new wealth is invested in our state, as
resources are harvested, as visitors come spend their
dollars here, we experience the positive benefits,
including more and better-paying jobs for Alaskans,
which means more money circulating in our economy.
To make Alaska an attractive place to live, work
and raise a family, we need jobs, effective education,
and safe and reliable transportation infrastructure.
We can do this through targeted investments in
projects by partnering with banks and private
investors. I am excited to hear from the Alaska
Development Team and AIDEA about how they plan to
leverage state resources and build public-private
partnerships to grow our economy.
9:04:13 AM
JOHN SPRINGSTEEN, DEPUTY COMMISSIONER, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, discussed
"Alaska North to Opportunity" (copy on file). He looked at
slide 2, " Alaska's Economic Development Strategy":
Need for "Statewide Coordination" recognized in
State's Comprehensive Economic Development Strategy
(CEDS) as informed by industry, business, and
government leaders.
Economic Development Capacity Building
GOAL: Strengthen the ability of Alaska
organizations to execute economic development
initiatives that create jobs and investment
Objective: Improve the resiliency and health of
existing business
Objective: Create new statewide coordination
mechanisms for economic and business development
Mr. Springsteen highlighted slide 3, "Alaska CEDS Committee
(2016/2017)." He stated that he had read the names of the
committee in the other body, so he did not list the names.
He noted that the committee represented different
persuasions, political affiliations, industry sectors, and
government leadership and involvement.
9:05:25 AM
Senator Wilson wondered whether the list was the current
committee.
Mr. Springsteen replied that committee is convened on a
five-year basis, so he believed it was the current
committee.
Senator Wilson wondered whether the committee members were
appointed as a person or appointed as a person within the
organization.
Mr. Springsteen responded that he could not speak to the
backgrounds of the individuals and the process by which
they were appointed to the committee.
Mr. Springsteen looked at slide 4, "AKDT: A New Approach to
Economic Development":
The Alaska Development Team (AKDT)
Mission
To promote growth of existing Alaskan businesses,
encourage new businesses to invest in Alaska, and help
create an economic environment that is favorable for
business development.
Vision
To enable a flourishing private sector economy that
brings job opportunities to the state and increases
prosperity and self-sufficiency for Alaskan families.
Fundamental Question
What can Alaska do today, with what we have in our
regions and communities, to grow and attract commerce,
industry, and investment?
Mr. Springsteen addressed slide 5, "Economic Development
Funding ($ Thousands)." He noted that, in FY 16, there was
funding for Alaska Seafood Marketing Institute (ASMI) in
UGF, which was now directed to ASMI separately. He remarked
that in FY 17, FY 18, and FY 19 there was funding of $1.6
million per year. He noted that in FY 20, the funding for
the division was cut to $547,000.
Mr. Springsteen looked at slide 6, "FY2020 Division of
Economic Development":
FY2020 budgeted positions for economic development
$547K
Mr. Springsteen pointed to slide 7, "Current Alaska
Development Team":
Current team structure implements renewed focus on
economic engine development for Alaska
Mr. Springsteen discussed slide 8, "AKDT Governance and
Participation." He remarked that the slide showed the
participation of the different groups to the economic
engine of the state.
9:09:56 AM
Mr. Springsteen looked at slide 9, "What Does the AKDT Do?"
We work with Alaskan businesses, governmental
entities, economic development organizations, industry
groups, and chambers of commerce to identify and
facilitate ways to make doing business in Alaska
easier.
How are we doing this?
?Promoting the advantages of doing business in Alaska
to prospective investors
?Serving as a facilitator to connect interested
parties and move investment ready commercial and
industrial projects forward
?Interacting with economic development organizations,
industry groups, and business owners and participating
in trade events to share information and ideas for
promoting business growth
?Identifying barriers to business development in
Alaska and developing approaches to resolve
impediments
Senator Wielechowski wondered whether the Alaska
Development Team had a website.
Mr. Springsteen replied that there was information on the
Alaska Development Team through the commissioner's website.
He furthered that there would be more information
forthcoming. He stressed that the goal was not to advertise
the Alaska Development Team, but rather to discuss
opportunities for investment and commerce in the state.
Senator Wielechowski asked whether money had been spent to
build a website.
Mr. Springsteen replied in the affirmative.
Senator Wielechowski wondered how much had been budgeted
and spent on the website.
Mr. Springsteen agreed to provide that information.
Senator Wielechowski asked whether there was a plan to put
up a website. He understood that there was $30,000 for a
website, so he queried the plan.
Co-Chair von Imhof wondered whether the intent of the
website was to access information about the group. She
wondered how there would be a presence online.
Mr. Springsteen replied that the information was currently
available through the commissioner's office, and the
website would soon be available. He agreed to provide
further information.
9:15:19 AM
Co-Chair von Imhof felt that after spending money to travel
to trade shows there should be an online presence. She
requested a one-page paper about that plan.
Senator Wielechowski wondered whether the Alaska
Development Team (ADT) received travel funding, and if so,
how much.
Mr. Springsteen replied that they were working with their
existing budget.
Co-Chair von Imhof asked for a repeat of the response.
Mr. Springsteen stated that they were working with their
existing budget.
Senator Wielechowski wondered how much was spent on travel.
Mr. Springsteen agreed to provide that information.
Co-Chair von Imhof requested a breakdown of all the
spending within the budget.
Senator Wielechowski wondered who the ADT had engaged in
communications.
Co-Chair von Imhof asked whether that information would be
later in the presentation.
Mr. Springsteen stated that the presentation listed
anticipated future activities.
Co-Chair von Imhof hoped that the committee would allow for
more slides to create the whole picture.
Senator Bishop felt that the ADT should move as fast as
possible.
Mr. Springsteen displayed slide 10, "Economic Engines":
"What drives the Alaska economy?"
2008 Scott Goldsmith article is still relevant today
9:18:42 AM
Mr. Springsteen looked at slide 11, "How Can AKDT Help
Alaska's Economy?":
By focusing on Alaska's economic engines and potential
growth sectors, we drive the Alaskan economy.
Senator Hoffman noted that there were three regional
corporations that had revenues in excess of over $1
billion. He felt that the Native corporations were a
critical contributor to the economic engine of the state,
which provide dividends to contribute additional drivers to
the economy. He looked at the second column, which
mentioned mariculture. He felt that it should be an area
that should be expanded upon. He noted that the Department
of Fish and Game (DFG) was recommending vast reductions to
that program. He stressed that the state was on the verge
of expanding the mariculture industry, particularly in
Southeast Alaska. He was interested in further inquiry by
the commissioner of whether or not there should be a second
look at the direction of the current administration about
mariculture.
Co-Chair von Imhof noted that the governor has not
commented on the oil and gas initiative, so she wondered
whether the governor had been advised of the effects of the
oil and gas initiative.
Mr. Springsteen replied that he was not in the governor's
advisory committee. He could not speak to the question.
9:25:50 AM
Senator Bishop stressed that cesium is a critical mineral
that was being solely outsourced to China. He wondered
whether there were conversations about exploring cesium.
Co-Chair von Imhof noted that the governor's main platform
is that Alaska is open for business, so he created the ADT.
She wondered whether there were periodic meetings with the
governor to let him know of the results and accomplishments
of the team.
Mr. Springsteen replied that they provided reports of
activity to the governor.
Co-Chair von Imhof recommended that ADT meet with the
governor in person to provide the information.
Senator Wielechowski requested a copy of the reports
provided to the governor.
Mr. Springsteen agreed to provide that information.
Mr. Springsteen highlighted slide 12, "Economic Sectors":
AKDT "front-line" members are assigned to focus on
individual sectors of the economy to engage and
encourage growth.
Co-Chair von Imhof wondered whether there was comment on
the name that was absent.
Mr. Springsteen replied that the list was of the front line
members who were the first points of contact for the ADT.
He noted that there was a contractor that was providing
services in line with the contract.
Co-Chair von Imhof wondered whether the governor's reports
included the efforts of the people and a calendar of their
activities.
Mr. Springsteen replied in the affirmative.
9:30:02 AM
Mr. Springsteen discussed slide 13, "Highlights of Recent
AKDT Activities:
AKDT and Mining
?Making it easier to do business
?Alaska mining, U.S. Critical Minerals, and
eligibility for "high priority infrastructure project"
designation to streamline permitting
AKDT and Mariculture
?Interacting with industry to promote business growth
?Alaska Mariculture Task Force, Alaskan grown
shellfish and seaweed, overcoming statutory and
regulatory hurdles, and consultation with the seafood
industry
AKDT and Broadband
?Identifying barriers and resolving impediments
?Alaska broadband, sensible standards for satellite
performance, and OneWeb collaboration with Pacific
Dataport to improve rural connectivity
Senator Wielechowski wondered whether the mariculture
industry would recognize the ADT.
Mr. Springsteen replied that he believed that they were
familiar with one of the members of the ADT, because that
member had been working with the mariculture industry.
Senator Wielechowski wondered whether there was a different
answer to that question in the other body.
Mr. Springsteen replied that he did not believe so.
Senator Wielechowski queried the current ADT projects that
address the broadband issues across the state.
Mr. Springsteen stated that there would be examples
provided in the presentation.
Co-Chair von Imhof noted that broadband was one of the
biggest issues to promote Alaska commerce, particularly in
rural Alaska. She noted that there were some bills for
tele-health and tele-education.
9:35:17 AM
Mr. Springsteen looked at slide 14, "Other AKDT
Initiatives":
?Expanding gaming opportunities in Alaska
?Attracting investors for cold storage and secure
storage facilities for international air cargo
?Pursuing initial funding to extend broadband fiber
connectivity from Kodiak to Dutch Harbor
?Assisting Alaska Aerospace Corporation to attract
commercial rocket launches and to market their skills
and techniques around the world
?Capitalizing on University of Alaska research and
development capabilities
?Providing long-term supplies of timber to global
markets
?Exploring potential for multi-user infrastructure
funded primarily by and for industry (similar to
Delong Mountain Transportation System)
?Pursing public-private partnerships for tourism
opportunities
?Ongoing work with Alaska Regional Development
Organizations (ARDORs), Alaska Municipal League
members, industry groups, and chambers of commerce on
driving local and regional economic engines
Senator Bishop wondered whether there was any forthcoming
legislation to help execute some of the initiatives.
Mr. Springsteen replied that there were occasional
recommendations of things that would help the development
opportunities.
Senator Bishop felt that there should be a continuance of
work with the federal administration to continue funding of
the Denali Commission.
Senator Olson noted the bullet point related to vital
transportation systems. He noted the transfer to a local
asset, and
Mr. Springsteen replied that he was not familiar with that
idea.
Senator Olson shared that he would have a private
conversation on the matter.
9:40:22 AM
Senator Hoffman felt and additional area of vast resources
was the fisheries industry. He shared that he had a meeting
with Adak, and the community felt that there was a vast
crab resource but no movement to do an assessment of a
possible fishery. He remarked that Adak had very little
access to jobs, and felt that doing an assessment would
result in capitalization of the resource.
9:45:01 AM
Mr. Springsteen welcomed that discussion.
Co-Chair von Imhof hoped that there could be an
identification of some of the barriers of doing business.
She felt that ADT had the opportunity to do good work. She
noted that there must be included the specific state's role
in facilitating the efforts. She felt that there could be
streamlining of permitting and inspections; ensuring that
environmental reviews were done in a timely manner; and
possibly provide for utility infrastructure.
Mr. Springsteen agreed.
Co-Chair von Imhof felt that the state could provide access
to the economic opportunities.
9:49:32 AM
Senator Wielechowski agreed, and felt that there was great
potential in the program. He encouraged a focus on breaking
through the bottle necks of oil and gas development on the
North Slope.
Mr. Springsteen stressed that it was a goal to have direct
contact with the communities, but that "opportunities come
to those who work." He felt that Hoonah was an example of
finding and creating an economic engine for the community.
He stated that it was not the job of ADT to direct a bank
to invest in a project, but the team would advise a
community in the process.
Senator Wielechowski noted there were many AIDEA funded
businesses, and wondered whether the ADT could do similar
work.
Mr. Springsteen looked at slide 11 and noted that the focus
of the team was on economic engine and new growth sectors.
He stressed that there should be support of all Alaska
businesses.
Co-Chair von Imhof felt that questions about AIDEA could be
saved for AIDEA directly.
9:55:14 AM
Mr. Springsteen addressed slide 15, "AKDT and Mining":
Facilitated meetings with Graphite One and federal
entities.
Mr. Springsteen looked at slide 16, "AKDT and Mariculture":
State support, spanning multiple administrations, is
critical to reach the goal of growing a $100 million
mariculture industry in 20 years. We are thankful for
the support of Gov. Dunleavy, Ben Stevens, Matt
Fagnani and Clark Penney of the Alaska Development
Team and additional agency staff, who jumped in the
boat with us and helped row in the same direction.
Julie Decker, Alaska Daily News
Mr. Springsteen discussed slide 17, "AKDT and Alaska
Broadband":
Advice prompts inclusion of satellite standard for
Alaska Broadband (critical for rural access and
federal funding eligibility)
Senator Wilson queried the challenge of working with other
departments helps Alaska.
Co-Chair von Imhof asked for an incorporation of that
response with the mariculture response.
Mr. Springsteen stated that the input was about the market
price point, and worked backwards to the current situation
in the state. Therefore, determining the areas that were
worth the effort. He noted early indication of the focus of
mariculture.
Senator Wilson wondered whether there was an examination of
regulations and statutes that may harm industries.
Mr. Springsteen replied that ADT provided a voice but could
not dictate the activities of the state's other
departments.
Co-Chair von Imhof pointed out that the program should help
businesses point in the right direction. She wondered how
that would function without working with other departments.
Mr. Springsteen replied that the program would work with
departments to coordinate assistance for the businesses.
10:00:52 AM
Senator Bishop disagreed and asked that ADT be much more
assertive with the governor.
Senator Wielechowski wondered whether ADT was an
independent organization or whether they took orders from
the governor.
Mr. Springsteen replied that he would engage in a
conversation about commercial projects, but that the ADT
was a part of the executive branch.
Mr. Springsteen pointed to slide 18, "AKDT and Alaska
Broadband":
This partnership will allow the delivery of OneWeb's
high speed internet services all over Alaska
Mr. Springsteen looked at slide 19, "Sustainable Economic
Development Model."
?Research and Analyze economic delivery models
?Create recognizable value
?Propose economic development structure to ensure long
term viability
Mr. Springsteen highlighted slide 20, "Working to a
'Partnership Model'":
?Performing research on economic engine development
models
?Participating in best practices working group e.g.
the State Economic Development Executives (SEDE)
Network
?Ongoing interviews with other state economic
development executives
10:05:04 AM
Co-Chair von Imhof was eager to see the reports for the
governor. She felt that the presentation lacked identifying
the barriers to entry and the bottlenecks.
Senator Wielechowski expressed concern about the metrics
and stressed the need for results-based decision making.
Mr. Springsteen remarked that one of the metrics discussed
was additional capital invested into the state projects.
Co-Chair von Imhof felt that business principles could be
infused into the bureaucracy.
10:08:13 AM
AT EASE
10:09:50 AM
RECONVENED
10:10:07 AM
TOM BOUTIN, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, (AIDEA) discussed,
"Senate Finance Committee; Alaska Industrial Development
and Export Authority; February 2020" (copy on file). He
looked at slide 2, "AIDEA'S MISSION and OVERVIEW":
To advance economic growth and diversification in
Alaska by providing various means of financing and
investment
.notdefInvesting in Alaskans since 1967
.notdefState of Alaska's Development Finance Authority
.notdefFinancially Self-Sustaining Public Corporation
.notdef$422.4 Million in Dividends to Alaska since 1997
.notdefOne of the largest investors in Alaska
10:12:22 AM
ALAN WEITZNER, CHIEF INVESTMENT OFFICER, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY, explained that there was
an attempt to identify the objective of AIDEA.
Mr. Boutin addressed slide 3, "AIDEA'S FUNDING":
Finance, Jobs, Economic and Rural Development, Arctic
Investment
Mr. Weitzner explained that the fund was a revolving fund.
The net position of that fund as of the previous fiscal
year, was $1.21 billion. That account was used for the
Economic Enterprise Account and the Economic Development
Account, which was the revolving fund account.
10:15:42 AM
Mr. Boutin highlighted slide 4, "AIDEA'S PRODUCTS AND
PROGRAMS":
To advance economic growth and diversification in
Alaska by providing various means of financing and
investment
.notdefLoan Participation Program
.notdefDevelopment Project Finance
.notdefInfrastructure Development
.notdefSustainable Energy Transmission and Supply
Development Program (SETS)
.notdefConduit Revenue Bond Program
.notdefSmall Business Economic Development Revolving
Loan Fund Program
.notdefRural Development Initiative Fund Loan Program
.notdefBusiness Export Assistance Program
Mr. Weitzner stated that there were details further into
the presentation. He noted that the programs were defined
statutory programs. He shared that there were three
principal programs: the Loan Participation Program; the
direct investments; and the Conduit Revenue Bond Program.
Co-Chair von Imhof felt that the presentation should
continue as the concepts were built.
Mr. Boutin stressed that AIDEA took ownership of many
projects.
Mr. Boutin pointed to slide 5, "HOW DOES AIDEA INVEST IN
ALASKANS?"
Capital for Economic Growth and Job Opportunities
across all Commercial, Industrial and Infrastructure
Sectors important to Alaska
Loan Programs:
?Loan Participations
?Energy Loans
?Small Business Loans through DCCED
Direct Investments
?Project Finance Loans and Bonds
?Equity Ownership
?Partner w/ Private Capital (P3)
Capital Markets
?Conduit Revenue Bonds
?Bond Guarantees
?Export Guarantees
Mr. Boutin looked at slide 6, "COMMERCIAL FINANCE":
Loan Participation Program:
Participation up to 90 percent of a loan originated by
a commercial lender, capped at $25 million
666 Loans funded since 1992, $1.21 Billion funded by
AIDEA
No delinquencies, performing as agreed
Fixed Rate, Long-Term Capital for projects solely in
Alaska
Job Creation: 9,312 construction and 9,624 permanent
jobs (as of FYE 2019)
10:20:16 AM
Co-Chair von Imhof remarked on conversations about doing
less than 90 percent. She wondered whether there were many
projects that were less than 90 percent, and any thoughts
related to shifting the program stretch the program.
Mr. Weitzner noted the previous year's loan participations
and stated that there was a range of participation of 70 to
90 percent, depending on the loan. He stressed that the
weighted average was 86.7 percent. He stated that it was
driven by the borrower's request.
Co-Chair von Imhof felt that the percentage could be
reduced by the lender.
Mr. Boutin stated that the 90 percent was established in
the Governor Murkowski administration, and had been
maintained since that time.
10:25:38 AM
Senator Wielechowski requested how the process would work.
Mr. Boutin replied that the bank or credit union developed
the loan, and AIDEA did not speak directly to the borrower.
Senator Hoffman remarked that AIDEA had made 666 loans
since 1992 of $1.2 billion, and queried the span of the
$445 million since January. He wondered how far the loans
went back in time, and how many were in rural Alaska.
Mr. Boutin responded that the information was regularly
published in the annual report, so he agreed to provide
that information.
Mr. Weitzner stated that the average duration was
approximately 23 years.
10:30:51 AM
Senator Wielechowski wondered why AIDEA did not bypass the
bank.
Mr. Boutin replied that AIDEA was not universally seen as a
bank. He stressed that it was important for the Alaska bank
to be in the process.
Co-Chair von Imhof wondered why the bank would go to AIDEA,
and not do the loan themselves.
Mr. Boutin replied that it was unknown whether a bank did
not come to AIDEA for a loan.
Mr. Weitzner stressed that there were key services provided
by the local banks.
Co-Chair von Imhof wondered whether liquidity was a value
to the bank.
Mr. Weitzner replied in the affirmative.
Senator Wielechowski asked what percentage of the loan was
taken by the bank, without the participation of AIDEA.
Mr. Boutin replied that he did not know.
Senator Bishop wondered whether the AIDEA loans were used,
because it put the risk on an outside entity from the bank.
Mr. Weitzner responded that the program was a commercial
financed program, so it was focused on commercial real
estate and hotel development in different environments,
therefore it was a "de-risked program."
10:36:33 AM
Senator Bishop stressed the phrase "de-risking."
Mr. Weitzner stated that the participating banks
underwriting the loans were retaining a stake in the loan,
so there was some risk.
Co-Chair von Imhof remarked that there was a desire for
AIDEA to succeed, because it was a driver of economic
success in the state.
Mr. Boutin discussed slide 7, "CONDUIT REVENUE BONDS
PROGRAM":
Access for Alaskans to Capital Markets for Tax-exempt
and Taxable Financing:
No assets/credit of AIDEA or the State of Alaska at
risk
Project underwriting based on its economic and
financial feasibility
Long Term Capital
Bond rates determined by credit quality and duration
of the project
Bonds are repaid from Project Revenue
Mr. Weitzner highlighted slide 8, "DIRECT INVESTMENTS IN
ALASKA":
Project Finance and Asset Management
Facilitate Investment in Alaska's Industrial Sectors
Partnership with Public and Private Capital
Patient, Long-Term Capital
Direct Investment as Owner/Partner/Lender
Feasible Economic Structures, No Subsidies
10:41:19 AM
Mr. Weitzner looked at slide 9, "DIRECT INVESTMENTS IN
ALASKA":
AIDEA's Portfolio of Direct Investments under AS
44.88.172 at FY2019
Senator Wielechowski requested the structured return on
investment for commercial finance.
Mr. Weitzner responded that the commercial finance
program's 2019 portfolio of $50 million had a weighted
average rate on those loans of 3.9 percent. The loans
ranged from 3.27 percent to 4.39 percent. The difference in
the rate had a direct benchmark rate to the home loan rate.
Senator Wielechowski queried the status of the Mustang
loans.
Mr. Weitzner replied that the Mustang loan was currently in
restructure. He explained that as of November 1, there was
an issue of default of the loan. He stated that there was
work with the underlying developers of the project to
restructure the facilities.
Senator Wielechowski wondered whether there was $85 million
of collateral available from those loans.
Mr. Weitzner the underlying collateral was the current
leases of the Mustang project, and the physical assets. The
current valuation in the restructure was representative of
restructuring at $64 million. He believed that the question
highlighted the risks the loan program.
Co-Chair von Imhof surmised that the returns were intended
to minimize losses.
10:48:43 AM
Mr. Boutin pointed to slide 10, "DIRECT INVESTMENTS IN
ALASKA":
Project Finance and Asset Management
Two new investments added so far in FY2020:
.notdefIcy Strait Point Adventure Landing: Authorized up to
$15 million financing in coordination with their
second phase development partnership with Norwegian
Cruise Line.
.notdefAK SHIP: Established a $10 million vessel repair and
overhaul financing program to enhance the regional
competitiveness of Alaska's shipyards.
Mr. Weitzner stressed that it was important to identify
where Alaska can be more competitive.
Senator Bishop appreciated the interest in renewable
energy.
Co-Chair von Imhof requested an examination of dividend
payments to the state.
Mr. Boutin looked at slide 12, "AIDEA DIVIDEND PAYMENTS TO
STATE." He stated that he was prepared to answer questions
about the slide.
Co-Chair von Imhof wondered whether there was legislation
that changed how dividends were calculated and asked for
how that might help the cash flow.
Mr. Weitzner stated that there was FY 19 legislation that
allowed for an exclusion of the underutilized gains and
losses from the net income. He explained that it allowed
for a calculation at the actual income level.
Co-Chair von Imhof stressed that it was actual cash flow.
Mr. Boutin agreed.
Mr. Boutin pointed to slide 13, "AIDEA FINANCIAL SUMMARY
FY2019." He remarked that the slide was a gross summary in
an understandable form.
10:54:31 AM
Co-Chair von Imhof appreciated the change in net position
represented in the slide.
Senator Wielechowski surmised that there was $1.5 billion
in assets with the state dividend of $4.9 million, which
was a return of approximately 0.3 percent.
Mr. Boutin replied that AIDEA must follow government
accounting rules. He gave an example of what would follow
the government accounting rules.
Mr. Weitzner furthered that it was difficult to universally
determine the payments, because of the rules.
Senator Wielechowski stressed that the return on the
investment was less than 1 percent.
Co-Chair von Imhof felt that the philosophy could be moved
to a different discussion.
Mr. Boutin stressed that AIDEA did not look to the state
for appropriations for its general operations.
Co-Chair von Imhof stated that she would be willing to
funnel further questions to AIDEA.
ADJOURNMENT
10:59:54 AM
The meeting was adjourned at 10:59 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 022020 AKDT Presentation for Senate Finance.pdf |
SFIN 2/20/2020 9:00:00 AM |
Alaska Economic Development Strategy |
| 022020 AIDEA Presentation for Senate Finance.pdf |
SFIN 2/20/2020 9:00:00 AM |
AIDEA |
| 022020 DCCED AKDT Response.pdf |
SFIN 2/20/2020 9:00:00 AM |