Legislature(2021 - 2022)BELTZ 105 (TSBldg)
05/12/2021 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Alaska Regional Development Organizations Presentations | |
| Kenai Peninsula Economic Development District (kpedd) | |
| Fairbanks North Star Borough Economic Development Commission | |
| Bering Strait Development Council | |
| Anchorage Economic Development Corporation | |
| Copper Valley Development Association, Inc. | |
| Prince William Sound Economic Development District | |
| Southwest Alaska Municipal Conference | |
| Southeast Conference (sec) | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
May 12, 2021
2:06 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Peter Micciche
Senator Gary Stevens
Senator Elvi Gray-Jackson
MEMBERS ABSENT
Senator Joshua Revak, Vice Chair
COMMITTEE CALENDAR
ALASKA REGIONAL DEVELOPMENT ORGANIZATION (ARDOR) PRESENTATIONS
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
TIM DILLON, Executive Director
Kenai Peninsula Economic Development District (KPEDD)
Kenai, Alaska
POSITION STATEMENT: Delivered a PowerPoint presentation on the
Kenai Peninsula Economic Development District.
BRITANY SMART, Special Assistant to the Mayor; Staff
Fairbanks North Star Borough Economic Development Commission
Fairbanks, Alaska
POSITION STATEMENT: Delivered a PowerPoint presentation on the
Fairbanks North Star Borough Economic Development Commission.
BARBARA NICKELS
Bering Strait Development Council (BSDC)
POSITION STATEMENT: Delivered a PowerPoint presentation on the
Bering Strait Development Council.
BILL POPP
Anchorage Economic Development District
Anchorage, Alaska*
POSITION STATEMENT: Discussed the Anchorage Economic Development
District.
JASON HOKE, Executive Director
Copper Valley Development Association (CVDA)
Glennallen, Alaska
POSITION STATEMENT: Delivered a PowerPoint presentation on the
Copper Valley Development Association.
KRISTINE CARPENTER, Executive Director
Prince William Sound Economic Development District (PWSEDD)
Cordova, Alaska
POSITION STATEMENT: Delivered a PowerPoint presentation on the
Prince William Sound Economic Development District.
SHIRLEY MARQUARDT, Executive Director
Southwest Alaska Municipal Conference (SWAMC)
Anchorage, Alaska
POSITION STATEMENT: Delivered a PowerPoint presentation on the
Southwest Alaska Municipal Conference.
ROBERT VENABLES, Executive Director
Southeast Conference
Juneau, Alaska
POSITION STATEMENT: Delivered a PowerPoint presentation on the
Southeast Conference.
ACTION NARRATIVE
2:06:10 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 2:06 p.m. Present at the call to
order were Senators Gray-Jackson, Stevens, and Chair Costello.
Senator Micciche arrived soon thereafter.
^Alaska Regional Development Organizations Presentations
Alaska Regional Development Organization Presentations
2:06:55 PM
CHAIR COSTELLO announced the business before the committee would
be presentations from eight Alaska Regional Development
Organizations (ARDORs). She noted that on Monday the committee
passed [HB 192] to extend the termination date of these ARDORs.
^Kenai Peninsula Economic Development District (KPEDD)
2:07:51 PM
TIM DILLON, Executive Director, Kenai Peninsula Economic
Development District (KPEDD), Kenai, Alaska, presented a
PowerPoint update of the Kenai Peninsula Economic Development
District ARDOR. He explained that ARDORs are the link between
the state and local organizations. Each ARDOR is unique to its
region but the common mission is to prepare and implement
regional development strategies. He directed attention to the
bulleted list of basic strategies on slide 2 that each of the
ARDORs employ. He said the nine ARDORs are identified on the
next slide. Each one works to accomplish economic development in
a way that is appropriate for the region.
2:09:39 PM
SENATOR MICCICHE joined the meeting.
SENATOR STEVENS asked if any part of Alaska does not have an
ARDOR.
MR. DILLON replied that a variety of areas do not have an ARDOR
but the existing ARDORs give assistance in either setting one up
or developing an economic organization for the region. He cited
the examples of the work with Clay Walker in the Denali Borough
to create an economic development organization and work with the
governor's office on the Mat-Su Valley. He said the key is that
the area has to want an economic development organization and
they have to participate and do things in a way that makes
sense.
2:11:27 PM
MR. DILLON continued the presentation. He advised that Economic
Development District (EDD) is a federal designation and those
are a little different from ARDORs. By design, they represent
multi-county areas, which was helpful after the [2018]
earthquake. EDDs also develop a comprehensive economic
development strategy (CEDS) for multi-county areas, which helps
in situations like the earthquake. He directed attention to the
list of the four existing EDDs:
• Kenai Peninsula Economic Development District
(Established in 1988)
• Prince William Sound Economic Development District
(Established in 1991)
• Southwest Alaska Municipal Conference (Established in
1988)
• Southeast Conference (Established in 1958)
He described the state as well covered between the four EDDs and
the nine ARDORs.
2:12:49 PM
MR. DILLON read the KPEDD Overview on slide 6:
The Kenai Peninsula Economic Development District
(KPEDD) is a private 501(c)(4) non-government resource
focused on responsible and sustainable economic
development for our region. Using a 30,000 ft. view of
the economy, we locate financing and orchestrate
community collaboration for economic planning and
business incubation. KPEDD assists public and private
entities by providing relevant and accurate economic
data and consultation services. Through these
services, we support infrastructure projects,
workforce development and regional industries. KPEDD
is funded by federal, state, regional and educational
grants with measurable deliverables.
MR. DILLON displayed the map on slide 7 that depicts the Kenai
Peninsula and surrounding region that the KPEDD ARDOR covers. It
is about the size of the state of West Virginia with 50,000 some
residents. He offered his belief that the Kenai Peninsula is the
most diverse area in the state. It has tourism, gas and oil, and
fishing but none to the extent seen in other areas of the state.
That diversity helped the region this last year, he said.
2:14:17 PM
MR. DILLON said KPEDD is in the process of completing its latest
five-year CEDS for a higher quality of life. The five
overarching goals to achieve a higher quality of life in the
region are improvements in Technology & Communication, Workforce
& Human Capital, Infrastructure & Land Use, Business Climate &
Entrepreneurship, and Regional Partnerships. KPEDD can help with
projects that fit under those five goals and if the project does
not fit, KPEDD can help find somebody who can assist with the
project.
MR. DILLON tuned to slide 9 to discuss the COVID-19 Economic
Impact Surveys KPEDD conducted in March and April of 2020.
Initially, 96 percent of businesses reported disruption due to
COVID-19. Information that KPEDD did not have before is that
about 75 percent of the businesses on the Kenai Peninsula have
five or fewer employees. He said that information helped KPEDD
as it tried to develop programs for the communities. In another
study, 368 respondents reported disruptions in supply chains.
This was towards the end of the summer and it has continued to
the present. He said manufacturers in the Lower-48 and worldwide
that shut down account for these disruptions. He noted that
plumbing and electrical supplies are in particularly short
supply on the Peninsula.
2:17:00 PM
MR. DILLON displayed the bar graph on slide 11 that shows the
percentage of revenue impacts on each borough due to COVID-19.
He explained the slide is a sample of the 12 questions from a
survey that the nine ARDORs and the Alaska Small Business Center
produced last month. The legislature will receive the complete
results next week. He said he believes the answers to the
questions will help both the legislature and the administration
as it addresses statewide budget concerns. He shared that the
Senate President and his staff submitted some of the questions
for the survey.
MR. DILLON turned to the bulleted list of projects that KPEDD
has identified for FY2022. He acknowledged that adjustments
would be made depending on funding. The list read as follows:
• Broadband Expansion Project
• Implementing American Rescue Plan
• Economic Resiliency Plan
• New Microloan Program
• Homer Erosion Project
• Manufacturing Extension Program
• Comprehensive Economic Development Strategy
• Red Mountain Road Re build
• Alutiiq Pride
• ARDOR Coordination
• Regional Infrastructure projects
• Community Funding Identification
• Assistance for Borough-wide businesses
MR. DILLON said he mentioned it earlier in the five goals but
something that KPEDD stresses in particular is workforce. He
explained that 30 partners are participating to ensure that when
a job opens on the Peninsula they have residents who are
trained, ready, and hired. The new website, which has received
statewide attention, identifies the various jobs on the
Peninsula, provides a description of the job, where to get
training, the types and how to get the needed certification, and
who will help pay for the training. He noted that the Department
of Labor and Workforce Development is one of the partners. He
suggested the members look at the website
kenaipeninsulaworkforce.org to see what is available.
2:20:50 PM
SENATOR GRAY-JACKSON asked if KPEDD receives annual grants from
municipalities.
MR. DILLON answered yes; KPEDD has an annual $100,000 grant type
contract with the Kenai Peninsula Borough. He advised that KPEDD
uses the money for workforce development, regional partnerships,
business assistance, municipal assistance, education, and
information dissemination.
2:21:55 PM
SENATOR MICCICHE expressed appreciation and support for the work
KPEDD has done on the Peninsula. He mentioned hearing about 500
unfilled jobs on the Kenai Peninsula and said he would like to
see accurate numbers and the steps the state can take to resolve
the issue. It seems to be a statewide issue and the current
incentives are not working. He offered his belief that the
incentives should attach to returning to work.
MR. DILLON said the ARDORs meet once a week and that was a topic
this morning. He said he believes it is more than just the
incentives but he would be happy to provide the information and
have a discussion.
2:23:58 PM
SENATOR STEVENS shared that he and Senator Micciche recently
learned that in response to continuing concerns about COVID-19
and associated hiring difficulties, Ocean Beauty processing
plant in Wrangell decided against bringing in outside labor for
the summer and instead increased salaries to $20 per hour and
hired local people. According to Ocean Beauty, the community
response was enormous. He asked if the ARDORs might be able to
look statewide at that sort of solution for unfilled jobs. He
acknowledged that it is a major change but the plant in Wrangell
is proof that it can work.
MR. DILLON said he agrees that increasing wages markedly is
certainly an incentive but it also requires a philosophical
change for the employer. He suggested that Shirley Marquardt
with SWAMC would have some ideas because she works closely with
the processors. He noted that the owners of the McDonalds
franchise on the Kenai Peninsula are offing a $500 signing
bonus. It shows that people are learning they need to be
creative.
SENATOR STEVENS said his interest is in establishing an Alaska
workforce and paying them well.
MR. DILLON said the ARDORs would be happy to look into that.
2:27:36 PM
MR. DILLON turned to the list of KPEDD's current funding
sources. He said what makes KPEDD different is that it does not
draw on a membership list for funding. Instead, they have a 30-
acre business incubation center that is currently incubating
nine businesses. For example, KPEDD helped a group start a CDL
school so people on the Peninsula do not have to travel to the
Mat-Su Valley to get a CDL license. That business now has
contracts with Homer Electric Association (HEA) and ENSTAR
Natural Gas, which keeps money on the Peninsula. Another funding
source is from sponsors of KPEDD's annual industry outlook
forum. That has netted a profit for the last four years.
2:29:42 PM
MR. DILLON concluded his presentation with the reminder that
KPEDD, like the other ARDORs, is a resource for helping make
things happen. They are accustomed to working with confidential
information and they can help with any plan but it is easier if
they help on the front side. He highlighted that last year it
took the ARDORs less than 20 minutes to look at the RPL and
identify what needed to be fixed and what was not going to work.
He thanked the committee for the opportunity to talk about
ARDORs.
2:31:54 PM
At ease
2:32:09 PM
CHAIR COSTELLO reconvened the meeting and invited Britney Smart
to give her presentation.
^Fairbanks North Star Borough Economic Development Commission
2:32:51 PM
BRITANY SMART, Special Assistant to the Mayor; Staff, Fairbanks
North Star Borough Economic Development Commission (FNSB-EDC),
Fairbanks, Alaska, stated that the FNSB's Economic Development
Commission serves as the ARDOR for Interior Alaska and is housed
in the mayor's office. FNSB-EDC serves in a board-like capacity
and works collaboratively with a number of entities to
facilitate economic development. They also work with other
ARDORs to implement statewide objectives. She said state funding
for the ARDOR program historically paid for her position and the
project initiatives. They still have non-areawide economic
development powers and are able to assess a property tax for
economic development.
MS. SMART said FNSB-EDC continues to serve as the ARDOR and the
borough mayor serves as chair, with staff as support. When the
administration changed and state funding for ARDORs ceased, the
role of her position changed. She continues to work on economic
development and projects with a military focus, but she is not
limited to those areas. Unlike other ARDORs, FNSB-EDC is not a
dedicated entity with staff other than herself.
She said FNSB continues to fund economic development with a .055
mill rate allocation. Explore Fairbanks receives a grant that is
funded through the motel tax and based on projected revenues. An
annual $350,000-$400,000 grant goes to the Fairbanks Economic
Development Corporation and a $10,000 annual grant goes to the
North Pole Economic Development Center. FNSB is a chamber member
and works closely with that entity.
2:36:05 PM
MS. SMART said it should come as no surprise that the tourism
industry has been the most affected by the COVID-19 pandemic.
Fortunately, the pandemic did not affect the delivery schedule
of the incoming F-35s. The housing market is strong and
businesses are mostly open again while largely following COVID
protocols. Many businesses are hiring, but there have been some
challenges in filling available positions.
MS. SMART reviewed the information the borough provides. She
related that FNSB has over 40 years of socio-economic data. The
Community Research Quarterly has been published since 1978 and
presents data that covers cost-of-living factors, economic
indicators, employment, housing, population and social
conditions, and US Census updates.
MS. SMART reported that FNSB is working on three priority
projects. The first is the Interior Alaska COVID-19 Economic
Impact and Recovery Plan. She suggested members visit the
website fnsb.gov/recovery for more information. The second
project is CARES Support - Technical Assistance and Marketing.
Funding was initially from the borough, then the ARDOR program,
and now perhaps through the American Rescue Plan Act of 2021
(ARPA). The third priority project is the Comprehensive Economic
Development Strategy (CEDS), which is the plan for the next five
years.
2:38:59 PM
MS. SMART reported that the final draft of the EDC recovery plan
was adopted in early May. The intention was to identify
immediate economic impacts due to COVID-19 while planning for
recovery through goals and strategic initiatives. The process
was to identify goals and strategic objectives for residents,
business, health care, and the workforce. Indicators were
developed for tracking recovery efforts and tasks were developed
and identified by objectives and timeline priority. The plan is
undergoing review and revision to ensure the work stays
relevant. Some items are no longer relevant while others such as
the challenge of hiring employees back needs to be added. She
pointed to the website fnsb.gov/recovery and the YouTube video
Economic Recovery in Interior Alaska.
2:40:36 PM
MS. SMART reported that as an ARDOR, FNSB received $83,333 in
CARES support. They used it to secure a contractor to provide
business technical support and marketing of all available CARES
programs to local businesses and organizations. The borough
program launched about the same time. FNSB distributed more than
$24 million through three programs. The Business Interruption
Grant (BIG) helped businesses; the Personal Protection Equipment
Grant (PPEG); and the Health Care Interruption Grant that was
for the hospital. The latter helped the hospital stem losses.
MS. SMART reviewed FNSB CARES technical support & marketing
efforts. Marketing included design, Facebook and radio ads,
targeted emails and postcard mailers. The contractor also
developed a CARES program eligibility YouTube video. The
technical assistance included establishing dedicated telephone
and email for CARES assistance, which helped more than 700
businesses and organizations. She directed attention to the
video about the work FNSB did in response to CARES and COVID-19.
MS. SMART advised that the next project is the comprehensive
economic development strategy (CEDS). She explained that the EDC
is working to develop a new five-year CEDS, which is a locally
based, regionally driven planning document that guides local
government and community action. FNSB funded the new plan with
$140,000. The existing plan expired March 2021 and the new
effort kicked off February 1, 2021. The EDC is serving as the
CEDS Steering Committee. She pointed to the notes on the
importance of the CEDS and encouraged the members to visit the
website fnsbceds.com.
^Bering Strait Development Council
2:44:25 PM
BARBARA NICKELS, Community Planning and Development Director,
Bering Strait Development Council (BSDC), Nome, Alaska, directed
attention to the mission of BSDC on slide 1, "To improve the
quality of life in the Bering Strait region through employment
and economic opportunities." She noted that the map identifies
the communities BSDC provides services to including the tribes
of King Island, Solomon, Council, and Mary's Igloo.
MS. NICKELS reviewed the ARDOR History of BSDC. She paraphrased
the following:
• The Bering Strait region applied and became an
authorized ARDOR, under the name Bering Strait
Development Council in 1989 and serves the Nome Census
area.
• Through regional developmental strategies, the BSCD
champions economic development planning for the Bering
Strait region's communities by leveraging baseline
support.
• We serve as conduits to a network of economic
development programs and support services for the
region, communities and businesses.
• The BSDC has an 18-member Advisory Council,
representative of many industries. Decisions are made
that reflect the economic diversity and character of
the region.
She advised that BSDC operates under the umbrella of Kawerak but
it has independent bylaws.
MS. NICKELS reviewed the ARDOR Status on slide 3 that read as
follows.
• The BSDC has consistently served the region as an
authorized Alaska ARDOR since 1989.
• Funding from the State to the ARDOR was needed to fund
1/2 a position that supported the BSDC and travel. The
Council no longer meets face to face four times
annually.
• The BSDC, under the Kawerak's Community Planning &
Development program is responsible for completing the
EDA required 5-year CEDS and annual updates.
MS. NICHOLS noted that the most recent CEDS was completed in
2019. She gave a shout out to the UA Center for Economic
Development for partnering with BSDC. She said with their staff
facilitates the CEDS meetings and helps develop frameworks for
resiliency. She said BSDC does not receive any local grants, but
they receive substantial support for the Nome Visitor Center and
the Nome Chamber of Commerce.
• We receive a Planning Grant from EDA that provides us
with the funding for 1/2 staff and some travel.
Kawerak/BSDC apply to opportunities for funding from
Federal, state, and private entities to assist in
project planning & implementation of priority
projects.
• The state provided an Alaska CARES grant of $83,333
for the ARDORs to engage in promotion and assistance
to the region of COVID relief funds available.
She said BSDC reached out to more than 650 businesses, placed
full-page ads, placed information on a variety of social media
platforms, sent emails to all businesses in the BSDC database,
and directly contacted over 100 businesses to help with
application. Collectively, the region received just under $1.5
million.
• Denali Commission provided ARDORs a 2020 one-time
grant of $75,000.
She said the grant funds were used for personnel expenses and to
contract for a Bering Strait Business Directory and Resource
Guide.
2:50:00 PM
MS. NICKELS reviewed the regional information on slide 4. She
said the tourism industry was the most impacted by the COVID-19
pandemic. Nome was particularly hard hit with no cruise ships
and no Iditarod. She noted that the tourism project continues to
identify and assess cultural tourism opportunities. BSDC
completed two Business Impact Surveys five months apart and
found that 94 percent of businesses were disrupted. Supply
chains were also disrupted. They completed and analyzed an
Artist Survey and distributed a grant from First People's Fund
to affected residents. Each person who applied received $500.
She said regional artist sales have been heavily affected by
COVID-19 and the broad ivory ban is also a factor. Survey
results indicate that 45 percent of respondents noticed a
decrease in the sale of raw or fossilized ivory in the past
year.
2:53:42 PM
MS. NICKLES reviewed BSDC's priority projects outlined on slide
6. The first priority is to complete the Resiliency Plan. She
said a small framework was added to the recently completed CEDS
document and BSDC received a planning partner award that will
provide funds to complete the Resiliency Plan. COVID funding
opportunities and technical assistance support has kept people
and businesses afloat and it is ongoing. The third priority is
to upgrade infrastructure to improve and increase access to
water and sewer. She noted that the communities of Diomede,
Wales, Shishmaref, Teller, and Stebbins have a local washateria
but residents haul water for use in the home.
MS. NICKLES reported that early last year BSDC was successful in
getting each tribe to complete the application for the 2.5-
gigahertz licensing. She credited the EDA and the Denali
Commission for helping and said all the tribes have received
specific information on how to access the funding. BSDC will
assist as they move forward. She said alternative energy is so
important in the region that one staff is exclusively dedicated
to this work.
^Anchorage Economic Development Corporation
2:56:55 PM
BILL POPP, President and CEO, Anchorage Economic Development
Corporation, Anchorage, Alaska, said his presentation would be
the CliffNotes version of what AEDC is doing. The Municipality
of Anchorage created AEDC in 1987 and it was spun off as a
private nonprofit 501(c)(6) economic development organization in
1989. AEDC currently has a staff of five with a projected
$998,000 budget for 2021. Funding comes from memberships,
sponsorships, events, earned income, and a $252,000 municipal
grant. AEDC has about 220 member companies and a 15-member board
of directors.
MR. POPP reported that AEDC's purpose and focus is to grow a
prosperous, sustainable, and diverse Anchorage economy. They
have been working for many years to attract new investments and
to attract and retain a skilled workforce. AEDC realizes that
quality of life is critical to attracting investment and a
skilled workforce.
MR. POPP related that AEDC assists businesses with research,
help with government processes, and deploying investments
successfully. They often advocate for policy that improves
investment opportunities, advances workforce development, and
improves quality of life in Anchorage.
MR. POPP said 2020 was primarily about COVID-19 emergency
response efforts. AEDC assisted with policy issues and actions
the municipality was considering by forming the Economic
Resiliency Taskforce that represents businesses across the city
as well as nonprofit interests that provided guidance and advice
to the municipality, the mayor's office, and the assembly. AEDC
provided a key resource site for businesses seeking assistance
during the pandemic that included a well-developed website and
large-scale social media outreach campaign to disseminate
information on emergency orders, guidelines, grant programs and
other resources for businesses and workforces. This included how
to keep a workforce safe during the pandemic as well as
guidelines for human resource issues. AEDC was at the forefront
trying to help businesses and the workforces weather the storm
of the pandemic.
3:01:21 PM
MR. POPP reported that AEDC also assisted in deploying the
Alaska CARES grant program. They focused on marketing the
program and assisting nearly 200 business in Anchorage and
regions across the state with questions about the application.
He said the focus now is on recovery efforts. AEDC has been a
leader in the volunteer effort to reopen Anchorage safely and
ensure the city is recovering as quickly as possible after
having lost over 12,000 jobs in 2020 due to COVID-19. He noted
that this is on top of the nearly 6,000 jobs lost over the five
years before that due to the recession. He advised that AEDC's
current efforts include generating multiple reports annually to
provide key marketing information, trends analysis and other
specific-subject research the results of which are shared
broadly. He highlighted that AEDC is beginning to see a
willingness for investors and businesses to deploy capital.
MR. POPP advised that AEDC currently is working on a survey of
seniors to identify strategies to meet their needs and keep this
population in Anchorage. Additionally, AEDC is preparing to
launch an EDA grant funded $400,000 research project to analyze
the damage done to the Anchorage economy and workforce and
identify the best options to rebuild those damaged sectors and
identify potential new sectors that would expand the city's
economic base. AEDC is working with G-Beta to launch the seven-
week IT skills boot camp program that will train workers,
entrepreneurs, and small business owners throughout the state.
Ultimately, this will equip remote workers and help businesses
and entrepreneurs become more successful in their online skills.
MR. POPP reported that AEDC has a long-term focus on
revitalizing downtown Anchorage and the university district, the
Port of Anchorage improvements, and logistic opportunities for
the Anchorage International Airport. He concluded saying that
AEDC collaborates regularly with the ARDOR network to support
economic opportunities across Alaska because that too helps the
Anchorage economy.
SENATOR STEVENS asked about the results of the mayoral election
and observed that it is a key relationship for AEDC.
MR. POPP responded that AEDC always seeks to help whomever is
mayor be the most successful economic development mayor
possible.
3:07:11 PM
SENATOR GRAY-JACKSON asked if the dollar amount of the ML&A
grant included contributions from the utilities, as it has in
the past. She recalled the total was larger when AEDC was
established.
MR. POPP answered yes it does include utilities contributions
and that AEDC looks forward to talking to the new administration
about maintaining the $252,000 funding in FY2022.
SENATOR GRAY-JACKSON said she would be an advocate for
maintaining or increasing the current funding.
^Copper Valley Development Association, Inc.
3:09:21 PM
JASON HOKE, Executive Director, Copper Valley Development
Association, Inc. (CVDA), Glennallen, Alaska, stated that the
Copper River region has 2,586 residents and it covers about
24,000 square miles, which is the size of West Virginia. It is
an unorganized borough with no municipalities, which means the
legislature serves as the borough assembly. He noted that the
Trans-Alaska Pipelines passes through the region and brings the
state $34 million to 36 million, half of which goes to state
services. He agreed with Tim Dillon that each of the ARDORs is
unique.
MR. HOKE read the CVDA mission statement.
Facilitate partnerships to improve the quality of life
in Alaska's Copper Valley through economic development
while being a good steward of our natural and cultural
resources.
He advised that CVDA has been the Copper Valley ARDOR for some
time and hopes to maintain that status.
MR. HOKE paraphrased from slides 4 and 5 to describe what CVDA
does. [Original punctuation provided.}
• Bring Organizations, Businesses, Communities and
Folks together for cooperative and collaborative
development.
• Find funding for Organizations/Businesses in growth,
expansion, development, etc.
• Consultative Support for businesses and orgs.
• Grant Administration for orgs/business
• Infrastructure and Regional Planning
• Project Management and Facilitation.
• Community and Business planning efforts.
• Provide a point of contact/Liaison for State and
Federal Agencies in our region.
• Information Hub for projects and initiatives of the
Copper Valley Region.
• Advocacy for the region with all Government Agencies
and elected officials.
• Contract with agencies for efficiency and to save
State $$$.
3:14:20 PM
MR. HOKE reviewed CVDA's history and accomplishments outlined on
slide 6. He said CVDA started in 1990 and the ARDOR was
established in statute in 1991. He noted that he was a teacher
in 1996 when CVDA got I-TV units in classrooms so students in
remote villages could take classes offered in urban schools. He
described this as avant-garde for the time. Other CVDA
accomplishments included the 1st Governor's Rural Picnic for
then Governor Sean Parnell, the C-Grow Demonstration Project
that turned a 40-foot refrigerator trailer into a hydroponic
unit. He noted that vertical hydroponic units now proliferate
throughout the state. CVDA has worked on energy and biomass
projects and has done energy, economic, and resource planning. A
large accomplishment lately was to be designated the Copper
River Census Area. CVDA also provided assistance with the CARES
Act.
MR. HOKE listed the CVDA initiatives bulleted on slide 7.
• Infrastructure and Resources
• CEDS - Comprehensive Economic Development Strategy
• Energy and Biomass Development
• Agricultural Development
• Regional Energy Planning and Development
• Tourism Development
• Workforce Development
3:17:52 PM
MR. HOKE described the upcoming potentials.
Energy - The largest energy project is the Roadbelt
Intertie that will connect Sutton to Glennallen to Tok
to Delta Junction, creating a loop around the state
and providing 210 kilovolts of electricity. The cost
of electricity in some areas in the region is $0.85 a
KW and after Power Cost Equalization (PCE) that will
drop to about $0.16 to $0.18 per KW and save the state
about $1.8 million in PCE every year.
Biomass - CVDA is working with the BLM and the U.S.
Forest Service on fire fuel mitigation, workforce
development, and a utilization plan. Instead of
leaving trees that are cut to mitigate fire danger,
the wood is utilized and young people are trained to
use equipment to do that work.
Tourism - CVDA works with the State Chamber of
Commerce, the local Chamber, and DCCED to market the
area as the hidden gem of Alaska.
Workforce and vocational training - CVDA is working to
become an AVTEC hub to keep young people in the area
while they receive training instead of having to move
to Seward.
Mining Development - Seven mines in the region are
ready to go but the cost of energy is an impediment.
If some of these were to open, it would bring in money
for the state and the region.
New Business Development - CVDA is working with the
Alaska Small Business Development Center and is
eagerly awaiting the legislature developing guidelines
for the Small Business Initiative Fund from the CARES
Act.
3:20:31 PM
MR. HOKE displayed a map of the Roadbelt Intertie to demonstrate
the interconnection between the Copper Valley region, MatSu, the
Delta region, and up to Fairbanks.
CHAIR COSTELLO commented that the ARDORs are impressive and each
has made the case that their economic development needs are
different.
MR. HOKE said he neglected to mention that CVDA is a standalone
organization that does not receive any borough or state money.
^Prince William Sound Economic Development District
3:22:32 PM
KRISTINE CARPENTER, Executive Director, Prince William Sound
Economic Development District (PWSEDD), Cordova, Alaska began
her presentation with a satellite image of Prince William Sound.
She said PWSEDD does a lot of work related to partnership
facilitation, applying for project grants, organizing regional
planning processes and responses to concerns, and coordinating
stakeholder input into these public processes. The PWSEDD
leadership is comprised of representatives from municipalities,
tribal councils, and Native corporations in the region.
MS. CARPENTER provided an overview of the demographics of Prince
William Sound. She directed attention to the U.S. Census chart
that shows that the per capita income is roughly in line with
the state. She said the key factor is that the margin of error
can make quite a difference in very small communities. She
directed attention to the chart on slide 6 that shows population
change from 2000 to 2019 in Cordova and Valdez. She said it
reflects the trend statewide that people are aging up into their
60s and beyond. She added that she has been pleased to see a
growth of young families in both Valdez and Cordova.
MS. CARPENTER said the chart on slide 7, "Gulf Coast Economic
Region Employment, 2016-2020" is in response to the question
about how the pandemic has affected communities in the region.
The pandemic hit tourism and fishing the hardest and fishing was
also affected by low returns. PWSEDD did a lot of outreach to
local businesses during the pandemic to help them access relief.
They also formed a partnership with chambers of commerce in the
other communities to provide similar assistance to over 1,000
businesses. She referenced Senator Micciche's comment about
people not returning to work and said part of what may be
holding people back is the lack of access to childcare and early
childhood education.
3:27:57 PM
MS. CARPENTER turned to slide 8 that lists PWQSEDD projects.
This includes collaboration with the Cordova School District and
the Cordova Community Medical Center on ways to give students
and recent graduates exposure to work opportunities and
assistance with apprenticeships to develop skills and explore
careers.
MS. CARPENTE said the support from the EDA is similar to what
others have mentioned and they meet the match with membership
contributions that range between $500 and $3,000. She clarified
that PWSEDD does not receive local grants from municipalities.
She said the key areas of focus in Prince William Sound are the
Alaska Marine Highway System, infrastructure of ports and
harbors, housing, catalyzing investments in kelp farming, and
support measures for regional tourism and outdoor recreation.
3:30:02 PM
SENATOR GRAY-JACKSON commented that a $150,000 budget seems low.
She asked what the annual revenues are.
MS. CARPENTER replied the $150,000 is the bare bones operating
funds and they have applied for several grants to augment that
over time. They receive $70,000 from the EDA for the partnership
planning program and about $200,000 in pandemic relief funding.
^Southwest Alaska Municipal Conference
3:31:25 PM
SHIRLEY MARQUARDT, Executive Director, Southwest Alaska
Municipal Conference (SWAMC), Anchorage, Alaska stated that in
the interest of time, she shortened her remarks but she would
encourage anyone who is interested in what SWAMC has done in the
last year to visit the swamc.org website. It has the 2020 state
ARDOR report and five-year CEDS plan.
MS. MARQUARDT said ARDORs are an association of Alaska
businesses and civic tribal and local governments whose mission
is to encourage, support and champion economic stability and
growth in the various regions of the state. She related that
SWAMC was identified as an ARDOR in 1988 to serve the Aleutians
East Borough, the Aleutian Pribilof Islands, the Bristol Bay
Borough, the Kodiak Island Borough, Dillingham Census Area, and
the Lake and Peninsula Borough. The map on slide 1 illustrates
that it is a very large region, she said. It is a unique coastal
situation.
MS. MARQUARDT advised that the federal EDA planning grant,
annual membership fees, conference registrations and sponsors
provide financial support. A condition of funding requires each
ARDOR to provide a five-year CEDS that is updated annually. She
explained that the CEDS starts with a list of strengths,
weaknesses, opportunities, and threats (SWOT) as identified
through direct engagement with local governments, tribal
governments, organizations, business leaders, the seafood
industry, SWAMC's board of directors, and members of the public.
She noted that slide 2 represents the most recent SWOT that was
used to develop the list of objectives and strategies under the
infrastructure development and maintenance advocacy goal listed
on slide 3.
3:34:03 PM
MS. MARQUARDT said the first objective of energy efficiency was
met by using ongoing USDA funding for the energy audit program
that is free for small businesses and fishing vessels in the
region. Strategy 11, "Seek, apply for, and administer grants to
support infrastructure and energy projects" was used to
accomplish this. SWAMC matched $21,000 to leverage a $100,000
federal grant. All but $5,000 to $7,000, which is for staff
overhead, will pay a subcontractor to administer the individual
energy audits and provide a summary of cost-saving options for
improvements for the owner to consider. To date they have had 66
audits of small businesses and fishing vessels and many have
taken advantage of the 25 percent grant to pay for the
improvements that will save money over time.
MS. MARQUARDT said other projects include the Regional Recovery
and Resilience Plan, broadband expansion using satellite
technology, and Mariculture training.
3:35:59 PM
MS. MARQUARDT reported that during the pandemic in 2020 and now,
SWAMC was instrumental in the direct and indirect technical
support and distribution of Alaska Cares grants, NOAA CARES Act
Fisheries Assistance funding, and the USDA Seafood Trade Relief
Program. SWAMC was DCCED's liaison for individuals and small
businesses to access federal state and relief programs. They
focused on calls from vessel support services, restaurants, bars
and hotels, B&Bs, fishing and hunting lodges, fishing charters,
small businesses, seafood processors, and fishermen in the area.
They received hundreds of requests for instructions on available
COVID-19 relief resources or for help with the application. The
small SWAMC team fielded these calls.
3:38:15 PM
MS. MARQUARDT said not many people remember but in 2001 SWAMC
received $29.5 million in federal Stellar Sea Lion mitigation
funds to design and implement a program to compensate
individual, businesses, and communities who suffered significant
economic impacts due to federal measures intended to protect
Stellar Sea Lions in the region. In one year, SWAMC and its
board designed a program with three goals: distribute the funds
as quickly as possible, hold administrative costs to one percent
or less, and develop a process beyond reproach. All three goals
were achieved within one year.
MS. MARQUARDT summarized that SWAMC forms regional partnerships
to leverage federal funds that benefit greater growth; supports
workforce development through CEDS planning, helps fund project
feasibility, planning, and conceptual design where needed
through connections with EDA; and promotes economic stability in
Southwest Alaska. She said they are successful in this role
because they know the strengths and weaknesses of the region.
She concluded saying SWAMC is a valuable resource to the state
and it is needed now more than ever.
SENATOR STEVENS said he hopes to talk later about three issues:
1) the US Navy returning to Adak and icebreakers in Kodiak, 2)
the Alaska Marine Highway System and the 18 months of funding to
stabilize the system, and 3) workforce development with year
round jobs in the fishing industry.
MS. MARQUARDT said she would be happy to have the conversation.
SENATOR MICCICHE said he was not sure that most Alaskans
understand how much the ARDORs do for communities and the state.
He thanked all the presenters.
^Southeast Conference (SEC)
3:41:40 PM
ROBERT VENABLES, Executive Director, Southeast Conference,
Juneau, Alaska displayed a map of the state and advised that it
demonstrates that the ARDORs are a strategic link in the
economic development between the state and the results needed on
the ground. The color-coded representations for each of the
ARDORs appear to leave gaps in coverage but the ARDORs regularly
reach out across the state both individually and collectively
and hold meetings with other economic development organizations
to address the needs in all areas of the state. He said it was
evident last year that the ARDORs were a critical link in the
success of the CARES program. He said that program was critical
in keeping many Alaskan businesses afloat, but the funds were
depleted before the last batch of applications were processed
and 677 businesses did not receive CARES Act funding. He asked
the legislature to consider that as it looks at the ARDOR funds.
MR. VENABLES briefly displayed the bulleted points on slide 3
about Southeast Conference and what it does. The slide read as
follows:
• Southeast Conference was incorporated in 1958,
primarily to advocate for the creation of the Alaska
Marine Highway System.
• After that success, stayed together to continue to
advocate for issues that are key to the southeast
region as a whole.
• Looks for consensus for the betterment of the
region.
• Members from nearly every community, chamber of
commerce, and economic development organization in
the region.
• Support the Southeast Conference of Mayors and the
Marine Transportation Advisory Board.
• Southeast Conference is the federally designated
Regional Economic Development District and the
State-designated Alaska Regional Development
Organization.
3:43:16 PM
MR. VENABLES said the depiction of Southeast Alaska on slide 4
shows the locations of the 34 communities in the region, most of
which are members of Southeast Conference. The membership is
evenly split between government, business, and the private
sector. He described slide 5 as a representation of the primary
sectors [seafood, mining, energy, transportation, maritime,
visitors, and timber] that Southeast Conference promotes. He
read the mission statement:
Promoting strong economies, healthy communities, and a
quality environment in Southeast Alaska.
MR. VENABLES displayed slide 6 and explained that the pandemic
caused SEC to focus on the immediate and emergent needs of
individuals and businesses in Southeast. To that end, SEC held
an economic resiliency mapping session during the February
conference. A synopsis of the results is represented on slide 7.
It depicts the jobs lost in 2020 and the impacts on the
different sectors of the economy. He said he believes that the
presentations today have demonstrated how useful the ARDOR
information and data is to policy makers who are considering how
to meet the needs of Alaskans coming out of the pandemic. He
said SEC is proud that Senator Murkowski used the cruise ship
slide and data it offers during debate on the Senate floor last
week. He turned to slide 8 and noted that Southeast Conference
received 440 responses from the business sector in response to
the Southeast Alaska Business Climate Survey. It seeks to track
the business climate and COVID-19 effects on businesses. The
data will be used to focus economic relief efforts going
forward. He directed attention to the pie charts on slide 9 that
compare the survey responses from June 2020 to April 2021. [The
text on the slide notes: "Unsurprisingly, confidence in the
Southeast business climate continues to be poor in the wake of
COVID-19.] He emphasized the need for certainty for both
businesses and the ARDORs. He thanked the committee for its
support of the bill it passed on Monday to reauthorize the ARDOR
program. He described the longer reauthorization as key to
adding the needed certainty.
3:45:45 PM
MR. VENABLES displayed the chart on slide 10 of the 2021 survey
results by industry. He said it points out sector by sector the
uneven recovery from the pandemic. Some sectors have not
recovered at all and even those that have recovered see
uncertainty in the future. Slide 11 shows the results of the
survey by community. He noted that the communities that have not
recovered much at all rely on tourism. He pointed to slide 12
with three pie charts that offer a comparative look at the
economic outlook in 2019, 2020, and 2021. He highlighted that
many businesses still feel that the worst is still ahead.
Southeast Conference is trying to provide information to policy
makers to help target those needs.
MR. VENABLES said slides 13 and 14 show the top 10 priorities in
the resiliency plan to get Alaskans back to work. [71 percent of
the responses ranked support for an expedited distribution of
the vaccine as number one.]
MR. VENABLES explained that slide 15 is a snapshot of Southeast
Conference's comprehensive economic development strategy (CEDS)
that won the 2018 NADO Innovation Award. He said it is part of a
suite of Southeast Conference's publications and data research
highlighted on the next slide. He said slide 17 reflects the
2025 economic plan that identifies 59 different priorities that
the region sees as opportunities to move forward. This includes
four priority objectives that will be the focus of the Southeast
Conference work plan over the next five years. These are listed
on slide 18.
1. Transportation: Sustain and support the Alaska Marne
Highway System
2. Seafood: Mariculture development
3. Visitor's Industry: Market Southeast Alaska to
attract more visitor spending and opportunities
4. Energy: Promote Beneficial Electrification
3:49:26 PM
MR. VENABLES concluded his presentation with a shout out to the
CEDS process. He said Southeast Conference is proud of the award
they received but he is really proud of the year-long process
with all stakeholders working together to develop a CEDS plan
that is actionable and ready to be put on the street. He
requested that the legislature view the ARDORs as a collective
resource to help advance the economic development causes of the
state.
CHAIR COSTELLO thanked the presenters for all they do for the
state and for their optimism. She referenced the data point on
slide 7 that indicated that Southeast job losses amounted to 12
percent in 2020. She asked if that was primarily due to the
losses in the tourism industry.
MR. VENABLES replied tourism was the nexus but one calamity
followed another. The pandemic caused the shutdown, which
directly affected cruise ship tourism, retail, hospitality, and
leisure; the fishing season was among the worst; and the natural
disaster in December affected many communities and resulted in
lives lost in Haines.
CHAIR COSTELLO asked if he had scheduled meetings with the
finance co-chairs to talk about the hundreds of businesses that
did not receive CARES Act funds and the possibility of
prioritizing them for American Recovery Act funds.
MR. VENABLES replied that the discussions have mostly been with
the administration about using any residual CARES Act money for
those businesses.
CHAIR COSTELLO thanked the presenters for the eye-opening and
interesting presentations.
3:54:03 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:54 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 1. Tim Dillon, Kenai Peninsula ARDOR Presentation.pdf |
SL&C 5/12/2021 1:30:00 PM |
ALASKA REGIONAL DEVELOPMENT ORGANIZATION PRESENTATION |
| 2. Barbara Nickels, Bering Strait ARDOR Presentation.pdf |
SL&C 5/12/2021 1:30:00 PM |
ALASKA REGIONAL DEVELOPMENT ORGANIZATION PRESENTATION |
| 3. Brittany Smart, Fairbanks NSB ARDOR Presentation.pdf |
SL&C 5/12/2021 1:30:00 PM |
Alaska Regional Development Organization Presentation |
| 5. Jason Hoke, Copper Valley ARDOR Presentation.pdf |
SL&C 5/12/2021 1:30:00 PM |
Alaska Regional Development Organization Presentation |
| 6. Kristin Carpenter, Prince William Sound ARDOR Presentation.pdf |
SL&C 5/12/2021 1:30:00 PM |
ALASKA REGIONAL DEVELOPMENT ORGANIZATION PRESENTATION |
| 7. Shirley Marquardt, Southwest ARDOR Presentation.pdf |
SL&C 5/12/2021 1:30:00 PM |
ALASKA REGIONAL DEVELOPMENT ORGANIZATION PRESENTATION |
| 8. Robert Venables, Southeast Conference ARDOR Presentation.pdf |
SL&C 5/12/2021 1:30:00 PM |
ALASKA REGIONAL DEVELOPMENT ORGANIZATION PRESENTATION |