Purpose: These minutes are intended to reflect highlights of the meeting. They are not a comprehensive record. The intent is to inform people who were unable to attend as to the essential elements of the meeting. Should any participant have corrections or clarifications, please forward them to Jon Kumin or Vicki Otte. The meeting agenda is in standard print -- minutes have been added in italics.
| Goals for this meeting: | Continuing dialogue to obtain an understanding of rural & bush Alaska with regards to economics. |
| Guests: | Mike Harper, President/CEO (or designee) -- The Kuskokwim Corporation (KC) Carl Propes, CEO -- MTNT Limited Helvi Sandvik, President (or designee) -- NANA Development Corporation Arctic Slope Regional Corporation (invited) Mike Harper and Carl Propes were both able to attend |
| Introductions/sign-in The meeting was well attended; present were: | ||
| Jon Kumin Hart Hodges Jewel Jones Bob Poe Nancy King Eric Britten |
Vicki Otte Duane Heyma Pat Burden Katelyn Markley Susan Ruddy Dick Barnes |
Tim Weipking Milton Byrd Jeff Staser Steve Lindbeck Tom Case Grant Hunter (by teleconference) |
Discussion Points: This will be a roundtable discussion with invited guests as to how their region or village ensures economic survival in rural & bush Alaska.
Mike Harper and Carl Propes are both CEO’s of Native corporations formed by merging a number of village corporations. This was in recognition that the individual village corp’s were too small to be effective economic units. Both KC (formed from 10 villages centered around Aniak) and MTNT (formed from 4 villages centered around McGrath) have had some struggles but are now on firm footing.
The meeting was primarily a free-flowing discussion. Mike and Carl described the history and experiences of their corporations. Points made by Mike Harper include:
- When KC was formed probably 75% of shareholders lived in the region. Now it is likely under 50%. Reasons to move to town -- mostly job availability.
- Past management difficulties led to a policy heavy on passive investing
- Resource development is the most likely economic development for their area, but it needs cheap power and better transportation.
- PCE (power cost equalization -- the State’s subsidy of rural electrical costs) is critical to the KC communities. Carl Propes agreed.
Points made by Carl Propes include:
- The village economies aren’t large enough to support much investment, at least of the type MTNT can afford. McGrath has shrunk probably 20% in the past five years. So MTNT has been looking outside the region (they own Kodiak Chrysler dealership for example). These are typically passive investments. They have started an 8-A (Federal disadvantaged business set-aside program) construction company.
- He agrees the Internet holds promise. McGrath has good Internet service. Costs are $40/mo. residential and $70/mo. commercial, with no per minute charge and speed comparable to urban areas. It uses the old Alascom earth station so capital costs were only $60,000.
Other points covered included the issue of "home runs" (mega-projects like Red Dog) versus "singles" (small developments like someone opening a store). The value of economic development workshops in rural communities was debated. No conclusions were reached – just a lively discussion.
Overview of Events: (tba)
There are no new (not previously announced) upcoming events. The value of rural visits was debated. Reasons to go include the possibility of getting useful input and enhancing credibility of the report. Rural visits would be most helpful to those without previous experience in the bush. On the other hand, it was pointed out most, if not all sub-committee members have some rural experience, time is limited and other avenues are being explored to obtain rural input (such as the public radio talk show Vicki Otte is working on). No organized rural visits are currently planned; members are encouraged to take advantage of opportunities as they arise.
What Next? (one more roundtable discussion?)
There was some debate as to what guests might be most valuable. Suggestions included people from various State entities charged with economic development (DCED, AIDEA, ASTF, etc.) and the Fed’s (EDA, SBA etc.). A consensus emerged to wait on inviting additional speakers. We will begin the internal sub-committee discussions next week. If it appears useful to invite more speakers we can do so for the following week.
Next Meeting: Friday, April 7th, 7 a.m., same location (note: Vicki Otte will not be here -- need a coffee maker & someone to take care of morning fix, i.e., donuts).
Meeting is confirmed, we have a coffee maker (anonymous in case its REALLY bad); Nancy King again agreed to pick up some nibbles (Thank You!)
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