Report: ANCSA regional corporation revenues dipped in 2016

Alaska Native regional corporations shared $234 million in natural resource production revenues among themselves in 2015, according to the latest information from the ANCSA Regional Association. Shared revenues, required under Section 7i of the Alaska Native Claims Settlement Act, were mostly from petroleum and minerals. Since 1982, the year revenue-sharing began, distributions have totaled $3.2 billion. Seventy percent of revenues are required to be shared with other Native regional corporations as well as village corporations. Total ANCSA regional corporation revenues were $8.2 billion in 2016, somewhat lower than in 2015, according to the data. The share of revenues from government 8(a) contracting was 24 percent, down from 40 percent in 2010. Regional corporations’ net income totaled $107 million. Dividends distributed totaled $161 million.

 

ALASKA INFLATION TRAILS NATIONAL AVERAGE: The Anchorage inflation rate was estimated at 0.5 percent in 2017 compared with a national rate of 2.5 percent. The annual estimate appears in the latest issue of Trends, published by the state Dept. of Labor and Workforce Development. The low level of inflation affects the state’s minimum wage, up 5 cents an hour last year and 4 cents this year. The minimum wage is adjusted for inflation.

 

COSTCO TO OPEN NEW STORE IN FAIRBANKS IN NOVEMBER: Costco will open a retail outlet in Fairbanks in mid-November, the company announced, confirming earlier reports. The company will use a store vacated by Sam’s Club on College Road. There will be refurbishing but no change to the building size or shape.

 

IT’S OFFICIAL: REI TO RELOCATE IN ANCHORAGE’S MIDTOWN: REI, the recreation-gear retailer, made it official that it will move from its present 49,000-square-foot location in the Northern Lights mall in Anchorage’s midtown to remodeled space in the west end of the former Sears mall a short distance away. REI will lease 50,000 square feet at the new site. Although not much larger the new store will have space organized differently and will also have more parking and better street access. The mall has been renamed Midtown Mall following the departure of Sears, which occupied the east end of the structure. A new Carrs grocery will open in the former Sears location.

 

STATE AUCTIONS STATE LANDS, NETS $2.42 MILLION: The state of Alaska auctioned off 80 parcels of land to 83 bidders for $2.42 million July 11. Statewide, 942 acres were made available. Over-the-counter sales for unsold tracts will begin in two weeks, the Dept. of Natural Resources said.

 

ANCHORAGE MAY BAN PLASTIC BAGS, JOINING OTHER ALASKA CITIES: Anchorage is considering joining the list of Alaska municipalities banning use of plastic bags in retail sales. Local church and nonprofit groups are calling for the ban of non-bio-degradable bags because of littering. Cordova, Soldotna, Palmer, Wasilla and Bethel now ban the bags. In Bethel Alaska Commercial Co. provides thin, single-use bio-degradable bags.

 

MARIJUANA TAX REVENUE TOPS $1 MILLION THIRD MONTH IN A ROW: Marijuana tax revenue totaled $1.18 million in May, topping $1 million for the third month in a row. Ninety six marijuana growers paid taxes in May, the Department of Revenue said. The state has collected $11.8 million in marijuana taxes since sales were legalized in October, 2016. About nine million dollars of that was paid in cash in Anchorage. A proposal to raise Anchorage’s local sales tax on marijuana from 5 percent to 7 percent failed at the assembly level.

 

TARA SWEENEY CONFIRMED AS ASSISTANT SECRETARY FOR INDIAN AFFAIRS: The U.S. Senate confirmed Tara Sweeney as Assistant Interior Secretary for Indian Affairs, the second Alaskan named to a high-level post in the Interior Department. Earlier, Joe Balash was confirmed as Assistant Interior Secretary for Land and Minerals. Sweeney was formerly a vice president at Arctic Slope Regional Corp. Sweeney’s nomination was complicated because of her shareholding in ASRC. Usually appointed government officials divest assets where there might be a conflict of interest but there is no way shares in Alaska Native corporations can be sold. A compromise was reached where Sweeney would not involve herself in matters that could affect ASRC, such as Interior Department actions in leasing in the Arctic National Wildlife Refuge. One of Sweeney’s early assignments will be taking on the controversial lands-into-trust issue (see page 1), which will land on her plate.

 

PETERSBURG AGREES ON NEW CONTRACT WITH EMPLOYEE UNIT: Petersburg’s borough agreed on a new three-year contract with its municipal employees’ union for 1 percent pay raises for three years retroactive to July 1, 2017. Workers had rejected an initial offer of 1 percent for two years and no increase the third year.

 

HOMER CITY VOTERS APPROVE $5 MILLION BOND ISSUE IN SPECIAL ELECTION: Homer’s voters approved a $5 million bond issue to build a new public safety building in a special July 2 election. The vote totaled 808 of 4,782 registered voters, with 505 in favor of the bonds and 289 against.

KENAI MAYOR VETOS FUNDS FOR TOURISM MARKETING, SCHOOLS: Kenai Borough Mayor Charlie Pierce vetoed a $206,000 grant to the Kenai Peninsula tourism marketing nonprofit and $652,000 for the school district. The assembly had agreed to raise borough property taxes by 0.2 mils, but it was inadequate to fund the proposed grants. Pierce did not want to take money from Kenai’s reserves to fund the programs.