Business Intelligence
New downtown Anchorage residential project underway
Site preparation has started on a long-planned $17 million downtown Anchorage high-end residential development project. “Downtown Edge” will offer 35 townhouse-style condominiums. It is the rst new residential construction in downtown Anchorage in many years, city of cials said, and marks the rst part of a downtown revitalization. The project is on Alaska Railroad Corp. land on Second Avenue, near the industri- al Ship Creek area. Peterson Group is developing the project. Phase one involves 19 units with three already sold. Prices range from $420,000 to $575,000. Downtown Edge is the rst part of an eventual 11-acre devel- opment that will include commercial tenants.
GCI REVENUES HIT BY FEDERAL RURAL HOSPITAL CUTS: GCI Liberty, the new name for GCI’s telecommunications systems, said its rst quarter 2017 revenues fell to $216.4 million from $225.3 million in the same period of 2016, an approximate $9 million drop. About $6 million of that is due to a decline
in $6 million in payments for rural health care facilities under the Universal Services Fund (see item, page 6). The sale of General Communications Inc. to Liberty Interactive Corp. of Colorado was completed in March.
The company said its consumer services revenues were at, with customers essentially trading off cable TV for data streaming services, where customers are opting for higher-end data packages. Telephone sub- scribers also declined. However, total homes served by GCI increased 1 percent during the quarter.
ACS REVENUES ALSO DIP, BUT CONSUMER SERVICES INCOME RISES: Alaska Communications Systems said its rst quarter revenues were down 1.2 percent to $56 million compared with $56.7 million in rst quarter 2016, ACS said. As with GCI, a good part of the rst quarter decline is due to the federal cut to federal rural health service communications subsidies. ACS said it is carrying $11.8 million in unpaid receivables for providing continued service to rural hospitals and clinics.
ACS said its business revenues fell 2.2 percent in the rst quarter to $33.8 million, a decline of $700,000. The reduction was in uenced by the loss of the rural health subsidies. Business revenue makes up about 60 percent of ACS’ basic income. Consumer revenue rose slightly, from $9.3 million in rst quarter 2016 to $9.4 million in the rst quarter of this year.
UAF SELECTED TO PARTICIPATE IN DRONE DISTANCE-OPERATION DEMONSTRATIONS: The University of Alaska Fairbanks was selected by the U.S. Dept. of Transportation to participate in test pro- grams of expanded use of drones in the nation’s airspace. The program will include tests of aerial monitoring of the trans-Alaska oil pipeline, remote delivery of medical supplies and oil and gas platform and pipeline monitoring in Cook Inlet. Night operations and flights beyond operators’ line of sight will also be tested. UAF is one of nine participants from 150 applicants nationwide to be included in DOT’s Unmanned Systems Integration Pilot Program. Anchorage-based K2Dronotics will also be part of the project.
SIGNIFICANT INTEREST SHOWN IN INDUSTRIAL HEMP, STATE SAYS: Industrial hemp may quickly become a new niche market in Alaska agriculture. Gov. Bill Walker signed a bill passed by the Legislature legalizing the product, and state agriculture of cials have received over 500 inquiries so far from people interested in making high-value specialized oils from hemp. The oils are non-intoxicating. They are now sold in Alaska but produced elsewhere. Alaska is now one of 34 states that allow the growing of industrial hemp. State of cials say a period of testing is needed to help potential growers determine the best seeds and growing conditions.
$9 MILLION NEW VETS’ HOME IN EAGLE RIVER/CHUGIAK: Veterans’ groups are working toward an $9 million housing project in the Eagle River-Chugiak area for homeless vets. Anchorage’s assembly endorsed the plan. “Vet’s Village” would comprise a main building and up to 25 residential cabins. Opera- tional costs would come from federal grants and a portion of the veterans’ wages. City of cials say it will save money. Each homeless person costs the municipality $80,000 to $100,000 a year, studies show.
BAN ON PLASTIC BAGS CATCHING ON: Four small Alaska communities are now banning disposable plastic shopping bags. The city of Palmer has decided to ban the bags following a similar action by Wasilla, another Matanuska-Susitna Borough city. The vote on Palmer’s city council was 4-1. Effective Jan. 1, the ban will affect grocery and retail stores as well as restaurants. Bethel and Cordova are two other Alaska communities with a ban on plastic bags. So far larger communities of Anchorage, Fairbanks and Juneau have not taken action. Alaska Commercial Co., a retailer serving rural communities, is supplying custom- ers with single-use biodegradable bags.
NORTON SOUND CDQ GROUP DISTRIBUTES COMMUNITY “SHARES”: Norton Sound Economic Development Corp. distributed $133,333 to each of 15 communities in its region in midyear “community share” payments. The payments were made following payment of a $2 million dividend to NSEDC by its for-pro t subsidiary, Sui Alaska. Norton Sound is a western Alaska Community Development Quota corpo- ration, one of six, which receive a percentage of harvest quotas of offshore sh such as pollock, cod, halibut and crab caught in federally-managed waters. While some CDQ groups lease out their quota shares NSEDC, along with some other groups, own their own shing vessels which operate under subsidiaries.
HAINES GIVES THE BOOT TO REALITY TV PRODUCERS: Is the end in sight for Alaska “reality” TV? Haines Borough said no when approached by a television production company, Engel Entertainment, about a reality show based on the Haines Police Department. Engel does “Northwood Law” based on a small
town in New Hampshire as well as “Lone Star Law” based on a Texas community. Interestingly, one Haines assembly member researched the company’s New Hampshire program and discovered complaints in the community that the TV video lming, with its pressure for elements of drama, tended to change the behavior of local police of cers.
HIGH-TECH NEW SPILL RECOVERY EQUIPMENT ARRIVES IN PRINCE WILLIAM SOUND: Edison Chouest is moving its new oil spill response equipment into Prince William Sound. The company conducted drills with Cordova shermen under contract to assist in spills with its new-technology OSRB-1 barge. Fish- ermen involved in the exercise said they were pleased with capabilities of the equipment. Edison Chouest is taking over marine support to Alyeska Pipeline Service Co. from Crowley, which has had the contract since 1977.
MV TAZLINA IS LAUNCHED AT VIGOR KETCHIKAN YARD: The Vigor Industrial shipyard in Ket- chikan launched the rst of the two new “Alaska class” state ferries being constructed in the shipyard. The new MV Tazlina hit the water May 16. Work is still needed to complete the interior of the vessel, but a christening ceremony is set for July 14. The second ferry, MV Hubbard, is still under construction. The new vessels will operate mainly in Lynn Canal in Southeast Alaska.
Former Unalaska mayor Shirley Marquette has taken over as director of the Alaska Marine Highway Sys- tem. Marquette, who has lengthy experience in marine transportation and with major seafood processors, will be based in Ketchikan.
SKAGWAY CRACKS DOWN ON VACATION RENTALS: Skagway is cracking down on a proliferation of vacation rentals by residential owners, through AirBnB and VRBO, because it limits housing needed for seasonal workers. Skagway’s assembly approved a conditional use permit system to regulate the rentals.