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ECONOMIC DEVELOPMENT STRATEGIES for the Village of Tyonek HC 108 arbyshire & Associates, Anchorage, Alaska April 1984 .T95 E33 i984 DARBYSHIRE & ASSOCIATES land management and community planning consulting May 30, 1984 Ms. Bonnie McCord Acting President Tyonek Village Council Tyonekr Alaska 99682 Dear Bonnie: We are extremely pleased to submit Economic Development Strategies for the Village of Tvonek. This study is divided into two sections. The first examines a number of possible job-producing enterprises Tyonek may wish to consider to alleviate its high unemployment rate. The second section entails an update of the 1981 Tyonek/Beluga area impact study. There are a number of opportunities inside, as well as outside, the village which may employ local residents. This study can be a constructive first step to that end. The study reviews those areas of employment indicated by the village council as desirable by community members. Moreover, it includes a detailed list of both public and private organizations which can give technical, educational, and financial assistance to the community or individuals. We appreciate the assistance given to us by the council and community members. And, as with all of our trips to Tyonek, we enjoyed the warm welcome and hospitality of the village residents. S' erely, mar Cotten '6enio Planning Associate 528 "N" sfreef / anchorage, olasko 99501 907-279-5443 ECONOMIC DEVELOPMENT STRATEGIES FOR THE VILLAGE OF TYONEK DARBYSHIRE & ASSOCIATES 528 "N" Street Anchorage, Alaska 99501 (907) 279-5443 US Department of Commerce NOAA Coastal Services Center Library 2234 South Hobson Avenue Charleston, SC 29405-2413 The preparation of this report was financed in part by funds from the Office of Coastal Managementr National Oceanic Atmospheric Administration, U. S. Department of Commerce, administered by the Municipal and Regional Assistance Division, Department of Community and Regional Affairs, State of Alaska. ECONOMIC DEVELOPMENT STRATEGIES FOR THE VILLAGE OF TYONEK Table of Contents PRESENT ECONOMIC CONDITIONS CASH ECONOMY LOCAL INDUSTRIES 3 ECONOMIC BASE 6 SEASONALITY OF EMPLOYMENT 7 LABOR 8 LOCAL DEVELOPMENT OPTIONS 12 HANDICRAFT BUSINESS 13 BULK FUEL STORAGE FACILITY MAINTENANCE MAN 16 CONSTRUCTION COMPANY 17 SMALL ENGINE REPAIR SERVICES 20 GUIDING 23 BOAT BUILDING 29 FIREWOOD CUTTING 32 CIRI TALENT BANK 34 ASSISTANCE PROGRAMS 36 CAPITAL IMPROVEMENT GRANT PROGRAM 37 FINANCIAL/TECHNICAL ASSISTANCE PROGRAMS 47 EDUCATION/TRAINING PROGRAMS 60 UPDATE OF THE 1981 SOCIOECONOMIC IMPACT STUDY OF RESOURCE DEVELOPMENT FOR THE TYONEK/BELUGA COAL AREA BASELINE DATA/INFORMATION UPDATE 1 UPDATE OF POSSIBLE RESOURCE AND INDUSTRIAL DEVELOPMENT 8 Coal 8 Oil and Gas 13 Potential Hydroelectric Project Development 22 Fisheries ievelopment 23 State Land Disposals in the Tyonek Area 24 Timber Development 25 Potential Geothermal Power 26 UPDATE OF COMMUNITY FACILITY AND SERVICE NEEDS 28 CAPITAL IMPROVEMENT PROGRAM 31 TYONEK SUBSISTENCE STUDIES 34 INTRODUCTION In 1981, Darbyshire & Associates completed a study (Socioeconomic Impact Study of Resource Development for the Tyonek/Beluga Coal Area) for the community of Tyonek. The purpose of the study was to assess socioeconomic impacts of potential resource development in the Tyonek/Beluga area. A key finding of the study was the high unemployment rate of Tyonek residents. It was evident that village job seekers were unable to find seasonal or year-round employment in Tyonek or elsewhere. It was concluded that a closer look at employment opportunities, including local business ventures, was needed. In late 1983, Darbyshire & Associates contracted to complete additional work for Tyonek. This new work examines the possibilities for resident full-time and/or seasonal employment inside or outside of Tyonek. Additionally, the study updates the original: o baseline data/information; 0 survey of economic conditions; 0 economic development program; and o capital improvement program. PRESENT ECONOMIC CONDITIONS INTRODUCTION Tyonek's village economy consists primarily of two elements: subsistence and Cash. In most cases, employment patterns fluctuate in response to subsistence harvest activities and household needs. Most individuals in the work force alternate wage employment with subsistence activities. Many workers leave their cash jobs during peak subsistence seasons. Often it is the cash earned that is used primarily for subsistence implements (e.g., gunsr outboard motors, boats, fuel, and ammunition) and household needs (e.g., heating fuel and supplemental food items). Attempts have been made to quantify the value of subsistence activities as they contribute to the maintenance of households. Several of these studies have attempted to convert harvested resources into monetary value (Tribal Specific Health Plan, Yukon-Kuskokwim Delta, Don Bantz, 1979). These studies believe that subsistence activites are at lgast worth what it would cost to purchase their replacements from the cash economy. Further, these studies have estimated that subsistence activities in Alaska bring in about one-quarter of a family's total real income. Although this report concentrates on cash employment and income, rough comparative household incomes can be arrived at by increasing them by one-third. In presenting these findings of the Tyonek cash economy, we have divided our report into sections which describe: o the local industries that are found in Tyonek and the contributions they make to the village economy; 0 the composition of the village's economic base; and o the local labor force and hosuehold incomes. CASH ECONOMY Our survey of Tyonek's 1983 q,@ish economy was conducted in December, 1983. The summary findings of this work are presented in Table 1 below. Table 1 Total Village Income & Employment, by Industry Millage--of Tvonek, Alaska, 1983* No. of Positions Annual Industry Full-Time Seasonal/Part-Time Income (1) Resource Harvesting 0 51 $142,500 (2) Construction 1 1 15rooo (3) Household Mfg. 0 2 lr500 (4) Transportation 1 0 l4r600 (5) Communications/Utilities 2 0 30,600 (6) Trade/Private Services 6 2 132,825 (7) Real Estate 0 0 331,400 (8) Village Government 19 1 282,325 (9) Borough School 5 6 89,455 (10) State & Federal Agencies/Services 3 0 82rOOO ---------- $ 824,205 Outside Employment** 4 0 73,700 Transfer Payments 258,837 TOTAL VILLAGE EMPLOYMENT & INCOME 41 63 $lrl56,742 *Does not include TNC jobs filled by non-villagers "Residents who leave the village on a periodic ba sis to work in such places as Prudhoe Bay and Anchorage The 10 industries listed in Table I were chosen for two reasons. Firstr these groupings best reflected the unique characteristics of the Tyonek economy. Secondlyr they follow a classification scheme developed by the U.S. Department of Commerce and are, therefore, useful for comparison with other studies. One individual can hold more than one position at a time. Alsor one individual can hold one or more jobs during a certain season and later change industries entirely. The first two columns of the table provide measurements of employment activity in each of the listed industries. The first column provides a measurement of the "conventional" full-time cash earning positions in Tyonek. These positions are the easiest to measure in that they represent singler year-round, full-time positions. 2 The second column provides an estimate of cash earning positions that are part-time or seasonal in nature., No specific limitations were used to qualify these reported positions (e.g.r minimum number of man-hours per year, etc.). Insteadr every cash earning part-time position is listed. The third column of Table 1 provides measurements of industry income." In our study, "income" is the sum of: local industry salaries and wages paidr profits to entrepreneurs, rents and interests, local business taxes. Transfer payments include those sources of "income" paid directly to households. These typically include payments under public assistance, G.I. Bill benefits, retirement benefits, pensions, rental subsidies, and so forth. The total of the third column, thus, provides a comprehensive measurement of the Tyonek cash economy. However, as mentioned abover the cash economy is roughly responsible for providing the villagers of Tyonek with three-fourths of their means to earn a livelihood. Subsistence activities contribute the remaining one quarter. LOCAL INDUSTRIES "Industries" are groups of firms, businesses or agencies which produce similar goods or services.. The following describes each of the 10 separate industries we identified in Tyonek and provides information on each. Resource Harvesting: This category generally includes commercial fishermen and others involved in forestry and wildlife harvesting, local businesses that are involved in processing and propagation activities. Professional hunting and fish and game guiding activities are also included in this industry. The local economy has recently lost its major source of year-round employment in the closing of the chip mill near Tyonek. An average of 12 full-time positions were available to villagers during peak operation of this facility. Presently, one part-time job associated with overseeing the closed facility is all that remains. No plans exist to re-open this facility. In Tyonekr this industry is represented entirely by commercial salmon fishermen and their helpers. Often, "helpers" are members of the fisherman's family and, as such, do not receive wages for their efforts. Currently, there are 25 commercial fishermen in Tyonek who hold limited entry permits. Tyonek fishermen work the Upper Cook Inlet commercial fishery. This fishery is operated using set nets pulled by hand into open wooden dories. Although no species are targeted, the money fish is the sockeye salmon. Resident fishermen operate in this fishery at a disadvantage in that no processors or canneries are 3 located on the west side of the inlet. This results in lower profitability due to high costs in transporting fish catches to buyers. The Upper Cook Inlet fishery has-been in a fairly constant economic decline since the early 1970's, when Tyonek fishermen were reporting gross earnings of around $40,000 a season. The decline was first brought about by reduction in salmon stocks. The mid-1970's were considered disaster years as salmon populations appeared to be declining from unknown natural causes. However, salmon propulations began a steady recovery in the late 1970's, and fishery biologists with the State Department of Fish and Game are optimistic that stocks will continue to steadily expand. In the three most recent seasons, Tyonek fishermen have set two harvest records. However, due to drastic price drops, earnings last year averaged approximately $5,000 per permit. Last season's fish prices were the second lowest on record. Market analysts claim.prices are determined by activity in the Bristol Bay fishery. Record salmon harvests in the Bristol Bay region are blamed for the recent low prices in such latter season fisheries as the Upper Cook Inlet. Mining: This would include villagers involved in either exploration or production of the nearby oil and gas resources or development of the coal resources. At present, no villagers are employed in this industry. However, two individuals do work on the North Slope while maintaining households in the village. This employment is listed in this study under outside employment. Construction: This industry covers individuals in the village who construct residential, commercial and public buildings, roads, utility systems, etc. During 1983, only one person worked construction full-time. Another individual worked part-time as a generalist repairing plumbing, electrical, and mechanical systems for residential and public buildings. Upcoming construction projects include improvements in playground facilities and the possibility of constructing a new community center. Household Manufacturina: This small "cottage crafts" industry is composed of those individuals operating out of their residences who engage in carving and sewing and the making of jewelry, cultural artifacts, and subsistence implements (i.e.r manufacture of boats, sleds, traps, etc.). Two individuals have been described as engaged part-time in these activities. Transportation: This includes one individual who works full-time as the village expeditor. Additionally, this activity, from time to time, may include seasonal part-time individuals who 4 help offload ocean barges supplying the village or handling special delivery air cargo shipments. Communications-and Utilities: Employment opportunities exist with the enterprises which provide telephone and radio services and which supply water and electricity. One individual from the village is employed with the Beluga Power Plant. Another individual works operating the village water works. Trade and-Private Services: This category includes firms and individuals selling merchandise for personal and household consumption (i.e., building materials, general merchandiser food storesr automotive and small engine sales), and firms and individuals providing services (i.e.r guesthousest laundry and cleaning services, amusement and recreational servicesr church activitiesr automotive and small engine repair). Real Estate: This is a major income earning industry for the village. Tyonek Management Corporation (TMC), a subsidiary of the Tyonek Village Council, was set up to manage the royalties earned from the sale of oil and gas rights under their former reservation lands. In addition to making major local investments aimed at improving village life, TMC undertook many profit-oriented ventures outside the village. TMC made business investments in Anchorage and developed a Tyonek power plant. Rents earned from these developed properties are the single most important source of new money entering the village. In a strict economic sense, it is this income earned by the Tyonek Village Council that is the primary economic base of the village. In addition to rents from outside properties, the village also collects rent from teachers who live in village housing and from visitors who are lodged at the village guest house. No one is employed in this industry, as property management duties are absorbed by administrative personnel within the village government. Also, all employment with TMC is held by non-villagers and not counted within this economy. Village Government: This is the largest "direct" employer in the village. Approximately one-half of all permanent full-time positions in the village are held with the village government. The Tyonek Village Council (TVC) is a federally chartered organization which operates within the provisions of a constitution and by-laws adopted in accordance witil the Indian Reorganization Act. The TVC manages Tyonek's public affairs and is responsible for delivering public services and controls village lands and buildings. Village-built structures include the community buildingp the community store, a shop facilityr a guesthouse, and the medical center. TVC also built its own water and sewer system,, housesr roads,'and made improvements to the 5 runway and built part of the school. It is because of these responsibilities that TVC is the major source of employment in the community. Full-time positions with the village include: an equipment operatorr shop supervisor, assistant shop mechanic, water and gas operator, village expeditor, village custodian, fire chief, two patrolmenr village nurse, health aide,, grant writer, recreation director, project director, two consultants (on contract), gym supervisor, gym custodianr village president, and three secretaries. The source of funding for the operation and capital outlay of the village government is nearly entirely from earnings made by Tyonek Management Corporationt a subsidiary of TVC (see Real Estate). Other limited sources of funding include the federal and state government. Borouah School: The Kenai Peninsula Borough School District is the second largest employer 'of villagers. This study excludes the school staff who are not considered "village members" by the Tyonek Village Council. These people include the 10 full-time teaching staff, one principal, and one secretary/clerk. Five full-time employment positions are, however, held by village members. These positions include: a custodian, cookr Title 4 aide, bilingual instructor, and a Johnson-O'Malley worker. Two part-time positions as night custodians and three substitute teachers are also employed. A small contract to dispose of the school's solid waste and a school referee provide two very limited part-time positions., State and_Federa@ Agencies and--Services: This category provides three full-time, year-round positions to villagers. The State of Alaska funds the following positions employing villagers: Village Public Safety Officer, state trooper, and a village nurse. Positions with the federal Indian Child Welfare Act and the state's alcoholism program are staffed by non-villagers and are not counted by this study. ECONOMIC BASE Accordirg to economic base theory, dollars enter an economy from industry sales to markets outside the area (export markets). These export industries, in turn, use the dollars to (1) purchase goods and services from other industries, and (2) pay salaries and wages, and profits, rents, interest, and local taxes (inter-industry markets). The dollars earned locally as salaries and wages, etc., then re-enter the economy as purchases for industries (local final markets). This re-entry of dollars from 6 the local final sales market continues until all direct and indirect effects of export sales are accounted for. Table 2 below lists the composition of Tyonek's economic base. Table 2 Tvonek's Economic Base Basic Industries Percent Private Activities 24 TMC Rent Receipts 30 Kenai Borough School Funding 10 State and Federal Services Funding 9 Direct State and Federal Payments to Households 27 100 The purpose of this table is to demonstrate both the direct and indirect dependencies within the village economy. Whereas, for example,, the village store is an important business activity in its own right, it is, in turn, dependent upon income earned by individuals in other industries. Tracing these dependencies back to their basic industries results in the findings presented in Table 2. Combining both the private activities (e.g., fishing, working outside the village, working construction, etc.) and rents received from TMC illustrates that slightly over one-half of Tyonek's economy is based in private industry. The remainder of the economy is dependent upon annual funding cycles within the Kenai Peninsula Borough, the state and federal government. The village of Tyonek is unique in this respect in that many of Alaska's rural villages are 80 to 90 percent dependent upon annual appropriations within the public sector. SEASONALITY OF EMPLOYMENT Severe cycles in monthly employment is an economic fact of life in rural Alaska. Howeverr Tyonek appears to be the exception. The principail employer in the village is the village government, which is almost entirely funded through property investments managed by Tyonek Management Corporation. The village government positions, together with the borough school, are steady year-round and add seasonal stability to the village economy. Secondary employment in the local trade and private service industry further adds to this stability. 7 The only source of seasonal fluctuation in the economy is from fishing and constructionr both of which offer limited employment opportunities. To a limited degreer both of these activities serve to offset the other. During spring breakup, construction activity slows to a standstill, while the fishing season is just getting underway. LABOR During the survey of Tyonek's economy in December, 1983, a brief inventory was conducted of the labor force, its size, skill levelsf worker attitudes, and median income of their households. A brief presentation of of these findings follows on each of these characteristics. Labor-Force Size Table 3 groups Tyonek's total population into basic groups relating to their eligibility for the labor force. Combining those individuals already gainfully employed during the 1983 economic survey (41) and the remainder of the population that is either not retired or handicapped or children attending school (104), one arrives at an eligible labor force of 145 individuals. This leaves Tyonek with only 28 percent of its work force gainfully employed. Furthermorer of the 86 households occupied by village members (i.e., excluding the four homes rented to teachers), 32 households, or approximately 40 percent, were identified not to have either the head of household or spouse employed. Table 3 Population Breakdown by Eligibility Tvongk, Alaskac-1983 Grou Number Individuals gainfully employed 41* Retired or handicapped 13 Children attending school 81 Unemployed or underemployed (including discouraged or not actively seeking employment) 104* Total Village Population 239 *Total eligible work force 8 Labor Skills During the economic survey conducted in the village of Tyonek in December, 1983, a limited survey of households was conducted. This survey was aimed at gathering information on the degree of participation of members from each household in the cash economy. The occupation category of the head of household and other working members was collected on each household. In addition to primary and secondary occupation (e.g. , did they commercially fish in the summer, etc.), the particular skills and background experience of these household members was gathered. In addition to the household survey, individual resumes of Tyonek applicants held within the Cook Inlet Region Incorporated (CIRI) talent bank were examined. As of December, 1983r 37 village members of Tyonek were on file with the CIRI talent bank. Following a January, 1984 meeting by CIRI personnel, 19 of these resumes were updated and re-entered into the talent bank. No effort was made to cross reference the household survey results with the computerized files at CIRI. However, to avoid double counting, only that source listing the largest number of individuals with a particular experience was cited. Figures from these two sources were not summed and therefore avoided the chance of double counting. Furthermore, it should be cautioned that no attempt should be made to draw a meaning from a summing of the reported numbers. The only conclusion to be drawn is that this labor force holds a wide diversity of skillsr a characteristic common in small communities in rural areas. Table 4 provides a listing of the skills held by village members. Once againr the numbers cited refer to individuals claiming to have these skills. Certain individuals are listed more than once in this table when they have diversified skills. No attempt should be made to sum these numbers. Table 4 Listing of Skills, by Tyonek's Labor Force Tvonek, Alaska, December, 1983 Individuals Indicating Skills PROFESSIONAL, TECHNICAL & MANAGERIAL Executive secretary 2 Labor and dock foremen 1 Emergency medical technician 4 Public administrator 5 School nurser community health representative 3 Management consultant 2 Store owner/operator 2 9 Substitute teacher 3 State trooper 1 Social worker 2 Bilingual instructor 1 CLERICAL AND SALES Secretary 3 Sales clerk 4 U.S. postal clerk 2 SERVICES BLM regional firefighters 5 Community trained fireman 2 Volunteer fireman 3 Custodian 5 Day care operator 1 Cook 2 Cook's helper 2 AGRICULTURAL, FISHERY, FORESTRY & RELATED Fisherman (permit holders) 25 Fisherman helpers 25 SKILLED TRADE Building repairman, generalist 3 Laborers 18 Carpenter 2 Electrician 1 Oil field technicianj roughneck 5 Welder 1 Piledriver 1 Shipwright 2 Handicrafts (carving, beadwork, knitting, etc.) 2 EQUIPMENT AND MACHINE OPERATOR Heavy equipment operator 12 Heavy equipment mechanic I Water plant operator 1 Truck driver, village expeditor 2 Power house operator 3 The most significant labor skill in the community is the heavy equipment operator. The CIRI talent bank lists 12 individuals as having both training and experience in the operation of heavy equipment. Nine of these had actual experience of two or more years. Of the 145 members of the labor force, 89 have high school diplomas. Another eight individuals have attended college or earned higher education credits. Four members of the community have earned college degrees. Approximately nine individuals are currently activer dues-paying members of a union. These unions include state Labor Local 71, Local 302 of the Operating Engineersj and Local 959 of the Teamsters. 10 Household Income A measurement of total household income was taken during the December, 1.983 economic survey. This survey measured all earnings from local industriesp earnings from outside employment, and payments from government directly to households (i.e., transfer payments). A total income of $1,156,742 was earned by Tyonek households. Averaging this income across the 90 households yields $12,853 per household. In addition to the survey of businesses, a separate survey of Tyonek's households was conducted. Information collected included a listing of the occupations of all members in the household having worked during 1983 and a report of their total wages in each of their employed capacities. Estimates were required on arriving at average retirement and unemployment benefits for certain households. Alsor an average estimate was made on the total earnings of the 25 fishermen households and their helpers during the 1983 fishing season. The results of this survey provide a cross check on the survey of industries -undertaken separately. Total household income from the household count was $1,179,655, or just slightly higher (i.e., by two percent) than the industry survey. Through the use of this survey, median household income was found to be $11,000 during 1983. LOCAL DEVELOPMENT OPTIONS Based on a series of discussions with Tyonek leaders, it appears that the community's economic goals have not changed in the last two years. They still include: o the reduction of high unemployment rates with meaningfulr stable jobs; 0 overcome the lack of job opportunities in nearby gas field operations for local residents; o to encourage the establishment of businesses which employ residents; o overcome previous difficulties encountered in becoming members of local unions; 0 to increase training/education opportunities for residents to insure increased employment options; 0 to increase the opportunities for residents to work elsewhere on a seasonal basis; and o to insure that residents have an opportunity to work on resource extraction projects in or near the village. A key to achieving these goals is the establishment of small job- producing projects/industries within the village. This section examines some local development options which the village council felt could, realistically, be established in Tyonek. They include: o handicraft business; o bulk fuel storage facility maintenance; o construction company; 0 small engine repair service; o guiding; o boat building; o f irewood cutting. For each of these local development options, there is a: 0 brief background discussion; 0 Suggested next steps; o type of skills required; o training assistance programs; and o technical/financial assistance programs. For further information on the assistance programs, an appendix is provided which describes each assistance program in more detail. 12 HANDICRAFT BUSINESS Background There is a strong interest in a small handicraft business in Tyonek. A number of individuals, particularly elders, have skills in wood carving, bead and leatherwork, and other traditional crafts. The object is to employ a few people, even if only part-time, to produce these items. Most of the needed material and tools are available in the village and are relatively inexpensive. Additionally, there is adequate space available to carry on the work. The principal problem appears to be with marketing the local items in retail outlets elsewhere. In response to this problem, we conducted a series of interviews with Anchorage art/gift shop owners. The following is a summary of those interviews: 0 Marketability of--Items. As with any industry, certain items are marketable while others are not. The handicraft industry is no exception. Although not all individuals interviewed.were in agreement, the following Native crafts were identified as aenerally very marketable: - traditional, hand-made slippers and gloves; - ivory carvings; - traditional arctic masks; - traditional dolls; - stone carving (jade); - birch baskets; - contemporary jewelry made with traditional materials (i.e., ivory, jade, etc.); and - wood or metal carvings exhibiting unique or uncommon art forms. Items which shop owners have difficu.'.L'-.y selling normally include: - beaver hats; - items, including jewelry, with a lot of bead work. Apparently, such items are too similar to products which are commercially imported from the orient; 13 traditional jewelry which is not commonly worn by,the buyer. 0 Consignment. Most small gift shop owners do not take items on consignment. It simply is too time-consuming and difficult to keep track of what was purchased and at what price. However, some of the larger art galleries do take some items on consignment. Generally, their fee is 30 to 40 percent of the sale price. o Contact with Potential Wholesale Buyers. Wholesale buyers often travel to the villages to purchase items. This is sometimes done by the store owner or an agent purchasing items for a number of stores. Handicraft makers likewise visit stores with their merchandise or rent a room and hold a small "showing" of their items. This is usually preceded by written letter well in advance to allow the potential buyers adequate time to prepare for such a showing. 0 Specialization. A number of handicraft producers concentrate on making only one or two items which are proven sellers. The prime.example of this is the ulu (Eskimo cutting knife). This approach generally results in: - lower cost in materials and tools since they can be purchased in larger volumes; - greater efficiency in production because of familiarity in producing the items; and - stronger chances of stable cash flow because of predictable sales. Consideration should be given to producing an item which is closely identified with Tyonek. This could be a particular wood carving, art work, or style of clothing. What is important is that,, if possibler the product is unique or closely associated with only the village of Tyonek. Skill s-Recrui red o familiarity with required tools; 0 experience with grant administration; 0 experience in exhibiting or displaying art work. 14 Suggested Steps o Make contact with the suggested assistance programs to arrange workshops in Tyonek; o Establish a working group to identify: - who wishes to commercially produce handicrafts; - what is their area of expertise and skill level; and - what types of tools and materials are required. 0 Produce a number of sample products from Tyonek; o Set up a meeting with potential wholesale buyers in the Anchorage area to show the sample handicrafts from Tyonek; and 0 After the meeting, assess what handicrafts are marketable and feasible to produce at suggested market prices. Technical Assistance/Workshops o Institute of Alaska Native Art; o State Council on the Arts; 0 Indian Arts & Crafts Board; o Alaska Business Development Center; o Communty Enterprise Development Corporation. Other0 The Alaska Native Arts & Crafts Co-Op (Inc.) 425 "D" Street Anchorage, Alaska 99501 274-2932 15 BULK FUEL STORAGE FACILITY MAINTENANCE MAN Tyonek Village Council has given some consideration to establishing a bulk fuel storage facility in the community. This would provide a part-time job that would have the responsibility to: 0 conduct routine maintenance work on the facility; o assist in filling the tanks; 0 handle fuel sales and delivery; 0 maintain fuel purchases/sales logs. The wages for this position would come from the business profits. Skills-Reauired A background in general equipment maintenance would be useful. An understanding of safety procedures when dealing with flammable materials is essential. Tr ining o Alaska Vocational Technical Center Eunding for the facility can be-obtained at: 0 Bulk Fuel Storage Facility Program; o Indian Tribes and Alaska Native Village Community Development Block Grant Program o Bulk Fuel Revolving Loan Fund Program 16 CONSTRUCTION COMPANY Background The majority of the state construction projects are handled through the Department of Transportation and Public Facilities (DOT/PF). This includes construction of highways, roadsr harbors, schools, docks, and other capital improvements. The work is generally done by private contractors. A sizeable portion of state highway construction projects includes federal funds. In these instances, the federal government requires that a certain percentage (5% to 10%) of a construction contract be awarded to either minority or female owned companies. Further, contractors must demonstrate that they have made a good faith effort to hire a minority firm for that portion of the contract. The state has a similar arrangement when only state funds are used. However, the state's policy is not as stringent as that of the federal government. This circumstance offers a tremendous opportunity. The state appears intent upon continuing its massive capital improvement program. Moreover, in certain fields of construction, there are very few minority firms. Consequently, Tyonek might consider establishing a smallf locally based minority construction company. Type of Work According to DOT/PF and industry sources, there are a number of responsibilities on highway construction projects in which there are very few minority firms. They include: o paving (currently, there is only one minority owned paving firm in the state.) 0 stripping/painting; o flag people/traffic coordinators; 0 material haulers/trucking; o guardrail construction; and o assembling signs and fences. Suggested Steps Or!ganize-a--Construction Company. Tyonek can undertake such a venture by itself. Given the lack of experience, however, it might be wise for the community to set up a joint venture corporation with Tyonek as 51% owner and a prove construction 17 company as 49% owner. Provision should be made in such an arrangement for the training/employment of Tyonek residents. Gain-Cert-ification as a Minority Businesa Enterprise (MBE)-. The newly organized firm must be certified under the Minority Business Enterprise program if it is to be eligible to participate as a minority firm. An MBE application may be obtained from: Vertis Williams/Pat Borden Technical Servicesf DOT/PF Pouch 6900 Anchorage, Alaska 99502 261-1524 To be certif ied as an MBE, Tyonek must: 0 obtain an Alaskan business license; o form as a partnership, sole proprietorship, or corporation; and o demonstrate that minority members own and control at least 51 percent of the company. When the application is approved, DOT/PF will publish the name of the firm in its directory of minority businesses and distribute the same to contractors along with bid information. Coordinat-ion with Contractors. Once the new firm is certified as an MBE, it should inform prime contractors: 0 that it exists as an MBE; o the type of work it provides; o the skill level of employees; and o the number of employees available. Additionally, the new firm should obtain a list of contractors who requested plans or packets 'of information from DOT/PF. This information may be obtained 10 days prior to the opening of bids from: Joe Miller Technical Services/DOT/PF Pouch 6500 Anchorage, Alaska 99502 266-1580 18 Dispatcher Position. A critical component of the MBE will be the dispatching of workers to a job. An individual must, therefore, serve as the local dispatcher. The dispatcher would develop a list of eligible employees, their skill/experience, and available dates. Local people would then be hired from this "labor pool" as positions become available. Skills Reauired Most jobs associated with the proposed MBE would not require highly technical training or experience. Skills needed would include: � general labor skills; 0 opera-tion of small tools and machines; and � road maintenance safety procedures. Train' t construction jobs do not require extensive training. Moreover, many Tyonek residents have the experience/skills Mos required. However, should the need exist, a number of training programs are available. These include: 0 Alaska Technical Vocation School; 0 Apprenticeship Outreach Program; o Job Training Partnership Act Programs; o Indian Employment Assistance; and 0 On-the-Job Training Programs. Financial/Technical Assistance � Community Enterprise Development Corporation; � Alaska Business Development Center, Inc. o Small Business Administration. 19 SMALL ENGINE REPAIR SERVICES Background Small engine repair includes outboard motors, motorcycle engines, snowmobile engines, etc. These are seasonal activities that require extra work hours from time to time. The outboard and motorcycle season begins in March and ends by September. The most intense activity is in early spring when fishermen are getting ready for fishing. Snowmachine repair activity picks up in October and typically ends by March. A steady year-round business would require qualification in all three engine applications. It is the consensus of cycle shop owners in Anchorage that an outboard maintenance and repair service could be the most lucrative at Tyonek. Snowmachine repair would conflict less with traditional village activities (e.g., summer fishing and fall hunting). Nevertheless, the key factors in the success of this type of business are the characteristics of the individual owning/operating the business. Considerations The most serious problem facing anyone who might consider opening a small engine repair business in Tyonek is training. As in most rural villages, a wide variety of small engines exists. To gain the experience necessary to work productively in an Anchorage cycle shop requires between six months and a year. Even with this background, most individuals are not able to work*without supervision and shop support. It would be an extra exceptional individual who could spend a year or two in an apprenticeship in Anchorage and be qualified to return to a village and work without supervision. The individual would also need to obtain the skills to run the business itself. Another difficulty in operating a small engine repair business in Tyonek relates to gaining factory support. The small size of the business would make it difficult to maintain an adequate parts inventory. Consequently, this would lengthen the turn-around time for repairs. A final limiting factor to such a business is the close proximity of Anchorage. Presently, most outboard motors and small engines are taken to Anchorage for repair. And, Anchorage has price, service, parts inventory and competitive advantages that could make it most difficult on a local business. 20 Suggested Steps Village In entDry. One of the first steps should be an inventory of the demand for small engine repair services. An informal survey should be conducted to ascertain the: o number, type and brand of machinery and appliances in the village; 0 number/type of maintenance required per item; o common parts required; 0 general cost local residents pay for annual maintenance; 0 trips per year made to Anchorage specifically for maintenance work; o shipping costs per year for maintenance work; and' o community reaction to a local small engine repair shop. This information will give a real indication of the potential for such a business in Tyonek. Plus, it could prove to be excellent support data for anyone seeking a loan to establish such a business. Review A.-Consumer-Cooperative Approach. One way villagers may overcome many of the problems associated with training skills and factory support is to organize a local consumer cooperative. This cooperative would combine purchasing power and select a common dealership (e.g., Johnson/Evinrude, Suzuki, Polaris, etc.) to do business with. This action could increase the opportunities for locating a branch dealership in the village and thereby employ some local people. Problems associated with training and factory support could also be diminished. Skills Reauired Cycle shops in Anchorage claim experience is the most important qualification when hiring new people. Formal training and a history of "backyard mechanics aptitude" are also important, however. All cycle shops interviewed claimed that once formal training was completed, the next step in gaining the necessary skills was on-the-job training (OJT). Typically under this program, trainees work in a shop setting under the close supervision of an experienced mechanic and are trained on a particular engine type. Additional training is sometimes offered, depending on the dealership. This training is usually in the form of seminars, or may include factory training. 21 Iraining o Automotive Technical Program, Anchorage Community College; 0 Dick Westhall, D & D Marine, Anchorage, Alaska; o Alaska Mining and Diving, Anchorage, Alaska; o Alaska Technical Vocational School; o Apprentice Outreach Program; o Job Training Partnershp Act programs. Technical/Financial Assistance o Economic Development Administration; o Small Business Administration; o Community Enterprise Corporation; o Alaska Industry Development Authority; o Alaska Business Development Center, Inc.; o Alaska Surplus Property Service. 22 GUIDING Background The guiding business is basically divided into two areas: fishing and hunting. The guiding of hunting parties is regulated by state laws that require licensing and an assignment to designated geographical areas. The guiding of fishing parties is not regulated, and individuals do not need to be licensed. However, a bill is presently before the state legislature that would extend such regulations to guide fishing businesses. Both businesses are seasonal and subject to season and take laws. The fishing business generally extends from June to October. Most hunting activities begin in the early fall and may extend into early winter. Guiding activities would conflict with the traditional village subsistence activities and would require sacrifices on the part of any individuals seeking this type of employment. Hunting The hunt guiding business can offer gainful employment and the opportunity to seek a professional career. Villagers may also draw from their traditional skills and enjoy a competitive edge during their early years, as well as become involved in a business that is more culturally compatible. State game regulations provide entry level licenses which require a period of apprenticeship and later, as work experience is gained, advanced ratings. Entry level ratings include a transporter license and assistant guide license. Upper ratings include those of registered guides and ultimately that of master guide. Strict regulations, qualification examinations, and licensing with follow-up monitoring are placed upon the hunt guiding businesses (AS 08.54.010 and 12 AAC 38). A guide licensing and control board appointed by the governor writes the qualification examinations and establishes the number of operating hunting guides assigned to different areas of the state. This board also oversees staff operations and monitors the levels of business done by these guides each year and publishes an annual guide register. This annual guide register lists the names of all persons holding the various guide licenses (e.g.#, master guides or registered guides) and gives their current address. They also set up designated areas within the state's game management units and restricts these areas to qualified guides for their business use. These exclusive areas are assigned to either one or two guides. Areas with two .operating guides are called joint-use guiding areas. 23 The statutes and regulations governing the hunting and guiding industry in Alaska are written in favor of people who have permanent residences within or near the designated game management units. The initial licensing examinations for the various guiding classifications (e.g.r master, registered, Class Ar and assistant) consist of a written and oral portion. Applicants who have language barriers or who are unable to read may be excused from the written examination and be given a follow-up oral exam. In addition, during the actual assignment of exclusive guiding rightsr preference is given to qualified guides whose permanent residence is within the district in which the game area is located. A survey was conducted of several licensed hunting guides operating in the Tyonek area to identify some of the more important aspects of the business. The concensus is that: guiding is getting very competitive; lower priced hunts are lowering industry standards; and Native selections and the redesignation of many lands under National Park and Wilderness designations have closed many areas to hunting. Nevertheless, all licensed guides surveyed felt this business offered viable entrepreneurial and employment opportunities. Tyonek is located within the Lower Susitna. Game Management Unit (Unit 16). This area is characterized as one of the poorer big game hunting areas of the state. The western half of this unit is composed of the Alaska Range. This adverse terrain accounts largely for the lower game populations of the area. The eastern half of the unit is mainly populated by moose and black bear. Trophies such as brown bear, caribou, and sheep are relatively scarce in this unit, although some sheep are found in the Rainy Pass area. The proximity of Anchorage detracts from the marketability of this game unit as a wilderness experience. Furthermore, heavy resident hunting pressure and hunters from the nearby Kenai Peninsula and Anchorage areas place considerable demands on the already limited moose and black bear populations. Table 1 lists the various seasons of big game that may be found in the Lower Susitna Game Management Unit. Table 1 Hunting Seasons', by Big Game Lower Susitna Game K@anagement_Unit 16 Moose September 1 - September 30 December 15 - January 15 Black Bear Open season year-round Limited to three 24 Brown Bear September 1 October 31 May 10 - May 25 Caribou August 10 - October 31 Sheep August 10 - September 20 Employment and-Training Opportunities Entry level positions in the hunt guiding business are mandated by law. These positions are: Assistant Guide and Class A Guide. These positions offer little or no pay, with family members frequently fulfilling these responsibilities. An assistant guide must pass a board examination and be recommended by a registered guide. They must also be 19 years or older, a state resident, -and in sound physical condition. Assistant guide duties include meat and hide packing. Assistant guides must work for one year before they seek their Class A guide license. A transporter license allows a person to transport hunting parties or to take out big game kills. A Class A guide license requires an individual to have 20 years experience within the area he is seeking his license and to have spent one season as an assistant guide. A Class A guide still cannot contract for a hunt and requires supervision from a registered or master guide. However, guiding experience is gained in that they may take charge of a camp and conduct hunts from these camps. Registered and master guides usually own their own businesses. They have exclusive guiding rights to designated areas within a game management unit. Often these businesses include lodges and associated facilities. The master guide is the highest guide rating. About 40 master guides are presently operating in Alaska. Adventure type clubs (e.g.j, Safari International, North American Sheep Club, etc.) recognize these guides and help with their world-wide marketing. Estimates of business profits for the registered and master guides range between $40,000 and $80,000 each season. Fish Guiding The Tyonek area has unique business opportunities in this industry with its abundant river fishing resources. High quality king and silver salmon and rainbow trout of the surrounding rivers are in high demand by sports fishermen. Established guides expressed nearly unanimous opinions that Tyonek's greatest local business opportunity would be in the fish guiding business. As was noted, this is currently an unregulated industry. Guiding permits are issued by the Alaska Department of Fish and Game. Table 2 below lists the recent escalation of interest in guide 25 fishing by the number of permits issued to operators in the Kenai Peninsula area. Table 2 Guide Fishing Permits Issued, Kenai Peninsula Alaska, 1981-1984 Year No. of Permits 1981 1 1982 1 1983 16 1984 200 Source: Alaska Department of Fish and Game Kenai Peninsula fishing guides and the Cook Inlet Professional Sportfishing Association call guide fishing a multimillion dollar industry. Tourist and local resident demand for guide fishing services appears to be outstripping the capacity of the Kenai River. And, pressures are mounting to impose regulations on these businesses much the same as the hunting guides. Thus, Tyonek appears to be in an excellent position to benefit from this type of busine'ss. Additional advantages in setting up a business in guide fishing in Tyonek are numerous. Relative to starting up a business in guide hunting, the start-up costs and training requirements of this business are less stringent. Also, business activity in this industry is limited to summer months, occurring after the commercial fishing season and ending before fall hunting activities. A venture into guide fishing could start out as a simple operation, such as day trips out from Anchorage, and expand its local facilities and services as the business develops. Arguments can also be made that this business could serve to enhance and protect fish resources. Through the use of a catch-and-release program, actual fish stocks may not be affected at all. Experience gained by villagers working in-this business could lead to other opportunities. Work experieiice as a guide could be useful for gaining entry into the hunt guiding business. A working relationship with the Anchorage community and other outside areas can be expected to improve community and political relations and the outside image of the Tyonek people. A quick check into the guide fishi'ng business recently established in the Bristol Bay region found that some local guides were earning upwards of $2,500 per week. Local facilities 26 were limited to a few small cabins, while the transportation was provided by the fishing party. Although the Bristol Bay region offers access to the world's finest trophy fishing streamsr Tyonek has the unique marketing advantage of nearly immediate access to Alaska's tourist market in Anchorage. Organizations which might be contacted for further information or assistance include: 0 State Division of Tourism Pouch E Juneau, Alaska 99811 465-2007 o Anchorage Convention and Visitors Bureau 201 East 3rd Avenue Anchorage, Alaska 99501 276-4118 0 Alaska Wilderness Guides 360 "K" Street Anchorage, Alaska 99501 279-9225 0 Alaska Backcountry Guide Cooperative Fairbanks, Alaska 99701 o Alaska Professional Hunters Association 5941 Arctic Boulevard Anchorage, Alaska 99503 562-2639 o Alan Swenson Alaska Outdoors Travel Service 428 West 4th Anchorage, Alaska 99501 276-2670 o Gary Pogany (registered guide operating in the Tyonek area) Eagle River, Alaska 99577 688-2390 0 John Swiss (master guide operating in the Tyonek area) 129 "F" Street Anchorage, Alaska 99501 272-1225 27 0 Jean Lobb/Nancy Ferguson Guide Licensing and Control Board Department of Commerce & Economic Development State Office Bldg., 9th Floor Juneau, Alaska 99811 465-2534 Financial/technical assistance is available from: o Economic Development Administration o Small Business Administration o Community Enterprise Development Corporation o Alaska Business Development Center, Inc. 28 BOAT BUILDING BackgroUnd The dory boat is one of the most continuously used and widely dispersed fishing boats in Alaska. Modification in the basic design and use of materials has been made to this boat to meet the particular working demands of each region. Throughout western Alaska and the Cook Inlet regionr modifications have been made to the dory boat that have resulted in what is locally known as the Cook Inlet dory. A more universal name for this modified design is the "flat iron" dory, a name given because of the nearly flat bottom. The dory boat design originated from the development of the lumber mill and the flat lumber it could cut. This simple design and use of locally available materials have allowed the boat to be constructed in small, decentralized boat shops near the fisheries. This fact, and their simplicity, tremendous strength, and seaworthiness are responsible for their gaining wide acceptance throughout Alaska's river and inshore fisheries. Consequently,, nearly all of the fishing fleet operated out of the village of Tyonek is the Cook Inlet dory. Mr. George Fredrickson has been building wooden dories,for Alaska's fishermen for over 40 years. We interviewed Mr. Fredrickson to discuss the opportunities and problems associated with the establishment of a boat building enterprise in a village such as Tyonek. He believed that one or two people could establish a seasonal business that would meet the local demand for these wood dories. However, he did express concern that these individuals take on the responsibilities of boat building themselves and not rely on a boat builder's cooperative. In recent years, the advent of plywood has made boat building even simpler. Marine grade plywoods are manufactured in extended lengths (e.g., at two-foot intervals beginning at eight feet up to 24 feet in length) to meet the needs of boat builders. In many regions of Alaska, this is the only major material, other than fasteners, paints and preservatives, that needs to be imported. Locally sawn spruce and fir provide an abundant suppy of excellent quality frames, boat stems, and knees. The Cook Inlet dory has been subjected to some competition from other boat types (e.g., fibreglass and aluminum boats). However, the wooden hulls have held their own. A 22-foot wooden dory can be,manufactured, for example, for between $3,600 and $3,800. Fibreglass boats of this same size run approximately $7,000, while aluminum boats run upwards of $10,000. Further, fishermen claim that the wooden hulls are more durable and more comfortable. 29 Recent declines in fish prices in the Upper Cook Inlet have shifted demand away from the higher priced boats. Additionally, local fishermen are becoming more interested in applying their off-season down time towards maintaining and replacing their wooden boats. Although these boat builders may not be able to construct a new hull with the efficiency of George Fredrickson, their expectations of productivity are not nearly as high. Consequently,, the manufacturing and repairing of the Cook Inlet dory is becoming a more viable village venture. Aside from the construction of a bending or framing rig, tools and construction skills required in the manufacture of these boats are very similar to those required by any skilled carpenter. In Tyonek, two village elders have been identified as still in possession of the boat building skills required to fabricate the Cook Inlet dory. Other, younger individuals interested in taking up this business could work as apprentices under the elders and be expected to gain valuable skills after a single season. Other manufacturing requirements would include the construction of a small wood shop and acquiring the basic carpentry tools. However, according to Mr. Fredrickson, obtaining a supply of boat quality lumber and marine grade plywood was identified as the most serious problem in this type of venture. He cited recent changes in shipping policies with outside plywood and lumber outlets which now require minimum orders (i.e., 20 sheets per each size specified) that nearly make it impossible for a small-scale boat builder to operate. He consequently recommended that cooperation would need to be obtained among local fishermen in placing boat orders. Enough orders for new boats would have to be committed by these fishermen to allow for a single lumber shipment. This bulk ordering would require considerable marketing efforts by the boat builder. Next Stet)s Due to the positive long-range outlook for the Upper Cook Inlet fishery, boat building in Tyonek appears to be viable. In addition, the expertise required to actually construct these boats apparently already resides with a few of the village elders. However, this venture would also require business organization skills that may be presently lacking in the village. Skills in financial management and planning would be in particular demand due to the seasonal nature of this business and the requirements of purchasing expensive materials at the beginning of the boat building season. A highly efficient operationr such as run by Mr. Fredrickson, still has material 30 costs running at half the price of the product. This margin does not allow much room for error by newly formed and relatively inefficient operations characteristic of these types of village ventures. Training Assistance Although most of the training would occur through on-the-job work, the following institutions offer useful programs in this area: 0 Alaska Vocational Technical Center; and 0 Anchorage Community College. Financial/Technical Assistance o Small Business Administration; 0 Alaska Business Development Center; o Community Enterprise Development Corporation; and o George Fredrickson 1701 West Dimond Anchorage, Alaska 99503 277-2154 31 FIREWOOD CUTTING Background One of the more important factors contributing to the viability of this business is the soon to end electrical supply agreement with Chugach Electric. This is causing a changeover from electrical heating to fuel oil and other fuelsf such as firewood. Although most households at present gather their own firewood, the availability of a local supplier could well bring about a change in this circumstance. It is estimated a cord of wood would sell for about $150 in Tyonek (an equivalent amount of wood cut 24 inches in length, stacked eight feet high and running eight feet long). Equipment that would be needed for such activity includes chainsaws, a heavy-duty snowmachine or all terrain tractor capable of skidding overland, and possibly a wood splitter machine. Also, a staging area would be needed on the outskirts of the village to deck the cut logs and later split and store the wood. Good firewood is usually allowed to season/dry for several months before burning. Suggested Steps 0 determine the community's existing and future annual wood needs; 0 measure the residents' desire and willingness to purchase wood at $150/cord; 0 cost out the capital required to establish such a business; and o measure the potential income/profitability of such an operation. Required Skills 0 operation and maintenance of chainsaws, splitting machines, and snowmachines; 0 basic first aid; and 0 light logging and tree cutting experience. Training Training may be obtained through: 0 Alaska Vocational Technical Center; and 32 o Anchorage Community College. Financial/Technical Assistance o Small Business Administration; o Community Enterprise Development Corporation; o Alaska Business Development Center; o Indian Credit Program; o Economic Development Administration. 33 (CIRI) TALENT BANK The (CIRI) Talent Bank is a job placement, training, and referral service that is available to Tyonek residents. Generally,, the talent bank contains information on the education, experience and interests of the participants. Theny as employment or'training opportunities ariser qualified participants are notified. The talent bank also provides special services to applicants by responding to questions about: the types of positions available, job descriptions, salary, hiring procedures, and so forth. This service helps orient applicants to a particular job field, helps arrange interviews, and maintains records on past job seeking efforts. To ensure both the accuracy and effectiveness of this service, the talent bank must have current information. This requires ongoing interaction. Accomplishments and other changes in status of villagers through education, training, or work experience must find their way into this information bank. Local efforts must, therefore, be developed to ensure this updating occurs. Recent experiences with the CIRI Talent Bank have not met up with the expectations of Tyonek's villagers. Most problems that have been cited by both the operators and subscribers of this service relate to the remoteness of the village. CIRI Talent Bank operators claim it has been difficult to solicit current information from Tyonek residents for their files. Residents counter that they are never notified when job or training opportunities arise. Improvements in communications appear to be the most effective way to overcome these problems. One solution may be to establish a contact person in Tyonek. The responsibilities of this position would be twofold. The first duties would relate to overcoming the problems of gathering information from the villagers. Periodic requests should be made to the CIRI Talent Bank to obtain copies of files on village subscribers. These files should be reviewed for accuracy and update and corrections sent back to the bank. This would require that close contact be maintained with the training, education and employment activities of the village workforce. Responsibilities may also include arranging and organizing village workshops for the purpose of educating community groups, high school students? and faculty members on the changes in job markets and career opportunities. Consideration should be given to assigning these duties to the new Employment and Training Coordinator position recently proposed in reorganizing village government. 34 A second area of responsibility would be to improve the ability of outsiders to contact villagers and, as such, serve as a village "dispatcher." These duties would include keeping track of the whereabouts of village applicants and being able to pass on to them information requests and notices of opportunities. These "dispatcher" duties should also include recommending qualified individuals to fill special opportunities that may arise, in addition to those identified by the CIRI Talent Bank. This would require an individual familiar with the background, skills/experiencer and work habits of villagers to make effective recommendations. For example, this person should be able to put together crews on short notice to fill such unexpected demands as BLM firefighting and search and rescue efforts. 35 ASSISTANCE PROGRAMS INTRODUCT ION This section describes in detail some programs which may assist Tyonek in economic development related projects. They are divided into three broad categories: 0 capital improvement grant programs; 0 financial/technical assistance programs; and o education/training programs. There are a number of possible programs, activities, and training facilities, both public and private, throughout the state and nation which may affect economic development in Tyonek. For purposes of this study, programs listed are those which: 0 Tyonek would most likely receive funding from in normal ci rcum stance s; 0 Tyonek expressed a clear need for the type of assistance the program provides; o are adequately funded to provide the type of assistance Tyonek may need. 36 CAPITAL IMPROVEMENT GRANT PROGRAMS Program Rural Development Assistance Municipal & Regional Assistanc e Division Department of Community & Regional Affairs 949 East 36th, Suite 400 Anchorage, Alaska 99508 Gene Kane 561-8586 Program-Objectives The program is designed to promote economic development, diversification, employment, and the construction of basic facilities. Eliaibility If the community is within a borough which has the power to nrovide the service or facility, the borough can apply. If the borough doesn't have the power, a non-profit organization or IRA council may apply. Funding $100,000 per fiscal year. Basis for Grant Award The Director of the Division of Local Government Assistance will decide awards base'd on: 0 commitment of the applicant to the project; o economic condition of the community; 0 impact of the Project on the community; 0 adequacy and condition of existing basic community facilities; 0 capability of the applicant to administer the cj-,,ant; and 0 availability of other funding sources. Reguired Information 0 appropriate application; 37 0 resolution by borough stating that it lacks authority to undertake the project; o project description; 0 support documents from other agencies involved; 0 Price estimate document; o land document (if applicable); o drawings or blueprints (if applicable); o material list (if applicable); o f inancial statement; 0 statement of compliance with municipal zoning and. building codes (if applicable). TvT)e/Examr)le of Assistance Projects range from community centers, health clinics, to service vehicles. 38 Procira Bulk Fuel Storage Facility Municipal & Regional Assistance Division Department of Community & Regional Affairs 949 East 36th, Suite 400 Anchorage, Alaska 99508 Gene Kane: 561-8586 Program.Oblectives The program provides funds for the purchase and shipment of bulk fuel storage facilities. Eligibil tv itV If the community is within a borough which has the -power to- iprovide the service or facility, the borough can apply. If the borough doesn't have the power, a non-profit organization or IRA council may apply. Funding A community may receive up to a total of $100,000 for a bulk fuel storage facility. Funds may be awarded in phases or as an entire block of money. Basis for Grant Award Awards for projects shall be based on the following factors: o lack of adequate fuel storage facilities; o history of fuel shortages; o restricted transportation; and 0 priorities for the type of fuel in the following descending order: home heating, gas for vehicles used in obtaining wood to heat homes, general fuel, propane, gasoline for subsistence hunting and/or fishing, fuel for heating public buildings, and gasoline used for recreational transportation. Required information Applicant must describe: 0 fuel shortage; 0 existing facility capabilities; 39 o ownership of facilities; 0 use of fuel; 0 how the fuel is delivered to the owner. Type/Example of Assistance Bulk fuel storage tanks and support facilities. 40 Progra Bulk Fuel Revolving Loan Fund Division of Investments Department of Commerce & Economic Development 3601 "C" Street, Suite 722 Anchorage, Alaska 99503 274-6673 Program Objectives The purpose of the program is to assist rural communities purchase bulk fuel. Eligibility A community or private individual who has a written endorsement from the local government. Funding The program is presently without funds. However, the legislature may fund it this coming fiscal year (FY 1985). Program Requirements The loans are generally for only one year. Type/Examiple of Assistance Short-term loans to purchase bulk fuel in emergency situations. 41 Progra Indian Tribes and Alaska Native Village Community Development Block Grant Program U.S. Department ofHousing & Urban Development Anchorage Office, Region X Community Planning & Development Division 701 "C" Street, Box 64 Anchorage, Alaska 99513 271-4181 Program-Objectives The program assists Native villages through grants to enhance the well-being of the community. Eligibilily Eligible Alaskan Native villages as defined by the federal government. Tyonek is an eligibile village. FundinZ The maximum grant amount for one fiscal year is $500,000. This may either be a single project or include a series of projects. Program-Rectuirements The amount of a grant award will be based on: o the size of the applicant; 0 the level of demand; o the scale of the project proposed relative to need and operational capacity; o the number of persons to be served; and o the administrative capacity of the applicant to complete the project in a timely manner. Type/Exgmple of Assistance The award may include projects in the areas of: o economic development; o basic community facilities; o housing rehabilitation; 42 0 community service center or tribal facility; o subsistence development. In the fall of 198'3, Tyonek received a HUDCDBG grant of $436,000 for a new community center. However, according to HUD agency personnel, this should not influence the community from receiving another grant under this program. Grant proposals are viewed on a case-by-case basis. Consequently, Tyonek has the opportunity to receive other grants through this program. A. 3 Progra Economic Development Administration Federal Building, Room C-550 701 "C" Street Anchorage, Alaska 99513 Bernhard Richert 271-5857 Program-Objectives EDA's primary mission is to develop long-term jobs in the private sector through cooperation between the public/private sectors. Eligibility Borough, Native villages, non-profit corporations, and other entities interested in economic development. Program Reauirements EDA requirements for project grants include: o create long-term jobs for community members in the private sector; 0 have broad community support; o are located in areas of high unemployment and/or low per capita income; o could not occur without federal assistance; and o are supported with substantial private sector involvement. T.vpe/Example of Assistance Grants are awarded for: o planning; 0 technical assistance; o revolving loan and economic adjustment assistance; and o public works (i.e., docks, harbors, etc.). EDA is generally reluctant to fund projects such as buildings or recreation facilities because of their limited job producing capability. 44 Progra Local Service Roads & Trails Program Division of Planning & Programming Center Region for Design and Construction Pouch 6500 Anchorage, Alaska 99502 Program Objectives The program is designed to assist funding for the development of roads and trails on routes that are not eligible for federal aid matching f unds. Eligibility The Kenai Peninsula Borough would be the only eligible recipient of funds. Tyonek cannot directly receive the money. Program Requirements The Kenai Peninsula Borough must submit a three-year project program for the construction of roads and trails by October 1 of each year, indicating the priorities for construction. Tyipe/Example of Assistance The state grants 100% financing for boardwalks, roads, and street development. 45 Program Alaska Surplus Property Service (ASPS) 200 North Wrangell Anchorage, Alaska 99501 @279-0596 Program-Objectives The program allows public agencies to acquire surplus federal property to be used for public purposes. This normally includes economic development, education, parks and recreation, public health, and conservation, Eligibility The State of Alaska, borough and cities, Native regional non-profit corporations, libraries, museums, child care (non-prof it tax exempt) F health,, and educational institutions. Procram--Reauirements An organization should notify ASPSr in writing, which item it wishes to purchase. ASPS then will contact them when such items are available. Type/Examr)le of Assistance Types of surplus property include vehicles, aircraftf generators, office equipment and furniture, medical suppliesf clothing,hand tools,, and electronics. Items are normally sold at 10 percent of original cost. Tyonek Native Village Council is nQ an eligible participant in the program. However, it can indirectly receive surplus property from the program through Cook Inlet Native Association or the Kenai Peninsula Borough. 46 FINANCIAL/TECHNICAL ASSISTANCE PROGRAMS Proara Alaska Industrial Development Authority (AIDA) 1577 nC" Street, Suite 304 Anchorage, Alaska 99501-5177 PT-ogram Objectivea AIDA was established to assist in the development of a stronger economic base, with particular emphasis on alleviating unemployment problems. AIDA provides financing to businesses. It issues tax exempt bonds which can result in an interest rate two to three percent le'ss than bonds which are not tax exempt. Eligibility Nearly all commercial and industrial projects are eligible. Examples of previous projects which may have some applicability to Tyonek are: 0 construction of a warehouse for a supply company; o purchase of marine, diesel, aircraft and small engine repair service; 0 Purchase of a building and bulk fuel facilities for private business; o purchase and remodel of an office space; 0 acquisition, improvement and equipment for industrial and manufacturing facilities. Certain projects are ineligible for tax exempt bonds for this program. They include: o inventory; o working capital; o ref inancing loans; o certain recreational facilities, such as skating facilities, racquet sports, and tennis clubs. Additionally, no more than 25 percent of a tax exempt bond loan may be used to finance facilities whose primary purpose is retail food, beverage services, automobile sales and service, or the provision of recreation or entertainment. 47 Loan Amount Tax exempt revenue bonds may not exceed $10 million per project, unless the project is one of the following: airports, docksr wharves, mass commuting facilities, parking facilitiesr or any storage or training facilities that are directly related to these facilities; air or water pollution control facilitiest or waterr sewer or solid waste disposal facilities. Cost to Apnlicant A $100.00 preliminary application fee, VJ_Ug three to three and a half percent of the bond amount. Steps by BorroweL The following steps must be taken to successfully obtain a loan under this program: o borrower must identify a qualified banker that will be the primary lender; o a full credit description submitted by the borrower and approved by the lender; 0 AIDA reviews the credit and if it approves, sends a letter to the lender with an interim funding rate. The permanent rate of interest will be set on completion of the bond sale; o the commitment is then accepted by the borrower and lender and returned to AIDA, along with a one percent non-refundable commitment fee; o lender closes loan to borrower per amount stated in commitment letter; o bond sale is conducted and a permanent rate of interest is established. 48 Pr.ogra Small Business Administration Federal Building 701 "CIO Street- Anchorager Alaska 99501 Don Strain 272-4022 Program-Objectives Assist businesses with long-term financing for working capital, machinery, equipmentr furniture, fixtures, leasehold improvements, land, building acquisition or construction, and in some circumstances debt consolidation loans. Small Business Administration (SBA) offers two loan programs to potential borrowers: 0 Direct Loans. Presently SBA does not have funding for direct loans. However, agency personnel stated there is a possibility of funding in the near future. 0 Indirect Loans. SBA lending is presently all indirect or SBA guaranteed. This means a bank makes a loan and SBA agrees to repay up to 90% of the loss in case of default. All banks are eligible to participate. Program Requirements If an individual or group wishes to apply for a loan, they must: o Describe in detail the type of business to be established,-, o Describe experience and management capabilities; 0 Prepare an estimate of how much you have to invest in the business and how much you will need to borrow; o Prepare a current financial statement (balance sheet) listing all personal assets and all liabilities; 0 Prepare a month-by-month detailed projection of earnings for the first year the business will oper.,:i.te; 0 List collaterial to be offered as security for the loan, with your estimate of the present market value of each item; 0 Take this material to your banker and request the loan; 0 To speed matters, always make your financial information 49 available when you write or visit your bank or SBA. SBA may not make a loan to an applicant if: 0 funds are otherwise available on reasonable terms; 0 loan is to pay off creditors who are inadequately secured; 0 loan allows speculation in any kind of property; or 0 applicant is a-nonprofit corporationr a newspaper, magazine, book publishing company, or similar enterprise. Presently SBA makes $6 to $8 million of loans a month in businesses in Alaska. Borrowers are located throughout the stater including small rural communities. Amount of Loan SBA may guarantee up to 90% or $500,000 (whichever is less) of an eligible bank loan to a small firm. Maturity Generallyr working capital loans are limited to three to seven years. Some loans, however, may be as long as 25 years. Interest � For SBA guaranteed bank loans with maturities of less than seven years, the maximum rate is 2-1/4% over New York prime. � For similar loans with maturities of seven years or longer, the maximum rate is 2-3/4% over New York prime. � At the bank's option, the note may have a variable interest rate which is adjusted at regular intervals, up or downr following the New York prime. Presently, SBA interest rate is at 13-1/4% - 13-3/4%. L2n2,rAJ_-,Credit Requirements The loan applicant must: 0 Be of good character; 0 Show the proposed loan is of sound value or secured so as to reasonably assume repayment; 50 0 Show that the past earnings record and future prospects of the firm indicate ability to repay the loan and other f ixed debt out of prof its; o Show ability to operate the business successfully. For a new business#, applicants must have significant management experience in a business similar to the one they propose to enter; and 0 Have enough of their own capital at stake so that, with an SBA loan, the business can operate on a sound financial basis. Collateral SBA generally will approve a loan only if it can secure it with liens on all available company assets. This would normally include: o a mortgage on land, buildings, and equipment; o assignment of receivables and inventory; and 0 a mortgage on personally held real property if company assets are insufficient. Additionally, guarantees or personal endorsements of owners and corporate owners will be required. 51 Program Community Enterprise Development Corporation of Alaska (CEDC) 5011 East Tudor Road Anchorager Alaska 99503 Valerie Talimon Chavez 562-2322 Progrant-Objectives The organization's primary objective is to "improve the economic well-being of communities, families, and individuals in rural Alaska by promoting efficient, pioductiver and self-sustaining business enterprises." CEDC provides such assistance through the rural development loan fund and the Minority Business Development Agency (Alaska Rural Assistance Program). Eligibility An organization must become a member to be eligible for assistance. Present members include: o regional and subregional nonprofits that are voting members of any community action program; o the 12 ANCSA regional corporations; o IRA Councils; o village corporations; o tribal governments; o rural cooperatives and ventures; and o other low-income community organizations. Program Requirements Elements in deciding to fund a project include its capability to: o generate revenues; o increase employment opportunities; o create sound use of renewable resources; 0 develop new cash resources from outside the village into the village. 52 Type/Example of Assistance o direct financing through equity investment and loans; o leverage of financing from the business community; o information, advice and business contract/referrals; and 0 cash grants and other services. Activities eligible for loans include: 0 acquisition of land, buildings, machinery, equipme nt, and facilities; 0 construction, expansion, repair and modernization of buildingsp machineryl equipmentr and facilities; o business acquisitions which enhance income, employment, and/or ownership opportunities for low-income rural residents; 0 purchase of supplies; and o working capital and start-up costs. Other assistance includes: 0 market planning 0 advertising and promotion 0 pricing strategies 0 new product development o marketing research o financial management and planning o accounting consulting 0 management analysis 0 personnel services o production management o loan packaging 53 Progra Community Facility Loans Farmers Home Administration Department of Agriculture P.O. Box 819 Palmer, AK 99645 Dave Winter 745-4273 Program Objective The program is designed to fund the construction, enlargement and improvement of community facilities in rural areas. Eligibility State, city, borough and Indian tribes. Progra-m-Reguirements The loan must be used for community facilities which can be used by all community members. Type/Example of Assistance FHA insures loans which a community would obtain through a financial institution. Generallyr an organization can obtain a loan at about two percent over the prime interest rate. Projects for which loans have been made in the past include the areas of: 0 fire and rescue services; o transportation; o community, social, cultural and health benefits; and o utility extensions. 54 Program Business and Industrial Loans Farmers Home Administration Department of Agriculture P.O. Box 819 Palmer, AK 99645 Dave Winter 745-4273 P-rogram Objective The program is designed to assist publicr privatey Indian tribes, or individuals in rural areas to obtain loans for various types of businesses. Eligibil i-v Stater city, borough, or Indian tribes. Program Requirement Requirements include: o Feasibility studies are required for loans over $1 million; 0 Maximum 30-year loan for land, buildings, and permanent fixtures. Type/Example of Assistance FHA insures loans which an organization would obtain through a financial institution. Generally, an organization can obtain a loan at about two percent over the prime interest rate. Loans have been made to miningr transportation, retail and wholesale businesses, and service oriented businesses. 55 Progr.a Indian Credit Program Bureau of Indian Affairs Juneau Area Office Juneau, AK 99801 Roger Fitzgerald 586-7177 Program Objectives The program's intent is to provide financial assistance to Alaska Natives. Eligibility Alaska Native tribes and Indian organizations and their members. Program Reguirements The project must: o be profit oriented; 0 be at least 51% Indian owned and managed; and 0 Provide economic development. Type/Example of assistance Projects which loans have been made for in the past include: o health care facilities; 0 purchase bulk fuel, propane and gasoline; and o other vitally needed community development. 56 Progra Alaska Business Development Centerp Inc. (ABDC) 624 Cordova Streetr Suite 1 Anchorage, Alaska 99501 Bob Hamilton 279-7427 Program Objectives Assist small business with management and financial problems. Elioibility An existing or newly created business is eligible. Rrogram Requirements There are no real size or location requirements. The program's focus, however, is primarily small and rural business ventures. Type/Example of Assistance ABDC provides technical assistance in setting up a company's books, giving workshops for small, rural groups on small business development and operation. 57 Alaska Business Assistance Association (ABAA) ABAA is an umbrella group of organizations in Anchorage which offers different types of financial and technical assistance. Listed below are the current members of ABAA. Will Elder Bill Schneider Municipality of Anchorage Associated General Contractors Pouch 6-650 P.O. Box 4-2500 Anchorage, AK 99502 Anchorage, AK 99509 264-4878 276-5354 Gary Selk John Staton Ak. Business Development Ctr. SOHIO Alaska Petroleum Co. 642 Cordova St. Pouch 6-612 Anchorage, AK 99501 Anchorage, AK 99502 279-7427 263-5654 Francis Gallela Miriam Morrow Ak. Rural Assistance Program Peoples Bank & Trust 1011 E. Tudor Rd.r Suite 210 8th & G Street Anchorager AK 99503 Anchorage, AK 99501 562-2322 263-3261 Ray Scheffler George Collum Anch. Community Develop. Corp. Humana Hosp. Purchasing/PMMA 701 Sesame, #102 Pouch 8-AH Anchorager AK 99503 Anchorage, AK 99508 562-3717 561-1201 Frank Stokes Jan Henning Alyeska Pipeline Service Co. National Park Service/MBOC 1835 Bragaw St. 2525 Gambell Street Anchorage, AK 99512 Anchorage, AK 99503 265-8373 271-4202 Vertis Williams Robert Jones Alaska DOT/PF BLM/DOI-EEO Pouch 6900 701 "C" St., Box 13 Anchorage, AK 99502 Anchorage, AK 99513 266-1611 271-3134 Ron Walt Bert Campbell Ak. Dept. of Comm. & Econ. Dev. Municipality of Anchorage Pouch EE Pouch 6-650 Juneau, AK 99811 Anchorage, AK 99502 465-2017 264-4897 58 Fred Johnson Bill Dudley Anch. Econ. Dev. Commission Dir. of Purchasing/Elm. AFB P.O. Box 3-4115 P.O. Box 758 Anchorage, AK 99501 Elmendorf AFB, AK 99506 272-6654 552-2420 Charles Hudson Roger Holmes Ak. Minority Contractors Assn. ALASCOM 744 E. 13thr #104 949 E. 36th Avenue Anchorage, AK 99502 Anchorage, AK 99502 272-1409 564-7000 Frank Cox Bert Wagnon Small Business Administration AIDA 701 "C" Street,, Box 67 1577 "C" Street, Suite 304 Anchorage, AK 99513 Anchorage, AK 99501 271-4022 274-1651 George Kunde ARCO 700 "G" St., Room 930 Anchorage, AK 99501 263-4423 59 EDUCATION/TRAINING PROGRAMS Progra Institute of Alaska Native Arts, Inc. P.O. Box 80583 Fairbanks, Alaska 99708 Rose Atuk Fosdick 479-8473/479-4436 Procram Obiectives The institute's primary objective is to assist Aleut, Eskimo, and Indian artists in their work. Eligibility The program's focus is Aleut, Eskimo and Indian artists. TypeZExample of AssistanCe The institute provides: o workshops; o educational material; o technical assistance; and o a bi-monthly newsletter. 60 Program Alaska State Council on the Arts/Program Assistant 619 Warehouse Avenue, Suite 220 Anchorage, Alaska 99501 279-1558 Program Obipctives The organization's goal is to assist small artists and groups with their projects. Eligibility Individuals, communities and school districts and others. Program Requirements Demonstrate a clear need for the particular grant. Type/Example-of Assistance The council can provide technical assistancer workshops, and financial assistance. Types of assistance in 1983 include: 0 Ninilchik Arts Council: workshop grant; o Marshall: artist in the school; o Ouzinkie: workshop grant; o King Cove City School: artist in school/carving; o Nome: workshop grant, drum making; o Shishmaref IRA Council: sculpture and carving workshop. 61 Program Indian Arts & Crafts Board General Manager Department of Interior Washington, D.C. 20240 Robert G. Hunt (202) 343-2773 P-r-ogram Objectives The program seeks to provide the development of Indian arts and crafts. Program-Requirements Decision-making concerning project must be by Indians. Assistance must be designed to develop innovative, educational, production, promotion, and economic concepts related to Native culture. Type/ExAmple of Assistance The program offers advisory assistance only. This generally entails workshops and technical assistance. 62 Proara Apprentice Outreach Program Anchorage Building & Construction Trades Council 407 Denali Street Anchorager Alaska 99503 Russell Anderson/Patricia Lile 272-5411 Proc[ram-Oblectives The Apprentice Outreach Program serves as a coordinator for the various union trade schools. A committee of union and contractor personnel conducts interviews of apprentice program applicants. Types-of Training Training programs are offered for the following trades: 0 asbestos worker; o boilermakers; o carpenter, millwright, cabinet maker; 0 cement, mason and plasterer; 0 cooks and bakers; 0 electrical wireman, lineman, and telephone worker; perating engineer - universal equipment, grade and paving, equipment, plant equipment and heavy duty 0 Orepairman; o painterr glazier and floor coverers; o plumber and pipe/steamfitters; 0 roofers; 0 sheetmetal workers; 0 laborers; 0 piledriver person; and o power plant maintenance. Training programs are conducted principally in Anchorage, along with a few in Juneau and Fairbanks. 63 More detailed information may be obtained from the program about the respective programs. Cos No fees are charged for the classroom instruction. A small fee is charged for some manuals and texts. Funding Trainees may receive veteran and/or unemployment benefits while attending classes. 64 Proara Alaska Vocational Technical Center Box 615 eward, Alaska 99664 224-3322 S Program Objectives Provide useful technical skills to Alaskans. Tyr)es of Train' The program provides training in the areas of: Training pUration-(Wks) Tuition Fees Office occupations 34 $340 $92.10 Emergency medical service ---------- varies ------------- Basic restaurant kitchen management 12 160 39.00 Commercial baking 24 240 93.10 Food service 32 320 93.10 Forestry technology 60 440 101.20 Roughneck development 16 160 148.00 Building maintenance 20 200 58.10 Mechanics 24 240 93.10 Basic math/English for GED ---------- varies ------------- Mechanics-diesel 24 240 93.10 Heavy equipment 28 280 103.10 Maintenance welding 16 160 114.00 Advanced training/fishermen ---------- varies ------------- Marine technical assistance courses ---------- varies ------------- Nautical training ---------- varies ------------- Driver education ---------- varies ------------- Other Expenses Room and board is $70 a week. Most training-related clothing is provided by the center. Proaram Recuirements Minimum age 18 years old and living in Alaska. Individuals under 18 may enroll with parental pe rmission? Student Financial Aid Students may be eligible for various financial aid programs depending on their circumstances. Financial programs would include: 65 o Veterans Administration (G.I. Bill); o Social Security; o Alaska Student Aid Program; o BIA/Native corporations; o Vocational rehabilitation. 66 Pr_oQra Job Training Partnership Act, Title II Adult & Youth Programs Division of Community Development Department of Community & Regional Affairs 939 East 36th, Suite 400 Anchorage, Alaska 99508 Program Oblectives The program is designed to give training and employment services to eligible persons. The program focus is principally low income individuals. Elioibility State and local governments, non-profit organizations, and some private for profit organizations. Individuals to be served are economically disadvantaged, youth age 14-21, unemployed, underemployed. Tvr)e of Assistance Services include on-the-job training, job search assistance, counseling, relocation assistance, and classroom training. Program Job Training Partnershipf Title III Employment & Training Assistance for Dislocated Workers Division of Community Development Department of Community & Regional Affairs 939 East 36th, Suite 400 Anchorage, Alaska 99508 Program Objectives The program is designed to assist dislocated workers. This includes those terminated or laid off and the long-term unemployed with limited opportunities to return to the same job. Eligibility State and local governments, public and private non-profit agencies, and community-based organizations. Type of Assistange The services include job search assistance, job development, job training for skills in which demand exceeds supply, relocation assistance, counseling, and pre-layoff assistance. 67 Progra Career Options/Sex Equality Center Department of Education Pouch I Juneaur Alaska 99811 Linda Van Ellenburg Program Obiectives The program's intent is to assist high school students understand their career training options. The program places special emphasis on minorities and females. The program entails the workshop and presentation by state personnel of available training in the villages. The program coordinator is knowledgeable about various state training facilities and projects. 68 Program Anchorage Community College 2533 Providence Avenue Anchorager Alaska 99504 Program Objectives ACCIs objective is to.provide a wide array of career training programs. Eligibility Open entry. There is no minimal educational requirement. Courseg ACC provides a series of technical training programs. They include: o aviation maintenance o business o auto/diesel technology o electronics technology o fire science technology o water/waste water o welding technology o petroleum Funding Students attending ACC are eligible for: 0 veterans benefits; 0 Alask a student loan program; and o other funding programs. Additionally, ACC provides: o the educational opportunity center tutor program; o learning resource center; o day care assistance/Municipality of Anchorage; o disabled student services; o reading and writing center; 0 women's center/ACC; 69 o SOS Program (rural and Native assistance program); o Tanaina child care center; o adult learning center; and o CLEP testing (obtain credit from previous knowledge and experience). 70 Progra Indian Employment Assistance Bureau of Indian Affairs 1675 "C" Street Anchorage, AK 99503 271-4084 Program-Objectives The program is designed to provide vocational training and employment opportunities for Indians. Elioibilli-v Applicant must be a member of an eligible tribe or Indian group. Program Reguiremgnts The training must assist eligible applicants with marketable skills and employment. Tvr)e/Exgmple of Assistance The program grants funding to individuals engaged in vocational training. 71 On-the-Job Training-Programs Listed below are companies within southcentral Alaska which provide on-the-job training. These shops are nD-t connected to unions. Apprenticeship openings vary. For more details on the company's requirementsr pay,, type of training, etc., direct contact with the respective businesses must be made. OccuY)ation Sponsgr Location Airframe & Power Crosswinds STOL Anchorage Plant Mechanic 2311 E. Huffman Rd. Anchorager Alaska 345-2651 Auto Maintenance K & M Automotive Wasilla Equip. Servicer Boundary Street Wasilla, Alaska 376-5696 Auto Mechanic Hamilton's Place Cooper Landing Cooper Landing, Alaska 595-1260 Peninsula Ford Soldotna Soldotna Y Soldotnar Alaska 262-5491 Baker/Cook Hotel & Restaurant Workers Anchorage 610 W. 6th Anchorage, Alaska 279-2623 Boilermaker Alaska Boilermakers JATC Anchorage 407 Denali Anchorage, Alaska 279-4981 Butcher Mr. Prime Beef Anchorage 7521 Old Seward Hwy. Anchorage, Alaska 344-4066 Camera Repair Dan's Camera Repair Anchorage 735 W. 4th Anchorage, Alaska 277-7214 72 Carpenter Barometer Mountain Builders Anchorage 1400 Virginia Court Anchorage, Alaska 274-2194 Walsky Construction Company Anchorage 1636 E. Bluff Drive Anchoragel Alaska 274-8677 Construction Craig Taylor Equipment Co. Anchorage Equip. Mechanic 733 E. Whitney Road Anchorager Alaska 276-5050 Dental Lab. Tech. Ceramic Dental Lab Anchorage 2601 Boniface Pkwy. Anchorage, Alaska 333-0222 Drafter, Air Photo Tech, Inc. Anchorage Cartographic 2013 Merrill Field Dr. Anchorager Alaska 272-4495 Electrician A-C Electric Anchorage 7133 Arctic Blvd. Anchorage,, Alaska 344-0628 Grizzley Electric Anchorage 1204 Chugach Way Anchorage, Alaska 561-1364 Norcraft Corporation Anchorage 3750 Coventry Drive Anchorager Alaska 344-1348 Northline Electric Company Anchorage 1306 W. 31st Anchorage, Alaska 276-6408 Rainbow Electric Wasilla Schrock-Pittman Road Wasillar Alaska 376-3313 73 Udelhoven Oil Field Sys. Serv. Soldotna Ballard Building Soldotna, Alaska 262-9121 Electric Motor Hayden Electric Motors Anchorage Repair 4109 Seward Hwy. Anchorage, Alaska 561-1073 Floor Coverer Four D Interiors Soldotna 35559 Kenai Spur Road Soldotna, Alaska 262-9181 N.B. Associates Anchorage 4124 Crosson Drive Anchorage, Alaska 243-6225 Furrier David Green & Sons Anchorage 130 W. 4th Anchorage,, Alaska 277-9595 Insulation Worker merit Enterprises Anchorage 1301 E. Whitney Road Anchorager Alaska 276-0880 Jeweler Greatland Gold Anchorage 360 W. Benson Blvd. Anchorage, Alaska 561-5066 Kantas Jewelers Anchorage 334 W. 3rd Anchoragel Alaska 274-7333 Line maintainer Northline Electric Co. Anchorage 1306 W. 31st Anchorager Alaska 276-6408 Lithographic Kay Guthrie Associates Anchorage Plate Maker 410 Fredericks Anchorage, Alaska 333-7021 74 Locksmith Locksmith Eagle River Eagle River Loop Road Eagle River, Alaska 694-4074 Machinist Stack Steel Anchorage (Machine Shop) 1200 W. Dowling Rd. Anchorager Alaska 561-1188 Superior Machine & Welding Anchorage 1745 Ship Avenue Anchorage, Alaska 277-3538 Meatcutter Safeway Stores, Inc. Anchorage 800 E. Dimond Blvd. Anchorage, Alaska 349-4491 Mechanic, Aircraft Akland Helicopters Talkeetna, Accessories Talkeetna, Alaska 733-2224 Mechanic, Indus. Harold's Rent-a-Truck Anchorage Truck 4617 Old Seward Hwy. Anchorage, Alaska 563-3988 Office Machine Dossman Office Machines Anchorage Servicer 4119 Mountain View Dr. Anchorage, Alaska 274-5315 Yukon Office Supply Anchorage 3150 "C" Street Anchorage, Alaska 561-5255 Offset Press Printmore Corporation Anchorage Operator 1 920 E. Whitney Road Anchorage, Alaska 279-3418 Ridgway's Anchorage 6000 Arctic Blvd. Anchorage, Alaska 561-1555 75 Operating Eng. Walsky Construction Co. Anchorage (Constr.) 1636 E. Bluff Dr. Anchorage, Alaska 274-8677 Painter (Constr.) Hansen Painting Sterling Scout Lake Loop Sterling,, Alaska 262-4951 Harrison Construction Anchorage Anchorage, Alaska 274-0717 Sykes Hamilton Painting Anchorage Anchorage, Alaska 333-6769 Pipefitter Stephens Mechanical Anchorage 7339 Arctic Blvd. Anchorage,, Alaska 349-1633 - Plumber (Const.) Curtis Plumbing & Heating Eagle River Mi. 15.5 Old Glenn Hwy. Eagle Riverr Alaska 694-2190 J & A, Inc. Anchorage Anchorage, Alaska 276-1990 Merit Enterprises Anchorage 1301 E. Whitney Rd. Anchorage, Alaska 276-0880 Sheppard Plumbing & Heating Anchorage Anchorage, Alaska 248-3555 Protective Signal Northern Electronics Anchorage Installer Anchorage, Alaska 561-2399 Roofer (Const.) Merit Enterprises Anchorage 1301 E. Whitney Rd. Anchorage, Alaska 276-0880 76 Rotogravure-Press Homer New s Company Homer Operator Pioneer Avenue Homer, Alaska 235-7767 Sheet Metal Miller Sheetmetal & Heating Kenai Worker Kenai, Alaska 283-3871 Stephens Brothers Plumbing Anchorage 7339 Arctic Blvd. Anchoragel Alaska 349-1539 Upholsterer Merrill Field Upholstery Anchorage 1936 E. 5th Anchorage, Alaska 276-2002 Web-Press Printmore Corporation Anchorage Operator 920 E. Whitney Road Anchorage, Alaska 279-3418 77 I I I 1. ;I I I I I I I UPDATE OF THE 1981 SOCIOECONOMIC IMPACT STUDY OF I I RESOURCE DEVELOPMENT FOR THE TYONEK/BELUGA COAL AREA. I I I 'I I -1 I BASELINE DATA/ IN FORMATION UPDATE This section updates population and housing information contained in the 1981 study. Population and-Housing Tyonek has experienced several large declines in population during its early recorded history. Studies on the early ethnology (Fall and Osgood) of the Tanainas report that between 1836 and 1840, half died from a smallpox epidemic, and, in 1918, very few Tyonek residents survived a major influenza epidemic. Table 1 presents the historical population figures prepared by the U.S. Bureau of the Census between 1880 and 1980. Aside from a few short periods of either stagnation or slight declines in population, Tyonek has experienced a modest rate of growth averaging two percent annually since the 1920's. Table I Historical Population Trends Tyonek, Alaska, 1880-1980 Year. Populatian 1880 117 1890 115 1920 58 1939* 136 1950 132 1960 187 1970 232 1980 239 *No regular census was conducted in Tyonek in 1930 or 1940 During the 19701s, total population for the village of Tyonek remained remarkably stable. The U.S. Bureau of Census reports for 1970 show an "Alaska Native Village" population of 232, while the 1980 Census reports 239. This is an annual growth rate of only .3 percent. Due to the rapid growth in population in the remainder of the Kenai Peninsula Borough, special census have been conducted in addition to the decennial U.S. Census. Special census were conducted by the borough in 1978 and in 1982. These census were conducted under the procedures set forth by and in accordance with the concepts and definitions used by the U.S. Bureau of the 1 Census. Nevertheless, th e results of these special census must be used with caution for the village of Tyonek. The principal source of discrepancy is in the choice of statistical boundaries. Whereas the decennial U.S. Census made special effort to report by "Alaska Native Villages," the special census combined these sub-areas into election precinct districts. In the case of the Tyonek precinct, this would include such outlying populations as workers housed in remote camps associated with the chip mill near Tyonek and camps associated with the operation of the western Cook Inlet gas fields and facilities.' Additionally, the Kenai Peninsula Borough School Distict measures village school attendance throughout the school year. These data are a fair representation of population change within the village because school enrollment encompasses local residences only. Table 2 presents a summary of recent population trends as provided by these various sources. During the 1970's, school attendance figures rose at an annual average growth rate of four percent, while the overall village population remained relatively constant (i.e., .3 percent annual growth). Village size itself presents limitations to any detailed analysis of population change. For example,, the school attendance figures, when computed over the same period but extended to 1983, drop dramatically from four percent to slightly less than 1-1/2 percent growth rate. Nevertheless, it may be concluded that the age composition of the population is dropping in favor of the younger child-bearing households. The outlook, thus, should be a steady increase in demand for housing and jobs as these same young people reach adulthood and desire to raise families in the village. 2 Table 2 Comparative Population Trends Village of Tyonekf Bartlett Schoolr Kenai-Cook Inle,t Census District Kenai-Cook Tyonek Village of Bartlett Inlet Census Year Area (1) Tvonek (2) School (3) Division (4) 1967 59 1970 232 72 14,250 .1974 91 1975 115 1976 108 1977 97 1978 270 98 22,271 1979 94 1980 239 107 22,473(5) 1981 104 1982 251 89 Sources: (1) Special Census conducted by the Kenai Peninsula Borough which includes Tyonek and surrounding settlements on the west side of Cook Inlet. (2) U.S. Census, Special Tape on Reservations and Alaska Native Villages (3) Kenai Peninsula Borough School District (e.g., 1967 refers to the 1967-1968 school year) (4) Alaska Department of Labor (5) Recalculated by Alaska Department of Labor to reflect 1970 boundaries Future Population Future population in a region is usually thought of as being determine6' by a combination of two principal factors: natural population changes (i.e.r births minus deaths) and regional migration (in-migration less out-migration). Regional migration is typically influenced through regional economic development and, in rural Alaska, the availability of subsidized housing. In Tyonek, information on the age and sex characteristics and fertility rates of the population is not available in sufficient 3 detail to allow the use of natural population projection techniques. In addition, as will be discussed in following sections of this study, no major development projects are expected to affect the population of Tyonek. For these reasons, this study will make its forecast of future population and housing based upon trending techniques of historical data and our assessment of other factors influencing future population. An examination of the U.S. Census data for the village reveals that the population during the 1960's grew at an average annual rate of a little over two percent. However, during the 1970's, growth was almost at a standstill (i.e., approximately .3 percent annually). A partial explanation for these changing trends is that during the 1960's, the village received $12.9 million from its sale of oil and gas rights. It used these funds to make major investments outside the community, as well as improve living conditions locally. It funded a local housing program, improved streets and airstripf installed a community water system, built a guesthouse and store, and helped finance a new school. Living conditions in Tyonek during the latter portion of the 1960's were in stark contrast to that normally found in a Native village. These local investment efforts are very likely to have been the underlying reasons for expansion in Tyonek's population during the 1960's. During the 1970's, the village suffered financial setbacks when expected royalties from the oil companies failed to materialize. In addition, efforts to involve local villagers in gainful employment proved to be ineffective. Tyonek found itself isolated, and despite the promises from instant wealthr found itself, to a certain degree, still dependent on governmental social programs. The 1970's were a period of stagnation for Tyonek, when most of the remaining rural Alaskan villages experienced their growth. The outlook for population changes for the remainder of the 1980's is thus seen by this study to be most influenced by: 0 the absence of an active housing program; 0 a village policy to limit economic development to meet the employment needs of local residents; o a historical growth limited to approximately two percent annually; 0 recent trends of near stagnation in population growth; and o trends that indicate the population is getting younger. 4 All but the last factor are interpreted to bring about a continuation of very low growth rates during the remainder of the 1980's. Each of these factors will be discussed as follows. Presently, no private housing plans exist and public housing is limited to a single application for 10 elderly housing units through the Cook Inlet Housing Authority (CIHA). Telephone interviews with the funding agency, the U.S. Department of Housing and Urban Development, indicate that no funding exists for this project. Interviews with CIHA, which has the responsibility of ranking the applications with other villages and outlying areas in the southcentral region, also indicate an indefinite date as to when, if ever, this project will be given the go ahead. Housing, therefore, is not expected to contribute to population growth in Tyonek's near future. Unemployment is estimated at around 70 percent among Tyonek's able work force. And, while there are efforts underway to alleviate this problem,, new employment opportunities are expected to only offset the seriousness of this problem. The village has a policy aimed at providing only for the needs of the locally unemployed. Future employment opportunities are not being pursued that would cause an increase in population from in- migration. Major employment changes, therefore, are not seen as a source for population growth in Tyonek. Historically, the village of Tyonek has never experienced a major increase in its population. Growth rates of around two percent are relatively low when compared to most rural Alaskan villages. During the 1960's and 1970's, most rural Alaskan villages similar in size to Tyonek have experienced growth rates of between three and.five percent and up. In addition, the leveling off and near zero growth during the 1970's leads one to further characterize Tyonek as having a stable population. Some population growth, however, is expected as a result of: natural causes (i.e., more births than deaths) and a maturing, younger population that will choose to remain in the village. Drawing upon the above reasoning, a growth rate of one percent annually is expected to continue throughout the 1980's. Maturing households and improvements in job opportunities are expected to increase this rate slightly to two percent between 1990 and the year 2000. Table 3 iists our forecasted population for Tyonek. 5 Table 3 Population Forecast* Tyoneko, Alaska 1985 - 2000 Year 1985 1990 1995 2000 Population 251 264 291 322 *It should be remembered that the reliability of any population forecast decreases with the time span of the forecast and is directly proportional to the size of the population base. State or national policies, economic conditions, and health care delivery systems change as time passes, causing unforeseen increases or decreases in population. In small populations, a small, absolute shift can produce changes that.seem very large by percentage. Housing During the 1980 U.S. Census, 95 housing units were reported in the village. During preparation of the Tyonek profile by Darbyshire & Associates in 1981, 89 houses were counted. The Tyonek IRA Council reported 86 total homes in the village in April, 1982. A housing inventory, which was done during preparation of this study in December, 1983, identified a total of 90 homes, four of these being trailers. This latter count does not include two additional trailers used by the school district for housing of teachers. Four of the 90 homes in the village are subleased to teachers. This may account for the 86 total homes counted by the Village IRA as only those being occupied by village members. A figure of 90 total housing units will be used for purposes of this study. Using the U.S. Census population figure of 239 people within the village of Tyonek and their reported 90 housing units (minus four teacher trailers), one arrives at an average household size of 2.66. This figure is well below the average of three persons per household found in other outlying villages in Alaska. Based on this reason and the fact-that at present the only "plans" for additional housing are the 10 elderly housing units, it is expected, that the only new housing in the 1980's will eventually be these 10 elderly housing units. Furthermore, it is expected that after completion of these 10 new units, no additional housing will be constructed until the latter part of the 1990's. It is expected that seven new units will be constructed simply to offset increases in average household size to maintain an average outlying village size of 3.0. 6 Table 4 Housing Projection Tvonek Alaska,-1980-2000 Ave. Household Housing Size Year Ponulation Most Likely Most Likely 1980 239 90 2.66 1985 251 100 2.51 1990 264 100 2.64 1995 291 100 2.91 2000 322 107 3.01 7 UPDATE OF POSSIBLE RESOURCE AND INDUSTRIAL DEVELOPMENT This section re-examines potential resource and industrial developments for the Tyonek/Beluga area. This includes: o coal exploration and development; 0 oil and gas exploration and development; 0 hydroelectric project development; o f isheries development; o state land disposal program; 0 geothermal power development; Coal o timber development. It is fairly evident that the major coal development proposals discussed in the late 1970's and early 1980's have been either postponed or indefinitely delayed. The principal reasons given for this change of direction: � The-low market-demand. The international market for coal has softened in the last few yeari.. This is mostly attributable to the failing prices for oil; � High transportation cost. Industry spokesmen still view transportation costs as too high. The markets for Alaska coal are simply too far away; 0 High mining cost. Mining costs in Alaska are extremely high. New technologies m-ay be required before actual mining occurs. The following is an updated list of major coal resource owners in the area and their plans for the future: 8 Name: Diamond Shamrock-Chuitna Coal Joint Venture sr) nsor: Joint venture between: (1) Diamond Shamrock Corporation, doing business as Diamond Alaska Coal Company, operating partner; and (2) Chuitna Coal Company. Location: The Chuitna lease area is about 10 miles west from the village of Tyonek. Interest Held in Land: Lease of 20,571 acres of subsurface estate from the State of Alaska for an indefinite period of time. Development Scenario: Essentially the same, only the project startup date has been pushed back to late 1988 or possibly later. Employment: Employment needs are essentially the same as mentioned in the 1981 study. Contact: Jodie Morrison Diamond Shamrock Corp. 430 West Tudor Road Anchorage, Alaska 9-9503 Phone: 563-3451 9 Name: Placer Amex Inc. Sponsor: Beluga Coal Companyr a wholly owned subsidiary of Placer Amex Inc. (P.A.). in joint venture with Cook Inlet Region, Inc. Location: Lands in the Capps lease area, Chuitna lease area, and Threemile lease area are located 25, 15 and 8 miles west, respectively, from the village of Tyonek. Interest-Held in Land: Indefinite term leases of 25,926 acres of subsurface estate from the State of Alaska. A 3001-wide right-of-way from the lease areas to a proposed port site from Cook Inlet Region, Inc. Development Scenario: The project has been postponed to sometime in the 19901s. This is also subject to further delays if the market for coal continues to be weak. "Original" development plans are still to be used. Employment: Because of the extended delay of the project, exact employment needs have not been well defined. Contact: Cole E. McFarland or Benno J.G. Patsch Beluga Coal Company 1 California Building San Francisco, California 94111 Phone: (415) 986-0740 Cook Inlet Regional Corporation Lands/Natural Resource Department 2525 "C" Street Anchorage, Alaska 99503 Phone: 274-8638 10 Name: Meadowlark Farms Inc. Sponsor: Meadowlark Farms, a wholly owned subsidiary of AMAX Coal, Inc. Location: Lands north of Beluga Lake some 45 miles northwest from village of Tyonek. Interest Held in Land: Lease of 3,880 acres of subsurface estate from the State of Alaska for an indefinite period of time. Development Scenario: None. o Pacific Rim market demand is not adequate to justify development; 0 Type of coal found in area is difficult to mine; and o Cost of transportation is unacceptably high. Status/Schedule: No exploration or development plans unless world market demand increases. Contact: Manny Eframian AMAX Coal Company 105 S. Meridian Street Indianapolis, Indiana 46225 Phone: (317) 266-2626 Name: Mobil Oil Leases Sponsor: Mobil Oil Corporation Location:, Two tracts of land north of Beluga Lake some 55 miles northwest of the village of Tyonek. Interest--Held in-Land: Lease of 23,080 acres of subsurface estate from the State of Alaska for an indefinite period of time. Development Scenario: None. Status/Schedule: None. Contact: Fernando Blackgoat Mobil Oil Corporation P.O. Box 17772 Denver, Colorado 80217 Phone: (303) 298-2000 12 Oil and Gas Oil and gas activities in the area have not changed substantially in the last few years. Industry spokesmen cite the low price of oil and gas as the chief reason for the lack of any significant developments. Listed below are: o two recent state oil and gas lease sales; 0 their potential impacts and mitigation measures imposed by the state on the industry; and 0 an update of exi sting oil and gas activities in the area. State of -Alaska Oil and Gas Lease Sales Name: State Oil & Gas Lease Sale #35 Sponsor: State of Alaska Date: February 2, 1981 Location: Lower Cook Inlet area, south of Tyonek, 90% offshore lands I Results: 601,171.5 acres were offered, 131,190.69 acres were leased. A fixed cash bonus/royalty bidding system was used for the sale. Successful Bidders No. of Tracts Wilfred L. Gray 1 Kelly Everette, et al. 3 Amaret, Inc. 2 Tesoro 2 Chevron USA, Inc. and Beard Oil Co. 5 Arco Alaska, Inc. 5 Union Oil Co. of Calif. 2 Monte J. Allen, et al. 2 R. Dianne Stevens 1 Chevron USA, Inc., 8 Contact: Ron Berran Department of Natural Resources Division.of Mineral & Energy Management 555 Cordova Street Anchorage, Alaska 99503 Phone 276-2153 13 Name: State Oil & Gas Lease Sale #40 -Sponsor: State of Alaska Date: August 19, 1983 Location: Upper Cook Inlet area, includes onshore and offshore tracts Result: There were 284 tracts (lF044,745.02 acres) offered, with 140 tracts (443,354.88 acres) receiving bids. A fixed royalty/cash bonus system was used for the sale. . SuccessfUl Bidders No. of Tracts Richard E. Wagner 42 Chevron/Shell 7 Chevron/Arco/Shell 2 Chevron 7 Frank J. Novoset Group 6 Arco Alaska, Inc. 18 Grand Bank Energy Co. 1 Simasco Prod. Co./Group 2 Union/Marathon/CIRI 1 Union 3 Texaco/Agip 4 Beard Oil Co. 9 John D. Alexander, Jr. 1 Burglin/Group is Chs. S. Balog/Group 4 L'Marie Beaux 2 Alaska Land Leasing 21 Contact: Ron Berran Department of Natural Resources Division of Mineral & Energy Management 555 Cordova Street Anchorage, Alaska 99503 Phone 276-2153 14 Potential--Imloacts from Sale #35-and #40 According to state interagency studies, the potential impacts associated with the development of Sales #35 and #40 which may affect the Tyonek area include: o forcing of bears away from preferred feeding areas; 0 interference with salmon migration patternsr alteration of salmon spawning and rearing habitats, or the reduction of salmon overwintering areas; 0 few, if any, new residents to the community of Tyonek; 0 little changes in the human use of fish and wildlife; 0 low risks for a major oil spill; 0 five percent of the offshore jobs will go to Alaska residents; 85 percent of the onshore and indirect jobs will employ Alaska residents. The state requires oil and gas lessees to adhere to a number of stipulations to mitigate adverse impacts. The following are those stipulations which may pertain to Tyonek. 0 A spill prevention, control and countermeasure plan must be submitted to the Department of Envirormental Conservation for approval prior to onshore drilling operations and construction of onshore oil and gas storage facilities, transfer, and transportation facilities. 0 All lease activities and structures must be designed to maintain normal water flow and drainage patterns and to allow free movement and safe passage of fish and mammals, unless the Directorr DMEMr after consultation with the Department of Fish and Game, determines that such a design is not feasible or prudent. 0 The siting of onshore facilities, except for road and pipeline crossings which must be aligned perpendicular or near perpendicular to water courses, will be prohibited, in most cases, within 500 feet of all fishbearing streams and lakes, unless it is shown to the satisfaction of the Director, DMEMr after consultation with the Department of Fish and Game, that alternative site locations outside 500 feet are not feasible or prudent. 0 The lessee is encouraged to hire Alaska residents to the extent that they are available and qualified to perform work done in Alaska in connection with this lease. 15 o The lessee must include in any exploration and/or development plans a proposed environmental training program for all personnel involved in exploration or development activities. 0 No restriction of public access to, or use of, the lease area will be permitted as a consequence of oil and gas activities except in the immediate vicinity of drill sites, buildingsr and other related structures. o Surf.ace use will be restricted, as necessary, to prevent unreasonable conflicts with local subsistence harvests. o Discharge of produced waters to freshwater bodies, intertidal habitat, and estuarine waters at river mouths is prohibited. 16 Existina-0il and Gas Activities Operator: Chevron USA Location/Activity: Natural gas fields located at intermittent points from 15 to 120 miles northwest of Tyonek. Existing-Activities: Beluga River Unit has been on line for gas production for some time. Chevron plans to have a new gasline to service Anchorage from the field by 1986. There are no plans for production for Polly Creek, Ivan Riverr and Stump Lake Units. Interest in Land: Indefinite term lease of subsurface natural gas rights from State of Alaska and Cook Inlet Region, Inc. Employment: The gasline is presently under construct ion. The employment needs for maintenance of the line have not been identif ied. Proposed Development: None at this time beyond the gasline. Contact: Ron Thomas/Bill Siefke Chevron USA P.O. Box 7-839 Anchorage,, Alaska 99510 Phone: 279-9666 17 Operator: AMOCO Production Company Locatio : Potential oil and gas fields just north of the West Forelands area near Tyonek. Interest in Land: Indefinite term lease of subsurface rights f rom State of Alaska. Existina-Development: None. Proposed Develogment: None. AMOCO Production does not foresee @ny type of activity on its part in this area for the immediate future. Contact: J. G. Saviers AMOCO Production Company P.O. Box 799 Anchorage, Alaska 99501 Phone: 272-8471 18 Operator: City Service Oil Co. Location/Activity: Natural gas field 20 miles northeast of Tyonek on Lewis River. Interest in Land: Indefinite term lease of subsurface natural gas rights from State of Alaska. Existinct-Development: Natural gas drilling camp; five exploratory drill sites. Proposed Devglor)ment: No immediate-plans for any type of development. The market is too soft for gas production from these fields. Contact: Reggie Elki ns City Service Oil Co. 1016 W. 6th Avenue, Suite 420 Anchorage, Alaska 99501 Phone: 272-9441 19 Operator: Marathon Oil Company LocationlActivity: Oil and gas treatment plant approximately 20 miles southwest of Tyonek on Trading Bay; also lease holdings in McArthur Field and Trading Bay Field. Interest in Land: Indefinite term lease of subsurface rights and some surface rights-of-way and areas for plants from State of Alaska. Existing Development: Essentially the same as in 1981. This entailed a modified gas plant and heater treatment plant for oil at Trading Bay. Some of the gas is shipped via the Drift Rive'r pipeline to the Cook Inlet Pipeline across the inlet to the Kenai Peninsula. Other gas is shipped through a pipeline across Tyonek land to transshipment area and Granite Point, then to Union Oil plant near Swanson River on the Kenai Peninsula. Potential Expansion: There are no plans for expansion or further development at this time. Contact: Maurey Lowman Marathon Oil Company Production and Exploration 320 "C" Street Anchorager Alaska 99503 Phone: 274-1511 20 Operator: Simasko Production Company (SIMKO) 1jacation/Agtivj_ty: Natural gas exploration on 22rOOO acres approximately 10 to 15 miles west of Tyonek. Interest-in Land: Indefinite term lease of mineral rights to 22,000 acres from Cook Inlet Region; also surface use agreement with Tyonek Native Corporation (TNC) allowing SIMKO access across TNC lands to its drill sites. Existing Development: Minor exploratory drilling on small gas field areas. Proiposed Development: Possibly more exploratory drilling in the future with other drilling partners. Lack of activity heavily influenced by low market demand. Contact: Bill Stuart Simasko Production Company P.O. Box 1515 Anchorage, Alaska 99510 Phone: 277-5932 21 Potential Hydroelectric Project Development The 1981 study identified a potential hydroelectric site in the Chakachamina Lake area. This site is 50 miles west of Tyonek- The project was viewed by many as a possible alternative to the Susitna Project. It was felt that the project would be able to adequately meet electric power demands without adversely affecting the local fisheries. The interim feasibility studies, however, have proven otherwise. The initial findings have shown that impacts on marine biology in the McArthur River and Chakachatna River far exceeded impacts projected from the proposed hydroelectric project on the Susitna River. Equally important, the amount of potential power, approximately 330 MW, would not sufficiently meet projected market demands. The Alaska Power Authority intends to only conduct stream gauge studies over the immediate future. Furthermore, the state legislature has not appropriated funding for futher studies, nor does the Alaska Power Authority intend to request any additional funding for this project. Thus, it appears that the project is indefinitely postponed. For further information regarding this project, contact: George Gleason Alaska Power Authority 334 W. 5th Ave., 2nd Floor Anchorage, Alaska 99501 277-7641 22 Fisheries-Develoi)ment, State policies toward fisheries in the area have changed within the last two years. The Chuitna River was open for sport king salmon fishing in 1983. The Department of Fish and Game intends to request the State Fish and Game Board to open the entire west side of Cook Inlet to king salmon fishing next year. The department feels there is no biological reason not to open the area for king salmon sport fishing. The Board is scheduled to take up the matter at its March, 1984 meeting. Other fisheries activities in the vicinity of Tyonek are limited to some commercial fish guiding operations. There are no known plans for expansion of these activities. Future information rega rding this topic may be obtained from: Kevin Delaney/Jim Fall Department of Fish and Game 333 Raspberry Road Anchorage, Alaska 99502 Phone 344-0541 23 State Land Disposals in the Tvonek Area The Department of Natural Resources, Division of Land and Water Management, administers various state land disposal programs. The department does not have any disposals scheduled in the Tyonek area in the near future. The only sales which have taken place in the general area over the last two years are: � High Mountain Lake Subdivision & Homesites T-i=: Spring, 1982 Locatio : 65 miles northwest of Anchorage, about 50 miles northwest of Tyonek, Township 17 North, Range 13 West, Sections 22 and 23 Parcel Size:.10-12 acres Net Offering: approximately 500 acres. o Bear Lake Remote Site Time: Fall, 1982 Location: Just west of Redoubt Bay 70 miles west of Tyonek, Township 14 North, Range 18 West, Sections 14, 15, 22, 27, 34-36 Maximum Parcel Size: 10 acres Net Offering: 1,000 acres. � Dinglishna Hills Subdivision & Homesite li=: Spring, 1982 Location: 30 miles northwesterly from Anchorage, 55 miles northwest of Tyonek, Township 16 North, Range 7 West Parcel Size: 5-10 acres Net Offering: Approximately 450 acres. Direct impacts to Tyonek are not foreseen because of these sales. Information on future land disposals may be obtained from: Bix Willis/Joe Joiner Division of Land and Water Management Department of Natural Resources 555 Cordova Street Anchorage, Alaska 99501 Phone 276-2653 24 Timber Development Kodiak Lumber Mills, Inc. obtained timber rights to 225,000 acres of land near Tyonek in 1973. Its lease, however, expired in 1983. The company established a $30 million chip mill, camp, and pier approximately five miles south of Tyonek. The operation did not prove to be successful, and the entire camp was recently closed down and the equipment sold. According to company officials and state forestry personnel, the market for the quality and volume of the lumber was too soft. The state does not anticipate any more bid-sale on state lands in the near future. Further information on this topic may be obtained from: John Daly John Sturgeon Senior Vice President Division of Forestry Kodiak Lumber Mills, Inc. Department of Natural Resources 437 E Street 555 Cordova Street Anchorage, AK 99501 Anchorage, AK 99501 276-0060 25 Potential Geothermal Power The Department of Natural Resources, Division of Minerals and Energy Managementr had its first competitive geothermal lease sale May 17, 1983 for the Mt. Spurr area. The area is approximately 35 miles northwest of-Tyonek. The sale entailed 10,240 acres of state owned land. Successful bidders acquire the rights to explore for, develop and produce the geothermal resources that may be discovered within the leased area. There was only one bidder at the lease sale. Susan Tierney of Wasilla, Alaska received a lease of one tract (640 acres). At this time, the lessee does not have any immediate plans for exploration or development. If, however, exploration or development were to occur, the following is a description of some of the impacts which may occur that could affect the Tyonek area: 0 Temporary disturbance to moose, black bear, and other wildlife species in the sale area. However, since there are few large mammals in the sale arear any displacement would have a negligible effect on regional populations; 0 Since the Mount Spurr area is some distance from Tyonek, subsistence activities should not be affected. However, j-t settlement were to occur in the lease area, these residents' hunting activities would increase competition for fish and wildlife; o Increased temporary construction employmenty with very few permanent jobs after the construction phase is complete; 0 A few new jobs for Tyonek residents. The state includes the following stipulations in its lease agreement to mitigate adverse impacts: 0 All activities and structures must be designed to maintain normal water flow or drainage patterns and to allow free movement and safe passage of fish and mammals. 0 No restrictions of public access. o A proposed environmental training program for all personnel involved in exploration or development activities. o Encouragement to hire Alaska residents to the extent that they are available and qualified to perform work done in Alaska in connection with this lease. 0 No solid waste disposal into marine watersr rivers, streams, natural lakes and wetlands. 26 o No disposal of produced water to freshwater bodies. 0 No discharge of drilling muds and cuttings to lakes, streamsr rivers, and wetlands. - o Exploration facilities, with the exception of drill pads, will be temporary and must not be constructed of gravel. o Gravel mining sites required for development activities are to be restricted to the minimum number of sites needed to develop the field efficiently and with minimal envirorimental damage. 0 All garbage and refuse is to be incinerated. o Lessee shall minimize noise during exploration, development, and production activities. Information about geothermal power in the Tyonek area may be obtained from: Carol Wilson Division of Minerals & Energy Development Department of Natural Resources 555 Cordova Street Anchorage, Alaska 99501 Phone 276-2653 27 UPDATE OF COMMUNITY FACILITY AND SERVICE NEEDS The original Study included a community infrastructure report. This entailed a detailed look at the community facilities and services in Tyonek. For each facility and service, a description was given of: o its present function; 0 community attitudes regarding current service levels; 0 planning/engineer capacity calculations; o facility capacity; and o if needed, necessary expansions. As a follow-up to this report, we describe any changes which have or may occur with respect to each of the facilities and services. Tvonek Clinic There are still no plans to expand the clinic. The existing facilities adequately meets the needs of the community. The only new addition to the facility's operation is a state appropriation in 1982 of $45,OOOF for -a new ambulance. Fire Station/Heavy Eguipment Shor) There are no plans to expand the fire station/heavy equipment shop. The facility adequately meets the needs of the community. The community has purchased some fire hoses and other related equipment. Additionally,, Tyonek has purchased a fire truck in 1982 through a rural development assistance (RDA) grant. Police Protection Tyonek has reorganized its police force. It now has one Village Public Safety Officer (VPSO) and two village security officers. United States Post Office Tyonek has approached Senator Stevens' office for a grant to con@`Jtruct a post office. It is hopeful that construction for the new facility may commence in summer, 1985. The location has not been chosen for the project. Until the building is completedr postal service will continue to be conducted out of the existing facility. 28 Chief Chickalusion Community Center The existing facility is used as the community center. However, the community did receive in 1982 a legislative appropriation of $140,000 to construct a new center. Local residents will be employed during the construction phase of the new center. Tvonek Guest Home/Day Care Center The existing facility adequately meets the needs of the community. Presently, the facility also serves as office space for the Indian Child Welfare Act (ICKA) counselor and the alcohol/drug abuse counselor. Both offices, however, will move into the new community center in 1984. Air Transportation Facilities There has been no significant change in the air transportation facilities, nor are there any anticipated in the immediate future. Local Roads No new roads have been constructed in the last two years. The community has, however, requested funding from the BIA road program. The purpose of the assistance is to prevent further erosion of the top layer of certain roads. This has frequently caused pipes to be exposed to colder temperatures and therefore results in occasional freezing. Sanitary Landfill/Solid Waste Disposal The only change in this facility is the partial construction of.a fence around the land. Sewage Disposal There have been no changes to nor any significant problems with the system. Community Water System There have not been any significant changes or problems with the existing community water system. Electric Public Utility There have not been any significant changes or problems with the existing electric public utility. 29 Elementary--and Hicrh School The existing facility is adequate for the education demands of the community. The construction of a swimming pool was included in the Kenai Peninsula Borough School District 1982 long-range plan. However, the school district no longer includes the project in its plans. The borough may construct a cold storage facility and possibly rennovate the school's kitchen facilities in the summer of 1984. Recreational-Sites The community has upgraded its outdoor recreational sites in the last two years. Additionally, it maintains and grooms winter slide areas for local children. Multi-Purpose Center The community has been awarded a $436,000 H.U.D. Community Development Block Grant to construct a multi-purpose center. The center is to contain space for elders' activities, community recreation, emergency medical trainingr and other activities. Tyonek is presently asking for architectural drawings. A construction date is not set. 30 CAPITAL IMPROVEMENT PROGRAM This section describes a suggested capital improvement program for the IRA Council. The bases for this proposed capital improvement program are: 0 discussion with the IRA Council and community members; o interviews with Kenai Peninsula Borough and state and federal personnel; o our experience and professional judgment of Tyonek from previous contacts and research. Suggested-Capital Improvements (1) Proiect: multi-purpose center Cost: $436FOOO Funding Source: Indian Tribes & Alaska Native Villages Community Development Block Grant (already funded) Construction Date: Possibly summer, 1984 (2) Project: completion of fencing around sanitary landfill/ solid waste disposals site Cost: $3r000 - $5,000 Funding Sourcgs: Greg McGee Municipal Grants Division of Facilities Construction & operation Department of Environmental Conservation 437 "E" Street, Suite 200 Anchorage, Alaska 99501 (This grant must be obtained through the Kenai Peninsula Borough, Skip Bombard, 262-4441) Gene Kane Rural Development Assistance Program Municipal & Regional Assistance Division De artment of Community & Regional Affairs 943 East 36th Anchorage, Alaska 99508 Construction Date: Summer, 1984/1985 31 (3) Project: new community center Cost: $140,000 Funding Source: legislative appropriation (already funded) Construction-Date: Summer, 1984 (4) Proiect: construction and upgrade of roads Cost: undetermined Fundina Source: DOT/PF Programming and Planning Local Trails & Roads Program 4111 Aviation Avenue Anchorage, Alaska 99503 (Note: DOT/PF has designated this project as a low priority) Construction Date: undetermined (5) Proiect: bulk fuel storage facility Cost: $100,000 Fundina Source: Gene Kane Bulk Fuel Storage Facility Municipal & Regional Assistance Division Department of Community & Regional Affairs 949 East 36th, Suite 400 Anchorage,, Alaska 99508 Construction Date: Possibly summer, 1984/1985 (6) Project: new post office building Cost: undetermined Funding Source: Robert Opinsky MSC Manager U.S. Post Office Anchorage, Alaska Construction Date: possibly 1985 32 (7) Proiect: court building/jail Cost: $100,000 $120,000 Funding Source: state legislative appropriation Dave Winter Community Facilities Loans Farmers Home Administration Department of Agriculture P.O. Box 819 Palmer, Alaska 99645 Gene Kane Rural Development Assistance Program Municipal & Regional Assistance Division De artment of Community & Regional Affairs 943 East 36th, Suite 400 Anchorage, Alaska 99508 Construction Date: possibly 1985 33 TYONEK SUBSISTENCE STUDIES The Department of Fish and Game, Division of Subsistence,, is presently conducting the Tvonek Comprehensive Resource Use Study. The project commenced in 1980 and is expected to be concluded in 1984. The study entails a series of indepth reports of various aspects of subsistence in Tyonek. The following is a list of those portions of the study completed to date and a synopsis of their key findings: o Tyonek-Moose Utilization, 1981, Technical Report #26. - the survey conducted found that in the 1981 season, 40 Tyonek hunters expended 437 man-days to harvest 15 moose; - 13 of the 15 moose were shared among more than one household; - 90-100% of Tyonek households received some moose meat during the fall of 1981; - the 15 moose harvested did nD_t adequately meet the village needs; - Tyonek hunters faced increasing competition from employees of Kodiak Lumber Mill and outside hunters for the same moose. (Note: The mill has since closed down since this study and all employees are no longer living in the area.]; - Tyonek hunters prefer an open season in November or December. It is assumed that this may result in a reduction in competitors, more efficient means of harvesting moose, and the preservation of quality meat. 0 The Utilization of King Salmon and the Annual Round of Resource Uses in Tvonek, Alaska,-Technical-Pror)osal #27. - king salmon is an important historical, cultural, social, and nutritional factor to the people of Tyonek; - fish camps and smokehouses play a vital part in various aspects of subsistence activities in Tyonek; - the types of resouces the villagers use for subsistence include: Fish: king salmon, red salmon, pink salmon, silver 34 salmonr Chum salmonr dolly varden, rain bow troutr eulachonr herring, whitefishr and tamcod- ClaMs: razorr butter, and redneck. Big-Game: moose,, black bear, and brown bear. Waterfowl: ducks and geese. Small Game-and Birds: porcupine, spruce grouser ptarmigan, and snowshoe hare. Furbearers: beaver, mink, marten, fox, coyote, and otter. Plants: blueberries, cranberries, and salmonberries. Other: coal and wood. village residents with specialized skills, equipmentr time, or money provide larger quantities of harvest resources. 0 Tyonek King Salmon Subsistence Fishery: 1980 Activities Report, Technical Paper #33. - Tyonek residents harvested and prepared king salmon in a customary and traditional fashion for personal use and sharing with others; - experienced village fishermen passed along knowledge about subsistence use of king salmon to other family and village members; - most residents felt they received enough fish to meet their household needs. o Subsistence Shellfish Use-in Three Cook Inlet Villages, 1981: A Preliminary Report, Technical Paper #34. - Tyonek residents make one or two trips annually by boat to Jack Slough, Harriet Point, Polly Creek, and Cresent River to obtain clams; - The tril's usually occur in April or early May and last for one or two days; - species of shellfish harvested by residents include razor clams, butter clamsr and cockles; - it was estimated that the residents took 2,800-3,300 unshucked razor clams each year. 35 0 Report on the Survey Conducted in Tvonek 1980,-Technical Paper #35. - of the 40 households surveyed, 28% had no member employed; - 70% of the households earned less than $10,000 in gross annual income; - 65% of households had fished commercially at least one year; - 40% of households possessed a limited entry permit; - the average catch of.Tyonek fishermen ranged from 1,000-2,000 salmon. In terms of cash, this would equal about $6-$12,000; - most residents have lived in the community most all of their lives. o The Use of Mo ose and Other Wild Resources in the Tvonek and Upper Yentna Areas: A Backaround Reiporte-Technical Paper Vi. this report-is a compilation of background data used in the various studies in and around Tyonek and the Yentna areas. Additionally, the Department of Fish and Game intends to write one more report on pertinent issues not covered in the first six reports. This report is due to be completed in early April, 1984. 36 NOAA COASTAL SERVICES CTR LIBRARY I . I 1 3 6668 14110916 7 @ I I I I I I I I i i I I I I I I I 11