Denali-area business leaders see a bright future for region
by Kris Capps / For the News-Miner
Feb 19, 2011 | 5502 views | 7 7 comments | 6 6 recommendations | email to a friend | print
HEALY — This looks like a good year for the Denali Borough.

That is the message 62 people heard last week at a special “economic forecast” forum held by the Denali Chamber of Commerce.

A busload of people from the Fairbanks Chamber’s Urban and Rural Affairs Committee also attended the meeting at 49th State Brewing Company in Healy.

“We all have a vested interest in rural Alaska,” said Heather Heineken, north region director of the Alaska Small Business Development Center.

Community leaders addressed the group. Their outlooks were positive.

Here’s a brief look at their perspectives:

• Keith Walters, vice president of budgeting and planning, Usibelli Coal Mine.

“There is a vast amount of energy needed in the world today,” Walters said. “And using coal is the best way to go.”

Usibelli Coal Mine produces about 2 million tons of coal annually. Half of that is sold in Alaska and the rest to Chile and Korea.

“Coal resources in Alaska are 1,000 times the gas/oil resources in Alaska,” he said.

The mine employs 120 people and is involved and supportive of local community activities.

“In 2010, we hired 12 new employees,” Walters said. “Operators mostly and one environmental engineer. We are looking to hire another seven people.”

The mine is looking to move into a new area called Jumbo Dome mine.

Usibelli developed the Tri-Valley Subdivision and as the company adds employees, it may expand that subdivision.

Usibelli has been mining coal for 67 years and plans on mining for “another 67 years if we can,” Walters said.

The biggest thing that could help Healy, Walters said, is reopening the Healy Coal Plant.

• Torrence Saxe, 213th Space Warning Squadron Commander, Clear Air Force Base

This small base, just a couple miles off the Parks Highway, provides missile warning and space surveillance for the U.S.

The installation celebrates its 50th anniversary this year and is expected to bring in $300 million worth of projects in the next four to six years.

The base’s power plant is capable of producing 22.5 megawatts of power, of which the base uses only 4.2 or

5 megawatts. In an effort to make use of that power, Air Force officials are determining whether to lease or privatize the plant, or connect it to the grid.

Projects include money to shield radar equipment from high-altitude electromagnetic pulses that can be generated in a nuclear blast and to provide standalone power for the radar.

A $224 million missile defense project will connect Clear more closely with Fort Greely, in the event of a missile launch against the U.S.

“We would be the spotter, they would be the sniper,” Saxe said.

In his continuing effort to connect with the local community, Saxe invited local youth groups to use facilities at Clear — including the bowling alley, the weight room and gymnasium

• Brian Newton, president/CEO Golden Valley Electric Association

Electric consumption is dropping

2 percent per year because of conservation efforts, but GVEA is still seeking other ways to “kick our oil habit,” Newton said.

GVEA is considering some alternative energy options, including trucking in liquid natural gas from the North Slope and getting the Healy Coal Plant online.

Renewable energy also is at the top of the list, and GVEA is examining three different wind projects: Eva Creek by Ferry, a wind project in Delta Junction and the CIRI Fire Island wind project south of Anchorage.

“We will have wind power in our system in about two years,” he said.

Longterm, GVEA supports the Susitna hydroelectric project.

“We need this desperately, but it is a long way off,” Newton said. “Fifteen

to 20 years. Until then, we certainly need a bridging solution.”

“Hydro and coal are our base load,” he said. “We will never turn those off. The liquid natural gas will simply displace the high-priced oil we are burning.”

Of the 1 million tons of coal sold in Alaska every year by Usibelli, GVEA buys 200,000 tons for the Aurora plant in Fairbanks and another 200,000 tons for the plant in Healy.

• Mayor Dave Talerico, Denali Borough

The Denali Borough is a place that relies more on volunteers than on government, Talerico said.

Volunteers handle so many programs in the borough that the office has been able to focus on emergency services, develop a matching grant program and spearhead small capital projects.

Its two legal responsibilities remain education and solid waste. Typically, the borough funds the school district to what is legally allowed.

“The biggest asset any community has is its young people,” he said.

The borough appears to be in good shape financially, with a budget reserve and a permanent fund account.

Talerico encouraged folks to invest in the borough by doing business here.

“We have no property tax, no sales tax, we do have an overnight accommodations tax — so we encourage you to come down, build lots of rooms,” he said, tongue-in-cheek.

The borough will continue its derelict vehicle program this spring and hopes to add to its collection of 50 derelict vehicles. GVEA and Usibelli support the program as well.

• Scott Reisland, Alaska Tourism Industry representative for Interior Alaska Region

Reisland, of Denali Grizzly Bear Cabins, could not attend. He sent information to share from the Alaska Tourism Industry Association about the upcoming tourism season.

Tourism is expected to be up about 5 percent (77,000 people), primarily independent and international visitors.

Disney and Oceana are two new cruise ships coming to Alaska this year (Oceana comes once every two years). Crystal also is returning to Alaska. In 2011, 885,000 cruise passengers are expected, compared to 878,000 in 2010. Other cruise ships are changing schedules to arrive later and leave earlier, so the net increase is minimal, he said.

Condor flights are down from 70 in 2010 to 65 in 2011, plus 18 flights to the Yukon. Edelweiss, which is a new carrier to Alaska, plans 16 flights in 2011.

Although flights are fewer, Condor passenger numbers increased by 27 percent.

The Alaska Tourism Industry continues to seek a sustainable funding plan, and Reisland encouraged a grassroots campaign by local business owners.

• Bonnie Westlund, assistant manager Denali Princess Resort

“This year, our bookings are up,” Westlund said. “The economy is turning around and people are traveling.”

“Cruise ship bookings are up. We are in the Interior. No coastlines here, but they definitely impact our economy in the Denali area.”

Princess has 17 ships traveling worldwide and each ship holds 3,600 passengers. Two new ships are in the works — one in 2013 and another in 2014.

The Denali Princess Resort is open May 19 through Sept. 21 and will host the Denali Chamber of Commerce annual banquet this year.

The exterior of the Stampede Lodge is ready to be painted, Westlund said.

• Elwood Lynn, deputy superintendent Denali National Park

Denali National Park has 120 permanent employees and 220 seasonal employees. There are currently 16 vacant positions.

“I need housing,” Lynn said. “We are in competition with everybody else and it’s crunch time — especially with Usibelli growing and that power plant may be coming online. We also have a large number of construction projects and they all will require housing.”

“There are also large highway projects that will require housing,” he said. “I don’t know what we’re going to do if we don’t have housing for these folks.”

Projects at the park include upgrades at the sewage lagoon, the new emergency services building and the kennels road realignment.

Safety improvements on the highway include adding a turn lane at the Riley Creek Bridge and adding a turn lane at the McKinley Village intersection.

Visitation to the Denali website is up 15 percent and reservations increased.

The park has a Facebook page and Twitter account.

“We’ve had to change the way we do business to reach out to new folks,” Lynn said.

Disney entering the Interior has changed some of the offerings, he said.

“We’re making things a little more kid-friendly and working with the Murie Science and Learning Center to come up with outreach programs,” he said.

There are new trails in the Savage Campground area and a new 140-foot, handicapped-accessible suspension bridge across Riley Creek. The revamped Triple Lakes Trail might be available for commercial guiding use, he said.

The park also is putting together a new vehicle management plan to address traffic on the one park road. Public comment will be sought in August.

“I think the future looks pretty good,” Lynn said. “There was a little bit of a downturn, but we’ve come through it pretty well. We’re looking for a good summer.”
Comments
(7)
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ryemil
|
February 23, 2011
So far, not a word has been said about 'Rural Alaska' It sounds like people from the Lower 48 is running this program with the mentality-if they drive on the highway out of Fairbanks or Anch, then they must be in 'rural Alaska'. The 'real rural Alaska is going to be left behind-with the gas & oil prices going up it will be getting harder to do much subsistence, food prices,airplane tickets, frieght, USPS is all going to make it very hard. 'Real Rural Alaska' is going to suffer! Add to it the pollock trawlers & other intercept fisheries wiping out the King, summer & fall salmon. Way to go 'city slickers'-you don't even know where 'rural Alaska' is!
BFE
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February 22, 2011
Apparently it was never mentioned at the meeting that of the options they are considering at the power plant at Clear, is that another option the government is considering is closing the doors completely and not producing power at all. Does no one think this will raise the rates for the rest of the GVEA rate payers?
Dogwatcher
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February 20, 2011
How come we are just now learning about the huge waste at Clear AFB Electric Plant. Jeeze cut the cake and get that cheap .06/kw juice flowing.

Get rid of GVEA and replace it with Wild Blue Yonder rather than the Dunderheads, and that dumbo Healy power plant no one can seem to figure out. Let the boys in blue send me my juice And not for .30/KWh! It is right here 70 miles down the road!

I don't care if it's military of Federal Electric at least it's not BPConocoExxon Alyeska with the rotten pipeline they got all those State incentive to keep up in the 1990s. Oh if you don't give us a tax break we will leave.

And don't give us the whine about free enterprise. All those Interior Utilities have shown is that they are totally 100% expensive cause they have total 100% monopoly. The APUC is corrupt shows no sympathy for the ratepayer either never-

Their attitude at the APUC, GVEA and Usibelli is that were lucky to have electricity at all.
JoeParks
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February 20, 2011
I wonder if the Parks new emergency services are for the dogs ?
Invictus
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February 20, 2011
This is all very welcome news. Looks like the tourist boycott called for by greenies continues to backfire.
Boodrow
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February 20, 2011
Roughly 18 megawatts of power is available from Clear AFS to the GVEA grid. This is cheap almost ready to go power and has been sitting there for years waiting for someone to get off the dime and get it on the grid. Murkowski, Begich, get her done.
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