WELCOME! 2008 WIN- PRSRT STD 2nd Quarter, 2009 NER TO OUR NEW INVESTORS: US Postage Excellence PAID in Economic Housing Authority Anchorage, AK Development Permit #882 Specialty Products, Inc. AEDCconnections Award RENEWING INVESTORS:  e Newsletter of Anchorage Economic 900 West Fifth Avenue, Suite 300 Communications Systems Development Anchorage, AK 99501 Corporation Alaska Interstate Construction, LLC (907) 258-3700 www.aedcweb.com Alaska Railroad Corporation Diamond Investor Spotlight Alyeska Resort WHAT’S INSIDE Brown Jug, Inc.

Chevron Alaska page 1 Commodity Forwarders, Inc. Solid Waste Services: Solid Waste Services ConocoPhillips Alaska, Inc. Forum Identifi es Recyclable Eklutna, Inc. Business Developments Local Recycling Industry Keeps Resources in the Loop

FedEx Express page 2  e Municipality of Anchorage’s Solid Waste Services (SWS) is working with the local Harman’s Repair Station recycling industry to identify and overcome barriers to manufacturing products from locally Hot Wire Electric, Inc. President’s Letter recovered feedstocks. SWS recently held a Recycling Business Development Forum with AEDC STAFF assistance from AEDC.  e goal of the forum was to bring together potential stakeholders Hotel Captain Cook Study Reports Industrial Economic Snapshot involved in collecting, processing and manufacturing local recycled products as well as in Horizon Lines, LLC Bill Popp President & CEO page 3 creating and maintaining markets for these products. Hughes, Pfi ff ner, Gorski, Land in Short Supply Seedorf & Odsen ExxonMobil A strong local recycling/remanufacturing industry can provide 10–100 times the number of In December 2008 the Anchorage Eco- • Th e region can garner a stronger multi- Erin Ealum Kiewit Construction Company Business & Economic Mobilizes Rig jobs than landfi lling for the same amount of waste, and it can reduce our reliance on goods nomic Development Corporation and plier eff ect from major resource projects Development Director KPMG Municipality of Anchorage commenced and reduce the “bust” eff ect by taking shipped in from out of state. page 4 Linford of Alaska, Inc. a study to determine Anchorage’s need extra steps to accommodate and protect Ryan Makinster Four categories of materials were discussed at the forum: newspaper, glass, organics and MSI Communications for industrially zoned lands in the next labor intensive, high-value industrial uses Communications Expansion Brings 20 years. associated with metals fabrication, value- Director New Era for Museum construction & demolition (C&D) debris.  ese are the primary materials that are currently Marsh USA added operations. used or could be reused locally. Other materials, including plastic containers, metals, paper, Conducted by the land economics McDowell Group, Inc. Amy Goodwin page 5 and electronics, are collected and shipped to markets outside of Alaska. consulting fi rm Economic & Planning • Vacant land located in the Anchorage Logistics Coordinator Pacifi c Tower Properties, Inc Systems, Inc. (EPS), the study includes Bowl is insuffi cient to meet regional New Stores Open at Forum participants identifi ed the growing incentive for LEED (Leadership in Energy and Pfeff er Development, LLC an in-depth examination as to whether industrial demand through 2030, even Tikahtnu Commons Allison M. M. Van Eck Environmental Design) certifi ed projects. Certifi cation of green building projects requires use the amount of land designated for assuming moderate growth in employ- Offi ce Manager Re/Max Properties, Inc. of recycled building materials and provides incentive to divert demolition and waste materials industrial use is adequate to accommo- ment. page 6 Rise Alaska, LLC date estimated levels of industrial activity to local recyclers and manufacturers. • If a higher employment growth rate Louis McGinty Totem Ocean over the next 20 years. Released in late Executive Assistant Anchorage Ranked Trailer Express, Inc. April, the fi nal report includes a set of occurs as a result of fl uctuations in oil Top Growth City SWS plans to continue to facilitate the ongoing dialogue within the recycling and manufac- prices, higher spending on infrastructure UAA, SBDC recommendations intended to inform turing communities to help build a strong recycling industry in Anchorage.  e next industry ongoing consideration of land use policy. and mining projects in Alaska, or some page 7 other force, the demand for industrial meeting, hosted by Solid Waste Services, will be held on Tuesday, June 2, from noon to 2:00 Based on the supply and demand condi- land is likely to outstrip the supply of FedEx Expands Local Service p.m. at the Municipal Permit Center, 4700 Elmore Road in the Training Room. Please RSVP tions described in the report EPS recom- vacant industrial land, necessitating both to [email protected]. mends a comprehensive and coordinated the redevelopment of industrial parcels AEDC Receives Award approach to improve the industrial land and the conversion of some publicly supply in Anchorage. owned lands to industrial uses. page 8 Think twice before throwing newspaper in the trash. Not only is it A summary of key fi ndings includes: • Much of the current industrially zoned Study Reports Land recyclable, it is recyclable locally. Thermo-Kool of Alaska has been in Short Supply land in the Municipality of Anchorage in business for more than 30 years and produces blow-in cellulose • A strong industrial sector is vital to is constrained by poor soil conditions or insulation, hydro-seed and stable bedding. local economic health by providing parcel size and diffi cult to develop in an quality jobs, municipal revenue and economically feasible manner. Newspaper is not the only resource from the waste stream that supporting other important local indus- AEDC is a private nonpro t corporation (IRS code 501(c)(6)), can be used locally for product feedstock; organics (e.g., yard waste, tries. Anchorage will continue to have a • Redevelopment of underutilized land operating since 1987. It exists to encourage growth and diversity in food waste, horse manure), glass and construction & demolition resource and logistics-driven economy in plays a critical role in accommodating the Anchorage economy, promote industrial future demand in the Anchor- a favorable business climate and waste all have existing and/or potential local end products. the foreseeable future; it is necessary to improve the standard of living of age Bowl. Anchorage residents. Funding protect land to facilitate industrial devel- sources for the corporation are municipal and state grants, con- opment supporting these key industries. tracts, and private contributions. Download the full report at For permission to reproduce any www.AEDCweb.com. part of this newsletter, please call 8 (907) 258-3700. 1 ECONOMIC SNAPSHOT BOARD OF DIRECTORS

TSAIA Cargo Transit EX-OFFICIO MEMBERS AEDC (thousand pounds), 4th Quarter LEGISLATORS

1,325,478 1,176,367 Fred Dyson 822,635 Senator, Alaska State Legislature

Hollis French Senator, 2006 2007 2008 Alaska State Legislature • In the fourth quarter of 2008, 823 million pounds of cargo moved through Ted Stevens Harry Crawford Letter From the Anchorage International Airport, a 30.1 Representative, percent decline from the fourth quarter of 2007, and 37.9 percent below the fourth Alaska State Legislature quarter of 2006. President Craig Johnson Representative, Alaska State Legislature Total Building Permit Values New stores opening soon…Anchorage ranked top (million), 4th Quarter $133.2 MUNICIPALITY growth city…Hundreds of millions of dollars to be spent on $117.0 FedEx Express $85.5 new oil and gas project…International air cargo leader expands services in Alaska. Acting Mayor Matt Claman Municipality of Anchorage Expands Local Service Harriet Drummond Headlines from the days before the current recession? Actually, you’ll read these Assembly Member, stories about new investment and jobs in this edition of AEDC Connections. 2006 2007 2008 Municipality of Anchorage • Total building permit values equaled $85.5 Anchorage’s economy continues to run counter to the national recession with million for the fourth quarter of 2008, a Dan Coff ey decrease of 27.0 percent from the fourth Assembly Member, Alternate continued economic growth. quarter of 2007, and a drop of 35.8 percent Municipality of Anchorage from the same period in 2006. FedEx Express in February unveiled a new program for Alaska customers shipping Lost in the daily national media stories of economic disaster is the simple fact packages to the state capital. Priority overnight packages shipped in FedEx packaging APPOINTED BY THE BOARD that Anchorage continues to show strong jobs growth in 2009. Based on updated Quarterly Employment, 4th Quarter (overnight letters, packs, and courier boxes) from within Alaska are now delivered the statistics from the Alaska Department of Labor, 2008 may have actually ended Chris Anderson 151,100 next day in Juneau. Deputy Director, AIDEA with stronger growth than previously reported. 148,200 149,500 Elisha “Bear” Baker  e new service is made possible through arrangements with local air carriers to pro- Interim Dean, College of Business and Public And, as hard as it may be to believe, preliminary numbers for the fi rst quarter vide expediting services that depart Anchorage at 3:00 a.m. Packages can be picked Policy, UAA 2009 show an average of 2,267 new jobs created in Anchorage compared to the up by couriers in Anchorage as late as 5:00 p.m. or dropped off at the customer service Mike Brady same period in 2008. Growth sectors include retail, professional services, health facility at the Anchorage International Airport location (6050 Rockwell Dr.) as late as Vice President, Ken Brady Construction Co. care, accommodations, ground transportation, and state and local government. 2006 2007 2008 7:00 p.m. and still be delivered the next day.  ere is no additional charge for the new We’ll know more in a couple of months. While we don’t expect this level of Larry Cash • According to Alaska Department of Labor and Juneau overnight expediting service. For information about FedEx Express delivery and President, Workforce Development data, employment in RIM Architects growth to continue throughout 2009, it’s certainly a promising note to start the Anchorage climbed to 151,100 jobs during the pickup service call 1-800-Go-FedEx or log on to www.fedex.com. fourth quarter of 2008, 1,600 jobs (1.1 percent) year. We hope that you’ll join us for an update on the Anchorage economy at the above the fourth quarter of 2007, and 2,900 Carol Comeau jobs above the fourth quarter of 2006. Superintendent, 2009 AEDC Investor Luncheon scheduled for July 29 at the Anchorage Marriott Anchorage School District Downtown. Jim Gorski Anchorage Unemployment Rate Member, (percent), 4th Quarter AEDC Receives Hughes Pfi ff ner Gorski Does all this good jobs news mean that Anchorage is immune from the recession? 5.6 Seedorf & Odsen, LLC Absolutely not. Anchorage has seen signifi cant jobs loss in the oil and gas, 4.6 4.8 Mary Hughes construction and air transportation sectors. Some forms of credit remain tight Heart of Anchorage Award Past Chairman of the Board, and job seekers migrating to Anchorage from the lower 48 and rural Alaska AEDC Christine Klein bumped the unemployment rate up to 7.2%. While Anchorage has more jobs to Micha Sanders Photography  e Anchorage Economic Development Deputy Commissioner of Aviation off er, more people are competing for them. 2006 2007 2008 Corporation recently received a Heart of Anchorage State of Alaska

• The Anchorage unemployment rate for award from the Anchorage Downtown Partnership. Edward Lamb the fourth quarter of 2008 was 5.6 per- CEO & President, For now, the Anchorage economy continues to grow. We still have months of cent, 0.8 percentage points higher than in AEDC was recognized for this achievement during Alaska Regional Hospital the fourth quarter of 2007, and 1 percent- uncertainty ahead of us as we wait to see if the national economic recovery is a age point higher than during the same an awards ceremony on Saturday, March 28 at the time period in 2006. Brian Nerland reality. In the meantime I hope you enjoy these stories of good economic news. ConocoPhillips atrium in . District President, AEDC was honored with the Dena’ina Award, which KeyBank Alaska Population is presented to a team or group for their outstanding Douglas M. North leadership, professional excellence, and contributions President, Bill Popp 284,994 Alaska Pacifi c University 282,722 282,375 to Downtown Anchorage. President and CEO, AEDC Emil Notti Commissioner, State of Alaska, Department of  e Heart of Anchorage Awards celebrate hard work, Community & Economic exemplary service and dedication to excellence by Development 2008 2006 2007 honoring the employees, business owners, organiza- Phil Okeson • According to the Alaska Department of Chairman, Labor and Workforce Development, in 2008 tions and community leaders in downtown–from Anchorage Chamber of Commerce Anchorage’s population grew by 0.9 percent to reach 284,994, approximately 2,600 the janitor to the CEO–who go above and beyond residents above the 2007 level. Tennys Owens Bill Popp receives Heart of Anchorage normal job responsibilities with outstanding or President, Award from Anchorage Downtown unusual service to the visitor, customer and com- Artique, Ltd. Partnership Executive Director Economic data compiled by munity. Read more about the awards and the 2009 Julie Saupe Christopher M. Schutte. President & CEO, winners at www.AnchorageDowntown.org. Anchorage Convention 2 & Visitors Bureau 7 AEDC 2009 BOARD OF DIRECTORS VOTING MEMBERS Anchorage Ranked ExxonMobil Mobilizes Rig for Dennis Mitchell, Chair Vice President, Alaska Region, Lynden International Top Growth City Point  omson Drilling Lon Wilson, Vice Chair President,  e Wilson Agency While headlines across the nation report a weakened economy and rising unemployment, Suzanne Cherot, Secretary/Treasurer Shareholder & Attorney, one survey suggests Anchorage is doing better than most. ExxonMobil Production Company announced in late completed the fi nal installation of camps and support Birch, Horton, Bittner & Cherot April that it has mobilized a drilling rig for the Point facilities at the existing gravel pad to accept the rig. More Chris Brown Chief Operating Offi cer, AT&T A recent Forbes.com story, “Where  e Jobs Are, Spring 2009,” reports that Anchorage has  omson Project. than 250 people will work on these drilling operations, Bruce Bustamante the third-strongest employment outlook in the nation.  e health care industry is one of with an average of over 500 people at year-end 2014, when Vice President of Community and Public Aff airs, Princess Tours its strongest and has added nearly 2,700 local jobs since 2003, employing close to 15,000  e rig, owned by Nabors Alaska, has been upgraded we expect to begin production.” Connie Carter people. Anchorage businesses anticipate 18 percent net employment growth in 2009. Only to drill the high pressure wells at Point  omson. It was Managing Director of Alaska moved from Deadhorse to the drilling site in modules,  e initial phase of the project will process approximately Operations, FedEx Express Yakima, Wash., at 21 percent and Kennewick, Wash., at 19 percent ranked higher. Jeff Davis some weighing more than one million pounds. 200 million cubic feet per day of Point  omson gas in President, Premera Blue Cross order to produce approximately 10,000 barrels per day Blue Shield of Alaska  e Manpower Employment Outlook Survey conducted by Manpower Inc. determined As there are no permanent roads to Point  omson, Fair- of liquid condensate into the trans Alaska pipeline system Mike Devlin that healthcare and retail show continued growth in Anchorage through June 2009. Evergreen Films, Inc. weather E&P Services Inc. and Nanuq/AFC constructed by year end 2014.  e remaining gas will then be recycled Joseph Everhart more than 30 miles of ice road to enable the transport of into the Point  omson reservoir.  e Point  omson Senior VP, Alaska Commercial Manpower Inc. determined the net employment rate by surveying 31,800 public and Banking, Wells Fargo Bank N.A. private employers in 201 metropolitan areas throughout the United States. After asking heavy equipment and materials while protecting the North Unit working interest owners committed $120 million to Sheldon Fisher Slope environment. Most of the ice road follows the shore the drilling and development activities in 2008, with Sr. VP of Product, Sales & Marketing, employers “How do you anticipate total employment at your location to change in the ACS three months to the end of June 2009 compared with line along the Beaufort Sea. additional investments of about $250 million expected Peter Grunwaldt in 2009. President, Premier Alaska Tours the current quarter?” responses were calculated for  e Alaska Department of Natural Resources (DNR) Sandra Halliwill net employment growth, the diff erence between BPXA & E&P Backbone Program authorized the ice-road permits on January 27, allowing In addition to ExxonMobil, the other major Point  om- Coordinator, BP employers who plan to increase and those mobilization of the drilling rig and provided guidance to son owners participating in the current drilling and devel- David Hamilton who plan to decrease. Senior VP, Business & Commercial other regulatory agencies to expedite permitting to allow opment activity include BP Exploration (Alaska) Inc. and Lending, AlaskaUSA Federal Credit Union “ ese results support our Business Con- drilling to begin. ConocoPhillips Alaska Inc. Ed Herndon Vice President of Business Development, fi dence Index,” said Bill Popp, president Chugach Alaska Corporation and CEO of the Anchorage Economic Craig Haymes, Alaska production manager for Exxon- Craig Haymes Mobil, said, “We are moving forward with drilling and Alaska Production Manager, Development Corporation. Popp was ExxonMobil Production Company referring to a new index debuted by the non- development activities at Point  omson, for the mutual Stephanie Holthaus profi t economic development organization at benefi t of Alaskans and the Point  omson Unit working President, Alta Air Logistics interest owners. DNR staff and other local, State and Greg Kessler its January 2009 economic forecast luncheon. Director of Commercial Alaska, Federal agencies have worked tirelessly to process permits Totem Ocean Trailer Express necessary to allow drilling to begin. We are on schedule Bob Lacher “Local businesses are maintaining a positive VP Business Development Energy attitude and more than half expect an increase in to begin production at Point  omson by year end 2014 & Chemicals, CH2M Hill and look forward to working with the State to resolve the Bruce Lamoureux terms of gross sales this year despite the national Hospital Administrator, Providence economic downturn,” Popp explained. “In fact, remaining Point  omson issues to ensure the project Alaska Medical Center national retailers such as Target, Walgreens and schedule is not impacted. Construction crews recently Mark Liland Chief Financial Offi cer, Kohl’s are moving into our market while Northern Air Cargo slowing plans elsewhere across the Sophie Minich Chief Operating Offi cer, CIRI country.” Bill O’Leary Vice President of Finance & CFO, Alaska Railroad According to the Forbes.com Stewart Osgood article, cities in the Pacifi c President, DOWL HKM Northwest and Texas have the John Palmatier Executive Secretary/Treasurer, best employment outlook for Alaska Regional Council of Carpenters April through June, while cities in the Greg Pearce Southeast have the weakest. VP and General Manager, Commercial Services, GCI Michael Prozeralik Among the worst cities for new jobs this President, kpb architects spring are Cape Coral-Fort Meyers, Fla., Scott Pruitt VP, Finance and Administration, San Juan, Puerto Rico, Port St. Lucie, ConocoPhillips Fla. and Miami-Fort Lauderdale- Chris Stephens President, Pompano Beach, Fla., each of Bond, Stephens & Johnson, Inc. which anticipate a decline of at least Timothy Vig President, USKH, Inc. 14 percent net employment. Pat Walsh President & CEO, Walsh Sheppard Marla Wellington Manager of Sales, WA, ID, OR, AK 6 Continental Airlines 3 AEDC DIAMOND INVESTORS: AEDC Larry Harris/Chris Arend Photography

Kohl’s, Lowe’s open at Anchorage Water & Wastewater Utility Tikahtnu Commons Fruitland Fresh open, other small shops opening soon

BP Exploration CIRI and its partner Browman Development Co. are developing a regional retail and entertainment center on a 95-acre parcel of CIRI land in northeast Anchorage, on the corner of North Muldoon Road and the . Expansion Ushers Chugach Alaska Corporation  e $100-million-plus project is expected to include 12 to 15 major retail stores and a total of 60 to 75 businesses, including small shops, restaurants and other service and entertainment businesses. in New Era for  ese stores include new-to-Alaska chains, such as the 171,000-square-foot Target store built in the fi rst phase of the project. Construction of the center is expected to last fi ve to seven years. Anchorage Museum ConocoPhillips Tikahtnu Commons will be a one-stop shopping destination for the whole family.  e project will distinguish itself through high-quality architecture and construction, including variations in  e $106 million expansion of the Anchorage Museum Beginning spring 2010, additional museum features will building facades and roofl ines, an abundance of color, a pedestrian-friendly design, dispersed parking brings a new era to one of Alaska’s premier visitor attrac- include: and screened and/or hidden service entrances.

tions with the completion of an 80,000-square-foot wing, General Communication, Inc. which opens in May, and renovation of the existing • Smithsonian Arctic Studies Center, housing an exhibi- CIRI’s partner, Browman Development Co., is a Walnut Creek, California-based fi rm that has worked building by early 2010. tion of about 600 rare Alaska Native objects from the on many large retail projects across the U.S. Browman will manage the Tikahtnu Commons project. Smithsonian Institution; With the free grand opening noon to midnight May 30, CIRI acquired the roughly 95-acre parcel in 1991 under the federal surplus property provisions of the visitors to the museum will be able to enjoy a new and • Imaginarium Discovery Center, an interactive science Cook Inlet Land Exchange as part of its ANCSA settlement.

expanded resource center, shop and café.  e café, which discovery center which is relocating to the existing Municipal Light & Power will be operated by  e Marx Bros., features a bold, hip museum building, allowing the museum to off er hands- Lowe’s and Best Buy signed on in 2008 to join Target in anchoring Tikahtnu Commons. Lowe’s interior and outdoor seating on a new patio. on exhibits for visitors of all ages to explore earth, life and signed a purchase and sale agreement on Jan. 9 to build a 140,000-foot store, which opened at the physical sciences.  e center includes the TOTE KidSpace end of March. Tikahtnu Commons is Lowe’s fi fth store in Alaska. Best Buy signed a tenant-executed  e new third-fl oor gallery, large enough to accommodate for ages up to 5, where everything can be touched and building lease for a 30,000-square-foot store in early 2009, and plans to open in the fi rst week of June. popular touring exhibits, will open with the captivating families can explore art, history and science through play; exhibit “Gold” from the American Museum of Natural PetSmart Inc., the world’s largest pet services Municipality of Anchorage History.  is exhibit will dazzle summer visitors with • Th omas Planetarium where visitors journey to the stars. retailer, recently signed a letter of intent to lease more than 300 gold objects, including an astronaut  e planetarium will also host educational, entertaining a 30,000-square-foot pet store combined with helmet, Aztec sacrifi cial fi gure and Susan Sarandon’s fi lms. Alaska’s fi rst pet hotel and spa at Tikahtnu Oscar. Visitors can walk through a gold-plated room, Commons. Construction of the PetSmart store or hop on a scale that reveals their weight in gold.  e expansion is expected to be the fi rst municipality- should begin this summer, with its opening owned building to qualify for silver level certifi cation planned for early 2010. A new Sports Authority Port of Anchorage in Leadership in Energy and Environmental Design store has been under construction, and opened (LEED). in the second week of May. CIRI and Browman are considering adding a hotel to  e environmentally friendly elements of the museum the retail center as well. expansion include a minimal building footprint, locally Lowe’s also opened its doors at Tikahtnu Commons recently. Providence Alaska Medical Center produced and recycled building materials, and bike  e home improvement store held its grand opening on May 7. racks and a staff locker room to encourage alternative transportation.

 e building’s architect is David Chipperfi eld Architects,

London, with Anchorage companies Kumin Associates, Kohl’s Department Store, shown at far Solid Waste Services Inc. as architects of record and Alcan General, Inc. as right, opened at Tikahtnu Commons on general contractor. April 1.  e national retailer is one of many stores and shops that will be opening at the northeast Anchorage retail center  e museum closed March 31 and will host a grand re- throughout 2009 and 2010, including opening May 30. For more information on the Anchorage Sports Authority (second from right) and Ted Stevens Anchorage Museum expansion visit www.anchoragemuseum.org Best Buy (far left).  e Target store (second International Airport from left) opened on Oct. 9, 2008. Craig Chesek /AMNH

4 Walsh • Sheppard 5