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Anchorage CEDS Draws Heavily on the Municipalityʼs Anchorage 2020 Plan and Its Housing and Community Development Plan

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Anchorage Comprehensive Economic Development Strategy April 16, 2009 PUBLIC REVIEW DRAFT Matt Claman, Acting Mayor Municipality of Anchorage Mary Jane Michael, Executive Director Municipality of Anchorage Office of Economic & Community Development Bill Popp, President and CEO Anchorage Economic Development Corporation Prepared By Susan R. Fison, Fison & Associates Darrel W. Hess, Project Manager Municipality of Anchorage Office of Economic & Community Development Erin E. Ealum, Business and Economic Development Director Anchorage Economic Development Corporation Funding Provided By Alaska Department of Commerce, Community & Economic Development Alaska Regional Development Organizations Program and Municipality of Anchorage 2 Table of Contents Introduction Background 6 CEDS Development Process 7 Mayorʼs Economic Advisory Panel 7 Office of Economic and Community Development 8 Anchorage Economic Development Corporation 8 Anchorage Overview Anchorage History 10 Geography & Climate 12 Demographics 14 Labor Force, Employment & Unemployment 18 Income & Wage Rates 20 Education 21 Quality of Life 25 Cost of Living 28 Infrastructure Overview 30 Air Transportation 30 Port of Anchorage 32 Alaska Railroad 33 3 Road & Highways 34 Public Transportation 35 Telecommunications 37 Water and Sewer 38 Natural Gas & Electric 38 Solid Waste 39 Major Economic Sectors Oil and Gas Industry 40 Air Cargo & Global Logistics 42 Visitor Industry 44 Health Care 46 Construction 47 Housing Market 49 Retail Trade 52 Military 53 Strengths, Weaknesses, Opportunities & Threats Background 55 Economic Outlook 55 Infrastructure 59 Education and Workforce Development 62 Visitor Development 64 Quality of Life 66 4 Industry Targeting Background Analysis 69 Recommended Target Industries 70 Detailed Industry Targets 72 Five-Year Goals, Objectives & Strategies Economic Development 75 Infrastructure 76 Education & Workforce Development 78 Visitor Industry 80 Quality of Life 82 Bibliography Proposed Projects - Appendix 5 Introduction Background A robust, diversified economy in Anchorage is essential to the well-being and quality of life of our communityʼs residents. Without a healthy, growing economic base, employment opportunities will diminish. Anchorageʼs economic vitality is also essential to the State of Alaska, because Anchorage accounts for more than 40% of the stateʼs population and employment. The current national and global recession increase the importance of strategic economic development planning. The Public Works and Economic Development Act of 1965 requires an approved Comprehensive Economic Development Strategy (CEDS) so that a city can apply for investment assistance under the U.S. Department of Commerceʼs Economic Development Administrationʼs (EDA) Public Works or Economic Adjustment Assistance Programs. The spirit of a CEDS is one of continuous community involvement and cooperation from the private and public sectors in order to understand and confront economic challenges via a feasible, prioritized series of plans and projects that serves as a benchmark for economic and community development. The CEDS also identifies performance measures that will be used to evaluate progress in meeting goals. A CEDS is designed to bring together the public and private sectors to create an economic roadmap to diversify and strengthen the economy for the next five years. The planning process should identify a communityʼs unique advantages and analyze weaknesses of the local market. Most important, it should identify opportunities that could diversify and strengthen the local economy. Integrated economic development planning provides the flexibility to adapt to changing national and global economic conditions. A CEDS should establish goals, objectives, and strategies that provide the foundation to implement an action plan that can be used to set investment priorities for funding sources and attract private investment that creates jobs. 6 CEDS Development Process The development of this Comprehensive Economic Development Strategy was a cooperative effort between the Municipalityʼs Office of Community and Economic Development and the Anchorage Economic Development Corporation. The fundamental purpose of this strategy is to provide direction for public and private actions to stimulate economic development in the Municipality of Anchorage and the region. At a basic level, the goals of the strategy are to create jobs, income and wealth. The strategy also aims to generate municipal revenue to fund facilities and services that will maintain and enhance our quality of life. The Anchorage CEDS draws heavily on the Municipalityʼs Anchorage 2020 Plan and its Housing and Community Development Plan. It also incorporates much of the work done as part of the Vision Anchorage project, a major, year-long effort that was spearheaded by the Anchorage Economic Development Corporation. The CEDS also draws upon more than three dozen other strategic and long-range plans developed by various Municipal departments, state agencies and non- profit community organizations. All of the plans that were used to develop the CEDS have extensive public involvement processes. The Mayorʼs Economic Advisory Panel served as the CEDS Committee for the effort. Mayorʼs Economic Advisory Panel Michelle Brown, President & CEO, United Way of Anchorage Jason Brune, Executive Director, Alaska Resource Development Council Sheri Buretta, Chairman of the Board, Chugach Alaska Corporation Steve Colt, PhD, Interim Director & Associate Professor of Economics, Institute of Social and Economic Research, University of Alaska Anchorage Marilyn Crockett, Executive Director, Alaska Oil & Gas Association Edward Lamb, CEO, Alaska Regional Hospital David Lawer, Senior Vice President, First National Bank of Alaska Jerry Neeser, President, Neeser Construction, Inc. Greg Pearce, Vice President & General Manager, GCI Julie Saupe, President & CEO, Anchorage Convention & Visitors Bureau 7 Office of Economic and Community Development The Municipality of Anchorageʼs Office of Economic and Community Developmentʼs (OECD) mission is promote a strong Anchorage economy through progressive, sustainable activities in the areas of land use, community development, natural resources, and public spaces. This is achieved through supporting businesses, the tourism industry, strong neighborhoods, and recreation and cultural experiences and opportunities. OECD also fosters strong public/private partnerships. The Office of Economic and Community Development oversees six city agencies including: • the Port of Anchorage • Anchorage Libraries • Parks and Recreation • Planning & Zoning • Department of Neighborhoods • Heritage Land Bank OECD is the Municipalityʼs liaison to the Anchorage Community Development Authority and leads all major public development projects and oversees management of public facilities contracts, including those for the Performing Arts Center, the Sullivan Arena, the Egan Center, and the new Denaʼina Civic and Convention Center. Anchorage Economic Development Corporation The Anchorage Economic Development Corporation is a private, non-profit (IRS code 501(c)(6)), which was established in 1987. It exists to encourage growth and diversity in the Anchorage economy. The AEDC is charged with being a catalyst for "diversified economic development." The corporation takes a holistic view of this charge, given that Anchorageʼs economy is tremendously affected by business conditions throughout all of Alaska. AEDC actively pursues attracting new business opportunities for the region, but it also supports local business start-ups and expansion. Vision Anchorage is a world-class city in which to do business. Mission Statement Grow and diversify the Anchorage economy. 8 Anchorage Economic Development Corporation Board of Directors 2009 Bill OʼLeary Vice President of Finance & CFO, Alaska Railroad Bob Lacher VP Business Development Energy & Chemicals, CH2M HILL Bruce Bustamente Vice President of Community and Public Affairs, Princess Tours Bruce Lamoureux Hospital Administrator, Providence Alaska Medical Center Chris Brown Chief Operating Officer, AT & T Alascom Chris Stephens Associate Broker, Bond, Stephens & Johnson, Inc. Connie Carter Managing Director for Alaska Operations, FedEx Express Craig Haymes Alaska Production Manager, ExxonMobil Corporation David Hamilton Sr. VP Business & Commercial Lending, AK USA Federal Credit Union Dennis Mitchell, Chair Regional Manager - Alaska, Lynden International Ed Herndon, President, Chugach Alaska Services, Inc., Chugach Alaska Corporation Eric Van Andel CFO, Northern Air Cargo Greg Kessler Director of the Alaska Commercial Group, Totem Ocean Trailer Express Greg Pearce VP & GM, Commercial Services, GCI Jeffrey Davis President, Premera Blue Cross Blue Shield of Alaska John Palmatier Executive Secretary/Treasurer, Alaska Regional Council of Carpenters Joseph Everhart Sr. VP of Alaska Commercial Banking, Wells Fargo Bank N.A. Lon Wilson, Vice-chair President, The Wilson Agency, LLC Marla Wellington Manager of Sales, WA, ID, OR & AK, Continental Airlines Michael Prozeralik President, kpb architects Pat Walsh President & CEO, Walsh Sheppard Peter Grunwaldt President, Premier Alaska Tours Sandra Halliwill BPXA E&P Backbone Program Coordinator, BP Alaska Scott Pruitt VP, Finance & Administration, ConocoPhillips Sheldon Fisher Sr. VP of Product, Sales & Marketing, ACS Sophie Minich Chief Operating Officer, CIRI Stephanie Holthaus President, Alta Air Logistics Stewart Osgood President, DOWL Engineers Suzanne Cherot, Secretary/Treasurer
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