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To our new investors: AEDC STAFF 4th Quarter, 2007 Bob Poe The Arts are Big Business Bill Popp Princess Tours in Anchorage President & CEO Scott Balice Strategies, LLC connections Arts & Economic Prosperity III, a national survey from promoters of the arts, Erin Ealum Renewing investors: AEDC shows that nonprofit arts and culture are a thriving industry in Anchorage – one Business & Economic The Newsletter of AK Supply, Inc. that generates $45.16 million in annual economic activity. Development Director Anchorage Economic Alaska Interstate Construction Development Alaska InvestNet According to the survey, this spending–$27.91 million by nonprofit arts and Heather Gould Corporation culture organizations and an additional $17.25 million in event-related spending Communications Alaska National Insurance Co. Director by their audiences—supports 1,168 full-time equivalent jobs, generates $24.24 Alaska Railroad Corporation million in household income to local residents, and delivers $3.84 million in local Alaska Rubber and Supply, Inc. and state government revenue. Not included in the study was spending by individ- Hallie Bissett WHAT’S INSIDE Alaska Telecom, Inc. ual artists and the for-profit arts and culture sector – such as for-profit arts groups, Logistics & International Trade Alaska Considers Increased Oil Taxes Anchorage Council of Bldg artists, photographers, painters, sculptors or the multi-million dollar expansion of Director & Construction Trades Unions the Anchorage Museum of History and Art at the Rasmuson Center. page 1 New rate will be the highest in North America Carr-Gottstein Properties Kari Mahar Chugach Electric Association, Inc. Alaska Considers Platinum Investor Spotlight While the study focused solely on the economic impact of the nonprofit arts, the Investor Relations & Incrreased Oil Taxes Events Coordinator City Electric, Inc. social and community benefits cannot be overlooked. Organizations such as the The key to the future of oil development in Alaska is investment. Investment will enable Coffman Engineers, Inc. Alaska Center for the Performing Arts, Anchorage Museum of page 2 Alaska’s oilfields to keep producing revenue for the state, and create jobs for Alaskans for Cornerstone Construction Co., Inc. History and Art, and all of the various performance Rebecca Shortman decades to come. Without large sustained investment, oil production will go into a steep groups, galleries and individual artists also Executive Assistant CRW Engineering Group, LLC President’s Letter decline, a fact on which the industry, the regulators and economists all agree. enhance the quality Dorsey & Whitney LLP of life and help Economic Snapshot On October 18, the Alaska Legislature will convene in Juneau to consider changing and, F.R. Bell & Associates, Inc. attract new residents, Flowers International LLC quite likely, raising oil taxes. This will be an important decision that will impact the future business and a skilled page 3 for every Alaskan. Fred Meyer Stores, Inc. workforce to Anchorage. Greatland Laser, LLC MOUs Offer Chinese The governor has proposed a new oil tax that would replace the PPT (petroleum profits tax), Business Boost HDR Alaska, Inc. Anchorage is one of 156 approved by the Alaska Legislature in August 2006. Under the proposed tax, the state Holmes Weddle & Barcott PC communities and regions estimated the total government take would reach 68 percent, based on a $60 oil price. that participated in Arts & Immediate-Care, Inc. page 4 Economic Prosperity III, which International Union of Operating Alaska already has the highest government take in North America. The proposed changes Engineers, Local 302 documents the nonprofit arts Anchorage Museum On Target for 2010 Opening would further increase Alaska’s tax rate and make the state less attractive to investment just Jaguar Development Group and culture industry in 116 cities as more investment is needed. JL Properties, Inc. and countries, 35 multi-county regions and five states. Anchorage organizations filled out Ken Brady Construction Co. Inc. page 5 “I think we have to respect the governor’s right to ask the Legislature to re-address the existing surveys in the summer and fall of 2006. Merrill Lynch AEDC is a private nonprofit tax structure (PPT),” said BP President Doug Suttles. “What is important now is that we corporation (IRS code 501(c)(6)), Banking Innovations Help operating since 1987. It exists to have a good and thoughtful debate. This is going to be about Alaska’s future. It’s important Millenium Alaskan Hotel encourage growth and diversity in Foil Fraud Attempts Anchorage the Anchorage economy, promote that we encourage investment in this state and make sure the Alaska tax structure will do that.” a favorable business climate and Movers, Inc. improve the standard of living of Anchorage residents. Funding page 6 N C Machinery Co. sources for the corporation are As context, it is worth bearing in mind that the new PPT tax amounted to a significant tax municipal and state grants, con- increase just last year. The Department ofR evenue estimates that during the first nine months Norcoast Mechanical tracts, and private contributions. UAA Opens New For permission to reproduce any Science Center of the petroleum profits tax, the state collected $805 million more than it Northrim Bank part of this newsletter, please call (907) 258-3700. would have under the previous tax system (April 1 – December 31, 2006). Nye Frontier Toyota Lexus of Alaska page 7 This article sponsored by BP Pegasus Aircraft Maintenance, LLC BuyAlaska Unveils Perkins Coie New Website Porcaro Communications, Inc. Convention Center Potelcom Supply, Inc. Progress Premera Blue Cross Blue Shield of Alaska 900 West Fifth Avenue, Suite 300 Providence Alaska Anchorage, AK 99501 page 8 Medical Center (907) 258-3700 Prudential Jack White The Arts Are Big Business Vista Real Estate www.aedcweb.com RIM Architects Shell Oil Sheraton Anchorage Hotel Ted Stevens Anchorage International Airport Tesoro Alaska Petroleum Company The Wilson Agency, LLC URS Corporation WebWeavers 8 Technology Group 1 ECONOMIC SNAPSHOT Board of Directors

EX-OFFICIO MEMBERS 2nd Quarter Commercial AEDC Construction Permit Valuations Legislators $144,930,205 4.63 $110,398,474 $109,993,367 Letter from the President $11 Billion Target of Harry Crawford Representative, Alaska State Legislature Alaska’s economy continues to grow, with nearly 2000 new jobs created in Anchorage alone Buy Alaska’s New Website during the first half of this year. Solid employment numbers in Anchorage and Alaska for Fred Dyson 2005 2006 2007 The Buy Alaska program will revolutionize the process of promoting local businesses, products and Senator, 2007 show the largest workforce, largest number of people employed and one of the lowest Alaska State Legislature • Commercial construction valuations totaled services when it launches buyalaska.com, a completely new, state-of-the art website, on Alaska Day, unemployment rates in Anchorage and Alaskan history. And a number of projects in our $110.4 million for the 2nd quarter of 2007, a October 18, 2007. decrease of 24 percent from the 2nd quarter downtown core and beyond, some of which you will read about in this issue, will spark even of 2006 and an increase of 0.4 percent from Hollis French more economic development in our vibrant city. the 2nd quarter of 2005. Alaskans spend approximately $11 billion Outside each year (UAA ISER 2007), with an ever- Senator, increasing trend toward on-line shopping by consumers, businesses and government purchasers. The Alaska State Legislature new website, buyalaska.com, will enable any and all Alaska businesses to take advantage of this trend But growing pains are coming, and some would say they are already here. 2nd Quarter Residential Craig Johnson Construction Permit Valuations by making it easy for shoppers to find Alaska businesses on the web. According to UAA ISER, if Representative, Alaska State Legislature $103,411,340 Alaskans shift just 10% of Outside purchases back to Alaska, $1.1 billion revenue will be generated Local business leaders report increasing difficulties filling open jobs with talented and skilled $92,687,275 workers. With several large oil & gas and mining projects in various stages of development and over 4,000 Alaska jobs created. $53,754,285 across Alaska, as well as other development and growth in our broader economy, we are Alaska businesses can set up their free, lifetime, full-page, color listings facing a new dynamic that runs counter to our past experiences. Growing worker shortages by going to buyalaska.com and following the easy instructions.

could have implications for our entire Alaskan economy in the next decade. 2005 2006 2007 Municipality Buy Alaska’s goal is to have 10,000 Alaskan businesses listed on the website by the October 18 • Residential construction valuations totaled launch day. Mayor Alaska is also competing with the rest of America, and even internationally, to attract and $53.8 million for the 2nd quarter of 2007, a decrease of 48 percent from the 2nd quarter Municipality of Anchorage retain these highly sought after workers. Earlier this summer, at the Pacific NorthWest of 2006 and a drop of 42 percent below the same period in 2005. Economic Region (PNWER) conference in Anchorage, provincial government officials from Dan Coffey Alberta noted that they are projecting a 100,000+ worker shortfall in their province over Assembly Member, Anchorage’s Dena’ina Civic & Municipality of Anchorage the next 10 years and similar projections were shared by British Columbia and the states of 2nd Quarter Total Employment

Washington, Idaho and others. 151,335 150,470 147,335 Convention Center Progressing Rapidly But the question should be “how,” not “if,” will we fill these jobs. Appointed by the Board With just a little under a year to go, the $107 stellation,” will cascade through the 100-foot- million, 215,000-square foot Dena’ina Civic & high lobby creating a visual anchor through In the following pages, you’ll read about the University of Alaska Anchorage’s growth, Chris Anderson Convention Center in Anchorage remains on the multi-level facility. The lowest level depicts Deputy Director, but rest assured that UAA is not alone in building our future. With the help of many in Credit & Business Development 2004 2005 2006 schedule for a September 1, 2008 opening. The Alaska’s abundant sea-life through a delicate, our business community, the State of Alaska and local communities over the last 20 years, AIDEA • Total employment in Anchorage increased Center, when combined with the William A. circular inlay of Southcentral’s sea creatures in Anchorage has created a healthy economy to be proud of, and those same people are making by 865 jobs between the 2nd quarter of Mike Brady Egan Civic & Convention Center, will increase the tile floor under the main body of the work. Vice President, sure that our workforce keeps pace through a number of innovative programs. Engaging 2007, an increase of 0.6 percent. Total 2nd quarter 2007 employment was 2.7 percent the city’s civic and convention capacity by 300 The second major work, awarded funding Ken Brady Construction Co. Inc. and training Alaska’s youth and adult workers is a priority in our city. As the efforts contin- above the same period in 2005. An average of 151,335 workers were employed during percent. as part of the Dena’ina Civic & Convention Larry Cash ue, coordination and cooperation at its highest level should be a critical strategy to ensuring the 2nd quarter of 2007, based on Alaska President, Department of Labor and Workforce Devel- Center collection, is by Athabascan Artist James the investment in the future pays off. opment data. The expanded facility, designed by Rim Archi- RIM Architects Grant from Fairbanks, Alaska. Grant’s submis- tects and LMN, is no drab convention center. sion consists of a 30-foot long, multi-media Julie Saupe AEDC is doing just that. There are tremendous opportunities in Anchorage for workers Instead, the designers have created a space that President & CEO, 2nd Quarter TSAIA Transit Cargo mural named “A Dena’ina Day Around Cook Anchorage Convention now and in the future. And, as we continue to market our city as a great place for business, (millions of pounds) works in harmony with the Anchorage scenery & Visitors Bureau Inlet.” Laser-cut and painted images combine the doors should stay wide open, with new people and new ideas coming in to make it even 1,112.4 1,114.4 and unique year-round sun angles. 1,075.1 with aluminum animals and stained glass depic- better. Superintendent, Taking cues from Alaska’s four distinct seasons, tions of traditional Athabascan activities, which Anchorage School District architects designed the quad-level facility to convey to the viewer the richness and beauty Jim Gorski As far as problems go, this is not a bad one to have. Meeting the challenges of a growing 2005 2006 2007 reflect the natural colors of the local area. One of the Dena’ina culture. It will adorn the wall Member, economy is the cost of doing business. I’m confident that we’re all up for a good challenge, Hughes, Bauman, Pfiffner, • In the 2nd quarter of 2007, 1.11 billion level embraces fall landscapes and the changing in the pre-function area outside of the Center’s and positive we’re up for good business. pounds of cargo moved through Ted Gorski & Seedorf, LLC Stevens Anchorage International Airport, tints of the high country. Another level takes main ballroom. a 3.7 percent increase from the 2nd Mary K. Hughes quarter of 2006 and an 0.2 percent visitors into the summer landscape by employ- State Director, increase from the 2nd quarter of 2005. For additional information on meeting space in ing vibrant hues. Reflective materials and cooler Office of U.S. Senator Anchorage, Alaska, explore www.anchorage.net/ tones surround visitors as they move into the meetings, or contact the Anchorage Convention 2nd Quarter TSAIA winter landscape. Ed Lamb Deplaning Passengers & Visitors Bureau Convention Meetings Sales CEO & President, Alaska Regional Hospital 664,196 Two major pieces of art will provide decoration & Service Department at 1-888-257-2381. 646,066 627,793 to the development. Chancellor, The first, byR alph Helmick and Stuart Schecter University of Alaska, Anchorage of Newton, Mass., is a towering 65-foot sculp- Douglas M. North President, ture that will draw the visitor’s eye upward into a Alaska Pacific University 2005 2006 2007 spiraling menagerie of Alaska’s wildlife. Situated Tennys Owens • Ted Stevens Anchorage International in the main lobby, glowing resin birds, indig- Airport traffic included 664,196 deplan- President, ing passengers during the 2nd quarter of enous mammals and graceful sea creatures, Artique, Ltd. 2007, an increase of 2.8 percent from the 2nd quarter of 2006 and an increase of 5.8 seemingly float upward. The sculpture, “Con- Bill Evans Bill Popp percent from the 2nd quarter of 2005. Chair, Anchorage President and CEO, Chamber of Commerce AEDC Mort Plumb Economic data compiled by Airport Director, Ted Stevens Anchorage International Airport

Kathy Porterfield 2 Managing Partner, 7 AEDC AEDC PLATINUM INVESTORS: 2007 Board of Directors UAA Responds to Anchorage’s Needs MOUs Offer Beijing Business Voting Members Anchorage Water & Wastewater Utility Sophie Minich, Chair Boost for Anchorage "&%$1-"5*/6.*/7&45034 Chief Operating Officer, One year after breaking ground, UAA educates more than 60 per- CIRI the Integrated Science Facility at Universi- cent of the students in the state’s univer- Brian Nerland, Vice Chair ty of Alaska Anchorage is on track to open sity system. In Fall 2007, UAA will serve Officials from the Anchorage Economic Devel- The second MOU is an agreement between District President, opment Corporation (AEDC) hosted a delega- the Port of Anchorage and the Beijing Liqiao KeyBank National"&%$" Association&%$in 2009 and officials say they can’t wait. nearly 20,000 students with nearly 158 dif- #0"3%0'%*3&$5034 Enrollment in UAA’s science programs ferent certificate and degree programs from tion from Beijing, China, on Tuesday, August Bonded Logistics United Development Co., Dennis Mitchell, Secretary/Treasurer705*/(.&.#&34 21st, to sign two important Memoranda of Ltd. The agreement partners the two free-trade- Regional Manager–Alaska, is up more than 27 percent over5SBEF%FMFHBUJPOGSPN the past nursing and engineering to aviation and /FX"ODIPSBHF3FUBJM$FOUFS BP Exploration Lynden International Understanding that will lay the groundwork for zone license-holders as mutually benefiting eco- "ODIPSBHF8BUFS"ODIPSBHF8BUFS 4PQIJF.JOJDI $IBJS decade and the new building will help the mining. In Spring 2007, 75.6% of gradu- 8BTUFXBUFS6UJMJUZ Bill Behnke 4S7JDF1SFTJEFOUPG#VTJOFTT  strengthening economic ties and trade relation- nomic partners that will continue to investigate Sr. VP Business Development %FWFMPQNFOU $*3* university prepare its2JOHEBP $IJOB7JTJUT"ODIPSBHF students to be an ates had earned degrees in high-demand $POTUSVDUJPOUP4UBSU & Strategic Initiatives, integral part of the workforce of tomorrow. job areas, including education, engineer- ships between the two cities. investment and trade opportunities together. GCI #SJBO/FSMBOE 7JDF$IBJS %JTUSJDU1SFTJEFOU  AEDC signed a similar agreement with Beijing ing, nursing and allied health. “Alaska’s trade with China has grown exponen- Connie Carter ,FZ#BOL/BUJPOBM"TTPDJBUJPO The science facility is only the most recent $*3*BOE#SPXNBO%FWFMPQNFOU$P Liqiaoi8FSFEFMJHIUFEUIBU$*3*BOE#SPXNBO Bonded Logistics United Development Managing Director for Alaska "HSPVQPGmWFCVTJOFTTMFBEFSTGSPN2JOHEBP $IJOBWJTJUFE"ODIPSBHF.BSDI %FOOJT.JUDIFMM 4FDSFUBSZ5SFBTVSFS tially over the past few years and these agree- General Communication, Inc. Operations, FedEx addition to UAA. A new building for Priorities in the future include serving the TUBSUFETJUFXPSLJO"QSJMPOBOFX in January.BSFXPSLJOHUPHFUIFSPOUIJTQSPKFDUwTBJE 3FHJPOBM.BOBHFSo"MBTLB  BOEUPFYQMPSFCVTJOFTTPQQPSUVOJUJFTXJUI"MBTLBDPNQBOJFT"&%$BSSBOHFE ments will bring new opportunities for busi- (FOFSBM$PNNVOJDBUJPO *OD -ZOEFO*OUFSOBUJPOBM Alaska Native Science and Engineering growing demand from students and local SFHJPOBMSFUBJMDFOUFSUIBUXJMMEFMJHIU"O +POFTi0VSDPNQBOJFTXPSLUPHFUIFS Suzanne Cherot NFFUJOHTBOEUPVSTXJUIMPDBMCVTJOFTTFTUIBUNBUDIFEUIFHSPVQTNBJOJOUFSFTUTBOE nesses in both cities to find new customer bases Additionally, the two sides agreed to pro- Managing Partner, #JMM#FIOLF students opened in October 2006. Shaped industry for expanded nursing and engi- DIPSBHFBSFBTIPQQFSTBOEDSFBUF XIFO XFMMBOE CFDBVTFXFCPUIJOUFOEUPIPME Birch, Horton, Bittner & Cherot4S71#VTJOFTT%FWFMPQNFOU BDDPNQBOJFEUIFEFMFHBUJPO and transfer products across the Pacific,” said mote tourism opportunities between China 4USBUFHJD*OJUJBUJWFT  like a canoe, the building provides ANSEP neering programs, both of which are seeing DPNQMFUFE BOFTUJNBUFEUP  POUPPVSPXOFSTIJQJOUFSFTUTMPOHBGUFS Jeffrey Davis ($*  Bill Popp, president and CEO of AEDC. “This and Alaska including direct passenger flights VP/General Manager, students a beautiful and culturally-appro- exponential growth. OFXMPDBMKPCT UIFQSPKFDUIBTSFBDIFETUBCJMJ[BUJPO  2JOHEBPJTIPNFUPUIFDPVOUSZTUIJSEMBSHFTU1PSU 5TJOHUBP#FFS BOEJTPOFPG is a signal for global businesses to take advantage between the Ted Stevens Anchorage Interna- **NNFEJBUF$BSF *ODImmediate-Care,NNFEJBUF$BSF * Inc.OD Premera Blue Cross 4V[BOOF$IFSPU priate place to learn, study and connect XFTIBSFTJNJMBSMPOHUFSNQSPmUBCJMJUZ Blue Shield of Alaska .BOBHJOH1BSUOFS  TFWFOMPDBUJPOTDIPTFOGPSUIF0MZNQJDTɨFHSPVQWJTJUJOH"ODIPSBHFXBTSince 2000, UAA has also expanded its of Anchorage’s strategic location and strong ties tional Airport (ANC) and the Beijing Capitol #JSDI )PSUPO #JUUOFS$IFSPU with peers. ɨFNJMMJPOQMVTQSPKFDUJTCFJOH HPBMTw Joseph Everhart QBSUJDVMBSMZJOUFSFTUFEJOUIFNBOVGBDUVSJOHPGDPĊFFBOEUFBBTXFMMBTIJHIUFDIcareer and technical education programs with Asia.” International Airport (PEK aka BJS). Senior VP of Alaska Commercial Banking,+FĊSFZ%BWJT DPOTUSVDUFEPO$*3*MBOEJOOPSUIFBTU 71(FOFSBM.BOBHFS  Chancellor NBOVGBDUVSJOHPGCVJMEJOHNBUFSJBMTFran Ulmer said that UAA by more than 25 percent. New programs Wells Fargo Bank N.A. A key piece of the MOU signed by AEDC and AEDC is promoting multi-modal logistics 1SFNFSB#MVF$SPTT strives to be continually responsive to have been added in engineering, construc- "ODIPSBHFOFBSUIFJOUFSTFDUJPOPGUIF 4UBCJMJ[BUJPOJTUIBUQPJOUXIFOBEFWFM Sheldon Fisher #MVF4IJFMEPG"MBTLB its counterpart, Beijing Investment Promo- services through the Port of Anchorage and Ted Senior VP of Product, Sales & Marketing, Anchorage’s"&%$NBUDIFEUIFHSPVQXJUI,BMBEJ#SPUIFST4JMWFSIPPL$PĊFF GPSBUPVSBOE workforce needs through tion management, welding and non- (MFOO)JHIXBZBOE.VMEPPO3PBE*U PQNFOUTPQFSBUJOHFYQFOTFTBOESFWFOVF Alaska Communications Systems +PTFQI&WFSIBSU tion Bureau, is increasing the export of Alaska Stevens Anchorage International Airport to its 4FOJPS71PG"MBTLB$PNNFSDJBM#BOLJOH industry partnershipsQSFTFOUBUJPOBCPVUUIFIJTUPSZPG,BMBEJ#SPUIFSTBOEUIFNBOVGBDUVSJOHUFDIOJRVFT and close relation- destructive testing, corrosion management, JODMVEFTOFXUP"MBTLBOBUJPOBMSFUBJMFST  IBWFTUBCJMJ[FEGSPNUIFWBSJBCMFSBUFT 8FMMT'BSHP#BOL/" seafood to China. Seafood has become a highly Chinese cohorts. The city is also well placed to Peter Grunwaldt ship with communityVTFEUPQSPEVDFUIFMPDBMMZSPBTUFEDPĊFFɨFHSPVQBMTPNFUXJUIUIF*OTVMGPBN leaders. computer systems technology, computer JODMVEJOH5BSHFUBOEPUIFSEFQBSUNFOU UIBUBSFUZQJDBMMZTFFOXIFOBQSPQFSUZ .VOJDJQBM-JHI.VOJDJQBM-JHIU1PXFSMunicipal LightU1 & PPowerXFS President, Premier Alaska Tours 4IFMEPO'JTIFS valuable and strategic industry, with over $340 serve as a warehousing and distribution hub 4FOJPS71PG1SPEVDU 4BMFT.BSLFUJOH "ODIPSBHFQMBOUNBOBHFSTɨFQMBOUJTPOFPG*OTVMGPBNQMBOUTOBUJPOXJEFinformation and office systems, aviation TUPSFT IPNFDFOUFST QPTTJCMZBNPWJF JTOFXBOEQFPQMFBSFKVTUEJTDPWFSJOHJU Sandra Halliwill "MBTLB$PNNVOJDBUJPOT4ZTUFNT “Building upon these relationships is more million in exports being shipped to China in for China-based importers, providing reverse Manager of Supply Chain Management, *OTVMGPBNJT/PSUI"NFSJDBTMBSHFTUNBOVGBDUVSFSBOEFYQPSUFSPGTUSVDUVSBMJOTVtechnology, process technology, occupa- UIFBUFSBOEBWBSJFUZPGTNBMMFSSFUBJMFST 5JNFTWBSZGPSEJĊFSFOUEFWFMPQNFOUT  BP Exploration (Alaska) 1FUFS(SVOXBMEU important than ever,” said Ulmer. “It is 2006 alone, which will serve as a starting point logistics inventory, quality control and post- MBUFEQBOFMT tional safety and health, global supply BOESFTUBVSBOUT CVUJUUZQJDBMMZUBLFTBCPVUmWFZFBSTGPS 1SFTJEFOU 1SFNJFS"MBTLB5PVST central to our ability to fully serve our city for joint investment between the two cities. ponement services for U.S. businesses. David Hamilton  chain managmenet and project manage- TIPQQJOHBOEFOUFSUBJONFOUDFOUFSTUP Sr. VP Business & Commercial Lending,4BO ESB)BMMJXJMM and state workforce needs well into the Overall, the agreement states that the two Alaska USA Federal Credit.BOBHFSPG4VQQMZ$IBJO.BOBHFNFOU  Union ment. iɨJTQSPKFDUXJMMCFCPUIUIFMBSHFTUBOE TheTUBCJMJ[F Port of Anchorage is one of five General #1&YQMPSBUJPO "MBTLB "ODIPSBHFXBTUIFmSTUPGTFWFSBMTUPQTPOUIFUSBEFNJTTJPOGPSUIFHSPVQ XIJDI organizations will continue to work together by next decade. IJHIFTURVBMJUZEFTUJOBUJPOSFUBJMDFOUFS Purpose Foreign Trade Zones in Alaska and the .VOJDJQBMJUZPGMunicipality of Craig Haymes USBWFMFEUP-PT"OHFMFTBOE4BO'SBODJTDPCFGPSFSFUVSOJOHUP2JOHEBP investigating trade and investment opportuni- "ODIPSBHFAnchorage Alaska Production Manager, %BWJE)BNJMUPO Ulmer says that meeting community needs FWFSCVJMUJO"MBTLB wTBJE(SFH+POFT  onlyɨFDFOUFSJTCFJOHEFWFMPQFEJOQIBTFT  actively used license in the state. Due to ExxonMobil Corporation4S71#VTJOFTT$PNNFSDJBM-FOEJOH  “The University of Alaska Anchorage was "MBTLB64"'FEFSBM$SFEJU6OJPO is a two way street and that the university ties, establishing business relationships in each born from the merger of a community $*3*WJDFQSFTJEFOUPGCVTJOFTTEFWFMPQ theXJUIUIFmSTUTUPSFT JODMVEJOH5BSHFU FY special trade zones of both Liqiao and the Stephanie Holthaus #PC1PF GPSNFS1SFTJEFOU$&0PG"&%$ mSTUNBEFDPOUBDUXJUIUIF2JOHEBPis always open to new partnerships. community, and assisting with the coordination Vice President of Cargo, 4UFQIBOJF)PMUIBVT NFOUi*UXJMMFTUBCMJTIOFXTUBOEBSETPG AnchorageQFDUFEUPPQFOOFBSUIFFOEPGɨF port, trade within the two zones is 7JDF1SFTJEFOUPG$BSHP  college andFDPOPNJDEFWFMPQNFOUHSPVQJO+VOFXIJMFBUUFOEJOHBMPHJTUJDTDPOGFSFODF four-year university. This Northern Air Cargo of annual trade missions. This is the second /PSUIFSO"JS$BSHP exempt from import duties, inventory taxes, history providesJO4IFO[IFO $IJOB)FMBUFSWJTJUFEUIF$JUZPG2JOHEBPJO/PWFNCFSUP UAA with a broad sense “There is a lot going on at UAA.” meetingFYDFMMFODFGPSJOTUBUFTIPQQJOH GSPN of the two groups in 2007, this trip DPNQMFUFEQSPKFDUJTFYQFDUFEUPJODMVEF Greg Kessler #PC-BDIFS UIFNJYBOECSBOETPGUIFTUPSFTUPUIF dutyBUMFBTUMBSHFSFUBJMTUPSFTBOEBMBSHFS drawback and quota restrictions. of mission. FODPVSBHF$IJOFTFDPNQBOJFTUPUIJOLBCPVUWBSJPVTCVTJOFTTPQQPSUVOJUJFTJO UAA is committed to serving /FSMBOE"HFODZ/FSMBOE"HFODZ Director of the Alaska Commercial.BOBHFSPG'FEFSBM4FSWJDFT*OGSBTUSVDUVSF  Group, Email ideas to [email protected] being preceded by an AEDC trip to Beijing in Totem Ocean Trailer Express 7&$0"MBTLB *OD the unique "ODIPSBHFɨJTUSJQNBSLTUIFmSTUUSBEFEFMFHBUJPOUPWJTJU"ODIPSBHFGSPNUIFand varied higher education DFOUFSTWJTVBMBUUSBDUJWFOFTT DPOWFOJFODF OVNCFSTPGTNBMMTIPQT SFTUBVSBOUTBOE January. Bob Lacher #SVDF-BNPVSFVY needs of theDJUZPG2JOHEBP BSFMBUJPOTIJQ"&%$XJMMDPOUJOVFUPOVSUVSF state, its communities, and BOEQFPQMFGSJFOEMZEFTJHOw PUIFSCVTJOFTTFT.PTUPGUIFTUPSFTBSF Manager of Federal Services &)PTQJUBM"ENJOJTUSBUPS  Infrastructure, VECO Alaska,1SPWJEFODF"MBTLB.FEJDBM$FOUFS Inc. its diverse peoples.” DPNNJUUJOHUPMPOHUFSNMFBTFT ɨFQSPKFDUXJMMEJTUJOHVJTIJUTFMGGSPN Bruce Lamoureux #JMM0-FBSZ Hospital Administrator, 71PGPG'JOBODF$'0 PUIFS"MBTLBSFUBJMDFOUFSTUISPVHIIJHI $*3*BDRVJSFEUIFSPVHIMZBDSFQBSDFM "MBTLB3BJMSPBE$PSQPSBUJPO Providence Alaska Medical Center RRVBMJUZBSDIJUFDUVSFBOEDPOTUSVDUJPO VBMJUZBSDIJUFDUVSFBOEDPOTUSVDUJPO  VOEFSUIFGFEFSBMTVSQMVTQSPQFSUZQSPWJVOEFSUIFGFEFSBMTVSQMVTQSPQFSUZQSPWJ Bill O’Leary 4UFXBSU0THPPE 1PSUPG"ODIPSBHF1PPSortUPG"ODIPS of AnchorageBHF VP of Finance & CFO, 1SFTJEFOU %08-&OHJOFFST JJODMVEJOHWBSJBUJPOTJOCVJMEJOHGBDBEFTODMVEJOHWBSJBUJPOTJOCVJMEJOHGBDBEFT TJPOTPGUIF$PPL*OMFU-BOE&YDIBOHFTJPOTPGUIF$PPL*OMFU-BOE&YDIBOHF Alaska Railroad Corporation +PIO1BMNBUJFS BBOESPPnJOFT BOBCVOEBODFPGDPMPS OESPPnJOFT BOBCVOEBODFPGDPMPS  BTQBSUPGJUT"/$4"FOUJUMFNFOU#SPXBTQBSUPGJUT"/$4"FOUJUMFNFOU#SPX &YFDVUJWF4FDSFUBSZ5SFBTVSFS  Kevin Mitchell "MBTLB3FHJPOBM$PVODJM BBQFEFTUSJBOGSJFOEMZEFTJHO EJTQFSTFEQFEFTUSJBOGSJFOEMZEFTJHO EJTQFSTFE NBOBOE$*3*IBWFSFUBJOFE"ODIPSNBOBOE$*3*IBWFSFUBJOFE"ODIPS VP Finance & Administration, PG$BSQFOUFST ConocoPhillips Alaska, Inc. 2%#%.402%33!44%.4)/. 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Walsh Sheppard #SJBO8FO[FM KTUU, Channel 2 71'JOBODF"ENJOJTUSBUJPO PRESS Lon Wilson $POPDP1IJMMJQT"MBTLB *OD KIMO, Channel 13 President, KTVA, Channel 11 The Wilson Agency, LLC -PO8JMTPO 1SFTJEFOU  DzF8JMTPO"HFODZ --$6 3 Walsh • Sheppard 8BMTIt4IFQQBSE   AEDC Anchorage Museum Construction Banking Innovations Help On Target For 2010 Completion Foil Fraud Attempts Businesses large and small tend to be big targets of financial fraudsters, who often use Long time museum director Pat Wolf celebrated her past with a sneak preview into the technology to perpetrate their crimes. Yet it’s also technology that’s helping business future. On Sunday September 23, the museum held a public retirement party for Wolf owners and financial services professionals fight fraud, especially through early detection. and pulled back the curtain on the museum’s new wing, showing the near-completion of the structural frame that will support the growing interests of the local art community. According to a 2004 study by the American Bankers Association (ABA), bank pre- The 70,000 square-foot addition to the Anchorage Museum continues to progress and vention systems caught 88 percent of check fraud attempts. Even with improving is on schedule to be completed by 2010. The expansion, a collaboration between David prevention systems, check fraud costs U.S. businesses billions of dollars each year and Chipperfield Architects of London and local Anchorage firm Kumin and Associates, will since 1997, the number of fraud attempts against bank accounts has doubled every allow the museum to display more of its current art and history collections and will include two years. the first Smithsonian Institution facility outside Washington, D.C. The new structure will include temporary exhibit space, library and archives, and a new shop To stem the increasing tide of fictitious checks and unauthorized withdrawals, the finan- and café. The existing museum will be renovated to become the new cial services industry has developed powerful weapons such as “positive pay”, electronic home of The Imaginarium’s hands-on science galleries. A beautifully account reconciliation, payment authorization services and check security features that landscaped 2-acre public plaza adjacent to the new structure will make replication and forgery more difficult. create an active, vibrant place for both outdoor exhibits and year- round recreation. Positive Pay – With positive pay, a business provides its financial services company The expansion of Anchorage’s Museum of History and Art will be a with a list of checks it has issued. When a check is presented for payment, the financial showpiece of energy efficiency using some of the latest strategies to institution compares the check with the positive pay list. If there’s no match, the banker reduce electric and heating costs, improve air quality and rely on natural can alert a business customer and request verification. Positive pay is one of the most materials and lighting. That’s the result of the Assembly’s recent approval powerful weapons in the war against check forgery and fraud. of Mayor Mark Begich’s proposal to make the museum expansion Anchorage’s first municipal LEED (Leadership in Energy and Electronic Account Reconciliation – Another useful financial service is account recon- Environmental Design) building. The project will help spur new ciliation reporting. This service electronically matches your check issue information economic development by requiring local content and recycled materials. against checks actually paid on your account, up to 50 times a day. Electronic account reconciliation provides peace of mind with automated and customizable reports The expansion is possible thanks, in part, to more than 500 individuals, containing detailed information about check register and stop payment receipts, foundations, businesses and government agencies whose financial support has enabled outstanding checks, reversed checks, cancelled checks, unpaid checks, deposit activity, the museum to reach its initial $16 million capital campaign goal. The museum is now and more. launching a Close the Gap fundraising campaign to raise an additional $5 million in community support by year’s end for renovations to the existing museum which Check 21 – Expedited check clearing through the implementation of the Check 21 will house The Imaginarium as part of the expansion. Along with $1.8 million in Law is another way technology is advancing check fraud detection. Check 21 took matching grants from two private foundations, museum founder effect in October 2004, and deemed that valid digital check images are the legal has issued a $1.5 million dollar matching grant for donations or pledge commitments equivalents of original checks. Businesses now have access to check images as soon made before Dec. 31. as items enter the collection stream. This means that financial services companies The expansion project is set for completion in 2010. For more information on and business owners can react faster to fraud attempts and take immediate steps to the Anchorage Museum expansion or on the fund-raising campaign, visit prevent losses. www.anchoragemuseum.org/expansion or call (907) 343-6175. Mobile Banking –Mobile banking technology—which allows business managers to access account information from handheld mobile devices like a BlackBerry or PDA (personal digital assistant)—has augmented fraud monitoring capabilities. Many major U.S. financial services companies now offer mobile service for businesses, where customers can view key treasury reports through a secure browser session. In the future, wire approvals, image positive pay exceptions, and administrative tools such as password resets will all be part to these technologies and help customer protection

Proactive prevention and vigilance are a business owner’s best weapons against fraud. With exacting banking innovations and vigilant bankers, you’ll have an even stronger arsenal to battle financial fraud.

Joe Everhart is senior vice president and Alaska Commercial and Business Banking manager for Wells Fargo. You He can be reached at 265-2981 or [email protected].

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