Norton Sound Economic Development Corporation 2005 Annual Report
Brevig Mission • Diomede • Elim • Gambell • Golovin • Koyuk • Nome • Saint Michael • Savoonga • Shaktoolik • Stebbins • Teller • Unalakleet • Wales • White Mountain NSEDC MISSION STATEMENT
“NSEDC will participate in and encourage the clean
harvest of all Bering Sea fisheries to promote and
provide economic development through educa-
tion, employment, training and financial assistance
to member communities and Western Alaska,
while protecting subsistence resources.”
RUSSIA
U.S.A. RUSSIA U.S.A.
Big Diomede Little Wales Diomede Brevig Mission
Gambell Teller Savoonga BERING SEA Nome White Mountain Eli Koyuk Golovin NORTON SOUND Shaktoolik Unalakleet Stebbins Saint Michael The Year in Review Message From The Chairman
projects as they relate to our current Commission took your comments and mission and methods for delivering incorporated them into a formula for benefits to the region. CDQ Program evolution. NSEDC and the other CDQ groups will be working A fundamental part of this process with these ideas to further develop the is to keep looking to the future to program into a form that will bring the anticipate where the company will be regulatory and statutory ability for us in terms of economic and regulatory to advance how we do business in the capability, and to integrate that with region. After amending the laws that hope the Chairman of the NSEDC the major needs of our communities. I govern the CDQ program, the next step Board of Directors never gets tired of NSEDC has been at the forefront of is to examine how NSEDC interacts with delivering the message that NSEDC has the movement to amend the program its communities. experienced another amazing year of to allow the CDQ program to benefit growth, both in program development the needs of all residents of member One method NSEDC has employed and financial successes. I am pleased communities, fishermen or otherwise. for self-examination is through to report that in 2005, we expanded our As the reality of non-fisheries projects a contract with the University of programs and added nearly $17 million comes closer, the need for corporate Rhode Island (URI) to conduct an to our bottom line. adaptation increases. Many of you will evaluation and create a community- remember meetings of the Governor’s based development plan. All 15 Resting on our laurels is not an option Blue Ribbon Commission held in member communities were visited in with our company growing as it is, NSEDC communities in 2005. The 2005 by the URI research team and and the NSEDC Board of Directors and staff continually strive to match our program delivery with the needs of our NSEDC 2005 Fiscal Year Total Assets member communities. In 2005, your NSEDC Board of Directors amended (in millions) its financial management strategy 100 95 to expend 75% of profits realized 90 from investments (2nd Generation 85 80 Funds), up from 25% in the past. We 75 70 will continue to invest 50% of our 65 CDQ royalties as well as 25% of 2nd 60 55 Generation Funds. While this will 50 45 slow the growth of our net worth, it 40 greatly increases our ability to make 35 30 investments within the region. With 25 each passing year and additional 20 15 projects being completed, we are 10 5 essentially running down the list of 0 more obvious and straightforward 1996199719981999200020012002200320042005
1 NSEDC staff. The URI research team board of directors, and ultimately its communities, and over $2.3 million conducted many interviews in each member communities. The state and in donations and contributions to community. The interviews were federal governments both have strict organizations and entities in the region. directed to provide initial information rules about the types of projects that This combined with the millions of regarding community perception of NSEDC can participate in, and the other NSEDC dollars spent on in- NSEDC performance and programs, board and staff must interpret these region projects all add up to another potential for future NSEDC programs, regulations as well as account for value outstanding year for our company. and general information regarding and likelihood for success of each As Chairman, I am very proud of the the major needs of the communities. project. The company also has to work hard work the Board of Directors has The final report will not be available within a budget to ensure corporate put forward as well as the diligence until some time in 2006, but it should growth. All of these factors must be and motivation the staff of NSEDC have prove to be a very valuable tool in considered when NSEDC attempts to shown in the delivery of our programs. identifying areas for development both change how it does business. Ideas The positive impacts to the region that in the company and in its member for development and growth that come NSEDC has had thus far and more communities. from within the communities are highly significantly, what the future holds regarded by both the Board and staff to Another very important tool in will speak more loudly than I can so be more likely to succeed, as the sense developing new approaches to NSEDC I will end with a simple token of our of ownership is greater if it comes program delivery is through community appreciation. The Board and staff look from within. interaction. NSEDC staff recognizes forward to growing with the region in that it may be a slow process once Direct economic impacts from NSEDC the future and would like to thank the an idea or a concern is passed on; programs and operations in 2005 residents of the Norton Sound for their however, it should not be taken include: $2.2 million invested in local hard work, ideas, and patience! as rejection if something doesn’t fisheries wages through Norton Sound occur right away. There are a lot of Seafood Products, over $1 million Sincerely, factors to take into account when in wages to residents employed by Dan Harrelson advocating for a program or corporate Glacier Fish Company and Norton change. NSEDC is governed by state Sound Ventures, $197 thousand in NSEDC Board Chairman government, federal government, its scholarships to residents of member White Mountain
The community of White Mountain
2 Norton Sound Fisheries
Since 1995, Norton Sound Seafood permit holders delivered pounds of coho salmon and 28,135 Products (NSSP), a division of to Norquest Seafoods at pounds of chum salmon. The 2005 NSEDC, has continued to sup- an ex-vessel value of salmon season was over 53% higher port the Norton Sound region $154,234 ($150/Ton at than the 2004 season. commercial fisheries. NSSP’s ten percent). In addition, A $.10 per pound price adjustment activities include purchasing, NSEDC paid these fishermen for all salmon landed in 2005 was processing, marketing, and selling a bonus incentive of $100/Ton approved by the board of directors herring, salmon, halibut, crab, and for ten percent and better, totaling at the December 2, 2006 meeting. bait. NSSP operates facilities through- $71,025. From this amount $ 29,150 out the region including the Unalakleet was collected and applied toward OPEN-ACCESS NORTON SOUND plant, Savoonga halibut buying station, NSEDC loan programs. RED KING CRAB
Norton Sound Seafood Center in Nome, The open-access crab season com- The Norton Sound salmon fishery was and buying stations in Elim, Golovin, menced July 1st and closed August the second highest in the past twelve and Shaktoolik. 15th. Twenty-six fishermen delivered years. Coho and chum production was a total harvest of 294,938 pounds. COMMERCIAL NORTON SOUND up considerably. Forty salmon permit The ex-vessel value totaled $868,670. HERRING & SALMON holders fished the coho season, twelve Fishermen were paid an average of The sac roe herring fishery started 48 hour periods, for a total ex-ves- $33,410 each. on June 3, 2005 and continued for sel value of $296,253. This included seven days. Fifty-three Norton Sound 2,511 pounds of king salmon, 660,987 Norton Sound Investment Company
Norton Sound Investment Company Generation Earnings,” to distinguish (NSIC) is a wholly-owned subsidiary of them from income NSEDC receives as year, resulting in record earnings and NSEDC and holds NSEDC’s investments royalties from CDQ allocations. During record cash received by NSIC. in Glacier Fish Company, Norton Sound 2005 the portion of 2nd Generation During 2005 NSIC acquired a higher Ventures, IFQ holdings and various Earnings which NSIC remits to NSEDC percentage ownership interest in a crab investment accounts. Its purpose is was increased, and the portion which harvesting subsidiary called Norton to make investments in income-pro- is reinvested for further growth was Sound Ventures, LLC. NSIC’s owner- ducing assets and then oversee those decreased. As a result, 2nd Genera- ship increased from 50% to approxi- investments. A portion of the income is tion Earnings from NSIC’s investments mately 59.5%. Norton Sound Ventures remitted to NSEDC for current pro- are now funding a large number of also posted record earnings, and NSIC grams, and a portion of the income is new projects and programs beyond the believes that there is potential for higher reinvested for growth, with a goal of Community Benefit Share. earnings in future years, even though creating an even greater income stream crab prices are somewhat depressed. Norton Sound Investment Company, LLC in the future. The Community Benefit had a strong year in 2005. As a result, NSIC also saw gains in its stock market Share is paid for entirely from NSIC’s NSIC’s receipts were higher than in investments and received income remittances to NSEDC. any year since the formation of NSIC in from its quota share holdings, roughly NSEDC and NSIC refer to the earn- 2002. NSIC’s 50%-owned subsidiary, comparable to the gains from the ings from these investments as “2nd Glacier Fish Company, had a very good prior year.
3 2005 CDQ Fisheries
2005 was a very good year for NSEDC is Pacific cod. NSEDC harvested about in harvesting CDQ fisheries and a 2,796 metric tons of CDQ Pacific cod record year for CDQ royalties. In ad- in directed fishing operations in the dition to mainstay fisheries for pollock, Bering Sea using GFC’s two longline Pacific cod, Atka mackerel, halibut, catcher-processing vessels, the F/V Nor- and various species of crab, we suc- ton Sound and F/V Glacier Bay. These cessfully expanded operations for and vessels harvested the entire NSEDC China Rockfish, a bycatch on longliners harvest volumes of sablefish, yellowfin quota. In addition, NSEDC helped Bering Sea and Aleutian Islands were sole and rock sole. NSEDC continues facilitate the harvest of cod quota for too small to conduct directed fisher- to work well with longstanding harvest- another CDQ group using these GFC- ies and were therefore reserved for ing partners – including Glacier Fish owned vessels. bycatch only in other target fisheries. CDQ Sablefish CDQ Atka Mackerel NSEDC developed a new business NSEDC harvested nearly the entire an- relationship with first-year harvesting nual CDQ of Atka mackerel or about partner for CDQ sablefish in the Bering 630 metric tons in the Eastern (541), Sea and Aleutian Islands, Gunn-Sea Central (542), and Western (543) Company, Norton Sounds Ventures and Venture LLC. The F/V Sea Venture har- Aleutian Islands regulatory areas. As United States Seafood – while looking vested about 88 metric tons (194,000 in past years, NSEDC worked with the for new opportunities and business round pounds) of CDQ sablefish in the management company United States relationships. Aleutian Islands and about 20 metric Seafood LLC (USS) and the catcher-pro- CDQ Pollock tons (44,100 round pounds) in the cessing vessel, F/V Seafreeze Alaska, in The pollock fishery remains as NSEDC’s Bering Sea during the targeted fishing the harvest of CDQ Atka mackerel. operations. A small amount of quota primary and most valuable CDQ target CDQ Yellowfin Sole was not harvested. fishery. Pollock accounted for roughly and Rock Sole 83% of all CDQ royalty payments in CDQ Greenland Turbot NSEDC also worked with USS in 2005 2005. Glacier Fish Company (GFC) In 2005, the CDQ allocations in the to increase the harvest of other CDQ has been our CDQ harvesting partner for CDQ pollock since the beginning of the CDQ program in 1992. NSEDC now owns a 50% interest in GFC and two mid-water pollock trawlers, the F/V Northern Glacier and F/V Pacific Glacier. These catcher-processing vessels harvested most of the pollock quota or roughly 31,840 metric tons. A very small amount of quota was not harvested. CDQ Pacific Cod NSEDC’s third most valuable CDQ target fishery after the various crab fisheries Deck hands tying off a Codend on a trawler harvesting Atka Mackeral in the Aleutian Islands
4 groundfish by successfully undertaking CDQ Bristol Bay Red King Crab a combination target fishery for yellow- This season was the first for the Bristol fin sole and rock sole. TheF/V Sea- Bay red king crab fishery managed freeze Alaska harvested approximately under newly rationalized crab fisheries 476 metric tons of CDQ yellowfin sole in the BSAI. The F/V Alaska Beauty – a and about 154 metric tons of rock sole. vessel in which NSEDC has a majority In addition to the our quota which was owner interest - harvested and deliv-
fully harvested, NSEDC facilitated the ered almost the entire quota or about Bigmouth Sculpin, a longliner bycatch harvest of 163 metric tons of yellowfin 328,664 pounds of red king crab. was expanded to include the EAI brown sole for another CDQ group using the NSEDC worked with the newly reor- crab fishery as a part of management F/V Seafreeze Alaska. ganized seafood processing company, changes under crab rationalization. Royal Aleutian Seafoods, to process and CDQ Halibut NSEDC initiated fishing operations sell crab product from the CDQ fishery. NSEDC harvested nearly the entire for CDQ brown crab in December quota of CDQ halibut or about 162,522 CDQ Bering Sea Opilio Crab 2005, harvesting about one-half of pounds in 2005. This harvest was NSEDC successfully completed the CDQ the 63,000-pound quota using the F/V accomplished by working with local opilio crab fishery working with the F/V Aleutian No. 1. NSEDC has an owner- fishing boats and fishermen from the Alaskan Beauty by harvesting a majority ship interest in the Aleutian No. 1. region, and contracted offshore har- of the quota or about 331,695 pounds Harvesting operations in the 2005-2006 vesters, the F/V Shemya and the F/V of crab. NSEDC also worked with Royal brown crab fishery will continue in the Glacier Bay. Nine local boats harvested Aleutian Seafoods in the processing and beginning of 2006. sales of product from this CDQ crab and delivered to the Norton Sound CDQ St. Matthew and fishery. Seafood Center (NSSC) in Nome a total Pribilof Islands King Crab of 46,558 pounds, while the Glacier CDQ Eastern Aleutian Islands and Bering Sea Bairdi Crab Bay harvested 63,946 pounds and the Golden King Crab There was no commercial fishery for Shemya 52,018 pounds. The halibut The 2005-2006 season was the first king crab in the Pribilof Islands and at product from NSSC was primarily sold for a CDQ fishery for golden king crab St. Matthew and for bairdi crab in the as fresh fish to markets in Alaska and (also called brown crab) in the eastern Bering Sea due to continued crab stock the Pacific Northwest. NSEDC received Aleutian Islands. The CDQ program conditions under the harvest threshold. additional halibut quota from another CDQ group that was not harvested. CDQ Norton Sound Red King Crab The entire CDQ allocation to NSEDC of Norton Sound red king crab or about 15,030 pounds was harvested in 2005. The same amount of red king crab quo- ta was obtained by NSEDC from another CDQ group that was also harvested. Eight local boats and regional fishermen participated in the fishery and delivered a total of 29,979 pounds of CDQ Norton Sound red king crab to the Norton Sound Seafood Center (NSSC) in Nome. Norton Sound Crab Norton Sound Halibut The CDQ Groups Propose Legislative Changes to Ensure Effectiveness for Communities Over the past 13 years the CDQ pro- mittee submitted its report, NSEDC for the administration of the CDQ gram has grown. But the manner in began meeting with the Coastal program. The new framework will which the National Marine Fisheries Villages, Yukon Delta, and Bristol provide NSEDC the flexibility it needs Service (NMFS) and the State of Alaska Bay CDQ groups to jointly develop in order to expand its participation administers the CDQ program has not an amendment to the CDQ program in Bering Sea commercial fisheries changed. In 2000 NSEDC was the first section of the Magnuson-Stevens Act. and to use the revenue its participa- CDQ group to urge Congress, NMFS, The enactment by Congress of this tion generates to provide economic the North Pacific Fishery Management language will implement the Blue and other benefits to NSEDC member Council, and the State to modernize Ribbon Committee’s major recom- communities. One of the most impor- administration of the CDQ program. To mendations. Rather than waiting for tant provisions frees the NSEDC board bring about that modernization, NSEDC Congress to reauthorize the Mag- of directors from most NMFS and then began working with the other CDQ nuson-Stevens Act, in April, Senator State oversight. Another important groups, Senators Stevens and Murkows- Stevens and Congressman Young provision guarantees that NSEDC’s ki and Congressman Young, and, most added our amendment to H.R. 889, annual fishing allocations will con- recently, a Blue Ribbon Committee that the Coast Guard Authorization Act of tinue at their present percentages until 2012, after which the allocations Governor Murkowski appointed to 2006, which Congress is expected to will be reviewed once every 10 years. study the administration of the program pass within the next several weeks. During any 10-year period, the and recommend changes. The CDQ program amendment in allocations cannot be changed by Last August when the Blue Ribbon Com- H.R. 889 creates a new framework more than ten percent. NSEDC Board of Directors Policy Motions for 2007-2009 Management of Second Benefit Share Program The 33% for the Community Benefit Generation Funds and Funding • 20% cap (up to 20%) expended Share Program will cover the annual for Outside Entities for projects managed by Community Benefit Share distribution, Outside Entities Component 1 - Allocation with the remaining amount held in an • 15% Cap of Individual of Funds account for future Community Benefit Entity Funding within the 20% Share Distributions and/or special NSEDC funding of projects managed by Outside Entity Funding Cap equitable distribution projects. Outside Entities will come only from • 47% Floor on funding for NSEDC 2nd Generation Funds. Program Growth The 20% cap for projects managed by • Unspent funds accumulate in a Outside Entities sets the ceiling amount The 75% of 2nd Generation Funds that separate account designated for at which other organizations (in total) are allocated for in-region expendi- NSEDC infrastructure projects, will receive funding. If at its annual tures will have the following provisions or large community infra- funding meeting the board approves attached to ensure balanced growth for structure requests such as port project funding in total less than 20% NSEDC and Outside Entity projects: projects which require significant for Outside Entities, the balance will be • 33% put into the Community matching funds. made available for additional NSEDC
6 Program Growth funding. Additionally, region. A community that applies and Component 3 – Matching/ there will be a 15% cap established receives such an award will be required In-Kind Funds within the 20% Outside Entity Cap to expend all these funds and complete For purposes of defining a match as to ensure that no single entity will their project before being considered required for project funding or for receive excessive funding and restrict for future awards of this nature. increasing merit in the NSEDC proposal other entities from receiving benefits. Component 2 – Administrative scoring process, the following defini- Individual Entity Caps apply to orga- Funds Policy nizations as a whole, not individual tions should be applied: departments within an organization. As to not replace existing funding 1. Matches must be project specific (i.e. within the region, create a dependency The 47% Floor on funding for NSEDC any match must specifically be for the on NSEDC funding, or fund administra- Program Growth assigns a minimum project proposed to NSEDC) tion other than its own, NSEDC grants amount available to the board and 2. Administrative Costs are not consid- through its Outside Entity funding staff for expansion of NSEDC opera- ered a project match program will adhere to the following tions. This number may increase by 3. In-kind matches are subject to valua- restrictions: any amount the board sees fit, up to tion limits 20% of the NSIC distribution, with a • Outside Entity funding only applies • Salary compensation limits corresponding decrease in funding to to actual project costs • Equipment depreciation, with projects managed by Outside Enti- • Administrative overhead costs consumables factored in ties. An important component of this (i.e. indirect rates, flow through 4. “Double-dipping” of matching is not provision is that these funds need not costs, etc.) are not considered permitted (however, the other match- be expended in a given year; should actual project costs ing funds secured can be used as a the board determine that the relative • All direct project costs that are match to NSEDC funds as long as the value of a proposed use of funds is able to be documented will be proposal to NSEDC is a component of low, then funds are not obligated for considered the larger overall project) expenditure. Any funds not used for • Infrastructure requests such 5. For instances not covered in this NSEDC Program Growth will reside in a as general-duty buildings and policy, NSEDC staff should use their separate account. vehicles are considered to be best judgment in determining if a administrative in nature proposed match is valid The unspent funds account will contain funds not spent for NSEDC Program Growth, and are intended for NSEDC infrastructure or special projects, or for large community infrastructure requests to be used as a local match for large-scale funding projects in coordi- nation with other funding agencies such as the Economic Development Admini- station, Rasmusson Foundation, Denali Commission, State of Alaska Block Grants, US Army Corps of Engineers, etc. These large community projects should be significant long-term eco- nomic development projects that have significant positive implications for the Aerial view of Golovin
7 Education, Employment & Training
Education 2005 EMPLOYMENT STATISTICS NSEDC awards scholarships to Norton Sound residents enrolled full-time or part-time at an accredited college, Management/Administrative university, or vocational education NSEDC 12 $847,622.07 school. The scholarship was increased NSSP 7 $316,642.41 on October 12, 2005 to $1,500 per Total Management/Administrative 19 $1,164,264.48 semester or training session by the NSEDC Board of Directors, upon a CDQ Pollock Related 96 $845,218.79
recommendation by the NSEDC NSSP Employment 92 $199,463.68 Scholarship Committee. The NSEDC Scholarship Committee, Other NSEDC Employment 13 $58,239.54 Skippers, Deckhands, etc. Walter Seetot, Chairman, Victor Joe, Truman Kava, Gilbert Ungott, Wilfred Other Fishing Katcheak, Frank Oxereok, Paul Ivanoff GFC - Longline 24 $153,749.70 III, and Janice Dickens, on behalf of Icicle Seafoods 2 $15,534.39 the NSEDC Board of Directors, awarded Norton Sound Ventures - Crab 1 $3,528.59 $38,750 to twenty-nine Norton Sound Norton Sound Salmon 53 $296,253.55 Norton Sound Herring 41 $291,785.76 Vocational Education Students and NSEDC CDQ Red King Crab 6 $52,944.00 $158,224.55 to Norton Sound Post- YDFDA CDQ Red King Crab 8 $36,993.00 Secondary Students in 2005 for a total O/A Norton Sound Red King Crab 26 $1,012,877.00 expenditure of $196,974.55. O/A Norton Sound Winter Red King Crab 7 $23,953.50 Employment CDQ 4D/4E Halibut 9 $144,885.84 Upon completion of the fisheries safety Total Other Fishing 177 $2,032,505.33
orientation class at AVTEC in Seward, NSEDC Community Outreach Liaisons 13 $75,000.00 the Norton Sound Seafood Processors are eligible to work with Glacier Fish Interns Company, who harvests our pollock, NSEDC Administration 3 $27,552.70 halibut, and sable fish in the Bering NSEDC Salmon Rehab. 7 $77,552.22 Sea, Norton Sound Ventures, who har- Glacier Fish Company 1 $16,128.40 Alaska Dept of Fish & Game 5 $58,806.67 vests our crab, and any other seafood Kawerak, Inc 5 $49,349.85 processing company on land. Native Village of Unalakleet 1 $5,911.03 In 2005, Norton Sound Seafood Proces- Total Interns 22 $235,300.87 sors, working with Glacier Fish Com- pany on the F/T Pacific Glacier Fish GRAND TOTAL 432 $4,609,992.69 Company, F/T Northern Glacier, F/V Norton Bay, and the F/V Glacier Bay,
brought home $235,746.01 in crew share wages during the first quarter. EDUCATION & TRAINING STATISTICS $282,192.19 in the second quarter, $343,719.09 in the third quarter, and People Expenditures $137,309.19 in the fourth quarter Scholarships for a cumulative total for the year Post-Secondary 104 $176,477.00 Vocational 32 $46,250.00 of $998,966.48. This brought the cumulative total from 1992 to 2005 Fisheries Related Training 34 $108,095.75 from Glacier Fish Company Crew TOTAL 170 $330,822.75 Share Wages to $9,837,081.31. Thanks to Renee Julienne and the Shaktoolik worked with Glacier Fish A hazard analysis and critical control Glacier Fish Company Human Re- Company as an intern. point class was held in Nome for ten sources Department for their hard processing facility personnel and crab Training work employing our processors. fishermen in April for $5,876.43. From all companies, our processors NSEDC Education, Employment, and A master mate/OUPV class was held have brought home $9,946,880.24 in Training was required to train 45 in Nome in May with twelve residents wages working in the Bering Sea. residents in a fisheries related training with a cost of $18,283.47. Mitch opportunity for the year. Three fisher- Demientieff of Nome went to refrig- Gary Koutchak has been working with ies safety orientation classes were held eration training at the Refrigeration Icicle Seafoods out of Seattle for a few at AVTEC in Seward with a total expense School, Inc. in Phoenix, Arizona for years now, bringing home $30,477.70 of $101,606.59 with thirty-four trainees $14,518.30. In all, the training op- this year. completing the class and forty nine portunities provided by NSEDC totalled Hayley Asicksik of Anchorage / given the training opportunity. $140,284.70 for the year.
Norton Sound Red King Crab caught during the winter fishery.
5 NSEDC 2005 Fishermen Spotlight
Steve Ivanoff Unalakleet
Lifetime Unalakleet resident and fisherman, Steve Ivanoff, was the top NSSP commercial salmon fisherman in 2005. Congratulations, Steve! We look forward to many more great fish- ing seasons. Following is an interview between NSEDC and Steve: Where were you born and raised? I was born in St. Michael and raised in Unalakleet.
What is your family history? I am the son of Ralph Ivanoff, who was Steve Ivanoff and his son Gage born up the Shaktoolik River, and the What experience stands out? ber of others with the purchases late Veronica Ivanoff, who was born in King salmon fishing on July 4th and 5th of boats and/or motors. They have St. Michael. I have 10 brothers and 1 of 1985, catching boatloads in glass provided a market for us in the lean sister, with a younger sister deceased. calm and clear water. times when no one else would and I am married to Zoe Ivanoff, 19 years helped to develop the Norton Sound this summer, and together we have In what fishery(ies) do you participate? crab into a small boat fishery. This raised three wonderful fishermen. We I commercial fish salmon, herring has allowed the entry of a lot of local have an 18 year old daughter, Kelsi and crab; and subsistence fish all fishermen helping us during the lean Marie, who attends UAA; and two sons, that swims and crawls in fresh and salmon and herring years. Ralph Keoni-14 years old, and Gage salt water. Stephan-9 years old. They are very What is the name of your boat? active fishing partners and one of the How have things changed? The Dog Salmon and the Aatai. reasons I still go out fishing even when The gear, boats and nets, are so much Describe your best season? there is little money to make. better, faster, and efficient. Fishing runs The best salmon season was with Brian on a cycle and we seem to be coming When did you start Johnson in 1980, the best herring was commercial fishing? out of the down cycle in salmon, her- in the early 1990s when herring was I started fishing salmon on my father’s ring is still down, crab is stable. $800 a ton, and the best crab season boat when I was about 10 years old How has NSEDC contributed to was when we had a boat processor and bought my first salmon fishing boat the fishery? stationed at Golovin; this made it so in 1976. I have fished herring since NSEDC had assisted a number of us convenient for fueling up, and fishing 1981, and crab off and on since 1993. with the purchasing of gear, and a num- on our own schedule.
1210 Frank McFarland When Frank was younger, he would fishing by Besboro Island. He says often accompany his parents on their there were also some glorious days Nome salmon trawler. He started commercial winter-crabbing through the ice. Frank McFarland, a NSEDC commercial fishing when he was fourteen. Cur- However, his best fishing season was fisherman, was born in Washington and rently, he participates in the Norton the year he and his crew caught the most Norton Sound red king crab raised in Northwest Alaska. His parents Sound crab and halibut fisheries. and his boat, F/V Mithril, didn’t have are Perry and Nancy Mendenhall of The worst season for Frank was when any breakdowns. Nome and the late Jack McFarland. his boat blew a head gasket which Frank has three brothers and one turned into a $20,000 repair job. Fishing has helped his family and sister. He and his girlfriend, Cherilyn He consoles himself by thinking it may his friends financially. He is grateful Kavairlook, have a son named Colin have been a blessing in disguise. for the opportunity to participate in who is two years old. Colin already the local fisheries and for the access enjoys boating with his grandparents in Some of the better and more adventur- to proper and safe equipment Koyuk. Frank hopes he will eventually ous seasons he remembers are long- made available through NSEDC’s join him in commercial fishing. lining outside Kodiak and herring loan program.
Top fisherman Frank McFarland with Eugene Asicksik
1311 Revolving Loan Program 2005 REVOLVING Since 1993, NSEDC has assisted many This Option was introduced in 2001 LOANS local fishermen in participating more and is still available as funds are competitively in the Norton Sound com- repaid back into the program. Community Loan Amount mercial fisheries including the herring, Terms: Golovin $12,843.00 salmon, red king crab, halibut, and • $80,000 maximum for LLP Koyuk $3,074.65 baitfish. permit holders Nome $48,513.13 Shaktoolik $64,912.74 NSEDC offers low interest, minimal • $55,000 maximum for St. Michael $8,216.00 down payment loans to local residents non-LLP permit holders Unalakleet $29,212.40 for vessel and equipment upgrades and • 5% minimum down payment White Mountain $15,658.92 for purchasing fishing gear, outboard • 0% interest for first 3 years Total $182,430.84 motors, Norton Sound salmon permits, • 6% interest commencing Large Vessel Lower Yukon salmon permits, Norton in 4th year of loan Sound herring permits, and Norton • Credit check and 90 day Community Loan Amount Elim $6,500.00 Sound red king crab License Limitation delinquency limit Golovin $80,000.00 Program (LLP) Permits. In 2005, NSEDC made seven Nome $146,532.00 Terms: Large Vessel Loans in the sum of White Mountain $3,932.19 • $16,000 maximum for $236,964.19 to local commercial Total $236,964.19 permit holders fishermen of Elim, Golovin, Nome Total Loans $419,395.03 • 7-year payback/3 year and White Mountain. payback for outboards • 10% down payment & 8% interest rate per annum • Credit check and 90 day delinquency limit
In 2005, NSEDC made eighteen loans in the sum of $182,430.84 to local resi- dents in the communities of Golovin, Koyuk, Nome, Shaktoolik, St. Michael, Unalakleet and White Mountain. Large Vessel Loan Option The Large Vessel Loan Option provides further assistance to local fishermen in acquiring suitable vessels for participa- tion in the Norton Sound red king crab and 4D/4E halibut commercial fisher- ies. NSEDC designed the Large Vessel Loan Option to maximize benefits to the fishermen at a minimal cost to them. Boats lined up at the Nome Small Boat Harbor
12 2005 NSEDC BOARD OF DIRECTORS
Walter Seetot Mary Menadelook Charles Saccheus, Sr. Gilbert Ungott Dean Peterson BREVIG MISSION DIOMEDE ELIM GAMBELL GOLOVIN
Danny Adams Don Stiles Victor Joe Truman Kava Harvey Sookiayak KOYUK NOME ST. MICHAEL SAVOONGA SHAKTOOLIK
No photo available
Hermes Dan Isaac Okleasik William Johnson Frank Oxereok, Jr. Dan Harrelson STEBBINS TELLER UNALAKLEET WALES WHITE MOUNTAIN
NSEDC Staff • Anchorage Carol Charles Community Outreach Eugene Asicksik Administrative Assistant Liaisons President & CEO Lucy Okie & Carly Seetot NSFR&D • Nome Brevig Mission Janis Ivanoff Vice President & Community Simon Kinneen Etta Menadelook Benefits Director NSFR&D Director Diomede Emily Murray • Elim 2005 Executive Charlie Lean Kathy Wheelehan Fisheries Biologist Shirley Antoghame Committee Secretary & Office Manager Gambell Dan Harrelson, Chairman Chris Cook Susan Dexter Don Stiles, Vice-Chairman NSSP Staff Treasurer & Chief Financial Golovin Dean Peterson, Secretary Officer/Controller Tom Magwire Ruby Nassuk • Koyuk Operations Manager Harvey Sookiayak, Treasurer Shirley Martin Leslie Richards Frank Oxereok, Sergeant-at-Arms Marziano “Rocky” Piccini St. Michael Community Development Production Manager Specialist Charlotte Kava 2005 Corporate Savoonga Officers Richard Ferry Virginia Nashalook Facilities Engineer Reuben Paniptchuk Eugene Asicksik, President Accountant Shaktoolik Janis Ivanoff, Vice-President Josh Osborne Hazel Sagoonick NSSC Plant Manager Atha Foxie Kathy Wheelehan, Secretary Accountant Stebbins Chris Cook, Treasurer Ross Outwater Sarah Okbaok Nina Razina NSSC Retail Sales Manager Teller Contractors Accountant Crystal Taxac Victor Ongtowasruk & Jon Zuck NSSC Accountant Joanne Keyes CDQ Manager & Technical Advisor NSEDC Staff • Unalakleet Colleen Saccheus Wales Steve Rieger & Company LLC Jerry Ivanoff NSSP Unalakleet Davis Lincoln Norton Sound Investment Company EET Coordinator Accountant (seasonal) White Mountain
14 NSEDC COMMUNITY HIGHLIGHTS Brevig Mission • Walter Seetot served as a Board Member • Lucy Okie and Carly Seetot served as Community Outreach Liaisons • GFC employed 1 resident on board the F/V Glacier Bay • Received $75,000 Community Benefit Share • NSEDC contributed $99,999 to the City of Brevig Mission for construction of a multi-purpose community resource facility • NSEDC contributed $3,000 to the Brevig Mission Little Huskies for their Little Dribblers Program • NSEDC contributed $23,000 to the Brevig Mission School to assist with start-up costs for a concessions stand and workshop Diomede • Mary Menadelook served as a Board Member • Etta Menadelook served as a Community Outreach Liaison • Received $75,000 Community Benefit Share Bobby Amarak, Dean Peterson and Rich Ferry in Golovin • NSEDC contributed $3,000 to the Diomede Dribblers for their Little Dribblers Program • Susan Dexter served as a Community Outreach Liaison Training under the EET Program • NSEDC awarded an academic scholarship to 2 residents • GFC employed 6 residents on board the F/V Pacific Glacier Elim • 1 local fisherman participated in the Open Access Norton & F/V Northern Glacier • Charles Saccheus, Sr. served as a Board Member Sound red king crab fishery • GFC employed 2 residents on board the F/V Norton Sound • Emily Murray served as a Community Outreach Liaison • Received $75,000 Community Benefit Share • Icicle Seafoods employed 1 resident • NSEDC awarded academic scholarships to 2 residents • NSEDC contributed $3,000 to the Golovin Lynx for their • 2 local fishermen participated in the Norton Sound winter • 1 resident completed an internship with ADF&G Little Dribblers Program red king crab fishery sponsored by NSEDC • NSEDC contributed $32,240 to Chinik Eskimo Community • 2 local fishermen participated in the NSEDC CDQ Norton • 4 residents were certified in Fisheries Safety Orientation for a burn barrel project Sound red king crab fishery Training under the EET Program • NSEDC installed an access ramp for the Golovin • 4 local fishermen participated in the YDFDA CDQ Norton • GFC employed 3 residents on board the F/V Northern floating dock Sound red king crab fishery Glacier and F/V Pacific Glacier • NSEDC contributed $5,000 to Martin L. Olson School • 12 local fishermen participated in the Open Access • GFC employed 1 resident on board the F/V Glacier Bay for a basketball camp Norton Sound red king crab fishery • GFC employed 1 resident on board the F/V Norton Sound • NSEDC funded the purchase and installation of a radio • 5 local fishermen participated in the 4D/4E CDQ Norton • 1 local fisherman participated in the CDQ Norton Sound repeater system for improved communications for the Sound halibut fishery red king crab fishery Norton Sound fisheries • Received $75,000 Community Benefit Share • 1 local fisherman participated in the Open Access Norton • NSEDC contributed $1,200 to the Junior High Boys Sound red king crab fishery Koyuk Basketball Program; $1,200 to the Junior High Girls • Received $75,000 Community Benefit Share • Danny Adams served as a Board Member Basketball Program and $1,266 to the Nome Pee Wee • NSEDC contributed $3,000 to the Aniguiin School for their • Ruby Nassuk served as a Community Outreach Liaison Basketball Program Little Dribblers Program • 1 resident was certified in Fisheries Safety Orientation • NSEDC contributed $555,000 to the City of Nome for the • NSEDC contributed $30,000 to the Elim-Shaktoolik-Koyuk Training under the EET Program Nome Port & Harbor Improvements Project (ESK) Commission for meeting and membership fees • GFC employed 2 residents on board the F/V Pacific Glacier • NSEDC contributed $238,418 to Kawerak, Inc. for the & F/V Northern Glacier Regional Conference, Eskimo Walrus Commission video Gambell • Received $75,000 Community Benefit Share project, Regional Wellness Forum, purchase of an ATV for • Gilbert Ungott served as a Board Member • NSEDC contributed $3,000 to the Koyuk Malemute School Fisheries Development, Salmon Enumeration Project, and • Shirley Antoghame served as a Community for their Little Dribblers Program snowmachine and winter gear Outreach Liaison • NSEDC Board of Directors approved funding for a winter • NSEDC contributed $30,000 to the Village of Solomon for • 1 resident completed an administrative internship trail staking project the construction of the multi-purpose facility sponsored by NSEDC • NSEDC contributed $30,000 to the Elim-Shaktoolik-Koyuk • NSEDC contributed $63,504 to Alaska Department of • 1 resident was certified in Fisheries Safety Orientation (ESK) Commission for meeting and membership fees Fish & Game for a herring aerial survey and salmon Training under the EET Program enumeration program • GFC employed 1 resident on board the F/V Pacific Glacier Nome • NSEDC contributed $108,903 to the Nome Fishermen’s • Received $75,000 Community Benefit Share • Don Stiles served as a Board Member and Association for the Hobson Creek Incubation • NSEDC contributed $3,000 to the Savoonga Polar Cubs for Sergeant-at-Arms Facility Program their Little Dribblers Program • NSEDC awarded academic scholarships to 59 residents • 14 residents completed internships with NSEDC, ADF&G St. Michael Golovin & Kawerak sponsored by NSEDC • Victor Joe served as a Board Member • Dean Peterson served as a Board Member and Secretary • 8 residents were certified in Fisheries Safety Orientation • Shirley Martin served as a Community Outreach Liaison
15 • 2 residents were certified in Fisheries Safety Orientation Basketball Dribblers for their Little Dribblers Program • NSEDC contributed $8,014 to Unalakleet Schools for Training under the EET Program • NSEDC contributed $15,670 to the City of Shaktoolik for exercise equipment • GFC employed 4 residents on board the F/V Northern winter trail staking • NSEDC approved $99,999 to the Native Village of Glacier and F/V Pacific Glacier • NSEDC contributed $30,000 to the Elim-Shaktoolik-Koyuk Unalakleet for a multi-purpose facility addition • Received $75,000 Community Benefit Share (ESK) Commission for meeting and membership fees • NSEDC contributed $30,000 to the Norton Sound Sled • NSEDC contributed $3,000 to the SMK Little Dribblers/Jr. • NSEDC contributed $7,500 to the Native Village of Dog Club for a building renovation project Storm for their Little Dribblers Program Shaktoolik for the construction of an emergency • NSEDC contributed $72,902 to the Native Village of • NSEDC contributed $20,000 to the Native Village of St. shelter cabin Unalakleet for the Watershed/JB Counting Tower Program Michael for installation of plumbing and electrical in the Cultural Center and Library Stebbins Wales • Hermes Dan served as a Board Member • Frank Oxereok, Jr. served as a Board Member Savoonga • Atha Foxie served as a Community Outreach Liaison • Victor Ongtowasruk & Joanne Keyes served as • Truman Kava served as a Board Member • NSEDC awarded academic scholarships to 2 residents Community Outreach Liaisons • Charlotte Kava served as a Community Outreach Liaison • 5 residents were certified in Fisheries Safety Orientation • Received $75,000 Community Benefit Share • NSEDC awarded academic scholarships to 4 residents Training under the EET Program • NSEDC contributed $3,000 to the Wales Seawolf Jammers • 1 resident was certified in Fisheries Safety Orientation • GFC employed 13 residents on board the F/V Northern for their Little Dribblers Program Training under the EET Program Glacier and F/V Pacific Glacier • Received $75,000 Community Benefit Share • GFC employed 1 resident on board the F/V Norton Sound White Mountain • NSEDC contributed $99,999 to the Native Village of • Norton Sound Ventures employed 1 resident on board the • Dan Harrelson served as a Board Member Savoonga for construction of a multi-purpose facility F/V Pacific Star and Vice-Chairman • NSEDC contributed $3,000 to the Savoonga Husky Pups • Received $75,000 Community Benefit Share • Davis Lincoln served as a Community Outreach Liaison for their Little Dribblers Program • NSEDC contributed $3,000 to the Stebbins Snowy Owls • NSEDC awarded academic scholarships to 7 residents • NSEDC contributed $20,000 to the City of Savoonga for a and the Stebbins White Owls for their Little Dribblers • 3 residents completed internships with NSEDC and boat landing project Program ADF&G sponsored by NSEDC • NSEDC approved $45,516 for the City of Savoonga • NSEDC contributed $97,000 to the City of Stebbins for the • 2 residents were certified in Fisheries Safety Orientation to purchase and install a search and rescue purchase and shipping of a full-service truck in lieu of the Training under the EET Program communications system boat ramp project • GFC employed 2 residents on board the F/V Pacific Glacier • NSEDC contributed $27,500 to the Stebbins Community • 1 local fisherman participated in the NSEDC CDQ Norton Shaktoolik Association IRA Council for a water and sewer haul system Sound red king crab fishery • Harvey Sookiayak served as a Board Member in the multi-purpose facility • 1 local fisherman participated in the YDFDA CDQ Norton and Treasurer Sound red king crab fishery • Reuben Paniptchuk served as a Community Teller • 1 local fisherman participated in the 4D/4E CDQ Norton Outreach Liaison • Isaac Okleasik Jr. served as a Board Member Sound halibut fishery • NSEDC awarded academic scholarships to 4 residents. • Sarah Okbaok served as a Community Outreach Liaison • 1 local fisherman participated in the Open Access Norton • 1 resident completed an internship with GFC sponsored • NSEDC awarded academic scholarships to 2 residents Sound red king crab fishery by NSEDC • GFC employed 1 resident on board the F/V Northern Glacier • Received $75,000 Community Benefit Share • 4 residents were certified in Fisheries Safety Orientation and F/V Pacific Glacier • NSEDC contributed $3,000 to the White Mountain Wolf Training under the EET Program • Received $75,000 Community Benefit Share Pups for their Little Dribblers Program • GFC employed 3 residents on board the F/V Northern • NSEDC contributed $3,000 to the Shaktoolik Elementary • NSEDC contributed $5,775 to the Native Village of White Glacier & F/V Pacific Glacier Basketball Dribblers for their Little Dribblers Program Mountain for a Rural Camp Fire USA program • GFC employed 1 resident on board the F/V Glacier Bay • NSEDC funded the purchase and installation of a radio • GFC employed 1 resident on board the F/V Norton Sound Unalakleet repeater system for improved communications for the • 12 local fishermen participated in the Norton Sound • Henry Ivanoff, Sr. served as a Board Member and Chairman Norton Sound fisheries salmon fishery • NSEDC awarded academic scholarships to 35 residents • 1 local fisherman participated in the NSEDC CDQ Norton • 2 residents completed internships with NSEDC and NVU Sound red king crab fishery sponsored by NSEDC • 1 local fisherman participated in the YDFDA CDQ Norton • 7 residents were certified in Fisheries Safety Orientation Sound red king crab fishery Training under the EET Program • 6 local fishermen participated in the Open Access Norton • GFC employed 3 residents on board the F/V Northern Sound red king crab fishery Glacier and F/V Pacific Glacier • 2 local fisherman participated in the 4D/4E CDQ Norton • Icicle Seafoods employed 1 resident Sound halibut fishery • 28 local fishermen participated in the Norton Sound • Received $75,000 Community Benefit Share salmon fishery • NSEDC contributed $142,801 to the Native Village of • 3 local fishermen participated in the NSEDC CDQ Norton Shaktoolik IRA to build a permanent campsite for the Sound red king crab fishery Youth and Elders Fish Camp Program • 1 local fisherman participated in the YDFDA CDQ Norton • NSEDC contributed $21,390 to the Native Village of Sound red king crab fishery Shaktoolik for the annual Youth and Elders Camp • 3 local fishermen participated in the Open Access Norton • NSEDC contributed $103,265.35 to the City of Shaktoolik Sound red king crab fishery for the purchase and shipping of a front-end loader in • 1 local fisherman participated in the 4D/4E CDQ Norton lieu of the boat ramp project Sound halibut fishery • NSEDC approved $99,999 to the Native Village of • Received $75,000 Community Benefit Share Shaktoolik for construction of a multi-purpose facility • NSEDC contributed $3,000 to the Unalakleet Wolf Pups • NSEDC contributed $3,000 to the Shaktoolik Elementary for their Little Dribblers Program Snow steps in Diomede
116 Norton Sound Economic Development Corporation is a private non-profit corporation representing 15 member communities and over 8,493 people in the Bering Straits region in Northwestern Alaska. NSEDC is one of six Community Development Quota (CDQ) Program organizations in Alaska.
NSEDC was originally incorporated in 1989 for the purpose of promoting economic development primarily for the Norton Sound area. In 1992, NSEDC restructured to become eligible as an applicant representing the Norton Sound region in the CDQ Program. NSEDC was successful in this endeavor, receiving 20% of the initial allocation of Pollock to the CDQ Program (7.5% of the Total Allowable Catch or TAC). Subsequent allocations received by NSEDC were 22% in 1995-1999 (at which point the American Fisheries Act was enacted increasing the CDQ reserves of pollock to 10% of the TAC), and 23% in 2000-2002. In the latest allocation cycle, 2003-2005, NSEDC received a 22% CDQ allocation of pollock.
Participants of the Martin L. Olson Healthy Activities Basketball Camp funded through the NSEDC Alcohol and Substance Abuse Prevention Program. Front Row (left to right) Molly Moses, Tani Esparza, John Peterson, Peter Olsen, Edward Bekoalak, Jr. Back Row (left to right) Chad Bekoalok, Mike Daniels, Amanda Moses, Alice Amaktoolik, Renatta Olson, Thomas Amaktoolik, Emily Henry, Chelsea Fagerstrom, Brook Nagaruk, Oswald Moses and Hank Henry. Camp Coach: Mike Hajdukovich 1 Norton Sound Economic Development Corporation PRSRT STD 420 L Street, Suite 310 US Postage Anchorage, AK 99501 Phone: (907) 274-2248 or (800) 650-2248 PAID Fax: (907) 274-2249 Anchorage AK Website: www.nsedc.com Permit 00615
Norton Sound Economic Development Corporation Education, Training & Employment Office P.O. Box 193 Unalakleet, AK 99684 Phone: (907) 624-3190 or (800) 385-3190 Fax: (907) 624-3183
Norton Sound Seafood Products P.O. Box 323 Unalakleet, AK 99684 Phone: (907) 624-3014 Fax: (907) 624-3808
Norton Sound Seafood Center P. O. Box 906 Nome, AK 99762 Phone: (907) 443-2304 Fax: (907) 443-2457
Norton Sound Fisheries Research & Development P.O. Box 358 Nome, AK 99762 Phone: (907) 443-2477 Fax: (907) 443-2478