Petsmart and Red Robin Franchises Open at Tikahtnu Commons
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volume 35 issue 11 december 2010 PetSmart and Red Robin franchises Committee looks ahead to 40th open at Tikahtnu Commons anniversary of Image courtesy of CIRI of courtesy Image ANCSA ANCSA @ 40 committee’s goal is to educate and honor The 40th anniversary of the Alaska Native Claims Settlement Act (ANCSA) is fast approaching. Dec. 18, 2011 will mark 40 years since the landmark legislation was passed on Dec. 18, 1971. An ad-hoc committee called ANCSA@40 has formed in anticipation of this milestone. The committee is affiliated with the Alaska Humanities Forum and is funded by a mini- grant from the National Endowment for the Humanities. It is made up of diverse group of Alaskans, including CIRI shareholder Willy Templeton, Director of Native Student Services at the University of Alaska, The new PetSmart location held its grand opening Dec. 18. PetSmart offers a variety of services for pet owners. Anchorage (UAA), who helped form the committee with Irene Rowan. PetSmart and Red Robin have opened their doors PetsHotel, PetSmart Grooming, PetSmart Training at Tikahtnu Commons, a CIRI and Browman and PetSmart Doggie Day Camp are convenient The committee plans to conduct a series Development Co.-owned entertainment shopping for people living in the Matanuska-Susitna Valley, of forums throughout the year to inform district in east Anchorage. Tikahtnu Commons Eagle River, Chugiak, Anchorage and at the Joint people, particularly young people, about is also home to Target, Regal Cinemas, Lowe’s, Base Elmendorf-Richardson.” this landmark legislation. In addition, the Best Buy, Sports Authority and numerous other ANCSA @ 40 Committee will gather stories, retailers and dining establishments. PetSmart held its grand opening Dec. 18, just in photographs and other documentation to time for holiday shopping. To learn more about create additional publications. “We are excited to be in such a great location,” PetSmart visit www.petsmart.com. said PetSmart General Manager Cory Otheim. continued on page 5 “Our services for pet owners, such as our PetSmart The new Red Robin restaurant replaces the former Cox Rose Newspapers, Alaska of courtesy Image continued on page 5 CLDC, Weidner Apartment Homes partner on four new projects Weidner specializes in multi-family apartment rental housing Image courtesy of Weidner Apartment Homes Apartment Weidner of courtesy Image CIRI has partnered with Weidner Apartment Homes, a real estate investment, development and CIRI Director Roy Huhndorf presents an management company that specializes in multi- Athabascan chief’s necklace to Don Wright family rental housing to pursue high-quality real at the ANCSA @ 40 panel discussion Nov. estate investments. CIRI chose Weidner Apartment 16 at the Loussac Library in Anchorage. Homes for its solid company performance history and portfolio of well-maintained and managed apartment homes. CIRI will be closed in observance of the following upcoming holidays: CIRI and Weidner Apartment Homes recently NEW YEAR’S EVE acquired four multi-family properties located in Friday, Dec. 31, 2010 Arizona that offer premium apartment homes for renters in the Tucson and Phoenix areas. CIRI The Ocotillo Springs property offers residents apart- NEW YEAR’S Day ment homes with contemporary interiors and resort- Monday, Jan. 3, 2011 continued on page 6 style amenities. CIRI is on Facebook! Get the latest CIRI news and updates at facebook.com/cirinews PRESIDENT’S MESSAGE 2 CIRI SPOTLIGHT 3 MISSING SHAREHOLDERS 5 OUR BUSINESS 2 NONPROFIT NEWS 4 CONDOLENCES 6 SHAREHOLDER NEWS 3 IN TOUCH 5 raven’scircle 2 A word from the president Challenging economy slows business, creates growth opportunities By: Margie Brown, CIRI president and CEO I extend my wishes for a happy and fulfilling new year to all CIRI good year in 2011 for the North Wind shareholders. As 2010 comes to a close, it is a good time to reflect upon the group of companies under Medina’s past year and anticipate the next. leadership. Two years have passed since global investment markets crashed, sending Looking forward, economic growth is waves of economic devastation around the world. Billions of dollars of value likely to remain slow nationwide and drained out of private equity, venture capital and securities investments; from uncertainty continues to challenge individual retirement accounts to corporate and institutional portfolios. Many individuals and businesses alike. U.S. housing and real estate markets collapsed. And millions of Americans lost Our Board and executive team are Margie Brown their jobs. paying close attention to the real estate sector, which continues to suffer, though more so in the other 49 states Those turbulent times remain fresh in my memory. Due to CIRI’s long- than here in Alaska. While this business sector causes challenges, it creates range planning and well-diversified business portfolio, CIRI persevered and business opportunities as well. In 2010, CIRI partnered with Dean Weidner remains a financially strong company. Our company has structured itself with Apartment Homes to acquire Class A multi-family residential properties in the resources needed to endure short-term revenue drops caused by weak Phoenix and Tucson, Ariz., where current and anticipated future prices are economic conditions. And it is positioned to take advantage of investment and uncharacteristically attractive because of distressed economic conditions. growth opportunities created by economic turmoil. CIRI has allocated additional resources to multi-family residential properties, in hopes that favorably-priced properties may come available in additional While economists tell us that the recession is technically over and our markets in 2011. We anticipate it will take a couple of years for net income company’s marketable securities portfolio has regained its value, the from these purchases to exceed depreciation, but they already have begun to a national economy remains fragile. Nevertheless, some excellent investment produce positive cash flow. opportunities are emerging for financially strong investors with long-term business models. CIRI is pursuing some of these and making investments that For CIRI Alaska Tourism Corp. (CATC), CIRI’s wholly-owned Alaska tourism promise to produce substantial future growth in new and emerging business subsidiary, 2010 turned out to be a better year than initially anticipated. sectors, though it will likely take a few years before we see the full benefit of CATC’s marine tour, lodging and booking businesses were rocked by Alaska’s our strategy. I cannot overstate the importance of planning and building for severe tourism decline in 2009 as many travelers reacted to economic hard the future. That is why CIRI’s Board of Directors and executive team have times by vacationing near their homes. However, CATC Chief Operating embraced very ambitious goals that the company is working hard to achieve. Officer Paul Landis and his management team refined their marketing efforts and operations, targeting more independent traveler business, which CIRI is building value with a combination of remarkable development produced a strong economic performance for CATC in 2010. Under Landis’ projects. The company is balancing long-term development investments strong leadership, CATC will be ready for what the 2011 season may bring. like the Stone Horn Ridge underground coal gasification project with such investments as the late-2009 North Wind Inc. purchase meant to generate CIRI will issue a complete review of this year’s financial performance in near-term cash flow and income. its 2010 annual report in the second quarter of 2011. In the meantime, the company will continue to carefully select new investments that balance North Wind is a well–established environmental remediation, project between future growth and current cash flow and income. CIRI and other management and construction services provider that is generating substantial businesses nationwide are adjusting to changed economic norms that will cash flow as well as long-term growth potential as a CIRI-owned company. make some pre-recession business successes difficult to repeat. Consequently, CIRI executives worked throughout 2010 with North Wind President and CIRI faces a challenging year in 2011. But the economy is recovering and Chief Executive Officer Sylvia Medina and her talented management team to creating new investment opportunities for CIRI that, with a little patience, ensure that our two companies made a smooth acquisition. This work paid off. promise to generate sustainable growth and profitability that will benefit both CIRI is pleased with North Wind’s 2010 performance and anticipates another current and future generations of CIRI shareholders. Penny L. Carty, Aleut, Erik I. Frostad, Athabascan Charles G. Anderson, Aleut, Thomas P. Huhndorf, Yup’ik, Assistant Treasurer Chairman Secretary Jeffrey A. Gonnason, Haida Hallie L. Bissett, Athabascan CIRI Board Roy M. Huhndorf, Yup’ik, Michael R. Boling, Athabascan, Katrina M. (Dolchok) Jacuk, Aleut Chairman Emeritus Treasurer B. Agnes Brown, Athabascan of Directors Ted S. Kroto Sr., Athabascan Patrick M. Marrs, Aleut, Douglas W. Fifer, Tlingit, Rolf A. Dagg, Yup’ik Vice Chairman Assistant Secretary Louis “Lou” Nagy Jr., Yup’ik Our Business Did you know? Fireweed Theatre acquisition • A CIRI survey this month shows that 9 out of 10 Railbelt residents say it is very important to develop CIRI Land Development Co. (CLDC) acquired full ownership of the local energy resources site of the former Fireweed Theatre in late November. CLDC plans to develop the 8.36-acre site into office space. • The same survey shows that more than 9 out of 10 residents say it is very important to have stable- priced power in the region North Wind Inc. pairs with company to combine expertise and technology • Almost 8 out of 10 residents either oppose or strongly oppose the idea of importing liquefied North Wind Inc., a CIRI company, recently entered into natural gas (LNG) into the region. The Fire Island a strategic business alliance agreement with Thermal wind project would offset up to 1.5 billion cubic Remediation Services Inc., a Longview, Wash.-based feet (bcf) of natural gas burn annually used for company.