Kenai Peninsula Borough Comprehensive

Transcription

Kenai Peninsula Borough
Comprehensive Economic Development Strategy
Kenai Peninsula Economic Development District
2010
Acknowledgement
The preparation of this report was financed in part by funds received from the U.S. Department of Commerce, Economic Development Administration, State of
Alaska, Department of Commerce, Community and Economic Development, and the Kenai Peninsula Borough.
TABLE OF CONTENTS
Section I: Introduction-------------------------------------------------------------------------------------------------------------------------------------------Section II: State Economic Overview--------------------------------------------------------------------------------------------------------------------Section III: Kenai Peninsula Borough Economic Overview---------------------------------------------------------------------------------Section IV: Community Overviews –The Central Peninsula-------------------------------------------------------------------------------Clam Gulch---------------------------------------------------------------------------------------------------------------------------------------------------------Cohoe----------------------------------------------------------------------------------------------------------------------------------------------------------------Funny River--------------------------------------------------------------------------------------------------------------------------------------------------------Kalifornsky---------------------------------------------------------------------------------------------------------------------------------------------------------Kasilof----------------------------------------------------------------------------------------------------------------------------------------------------------------Kenai-----------------------------------------------------------------------------------------------------------------------------------------------------------------Nikiski----------------------------------------------------------------------------------------------------------------------------------------------------------------Ridgeway-----------------------------------------------------------------------------------------------------------------------------------------------------------Salamatof----------------------------------------------------------------------------------------------------------------------------------------------------------Soldotna------------------------------------------------------------------------------------------------------------------------------------------------------------Sterling---------------------------------------------------------------------------------------------------------------------------------------------------------------
Section V: Community Overviews – The Southern Peninsula----------------------------------------------------------------------------Anchor Point-------------------------------------------------------------------------------------------------------------------------------------------------------Diamond Ridge---------------------------------------------------------------------------------------------------------------------------------------------------Fox River------------------------------------------------------------------------------------------------------------------------------------------------------------Fritz Creek----------------------------------------------------------------------------------------------------------------------------------------------------------Happy Valley------------------------------------------------------------------------------------------------------------------------------------------------------Homer---------------------------------------------------------------------------------------------------------------------------------------------------------------Kachemak City----------------------------------------------------------------------------------------------------------------------------------------------------Nanwalek-----------------------------------------------------------------------------------------------------------------------------------------------------------Nikolaevsk----------------------------------------------------------------------------------------------------------------------------------------------------------Ninilchik--------------------------------------------------------------------------------------------------------------------------------------------------------------
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Port Graham-------------------------------------------------------------------------------------------------------------------------------------------------------Seldovia-------------------------------------------------------------------------------------------------------------------------------------------------------------Seldovia Village----------------------------------------------------------------------------------------------------------------------------------------------------
Section VI: Community Overviews – The Eastern Peninsula------------------------------------------------------------------------------Bear Creek----------------------------------------------------------------------------------------------------------------------------------------------------------Cooper Landing---------------------------------------------------------------------------------------------------------------------------------------------------Hope------------------------------------------------------------------------------------------------------------------------------------------------------------------Lowell Point--------------------------------------------------------------------------------------------------------------------------------------------------------Moose Pass--------------------------------------------------------------------------------------------------------------------------------------------------------Seward----------------------------------------------------------------------------------------------------------------------------------------------------------------
Section VII: Community Overview – The Western Side of the Borough-----------------------------------------------------------Beluga----------------------------------------------------------------------------------------------------------------------------------------------------------------Tyonek----------------------------------------------------------------------------------------------------------------------------------------------------------------
Section VIII: Borough-Wide Capital Improvement and Issue List----------------------------------------------------------------------Section IX: Regional Economic Development Strategy--------------------------------------------------------------------------------------Appendix A: Kenai Peninsula Gap Analysis Study-----------------------------------------------------------------------------------------------
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Section I: Introduction
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Preface
The Kenai Peninsula Borough is rich in diversity. With a geographic area of 16,000 square miles, the Borough is as large as Massachusetts and
Connecticut combined. Four cities dominate the Borough: Kenai and Soldotna in the Central Peninsula are the industrial and business heart of
the Borough, Seward in the Eastern Peninsula is the transportation hub of the Borough, and Homer in the Southern Peninsula is the cultural
center of the Borough. Outlying and unincorporated communities across the Borough also have their own unique identity, history, strengths,
and opportunities for growth.
This Comprehensive Economic Development Strategy (CEDS) was created by the Kenai Peninsula Economic Development District through an
AmeriCorps VISTA grant with the Economic Development Administration. It is the culmination of the year-long assignment coordinated by
Thomas Sloan. This purpose of this plan is to:
1.
2.
3.
4.
5.
Prioritize important community concerns;
Create a shared vision for the Kenai Peninsula Borough;
Protect valuable human and natural resources;
Provide a comprehensive outlook of the strengths and weaknesses throughout the Kenai Peninsula Borough;
Guide development in an orderly and predictable manner.
Information from this report comes from a variety of firsthand sources throughout the Borough. In the winter and spring of 2010, the Kenai
Peninsula Economic Development District developed a Gap Analysis Survey in order to identify any barriers to growth or economic development
throughout the Borough. Through the survey, 327 businesses and individuals across the Borough gave their opinions and beliefs about the
strengths and opportunities in their respective communities, the Kenai Peninsula Borough, and the state of Alaska. Industry forums, city officials,
town hall meetings, economic development groups, and speakers at local Chambers of Commerce also had input into this strategy document. In
addition, statistics taken from the Alaska Department of Labor and Workforce Development supplement the findings in this document.
Mission
Development and implementation of the Kenai Peninsula Borough Comprehensive Economic Development Strategy will benefit all communities
throughout the Borough by providing a broad understanding of the business climate and environment of the Kenai Peninsula Borough.
Collaboration between the Kenai Peninsula Economic Development District, local governments, private enterprise, individual citizens, non-profit
organizations, and Native Organizations will foster a sound and shared business community of with an emphasis on year-round employment, a
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skilled workforce, and economic growth. The diverse economy of the Kenai Peninsula Borough will be prepared to overcome state and national
economic challenges.
Organization
The Kenai Peninsula Economic Development District, Inc. (KPEDD) is located in Kenai, Alaska, in the heartland of Southcentral Alaska. The
District’s boundaries correspond to the geographical boundaries of the Kenai Peninsula Borough. KPEDD’s mission is to provide leadership in
enhancing, fostering, and promoting responsible and sustainable economic development.
The first Overall Development Program for the Kenai Peninsula Borough was developed in 1971, and, in 1980, the Kenai Peninsula Borough
Resource Development Commission was established to serve in an advisory capacity to the Kenai Peninsula Borough on economic issues and to
continue regional economic planning. The Borough Assembly and the Borough administration worked in partnership with municipalities and the
Kenai Peninsula Resource Conservation and Development District to create a nonprofit economic development district, KPEDD, in 1988. KPEDD,
a 501c(4), also has a sister organization, Kenai Peninsula Opportunities (KPO), a 501c(3) nonprofit.
In 1989, KPEDD was the first organization in Alaska to receive the designation as an Alaska Regional Development Organization (ARDOR). With
this status, KPEDD became eligible for funding assistance from the State of Alaska to further regional economic development goals.
The KPEDD Board of Directors is structured to comply with the U.S. Department of Commerce, Economic Development Administration (EDA),
and Alaska state requirements. The Board includes elected officials from the Kenai Peninsula Borough and the cities of Kenai, Soldotna, Seward,
Homer, and Seldovia. Also on the Board are business leaders across the Borough, representing the economic sectors of the region. There is also
representation of minority groups and the under-employed and underserved sector. Current staff includes an Executive Director, a Programs
Manager, and an AmeriCorps VISTA member.
KPEDD has received planning grants with the EDA and the Alaska Department of Commerce, Community and Economic Development. KPEDD
also has a contract with the Kenai Peninsula Borough. The organization augments these funding sources with project-specific grant programs,
rental income from operating a 20,000 square foot Business Innovation Center, which includes a 6,000 square foot warehouse, grant
administration fees earned by administering grants for other groups, fees from the operation of two revolving loan funds, and some corporate
donations. Generous sponsors help fund community economic forums.
Board of Directors and Staff
The following individuals make up the Kenai Peninsula Economic Development Board of Directors and staff:
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Board Members
Kristine Holdridge, President
Peter Micchche, Vice President
Sal Mattero, Secretary
Diana Spann, Treasurer
Andy Patrick
Dave Durham
Barry Eldridge
Fred Esposite
Tim Dillon
Ron Long
Hal Smalley
Tom Smith
Cheryle James
Chris Story
Bryan Zak
Appointee
KPEDD Appointee – Soldotna
City of Soldotna Official, Mayor
KPEDD Appointee – Kenai
KPEDD Appointee – Under/Unemployed
KPEDD Appointee – Minority Representative
KPEDD Appointee – Borough
City of Kenai Official, City Councilman
KPEDD Appointee – Seward
City of Seldovia Official, City Manager
Borough Official
Borough Official
City of Seward Official, City Councilman
KPEDD Appointee – Borough
KPEDD Appointee – Homer
City of Homer Official, City Councilman
Staff Members
John Torgerson, Executive Director
Dee Gaddis, Programs Manager
Thomas Sloan, AmeriCorps VISTA
Area Economic Development Organizations
As a result of economic troubles in the mid-1980s, citizens of the Borough have formed many economic development task forces, groups, and
departments. In addition to KPEDD, the following groups in the Borough keep economic development or business growth as a primary focus.
Chambers of Commerce in Kenai, Soldotna, Homer, Seldovia, Seward, and Cooper Landing aim to increase economic activity in their respective
cities, promote their cities as business locations, and increase business opportunities for their members. In addition, the Chambers in Soldotna,
Seward, Seldovia, and Homer act as visitor centers for their communities. Homer’s Chamber also houses a Business Resource Center. While
lacking resources and staff, local governments in small communities pursue economic development goals as well.
The Alaska Small Business Development Center (SBDC) provides business assistance to new and growing businesses throughout the Borough.
Services include free, confidential, one-on-one counseling, and low and no cost seminars. In addition, the SBDC provides a one-stop shop for
small businesses with specialty assistance programs on government contracting, counseling on research and technology grants, and a buyers and
sellers network for Alaska. An extensive resource library and Internet access is available to the public.
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The Kenai Peninsula Resource Conservation and Development District (RC&D) assists the Borough’s unincorporated communities in addressing
social, economic, and environmental issues. In recent years, the RC&D has been involved in community development, land conservation, and
water quality/quantity related projects. The RC&D has provided technical and financial assistance for the development of community planning
efforts for many of the region’s unincorporated communities.
The Kenai Peninsula Tourism Marketing Council (KPTMC) is a cooperative regional marketing organization that promotes the Peninsula as a
year-round destination. It produces a much-requested travel planner to many meaningful locations both inside and outside of Alaska. KPTMC
markets the entire Kenai Peninsula and is often the sole tourism voice for the smaller rural communities.
The Kenai Visitors & Cultural Center, managed by the Kenai Convention & Visitors Bureau, promotes Kenai as a visitor destination and serves as
the community cultural center. The center houses an impressive permanent collection of Native Alaskan and historical artifacts, wildlife exhibits,
and is one of the most visited public buildings in the entire Kenai Peninsula.
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Section II:
State Economic Overview
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Alaska Economic Overview
Overview
Historically, economic hardships in the Lower 48 have created a unique climate in Alaska. Over the last 21 years, Alaska has survived two
national recessions without serious disruption to its own economy. The State’s resource-based economy was strong and young enough in its
development to continue recording job growth for 22 consecutive years, even when the nation saw net employment losses.
In relative terms, the recession was late to arrive in Alaska. At the time, many economists wondered if that meant the bulk of Alaska’s losses
were still to come in the future. However, this did not appear to be the case. The sub-prime mortgage collapse did not hurt Alaska like it did the
Lower 48, and Alaska does not employ nearly the number of manufacturing jobs that the nation has shed over the past few years. As a result,
Alaska weathered the recession of 2009 rather well, and the state will be an integral participant in the global recovery.
However, Alaska’s economy has been slowly downshifting. This is driven, in part, due to a reduction in Alaskan dollars from fewer tourists, oil
well drilling, and payments to fish harvesters. Weak consumer confidence and increased caution by investors and borrowers also contributed to
the psychological factors behind the slowdown. Of all 50 states, Alaska had the largest decline in Real GDP in 2008, declining by (-2.0 percent),
caused mainly by a decline in petroleum extraction.1 The job loss initially was concentrated in tourism, transportation and petroleum, but
eventually effected the construction, retail trade, and service industries as well. The smaller Permanent Fund Dividend in 2009 impacted retail
sales in Alaska, as well.
Oil and Gas
Alaska is dependent on oil production, prices, and exploration more than any other facet of the economy. Natural resource development brings
new money into Alaska and pays for a large portion of the state government budget. The industry serves as a stabilizing force on Alaska’s
economy, accounting for 45% of the Gross State Product and 13.4% of the U.S. domestic oil and gas production. A recent analysis by the
University of Alaska Anchorage showed that the oil industry supports as many as 110,000 jobs in Alaska.
However, state revenues are sensitive to volatile prices, and production levels have been in decline for 20 years. Alaska daily oil production in
2009 fell to an average of 692,127 barrels per day (bpd), a figure less than one-third the level of the industry’s peak production of 2.1 million bpd
in 1988.2 The havoc on oil prices also had a major impact on the Alaskan economy – in July 2008 oil was nearly $150 per barrel, and by December
2008 it had fallen below $30. The global economic slowdown has caused some projects to be delayed and others postponed. State economists
predict this troubling trend to continue at an average rate of 6% per year over the next decade.3
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Oil and Gas Projects with a Positive Outlook
The Anchorage Economic Development Corporation, in conjunction with partnerships around the state, developed a comprehensive list of 2010
oil and gas projects with a 50/50 or better opportunity of progressing. There are a number of challenges that could delay or cancel any or all of
these projects, but the list is as follows:
Alaska North Slope Natural Gas Pipeline Project is a $20-$30 billion natural gas pipeline to Alberta. Two competing open season processes
occurred in 2010, and if the project moves forward, the state could see 7,500 construction jobs and 500 operational jobs in the next decade.
North Slope Natural Gas Spur/Bullet Pipeline to the Cook Inlet efforts center around the development of a commercially viable pipeline
connection to the Cook Inlet due to increasing pressure on Cook Inlet gas deliverability and declines in proven reserves. Approximately 2,000
construction jobs and 150 operational jobs would be created if the project is successfully constructed.
Armstrong Cook Inlet LLC North Fork Unit has a suggested field between 7.5 billion and 12.5 billion cubic feet of gas, with the possibility of up to
60 billion. The construction and development phase expects to employ 150 people, with operating expecting to employ 20 people.
Enstar’s southern Kenai Peninsula Bullet Line is intended to hook up the North Fork gas field to the Enstar Natural Gas system in Ninilchik,
where the gas would enter the Kenai-Kachemak Pipeline. Construction expects to create 250 jobs, with the need for 8 jobs for operation.
BP’s Liberty Oil Field Development is currently under construction under federal waters in the Beaufort Sea. The field has an estimated 1,250
jobs by construction and 300 jobs created by drilling starting in spring 2010.
Eni Nikaitchuq Oil Field Development is poised to become the first field that processes its own oil resources in northern Alaska that is operated
outside of Alaska’s ‘Big 3’ producers (BP, ConocoPhillips, and Exxon). The field expects a total of 1,200 jobs created by development and 140 jobs
by operations.
ConocoPhillips Greater Mooses Tooth Unit Development the two phases of development are expected to bring between 18 and 35 wells. 245
jobs are expected to be created by each of the satellites, with 10 jobs expected to be created by the operation of each satellite.
ConocoPhillips Alpine Satellite CD-5 expects to create 245 development and construction jobs and 10 production jobs by using existing
personnel at the Alpine processing center.4
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Tourism
Tourism is a large industry in Alaska due to the majestic mountains, glaciers, and wildlife. The industry has grown steadily since the 1960s, and
has experienced sharp growth over the last two decades. Between 1990 and 2006, the number of tourists visiting Alaska in the summer more
than doubled to nearly 1.6 million. In 2008, visitors spent $1.8 billion in Alaska. Combined with transportation to Alaska and land-based cruise
tours, the estimated economic impact of Tourism in Alaska is $3.4 billion and 40,000 jobs.5
The cruise ship industry is a major sector of Alaskan tourism. Approximately 60% of tourists to Alaska arrive by cruise ship, and 40% of those
passengers make a return trip to the state. In any given year, the cruise industry will contribute between 4% and 5% of the entire Alaskan
revenue. In 2009, over a million passengers arrived to the state by cruise ship. 6
The national recession had a major impact on tourism throughout Alaska. US vacationers took as many trips in 2009, but trips were increasingly
frugal, shorter, and closer-to-home. In May 2009, statistics show declines between 10% and 25% in arrivals at Ted Stevens Anchorage
International Airport, in bookings along the Alaska Railroad, and in hotel tax revenues. Alaska saw 100,000 fewer cruise ship passengers, and
halibut trips into the Cook Inlet decreased by 20%. Preliminary estimates predict there could be 140,000 fewer passengers in 2010 due to
announced reductions by the major cruise lines in the state. According to the cruise ships, this reduction is partially due to an addition of a $50
head tax, corporate income taxes, higher gaming taxes, stricter environment regulations, and the subsidy of a State Ocean Ranger program.
These changes have made other global destinations more attractive to the large cruise lines.7
Through mid-June 2010, tourism numbers were up 25% from the same time in 2009. Out-of-state and international travelers have also
increased, leading many to believe that the economy is coming out of the recession.8 New growth is expected in the international market,
specifically consumers from South America and India, which already accounts for 10% of Alaska’s tourism revenue.9
Mining
Alaska’s mining industry includes exploration, development, and production of coal, gold, lead, silver, and zinc, as well as construction materials.
Mining has played an important role in Alaska’s history, and today the industry continues to be a growing force in the state of the economy.
Since 1990, the state of Alaska has added four world-scale mines, helping offset the losses to the fishing and timber industries.
In 2009, mining provided 3,300 direct jobs, 5,200 total jobs and $320 million in payroll to Alaskans. The industry paid $35 million to the state
government through royalties, leases, and taxes, $12.3 million to local governments, and $39.8 million to Alaska Native Corporations. Mining
provides year-round, high-paying jobs for residents in more than 120 communities throughout Alaska. As one of the few industries in Alaska,
Mining jobs have been on a steady climb since 2004.10
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Mining Projects with a Positive Outlook
The Anchorage Economic Development Corporation, in conjunction with North of 60 Mining, developed a comprehensive list of 2010 mining
projects with a 50/50 or better opportunity of progressing. There are a number of challenges that could delay or cancel any or all of these
projects, but the list is as follows:
Kensington Gold Mine is located about 45 miles northwest of Juneau. Once in production, the mine will employ about 200 people and produce
about 140,000 ounces of gold per year over a 12.5-year mine life.
Rock Creek Gold Mine began production in September 2008 with an estimated 500,000 ounces of gold in the main pit. Once in production, Rock
Creek is expected to employ about 150 people.
Donlin Creek Gold Mine reported an estimate of 31.7 million ounces of measured and indicated resources making for a 21-year mine life.
Construction and infrastructure for the mine is expected to be $4.84 billion, and a workforce of at least 1,500 will be needed during construction
and about 700 during operation.
Pebble Mine reports an estimate of 48 billion pounds of copper, 57 million ounces of gold, and 2.9 billion pounds of molybdenum. In addition,
infrared deposits have an inferred resource containing 24 billion pounds of copper, 37 million ounces of gold, and 1.9 billion pounds of
molybdenum. A workforce of 2,000 to 4,000 is expected to be required during construction, with around 1,000 employees needed during the
50-plus year mine life.
Livengood Gold Mine, about 70 miles north of Fairbanks, has a resource of 12.5 million ounces of gold. Manpower of the mine is expected to be
around 500 employees.
Chuitna Coal Project is a coal mining and export development about 45 miles west of Anchorage. The project predicts a 25-year mine life with a
production rate up to 12 million tons a year.
Nixon Fork Gold Mine is a small high-grade gold mine which will employ between 50 and 75 people.11
Government
Despite the declines in overall economic performance in recent years, growth has come from the government sector. This is in contrast to many
other states that are facing major budgeting shortfalls. Federal spending in Alaska is high, relative to the population, for several reasons, among
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which are a large military presence, huge federal land holdings, federal health-care programs for Alaska Natives, and continuing construction of
basic infrastructure. Federal government provides for nearly 1/3 of the economic activity in the state of Alaska. Military and civilian dollars have
doubled in both real terms and purchasing power from 1990 to 2008, from $5 billion to $10 billion.12
Fishing
In recent years, the fishing industry in Alaska accounted for nearly 57,000 jobs, over $65 million for the State of Alaska, and over half of the
nation’s seafood landings. Fisheries in Alaska have been lauded as one of the world’s largest renewable resources. Uniquely, Alaska produces
nearly 80% of wild coho, sockeye, and king salmon for the world, and continues to support wild fisheries, not allowing farmed fish. Projection for
Alaskan salmon harvest in 2009 was 175 million fish.
Construction
The construction industry has been hurt significantly by the economic slowdown in Alaska. As a result of low consumer confidence and the
bursting housing bubble, the industry experienced a slowdown in both commercial and private building in 2009. The slowdown in new
residential building has led to a construction sector decline. Public construction projects have helped sustain the industry; however,
government-funded projects are primarily focused on transportation projects rather than buildings. Generally speaking, structural building
employs more people than roadway construction. The workforce for the industry dropped 6.4% between December 2008 and December 2009, a
loss of 1,100 jobs.13
Transportation & Air Cargo
Employment in transportation at Ted Stevens International Airport was down in 2009. Over the year, there was a sharp decline in international
cargo flights that stopped for refueling and servicing. This, coupled with the drop in tourism, cut a number of jobs. In early 2010, between 50 and
100 additional air transportation workers lost jobs due to the shutdown of Northwest Airlines’ cargo hub in Anchorage.14
Forestry and Timber
Historically, the Forestry and Timber industry has been an important contributor to the Alaskan economy. In the past two decades, however, the
industry has been in sharp decline. Alaska has experienced political and economic pressures, increased federal land withdrawals, a more
stringent regulatory climate, and environmental lawsuits for the closure of Southeast Alaska’s two pulp mills. Logging and Wood Products
employment remains a mere shadow of its recent past state, falling from 4,600 jobs in 1990 to only 200 Logging jobs and 400 Forest Products
jobs today. Annual payroll lost since 1990 is well over $100 million.
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Unemployment
For the first time in nearly 30 years, the Alaska unemployment rate was better than the U.S. rate for the entire year in 2009. Statewide, the
monthly job loss for the year was 0.3%. Contrary to the dramatic job losses occurring nationally, there was still growth in the Alaska job market
in the first quarter of 2009. As the year progressed, however, the job market slowly deteriorated and finished with 1,900 fewer jobs in December
2009 than at the end of 2008.15
To start 2010, Alaska had 1% fewer jobs than the state had to start 2009. Many of these lost jobs in finance, manufacturing, and construction are
gone and not coming back soon as businesses have adopted a wait-and-see attitude for employment, investments, and growth.16 Anchorage
predicts about 1,200 job losses in 2010, resulting in an employment declining of 0.8% compared to 2009. However, 2010 is also expected to be
the year that the city bottom’s out, with the city soon expecting to begin recovery from the national recession.17
Often, Alaska’ monthly job estimates provide an in-depth look at the Alaskan economy. The increase in unemployment ironically is a sign of the
State’s relative economic strength compared to the rest of the nation. Most analysts attribute the increase in unemployment to an influx of
people looking for work. Unfortunately, this has increased demands on public and non-profit social services agencies. Many non-profits report
their revenues will not be able to keep up with demand.
Housing
Alaska’s housing market reflects the underlying soundness of household finances in the State. National statistics for 2009 show that Alaska had
the second lowest level of mortgage foreclosures in the United States, the third lowest delinquencies of all 50 states, and the lowest amount by
far of subprime loans that are delinquent for foreclosure compared to the rest of the nation. Although the share of housing units in foreclosure
in Alaska has been increasing, the foreclosure rate is only 0.7%. Alaska housing prices have remained stable in 2009, compared to a nationwide
decline over 12 percent from a year earlier. This has kept the housing market relatively stable compared to the rest of the nation.18
Forecasts
As the onset of the recession hit Alaska later than the rest of the United States, Alaska is also believed to lag behind the national recovery.
According to economist Scott Goldsmith, the Alaskan economy will continue to contract slightly in 2010 due to fluctuations in oil, the dip in the
stock market, and the apparent ceiling on federal spending. Goldsmith believes that the first real signs of recovery will occur in 2011.19
The long-run growth of the Alaska economy will waver based upon the likelihood of large-scale natural resource development projects. Alaska is
blessed with an abundance of natural resources. With several multi-billion dollar projects progressing, an economic boom and an influx of
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thousands of jobs could be on the near horizon. The enormity of these projects forces each to face tremendous challenges, and support from the
government, courts, and private sector is needed if these projects are going to advance. If none of the projects go through in the next decade,
the state will see revenues continue to decline with falling oil production from the older fields on the North Slope.20
Partially due to the declining oil production in the state, a top-line view of Alaska shows stagnation and relatively poor economic performance.
From a long-term approach, there are risks and concerns about the state economy. Changing tax policies, regulatory burdens, and
environmental regulations all impact economic progress in the state. Independent of the oil and gas industry, Alaska needs to develop a
diversified economy founded in a strong education system, support of entrepreneurs, year-round employment opportunities, and statewide
tourism.
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Section III:
Kenai Peninsula Borough Economic Overview
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Economic Overview
The economy of the Kenai Peninsula Borough is one
of the most diverse in the entire state. It is easy to
recognize that in all communities across the
Borough there are many industries in action.
Prominent economic sectors in the Borough include
oil and gas, seafood, tourism, healthcare,
government, construction, retail and wholesale
trade, and services. The oil and gas industry –
including
exploration,
extraction,
storage,
processing, manufacturing, and transportation –
accounts for approximately one-third of the labor
force in the Borough. The Borough economy also
has highly seasonal influences from industries such
as tourism, seafood, and construction which are
most active in the summer months. Employment
falls off in the winter months. To some extent, this
seasonality has an impact on other industries, such
as transportation, energy, retail, and trade.
Kenai Peninsula Borough 2009 Gross Sales by Line of
Business
Resource
Government 1%
Transport /
Warehouse
3%
Production
7%
Wholesale
20%
Sales
28%
Manufacturing
5%
Utilities
6%
Services
8%
Tourism
4%
Construction
12%
Professional
Services
3%
Property Rentals
3%
The Kenai Peninsula Borough Department of Economic Analysis breaks the economy into twelve Lines of Business. The largest Line of Business in
the Borough is Sales, both Retail Sales and Restaurant/Bar Sales. This Line accounted for $768 million in 2009, over 28% of the annual gross sales
for the Borough. Wholesale Trade, accounting for $543 million, made up 28% of the Borough sales. The other largest Lines of Business for the
Borough are Construction (12%, $328 million), Services (8%, $228 million), Resource Production (7%, $193 million), and Utilities (6%, $160
million).
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Kenai Peninsula Borough Gross Sales by Year
Gross Sales (in millions)
3,400
3,200
3,000
2,800
2,600
2,400
2,200
2,000
Sales
2004
2005
2006
2007
2008
2009
2,336
2,572
2,701
2,806
3,160
2,719
When taken as a whole, the Kenai Peninsula Borough’s annual gross sales figure in 2009 was over $2.7 billion. Compared to 2008, gross sales in
the Borough dropped 14%, or $440 million. 2008 became the first time the Borough reported taxable sales over the $1 billion mark, however a
drop of 15% in 2009 decreased that number to $877 million.21
Region Comparison
Community
Central Peninsula
Southern Peninsula
Eastern Peninsula
Western Peninsula
TOTAL
Population
33,150
13,505
5,378
190
52,223
Per Capital $
Total Wages
$21,515
19,689
21,179
11,261
$20,971
$626,376,060
162,180,942
73,546,134
2,337,120
$864,440,256
% Unemployment Workers 45+ Female
% Native
Claimants
Workers
10.3%
42%
46%
6%
8.8%
47%
51%
7%
11.3%
47%
48%
13%
21.1%
43%
34%
87%
10.0%
44%
48%
7%
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Tourism
Kenai Peninsula Borough Annual Tourism
Gross Sales
Tourism Sales (in millions)
According to the Department of Commerce, approximately
500,000 people visit the Kenai Peninsula every year.22 For the
past twenty years, tourism has been one of the fastest
growing industries in the Borough. Tourism has also been
one of the hardest hit Lines of Business in recent years. From
a peak in 2007, the Line of Business has dropped over 43% in
the past two years. At one point, Tourism was the fourth
largest Line of Business in the Borough, behind only Sales,
Wholesale Trade, and Construction in 2007. By 2009,
Tourism was only the eighth largest Line of Business. The
industry faced declines in 2009 with the expectation that
tourism will bottom out in 2010 due to poor national
economic conditions. Known as “Alaska’s Playground”, the
Borough has expanded efforts to increase the number of
recreational activities on the Peninsula.
220
200
180
160
140
120
100
Year
2004
2005
2006
2007
2008
2009
179
189
203
207
156
117
Fishing & Seafood
Commercial fishing has a long history in the Borough. Traditionally, fishermen have harvested five species of salmon, three species of crab,
halibut, shrimp, clams, herring, and groundfish. Processing plants serving local fisherman can be found throughout the Borough, contributing to
local economies. A relatively new industry, oyster mariculture, shows promise for future growth for the commercial fishing and seafood
industry.23
In June 2010, the Department of Fish and Game closed the Kenai River to early-run king salmon sport fishing from the mouth of the river to the
Soldotna Bridge. The closure was due a salmon count more than 40% lower than what was typically expected to date, creating a fear that the
kings may not make their sustainable escapement goal for the year. This closure has impacted many local businesses, with many business facing
sales declines of 65 to 70 percent since the announcement.24 After a few weeks, the Kenai River was reopened. Later in June, the Department of
Fish and Game also restricted king salmon sport fishing on the Anchor River to catch-and-release status for the remainder of the month. Fish and
17
Game had set an escapement goal of 5,000 fish, and the restriction was put in place because it is uncertain whether the kings will reach this goal.
The Anchor River avoided complete closure because there is still hope that escapement will be met.25 These closings created concern within the
Borough that sales expectations in the Fishing & Seafood industry will not be met.
Oil and Gas
Oil and gas is still one of the most dominant industries in the Borough. The Central Peninsula is known as the hub for oil and gas in the Central
Peninsula, with easy access to the Cook Inlet. Total production for Alaska also includes approximately 10,000 bpd produced in the Cook Inlet. 26In
the spring of 2009, the Division of Oil and gas conducted a scientific analysis of the remaining gas in the Cook Inlet. The group estimated that
Cook Inlet gas production is forecasted to outweigh Cook Inlet demand until 2030 at the earliest.27
Forestry and Timber
Much of the Kenai Peninsula is encompassed by the Chugach National Forest, with most of the commercial timber harvest on federal and Native
land. Harvest faced a considerable increase due to the largest spruce bark beetle infestation in North America, affecting nearly 17,500 acres on
the Peninsula in 2003.
Construction
While the state Construction industry has faced major setbacks, the Line of Business in the Borough is still performing well. In 2009, Construction
was one of only four Lines of Business that increased gross annual sales, from $310 million to $328 million. Since 2004, gross sales for the Line of
Business have increased by 46% (although it has dropped 10% since 2006). In 2008, Construction permit values were nearly $100 million in the
Borough. A drop of over 50%, however, put the industry at $46 million in 2009, the Borough’s lowest permit value total since 2005. Similarly, the
286 permits issued by the Borough was the lowest total in more than five years, and a drop over 6% from 2008. New construction was hurt the
most, with New Residential permit values dropping 26% and New Commercial permit values dropping a whopping 75%. 28
Timber
Current timber industry activity includes the exportation of woodchips from the Southern Peninsula and a sawmill with value added timber
operations. Small operators have assumed increasing importance in recent years, with the growing availability of small timber sales.
18
Transportation & Infrastructure
The Sterling Highway provides much of the Peninsula with road access to Anchorage, the rest of Alaska, Canada, and the Lower 48. Communities
on the Eastern Peninsula sit on the Sterling Highway, as do many in the Central and Southern Peninsula. The Kenai Spur Highway connects the
remaining portion of the Central Peninsula – Kenai, Nikiski, Ridgeway, and Salamatof – to the Sterling Highway.
A number of communities and villages in the Southern Peninsula do not connect to the road system. Among them are Seldovia, Nanwalek, and
Port Graham. These communities are only accessible via boat and air. On the Western Side of the Borough, Tyonek is also only accessible via
boat and air. This poses a number of problems for these communities, including receiving adequate and timely medical care, an increased cost of
living, and fewer employment opportunities when compared to the rest of the Peninsula.
Out of the 50 states, Alaska is the only state that has not established a legislatively funded Road Maintenance Program. Local roads in the
Borough must compete for statewide funding. Legislative funding is currently backed by the Kenai Peninsula Borough to establish legislative
funding to support continued maintenance of existing state roads, so that timeliness of repairs and replacements can occur before road safety
becomes an issue.
Kenai Peninsula Borough Annual
Unemployment %
Unemployment
11.0%
Unemployment %
At an annual average of only 7.7%, 2007 had the lowest
unemployment rate of the decade. The 2008 annual average
jumped slightly to 8.3%, and the wheels came off in 2009 when
average annual unemployment rose to 10.7%. In the Kenai
Peninsula Borough, the raw number of unemployed residents has
grown steadily, although there has been a significant increase in
the number of weeks people are staying unemployed. This has
resulted in a significant increase in unemployment weeks paid for
the government.29
10.5%
10.0%
9.5%
9.0%
8.5%
8.0%
7.5%
7.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009
Annual % 8.0% 9.4% 10.1% 9.6% 8.8% 8.2% 7.7% 8.3% 10.7%
19
Medical Services
As the most visited hospital in the Kenai Peninsula Borough, Central Peninsula Hospital in Soldotna took over 62,000 outpatient visits in 2008,
with over 2,100 patients admitted to the hospital, and over 2,500 surgeries performed. Founded in 1954, the hospital is a 50-bed, acute care
hospital serving the communities of Soldotna, Kenai, and much of the Central Peninsula. A recently completed 85,000 square foot expansion and
renovation project improved facilities for private patient rooms, surgery, labor and delivery, emergency care, outgoing patient services, imaging,
laboratory, and physical therapy. In 2005, the hospital employed approximately 405 doctors, nurses, and staff, and worked with over 40
physicians to provide quality healthcare to the residents and visitors of the Central Peninsula.
South Peninsula Hospital in Homer was founded in 1956 with only three medical beds. In the past five decades, the state-of-the-art hospital is
licensed for 22 medical beds and an additional 28 nursing home beds. Currently, South Peninsula Hospital is owned by a unique partnership
between the Borough, the City of Homer, and SPH Inc., the non-profit that provides healthcare for the hospital. In 2008, over 30,000 outpatients
visited the hospital, 850 patients were admitted, and over 1,000 surgeries were performed. South Peninsula Hospital is also currently undergoing
a significant facility expansion and renovation. In October 2009, a new patient wing featuring 18 single-capacity rooms and a rooftop helicopterlanding pad was opened. Expanded surgery, an MRI building, and expansions to the birthing center, lab, and pharmacy are slated for completion
in 2010. The South Peninsula Hospital caters primarily to residents of Homer and the surrounding areas.
In the Eastern Peninsula, Providence Seward Medical Center is a collaborative effort between Seward and the Providence Health System. Serving
Seward, the surrounding communities, and the tourism and cruise ship industries, the hospital has nearly 20,000 outpatient visits each year,
with over 2,5000 visits to the emergency room and nearly 100 patient admissions. The hospital’s team of physicians, nurses, and support deliver
quality care and treatment in a wide variety of medical areas.
Residents of the Western Side of the Borough have a more difficult time receiving quality health coverage. Tyonek is classified as an isolated
village, and the only medical facility in the area is Indian Creek Health Clinic. Emergency Services is provided by volunteers and health aides, and
without a connected roadway, there is only access by air. The Alaska Division of Communities and Regional Affairs qualifies the Indian Creek
Health Clinic as in need of major renovations.
Education
The Kenai Peninsula Borough School District (KPBSD) is the largest, and one of the most stable, employers on the Peninsula. Monthly, the KPBSD
offers more than $4.8 million in gross payroll. In addition, 46% of the District’s certified staff have been members of the KPBSD for at least ten
20
years. The School District consists of 41 schools in a variety of combinations of age groupings. The student population nears the 10,000 mark,
and the school bus system transports nearly 3,000 students daily, travelling more than 7,700 miles.
As a whole, KPBSD schools score overwhelmingly above the Alaska state average in standardized testing. 36 of the 41 schools in the Borough
reported scores in all four subjects (Reading, Writing, Math, and Science), with 22 outperforming the state average in all four subjects, and an
additional eight schools outperforming the state average in three subjects. With the exception of the Western Side of the Borough, the scores by
region vary by small margins. The Eastern Peninsula slightly outperforms the other regions, despite possessing an Economically Disadvantaged
student rate of greater than 50%. The Western Side of the Borough has only one school, Tebughna, a K-12 school with 37 students.
A number of post-secondary education facilities also exist in the Kenai Peninsula Borough. The largest institution is Kenai Peninsula College, a
unit of the University of Alaska Anchorage with locations in Soldotna, Homer, and Seward. KPC offers a variety of two-year Associates degrees,
programs leading to baccalaureate degrees, and a number of other four-year degrees that can be obtained via distance delivery. The enrollment
is approximately 4,500 students over the three locations, with new buildings and renovations being added to the current facilities. The college is
one of the largest employers in the Borough, providing 231 jobs and more than $8 million in annual payroll and benefits. A 2008 study estimated
that the college had a $19 million annual impact to the Borough.30
In addition, the Borough offers vocational schools including the AVTEC – Alaska’s Institute of Technology in Eastern Peninsula and the Pacific Rim
Institute of Safety and Management in the Central Peninsula. AVTEC, located in Seward, also offers post-secondary training with a focus on
industrial, technical, and nursing curriculums.
Kenai Peninsula Economic Development District Gap Analysis Study
In an effort to fully understand the business climate and organization needs across the Kenai Peninsula Borough, the Kenai Peninsula Economic
Development District developed a Gap Analysis Survey over the winter and spring of 2010. The purpose of this survey was to identify any gaps or
barriers to economic development and growth throughout the Peninsula. A total of 327 organizations completed the survey, representing a
comprehensive cross-section of the business environment of the Borough.
21
Economic Expectations
Business confidence is an important factor to economic strength.
An economy with high economic confidence is more willing to
invest in capital improvement projects, hire new employees, and
spend additional money. Looking at the Borough as a whole and
also the state of Alaska, respondents report cautiously optimistic
business confidence for both the Borough economy and the
Alaskan economy. Compared to 2009, 49% of respondents believe
the Borough economy will improve in 2010, with only 24% who
believe that the Borough economy will decline. 48% of the
Borough believe that the Alaskan economy will improve in 2010
compared to 2009, and 31% believe the Alaskan economy will face
continued economic declines.
2010 Sales Expectations
22%
2010 Economic Expectations
116109
36 40
8 7
87
71
State of Alaska
62
78
16 22
2 0
Sales Expectations
Gross sales for companies throughout the Kenai Peninsula Borough are
anticipated to increase at a strong rate in 2010 when compared to
2009. Over half of companies expect sales to increase, while less than
one-quarter expect a decline in sales from last year.
51%
Employment Expectations
Falling in line with the cautious optimism for the Borough and Alaskan
economies, little employment change is expected in 2010 despite
strong increases in gross sales. Over three-quarters of companies do
not plan to change the number of full-time jobs in their organization.
27%
Increase in Sales
No Change
Decrease in Sales
22
Barriers to Growth
Respondents were asked to rank seventeen factors and determine the extent that each factor hindered organizational growth. Across the
Borough, the ten largest factors to economic growth and development, ranked as either significant or moderate barriers, are:
1. National Economy
2. Energy Prices
3. Access to Capital
4. Federal Taxes
5. Federal Regulations
81%
75%
48%
48%
46%
6. Access to a Trained Workforce
7. Workers Compensation Insurance
8. State Regulations
9. Health Insurance
10. Energy Supply
45%
44%
43%
42%
39%
Economic Development Opportunities
Businesses across the Borough have an eye for the current opportunities for economic development in their area. Over three-quarters of
respondents believe that there are areas of growth and economic development throughout the Borough. The most common opportunities are
as follows:
Rebound in Tourism
Alternative & Renewable Energy
Natural Resource Development
Economic Recovery
Economic Diversity
Conference Centers
Government Efficiency
Manufacturing
Cruise Ships
Real Estate
Transportation
Government Contracts
Lodging
Recreational Services
Oil & Gas Exploration
Education Opportunities
Seward’s Ice-Free Port
Service-Based Companies
Retail Sales
E-Business
Health / Retirement Care
Technology Consulting
Green Businesses
Summer Housing
Young Adult Employment
Less Competition
Natural Gas to Homer
Sustainable Seafood
Fishing
Year-Round Industry
Population Growth
Construction
Entrepreneurs
Ecotourism
Local Agriculture
Affordable Housing
Non-Alcoholic Entertainment
Support Services
Coal Export
Leverage Peninsula Uniqueness
Peninsula-wide Interaction
Vocational Training
23
Section IV: Community Overviews
The Central Peninsula
24
The Central Peninsula Overview
Overview
The Central Peninsula includes the cities of Kenai and Soldotna, the communities of Sterling, Kalifornsky, and Nikiski, and the surrounding areas.
It extends to the Cook Inlet in the North and West, past Clam Gulch in the south, and borders the Chugach National Forest to the east.
Archaeological evidence suggests that the Central Peninsula region was first occupied by the Kachemak people from 1000 BC until the Dena’ina
Athabaskan people displaced them around 1000 A.D. These early native tribes lived off the land with subsistence fishing and hunting. In 1888,
prospector Alexander King discovered gold on what is now the Kenai Peninsula. The amount of gold was small compared to the later gold finds in
Nome, Fairbanks, and the Klondike.
Homesteading and commercial fishing drove early development in the region, but oil discoveries at Swanson River in the 1950’s led to a
population explosion and the need for significant infrastructure development. The economy has since diversified, and the Central Peninsula has
evolved into the Peninsula’s retail and service hub. The Central Peninsula is home to over 60% of the Peninsula’s population, and nearly threequarters of the Peninsula’s total wages.
Community Comparison
Community
Population
Clam Gulch
Cohoe
Funny River
Kalifornsky
Kasilof
Kenai
Nikiski
Ridgeway
Salamatof
Soldotna
Sterling
TOTAL
166
1,332
796
7,495
536
7,162
4,465
2,050
855
4,021
4,272
33,150
Per Capital $
17,983
19,059
22,648
23,898
21,211
20,789
20,128
23,225
16,306
21,740
20,741
$21,515
Total Wages
($)
2,329,158
17,730,443
9,983,047
150,773,578
10,963,538
131,734,511
77,621,969
38,388,479
7,921,832
77,875,384
101,054,121
$626,376,060
% Unemployment
Claimants
14.5%
9.2
9.8
8.3
8.8
10.4
9.6
8.5
4.0
15.5
11.8
10.3%
Workers 45+
50%
49
53
40
50
36
43
44
44
41
45
42%
Female
Workers
55%
43
45
46
47
47
43
50
47
49
45
46%
% Native
3%
5
2
5
3
9
8
4
20
5
3
6%
25
Education
Excellent public schools, a number of smaller private schools, a regional fire training center, and the Soldotna campus of Kenai Peninsula College
provide a range of outstanding educational opportunities. The KPC branch in Soldotna offers both Associates and Bachelor’s degrees, providing
instruction to nearly 1,500 students. Over the years, the institution has met the needs of local industry by creating specific programs to meet the
training needs of area businesses.
The College also sponsors the Kenai River Guide Academy and the Kenai Fishing Academy. The Kenai River Guide Academy offers a 40-hour
course for Kenai River fishing guides required to guide anglers on the river. The Kenai Fishing Academy offers one-week classes on the basics of
fishing, and approximately 50% of students are non-Alaska residents.31 A state-of-the-art training institution, the Pacific Rim Institute of Safety
and Management (PRISM) opened in June 1998 in Kenai. PRISM, a fire training center, offers classes in industrial firefighting and a variety of
other safety courses.
Transportation
Growth in business in the Central Peninsula is partly due to a well-developed transportation infrastructure. The Sterling Highway links the
Central Peninsula to Anchorage, approximately 140 road miles away. Air access to the region is through Kenai Municipal Airport. The airport
serves as the region’s primary collection and distribution center for scheduled passenger, cargo, and mail service. Regular commuter flights out
of Kenai Municipal link the Central Peninsula to Anchorage, only 60 air miles away.
Medical & Emergency Services
The presence of Central Peninsula Hospital in Soldotna has made the Central Peninsula a hub for health care throughout the Peninsula. Soldotna
took over 62,000 outpatient visits in 2008, with over 2,100 patients admitted to the hospital, and over 2,500 surgeries performed. The Kenai
Public Health Clinic is one of the many health clinics throughout the Central Peninsula that provide additional health care. Central Emergency
Services (CES) serves approximately 2,200 square miles, providing fire protection, fire rescue, and emergency medical services to the Central
Peninsula. CES is a combination of full-time and part-time employees, and there are six stations throughout the Central Peninsula. Five of those
stations are staffed 24-hours a day.32 Central Emergency Services has the following capital improvement projects
Priority
1
2
Project Title
3,000 Gallon Water Tender
Off-Highway Rescue Project
Funding Recipient
Funding Request
$250,000
$50,000
26
Employment
On March 31, 2010, a Wal-Mart opened in Kenai, providing 370 jobs and instantly becoming one of the largest employers to the Central
Peninsula and Borough. Approximately 80% of these jobs are full-time, and five of the ten managers are from the Kenai-Soldotna area, with just
one coming from out-of-state. Training for around 130 employees began in early February 2010 when Wal-Mart took possession of the building.
The long-term impact on Kenai’s economy is a hotly debated topic, with some believing that only few local jobs will be lost and others believing
that many small businesses may be driven to close.
Recreation
Recreational offerings in the Central Peninsula are unparalleled. Every year, visitors converge on the Kenai River to try their hand at catching king
salmon. In 1985, the world’s largest king salmon was caught on the river, weighing 97 pounds 4 ounces. Wildlife is abundant in the Central
Peninsula, from moose that frequent city neighborhoods to bald eagles, elusive caribou, and even an occasional bear or two. The panorama of
Mount Redoubt and her sister mountains across the Cook Inlet provide ample opportunity for photographers to return home with magnificent
photos of mountain views.
Summer activities include golfing, bird watching, kayaking, and wind surfing. Winter activities provide an often-overlooked opportunity for
wildlife adventure. Skijoring, cross-country skiing, snowmachining, and dog mushing are just a few of the handful of recreational pursuits
enjoyed by residents and visitors alike. On clear nights, the Northern Lights present a fabulous show for those lucky enough to catch the sight of
the dancing lights in the sky.
The North Peninsula Recreation Service Area has the following capital improvement projects:
Priority
1
2
Project Title
Jason Peterson Memorial Ice Rink Refurbishment
Outdoor Playground Equipment
Funding Recipient
Funding Request
$500,000
$175,000
27
Clam Gulch
Population: 166
Per Capita Income: $17,983
Median Family Income: $44,375
Median Household Income: $37,500
Total Wages: $2,329,158
Main Industry: Educational and Health Services
2009 Unemployment Claimants: 24
2009 New Hires: 25
Workers 45+ years of age: 50%
Female workers: 55%
Overview
Clam Gulch, an unincorporated census designated place, is located about 25 miles south of Kenai. The community sits on a series of bluffs
overlooking the Cook Inlet. First reported in 1947 by Barnes and Cobb of the U.S. Geological Survey, it was named after the Clam Gulch ravine. A
post office was established in 1950. Today, it is known for the hundreds of thousands of razor clams harvested annually from the sandy beaches
adjacent to the State Recreation Area. Population has remained relatively stable since the 2000 census, 92% of Clam Gulch Residents are white,
3% are Native, and 3% are multi-racial.
The Clam Gulch Economy
The Kenai Peninsula School District is the largest employer for Clam Gulch residents, and Educational and Health Services is the most common
industry in the community. More residents are employed as Home Health Aides than any other occupation. The Clam Gulch per capita income,
just below $18,000, was one of the lowest in the Central Peninsula at the 2000 census. The community had relatively high unemployment claims
in 2009, with 14.5% of the population filing claims in 2009, compared to 10.3% in the Central Peninsula and 10.0% throughout the Borough.33
Employment and Sales Expectations
Businesses in Clam Gulch expect employment to be stable in 2010, with only a slight increase. 20% of companies in the community expect an
increase, while the other 80% anticipate no change compared to 2009. This very slow-moving increase in employment is anticipated to continue
over the next five years through capital improvement projects. Only 20% of organizations expect a capital project in that time frame, which will
lead to 0.4 jobs per company throughout Clam Gulch. While employment is expects to be fairly stagnant in 2010 and beyond, Clam Gulch
28
anticipates a large increase in gross sales. 80% of businesses expect revenue increases for 2010, with half of those expecting moderate (10-25%)
or large (25+%) increases.
Barriers to Growth
Compared to the rest of the Borough, organizations in Clam Gulch report facing relatively few barriers to growth. The national economy and
health insurance are the two most pressing factors, with access to capital also being a prevalent hurdle, affecting 80% of businesses.
Organizations find little or no hindrances as a result of regulations, taxes, workers compensation insurance, or the workforce.
Clam Gulch businesses overwhelmingly want to see their market increase, the primary improvement for 60% of area businesses. Access to
support services and an improved workforce are also seen as valuable improvements in the community. Many Clam Gulch residents believe that
increased tourist traffic over the next few years is the primary area for economic development in the community. Others hope to develop yearround industry, making the community more sustainable in the long-run. Alternative and renewable energy studies and oil/gas exploration also
interests Clam Gulch business owners.
Education
There are no state-operated schools in the community. Students attend school in Ninilchik.
Medical Service
Auxiliary health care is provided by Central Emergency Services. Central Peninsula Hospital in Soldotna is about 20 road miles from Clam Gulch.
Recreation
Clam Gulch State Recreation Area is an Alaska State Park famous for the thousands of razor clams harvested annually. Situated on the bluffs
overlooking the Cook Inlet, the recreation area offers visitors a panoramic view of the Aleutian Mountain Range’s three tallest peaks: Mount
Redoubt, Mount Iliamna, and Mount Spurr.
Transportation
Clam Gulch sits on the Sterling Highway, providing access to most of the Kenai Peninsula, Anchorage, and the Outside.
29
Cohoe
Population: 1,332
Main Industry: Trade, Transportation, & Utilities
2009 New Hires: 170
Female workers: 43%
Overview
Cohoe is a census designated place along the west bank of the Kasilof River, about 13 miles south of Kenai. Victor Holm constructed a cabin in
Cohoe in 1890. Holm sailed from Finland to Alaska to make his home. The cabin and many of Holm’s handmade items still remain intact; the
cabin is listed on the National Register of Historic Places. Cohoe originally grew as an agricultural settlement, and a post office was established in
1950. In 2007, Cohoe became Alaska’s second-ever community to receive the national Firewise/USA designation, providing residents with the
knowledge and skills necessary to fight against urban and wild fires. 90% of Cohoe residents are white, 5% are Native, and 4% are multi-racial.
The Cohoe Economy
The largest employer for Cohoe residents is the Kenai Peninsula Borough School District. In addition, more workers in from Cohoe are employed
as Retail Salespersons than any other occupation, and the main industry in the community is Trade, Transportation, and Utilities, employing 18%
of the community’s workers. The per capita income for Cohoe is 11% lower than Central Peninsula per capita income. 34
Education
There are no state-operated schools in Cohoe. Students attend school in Kenai.
Emergency & Medical Services
Central Emergency Services provides emergency health care. Cohoe is about 12 miles by road from Central Peninsula Hospital.
30
Transportation
Cohoe has easy access to the Sterling Highway, providing access to most of the Kenai Peninsula, Anchorage, and the Outside.
Funny River
Population: 796
Main Industry: Trade, Transportation, Utilities
2009 New Hires: 89
Female workers: 45%
Overview
Funny River is located on the Kenai River, approximately 15 miles east of Soldotna. Funny River, the local name of a nearby stream, was first
published in 1904 in the U.S. Geological Survey. Homesteading and farming expanded to Funny River during the late 1950s and early 1960s.
Originally, there was simply a bulldozed trail that connected Funny River and Soldotna. In the mid-1960s, the path was upgraded to a gravel
surface road. 94% of Funny River residents are white and 2% are Native.
The Funny River Economy
The largest employer for Funny River residents is Central Peninsula Hospital in Soldotna, followed by the School District and ASRC Energy
Services. More workers are employed by the Trade, Transportation, and Utilities industry than any other, and the most common occupations in
the community are Cashiers, Home Health Aides, and Teachers and Instructors. Funny River’s per capita income at the 2000 census was 8%
higher than the Borough average.35
Education
There are no schools in Funny River. Students attend school in Soldotna.
31
Medical Services
Central Peninsula Hospital is the healthcare center for Funny River residents. Auxiliary health care is provided by Central Emergency Services.
Recreation
Funny River is home to a 2,600 square foot Community Center, which also served as an Emergency Center during the 2009 Shanta Creek Fire
that approached within four miles of the community. The building currently has community-wide events six days a week, and some days have
multiple events scheduled.
Transportation
Funny River sits on the Sterling Highway, providing access to most of the Kenai Peninsula, Anchorage, and the Outside.
Capital Improvement Projects
Priority Project Name
1
Funny River Community Center, Construction
and Renovation
2
Bridge Improvement & Road Alignment
Funding Recipient
Funny River Chamber of Commerce &
Community Association
Funding Request
$1,145,000
$500,000
Kalifornsky
Population: 7,495
2009 New Hires: 1,027
Female workers: 46%
32
Overview
Kalifornsky is an unincorporated census designated place ten miles south of Kenai on the eastern shore of the Cook Inlet. The place name
Kalifornsky (omitting the letter ‘R’) was noted in 1916 by the U.S. Coast and Geodetic Survey, with its etymology attributed to the Native word
‘kali’, meaning fishermen. However, the place name seems to be a mistaken transcription, as the village of Kalifornsky is named after the
founder’s surname, Qadanalchen Kalifornsky. His great grandson, Peter Kalifornsky, was a famed writer and ethnographer. Peter Kalifornsky was
also the last fluent speaker of the Dena’ina language in the Lower Cook Inlet dialect.
The population of Kalifornsky has steadily grown since the 2000 census, with a gain of 1,649 residents – over a 25% increase. 90% of Kalifornsky
residents are white, 5% are Native, and 4% are multi-racial.
The Kalifornsky Economy
The Kenai Peninsula Borough School District, Central Peninsula Hospital, the State of Alaska, ASRC Energy Services, and the Kenai Peninsula
Borough are the largest employer for Kalifornsky residents. The largest industries by number of workers in the area are Trade, Transportation,
and Utilities, Natural Resources and Mining, Educational and Health Services, Local Government, and Leisure and Hospitality. Retail
Salespersons, Teachers and Instructors, and Roustabouts in the Oil and Gas industry are the most common professions for Kalifornsky residents.
At the time of the 2000 census, Kalifornsky had one of the highest per capita incomes of any community on the Peninsula. The community has
the highest total wages of any community in the Borough, contributing over $150 million in wages in 2009, about 17% of the Borough total.36
Education
There are no schools in Kalifornsky. Students attend school in Kenai.
Central Peninsula Hospital is the healthcare center for Kalifornsky residents. Auxiliary health care is provided by Central Emergency Services.
Transportation
The Sterling Highway provides access to Anchorage and the statewide road system. Nearby Kenai offers an airport and boating facilities.
Kalifornsky Beach Road is frequently traveled by Kenai River fisherman.
33
Kasilof
Population: 536
2009 New Hires: 77
Female workers: 47%
Overview
Kasilof sits along the eastern shore of the Cook Inlet, about twelve miles south of Kenai. Kasilof was originally an agricultural settlement of the
Kenaitze Indians, which further grew around a stockade built by the Russian Lebedef-Lastochkin Company in 1786. Originally named Saint
George after one of the ships in the company, the area came to be named Kasilof after the river in the 1800s. A partial excavation of the area in
1937 found 31 well-preserved homes.
Kasilof has seen a fairly sizeable population growth since the 2000 census. There have been 65 new residents to the Kasilof area, an increase of
population of 14%. 92% of Kasilof residents are white, 3% are Native, and 3% are multi-racial.
The Kasilof Economy
Retail Salespersons and Cashiers are the two most common professions for Kasilof residents, and the industry with the highest employment in
the area is Trade, Transportation, and Utilities, followed closely by Natural Resources and Mining. The school district, Central Peninsula Hospital,
and the State of Alaska are the three largest employers. Kasilof has one of the lowest unemployment rates of the Central Peninsula, with 2009
unemployment claimants at 8.8%, below the region average of 10.3%. Per capita income in Kasilof is in line with the regional average.37
Education
Kasilof is home to Tustumena School, an elementary school serving children from kindergarten through sixth grade. Compared to the state
average, students at Tustumena perform very well, greatly surpassing the state average of proficiency in reading, writing, and mathematics.
34
Health Care is provided by Central Emergency Services, with the nearest hospital being the Central Peninsula Hospital in Soldotna.
Recreation
The Kenai River provides numerous fishing opportunities. Hunting, hiking, bear viewing, and whale watching also provide opportunities for
residents and visitors alike.
Transportation
The Sterling Highway provides a route to Anchorage and the national highway system. The state owns a 2,165 foot gravel airstrip, and there are
three additional private airstrips in the vicinity. A boat launch is located at the Kasilof River.
1
Kasilof River Mouth Dune Protection
2
Kasilof / Cohoe Cemetery Columbarium
Funding Recipient
Kasilof Regional Historical Association
Kasilof Regional Historical Association
Funding Request
$60,000
$90,000
Kenai
Population: 7,162
2009 New Hires: 1,142
Female workers: 47%
Overview
At the heart of the Central Peninsula, Kenai lies on the shores of the Cook Inlet and at the mouth of the Kenai River and is one of only two only
home rule cities on the Kenai Peninsula.
35
Kenaitze ancestors arrived from the Alaska Range and settled along the banks of the Cook Inlet centuries ago. In the summer, they fished the
rivers, and in the wintertime they trapped. Prior to Russian settlement, Kenai was a Dena’ina Athabascan Indian village. Russian fur traders first
arrived in 1741. At that time, about 1,000 Dena’ina lived in the village of Shk’ituk’t, near the Kenai River. The traders called these people
“Kenaitze”, or “Kenai People.”
In 1791, a fortified Russian trading post, Fort St. Nicholas, was constructed for fur and fish trading. It was the second permanent Russian
settlement in Alaska. Hostilities surfaced between the Natives and the settlers in 1797, when the Battle of Kenai resulted in over 100 deaths
after the Dena’ina attacked the fort. The smallpox epidemic of 1838 killed over half of the Dena’ina population. In 1849, Egumen Nicholai
established the Holy Assumption Roman Orthodox Church. In 1869, the U.S. military established a post for the Dena’ina Indians in the area,
called Kenay. A post office was established in 1899. Through the 1920s, commercial fishing was the primary activity. In 1940, homesteading
enabled the area to further develop.
The first dirt road from Anchorage was constructed in 1951, with pavement arriving in 1956. A year later, oil was discovered at Swanson River –
the first major Alaska oil strike. Shortly thereafter, Kenai was incorporated in 1960. In 1965, offshore oil discoveries in the Cook Inlet fueled a
period of rapid growth. Kenai has been a growing center for oil exploration, production, and services since that time. In 1992, Kenai was named
one of the All American Cities for that year.
Kenai has seen slow population growth since the 2000 census, with a 3% population increase this decade. 82% of the population is white, 9% is
Native, 5% is multi-racial, and 2% is Asian.
36
The Kenai Economy
Kenai has a diversified economy, with a strong
presence in oil and gas, wholesale and retail
trade, and construction. The largest employers for
Kenai residents are the Kenai Peninsula Borough
School District, ASRC Energy Services, the State of
Alaska, Central Peninsula Hospital, Wal-Mart, and
the Kenaitze Indian Tribe. Peak Oilfield Services,
Safeway, the City of Kenai, and the Kenai
Peninsula Borough also employ many residents.
The Trade, Transportation, and Utilities industry
employs the highest number of Kenai residents,
followed by Natural Resources and Mining,
Educational and Health Services, Local
Government, and Leisure and Hospitality. The
most common professions are Retail Salespeople,
Teachers and Instructors, Roustabouts for Oil and
Gas, and Cashiers.38
2009 Kenai Sales by Line of Business
Transport /
Warehouse
4%
Manufacturing
5%
Resource
Production
Government
5%
1%
Wholesale
11%
Utilities
5%
Professional
Services
3%
Sales
40%
Services
6%
Construction
14%
Tourism
2%
Property Rentals
4%
As a city, Kenai expects an increase in taxable
sales and sales tax revenue in the upcoming fiscal year. 2011 projects a net increase of $600,000 over the 2010 projections. This increase is seen,
in large part, because of the new Wal-Mart that opened in March 2010. In the first two quarters, sales tax revenue was down slightly, however,
according to City Manager Ray Koch, “because Wal-Mart opened this last quarter, we feel we’ll meet projections for fiscal year 2010.” Wal-Mart
also hopes to decrease cost of living in the community. When Kodiak opened a Wal-Mart, the community’s cost of living decreased by 4%.39
37
City of Kenai Gross Sales by Year
650
In 2009, Kenai had their lowest gross sales totals in recent
memory. After record high year in 2008 with $608 million,
gross sales for the city dropped over 35% to $391 million in
2009. In the City of Kenai, ten of the twelve Lines of
Business analyzed by the Borough decreased in sales. Most
significant among these was Transportation (down 90%
from $150 million to $15 million), Resource Production
(down 70% from $61 million to $18 million), and Wholesale
Trade (down 47% from $78 million to $41 million). Sales
saw an increase of 12.2% to surpass the $150 million mark,
and gross sales in the Utilities Line of Business increased
23% to $19 million.
600
550
500
450
400
350
2004
2005
2006
2007
2008
2009
Sales
407
466
457
521
608
391
According to the Kenai Peninsula Borough tax report
through the first two quarters of 2009, the city of Kenai was
one of the few cities across the Borough with an increase in taxable sales. Compared to the first two quarters of 2008, taxable sales increased by
3% in 2009 for Kenai, compared to a 2% drop in Soldotna, a 10% drop in Seward, and an 18% drop in Homer.40
The Kenai Convention & Visitors Bureau is the tourism promotional organization for the City of Kenai. In addition to promoting Kenai as a top
visitor destination, the Bureau promotes the history and culture of Kenai, manages the Visitors & Cultural Center, encourages economic
development in Kenai, and promotes the membership of the Bureau through marketing the city.
TransCanada and Enstar were in talks to construct a gas storage facility in Kenai, employing approximately 150 people during the 18-month
construction process and a permanent year-round workforce of five or six employees. In April 2010, however, plans fell through as the two
companies were unable to come to an agreement on terms41. Enstar still plans to pursue the project, but it is expected to be pushed back due to
the deal falling apart.
38
Kenai is also home to one of two prisons on the Peninsula, the Wildwood Correctional Center. The complex houses approximately 360 prisoners
and employs numerous full-time and part-time employees. In February 2010, Wildwood opened two new buildings to house and support
inmates on the verge of re-entering society. With total project expenditures of $1.4 million, the new facility created eight additional jobs.42
Prospects for employment in Kenai, both short and long-term, are bright. Only 5% of companies in Kenai anticipate employment to decrease in
2010, less than half the Borough average, and 16% expect to hire in the coming year. While that leaves the bulk of organizations remaining at
their current staffing in 2010, capital improvements expect to bring a large number of jobs to the area in the next five years. The average
company in Kenai anticipates hiring nearly three employees over the next five years. In terms of gross sales expectations for 2010, Kenai falls
very closely in line with the rest of the Borough. 52% of companies expect gross sales to increase, while 18% expect gross sales to decrease.
Barriers to Growth
Of the four largest cities in the Borough, Kenai faces the most barriers to growth per organization. Most prevalent of the barriers is the national
economy, impacting 79% of area businesses, with energy prices (70%), access to a trained workforce (61%), federal regulations (also 61%), and
access to capital (60%) also in play. Energy prices are directly related to increased prices in nearly half of Kenai businesses. Another fifth found
that energy prices required the business to reduce the availability of their services, and over ten-percent reduced employment. Kenai businesses
are fairly consistent with the Borough-wide assessment of barriers, although permitting does not play a significant role in Kenai.
Nearly half of Kenai businesses would like to see their market increase as a primary area of improvement. Businesses feel as if their market can
increase through creation of a public transportation system, increased collaboration between the business community and the government, and
improved internet speed and access. In addition, the remaining respondents are split on improvements toward improving employees and the
workforce, access to financing, and the creation of business support services. In fact, Kenai finds the need for business support services more
than any of the four largest cities.
Economic development opportunities in Kenai are diverse and widespread, but most consistent is leveraging the expected increase in tourism
over the next season or two. Pro-development opportunities are also highly supported, including oil/gas exploration, natural resource
development, preparing for development on the west side of the Inlet, and the creation of industrial parks in Kenai. Support services, such as
non-profit consulting, small business development, and technology assistance are also seen as untapped markets. Others would like to see
improved government efficiency, year-round industry, young professional development, and a resurgence of the construction industry.
39
Community Development
In May 2010, over thirty members of the Kenai community, City Council, and city government met for a town hall meeting to discuss community
needs. The meeting was moderated by Peter and Susan Glaser, and gave the public a chance to discuss concerns of the community with the
government and Council members watching and listening, but not interjecting. When the meeting was complete, seven trends appeared and
were presented to the City of Kenai and the City Council:
1) Facilitate the redevelopment of a downtown City Center, including pedestrian access;
a. Build up and repair existing infrastructure.
b. Encourage utilization of vacant buildings.
2) Foster communication through collaborative, engaged decision making processes;
a. Bring organizations together to problem solve.
3) Promote and facilitate community health, well-being, and wellness;
a. Community gathering spaces.
b. Indoor sports facility / playground.
c. Water quality.
d. Health activities for kids.
e. Enhance the senior environment.
4) Explore and encourage efficient use of energy, including renewable energy;
a. Wind / tidal, biomass, geothermal energy sources.
b. Start curbside recycling program.
5) Promote and facilitate economic development;
a. Promote a sustainable tax base by encouraging business and industry.
b. Support year-round industry that employs residents of all ages.
c. Promote tourism.
6) Support public transportation initiatives including bike paths, ride shares, and mass transit; and
a. Beaver Loop Bike Trail.
7) Protect residential neighborhoods and green spaces.
a. Create buffer strips between residential and commercial neighborhoods.
40
Education
Kenai is home to an elementary school (Mountain View), middle school (Kenai Middle), two high schools (Kenai Central and Kenai Alternative),
two charter schools (Aurora Borealis and Kaleidoscope), and one K-12 school (Kenai Youth Facility). Kenai’s schools are some of the strongest on
the Peninsula, with most students surpassing the proficiency standard set by state testing.
Medical Services
Central Peninsula Hospital in Soldotna built the Kenai Health Center in a partnership between the hospital, the State of Alaska Division of Public
Health, the City of Kenai, and the Kenai Peninsula Borough. The center allows expanded public health services in Kenai, and offers diagnostic
imaging and lab services including electrocardiograms, mammograms, bone densitometry testing, x-ray services, and laboratory services.43
Extended health care is provided by Central Peninsula Hospital. Also in the community is Dena’ina Health Clinic and Kenai Health Center.
Recreation
The Kenai Visitors and Cultural Center offers displays and programs emphasizing the area’s historical and modern culture. Non-profit groups,
such as the Kenai Art Guild, help support the development of local artists. Kenai is home to the 1,300 seat Coral Seymour Ballpark, home of the
Peninsula Oilers of the Alaska Baseball League. The Oilers were founded in 1974, and have won three league championships, most recently in
2006. The city is also home to numerous trails and recreation parks.
Native Organizations
Kenai is home to the Kenaitze Native Tribe and the Salamatof Native Association. The Kenaitze Native Tribe has a strong presence in Kenai,
providing housing, a dental clinic, a health clinic, an educational fishery, social services, an early childhood center, and an elder’s center in the
city. The Salamatof Corporation’s main business consists of land sales and development.
Community
The Kenai Community Library is one of the most visited public buildings in the Borough, as more than 100,000 people passed through the
Library’s doors in 2009, with circulation surpassing 113,000 materials. In 2007, the Library received the Public Library Association EBSCO Award
for Excellent in Small and/or Rural Public Library Service. In 2009, the Library hosted 266 programs with nearly 3,500 participants, and also has
21,000 uses of the internet by the public on Library machines alone. With the completion of a $5.3 million expansion and renovation, Kenai
Community Library aims to become a central cog in the community, hosting more community meetings, functions, and programs.44
41
Transportation
Kenai is accessible by the highway system via the Kenai Spur Highway which connects to the Sterling Highway in Soldotna, providing access to
the state highway system. The city dock supports a fleet of drift commercial fishing boats. The city-owned Kenai Municipal Airport provides a
7,575 foot asphalt airstrip, a 2,000 foot gravel strip, a float plane strip, and helicopter service. There are five additional privately owned airstrips
in the area. Businesses and individuals alike would like to see a public transportation portal connecting the cities of Kenai and Soldotna.
Capital Improvement Program Funding Requests
Priority Project Title
1
Kenai River Bluff Erosion / Stabilization
2
Kenai Community Library Expansion
3
Parking & Improvements to City Streets
4
Capital Improvements to Support State Personal Use Fishery
5
City of Kenai Watershed Treatment Plant Upgrades & Renovations
6
City of Kenai Recreation Center – Energy Upgrades/Improvements
7
New Fire Engine
8
City Hall HVAC Improvements
9
New Soccer Fields Irrigation
10
Vehicle Storage Facility at the Kenai Senior Center
Funding Request
$2,017,000
$1,000,000 - $1,5000,000
$1,000,000
$400,000
$1,800,000
$500,000
$500,000
$200,000
$250,000
$500,000
Nikiski
Population: 4,465
Main Industry: Natural Resources and Mining
2009 New Hires: 626
Female workers: 43%
42
Overview
Nikiski is an unincorporated census designated place located about nine miles north of Kenai along the Cook Inlet. Traditionally a Kenaitze Indian
Territory, the area was homesteaded in the 1940s and grew with the discovery of oil on the Kenai Peninsula in 1957. By 1964, oil-related
industries in Nikiski included Unocal, Phillips 66, Chevron, and Tesoro. 87% of Nikiski residents are white, 8% are Native, and 3% are multi-racial.
The Nikiski Economy
Nikiski is mainly an industrial area and is the heart of the oil and gas industry. North Slope oil is processed into gasoline for several retailers in
Nikiski. The area houses a urea and ammonia manufacturing facility, an oil refinery, a Liquefied Natural Gas (LNG) facility, and has a Gas-ToLiquids Test Facility under construction. Agrium, Inc. recently closed its ammonia fertilizer plant resulting in the layoff of over 300 residents.
Nikiski offers excellent paying jobs for oil and gas workers in the petroleum refining, welding, nondestructive testing, and other related career
fields. Competition is not high for these jobs in Nikiski as most now require some post-secondary education. As a result, many of the workers are
hired outside the state and transferred into the area.
The largest employers in Nikiski are the School District, ASRC Energy Services, the Borough, Peak Oilfield Services, the State of Alaska, and
Tesoro. One-fifth of workers are employed in the Natural Resources and Mining industry, with many others employed in the Trade,
Transportation, and Utilities, Local Government, and Educational and Health Services industries. More workers are employed as Oil and Gas
Roustabouts than any other profession.45
Education
Nikiski is a community that takes immense pride in its schools. It community has two schools educating student from preschool through high
school. In 2004, the two Nikiski elementary schools consolidated into one with the new name of Nikiski North Star Elementary. The new school is
characterized by strong parental and community support. Nikiski Middle/Senior High School is home to approximately 400 students.
Emergency Medical Services
Dena’ina Health Clinic in Nikiski provides health care to some residents. The community is about fifteen miles from Central Peninsula Hospital in
Soldotna. The Nikiski Fire Service Area is requesting the following capital improvement funding:
43
Priority
1
2
Project Title
Ambulance
Ladder Truck
Funding Recipient
Kenai Peninsula borough
Funding Request
$200,000
$600,000
Nikiski Community Council
As an unincorporated community, Nikiski has limited jurisdiction and legislative power. In 1999, concerned citizens in Nikiski formed the Nikiski
Community Council, a 501(c)3 organization. As a non-profit corporation, the Nikiski Community Council can apply for and receive grant funding
to improve the quality of life of the community. The Council strives for: a clean community, strong families, job opportunities, better roads, a
safe community, development, and wise use of local resources. 2010 programs include Nikiski-North Star Elementary projects, giving to Nikiski
Neighbors for community outreach projects, sponsoring community clean-up day, and the removal of junk vehicles.46
Recreation
Nikiski is no longer known as a community with much to offer vacationers. As a result, Nikiski tourism remains predominantly dormant, and the
provisions and services to support leisure travel have disappeared over the last 20 years. Bernice Lake was a popular picnic, camping, and
swimming area. Due to recurring vandalism problems, however, the site was forced to close in 1992.
Transportation
The Kenai Spur Highway provides access to the Sterling Highway and to Anchorage. Nearby Kenai offers an airport and docking facilities. The
Port Nikiski docks service offshore drilling platforms. There are two private airstrips in the vicinity, one owned by Shell Oil Company.
1
Nikiski Beautification
2
Nikiski Public Viewing and Beach Access / Park
1
Nikiski Senior Center Multi-Use Facility
Funding Recipient
Nikiski Senior Service Area
Funding Request
$300,000
$500,000
$6,000,000
44
Ridgeway
Population: 2,050
2009 New Hires: 311
Female workers: 50%
Overview
Ridgeway is an unincorporated census designated place that lies between Kenai, Soldotna, and Sterling. The area has historically been home to
the Kenaitze Indians, although it was developed by non-Natives for the rich resources of the Peninsula. Ridgeway has seen swing in population
over the past decade, with an overall increase of 6%. There was a large population drop between 2005 (over 2,060 residents) and 2006 (under
1,980 residents), but the community has seen increases since. 88% of residents are white, 5% are multi-racial, and 4% are Native.
The Ridgeway Economy
Ridgeway’s close proximity to Kenai and Soldotna provide a number of diverse economic activities. Oil and gas processing, timber, commercial
and sport fishing, government, retail businesses and tourism-related services provide employment. Retail Salesperson, Teachers, and Instructors
make up the most popular professions for Ridgeway residents. The largest industries in the area are Trade, Transportation, and Utilities,
Educational and Health Services, Local Government, and Natural Resources and Mining. The Kenai Peninsula Borough School District, State of
Alaska, Central Peninsula Hospital, and Fred Meyer in Soldotna are the largest employers for Ridgeway residents.47
Education
There are no public schools in Ridgeway. Students attend Kenai and Soldotna area schools.
Ridgeway is only a few miles from Central Peninsula Hospital in Soldotna.
45
Transportation
The Sterling Highway provides access to Anchorage and the statewide road system. Kenai transportation facilities include a dock and airport.
Mackey Lake is in the area to serve floatplanes.
Salamatof
Population: 855
2009 New Hires: 52
Female workers: 47%
Overview
Salamatof is an unincorporated community on the eastern shore of the Cook Inlet, about six miles northwest of Kenai at the mouth of the
Salamatof Creek. Salamatof was first reported in 1911 by the U.S. Geological Survey as a Dena'ina Indian village. The community has seen a
population decline of over 10% since the 2000 census. 72% of residents are white, 20% are Native, and 4% are multi-racial.
The Salamatof Economy
The School District and Borough are the two largest employers, with the Kenaitze Indian Tribe, the State of Alaska, Peak Oilfield Services, and
ASRC Energy Services also employing many area residents. Natural Resources and Mining is the industry that employs the largest number of
residents, and the top occupation in the area is Roustabouts for Oil and Gas. Salamatof has the lowest per capita income amongst the Central
Peninsula communities. At $16,000, the per capita income is nearly 25% lower than the Central Peninsula per capita income of $21,515. Despite
this, unemployment claimants were lowest in Salamatof than any other community, with only 4% of the population claiming unemployment in
2009.48
46
Education
There are no state-operated education facilities in the community. Students attend Kenai city schools for elementary and secondary education.
Residents of Salamatof travel to Central Peninsula Hospital Soldotna for their hospital needs. Auxiliary health care is provided by Central
Emergency Services and the hospital. Emergency services have air, highway, and coastal access.
Native Tribes
Approximately one-fifth of Salamatof residents are members of the Salamatof Native Association (SNA). Headquartered in Kenai, the SNA works
to preserve and protect their culture and heritage and promote pride by enriching and educating its youth for the future.49
Soldotna
Population: 4,021
2009 New Hires: 624
Female workers: 49%
Overview
Located about ten miles southeast of Kenai along the Kenai River, Soldotna is a first Class city lying at the junction of the Sterling and Kenai Spur
Highways. Soldotna was named for a nearby stream; it is a Russian word meaning “soldier.” Others believe it is derived from an Indian word
meaning “streak fork.” The first homesteaders were World War II veterans, given a 90-day preference over non-veterans in selecting and filing
for property in 1947. That same year, the Sterling Highway right-of-way was constructed from Cooper Landing to Kenai. Soldotna was the site for
the bridge crossing the Kenai River.
47
A post office opened in 1949, with stores and a community center shortly thereafter. Soldotna continued to develop because of its strategic
location at the Sterling-Kenai Spur Highway junction. In 1957, oil was discovered in the Swanson River region, bringing new growth and
development. Soldotna was incorporated as a city in 1960.
In the past fifty years, Soldotna has experienced a rapid population growth. When incorporated as a city in 1960, Soldotna was home to 332
residents. Today, Soldotna is the third-largest town on the Peninsula with a population of 4,386.50 Soldotna has grown 6% since the 2000 census,
surpassing 4,000 residents first in 2003 and then again in 2009. 88% of the population in white, 5% is Native, and 3% are multi-racial.
The Soldotna Economy
2009 Soldotna Gross Sales by Line of Business
Wholesale
Government
4%
Resource 0%
Manufacturing Transport /
Production
Warehouse
3%
0%
Professional
Utilities 2%
Services
3%
4%
Services
Tourism
7%
2%
Property
Rentals
4%
Construction
5%
Sales
66%
In terms of gross sales, Soldotna is dominated by the Sales
Line of Business, including retail sales and restaurant/bar
sales. Fred Meyer is one of the largest employers and
taxpayers in the Borough, although their business is expected
to take a hit in 2010 with the opening of Wal-Mart in Kenai.
Sales dominate the twelve Lines of Business in Soldotna,
accounting for nearly two-thirds of the annual gross sales for
the city. Since 2004, Sales has grown 30%, while gross sales
have fallen in Tourism by over 70% and in Wholesale Trade by
over 40%.
Several of the Borough’s largest employers are located in
Soldotna, including the Kenai Peninsula Borough School
District, Central Peninsula Hospital, Kenai Peninsula Borough
offices, and Frontier Community services. The largest
employers in Soldotna are the School District, Central
Peninsula Hospital, the State of Alaska, Fred Meyer, and the
Borough. Employment is significant in the Trade,
Transportation, and Utilities, Educational and Health Services,
48
Natural Resources and Mining, Local Government, and Leisure
and Hospitality industries. Retail Salespersons make up the
largest occupation for Soldotna residents.51
490
Like the rest of the Borough, Soldotna saw a dip in gross sales in
2009 compared to 2008. However, the 11.5% decrease for
Soldotna was the lowest among the cities in the Borough outside
of Homer. Eight Lines of Business decreased in gross sales in
2009, with the biggest dollar decreases coming from Sales (loss
of over $30 million), Construction (loss of over $12 million), and
Professional Services (loss of nearly $3 million). Increases were
seen in Wholesale Trade, Utilities, Government, and
Manufacturing – each Line of Business increasing between 9%
and 18%.
City of Soldotna Gross Sales by Year
470
450
430
410
390
370
350
Sales
2004
2005
2006
2007
2008
2009
361
396
433
429
465
417
2010 employment does not expect to change significantly in Soldotna, with 73% of companies not anticipating any change in employment. The
remaining 27% of respondents are split nearly evenly between gains and losses in employment for the coming year. However, over the next five
years Soldotna companies expect a massive increase in employment due to capital improvement projects. Multiple organizations expect to
increase employment by at least a dozen, and the average per-company employment gain over the next five years in Soldotna is over eight fulltime positions per company. This massive increase is nearly three times the gain from the next closest city, Kenai.
Despite this future gain, gross sales for 2010 in Soldotna are expected to increase only very slightly. Over 27% of Soldotna companies expect
sales to decline in 2010, a figure greater than Kenai (18%), Homer (19%), and Seward (also 19%). Economic confidence in Soldotna for the
Borough is also the lowest out of the four largest cities. A mere 43% believe the Borough economy will improve in 2010, about ten percentage
points below the other three cities on average.
49
Barriers to Growth
The national economy, health insurance, and energy prices are the three most disruptive factors to Soldotna, as each is a significant barrier to
more than a fifth of local businesses. High energy prices have increased prices in 38% of Soldotna businesses. Employment cuts due to high
energy prices, 14% of respondents, are the highest among the four largest cities. Soldotna businesses also complain of workforce issues, and
access to a trained workforce, entry-level job readiness, and worker availability are more significant barriers in Soldotna than they are in the rest
of the Borough. Taxes, regulations, and permitting are not as much of a factor in the operation of Soldotna businesses as they are throughout
the rest of the Borough.
Unlike many other communities in the Borough, the majority of Soldotna businesspeople do not think access to a larger market is their biggest
business improvement. More than any other of the four largest cities, Soldotna respondents would like to improve employees and the workforce
and also need greater access to financing. Peninsula marketing is also seen as an area of improvement, as many respondents feel like they are
losing customers to Homer, Seward, and Cooper Landing.
An improved economy is universally seen as one of the largest opportunities in Soldotna. The city hopes to see rises in tourism, oil and gas
exploration, and natural resource development. Population growth, tied with service-based companies, local consulting, and recreational
services, is believed to bring more year-round opportunities to the area. Local agriculture, ecotourism, and alternative energy sources hope to
turn Soldotna into a more sustainable city. Education opportunities, both vocational education and post-secondary education through Kenai
Peninsula College, are also areas for growth in Soldotna.
Envision Soldotna 2030
Envision Soldotna 2030 is a city-planning initiative to drive economic and community growth over the next two decades. The goal of the initiative
is to provide implementable policies – based on goals identified by the community – that will shape and direct new growth and development in a
manner that promotes the health of the Kenai River, the quality of the build environment, and the operational and fiscal efficiency of providing
transportation and other public infrastructure. Public involvement is an important component in this process, and the draft vision and goals
were determined through interviews, a community survey, work sessions, focus groups, student art projects, planning and Zoning meetings, and
presentations to the City Council.
50
Education
Thanks to Kenai Peninsula College, Soldotna has become an education hub on the Kenai Peninsula. The city is home to two high schools, Skyview
and SoHi (Soldotna High School). Over the past five years, Skyview enrollment dropped from 526 to 359 students. 52 As a response to those
questioning the viability of the two schools, the KPBSD decided in February 2010 to begin sharing course their offerings. The schools will begin
coordinating class schedules and start a twice-daily bus shuttle to and from the schools. In the future, Skyview seems poised to offer more
advanced vocational courses while SoHi will offer more advanced placement courses. Currently, Skyview serves an area that includes Soldotna,
Sterling, Kasilof, Cooper Landing, and part of Kalifornsky Beach road.53
In addition, Soldotna runs a home-school/correspondence program through the School District, serving the needs of over 900 home-school
parents throughout the Peninsula. The city also has three elementary schools (K-Beach, Redoubt, and Soldotna El), a middle school (Soldotna
Middle), a charter school (Soldotna Montessori), and a high-tech high school (River City Academy).
Medical Services
Soldotna is home to the Central Peninsula Hospital, providing service for an area of over 25,600 square miles. The hospital is currently
undergoing a $50 million phased expansion project to replace 33 multi-patient rooms with 50 single-patient rooms, add two surgery rooms for a
total of four, and renovate the existing emergency room, lobby, and cafeteria. In addition to the hospital, the city also has many local specialized
facilities ranging from mental health centers to residential treatment facilities for chemically dependent adults, to other specialized offices such
as obstetricians and gynecologists, ophthalmologists, pathologists, neurologists, internal medicine specialists, and family practitioners. As a
result, Soldotna has developed into a medical hub for the Central Peninsula.
Recreation
The Central Peninsula Sports Center provides an Olympic-sized indoor ice rink, racquetball courts, and conference facilities capable of holding
350 people with adjoining kitchen facilities. The Kenai River Brown Bears, a junior-league hockey team, plays their home games each winter at
the Sports Center. The city also maintains a total of 11 parks, which offer a range of amenities from river access and camping to children’s play
equipment. The Soldotna Community Playground opened in spring of 2010, providing a much-needed family recreation area. Given the
reduction in school-aged children, the City of Soldotna has put an emphasis on creating a diversified community that meets families’ essential
needs.54 Just a short distance from Soldotna lay the Swanson River and Swan Lake Canoe trails in the Kenai National Wildlife Refuge. The Refuge
also features campgrounds, hiking trails, and trout-stocked lakes.
51
Transportation
Soldotna sits at the junction of the Kenai Spur Highway and the Sterling Highway, putting it in a prime location for travelers along the Sterling
Highway. A state-owned airport is currently undergoing expansion projects. Residents and business owners alike have expressed interest in a
public transportation portal connecting the cities of Kenai and Soldotna.
1
Well House B Water System Improvement Project
2
Birch Street Traffic Light
3
Binkley Street Rehabilitation Project
4
Soldotna Creek Park Development Phase II
5
Design and Construct Library Expansion
6
Centennial Park Water and Sewer Improvements
7
Soldotna Airport Apron Improvements, Phase II
8
Water / Sewer Master Plan Update
9
Soldotna Avenue Water & Sewer Project
10
Redoubt Avenue Street Improvement Project
Funding Request
$695,000
$1,500,000
$900,000
$250,000
$5,500,000
$750,000
$2,500,000
$95,000
$672,000
$1,925,000
Sterling
Population: 4,272
2009 New Hires: 802
Female workers: 45%
52
Overview
Sterling is an unincorporated community at the junction of the Moose and Kenai Rivers about 20 miles east of Kenai. The Kenai Peninsula has
been the home of the Kenaitze Indians for hundreds of years. Sterling is a community that apparently had its name formalized in 1954 when a
post office was established. An archaeological site, containing prehistoric house pits, has been discovered at the Isaac Walton Campground.
Sterling has seen a steady and large population increase since the 2000 census. The community has grown 14% over the past decade. 93% of
residents are white, 3% are Native, and 2% are multi-racial.
The Sterling Economy
Soldotna provides many employment opportunities for Sterling, as the Central Peninsula Hospital, Fred Meyer, and the Borough are among the
five largest employers in the community. The School District and the State of Alaska also employ many Sterling residents. Retail Salesperson and
Teachers are the two most common occupations in the community, and the most common industry is Trade, Transportation, and Utilities,
followed by Natural Resources and Mining and Educational and Health Services.55
Sterling is not expected to face major employment changes in 2010. 86% of companies do not anticipate any change, although the remaining
14% expect a modest decline in employment. More concerning is the lack of long-term employment in Sterling. On average, only 0.3 jobs per
organization will be created in the community. Gross sales are expected to increase in Sterling, but the community will face some instability. 14%
of companies expect a moderate increase, 43% expect a slight increase, and another 14% expect a severe decline in gross sales.
Barriers to Growth
Sterling businesses are very uniform when communicating their barriers to growth. Federal and location regulations, in addition to the national
economy and energy prices, are the most prevalent and significant barriers in the area. Permitting, access to capital, and workers compensation
assistance are also detrimental factors to area organizations. Regulatory hurdles are often aimed at the Department of Transportation and
Borough zoning. Many organizations face trouble getting access onto the Sterling Highway for their business, and some mention that the zoning
in the community makes little sense. Workforce issues are not a concern, as very few found entry-level job readiness, access to a trained
workforce, or worker availability to be an issue.
53
Sterling organizations would like to improve both the size of the market (57%) and access to financing (43%). Driveway access to the Sterling
Highway is also a pressing concern for a number of businesses. Tourism is seen as the largest opportunity for economic development in Sterling.
The community also believes it could see gains with oil and gas exploration and through residential and commercial real estate.
Education
Sterling Elementary is proud to have been selected as a NASA Explorer School. Students at Sterling Elementary participate in regular physical
education and music classes. Band is an option for students in grades 5 and 6. Other curricular and co-curricular activities include art, Artist-inResidence programs, computer classes, forensics, Battle of the Books, library club, Boy Scouts, Girl Scouts, 4-H, basketball and soccer.
Sterling residents utilize Central Peninsula Hospital in Soldotna for their primary health needs.
Recreation
Sterling is planning to build a 6,904 square foot building that includes an entry way, bathroom, mechanical room, storage room, and a
multipurpose room. The multipurpose room will be used for large and small functions, such as meetings, artistic and musical functions, public
health fairs, athletic activities, dinners, weddings, bazaars, garage sales, a museum, and a library. In the event of catastrophes such as floods or
forest fires, the room could also be used as emergency shelter. The Community Center will also give Sterling a place to display the community’s
historical mementos from the early homestead days. Skilak Lake is a large recreational lake outside of Sterling, about one hour from Soldotna
and two hours from Anchorage. The lake and grounds are popular for canoeing, camping, and hiking.
Transportation
The Sterling Highway provides access to Anchorage. Sterling business owners have found numerous problems getting access onto the Sterling
Highway for their business.
1
Health / Safety & Community Multi-Use Facility
2
Storage / Maintenance Building
Funding Recipient
Sterling Community Club, Inc.
Sterling Area Senior Citizens, Inc.
Funding Request
$500,000
$90,000
54
Section V: Community Overviews
The Southern Peninsula
55
The Southern Peninsula
Overview
The Southern Peninsula enjoys a broad spectrum of diversity centered on the City of Homer. Kachemak City and smaller communities such as
Anchor Point, Kachemak City, and the traditional ‘Old Believer’ villages of Nikolaevsk, Kachemak-Selo, Razdolna, and Voznesenka make up the
rest of the Southern Peninsula. Across the Kachemak Bay, with no road access, are the cities of Seldovia, the village of Seldovia, and the more
traditional Native villages of Port Graham and Nanwalek.
The Kachemak Bay area has been home to Denai’ina and Alutiiq Indians for thousands of years. Development began in the region in the 1890’s
when early adventurers arrived to pursue coal and gold mining development. After these developments dwindled in the early 1900’s,
commercial fishermen and homesteaders arrived in the region, shaping the communities that exist today.
Community
Population
Anchor Point
Diamond Ridge
Fox River
Fritz Creek
Happy Valley
Homer
Kachemak
Nanwalek
Nikolaevsk
Ninilchik
Port Graham
Seldovia
Seldovia Village
TOTAL
1,772
860
604
1,818
561
5,551
430
226
315
824
137
241
166
13,505
Per Capital $
$18,668
23,864
7,963
18,937
19,377
21,823
21,030
10,577
10,390
18,463
13,666
23,669
21,396
$19,689
Total Wages
$25,571,566
10,790,163
1,976,263
23,845,529
5,625,349
70,216,984
5,699,017
1,345,569
222,998
10,358,252
1,290,459
3,138,420
2,100,373
$162,180,942
% Unemployment Workers 45+ Female
% Native
Claimants
Workers
11.3%
50%
48%
3%
6.4
50
51
3
1.2
28
61
0
13.5
50
53
2
11.6
53
50
6
7.0
47
52
4
5.6
56
53
6
13.3
24
51
89
6.7
35
55
2
11.8
53
46
14
13.9
46
41
85
8.7
50
59
17
8.4
42
53
37
8.8%
47%
51%
7%
56
The Southern Peninsula Economy
Homer is a bustling retail center, maintaining its commercial fishing heritage, while encouraging the development of the visitor and service
industries. Driving the region’s economic engine are several major industries. With its ties to the sea, the Southern Peninsula has traditionally
profited from commercial fishing. Fishing vessels from the region participate in many of Alaska’s profitable fisheries from the Bering Sea to
Southeast Alaska. Supporting industries have grown up around the fishing fleet, providing services from ship repair to groceries. In recent years,
the visitor industry has grown significantly, adding an element of diversity to the area’s economy. Elegant hotels, cozy bed and breakfasts, art
galleries, and gift shops have proliferated in response to the demand for visitor services.
Education
Homer is home to the Kachemak Bay campus of Kenai Peninsula College. Enrollment at the Kachemak Bay campus is 450 students, with
approximately 50 staff consisting of full-time and adjunct faculty, administrative staff, and student assistants. Kenai Peninsula College also holds
the annual Kachemak Bay Writers’ Conference, a five-day conference attracting more than 150 readers and writers. The event features
workshops, readings, and the business of writing. The event also includes local tour activities for guests.56
The South Peninsula Hospital employs over 300 local residents, making it the area’s largest employer and contributing $12 million annually into
the local economy in payroll alone. Combined with service contracts, materials acquisitions, and leases the hospital has a significant contribution
to the Southern Peninsula’s well being. The South Peninsula Hospital Service Area has the following capital improvement projects
Priority
1
2
Project Title
Fire Suppression System Booster Pump
Automatic Operating Room Doors
Funding Recipient
Kenai Peninsula borough
Funding Request
$90,000
$32,000
Recreation
The communities surrounding Homer are known for their recreational activities. The stunning vistas of imposing mountains reflected in the icy
waters of Kachemak Bay and the region’s multitude of recreational activities draw visitors from around the world. Sport fishing with one of the
many ocean charters operating from the Homer Spit is one of the region’s most popular pastimes. Angling for steel head trout, dolly varden,
silver salmon, or king salmon on the Anchor River is also popular. Kachemak Bay offers recreational activities as well, such as sea kayaking,
sailing, and marine wildlife viewing. Across the Bay, picturesque communities await the traveler, who can bike or hike on the area’s trail system,
57
or spend a leisurely afternoon beachcombing or taking in the beauty of hidden coves. These remote wilderness areas also feature excellent
wildlife viewing opportunities, from sea birds to brown bears.
Winter recreation is an often overlooked, but much enjoyed pastime. Cross-country skiing, skijoring, and dog mushing present unique outdoor
opportunities during the winter months. The Southern Peninsula may be most famous for the Caribou Hills, a popular destination for snow
machine enthusiasts.
Arts & Culture
A haven for artists, the Southern Peninsula is noted for its cultural fare. With more art galleries per capita than most locales, Homer has ample
space to showcase its abundant regional talent. Potters, painters, sculptors, carvers, and fiber artists draw inspiration from the natural beauty of
Kachemak Bay to create their works. The nationally-recognized Pratt Museum, located in Homer, enriches the region’s historical and cultural
offerings. The museum houses natural and modern history exhibits in addition to artistic and scientific displays. Theater also plays a prominent
role in the region, with Homer’s Pier One Theater offering live performances throughout the year.
Transportation
Southern Peninsula transportation opportunities vary greatly on the community. Homer, Anchor Point, Kachemak City, surrounding communities
are on the road system. Across Kachemak Bay, Seldovia, Port Graham, Nanwalek, and surrounding villages are only accessible by air and sea.
Homer’s infrastructure is well suited to accommodate continued industrial and business development in the surrounding communities of the
Southern Peninsula. A district airport serves the region, providing regularly scheduled passenger and cargo flights. The airport can accommodate
all but the largest jet aircraft. Smaller charter services also operate from the region’s airport.
58
Anchor Point
Population: 1,772
Main Industry: Trade, Transportation, and Utilities
2009 New Hires: 267
Female workers: 48%
Overview
Anchor Point is an unincorporated census designated place that lies along the Anchor River. Anchor Point stretches through the Anchor River
valley and atop the bluffs overlooking the Cook Inlet. The community is approximately 20 miles north of Homer and 20 miles south of Ninilchik.
The earliest inhabitants of the Anchor River Valley were the Tenaina Indians, a branch of the Athabascan tribe. In the summer of 1778, Captain
James Cook and crews of the Resolution and Discovery sailed into the Inlet looking for a Northwest Passage. After losing an anchor in the tidal
currents, Anchor Point was given its current name. During the spring of 1896, gold fever struck the area, bringing a group of men and women to
Anchor Point to sluice and pan for gold. The 1940s saw an influx of missionaries and homesteaders, a result of the post-war era. A post office
was established in 1949. Residents of Anchor Point consist of homesteaders, commercial fisherman, fishing guides and charter operators, small
business owners, and a growing population of retired Alaskans. 92% of Anchor Point residents are white, 4% are multi-racial, and 3% are Native.
The Anchor Point Economy
South Peninsula Hospital employs more Anchor Point residents than any other employer. The most common industry for workers in Anchor
Point is Trade, Transportation, and Utilities, with the most common occupation as Operating and Construction Equipment Engineers.57 Many
residents work in Homer in a variety of positions. The community caters to the sport-fishing industry, and several lodges provide services. A large
portion of the population makes a living in the tourism industry from the Anchor River to the Cook Inlet via guided fishing trips. Vacationers visit
in the highest numbers between May and September.
59
Employment & Sales Expectations
There are no anticipated changes in Anchor Point employment in 2010. Looking toward the future, 80% of companies in Anchor Point anticipate
a capital improvement project in the coming five years. These projects are expected to bring an average of 1.4 full-time jobs per company.
Similarly, 60% of companies in Anchor Point expect gross sales to increase in 2010 compared to 2009, with no organizations expecting a
decrease.
Barriers to Growth
Outside of Cooper Landing, organizations in Anchor Point face more barriers to growth per community than any other community in the
Borough. The national economy, energy prices, and federal regulations are both the most significant and prevalent hurdles in the community,
affecting 100% of businesses surveyed. Workers compensation insurance, permitting, and access to capital each affect 80% of businesses in the
community. Health insurance, property costs, and local regulations do not play a major role in Anchor Pont.
Economic Development opportunities
The most prevalent improvement Anchor Point businesses would like to see is peninsula-wide marketing. They feel Anchor Point has a wealth of
recreation and tourist-related offerings, but that the community gets lost in the shuffle with Homer nearby. Other businesses would like to see
an improved workforce in Anchor Point.
Government
Anchor Point is an unincorporated community. The Kenai Peninsula Borough is the governing body, with one member of the assembly
representing the Southern Peninsula communities excluding Homer. The Anchor Point Chamber of Commerce has become a strong voice for the
community when presenting concerns of the community to Borough, State, and Federal representatives. 58 Many residents worry that their
voice is not heard in the Kenai Peninsula Borough Assembly, as representatives from the Southern Peninsula generally cater towards Homer’s
needs.
Education
Chapman School is a K-8 elementary and middle school in Anchor Point attended by 94 students. Chapman is one of the better schools on the
Southern Peninsula, and students attend Homer area schools for secondary education.
60
South Peninsula Hospital, located only 20 minutes away in Homer, is the primary destination for health coverage in Anchor Point. The Seldovia
Village Tribe also operates a Satellite Clinic in Anchor Point. The Anchor Point Fire Service Area has the following capital improvement projects:
Priority
1
2
Project Title
Underground Water Storage for Fire Suppression
Class 1 Fire Engine-Pumper
Funding Recipient
Funding Request
$50,000
$150,000
Recreation
Nicknamed the “fun capital” of the Kenai Peninsula, Anchor Point offers residents and visitors river fishing and saltwater fishing, camping, hiking,
snow machining, cross country skiing, and nearby ice fishing. Angling for steel head trout, dolly varden, silver salmon, or king salmon on the
Anchor River is a popular activity for the entire region. The Anchor River offers great salmon fishing and the beaches offer razor clam digging
during low tides. On clear days, views of the Cook Inlet reveal four active volcanoes: Mount Spurr, Mount Redoubt, Mount Iliamna, and Mount
Augustine. The Anchor Point Visitor Center is open Memorial Day through Labor Day. The Senior Center in Anchor Point has become a de facto
Community Center. In the last year, the Senior Center has had over 200,000 guests, members, and visitors. The community frequently uses the
Senior Center for activities.
Infrastructure
An expansion to the piped water system to the schools, homes, and businesses along the Sterling Highway is underway. The school well has
been shown to contain lead, and some area wells are contaminated with benzene. The Anchor Point Safe Water Corp. was formed to pursue the
development of a safe water system.
Transportation
Anchor Point is the westernmost point in North America that you can reach via the highway system. A 200-mile drive to Anchorage and a short
drive to Homer offer airports, state ferry access, and docking and boat launching facilities.
Capital Improvements
1
Senior Center Improvements
2
Building a New Library
Funding Recipient
Anchor Point Senior Citizens, Inc.
Anchor Point Public Library, Inc.
Funding Request
$200,000
$375,000
61
Diamond Ridge
Population: 860
Main Industry: Trade, Transportation, & Utilities
2009 New Hires: 86
Female workers: 51%
Overview
Diamond Ridge is an unincorporated census designated place about 1.5 miles northwest of Homer. The ridge for which the community is named
is at 1,100 ft. elevation, and is five miles long. In the summer of 1778 Captain James Cook and crews of the Resolution and Discovery sailed into
the Inlet looking for a Northwest Passage. Diamond Ridge is a local name, first reported in the 1950s by the USGS. 92% of Diamond Ridge
residents are white, 3% are Native, and 3% are multi-ethnic.59
The Diamond Ridge Economy
Many residents work in Homer in a variety of positions. The community caters to the sport-fishing industry, and several lodges provide services.
The main industry for Diamond Ridge residents is Trade, Transportation, and Utilities, employing nearly a quarter of the area’s workers. The
largest employer for residents is the school district, and the top occupation is Teacher and Instructors. Diamond Ridge has the highest per capita
income of all communities in the Southern Peninsula. The community also has low unemployment, with only 6.4% of residents filing
unemployment claimant in 2009, compared to 8.8% across the Southern Peninsula and 10.0% across the Borough. 60
Education
There are no state operated schools located in the community. Elementary and secondary students attend Homer area schools.
Auxiliary health care is provided by South Peninsula Hospital in Homer.
62
Transportation
The Sterling Highway provides access to Anchorage. Nearby Homer offers an airport, State Ferry access, and docking and boat launching
facilities.
Fox River
Population: 604
Main Industry: Local Government
2009 New Hires: 42
Female workers: 61%
Overview
Fox River is an unincorporated community, about 25 miles northeast of Homer on the north shore of Kachemak Bay. Fox River was reported by
Dall of the U.S. Geological Survey in 1895, and may have been named for Theodore Fox, Vice President of North Pacific Mining and
Transportation Company, which operated in Kachemak Bay in 1894. Nearly 100% of the population of Fox River is white.
The Fox River Economy
Wood, fiberglass and aluminum boats, handbags and canvas bags for fishermen are manufactured at Fox River. Local government employs over
one-third of For River residents, the highest of any industry in the community. The school district is the top employer in the community, and the
most common occupation in the community is Healthcare Support Workers. Fox River has the lowest unemployment rates in the Borough, with
only 1.2% of residents filing unemployment claimants in 2009.61
Education
There are no state operated schools located in the community. Students attend Homer schools for elementary and secondary education.
63
Medical and Emergency Services
Auxiliary health care is provided by South Peninsula Hospital in Homer. Fox River is classified as a highway village, and Emergency Services have
highway, coastal and helicopter access.
Fritz Creek
Population: 1,818
2009 New Hires: 246
Female workers: 53%
Overview
Located on the north shore of Kachemak Bay, Fritz Creek is an unincorporated community about seven miles northeast of Homer. The local
name was first reported in 1904 by R.W. Stone of the U.S. Geological Survey. 93% of Fritz Creek residents are white, 3% are multi-racial, and 2%
are Native.
The Fritz Creek Economy
Nearly one-quarter of Fritz Creek residents are employed by the Local Government. The school district is the top employer in the community,
and Teachers and Instructors are the most common occupation. Nearby Homer offers fishing, fish processing and a relatively diverse economy.62
Education
There is one school located in the community, Kachemak Selo. A kindergarten through secondary school, 2009 enrollment at the school was 93
students.
64
South Peninsula Hospital provides auxiliary health care to Fritz Creek. Fritz Creek is classified as a highway village. Emergency Services have
highway and coastal access, and are within 30 minutes of a higher-level satellite health care facility. Auxiliary health care is provided by South
Peninsula Hospital in Homer.
Transportation
The Sterling Highway provides road access to Anchorage and beyond. Nearby Homer offers an airport, harbor and docking facilities, and a State
Ferry landing.
1
Willard Road Improvements
2
Voznesenka Community Center
Funding Recipient
Snomads, Inc.
Voznesenka Community Council, Inc.
Funding Request
$165,000
$1,175,000
Happy Valley
Population: 561
2009 New Hires: 66
Female workers: 50%
Overview
Located about ten miles south of Ninilchik and twenty miles northwest of Homer, Halibut Cove is an unincorporated census designated place
that lies along the Sterling Highway. 88% of Happy Valley residents are white, 6% are Native, and 4% are multi-racial.
65
The Happy Valley Economy
South Peninsula Hospital is the largest employer for Happy Valley residents. About 19% of area workers are employed by the Trade,
Transportation, and Utilities industry, and the most common occupation is Cashiers. The per capita income in Happy Valley is at the average for
the Southern Peninsula, although the community sees higher unemployment rates. At 11.6% of the population, there were 65 unemployment
claimants in 2009.63
Homer
Population: 5,551
2009 New Hires: 733
Female workers: 52%
Overview
The seaside first class city of Homer is a gateway to the Kachemak Bay. Situated on the north shore of the Bay, Homer was first settled in the late
1800s. In 1895, the U.S. Geological Survey arrived to study coal and gold resources. Prospectors bound for Hope and Sunrise disembarked at the
Homer Spit. The community was named for Homer Pennock, a gold mining company promoter, who arrived in 1896 and built living quarters for
his crew of 50 on the Spit. Their plans were to mine the beach sands along the Cook Inlet, from Homer to Ninilchik. The Homer post office
opened shortly thereafter.
In 1899, Cook Inlet Coal Fields Company built a town and dock on the Spit, a coalmine at Homer’s Bluff Point, and a 7-mile-long railroad, which
carried the coal to the ends of the Homer Spit. Various coal mining operations continued until World War I, and settlers continued to trickle into
the area, some to homestead in the 1930s and 40s, others to work in the canneries built to process Cook Inlet fish. Coal provided fuel for homes,
and there is still an estimated 400 million tons of coal deposits in the vicinity of Homer. After the Good Friday earthquake in 1964, the Homer
Spit sunk 4 to 6 feet, leading to the relocation of several buildings and also to the city’s incorporation. The earthquake also shrunk the Homer
66
Spit to 508 acres and killed most of the vegetation, making it today mostly gravel and sand. Homer is the second-largest city on the Peninsula,
with a population of over 5,500. 91% of Homer residents are white, 4% are Native, and 3% are multi-racial.
The Homer Economy
Homer has a very diverse economy, with five Lines
of Business accounting for at least 10% of the city’s
annual gross sales. The largest Line of Business is
Sales, contributing one-third of the city’s annual
gross sales, or $118 million. This Line of Business
has grown steadily over the past decade. Utilities
increased over 11% in 2009 compared to 2008,
surpassing the $50 million mark, and Services has
grown by nearly 60% since 2004. Tourism has
suffered in Homer over the years, seeing a 23%
decline in gross sales from 2008 to 2009 and a 37%
decline from 2004 to 2009. Wholesale Trade also
decreased over 20% in 2009.
2009 Homer Gross Sales by Line of Business
Transport /
Warehouse
5%
Manufacturing
2%
Resource
Production
0%
Government
1%
Wholesale
10%
Sales
33%
Utilities
14%
Services
12%
Tourism
6%
Construction
10%
Homer’s diverse economy is dominated by retail
Professional
Services
and service businesses, but includes tourism,
3%
commercial fishing, and timber. Port and harbor
facilities provide moorage for two Coast Guard
Property Rentals
4%
vessels, Alaska Marine Highway and a U.S. Fish and
Wildlife vessel. It also serves local pleasure and commercial fishing boats from around the state. During the summer months, the population
swells with students and others seeking cannery or fishery employment and retired people with summer homes in the area. Sport fishing for
halibut and salmon contribute significantly to the economy. The Homer port operates 700 commercial and charter boats year-round, growing to
1,500 boats in the summer months, and is home to Alaska’s largest fleet of halibut sport-fishing boats.64 Homer also has the largest small boat
harbor in the state, and has plans to build an additional harbor.
67
Tourism makes up a larger portion of the Homer economy. In 2006, the city hosted nearly 153,000 nonresident visitors, with 98,500 staying an
average of 3.3 nights.65 Revenue from tourism is expected to slightly increase in Homer the summer of 2010 due to a Holland America Line cruise
ship, the Amsterdam, coming to port in the city nine times in the summer. The Amsterdam has a capacity of 1,380 passengers, equating to over
12,000 tourists coming into the community while the ship is in port. On May 25, the first day the Amsterdam came to port, the Pratt Museum
had 251 visitors. The previous day, the museum had 23.66
City of Homer Gross Sales by Year
390
370
350
330
310
Homer weathered the storm better than any other city in
2009, with gross sales declines of only 6%. The $17 million
drop in gross sales was mostly seen from declines in the
Tourism and Wholesale Trade Lines of Business. In 2008,
Homer’s gross sales totals were only half of Kenai’s. In 2009,
Homer’s gross sales were 92% of Kenai’s. This figure rings
true to Mayor Jim Hornaday’s tongue-in-cheek claim that the
world could be in a recession and Homer would be the last to
find out.
290
The Kenai Peninsula Borough School District is the largest
employer in Homer, and more residents are employed as
250
Teachers and Instructors than any other profession. South
2004
2005
2006
2007
2008
2009
Peninsula Hospital, South Peninsula Behavioral Health
Sales
290
309
356
353
383
360
Services, Safeway, and the City of Homer also employ many
residents. The Trade, Transportation, and Utilities industry employs more Homer residents than any other industry, with Local Government,
Leisure and Hospitality, Educational and Health Services, and Construction also among the largest industries.67
270
Sales and Employment Expectations
In 2010, Homer respondents expect slightly higher employment gains than the rest of the Borough. 22% of businesses expect employment gains
in the coming year, and only 9% expect losses. When compared to the Borough averages of 13% and 11% respectively, Homer sits near the top
of the list of the four largest cities for employment gains. In addition, gross sales expectations in Homer are expected to increase at the highest
68
rate among the four largest cities of the Borough. Over 60% of Homer companies expect sales to increase in the coming year, nearly ten
percentage points higher than Kenai, the next highest of the cities.
Barriers to Growth
Of the four largest cities, Homer faces the fewest reported barriers to organizational growth and development. Energy prices and the national
economy are the most significant and prevalent barriers in the city, impacting 84% and 76% of businesses respectively. Access to capital, health
insurance, and workers compensation insurance also stood in the way of development, especially for smaller organizations in the area.
Compared to other communities and cities, federal, state, and local regulations and permits are not a hindrance to growth. Many employers find
it difficult to find a capable employee in Homer, and many residents find it difficult to find a stable year-round job in Homer.
The business community of Homer sees the greatest area of improvement as a larger market for Homer, accomplished through a number of
different methods. The cruise ships that will be new to Homer in the summer of 2010 are seen as one of the greatest opportunities in the city,
and also an area that businesses are unsure how to leverage. Improved peninsula marketing also is sought to bring more tourists down to
Homer, especially as the tourist industry rebounds in the next season or two. Peninsula-wide interaction is also an area of improvement many
Homer businesses would like to see in order to get a larger market for the city.
Homer residents find a number of economic development opportunities in the city, most notably tourism and the upcoming cruise ships to
Homer. Educational opportunities, specifically for the expansion of Kenai Peninsula College, are also a popular area of interest. Increased
economic diversity, through conference facilities, manufacturing, an arts campus, service-based companies, young professional employment,
and small business development, is also seen as an untapped opportunity in Homer. Others would like to see alternative energy resources, local
agriculture, e-businesses, and ecotourism developed.
Comprehensive Plan Guidelines
In 2010, the Homer CEDS came up with the following guidelines for economic development in Homer.
Maintain and grow Homer’s strong economic industries including fishing, marine trades, marine culture, shipping, tourism, education,
arts, entertainment, and culture.
Encourage the creation of more year-round living wage jobs, including government jobs and training programs, and technology related
business.
69
Support regional renewable and non-renewable energy exploration and production, while preserving the quality of life and positively
supporting the unique character of the community.
Provide affordable housing.68
Housing
In 2004, a study was published for the Kenai Peninsula Housing Initiative that looked at housing in Homer. It found a limited number of both
affordable and market-rate apartments in Homer of all sizes. In addition, market rates in Homer were found to be higher than the rest of the
Borough, and often do not include utility costs.69
Central Business District
A growing concern for residents of Homer is the revitalization of downtown development. Embracing and developing a downtown area that is
walkable, enhances a sense of community, and provides a variety of retail options will result in additional employment, recreation, and social
opportunities.
Education
Homer is home to the Kachemak Bay branch of the Kenai Peninsula College, part of the University of Alaska system. Total enrollment reached
443 students in spring 2009, consisting of 28 full-time students, 352 part-time students, and 63 non-credit students. The campus is staffed by
approximately 50 employees, and campus facilities house classrooms, a computer lab, learning center, bookstore, library, science lab, student
services area, and student commons. There is a push by Homer residents to expand the Homer campus and also to increase vocational
education offering in high schools.70
There are also a number of elementary and secondary schools in Homer. Homer High is where the majority of students attend high school,
approximately 400 per year, although Homer Flex High School is also in the community to facilitate students’ academic, vocational, and
social/emotional skills toward success in their post secondary lives. Homer Middle services students in 7 th and 8th grade, and McNeil Canyon and
Paul Banks schools serve as elementary institutions. In addition, Fireweed Academy serves as a charter school seeking to provide a
compassionate learning environment that gives students, parents, teachers, and community members an opportunity to develop self-reliance,
cooperation, creativity, reasoning ability, personal growth, and academic achievement. 71
70
The South Kenai Peninsula Communities Project found that over a quarter of Homer residents do not have any health insurance. Of those who
do, many only possess catastrophic coverage.72 South Peninsula Hospital sits in Homer, providing primary health care and emergency services to
much of the Southern Peninsula. The Seldovia Village Tribe is building a 7,000 square foot wellness center in Homer.
Recreation
While commercial and sport fishing are the center of the economic activity, Homer also has a large community of artists. The Pratt Museum,
sponsored by the Homer Society of Natural History, focuses on the cultural and natural history of the Kenai Peninsula. Exhibits follow the lives of
the earliest inhabitants, homesteaders, and modern inhabitants. There is also a botanical garden in front of the museum which contains over
150 species of plants. Homer has also created an extensive walking tour through the historic community, as well as set up numerous hiking and
biking trails. The manmade Homer Spit Fishing Hole allows shore fishing for King and Silver salmon. King fishing is best from mid-May through
early July, and Silver fishing is best from July into late August. The Homer Jackpot Halibut Derby runs from May 1 through Labor Day each year.
Homer is known as the ‘Halibut Capital of the World.’
Arts & Culture
Homer is considered the cultural center of the Kenai Peninsula. Arts and culture thrives in the city, with musical performance, art galleries, openmic nights, and stage productions. The city is home to the Pratt Museum, a naturally recognized and award-winning institution dedicated to
learning the about the arts, sciences, and cultures of the Kachemak Bay region. Visitation is around 35,000 annually, with 70-80% of paid
admissions coming from nonresident pleasure visitors.73 About one-tenth of the museum’s membership is from Anchorage.
The Native Organizations are very active in Homer, running a health clinic, hockey rink, RV parks, and hotels. Natives in the community are from
a variety of different Tribes. The Village of Nanwalek is headquartered in the community, but there is also presence from the Seldovia Village
Tribe, Port Graham Village Tribe, and others.
Transportation
Sitting at the end of the Sterling Highway, Homer is affectionately known as the “end of the road.” The state-owned Homer airport provides a
6,700-foot long asphalt runway, with daily commercial flights to Anchorage, about a 45-minute flight. In addition, a seaplane runway functions at
nearby Beluga Lake. Port facilities are, perhaps, the pride of Homer. At the end of the Homer Spit, a narrow promontory of land separating
Kachemak Bay from the Cook Inlet, lays the Port of Homer. Facilities at the Port include a deep-water cargo dock, an ocean pier, and a small boat
71
harbor. Current customers at the port facilities include a wood chipping operation, cruise ships, the U.S. Coast Guard, the Alaska Marine Highway
System, fishing boats, and small pleasure craft.
1
Alternative Water Source
2
Sewer Treatment Plant Bio-solids Treatment Improvements
3
Harbor Float Replacement / Ramp 3 Gangway and Approach
4
Port & Harbor Building
5
East Boat Harbor
6
Fire Engine 4 Refurbishment
7
Skyline Fire Station
8
Firefighting Aerial Truck
9
Deep Water Dock Expansion, Phase 1
10
Fishing Lagoon Improvements
11
Karen Hornaday Park Improvements, Phase 1
12
Intersection Improvements
13
Kevin Bell Ice Arena Floor
14
Fish Dock Restroom
15
Town Center Infrastructure
72
Kachemak City
Population: 430
2009 New Hires: 54
Female workers: 53%
Overview
Kachemak is a second class city adjacent to Homer along the East Road on the northern shore of Kachemak Bay. According to W.H. Dall of the
U.S. Coast & Geodetic Survey, ‘Ka’ means water, ‘chek’ means cliff, and ‘mak’ is a suffix meaning high, great, or large. It is a Native name, first
published in 1847 on a Russian Hydrological chart. The city was incorporated in 1961. The population of Kachemak has remained quite constant
since the 2000 census, with less than a 0.5% change. 87% of the population is white, 6% is Native, and 6% is multi-racial.
The Kachemak City Economy
There are few businesses within the city boundaries, and Homer provides a variety of employment opportunities, supplies, and services. South
Peninsula Hospital in Homer employs the largest number of Kachemak residents. More workers are employed as Bookkeeping, Accounting, and
Auditing Clerks than any other occupation, and the main industry for area workers is Trade, Transportation, and Utilities.74
Education
There are no schools in Kachemak City. Students attend elementary and secondary school in Homer.
73
South Peninsula Hospital in Homer provides primary health care for the majority of Kachemak City residents. The Kachemak Emergency Services
Area encompasses 214 square miles surrounding Homer and Kachemak City and services 4,500 residents. The organization is requesting the
following capital improvement projects to improve their operations.
Priority
1
2
Project Title
Diamond Ridge Fire Station
Firefighting and Rescue Equipment
Funding Recipient
Funding Request
$3,000,000
$300,000
Transportation
The Sterling Highway provides access to Anchorage and beyond. Homer offers an airport, harbor, dock, and state ferry access.
1
Bear Creek Drive, Design and Engineering
2
Bear Creek Drive, Grinding and Repaving
3
Willard Road Improvements
Funding Request
$50,000
$550,000
Nanwalek
Population: 226
2009 New Hires: 48
Female workers: 51%
74
Overview
Nanwalek is a traditional Alutiiq village, on the south shore of the Kachemak Bay, about 10 miles southwest of Seldovia and four miles west of
Port Graham. The village was originally the site of a Russian Trading Post called Alexandrovsk. It was later called ‘Odinochka’, meaning ‘a person
living in solicitude.’ A Russian Orthodox Church was built in the community in 1870. In 1930, a replacement church was constructed, and it is a
designated national historic site. In 1991, locals changed the community name of English Bay to Nanwalek, meaning ‘place by lagoon.’
The village has seen a large population gain in the past decade, with a 28% increase since the 2000 census. 89% of Nanwalek residents are
Native, mostly a mix of Russian and Sugpiaq (Alutiiq) lineage. Villagers speak Sugtestun, a dialect of Eskimo similar to Yup’ik. 17.5% of the
population is below the poverty line, and 97% of students are considered economically disadvantaged.
The Native Village of Nanwalek is governed by the Nanwalek IRA Council, consisting of an elected seven-member body. As a traditional Alutiiq
village, their heritage is strongly based on their language, subsistence lifestyle, cultural traditions, and self-government. Their culture has
survived the Russian and American impact on their traditional lives.75 The sale of alcohol is banned in the village, although importing and
possession are legal. Permission from the Village Council is required for entry into the village.
The Nanwalek Economy
Nearly half of Nanwalek residents work for the Local Government, through the Nanwalek IRA Council or Chugachmiut. Recreation Workers make
up the largest profession in Nanwalek. The Nanwalek per capita income is one of the lowest in the Borough, falling only about 50% of the
Borough average.76
Education
Nanwalek School serves 70 students from kindergarten through 12th grade. Nanwalek School falls below the state average test scores in Writing,
Mathematics, and Science, but above the state average test scores in Reading.
Transportation
Nanwalek is not accessible by road. Boats are the primary means of local transportation. The state ferry provides service to nearby Seldovia, and
a state-owned, 1,850 foot gravel airstrip is available. There is also a four-mile trail to Port Graham.
75
Nikolaevsk
Population: 315
Main Industry: Educational and Health Services
2009 New Hires: 49
Female workers: 55%
Overview
The traditional Old Believer village of Nikolaevsk lies on the road leading from North Fork Road along the Sterling Highway, about 10 miles inland
from Anchor Point. Nikolaevsk is the location of a settlement of ‘Russian Old Believers’ whose ancestors settled in Woodburn, Oregon after the
Bolshevik Revolution of 1917 forced them out of Russia. The first Old Believer settlers on the Kenai Peninsula received a grant from the Tolstoy
Foundation in New York and purchased land there until 1967. In 1968, the village was formally founded. The first language of many residents is
Russian. More non-Russian Old Believer families are starting to move into the community. Nikolaevsk has declined in population by 9% since the
2000 census. 82% of residents are white, 13% are multi-racial, and 2% are Native.
Employment
The largest employers for Nikolaevsk residents are South Peninsula Hospital, Job Ready, the School District, and Starichkof Enterprises. 19% of
workers are employed in the Educational and Health Services industry, and Healthcare Support Workers are the most common occupation. The
community’s per capita income of $10,390 is one of the lowest in the Borough and only 53% of the average for the South Peninsula.77
Education
Nikolaevsk School was originally constructed in 1976 with the high school addition being completed in 1981. The school enjoys small class sizes
with favorable teacher-pupil ratios, and is a very high performing school. Recent improvements to the area include the completion of the paving
project to the village and also the state of the art gymnasium that was completed in February of 2002. Currently approximately 75% of the
76
students are Russian Old Believer. Until 1980, students attended classes through the ninth grade, and then began their adult lives. Many
students now go on to complete their education.
Recreation
The community of Nikolaevsk has been working to establish a building from which services to the community can be provided. As a result,
Nikolaevsk requests state funding to establish a preliminary design and engineering cost estimate for a multi-use facility. The services envisioned
include: Senior & Teen activities, community meetings, healthcare, a community kitchen, and truck haul services.
Capital Projects
1
Community Multi-Use Facility
Funding Recipient
Nikolaevsk, Inc.
Funding Request
$50,000
Ninilchik
Population: 824
2009 New Hires: 101
Female workers: 46%
Overview
Ninilchik lies along the eastern shore of the Cook Inlet, about thirty miles northwest of Homer and 40 miles southwest of Kenai. Dena’ina Indians
historically used the Kenai Peninsula for fur farming and fishing. The Dena’ina word “Niqnilchint’ means ‘lodge by the river.’ In the 1820s, the
Russian American Fur Company became burdened by a number of elderly, disabled, and sick employees who could not return safely to Russia.
The company received permission to establish self-sustaining retirement settlements in Alaska. The Transfiguration of Our Lord Russian
Orthodox Church was constructed in 1846. Russian settlers subsisted on fishing, hunting, trapping, and gardening. By 1880, the U.S. Census
77
found 53 ‘Creoles’ living in Ninilchik. In 1896, a Russian village school was built, and in 1901, the Russian Orthodox Church was constructed and
dedicated at its current site. A post office was established in 1925.
The 1940s brought homesteaders to the area. In 1949, the Berman Packing Company began fish canning operations. In 1950, the Sterling
Highway had been completed through Ninilchik. In 1949, Berman Packing Company began fish canning operations. In 1950, the Sterling Highway
had been completed through Ninilchik. The current Ninilchik School was built in 1975, and rebuilt after a fire destroyed half the school in 1998.
After little change in population in the first half of the decade, Ninilchik’s population grew approximately 9% from 2007 to 2008. 82% of the
population is white, 14% is Native, and 3% is multi-racial.
The Ninilchik Economy
The Central Peninsula and Homer are fairly long commutes for Ninilchik residents, so the majority works in the community. The largest
employers are the school district, Ninilchik Traditional Council, the Inlet View Restaurant & Bar, the State of Alaska, and Ninilchik Grocery. The
most common occupation in the community is Cashiers, closely followed by Operating Engineers, Retail Salespersons, Teachers, and
Construction Laborers. 21% of residents work for Local Government, the largest industry in the community. Ninilchik provides approximately 6%
of the Southern Peninsula’s total wages. The per capita income of the community, $18,463, is about 6% lower than the Southern Peninsula
average.78
Employment in Ninilchik is expected to decline slightly in 2010. 29% of organizations in the community anticipate reductions in employment, a
group split between slight and severe declines. Only 14% of organizations expect slight increases to employment. This can also be tied to
anticipated declines in gross sales for 2010 in Ninilchik. Out of every community in the Borough, Ninilchik expects to be hurt the worst, with only
14% expecting an increase in revenue. 57% expect a decrease, including slight, moderate, and severe declines in business. There is some silver
lining to the community, however. Capital improvement projects anticipate nearly two new jobs per company to the community over the next
five years. Of all areas with multiple responses, Ninilchik expects to have the highest influx of jobs out of every rural community.
Barriers to Growth
Falling in line with the short-term sales and employment expectations in Ninilchik, 100% of respondents find the national economy to be a
significant or moderate barrier to their organizational growth. Access to capital, local regulations, permitting, energy prices, and federal taxes
are detrimental to nearly three-quarters of Ninilchik businesses. In addition, health insurance is found to be a barrier to nearly half of
respondents from the community. A trained workforce, job readiness of entry-level employees, and worker availability are not a hindrance in
78
Ninilchik compared to the rest of the Borough. Energy prices increases costs to the end user in 86% of Ninilchik businesses, while 14% also
reduced the availability of services and another 14% reduced employment due to the high prices.
Ninilchik, more than any other community in the Borough aside from Seldovia, sees the access of a larger market as the primary area of business
improvement. Most also see tourism as the primary economic development opportunity, and they find relative difficulty getting tourists to the
visit Ninilchik. Affordable housing is considered necessary in order to maintain a stable workforce in the community. Fishing opportunities are
also believed to exist in Ninilchik.
Education
Ninilchik School is a kindergarten through twelfth grade school with about 200 students. Students hail from Ninilchik and the neighboring
communities of Clam Gulch, Kasilof, and Anchor Point. The school building is the oldest active school building in the District.
Ninilchik is the ancestral home of the Ninilchik Tribe and the location of the Ninilchik Traditional Council. The Tribal population is primarily of
Dena’ina, Athabaskan, and Aleut ancestry, and numbers approximately 600 members. The Ninilchik Traditional Council provides health,
education, social service, housing, and environmental services to the Native population within their boundaries which expand from south of the
Kasilof River to Homer, and from Caribou Hills across the Inlet to Mount Redoubt.79
Transportation
Ninilchik lies along the Sterling Highway, providing the community easy access to Anchorage and beyond. A state-owned 2,400 foot dirt/gravel
airstrip is located on Oilwell Road. Homer also offers an airport, harbor/docking facilities, and ferry access. Ninilchik Harbor was constructed in
the early 1970s. Boats are launched from Ninilchik or Deep Creek beach; a tractor launch is available.
1
Senior Center Preservation
2
Weatherization and Sustainable Improvements
Funding Recipient
Ninilchik Senior Citizens Inc.
Kenai Peninsula Fair DBA Ninilchik Fair Association
Funding Request
$379,430
$476,388
79
Port Graham
Population: 137
2009 New Hires: 22
Female workers: 41%
Overview
The village of Port Graham is an Altutiiq community on the south shore of Kachemak Bay. The village lies about four miles east of Nanwalek and
six miles southwest of Seldovia. The earliest known settlers of Port Graham were Russians from nearby Nanwalek. In 1850, the Russian-American
Company established a coalmine at Port Graham, but it was not economical and lasted only a few years. The community became the site of a
cannery and wharf, according to the U.S. Geological Survey in 1909. In 1911, the Fidalgo Island Packing Co. established a cannery, and Aleuts
from Nanwalek moved to the community. A post office operated between 1938 and 1961. The cannery burned in 1960. It was rebuilt in 1968 by
Whitney/Fidalgo, and was sold to the village corporation in 1983. A pink salmon hatchery began operations in 1991. After a fire at the fish
cannery in 1998, a new $4.5 million cannery and hatchery was rebuilt and opened in 1999. Port Graham has seen many residents leave the
village since the 2000 census, with a population decline of 20% in the last decade. 85% of Port Graham residents are Native, 11% are white, and
4% are multi-racial.
The Port Graham Economy
The largest employers in Port Graham are the Port Graham Village council, Chugachmiut, and the Port Graham Corporation. The Local
Government industry employs 60% of Port Graham workers, with the largest single professions being Information and Record Clerks and
Building Cleaning Workers.80 The cannery continues to be the main economic activity in the community, employing residents of Nanwalek as
well. The primary business area of the village includes the village council offices and community center, the Port Graham cannery and hatchery
operation, the community airstrip, and a future local display facility within the Port Graham Corporation building. 81
80
Education
Port Graham School serves all twelve grades with an enrollment of approximately fifteen students.
The People of Port Graham are ancestral inhabitants of the Kenai Fjords. The village culture values spiritual ties to the land, the bonds of kinship
and belief, respect for Elders and community, shared practices, and a subsistence life. In 1971 under the Alaska Native Claims Settlement Act,
the people of Port Graham reclaimed 44,000 acres within the Kenai Fjords. This land has since been managed by the National Park Service with
the creation of Kenai Fjords National Park in 1980. 82
Transportation
Port Graham is an isolated community accessible only by air and water. Commuter airlines provide the majority of transportation and mail
service on the state-owned 1,975 foot dirt/gravel airstrip. The community offers docking facilities, and there is a four-mile trail to Nanwalek.
Seldovia
Population: 241
2009 New Hires: 42
Female workers: 49%
Overview
Seldovia is a first class city located across from Homer on the south shore of Kachemak Bay. The Seldovia area served as a meeting place for the
Kodiak Koniaqs, the Aleuts from the Aleutians, the Chugach people from Prince William Sound, and the Tenaina Kenaitze people of the Cook
Inlet. The tribes traded goods, ideas, and regional traditions, giving rise to subsistence from the sea and land that continues today. Native
residents are mixed Dena’ina Indian, Aleut, and Sugpiaq Eskimo (also known as Alutiiq). The name Seldovia is derived from ‘Seldevoy’, a Russian
81
word meaning “herring bay.” Between 1869 and 1882, a trading post was located here. A post office was established in 1898. The village
developed around commercial fishing and fish processing. The city of Seldovia was incorporated in 1945. The middle of this past decade saw
large population declines in Seldovia, dropping from nearly 290 residents to 240 residents between 2002 and 2005. 73% of residents are white,
17% are Native, and 7% are multi-racial.
The Seldovia Economy
Seldovia has a fairly diverse economy, mostly dominated by
Wholesale Trade, Construction, Sales, and traditionally Tourism.
Seldovia is a commercial fishing center; shellfish farming also occurs.
Every Line of Business, with the exception of Utilities,
Transportation, and Government, decreased in gross annual sales. In
2006, Tourism made up 16% of Seldovia’s gross annual sales.
However, a drop of over$700,000 and 61% from 2008 to 2009 left
the industry at a mere 7% of the entire Seldovia economy. Local
Government is the main industry in Seldovia, employing nearly 40%
of the area’s workers. The three largest employers in the city are the
Seldovia Village Tribe, the School District, and the City of Seldovia.
Cashiers, Chief Executives, Operating Engineers, and Motorboat
Operators make up the largest occupations in the city.83
2009 Seldovia Gross Sales by Line of Business
Government
8%
Sales
19%
Wholesale
27%
Construction
23%
Utilities
8%
Transport /
Warehouse
0%
Manufacturing
Professional
0%
Services
1%
Services
6%
Tourism
7%
Property
Rentals
1%
82
Gross Sales (in thousands)
City of Seldovia Gross Sales by Year
10,000
9,500
9,000
8,500
Unlike other cities in the Borough who saw fairly consistent
growth from 2004 to 2008, Seldovia’s gross sales have been very
inconsistent from year-to-year. From their peak in 2007 of nearly
$10 million, gross sales in the city have dropped 27%. The success
of many Lines of Business is dependent on the Tourism industry;
as a general rule, as Tourism goes, Seldovia goes.
Employment in Seldovia in 2010 expects to be fairly stagnant, with
7,500
87% of companies not expecting any change. The remaining 13%,
7,000
however, all believe that employment will decrease this year. As
6,500
2004
2005
2006
2007
2008
2009
such, Seldovia is anticipating a year with major declines in gross
sales across the board. 27% of Seldovia companies expect severe
Sales 8,330
6,871
7,564
9,496
8,530
6,971
declines in gross sales, and an additional 13% expect moderate
declines. As a result, Seldovia looks to be the second hardest hit community in the Borough, with only Ninilchik facing bleaker prospects in 2010.
Seldovia also has the least confidence in both the State and Borough economy, with a mere 20% expecting the two economies to improve in
2010.
8,000
Despite this, nearly half of the companies in Seldovia anticipate a major capital improvement in the coming five years. On average, this will bring
1.1 jobs per organization to the community. This is above the rural community median, with only Kasilof, Ninilchik, and Anchor Point anticipating
more jobs created per company in that time span.
Barriers to Growth
Seldovia has little trouble with capital or employees, as only 7% found each to be a barrier to growth. Property costs, health insurance, and
permitting are also found to be relatively insignificant to Seldovia businesses. The two most prevalent barriers to growth, perhaps unsurprisingly,
are the national economy and transportation linkages, each affecting 73% of respondents. Energy prices and energy supply are also fairly
significant and prevalent barriers in the area. Increased prices are a direct result of high energy costs for 60% of Seldovia businesses.
83
Seldovia’s main concerns all center on getting visitors to Seldovia and keeping them there for an extended period of time. Access to a larger
market is seen as the area of biggest improvement for 80% of organizations in the community. Many believe peninsula marketing to be part of
the solution, championing Seldovia as a destination. Internet access in Seldovia is described as ‘hit-or-miss’, which causes problems for
businesses that interact often with others outside of the community.
As a part of tourism, summer housing is seen as one of the biggest areas of economic development in Seldovia. Many believe that there isn’t
enough decent summer housing, causing prices to shoot up exponentially and limiting the number of tourists to the community. Expansion to
the fishing industry is also seen as an untapped area of economic development. Ecotourism, recreational services, green businesses, and
transportation also play a role as possible economic development projects in Seldovia.
Education
Susan B. English School in Seldovia is a kindergarten through twelfth grade school with an enrollment of approximately sixty students. Despite
the remoteness of the school and community, Susan B. English School has good marks when compared to the rest of the Borough for proficiency
on state-wide testing subjects.
Recreation
Seldovia has a wide variety of recreational activities available to residents and visitors alike. Walking and hiking trails, kayaking, and bike rentals
are available for the active, as are opportunities to whale watch, bird watching, and otter searching opportunities. Annual fishing and a chainsaw
carving competition also brings many visitors to Seldovia. Because it is removed from the highway system, Seldovia retains much of its old Alaska
charm and tradition.
Transportation
Seldovia is a small fishing village only accessible by air or boat, and a state-owned 1,845-foot gravel airstrip and seaplane base is available in the
city. Main street is only a few steps from the harbor, and carries as many pedestrians and four-wheelers as automobiles. The state ferry system
connects to Homer, where the Sterling Highway enables road access. Several private boat taxis are available for passenger commutes to Homer.
84
A federally recognized tribe is located in the community – the Seldovia Village Tribe. Over 17% of the population of Seldovia is Native, and in the
city they run a health center, conference center, ferry, community programs, and Alaska Pure Berry. Subsistence fishing is an integral part of the
local culture.
1
EPA Match Grant
2
Water Distribution & Wastewater Upgrade/ Replacement
3
Water Filtration Plant as Recommended by DEC
4
Continuation of Small Boat Harbor Repairs
5
Consolidate City Operations Buildings
6
Rehabilitation of Existing Boardwalk
7
Heavy Equipment for Snow Removal
8
Dusting of Jakolof Bay and Rocky Road with Calcium Chloride or Suitable Alternative
9
Smolt Stocking for Seldovia Slough
10
Road Safety Upgrades, Kachemak Street and Shoreline Drive, Phase 1
11
Pave City Streets
12
Seldovia Bay Improvements – City Ferry Dock Rehabilitation, Sheet Pile Dock, 100 Ton Travel Lift
13
Alternative Power Feasibility
14
Continued Development of Parks and Recreation Areas
15
Sport Fishing Access Stairway to the Seldovia Slough
16
Repair and Major Renovation of the Susan Lake Boardwalk
17
Survey of the Seldovia Cemetery
18
Industrial Support Building
Funding Request
$237,091
$10,000,000
$3,000,000
$1,000,000
$1,500,000
$250,000
$95,000
$35,000
$50,000
$50,000
$250,000
$16,000,000
$1,300,000
$100,000
$80,000
$15,000
$15,000
$500,000
85
Seldovia Village
Population: 166
2009 New Hires: 28
Female workers: 53%
Overview
Seldovia Village lies adjacent to Seldovia on the south shore of Kachemak Bay across from Homer. The village has seen a mild increase in
population since the 2000 census. The community has grown from 144 to 166 residents, a 15% increase. 56% of residents are white, 37% are
Native, and 4% are multi-racial.
The Seldovia Village Economy
Like in the city of Seldovia, the largest industry in Seldovia Village is the Local Government. The Seldovia Village Tribe and the City of Seldovia
employ the most area workers, and Construction Laborers are the top occupation. Per capita income in Seldovia Village is relatively high,
approximately 9% higher than the Southern Peninsula per capita income.84
The Seldovia Village Tribe is a large part of Seldovia Village, accounting for 37% of residents.
86
Section VI: Community Overviews
The Eastern Peninsula
87
The Eastern Peninsula
Overview
The Eastern Peninsula consists of the City of Seward and surrounding communities. Seward is the gateway to the majestic Kenai Fjords National
Park and Chugach National Forest. A Russian explorer, Alexander Baranof, first sailed into Resurrection Bay in 1792. Settlement in the area
began in the 1890’s with the arrival of a group of American settlers. At the time of European contact in the 18th century, the Eastern Peninsula
was inhabited by Alutiiq speaking people known as Unegkurmuit. Three main villages existed in the area: Kangiaq at Day Harbor was inhabited
by the Kaniaymuit, Qutaluq was located near present-day Seward, and a Kani Iik was also located nearby present-day Seward. In 1872,
Resurrection Bay became the site of a Russian trading post and shipyard. After European contact, Native population dwindled to the point that
by 1911, no indigenous communities survived along the outer coast of the Kenai Peninsula.85
In the early 1900’s, another group of settler arrived to construct a railroad. In 1915, President Woodrow Wilson decided that Seward would
service as the ocean terminus for Alaska’s principal railway, establishing the region as an important link in the territory’s transportation
infrastructure. During World War II, the Seward railway and port proved strategically important for the defense of Alaska.
Community
Population
Bear Creek
Cooper Landing
Hope
Lowell Point
Moose Pass
Seward
TOTAL
$2,009
344
151
76
189
2,609
$5,378
Per Capita $
$20,947
24,795
9,079
45,790
28,147
20,360
$21,179
Total Wages
$32,020,516
4,099,638
1,790,394
1,163,446
3,307,324
31,164,816
$73,546,134
% Unemployment
Workers
Female
% Native
Claimants
45+
Workers
11.2%
47%
47%
12%
13.4
52
41
3
11.3
43
48
2
11.8
58
42
4
6.9
49
35
6
11.3
47
50
17
11.3%
47%
48%
13%
Employment
As with many communities in Southcentral Alaska, the region’s economy is tied to the sea. Ship repair and services, coal transportation, tourism,
commercial fishing and processing, and construction all contribution to the region’s growing economy. Spring Creek Correctional Center, the
only maximum-security correctional facility in the state of Alaska, opened in Seward in 1988. The facility has 200 employees, including 140
88
correctional officers and 60 support jobs. Correctional officers work two-week, twelve hour a day shifts, and then get two weeks off. Nearly all
the support staff resides in the Eastern Peninsula, with about half of the correctional officers living in Eastern Peninsula and the other half living
around Anchorage. Superintendent Craig Turnbull sees the facility as creating a product by taking an offender and giving them the skills and
support to not re-offend once released.
Education
Enhancing education in the Eastern Peninsula region is AVTEC, one of the state’s best vocational schools. AVTEC educates students in vocational
occupations in the industrial, medical, and hospitality industries. The Eastern Peninsula also home to the Resurrection Bay Campus of Kenai
Peninsula College and has a very strong public school system.
Providence Seward Medical Center provides quality healthcare to the Eastern Peninsula with an array of local services. The Providence Seward
Family Care Clinic provides day-to-day care for residents and visitors alike. The Eastern Peninsula has the following capital improvement projects
for medical and emergency services:
Priority
1
2
Project Title
Bed Load Removal in Salmon Creek and Japanese Creek Watersheds
Long-Term Geospatial Monitoring Leading to a Watershed Master plan
Funding Recipient
Funding Request
$1,000,000
$150,000
Recreation
The region sits as the gateway to the Kenai Fjords National Park, which attracts visitors from around the world. Several visitor industries have
sprung up to fill the demand for services, including wildlife cruises and fishing charters. On a wildlife cruise, visitors can see whales, seals, otters,
and shorebirds and watch impressive glaciers calve into Resurrection Bay. Famous for its world-class silver salmon and halibut fishing,
Resurrection Bay also draws fishermen and sailing enthusiasts. Other activities in the Eastern Peninsula region include dog mushing, kayaking,
sailing, gold panning, hiking, and camping. A highlight for many residents and visitors is a trip to Exit Glacier – one of the many glaciers in Kenai
Fjords National Park, but the only glacier accessible by paved trails.
Aside from the Western Side of the Inlet, the Eastern Peninsula has the largest population of Native residents. There are approximately 700
Natives in the Eastern Peninsula, making up 13% of the total regional population. The Qutekcak Native Tribe serves the Native Community of
89
Seward and surrounding communities through a variety of social, cultural, and community programs. The Qutekcak Tribe reflects the diversity of
the region, with members of various Native heritages and operating a social service agency serving Natives from all cultures.86
Transportation
An important industrial and transportation center, the railroad and port facilities continue to play an important role in the region. Excellent port
and harbor facilities, a rail link to interior Alaska, and road access to Anchorage all provide Seward with infrastructure advantages and have
contributed to the diversity of Seward’s economy. The 127-mile Seward Highway was designated a National Scenic Byway in 1999, and is a USDA
Forest Service Scenic Byway as well as an All-American Road.
Bear Creek
Population: 2,009
2009 New Hires: 282
Female workers: 47%
Overview
Bear Creek is an unincorporated census designated place northeast of Seward. Bear Creek is a local name, first published by D.H. Sleem on a
map of central Alaska dated 1910. Bear Lake is also the source of the stream. The community is one of the fastest growing on the Kenai
Peninsula. The 2000 Census cited a population of 1,748, which has grown by 261 people, a 15% increase. 80% of residents are white, 12% are
Native, and 6% are multi-racial.
90
The Bear Creek Economy
Many residents work in Seward. The State of Alaska provides the most employment opportunities for Bear Creek residents, and the most
common occupation is Correctional Officers and Jailers at the Spring Creek Correctional Facility. The Trade, Transportation, and Utilities industry
also employs 23% of area workers.87
Transportation
Bear Creek is connected to the Alaska Highway system by the Seward Highway. The Seward airport also provides daily air services and charters.
The Port of Seward serves cruise ships, the State Ferry, cargo barges and ocean freighters from Seattle and overseas.
Education
There are no schools in Bear Creek. Students attend Seward area schools for elementary and secondary education.
1
Bear Creek Community Multi-Use Facility
2
Wildland Interface Response Unit
Funding Recipient
Funding Amount
$2,600,000
$275,000
Cooper Landing
Population: 344
Main Industry: Leisure and Hospitality
2009 New Hires: 45
Female workers: 41%
91
Overview
Cooper Landing is strategically located at the west end of the Kenai Lake and the beginning of the Kenai River. The community sits in the heart of
the Kenai Peninsula, 30 miles northwest of Seward, 40 miles east of Soldotna, and 100 miles south of Anchorage. Gold was first discovered in the
region in 1848, although the community was not named until Joseph Cooper discovered gold in the Cooper Landing area in 1884. The U.S.
Geological Survey first recorded Cooper Creek in 1898, and in 1900 the Census found 21 miners and 1 wife living at Cooper Creek. The Riddiford
Post Office began operations in 1924, with a school opening in 1928.
In 1938, a road to Seward was constructed, soon followed by a road to Kenai in 1948 and a road to Anchorage in 1951. The Cooper Landing
Historical Society was founded in 1998, shortly followed by the Cooper Landing Chamber of Commerce in 2002. The population of Cooper
Landing has steadily dropped nearly 7% since the 2000 census. The population of the area nearly doubles in the summer months. 92% of Cooper
Landing residents are white, 3% are Native, and 3% are multi-racial.
The Cooper Landing Economy
The economy of Cooper Landing is very diverse, but seasonal tourism-related opportunities provide the majority of employment. The 86-room
Princess Lodge accommodates Princess Cruise ship passengers and other visitors. There are also many small bed & breakfasts and other support
services for the high number of tourists that visit the area each summer. The main industry in Cooper Landing is Leisure and Hospitality,
employing 42% of Cooper Landing workers. Specifically, the most common occupation in the area is Tour Guides and Escorts. Alaska Hotel
Properties is the largest employer in the community.88
In the immediate future, 30% of Cooper Landing businesses anticipate moderate employment increase for 2010, compared to 2009 with no
organizations expecting to decrease employment. This figure is more than double the percentage of organizations expecting to increase
employment across the Borough. Likewise, the community also expects sales to improve moderately in 2010 compared to 2009. 60% of Cooper
Landing businesses anticipate an increase in gross sales in 2010, with none expecting a decline. However, as with most rural communities,
Cooper Landing does not expect significant job growth from capital improvements over the coming five years. 2010 increase are described as
only slight improvements, and five-year expected job growth is 0.5 jobs per organization, below the Borough (1.25) and rural community (1.0)
median.
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Barriers to Growth
Organizations in Cooper Landing deal with more barriers to growth than in any other community across the Borough. 90% of organizations find
the national economy, energy prices, and federal taxes to stand in the way of growth; 80% are saddled by problems involving capital; and nearly
three quarters are affected by state and local regulations, as well as workers compensation insurance. Commercial property costs are the least
problematic obstacle in the community, and even those negatively affect over 40% of companies in the area.
More than any other community in the Borough, Cooper Landing’s primary area of improvement is a greater access to financing. Access to a
larger market, improved employees and workforce, and access to business support services are also desired improvements seen by Cooper
Landing organizations. The most popular area of economic development interest in Cooper Landing is year-round industry. Many of the seasonal
companies from Cooper Landing want to see their business to expand year-round, but are held back, in part because of high energy prices and a
lack of winter infrastructure. Affordable housing, increased tourism, and a health care facility are also widely seen as areas for growth in Cooper
Landing. Other respondents see the need for additional lodging, the renovation of old buildings, bringing in support services, and additional
construction as possible areas for economic development.
Education
Cooper Landing has one school in the community, built in 1972 and home to six full-time students and one teacher. In February 2010, the Board
of Education approved the proposal to expand Cooper Landing School to include grades 9-12, transforming it into a complete K-12 school. The
decision was made in part due to the small enrollment – state requirements call for a school to have ten pupils in order to receive state funding.
Previously, high school students had attended Skyview High in Soldotna, a 40-mile one-way drive. In November 2009, the KPBSD announced they
would keep the school open, despite this lack of state funding. The KPBSD was then required to meet the estimated $250,000 shortfall. While it
is not yet determined whether Cooper Landing School will reach the 10-student threshold next year, the District is hopeful to attract secondary
students from the Cooper Landing and Moose Pass communities.89
Cooper Landing Emergency Services was formed in 2007 as a merger between the ambulance service and the fire department, and provides
ambulance and emergency services in the area. The Cooper Landing Fire Department has a cooperative agreement with Chugach National Forest
Services for wildfire support. The community is about 50 driving miles from Providence Seward Medical Center, and 40 driving miles from
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Central Peninsula Hospital in Seward. Cooper Landing Health Center Inc. is attempting to build a health clinic in Cooper Landing that would serve
the residents and visitors of the community, and would also serve the communities of Moose Pass, Hope, and Sunrise. 90
Recreation
The Cooper Landing Community Club, formed in 1949, is extensively involved in local development issues and is an advocate for residents’
concerns. The Cooper Landing Museum is housed in two historic buildings – Jack Lean’s cabin built in the 1920s and home to the Cooper Landing
Post Office for 40 years, and the School House built in 1955 and used until September 2001. The senior service area for Cooper Landing Senior
Citizen Corporation geographically encompasses Cooper Landing, Moose Pass, Hope, and Primrose. The senior population in this area is one of
the largest in the state. Long range planning to serve these seniors includes development of a housing campus. Two apartment complexes, each
with six units, were completed in 2009 – Eagles View and Ravens view. Horseback riding, kayaking, and camping are also popular recreation
activities in Cooper Landing.
Transportation
Cooper Landing sits on the Sterling Highway, providing access to Anchorage and beyond. Nearby Kenai offers additional docking and
transportation facilities. A privately-owned boat launch is available, as is a 2,200 foot gravel runway at the state-owned Quartz Creek Airport.
Floatplanes may land at Cooper Lake.
1
Garage / Workshop for Senior Housing Campus
2
Walkable Community
Funding Recipient
Cooper Landing Senior Citizen Corporation, Inc.
State of Alaska, Department of Transportation
Funding Request
$95,000
$1,180,000
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Hope
Population: 151
2009 New Hires: 32
Female workers: 48%
Overview
Hope lies on the southern shore of the Turnagain Arm at the mouth of Resurrection Creek and extends to the east from the Cook Inlet out of the
city of Anchorage. Hope City was a mining camp for Resurrection Creek, established in 1896 as a small gold rush town. The Hope post office
began operating in 1897 when Hope-Sunrise Gold Rush began. The rush was short, and more efficient hydraulic mining equipment arrived,
driving away many small prospectors. By 1906, over $1,000,000 had been extracted from the Hope-Sunrise Districts and the population reached
3,000, becoming one of the largest towns in Alaska. However, the boom faded as quickly as it began, with the population dropping to a mere 23
residents at one point. Portions of the town were destroyed in the 1964 earthquake, although gold rush buildings still charm downtown Hope. In
2001, Hope was named Alaska’s Most Friendly Town by Alaska Magazine.
92% of Hope residents are white, 4% are multi-racial, and 2% are Native. Hope has seen a fairly steady increase in population since the 2000
census, with a growth of over 10% this decade.
The Hope Economy
Local retail businesses and the school provide the only employment in Hope. Some mining activities continue today, although to a very small
extent. A small sawmill is also used by the community. Discovery LLC, a café and hospitality company, is the largest employer in Hope. The main
industry in the community is Leisure and Hospitality, and more workers are employed as Dishwashers than any other occupation. Many homes
in Hope are used only seasonally.91
95
Hope respondents do not expect employment to turn around in 2010 to make up for declines over the past few years. With 83% expecting no
change and the remaining 17% expecting a slight decrease, employment in the community looks bleak in the short-run. Signs are more positive
when looking a few years down the line, however. Through capital improvement projects, Hope expects to gain one employee per organization.
Since most area businesses are relatively small, this is a fairly substantial gain for the community. Similar to employment, Hope respondents do
not expect sales to change much in the coming year. 67% expect no change at all, and while 17% expect a moderate increase, the remaining 17%
expects a moderate decrease.
Barriers to Growth
By far the most consistent and significant barrier to growth in Hope is energy prices for the community. Two-thirds of organizations found the
high prices to be a significant barrier, compared to 32% across the Borough. The high energy prices led to significant changes in the community,
forcing 83% of companies to raise their prices. In addition, 17% of companies to reduce employment as a direct result of high energy prices. As
expected, transportation linkages are one also one of the most prevalent barriers in Hope due to their remoteness from the rest of the Borough.
Health insurance, access to capital, and worker availability also hurt businesses in Hope, but as a whole the community faces relatively few
barriers per company.
The most essential improvement for Hope respondents is getting more tourists and visitors to Hope in whatever way possible. Some thought
that peninsula marketing could assist in making Hope a destination instead of an afterthought. Others believe that increased signage to Hope is
necessary, especially as you approach the Hope Highway turnoff from the Sterling Highway. Outside of tourism, retirement facilities and servicebased companies offer the most potential for growth in Hope. Others believe that there is potential for manufacturing jobs in Hope due to the
closer distance to Anchorage. The Borough’s 21-acre land sale in Hope is seen as an excellent opportunity to procure and develop valuable land.
Education
The Historic Hope Schoolhouse was built in 1938. The schoolhouse is now used as the Hope Community Library, established in 1987, and the
school has since moved. Hope School has an enrollment of 10 students in grades K-12.
96
Hope Sunrise Emergency Medical Service is a volunteer service provided by members of the Hope community. Each July, the organization holds
an annual fundraiser, the Wagon Trail Run, and also obtains grants from emergency medical services.92 Hope also operates a volunteer fire
department.
Recreation
Built by community volunteers in 1903, the Hope Social Hall has served community functions ever since. The building sits on its original site, and
is widely considered the most important building in town. Used for public meetings dancing, weddings, and other social functions, the Social Hall
is commonly referred to as “Hope’s Living Room.”
The area is best known for its many hiking trails, some of which are used year-round for hikers, mountain bikers, skiers, and snowmachiners.
Salmon fishing in the Sixmile and Resurrection Creeks also provide recreation activities for residents and visitors.
Transportation
Hope is accessible from the Seward Highway. By road, Hope is approximately 90 miles from Anchorage and 100 miles from Kenai, both of which
offer a variety of transportation services. A state-owned, 2,000’x65’ gravel airstrip is available.
Priority
Project Title
1
Resurrection Creek Road Improvements
2
Social Hall Improvements
Recipient
Hope, Inc.
Funding Request
$200,000
$30,000
97
Lowell Point
Population: 76
2009 New Hires: 7
Female workers: 42%
Overview
Lowell Point is an unincorporated census designated place about two miles south of Seward. It lies on the northwest side of Resurrection Bay at
the foot of Bear Mountain. Despite the small population of the community, Lowell Point generally swells to nearly 500 people daily in the
summer months. The population of Lowell Point has seen steady population declines since the 2000 census with a 17% decrease in population
over the decade. 92% of Lowell Point residents are white and 4% are Native.
The Lowell Point Economy
Seal Level Seafoods and Miller’s Landing are the two largest employers for Lowell Point residents. The Leisure and Hospitality Industry employs
30% of area workers, and the most common occupation is Meat, Poultry, and Fish Cutters and Trimmers.93 Lowell Point is home to 14
businesses.94
Education
There are no schools in Lowell Point. For elementary and secondary education, students attend Seward schools.
98
The Lowell Point Emergency Service Area (LPESA) conducts free programs and class sessions throughout the year for the public. The Lowell Point
Fire Department depends on volunteers and active community involvement. The LPESA has the following capital improvement projects for
funding consideration:
Project Title
Emergency Access / Response Vessel
Funding Recipient
Capital Projects
Priority Lowell Point
1
Street Lights
2
Spruce Creek Flooding & Beach Erosion Study
Funding Request
$26,747
Funding Recipient
Lowell Point Community Council
Lowell Point Community Council
Funding Request
$20,000
$211,572
Moose Pass
Population: 189
Main Industry: State Government
2009 New Hires: 29
Female workers: 35%
Overview
Tucked away in the towering, rugged mountains along the Seward Highway, Moose Pass is surrounded by Chugach National Forest. Moose Pass
spans from Summit Lake to Tern and Trail Lakes and the south side of Kenai Lake. The community has a rich historical tradition, beginning with
the earliest native inhabitants and continuing on to Russian and American explorers and settlers. In 1909, Oscar Christensen and his partner,
Mickey Natt, built a small cabin in the area after arriving by horse and dog sled. They built a log roadhouse to serve as an inn for the miners up
north.
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Over time, the small community became known for mining, logging, and as a transfer point for those headed north with supplies or south with
gold. A post office was established in 1928, the time when the community was officially named Moose Pass. The first school in Moose Pass was
started in 1928 in a tent with only six students. In 1930, a formal schoolhouse was build. In 1956, Chugach Electric Association began providing
electric services to the area. Moose Pass has seen a relatively large population decline beginning in 2005, when an estimated population of 217
dropped to 185 in only three years, a 15% loss. 87% of Moose Pass is white, 6% is Native, and 5% is multi-racial.
The Moose Pass Economy
The State of Alaska, Division of Forestry, is the largest employer in Moose Pass. The school district and other local businesses provide other
employment opportunities as the community is not within an easy commute of either Seward or the Central Peninsula. Teachers and Instructors
are the most common professions in the area.95
Education
Moose Pass School serves grades K-8, and is attended by 29 students. A strong community volunteer program allows a higher degree of tutoring
and outside help than children in large schools normally receive. For secondary education, students are bused to Seward, although will have the
option to attend Cooper Landing now that the school has expanded through twelfth grade.
Transportation
Moose Pass sits at the junction of the Seward and Sterling Highway, providing easy access to Anchorage and the rest of the Kenai Peninsula.
Nearby Seward offers an airport, railroad, harbor/dock facilities, and state ferry access. A seaplane base is available at Summit Lake.
Moose Pass Volunteer (Fire/EMS), Seward General Hospital, and Central Peninsula Hospital in Soldotna provide auxiliary health care.
Recreation
Moose Pass is the base for a variety of recreational activities, including mountain biking, backcountry hiking, camping, and high mountain lake
fishing. There are dozens of scenic hiking trails scattered throughout Chugach National Forest, many within a short distance of Moose Pass.
Fishing for trout, hiking, bird watching, cycling, and berry picking are some of the favorite pastimes of residents and visitors alike. For the past 20
years, Moose Pass has come together each June to celebrate the Summer Solstice. Over two days, the community gathers for food, games,
music, and family fun. Nearby Seward provides additional recreation activities.
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1
Tanker / Pumper Truck and Equipment
2
Library / Park
Funding Recipient
Moose Pass Volunteer Fire Company
Moose Pass Sportsmen’s Club
Funding Request
$300,000
$35,000
Seward
Population: 2,609
2009 New Hires: 361
Female workers: 50%
Overview
Seward is situated on Resurrection Bay on the east coast of the Kenai Peninsula and lies at the foot of Mount Marathon. Seward is one of two
home rule cities in the Kenai Peninsula Borough. It is located on the Resurrection Bay and is the gateway to Kenai Fjords National Park. One of
the oldest towns in Alaska, Seward has a long and colorful history. Russian fur trader and explorer Alexander Baranof named Resurrection Bay in
1792. While sailing from Kodiak to Yakutat, he found unexpected shelter in this bay for a storm. He named the bay Resurrection because it was
the Russian Sunday of Resurrection. Seward was named for U.S. Secretary of State William Seward, 1861-69, who negotiated the purchase of
Alaska from Russia during the Lincoln administration. In the 1890s, Capt. Frank Lowell arrived with his family. In 1903, John and Frank Bellaine
and a group of settlers arrived to begin construction of a railroad.
Seward became an incorporated City in 1912. The Alaska Railroad was constructed between 1915 and 1923, and Seward developed as the ocean
terminus and supply center. By 1960, Seward was the largest community on the Kenai Peninsula. Tsunamis generated after the 1964 earthquake
destroyed the railroad terminal and killed several residents. As an ice-free harbor, Seward has become an important supply center for Interior
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Alaska. 2003 was the 100th anniversary of the founding of Seward. Seward has experienced a slight population decrease since the 2000 census,
losing 8% of the City’s residents. 72% o Seward residents are white, 17% are Native, and 6% are multi-racial.
Economy and Employment
Seward has a diverse economy, made up mostly of
Sales, Construction, Tourism, Wholesale Trade, and
Manufacturing, each contributing more than $14
million to Seward’s annual gross sales in 2009. The
hardest hit Line of Business in 2009 was Wholesale
Trade, decreasing in annual gross sales by nearly $12
million, or nearly 40%. Tourism has also seen major
declines in recent years. In 2007, Tourism accounted
for $43 million and about 22% of Seward’s annual
gross sales. In 2009, Tourism brought in just a shade
over $26 million, a 40% decrease, and contributed
only 14% to Seward’s annual gross sales.
2009 Seward Gross Sales by Line of Business
Transport /
Warehouse
2%
Manufacturing
7%
Government
4%
Resource
Production
0%
Wholesale
10%
Sales
29%
Utilities
3%
Professional
Construction
18%
Tourism
14%
Services
Until the 1964 earthquake, Seward was the original
4%
major port to Alaska. Once the earthquake flattened
the railroad terminal, civic-minded individuals
Services
5%
banded together and saw the need to diversify the
local economy. The city now features a diverse
economy centered on tourism, government, charter
and commercial fishing, the railroad and ice-free port, the SeaLife Center, Spring Creek and AVTEC.
Property Rentals
4%
Seward’s economy is based off being a shipping portal into Alaska. The city has the most northern ice-free port in Alaska, and also sits at the
beginning of the Alaska railroad. As an ice-free harbor, Seward has become an important supply center for Interior Alaska. Expansion to the
Seward boat harbor will provide an additional 200 slips, with 114 more likely to come. Export of coal is also a large industry in Seward. Around a
dozen ships leave Seward each year, with each ship hauling 70,000 to 80,000 tons of coal.
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Much of the tourism market revolves around the Kenai Fjords National Park. Many organizations offer cruises into the park to see the majestic
uniqueness and beauty. Over 320,000 cruise ship passengers visit Seward annually. Seward has two business districts, the waterfront business
district and the downtown business district. Each district has an abundance of shops, coffee houses, galleries, and restaurants.
The State of Alaska, City of Seward, Providence Medical Center, Seward Association for the Advancement of Marine Science, School District, and
Safeway are the largest employers in Seward. More workers were employed as Correctional Officers and Jailers than any other occupation. 96
Spring Creek has a staff of 200, many Seward residents. Hotels, restaurants, and the rest of Seward benefit from the visitors of the 550 inmates.
Seward saw gross annual sales declines of 12% between 2008
and 2009, a bigger drop-off than Homer and Soldotna but a
significantly lower drop-off than Kenai. Although 2009 saw
nearly identical annual gross sales numbers as 2005, the
makeup of the economy was slightly different. Sales,
Government, Professional Services, and Utilities played a much
larger role in 2009 than they did in 2005, and Construction,
Tourism, and Wholesale Trade played a decreased role.
Also, in development for Seward is a $123 million marine research vessel, with an estimated delivery date of late 2013. The marine and
oceanographic research vessel will employ between 36 to 50 people, and is expected to impact the economy not only in Seward, but throughout
the Peninsula. Seen as a forerunner for exploration of the
Arctic passage, Seward wants to become a launching off point
City of Seward Gross Sales by Year
for the Northwest Passage. The vessel will enhance the marine
220
research presence on Seward, already strong from the Seward
210
Marine Center – University of Alaska Fairbanks School of
200
Oceans and Fisheries.
190
180
170
160
150
Sales
2004
2005
2006
2007
2008
2009
166
189
198
195
215
189
Seward respondents expect very stable employment in 2010. Less than 19% of companies are expecting changes in employment, with 55% of
those anticipating an increase and 45% of them anticipating a decrease. Capital improvement projects over the next five years anticipate
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bringing a number of jobs to the city. Nearly 1.5 jobs will be created per organization, 20% above the median for communities across the
Borough. This figure is even more encouraging when factoring the relatively small organization size from respondents in Seward. Gross sales
projections from Seward are closely aligned with Borough expectations. Over 50% expect gross sales to increase in 2010, with a shade below
20% expecting a decrease in 2010.
Barriers to Growth
While the national economy and energy prices are the most significant and prevalent barriers to growth in Seward, local regulations and
permitting also play a large role. Over a quarter of Seward businesses find local regulations to be a significant barrier to growth, easily the
highest of the four largest cities of Kenai (9%), Soldotna (4%), and Homer (2%). Many business owners found local regulations to be burdensome
not only to their own organizations, but also to tourists. In addition, nearly three-quarters of in-face interviewees mentioned that the city needs
to be more supportive of local entrepreneurs.
High energy prices hurt Seward businesses more than most communities throughout the Borough. Over two-thirds of companies had to increase
prices due to the high energy costs. Over a quarter had to cut availability of services, and one-in-eight had to decrease employment.
The majority of Seward organizations want to see a larger market in the area – through increased tourism, leveraging the city’s uniqueness, and
year-round industry. Another area of improvement, especially for private enterprise, is the political-business climate of the community. Many
businesses feel as if the city is not doing all it can to support private entrepreneurs and industry; instead spending their focus on government
and city projects. Other businesses want to see increased interaction throughout the Borough, better marketing efforts, and to improve their
internal operating efficiency.
Opportunities in Seward are aplenty, according to the business community. The anticipated rebound in tourism over the next year or two will be
a huge benefit to companies that are able to stay in operation. In addition, many believe that Seward’s ice-free port should be utilized even
more than it is now. As the northernmost ice-free port in the United States, there is high potential to create and support year-round jobs
surrounding the port facilities. Seward entrepreneurs would like to see a business incubator come to the community. There is the sense that
many great ideas and entrepreneurs are in the community, but high energy prices and lease rates stand in the way of young business growth
and development. Small business development, service-based companies, better internet services, and an increased presence of Kenai
Peninsula College in Seward are also widely appealing. Many respondents also believe that affordable housing is a necessity in Seward.
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Businesses – Government Relations
Interviews with private business owners throughout Seward revealed a rift between the local government and private enterprise. Many believe
that from 1990 to 2002, Seward had a positive business environment that encouraged investment and made land available by the water, causing
sales tax revenue to more than double. The feeling among business owners was that the city existed to provide services to the residents and
private entrepreneurs. Since then, a shift has occurred in the government leading many to feel that businesses now exist to support government
projects. Many blame stagnant private business growth on their battle with the government.
Education
Seward is home to the Resurrection Bay campus of Kenai Peninsula College. Approximately 50 students attend classes, and the campus is staffed
by a site director and between five and ten adjunct faculty. The program’s classes are held at Seward High School, which are provided rent-free
thanks to an agreement between the College and the School District.97 In addition, Seward has developed a number of additional educational
facilities. Students come from throughout the state to attend AVTEC, receiving training in a variety of vocational occupations. Spring Creek would
like to see additional vocational education options for prisoners. Due to the increase in energy prices, budget cuts have removed many of these
programs. The Alaska SeaLife Center has distinguished Seward as the home of one of the world’s premiere cold-water marine centers.
Elementary and secondary schools in Seward are very strong.
Housing
Affordable, middle class housing is needed in Seward to attract year-round employment and residents. Poor housing conditions or high rent are
part of the causes to high turnover at Spring Creek and for half of the correctional officers residing in Anchorage. Others believe that without
affordable housing, Seward will never be able to attract year-round industry to the city.
The Qutekcak Native Tribe serves the Native Community of Seward through a variety of social, cultural, and community programs. Natives make
up 17% of the Seward’s population, the highest percentage among the four largest cities in the Borough. The Qutekcak Tribe reflects this
diversity, with members of various Native heritages and operating a social service agency serving Natives from all cultures. Members are a very
active, albeit discreet, in the Seward community. 98
Recreation
The Alaska SeaLife Center, which opened in 1998, has distinguished Seward as home to one of the premiere cold-water marine centers in the
world. The Center has a tri-fold mission of research, rehabilitation, and education, providing a variety of services aimed at enhancing marine life
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in the northern regions. The facility draws thousands of visitors who enjoy observing marine life such as seals, sea lions, and marine birds in their
natural habitats and learning about northern marine life from the many educational displays. The Center also plays a valuable role in the
scientific community. Much of the town of Seward reflects pride in this colorful past, from a native heritage center to art galleries showcasing
local talent. Residents of Seward plan and enjoy festivities throughout the year that draw visitors to the area. These include the winter Polar
Bear Jump Off, where brave souls plunge into the icy waters of Resurrection Bay to raise money for charity, and the Fourth of July celebration,
which features food, activities, and the world famous Mount Marathon race.
Transportation
Endowed with an enviable location and transportation infrastructure, Seward continues to seek out industrial development opportunities.
Excellent port and harbor facilities, a rail link to interior Alaska, and road access to Anchorage all provide Seward with infrastructure advantages
and have contributed to the diversity of Seward’s economy. As the southern terminus for the Alaska Railroad and road link to Anchorage and the
Interior, Seward has long been a transportation center. The Alaska Railroad provides over 1.4 billion pounds of cargo transit each year, importing
cargo for the Interior and exporting coal to the Pacific Rim. A new railroad depot was completed in the fall of 1997. Seasonal passenger
transportation is available by rail.
The Seward Highway connects Seward to the Alaska Highway system. Bus and commercial trucking services to and from Anchorage are available
daily. Air services and charters are available at the state-owned airport. Two paved runways are utilized, at 4,240 and 2,279 feet. The port serves
cruise ships, cargo barges, and ocean freighters from Seattle and overseas. The small boat harbor has moorage for 650 boats, and two boat
launch ramps.
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Capital Projects
Project Name
Public Facilities
Seward Library and Museum
Fort Raymond Satellite Fire Station Equipment Storage
Providence Seward Medical Clinic Improvements
Port and Harbor
Replace “D” Floats in small boat harbor
Mooring Dolphins and Dock Improvements at UAF Seward Marine Center
Constructing ADA Boardwalk on South Harbor Uplands of Small Boat Harbor
Electric
Completion of Standby Generator Complex for Seward Electric Utility
Upgrading Transmission Line to 115KV
Installing Automatic Electrical Metering Equipment
Improvements to Redundant Capabilities for Providing Electrical Power During Emergencies
Roads and Streets
Improving and Repairing Streets, Sidewalks, and Roadway Drainage
Paving and Improving Drainage in the Northeast Parking Lot of Small Boat Harbor
Purchasing and Installing Replacement Seward Highway Bridge for Ptarmigan Creek, Falls
Creek, and Trail River
Alaska SeaLife Center
Pump Refurbishments and Relocations at Alaska SeaLife Center
Establish Anchorage SeaLife Center Learning Annex in partnership with Port of Anchorage
Cruise Ship Head Tax
Building New Water Storage Tank and Distribution System
Constructing a Security Float System
Relocating Coast Guard Building and Improving Security to Cruise Ships and Passengers
Improving Cruise Ship Pedestrian Corridor between Railroad and Cruise Ship Terminals
Funding Request
$5,000,000
$2,000,000
$2,000,000
$1,000,000
$1,500,000
$150,000
$5,000,000
$12,000,000
$300,000
$85,000
$750,000
$250,000
$35,000,000
$450,000
$2,300,000
$2,000,000
$3,000,000
$300,000
$500,000
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Section VII: Community Overviews
The Western Side of the Borough
108
The Western Side of the Borough
Overview
In 1778, British explorer Captain James Cook described the Upper Cook Inlet Athabascans in his journal. The Athabascans possessed iron knives
and glass beads, leading Cook to conclude that the Natives were trading indirectly with the Russians. Shortly thereafter, over half the regions
Natives died from a smallpox epidemic between 1836 and 1840, and the Alaska Commercial Company established their first major outpost in
Tyonek by 1875. In 1880, the area had a total of 117 residents, including 109 Athabascans, 6 ‘creoles’, and 2 whites. During this time, gold was
discovered at Resurrection Creek. This made Tyonek become a major disembarkment point for both goods and people. In 1896, a saltery was
established at the mouth of the Chuitna River north of Tyonek, and in 1915 the Tyonek Reservation was established.
The community was struck by the devastating influenza epidemic of 1918 & 1919, which left few survivors among the Athabascans. The
population of the region continued to decline when Anchorage was founded in the early 20th century. Today, the West Side of the Inlet is home
to about three hundred people – approximately 200 in Tyonek and Beluga, and another 100 scattered around as homesteaders in various small
settlements of Old Tyonek Creek, Robert Creek, Timber Camp, Beluga and Moquawkie Indian Reservation.
Community
Population
Beluga
Tyonek
TOTAL
24
166
190
Per Capita $
n/a
$11,261
$11,261
Total Wages
% Unemployment
Workers
Female
% Native
Claimants
45+
Workers
$299,305
4.2%
50%
12%
33%
2,037,815
23.5%
42%
37%
95%
$2,337,120
21.1%
43%
34%
87%
The Western Side of the Borough is home to the Tyonek Native Association. The Corporation is planning massive development projects to the
sum of $18 billion (see below). The core values of Tyonek are: tebughan (Land, Tribe, and People), tradition, pride, good health, trust, success,
leadership, and knowledge. Tyonek is the dominant organization on the West Side of the Inlet, socially, economically, and politically.
Construction
The largest project, a $12 billion Coal-to-Liquid project, will employ 5,000 construction workers and an additional 500 staff. Given the time
needed for permitting and construction, the plant is expected to open between 2018 and 2020. In addition, the Chuitna coal project, a $600
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million investment, will begin construction in 2010 and employ some 500 construction workers. Once the mine is open, an estimate 180-man
camp will be present for the 25-year mine life. Given the large developments planned by Tyonek Native Association, construction expects to be
the largest growing industry on the West Side of the Inlet. In four years, Tyonek expects the population on the West Side to grow from
approximately 300 to over 10,000. 99
Recreation
On the Western Side, visitors can enjoy a secluded nature experience, free from roads, buildings, and the trappings of modern life. Katmai and
Lake Clark National Parks are well known for their recreational offerings. Brown bear viewing at the Brooks River in Katmai National Park draws
visitors each year, while Lake Clark offers fly-in fishing, sightseeing, and hunting. Also on the Western Side is the McNeil River, which offers world
famous brown bear viewing opportunities.
Beluga
Population: 24
Per Capita Income: n/a
Median Family Income: n/a
Median Household Income: n/a
Total Wages: $299,305
2009 New Hires: 4
Female workers: 12%
Overview
Beluga is a small community about ten miles north of Tyonek. 33% of Beluga residents are Native, and the remaining 67% are white. Beluga is a
community owned by Chugach Electric Association.
The Beluga Economy
Three Mile Creek Services is the largest employer in Beluga, and the majority of Beluga workers are employed in the Natural Resources and
Mining industry.100
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Recreation
There are five main fishing rivers in the area: The Buluga, The Theodor, The Chuitna, The Lewis, and Three Mile Creek. Pike Lake is also
considered easy to fish. The record pike caught out of the lake was 49 inches. Many net fishers also fish out of the ocean for subsistence and
employment purposes. King Salmon, Silver Salmon, Sockeye Salmon, and Pike are most common to the area.
Beluga Native residents are of the Tyonek Native Corporation. Much of the culture revolves around the Tyonek identity and subsistence lifestyle.
Tyonek
Population: 166
2009 New Hires: 38
Female workers: 37%
.
Overview
Tyonek lies on a bluff along the northwest shore of the Cook Inlet. The Native village is about 45 miles southwest of Anchorage, and is the largest
community on the western side of the Inlet. Tyonek became a major port during the Resurrection Creek gold rush of the 1880s, but declined
following the founding of Anchorage in 1915. The village was moved to its present location atop a bluff when the old site near Tyonek Timber
flooded in the early 1930s. Tyonek is a Dena’ina (Tanaina) Athabascan Indian village.
Russian trading settlements were established at ‘Tuiunuk’ and Iliamna prior had no right to lease Tyonek Indian land for oil development without
the permission of the Indians themselves. The tribe subsequently sold rights to drill for oil and gas beneath the reservation to a group of oil
companies for $12.9 million. The reservation status was revoked with the passage of the Alaska Native Claims Settlement Act in 1971. Beluga, a
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site near Tyonek, is owned by Chugach Electric Association and provides some electricity for Anchorage. The population of Tyonek has stayed
very stable since the 2000 census, and 95% of residents are Native.
The Tyonek Economy
The Local Government industry employs over half of Tyonek workers, with the largest employers being the Village of Tyonek, Tyonek
Contractors, Tyonek Native Corporation, and the School District. More workers are employed as Construction Laborers than any other
occupation. Unemployment is high compared to the rest of the Borough. 23.5% of residents filed unemployment claimants in 2009, and the per
capita income of the village is less only slightly more than half that of the Borough. Subsistence activities provide salmon, moose, beluga whale,
and waterfowl. Tyonek offers recreational fishing and hunting guide services.101
Education
Tebughna School is the only school in the village, and is attended by 46 students. Teacher housing for Tebughna School was the top priority the
Schools and Facilities Capital Improvement list for state funding in 2010.
Local hospitals or health clinics include research. Tyonek Volunteer Rescue Squad provides auxiliary health care.
Transportation
The village is not accessible by road. Permission is required to land at the local 3,000-foot gravel airstrip, owned by the Village of Tyonek,
although regularly scheduled flights are available. A State owned 4,003-foot gravel airstrip is available at Nikolai Creek, and a 2,400 gravel
airstrip is located at Beluga. A local road connects to nearby Beluga. Barges deliver heavy good to the village.
Tyonek is a Dena’ina Athabascan Indian village practicing a subsistence lifestyle. The Tyonek Native Corporation plans to extensively build up the
West Cook Inlet, with plans for over $18 billion in development projects.
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Section XIII: Borough-Wide
Capital Improvement List
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Capital Improvement Borough
Kenai Peninsula Borough Capital Priorities
Project Name
Justification
Funding Request
District Wide Security Continual need for building security monitoring as well as assuring against aggression or $2,660,000
Camera System
vandalism, camera monitoring is proposed at key access ways as well as adjacent to powerplants and other infrastructure at schools throughout the Borough.
Security Fencing for Solid The funds will be used to purchase and install fencing, electrically activated gates, and power $502,000
Waste Transfer Sites
where necessary, for all solid waste transfer sites currently located on Borough land… The
fencing is necessary to solve the long time bear issues at the sites, which creates safety issues
for users… and help with litter control.
2010 Oil, Mining & Gas Legislative Issues
Issue
Description
Municipal Revenue Sharing
The State of Alaska should establish a sustainable Municipal Revenue Sharing Program that would provide
reliable streams of state funding to all communities. A sustainable Municipal Revenue Sharing Program will
provide for improved public services such as roads, and emergency services, as well as lighten the burden on
the local property owners by reducing property taxes.
PERS/TRS Funding
The State of Alaska is encouraged to pass legislation that will provide continued support for all municipalities
and school districts. Continued legislative support to fully fund “oh-behalf” payments to address the
unfounded PERS and TRS liability is essential to allow KPBSD the ability to maintain effective staffing formulas,
as set forth in SB125.
Personal Property Tax
The Kenai Peninsula Borough supports raising the residential personal property tax exemption from $20,000 to
$50,000, which will provide an additional incentive to land owners.
Adult Vocational Education The Kenai Peninsula Borough supports an adult vocational education center on the Kenai Peninsula. With the
Resource
loss of a large portion of the oil and gas industry and the need to provide training in other vocational areas of
interest, the Kenai Peninsula is an ideal location to be utilized.
State of Alaska Energy Policy
The Kenai Peninsula Borough supports and has promoted the concept of a State Energy Policy based on the
adoption of guiding principles and goals. This policy should guide all levels of state and local government in the
formation of legislation, regulations, and initiatives. These would directly affect exploration, development, and
delivery of all necessary energy sources that will serve residents, businesses, and industries into the future. A
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State Energy Policy should provide clarity and stability to energy development companies, energy-reliant
industries, commercial interests, and homeowners while promoting healthy economic growth for Alaska.
The Kenai Peninsula Borough supports a vision of energy conservation and proper utilization, which coincides
with better management of existing resources. This would dovetail with Alternative Energy concepts. Many of
the principles and goals may already be in use or may already be developed by various agencies, departments,
and divisions of state and local government. The Kenai Peninsula Borough believes a comprehensive policy will
provide for consistent, understandable, and uniformed guidance to all levels of government, which will
promote unity and efficiency.
SeaLife Center Climate Change The State of Alaska has authorized the establishment of an Alaskan Climate Change Knowledge Network
Knowledge and Adaption – (ACCKN) with responsibilities for collecting, interpreting, and using climate change data in Alaska. The SeaLife
Wildlife Research Programs
Center was instrumental in formulating that recommendation and has unanimously endorsed ACCKN. The
Kenai Peninsula Borough supports providing funding for a pilot learning network on the Peninsula to both
observe climate change impacts and share knowledge and innovation to assist Kenai Peninsula Borough
Communities.
State of Alaska –
Maintenance Funding
The Alaska SeaLife Center operate the Alaska strandings network and responds to marine mammal and seabird
strandings and mortalities throughout the State, with 24-hour response and the highest standard of care. This
service is both needed and necessary, and will assist scientific research across Alaska.
Road Out of 50 states, Alaska is the only state that has not established a legislatively funded Road Maintenance
Program. Our local state roads must compete statewide for funding. The Kenai Peninsula Borough supports
establishment of legislative funding to support continued maintenance of existing state roads, so that
timeliness of repairs and replacement can occur before roads become safety issues.
The Kenai Peninsula Borough supports legislation to capitalize stable long-term transportation funding for
Alaska, and the development of a long-term sustainable transportation funding mechanism.
North Slope
Pipeline
Natural
The Kenai Peninsula Borough also supports fair, equitable, and statewide distribution of Federal Economic
Stimulus monies in a manner that benefits all regions and municipalities.
Gas The Kenai Peninsula Borough continues to be a proud supporter of the responsible efforts of the oil and gas
industry, the State of Alaska, and the Federal Government as they continue to investigate and ensure that
Alaska has an economically viable natural gas pipeline project, providing North Slope natural gas to markets
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both within and outside of the State.
The Kenai Peninsula Borough supports an In-State Pipeline Project that has in-state delivery points. This will
best promote increased economic development and will provide for consistent, reasonably priced clean energy
for the short-term and long-term benefits for the majority of Alaska’s communities and citizens.
North Slope Natural Gas Spur The Kenai Peninsula Borough supports the construction of a natural gas spur pipeline, or “bullet line,”
Line to Cook Inlet
connecting the North Slope to the Cook Inlet. The spur pipeline would address Alaskan economic concerns and
long-term energy needs. The Kenai Peninsula Borough supports the efforts of the Alaska Natural Gas
Development Authority (ANGDA) to develop a spur pipeline to bring North Slope natural gas to Southcentral
Alaska, specifically to Nikiski in Cook Inlet.
Cook Inlet Oil & Natural Gas
The Kenai Peninsula Borough acknowledges the declining known reserves of Cook Inlet natural gas and crude
oil. Because of the steep declines in Cook Inlet crude oil production in the last decade, almost half of the crude
oil processed at the Tesoro Refinery in Nikiski comes from foreign sources. This foreign dependency is
expected to grow in the next decade, absent increased production or new discoveries. Additional, Cook Inlet
natural gas reserves are at historic lows and utility capacity cannot keep up with the economic demands of the
Kenai Peninsula Borough. This region is at a crossroads. Promotion, exploration, and development will play an
important part in providing for continued economic growth.
The Kenai Peninsula Borough supports the State of Alaska in pro-actively addressing current Southcentral
energy concerns through aggressive promotion of Cook Inlet oil and gas exploration and enhancing oil
recovery efforts. This includes CO2 miscible gas injection projects to improve ultimate recovery rates from
existing fields.
Cook Inlet Regional Citizens The Kenai Peninsula Borough (KPB) encourages the continued responsible development of natural resources in
Advisory Council Research and Cook Inlet and supports the many projects of the Cook Inlet Regional Citizens Advisory Council (CIRCAC). This
Safety Funding
will ensure that resource development in Cook Inlet is accomplished in an environmentally responsible
manner. CIRCAC’s mission is to promote environmentally safe marine transportation and oil facility operations
in the Cook Inlet region. The KPB supports the work and research done by CIRCAC providing information to
decision-making as it relates to pollution prevention and the review of oil discharge contingency plans. The
KPB has partnered with CIRCAC in an effort to better understand potential risks to the Kenai Peninsula and its
shorelines. The KPB encourages state and federal funding towards projects and programs identified in the
CIRCAC Strategic Plan.
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2010 Kenai Peninsula School District State Legislative Priorities
Issue
Description
Fully implementing ISER Area Code KPBSD recommends the immediate implementation of the findings of the ISER area code differential
Differential
study and the pending intensive needs increase.
Providing sustained, reliable, and Education funding with increases necessary to sustain current programs should not be a year-to-year
adequate educational funding for problem. By providing forward funding, districts can better plan for meeting their student needs. KPBSD
Alaska’s students
recommends the advancement of a new three-year funding plan.
Raising the mandatory age of The KPBSD recommends raising the required age of attendance to 18, helping lower the dropout rate
attendance
and let students know that the final two years of high school are critical to their future well being.
Maintaining funding for the debt The ability to receive partial reimbursement for bonded debt is critical to the safety and welfare of
reimbursement program
KPBSD students. As the District looks forward to major maintenance and construction projects, a
necessary consideration in assuming debt for these projects will be the assistance that the state offers.
Addressing huge energy costs to Increases in energy costs directly impact available revenue for programs. Conservation programs and
school districts through increased or maintenance efforts have been put in place to help with these costs, but will not address the huge
supplemental funding
increases. Relief for high energy costs need to be provided to school districts.
Funding early learning programs in Studies show that for every $1 spent in early childhood education, $8 is saved in later services that are
Alaska
not necessary. Many of Alaska’s children are placed at risk for future school failure because they do not
have access to rich learning opportunities.
Providing support for additional An educated and skilled workforce is a key to economic viability. The District is confident that a vibrant
workforce development courses and vocational program will help reduce the number of dropouts. Funding for career and technical
career and technical needs
education and training, especially at the middle and high school levels, would begin to address the
anticipated gap in workers for Alaska jobs.
Addressing health care costs in Alaska In Alaska, approximately 110,000 residents have no medical insurance and the price of treatment is
increasing. The uninsured costs drive up the costs for everyone. The health care costs are approximately
10% of the District’s budget. The District recommends that the legislature create a statewide insurance
plan in which public entities can participate.
Providing accountability for all school- Having a choice of educational delivery system is important to Alaskans. However, all children have a
age children of the state
right to be safe and receive an education. A registration and educational accountability system for
school age children will help protect the rights of those least able to care for themselves.
Create new high school exit exam
The HSGQE and WorkKeys exam respectively serve to measure student readiness for graduation and
preparedness for the world of work. KPBSD contends that one exam should serve both purposes.
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Section IX: Regional Economic
Development Strategy
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Vision
The Kenai Peninsula Borough is a collection of diverse and vibrant communities where citizens have year-round employment opportunities;
businesses have access to a highly skilled, trained, and educated workforce; residents and visitors can enjoy the unique mix of urban and rural
recreation activities; and responsible city and Borough management promotes economic growth and diversification.
Goals
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
Businesses will have access to a workforce that is highly educated and/or trained.
The Peninsula will have year-round employment for individuals of all ages, preventing a “brain drain” from the Borough and State.
Employees can find reasonable housing within their price range.
Industries and individuals across the Borough will interact and collaborate on relevant projects and the business climate of the Borough.
Entrepreneurs will receive the necessary assistance to startup a business.
Rural communities will receive the necessary and requested support.
Cities and communities will work together to understand pressing issues and concerns throughout the Borough.
The Peninsula will pursue alternative and renewable energy resources to further diversify our economy and decrease energy prices.
The Borough will take advantage of its unique assets to bring diverse economic development opportunities to the community.
The Peninsula will utilize their greatest asset – the people.
Implementation & Action Plan
1) Transportation Portal and Industrial Park Feasibility Study Grant
This feasibility study would look at utilizing the Peninsula as a transportation portal for goods destined for Southcentral Alaska and the Western
Side of Cook Inlet. Instead of transporting the goods by boat to Anchorage, disembarking the goods, and then moving them by sea towards the
Western Side of Cook Inlet, it may be more economical to utilize Seward’s ice-free port and disembark the goods in Seward, transport them by
land to the eastern shore of Cook Inlet, and then ship them by sea to the Western Side of the Cook Inlet.
2) Vocational Education Feasibility Study Grant
In the coming years, a number of projects are anticipated to begin development throughout Alaska. Skilled workers will be at a premium due to
the large scale of these projects, and the Central Peninsula currently lacks a strong vocational training program. This feasibility study would help
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determine if there is the need for a vocational training program in the Central Peninsula, what programs would need to be offered, and how
economically viable the program would be.
3) Creation of Business Development Committee
A business development committee, made up of individuals from all industries and communities throughout the Borough, would be an asset to
understanding the business climate and environment on the Peninsula. Greater business interaction would allow for sharing of information,
knowledge, and best business processes.
4) Combine Revolving Loan Fund with Division of Investments
The Kenai Peninsula Economic Development District has a microloan program and a revolving loan fund. More funding will be available
throughout the Peninsula by tying the EDA revolving loan fund to the Division of Investments.
5) Assist in Creation of the Municipal Conference
As a unified Peninsula, cities and communities must collaborate to learn what opportunities would provide the greatest benefit for the Borough.
A Municipal Conference will pull together Mayors, City Managers, and involved members of the business community to start this discussion,
information from which will then be brought back to the members’ respective communities.
6) Assist in Creation of Biomass Feasibility Study
Many schools on the Kenai Peninsula heat their schools with diesel fuel, especially the rural schools. High diesel energy prices directly affect the
budget, classes offered, and extracurricular programs at these schools. This feasibility study would determine the cost-benefit of heating these
schools using biomass fuel from trees affected by the spruce bark beetle infestation.
7) Hold Bankers Luncheon with Small Business Development
Banks throughout the community and Peninsula should interact with each other to understand the programs and offerings that exist throughout
the community. While a customer may not fit a program at one bank, they may fit a program at another bank. Getting the senior members of
the banks throughout the communities together to discuss their business offerings will not only benefit the banks’ operations, but also the
private entrepreneur who depends on the banks for services.
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8) Perform 2011 Gap Analysis Study
The 2010 Gap Analysis Study developed by the Kenai Peninsula Economic Development District was the first study to look at all Peninsula
communities and industries in order to determine gaps in business growth, development, and to create a baseline. The study should be
completed on a yearly basis to understand how the Borough is changing and what further assistance is needed across the Peninsula.
9) Revitalize Business Innovation Center
Between energy prices, rent prices, and startup costs, emerging entrepreneurs are hesitant to open or grow their business. The Kenai Peninsula
Economic Development District administers a Business Innovation Center for young and struggling companies that need office space at a rate
below market value. By adding tenants to the Business Innovation Center, businesses that need the most help will have more affordable rental
space.
10) Promote Affordable Housing Initiative
Part of the problem attracting a strong year-round workforce is the lack of affordable housing on the Kenai Peninsula. Housing either tends to be
in poor condition, or with a steep price tag. Some communities are already looking into this problem. Cooper Landing, for example, is starting to
examine self-help housing. Efforts across the Borough to analyze the availability and conditions of affordable housing should be taken.
11) Support Pro-Development Projects Resulting in Job Growth
Alaska is a natural resource state. Development efforts across the state could bring an influx of jobs and boom to the state and local economy.
The Kenai Peninsula is set to receive numerous benefits from large scale mines and projects on the west side of Cook Inlet. Quality schools and
diverse communities put Kenai in position to house a number of mine workers and their families. The Borough should support responsible
development projects throughout the state in order to improve both the State and Borough economy.
12) Hiring MASST Employees
The MASST program places older individuals in community service positions and provides them with job training to help them become more
sufficient and support organizations that benefit from increased civic involvement. As retirement-aged residents are the largest growing
demographic in the Borough, this program should be supported and utilized throughout the Borough where applicable.
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Partners
In the past year, the Kenai Peninsula Economic Development District has worked with numerous businesses, non-profits, cities, and associations
to best serve the Borough. To successfully implement the CEDS, partnerships throughout the communities of the Borough will be invaluable
assets towards the vision of creating a more stable economy. Past partnerships include:
Kenai Chamber of Commerce
Seward Chamber of Commerce
City of Kenai
City of Homer
Seward Phoenix Log
KSRM
XTO Energy
Tesoro Alaska
Rain for Rent
Arctic Safety
Enstar
Soldotna Chamber of Commerce
Cooper Landing Chamber of Commerce
City of Soldotna
City of Seldovia
Seldovia Gazette
Metalizing Inc.
GLM Corporation
Alaska USA
Homer Electric Association
Kenai Chapter of the Alliance
Alaska Small Business Development Center
Homer Chamber of Commerce
Homer Economic Development Committee
City of Seward
Peninsula Clarion
KDLL Public Radio
McJunkin Red Man
Lynden Transport
Chumleys Inc.
USDA Rural Development
Beacon Training
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Kenai Peninsula
Gap Analysis Survey
Prepared by:
Kenai Peninsula
Economic Development District
Thomas Sloan
AmeriCorps VISTA
John Torgerson
Executive Director
June 2010
Acknowledgement
The preparation of this report was financed in part by funds received from the U.S. Department of Commerce,
Economic Development Administration, State of Alaska, Department of Commerce, Community and Economic
Development, and the Kenai Peninsula Borough.
0
TABLE OF CONTENTS
Introduction and Methodology----------------------------------------------------------------------------Section I: Qualifying Data-------------------------------------------------------------------------------------Section II: Your Business and Economic Confidence-------------------------------------------Section III: Employment and Sales Expectations------------------------------------------------Section IV: Borough Projects and Industries-------------------------------------------------------Section V: Barriers to Economic Growth and Development------------------------------Section VI: Improvements, Opportunities, and Services------------------------------------Section VII: Breakdown by Community---------------------------------------------------------------Anchor Point------------------------------------------------------------------------------------------------------Clam Gulch--------------------------------------------------------------------------------------------------------Cooper Landing--------------------------------------------------------------------------------------------------Homer---------------------------------------------------------------------------------------------------------------Hope-----------------------------------------------------------------------------------------------------------------Kenai-----------------------------------------------------------------------------------------------------------------Ninilchik------------------------------------------------------------------------------------------------------------Seldovia-------------------------------------------------------------------------------------------------------------Seward--------------------------------------------------------------------------------------------------------------Soldotna------------------------------------------------------------------------------------------------------------Sterling---------------------------------------------------------------------------------------------------------------
Section VIII: Breakdown by Industry--------------------------------------------------------------------Arts / Education-------------------------------------------------------------------------------------------------Construction / Maintenance--------------------------------------------------------------------------------Finance / Insurance--------------------------------------------------------------------------------------------Fishing / Seafood-----------------------------------------------------------------------------------------------Food Services-----------------------------------------------------------------------------------------------------Government-------------------------------------------------------------------------------------------------------Information Technology--------------------------------------------------------------------------------------Media / Communications------------------------------------------------------------------------------------Non-Profit----------------------------------------------------------------------------------------------------------Personal Services------------------------------------------------------------------------------------------------Professional Services------------------------------------------------------------------------------------------Real Estate---------------------------------------------------------------------------------------------------------Tourism / Hospitality------------------------------------------------------------------------------------------Transportation---------------------------------------------------------------------------------------------------Wholesale / Retail Trade-------------------------------------------------------------------------------------
About the Kenai Peninsula Economic Development District------------------------------
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1
Introduction and Methodology
In an effort to fully understand the economic climate and business needs across the Kenai Peninsula
Borough, the Kenai Peninsula Economic Development District (KPEDD) developed and conducted a Gap
Analysis Survey in the winter and spring of 2010. The purpose of the survey was to indentify any gaps or
barriers to economic development and growth throughout the Peninsula. A total of 327 organizations
and individuals completed the survey, representing a comprehensive cross-section of the business
environment in the Borough.
The survey launched on February 15, 2010, and closed on May 15, 2010. Responses were gathered by
multiple methods: face-to-face interviews, phone interviews, online responses, and mailed responses.
The survey was advertised throughout the Peninsula in a variety of venues and with the assistance of
community partnerships. Chambers of Commerce in Kenai, Seward, Cooper Landing, Soldotna, and
Seward, in addition to the Homer Economic Development Committee, Seldovia Gazette, Peninsula
Clarion, KSRM Radio, and Seward Phoenix Log were valuable partners in assisting the KPEDD’s outreach
across the Borough.
This report analyzes the results of the Gap Analysis Survey, and is broken into the following sections:
Section I: Qualifying Data – outlines basic background data used to group organizations:
industry, community, sales, employees, and age of business.
Section II: Your Business and Confidence – businesspeople outline their economic expectations
and business trends, including seasonality, internet usage, and interaction with other businesses
throughout the Peninsula.
Section III: Employment and Sales Projections – organizations project their employment and
sales expectations for 2010 and beyond.
Section IV: Borough Projects and Industries – respondents offer their opinions on various
projects and industries relevant to the Kenai Peninsula Borough. These projects are then rated
based on economic importance and their level of support.
Section V: Barriers to Growth and Development – seventeen barriers to organizational growth
were developed, and respondents rate the level of significance of each barrier. Additional writein barriers were encouraged.
Section VI: Improvements, Opportunities, and Services – businesses weigh in on their area of
greatest improvement, what services they would utilize if available, and the opportunities for
economic development throughout their community.
Section VII: Breakdown by Community – each community with five or more respondents is
analyzed in greater detail. Included for each community is a profile of the respondents,
employment and sales expectations for the community, economic confidence of the
community, barriers to growth for area businesses, desired improvements and services,
economic opportunities in the community, and a breakdown of the community’s support for the
projects and industries listed in Section IV.
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Section VIII: Breakdown by Industry – each industry with five or more respondents is looked at in
further depth. Included for each industry is a profile of the respondents, employment and sales
expectations for the industry, barriers to growth for the industry, and desired improvements
and services for the industry.
Comments included in the report are taken from the interviews or verbatim from the online results. Not
all comments have been included due to redundancies, but a valid cross-section has been chosen.
(Note: In the following tables, charts, and graphs, some data may not equal 100 percent due to
rounding when percentages were calculated. Also, there are instances where answers of ‘Not
Applicable’ have been omitted.)
About the Kenai Peninsula Economic Development District
The Kenai Peninsula Economic Development District, Inc. (KPEDD) is located in Kenai, Alaska, in the
heartland of Southcentral Alaska. The District’s boundaries correspond to the geographical boundaries
of the Kenai Peninsula Borough. KPEDD’s mission is to provide leadership in enhancing, fostering, and
promoting responsible and sustainable economic development.
The first Overall Development Program for the Kenai Peninsula Borough was developed in 1971, and, in
1980, the Kenai Peninsula Borough Resource Development Commission was established to serve in an
advisory capacity to the Kenai Peninsula Borough on economic issues and to continue regional economic
planning. The Borough Assembly and the Borough administration worked in partnership with
municipalities and the Kenai Peninsula Resource Conservation and Development District to create a
nonprofit economic development district, KPEDD, in 1988. KPEDD, a 501c(4), also has a sister
organization, Kenai Peninsula Opportunities (KPO), a 501c(3) nonprofit.
In 1989, KPEDD was the first organization in Alaska to receive the designation as an Alaska Regional
Development Organization (ARDOR). With this status, KPEDD became eligible for funding assistance
from the State of Alaska to further regional economic development goals.
The KPEDD Board of Directors is structured to comply with the U.S. Department of Commerce, Economic
Development Administration (EDA), and Alaska state requirements. The Board includes elected officials
from the Kenai Peninsula Borough and the cities of Kenai, Soldotna, Seward, Homer, and Seldovia. Also
on the Board are business leaders across the Borough, representing the economic sectors of the region.
There is also representation of minority groups and the under-employed and underserved sector.
Current staff includes an Executive Director, a Programs Manager, and an AmeriCorps VISTA member.
KPEDD has received planning grants with the EDA and the Alaska Department of Commerce, Community
and Economic Development. KPEDD also has a contract with the Kenai Peninsula Borough. The
organization augments these funding sources with project-specific grant programs, rental income from
operating a 20,000 square foot Business Innovation Center, which includes a 6,000 square foot
warehouse, grant administration fees earned by administering grants for other groups, fees from the
operation of two revolving loan funds, and some corporate donations. Generous sponsors help fund
community economic forums.
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Section I: Qualifying Data
Respondents by Zip Code
In all, 14 communities from the Kenai Peninsula Borough are represented in the survey results. Of these,
Soldotna had the highest number of responses with 85. The four largest cities make up 81% of the total
responses, and the outlying areas communities make up the remaining 19%.
Anchor Point – 5
Clam Gulch – 5
Cooper Landing – 10
Homer – 63
Hope – 6
Kasilof – 1
Kenai – 57
Moose Pass – 3
What is your organization’s zip code?
Nikiski – 1
Ninilchik – 7
Seldovia – 15
Seward – 59
Soldotna – 85
Sterling – 7
Outside the Borough – 3
Respondents by Industry
As one of the 23 industries represented in the Gap Analysis Survey, the Tourism / Hospitality industry
makes up slightly over 30% of the total responses. Other industries with at least twenty responses are:
Professional Services, Wholesale / Retail Trade, Real Estate, Arts / Education, and Non-Profits.
What industry best describes your organization?
Arts / Education – 21
Health Care – 4
Real Estate – 22
Construction / Maintenance – 13 Information Technology – 5
Refuse Hauling – 1
Engineering / Architecture – 3
Manufacturing – 4
Rental Properties – 1
Entertainment – 2
Media / Communications – 5
Tourism / Hospitality – 100
Finance / Insurance – 13
Mining / Oil – 4
Transportation – 14
Fishing / Seafood – 12
Non-Profit – 20
Utilities – 3
Food Services – 7
Personal Services – 7
Wholesale / Retail Trade – 23
Government – 16
Professional Services – 27
126
Respondents by Number of Full-Time Employees
The majority of businesses on the Kenai Peninsula are small in size, as 77% of respondents work for
companies with five or fewer full-time year-round employees. On average, 2.5 full-time employees are
added to each organization during the peak season. Part-time employment has a similar seasonal
increase. 51% of organizations grouped with five or fewer employees expect gross sales increases in
2010 compared to 2009, the same percentage for organizations group with over five employees.
Respondents by # of Full-Time Employees
3% 2%
9%
9%
42%
35%
Self-Employed - 139
1 to 5 - 114
6 to 10 - 30
11 to 49 - 28
50 to 99 - 10
Over 100 - 6
Respondents by 2009 Gross Sales / Budget
Companies with historically larger sales figures are more optimistic about future sales gains than
companies with lower sales figures. 63% of companies with gross sales over $1,000,000 expect sales
increases, while only 49% of companies with gross sales under $250,000 expect the same.
Respondents by 2009 Gross Sales / Budget
10%
10%
40%
9%
10%
21%
Under $100,000 - 130
$250,000 to $500,000 - 34
$1,000,000 to $5,000,000 - 33
$100,000 to $250,000 - 67
$500,000 to $1,000,000 - 29
Over $5,000,000 - 31
127
Respondents by Age of Business
Most of the businesses in the Borough have been in operation for over three years. Only 11% of
organizations have been in business under three years. Younger companies expect to have greater gross
sales increases than established businesses in 2010. Three-quarters of organizations under three years
expect to increase their gross sales, while only 48% of organizations over three years expect to increase
their gross sales.
Respondents by Age of Business
11%
89%
Under 3 Years - 36
Over 3 Years - 291
Seasonality
The Kenai Peninsula Borough, like all of Alaska, has a number of seasonal economic influences. Over
one-quarter of respondents are from seasonal companies. Many others, while open year-round,
perform a bulk of their sales in the peak season. Year-round businesses are more optimistic about future
sales than seasonal businesses – 53% of year-round organizations expected sales increases in 2010 over
2009 compared to just 46% or seasonal organizations.
Business Seasonality
27%
73%
Seasonal - 89
Year-Round - 238
128
Section II: Your Business and Confidence
Business confidence is an important factor to economic strength. An economy with high economic
confidence is more willing to invest in capital improvement projects, hire new employees, and spend
additional money. Looking at the Borough as a whole and also the state of Alaska, respondents report
cautiously optimistic business confidence for both the Borough economy and the Alaskan economy.
Compared to 2009, 49% of respondents believe the Borough economy will improve in 2010, with only
24% who believe that the Borough economy will decline. 48% of the Borough believe that the Alaskan
economy will improve in 2010 compared to 2009, and 31% believe the Alaskan economy will face
continued economic declines.
State of Alaska
116109
87
36 40
8 7
71
62
78
16 22
2 0
Startup Assistance
Alaskan businesses are fairly self-sufficient when starting their businesses. Only one-fifth of respondents
who have started their own business have sought startup assistance. The Kenai Peninsula Economic
Development District and the Small Business Development Center are reported to be the two most
commonly utilized services for startup assistance.
12
4%
Small Business Development Center
23
7%
Other
17
5%
No Assistance
205
63%
Not Applicable, I did not start my own business
70
21%
“Other” answers included: Banks, Attorneys, Small Business Administration, Government
(cities and the Borough), Family, AMEP, Homer Bed & Breakfast Association, Previous
Owners, Real Estate Brokers, and Other Outside Organizations
129
Internet Usage
Businesses on the Peninsula overwhelmingly rely on the internet for marketing, online sales, and loan
and grant applications. 84% of businesses utilize the internet either always or often, and 52% of these
companies expect 2010 sales to increase. Of the companies that utilize the internet only rarely or never,
36% expect 2010 sales to increase.
Internet Usage
2%
12%
4%
50%
32%
Always - 166
Often - 108
Sometimes - 39
Rarely - 7
Never - 14
Comments
The internet is my life blood.
The Internet is a cost effective marketing tool allowing us to compete with the foreign ships.
Internet is slow and expensive, makes online meetings difficult.
Expansion of high-speed internet which brings us into a competitive positioning with the lower
48. The rest of the world continues to increase their overall internet speeds while we on the
Kenai Peninsula continue paying higher costs for speeds considerably less than what others in
the rest of the world are able to obtain.
We need projects that promote higher speed internet access to outlying areas via cable.
130
Peninsula Interaction
Interaction with other businesses on the Kenai Peninsula is fairly common. Nearly 70% of respondents
utilize partnerships in their operations either always or often. Less than 6% report interacting with
outside businesses rarely or never. Businesses that interact with others are found to be more ready to
overcome the struggles. 54% of businesses that always or often interact with businesses around the
Borough expect an increase in gross sales in 2010, compared to only 46% that rarely or never interact
with other Borough businesses.
Peninsula Interaction
5% 1%
27%
24%
43%
Always - 89
Often - 139
Sometimes - 80
Rarely - 17
Never - 2
Out-of-State Sales
Whether through direct sales to the Outside or through Outside tourist dollars, businesses on the Kenai
Peninsula derive a sizable portion of their sales from outside of Alaska. One-third of businesses sell at
least 25% out of state. 55% of organizations that sell more than half their product out-of-state expect
2010 gross sales increase, while 50% of organizations that sell less than a quarter of their product outof-state expect a 2010 gross sales increase. Out-of-state sales include product sold to the Outside
(seafood, manufactured goods, web design, etc.) and also includes some organizations who sell to outof-state customers (accommodations, museums, national advertising, etc.)
Percentage of Out-of-State Sales
41%
14%
9%
10%
26%
Over 75% - 46
50-75% - 29
25-50% - 34
Less than 25% - 84
Never - 134
131
Oil and Gas Tax Environment
Respondents are fairly split when accessing the tax impact of North Slope oil production. Almost half of
participants believe the tax environment discouraged production, with nearly two-fifths believing it does
not discourage production.
Do you think Alaska’s oil and gas tax environment encourages or discourages oil production on the
North Slope?
Discourages
161
49%
Encourages / Doesn’t Discourage
121
37%
Neither / Don’t know
45
14%
Comments
I think it discourages, but I also think this is a proper protection action. There are other more
responsible energy options available to Alaska and Oil and Gas shouldn't be the only two we
worry about.
What is more discouraging is the duplication and inefficiencies of regulations among overseeing
agencies
I believe our gas producing corporations are enjoying the highest profits of any American
company in history. Pretty encouraging.
We tax the oil companies too much; there is no incentive to stay.
Regardless of the tax amount, we have not been consistent or predictable with our policies.
The oil and gas industry makes billions of dollars off Alaska's oil and gas. They haven't paid their
fair share since we started oil flowing in the late 70s.
All taxes discourage production. Get rid of EPA and open all the damn parks and national forests
to be developed by the people if you want more production\taxes.
The tax rates and regulatory environment for the oil companies in Alaska continue a trend
toward moving capital elsewhere in the world.
I don't believe it affects it one way or the other. Even though the companies say something
different.
132
Section III: Employment and Sales Expectations
Gross sales for companies throughout the Kenai Peninsula Borough are anticipated to increase at a
strong rate in 2010 when compared to 2009. Over half of companies expect sales to increase, while less
than one-quarter expect a decline in sales from last year.
100
88
49
36
24
18
10
25+%
10-25% 0-10%
Increase Increase Increase
No
0-10% 10-25%
25+%
Change Decrease Decrease Decrease
22%
51%
27%
Increase in Sales
No Change
Decrease in Sales
133
2010 Employment Expectations
Falling in line with the cautious optimism for the Borough and Alaskan economies, little employment
change is expected in 2010 despite strong increases in gross sales. Over three-quarters of companies do
not plan to change the number of full-time jobs in their organization. This follows a national trend where
organizations expect sales to increase without expecting a significant change to employment in the short
term. Many interviewees mentioned that while sales projects were optimistic, they would wait to see if
the gains were sustained over a three-to-five year period before hiring again.
243
12
10+%
Increase
29
0-10%
Increase
24
No Change
0-10%
Decrease
12
10+%
Decrease
11%
13%
76%
Increase in Employment
No Change
Decrease in Employment
134
5-Year Jobs Creation
Over one-third of respondents plan to undergo a significant capital improvement project in the next five
years. These projects are expected to bring, on average, over three jobs per organization to the
Borough, with a median gain of 0.58 jobs per organization. The capital improvement projects and
related job creation is anticipated to be fairly concentrated in the four largest cities, however.
Organizations in rural communities expect to add 1.0 job, while the average for the four cities is nearly
quadruple that amount at 3.8 jobs. Most of these jobs are expected to be concentrated in the KenaiSoldotna area.
The first table below breaks down the predicted job growth by community, with the second table
looking at the data by industry.
Community
Anchor Point
Clam Gulch
Cooper Landing
Homer
Hope
Kasilof
Kenai
Moose Pass
Nikiski
Ninilchik
Seldovia
Seward
Soldotna
Sterling
Job Growth by Community
Respondents
Jobs
5
7
5
2
10
5
63
86
6
6
1
3
57
158
3
3
1
0
7
13
15
17
59
86
85
685
7
2
BOROUGH TOTAL
324
1073
COMMUNITY MEDIAN
Jobs / Company
1.4
0.4
0.5
1.4
1.0
3.0
2.8
1.0
0.0
1.9
1.1
1.5
8.1
0.3
3.31
1.25
135
Job Growth by Industry
Industry
Respondents
Jobs
Arts / Education
21
134
Construction / Maintenance
13
382
Engineering / Architecture
3
7
Entertainment
2
4
Finance / Insurance
13
0
Fishing / Seafood
12
7
Food Services
7
3
Health Care
4
0
Information Technology
5
4
Manufacturing
4
11
Media / Communications
5
0
Mining / Oil
4
2
Non-Profit
20
36
Personal Services
7
8
Professional Services
27
42
Real Estate
22
0
Refuse Hauling
1
0
Rental Properties
1
0
Tourism / Hospitality
100
58
Transportation
14
24
Utilities
3
0
Wholesale / Retail Trade
23
11
SUBTOTAL
311
733
INDUSTRY MEDIAN
Government
16
342
SURVEY TOTAL
327
1075
SURVEY MEDIAN
Jobs / Company
6.4
29.4
2.3
2.0
0.0
0.6
0.4
0.0
0.8
3.8
0.0
0.5
1.8
1.1
1.6
0.0
0.0
0.0
0.6
1.7
0.0
0.5
2.4
0.58
21.3
3.3
0.58
136
Section IV: Borough Projects and Industries
Some projects throughout the Borough are nearly universally supported and also deemed universally
important, such as tourism, sport fishing, and a natural gas “bullet” pipeline to the Cook Inlet. Other
projects, like Pebble Mine, the Cooper Landing Bypass, and Coal Export, are more controversial. Here,
respondents are given a list of projects and industries relevant to the Kenai Peninsula Borough and then
rank their economic importance to the Borough and also the respondents’ personal level of support.
Projects and Industries by Importance
Very
Somewhat
Important
Important
Tourism
287
37
Sport Fishing
266
59
Natural Gas “Bullet” Pipeline to Cook Inlet
251
64
Cook Inlet Resource Development
236
69
Commercial Fishing
234
85
Alaska Gas Pipeline
233
71
Upgrades to the Sterling/Seward Highways
195
110
Workforce Training
181
138
Subsistence Fishing
143
115
Coal Export
129
136
Pebble Mine
129
81
Mount Spurr Geothermal
117
144
Cooper Landing Bypass
84
142
Project/Industry
Project/Industry
Tourism
Alaska Gas Pipeline
Natural Gas “Bullet”
Pipeline to Cook Inlet
Sport Fishing
Cook Inlet Resource
Development
Commercial Fishing
Workforce Training
Upgrades to the
Sterling/Seward Highways
Subsistence Fishing
Coal Export
Pebble Mine
Projects and Industries by Level of Support
Strongly
Somewhat
Neutral
Support
Support
265
40
14
233
47
26
Not
Important
2
1
11
21
7
22
21
7
68
60
115
57
99
Somewhat
Oppose
1
12
Strongly
Oppose
0
2
219
61
34
4
2
215
80
23
2
0
207
54
43
9
7
180
177
89
98
32
45
12
0
7
0
164
96
49
9
2
135
125
110
95
91
81
76
101
52
82
66
71
102
50
102
27
18
6
33
24
11
30
1
90
21
137
Section V: Barriers to Growth and Development
Barriers to Growth
Seventeen factors are given to respondents in order to determine the extent that the factors hindered
organizational growth. A follow-up question asked for additional barriers that are not covered as one of
the seventeen. The national economy and high energy prices are the most significant and prevalent
barriers faced throughout the Borough. A number of other barriers affect nearly half of Peninsula
businesses.
In interviews, it was determined that the national economy hurt companies in one of three major ways:
1) Decreased retail sales as consumers are tightening their wallets;
2) Fewer tourists are visiting the Peninsula, and those who do visit are spending less; and
3) An uncertain economy has prevented necessary business improvements.
To what extent are the following factors a barrier to your organization’s growth?
Barrier
Significant
Moderate
No Barrier
Not
Barrier
Barrier
Applicable
National Economy
126
140
50
11
Energy Prices
107
139
64
17
Health Insurance
60
77
112
78
Federal Regulations
57
92
138
40
Access to Capital
56
102
135
34
Federal Taxes
47
109
143
28
Workers Compensation Insurance
47
97
128
55
Energy Supply
42
84
166
35
State Regulations
41
101
149
36
Permitting
40
77
174
36
Access to a Trained Workforce
37
109
130
51
Job Readiness of Entry-Level Workers
35
90
148
54
Worker Availability
31
90
161
45
Local Regulations
29
77
187
34
Transportation Linkages
23
79
171
54
Cost of Commercial/Rental Property
19
105
139
64
State Taxes
17
59
190
61
Other barriers listed included: High speed internet access; Affordable employee housing; Local governments
not conducive to private business; Competition from the Outside; Volunteerism; Driveway access onto the
Sterling Highway; Industry competition; Lack of long-term natural gas contracts; No city or well water;
Peninsula marketing; No public transportation
138
Most Significant and Prevalent Barriers by Community
Barriers to organizational development and growth differ between communities. The first table lists the
most significant barriers to growth for each community, determined by the most votes for “Significant
Barrier”. The second table lists the most prevalent barriers to growth for each community, determined
by the most votes for either “Significant Barrier” or “Moderate Barrier”. For each community, barriers
are listed in terms of significance or prevalence.
Community
Anchor Point
Clam Gulch
Cooper Landing
Homer
Hope
Kasilof
Responses
5
5
10
63
6
1
Kenai
57
Moose Pass
Nikiski
Ninilchik
Seldovia
Seward
Soldotna
Sterling
3
1
7
15
59
85
7
Community
Anchor Point
Clam Gulch
Cooper Landing
Homer
Hope
Kasilof
Responses
5
5
10
63
6
1
Kenai
57
Moose Pass
Nikiski
Ninilchik
Seldovia
Seward
Soldotna
Sterling
3
1
7
15
59
85
7
Most Significant Barriers by Community
Barriers
Federal Regulations; Energy Prices; National Economy
National Economy; Health Insurance
National Economy, Energy Prices, Workers Compensation Insurance
National Economy; Energy Prices; Health Insurance
Energy Prices; Health Insurance
National Economy; Health Insurance; Energy Prices; Workers Compensation
Insurance; Energy Supply; Property Costs
National Economy; Access to Capital; Federal Regulations; Workers Compensation
Insurance
National Economy; State Regulations; Local Regulations; Permitting
National Economy; Property Costs
National Economy; Energy Prices; Health Insurance
National Economy; Energy Prices; Transportation Linkages; Energy Supply
Energy Prices; National Economy; Local Regulations
National Economy; Health Insurance; Energy Prices
National Economy; State Regulations; Permitting; Federal Regulations; Access to
Capital; Transportation Linkages
Most Prevalent Barriers by Community
Barriers
Federal Regulations; Energy Prices; National Economy
National Economy; Access to Capital
National Economy; Energy Prices; Federal Taxes
Energy Prices; National Economy; Federal Taxes
Energy Prices; Transportation Linkages; Health Insurance; Energy Supply
National Economy; Health Insurance; Energy Prices; Workers Compensation
Insurance; Energy Supply; Property Costs
National Economy; Access to Capital; Access to a Trained Workforce; Federal
Regulations
National Economy; Energy Prices; Federal Regulations
National Economy; Property Costs
National Economy
Transportation Linkages; National Economy; Energy Prices
National Economy; Energy Prices; Local Regulations; Permitting
National Economy; Energy Prices; Access to a Trained Workforce
National Economy; Energy Prices; State Regulations; Workers Compensation
Insurance
139
Comments
Regulations and permitting have no consideration for common sense.
Alaska has been getting in our way.
Easy to stop things, hard to start things. Regulations and permits bog down the entire
development process
Upgrades to the highways are desperately needed. There is no way to keep up with the
potholes.
The Kenai Spur Highway between Soldotna and Kenai need an upgrade.
Need a place for concept development.
Something needs to be done to incentivize exploration in the Inlet.
Local governments need to give support and preference to Alaskan owned organizations when
awarding business contracts.
Large organizations believe that local vendors cannot be competitive with national companies.
Agencies need to start working together
Give PFD in the form of vouchers instead of cash, and require that some is spent in Alaskan or
Borough businesses.
140
Effect of High Energy Prices
Over 70% of businesses throughout the Borough have been recently affected by high energy prices. As a
result of the prices, 52% of companies have increased prices, 17% have reduced product or service
availability, and 11% have decreased employment.
Effect of High Energy Prices
171
Increased Prices
54
Reduced Availability
Reduced Employment
Other
No Effect
37
30
90
Other included: Altered Business Practices (14), Reduced Profits (9), Altered Capital
Improvements (2), Decreased Tourism (2), Decreased Prices (1), Increased Business
Interest (1), Created Need for Local Sharing (1)
Comments
Lower profit margin.
We changed from an oil based heating method to a moderate wood based heating system to
avoid paying higher heating oil costs.
Our utilities are as much as our mortgage.....we had to cut back on lodge improvements and
expenses.
We had to decrease our prices to encourage more business
Invested in CFL and LED lighting, which greatly decreased our monthly HEA bill.
Implemented numerous conservation practices.
Real Estate uses a lot of car miles. With high gas prices I have to budget/curtail my travel miles
in my car.
141
Section VI: Improvements, Services, and Opportunities
Business Improvements
In order to reach their full business potential, 95% of respondents would like to improve at least one
thing about their business. Nearly half would like to see a larger market, although access to financing,
improved employees and workforce, improved business support services, and other improvements also
are seen as desired improvements.
Business Improvements
140
Access to a Larger Market
Access to Financing
56
Improved Employees & Workforce
54
Improved Business Support Services
Other
33
54
Others include: Better facilities; Peninsula marketing; Increased community interest; Improved networking;
Increased Peninsula interaction; Improved internet access; Operating Efficiency; Paved roads; Local politicalbusiness climate; Updated technology; Additional volunteerism
Opportunities for Economic Development
Businesses across the Borough have an eye for the current opportunities for economic development in
their area. Over three-quarters of respondents believe that there are areas of growth and economic
development throughout the Borough. Opportunities seen by multiple respondents are as follows:
Tourism, 65
Alternative Energy, 12
Resource Development, 9
Economic Recovery, 7
Economic Diversity, 6
Conference Centers, 4
Government Efficiency, 4
Manufacturing, 4
Cruise Ships, 3
Real Estate, 3
Transportation, 3
Government Contracts, 2
Lodging, 2
Recreational Services, 2
Oil & Gas Exploration, 18
Education Opportunities, 12
Seward’s Ice-Free Port, 9
Service-Based Companies, 7
Retail Sales, 5
E-Business, 4
Health Care, 4
Technology Consulting, 4
Green Businesses, 3
Summer Housing, 3
Young Adult Employment, 3
Less Competition, 2
Natural Gas to Homer, 2
Sustainable Seafood, 2
Fishing, 13
Year-Round Industry, 11
Population Growth, 8
Construction, 6
Entrepreneurs, 5
Ecotourism, 4
Local Agriculture, 4
Affordable Housing, 3
Non-Alcoholic Entertainment, 3
Support Services, 3
Coal Export, 2
Leverage uniqueness, 2
Peninsula-wide Interaction, 2
Vocational Training, 2
142
Interest in Business Support Services
Various business support service and assistance programs are desired throughout the Borough. On
average, respondents would utilize nearly two programs apiece. The most popular programs are
Computer, Internet, and Technical Assistance and Market Research Assistance, each supported by nearly
half the businesspeople across the Borough.
Assitance Program Interest
Computer, Internet, & Technical
45%
Market Research
45%
27%
Access to Capital
20%
Business Planning
16%
Tax Preparation
15%
Recruitment
13%
Certification & Regulation
Procurement
6%
143
Section VII: Breakdown by Community
Anchor Point
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Full-Time Employees
Full-Time Employee Breakdown
Median Gross Sales
Gross Sales Breakdown
Startup Assistance
5
60% - Tourism / Hospitality
20% - Professional Services
20% - Real Estate
100% Year-Round
100% Over Three Years
1 to 5 Employees
20% - 11 to 49
20% - 6 to 10
20% - 1 to 5
40% - Self-Employed
$100,000 to $250,000
40% - $1,000,000 to $5,000,000
40% - $100,000 to $250,000
20% - Under $100,000
None
Employment, Sales Expectations, and Confidence
There are no anticipated changes in Anchor Point employment in 2010. Looking toward the future, 80%
of companies in Anchor Point anticipate a capital improvement project in the coming five years. These
projects are expected to bring an average of 1.4 full-time jobs per company, making Anchor Point one of
the faster growing rural communities.
Similarly, the community of Anchor Point anticipates one of the highest gross sales increases across the
Borough. 60% of companies in Anchor Point expect gross sales to increase in 2010 compared to 2009,
and the remaining 40% do not expect any change. This made Anchor Point, along with Cooper Landing,
as the only communities with five or more responses where no respondents expect a decline in gross
sales. Likewise, Anchor Point is one of the most confident communities for the Borough economy for the
coming year, with no respondents expecting the Borough economy to be worse off in 2010 compared to
the economy in 2009.
Barriers to Growth
Outside of Cooper Landing, organizations in Anchor Point face more barriers to growth per company
than any other community in the Borough. The national economy, energy prices, and federal regulations
are both the most significant and prevalent hurdles in the community, affecting 100% of businesses
surveyed. Workers compensation insurance, permitting, and access to capital each affect 80% of
businesses in the community. Health insurance, property costs, and local regulations do not play a major
role in Anchor Point.
144
Improvements, Opportunities, and Services
The most prevalent improvement Anchor Point businesses would like to see is peninsula-wide
marketing. They feel Anchor Point has a wealth of recreational and tourist-related offerings, but that it
gets lost in the shuffle with Homer nearby. Other businesses would like to see an improved workforce
and a larger market for Anchor Point. While business support services are not a primary concern for
Anchor Point organizations, they are interested in a number of programs. Access to Capital Assistance
interested 80% of Anchor Point business, and Computer, Internet, and Technical Assistance and Market
Research Assistance is desired by 60% of respondents.
Projects and Industry Support
Alaska Gas Pipeline
Cook Inlet Resource Develop.
Bullet Pipeline to Cook Inlet
Workforce Training
Pebble Mine
Coal Export
Commercial Fish
Sport Fishing
Subsistence Fishing
Tourism
Seward/Sterling Hwy Upgrades
Very
Important
60
100
40
60
100
100
60
80
0
100
0
60
60
Somewhat
Important
40
0
40
40
0
0
40
20
20
0
80
40
40
Not
Important
0
0
20
0
0
0
0
0
80
0
20
0
0
Strongly
Support
40
100
40
20
80
60
20
80
0
100
0
40
80
Somewhat
Support
40
0
40
80
0
40
60
0
0
0
40
20
20
Neutral
20
0
20
0
20
0
20
20
40
0
40
40
0
Somewhat
Oppose
0
0
0
0
0
0
0
0
60
0
20
0
0
Strongly
Oppose
0
0
0
0
0
0
0
0
0
0
0
0
0
Survey Comments
Anchor Point is a small community with a voice that is blocked by Homer, Kenai, and Soldotna.
Anchor Point needs to ask itself four questions: 1) Do we want more people? 2) Why do we
want more people? 3) What type of people do we want? 4) What will these people do?
Nothing is being done to advance the business community in Anchor Point.
Clam Gulch
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
5
20% - Fishing / Seafood
20% - Information Technology
60% - Year-Round
80% - Over Three Years
Self-Employed
100% - Self Employed
Under $100,000
100% - Under $100,000
20% - Small Business Development Center
145
Respondents from Clam Gulch expect employment to be farily stable in 2010, experiencing only a slight
increase. 20% of companies in the community expect an increase, while the other 80% anticipate no
change from 2009. This very mild increase in employment is anticipated to continue over the next five
years through capital improvement projects. Only 20% of organizations expect a project in that time
frame, which will lead to 0.4 jobs per company throughout Clam Gulch.
While employment is expected to be fairly stagnant in 2010 and beyond, Clam Gulch anticipates a high
per-company increase in gross sales. 80% of respondents expect revenue increases for 2010, with half of
those respondents expecting moderate (10-25%) or large (25+%) increases. Despite these optimistic
projections, respondents from Clam Gulch are not equally as confident in the Borough and Alaska
economy for 2010. The consensus among respondents is that the Borough will have a very slightly better
2010 compared to 2009 and that Alaska will have no change between the years.
Barriers to Growth
Of the twelve communities with five or more responses, Clam Gulch faces the fewest number of
organizational barriers to growth. The national economy and health insurance are the most pressing
factors, with access to capital also being a prevalent hurdle, affecting 80% of businesses. Organizations
find little or no hindrances as a result of regulations, taxes, workers compensation insurance, or the
workforce.
Clam Gulch businesses overwhelmingly want to see their market increase, the primary improvement
desired by 60% of area businesses. Access to support services and an improved workforce are also seen
as valuable improvements for the community.
Many Clam Gulch residents believe that increased tourist traffic over the next few years is the primary
area for economic development in the area. Others hope to develop year-round industry, making Clam
Gulch a more sustainable community in the long-run. Alternative and renewable energy studies and
oil/gas exploration also interest Clam Gulch business owners.
Out of every community in the Borough, Clam Gulch is the most interested in business support services.
Market Research Assistance and Access to Capital Assistance both garnered support from 80% of
respondents. Business Planning Assistance and Computer, Internet, and Technical Assistance programs
are also desired by over half of Glam Gulch business owners.
146
Very
Somewhat
Not
Strongly
Somewhat Neutral Somewhat
Important
Important
Important Support
Support
Oppose
Alaska Gas Pipeline
60
40
0
60
20
0
20
80
20
0
40
40
20
0
80
20
0
60
20
0
20
Workforce Training
0
100
0
0
80
20
0
Pebble Mine
20
60
20
0
0
40
20
Coal Export
0
100
0
0
80
20
0
Commercial Fish
60
40
0
20
60
0
20
Sport Fishing
100
0
0
100
0
0
0
Subsistence Fishing
60
40
0
80
20
0
0
Tourism
100
0
0
100
0
0
0
20
60
20
20
80
0
0
0
80
20
60
40
0
0
60
40
0
20
80
0
0
Other projects include: Year-Round Tourism (2), Value-Added Tourism, Expansion of High-Speed Internet,
NOAA permitting for 2011 Halibut Charters
Strongly
Oppose
0
0
0
0
40
0
0
0
0
0
0
0
0
Cooper Landing
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
10
30% - Wholesale / Retail Trade
10% - Arts / Education
10% - Fishing / Seafood
40% - Year Round
Self-Employed & 1 to 5
10% - 11 to 49
40% - 1 to 5
50% - Self-Employed
$100,000 to $250,000
20% - $500,000 to $1,000,000
20% - $250,000 to $500,000
20% - $100,000 to $250,000
40% - Under $100,000
10% - Banks and Attorneys
In the immediate future, 30% of Cooper Landing respondents anticipate moderate employment
increases for 2010, with no organizations expecting a decrease in employment. This figure more than
doubles the percentage of organizations expecting to increase employment across the Borough.
However, as with most rural communities, Cooper Landing does not expect significant job growth from
capital improvements over the coming five years. All 2010 increases are described as only slight
improvements, and expected 5-year job growth is 0.5 jobs per organization in Cooper Landing. This mild
increase falls below the median for both the rural communities (1.0) and also the Borough (1.25).
147
Going hand-in-hand with the expected 2010 employment gains in Cooper Landing, the community also
expects sales to moderately improve for the coming year. 60% of respondents anticipate an increase in
gross sales in 2010, with none expecting a decline in sales. As a result, Cooper Landing is one of the
confident communities for the future of the Borough economy.
Barriers to Growth
Organizations in Cooper Landing deal with more barriers to growth than in any other community across
the Borough. 90% of organizations find the national economy, energy prices, and federal taxes to stand
in the way of growth; 80% are saddled by problems involving capital; and nearly three quarters are
affected by state and local regulations, as well as workers compensation insurance. Commercial
property costs are the least problematic obstacle in the community, and even those negatively affect
over 40% of companies in the area. In fact, Cooper Landing reports that each of the seventeen barriers
more prevalent in their community than the Borough average.
More than any other community in the Borough, Cooper Landing’s primary area of improvement is a
greater access to financing. To compare raw totals, Cooper Landing has more respondents wanting to
improve access to financing than those from Seward, Seldovia, Ninilchik, Hope, Anchor Point, and Clam
Gulch combined, despite having only one-tenth the responses as those combined communities. Access
to a larger market, improved employees and workforce, and access to business support services are also
desired improvements seen by Cooper Landing organizations.
The most popular area of economic development interest in Cooper Landing is year-round industry.
Many of the seasonal companies from Cooper Landing want to see their business expand year-round,
but are held back, in part because of high energy prices and a lack of winter infrastructure. Affordable
housing, increased tourism, and a health care facility are also widely seen as areas for growth in Cooper
Landing. Other respondents see the need for additional lodging, the renovation as old buildings, brining
in support services, and additional construction as possible areas for economic development.
The need for business support services in Cooper Landing is concentrated around two main programs,
Market Research Assistance and Computer, Internet, and Technical Assistance. No other program has
received much support in the community.
148
Very
Somewhat
Not
Strongly
Somewhat Neutral
Important
Important
Important Support
Support
Alaska Gas Pipeline
90
10
0
90
10
0
60
40
0
60
20
20
90
10
0
90
0
10
Workforce Training
40
60
0
40
40
20
Pebble Mine
50
0
50
20
0
10
Coal Export
30
50
20
30
30
40
Commercial Fish
80
20
0
20
70
10
Sport Fishing
100
0
0
100
0
0
Subsistence Fishing
80
20
0
60
40
0
Tourism
100
0
0
100
0
0
10
30
60
10
20
10
60
20
20
50
20
30
100
0
0
90
10
0
Other Projects: Cooper Landing Walkable Communities (6), Renewable Energy Studies (1)
Somewhat
Oppose
0
0
0
0
20
0
0
0
0
0
30
0
0
Strongly
Oppose
0
0
0
0
50
0
0
0
0
0
30
0
0
Survey Comments
The Cooper Landing walkable communities project would be a boon for our community, for our
economy, and would boost tourism to our town.
Affordable housing is a necessity in Cooper Landing, to attract both residents and businesses.
Homer
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Gross Sales
63
13% - Arts / Education
8% - Real Estate
6% - Construction / Maintenance
6% - Manufacturing; Non-Profit
5% - Finance / Insurance; Fishing / Seafood
3% - Engineering / Architecture; Professional Services; Transportation
2% - Government; Health Care; Information Technology; Personal Service;
75% Year-Round
1 to 5
2% - Over 100
6% - 11 to 49
5% - 6 to 10
41% - 1 to 5
46% - Self-Employed
$100,000 to $250,000
149
Startup Assistance
6% - Over $5,000,000
5% - $1,000,000 to $5,000,000
5% - $500,000 to $1,000,000
13% - $250,000 to $500,000
30% - $100,000 to $250,000
41% - Under $100,000
5% - Kenai Peninsula Economic Development District
2% - AMEP; Government; Homer Bed & Breakfast Association; Previous
Owners; Real Estate Brokers, Small Business Administration
In 2010, Homer expects slightly higher employment gains than the rest of the Borough compared to
2009. 22% of businesses expect employment gains in the coming year, and only 9% expect losses. When
compared to the Borough averages of 13% and 11% respectively, Homer sits near the top of the list of
the four largest cities for short-term employment gains. In addition, gross sales expectations in Homer
are expected to increase at the highest rate among the four largest cities of the Borough. Over 60% of
Homer companies expect sales to increase in the coming year, nearly ten percentage points higher than
Kenai, the next highest of the cities.
Respondents do not expect a gain this substantial to continue from capital improvements over the next
five years. Homer expects to add 1.4 jobs per organization by 2015. While this figure is above the
Borough community median of 1.25, it ranks last among the four largest cities of the Borough. Similarly,
Homer displays less confidence in the economy of the Borough and Alaska than many of the other cities.
51% of respondents expect the Borough economy to improve in 2010, higher than the Borough average
but lower than Kenai and Seward.
Barriers to Growth
Of the four largest cities, Homer faces the fewest barriers to organizational growth and development.
Energy prices and the national economy are the most significant and prevalent barriers in the city,
impacting 84% and 76% of businesses respectively. Access to capital, health insurance, and workers
compensation insurance also stood in the way of development, especially for smaller organizations in
the area. Compared to other communities, federal, state, and local regulations and permitting are not
hindrances to growth.
The business community of Homer sees the greatest area of improvement for Homer as a larger market,
accomplished through a number of different methods. The influx of cruise ships to Homer in the
summer of 2010 are seen as one of the greatest opportunities in the city, and also an area that
businesses are unsure how to leverage. Improved peninsula marketing also is sought to bring more
tourists down to Homer, especially as the tourist industry rebounds in the next season or two.
Peninsula-wide interaction is also an area of improvement many Homer businesses would like to see in
order to get a larger market for the city.
150
Respondents from Homer find a number of economic development opportunities in the city, most
notably tourism and the upcoming cruise ships to Homer. Educational opportunities, specifically for the
expansion of Kenai Peninsula College, are also a popular area of interest. Increased economic diversity,
through conference facilities, manufacturing, service-based companies, young professional
employment, and small business development, is also seen as an untapped opportunity in Homer.
Others would like to see alternative energy resources, local agriculture, e-businesses, and ecotourism
developed.
A number of business support services have gathered support in Homer. The most popular are
Computer, Internet, and Technical Assistance and Market Research Assistance, both attractive to 40% of
businesspeople. Business Planning Assistance and Access to Capital Assistance are each desired by
approximately a quarter of Homer businesses. Tax Preparation Assistance, Recruitment Assistance, and
Certification and Regulation Assistance have also received some support, although all three programs
float near15% interest.
Very
Somewhat
Not
Strongly
Important
Important
Important Support
Support
Oppose
Alaska Gas Pipeline
60
24
16
63
14
14
6
48
37
16
38
24
22
10
68
24
8
59
21
17
2
Workforce Training
49
48
3
52
33
14
0
Pebble Mine
32
19
49
24
5
17
6
Coal Export
24
33
43
17
16
29
13
Commercial Fish
79
21
0
57
24
14
5
Sport Fishing
84
14
2
65
22
13
0
Subsistence Fishing
46
37
17
49
21
21
6
Tourism
84
14
2
77
14
8
2
24
44
32
35
17
35
17
46
38
16
41
25
32
2
60
32
8
49
22
27
2
Other Projects: Renewable Energy Studies (8); Pratt Museum Expansion; Cruise Ships; East Harbor Expansion
(4); Gas line to Homer (2); Recycling Programs; Karen Hornaday Park Improvements; East End Road Upgrade
Strongly
Oppose
2
6
2
0
48
25
0
0
3
0
3
0
0
Survey Comments
Need to capitalize on the uniqueness and the “wow” factor of Homer.
Homer economy is nearly 100% dependent upon it Spit. The Spit is geologically unstable. We
should be developing a mainland based economy reducing our dependency on the Spit and
tourism.
Would someone please come in and make meeting/conference spaces for the Southern
Peninsula area.
151
Hope
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
6
17% - Non-Profit
67% - Year-Round
Self-Employed
100% - Self-Employed
Under $100,000
17% - $100,000 to $250,000
83% - Under $100,000
17% - Small Business Development Center; National
Organizations
Hope respondents do not expect employment to turn around in 2010 after facing declines over the past
few years. With 83% expecting no change and the remaining 17% expecting a slight decrease,
employment in the community looks bleak in the short-run. Signs are more positive when looking a few
years down the line, however. Through capital improvement projects, Hope expects to gain one
employee per organization. Since all respondents are self-employed year round (some had full-time
hires in the peak season), this is a substantial gain for the community.
Similar to employment, Hope respondents do not expect sales to change much in the coming year. 67%
expect no change at all, and, while 17% expect a moderate increase, the remaining 17% expects a
moderate decrease. Despite this, Hope is the most confident community in the Borough that had more
than five respondents to the Gap Analysis Survey. 33% of Hope respondents expect the Borough
economy and the Alaskan economy to be much better in 2010, the highest rate in the Borough. As a
result, Hope residents see the economy around them beginning to rebound and grow, while the
community itself is remaining fairly stagnant.
Barriers to Growth
By far the most consistent and significant barrier to growth in Hope is energy prices for the community.
Two-thirds of organizations found the high prices to be a significant barrier, compared to 32% across the
Borough. The high energy prices led to significant changes in the community, forcing 83% of companies
to raise their prices. In addition, 17% of companies to reduce employment as a direct result of high
energy prices. As expected, transportation linkages are one also one of the most prevalent barriers in
Hope due to their remoteness from the rest of the Borough. Health insurance, access to capital, and
worker availability also hurt businesses in Hope, but as a whole the community faces relatively few
barriers per company.
The most essential improvement for Hope respondents is getting more tourists and visitors to Hope in
whatever way possible. Some thought that peninsula marketing could assist in making Hope a
152
destination instead of an afterthought. Others believe that increased signage to Hope is necessary,
especially as you approach the Hope Highway turnoff from the Sterling Highway.
Outside of tourism, retirement facilities and service-based companies offer the most potential for
growth in Hope. Others believe that there is potential for manufacturing jobs in Hope due to the closer
distance to Anchorage. The Borough’s 21-acre land sale in Hope is seen as an excellent opportunity to
procure and develop valuable land.
Two-thirds of respondents from Hope would like to see Computer, Internet, and Technical Assistance
become available. In addition, half would find value from Market Research Assistance in, and outside of,
Hope. No other business support services gained significant levels of support.
Very
Somewhat
Not
Strongly
Important
Important
Important Support
Support
Oppose
Alaska Gas Pipeline
0
100
0
0
67
33
0
33
50
17
17
17
50
17
33
67
0
17
50
33
0
Workforce Training
67
33
0
83
0
17
0
Pebble Mine
0
0
100
0
0
0
17
Coal Export
0
67
33
0
0
50
17
Commercial Fish
50
33
17
17
33
17
0
Sport Fishing
100
0
0
83
17
0
0
Subsistence Fishing
100
0
0
100
0
0
0
Tourism
100
0
0
83
17
0
0
67
33
0
33
50
17
0
83
0
17
33
50
17
0
100
0
0
83
17
0
0
Other Projects: Renewable Energy Studies (2), Bike Path from Seward Highway to Hope, Signage at the
Seward/Hope Highway Crossroads
Strongly
Oppose
0
0
0
0
83
33
33
0
0
0
0
0
0
Kenai
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
57
14% - Non-Profit; Tourism / Hospitality
9% - Professional Services; Wholesale / Retail Trade
7% - Arts / Education; Government; Mining / Oil
5% - Construction / Maintenance; Finance / Insurance
4% - Food Services; Information Technology; Media /
Communications; Transportation
2% - Engineering / Architecture; Entertainment ; Fishing /
Seafood; Health Care; Real Estate
88% - Year-Round
1 to 5
153
Median Gross Sales
Startup Assistance
2% - Over 100
7% - 50 to 99
9% - 11 to 49
16% - 6 to 10
30% - 1 to 5
37% - Self-Employed
$100,000 to $250,000
16% - Over $5,000,000
13% - $1,000,000 to $5,000,000
9% - $500,000 to $1,000,000
7% - $250,000 to $500,000
21% - $100,000 to $250,000
33% - Under $100,000
4% - Outside Organizations
Prospects for employment in Kenai, both short and long-term, are bright. Only 5% of companies in Kenai
anticipate employment to decrease in 2010, less than half the Borough average, and 16% expect to hire
in the coming year. While that leaves the bulk of organizations remaining at their current staffing in
2010, capital improvements expect to bring a large number of jobs to the area in the next five years. The
average company in Kenai anticipates hiring nearly three employees over the next five years. This is the
second highest per company gain in the entire Borough, only behind Soldotna.
As such, it comes as no surprise that Kenai respondents are some of the most confident throughout the
Borough. Over 57% of the responses from Kenai expect the Borough economy to improve in 2010, the
highest rate of the four largest cities. These same respondents do not have nearly the same confidence
in the state of Alaska, with only 47% expecting the State economy to improve in 2010. In terms of gross
sales expectations for 2010, Kenai falls very closely in line with the rest of the Borough. 52% of
companies expect gross sales to increase, while 18% expect gross sales to decrease.
Barriers to Growth
Of the four largest cities in the Borough, Kenai faces the most barriers to growth per organization. Most
prevalent of the barriers is the national economy, impacting 79% of area businesses. More than any
other region, the Central Peninsula encounters a barrier with the workforce. The percentage of
respondents who find access to a trained workforce, job readiness of entry level workers, and worker
availability is much higher in Kenai than in the rest of the Borough (61%, 56%, and 53% in Kenai
compared to 45%, 38%, and 37% respectively throughout the Borough).
In addition, energy prices (70%), federal regulations (also 61%), and access to capital (60%) play a role in
preventing organizational growth. Energy prices are directly related to price increases in nearly half of
Kenai businesses. One-fifth reduced the availability of their services due to energy prices, and over tenpercent of organizations have reduced their employment due to energy prices. Permitting does not play
a significant role in Kenai compared to other communities in the Borough.
154
Nearly half of Kenai businesses would like to see their market increase as a primary area of
improvement. Businesses feel as if their market can increase through creation of a public transportation
system, increased collaboration between the business community and the government, and improved
internet speed and access. In addition, the remaining respondents are split on improvements toward
improving employees and the workforce, access to financing, and the creation of business support
services. In fact, Kenai finds the need for business support services more than any of the four largest
cities.
Economic development opportunities in Kenai are diverse and widespread, but most consistent is
leveraging the expected increase in tourism over the next season or two. Pro-development
opportunities are also highly supported, including oil/gas exploration, natural resource development,
preparing for development on the west side of the Inlet, and the creation of industrial parks in Kenai.
Support services, such as non-profit consulting, small business development, and technology assistance
are also seen as untapped markets. Others would like to see improved government efficiency, yearround industry, young professional development, and a resurgence of the construction industry.
Kenai is in need of business support services more than any of the other three largest cities. On average,
a business in Kenai would utilize over two support services if they are available, over a 20% increase of
any of the other largest cities. Over half of businesspeople are interested in Market Research Assistance
and Computer, Internet, and Technical Assistance. In addition, more than a fifth are interested in Access
to Capital Assistance, Certification and Regulation Assistance, Business Planning Assistance, and
Recruitment Assistance.
Very
Somewhat
Not
Strongly
Important
Important
Important Support
Support
Oppose
Alaska Gas Pipeline
84
11
5
85
6
6
4
84
14
2
83
6
11
0
89
9
2
85
6
8
2
Workforce Training
65
33
2
62
17
21
0
Pebble Mine
35
33
32
36
21
11
8
Coal Export
32
53
16
42
21
25
4
Commercial Fish
77
21
2
62
25
11
2
Sport Fishing
67
33
0
53
36
11
0
Subsistence Fishing
42
37
21
40
28
17
15
Tourism
79
21
0
76
19
6
0
28
37
35
28
11
43
8
28
53
19
28
35
28
6
42
40
18
40
28
25
6
Other Projects: Alternative Energy Sources (3); Library Expansion (2); Year-Round Industry (2); Upgrade of
Spur Highway between Kenai and Soldotna; Vocational Education; Increased Internet Speed; Decrease in
Commercial Fishing; Tourist Cruises; Process Technology; Zoning; Affordable Housing; Coal Gasification;
Kenai Peninsula College Housing; Cooper Landing Walkable Communities; Kenai Bluff Erosion Project;
Peninsula Marketing
Strongly
Oppose
0
0
0
0
25
9
0
0
0
0
9
2
2
155
Survey Comments
Not creating public sector jobs/ functions that are already served by private sector (i.e.: let
newspapers do their job and don't reinvent the wheel). I also think public funds shouldn't do
things like print visitor guides (KPTMC and the city of Kenai) let the private sector do that
instead - THAT means jobs for people!
We need continued economic diversity in the Borough. We can’t depend on just one industry.
Ninilchik
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
7
14% - Fishing / Seafood; Non-Profit
14% Year-Round
Self-Employed
43% - 1 to 5
57% - Self-Employed
Under $100,000
14% - $500,000 to $1,000,000
86% - Under $100,000
None
Employment in Ninilchik is expected to decline slightly in 2010. 29% of organizations in the community
anticipate reductions in employment, a group split between slight and severe declines. Only 14% of
organizations expect slight increases to employment. As a result, Ninilchik respondents are the least
confidence across the entire Borough, with the exception of Seldovia. Although they have slightly more
confidence in Alaska, 71% of respondents think the Borough economy will be worse in 2010 than it was
in 2009. This can also be tied to anticipated declines in gross sales for 2010 in Ninilchik. Out of every
community in the Borough, Ninilchik expects to be hurt the worst, with only 14% expecting an increase
in revenue. 57% expect a decrease, including slight, moderate, and severe declines in business.
There is some silver lining to the community, however. Capital improvement projects anticipate nearly
two new jobs per company to the community over the next five years. Of all rural communities with
multiple responses, Ninilchik expects to have the highest influx of jobs in the next five years.
Barriers to Growth
Falling in line with the short-term sales and employment expectations in Ninilchik, 100% of respondents
find the national economy to be a significant or moderate barrier to their organizational growth. Access
to capital, local regulations, permitting, energy prices, and federal taxes are detrimental to nearly threequarters of Ninilchik businesses. In addition, health insurance is found to be a barrier to nearly half of
respondents from the community. A trained workforce, job readiness of entry-level employees, and
worker availability are not a hindrance in Ninilchik compared to the rest of the Borough.
156
Energy prices increases costs to the end user in 86% of Ninilchik businesses. 14% also reduced the
availability of services, and another 14% reduced employment due to the high prices.
Ninilchik, more than any other community in the Borough aside from Seldovia, sees the access of a
larger market as the primary area of business improvement. Most also see tourism as the primary
economic development opportunity, and they find relative difficulty getting tourists to the visit Ninilchik.
Affordable housing is considered necessary in order to maintain a stable workforce in the community.
Fishing opportunities are also believed to exist in Ninilchik.
Respondents from Ninilchik are the least enthusiastic of any community for business support services.
Computer, Internet, and Technical Assistance is the only program that garners any sort of widespread
support, pulling interest from 57% of respondents.
Alaska Gas Pipeline
Workforce Training
Pebble Mine
Coal Export
Commercial Fish
Sport Fishing
Subsistence Fishing
Tourism
Very
Important
100
100
71
29
43
71
71
100
29
86
14
14
71
Somewhat
Important
0
0
29
71
43
29
29
0
43
0
29
57
29
Not
Important
0
0
0
0
14
0
0
0
29
14
57
29
0
Strongly
Support
100
43
57
14
29
57
43
100
29
100
14
14
43
Somewhat
Support
0
43
43
57
57
43
14
0
43
0
14
29
43
Neutral
0
14
0
29
0
0
43
0
0
0
43
57
17
Somewhat
Oppose
0
0
0
0
0
0
0
0
14
0
0
0
0
Strongly
Oppose
0
0
0
0
14
0
0
0
14
0
29
0
0
Seldovia
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
15
20% - Construction / Maintenance; Wholesale / Retail Trade
7% - Government; Real Estate
40% - Year Round
Self-Employed
7% - 6 to 10
13% - 1 to 5
80% - Self-Employed
Under $100,000
14% - $100,000 to $250,000
86% - Under $100,000
None
157
Employment in Seldovia in 2010 expects to be fairly stagnant, with 87% of companies not expecting any
change. The remaining 13%, however, all believe that employment will decrease this year. As such,
Seldovia is anticipating a year with major declines in gross sales across the board. 27% of Seldovia
companies expect severe declines in gross sales, and an additional 13% expect moderate declines. As a
result, Seldovia looks to be the second hardest hit community in the Borough, with only Ninilchik facing
bleaker prospects in 2010. Seldovia also has the least confidence in both the state and Borough
economy, with a mere 20% expecting the two economies to improve in 2010.
Despite this, nearly half of the companies in Seldovia anticipate a major capital improvement in the
coming five years. On average, this will bring 1.1 jobs per organization to the community. This is above
the rural community median, with only the rural communities of Kasilof, Ninilchik, and Anchor Point
anticipating more jobs created per company in that time span.
Barriers to Growth
Seldovia faces an average number of barriers for each organization, although there is a definite shift of
needs in the community. The community has little trouble with capital or employees, as only 7% found
each to be a barrier to growth. Property costs, health insurance, and permitting are also found to be
relatively insignificant to Seldovia businesses. The two most prevalent barriers to growth, perhaps
unsurprisingly, are the national economy and transportation linkages, each affecting 73% of
respondents. Energy prices and energy supply are also fairly significant and prevalent barriers in the
area. Increased prices are a direct result of high energy costs for 60% of Seldovia businesses.
Seldovia’s main concerns all center on getting visitors to Seldovia and keeping them there for an
extended period of time. Access to a larger market is seen as the area of biggest improvement for 80%
of organizations in the community. Many believe peninsula marketing to be part of the solution,
championing Seldovia as a destination. Internet access in Seldovia is described as ‘hit-or-miss’, which
causes problems for businesses that interact often with others outside of the community.
As a part of tourism, summer housing is seen as one of the biggest areas of economic development in
Seldovia. Many believe that there isn’t enough decent summer housing, causing prices to shoot up
exponentially and limiting the number of tourists to the community. Expansion to the fishing industry in
is also seen as an untapped area of economic development. Ecotourism, recreational services, green
businesses, and transportation also play a role as possible economic development projects in Seldovia.
Outside of Computer, Internet, and Technical Assistance, which interests 60% of Seldovia
businesspeople, the community has mild interest in a number of business support programs. Market
Research Assistance, Business Planning Assistance, Tax Preparation Assistance, and Access to Capital
Assistance are all seen as welcome services to the community.
158
Very
Somewhat
Not
Strongly
Somewhat
Important
Important
Important Support
Support
Alaska Gas Pipeline
80
20
0
10
5
73
27
0
9
5
100
0
0
11
4
Workforce Training
40
60
0
7
7
Pebble Mine
47
13
40
6
0
Coal Export
40
27
33
6
7
Commercial Fish
67
27
7
9
5
Sport Fishing
80
20
0
10
5
Subsistence Fishing
73
27
0
11
2
Tourism
100
0
0
14
1
27
47
27
3
5
33
60
7
6
6
40
53
7
6
8
Other Projects: Rural job creation; Fair utility pricing; Lower property taxes
Neutral
0
1
0
1
4
2
0
0
2
0
6
3
1
Somewhat
Oppose
0
0
0
0
0
0
0
0
0
0
1
0
0
Strongly
Oppose
0
0
0
0
5
0
1
0
0
0
0
0
0
Survey Comments
Seldovia will benefit from a ferry between Seldovia and Homer
Energy supply can be a big problem in Seldovia. HEA shuts off electric four or five days a year.
Seward
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Gross Sales
59
12% - Government; Professional Services
7% - Fishing / Seafood; Food Services; Transportation
2% - Arts / Education; Finance / Insurance; Health Care;
Information Technology; Personal Services; Real Estate
60% - Year-Round
Self-Employed
3% - Over 100
5% - 50 to 99
5% - 11 to 49
11% - 6 to 10
26% - 1 to 5
53% - Self Employed
Under $100,000
17% - Over $5,000,000
5% - $1,000,000 to $5,000,000
2% - $500,000 to $1,000,000
11% - $250,000 to $500,000
18% - $100,000 to $250,000
51% - Under $100,000
159
Startup Assistance
2% - Government
Seward respondents expect very stable employment in 2010. Less than 19% of companies are expecting
changes in employment, with 55% of those anticipating an increase and 45% of them anticipating a
decrease. Capital improvement projects over the next five years anticipate bringing a number of jobs to
the city, however. Nearly 1.5 jobs will be created per organization, 20% above the median for
communities across the Borough. This figure is even more encouraging when factoring the relatively
small organization size from respondents in Seward.
In addition, Seward has the most economic confidence for the Borough and state of Alaska out of any of
the four largest cities. Over 85% of Seward respondents expect the Borough economy to either get
better or remain the same in 2010 – higher than the figures from Kenai (81%), Soldotna (78%), and
Homer (67%). This trend is also prevalent when looking at state expectations, with Seward (76%) again
more confident of Soldotna (71%), Kenai (68%), and Homer (63%). Gross sales projections from Seward
are closely aligned with Borough expectations. Over 50% expect gross sales to increase in 2010, with a
shade below 20% expecting a decrease in 2010.
Barriers to Growth
While the national economy and energy prices are the most significant and prevalent barriers to growth
in Seward, local regulations and permitting also play a large role. Over a quarter of Seward businesses
find local regulations to be a significant barrier to growth, easily the highest of the four largest cities of
Kenai (9%), Soldotna (4%), and Homer (2%). Many business owners found local regulations to be
burdensome not only to their own organizations, but also to tourists. In addition, nearly three-quarters
of in-face interviewees mentioned that the city needs to be more supportive of local entrepreneurs.
High energy prices hurt Seward businesses more than many communities throughout the Borough. Over
two-thirds of companies had to increase prices due to the high energy costs. Over a quarter had to cut
availability of services, and one-in-eight had to decrease employment.
The majority of Seward organizations want to see a larger market in the area – through increased
tourism, leveraging the city’s uniqueness, and year-round industry. Another area of improvement,
especially for private enterprise, is the political-business climate of the community. Many businesses
feel as if the city is not doing all it can to support private entrepreneurs and industry; instead spending
their focus on government and city projects. Other businesses want to see increased interaction
throughout the Borough, better marketing efforts, and to improve their internal operating efficiency.
Opportunities in Seward are aplenty, according to the business community. The anticipated rebound in
tourism over the next year or two will be a huge benefit to companies that are able to stay in operation.
In addition, many believe that Seward’s ice-free port should be utilized even more than it is now. As the
northernmost ice-free port in the United States, there is high potential to create and support year-round
jobs surrounding the port facilities. Small business development, service-based companies, better
160
internet services, and an increased presence of Kenai Peninsula College in Seward are also widely
appealing. Many respondents also believe that affordable housing is a necessity in Seward.
Nearly 15% of Seward respondents believe that their greatest need for improvement is access to
stronger business support services. While no one service is in extreme demand, a number of programs
are desired by over 15% of the population. Computer, Internet, and Technical Assistance and Market
Research Assistance are supported by more than one-third of businesspeople. Access to Capital
Assistance, Certification & Regulation Assistance, Business Planning Assistance, and Tax Preparation
Assistance are also desired by around one-fifth of Seward.
Very
Somewhat
Not
Strongly
Important
Important
Important Support
Support
Oppose
Alaska Gas Pipeline
63
32
5
69
17
8
5
61
34
5
59
24
15
0
63
36
2
61
25
14
0
Workforce Training
61
34
5
63
29
8
0
Pebble Mine
32
27
39
22
24
14
15
Coal Export
59
36
5
59
24
10
5
Commercial Fish
78
22
0
75
19
5
2
Sport Fishing
86
14
0
75
19
5
2
Subsistence Fishing
39
39
22
47
20
24
7
Tourism
93
7
0
88
8
3
0
25
42
32
31
24
32
7
39
47
12
42
34
22
2
73
20
7
63
27
7
2
Other Projects: Alternative Energy Resources (2); Railroad expansion (4); Seward small boat harbor; Schools
(2); Paving roads; Seward Port Development; Seward Bridge Reconstruction; Improved internet access (2);
Affordable housing; Economic Diversity; Flood mitigation (2); Pratt Museum expansion; Village safe water
approval; Lowell Point: Roads, Water, Electrical Upgrade (3); Keeping up with Port Mackenzie (2)
Strongly
Oppose
0
2
0
0
25
2
0
0
2
0
7
0
2
Survey Comments
No capital available for small businesses in Seward.
Seward needs a small boat harbor to accommodate recreational users.
Concerned with Port MacKenzie, it would take a lot of business away from Seward.
Seward post-secondary education is needed. KPC campus in Seward is currently geared primarily
toward adult education. Distance learning is not a replacement for hands-on education.
More private enterprise instead of government projects in Seward. Everyone is living around the
castle, feel like we’re being taxed on the outside looking in.
Better working relationships with the harbor, make it more friendly to both personal and
commercial interests
161
Soldotna
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
85
14% - Real Estate
12% - Professional Services
7% - Finance / Insurance; Non-Profit
6% - Personal Services; Wholesale / Retail Trade
5% - Transportation
4% - Arts / Education; Construction / Maintenance; Government;
Media / Communications; Utilities
1% - Entertainment; Health Care; Refuse Hauling; Rental
Properties
88% - Year-Round
1 to 5
2% - Over 100
2% - 50 to 99
15% - 11 to 49
12% - 6 to 10
47% - 1 to 5
21% - Self-Employed
$250,000 to $500,000
8% - Over $5,000,000
20% - $1,000,000 to $5,000,000
20% - $500,000 to $1,000,000
14% - $250,000 to $500,000
17% - $100,000 to $250,000
20% - Under $100,000
2% - Small Business Administration; Banks
2010 employment does not expect to change significantly in Soldotna, with 73% of companies not
anticipating any change in employment. The remaining 27% of respondents are split nearly evenly
between gains and losses in employment for the coming year. However, over the next five years
Soldotna companies expect a large increase in employment due to capital improvement projects.
Multiple organizations expect to increase employment by at least a dozen, and the average percompany employment gain over the next five years in Soldotna is over eight full-time positions per
company. This massive increase is nearly three times the gain from the next closest city, Kenai.
Despite this future gain, gross sales for 2010 in Soldotna are expected to increase only very slightly. Over
27% of Soldotna companies expect sales to decline in 2010, a figure greater than Kenai (18%), Homer
(19%), and Seward (also 19%). Economic confidence in Soldotna for the Borough is also the lowest out of
162
the four largest cities. A mere 43% believe the Borough economy will improve in 2010, about ten
percentage points below the other three cities on average.
Barriers to Growth
The national economy, health insurance, and energy prices are the three most disruptive factors to
Soldotna, as each is a significant barrier to more than a fifth of local businesses. High energy prices have
increased prices in 38% of Soldotna businesses. Employment cuts due to high energy prices, 14% of
respondents, are the highest among the four largest cities. Soldotna businesses also complain of
workforce issues, and access to a trained workforce, entry-level job readiness, and worker availability
are more significant barriers in Soldotna than they are in the rest of the Borough. Taxes, regulations, and
permitting are not as much of a factor in the operation of Soldotna businesses as they are throughout
the rest of the Borough.
Unlike many other communities on the Peninsula, the majority of Soldotna businesspeople do not think
access to a larger market is their biggest business improvement. More than any other of the four largest
cities, Soldotna respondents would like to improve employees and the workforce and also need greater
access to financing. Peninsula marketing is also seen as an area of improvement, as many respondents
feel like they are losing customers to Homer, Seward, and Cooper Landing.
An improved economy is universally seen as one of the largest opportunities in Soldotna. The city hopes
to see rises in tourism, oil and gas exploration, and natural resource development. Population growth,
tied with service-based companies, local consulting, and recreational services, is believed to bring more
year-round opportunities to the area. Local agriculture, ecotourism, and alternative energy sources
hope to turn Soldotna into a more sustainable city. Education opportunities, both vocational education
and post-secondary education through Kenai Peninsula College, are also areas for growth in Soldotna.
Very
Somewhat
Not
Strongly
Important
Important
Important Support
Support
Oppose
Alaska Gas Pipeline
70
11
3
82
10
7
1
75
5
4
82
10
6
2
74
9
1
77
16
6
1
Workforce Training
50
34
0
58
28
13
0
Pebble Mine
43
24
17
37
23
16
13
Coal Export
38
37
8
45
22
24
5
Commercial Fish
53
28
3
52
30
7
6
Sport Fishing
67
17
0
60
33
6
1
Subsistence Fishing
27
32
25
23
33
29
9
Tourism
72
12
0
79
16
5
0
19
44
20
27
38
28
6
23
36
22
27
29
44
0
43
37
1
48
33
15
5
Other Projects: Renewable Energy Studies (4); Kenai Peninsula College student housing (3); Bridge across
Kenai River to Funny River Road (2); Realignment of Funny River Road; Improved internet access;
Development of a technical education center; Construction projects; Slower development; Community
outreach programs; Soldotna Airport expansion; Soldotna Library expansion; Paving roads; Kustatan Ridge
land sales; Fixing the zoning
Strongly
Oppose
0
0
0
0
11
4
4
0
6
0
1
0
0
163
Survey Comments
Need a conference facility that can accommodate small to medium size conferences on a year
round basis. Not the Sports Center.
Sterling
Community Profile
Number of Responses
Industry Breakdown
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
7
14% - Real Estate; Professional Services
86% - Year-Round
Self-Employed
43% - 1 to 5
57% - Self-Employed
$100,000 to $250,000
14% - $1,000,000 to $5,000,000
14% - $250,000 to $500,000
57% - $100,000 to $250,000
14% - Under $100,000
None
Sterling is not expected to face major employment changes in 2010. 86% of companies do not anticipate
any change, although the remaining 14% expect a modest decline in employment. More concerning is
the lack of long-term employment in Sterling. On average, only 0.3 jobs per organization will be created
in the community. Of all the communities with at least five respondents, Sterling expected to create the
fewest jobs over the next five years from capital improvements.
Gross sales are expected to increase in Sterling, but the community will face some instability. 14% of
companies expect a moderate increase, 43% expect a slight increase, and another 14% expect a severe
decline in gross sales. In terms of economic confidence, Sterling is one of the most optimistic
communities in the Borough. 86% of the respondents believe that the Borough will either improve or
remain the same in 2010, a figure only surpassed by Anchor Point, Moose Pass, and Nikiski.
Barriers to Growth
Respondents from Sterling are very uniform when communicating their barriers to growth. Federal and
location regulations, in addition to the national economy and energy prices, are the most prevalent and
significant barriers in the area. Permitting, access to capital, and workers compensation assistance are
also detrimental factors to area organizations. Regulatory hurdles are often aimed at the Department of
Transportation and Borough zoning. Many respondents have faced trouble getting access onto the
Sterling Highway for their business, and some mention that the zoning in the community makes little
sense. Workforce issues are not a concern, as very few found entry-level job readiness, access to a
trained workforce, or worker availability to be an issue.
164
Sterling respondents are nearly split when asked for their main area of improvement. 57% would
improve the size of the Sterling market, and 43% would improve access to financing. The financing
percentage is second highest in the Borough behind only Cooper Landing. Driveway access to the
Sterling Highway is also a pressing concern for a number of businesses.
Tourism is seen as the largest opportunity for economic development in Sterling. The community also
believes it could see gains with oil and gas exploration and through residential and commercial real
estate. 86% of Sterling businesspeople have the need for Computer, Internet, and Technical Assistance –
nearly twenty percentage points higher than any other community in the Borough. Over half would
utilize Market Research Assistance if available, and over a quarter would also be interested in Business
Planning Assistance and Tax Preparation Assistance.
Very
Somewhat
Not
Strongly
Somewhat Neutral
Important
Important
Important Support
Support
Alaska Gas Pipeline
43
43
14
86
14
0
86
14
0
86
0
14
43
43
14
43
43
14
Workforce Training
43
43
14
29
57
14
Pebble Mine
57
14
29
43
0
29
Coal Export
43
43
14
43
29
14
Commercial Fish
71
14
14
29
29
29
Sport Fishing
100
0
0
100
0
0
Subsistence Fishing
86
14
0
43
14
29
Tourism
100
0
0
86
14
0
43
43
14
43
14
29
71
14
14
29
14
43
86
14
0
71
29
0
Other Projects: Access to the Sterling Highway; DOT needs to listen to needs of residents
Somewhat
Oppose
0
0
0
0
0
0
0
0
14
0
14
14
0
Strongly
Oppose
0
0
0
0
29
14
14
0
0
0
0
0
0
165
Section VIII: Breakdown by Industry
Arts / Education
Respondent Profile
Number of Responses
Geographic Breakdown
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
21
38% - Homer
29% - Soldotna
19% - Kenai
5% - Seward; Cooper Landing; Outside Borough
95% - Year-Round
1 to 5
10% - Over 100
5% - 50 to 99
10% - 11 to 49
14% - 6 to 10
38% - 1 to 5
24% - Self-Employed
$100,000 to $250,000
5% - Over $5,000,000
14% - $1,000,000 to $5,000,000
10% - $500,000 to $1,000,000
14% - $250,000 to $500,000
29% - $100,000 to $250,000
29% - Under $100,000
5% - Small Business Administration
Employment is expected to be fairly stable with a very small gain in 2010 in Arts / Education. 19% of
organizations are expecting an increase in employees – half with a 0-10% increase and the other half
with an increase above 10%. At the same time, 10% of organizations are also expecting to decrease
employment slightly.
Compared to the rest of the Borough, the Arts / Education industry is expected to perform better than
the Borough averages in respect to 2010 gross sales. 62% of organizations expect increases gross sales in
2010 when compared to 2009, while 51% expect increases across the Peninsula. In addition, sales
figures are expected to decrease for only 10% of the industry, whereas 22% of Borough organizations
expect sales to decline in 2010.
57% of industry companies expected to complete a significant capital improvement project in the
coming five years. As a result, Arts / Education companies expect to create an average of over six
employees per organization. This rate is one of the highest across the entire Borough.
Unlike the majority of the Borough, those in Arts / Education believe that the State will outperform the
Borough in 2010. Only 43% believe the Borough’s economy will improve in 2010 (49% Borough average),
166
and 57% believe Alaska’s economy will improve in 2010 (48% Borough average). Fewer respondents
expect declines in the economy for both the Borough and state, with only 19% believing the Borough
and State economy would worsen in 2010 compared to 2009, in contrast to 24% and 31% respectively
throughout the Borough.
Barriers to Growth
The Arts / Education industry faces nearly the same number of barriers to growth as the Borough
average, although certain barriers are hold different levels of significance. The national economy rates
as the most common barrier to growth, however access to capital effects the industry at a much higher
rate than the rest of the Borough, (75% of industry organizations compared to 48% across the
Peninsula). Health Insurance, Energy Prices, and Access to a Trained Workforce round out the five most
significant barriers to growth. Unlike other organizations throughout the Borough, federal, state, and
local regulations and taxes are not found to be nearly as significant barriers for these companies.
Improvements and Services
Arts / Education organizations have needs from the rest of the Borough when looking for the most
necessary business improvements. For the Borough, respondents believe that a larger market is the
biggest area for improvement, nearly threefold over any other improvement. Arts/Education
respondents, however, believe that access to financing is the greatest area for improvements, as it is
desired for 38% of respondents. Access to a larger market is also a pressing concern, as 33% of
respondents believe it is a primary area of improvement.
Respondents also feel the need for more industry support services. Nearly three-quarters of
respondents in the desire Computer, Internet, and Technical Assistance, compared to 45% Boroughwide. Similarly, 62% wish to see Market Research Assistance, 52% Access to Capital Assistance, 43%
Business Planning Assistance, 29% Tax Preparation Assistance, and 19% Recruitment Assistance
(respectively 45%, 27%, 20%, 16%, and 15% across the Borough).
Construction / Maintenance
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
13
31% - Homer
23% - Kenai; Soldotna; Hope
92% Year-Round
1 to 5
8% - 11 to 49
23% - 6 to 10
46% - 1 to 5
23% - 6 to 10
$250,000 to $500,000
167
Startup Assistance
38% - $1,000,000 to $5,000,000
8% - $500,000 to $1,000,000
15% - $250,000 to $500,000
8% - $100,000 to $250,000
31% - Under $100,000
None
While employment is expected to fluctuate more than average in the Construction / Maintenance
industry, there will likely be little overall change in 2010. Nearly half expect of industry organizations
employment to vary in 2010; however these organizations are split evenly between increases in
employment and decreases in employment. Looking a little further down the road, Construction /
Maintenance organizations expect to create a significant number of jobs through capital improvements
over the next five years. 62% of organizations are expecting these improvements, and all of those
organizations are expecting to bring in jobs. One organization expects to create 350 jobs in the next five
years, obviously having a large influence over these industry statistics. The overall five-year average of
jobs created in the industry is 29 jobs per company, although that number falls to 3 jobs per company
when removing the organization expecting such massive growth.
Gross Sales changes in 2010 for the industry are expected to fall in line very closely with the rest of the
Borough, with 54% expecting an improvement and only 15% expecting a decline in gross sales. Likewise,
respondents from the Construction / Maintenance industry are very closely aligned with the Borough
average in regards to expectations for 2010 Borough and State economic performance.
Barriers to Growth
When compared to the rest of the Borough, organizations in the Construction/Maintenance industry
face a higher number of barriers to growth and development. There also is a shift in barriers; for
example access to capital is one of the five largest barriers across the Borough, but falls 15th on the list
for Construction / Maintenance companies. Conversely, transportation linkages hurt 77% of industry
organizations, but only 31% of organizations across the entire Borough. In addition, regulations –
federal, state, and local – are a much higher hindrance compared to the rest of the Borough. The five
most prevalent barriers to growth for the Construction/Maintenance industry are the national economy,
federal regulations, energy prices, worker’s compensation insurance, and federal taxes.
Respondents from the Construction/Maintenance industry are split when asked to determine their
greatest area of improvement. Access to a larger market, business support services, and improved
employees and workforce all garnered nearly an equal share of responses. Compared to the rest of the
Borough, respondents found a much greater need for both the support services and an improved
workforce.
When asked about business support services specifically, companies are aligned extremely closely with
the Borough in terms of what services are most desired. Market Research Assistance and Computer,
Internet, and Technical Assistance both gathered support from approximately half the respondents, with
168
a quarter of seeking Business Planning Assistance, Tax Preparation Assistance, Access to Capital
Assistance, Certification and Regulation Assistance, and Procurement Assistance. The Construction /
Maintenance industry diverges from the rest of the Borough when seeking Procurement Assistance –
desired by a quarter of organizations in the industry despite for only one-in-twenty Borough
organizations. Recruiting Assistance is which is not seen as a need for any Construction / Maintenance
organizations despite being desired by 15% of Borough organizations.
Finance / Insurance
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
13
46% - Soldotna
23% - Homer; Kenai
8% - Seward
100% Year-Round
11 to 49
62% - 11 to 49
23% - 6 to 10
15% - 1 to 5
Over $5,000,000
69% - Over $5,000,000
15% - $1,000,000 to $5,000,000
8% - $250,000 to $500,000
8% - $100,000 to $250,000
None
Employment gains, both in the short-term and long-term, are not expected in the Finance / Insurance
industry. All 13 respondents expect no change in their 2010 employment compared to 2009, and this
remains true when looking at five-year projections from job growth due to capital improvements. Only
one respondent expects a significant capital improvement, and no jobs are expected to be created
across the entire industry.
When looking at expected sales changes in 2010, the Finance/Insurance industry is expected to perform
extremely well. 85% of organizations expect sales to increase in the coming year, and no organizations
expect sales to decrease. This data far surpasses the Borough 2010 gross sales expectations, which
expects 51% of organizations to increase sales and 22% to decline in sales.
Barriers to Growth
As expected from the Finance/Insurance industry’s strong expectations for sales growth, the industry
faces slightly fewer barriers when compared to the rest of the Borough. There also is a significant shift in
barriers when looking at the industry. Health insurance, worker’s compensation insurance, and access to
capital are all virtually non-existent despite being fairly pressing barriers throughout the rest of the
Borough. Energy prices, which are easily one of the two most pressing concerns across the Borough,
169
only make a mild dent in the Finance/Insurance industry. Instead, access to a trained workforce and job
readiness of entry-level workers are much more significant barriers in the industry than they are in the
rest of the Borough. Federal regulations and the national economy are the two most significant barriers
to growth, and state regulations round out the five biggest barriers.
Falling in line with the Finance/Insurance industry’s barriers, when asked what could be improved with
their organization, a staggering 62% of respondents answer improving the employees and workforce,
compared to only 17% throughout the Borough. A small group also would like to improve Business
support services and have access to a larger market, but trained and entry-level employees are the focus
for the industry.
As part of generally large national organizations, respondents from the Finance / Insurance industry do
not feel a pressing need for any business support services. The only two programs that received any
attention are Market Research Assistance (38% interest) and Recruitment Assistance (31% interest).
Fishing / Seafood
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
12
33% - Seward
25% - Homer
17% - Kenai
8% - Clam Gulch; Cooper Landing; Ninilchik
17% Year-Round
Self-Employed
8% - 11 to 49
8% - 6 to 10
25% - 1 to 5
58% - Self-Employed
$100,000 to $250,000 and Under $100,000
8% - $1,000,000 to $5,000,000
8% - $500,000 to $1,000,000
17% - $250,000 to $500,000
17% - $100,000 to $250,000
50% - Under $100,000
The Fishing/Seafood industry expects to have one of the largest percentage employment gains in 2010
compared to the rest of the Borough industries. 42% of organizations in Fishing/Seafood expect to hire
in 2010, with two expecting to increase employment by over 10%. No organizations expect employment
to decline in 2010. This growth is not expected to be maintained in the long-run by capital
improvements, however, as only two organizations are expecting a total of seven hires over the next
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five-years. Much of this difference can be contributed to the seasonality of these companies, which
makes it harder to project long-term employment.
Going hand-in-hand with employment, gross sales are also expected to significantly increase in the
Fishing / Seafood industry in 2010. Despite a reported decline in fish runs for the 2010 season by Fish
and Game, 83% of organizations expect sales to increase, with 30% of those expecting increases of over
10%. Only one organization expects a decline in gross sales, and it is a mild decline less than 10% at that.
As a result, the Fishing/Seafood industry is expected to encounter one of the biggest increases of any
industry in the Borough.
Barriers to Growth
Organizations in the Fishing/Seafood industry face some of the most stringent barriers across the
Borough. Permitting and Energy Prices stand in the way of growth for most organization, with 83% of
organizations deeming them each a significant barrier. Federal regulations also cause holdups, with 92%
considering them either a severe or moderate barrier. Local regulations, state regulations, and federal
taxes also are considered major hindrances to growth in the Fishing/Seafood industry. Health insurance
and access to capital, two barriers that are fairly consistent across Borough businesses, are not a major
concern for the industry.
The most common improvement for Fishing/Seafood organizations is access to a larger market,
accounting for 50% of the respondents. Improved business support services are also a fairly large factor,
with one-third of organizations wanting to specifically see changes with what is offered to them.
Overall, Fishing/Seafood companies had interest in three main services: Computer, Internet, and
Technical Assistance (50%), Certification and Regulation Assistance (42%), and Access to Capital
Assistance (42%). There is little need seen for Market Research Assistance (17%), despite nearly half the
Borough organizations showing interest in it. The Fishing/Seafood industry also showed below average
interest in Business Planning Assistance (17%), Tax Preparation Assistance (17%), and Recruitment
Assistance (8%).
Food Services
Respondent Profile
Number of Responses
Seasonality
Age of Business
7
57% - Seward
29% - Kenai
14% - Outside the Borough
57% Year-Round
1 to 5
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Median Gross Sales
Startup Assistance
14% - 50 to 99
14% - 11 to 49
29% - 1 to 5
43% - Self-Employed
Under $100,000
14% - Over $5,000,000
29% - $250,000 to $500,000
57% - Under $100,000
None
Employment is not expected to change much in the Food Services industry during 2010. The majority of
companies expect to see no change in employment, with only one expecting and increase and another
expecting a decline. The industry does not expect many jobs to be created from capital improvements
over the next five years, either. 57% of organizations expect improvements, but less than a job per
company is expected to be created.
Gross sales projections for 2010 greatly vary across Food Services companies. 43% expect an increase of
sales, and 29% expect sales to decline. This inconsistency is not affected by size of business or
geography, as companies in Seward and Kenai are expecting both increases and declines, respectively. In
addition, the level of change also varies greatly. The increases expected are split evenly among 0-10%
increases, 10-25% increases, and 25+% increases, and the declines are split between 0-10% declines and
10-25% declines.
Barriers to Growth
The Food Services industry faces some of the s barriers out of all the industries in the Borough.
Unanimously, every single respondent in the industry determined that Energy Prices are a significant
factor to their business growth and development. Local regulations, the national economy, and health
insurance also are growth-limiting factors for Food Services organizations. The industry does not see
much hurdle in terms of having available workers, but does run into issues when looking at the job
readiness of entry-level workers and also at a trained workforce.
The improvement that Food Services organizations would most like to see is Access to a Larger Market,
representing 71% of the industry. An additional 29% of organizations would like to see an improvement
to employees and the workforce.
There is a uniform and wide-scale interest for support services in the Food Services industry. Business
Planning Assistance and Certification and Regulation Assistance are the two most sought after programs,
with 57% of respondents being interested in each respective program. In addition, nearly half of
respondents are interested in Procurement Assistance, Market Research Assistance, and Recruitment
Assistance.
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Government
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
16
44% - Seward
25% - Kenai
19% - Soldotna
6% - Homer; Seldovia
94% Year-Round
11 to 49 and 6 to 10
13% - Over 100
25% - 50 to 99
13% - 11 to 49
31% - 6 to 10
13% - 1 to 5
6% - Self-Employed
$100,000 to $250,000
33% - Over $5,000,000
13% - $1,000,000 to $5,000,000
27% - $100,000 to $250,000
27% - Under $100,000
Respondents working in Government organizations (cities, government contractors, government
associations) expect employment to increase at a faster rate in 2010 compared to the rest of the
Borough. 50% of organizations are expecting to increase employees, with about 13% expecting a
decrease in employment, compared to only 13% expecting an increase and 11% expecting a decrease
across the Borough. While the relative increases in employment are modest (less than 10%), the number
of jobs gained should be fairly significant due to the size of these organizations.
Furthermore, significant job growth in Government organizations is expected from capital improvement
projects over the coming five years. Of the sixteen respondents, nine expected capital improvement
projects creating a total of 340 jobs in the next five years, an average of over 21 jobs per organization.
Much of that figure consists of three organizations that are each expecting to create at least 50 jobs
over the next five years.
Gross sales, or in some cases gross budget, for the industry are expected to be slightly more pessimistic
than the Borough average in 2010. Only 43% of organizations expected to increase gross sales in 2010,
compared to 51% across the Borough, with a greater percentage expecting no change in gross sales
(38% in Government organizations vs. 27% in the Borough).
Barriers to Growth
On average, Government organizations face significantly fewer barriers to growth, about 25% fewer
than other Borough industries. The national economy is the most significant and common barrier by a
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wide margin, affecting 81% of respondents. Permitting, federal regulations, and state regulations also
posed barriers, although not to the same extent as the economy. Energy prices, health insurance, and
access to capital, and taxes are significantly less of a hindrance than they are to the rest of the Borough.
Given the diversity of the Government respondents, a variety of improvements are desired for
organizational improvement. Most common is access to financing, accounting for 31% of responses.
Operating Efficiency, a write-in answer, is the second most common response. Other answers, each
garnering one vote, are access to a larger market, improved business support services, improved
internet access, improved Borough marketing, and increased interaction throughout the Borough.
Generally, Government organizations are not interested in support services offered. The biggest need is
for Computer, Internet, and Technical Assistance, which interested 31% of respondents. No other
support service receives over 20% support.
Information Technology
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
5
40% - Kenai
20% - Clam Gulch; Homer; Seward
100% Year-Round
Self-Employed
40% - 1 to 5
60% - Self-Employed
Under $100,000
100% - Under $100,000
Employment is expected to slightly increase in the Information Technology industry in 2010, with two of
the five respondents increasing employment. Over the next five years, only 20% of industry
organizations expect to make capital improvements, leading to around one job per company in the field.
Sales growth in 2010 for the Information Technology field expects to align closely with the rest of the
Borough. 60% of respondents expect an increase in sales, with the remaining 40% split between no
change and a decrease in gross sales.
Barriers to Growth
The three most common and significant barriers to the Information Technology industry are the cost of
commercial/rental property, job readiness of entry-level workers, and health insurance, each finding to
be a barrier to 80% of respondents. Workers compensation insurance and access to a trained workforce
also are found to be somewhat prevalent barriers throughout the industry. Some causes for concern
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across the Borough, specifically energy prices, federal regulations, and federal taxes, are not seen to be
an issue for Information Technology companies.
The most consistent upgrade chosen for Information Technology organizations is to improve the
employees and workforce, selected by 60% of respondents. Access to a larger market and improved
business support services also received consideration.
Respondents from the Information Technology field are fairly open to business support services,
specifically Certification and Regulation Assistance (60%), Access to Capital Assistance (60%),
Recruitment Assistance, Business Planning Assistance (40%), and Market Research Assistance (40%).
Media / Communications
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
5
60% - Soldotna
40% - Kenai
100% Year-Round
1 to 5
20% - 6 to 10
60% - 1 to 5
20% - Self-Employed
Under $100,000
33% - $1,000,000 to $5,000,000
67% - Under $100,000
20% - Small Business Administration
There is little employment change expected in the Media / Communications industry for 2010, with only
20% anticipating a slight change. 40% of companies are anticipating five-year capital improvement
projects, but no jobs are expected to be created from the projects. When looking at changes in gross
sales, Media / Communications respondents are bleaker than the rest of the Borough. Only 20% of
respondents expected sales to increase, and 40% expected gross sales to decrease in 2010.
Barriers to Growth
The Media/Communications industry faces fewer barriers to development and growth than most
industries in the Borough. The most prevalent barrier is access to capital, affecting 80% of the field. The
national economy, health insurance, worker availability, access to a trained workforce, and cost of
commercial/rental property also pose threats, but are generally found not to be extremely significant.
The most common areas of improvement for the companies in the Media/Communications field are
access to financing and improving the employees and workforce, each cited by 40% of the respondents.
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Access to a larger market, greater community interest, and improved marketing efforts also received
consideration for the area of greatest need.
Only two support service programs are of any interest, Computer, Internet, and Technical Assistance
and Market Research Assistance. However, both of these programs are received favorably by 80% of the
respondents, far greater than the 45% figure across the Borough.
Non-Profit
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales or Budge
Gross Sales or Budget Breakdown
Startup Assistance
20
40% - Kenai
30% - Soldotna
20% - Homer
5% - Hope; Ninilchik
95% Year-Round
1 to 5
5% - 11 to 49
10% - 6 to 10
75% - 1 to 5
10% - Self-Employed
$100,000 to $250,000
5% - Over $5,000,000
20% - $500,000 to $1,000,000
10% - $250,000 to $500,000
25% - $100,000 to $250,000
40% - Under $100,000
10% - Outside organizations
Employment is expected to increase in 2010, with 10% of the organizations expecting a slight increase,
10% expecting a fairly significant increase in employment, and only 5% expecting a slight decline in
employment. As a result, Non-Profits are one of the better organizations for short-term employment
gains. This trend is expected to continue over the next five years through capital improvements,
although at a slightly slower pace. The Non-Profit respondents expected to create about 35 jobs over
the next five years, and average increase of nearly two employees per organization.
A similar development can also been seen when looking at 2010 gross sales expectations in the NonProfit industry. 40% of the Non-Profits expect to increase sales or their budget in the coming year. While
this number is slightly below the Borough average, multiple organizations expect gross sales or budget
increases above 25%.Only three-of-twenty of Non-Profits expect sales to decrease in 2010, and all
expect only slight declines.
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Barriers to Growth
Non-Profit respondents, on average, face fewer barriers to growth than other respondents throughout
the Borough; however their barriers tend to have a higher significance. For example, 35% of Non-Profits
find access to capital a significant hindrance, whereas only 17% throughout the Borough does. The same
can be said for health insurance, access to a trained workforce, and worker availability. Both the
national economy and energy prices are common among Non-Profits, but few considered their impact
to be significant. As would be expected from Non-Profits, federal, state, and local regulations and taxes
are rather insignificant barriers to growth.
The most common improvement needed for Non-Profits is access to financing, listed by 40% of
respondents, more than double the Borough average of 17%. Access to a larger market, improved
business support services, improved employees and workforce, and volunteerism also are listed as areas
of improvement.
Non-Profits are generally more open to business support services than the rest of the Borough, however
their needs are shifted. Computer, Internet, and Technical Assistance is supported by 70% of
respondents, and 40% of respondents supported Recruitment Assistance. Both of these figures are well
above the Borough average of 45% and 15%, respectively. Market Research Assistance (40%), Access to
Capital Assistance (30%), and Business Planning Assistance (25%) also piqued interest among NonProfits.
Personal Services
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
7
71% - Soldotna
14% - Homer; Seward
100% Year-Round
1 to 5
14% - 6 to 10
57% - 1 to 5
29% - Self-Employed
$100,000 to $250,000
14% - $500,000 to $1,000,000
14% - $250,000 to $500,000
57% - $100,000 to $250,000
14% - Under $100,000
As a collective group, 2010 is expected to bring little employment change in the Personal Services
industry. Two organizations (29%) foresee increases to employment, but one expects a decrease in
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employment. In the coming five years, capital improvement projects expect to bring an average of one
employee per organization to the Personal Services field.
While employment is facing little change in 2010, gross sales are expected to increase significantly. 71%
expect sales to increase in 2010, with 60% of those organizations expecting increases between 10-25%,
and another 20% on top of that expecting increases above 25%. No Professional Service companies
surveyed expect sales to decrease in 2010.
Barriers to Growth
Professional Services respondents do not have overwhelming barriers to organizational growth and
development. Workers compensation insurance is the most common barrier by a wide margin, affecting
86% of respondents. When asked, many mention reply that they are unable to hire additional
employees due to the financial trouble that could arise from providing Workers Comp. The national
economy, access to capital, worker availability, and access to a trained workforce are all barriers that
effect slightly over half the respondents. The highest number of respondents deem energy prices
significant barrier, but they are not extremely prevalent.
The most consistently mentioned improvements desired in Professional Services organizations are
access to a larger market (42%) and access to financing (29%). Improved marketing and tax cuts are also
seen as needed improvements for organizational growth.
Support services are not seen as a needed improvement, although there is somewhat widespread
interest both in Market Research Assistance (57%) and Access to Capital Assistance (42%). Business
Planning Assistance, Certification and Regulation Assistance, and Procurement Assistance receive some
minor support.
Professional Services
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
27
37% - Soldotna
26% - Seward
19% - Kenai
7% - Homer
4% - Anchor Point; Nikiski; Sterling
96% Year-Round
1 to 5
4% - 11 to 49
11% - 6 to 10
44% - 1 to 5
41% - Self-Employed
$100,000 to $250,000
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Startup Assistance
4% - Over $5,000,000
19% - $1,000,000 to $5,000,000
7% - $500,000 to $1,000,000
7% - $250,000 to $500,000
30% - $100,000 to $250,000
33% - Under $100,000
Overall, employment in the Professional Services industry is not expected to change much in 2010. 67%
of respondents expect no change in employment, 19% expect a decrease, and 15% expect an increase in
2010. The majority of these are relatively small changes of less than 10% difference. In addition, fiveyear job growth from capital improvement projects in the Professional Services industry does not
extremely promising. Only 26% of organizations anticipate capital improvement projects in the coming
five years, and the industry expects to create about 1.5 jobs per organization in that span.
Respondents from the Professional Services industry anticipate sales gains slightly better than the
average for the rest of the Borough. 56% of respondents expect sales to improve in 2010, and only 22%
expect sales to decrease, compared to Borough averages of 49% and 24% respectively. Furthermore,
increases are expected to be more significant than the rest of the Borough, with more than triple the
percentage of respondents expecting an increase in gross sales of over 25%.
Barriers to Growth
Respondents from the Professional Services industry find high energy prices to be the most significant
barrier to growth due to the relative small size and youth of the industry. The second biggest hurdles are
access to a trained workforce and worker availability; each deemed a significant barrier by over 20% of
respondents. The national economy is found to be the most prevalent barrier, hurting 89% of businesses
but with a less significant impact than energy prices and the workforce. Job readiness of entry level
workers, heath insurance, and workers compensation insurance also are found to be fairly moderate
barriers to growth. Taxes and regulations, which hurt many other organizations throughout the
Borough, are not found to be a significant or common issue across the Professional Services industry.
As a group, the Professional Services companies are closely aligned with the improvements desired by
with the rest of the Borough. Access to a larger market is the most necessary upgrade for nearly 50% of
these organizations, with access to support services and improved employees and workforce both at
nearly 20%. Access to financing does not receive consideration as the most urgent improvement;
however 37% of respondents mention they would be interested in the service if it is available. This made
Access to Financing Assistance the third most support popular program, behind Market Research
Assistance (44%) and Computer, Internet, and Technical Assistance (40%). Business Planning Assistance
and Tax Preparation Assistance receive very modest support with 15% and 11% respectively, but
interest mostly fell short after the top three.
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Real Estate
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
22
55% - Soldotna
23% - Homer
5% - Anchor Point; Kenai; Seldovia; Seward; Sterling
100% Year-Round
Self-Employed
14% - 6 to 10
32% - 1 to 5
55% - Self-Employed
$100,000 to $250,000
23% - $1,000,000 to $5,000,000
18% - $500,000 to $1,000,000
5% - $250,000 to $500,000
23% - $100,000 to $250,000
32% - Under $100,000
None
For the coming year, employment is expected to remain extremely stable in the Real Estate industry.
Only 14% of the organizations anticipate any change in employment, with the respondents expecting
and increase and decrease nearly balancing each other out. No organization expects to create jobs in the
coming five years from capital improvements.
Gross sales expectations for 2010 are very similar between the Borough and the Real Estate industry.
50% of companies expect sales to increase in the coming year, compared to 51% across the Borough.
Only 18% of respondents expect sales to continue to decline in 2010, also very close to the Borough
average of 22%.
Barriers to Growth
Out of all Borough industries, organizations in the Real Estate business find the national economy to be
a more significant and more prevalent barrier than any of them. 95% of Real Estate respondents believe
the national economy is either a moderate or significant barrier (55% found it to be a significant barrier).
Other prevalent factors in the industry include health insurance, federal taxes, job readiness of entry
level workers, federal regulations, and access to a trained workforce. The impact of these barriers,
however, pales in comparison to the effect of the national economy. Energy prices and access to capital,
obstructions for many industries, are not a factor.
Members of the Real Estate industry are generally not very open to business assistance programs.
Moderate interest exists for Computer, Internet, and Technical Assistance (59%) and Market Research
Assistance (45%), but no other program has more than 15% industry support.
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Despite this, nearly 23% of respondents believe access to business support services is the greatest area
of business improvement, more than double the average over the rest of the Borough. 41% desire
access to a larger market, 18% need improvement amongst their employees and the workforce, and
14% need to improve their technology capabilities.
Tourism / Hospitality
Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
100
24% - Seward
21% - Homer
15% - Soldotna
8% - Kenai
7% - Seldovia
5% - Cooper Landing; Hope; Ninilchik
3% - Anchor Point; Clam Gulch
2% - Sterling
1% - Kasilof, Moose Pass
34% Year-Round
Self-Employed
3% - 11 to 49
1% - 6 to 10
21% - 1 to 5
75% - Self-Employed
Under $100,000
2% - Over $5,000,000
3% - $1,000,000 to $5,000,000
6% - $500,000 to $1,000,000
8% - $250,000 to $500,000
16% - $100,000 to $250,000
65% - Under $100,000
1% - Small Business Administration; Banks; Attorneys
Organizations in the Tourism/Hospitality industry are anticipating a fairly significant decrease in
employment for 2010. While the majority, 80%, expects little change in employment, the remaining 20%
is mostly made up of organizations that expect employment to decline (70%, with half of those
anticipating declines over 10%). When asked, respondents almost unanimously believe that this decline
is due to the tourism slowdown of 2009, possible cruise ship losses, and the uncertain future of the
industry.
There is some silver lining toward the future, however, as capital improvement projects are expected to
bring some additional employment to the Tourism/Hospitality industry over the coming five years.
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Respondents expect to add 58 total jobs in the coming years, or over one job for every two
organizations. While this may seem like a very small increase, given the current expected declines in
employment, the uncertain rebound of tourism, and the small starting size of most of these companies,
this anticipated growth is a very positive sign.
When making projections about gross sales for 2010, respondents are equally hesitant to project
increases. Only 40% expected gross sales to increase in the coming year, compared to 56% across the
Borough (when factoring out Tourism / Hospitality organizations). Likewise, 36% expect declines in gross
sales this coming year, more than double the Borough expectation of 15% (when factoring out Tourism /
Hospitality organizations).
Barriers to Growth
For the Hospitality/Tourism industry, the most significant barriers to growth, without question, are the
national economy and energy prices. 55% find the national economy to be a significant barrier, as do
47% with energy prices. Compared to the weighted averages across the Borough (removing
Tourism/Hospitality responses), these figures are nearly double (31% and 26%, respectively). Without
looking toward significance, 94% of respondents found energy prices and 89% found the national
economy to be a barrier. Again, these numbers greatly eclipse the Borough weighted averages of 67%
and 78%. While nowhere near the significance or prevalence, federal taxes, energy supply, and health
insurance are also moderate barriers to growth throughout the industry. As expected from small
organizations, access to a trained workforce, job readiness of entry-level workers, and worker
availability are not a major concern.
Overwhelmingly, Tourism/Hospitality organizations want to improve the size of their market. Nearly 2/3
of respondents felt this way, and many believe the answer is in better marketing of the Peninsula.
Access to financing, improving support services, and improving employees and the workforce are also
desired by some, but by a relatively small group.
The industry is very consistent with the Borough’s interest in assistance programs. Market Research
Assistance (52%) and Computer, Internet, and Technical Assistance (47%) are the two most supported
programs. Access to Capital Assistance (27%) and Business Planning Assistance (20%) also receive mild
interest.
Transportation
Respondent Profile
Number of Responses
Seasonality
Age of Business
14
29% - Seward; Soldotna
21% - Kenai
14% - Homer
7% - Outside the Borough
100% Year-Round
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Median Gross Sales
Startup Assistance
1 to 5
14% - 50 to 99
14% - 11 to 49
14% - 6 to 10
50% - 1 to 5
7% - Self-Employed
$500,000 to $1,000,000 and $250,000 to $500,000
36% - Over $5,000,000
7% - $1,000,000 to $5,000,000
7% - $500,000 to $1,000,000
14% - $250,000 to $500,000
29% - $100,000 to $250,000
7% - Under $100,000
Overall employment statistics are expected to remain fairly stable over the coming year, although there
may be some shifts between organizations. 43% of Transportation companies expect employment to
change in 2010, although half of those are expecting slight increases and half are expecting slight
decreases. These changes are not dependent on size of business or community, as gains and losses are
seen in all varieties of business. Modest job growth through capital improvements is expected in the
coming five years. While only 36% of organizations expect such improvements, the jobs created
balances out to become nearly two jobs per company throughout the industry.
The Transportation industry anticipates gross sales for 2010 to increase at a higher rate than most other
industries throughout the Borough. 57% of organizations expect increases in gross sales, while only 7%
expect decreases in gross sales. Of the increases, 38% of the companies expect a fairly moderate gain in
gross sales between 10-25%.
Barriers to Growth
As a group, the Transportation industry faces fewer barriers to growth, and the barriers tend to hold less
significance than they do in other industries. The two most significant barriers to respondents in the
Transportation industry are federal and local regulations, although state regulations do not play a
significant role in business decisions. The national economy is the most common barrier, although the
regulations, energy prices, access to capital, and the cost of commercial/rental property are deemed to
be more significant.
Respondents from the Transportation industry are split on what improvements they would most like to
see in their business. The group is split nearly into five equal parts, of which included: access to a larger
market, access to financing, improved business support services, improved employees and workforce,
and a more receptive political business climate to entrepreneurs and business. In terms of specific
support services they would like to see, the industry is receptive to Computer, Internet, and Technical
Assistance and also Market Research Assistance. 29% of respondents also want to see Access to
Financing Assistance and Recruitment Assistance.
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Respondent Profile
Number of Responses
Seasonality
Age of Business
Median Gross Sales
Startup Assistance
23
22% - Kenai; Soldotna
13% - Seward; Cooper Landing; Seldovia; Sterling
4% - Homer
91% Year-Round
1 to 5
4% - Over 100
4% - 11 to 49
4% - 6 to 10
61% - 1 to 5
26% - Self-Employed
$250,000 to $500,000
9% - Over $5,000,000
13% - $1,000,000 to $5,000,000
9% - $500,000 to $1,000,000
26% - $250,000 to $500,000
26% - $100,000 to $250,000
17% - Under $100,000
Little change in employment is expected in 2010 for the Wholesale/Retail Trade industry. The bulk of
companies, 78%, do not expect employment to change, 9% expect a slight increase, and 13% expect a
slight decrease. In the coming five years, little is expected to change in the industry through capital
improvements. 39% of organizations anticipate a capital improvement, but only about one job per
company is expected to be created.
On the other hand, the Wholesale/Retail trade industry expects to have one of the bigger jumps in gross
sales in 2010, with 58% of companies expecting an increase. Of those expecting an increase in sales,
over 21% expect a moderate or significant increase. When asked, business owners anticipate hiring
additional part-time employees instead of full-time employees for the time being. The idea is that once
the economic climate began to turn around, full-time employees may be brought back to their
organizations based on need.
Barriers to Growth
According to the 23 respondents, the Wholesale/Retail Trade industry faces some of the biggest barriers
to growth out of any industry in the Borough. The number of barriers felt by an average organization in
the trade industry is 30% greater than the number of barriers facing the rest of the Borough. Atop that
list, by a wide margin, are the national economy, energy prices, and access to capital. 87% of
respondents find both the national economy and energy prices to be a barrier to growth, and access to
capital holds just as much significance without the widespread prevalence. In addition, transportation
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linkages, federal regulations, workers compensation insurance, federal taxes, energy supply, state
regulations, and permitting all are commonly selected as barriers to organizational growth.
Respondents from the Wholesale/Retail trade industry are split when asked to name the area of their
business they would like to see most improve. Access to a larger market garnered 43% support and
access to financing garner 39% support. There is some mild support for improving employees and the
workforce, but not at the rate of the other two services.
While not gathering any interest as a primary area of improvement, many respondents are interested in
business support services. 43% of the Wholesale/Retail Trade industry is interested in Computer,
Internet, and Technical Assistance, 39% are interested in Market Research Assistance, and 35% are
interested in Access to Capital Assistance. In addition, Business Planning Assistance and Tax Preparation
Assistance gather a fair amount of support.
185
1
U.S. Department of Commerce, Bureau of Economic Analysis. “Economic Slowdown Widespread Among States in
2008.” June 2, 2009.
2
Northrim Bank. “Alaska Economic Overview 09-10.” April 6, 2010.
3
See #2
4
Anchorage Economic Development Corporation. “AEDC 10-Year Resource Extraction Projects Projection.” 2010.
5
Bauman, Margaret. “Tourism Industry Optimistic for 2010.” Alaska Journal of Commerce: January 31, 2010.
6
Ralph Samuels. Industry Outlook Forum Speech. January 14, 2010.
7
See #2
8
Schaffer, Brielle. “Closure Tough to Tackle: Kenai River Shutdown Hurting the Local Fishing Business.” Peninsula
Clarion: June 11, 2010.
9
See #5
10
Alaska Miners Association. “The Economic Benefits of Alaska’s Mining Industry.” January 2010.
11
See #4
12
Scott Goldsmith. Industry Outlook Forum Speech. January 14, 2010.
13
See #2
14
“NWA Cargo.” http://www.answers.com/topic/northwest-airlines-corporation. June 15, 2010.
15
See #2
16
See #12
17
Manget, Sean. “Better Diversity in Schools Leads to Diverse Workplace.” Alaska Journal of Commerce: February
16, 2010.
18
See #2
19
See #12
20
See #2
21
Kenai Peninsula Borough. “Kenai Peninsula Borough Quarterly Report.” December 31, 2009.
22
Homer Chamber of Commerce. “Homer Comprehensive Economic Development Strategy 2010.”
23
See #22
24
Schaffer, Brielle. “Closure Tough to Tackle: Kenai River Shutdown Hurting the Local Fishing Business.” Peninsula
Clarion: June 11, 2010.
25
Schaffer, Brielle. “Anchor River Restricted to Catch-and-Release for Kings: Escapement Goals are Uncertain for
this Year.” Peninsula Clarion: June 10, 2010.
26
See #2
27
Kevin Banks. Speech at Industry Outlook Forum. January 14, 2010.
28
See #21
29
Alyssa Shanks. Speech at Industry Outlook Forum, January 14, 2010.
30
McDowell Group. “The Contributions of Kenai Peninsula College.” May 2009.
31
See #20
32
“Central Emergency Services.” http://www.cesfire.org/. June 15, 2009.
33
Alaska Department of Workforce and Labor. “Clam Gulch: Alaska Local and Regional Workforce Information.”
May 28, 2010.
34
Alaska Department of Workforce and Labor. “Cohoe: Alaska Local and Regional Workforce Information.” May 28,
2010.
35
Alaska Department of Workforce and Labor. “Funny River: Alaska Local and Regional Workforce Information.”
May 28, 2010.
36
Alaska Department of Workforce and Labor. “Kalifornsky: Alaska Local and Regional Workforce Information.”
May 28, 2010.
37
Alaska Department of Workforce and Labor. “Kasilof: Alaska Local and Regional Workforce Information.” May
28, 2010.
38
Alaska Department of Workforce and Labor. “Kenai: Alaska Local and Regional Workforce Information.” May 28,
2010.
39
Schaffer, Brielle. “Kenai Anticipates Hike in Sales Tax Revenue.” Peninsula Clarion: June 2, 2010.
186
40
Porter, Pat. “Continued Growth in Kenai.” City of Kenai Newsletter: Winter 2009-2010.
Jensen, Andrew. “Enstar, TransCanada gas storage deal falls apart.” Peninsula Clarion: April 21, 2010.
42
Waite, Andrew. “Wildwood to Expand: Transitional Living Quarters to House 32 Inmates.” Peninsula Clarion:
February 2, 2010.
43
“Kenai Health Center.” http://www.cpgh.org/body.cfm?id=65 . June 12, 2010.
44
Mary Jo Joiner. “Kenai Community Library.” Presentation to Kenai Chamber of Commerce: April 2010.
45
Alaska Department of Workforce and Labor. “Nikiski: Alaska Local and Regional Workforce Information.” May
28, 2010.
46
“Nikiski Community Council.” http://www.nikiskicc.com/. June 13, 2010
47
Alaska Department of Workforce and Labor. “Ridgeway: Alaska Local and Regional Workforce Information.”
May 28, 2010.
48
Alaska Department of Workforce and Labor. “Salamatof: Alaska Local and Regional Workforce Information.”
May 28, 2010.
49
“Welcome to Salamatof Native Association.” http://www.salamatof.com/. June 12, 2010.
50
Armstrong, Michael. “History Book Looks at 50 Years on the Peninsula.” Homer News: February 3, 2010.
51
Alaska Department of Workforce and Labor. “Soldotna: Alaska Local and Regional Workforce Information.” May
28, 2010.
52
Staff Report. “Skyview, SoHi to Become More Dependent.” Peninsula Clarion: February 11, 2010.
53
Petri, Dante. “Schools to Share Course Load: KPBSD Plans to Keep Skyview, Soldotna High Schools Viable.”
Peninsula Clarion: February 17, 2010.
54
Peter Micciche. Speech at Industry Outlook Forum. January 14, 2010.
55
Alaska Department of Workforce and Labor. “Sterling: Alaska Local and Regional Workforce Information.” May
28, 2010.
56
See #30
57
Alaska Department of Workforce and Labor. “Anchor Point: Alaska Local and Regional Workforce Information.”
May 28, 2010.
58
“Our Community.” http://www.anchorpointchamber.org/about.htm. June 8, 2010.
59
Alaska Department of Workforce and Labor. “Diamond Ridge: Alaska Local and Regional Workforce
Information.” May 28, 2010.
60
See #59
61
Alaska Department of Workforce and Labor. “Fox River: Alaska Local and Regional Workforce Information.” May
28, 2010.
62
Alaska Department of Workforce and Labor. “Fritz Creek: Alaska Local and Regional Workforce Information.”
May 28, 2010.
63
Alaska Department of Workforce and Labor. “Happy Valley: Alaska Local and Regional Workforce Information.”
May 28, 2010.
64
See #22
65
McDowell Group. “Economic Impact Analysis of the Pratt Museum Renovation and Expansion.” September
2009.
66
Jackinsky, McKibben. “Cruise Ship’s Visit Boosts Business for some, not all, Local Merchants.” Homer News: June
2, 2010.
67
See #65
68
See #22
69
See #22
70
See #30
71
“KPBSD Schools” http://www.kpbsd.k12.ak.us/schools.aspx. June 17, 2010.
72
See #22
73
See #65
74
Alaska Department of Workforce and Labor. “Kachemak: Alaska Local and Regional Workforce Information.”
May 28, 2010.
75
“Nanwalek Village IRA.” http://www.chugachmiut.org/tribes/nanwalek.html June 14, 2010.
41
187
76
Alaska Department of Workforce and Labor. “Nanwalek: Alaska Local and Regional Workforce Information.”
May 28, 2010.
77
Alaska Department of Workforce and Labor. “Nikolaevsk: Alaska Local and Regional Workforce Information.”
May 28, 2010.
78
Alaska Department of Workforce and Labor. “Ninilchik: Alaska Local and Regional Workforce Information.” May
28, 2010.
79
“Ninilchik Traditional Council Description.” http://www.ninilchiktribe-nsn.gov/description.html. June 13, 2010.
80
Alaska Department of Workforce and Labor. “Port Graham: Alaska Local and Regional Workforce Information.”
May 28, 2010.
81
“Port Graham Village Council.” http://www.chugachmiut.org/tribes/port_graham.html June 14, 2010.
82
“Our Heritage.” http://www.portgrahamcorp.com/heritage.html June 14, 2010.
83
Alaska Department of Workforce and Labor. “Seldovia: Alaska Local and Regional Workforce Information.” May
28, 2010.
84
Alaska Department of Workforce and Labor. “Seldovia Village: Alaska Local and Regional Workforce
85
“Qutekcak Native Tribe.” http://www.chugachmiut.org/tribes/qutekcak.html June 14, 2010.
86
See #85
87
Alaska Department of Workforce and Labor. “Bear Creek: Alaska Local and Regional Workforce Information.”
May 28, 2010.
88
Alaska Department of Workforce and Labor. “cooper Landing: Alaska Local and Regional Workforce
89
Petri, Dante. “Cooper Landing to go K-12”. Peninsula Clarion: February 3, 2010.
90
Painter, Mona. “Volunteers Help Raise Money for Cooper Landing Health Center.”
http://www.turnagaintimes.com/current%20issue/9-4-08/Cooper.html.
91
Alaska Department of Workforce and Labor. “Hope: Alaska Local and Regional Workforce Information.” May 28,
2010.
92
“Hope & Sunrise Emergency Medical Services.” www.medical.hopealaska.net. June 9, 2010.
93
Alaska Department of Workforce and Labor. “Lowell Point: Alaska Local and Regional Workforce Information.”
May 28, 2010.
94
“Lowell Point, Alaska.” http://www.lowellpointcc.org/, Last Updated: January 17, 2009.
95
Alaska Department of Workforce and Labor. “Moose Pass: Alaska Local and Regional Workforce Information.”
May 28, 2010.
96
Alaska Department of Workforce and Labor. “Seward: Alaska Local and Regional Workforce Information.” May
28, 2010.
97
See #30
98
See #85
99
John McClellan. Speech at Industry Outlook Forum. January 14, 2010.
100
Alaska Department of Workforce and Labor. “Beluga: Alaska Local and Regional Workforce Information.” May
28, 2010.
101
Alaska Department of Workforce and Labor. “Tyonek: Alaska Local and Regional Workforce Information.” May
28, 2010.
188

Kenai Peninsula Borough Comprehensive

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