HomeMy WebLinkAbout07072010 PACAB PacketPost and Commerce Advisory
Board
July 7, 2010
Council Chambers
Noon
SEWARD PORT AND COMMERCE ADVISORY BOARD
Regular Meeting
June 7, 2010, 12:OOPM COUNCIL CHAMBERS
Ron Long, Chair
Board Member
Term Expires 2011
Theresa Butts,
Board Member
Term Expires 2012
Deborah Altermatt
Board Member
Term Expires 2010
Daniel Oliver
Board Member
Term Expires 2010
Daryl Schaefermeyer
Board Member
Term Expires 2012
Robert Buck
Board Member
Term Expires 2012
Paul Tougas
Board Member
Term Expires 2011
Phillip Oates
City Manager
Kari Anderson
Harbor Master
Suzi Towsley
Executive Liaison
City of Seward, Alaska
July 7, 2010
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. SPECIAL ORDERS, PRESENTATIONS AND
REPORTS
A. ARRC Representative Louis Bencardino
B. Chamber Report -Laura Cloward, Executive Director
C. Harbormaster Report —Kari Anderson
D. Community Development Report- Christy Terry
5. Citizens' comments on any subject except those items
scheduled for public hearing. [Those who have signed in
will be given the first opportunity to speak. Time is limited
to 2 minutes per speaker and 30 minutes total time for this
agenda item.]
6. Approval of agenda and consent agenda [Approval of
Consent Agenda passes all routine items indicated by
asterisk (*). Consent Agenda items are not considered
separately unless a Board Member so requests. In the
event of such a request, the item is returned to the Regular
Agenda.]
PA CAB Agenda
Page I
7. INFOMATIONAL ITEMS, REPORTS AND PRESENTATIONS —
A. Report on Business of Green Energy Conference by Rob Buck
8. UNFINISHED BUSINESS
9. NEW BUSINESS
A. PACAB Discussion and Recommendations regarding the Seward Economic
DevelopmentAssessment................................................................... Page 3
B. PACAB Discussion and Recommendations regarding potential Seward Promotions
Recommend canceling July 21, 2010 work session .................................... Page 29
�K C. Approval of May 5, 2010 Regular Meeting minutes .................................... Page 44
�k D. Approval of June 2, 2010 Regular Meeting minutes .................................... Page 46
10. CORRESPONDENCE, INFORMATIONAL ITEMS AND REPORTS (No action
required) -
A. China Expands Participations in Alaska's Mining Industry Agrees to buy 50% of Gold
Output from Kensington Mine (28 June 2010 Article)from WTC................... Page 47
B. Monthly PACAB Budget Report ............................................................ Page 49
C. Alaska Small Business Development Center workshops in Seward, July 19 2010.Page 50
11. BOARD COMMENTS
12. CITIZEN COMMENTS [S minutes per individual - Each individual has one opportunity to
speak.]
13. BOARD AND ADMINSTRATIVE RESPONSE TO CITIZENS'COMMENTS
14. ADJOURNMENT
City of Seward, Alaska PACAB Agenda
July 7, 2010 Page 2
Port and Commerce Advisory Board Agenda Statement
Meeting Date: July 6, 2010 /
To: Port and Commerce Advisory Board
From: Community Development Director Christy Te
Agenda Item: PACAB Discussion and Recommendations regar
the Seward Economic Development Assessment
BACKGROUND & JUSTIFICATION:
The Port and Commerce Advisory Board reviewed the list of questions generated from the
Seward Economic Development Assessment at their work session on June 16, 2010. The
Board was able to discuss many of the questions and the Executive Liaison noted their
discussion as attached. However, the Board did not complete their review and request this as
a item for their next scheduled Meeting.
Two clear recommendations developed during that work session that could be approved by
motion:
1) The Ombudsman Position discussed in the Economic Development study should be a
position within the City of Seward.
2) The current City Website requires an update.
As the Board continues their review, additional items for approval could be appropriate for
suggestion to Council. These motions will be provided to council via minutes and/or the
Board could ask the administration to work on additional correspondence with their
recommendations.
In addition to the original questions and notes from the work session, also provided you will
find the section of the code discussion exemptions for aesthetic enhancements, the shop local
campaign mentioned by Chair Long and the Seward Economic Development Study.
RECOMMENDATION:
PACAB should discuss and provide a recommendation (via motion) to the Council on
requested items.
List of questions and topics to frame discussion of the economic Development Assessment- by Phillip
Oates
Interweaved notes from the Port and Commerce Advisory Board work session 6-16-10
1. What are the best specific incentives for a development -related incentive policy?
A preferential policy change could be perceived to negatively affect existing businesses. Internal City
streamlining should be done to the steps for starting a business including expediting the permitting
process and consolidating services. Also noted that there are existing incentives for businesses that
improve aesthetically or make historical improvements to their structures, however these are not
widely used or publicized within the community?
2. Should the city give the first 2 years of a lease at no cost to encourage the establishment of new
businesses?
This type of motivation could be more easily and fairly achieved with a preferential rite of renewal on
the end of a lease, and review of lease terms and flexibility around taxable property on the leased
property. This problem, of having improved on property that's leased and that lease could run out and
not be renewed ends up affecting the resale value of businesses as well.
3. What specific actions by the City would encourage economic growth or the establishment of
new businesses?
Establish a `Green" Business program and incentives- Open the electrical grid- Start net metering -
Make the downtown business corridor more walk friendly with connected awnings and better sidewalk
maintenance.
4. Would a campaign of "spending 10% more of disposable income in Seward" make a positive
economic impact in the community? Are there other actions that would encourage an increase in local
shopping by residents?
PACAB members do not believe that this is a City Government task. Private industry should begin and
organize any efforts like this.
5. What types of new businesses should we target for Seward?
The ones that want to be here- year round businesses -businesses that make a good product- businesses
that can be run with no overheads, often from home or anywhere, in the technical or computer fields,
that aren't necessarily location dependent- Ideas like the mountain tram presented by Chris Nyman to
PACAB last month, were praised for being new, innovative and creative with a lot of potential for the
business and the community.
6. What policies and incentives encourage small entrepreneurial businesses?
PACAB voiced strong support for an ombudsman position within the city, paid to coordinate and
follow up with business owners, working closely with the chamber and all involved city departments to
help facilitate a private business/industry friendly atmosphere, and streamline sometimes cumbersome
process.
7. Is it economically beneficial and legal to provide business discounts to local residents?
Yes and yes
8. Is a seasonal sales tax a good approach for encouraging local economic activity and keeping
businesses open in the winter months?
Maybe, some members worry that this may leave a `bad taste in eth mouth' of visitors; others felt that
visitors will pay what is needed to visit. This could also create a marketing opportunity for
neighboring/ competitive communities that don't have a seasonal sales tax. ie "come to homer, we
have most of what Seward does and no seasonal sales tax".
9. Would utility subsidies in the winter be helpful in keeping businesses open?
Yes, but how will the city plan to make up for the loss in revenue? Perhaps better coordination with
exiting state programs that encourage energy efficiency would address this some. — not reinventing the
wheel here.
10. What other incentives could the City offer to keep more businesses open or successful during the
winter months?
Better communication of existing programs, less perceived competition between private and public
sector, even if it's just a perception it is damaging.
11. Which is consistently more successful for expanding the economy, growth of existing businesses
or attracting new businesses?
Both and sustainability.
12. Do you have an example of a City Website that has proven successful for achieving economic
growth in a community?
Kodiak seems to be very successful at what they are doing.... And has a lot of similarities to Seward.
13. What specific public policies encourage or discourage economic growth in a community?
Seward area businesses need to be careful to not give off a sense of entitlement but rather foster a
business friendly attitude, and great place to live works and do a variety of business.
Christy Terry
From: Phillip Oates
Sent: Friday, May 28, 2010 9:38 AM
To: 'Christi Bell'
Cc: 'alex@tipstrategies.com'; Christy Terry; John Bird; Kris Erchinger; 'rims@ptialaska.net'; 'Laura
Cloward; 'Vanta Shafer; wilnbev@ak.net; Suzi Towsley
Subject: Economic Development Meeting in Seward
Christi,
This message contains a list of questions and topics to frame discussion at our Ecoomic
Development Meeting in Seward on Tuesday, 1 June at 1 PM. Please feel free to add to, or
subtract from, this list as you feel appropriate.
1. What are the best specific incentives for a development -related incentive policy?
2. Should the city give the first 2 years of a lease at no cost to encourage the
establishment of new businesses?
3. What specific actions by the City would encourage economic growth or the
establishment of new businesses?
4. Would a campaign of "spending 10o more of disposable income in Seward" make a
positive economic impact in the community? Are there other actions that would
encourage an increase in local shopping by residents?
5. What types of new businesses should we target for Seward?
6. What policies and incentives encourage small entrepreneurial businesses?
7. Is it economically beneficial and legal to provide business discounts to local
residents?
8. Is a seasonal sales tax a good approach for encouraging local economic activity and
keeping businesses open in the winter months?
9. Would utility subsidies in the winter be helpful in keeping businesses open?
10. What other incentives could the City offer to keep more businesses open or successful
during the winter months?
11. Which is consistently more successful for expanding the economy, growth of existing
businesses or attracting new businesses?
12. Do you have an example of a City Website that has proven successful for achieving
economic growth in a community?
13. What specific public policies encourage or discourage economic growth in a community?
14. Should we focus John Bird's efforts on a Business Retention and Expansion Program
(John is a retired Army colonel and summer employee who has produced the City
Efficiency Study and the City Enterprise Fund Study)?
15. Increasing awareness of resources available to local businesses and better
responsiveness to Seward business concerns by City staff and the Council were the most
important items for improving Seward as a place to do business- what are some methods
we can immediately put in place to address these issues?
1
16. Do you know of the APEX program? Do you see this as a successful certification model
for local governments to promote economic development?
17. How much would it cost for UACED or other facilitator to help the City develop an
economic development plan?
18. Should we implement a "loan" through the Electric Utility for businesses that need to
upgrade their equipment to more energy efficient appliances (the loan could be repaid
over time through the utility bill)?
19. How do we streamline lease procedures? (The length of time is driven by survey and
platting requirements for new lease sites but the timeline is much less for a new
lease of an existing lease site.)
20. Do you know of building codes from other cities that may allow older buildings to be
renovated without excessive cost to business owners?
21. How would we best market our safe, lovely, and community friendly community to
businesses?
22. Should we establish and advertise for a voluntary ombudsman position?
See you on Tuesday...
Phillip Oates
City Manager
907-224-4012
2
Chapter 5.50. Real Property Tax
5.50.010. General.
5.50.021. Exemptions.
5.50.010. General.
(a) All real property in the city is subject to annual taxation by the city except real
property exempt under the constitution of the state, the applicable laws of the state,
ordinances of the Kenai Peninsula Borough, the City Charter or the ordinances of
the city.
(b) The council shall annually determine the rate of levy before June 15.
(c) The Kenai Peninsula Borough shall assess and collect the real property taxes
levied by the city in accordance with AS 29.45 and Chapter 5.12 of the Borough
Code of Ordinances now in effect and as each may hereafter be amended.
(Ord. 99-12)
5.50.021. Exemptions.
(a) Exemption for exterior aesthetic enhancement
(1) Purpose. The purpose of this subsection is to encourage owners to improve the
exterior aesthetic quality of their real property.
(2) Exterior aesthetic enhancement.
a. An owner of real property may apply to the city for an exemption from that
portion of city real property taxes resulting from an increase in assessed value of
improvements to real property if the increase in assessed value is directly
attributable to alteration of the natural features of the land or new maintenance,
repair or renovation of an existing structure, and if the alteration, maintenance,
repair or renovation, when completed, enhances the exterior appearance or
aesthetic quality of the land or structure. An exemption may not be allowed under
this subsection for the construction of an improvement to a structure if the principal
purpose of the improvement is to increase the amount of space for occupancy or
nonresidential use in the structure or for the alteration of land as a consequence of
construction activity.
b. An exemption provided in this subsection shall continue up to four years from
the date the improvement is completed, or from the date of approval for the
exemption by the local assessor, whichever is later.
c. In order to qualify for this exemption, an applicant must file with the city
manager a written application within 30 days after the mailing of the Kenai
Peninsula Borough notice of assessment for the year which the exemption is sought.
The application shall be on a form prescribed by the city manager, and shall include
all information deemed necessary to determine eligibility of the property for the
exemption. If the applicant fails or refused to provide the information required by
the city, within the time period set, the exemption shall be denied.
Script the Critical Moves 67
Bests that child abuse, too, may be partly the result of a lack of un-
derstanding, a lack of clear instruction or guidance on what to do.
This is not to excuse the parents' behavior, of course. It is simply
to point out that simple scripting has power beyond what any of
us could have predicted. Even child abusers become pliable in its
presence.
7.
In 1995, the same year Brazil's president Cardoso announced the
privatization of the railroads, a group of high school students in
Howard, South Dakota, started plotting a revival. They wanted
to do something, anything, that might revive their dying com-
munity.
Howard and surrounding Miner County had been shrinking
for decades. Farm and industrial jobs had slowly dried up, and
nothing replaced them. The median price of houses in Howard
was only $26,500. The population was about 3,000 and shrink-
ing. The county had the highest elderly population per capita in
South Dakota, and it also had the highest rate of youth out -
migration in South Dakota, meaning that when young people
got old enough, they left and didn't return.
"We'd been in decline for ninety years," said Randy Parry, a
longtime resident who taught a business class at the local high
school, coached the varsity basketball team, and ran an ice cream
parlor on the side.
At Howard High School, the students had just finished read-
ing a book about the death of rural communities in Iowa. The
students said, "That's us, it's just seventy years from now,"
according to Parry. "So in class they started asking, `How could
we change this?"'
Imagine the decision paralysis in this situation. Think of how
68 DIRECT THE RIDER
many factors influence a town's health: its history, its demo-
graphics, its location, its economic base, its weather, among
countless others. The problem was simply too complex for any-
one to solve. And it wasn't for lack of motivation —there wasn't
one person in Miner County who wouldn't have jumped at the
chance to help rejuvenate the community. The Elephant herd was
ready to move. But where? What can a few people do to restore
an entire county?
The students started investigating the situation, designing a
survey and distributing it to a sample of Miner County's 1,000
registered voters. One finding in particular disturbed them: They
discovered that half of the residents were shopping outside the
county, driving an hour to Sioux Falls to shop in larger stores.
If Miner County was going to be reborn, its economy would
need a boost. Most of the things that would boost an economy —
investment, entrepreneurship, immigration —were out of the stu-
dents' control. But they had uncovered one thing that was very
much in their control: spending money locally. They had found
their first rallying cry: Let's keep Miner dollars in Miner County.
Parry urged the students to present their findings to the com-
munity. The students accepted the challenge and began to put
together a presentation.
The students' newfound interest in revitalization dovetailed
with the efforts of others in the community. A group of other
Miner County citizens had been hosting a series of meetings in-
tended to get county residents talking about the future. They held
five gatherings, some in the high school and some in people's
homes, and they invited a cross section of residents: farmers and
businesspeople and ministers and retirees. They challenged each
other: What can we do to energize Miner County?
The issues raised were all over the map: Why does our town
look so shabby, with rusty cars on the street? Why should a farmerget
Script the Critical Moves 69
a subsidy when a businessperson doesn'tget a subsidy? Why don't we
have a more thriving Main Street? Many of the issues were TBU,
unsolvable by the community. Many required investment, but
with a limited pool of tax dollars to draw from, it wasn't clear
where they'd find the money. But there were a few things they
knew they could take into their own hands.
A gas station owner in the town of Fedora, population 150,
complained that residents years ago had cut down a lot of dis-
eased trees —stumps were still littering the area, making Fedora
look run-down and sad. The group of concerned citizens decided
to deal with the stumps in Fedora. One Saturday, farmers carry-
ing chain saws rode into Fedora on their tractors and loaders.
Other residents made sandwiches and cookies for the workers.
In a single day, the group dug up four hundred stumps.
Kathy Callies, who was heading up the kitchen crew that day,
said it was amazing to see fifty people, ages ranging from 5 to 95,
come together to do something for their community. Callies re-
called that by the end of the day, "People felt like, `Look at what
we did in a day.' And when you've dug up stumps together and
you start to realize you have shared ideas about what you want the
community to be, then things start to happen." (Notice that the
log -clearing day had powerful Elephant and Path elements, as
well. The flush of victory —of making a difference —gave the Ele-
phant strength to continue. And the strong support of the com-
munity made the Path feel less difficult. It's easier to make a long
journey when you've got a herd around you.)
The community began to rally around the movement. Callies
remembered the day that Phyllis, a civic -minded woman in her
80s, dropped by the office where the community boosters were
meeting. Phyllis announced, "I've been waiting for you to call
me. I thought if you needed my help, you would call. But then I
realized that `Oh, they're all too busy to call!' So here I am." On
70 DIRECT THE RIDER
Script the Critical Moves 71
her refrigerator at home, Phyllis had posted a cross-stitch that
problems. Later, Howard and Miner County received $6 million
C
said "Screw the Golden Years."
in grants from various foundations to fuel the transformation.
When the high school students were ready to unveil their rec-
Randy Parry left his teaching job and became a full-time
T1
ommendations, eighty-five residents gathered in the high school
revitalizes -in -chief The town of Howard became the host to
bi
H
gym to hear the presentation. Among them were the top leaders
twenty -first -century businesses such as an organic beef producer
N
of the towns in Miner County. the school boards, the city coun
and a wind -turbine repair shop.
di
cils, and the county commissioners.
"It all started small," said Parry. "It's like when I took over the
di
The crowd listened attentively to the high school students.
basketball team at the high school. They were just coming off of
th
Parry said, "You could hear a pin drop.... People said, `I can't say
a losing season and you couldn't get people to come into the gym.
tro
no because I want to make this a place where these kids can come
But then you start to win and a few people come, and then more
ba
home someday.' Because the other option is we sit here and keep
people come. And then we started winning a lot." To date, Parry
CO
watching things decline, so pretty soon all that will be left is the
has discussed the rebirth of Miner County with community lead -
so
log
dust.,'
ers from thirty -three different states.
The students had prepared an impressive array of spreadsheets
i f
if l
and charts and graphs. But the 'd also simplified the complex
g P Y P p
data into one simple, surprising fact: They'd calculated that if
8.
PO
Howard residents spent just 10 percent more of their disposable
A railroad and a South Dakota small town. Both crumbling. Both
tni
income at home, they would boost the local economy by $7
with a dense thicket of problems and no real resources to use in
r
million.
untangling them. In each situation, an unlikely leader emerged
The audience was impressed, and the presentation worked
a young man fresh out of business school and a high school bas-
e i
better than anyone expected. The students had scripted the first
ketball coach. And both succeeded by formulating solutions that
�r3
critical move for Miner County, and the locals responded imme
were strikingly smaller than the problems they were intended to
►�
diately, consciously spending more of their money in the county.
-
solve. (We've seen this asymmetry before, in the stories of Jerry
A year later, South Dakota's Department of Revenue released an
Sternin in Vietnam and Bobby the troubled teenager.)
astonishing number: The amount of money spent in Miner
The challenges facing Miner County were big and sprawling:
f l
County had increased by $15.6 million, more than twice the in
the decline of an industrial base, the aging of a population. The
crease the kids had expected.
citizens understood these challenges well, but the knowledge was
The change began to snowball. Suddenly, because the county
TBU—true but useless. It was paralyzing knowledge.
, ,et
was collecting more taxes, money was available to fund the other
To the Rider, a big problem calls for a big solution. But if you
proposals the local groups had considered. And in the years fol
seek out a solution that's as complex as the problem, you'll get
1
lowing the students' presentation, the tax receipts kept climbing,
the Food Pyramid and nothing will change. (The Rider will just
ea
which enabled the community to tackle even more ambitious
spin his wheels trying to make sense of it.) The Rider has to be
it
ho
m
SEWARD ECONOMIC
DEVELOPMENT ASSESSMENT
Prepared for Seward Chamber of Commerce
May 2010
DRAFT Seward Economic Development Assessment Report
Executive Summary
The Seward Chamber of Commerce engaged the TIP Strategies, Inc. (TIP) and the University of Alaska
Anchorage Center for Economic Development (UACED) to perform an assessment of Seward's economic
development capabilities. The assessment was accomplished through (1) an analysis of economic and
demographic data, (2) an online survey of Seward residents and business owners/managers, and (3) a site visit
and interviews with various representatives from the Chamber, the City, and the local business community. The
purpose of the assessment is to evaluate Seward's current economic development assets, processes,
coordination, and expertise.
Key Assessment Findings
= The data analysis reveals some trends in relation to population, business formation, and employment that
should be of concern to the community. Population growth and new business formation in Seward has
been flat in recent years. The number of retail establishments has even declined over the past 10 years.
In addition, some of the jobs in Seward with the oldest worker profiles are in key professions such as
registered nurses, teachers, and general managers.
• Twenty percent of the 58 business owners responding to the online survey indicate they plan to move or
discontinue their business in 1-2 years. A high frequency of business respondents noted difficulty dealing
with the City, unfriendly business climate, and difficulty dealing with the Harbor as reasons they planned
to move or close their operations. Forty-two percent of businesses would not choose to start their
business in Seward today.
■ Resident respondents were most likely to favor economic development policies and strategies that
enhance the quality of life and provide better job opportunities. Business respondents were more likely to
favor economic development policies and strategies that reduce regulation, increase the amount of land
available, and increase support of local businesses.
• It is the view of the consulting team that the Seward Chamber of Commerce is an effective economic
development organization given its staffing levels and resources. This view was generally supported by
business representatives interviewed as part of the assessment.
The team encountered no major impediments presented by City departments or staff to opening or
operating a business in Seward. Suggestions for improving the responsiveness and customer friendliness
to businesses included more consistent code enforcement across departments; better IT systems
integration across departments; the creation of a simple guide for leasing City property; and the
development of a single flow chart illustrating the permitting, licensing, and development process for City
staff and businesses.
Business representatives interviewed reported new City leadership and staff in recent years has resulted
in improved customer friendliness. Still, business owners expressed considerable frustration that City
leadership does not "hear" the concerns of the business community. There is also a perception among
businesses that City leadership lacks a private sector mentality.
■ Many business representatives questioned the commitment of City government to expanding private
sector investment in Seward and diversifying the tax base. Many fear the prevalence of public sector
investments in the City is shrinking the private sector tax base, which results in higher taxes and fees on
existing businesses and their customers.
TIP Strategies, Inc. & UACED
DRAFT
Seward Economic Development Assessment Report
= Business representatives advocated for an ongoing forum between City leaders and the business
community held outside of the City offices to discuss theses concerns.
■ It is not clear from either the City or Chamber websites the appropriate process for new investment
prospects to initiate a business location inquiry. The City and Chamber should establish a formal protocol
for prospect assistance, which is then clearly described online and in printed literature.
Recommendations
■ The most important contributing factor to a successful economic development program is the
involvement and support of the existing business community. As a consequence, the City and Chamber
should involve the business community the community's economic development activities, including
business retention, expansion, and recruitment.
• The City and Chamber must jointly commit to more aggressively retaining, expanding, and attracting
private investment. This likely will involve greater resources dedicated to economic development. It is the
view of the consulting team that the Chamber is the proper organization to lead Seward's economic
development efforts. However, before any resources are spent, a community -wide economic
development strategic plan should be developed and put in place to guide resource allocation.
■ The community should organize economic development teams consisting of public officials, City and
Chamber staff, and business representatives. These teams would be assembled for hosting new
investment prospects and calling on outside companies.
= The City should explore ways for offering an expedited permitting process for qualified new, expanding,
or relocating businesses. Such a process would commit the City to streamlining and simplifying
governmental permitting processes where possible.
= The City of Seward and the Seward Chamber of Commerce should collaborate to expand the community's
business retention and expansion program.
TIP Strategies, Inc. & UACED 2
DRAFT
Seward Economic Development Assessment Report
About the Economic
Development
Assessment
The Seward Chamber of Commerce engaged the
TIP Strategies, Inc. (TIP) and the University of
Alaska Anchorage Center for Economic
Development (UACED) to perform an assessment of
Seward's economic development capabilities. As
part of the assessment, the consulting team
evaluated Seward's current economic development
assets, processes, coordination, and expertise. In
addition, the team conducted a general assessment
of the commitment to economic development
among the local partners, including the Chamber,
the City of Seward, local businesses, and other
community organizations. The Chamber and the
City will use the assessment as a basis for
approaching how the community of Seward can
better accomplish its economic development goals.
Approach
The assessment utilizes three approaches to
gathering input and analysis. First, an analysis of
various economic and demographic indicators
provides a brief snapshot of Seward's economic
strengths and weaknesses, revealing recent trends
for indicators such as population, employment, and
business creation. Second, the team administered
an online survey of Seward residents and business
owners/managers. The survey gauged perceptions
regarding challenges and opportunities for living,
working, and operating a business in Seward. Four
groups were targeted and contrasted: 1) business
owners, 2) general Seward residents, 3) senior
citizens, and 4) high school seniors. Third, team
members conducted a site visit and met with
various representatives from the Chamber, the City,
and the local business community to assess local
economic development priorities, responsiveness,
opportunities, challenges, and capabilities.
TIP Strategies, Inc. & UACED 3
DRAFT Seward Economic Development Assessment Report
What We learned
TIP Strategies and UACED performed both quantitative and qualitative analyses as part of the economic
development assessment. First, the team conducted an analysis of economic indicators for Seward. In addition,
UACED carried out an online survey targeting Seward business owners, general residents, senior citizens, and
high school seniors. The survey was designed to assess perceptions regarding challenges and opportunities for
living, working, and operating a business in Seward. Finally, team members from TIP and UACED travelled to
Seward to interview public officials and local business owners regarding economic development issues and
opportunities. The section below summarizes key findings from each analytical component.
Economic Trends
TIP analyzed various economic and demographic indicators for Seward to form a brief snapshot of the
community's economic strengths and weaknesses. While not comprehensive, the analysis does shed some light
on recent trends for indicators such as population, employment, and business creation.
Population
Figure 1 below illustrates Seward's population growth between 1990 and 2008. It includes official U.S. Census
Bureau counts (brown bars), intercensal estimates (blue bars), and Alaska Department of Labor and Workforce
estimates (brown line). The graph shows the Census Bureau significantly overestimated Seward's population
growth in the 1990s. By 1999, the Census Bureau estimated Seward had 3,315 residents. However, the actual
Census count in 2000 revealed only 2,813 residents. Consequently, Census Bureau estimates since 2000 have
been less aggressive. The latest population estimate for mid -year 2008 is just over 3,100, giving Seward an
overall population increase of about 10 percent since 2000.
While the U.S. Census Bureau
has tempered its post-2000
population growth estimates
for Seward, the Alaska
Department of Labor and
Workforce Development
(ADLWD) has been even less
optimistic. ADLWD estimates
show Seward's population
declining from 2,830 in
2000 to 2,619 in 2008. If
correct, these estimates
mean Seward's current
population is about the
same or less than it was at
the time of the 1990
Census, nearly 20 years
ago.
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Student enrollment data are
also accurate indicators of
overall population trends.
Data collected by the US
Department of Education's
statistical unit counting all
U.S. schoolteachers and
students by Zip code indicate
an enrollment pattern
consistent with ADLWD
population estimates.
According to Figure 2,
between 1995 and 2000 the
number of primary and
secondary school students in
the 99664 Zip code peaks and
then begins leveling off. From
2001 to 2006, the number of
students steadily declines. In
Figure 2: Students and Teachers Counted in 99664,1990.2006
1000 --------------------------------------------------------------------- 1a0 Total
Total n
number of umber of
primary teachers
secondary 9q0------------------------/------------------------------ -- 90 (line)
students , _� _/ 7/
(columns) 800 ---------- 770
600
% %pa
soa j j ////� 11
j% j sa
aoa j/j/ j jj j j- j j j/� j jo
300 % / j / % 1 IN
/ 30
200 j j/ j j zo
100 Ia
19901991199219931994199519961997199819992000200120022003200420052006
SOURCE: U.S. Department of Education, National Center for Educational Statistics (NOES) (via Moodys Analytics)
NOTE: Data represent total counts within 99664 ZIP Code.
fact, Seward's student population fell from a high of 896 in 1995 to a 17-year low of 649 in 2006.
Reflecting the overall decline in student enrollment, the number of local teachers also remained flat
or declined since 1996.
Economy
As shown in Figure 3, between 1998 and 2007 net business formation in Seward remained relatively
flat. During this period, the private -sector economy within Zip code 99664 added just nine new business
establishments. However,
Figure 3: Private -Sector Economy* within 99664,1998-2007
Number 195 ------------------------------ -- Number
)�
of private j j f
sector 180---------I �/ j j/ - ------ - j 1,200 covered
establishjobs
/ / % % j / j — j j lobs
ments
(columns)i65 _ / 110q (line)
150 j / / 135
/ / j� j900
100
105 05 -% % j j j- -j j 7a0
- ---� / -
600
75 ---/- �- �- �-- soa
60 --_� -_ 400
45 --�---�---�---�---�----�----� �---�---�-- soa
30 / z0o0
1s
o s
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
SOURCE: U.S. Census Bureau, Zip Code Business Patterns
'Based on covered employment which typically excludes government workers and the self-employed.
private sector employment
gained almost 200 new jobs.
This means the average
number of workers employed
at Seward businesses
increased over the period. In
1998, local businesses
employed an average of 6.1
workers. By 2007, this figure
had risen to 6.8 workers.
In addition, the total private -
sector payroll (unadjusted for
inflation) nearly doubled from
$27.2 million in 1998 to $50.6
million in 2007.
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Seward Economic Development Assessment Report
Figure 4 below displays the
number of private sector
establishments in zip code
99664 by industry sector.
Accommodation & food
services is the largest category
of business establishments in
Seward. As of 2007, 40
businesses operating in this
sector had a 99664 address.
A decade ago, retail
establishments rivaled
motels, restaurants, and
bars for the most
important sector of the
local economy, but over
the past 10 years, the
number of retail outlets
Figure 4: Private -Sector Business Establishments within 99664,1998-2007
Number45 -----------------------------------------------------------------
of private
sector
establish- 40--------------------------------- ---- ---
—Accommodation & food
ments by 00
services
industry
sector 35 -- ----------------------------------------
---Transportation &
warehousing
30---------`- ------------------------------------ --
—Retail trade
25--------- ---------------- - -------------
Personal &other services
20 -----------------------------------------------------------------
Health care & social
assistance*
•�-
--Construction
a..
10 ------------------------------------
�"^►, "'��
—Professional services
5 ---
has declined from 32 to 21. Retail trade now ranks third in the number of local establishments behind
transportation & warehousing. The number of transportation & warehousing businesses spiked between 2003 and
2005, but fell sharply in 2006 and 2007. The sectors registering establishment growth in the last two years of
available data include healthcare, personal services, and professional services.
Figure 5 illustrates the relatively small size of most businesses in Seward. Two of every three businesses (68
percent) have fewer than live employees. Just 6 percent of the business establishments employ 20 or more
workers.
Figure 5: Size of Business Establishments within 99664, 2007
20-49 50-99 100+
3% 2% 1%
Size category
Number of businesses
0-4 employees
127
5-9
30
10-19
18
20-49
5
ay.
50-99
4
100+
2
All establishments
186
vM -
SOURCE: US Bureau of the Census, Zip Code Business Patterns 2007 (latest available)
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Seward Economic Development Assessment Report
The composition of the local workforce by age is also an important economic development consideration. If
workers in key occupations are older, will there be enough new workers to replace them? Do the jobs currently
filled by younger workers offer the potential for further professional and technical development?
Figure 6 indicates some of the jobs in Seward with the oldest worker profiles are in key professions
such as registered nurses, teachers, and general managers. More than two-thirds of Seward's workers in
these three occupations are over the age of 45. For managers, this age profile is intuitive since this is an
occupation that a worker advances into over time. The age profile for teachers and registered nurses, however,
should include a higher percentage of younger workers. Having such a large percentage of teachers and nurses
over the age of 45 represents a red flag for potential future labor shortages in key occupations.
Figure 6: Occupational Composition* of Seward's Workforce by Age
Occupations
Number Age Breakout:
Under 45 (%)
45 or older (%)
Janitors & Cleaners
► Teachers & Instructors, All Other
11
25
18
20
82
80
► Registered Nurses
► Managers, All Other
► General & Operations Managers
Retail Salespersons
17 1
10
16
24
29
30
31
38
71
70
69
63
Healthcare Support Workers, All Other
13
38
62
Correctional Officers Mailers
Customer Service Representatives
Bookkeeping, Accounting, & Auditing Clerks
Teacher Assistants
Office & Administrative Support Workers
Office Clerks, General
Personal & Home Care Aides
Meat, Poultry, & Fish Cutters & Trimmers
50
14
25
11
24
17
10
12
40
43
44
45
46
47
50
50
60
57
56
55
54
53
50
50
Executive Secretaries & Admin Assts
17
53
47
Hotel, Motel, & Resort Desk Clerks
18
56
44
Captains, Mates, & Pilots of Water Vessels
25
56
44
Maintenance & Repair Workers, General
10
60
40
Electricians
10
60
40
Bartenders
13
62
38
Laborers & Freight, Stock, & Material Movers
21
62
38
Cashiers
43
63
37
Food Preparation Workers
19
68
32
Waiters & Waitresses
29
72
28
Sailors & Marine Oilers
22
73
27
Cooks Restaurant
17
76
24
Dishwashers
10
80
20
Maids & Housekeeping Cleaners
11
82
18
Construction Laborers
14 1®
86
14
SOURCE: Alaska Department of Labor and Workforce Development
*includes the 30 occupations in Seward that employ at least 10 workers
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Survey Results
UACED administered an online survey of Seward residents and business owners/managers through Zoomerang
between February 20 and March 28, 2010. The survey was intended to assess perceptions regarding challenges
and opportunities for living, working, and operating a business in Seward. The survey targeted and contrasted
the following four groups: 1) business owners, 2) general Seward residents, 3) senior citizens, and 4) high school
seniors. Questions were designed to gauge business owners' perceptions on issues of workforce, land and
property, services provided to businesses, and operating a business in Seward. Questions also were designed for
residents to access purchasing habits, identify potential businesses opportunities, and gather perceptions of
Seward's strengths and limitations.
The Seward Chamber of Commerce communicated the opportunity to participate in the survey through multiple
ads in the Seward City News, announcements at Chamber meetings, through the weekly Chamber newsletter,
and direct communication with the high school and senior center.
Of the 110 surveys completed, input was received from the following: business owners (58), residents (19),
senior citizens (12), and 2010 high school seniors (21).
Business Survey Summary
Key findings of the business owners/managers survey are highlighted below:
= Most respondents are small businesses with three or fewer employees. About one-third have lived in
Seward 25 years or more. Almost 50 percent of respondents have been in business 7-24 years; 21
percent have been in business 25 years or more years.
Businesses responding represent a minimum of 295 jobs in Seward.
= About one-third of businesses expect revenue to decrease this year; 41 percent expect it to stay the
same; and 25 percent expect revenue to increase.
■ Business respondents indicate that regulatory
practices, economic issues, and lack of a well -
trained labor force have a negative effect on
businesses in Seward. One -fifth plan to move
or discontinue their business in 1-2 years; half
of these noted difficulty obtaining permits to
operate or expand. A high frequency of
respondents noted difficulty dealing with the
City, unfriendly business climate, and difficulty
dealing with the Harbor as reasons they
planned to move or close their operations (see
box).
When asked about hiring issues, 46 percent of
respondents expressed difficulty finding skilled
employees. Twenty-nine percent reported difficulty hiring laborers, managers, and part-time employees,
respectively. Thirty-eight percent of the businesses hire employees 18 years or younger.
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Seward Economic Development Assessment Report
• About two-thirds of respondents indicated lack of satisfaction with the City Council (elected); 66 percent
reported a lack of satisfaction with the City of Seward (Administration). Approximately three-quarters of
business respondents were satisfied or very satisfied with the Seward Chamber and 70 percent were
satisfied with the Alaska Vocational Technical Center (AVTEC).
• Respondents were asked to rate Seward as a place to do business. Over 50 percent rated Seward weak
or somewhat weak in the following areas: access to affordable financing, affordable utilities, affordable
housing, simplified permitting and local regulations, active downtown core and land use planning.
Business respondents indicated that quality of life (e.g., cleanliness, safety, and recreational
opportunities) has positive effects on Seward as a place to do business. Over 50 percent rated Seward's
quality of life as somewhat strong or very strong.
• Business respondents suggested increased collaboration with other businesses for marketing Seward as a
tourist destination, making a case for state support, and encouraging development of a downtown core.
• Increasing awareness of resources available to local businesses and better responsiveness to Seward
business concerns by City staff and the Council were the most important items for improving Seward as a
place to do business.
• Forty-two percent of businesses would not choose to start their business in Seward today.
• The top sources of information used by businesses include the Seward City News, the Seward Chamber
of Commerce website, and the City of Seward website.
Resident Survey Summary
Key findings of the survey of Seward residents are highlighted below. Differences between general resident,
senior citizens, and high school seniors are noted where applicable.
• The majority of resident respondents have lived in Seward more than four years. Almost a quarter of
both general residents and senior citizens have lived in Seward 25 or more years. Fifty-seven percent of
high school seniors have lived in Seward more than 15 years.
• Survey respondents indicated the following were the most important items in defining the character of
Seward: locally owned businesses, outdoor recreational opportunities, and community events.
• All residents make the majority of their purchases outside of Seward. Products most frequently purchased
outside of Seward by senior citizens include clothing, home furnishings, and appliances. High school
seniors are most likely to purchase clothing, electronics and computers outside of Seward. General
residents are more likely to purchase electronics, computers, home furnishings, and appliances. Non -high
school respondents reported purchasing most groceries outside of Seward.
• Survey respondents purchase a majority of fishing supplies, auto parts and services, and hardware and
lumber locally. Respondents also patronize local restaurants.
• When asked what most influenced respondents' purchases made outside of Seward, product pricing was
the reason given by all. Availability and selection were the second most influential reason given.
• All resident respondents rated Seward as a place to raise children as "very good," a place to retire as
"good", a place to work as "good" and safety of residents as "very good."
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Seward Economic Development Assessment Report
• Respondents were asked to rate their level of agreement with statements describing Seward as "strongly
agree," "agree," "neutral," "disagree," or "strongly disagree." All residents agree that Seward is a clean
city, has good air and water quality, and has accessible health care. All respondents "strongly agree" that
Seward has a sense of community. None of those responding agree that living is Seward is affordable.
• All respondents use the Seward City News as their major source for community issues, services, and
programs.
Economic Development Implications from Surveys
Respondents perceive significant barriers to economic development in Seward: regulations, permitting, and a lack
of focus and support for economic development by government. Residents perceive governmental attitudes and
lack of coordinated economic development activities as further barriers to economic development.
Resident respondents were most likely to favor economic development policies and strategies that enhance the
quality of life and provide better job opportunities. Business respondents were more likely to favor economic
development policies and strategies that reduce regulation, increase the amount of land available, and increase
support of local businesses. An important — but often overlooked — and effective aspect of economic development
is assisting existing small businesses to succeed and making the business climate friendly to expansion.
Site Visits and Interviews
Representatives from TIP and UACED traveled to Seward on February 17-18, 2010, to conduct a site visit and
meet with various representatives from the Chamber, the City, and the local business community. The consulting
team toured the community and visited each of Seward's primary economic development sites and assets. In
addition, the team met individually with Chamber staff as well as various City leaders and departments to assess
local economic development priorities, responsiveness, and capabilities. Finally, the team spoke with
representatives of the local business community individually and in a focus group format to discuss the primary
challenges and strengths to doing business in Seward. A summary of the team's key findings is presented below.
Chamber of Commerce
It is the view of the consulting team that the Seward Chamber of Commerce is an effective economic
development organization given its staffing levels and resources. The Chamber is led and staffed by an
experienced and capable team. The three main areas of focus for the Chamber include membership services and
development; visitor and tourism promotion; and business retention, expansion, and attraction activities. The
executive director is knowledgeable about the issues affecting Seward's business community as well as the
practice of economic development. Nearly every business representative expressed the view that the Chamber is
a strong advocate for local business issues and effectively markets Seward to visitors and businesses with the
resources at its disposal.
City of Seward
In order to assess the economic development views, capabilities, and responsiveness of the City of Seward the
consulting team interviewed the mayor, city manager, and several department managers and staff, including the
electric utility, city clerk's office, fire chief, building and engineering, harbor master, and community development
department. A summary of the key findings is presented below.
Overall, the consulting team encountered no major impediments presented by City departments or staff
to opening or operating a business in Seward. Each person interviewed seemed professional and open to
helping businesses succeed in Seward.
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Some managers reported a lack of consistent enforcement of codes and regulations across departments.
This has been attributed to departments being located in different facilities and some codes not being
aligned. One suggestion is for the City to develop a single flow chart illustrating the permitting, licensing,
and development process for City staff and businesses.
• Improvements and upgrades to the City's information technology system would help in faster processing
of licenses and tax forms. The clerk's office does have a program that would speed up the process;
however, they report not having the staff time needed to implement it. It was also suggested that an IT
system better integrated across departments would improve the process.
■ The weekly meeting of department managers to discuss projects is seen as a valuable tool for staying on
top of developments that impact multiple departments.
■ It was reported both inside and outside the City that the process for leasing City property and space,
including boat slips, is confusing and takes too long. One suggestion is for the City to produce a simple
guide to leasing property.
Business Interviews
The consulting team interviewed a number of local businesses individually and in a focus group format. Below is a
summary of the key findings.
• Many businesses reported that, historically, the City of Seward has not been business friendly. However,
in recent years new leadership and staff resulted in improved customer friendliness.
Considerable frustration was expressed that City leadership does not "hear" the concerns of the business
community. There is a perception that City leadership lacks a, private sector mentality.
Many questioned the commitment of City government to expanding private sector investment in Seward
and diversifying the tax base. They point to the fact that most of City's large economic development
assets and significant investment involves the public sector, resulting in a declining private tax base.
Because Seward is relatively land -locked, less land is available for private ownership and development.
Many fear this is not a sustainable model for long-term economic vitality in Seward.
• The shrinking private tax base has resulted in higher taxes and fees on existing businesses and their
customers.
• Several commented that the City actually competes with the private sector and cited examples of the
boat harbor, the Seward Marine Industrial Complex, and the Seward Resort. The City should evaluate
privatizing its primary economic development assets where it can.
• There needs to be an ongoing forum between City leaders and the business community held outside of
the City offices. The positives aspects about living and working in Seward are too great that the local
economy should suffer due to a lack of direct communication between the City and businesses.
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Web Profile
Websites for the City of Seward and the Seward
Chamber of Commerce are both professional,
attractive sites. However, each is lacking key
components critical for prospective investors and
site selectors. The adjacent text box provides
information on fundamental pieces economic
development websites should include. For example,
the City and Chamber websites should link to a
downloadable and printable community profile
containing standard information site selectors
require. Information on the business and investment
climate in Seward should also be offered in a more
downloadable and printable format. The sites also
lack lists or links to available buildings/properties
and key economic development assets. The
Anchorage Economic Development Corporation's
(AEDC) Anchorage Prospector site does list
commercial, retail, and industrial sites/buildings for
sale or lease in Seward; however, neither the
Chamber nor the City provide a link to the site.
Moreover, it is not clear from either the City or
Chamber site the appropriate process for prospects
to initiate a business location inquiry. For instance,
the Chamber site identifies the Community
Development Department as "a great first stop for
any business seeking to relocate to Seward."
However, the City site encourages businesses to
"utilize the Seward Chamber of Commerce to help
initiate business opportunities in the city." The City
and Chamber should establish a formal protocol for
prospect assistance, which is then clearly described
online and in printed literature.
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Seward Economic Development Assessment Report
Recommendations
Based on the information gathered during the assessment, the consulting team is prepared to make the following
recommendations as to how Seward can more effectively accomplish its economic development goals.
Involve the Existing Business Community
Perhaps the most important contributing factor to a successful economic development program is the
involvement and support of the existing business community. The best led and funded programs will not succeed
over the long term if local businesses do not actively participate and contribute to economic development efforts.
This involvement includes fundraising, participating in business roundtables, meeting with other local businesses,
hosting new investment prospects, and attending prospect call trips to other cities.
There are obvious reasons for involving local businesses. First, the core element of any economic development
program is business retention and expansion (BRE). Taking care of existing businesses should always be the
priority. If those businesses do not perceive any value from, or have trust in local BRE efforts, they are less prone
to support other economic development activities such as workforce development, marketing, and business
recruitment. They are also less likely to be anchored in the community and more likely to relocate.
In terms of attracting new employers, existing businesses are in a position to make the strongest case for
investing in Seward. It is one thing to hear from public officials why Seward is the best place to invest and
prosper, it is quite another to hear it from business leaders who are actually there. Moreover, involving local
businesses in recruitment and attraction activities will demonstrate to prospects that the City and business
community are partners. This, in turn, will enhance their confidence in investment climate of Seward.
Recommit to Expanding the Private Sector Economic Base
As mentioned above, several Seward business people questioned the commitment of City government to
expanding private sector investment in Seward. They point to the fact that most of city's large economic
development assets and significant investments involve the public sector. This has resulted in a declining private
tax base and thus a heavier direct and indirect tax burden on existing businesses. Because Seward is relatively
land -locked, less land is available for private ownership and development. Many fear that this is not a sustainable
model for long-term economic vitality in Seward.
To address this trend, the City and Chamber must jointly commit to more aggressively retaining, expanding, and
attracting private investment. This likely will involve greater resources dedicated to economic development. It is
the view of the consulting team that the Chamber is the proper organization to lead Seward's economic
development efforts. However, before any resources are spent, a community -wide economic development
strategic plan should be developed and put in place to guide how resource allocation.
Organize Economic Development Teams
A key step in positioning Seward for attracting new investment is organizing local leaders and experts to host and
call on new investment prospects. Business attraction is a highly competitive pursuit, especially in the current
economic environment. Having a well -prepared and enthusiastic team of local leaders and business
representatives able to make the case why Seward is the best destination for new or expanded private
investment is a standard and effective business attraction strategy.
TIP Strategies, Inc. & UACED 13
Seward Economic Development Assessment Report
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Hosting Prospects
In setting up the itinerary for the site visit, TIP
requested a first meeting with Seward's prospect visit
team. A prospect visit team serves as community
representatives for hosting new location prospects and
usually consists of important public, economic
development, and business officials. TIP's reason for
requesting an initial meeting with such a team in
Seward was to simulate the sales pitch and
information a team generally provides to an
investment prospect. However, TIP was informed that
a formal prospect visit team does not exist in Seward.
The consulting team recommends that the City and
Chamber assemble a prospect visit team consisting of
Chamber staff, elected and appointed City officials,
and representatives of the business community. The
purpose of a prospect visit team is to have a pre -
assembled group of community representatives who
can provide comprehensive answers to a prospect's
questions regarding why Seward is the best location
for their business.
A group of Seward officials and businesses already travels to Seattle to visit with large companies doing business
in Seward. This practice should be continued and expanded to call upon prospective businesses as well.
Offer Expedited Permitting
The City of Seward should explore adopting an expedited permitting process for qualified new, expanding, or
relocating businesses. Such a process would commit the City to streamlining and simplifying governmental
permitting processes where possible. Such an incentive offers a business -friendly environment allowing
companies to locate and expand in the community rapidly and efficiently.
■ Develop a baseline. A comparison of Seward's development review and permitting process with peer
and competitor communities is an important fist step. If no such baseline comparison already exists, then
TIP Strategies, Inc. & UACED 14
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Seward Economic Development Assessment Report
the City should begin tracking the review time for different categories of permitting (i.e.,
residential/commercial and infill/greenfield development). At the same time, the Chamber should gather
information from the benchmarks and begin comparing this data with Seward's.
Establish a "One -Stop Shop." Many communities have benefited from a single location for permitting
and development review. Instead of having various departments (from the fire marshal to the public
works director) at various locations, a single stop helps expedite development and reduces bureaucracy,
creating a more business friendly environment. In Seward a one -stop should would require a
reorganization of staff and facilities.
• Set clear standards and follow them. Developers require a level of certainty. To help achieve this
goal, the City of Seward should ensure that current policies and codes are logical, clearly written, and
enforceable.
• Craft a development -related incentive policy. To encourage innovative and responsible
development, the City of Seward should establish specific criteria regarding design standards,
employment and wage targets, and other community goals that would trigger incentives for desirable
projects. Examples of incentives would include a streamlined or "fast -track" review and approval process,
waivers or reduction of the project's development -related fees, or in some cases, tax abatements or
credits.
Expand Business Retention and Expansion Program
The City of Seward and the Seward Chamber of Commerce should collaborate to expand the community's
business retention and expansion program.
Successful, stable businesses form the foundation of a community's economy. When existing businesses thrive,
so does the community. The U.S. Chamber of Commerce estimates that 40 percent to 80 percent of all new jobs
are created by existing firms. Prosperous, competitive businesses are more likely to remain and expand in the
community and, thus, provide the best opportunity to expand a community's tax base. Yet, existing firms can also
pose the greatest economic threat to a community, should they close or relocate. Thus, a formal business
retention and expansion (BRE) strategy should lie at the heart of any economic development program. Indeed,
surveys of economic development organizations across the United States rank BRE as the number one economic
development activity.
A BRE program can identify the concerns and barriers to survival and growth that local businesses face,
particularly during difficult times. A formal BRE program also demonstrates support for existing firms. Such
support is crucial, as established businesses often get overlooked in a community's enthusiasm to recruit new
headline -generating businesses. Yet, keeping existing companies happy and successful can help with business
attraction, as firms considering moving will often talk to existing firms in the community. Below are common BRE
activities the Chamber and City should consider adopting if not already in practice.
• Develop and maintain a comprehensive inventory of existing businesses and available properties. Use
publicly available business records, such as tax records, utility hookups, and ownership transfers as good
sources of information to maintain an up-to-date inventory of existing businesses and available property.
Call on existing businesses — including all major employers — to gauge the ability and needs of local
businesses to operate successfully and possibly expand in the community.
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Seward Economic Development Assessment Report
• Consider including City, Chamber, business, and elected officials in visits to existing businesses.
• Host regular business roundtables to give local businesses the opportunity to meet face-to-face with
economic and community development staff and to stimulate discussion.
• Establish incentive policies (such as fast -track permitting) that can apply to the expansion of existing
businesses and are not directed solely at the recruitment of new industries.
• Raise awareness of available technical and financial assistance programs, including workforce
development and incentive opportunities.
• Consider establishing a formal internship/apprenticeship program to aid in the transfer of vocational
students to entry-level positions among existing local employers and/or targeted sectors. The presence of
AVT'ECH in Seward should provide a wealth of talent to fill apprenticeship positions.
• Ensure that adequate networking opportunities for local business owners exist. This should include the
opportunity to discuss issues on a topical basis (e.g., workforce, supplier networks, and local taxes and
fees).
• Conduct a regular employer survey as a means for keeping in touch with local businesses and
documenting specific needs or concerns. Conduct personal interviews for key regional employers.
• Review development regulations, ordinances, and approval processes to ensure that the City is
responsive to the small business community.
• Create a small business ombudsman position to serve as the primary point of contact for new and small
businesses in the area, as well as to act as a liaison between the business community and relevant
government departments and commissions.
• Work with the financial community and other economic development groups to improve access to capital,
a critical factor in small business and entrepreneurial development.
• Promote existing small business programs and services. This includes working with area small business
development centers and other relevant organizations to ensure that they market their services to local
businesses and entrepreneurial ventures.
• Develop a `rapid response" strategy for dealing with potential layoffs or closures.
TIP Strategies, Inc. & UACED 16
Port and Commerce Advisory Board Agenda Statement
Meeting Date: July 6, 2010
To: Port and Commerce Advisory Board
From: Community Development Director Christy Terry
Agenda Item: PACAB Discussion and Recommendations
regarding potential Seward Promotions
BACKGROUND & JUSTIFICATION:
The Chamber Director and I met to address the appropriate process for prospects to initiate a
business inquiry. The study noted an inconsistency in the current informal process and
suggested that a formal protocol be developed to encourage consistency and partnership
opportunities. Community Development is also in the process of developing a Community
Profile and Business Inventory and is providing suggestions on necessary features on the City
Website upgrade. Attached for PACAB's review are the work session notes from the
Chamber Board Work Session held on June 23rd discussing the Economic Development
Assessment.
Administration is soliciting PACAB's input on the items outlined at the Chamber
Board Work Session and the City's role in partnering. Also, any review comments will
be shared back to the Chamber Board to foster the partnering efforts between the two
entities.
Additionally, following the Economic Development Report and Work Session, the City
Manager, Council Members, Chamber and Staff held a number of informal meetings to
discuss moving forward on potential promotional/business development opportunities for the
City of Seward. The City Manager's Office has taken the lead on brainstorming and
developing the attached potential ideas and opportunities. Two examples of how these
potential items are moving forward are attached following the comprehensive list.
Administration is soliciting PACAB's input on priorities, suggestions and direction on
potential promotional development ideas. Additionally, how should these endeavors
should be funded and who should pursue these ideas: Chamber, City or private
enterprise?
RECOMMENDATION:
PACAB should discuss and provide a recommendation (via motion) to the Council on
requested items.
Christy Terry
From: Laura Cloward (director@seward.net]
Sent: Sunday, June 27, 2010 4:48 PM
To: 'Dan; 'Deborah A'; 'Linda Rae'; 'Mica VanBuskirk'; 'Nici Murawsky'; 'Ron Long'; 'Susan S%
'Susie'; 'Teresa'
Cc: Christy Terry
Subject: Economic Development Work Session Wrap Up
We met on Wednesday, the 23rd to discuss the Economic Development Assessment and begin to formulate our
recommendations to Phillip/City Council. I'll summarize the discussion below, and add some thoughts specific to
the assessment. Christy Terry and I met the next day to tackle some of the items, and I've included a summary of
that meeting and our recommendations to the Board.
Worksession:
- We must focus on what is unique to Seward; most communities and even the State are facing similar difficulties
maintaining a prosperous economy. What sets us apart?
- We are losing businesses (not entrepreneurs) and that is not sustainable.
- There is a disconnect between the harbor and downtown (philosophical, locational)
- Why is Homer growing? Attitude of City Manager/Harbormaster. Seward has been somewhat stif led by anti-
growth sentiment.
- We need private sector success stories. Those in our video footage may not be representative of 5eward's
businesses.
- How do we know who is struggling? How do we reach out to assist?
- Is the "winter" closure of businesses a lifestyle or financial choice?
- For off-season promotions, who is already doing it and does it require more energy to make it successful;
regarding cost issues, does staying open year-round eat into the profitability of the summer months to the extent
that the year-round business model becomes financially unsound?
-What do we offer off-season to conference -goers? Which comes first, the people or the activities, and are
there locals wanting to grow that off-season enterprise?
- Who are we? What do we look like? What do we want to be?
- Business inventory is critical for knowing what we have and focusing development efforts on what we need; also a
recruiting tool as a business seeking to relocate wants to know what the competitors are and what the
complementary businesses are.
- Consider a "business incubator" of interested parties that mentor and support a new business with support
information online.
- How do we know who is here? The existing customer base with unmet demands - to encourage economic growth to
meet their needs is difference then focusing on knowledge -based industry potential which doesn't necessarily have
an existing customer base here.
- KPEDD Study was just completed and within it, the private sector I.D.'d the City as the biggest hurdle. The
perception needs to be addressed as if it is reality.
- Ombudsman position needs to be able to access file and access the City Manager - needs the clout to do so.
Consider a paid City position.
- Should we consider revitalizing how we look - are there grants for communities that will help us create an
identity?
- The purpose of growth is to make more money and any efforts to prompt growth need to have that result.
- We should compare our business inventory with that of Homer; what do they have that is driving people there
that we don't; commercial fisheries and support services are a huge component.
Meeting with Christy:
1
- Shared the market profile/business inventory from the late '80's. Christy will work on getting the City to update
the inventory in addition to creating a community profile.
- City will be streamlining their support to business section - incorporating more useful information and hopefully
adding on-line resources. To date, City does not offer online forms and resources in order to encourage customers
to come in and see them ... we discussed how critical it is that online applications are available for the savvy business
developer, who will research the process in addition to the community before they make a call.
- Also discussed being able to provide an online business license search, similar to the state, to allow prospective
businesses to research their competitors and complements.
- Discussed the lack of a protocol for business requests and would suggest building on Ron's idea of a business
incubator as follows:
1. City designate the Chamber as their Econ Dev. entity. Paves way for funding and partnership similar to the
2004 Resolution which designated the Chamber as the Marketing Arm of the City.
2. Chamber put together a group of interested private business representatives as the biz. incubator.
3. Requests from new businesses or inquiries would channel through www.sewordforbusiness.com and a separate
phone number at the Chamber. Chamber would partner with community development and the biz. incubator group
to determine the level of support the inquiry needs (info only, one-on-one mentorship, full orientation program).
4. Within the partnership, the City would be responsible for maintaining community profile information, tax
revenue, business info etc for use by the incubator group and in publications the Chamber would create for
inquiries.
5. Chamber would field initial requests and be responsible for publishing the demographic and economic
information.
I think that wraps up both meetings.
Laura
Lama 000ward, 10 M
Executive Director
Seward Chamber of Commerce
Salon 907-224-8051
J�a.,qx F ","
Una
1. Promote Seward's Iditarod Importance - Advertise biking and hiking the famous
trail from its starting point along Resurrection Bay (X Total miles and Y-miles
paved)
2. Promote Seward's Gold Rush Importance - Entryway for gold miners headed to
goldfield at Hope, Sunrise and Iditarod
3. Promote Railroad - Starting point for the first railroad in Alaska
4. Sailing - Great place to sail boat charter available
5. Promote Seward as Alaska's Mural Capital
6. Update Walking Tour & consider replacing with area's wildlife film
7. Sealife Center on Chamber site (Alaska's only Aquarium)
8. Combat Fishing Derby on National News
9. Promote Mt. Alice Trail
10. Mt. Marathon Run on National News
11. Entice and invite Sportswear Companies (North Face, Nike, etc.) to the Mount
Marathon Race
12. Host Mountain and Touring Bike races (invite bike and sportswear Companies)
13. Open Historical Play (High School Students Develop)
14.Open Historic Type Saloon with Musical and Dancing Performances, Alaskan
Poems Recital (Similar to Fairbanks Cripple Creek)
15. Expand Special Offseason Events (Fasching, October Fest, etc.)
16. Improved linkage with Army Recreation Camp especially during the offseason
months
17. Erect informative colorful directional signs
18. Consider offering discounts for residences (some stores already offer military
discounts) and maybe all Alaskans (drivers license check)
19. Consider waiving city sales tax to residents and maybe all Alaskans (drivers
license check)
20. Install electronic event/advertising sign at City Shop
21. Develop email address book to inform area residents of special events, sales, etc.
22. Classic/race car show/rally
23. Power boat race/show
24. Music/Food & Craft Fairs/Festivals (Market Pavilion)
25. Sail boat regatta
26. Offer grants for special events (scaled due to event & anticipated attendance)
27. City cover insurance cost for special events
28. Establish Event Grant Program
29. Open the lagoon for canoeing, fishing (?), etc.
30. Better advertise local movie theater (upgrade to 3D)
31. Sponsor/Host Sports Tournaments
32. Mural Society paints two murals outlining map directory of harbor & downtown
businesses (Top of sign should state "Seward Gateway to Alaska") One could be
placed at the small City park across from the Rail cars (bike shop & Smoke
Shack; other strategically located at the City's RV park)
33. Paint grizzly, moose or something else Alaskan that visitors could follow
downtown
34. Market Seward as Alaska's Wedding Capital Utilize Historic Episcopal Church,
Sealife Center, Pavilion, restaurants for catering, Hotel Seward and Edgewater
within walking distance, rent tuxedos at Urbachs (especially during the winter)
Bride & Groom delivered or ride away in dogsled
35. Construct multipurpose sport complex large enough to host state athletic events
(ice hockey, basketball, etc) plus double as skating rink
36. Initiate marketing campaign to capture cruise customers flying into Anchorage
early (special deals — waive rental car destination drop off fees)
Subject: Implementation of Application Process for XTourism & Special Event
Grant Program
In order to support community activities that generate economic activity in
Seward, the Tourism and Special Event Grant program is being established by
the City Council.
The Grant Program is being initiated to financially assist businesses and
organizations that promote Seward events and generate tourism that benefit
local businesses, merchants and other activities. The application process has
been developed to assist applicants demonstrate their advertising and marketing
plans will increase attendance at their events; thereby, making them more
successful and increasing revenue streams into Seward. The application process
will support the program and benefit the community by:
❑ Funding recurring events that have proven to be community supported, relied
on and enjoyed
❑ Attracting special events through promotion, advertising and marketing
❑ Increasing tourism activities that will provide increased economic benefit to
Seward.
The application process creates accountability and provides requirements to
increase advertising and marketing efforts in order to promote the events that
receive funding. This in turn should have a positive economic impact on the city.
The grant program is based on three levels. Each level has specific requirements
distinguishing it from the others. Each applicant will choose the funding level that
best suits their qualifications to meet the requirements. Event organizers are
welcome to apply at any level they feel they can appropriately justify. Please see
the following chart for a description of each of the levels:
Level 1 - Community Enrichment
The community has come to embrace certain events that occur each year. These
events provide a great contribution to the arts and culture this community has
come to enjoy and support. Without the support of this grant program, these
events would not be able to reach the level of marketing that comes with
additional funding. Applying for funding in this category would require filling out a
Community Enrichment Fund Grant application. The requirements are:
Type of Event
Audience
Required
Achievable Grant
participation
Marketing
levels
Cultural arts
500 — 2000
Modest marketing
$500 - $1500
events
to immediate area
Level 2 - Special Events
Events that are applying for funding under this category would be required to
develop a dynamic marketing and advertising campaign that would demonstrate
an ability to attract participation at the event. Applying for funding in this category
would require filling out a Request for Special Event Fund Grant application and
a Special Event Program Questionnaire. The requirements are:
Type of Event
Audience
participation
Required
Marketing
Achievable
Various
2000 — 3000
Dynamic,
$1,500 - $3,000
thorough,
and detailed
advertisement and
marketing plan
that will increase
tourism
Level 3 - Tourism
Events that are funded under this category will be required to develop a
comprehensive marketing and advertising campaign that demonstrates an ability
to attract participation to the event and economic benefit to Seward and the
region. Events that utilize multiple talents/experiences at different venues and
create packages with other local retail and service businesses, restaurants,
hotels, and bed and breakfasts are considered for this category. Applying for
funding in this category will require filling out a Request for Tourism Fund Grant
application and a Tourism Program questionnaire. The requirements are:
Type of Event
Audience
participation
Required
Marketing
Achievable
Grant
levels
Various
3000 or more
Dynamic,
$3,000 - $7,500
thorough,
and detailed
advertisement and
marketing plan;
comprehensive,
combined efforts
with multiple
services that will
reach multiple
City's in the region
The Guidelines, Applications, and Questionnaires are attached for your
convenience. They are also available at the City Hall, Community Development
Department or on the City's website: http://www.cityofseward.net. The City is
excited about the release of this application process and will be available for any
questions that you have in filling out the new application and questionnaire.
Please contact Clarice Douglas @925.960.4140 or
cmdouglas@ci.livermore.ca.us for assistance.
Attachments: Tourism and Special Event Grant Guidelines
Community Enrichment Grant Application
Special Event Grant Application
Special Event Program Questionnaire
Tourism Grant Application
Tourism Program Questionnaire
FY2011-12 Tourism and Special Event Grant
Guidelines
Purpose: The City Council will allocate funds to provide financial support for
activities associated with promoting the City of Seward events and arts and
cultural events that:
❑ fulfill the community's cultural arts experience
❑ promote Seward as a destination
❑ produce an economic benefit to Seward and the region, and
❑ generate tourism.
Program Guidelines:
1. An event questionnaire and application must be filled out and submitted to the
Special Event Review Board (PACAB, Chamber of Commerce & Community
Development Director) within the dates of the application period.
2. Preference will be given to requests for events that directly benefit businesses
and other organizations and to events that provide enrichment through cultural
arts as well as generate the largest attendance and encourage tourism to the
area.
3. Grants cannot exceed twenty-five percent (25%) of the total event expenses.
Groups must demonstrate that at least seventy-five percent (75%) of the event
expenses are in place prior to submittal of the grant request.
4. Grant payments are issued after the event. Receipts for approved expenses
must be submitted to the Events Coordinator in order to receive the grant
payment.
5. Generally, only one Tourism and Special Event grant will be made to a
sponsor per calendar year.
6. Funds will be granted only for expenses related to the event performance,
including but not limited to advertising, marketing, transportation, safety and
security, rental of equipment, and miscellaneous supplies. Funds will not be
granted for items that will be given away or sold in connection with the event, or
for salaries associated with event planning and administration or for speaker or
guest honorariums.
Due By - September 15, 2011 - No Later than 5:00 p.m.
Application Period: July 15 - September 15, 2011
Community Enrichment Grant Application
Applicant's Name Telephone
Address
Street City
Sponsoring Non -Profit Organization
State
Zip
Name of Event Event Date(s)
Description of Event
Event Location
Previous event dates (if applicable)
Amount Requested
How will grant be used?
Projected net revenue
City contribution to prior events (if applicable)
Estimated attendance Please indicate basis for estimate
Estimated percentage of attendees from out of town
Describe advertising or publicity directed at non -Seward residents
How will the event benefit Seward?
Additional comments
❑ Approved ❑ Denied
Signature - City Representative
Date
Title
Due By - September 15, 2011 - No Later than 5:00 p.m.
Application Period: July 15 - September 15, 2011
Special Event Grant Application
Applicant's Name Telephone
Address
Street City State Zip
Sponsoring Non -Profit Organization
Sponsoring Non -Profit Organization
Name of Event
Description of Event
Event Location
Description of Event
Event Location
Previous event dates (if applicable)
Event Date(s)
Amount Requested Projected net revenue
How will grant be used?
City contribution to prior events (if applicable)
Estimated attendance Please indicate basis for estimate
Estimated percentage of attendees from out of town
Go to Special Event Program Questionnaire
❑ Approved ❑ Denied
Signature - City Representative
Date
Title
Special Event Program Questionnaire
Events must demonstrate an appropriate level of advertising and marketing.
Audience participation of 2000 — 3000 is required for funding in this category.
Grant levels $1,500 - $3,000.
Please describe, in detail, the event for which your organization is requesting a
grant.
How will the event benefit Seward?
Please describe the marketing/advertising support that will be used for this event.
Provide a budget for the marketing/advertising campaign.
Following are the marketing and advertising programs that are eligible for support
through this program:
❑ Graphic artist/design ❑ Permission based email campaigns
❑ Flyer production/distribution ❑ Website marketing that increases
❑ Print advertising (Newspaper/mag) traffic or potential visitors
❑ Radio advertising ❑ Website enhancements that are likely
❑ Television advertising to increase tourism
❑ Direct Mail
What media/marketing vehicle will be the basis of your campaign and why do you
feel this is the best vehicle to promote your event?
Which demographic/lifestyle segments would this marketing campaign be
directed toward? (e.g., entertainment preferences, consumer habits, household
income, age)
Please indicate, if applicable, where you have marketed this event in the past
and how and when this was done.
What tracking mechanism will your campaign include to ID how the customer
heard about the event?
What are the projected attendance totals for this event?
What are you basing this projection on?
What mechanism do you use to track attendance?
What geographic areas will this event attract?
Due By - September 15, 2011 - No Later than 5:00 p.m.
Application Period: July 15 - September 15, 2011
Tourism Grant Application
Applicant's Name Telephone
Address
Street City State Zip
Sponsoring Non -Profit Organization
Sponsoring Non -Profit Organization
Name of Event
Description of Event
Event Location
Description of Event
Event Location
Previous event dates (if applicable)
Amount Requested
How will grant be used?
Event Date(s)
Projected net revenue
City contribution to prior events (if applicable)
Estimated attendance Please indicate basis for estimate
Estimated percentage of attendees from out of town
Go to Tourism Program Questionnaire
❑ Approved ❑ Denied
Signature - City Representative
Date
Title
Tourism Program Questionnaire
Events utilizing multiple talents/experiences at different venues and create
packages with businesses, restaurants, hotels and bed & breakfasts, are
considered for this category. Audience participation of 3000 or more is required
for funding in this category. Grant levels $3,000 - $7,500.
Please describe, in detail, the event for which your organization is requesting a
grant.
How will the event benefit Seward?
Please describe the marketing/advertising support that will be used for this event.
Provide a budget for the marketing/advertising campaign.
Following are the marketing and advertising programs that are eligible for support
through this program:
❑ Graphic artist/design ❑ Permission based email campaigns
❑ Flyer production/distribution ❑ Website marketing that increases
❑ Print advertising (Newspaper/mag) traffic of potential visitors
❑ Radio advertising ❑ Website enhancements that are likely
❑ Television advertising to increase tourism
❑ Direct Mail
What media/marketing vehicle will be the basis of your campaign and why do you
feel this is the best vehicle to promote your event?
Which demographic/lifestyle segments would this marketing campaign be
directed toward? (e.g., entertainment preferences, consumer habits, household
income, age)
Please indicate, if applicable, where you have marketed this event in the past
and how and when this was done.
What tracking mechanism will your campaign include to ID how the
tourist/visitor/customer heard about the event?
Are you planning to package this event with other tourism products? If so, with
who are planning to partner? Describe in detail (e.g., combining efforts w/hotels,
wineries, restaurants, etc.).
How will your event attract or enhance tourist stays, both overnight and day trip
tourists?
What are the projected attendance totals for this event?
What are you basing this projection on?
What mechanism do you use to track attendance?
What geographic areas will this event attract? Why?
City of Seward Special Event Permit
Application Process* DRAFT z
Yes
Application
Complete?
Yes No
Are Location No
and Dates OK?
Yes
Application Review:
Staff reviewing applications
include:
Risk Management (always)
Fire Department (always)
Police (always)
Parks and Recreation (as needed)
Harbor (as needed)
Electric (as needed)
Clerk's Office (as needed)
Public Works (as needed)
Key
Applicant
City ❑
No
Applicant
Advised
Additional Yes
Information
required?
No
Completed
Special Events
Application
Insurance Required?
No I Yes
Permit
Approved:
Department
Head issues
Permit, cony
to parties and
files
Yes
The applicant
is asked to
provide addi-
tional informa-
tion
Yes
No
No
a°F Se
'QCAS�P
No
City Manager
reviews
request and
staff obtain
quote for cost
City Manager
recommends:
`Please review the City of Seward `How to File a Special Event Permit /FAQ' document for a full
explanation and complete list of needed requirements. This flow chart is provided solely as an
additional aide to help illustrate the process.
City of Seward, Alaska
May 5, 2010
CALL TO ORDER
Port and Commerce Advisory Board Minutes
Volume 3, Page
The regular May 5, 2010 meeting of the Seward Port and Commerce Advisory Board was called to
order at 1:10 p.m. by Chair Long.
PLEDGE OF ALLEGIANCE TO THE FLAG led by Deborah Altermatt
ROLL CALL
There were present:
Chair Ron Long presiding, and
Board Members
Dan Oliver
Darryl Schaefermeyer
Paul Tougas
comprising a full Board
Excused:
Absent:
Also were present:
Rob Buck
Theresa Butts
Deborah Altermatt
Jim Lewis, Deputy Harbormaster
Christy Terry, Community Development
Suzi Towsley, PACAB Liaison
Public: Phillip Oates, City Manager
SPECIAL, ORDERS, PRESENTATIONS, AND REPORTS -None
Administrative Report — Jim Lewis, Deputy Harbormaster
• Review of meeting with Coastal Villages Fund Group in April. It was an encouraging visit.
• Following the April 19 impounded vessel sale, 2 of the four vessels that did not sell had been
destroyed and 2 had been allocated for Seward Fire Department for training.
• The Harbormaster is on a research vessel in Antarctica until June 16.
• The Governors budget requests were reviewed.
Community Development- Director Christy Terry
• Community Development had completed its move into City Hall.
The new bus contract had been awarded to First student and those vehicles would be doing the
loop through town starting the 3rd week of May.
There were no Citizens Comments
City of Seward, Alaska
May 5, 2010
Volume, Page
Motion (Schaefermeyer/Butts)
Passed via unanimous consent
UNFINISHED BUSINESS
Motion (Tougas/Buck)
Discussion
Amendment (Altermatt/Butts)
Discussion
Amendment passed unanimously
Main motion passed unanimously, as amended
NEW BUSINESS
Motion (Buck/Butts)
General Discussion
Unanimous consent
Port and Commerce Advisory Board Minutes
Approval of agenda and consent agenda;
Setting a joint work session with Planning
and Zoning Commission for May 11, 2010
at 6:30 pm in the Fire Station to discuss
Plans for development of the South Harbor
Uplands, and replacing the May 19, 2010
PACAB work session with the May 11,
2010 work session.
Keep the scheduled May 19 PACAB work
session in addition to the May 11 session
with the Topic on May 19 of "Revisions to
Title 7.
Adopt Resolution 2010-03,
Recommending PACAB Priorities for
2010 for Council Approval was approved,
as amended. " Review • 4HC
PolieiE'S. (10) Continue recommendations
to the Harbor North East Upland
Development plan.
City of Seward, Alaska
May 5, 2010
Volume, Page
Port and Commerce Advisory Board Minutes
General Discussion and Comments on the establishment of Seward as a U.S. Customs port of entry
and status as a foreign trade zone. PACAB recommended that Director Terry continue researching
the application process for this designation in Seward.
Motion (SchaefermeyerBuck)
General Discussion
Resolution passed unanimously
CITIZEN COMMENTS —
Approving Resolution 2010-04,
Recommending PACAB Revisions to
Seward City Code Title 7, Harbor Code
BOARD AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS -
ADJOURNMENT
The meeting was adjourned at 1:59
Suzanne Towsley
Executive Liaison
(City Seal)
Ron Long
Chair
cylixa Caigxg is a trade deve lcprr:erat fro arra of Gf ..-71d Trade Center .Alm k. Die ploy a m is deli d to assis t
_ kwk az; to idenfill? arad_,.�ursue business in China
China Expands Participations in Alaska's Mining Industry
Agrees to buy 50% of Gold Output from Kensington Mine
28 June 2010
Dear WTCAK Members and Friends of the Center:
Last Monday, we wrote to tell you about China's decision to allow its currency, the Yuan, to float
against a basket of currencies, ending it's peg to the U.S. dollar that it instituted in 2008 as a
response to the global economic crisis.
Today, we want to make note of China's growing interest in Alaska's natural resource
development projects, in this case, its expanding participation in Alaska's mining industry.
On 22 June, Coeur d'Alene Mines Corporation of Idaho, and it's Alaskan subsidiary Coeur
Alaska, Inc, announced a landmark agreement for a Chinese company to purchase and process
gold concentrates produced at the new Kensington Mine, operated by Coeur Alaska Inc, and
located outside of Juneau. China National Gold Group Corporation has agreed to purchase
approximately half of the gold concentrates to be produced at Kensington. The mine, once fully
operational, is expected to average about 125,000 ounces of gold production each year.
According to Coeur, the agreement is the first of its kind between a state-owned enterprise of
the People's Republic of China and a U.S. precious metal mine. Dennis Wheeler, Chairman,
President, and Chief Executive Officer of Coeur, stated, "We are delighted to enter into this major
relationship with China National Gold. This represents a groundbreaking level of business
relations between the two companies as this new, major gold mine begins the initial stage of its
long production life."
China National Gold, a state-owned enterprise, headquartered in Beijing, is China's largest gold
producer and operates nearly 60 mines throughout China. In addition to operating mines, the
company also owns and operates a number of smelters and refineries.
This is the second example of China's growing involvement is Alaska's mining industry within the
past 12 months. In July last year, Vancouver -based Teck Resources Limited, the operator of the
Red Dog Mine on northwest Alaska outside of Kotzebue, announced that it had sold a 17.5%
interest in their company to China Investment Corporation (CIC), China's sovereign wealth
fund, for $1.5 billion. The transaction was described as a long-term, passive, portfolio investment
for CIC.
Teck President and Chief Executive Officer Don Lindsay said, "This transaction will have an
immediate and very positive effect on Teck's balance sheet and represents an attractive opportunity
for Teck to establish a relationship with a major Chinese financial investor, with a deep
understanding of China, the world's largest consumer of our principal products."
The Red Dog Mine is one of the world's largest zinc producers. China is the world largest
consumer of zinc, account for nearly 35% of global zinc consumption.
World Trade Center Alaska (WTCAK) has made China one our central focus areas. China is
currently Alaska's second largest, and fastest growing, trading partner. In 2009, exports from
Alaska to the Middle Kingdom totaled $586 million. Seafood is the major export, followed by
minerals and forest products.
During the past five years, WTCAK has led two trade missions to China and we provide
information and hand -on trade assistance for companies interested in expanding or initiating
business in China.
To find out more about the Center's China -related programs, please do not hesitate to contact us by
phone on 278-7233 or by email: info@wtcak.org
You can also visit to our website: www.wtcak.ora
Best Regards,
Greg Wolf
Executive Director
PACAB MONTHLY BUDGET REVIEW
2010 Budget to date w/expenditure
Advertising
$
250.00
$
250.00
Subscription & Dues
-$850.00 $
750.00
$
(140.00)
Travel & Subsistence
-$729.00 $
450.00
$
(440.00)
Education & Training
-$250.00 $
400.00
$
150.00
Insurance
$
400.00
$
400.00
Supplies
$
990.00
$
990.00
Postage & Fees
$
210.00
$
210.00
Misc
$
-
Totals
$
3,450.00
$1,420.00
Expenditures per month 2010
Jan-10 $40.00
Feb-10 $161.00
Apr-10 $850.00
Description
WTC Luncheon
WTC travel remibursement
WTC membership
Jun-10 $979.00 Business of Green Energy Conference
��,
SBDCALASKA
ALASKA SMALL BUSINESS
DEVELOPMENT CENTER
ALASKA SMALL BUSINESS DEVELOPMENT CENTER
JULY 2010 WORKSHOPS IN SEWARD
*First Lake Facility — 809 2"d Avenue — 2"d Floor Conference Room
July 19 -TWO SBA Workshops: Hub Zone & 8(a) Programs" -FREE
Sam Dickey, Deputy District Director of the U.S. SBA Anchorage will be hosting TWO
SBA workshops on Monday - July 19 in the First Lake Facility at 809 2nd Avenue -
2nd Floor Conference Room. Registration is required for EACH workshop:
http://aksbdc.ecenterdirect.comMelcome.action
The HUBZone program provides access to federal contracting opportunities for small
businesses. Sam Dickey will explain the background of the Hub Zone program — the
history, qualifications, the application process and its benefits to YOUR business. Pre-
registration is required for this one hour seminar is from 1:00 to 2:00 p.m.
Then from 2 to 4 p.m., Sam Dickey will introduce clients to the SBA 8(a) Business
Development Program and walk you through the certification process. This program
is a systematic approach to federal market access and growth to businesses owned
and controlled by individuals who are (or are in locations that are) considered
socially and economically disadvantaged. Separate registration required.
Contact Bunny for questions at inblk(@uaa.alaska.edu or 260-5629
The SBDC is funded in part through a Cooperative Agreement
with the U.S. Small Business Administration.
l u I 2010
July 2010
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August
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September 2010
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Monday
Tuesday
Wednesday
Thursday
Friday
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3
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7:30pm P&Z Meeting
9
10
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7:00'prn City Council
1i:30am
Meeting
16
17
18
19
2
6:30pm+P&Z Work Session
12:00pm PACAB Work
9:00am Social Security
Session
Rep
6:30pmHistoric
Preservation
Meeting
23
24
25
26
2
7:00pm City Council
Primary Election
Meeting
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