|
|
 |
People on the outside of Shee. That's us. For fifty centuries the Tlingits have made a home here, eventually it came to be known as Shee Atika. Two hundred years ago, the Russians christened it New Archangel. In 1867 when the United States paid 7.2 million for Seward's Folly and completed the official transfer ceremony atop Castle Hill, Sitka was already renowned as The Paris of the Pacific. Today, this unique community of 8700 is once again poised for the future, the brooms are ready for the rigging. Sitka has always been respected as a Highliner. Surrounded by snowcapped peaks reminiscent of the Alps behind and Mt. Fuji ahead – the Sound is crystal clear, dotted with a hundred islands, the humpbacks feed, the puffins nest, and the edge of the world lies ten miles to the west where the Pacific swells. Given their history, their perseverance and this spectacular setting, is it any wonder the folks of Sitka are confident about their future. |
When the major employer in town closed it's door in 1993, the forecasts for mass exodus proved to be highly exaggerated. No question the impact of a year-round 19 million-dollar payroll disappearing into the abyss of poli-forestry mismanagement was felt by every segment of our community – however, we bucked the trends and the majority stayed put. For such a small population, Sitka is amazingly diverse in her economic activities. From the health care industry, which includes both city and regional hospitals, to education with three high schools, a university and the oldest 4-year college in the state. From the fishing fleets and seafood processors to the charter boats and the cruise lines. From the boat builders and tour operators to the coffee roasters, pet food manufacturers and resident artists. From tourism, conventions and retail trade to the Coast Guard and National Park Service. From real estate, construction and the Pioneer Home to the new golf course and about-to-be Sawmill Creek Industrial Park.
| OK, I know, you're saying to yourself, he's just painting a rosy picture here, and you and I both can see there are a few squalls on the horizon. You're right. As a municipality, we're dealing with the realities of solid waste disposal, with low-income housing, underemployment and the erosion of our middle class. We are challenged by our remote link with the Alaska Marine Highway System and our desire to establish a 24-hour airport. No one is suggesting an uneventful journey – only that we have confidence the destination is within our means. But you don't have to believe me, I'm the Director of the Greater Sitka Chamber of Commerce, you could say I'm paid to be hopeful – so be it – let me introduce you to some of the people here in town who have their own reasons to be optimistic. |  |
Few would argue the anchor a good education provides, it’s my pleasure to introduce you to John Holst, Superintendent of Sitka Schools: “The future of Sitka is truly promising. Following six straight years of decline, this year the Sitka School District will have a 1.5% increase in enrollment, indicating our economy may finally be turning around. The total renovation of Sitka High School is now under way and will be complete by late August of 2000. Baranof Elementary will be receiving a similar makeover starting next summer. Our school facilities will be in great shape for the first time ever. Tremendous efforts over the last six years have focused resources as never before into the development of student standards and accountability. Our schools are better prepared than schools anywhere in the State of Alaska to help students pass the High School Graduation Qualifying Examinations which begin in 2002. No community can have world class economic development without world class schools! The two go hand-in-hand. Sitka is uniquely positioned to meet the challenge of attracting new businesses that depend on an well-educated work force. That is a strong reason for being optimistic about our future!”
In addition to a school program geared toward local students, Sitka is also fortunate to host native students representing villages throughout the entire state in their own unique facility. Here is Hal Spackman, Director: “Currently, Mt. Edgecumbe High School has the highest enrollment it has experienced since it reopened as a state supported institution in 1985. This trend of increasing enrollment lends credence to the continued niche the school has filled during its past fifty years while operating as a boarding school. It remains a strong alternative educational placement for Alaskan students due to a number of factors currently dominating the educational and financial landscape in this state. Most notably, diminishing oil and state revenues are forcing Alaskan students to seek alternative educational placements. Rural schools are closing. Mt. Edgecumbe High School’s future looks brighter than ever while it continues to serve and innovate as a vibrant member of the statewide educational community.”
Wellness is also big business. Frank Sutton is Vice President of Hospital Services for SEARHC, currently Sitka’s largest single employer: “The Southeast Alaska Regional Health Consortium operates Mt. Edgecumbe Hospital and other regional programs based in Sitka. After assuming management of the regional health program from the Indian Health Service in 1986, SEARHC has made significant increases in the availability and quality of health services to Native people living in Southeast Alaska. The medical staff has grown from 6 physicians in 1986 to 19 today. Although the hospital was built in 1950, major renovation projects are underway to make the facility modern and provide for newer technologies. SEARHC currently employs approximately 690 people in it’s various programs located throughout Southeast Alaska with 480 of those located in Sitka.”
“With two hospitals and a Pioneers Home, health care employs more Sitkans than any other enterprise.” As Chief Administrator, Grant Asay has been steering the course of our city facility: “Sitka Community Hospital has undergone some fairly substantial service changes in the last several years, which have resulted in very strong growth and financial stability for the hospital. Patient volumes and revenue in all service areas have increased dramatically and are predicted to remain strong well into the future. In 1999 alone, Sitka Community Hospital revenue increased by 29% over the previous year. Several new physician specialists have moved to Sitka giving the community very balanced health services and little reason to seek health care elsewhere. The financial outlook for our hospital is exceptionally strong and the contribution to the community will be significant.”
Salmon, of course, have always been synonymous with Sitka. Our commercial fleet and sports enthusiasts count their blessings that NSRAA is here, Pete Esquiro has been its Director since the beginning: “The Northern Southeast Regional Aquaculture Association, headquartered in Sitka, helps provide an unusually high level of stability to Sitka and Northern Southeast Alaska’s salmon industry. NSRAA operates two premier salmon hatcheries and a host of other enhancement projects. In 1999, NSRAA produced salmon yielded over $12,000,000 in ex-vessel value to Southeast Alaskan fisheries. NSRAA continues to be a stable, mature, self-supporting salmon enhancement organization with a promising future.”
Local processors and fisherman have just completed a record year, Charter operators are also smiling. Their ranks are growing steadily with considerable impact on our hotels and restaurants, airlines and fuel dock services. Seth Bone has grown up in Sitka and now runs Kingfisher Charters: “The sport fishing charter business has truly been a growth industry for the past six years. The combination of great saltwater fishing and a scenic city have made Sitka a popular destination for sport fisherman around the world. We in the sport fishing business look forward to continued success in the years ahead as Sitka’s popularity with fisherman flourishes.”
Bankers are renown for their conservative stance, so when not one but two, of our local banks make the move to build new buildings, gotta figure somebody’s feeling good. First Bank recently broke ground for their new facility, VP of Marketing Eric Bjella explains: “Investing in a new branch building is a good indicator of our confidence in Sitka’s economic future. First Bank has always believed in the long term potential of Sitka and the entire southeast Alaska region.” ALPS Federal Credit Union just moved into it’s beautiful new $1.3 million structure in May of this year. As Manager Gary Sterton puts it: “We had been leasing space since our inception in 1960 so this was a huge step for us. Our growth has been outstanding this year. Deposits are up 12%, loans up 6%, number of members are up 9.5% and number of checking accounts are up 20%. Some of the “doomers and gloomers” were very skeptical of our construction project, given that we didn’t have a large industrial or manufacturing employer in town. If you provide a competitively priced product or service that people want and need, in a convenient and friendly atmosphere, your business will prosper. The secret is finding that product/service, finding the employees to support it and putting it all in a great location. What better place than the main arterial intersection in beautiful Sitka, Alaska?”
Speaking of new construction let me introduce you to local architect Robert Fehlberg: “If construction is an indication of a community’s health, and I think it is, Sitka’s economy is strong. The willingness of people to commit their resources to construction has kept two of us busy, very busy, for seven years. We currently have three houses designed and ready to build, they are on the contractors waiting lists of projects, at this point they may not get to them until next spring.” In addition to homes and banks, one of our local grocers is breaking ground for a greatly expanded mall-type development. And for us golfers, the Sitka Golf Association recently celebrated the signing of a city lease for 34 acres adjoining their covered driving range to build a nine-hole golf course. Expected development costs will be around $1.5 million.
One of the projections for post-mill-syndrome included tumbling real estate values. Never happened. Nancy Davis, Sales Associate at Re/Max of Sitka says: “When the announcement of the pulp mill closure came there was concern about how the market would respond. However, due to the backed up demand, Sitka properties survived all the economic downturns. The past several years have been extremely good for sales. Property continues to retain its value, especially view and waterfront parcels which continue to appreciate. All in all, real estate in Sitka has very strong indicators that it will remain strong and viable.”
Speaking of primo real estate – the big news in 1999 was the transfer of the APC mill site property to the City and Borough of Sitka. DEC has completed its long-term environmental assessment and completed its ROD – as the remains of the old facility continue to be demolished we are in the planning process of creating a first class industrial park. Already, potential clients are making their way to Sitka. Todd Saunders, principal of the Sitka Group, is consulting for a client already on their way to establishing a state-of-the-art water bottling facility on the site: “For Sitka Beverage Corporation, the most attractive features of doing business in Sitka relate to the huge potential for growth and return on investment. Additional factors contributing to this potential include growing market demands for bottled water in the U.S. and abroad, a City staff who has gone out of their way to help with the development of this project and an Assembly committed to developing a win-win relationship.” With ten-year workforce projections in the neighborhood of 200 employees, Mr. Saunders says “SBC already has over 50 applications for employment and we haven’t even advertised yet. This gives us confidence that Sitka can provide a labor pool large enough to meet SBC’s needs.” Also on their way to bringing Sitka water to the world is Global Water Corporation with plans for bulk water sales on an international scale. Their recent ballot request for a tidelands lease to build a facility for their water tankers was approved by an overwhelming majority of local voters.
Another entrepreneurial visionary new to Sitka is Denny Crews, President of OmegaSea, Ltd.: “We are a manufacturer of consumer fish products for the home aquarium. Our products are marketed through Pet Wholesalers and Pet Stores throughout the U.S. and Canada. Sitka is a fantastic place to call home for our type of operation. With the strong support of local government and an excellent work force to draw from, we are looking forward to considerable future growth.”
Melissa Thorsen-Broschat of Highliner Coffee Company just installed a new coffee roaster into her operation, she says: “Through the good times as well as the bad times here in Sitka, we have developed a very diversified group of manufacturers that are working together to help each other. Whether it’s helping to promote our commercial fisheries through our locally roasted coffee or working with the local chocolate company or with the mom of five who owns and operates her own local soap company. We feel optimistic in regards to the individual qualities many small businesses have, not only do we help with the promotion of each others products, we help our neighbors and Sitka in the bargain.”
“Things are also looking good for Sitka National Historical Park” says Superintendent Gary Gauthier: “Visits to the oldest national park in Alaska increased for the first time in three years, from 152,500 in 1998 to 187,200 this year. In 1999, the park received an increase of $255,000 for it’s operating budget in addition to $1 million to rehabilitate the historic Priests’ Quarters and Old School. There is also a funding request before Congress to approve $3.6 million for a major remodel of the visitor center in 2000. Another reason we’re very optimistic about the future is the increase in cooperative ventures with the Sitka Tribe of Alaska, the City and Borough of Sitka, Sheldon Jackson College and other local entities.”
One of the toughest jobs around the Tongass these days is making a living from the National Forest. Dan Parrent is a Wood Utilization Specialist for the Wood Products Development Service who still somehow manages to smile: “Sitka is fortunate that it’s overall economy was able to diversify following the closure of the pulp mill in 1993, and diversify in a way that does not rely on Federal (U.S. Forest Service) timber sales or forest products manufacturing. Whereas the forest products industry is still a major, though declining, component of the economy in many towns in Southeast Alaska, any wood products industrial development in Sitka would only add to the matrix of a diversifying local economy.”
My allotted time is running out and I still haven’t told you about Allen Marine, 1999 Alaska State Chamber of Commerce Business of the Year. Not only do they run an impressive tour operation throughout the summer, they are currently building 4 aluminum high-speed passenger ferries for the largest passenger ferry system in the U.S. We haven’t looked at the enthusiasm coming from Sitka Tribal Enterprises, the economic arm of the Sitka Tribe of Alaska, with their own Tribal Tours and Community House. Then there’s Shee Atika Incorporated, with several properties, including the very successful Westmark Shee Atika Hotel, located here in town. Also untouched is the success evident in our local marine tug and barge operators, the extensive construction just completed in our harbor system, the new Business Incubator being started up by the Workforce Development Center, the expanding convention business, the many talented local artists and authors… You’ll just have to come and see for yourself.
Thanks for joining me on this brief walk around town, maybe now you can understand why I’m feeling so optimistic. All of the folks you’ve just met were kind enough to take time out of their busy schedules to share some of their feelings about the future here in Sitka. I thank them also. The tide is rising in Sitka – ‘tis time to untie your boats – “knock ‘em dead by golly”.
October 18,1999
Greater Sitka Chamber of Commerce
P.O. Box 638
Sitka, Alaska 99835
907-747-8604