2014 Annual Reportskagwaydevelopment.org/.../02/SDC-2014-Annual-Report.pdf · 2015-02-02 · 2014 Annual Report MISSION The Skagway Development Corporation (SDC) endeavors to enhance

2014 Annual Report

9th

Avenue & State Street

P.O. Box 1236

Skagway, Alaska 99840

Phone/Fax: 907-983-3414

Email: [email protected]

www.skagwaydevelopment.org

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________________________________________________________________________ Skagway Development Corporation Page 1 2014 Annual Report

Contents

MISSION .......................................................................................................................................................... 2

WHAT DOES SDC DO? .................................................................................................................................. 2 HOW CAN SDC HELP? ................................................................................................................................... 2

GOALS ............................................................................................................................................................. 2

FROM THE PRESIDENT .............................................................................................................................. 3

FROM THE EXECUTIVE DIRECTOR ....................................................................................................... 4

ADMINISTRATION AND ORGANIZATION............................................................................................. 6

BOARD OF DIRECTORS ................................................................................................................................... 6

TRAININGS ..................................................................................................................................................... 6

ORGANIZATIONAL CHART ...................................................................................................................... 8

BOARD OF DIRECTORS & STAFF ............................................................................................................ 9

DIRECTORS’ RESUMES .............................................................................................................................. 9-11

PARTNERSHIPS AND COLLABORATIONS .......................................................................................... 12

MEMBERSHIPS ............................................................................................................................................. 13

GRANT ACTIVITY - 2014 ........................................................................................................................... 13

BUSINESS AND ECONOMIC DEVELOPMENT ..................................................................................... 14

SKAGWAY BUSINESS RESOURCES (RURAL ENTREPRENEURSHIP) ................................................................ 15 BUSINESS ADVOCACY .................................................................................................................................. 16 TYPES OF ASSISTANCE PROVIDED ................................................................................................................ 17 ECONOMIC PROFILE & INVENTORY ............................................................................................................. 18 PORT MARKETING ....................................................................................................................................... 18 MINING UPDATES ........................................................................................................................................ 19 WEBSITE ...................................................................................................................................................... 21 WINTER EMPLOYMENT AND COMMUNITY VITALITY ................................................................................... 21

SDC-COMMUNITY DEVELOPMENT SERVICES (SDC-CDS) ............................................................ 23

FISCAL SPONSORSHIPS ................................................................................................................................. 23 COMMUNITY EVENTS ................................................................................................................................... 24 ENDORSEMENTS ........................................................................................................................................... 25

FINANCIAL REPORT ................................................................................................................................. 25

OPERATING EXPENSES .................................................................................................................................. 26

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MISSION The Skagway Development Corporation (SDC) endeavors to enhance and diversify the

year round economy of Skagway, Alaska. Furthermore, SDC maintains that the quality of

life for the residents of Skagway should be fundamentally improved by its work.

What Does SDC Do?

The Skagway Development Corporation serves the business community of Skagway as an

advisory, administrative, and technical resource for the purpose of creating ideas and

developing initiatives that allow the year-round economy of Skagway to grow and develop

into a sustainable process, creating wealth for the community at large.

How Can SDC Help?

The Skagway Development Corporation has become an effective economic planning and

development organization. SDC is known as the organization, in Skagway, to seek out

when one would like to start a business, expand an existing business, or need assistance in

writing business plans, exploring alternative financing options, site selection, developing

marketing strategies, and with writing grant proposals.

GOALS SDC’s main goal is to create an effective team approach for economic growth and

expansion, which targets the needs of the community. This is accomplished by utilizing a

multi-faceted approach to economic development. This approach allows the Board and

staff to draw from a wide range of tools and allows for greater success. Some of these tools

include:

marketing the community, its facilities, and assets;

assisting the business community with its funding and training needs;

encouraging the development of local entrepreneurial capital;

actively recruiting firms and helping them to make informed business location

decisions;

advocating on behalf of the business community and its individual

members;

creating an environment which cultivates and nurtures the entrepreneurial

spirit; and

providing technical assistance that the business community requires to

enhance and expand the existing business base.

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FROM THE PRESIDENT

Although SDC faced a major change half way through 2014, the Corporation was

still able to accomplish much success. Executive Director for the past six years, Trisha

Sims, moved on to new adventures with her family in Washington State. With the loss of

Trisha came the gain of new Executive Director, Juliene Miles. Juliene has been a great

addition to the Corporation and SDC is excited to have fresh perspectives and new ideas

for our work.

Throughout this transition, SDC has seen continued success with our business assistance

program, Community Development Services, fiscal sponsorships, and grant writing

assistance. SDC-CDS again took part in fun community events such as the annual

Buckwheat Ski Classic, Home Brewer’s Festival and the Yuletide Ball. We also take pride

in the fact that we were able to assist in securing grant funding for the final phase of the

Upper Dewey Lake Trail Restoration Project. Other Municipal projects we’ve assisted

with in 2014 include funding research for both the Public Safety Facility and Senior

Center. We look forward to further partnership with the Municipality as these projects

move into development phases seeking grant writing assistance.

The SDC continues to network within the community, assessing the future needs of the

Municipality and local businesses. Throughout 2014 we were able to bring free business

and organizational resources to the community and strive to add more free or low cost

classes in the coming years. Furthermore, we continue to focus on the development of

year round activities and resources within the community Skagway.

The Skagway Development Corporation and our board members bring a great deal of

small business expertise to our organization and the community as a whole. A debt of

gratitude is owed to the board members for their countless volunteer hours donated to

SDC’s efforts. Without such devoted board members, the Corporation would not be able to

achieve its many accomplishments. SDC has been able to stay in line with our budget

while providing important services to the community of Skagway. I am looking forward to

even more successes in 2015 and the coming years!

Sincerely,

Michael R. Healy

Michael R. Healy

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FROM THE EXECUTIVE DIRECTOR

Having joined the Skagway Development Corporation as Executive Director in June of

2014, I am thrilled at the opportunity to assist in the further development of the community

I call home. My first six months in the position have already proved to be rewarding,

especially with the recent news of the Senior Ad Hoc Committee’s acceptance into the

Rasmuson Foundation’s pre-development assistance grant program, as that was the first

Municipal project I had the pleasure of assisting with. I am elated for this committee and

look forward to assisting them further as this important project moves forward.

The Board of Directors at SDC is a versatile group, each member bringing a host of unique

expertise to the Corporation. It has been exciting to work with a Board of such committed

and passionate community members. They volunteer much time and effort into SDC,

consistently bringing new ideas to the table which help me to better execute the mission of

our organization. I am confident that 2015 will bring many exciting new ideas, practices,

and programs to SDC, helping us to become even more effective in our important work

within the community of Skagway. We look forward to blazing ahead with a holistic

approach to economic and community development, where not just jobs and wealth are

created within Skagway, but where the quality of life of our residents is also taken into

consideration.

Following this approach, SDC utilizes our Community Development Services (CDS)

organization to fulfill our role in improving the quality of life for our community’s

residents. As a 501(c)(3) organization, SDC-CDS allows us to provide a wider range of

services to our community members and various community organizations that foster

community and economic development within Skagway. While SDC-CDS has proved to

be successful in many areas, we continue to explore the potential this side of our

organization has to offer.

Our approach for fostering economic development within Skagway is a very rewarding

aspects of my work thus far with SDC. This includes assisting community members in

their entrepreneurial adventures, be it opening their first business, expanding their current

venture or assisting with marketing local businesses and artisans. I feel very fortunate to

have been given the opportunity to be a part of growing our local economy and am very

excited to see what SDC can accomplish in the future.

Some of the accomplishments for SDC in 2014 include:

Facilitated the Small Business Saturday Passport Event which encouraged holiday

shopping at locally owned businesses, thus supporting our local economy.

Continued marketing efforts for the Port of Skagway, included sending the port and

harbor brochure out to many stakeholders and potential users.

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Assisted in writing and submitting a successful grant request for pre-development

assistance with the Senior Center Project through the Rasmuson Foundation.

Re-kindled our relationship with the Southeast Conference, which enables SDC to

have a better understanding of development in Southeast Alaska and has provided

many networking opportunities for Skagway and SDC.

Participation in the International Economic Development Council (IEDC).

Participation in the AKsourcelink program.

SDC-Community Development Services continued to provide a meaningful service

to local community organizations and events by managing funds as well as

facilitating community events.

Continued to assist new business owners with development ideas, research, funding

alternatives and achievement of their goals.

Here at SDC we are eagerly looking forward to the future. We are excited to continue

being an advocate for and a participant in community development: not just of the

community’s organizations and residents, but also ensuring that its infrastructure

development continues to keep pace, allowing for the maximum potential for future

growth. With new education and training, we will be exploring new ideas, practices and

programs that will help us to expand our efforts in 2015. SDC staff and its Board of

Directors are committed to continuing our mission and doing what we can to provide

economic opportunity to those in Skagway and those wishing to call Skagway home!

Juliene Miles

“Economic development can be described in terms of objectives. These are most commonly

described as the creation of jobs and wealth, and the improvement of quality of life.

Economic development can also be described as a process that influences growth and

restructuring of an economy to enhance the economic well being of a community ...”

International Economic Development Council

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ADMINISTRATION AND ORGANIZATION The SDC underwent a big change in administration half way through 2014 when Executive

Director, Trisha Sims, stepped down. Having been with SDC for 6 years, this was quite a

loss for the corporation. However, the Board is positive about the fresh perspective that

comes along with change. New Executive Director, Juliene Miles, took over the position

on June 1, 2014 and has been warmly welcomed by our partners and collaborators at the

Municipality and within the community. Juliene first visited Skagway 4 years ago and

immediately fell in love with the town. Her beginnings in Skagway were as a seasonal

worker, but she and her husband quickly became year-round residents. She joins the SDC

with a background in Education & Sustainable Development. Juliene is an energetic,

creative, and socially minded person who is dedicated to working with individuals and

groups seeking to build a healthy community.

The Skagway Development Corporation (SDC) continues to fund its operations through a

generous administrative grant awarded each year from the Municipality of Skagway

(MOS). The MOS continues to be a partner and collaborator in SDC’s efforts to enhance

and diversify the year round economy as we both work towards the greater good of our

community.

Board of Directors

This year we continued with quarterly meetings and work sessions. The board’s

commitment to these meetings, as well as to the corporation’s mission, is to be

commended as it has enabled the staff to focus its efforts on what is important and

effective. The board’s breadth of experience is an asset not only to the corporation but to

the community as a whole.

The organization continues to grow in complexity and with that comes an increase in the

administrative and regulatory requirements that need to be met. This is all still being done

with a staff of one full-time employee.

Training

In the fall of 2014 the new Executive Director attended a Professions Grant Development

Workshop put on by the Grant Training Center. This training helped to gain the necessary

skills for writing an effective grant proposal. When time and funding allows, the Director

participates in educational webinars put on by our various partners and member

organizations. In 2014, the Executive Director participated in the following webinars:

Sustainable Economic Development – Hosted by the International Economic

Development Council (IEDC), this webinar gave insight into how economic

development can play a role in sustainability and environmental stewardess.

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How to Write a Business Plan – Hosted by AK Source Link, this webinar covered

the basics of writing a business plan. Valuable knowledge and resources were

gained which will contribute to SDC’s Small Business Resource Center.

Grant Writing – Hosted by ECivis, our grants management system, this webinar

provided important information about grant writing, when to apply/not to apply for

a grant, as well as planning your grant strategy.

Searching for Grants – Hosted by ECivis, our grants management system, this

webinar helped the Director learn how to research and save grants, set up grant

alerts and maneuver the website.

In January of 2015, the Director will go to Anchorage to attend the Basic Economic

Development Course (BEDC), providing education in comprehensive economic and

community development catered to fit the unique opportunities and challenges of Alaska.

This is one of several accredited courses offered through the International Economic

Development Council or IEDC which are attended by Economic Development

organizations from across Alaska. These trainings provide fantastic networking

opportunities and educational experiences. We look forward to participating in training

opportunities throughout 2015 in order to enhance our expertise and services to the

community.

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Organizational Chart

SDC - Community Development Services 501(c)(3)

Board of Directors

Skagway Development Corporation 501(c)(6)

Board of Directors

Executive Director

Potential Administrative

Assistant

Skagway Development Corporation & Subsidiaries

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Board of Directors & Staff

Skagway Development Corporation

Board of Directors

President – Michael Healy

Vice-President – Cori Giacomazzi

Treasurer – Paul Taylor

Secretary – Julene Brown

Member-at-Large – Christine Ellis

SDC – Community Development Services Board of Directors

SDC Board of Directors

Executive Director

Juliene Miles

Directors’ Resumes

PRESIDENT: Michael Healy, Owner – Skagway Brewing Company, Healy

Construction, LLC and Healy Rentals, LLC

Prior to coming to Skagway, Mike was a general manager for a medium sized hotel chain

in the Midwest. He also has worked as a bookkeeper for several smaller motels. Mike

graduated from Black Hills State University in 2004 with a degree in Business

Administration, specializing in Small Business Management.

Mike came to Skagway in 2003 when he and his partners opened Glacial Smoothies &

Espresso, serving hot and cold beverages. The business quickly expanded, becoming a

year-round operation serving food & beverages. Known to locals as “The Smoothie Shop”,

he has since sold this business which is still a successful year round establishment. He

went on to purchase the Skagway Brewing Co., which he re-opened in 2007 and has since

become one of the most popular gathering places in Skagway among tourists and locals

alike. Along the way, he has started a construction company, building rental properties for

seasonal and year-round community members.

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VICE-PRESIDENT: Cori Giacomazzi, Former Business Owner - Wandering

Wardrobe; Current Business Owner – Lillith Moon Cori became a resident of Skagway in 2000. She holds a BSC in Human Ecology and

majored in Textiles, Clothing, and Culture. She is currently the curator of the Red Onion

Brothel Museum as well as the costume designer and head of wardrobe for the Red Onion.

Cori has also made costumes for the Days of 98 Show. Since 2000 she has created and

produced a bi-annual fundraising fashion show. In 2007, Wandering Wardrobe, a ladies

clothing boutique featuring one of a kind clothing, corsets, and jewelry as well as “pre-

loved” and vintage clothing was launched. She decided to close the doors to her shop last

year as she looks to focus more on the creative aspects of her business and reorganize. She

currently operates an Etsy shop, Lillith Moon, in addition to attending various craft bazaars

and expos around the north with her hand-made textiles.

TREASURER: M. Paul Taylor, P.E., Owner - Pacific Contract Company LLC

Paul Taylor is a registered professional civil engineer and business owner. He has a

Master’s Degree in Civil Engineering from the University of Alaska Fairbanks and is

licensed to practice in Alaska and the Yukon. He holds specialized education in the fields

of labor negotiation and arbitration and finance from the University of Michigan Ann

Arbor.

Paul has provided exceptional professional engineering and project management services

to clients throughout Alaska and the Yukon for over thirty years on projects as diverse as

conceptual planning of harbors and railroads; design of highways, airports and marine

docks and railroad operation. Pacific Contract Company specializes in project planning,

permitting, design, budgeting and project construction management.

SECRETARY: Julene Brown, Owner - You Say Tomato Natural Foods

Born and raised in Skagway, Julene has worked for the Municipality of Skagway as the

Librarian for over 16 years. In 2006, she bought You Say Tomato, a natural foods store,

and moved the business to a larger building expanding the variety of inventory and

services offered. Julene has served as an elected member of the Skagway School Board,

member of the Skagway Child Care Council, officer positions in the Fraternal Order of

Eagles Auxiliary, and currently on the Municipality’s Solid Waste Advisory Committee.

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MEMBER-AT-LARGE: Christine Ellis, Owner - Pine Country Yard and Garden

Chris was born and raised in Skagway and ventured south to attend college for business.

She also raised three children in Skagway and is just now experiencing an empty nest. She

served as the Skagway School Board President for twelve years. Chris is busy during the

summer months with her landscaping and plant business, Pine Country Yard and Garden.

EXECUTIVE DIRECTOR: Juliene Miles

Juliene graduated from the University of Hawai’i at Manoa in 2005 with a Bachelor’s

degree in Spanish. In 2009 she received a Master’s degree in Education for Sustainable

Development from Portland State University. Prior to coming to Skagway, Juliene worked

in Educational Outreach for Recycling and Composting in the Portland and Seattle area.

She first came to visit Skagway in the summer of 2010 and instantly fell in love with the

community, rich history and beauty of the region. From that moment, she and her now

husband began plotting for a new life in Skagway. Come spring of 2011, they left Seattle

and headed north, to Skagway. For her first year, she was a seasonal worker, but quickly

became a year round resident. Prior to joining the Skagway Development Corporation, she

worked at the Skagway Brewing Company, a year round establishment in Skagway, which

provided the opportunity to get to know many of the local residents. Through the efforts of

the SDC, she is excited to share her skills and knowledge with the community of Skagway,

helping to benefit it economically, socially and environmentally.

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PARTNERSHIPS AND COLLABORATIONS Local

Municipality of Skagway

o Senior Ad Hoc Committee

o Port Development Commission

o Public safety Facility Committee

o Solid Waste Advisory Committee

Skagway Convention & Visitors Bureau

Skagway City School

Dahl Memorial Clinic

Skagway Chamber of Commerce

Skagway Fraternal Order of Eagles, Aerie #25

Taiya Inlet Watershed Council

Skagway Marathon Club

Garden City Market

Skagway Home Brewers Club

Skagway Yuletide Committee

Skagway Organic Garden Society

Skagway Marketplace

State

Denali Commission

Rasmuson Foundation

Juneau Economic Development Council

Haines Visitors Bureau

Alaska Economic Development Group

Alaska InvestNet

AIDEA

SEAtrails

AKSourcelink

National

US Small Business Administration

The Dolly Parton Imagination Library

Small Business Saturday

Lemonade Day International

International Economic Development Council (IEDC)

Yukon Territory Government, Department of Economic Development

Yukon Territory Government, Port Access Study Group

Yukon, British Columbia Chamber of Mines

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Memberships

Skagway Chamber of Commerce

The Foundation Center

International Economic Development Council (IEDC)

The Grantsmanship Center

Foraker Group

Grantstation

Southeast Conference

AKSourcelink

GRANT ACTIVITY – 2014

Early 2014 brought news of a successful grant proposal from a 2013 funding request

completed in collaboration with the Municipality of Skagway (MOS). The MOS was

awarded $49,996.00 from the Division of Natural Resources, Recreational Trails Program

for completion of the final phase of the Upper Dewey Lake Trail Restoration Project.

Due to administrative changes throughout 2014, SDC was not able to write and submit

many grant proposals. Only one grant proposal was prepared and submitted, in

collaboration with the Municipality of Skagway. This request was submitted on September

3, 2014 to the Rasmuson Foundation, seeking their Pre-Development Assistance Grant for

the planning of the Skagway Senior Center. Our collaboration with the Senior Ad Hoc

Committee was successful and pre-development assistance from the Rasmuson Foundation

should begin in March of 2015. It is expected that funding for pre-development assistance

will total close to $40,000.00.

Although not many grants were written this year, SDC did research multiple funding

opportunities in 2014 on behalf of community members and the Municipality of Skagway.

Through this research, several grants have been pinpointed for possible submission in

2015. Specifically, grants have been identified for the Public Safety Facility and Senior

Center Municipal projects, as well as the Skagway Performing Arts Initiative (renovation

of the Eagles Theater) FOE #25 project.

SDC is very aware of the importance of writing only those grants that have the greatest

chance of success. Grant research and writing, in general, is a time consuming practice that

more often than not sees applications denied, rather than awarded. To this end, it is vital

that this energy be spent on grants that will have the greatest impact on the community and

meet the stringent criteria of the grant proposal within an adequate time frame.

SDC is continually looking for grants that will meet community needs while also looking

for community needs that may be met by existing grant programs. This is becoming more

and more difficult as many State and Federal organizations have less and less funding for

grant awards.

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BUSINESS AND ECONOMIC DEVELOPMENT Fortunately, Skagway’s visitor industry has remained strong over the past several years

and projected cruise ship numbers suggest that it will continue to remain so. However, the

visitor industry is largely seasonal, boosting Skagway’s economy chiefly thru the summer

tourist season. It is SDC’s hope, that in addition to our summer visitor economy, we can

obtain additional, year-round, economic growth through other sustainable industries such

as those suggested in the Gateway Project and the mining industry to the north.

SDC sees a bright economic future for Skagway. Our location at the terminus of the Inside

Passage, paired with our connection to the Alaskan-Canada Highway via the Klondike

Highway, provides Skagway with a competitive advantage as a shipping port. With

essential infrastructure development taking place, such as the Gateway Project, Skagway is

placed in a strong position for additional growth, not just in summer, but in the shoulder

seasons and winter. Focusing on capital projects such as this will bring Skagway’s

infrastructure up to a level where it needs to be in order to compete equitably with other

regional communities, and to continue to be a draw for new families and business owners.

SDC has been actively pursuing recruitment opportunities while still placing an emphasis

on developing home grown business ventures. As Robert Shively states “The

entrepreneurial spirit is alive and well in small towns”i and SDC continues to expend

energy on ensuring that this spirit has an opportunity to flourish in Skagway. Our capacity

building efforts for local entrepreneurs continues to be well received by those who utilize

our services.

As the SDC’s programs have matured over time, it has endeavored to focus its efforts to

those that will have the greatest opportunity of success. This is a trial and error effort that

is constantly evolving: something that did not work before may now be a useful tool. As

we undertake further training and conduct additional research we find that the tools

available to economic development organizations are many and varied in nature. Choosing

those that we are able to use and those that are useful in Skagway’s circumstances is at

times a difficult process.

SDC uses a multi-faceted approach to economic development in Skagway. By diversifying

the community’s development tools we have been able to garner results in many different

areas, whereas a single approach may not have reaped as many results. The aim is to

continue diversifying the tools that we use to better capture results in areas not currently

being pursued. The greatest challenge to this is the lack of resources available to SDC, and

in some respects, the community as a whole. With the aid of the updated 2020

comprehensive plan, new contacts, energetic board members, and personnel, SDC is

looking forward to 2015 and future economic opportunities available for our community.

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Skagway Business Resources (Rural Entrepreneurship)

According to the U.S. Small Business Administration, small business plays a significant

role in the US economy. This can be demonstrated as follows:

Represents 99.7% of all employers;

Employs half of the private sector workforce;

Pays 45% of total US private wages;

Creates roughly 70% of net new jobs;

Creates roughly 50% of non-farm private GDP.

SDC’s program of providing the business community technical assistance and capacity

building for those budding entrepreneurs has been one of the more fruitful aspects of the

SDC work program. People requesting assistance have recognized that the resources SDC

makes available here in Skagway are invaluable to their business ventures. They

understand that these and other services are available through the Small Business

Development Center (SBDC) and Small Business Administration (SBA) offices in Juneau,

but to have those resources here in Skagway often means the difference between utilizing

them or not. It is important to note that while the SBDC and SBA are excellent resources

for general business principles they lack an intimate knowledge of the Skagway economy

and business climate.

SDC does its best to ensure that the information and services available are those that best

fit the needs of the business community in Skagway. It is important to recognize that SDC

is but one partner in regard to our clients. We refer our clients to other entities when we

feel our clients are better served by them. We continue to work with them on the more

specific local issues and provide an opportunity for them to come face to face with their

questions which are usually answered immediately. In an effort to streamline our business

assistance services in 2014, we created the “Skagway, Alaska: Business Start-up Kit”.

Acting as a general guide to helping one start a business venture in Skagway, this kit

includes a wealth of information as well as essential contact information for organizations

in Skagway and across the state of Alaska.

SDC continues to base its assistance on the “Enterprise Facilitation” model created by

Ernsto Sirolli. This model is a one-on-one approach to business development which

provides free, confidential, business management, and networking advice to aspiring

entrepreneurs and existing businesses. This is done by linking clients to programs and

resources offered by development organizations and professionals; testing the personal

motivation and skill of the client; and developing the client's capacity to assess their own

management strengths and weaknesses. The service is available for free, and in confidence

to any local individual with an idea for starting or expanding a business.ii This model is

particularly suitable to small, rural communities such as Skagway because of the inherent

‘closeness’ of the client base and as such, has proven to be a successful model in Skagway.

The role that the facilitator plays is one of steering the boat rather than rowing it.

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Business Advocacy

The role of SDC as an advocate for local businesses and organizations is one of our

greatest pleasures. It is an enjoyable role and one that is vital to ensuring that the voice of

Skagway’s business community is heard in the places that make the decisions affecting

them. These places include the legislature, financial institutions, and other business related

entities.

Many people do not have the time, skills, or resources to effectively advocate on their own

behalf. When SDC sees an opportunity that does not conflict with its core mission then it is

our duty to support our community in the most effective means possible.

As businesses interact with institutions outside of Skagway they often need help in

explaining the economic base and business climate here because many outside of Skagway

do not fully understand the mechanics of our economy. Skagway businesses are often

discounted because of this and SDC tries to bridge the gap between the two parties.

Advocacy efforts for 2014 focused on:

Local residents (anonymous) - Discussed new business opportunities and the

necessary procedures and preparation needed to succeed.

Website Inquiries- SDC received several websites inquiries in regard to business

start up ventures in the Skagway community as well as inquiries on the utilization

of the Ore Terminal and Port of Skagway.

Summer ventures (anonymous) – Many people approached SDC for funding and

start up services. SDC met many times to discuss business plans, permitting,

bonding and feasibility.

Grant Writing Services- Many community members, Municipality of Skagway

representatives and businesses approached SDC regarding grants available for the

community, clubs, parks, the school and individual businesses.

A letter of support was written supporting the Senior Ad Hoc Committee’s

proposed project to build a senior center in Skagway.

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Types of Assistance Provided

As the Director, the opportunity to meet and assist local and outside entrepreneurs through

the many aspects of starting, operating, and/or expanding their businesses is one of my

favorite duties. I aim to provide information to them while keeping their ideas and plans in

total confidentiality. It’s always a joy to quietly watch their success and be of additional

assistance in any way.

Opportunities also present themselves to entice outside businesses on the benefits of

starting or bringing their business to Skagway. The presence of local entities to fulfill this

need should not be underestimated. The range of requests from people is broad and

includes, but is not limited to, assistance in naming businesses; state and local business

license assistance, general discussions on ideas for new businesses; help with writing

business plans; grant writing; help with securing commercial and non-commercial

financing; and firms requesting relocation assistance in locating retail and commercial

leases, as well as housing. There have been other instances for assistance but these tend to

be the most common.

Most of the requests contain specific questions about the community and there is a distinct

advantage of having these inquires addressed by a local entity. Many outside of Skagway

do not fully understand the structure of the economy in Skagway and the stakeholders

involved. Assisting these clients would be very difficult for an outside entity to do well.

The demand for such services indicates the need for a local entity to provide the types of

assistance that the business community is requesting.

Below is listed the types of assistance provided and from where it was generated. For the

purposes of recording – only the first visit or request for assistance by a client is recorded

all subsequent visits related to the initial request were not recorded. It should be noted

that, due to the change in administration at SDC, these numbers do not fully reflect the

total number of inquiries for 2014, as the current Executive Director can only confirm the

inquiries that have taken place since June 1, 2014.

Stage of Business Number of Inquiries

Pre-Venture 8

Business Enhancement 4

Business Expansion 2

Buying a Business 1

Selling a Business 0

Web Inquiries

Walk-Ins

45

8

Grant Research/Writing Assistance

Port of Skagway Assistance

5

10

TOTAL 83

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Economic Profile & Inventory

In 2005 SDC compiled the first economic profile and inventory developed for Skagway in

some time. This document provides in depth economic and community information.

Marketing Skagway’s attributes to a wider audience requires making detailed information

readily available, especially in the current technological climate. This information should

include details about infrastructure, demographics, utilities, education, economy, health

care facilities, housing, transportation facilities and services, recreational opportunities,

communications etc. This is vital to site selection consultants, business owners and

entrepreneurs considering locating or re-locating to Skagway.

The other important role of economic inventories and profiles is that they help local

development, business and government agencies identify strengths, weaknesses,

opportunities, and threats to further development. Armed with this information the

Municipality, Chamber of Commerce, SDC, and other interested entities will be better able

to develop appropriate strategies to encourage future develop in line with the wishes of the

community. The inventory underwent a major edit in 2006 and was re-formatted for easier

navigation. This 2nd edition has been posted to the SDC website and continues to receive a

considerable number of hits.

In the last half of 2014, SDC began the endeavor of updating this important document, as

much has changed over the last eight years. We expect to have an updated version of the

Skagway Economic Profile & Inventory in early 2015. The updated document will not

only provide an opportunity for SDC to gage growth in community and economic

development over the past eight years, but will also be a valuable tool, when paired with

the Municipality of Skagway’s 2020 Comprehensive Plan, with which to use as a guide for

future planning efforts into 2015 and beyond.

Port Marketing

SDC continues to distribute the port brochures to mining organizations, companies and

government agencies to keep the Port of Skagway in the spotlight. We have also gotten

numerous inquiries from prospective companies who have found Skagway port

information on our website at www.skagwaydevelopment.org. SDC has received inquiries

from mining companies, logistics companies, and alternative energy researcher companies

during this past year.

The port and waterfront of Skagway have traditionally been the lifeblood of the

community from its earliest days. Skagway’s economic activity and development is

http://www.skagwaydevelopment.org/

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centered on the waterfront. With that in mind, it is vital to continue to market the port and

its facilities to stimulate additional economic activity; especially those which provides year

round jobs and other value-added opportunities.

There are two inherent strategies that must be applied to port marketing. The first is

transshipments of products from the port to outside markets and the second is the

utilization of the port for transshipments through Canada. The stakeholders in these two

strategies are very different.

The first strategy remains focused on efforts to targeting Yukon and BC resource based

producers and organizations. These tend to be mining companies and organizations

including mining related trade shows, individual mining companies and logistics firms. As

mining activity increases in this region, Skagway is well placed to be the major

transshipment port of the region.

The second strategy focuses on targeting Southeast fishing entities including gill-netters,

aquaculturists, fishermen’s organizations, southeast dive fisheries, seafood marketing

organizations, as well as fishing and seafood consultants. Skagway is already part of the

southeast Alaska fishing distribution network but our route is generally underutilized. The

goal to increase the pounds of fish transshipped through Skagway annually should be one

that can easily be attained. In years past, we put forth much effort to promote the benefits

of this route and will continue to make vital connections with regional organizations to

meet this goal.

Mining Updates

The Yukon Territory had been experiencing unprecedented activity in mining exploration

and development and had been dubbed “the new Gold Rush”, but this seems to have

declined considerably over the last several years. The CBC News reports that Yukoners

working in the mineral exploration industry are facing a gloomy outlook as exploration

spending in the Yukon was down by 10% in 2014 and is not expected to be much better in

2015. Samson Hartland, executive director of the Yukon Chamber of Mines said that the

Yukon’s mining industry is impacted by global markets, making investment capital hard to

come by.

Outlook for Mining

Following an anticipated increase in 2014, exploration spending is forecast to

decline in 2015.

Development expenditures were expected to decline slightly in 2014, before

increasing slightly in 2015.

The value of mineral production was forecast to decline in 2014, rebounding to

about $500 million in 2015. Source: Yukon Economic Outlook, 2015*

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Yukon Oil and Gas: This is a rich potential for resources, but the future of the development

of natural gas depends very much on natural gas prices (which have been depressed for an

extended period of time). If prices were to trend up into 2015, this could result in increased

exploration and development efforts and vastly improve prospects for Yukon natural gas

resources.

Placer (Gold) Mining: Gold as an investment was hit by several different factors during 2013

and the prices have fallen. However, the industry fare relatively well in 2013. There were about

140 active place mining operations that employed around 400 people. Production totaled 53,315

ounces, up slightly from 2012. Hard Rock Mining: There was $56 million in development spending, largely attributed to

Capstone Mining Corp’s underground expansion at its Minto Copper Mine.

Alexco Resource Corp: Production decisions, including the re-opening of Bellekeno mine

are expected in 2015. In 2014 they continued to explore their property with a budget of

C$5 million and a plan for 10,000 meters of surface drilling.

Wolverine Mine: Zinc-lead-copper-silver-gold deposits. Yukon Zinc Corporation has

ramped up to 75% production capacity.

Victoria Gold Corporation: Eagle Gold mine project has been fully permitted, but has

deferred a production decision until equity markets recover. In the meantime it has

undertaken a metallurgical sampling program at the Olive Zone.

Western Copper Corporation: Located 198 kilometers north of Whitehorse. They hold

significant gold, copper and molybdenum resources and reserves in its Casino Project.

Casino contains 8.4 million ounces of gold, 4.4 billion pounds of copper, and 494 million

pounds of molybdenum and 61 million ounces of silver in proven & probable reserves.

They plan to start operations in 2019 with an estimated mine life of 30 years. The

anticipated cost will be $2.5 billion to get the mine into production.

North American Tungsten Corporation LTD: They are nearing the end of the Yukon

Environmental and Socioeconomic Assessment Board (YESAB) process. After public

comment, the YESAB will be issuing a recommendation on the project.

Wellgreen: Formerly known as Prophecy Platinum Corp. located 125 kilometers northwest

of Haines Junction. They are in the prefeasibility stage and plan to start operation in 2016

with a 37 year mine life. They visited Skagway in 2012 and SDC facilitated a port tour.

They hope to ship from our port, as it’s their first choice.

Eagle Industrial Minerals Corp: Has received permits to extract magnetite from tailings

at the Whitehorse Copper mine site. The project hit some bumps because the company

failed to reach an agreement to ship the ore out of Skagway. Unless a compromise is

reached, the plan could be derailed.

Selwyn Chihong: Found recent lead and zinc underground deposits of 15,517,000 tonnes.

They had launched an approximate $85M exploration and development program of

definition drilling, engineering, permitting and initial underground development. They

have reactivated their Howards Pass site and are budgeting $56 million next year to

confirm their multi-billion-dollar plan for a mine site that is viable. The combined claims

are said to be the biggest zinc lead deposit in the world. They plan to make this the largest

mining project in Yukon history, with an estimated construction cost of $1.8 billion. They

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are proposing an open pit mine producing up to 25 thousand tonnes per day. They still

have to determine which Pacific sea port can handle their product, since they believe that

there isn’t a port that can handle the volume of concentrate at the present time.

Other mining areas: Ketza River, Golden Revenue (Northern Free Gold Resources),

Sonora Gulch, Skukum Creek, White Gold (Underworld Resources), Moose Horn (Mt. Rio

Resources), Keno Hill (Alexco Resources Corporation).

Website

The SDC website, www.skagwaydevelopment.org, went through a facelift and overhaul

early in 2010. It receives considerable traffic. The website is constantly being updated and

changed as time allows to ensure the most up-to-date information is available and to

increase ease of use. This work is still being done in-house which allows the organization

to adapt the website to changes. This is also used to promote the Yuletide Weekend, Cruise

Ship Schedule, and local organizations.

Winter Employment and Community Vitality

Skagway’s winter economy showed continued growth in wage and salary earners for the

winter months over the last few years. Commercial construction continues unabated and

much of this work is done during the winter months, while residential construction appears

to dominate summer construction. For the past 100 years in terms of stability and viability,

it is noticeable that Skagway’s population, albeit under 1,000, has produced one of the

wealthiest per capita communities in the entire state of Alaska.

Over the past several years, there has been a dramatic shift in the demographics of the

community with many twenty/thirty-something’s staying year round. This has helped to

foster a vibrant year-round community with plenty of volunteers for community events

throughout the long, dark winter months.

By observing the data from the chart on the next page, Skagway’s average population

change is one of the highest increases in the state, with a 5.1% growth from the previous

year. The average rate of change for the state is 0.008%.

http://www.skagwaydevelopment.org/

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Population of Alaska by Labor Market Area, Borough and Census Area, 1990-2013

Area Name Estimate 2013 Estimate 2014 Population

Change 2012-

2013

Average Annual

Growth Rate

Alaska 735,662 735,601 -61 -0.008

Southeast

Region

74,382 74,280 -102 -0.14

Haines 2,527 2,537 10 0.4

Hoonah-

Angoon

2,179 2,128 -51 -2.34

Juneau 33,030 33,026 -4 -0.01

Ketchikan 13,828 13,825 -3 -0.02

Petersburg 3,213 3,209 -4 -0.12

Prince of

Wales- Hyder

6,443 6,426 -17 -0.26

Sitka 9,034 9,061 27 0.30

Skagway 981 1,031 50 5.10

Wrangell 2,453 2,406 -47 -1.92

Yakutat 622 631 9 1.45

Source: AK Dept. of Labor and Workforce Development, Research and Analysis

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SDC-COMMUNITY DEVELOPMENT SERVICES (SDC-CDS) It is a major goal of SDC-CDS to improve the quality of life for the residents of Skagway,

both year round and seasonal, and for our visitors. This can be achieved in many different

ways and one of them is to provide support services for other non-profits in Skagway and

to help develop community infrastructure. The goal is to ensure that the community has

the facilities and programs in place to make Skagway a desirable community for people to

live, work, play, and raise a family.

Making Skagway a desirable location will ensure that there will be the critical mass

required for economic growth and development. As the winter work population continues

to increase this will also place added demands on the community’s programs and facilities

that are currently in place. It is vital that their growth matches that of the community and

meets the demands of the residents. SDC-CDS is working with several community groups

and events to assist with the continued development of this infrastructure.

One important role that SDC-CDS plays is to provide legal, organizational, and grant

writing support for non-profits. In 2013 we were once again able to assist other non-profits

on organizational and grant writing services to assist with projects they were pursuing. Our

knowledge of non-profit organizational matters has been an excellent resource for groups

trying to organize as non-profits, and for non-profits looking to increase the organizational

efficiencies.

A major aspect of the 501(c)(3) or charitable non-profit aspect of our corporation is the

services we provide of funds management or fiscal sponsorship for several organizations

that promote community development.

Fiscal Sponsorships

The Skagway Marathon Club: CDS continued to hold and manage funds for this

community organization, which holds their annual event in June. Their event, the

Skagway Marathon, has become very successful, adding a nation-wide draw to our

community and its economy each summer

Yuletide Committee: CDS continued to hold and manage funds for this

community organization, which holds events every December, providing valuable

activities for the community during the cold, dark winter months. The growing

success of the resurgent Yuletide Weekend in the past few years has turned it into

one of the premier events of the wintertime Skagway social calendar.

Garden City Market: CDS continued to hold and manage funds for this

community organization which promotes local artisans within the community.

Boosting the local economy, the Garden City Market takes place during the

summer months, offering a space for Skagway’s artisans to sell their goods.

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Skagway Home Brewers Club: CDS continued to hold and manage funds for this

community organization, which holds their annual community event in April. Their

event, The Skagway Home Brewers Festival, has become very successful over the

years, boosting Skagway’s economy during the slower season by drawing in

tourism from Juneau, Haines and Whitehorse.

The Reverend Neil Down Fund: CDS continued to hold and manage funds that

have been raised to pay for medical expenses for Denny Nyhagen. After his

expenses are paid, this fund could potentially turn into the “Community Care Fund”

which would help other community members, if or when, they require help during

financially difficult times.

Dolly Parton’s Imagination Library: CDS continued to hold and manage funds

raised to support this nationally recognized program. A new book is sent each

month to children of Skagway (who are five and under and have been signed up by

their parents).

Skagway Ski Club: This account is now closed. CDS donated the remaining funds

from this now defunct club to the Log Cabin Ski Society, a local non-profit whose

mission is in line with that of the Skagway Ski Club.

Sustainable Skagway: This account is now closed. CDS donated the remaining

funds from this now defunct club to the Taiya Watershed Council, a local non-

profit whose mission is in line with that of Sustainable Skagway’s.

Skagway Garden Club: This account is now closed. CDS sponsored this

community group for their one-time event, the Garden Conference that occurred in

the summer of 2013.

Community Events

A first for SDC this year was hosting a Yuletide Open House. This event was a success as we had roughly 20-25 community members attend, all of whom seemed genuinely pleased to learn more about SDC. We hope to make this an annual event as we feel it is important to open our doors to the community and invite them to learn about SDC and the important services we offer, while enjoying some refreshments and holiday cheer.

As a non-profit in the State of Alaska, we are allowed 5 special event liquor

permits annually. As a service to the community, we secure and purchase the liquor

permits for annual community events. As the holder of the liquor license for these

events, we are not only legally responsible for upholding all State liquor laws

during the course of the event, we are also responsible for hosting the bar,

purchasing and serving all beer and wine at the events (with the exception of the

Home Brewers Festival). These events act as our only fundraisers throughout the

year. Following is a list of the events we secure and purchase liquor permits for.

o Yuletide Ball

o Buckwheat Bash Awards Ceremony & Dinner

o Skagway Home Brewers Festival

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Endorsements

The Skagway Marketplace: Skagway Marketplace is a Facebook Group intended

to act as an online store for local artisans to sell/trade their goods. This group

features local businesses, promoting shopping locally, and thereby helping to

encourage investment in the local economy. SDC-CDS has endorsed the Skagway

Marketplace, supporting and applauding them for their work, as we feel it is

directly in line with our Mission.

FINANCIAL REPORT The outcome from operations for the year ended December 31, 2014 produced positive

results. Travel and training expenses were up and there was a slight drop in payroll due to

the new hire at lower starting salary. In 2014 we were able to operate in line with our

budget.

SDC continues to manage funds for local community organizations at no costs through the

Community Development Services (CDS). Please see the list of these organizations and

community partnershipson pages 23-24 above.

SDC has also researched funding opportunities and has spent time contacting other

economic development corporations across the state in an effort to find alternative funding

independent of the Municipality Of Skagway. However, in order for the Corporation to

develop its resources, promote economic growth, provide services, and support the

Skagway Community, SDC requires base funding from the MOS. The Board of Directors

fully understands the fiscal constraints on the MOS and is sensitive to this especially as to

how it may affect potential funding to SDC. In an effort to keep costs down, SDC has

made efforts to cut costs wherever possible, pursue supplemental funding, and continue to

research grant opportunities.

SDC looks forward to continuing its partnership with the Municipality and other

community organizations. This can only be achieved with a strong commitment from the

Municipality to continue supporting economic and community development in Skagway.

The SDC program has now completed twelve years of operations in the community and

has shown its value to the city many times over. The Board and Executive Director are

committed to this process and the results that it has achieved. With continued financial

support from the Municipality, we know that this program will continue to be the positive

influence that it has been over the past years.

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Operating Expenses

For the Year Ending December 31, 2014

Wages & Related Expenses $ 59,297.57

Rent, Utilities, Facilities & Equipment $ 13,116.26

Contract Services $ 471.50

Insurance $ 2,955.00

Operations $ 5,507.40

Business Expenses $ 676.64

Travel, Trainings & Meetings $ 3,137.61

Memberships & Advertising $ 1,060.35

TOTAL $ 86,222.33

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The Skagway Development Corporation would like to thank the Municipality of Skagway

and the Skagway Community for their continued support. SDC would not be a success

without the positive input, volunteers, Assembly Members, Board Members, and the

business community. We look forward to 2015 and the continued success of SDC.

Documents

2014 Annual Reportskagwaydevelopment.org/.../02/SDC-2014-Annual-Report.pdf · 2015-02-02 · 2014 Annual Report MISSION The Skagway Development Corporation (SDC) endeavors to enhance