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HomeMy WebLinkAboutAkutan Prospects for Development 1983AKU Ov4 LieRARY Copy pase ——<—— AKUTAN PROSPECTS FOR DEVELOPMENT DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS DIVISION OF COMMUNITY PLANNING ‘\ ike SEPTEMBER 1983 ==> I = a. CBN eT eS = pl ~~ —_ ——— = — ae ees ee eee a i a oa ee = Se aa AKUTAW PROSPECTS FOR DEVELOPMENT DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS MUNICIPAL AND REGIONAL ASSISTANCE DIVISION *) Lo} Ra. La a Et ee ~~ s See (\ Hi =e = a rm —T i ——S Te te CASS = ALASKA DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Jeff Smith, Acting Commissioner Jeff Smith, Director, Municipal and Regional Assistance Division Project Staff Michael Cushing, Research Analyst Secretarial Support Jon Cecil Lisa Taguchi CITY OF AKUTAN Jacob Stepetin, Mayor This publication was prepared by the Department of Community and Regional Affairs, with assistance from the Department of Commerce and Economic Development. This study represents a continuing effort to assess the constraints and opportunities for development of communities potentially effected by an expanded fisheries industry associated with the 1976 introduction of the 200-mile Fisheries Management Zone. We would like to thank the people of Akutan and the former City Administrators, Fran Rose and Nancy Gross, for their assistance in preparing this report. - iii - Pt cd coin dE i ale oe a ee ee a ae a II. BACKGROUND Pie) FERRET Hollie N ila O lial) Voll eri tac! Mellie sli iliellilel| Hell | B. Physical Setting 1. ‘Location andIocale-*. 0 19°.) 6 5 etd sw en Geseogy, |e) | jal firell ere P31 illo llpeeriiien Ile li let teinirall lite Sie Meteorology ei! ll/s | lelllillellifellleliiliel Iles lili lell lis 4) BIOLGeyy | |||'51||!01llIllet| [lel estilo Hill ell Mlkedllltell HIISAT ASHI hell dl Fis 5. Physical Setting: Implications for Development C. Social Setting Deol Px ma ||| 10111115. ale Ieee ICH SHI IIo lla 2. Social Characteristics . . . . . ... 3. Social Setting: Implications for Development . III. Development Potential A. Business and Labor Climate 1. Economy tei Garner ee erie lll il lar lle eHII Pe ell] eh l| tro! Il tell | b. Employment/Unemployment . . ... . Co a etary) ol) oll!) rill al! | aillliol ter (yatll (lee alll -oHi Th d. Seafood Processing . . . «© 2 6 « « e. Other Sources of Economic Growth .. . 2. Native Corporations a. Regional Corporation ....... b. Village Corporations ....... 3. Akutan Traditional Comcil. ...... 4. Community Attitude Towards Growth . ... 10 10 12 15 17 i 26 28 37 45 45 47 47 D. 5. General Cost of Doing Business a . c. Taxes d. Insurance e. Utility Rates . Building and Rental . Transportation costs 6. Local Services Available for 7. Labor Relations 8. Business and Labor Climate: Implications for Development Land Status and Use Land: Implications for Development Port and Harbor Facilities 1. Existing Facilities . 2. Proposed Harbor Facilities . 3. Port and Harbor: Implications for Development Community Fleet . Community Fleet: Implications for Development General Infrastructure and Services 1. . Water Resources and Use . Sewer System Power . Fuel Supply . Housing Communications Hotel . Transportation Banking . 49 50 51 51 52 52 52 53 57 63 65 70 74 74 75 77 a) 77 77 79 79 79 82 2O..:'Mediceal Services| 1/6) ie i/o 1) cetllel eel eel 11. Fire Protection . . . . . . . . . . . DD ee Ce Te TT TS ele 0 SE SCO ee eC ET eeu 14. Cther Gervicse 3&4 ewe et lt te 15. General Infrastructure and Services: Implications for Development . . F. Municipal Capacity 1. General Description of Government 2. Municipal Finances . . «© «© »© « «© »© « e 3. Planning Capability .~- . . «© « « «© «© e« « 4. Capital Improvements Program . . . »- +«© «© « 5. Municipal Capacity: Implications for Development IV. Conclusions: Determinants of Future Growth . . . . « BiUbLiography Millis elses re ie ilstiiretit es lalirei hi el isle stillite ih Its LIST OF FIGURES QNE: Akutan Vicinity Map . «© 2. «© «© «© © «© «© «© «© « TWO: Resident Population of Akutan; 1890 - 1980... . . THREE: Crab Habitat Distribution. . . .« 2» «© +« « « « FOUR: Catch Statistics: King and Tanner Crab; 1969 -1982. . FIVE: Whitefish Habitat Distribution CTT TT TTT TTT SIX: Seawest Industries: Existing Facilities . SEVEN: Seawest Industries: Proposed Expansion EIGHT: Trident Seafoods: Akutan Facilities . .... . NINE: Akutan Village Corporation ANCSA Land Selections . . TEN: Tentative ANCSA 14(c)(3) Land Conveyance Selections . . - vii - 82 82 83 83 83 88 8 91 93 97 12 31 31 33 41 41 43 59 ELEVEN: Major Non-Resident Land Holdings . . . . . . .. . 59 TWELVE: Present and Potential Land Use. . . . . . . « « « 61 THIRTEEN: Port and Harbor Facilities: Existing and Proposed. . . 67 FOURTEEN: Proposed Head-of-the-Harbor Industrial Site. . . . . M71 - viii - OVERVIEW ——— There are, in effect, two communities of Akutan. The first Akutan is represented by the resident community of Akutan which consists of about seventy Aleut Natives whose ancestors were drawn together at this site more than a hundred years ago. The second Akutan consists of the transient commercial/industrial community which has also occupied Akutan Harbor these last hundred years as a base for the pursuit and processing of the marine resources of the North Pacific and Bering Sea. The story of Akutan is then a tale of these two communities; of conflicting and shared aspirations; of alternating growth and decline; and of changing roles of dependence and control. During the hundred and fifty years previous to the settlement of Akutan, the lives of the Aleut people had already been drastically changed by successive waves of foreign enterprise. Early Russian adventures had decimated the Aleut populations and the continuing Russian and American commercial exploits introduced constant social and economic change. The founding of a Native village in Akutan Harbor was motivated by the construction of a Russian Orthodox Church and a commercial trading post at that location. For most of Akutan's existence, the industrial community in Akutan Harbor dominated the course of local development. The Native community labored in that industry - processing whale, cod and then crab - and over the years exchanged many of their Aleut cultural ways for the lifestyle and economics of wage earning. While the Native community maintained its sense of personal Aleut identity, the world around them became increasingly controlled and shaped by the industrial community. World War II brought a terrible shock to the community. The entire population was relocated to interim camps in Southeast Alaska, ostensibly to protect the population from possible Japanese invasion. When the people of Akutan returned to their homes after the war, they returned to a vandalized community with little immediate prospect for economic enterprise. In the early 1950's, the fish processing industry returned to Akutan. This time the target species was king crab. Lowell Wakefield, a pioneer in the crab processing industry, stationed a processing vessel in Akutan and employed the local residents as process workers. The industry grew steadily through the fifties and sixties and then accelerated through the seventies. By 1981, Akutan was listed among the top catch-value ports in America. Up to twelve processing ships could be found in Akutan Harbor during the fall processing season. Through most of these years, the residents of Akutan had enjoyed an amicable relationship with the processing industry; Wakefield was viewed as a benefactor and special friend of the community. After Wakefield's interests were purchased by another company, Seawest Industries, the relationship changed to a more business-like approach and relations between the processing community and the resident community have at times been strained. Over these same years, Alaskan Native groups were becoming more aggressive in advancing their demands for a settlement regarding their displacement as a Native people from their lands. As a result of the Alaska Native Claims Settlement Act of 1971, Alaskan Natives received land and cash settlements as well as regional and community corporate structures upon which to base their future development. With the passage of that Act, the Natives of Akutan finally gained a significant measure of control over future development in Akutan Harbor. Prompted by dramatic increases in the use of Akutan Harbor by the processing industry during the latter 1970's, the community elected in 1978 to incorporate as a second class city. This enabled the community to tax the processors for raw fish transactions in Akutan Harbor and provided the community with an expanded base of control over local development. The years from 1979 to 1982 were extremely productive years for the resident community of Akutan. Many homes and several public buildings were constructed. The Akutan Corporation completed a modern office/commercial building. The water, sewer and electrical utilities were completely overhauled and expanded. Things were booming. Trident Seafoods built a new whitefish processing plant just west of town and began processing salted cod. However, catastrophe struck the crab industry in 1981 with sharply diminished catches of red crab. This decrease continued at an alarming rate in 1982 and finally, in 1983, the red king crab fishery in the Akutan region was effectively closed pending the recovery of the stocks. The cutbacks in production translated directly into diminished revenues to the City of Akutan. The reduced local tax base has also resulted in a reduction in Akutan's share of shared State revenue which is annually distributed to Alaskan communities. A further catastrophe was added to this generally bleak situation when Trident's new processing building burned to the ground in June, 1983. The prospects for reconstruction of that building are still uncertain. The City of Akutan has produced a development scheme which envisions a major seafood industrial park located at the head of Akutan Harbor, about two miles west of town. The advancement of this project would require cooperation between the City and Akutan Corporation and substantial capital investment by private industry. While preliminary engineering assessments have been completed, no private sector interests have come forward to invest in the project. The City has plans, and funding, to complete several additional projects. These include a community solid waste site, a seaplane ramp and turning area and a bulk fuel storage facility. The U.S. Army Corps of Engineers is presently investigating the need and feasibility of harbor and port facilities in Akutan with regard to their potential use in a future American whitefish industry. After several hectic years of industrial boom and community growth, Akutan appears to be heading for a more quiet period of reduced activity and greatly reduced revenues. This will be a period requiring careful management of resources at the local level to provide for maintenance of the the dramatic physical improvements recently accomplished in Akutan. The incorporation of the Akutan Village Corporation provided the residents with a resource base of lands and capital. The incorporation of the City of Akutan further provided the residents of Akutan with an established political base. However, the usefulness of these new community resources require the existence of a healthy regional fisheries economy in which the community may participate. The key economic element in Akutan's near term future will be the pace and success of the American entrance into the whitefish industry. As long as American participation is limited to offshore joint ventures, little benefit will be derived by Akutan. However, recent international negotiations have resulted in requirements that percentages of export whitefish catches be processed by American shorebased facilities. With the strengthening of the economic territorial concept of the 200-mile fisheries zones, it is probably only a matter of time before a whitefish industrial park at the head of Akutan Harbor will become financialy attractive to the processing industry. FIGURE ONE AKUTAN, ALASKA VICINITY MAP Akun nes cS pain Island Avatanak Isiand NAL ASKA ISLAND —— BACKGROUND —— A. HISTORY The village of Akutan was founded about 1880 when a number of Aleut families and groups from the surrounding islands moved to Akutan Island to consolidate as a single community. The Russian Orthodox Church encouraged this move by constructing a church to serve the new community. About the same time, the Western Fur and Trading Company established a fur storage and trading post at the same site. The first resident agent, Hugh McGlashan, married an Aleut woman and many of the current residents still bear his name. McGlashan purchased several wooden dories and began a small cod fishing enterprise in which the employed villagers received wages or credits at the store. Later, in 1911, a whaling company built a processing station across the harbor to the west of the village which operated until World War II. The processing station employed a number of Akutan villagers in the work of reducing blubber to oil and bones to fertilizer. By 1940, both the cod fish enterprise and the whaling station had come upon hard economic times. Nevertheless, these ventures had provided residents of Akutan for many years with a gradually expanding wage economy uncommon in other Aleutian villages. The traditional semi-subterranean sod houses had been replaced with wood frame structures and the ways of traditional custom were disappearing. At the beginning of World War II, the residents of Akutan and other Aleutian villages were evacuated to small camps in Southeast Alaska for the duration of the war. While the expressed purpose of this relocation was the protection of life, the move was devastating to the Aleut populations. Life in the camps was harsh and numbers of Aleuts died from malnutrition and disease. In the absence of the villagers, Akutan was vandalized and many homes were completely destroyed. It has been speculated that Russian whalers were the culprits in this case. The villagers returned after the war and, with the foundation of dedicated leadership, repaired and rebuilt the community. In the late 1940s, a new fisheries processing industry came to Akutan: crab processing. Wakefield Seafood Company of Seattle, pioneers in crab processing, stationed a floating processor in Akutan Harbor and employed a number of villagers during a part of each year. In 1968, Wakefield constructed a new dock facility on land leased from the Orthodox church and stationed a floating processor ship, M/V Akutan, in the community. For many years the processor was a recognized feature of the community and provided seasonal employment for up to 25 local residents. It was replaced in 1979 by the M/V Western Sea, owned by Seawest, Inc., when that Seattle-based firm purchased the Wakefield operations following a series of sales in the interim. The commercial presence of Wakefield Seafoods played an essential role in the community's continued transition in lifestyle, from 1950 through the 1970s. It was reported in the early 1950s that at least 80% of the local economy was still subsistence based. Furthermore, the wages earned on the processor ships by local residents were largely turned back into improved equipment in support of subsistence activities. While subsistence hunting and gathering still supplement the local diet, the present economy is based largely on wages and indirect income derived from the processing industry. The passage of the Alaska Native Claims Settlement Act in 1971 was a very important event for Akutan, providing the community with a new measure of economic security. The village through the Akutan Village Corporation, received a cash settlement and became eligible for ownership of surface rights to certain surrounding lands. The Corporation selected lands on Akutan Island and several other nearby islands. This land includes a number of sites with development potential, including port and dock facility sites and grazing areas. Although the village corporation has not made a comprehensive decision as to the use of these lands, preliminary feasibility studies have been performed for a large processing facility at the head of Akutan Harbor several miles to the west of the community. In 1979, things began to change rapidly in Akutan Harbor. Instead of one floating processor ship in Akutan Harbor, there were as many as thirteen; and with them came over 1000 seasonal employees. shore facilities began to expand dramatically: both Seawest and Trident Seafood Companies have established operations near to the existing community. Damaged extensively by a recent fire, Trident's $10 million model whitefish plant was the largest whitefish facility on the West Coast. In response to the rapid progress occurring around them, the residents of Akutan elected to incorporate as a second class city and thereby maintain a measure of control over the future development of their community. Since incorporation, the City of Akutan has regularly employed professional city administrators (city manager/planner). This small community is riding the crest of a wave of major physical changes. In addition to the onshore development of seafood processing plants at the perimeter of the community, things are also booming in the town itself. Within the last two years, sixteen new houses have been completed. There are new boardwalks, new water and sewer systems and a new power plant and electrical distribution system. Individual phones have replaced the single community phone. There is a new two-story Corporation building with hotel facilities. Additionally, a clinic, library and public safety building have been constructed. B. PHYSICAL SETTING 1. Location and Locale Akutan Island, approximately 18 by 12 miles in size, is one of the Krenitzen Islands which are in turn a part of the Fox Island Group located near the eastern end of the Aleutian Island chain. Akutan village is situated on the north side of Akutan Harbor, a deep indentation of Akutan Bay on the eastern side of the island. Figure Me presents a map of the Akutan area. The harbor is surrounded by dramatically rugged snow covered peaks over two thousand feet high. The highest point on the island, 4,275 feet, is the still very active Akutan Volcano, seven miles to the west of the community of Akutan, with its ever present ash plume and peak visible on clear days. The community is located on a narrow bench of relatively flat land lying between the bay and very steep slopes ascending to a 1,700 foot mountain ridge. The useable land on this bench is confined to a small area approximately 2,000 feet long and varying in width between 200 and 600 feet, with a total area of about 11 acres. At the head of Akutan Harbor, two miles west of the existing community, there are about 50 acres of somewhat boggy lowlands which might provide for future community growth and development. At this time this land is accessible only by skiff or by difficult scramble across rough terrain. The incorporated boundaries of the second class City of Akutan generally encompass the coastline and waters of Akutan Harbor and contain an area of approximately 18 square miles. Akutan is quite remotely located; approximately 800 air miles southwest of Anchorage and accessible only by boat or amphibious aircraft. Most air traffic comes by way of Unalaska, 35 miles to the west. Other Aleutian communities nearest to Akutan are Nikolski, 150 miles to the west; False Pass, 108 miles east; and Cold Bay, 143 miles east. 2. Geology Akutan Island presents a geological formation typical of the Aleutian Chain. The island is constructed of a layering of periodic pyroclastic outflows of basalt and andesite lava from essentially a single vent area, ultimately forming a strongly eroded volcanic cone with a coastline dominated by steep cliffs and rocky headlands. Akutan is a good example of an explosive, andesitic volcano. Fumes and sometimes ash rise almost continuously from the vent and dramatically violent events have occurred often during the last 200 years. Akutan has erupted 23 times during that period. The latest major eruption occurred in 1953 with lava flows as recently as 1974 and 1978. During one eruption, the top of Akutan Volcano was completely blown away and was replaced by a wide caldera within which a new cinder cone is now building. It is possible that the inhabitants of Akutan Island could have to be temporarily evacuated from the island at least once before the end of the century due to volcanic disturbance. The Aleutian Island arc lies along a very active seismic belt and the islands frequently experience tsunamis generated by submarine earthquakes. In 1946, a tsunami run-up reached a height of 115 feet on the west side of Unimak Island, less than thirty miles east of Akutan, destroying the Scotch Cap lighthouse. However, probably owing to its virtually circumferential protection, Akutan Harbor has experienced only very limited tsunami occurrences. No detailed soil surveys are available for site of the existing community of Akutan. General descriptions of the surface geology and deposits indicate primarily weathered volcanic rock and ash. The soils derived from the ash are mostly cindery in areas close to the volcanic cone, but have a sandy or silty texture on most lower slopes. These soils are generally well drained and have a high organic content. There is no permafrost on Akutan Island. The slopes above the community are covered by reddish sandy soil and are deeply incised by several swift streams. Landslides have not been a problem in historic times. There is no apparent coastal flooding or erosion near the community since the embayment provides protection from all but the most severe storm-driven waves. The beach in front of the community is made up of gray cobbles. A subsurface soils survey was performed at the head of Akutan Harbor, a tentative site for future industrial development (Alaska Development Consultants, 1980). That site is described as: ".egenerally level and poorly drained. Up to four feet or more of organic material overlies a sandy silty soil. Beneath the strata of silty material lies a predominantly clean, loose uniformly graded sand. Groundwater was encountered at depths ranging from near the surface down to 10 feet. The loose, saturated sands encountered can be expected to have relatively low bearing capacities." ",eeonly one gravel source was located at the site. (However), shallow groundwater and very permeable soil makes that area unsuitable as a gravel source without extensive de-watering." 3. Meteorology Climatic records have not been kept specifically for the site of Akutan. However, a generalized meteorological description for the Akutan area may be derived using recorded data from Unalaska (Dutch Harbor), 35 miles southwest of Akutan; Cape Sarichef, 50 miles to the east; and historical data from Akutan itself. Akutan lies in the maritime climate zone of Alaska, characterized by mild winters and cool summers. The historical mean of minimum temperatures for February is 25°F while the mean of maximum temperatures for August is 56°F (Dutch Harbor). Recorded temperature extremes are 74°F in the summer and minus 5°F during the winter. Measured precipitation at the Dutch Harbor station tends to be about 55 inches per year while the Cape Sarichef readings indicate an average annual precipitation of about 28 inches. Heaviest precipitation occurs from September through November. Snowfall has been recorded in all months of the year except September but generally only occurs from October to May. Because Akutan is located in the zone of North Pacific storm tracks, periods of strong winds frequently occur, particularly in winter. Dutch Harbor data indicate moderate to strong winds throughout the year with a mean annual speed of about six miles per hour. During a 1977 storm, the winds in Akutan are reported to have reached gusts of 115 mph, but caused only minor damage. Statistically, such a storm should occur in this region no more often than once in a hundred years. Winds of up to 85 mph can be expected to occur on the average of once every ten years. There are no air navigational or landing aids in Akutan. Therefore, all air travel to Akutan must be made during Visual Flight Rules (VFR) conditions. Weather suitable for VFR flying occurs about 90 percent of the time, with the best months being September through November, and the poorest, July. In summer, fog occurs frequently, as much as 64 percent of the days of July. Unfavorable winds for flying are more frequent in fall and winter, with most favorable winds occurring from May to September. This means that when VFR flight conditions are most favorable, strong surface winds present a frequent hazard, and when winds are lightest, the flying weather is often hampered by low visibility. Additionally, the water surface in Akutan Harbor must be calm enough to accommodate seaplane landings. Ship traffic is possible the year round; however, winter presents a number of special hazards to boats including frequent high waves, superstructure icing, occasional shorefast ice, and rare pack ice. Akutan falls on a line marking the southern limit of the occurrence of 1/10 pack ice coverage. 4. Biology The area around Akutan is essentially treeless. Vegetation consists of arctic-alpine species, most of it concentrated between sea level and 1,000 feet. Within this zone, the land surface is blanketed with a thick mat of heath or dry tundra consisting of a large variety of vascular plants, bryophytes, and lichens. Akutan is located near the center of one of the most productive fishing grounds in the Northern Hemisphere. Offshore lie the vast resources of the southeast Bering Sea continental shelf, including the whitefish species of pollock, cod, perch, and a variety of flatfish. Near shore commercial species include salmon, crustacean and halibut. Akutan and Unimak Passes serve as major paths of migration for salmon, sea mammals, water fowl, shore and pelagic birds. Wildlife most commonly observed on Akutan Island are eagles, ptarmigan, a number of songbirds and foxes. 5. Physical Setting: Implications for Development While Akutan's remote location and adverse climate pose considerable problems for development, those problems are not unique compared to other remote sites in the Aleutians where large-scale developments have already occurred. One notable exception to this is the absence of any kind of landing strip. The majority of industrial activity has taken place on floating operations within Akutan Harbor; however, there is both a history and a great potential for shore-based development. Two processing companies have recently squeezed facilities onto parcels of land in the vicinity of the existing community. Additionally, land at the old whaling station site is occupied by processing companies as storage area. This leaves an area at the head of Akutan Harbor as the only possible area for future growth. Preliminary studies have shown this area at the head of the harbor to be Marginally suitable for development of a large facility. There are several natural hazards that necessitate special site preparation. Severe storm waves have created a "landed barrier beach" which is of higher elevation than the valley floor behind the beach. To avoid flooding during future storms, precautions would have to be taken; either by reinforcing the beach head or by elevating critical lands upland from the beach. Earthquakes, very common in Akutan, would require that port facilities be constructed to tolerate dynamic seismic forces of significant magnitude. With extensive site preparation, approximately 50 acres could be made available for development. There appears to be adequate groundwater resource although further testing is BACKGROUND: PHYSICAL SETTING required to verify this assumption. Active geothermal sites have been identified within several miles of the head of the harbor. These could provide a small _ supplemental source of energy for industrial development . Initial test borings indicate that there may be insufficient borrow materials available at the site to fill the needs of site preparation. The upland areas at the head of the harbor are likely to be classified as "wetlands" and therefore, may require extensive environmental assessment to satisfy regulating agencies (Army Corps of Engineers, Department of Environmental Conservation). A very favorable aspect of Akutan's location is its very close proximity to the vast fisheries resources of the Bering Sea outer continental shelf. Particularly in the case of onshore whitefish processing, the time factor from catch to processing is extremely critical to the quality of the final product. Akutan is one of the first places in Alaska where onshore whitefish industry development could prove to be feasible. Future major industrial developments in Akutan will most probably be targeted on the whitefish resource. -ll- C.SOCIAL SETTING 1. Population There are three distinct population groups to be considered within the municipal boundaries of Akutan. Each group presents distinct population characteristics and trends, and each has a different perspective with regard to future developments in the area. The first is the Aleut Native community which has inhabited the village site for a hundred years. A second population group consists of the growing workforce, mostly transient, associated with the newly expanding onshore processing industry in the vicinity of the community. The third population is made up of transient workers onboard the processing ships anchored in Akutan Harbor and located some distance from the community. Resident Community Population. A June 1977 survey, as well as the records of the Village Chief at that time, indicated that there were seventeen households in Akutan with a total resident population of 69; 41 males and 28 females. The 1980 U.S. Census produced the same total number, but counted 37 males and 32 females. This indicates a several year period of relative stability in the community's make-up. Resident population figures for Akutan have been recorded by the U.S. Census Bureau since 1890 and are presented in Figure Two. The only non-native residents presently (1983) living in the community are the two teachers (a married couple without children). FIGURE TWO RESIDENT POPULATION OF AKUTAN 1890 - 1980 YEAR 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 POPULATION 80 60 - 66 71 80 86 107 101* 69%* 90 Native, 11 non-Native. 66 Native, 3 non-Native. Source: Department of Community and Regional Affairs, 1979 U.S. Bureau of Census, 1981 -12- BACKGROUND: SOCIAL SETTING Generally, while the people of Akutan have become increasingly mobile in lifestyle, and familiar with modern conveniences, the physical growth of the community has been limited by housing and employment constraints. For many years, housing availability in the community slowly declined; 22 units were counted in the 1970 Census and only 19 were counted in the 1980 Census. The result has been a migration out of the community by individuals and families seeking less restricted opportunities. Around 1976, plans were announced to build 16 new HUD houses in Akutan. With those plans came the hopes of attracting family members back to the community. The new housing was completed in December 1982 and was immediately occupied. However, there had been so much overcrowding in the older houses that, after the shift into the new housing, all but two of the older houses were still occupied. Consequently, no families have returned from outside the community to resume permanent residence. It has been reported that there is a trend in Akutan for older persons to stay while younger persons move away. This is largely a result of the lack of local housing into which young families could move. New housing units have relieved some of the overcrowding; however, it is likely that the "doubling up" of younger families will soon again be prevalent unless more new housing is built in the community. The proportions of persons in various age groups in Akutan (as reported by the 1980 Census) are essentially the same proportions as found for total Native population age groups throughout Alaska. In a community of seventy people, the passing of even a_ single individual can significantly alter the nature of the community. In the case of Akutan, four elders have passed away since the Spring of 1982, including the First Village Chief of long standing, and a woman well known for her work in the preservation of Aleut culture. Onshore Processing Facilities Em s. The second population group to be consider is comprised o ie employees of two expanding onshore processor operations in the vicinity of the community. One of the facilities, owned by Seawest Industries, is located at the west end of town on land leased from the Russian Orthodox Church. The company also Operates a floating processor, the M/V Western Sea which is docked alongside the shore facility. Seawest's employees (up to 100) were included in the 1980 U.S. Census count for Akutan, as "individuals residing in group quarters". About 30 of these employees live in a bunkhouse in the community and the remainder have quarters on board the processor. For the most part, these workers remain separated from local residents and do not often mix with the community other than to visit the local road house tavern near the dock. This is true even for those employees living in Seawest's bunkhouse which is located in the middle of the community. -13- Trident Seafoods Corporation operates a rapidly expanding onshore facility, located on private property about 300 yards west of town. Dormitory facilities at the site will be able to accommodate over two hundred employees. Trident workers generally visit the village even less frequently than the Seawest workers. Trident and Seawest each envision employee populations on the order of 100 to 200 persons when operating at planned capacity. As many as 10 employees at each facility could be essentially year-round employees (management and technical personnel) and the remainder would be transients staying only two to four months in Akutan. At this time, the prospects appear reasonably good that the whitefish oriented Trident plant will re-open and maintain operations at current production levels. On the other hand, Seawest is likely to reduce its presence in Akutan due to diminishing crab stocks. Of the 100 individuals counted by the 1980 Census as living in group quarters (i.e., non-resident processor employees), the following characteristics were reported: e° All individuals were 17 or older. e There were two major population groups: -65 white persons, mostly aged between 22 and 35 years of age, and; -27 Filipinos, mostly aged 30 to 55 years of age. e The remaining individuals included several each of Vietnamese, Korean, Mexican and "other". ° Twenty-two of the individuals were women, mostly younger, white persons. The Trident Seafood operation employs a larger proportion of foreign labor, mostly Filipino, Koreans and Vietnamese. At this time, no Akutan Native residents were employed by Seawest or Trident as processors. A Major development scheme proposed (by the City of Akutan/Akutan Corporation) for Akutan Harbor is an ambitious project that would create a large processing facility at the head of the harbor. This development is almost entirely linked to the prospects of "Americanization" of the whitefish industry. Development could be of a scale anywhere from a single new processing operation (100 employees), all the way up to a "world-class" facility and associated infrastructure (1,500 employees; 2,500 population). Such a facility, or group of facilities, would develop an essentially autonomous infrastructure, including living quarters and entertainment for the working population. To achieve a degree of isolation from the present community site, two miles away, it is understood that processing companies would be encouraged to restrict the movement of employees within the Akutan Harbor area. This policy is already practiced by the many floating processors in the harbor. Offshore Processing Facilities Employees. Over the last several years, and during the months of greatest shellfish production (fall through early spring), there have up to eleven floating processors anchored around the harbor within several miles of the community. Taken together, these account for between 800 and 1200 transient workers. These are approximate figures since the processing companies are not required to report numbers of employees by actual place of employment and the companies are reluctant to reveal employment figures which might indicate production levels. Typically, the employees of these offshore processing ships are transported directly from Unalaska to their ships and back via seaplane and only very rarely visit Akutan. 2. Social Characteristics Akutan is a small Native community surrounded by a large, and essentially non-Native, processing industry. Some local residents work in that industry but social lines between these two cultures are not often crossed. The general social characteristics of the transient process workers will be discussed only insofar as those characteristics have a significant relationship to the social structure of the resident community. Particularly with regard to the increasing numbers of shore-based process workers, there is expected to be a constantly growing interaction between the Native and non-Native inhabitants. The return of Akutan's residents from their forced relocation during World War II marked the beginning of a new and rapidly changing era for the community. Over the last thirty years, worldwide economic and social trends have increasingly influenced Akutan's residents. As noted earlier, the economy has been in transition from a primarily subsistence based economy to a primarily cash income based economy. Experience with the ways of the larger world (accelerated by the war relocation), and increasing affluence through wage employment, combined to promote assimilation of "modern" lifestyle. It was reported in the early fifties that generally one male from each household was employed in the processing industry. Processor employment Opportunities fluctuated with the varying success of the processing industry and required long periods of absence from the village. However, by 1975, a majority of both men and women in the community were working in the processing industry, mostly with the Wakefield operation at the edge of town. After a change in ownership, the relationship between the town processor and the community deteriorated and by 1983 the number of residents working on the processors had dropped almost to zero. The village corporation and City began to offer new kinds of jobs involving clerical and maintenance skills. As traditional activities of subsistence labor were replaced by wage earning, the traditional division of labor between men and women became less distinct. Major reorganizations have occurred in social relationships between older and younger individuals, and in the established roles for men and women. While these changes are not so different in kind from the Changes which have generally occurred in American social patterns over the last several generations, the degree of change in Akutan has been much greater. Consequently, the "generation gaps" experienced in the community are even greater than those experienced throughout contemporary American culture. Incomes in Akutan are low to moderate; derived directly from employment with the processors, village corporation and city, and indirectly from Native corporation activities. About half of the households in Akutan reported annual incomes under $5,000 at the time of the 1980 Census; no households reported incomes higher than $12,500 for that year. Eleven households reported receiving at least some income from public assistance during 1980. The community is neat and the houses are well maintained. The people generally experience good health although there are some reports of alcohol-related health and social problems. There is a high level of education in the community and the people are generally quite articulate in discussing their lives and expressing themselves in the context of the larger world. The residents of Akutan follow the news of the world on satellite TV with great interest. There have been a number inter-racial marriages between residents and process industry employees over the last three decades. Present residents refer to a period of discord in the community arising from the influence of the non-Native partners within the community. However, all of these couples have since moved away from the community. Overcrowding, and restricted opportunities have caused a number of individuals and families to move away from Akutan. Families remaining in the community are still closely-knit. The Aleut characteristic of communal sharing is still evident in Akutan, particularly when a large sea mammal is landed. The Russian Orthodox Church remains a strong influence in community activities and services are regularly attended. Crime is mostly limited to incidents of petty theft, vandalism and general rowdiness (often alcohol-related). While alcohol is generally _BACKGROUND:_SOCTAL SETTING recognized as a major concern, drug abuse is considered less of a problem, generally associated with process workers. Surveys in the community indicate occasional incidents of domestic violence; again, usually alcohol related. Recent interviews with elders in the community (APIA survey, 1981) indicate that elderly residents personally are still held in great respect, although the direction of the community has been taken into the hands of younger generations. The elders also conceded that many Aleut ways will soon be gone. The Aleut language is spoken less frequently in the home and the youngest residents speak very little Aleut. Many traditional subsistence foods are no longer eaten. The focal point of many social gatherings has shifted from home visits to the tavern. It is interesting to note that, while the elders all listed alcohol related problems as a major threat to the community, they generally favored the existence of the local bar since it brought drinking out into the open, concentrated the drinkers at one location, and provided process workers with a place to go other than coming into the community. In the late 1960s, a number of younger men organized to replace the elders as the community's governing council, although, as indicated above, elder residents are still esteemed for their guidance. The present political (municipality) and business (Native Corporation) aspects of the community are in the hands of middle-aged residents; generally including equal numbers of men and women. Social Setting: ications for it Population: general. The activities of the fish processing industry in Akutan Harbor have been, and will continue to be, the primary economic determinant in Akutan. Consequently, the total number and characteristics of Akutan Harbor's inhabitants will be determined largely by the nature of that industry's growth in and around the harbor. Until development takes place at the head of the harbor, overall population characteristics should continue to reflect the current situation. That is, the distinct enclaves of Native residents (60-100); Onshore semi-transients at two neighboring processor facilities (100-300); and offshore transients on floaters (100-300). Due to the recent collapse of the regional crab industry, the offshore workforce is likely to be remain at lower levels for at least several years. Population: Native. The Native resident population will most likely continue to represent a fixed number within the fluctuating, and possibly much larger, total population count. Within most likely development scenerios envisioned for Akutan Harbor, the Native a1 = population would remain at about the same level that has existed throughout the history of the community; between 60 and 100 individuals. In one extreme (but possible) scenerio, in which a world-class process facility is developed at the head of the harbor, the Native population could eventually increase to 500 or more, out of a total of 2,500 inhabitants. Assumptions included in determining this number include a development stipulation requiring some degree of preferential local/Native hiring and a_ substantially increased participation of Natives in the fishing side of the industry. In an unlikely scenario at the other extreme, there could eventually be almost no Natives living at the present community site, if economics and personal choice combined to provide incentives for the present inhabitants to take up residence elsewhere. Population: onshore processor personnel. The two seafood companies Operating nearest to the village are both in same stage of transplanting their operation onto shore. Each of the plants could employ between a hundred and two hundred workers who would have living accommodations onshore. Most of these will be transient workers; living in the area from two to four months. Some administrative and technical staff (approximately 20-30 total) might live in Akutan almost year-round. The Seawest onshore development is currently on hold as a result of the general collapse of the crab industry. Trident expects to continue its Akutan operation; in spite of extensive fire damage to its main plant building. Onshore development at the head of Akutan harbor would most likely be associated with an expanding American onshore whitefish processing industry. The timing of American entry into this industry depends on so many unknowns that the scale of development at the head of the harbor, or whether it will occur at all, is still uncertain. At any rate, such development will not occur within the next several years The construction phase of a major development at the head of Akutan harbor (dock, pier, infrastructure) would require a workforce of approximately 100-300 for a period of one to three years. These workers would be located in temporary structures at the head of the harbor or on barges in that vicinity and would be probably be restricted in their relationship to the existing community by the same policy as applied to process workers on floaters in the bay. Population: offshore processor personnel. Floating processors in Akutan Harbor have processed primarily shellfish products: king and tanner crab. These processors originally located in Akutan harbor as a second resort to overcrowded Dutch Harbor, 40 miles to the west. With the recent drastic decline in king crab stocks, a number of processors have Pulled out of Dutch Harbor, diminishing the need to locate in Akutan Harbor. It is likely that there will be, at most, only one or two floating processors operating in Akutan Harbor during the next several years. Socio-Cultural Implications. The Aleut people and their culture have been besieged by external influences for hundreds of years, beginning with the early Russian hunters and continuing through a succession of foreign interests, each in pursuit of some indigenous resource. Disruptive change is not new to these people. Some changes have been well received by the Aleut Culture; others have not. More recently, the fundamental causes of social change in Akutan have been the introduction of wage employment through opportunities in the fish processing industry, and the generally increased access to the larger contemporary world through media, communications and travel. It has also been suggested that the physical presence of the processing industry with its consequent affects on the natural environment has acted as a destabilizing influence on the subsistence relationship between the residents and the environment. There are several different perspectives to consider in discussing the implications of development with respect to the social environment of Akutan. First, is the consideration of the effects of future development on the residents of the existing Native community of Akutan. Conversely, there is the consideration of the ways in which the existing residents may act to affect future major developments which directly affect their community. Finally, there are considerations about the evolving character of the total resident population of the community as increasing numbers and proportions of non-Native people stay for longer periods of time. The residents of Akutan are presented with a dilemma not uncommon in rural communities located near resources which are suddenly developed. Things have been booming in and around Akutan. The people aspire to elements of the contemporary American lifestyle that they see and read about in the media. They understand that these things may be obtainable through their involvement in the development of the local resource base. At the same time they are concerned that the development may be happening too locally, bringing unwanted changes to familiar ways and familiar surroundings. If industrial growth continues to bloom in Akutan Harbor, the residents of Akutan will be materially more affluent; a cost may be the accelerated disappearance of traditional identity. From the viewpoint of industry, it is also not an uncommon situation. There are potentially enormous gains to be made by developing an almost untapped resource (fisheries untapped by Americans in this case), but there is a local community or culture whose lifestyle may be greatly altered as a result of the development. Furthermore, that local entity has a great deal of control over development through land ownership, municipal organization, and regulatory protection. In the case of Akutan, the points of view of the residents and of industry will probably be resolved to the reasonable satisfaction of the parties concerned. There are several reasons for this. The people of Akutan have already come a long way in the assimilation of contemporary American lifestyle. They have been dealing with the larger world and a wage economy for over fifty years. The community members have gained Management experience within the frameworks of a Native Corporation and an incorporated municipal government. While there is a range of opinions in the community as to how, or whether, the community should be changing, there is a general acceptance of the understanding which was expressed by the late Luke Shelikoff, First Chief of the Traditional Council: “We must recognize that the way of the future is progress and development. These things will happen with or without us. Therefore we must be careful to take part in our own development; to be careful that we maintain those things that are important to us while we develop." At the same time, management in industry has become more responsive to the needs of populations affected by development. Industry, in dealing with the people of Akutan, should be prepared to accept certain of restrictions and conditions, including final approval of development plans at the local level, in exchange for the rights to develop in this favorable location. The increasing presence of non-Native residents is likely to result in an extended period of conflict and accommodation as the community seeks a new balance. There will necessarily be some consideration of the changing political environment as non-Native residents begin to outnumber Native residents with resulting changes in the character and goals of the City Council. The relationship between the City, the Corporation and the Traditional Council will come under stress, requiring a more careful definition of respective functions and goals. Long term interactions will take place between Native residents and "permanent" onshore process industry personnel; short term interactions will increasingly occur between "transient" processor employees and younger Native residents. BACKGROUND: SOCIAL SETTING The inhabitants of Akutan more or less accept and welcome a major seafood industry developing in Akutan Harbor. They well understand that this could increasingly affect their style of life. Specific beneficial effects of ‘growth will probably include a _ generally increasing affluence, more job opportunities and increased social and physical mobility. Other possible effects that need to be considered include a continued decrease in elements of Aleut Culture such as_ language, ceremonial customs and subsistence activities; an increase in the number of relationships and marriages between residents and non-residents; an increase in the influence of transient process workers, primarily on youthful residents; and increasing alcohol and drug-related problems. The coming years may be trying times for Akutan. There are serious, fundamental, problems facing the community. These problems are the same as those facing many other communities throughout rural Alaska, and many communities and nations throughout the world: to succeed in the larger economic framework of modern development while maintaining the values and activities of local tradition. The community, the developers, and various governmental agencies will have to work together to promote the benefits of development while guarding against the negative potentials of development. IN __-« DEVELOPMENTAL __ POVENTIAL A. BUSINESS AND LABOR CLIMATE 1. Economy a. General The community of Akutan was founded largely on the basis of a growing economic relationship between the indigenous Aleuts and the encroaching European world. The present community site was first occupied by a small Aleut village sometime in the early nineteenth century, although most of the predecessors of the present-day inhabitants did not move to the site until around 1880. At that time, a commercial trading station and a Russian Orthodox church were constructed at the site which in combination soon attracted the populations away from a number of surrounding villages. At that time, the villagers lived almost entirely within a traditional Aleut subsistence lifestyle. The trading post motivated the Aleuts to take the first steps in the direction of what is now an essentially wage-based economy. In addition to the normal business of fur trading, the first station manager began a cod fish enterprise which further involved the Aleuts in the system of cash and credit. The next major event in the economic growth of the community was the whaling station built across the harbor in 1914. That business employed all available residents of Akutan and put the village firmly on a wage economy. By the beginning of World War II, Akutan had been physically transformed; the traditional Aleut sod-house village had been replaced by the woodframe housing and boardwalks of "modern" Alaska. However, by 1941, both whaling and cod fish had become unprofitable enterprises. The final blow to the diminishing prosperity of Akutan was the evacuation and relocation of the entire Aleut population to internment camps in Southeast Alaska for the duration of World War II. In the people's absence, the community was almost entirely destroyed by unknown vandals. Many residents of pre-war Akutan never returned to the village, preferring life in the larger world that they had discovered during their exile from the Aleutians. Those that did return had to start almost from the beginning in reconstructing their village and in finding a means to sustain their existence. The traditional ways of subsistence, for a time, were again relied upon as the economic base of community life. Several years after the war, the growing seafood processing industry began to establish a presence in the Aleutians. Employing mobile factory ships, the industry was labor-intensive, and required a minimm of land-based investment. Wakefield Seafoods stationed the processor V_Deep Sea in Akutan Harbor and employed the residents of Akutan in -23- crab processing. Akutan was once again on a wage economy. From that time up until the mid-1970s, the economy of Akutan was based almost entirely on the relationship between the Wakefield Company and the village residents. In 1968, the company became even more firmly entrenched in the community when it obtained a long term lease from the Russian Orthodox Church for some of the best waterfront property in the vicinity, built a dock, and stationed the newly christened M/V Akutan processor at the end of the dock. Fnactment of the Alaska Native Claims Settlement Act in 1971 signaled a new source of activity for Akutan. With the formation of the Akutan Village Corporation, the community received $625,000 in cash (over 10 years) and surface rights to 92,106 acres of land (89,000 have been conveyed by 1983). The people in Akutan began to consider their relationship to the processing industry from a less dependent perspective. By the mid-1970s, the Aleutian crab industry was growing by leaps and bounds. Each year brought new record production levels and new process companies into the action, which was centered around Dutch Harbor/Unalaska. As Dutch Harbor became increasingly crowded, process factory ships began to look elsewhere for favorable harbors in which to anchor. Akutan Harbor, while lacking even the marginal amenities of Unalaska, was several hours closer to the crab grounds, and did have adequate sources of fresh water required for the processing of crab. Suddenly there were processing ships and barges stationed all over Akutan Harbor. These processing vessels were primarily occupied with crab production; although several companies began in 1980 to experiment with whitefish production. The sudden increase in process activities in the harbor motivated the residents of Akutan to incorporate in 1979 as a second class city. Along with incorporation the residents elected to levy a 1/2 per cent sales tax which covered the raw fish purchased in the harbor. Revenues derived from the tax became a new factor in the community's economic base. The new authority and responsibilities of the City of Akutan introduced a key element into the process of further economic development in the area. The current economic picture in Akutan contains a number of mixed-signals with regard to future prospects. Positive indicators include the development begun on two major onshore processing facilities at Seawest and Trident. There is an even more substantial development proposed for the head of the harbor; but as yet still on the drawing board. All of these facilities could process crab but are also designed to process whitefish either as a supplemental or a primary product. The Akutan Corporation has invested in the community with the construction of its new office building and lease of the village store. The physical community is now in excellent condition with many new homes and extensively rebuilt and expanded infrastructure facilities. Negative indicators include a number of recent economic setbacks, including the collapse of the crab stocks and a major fire at Trident's onshore facilities. From 1981 to 1983, the king crab stock has declined drastically. To a lesser degree, Tanner crab stocks have also declined. The revenues derived from state and local taxation of crab sales to processors in Akutan Harbor has been the mainstay of Akutan's economic base. It was hoped that expanding whitefish production at Trident would make up some of the loss from crab processing, but Trident's main processing/warehouse building burned to the ground in June, 1983. It is not known at this time how quickly Trident can rebuild the facility, or how Trident's overall development plans may be affected by this setback. Annual receipts from the Alaska State revenue sharing program, another major source of revenue, were cut by 80% due to several peculiarities which arise when applying a complex statutory revenue sharing formula to recent circumstances in the state and in Akutan. In combination, the above factors will result in a significant decrease in income to the community over the next several years. Beyond the slow mending of the crab stocks, the near term solution of the revenue shortfall appears to rest with the propects of a re-built Trident facility. Until the local fisheries industry can turn the financial corner to recovery, the situation will continue to decline and may ultimately require the consideration of some form of special State or federal maintenance assistance to help the community through lean times. Akutan has lived through the rising and falling fortunes of fisheries industries before. And now, in spite of the Trident fire, the community's near-term economic fate is strongly linked to the rising prospects of whitefish development in the wake of the rapidly failing crab industry. There will most likely be a period of sorting things out as fishermen and processors evaluate the prospects of crabbing and alternative fisheries. Given the uncertainty of the fishing industry, this could be a lull before another storm of economic activity, or it could be the beginning of a longer lasting economic doldrums. A critical determinant of the form and prospects of the developing whitefish industry is the political context at state, federal and international levels and the consequent development environment of regulations and incentives. Key issues include the use of the whitefish resource as political leverage over other nations ("fish and chips" policy); national interest versus state interest in the harvesting and -25- processing of resource (i.e., Pacific Northwest vs. Alaska); Fisheries interests versus marine construction interests (i.e., Jones Act constraints); and forms of development of the industry that enhance or inhibit participation of elements of the total fisheries industry (i.e., Fishermen vs. Processors; joint ventures vs. shore based development). Regarding the international level, federal legislation has been introduced by Alaska's delegation in Washington that would further enhance the opportunities for American interests within the 200-mile Fisheries Management Zone (FMZ). That legislation would provide for a phased transition of the FMZ into an Exclusive Economic Zone (EEZ) within which only American owned vessels and industries could operate. Prospects for enactment of such legislation appear to be favorable at this time, although the bill would not become law until the next session of Congress; that is, not until some time late in 1984. If such legislation is enacted, it could signal a boom in the whitefish industry. Apparently, the legislation would still permit joint ventures, although the final terms of those ventures have not been established. Other long-term economic possibilities for Akutan include livestock grazing leases and indirect economic activity related to the exploration and development of the oil and gas resources of the Bering Sea Outer Continental Shelf. be Employment /Unemployment. There are again several distinct populations in Akutan to be considered when discussing employment: offshore processor employees, onshore processor employees, and the traditional community residents. Floating processors. While employment figures are not available for individual floating processors, total offshore employment in Akutan Harbor has numbered between 800 and 1,200 during peak activities over the last several years. Assuming that these are typical floating operations, about 10% of the jobs could be classed as administrative; another 5% would be maintenance/professional specialist; about 60% would be line processors; and the remainder would be basic laborers. Employment figures have dropped rapidly as a result of the the depressed crab resource. At the finish of the tanner crab season, in spring of 1983, there was only one floating processor working in Akutan Harbor. It is most probable that few, if any, crab processors will be locating in Akutan Harbor during the next several years. The crab processors base their movements largely on the NMFS Annual August surveys of the crab stocks. Preliminary results of the 1983 survey indicated a continued decline of the resource in the Bering Sea. Qnshore processors. The Trident and Seawest operations could each employ between 100 and 150 employees if fully implemented. Seawest expansion plans are based largely on crab production, with whitefish as a supplemental line. These plans have been at least temporarily derailed by recent low crab production. The implementation of Trident's plans, which concentrated on development of the Cod resource, are now dependent of the unraveling of financial and technical problems resulting from the recent fire. Qnshore employment categories and labor force distribution will be about the same as found on offshore operations. Facilities which place more emphasis on whitefish production could operate on a more continuous basis than the crab-oriented processors. However, Trident's initial operating plans indicate that its plant would probably be fully operational only during the peak months of resource availability, between September and April. Resident employment. The process industry has been almost the only source of cash employment in the community from the 1950's up until the last several years when the City of Akutan and the Village Corporation began to offer employment opportunities. A large number of Akutan's adult population (from 20 to 35 people) found seasonal employment on the process ship stationed at the west end of the community; originally the M/V_Deep Sea; then the M/V Akutan; and most recently, the M/V Western Sea. Crab processing generally provided employment during several periods of the year for a total of six to eight months annually. While several residents did advance to supervisory positions, most were limited to handwork on the process lines. When the M/V_Western Sea replaced the Akutan in 1979, local residents at first contin to work on board as ore. However, over the last several years, residential employment onboard the processors declined. By Spring of 1983, no one in the commmity was employed in processing. The subject of employment on the processors is a sensitive topic in the community; a further reflection of the changed relationship between the community and the "town's" processor which has occurred since Seawest took over the lease from Wakefield. At any rate, residents expressed little interest in future employment as process workers. The lack of local interest in processing employment is due in part to the availability of more attractive employment opportunities through the City and village corporation. The City employs several persons on a full-time basis, including the Mayor, city clerk, city office staff, power plant maintenance person, and public safety officer(s). Other people are employed on a part-time basis in the clinic, recreation building, water and sewer maintenance and janitorial services. The corporation employs a President, a community store manager, and several =27= positions related to maintenance of the corporation's Bayview Plaza building. The federal government employs a postal worker in Akutan and currently provides some summer employment for young people within block grant programs. c. Fishing General background: the community. In terms of both pounds of fish and lar value oO: 1 products, Akutan Harbor has been listed for the last several years as one of the larger fish processing centers in Alaska. Akutan has ranked consistently among the top four ports in Alaska and in the top twenty ports in the United States. The community is located very close to one of the richest fishing grounds in the world, the waters of the Bering Sea Outer Continental Shelf. Ironically, in the midst of this bustling activity, Akutan itself could not be described as a fishing community. The commercial fishing boats are all transient; hailing from other ports such as Dutch Harbor, Sand Point or Seattle and only seldom do local people work onboard these fishing vessels. Akutan is virtually without port facilities and, except for a number of skiffs, lacks anything like a home fleet. The community has considered boat ownership but has rejected all proposals to date to purchase a commercial fishing vessel. At this time, no commercial fishing licenses or permits are held by Akutan residents. A major entry into the field of fishing would be a significant endeavor for the people of Akutan. This would require an extensive educational process for prospective skippers and crew before the participants could expect to maintain a safe and profitable fishing enterprise. DEVELOPMENT. POTENTIAL: BUSINESS AND LABOR CLIMATE A small boat harbor is included as a part of the development scheme envisioned for the head of the harbor. If that development were to be realized, it is quite feasible that the community could begin to participate in the local fishery as crew, and eventually, as boat owners. The community might even want to require its participation in the fishery as a stipulation for development rights. Such a stipulation has been used with some success by the Aleut residents of the Pribilof Islands, 200 miles to the north of Akutan, in their dealings with several foreign fishing interests (Taiwan, Korea, Japan). General background: the fisheries. The long term fate of the fishing industry in Akutan, and for the Western Aleutians in general, appears to rest upon the fortunes of two very different fisheries: crab amd whitefish. In 1982, Akutan Harbor, placed first among all U.S. ports for the value of fish per pound of fish landed. This notable feat is, in fact, an ominous reflection of the recent collapse of king crab stocks and consequent increase in crab prices. There are a number of alternative fisheries being considered to take up the slack of the king crab decline, including an increased emphasis on tanner crab and experimentation with brown king crab, hair crab, herring and squid. However, it is the developing whitefish industry that holds the greatest promise in the Bering Sea's future. Crab: resource and history. Until very recently, as far as American interests were concerned, crab was the only fishery west of Unimak Pass, from Akutan on westward out the Aleutian Chain. Successive booms in king crab and tanner crab during the last twenty years brought hundreds of vessels and thousands of fishermen and process workers to Alaskan waters. There was tremendous excitement, and tremendous investment, in the crab industry. The crab boats were almost all in the 85 to 150-foot class; costing from one to ten million dollars each. Crab production in and around Dutch Harbor at Unalaska grew explosively, finally overflowing to nearby Akutan Harbor around 1979. Each year's crab harvest was larger, often dramatically, than the previous year's catch. -29- Figure Three presents the distribution of King and Tanner crab in the region. Figure Four presents catch figures for these crab species in the Western Alaska Region (west of Unimak Pass) from 1969 to 1982. Suddenly, beginning with the 1981 season, the king crab bonanza began a precipitous collapse. Catch statistics for the Western Region for 1980, 81 and 82, indicate the degree of collapse of the king crab stocks. From 158 million pounds in 1980, the catch dropped by almost two-thirds to 52 million pounds in 1981, and then dropped again by two-thirds to 22 million pounds in 1982. Early reports from the 1983 National Marine Fisheries Service (NMFS) survey indicate a continuation of the scarcity of crab in the Bering Sea region. Thus far, the cause of the decline has not been established, although overfishing, warming waters (a part of the "El Nino" syndrome) and parasite infestation are all suspected as factors. The ex-vessel price for crab early in 1983 was holding at about $3.50 a pound. By the time the crab reached the market it was selling at $18 to $19 dollars a pound. Tanner crab also have not fared well during recent seasons. Commonly referred to as "snow" crab or "queen" crab, tanner crab were not fished commercially in Western Alaska until 1975. Annual catch levels increased rapidly and then leveled out between 70 and 80 million pounds for several years. As king crab became less available, the tanners have experience increased fishing pressure. Catch numbers dropped from a high catch of 80 million pounds in 1981 to half that amount in 1982. Near the end of the 1983 season, the catch was approximately 20 million pounds; again a decrease by half fram the previous year. There are two species of Tanner: Opilio and Bairdi. Opilio, the less valued of the two species, dominates the tanner catch, usually representing as much as three-fourths of the harvest. This is important in that the 1982 Bairdi stocks were reduced by almost 70% from the 1981 figure while the Opilio stocks were reduced by only about 40% from the previous year. Another interesting development is the appearance of QOpilio stocks in Akutan Bay and Dutch Harbor, where typically only Bairdi were found. Apparently the Qpilio have been inadvertently introduced into these waters by the processors through the practice of discarding unusable crab overboard. So far, the long term effects of the newly arrived QOpilio on the more valuable Bairdi stocks are not known. However, it has been speculated that the Opilio could displace the Bairdi or weaken the Bairdi stock through cross-breeding. The 1983 ex-vessel price for tanner crab ranged between $1.30 and $1.50 per pound. Crab: fishing prospects. While the size frequency of the crab landed in the 1982 season indicated that some improvement may occur in stock numbers, there is almost no way to predict what the actual numbers of available crab will be until the results are in from the annual NMFS survey which takes place in August of each year. At this time, there is no scientific basis for determining the long term fate of the crab stocks. FIGURE THREE CRAB HABITAT DISTRIBUTION King Crab && 4 Tanner Crab ||{{Hill{{{llh FIGURE FOUR Catch Statistics: King and Tanner Crab; Western Region; 1969 - 1982 (thousands of pounds) Year 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 King Crab 35,796 31,590 49,934 48,496 52,055 63,857 70,292 82,263 82,002 104,396 128,188 157,989 52,100 22,000 Tanner Crab 1,035 1,462 165 115 520 5,742 7,109 22,938 += 53,177, 70,691 75,160 77,141 80,303 40,100 Source: Alaska Department of Fish and Game, 1980, Department of Community and Regional Affairs, 1983. The prospects for king crab are bleak, at least for the next several years, and possibly for much longer. The tanner crab fishery is likely to remain marginal for the same period. A small number of crab fishermen have switched to alternative crab species such as brown king crab and hair crab, with some success. Brown king crab was considered an incidental catch species until several years ago when the red king crab began to fail. In just three years, the annual catch of brown king crab has climbed from 100,000 pounds to over six million pounds at a value of $24 million to the fishermen (1982-83 season). It is clear, however, that the brown king crab will provide a reprieve for only a limited number of boats. With respect to fishing out of Akutan, it is important to note that brown king crab populations inhabit deep waters and are found primarily at the western end of the Aleutian chain and in the vicinity of the Pribilof Islands. Both of these locations are hundreds of miles from Akutan. Prospects for a hair crab fishery remain uncertain. Little is known about the habits of the hair crab. Exploration thus far has revealed only that the species is widely and unevenly distributed with no known areas of concentration. Hair crab have proven to be problematic in shipping, with high rates of dead loss. There is a slim possibility that an agreement could be worked out with the Soviet Union to exchange fishing rights: their king crab resource for U.S. whitefish resource. However, the present position taken by the U.S. State Department is that the necessary negotiations could not take place in the present atmosphere of "cool" international relations. Given the relatively poor prospects for Bering Sea crab fisheries, it appears that many fishermen will have to take the further step of converting to the pursuit of Whitefish species. Whitefish: resource and history. It is estimated that one-fifth of the world's available whitefish resource is located in the Bering Sea, about 2 1/2 million metric tons. Three categories are used here in discussing the Bering Sea whitefish resources: cod, pollock, and "other species". Other species, in this case, include Pacific Ocean perch, Atka mackeral, sole and flounder. This division reflects the sequence in which substantial whitefish fisheries are most likely to develop. While whitefish populations demonstrate varying degrees of seasonal movement, they tend to concentrate during parts of the year along the edge of the Outer Continental Shelf, generally from early Fall through Spring. Figure Five presents the distribution of these species in the Bering Sea and North Pacific during their "congregated" periods, when they are most efficiently harvested. -32- WHITEFISH HABITAT DISTRIBUTION Alaska Pollock Black Cod OOOO < retetateteteteted ISK KKK 606060005 ecenates Setetes ores Se °, 8 2 eens Oo ~ Oe, OO S80 “ Se SKERRRE SRSRRNG SSIS S 9 x “ < ° ‘S SS “ SKS x S505 vetate, SSIS O08 XO Se O eo OS vonacenates SRG SRG SRS < +, ~ SN .o, RS x <> x S 589 oS Oo 2 xR > es 2 , Be <? S82 O > se <> Se ~ 2 -33- Up until several years ago, the harvesting of these vast resources was almost exclusively the concern of foreign fishermen and foreign Processors. Shortly after World War II, Japanese, Korean, Taiwanese and Russian fishing fleets began to cruise the Bering Sea at will, harvesting enormous quantities of fish, some of which found its way back to American dinner tables after roundabout journeys to the far east for processing. The introduction of the 200-mile Fisheries Management Zone in 1976 signalled the end of that era. However, it is still not clear just how Americans are going to “Americanize" the vast resource. The almost boundless optimism of several years ago has been replaced by a cautious realism. Nevertheless, there has been some headway made into the art of catching, processing and marketing of whitefish and prospects are improving on several fronts. The development of an American (and Alaskan) whitefish industry has taken several independent courses. However, the prospects for these different strategies are strongly interdependent in that the different approaches are generally competing for the same resources and markets. Major whitefish strategies which have progressed beyond the conceptual stage include joint venture operations, large catcher/factory ships and onshore processing plants. Particularly with regard to fishing development in Akutan, the first two of these strategies will have little or no directly beneficial effects on Akutan. In fact, their continuation and success will to some degree detract from the development of an Akutan-based fishery centered on the expanding onshore whitefish operations in Akutan Harbor. Whitefish: joint ventures. The joint venture operations were the first effort to take advantage of the "Americans first" 200-mile Fisheries Management Act enacted in 1976. As a result of the Act, American fishermen and processors have the first option to catch and process an annual allowable harvest of given species within the 200-mile limit. That part of the allowed catch which Americans do not, or cannot, harvest and/or process, is then made available to foreign countries on a quota basis. In a typical joint venture, a number of American fishing boats contract to catch a foreign nation's designated quota of fish which is then delivered to foreign processing ships. The entire operation takes place at sea. While joint ventures vary depending upon the participating nations, they have given a number of American fishermen the opportunity to gain experience in the fishery while meeting their boat payments. Making boat payments in the wake of the crab failure is the driving energy behind a surge of interest, and boat conversions, from crabbers to trawlers. The joint venture is perceived as both a blessing (by American fishermen) and a hindrance (by American processors). Processors argue that the economics of the joint venture create an unfavorable climate for the more substantial development of an onshore domestic whitefish industry. According to the prevailing philosophy in Washington, D.C., joint ventures are intended to serve only a temporary role in the transition from foreign to American control of the whitefish resource off American coasts. However, no schedule has actually been established for phasing out joint venture operations, and the marginal economics of the industry almost demand that a fixed schedule be in place to provide an assurance for investment. Without such assurances to encourage onshore development, joint ventures are likely to remain the dominant approach to the fishery, at least for the next five to ten years. Whitefish: catcher/processors. One of the original experiments with catcher/processors waS a demonstration program supported by the Alaska Fisheries Development Foundation (AFDF). The Aleutian Mistress, a 124-foot crabber, was converted to a longliner/processor and fished cod for a winter season. The conversion process required three days and was designed to be fully reversible. Longlining is generally a low-volume, high-value fishery requiring special handling of the product to obtain the highest market value. Cod, not generally considered a high-value fish, was the target species in this experimental program. The nine-man crew employed the latest technology, including a Mustad catching system and Baader heading, smoothing and filleting machines. While this project answered a number of questions about the catching, processing and marketing of Bering Sea cod, it did not operate profitably and remained dependent on AFDF grants. In the final analysis, the economics of operating the vessel simply were not satisfied by the economics of the market for Cod. Also, the blast freezer could not keep up with the automated catching and processing systems and consequently, a great deal of fish was wasted. A major problem revealed by the project was crew attitude as the boat shifted between the very different fishing lifestyles of crab fishing and whitefishing. The American whitefish industry took another evolutionary step in 1982 when the American-registered 302-ft. factory trawler Golden Alaska began operations in Alaskan waters. While the vessel is owned am controlled by a conglomerate consisting largely of foreign interests, its operation does indicate that economic conditions of entry into the fishery are being viewed as more favorable. The Golden Alaska spent a winter working the Bering Sea and reports to have made a profitable first journey, targeting on cod amd pollock. According to initial reports, the Golden Alaska found cod to be less abundant than anticipated, but found pollock constantly. -35- Targeting on pollock as the primary species has not been attempted by Americans before and will ultimately require the development of entirely new markets. Nevertheless, representatives of the company state that long term success in the whitefish industry will depend mostly on the successful exploitation of the pollock resource, and that cod cannot be relied on as the sustaining fishery. Samples of frozen cod and pollock products from Golden Alaska's first trip were favorably received at a major national frozen foods show in New Orleans. The company is optimistic that their operation can become increasingly profitable as experience in both fishing and marketing are gained. The latest entrant into the catcher processor field is still under construction. The 132-foot Ocean Beauty represents the state of the art in both fishing and financing in the whitefish industry. The boat is part of a $6.5 million fishing "package" which includes one other 98-foot crab boat, and contractual arrangements for transshipment and marketing. This enterprise is based on an investor-group format (American Fish Ventures) with many cash contributors; thereby reducing individual risk. An indication of the tightness of this operatim is the fact that the boat skippers and the product salesman will also be members of the investor group. The Ocean Beauty is expected to fish 250 days a year and will deliver finished products to Dutch Harbor for transshipment. The boat has a capacity of producing 25,000 pounds of cod fillets per day and can carry 500,000 pounds of product. Investment plans call for a break-even point of 7,000 pounds per day. The group also expects to go through a period of slow market reaction while the product's credibility is established. If the current project is successful, the group has options to purchase several other vessels. The above examples are presented to provide a general picture of the status of catcher/trawler operations. There are a number of other American vessels that have entered the field. Some have been successful; many have since filed for bankruptcy and are idle in port. Whitefish: shore plants. Over the last three years, a small number of seafood processors in the Western Aleutians have ventured into the uncertain arena of onshore whitefish production. Most of these whitefish operations were intended to serve as a supplemental production to the primary crab production, and most of these operations have since closed their doors. Two companies (Sea Alaska, Universal) still plan a whitefish effort during the 1983-84 season and expect to employ about five large fishing vessels each. The most ambitious whitefish project to date is in Akutan where Trident is developing the largest whitefish facility on the West coast. Trident's first year operation employed between seven and ten trawlers to supply the plant over an eight month period from September to April. -36- Whitefish: fishing prospects. While the prospects for the crab industry have collapsed, the prospects for whitefish are slowly beginning to rise. In large part, the rising enthusiasm for whitefish is a direct response to the decline in crab production; essentially the same boats may be are involved in both fisheries. The idea of convertible crabber/trawlers has been brewing ever since the introduction of the 200-mile fisheries management zone introduced the possibility of Americanization of the whitefish industry. It may well be that the economics of operating the large crab boats will not be able to justify their continued existence in the new fishery; many people feel that the future of the Bering Sea fisheries belongs to smaller, more fuel efficient boats, no longer than 80 feet. The 1983-84 fishing season should provide a large scale test of the crabber/trawler concept. By any measure, the economic health of the emerging whitefish industry remains uncertain. Future economic conditions of the industry are subject to a number of unstable and quickly changing determinants, including regulatory environment, resource assessments, market conditions, and international monetary fluctuations. Nevertheless, for the last several years, an increasing number of skippers, processors and financiers have been trying to interpret the signs and numbers, seeking the signal that would set them on the way to development. In 1982, there were about 30 boats fishing for whitefish in Alaska; most of these are converted crab boats. This is up from no boats before 1980. These boats are working in joint ventures or delivering to shore plants. A Seattle based fisheries consulting firm has predicted that as many as 140 boats will be involved in the Alaskan whitefish fishery by 1986. However, other experienced sources report that joint venture operations may be saturated, and point out that the converted American crabbers are so efficient that the existing participants could probably handle the catch of increasing foreign quotas for the next several years d. Seafood Processing Seafood processing is the foundation of Akutan's economy. This has been the case for the last 100 years and it will continue to be so in the foreseeable future. The community derived its first economic benefits from the presence of the industry in the form of jobs with the whale, cod and crab processors in the harbor. More recently, and more substantially, the community has derived revenues from the industry through fish taxes at the state and local level. Finally, the formula for determining the community's share of state revenue sharing funds is partly dependent upon the amount of local revenue generated, which in this case is the locally imposed fish tax. a7e The boom in the crab industry which peaked in 1980, motivated Akutan's incorporation and supported an explosion of economic activity within the community. The crab boom has come to an end. Crab processors have almost completely pulled out of Akutan Harbor and may be entirely absent during the 1983/1984 seasons depending on the level of crab stocks revealed by the NMFS 1983 stock survey. Several companies operating in the Aleutians have made efforts to shift from crab to whitefish production. In Dutch Harbor, Norgaard, Sea Alaska (ConAgra), Universal Seafoods and Johannson/Sea Pro have each experimented with whitefish production. Norgaard and Sea Pro have closed their Dutch Harbor plants. Universal and Sea Alaska have stated intentions to continue efforts focused on salt cod production. Poyal Alaska Seafoods, which now leases the Pan Alaska plant in Unalaska was recently awarded $450,000 by the Alaska Fisheries Development Foundation to initiate (fish paste) operations in 1984. The experimental operation will employ 3 boats harvesting 6.5 million pounds of pollock. In Akutan, Seawest and Trident have experimented with whitefish production. Seawest's approach has been cautious, while Trident's effort represents the most ambitious experiment to date in whitefish onshore development. The success, and lack of success, of onshore ventures over the last several years is an indication of the marginal nature of the prospects for developing a whitefish industry in Alaska. The processors most likely to play a role in the immediate future of Akutan's economy are Seawest Seafoods and Trident Seafoods. Longer term prospects include a major seafood development at the head of the harbor. Seawest Seafoods Incorporated four years ago, Seawest Seafoods is an _ Edmonds, Washington-based seafood processing firm. The company was formed in 1979 by Darryl Pedersen, Jerry Tilley and Bill Kuper. The three men had been executives with Vita Seafoods when that firm was purchased by Japanese-owned Universal Seafoods. Upon incorporation, Seawest took over the Wakefield Seafoods lease on the property and dock at the west end of Akutan and stationed its process ship, M/V Western Sea at the site. FIGURE SIX presents the layout of the property and the structures that presently exist on the land. FIGURE SEVEN presents the expansion plans provided by Seawest to the Army Corps of Engineers in 1981 as a part of the process to obtain a permit to construct on an inter-tidal area. Seawest originally planned for construction of these facilities to cover a three-year period (1981-84) in three distinct phases. The first phase, now completed, was the construction of an onshore warehouse. The second phase was to be the construction of a 30 by 300-foot steel piling and concrete pier to the south of the existing dock. The third phase would consist of the development of upland processing facilities. The warehouse built in phase one was constructed in a manner which would accommodate its conversion to a processing building with minimal expense. While the envisioned facility was designed primarily to function as a crab processing facility, development plans included supplemental whitefish processing lines. Primarily due to the economic constraints imposed by the diminished crab resource, the above plans have not materialized. The warehouse structure still functions only as a support building for operations aboard the M/V Western Sea. Unless Seawest were to opt for a major shift to whitefish processing, the continued presence of Seawest processing activity in Akutan harbor will depend upon a recovery of the crab resource. No one at this time is able to project just how long that recovery might take. There is a possibility that if the annual resource survey performed by NMFS in August indicates a continuing reduction in crab numbers, Seawest may stop processing in Akutan altogether until prospects improve. In previous years, the company has moved the M/V Western Sea up to Nelson Lagoon during the summer months to participate in the salmon fishery. Over the last several years, ths ship has been towed to and from Nelson Lagoon by tugboat at a reported cost of around $120,000 for the round trip. Because of the current state of marginal profitability, the company elected this year (1983) to move the ship under its own power. This proved to be more complicated than originally envisioned. After several false starts, and subsequent repairs, the ship did leave Akutan under its own power. Talks with crew and processing supervisors revealed the possibility that the company may choose to leave the ship in the proximity of the salmon fisheries and forego further attempts to process crab (in Akutan) until the crab population recovers. At this time it is most likely that Seawest's development interests in Akutan will remain cautious. Seawest recently purchased a major cannery facility in Bellingham, Washington, as well as several recognized seafood labels. This purchase may further indicate a shift in the company's product lines away from crab and into canned product lines such as salmon, but also including shrimp, oysters, mussels and sea sardines. On the other hand, this diversification could permit the company to absorb some losses in the crab products line while maintaining operations at a level which could be increased when, and if, the crab resources rebound to higher levels. Seawest's actual whitefish operations have been involved primarily with tendering operations for the Aleutian Mistress during that vessel's experimental Bering Sea frozen cod fillet program which was financed by the Alaska Fisheries Development Foundation. Trident Seafoods In June of 1983, a fire swept through the newly constructed Trident facility in Akutan. That fire destroyed the largest whitefish production plant on the west coast and put a damper on an experimental production program that was to establish a model for American whitefish onshore development. Plans for reconstruction of the plant remain uncertain at this time. Trident Seafoods was founded in 1973 by Charles Bundrant and J.R. "Mike" Jacobsen. The Seattle-based firm originally specialized in crab products but did handle salmon products as well. Trident has operated in Akutan since 1979, employing the floating processors, M/V_ Neptune, M/V Tempest, M/V Mr. J and M/V Billikin. Production in Akutan was initially limited to king and tanner crab but in 1981, Trident began to formulate plans to develop a major onshore whitefish processing plant. Trident received an $800,000 dollar grant from the Alaska Fisheries Development Foundation (AFDF) in 1982 to assist the company in initial capital investments. The Trident plant was to serve as a model for further American Whitefish plants and to provide production information that would enable other processing firms to enter the field. FIGURE EIGHT presents the general layout of the Trident facility at the time of the fire. Trident's whitefish processing season is expected to run from mid-August to mid-April of each year with the four month period from mid-December to mid-April being the peak months of production. First year production was to emphasize wet salted cod and experiment with other product forms such as frozen fillet packs. The production design indicated a maximum processing capacity of about 300,000 pounds of fish per day. production goal for the initial season was set at utilizing at least 20 million pounds of cod in-the-round, or about 100,000 pounds per day. In fact, the first year's production utilized about 24.5 million pounds of fish. Almost all of the product was in the form of salted cod. When cod production dropped off in mid-April the company shifted production efforts to tanner crab; however, the tanner season was not particularly successful. In June, 1983 the plant was essentially in an idle state, with activities limited to clean-up in preparation for possible sockeye salmon processing in the event that the Nelson Lagoon processor fleet could not handle the year's catch. mn June 9th, late in the afternoon, a fire broke out in the main processing building, almost completely destroying it. The effect that this fire will have on Trident's development, and the development of the whitefish industry in general, is still uncertain. Initial indications are that the facility is a total loss and will FIGURE SIX EXISTING SEAWEST FACILITIES (SHADED] FIGURE SEVEN PLANNED SEAWEST EXPANSION (DARKLY SHADED] -4]=- require some $10 to $16 million to replace. All major handling, cold storage and freezing facilities were apparently lost. However, the fire did not reach to a number of nearby support buildings, including the power plant, warehouse and several dormitories. The concrete and steel docking area upon which the building was constructed was also not damaged by the fire. Reconstruction of the facility will first require that the existing remains be cleared away. The extreme shortage of land suitable for temporary storage of the disposed building elements has resulted in a round of negotiations between Trident and the Akutan Corporation. Other constraints to the reconstruction of the facility are unresolved insurance questions and uncertainties regarding state and federal incentives or disincentives related to onshore development. Until the shore facilities are reconstructed, Trident has proposed the use of floating processors anchored in Akutan harbor to provide production capacity during the fall and winter ccd season. Head of Akutan Harbor Development The concept of a seafood industrial site at the head of Akutan Harbor has developed over the last several years under the guidance of the newly incorporated City of Akutan. With its close proximity to the fishing resource, abundant fresh water, available uplands, and protected inlet, Akutan Harbor offers natural advantages for location of major onshore facilities. The City contracted an engineering firm to produce a preliminary port study for the head of the harbor. That study, completed in 1981, presented a phased long term development plan and provided port operation options and cost estimates. The proposed facility is further discussed under the section "Proposed Harbor Facilities", page 66. The design whitefish processing facility would have a 500,000 pound per day capacity and would employ over 1,000 persons, including the crews of an anticipated fifteen-boat fleet that would supply the plant with fish. The study concludes on an optomistic note which is qualified by the need for extensive further studies, including cost/benefit analyses, comprehensive land use plans, water supply and power source options, and detailed operation and maintenance options. The City is hoping to find a seafood processing interest(s) that would be willing to carry the project forward from the present preliminary stage. That is, the City (and Corporation) have the land and the design concept, but lack the financing and expertise to move ahead with the project. The anticipated cost for development of the envisioned infrastructure and production -42- USS 1145 TRIDENT FACILITIES IN AKUTAN FIGURE EIGHT DEsTRovYEto BY A FIRE JUNK, 1983 NOTE: THIS WAREHOUSE STRUCTURE WAS Mig , -43- plant is approximately 17 million dollars (1981). Since the completion of the preliminary study two years ago, no financial interests have ventured to enter into the proposed arrangement. The City will also continue to work with the state and federal governments concerning harbor facilities construction grants. e. Other Sources of Economic Activity There is little immediate potential for substantial diversification of Akutan's economy beyond fishing related industries. There are no known commercially viable mineral resources in the vicinity. The Akutan Village Corporation has land holdings over much of Akutan Island and nearby Akun Island which could be leased for cattle or sheep grazing. While Akutan has been mentioned as a possible staging site for Bering Sea oil and gas activities, it is not high on the list of site options. Akutan has also been included in lists of site options for the termination of a Bering Sea pipeline that would run from the St. George and North Aleutian Shelf lease sale areas to some site in the Aleutian Chain. However, sites further to the east are viewed more favorably by the oil industry and the citizens of Akutan have indicated that they do not favor development of lands in Akutan Harbor as an oil transshipment terminal. 2. Native Corporations a. Regional Corporation Akutan is located within the regional jurisdiction of the Aleut Corporation with regional boundaries which include the western half of the Alaska Peninsula, the Aleutian Islands and the Pribilof Islands. The Aleut Corporation has not had a significant influence on the development of the community of Akutan. However, as a part of the Native Claims Settlement Act, the Aleut Corporation does control the sub-surface mineral (including gravel) rights of those lands selected by the village corporations, in this case, virtually all of the land surrounding Akutan. Of primary concern, will be economical access to the gravel deposits in the area that could be required to develop the lands at the head of the harbor and roads extending out from the existing community site. Thus, the interests of the Regional Corporation will enter into any major development dependent on gravel as a construction material. A significant Regional Corporation scheme, recently turned to disappointment, was a proposal by the Aleut Alaska Shipping Company (a wholly owned subsidiary of the Aleut Corporation) to establish a cargo container service in the Aleutian/Pribilof region in partnership with American President Lines (APL). APL would have delivered containers from the continental United States to the port at Dutch Harbor, and Aleut Shipping would have further distributed the containers to communities in the region. The legality of the shipping arrangement was dependent on a proposed exclusionary revision of the Jones Act which would have effectively treated Alaskan ports as "foreign destinations." Attempts to revise the Act were not successful and the shipping scheme, as well as the Aleut Shipping Corporation, came to an end. Success of the operation could have provided substantially reduced prices for goods in Akutan as well as an increase in frequency of delivery. The Akutan Village Corporation includes about 80 members in total. A 1980 Corporation report indicated that 27 shareholders were then residing outside of Akutan. As a result of the Native claims settlement in 1971, the Akutan Corporation received $625,000 in cash payments over the first ten years of its existence. The Corporation also made land payment selections of 92,106 acres of surrounding land. The corporation has already received title to over 89,000 of those acres. ~45- Qne of the first acts of business for the Corporation was to lease the town's general store from a private individual and install a Corporation employee as store manager. A more ambitious, and very successful, project has been the planning and construction of a two-story corporation building in the center of town. The “Bayview Plaza" building completed in 1982 is one of the most modern and attractive buildings to be built in the Aleutians. the first floor, the building has a waiting area, washeteria, U.S. Post Office, offices for the City of Akutan as well as the Akutan Corporation offices, and a large multi-purpose room. The second floor is completed to serve as apartment and hotel accommodations. The cost of the project was $700,000 for which the Corporation acquired a conventional loan using the City's lease of the ground floor as collateral for the loans In 1982, the Corporation members voted to give each enrolled villager a $1,000 dollar dividend check. The Corporation has not indicated any specific plans for further development or use of its resources. Most of the land at the head of the harbor is owned by the village corporation. The development of that land will require some arrangement between the City and the village corporation (and the regional corporation as mentioned above). Section 14(c)(3) of the Alaska Native Claims Settlement Act (ANCSA) requires village corporations to reconvey up to 1280 acres to municipalities which are located within lands selected by the village corporation. The purpose of the conveyance is to provide the municipality with ample land to expand and develop. It is possible that the City would choose to select parts of the land at the head of the harbor as a portion of its ANCSA designated 14(c)(3) entitlement. The land at the head of the harbor is easily the most valuable undeveloped land in the area. Me appraisal values 32.5 acres of that land at $2,500,000. There are obviously some very high stakes involved in the final selection agreements. The City has already proposed a number of "“in-town" selections, including the clinic, public safety building and recreation center sites, rights-of-way (boardwalks), and utility easements. Additionally the municipality has chosen 20 acres of land immediately to the west of town which is the site of the seaplane ramp and operations area (presently leased to Seawest). "“Qut-of-town" lands which the City has tentatively considered for selection include watershed areas (100 feet on either side of the streams that flow into Akutan Harbor), a solid waste disposal site, 20 acres at Akutan Point and 20 acres at the head of the harbor. The process of land selection and conveyance will probably extend over many years, although an arrangement for the head of the harbor might have to be found more quickly if a developer were to come forward with an interest in the proposed seafood industrial park. 3. Akutan Traditional Council The Traditional Council of Akutan is an Indian Reorganization Act (IRA) non-profit corporation organized under the laws of that act established in 1934. The political and econamic influence of the Council have diminished over the years with the creation of the village corporation, and more recently, the incorporation of Akutan as a second class city. With the recent death of the Village Traditional Chief and the rapid development of the community, the traditional values and patterns of life have come under increasing stress. Interviews in the community indicate that the people of Akutan may turn increasingly to a revitalized Traditional Council as a means to preserve elements of the Aleut way of life that are disappearing. 4. Commmnity Attitude Towards Growth A recent magazine article by a former City manager of Akutan states that “the people of Akutan in general want to be a part of the twentieth century. In particular, individual members of the community have not been able to accommodate themselves to what this means. Difficult social and health problems exist, and the balance between traditional and modern life has been destroyed." It could be added that the people of Akutan are very much a part of the twentieth century, with a long history of assimilation of "modern" patterns of living. Like many another small and remotely located communities, the people of Akutan are faced with the dilemma of aspiring to the convenience and variety of modern life, on the one hand, while on the other, not desiring the local industrial development that might provide them with the material access to that modern world. -47- Until recently, the community has had little influence on the shape of development occurring about the town. The formation of the community a hundred years ago was primarily at the instigation of a comercial enterprise and the Russian Orthodox Church. The early whaling station was established and operated independently of village consideration other than use of local labor. After World War II, when Wakefield began crab processing operations at the west end of the village, the company's lease arrangement was with the Church (with offices in Kodiak), not with the villagers. Although an IRA Council was established in Akutan in the 1930's it was not until the Alaska Native Claims Settlement Act of 1971 that the people actually living in Akutan began to have and assert a real degree of control over the destiny of their community. Another large measure of local control was gained in 1979 when the community incorporated as a municipality. The history of development in Akutan harbor has instilled in the population a realistic view of the future: development is bound to happen, and their future will be made of that development. However, while still adjusting to the newly obtained powers concerning the shape of local development, the City and corporation are determined to grow into a position of maximum control of that development. The City of Akutan recently performed an attitude survey in the community. The survey was designed to assess people's attitudes concerning general directions in which Akutan might develop, as well as attitudes about’ specific development proposals and community priorities. The survey revealed a wide range of personal attitudes in the community, without a clear consensus on the major concept of the preferred shape of a future Akutan. Many people want Akutan to be like a "real" city, with restaurants, movies and a road system. Others would prefer Akutan to remain small, preserving its "village" feeling. As a compromise position, many people in Akutan would accept a development scenario consisting of a major seafood facility and harbor at the head of the bay, without physical connection to the present community, and the present community having its own separate small boat harbor. While mixed opinions have been expressed on the subject of possible oil related development in the harbor, the majority of residents would not like to have either a support base or a pipeline terminal in the harbor. The City of Akutan has formally stated its concerns about the possible effects of Bering Sea oil development on the biological resource upon which the community's economy is now entirely dependent. 5. General Cost of Doing Business a. Building and Rental Building in Akutan is a complex and costly proposition, as it is in the Aleutian region in general. Many different elements must be brought together at one point during a very short building season with generally unfavorable weather. These elements include financing, construction materials, permit processes and labor; each of which has its particular constraints. While these are problems associated with building anywhere, these are especially acute in a remote and inclement site such as Akutan. The Alaska Department of Transportation and Public Facilities (DOT/PF) has developed a computer program that provides the relative cost of constructing buildings on a per-square-foot basis for different regions and communities in Alaska. These costs reflect the cost of buildings constructed in recent years, taking inflationary increases into account, and are related to the cost of constructing a similar structure in Anchorage. These figures should be considered as approximate and are presented here only to indicate the general degree of increased expense of building in Akutan. Additionally, the figures presented here are actually taken from the community of Unalaska as no recent construction had taken place in Akutan at the time of the analysis. Pre-construction costs were calculated to be 29% higher in Akutan than in Anchorage, building costs would be 33% higher and maintenance and operational costs would be about 35% higher. It should be noted that the cost of building in Anchorage is considered to be between 25% and 50% higher than comparable construction in the Pacific Northwest. A large number of buildings have been constructed in the last several years in Akutan, both public and residential. The cost of constructing the public buildings compares reasonably well with the DOT/PF computer estimates, about 30% and 40% above Anchorage costs. However, the residential units were less expensive than the computer estimates because of the manner of their construction. The sixteen houses were built in Seattle, each in two modular sections, and barged to Akutan along with a crane. In Akutan, the sections were placed on post foundations, bolted together, and then plumbed and wired. This construction technique provided great savings in time and labor, and produced good quality homes at costs that were comparable to building standard homes in Anchorage. There are only limited opportunities to rent commercial or residential space in connection with development activities in Akutan. All existing commercial space, and almost all residential space, is fully occupied, and will be for the foreseeable future. -49- The second floor of the new Akutan Corporation building contains two one-bedroom apartment units and four efficiency units. The et units rent for $90 a night or $900 per month on a monthly basis. The efficiency units rent for $60 a night or $700 per month (1983). Seawest leases its waterfront site from the Orthodox Church (at an undisclosed figure) and owns the land on which the bunkhouse it located. If Seawest were to reduce its processing presence in Akutan during the next several years, it is possible that the company's warehouse and living quarters could be available for lease. Trident apparently has some form of lease arrangement for several parcels of land around the harbor with an individual living in the state of Washington. Deep Sea company has a similar arrangement for land at the old whaling station site. There are no figures available regarding the costs of these lease arrangements. b. Transportation Costs Transportation to and from Akutan is limited to amphibious aircraft and a small number of marine transportation services. All forms of travel to and from Akutan are subject to delays due to inclement weather with subsequent effect on costs. Air passenger travel to Akutan is normally made by way of a scheduled flight from Seattle or Anchorage to Unalaska followed by a charter connection to Akutan. Two airlines, Reeve Aleutian Airways and AIRPAC, fly daily to Unalaska and both charge $660 round trip from Anchorage (1983). AIRPAC operates the charter from Unalaska to Akutan using a Grumman Goose. The charge per person varies with the number of passengers but is generally around $70 to $100 (the charter costs $388.80 and the plane has a capacity for seven passengers). Air freight charges to Unalaska (Dutch Harbor) are about 60¢ per pound with a minimum charge of about $23 (these figures represent averages of the charges for Reeve, AIRPAC and Alaska Air International which differ slightly). The official tariff for air freight from Unalaska to Akutan is 30¢ per pound although freight is not strictly charged depending on space availability. There are presently only two shipping companies which regularly transport goods to Akutan. The BIA freighter North Star III makes one trip annually to Akutan, usually during the early part of the summer. Western Pioneer Lines, based out of Seattle, services the fish processors operating in Akutan Harbor, delivering supplies and hauling processed fish products back to Seattle. There are a number of other vessels which deliver freight to Akutan on an informal basis in the course of their normal fisheries activity. DEVELOPMENT. POTENTIAL: BUSINESS AND LABOR CLIMATE BIA and Western Pioneer freight charges are available from the companies in published tariff schedules. When compared ™m an item-for-item basis, the freight rates offered by BIA are typically higher than those available through Western Pioneer. The higher rates are attributable to the fact that the BIA operates its vessel to provide freight service to many small, isolated, communities which are not serviced by the private sector. These are often communities which a private carrier could not serve at a profit. The higher rates also result from the BIA vessel's returning to Seattle essentially unloaded as compared to the Western Pioneer vessels for which the Seattle run is a money-making haul of fish products. The City does not tax its residents for property ownership. There is, however, a sales tax of 1/28 on the sales and importation of goods. This tax applies to the ex-vessel price of fish purchased by the processors in the harbor. The State of Alaska also levies a raw fish tax on processors which varies depending upon the species and whether the processing plant is shore based or floating. For king and tanner crab production, the raw crab are taxed at 5% of value in the case of floating operations and 3% for shorebased operations. Developing species, which includes all forms of whitefish as well as brown king crab and hair crab, are taxed at the more favorable rates of 3% of value for floaters and 1% for shore based operations. Frozen Salmon products, which are seldom processed in Akutan, are taxed at 3% of ex-vessel value. Fifty percent of the State raw fish is returned to the local community as shared revenue. d. Insurance Fire safety ratings are established by the Insurance Services Organization (ISO). The fire insurance rating for Akutan is a ten, which is the highest risk category possible. The reasons for this include the lack of a recognized fire brigade and general lack of fire fighting equipment. -51- e. Utility Rates Water and Sewer. There is presently no charge levied for the use of the recently constructed water and sewer facilities available to the community. The City is considering the introduction of some charge for water use to be applied towards maintenance and operation of the system. Power. The City currently charges a usage rate of 23.23 cents per KWH. This cost may be adjusted as a function of the cost of fuel oil and an ongoing assessment of the actual costs of system maintenance and operation. Because of its small size, the system does not come under the jurisdiction of the Alaska Public Utilities Commission. Telephone. The community telephone service recently switched from Alascom Inc., to Sitka Telephone Service. Alascom was charging a flat rate of $100 per instrument per month and all calls were charged at long distance rates. Sitka Telephone will provide the service for $17 per month including local calls. 6. Services Available for Development There are virtually no support services available in Akutan which are directly applicable to development in the area. That is, a prospective developer should consider the logistical elements of development in Akutan to be about the same as for a remote location in Alaska distant from any community. While local residents could serve very well in general labor occupations, almost all skilled or professional labor would have to come from outside the community. 7. Labor Relations There are two major labor force elements for which discussions on labor relations in Akutan are relevant: fish processing and general labor. Fish processing will continue to be the economic mainstay of the community and the harbor. Further development of the onshore processing industry will likely carry stipulations of local hire and training. Virtually all processor employees in Akutan Harbor are transient workers from outside Akutan, most from out-of-state, and many foreign nationals. These workers usually work on the basis of four to six month contracts which include roundtrip airfare to the Pacific Northwest. As stated earlier, the residents of Akutan have a long history of work onboard the processors docked at the west end of town. Over the last several years, following a change of ownership, the number of local residents in the processor workforce dwindled and finally has become -52- non-existent. This has come about largely because of the difference in operating style between the former and current holders of the lease of the property and facilities at the west end of town. The previous operator, Wakefield Seafoods, established an almost '_ paternal relationship with the residents of Akutan while Seawest, the present Operator, has assumed a more businesslike attitude in its relation with the community. There have been a number of conflicts, primarily concerning the uses of land, which have created a general atmosphere of wariness between the community and Seawest. Trident, with facilities located further to the west of town, has not established any significant relationship with the town although the City and Trident have worked together on certain common causes. Seawest leases its land from the Orthodox Church, with offices located in Kodiak. Trident, the other major onshore processing development leases its land from a private landholder who lives in Seattle. Therefore, these companies do not have a landlord-tenant relationship with the community. Any further major development in the harbor will have to occur on land presently owned by the City and Corporation. This fact, and the past experiences of the community with the processing industry will likely result in the consideration of development stipulations, including issues of the local workforce. 8. Business and Labor Climate: Implications for Development The major implications of Akutan's overall business and labor climate relative to development potential and constraints are summarized below: e Fish processing is and will remain the mainstay of the Akutan economy « e Due to the catastrophic decline in the crab resource, and the only gradual introduction of onshore whitefish production, Akutan will experience a several year period of greatly reduced revenues, including reductions in local sales tax, state raw fish tax revenue sharing, and general State revenue sharing. This reduction could be as great as 80% of the revenues experienced during the last several years. e Employment opportunities for Akutan's residents will probably decrease over the near term as a result the diminished City revenue base. e Community residents, and their representative institutions (the City of Akutan and the Akutan Corporation) have expressed a desire to further develop Akutan Harbor for the purposes of the -53- seafood industry. Specifically, the City has completed the preliminary studies for a major facility to be located at the head of the harbor and have solicited financial interests for a partnership in developing the site. Economical access to gravel resources will be a critical aspect of uplands developments in Akutan Harbor. The three parties involved in the future control of this resource (City of Akutan, Akutan Corporation, Aleut Corporation) have not yet entered into a process of determining a working relationship regarding gravel use. Another critical issue, to be resolved at the local level, is the reconveyance of lands from the Akutan Corporation to the City of Akutan as stipulated by ANCSA 14(c) (3). The proposed development at the head of the harbor, and the existing development at Trident (which recently experienced a major fire), are both strongly dependent on the the industry and market dynamics of the growing American whitefish industry. The health of this young industry remains marginal and prospects are linked to several state, federal and international policy developments. Key issues include the continuing role of joint venture operation which act as a constraint to onshore development; possible relaxation of the Jones Act restrictions on use of foreign built vessels; and development of an Alaskan fisheries development policy. Given existing onshore development plans (i.e., Trident and Seawest) the total resident population could jump to several hundred. If the project at the head of the harbor were to be realized to its larger potential, the population could jump to several thousand residents. There will be an increasing potential for political conflict as the number of non-Native fisheries employees qualifying for local residency increases. This in turn will require a clarification of the roles and powers maintained by the City, the village corporation and the traditional IRA Council. Until a small boat harbor is constructed in proximity to the community, the residents of Akutan are not likely to become involved in commercial fishing as boat owners and operators. © the other hand, the community could stipulate, in conjunction with the development rights in the harbor, that the developer assist the community in acquisition of boats and/or fisheries training. OCS participants in the Bering Sea (St. George Basin, North Aleutian Shelf) are not likely to make direct use of Akutan as a staging/transshipment area during either exploration or development phases. The community has vocalized strong concerns regarding the potentially negative effects that Bering Sea oil and gas development could have upon the fisheries resource. Costs of development and production in Akutan, including transshipment of the product, would be 30% to 50% higher than costs in Anchorage, or up to 100% higher than similar projects developed in the Pacific Northwest. These costs are a considerable handicap, particularly in the whitefish industry where small profit margins are the rule. Exclusion from the Jones Act for same Alaskan shipping/fishing/processing vessels would considerably enhance the fisheries economics in the region. Investors and developers should be prepared to import virtually all services and supplies required to establish a business enterprise in Akutan. t N l Scale:1">6.0 Miles AKUTAN FIGURE NINE AKUTAN VILLAGE CORPORATION ANCSA LAND SELECTION BOUNDARY —-———— CITY OF AKUTAN MUNICIPAL BOUNDARY -++e+ee+see olangik Ls, rea Is. AVATANAK Is. B. LAND STATUS AND USE With few exceptions, existing and potential land use are fairly well established around Akutan harbor. That is, almost all developable land in the immediate area has been fully exploited and a hundred year's occupation of these lands has established patterns of use. As described earlier, the landscape around Akutan Harbor is very rugged; in most places far too steep to permit development. Qe major exception to this general situation is the undeveloped land at the head of the harbor. While this land would probably require extensive site preparation, it could provide up to fifty acres of land for future growth. At this time the head of the harbor is envisioned by the City of Akutan as the site of a major industrial seafood park. Another parcel of land with some possibilities for future transformation is the church-owned land at the west end of town. This would be the ideal land for community residential expansion, but the land is presently held under a long-term lease by a_ seafood processing interest. It is conceivable that a future negotiation could result in an exchange of land rights in which the community would gain access to church lands in exchange for land at the head of the harbor. Otherwise, there is no land adjacent to the existing community onto which the town could expand. Land Ownership. Presently, the major land holder in the area is the Akutan Village Corporation which has received its land as a result of the Alaska Native Claims Settlement Act (ANCSA). While not a landholder at present, the City of Akutan will become the second largest owner of lands after it has acquired certain lands which the Corporation is obligated by ANCSA to reconvey to the local community for purposes of future growth. Other landholders in the Akutan include: the community residents, who have received land from the Akutan Corporation for private ownership (several of these lots have since been sold to non-residents); the State of Alaska; and one individual from out of state who owns several parcels around the perimeter of the harbor. As illustrated in FIGURE NINE, the greater part of Akutan Island and parts of several neighboring Islands have been selected by the Akutan Community Corporation in conjunction with ANCSA. Of the original selection of 92,106 acres, 89,772.94 acres have been finally conveyed (1983). Subsurface rights for this land are retained by the Aleut Regional Corporation. Aside from the new corporation building site in town, the lands in corporation ownership are not developed. The corporation is involved in the development plans for the head of the harbor, but has not indicated plans for the use of other land holdings. -57- The incorporated boundaries of the second class City of Akutan (1979) are presented in FIGURE NINE. The boundaries encompass Akutan Harbor and its uplands and include an area of approximately 18 square miles. According to section 14(c)(3) of ANCSA, municipalities which are surrounded by ANCSA land selections are entitled to select at least 1280 acres of Corporation land for reconveyance to the City for the purposes of future growth and development. The City of Akutan has just begun the process of its 14(c)(3) land selections. A number of sites in town have been chosen for conveyance in the near term and several other sites, located more distantly from the community are being considered as choices for conveyance at some time in the future. These tentative sites are indicated in FIGURE TEN. Prospective in-town conveyances include the sites of the clinic, recreation and public safety buildings; the boardwalks in the old part of town; general utility easements in the new subdivision; and a twenty acre parcel of land bordering on the west side of the town which is to be developed as a seaplane landing ramp and parking area. Tentative out-of-town selections include twenty acres at the head of the harbor; twenty acres at Akutan Point (possible site of a small boat harbor); a solid waste disposal site (to be determined); and watershed rights 100 feet on either side of the streams that flow into Akutan Harbor. The bulk of the land in the town has been subdivided and is owned, with several exceptions, by community residents. The State owns a large parcel of land at the east end of town on which the school is located. Seawest has acquired ownership of a lot in town and has constructed a small bunkhouse on the lot. Finally, the owners of Air Pacific (AIRPAC) have acquired a residential lot with a small house in the community. There are a few remaining parcels of land in private ownership which, while small in number, are critical determinants of the existing and future developments in Akutan. These include the Church land at the west end of town and several parcels located at various points around the utc of the harbor (FIGURE ELEVEN, USS 766, 780, 1143, 1144, 1145). The parcel of land designated as USS 766 is an interesting situation of confused status, the ultimate ownership of which could play an important role in the development at the head of the harbor. This odd shaped lot, long and narrow sits across two of the three major streams that enter the head of the harbor and contains the northern half of the shorefront property. This land is presently undeveloped. U.S. Survey 780 (USS 780) which borders the western side of the occupied community, is owned by the Russian Orthodox Church. Me lot of this land is occupied by the community church and cemetary. The other lot, FIGURE TEN TENTATIVE ANCSA 14<cx<3>LAND SELECTIONS A.HEAD OF HARBOR B. SEAPLANE RAMP C. SOLID WASTE DISPOSAL D. SMALL BOAT HARBOR E. STREAMS scale: | in.=1-1/2 mi. PN scale: 1/2in.= | mi. Ca et ease OORT A Me aw CE FIGURE ELEVEN MAJOR NON-RESIDENT LANDHOLDINGS . USS 780, LOTS A&B . USS 1145 . USS 766 . USS 1143 - USS 1144 much larger, has been leased to seafood processing interests for many years. The most recent lease was signed in 1968 with Wakefield Seafoods and runs for 25 years with an option for an additional 25 years. This lease was assumed by Seawest in 1979. An individual living in the State of Washington owns several of the parcels of land around Akutan Harbor, including USS 1143, 1144 and 1145. These lands are presently being used by Trident Seafoods and Deep Sea companies for storage (1143, 1144), and by Trident for a major onshore processing facility (1145). There are a number of water rights permits and tideland lease applications which have been submitted by various parties for areas around the perimeter of Akutan Harbor. The City of Akutan has requested a specific water right to construct or modify a dam in conjunction with a proposed hydroelectric project. That project and the water rights application have since been withdrawn. All other water right permits are in conjunction with seafood processing. Land Use. FIGURE TWELVE presents the pattern of land use around Akutan Harbor as of 1983 The 1983 Akutan Comprehensive Plan update lists the following uses of land in Akutan: Residential: There are a total of 33 single family residences in Akutan. Seventeen units are older houses, built about fifty years ago and renovated substantially following World War II. There are sixteen units of new housing, completed in the fall of 1982 by the Aleutian Housing Authority, with HUD financing. In addition to these residences, Seawest Industries has a bunkhouse in the town which can accommodate up to forty people. Trident Seafoods has two bunkhouses, located at the processing site west of town, which can accommodate several hundred people. Floating fish processors which anchor in the harbor have residential facilities for crews on board the vessels. Commercial: commercial establishment within the City include: The Roadhouse - The bar was constructed in the 1960's and is owned by individuals living outside of Akutan. The Bayview Plaza - The new (1982) two-story building is owned by the Akutan Corporation and provides office space for the corporation and the City of Akutan as well as housing the post office, a laundromat, a general conference room, two one bedroom apartments and four efficiency rentals. -T9- ) fl “6 > KS ° > S ) 62S NS D KX =O OS o, Q2S2F PR RKRSKS KKK UTAN HARBOR CITY OF AKUTAN Eee Present and Future Potential Land Use WY, _Present Fish and Crab Processing Y and Storage Sites Vacant Lands with Potential for Fish and Crab Processing Activities Present and Future Residential Site scale: lin.=|I-1/4 mi. McGlashan Store - The building is leased from a local resident and operated by the Akutan Corporation. Industrial: Industrial facilities located on the land around Akutan Harbor include: Seawest Industries - Facilities consist of a warehouse and bunkhouse on shore with a permanently moored barge, a dock and a processing vessel which is moored at the dock during the processing season. The warehouse is designed for eventual conversion to a processing facility. Trident Seafoods - The main plant site consists of a large processing/ warehouse building, several bunkhouses, separate warehouse and power plant buildings, and two large outside fish drying racks. In addition, there is a dock and storage area located on land across the harbor from the main plant. In June, 1983, the main processing/warehouse building was totally destroyed by a fire. Others - There is a varying number of floating processing vessels at anchor in the harbor depending on the season and the condition of the fisheries. Public and Community facilities: Russian Orthodox Church - originally constructed in 1879, the building has been rebuilt or refurbished over the years. Akutan School - Originally built in 1921, the school has been renovated and expanded. The Aleutian Region School District plans to build a new school at the present site when funding becomes available. Recreation Center - This building Constructed in 1927 and renovated in 1981 by the community members. Primarily a youth-oriented focus of social activity. Public Safety Building - Built in 1981, the building provides an office area, one holding cell, a restroom and a storage room. Fire equipment is stored in this building in addition to public safety and emergency medical equipment. Bayview Plaza Building - This building includes a public conference room and houses the community public telephone. Anesia Kudrin Memorial Clinic - This facility opened in January 1983. -62- Land Management. At this time, the City of Akutan does not have in place a formal process of comprehensive land management. Land management, both within the existing community and around Akutan Harbor, is dealt with on a case by case basis. This require a process of negotiation to determine future specific allowed uses of land which comes under the City's jurisdiction. Over the last several years, the community has been involved in a regional process investigating the formation of a Coastal Resource Service Area (CRSA) which would also include Unalaska, Atka and Nikolski. If formed, the CRSA would be authorized to develop a comprehensive development plan for the area as provided for in the Alaska Coastal Management Act of 1977. While such a comprehensive plan could provide a larger degree of local control over future regional development, there are apprehensions at the community level that the wishes of the larger number of Unalaska residents could outweigh the wishes of residents in the three smaller communities in the proposed CRSA. These fears have delayed the formation of the CRSA, perhaps indefinitely. Akutan is now investigating the possibility of becoming a coastal resource district on its own. However, as a coastal resource district applies only to the corporate boundaries of the City. Land: Implications for Development e Land availability and suitability are, and will remain, major constraints to development around Akutan Harbor. Major future development will be confined to some fifty acres at the head of the harbor. The marginally suitable character of this land would require extensive site preparation which must be taken into account in projecting development costs. e° The gravel fill necessary for the above site preparation is probably available in the immediate area, but access to the gravel source will require a negotiated process among land owners, leasors and = managers (i.e., developer, Aleut Corporation, Akutan Corporation and City of Akutan) ° Prospective uses of the extensive Akutan Corporation lands have not been articulated by the corporation and thus remain an open question for development. However, it is likely that the majority of lands will be maintained in their natural condition in order to preserve a subsistence relationship between the Native residents and their land. An exception to this policy could be the use of corporation lands for grazing leases, either cattle or sheep. -63- A major issue facing the community is the settlement of the reconveyance of ANSCA 14(c)(3) lands from the Akutan Corporation to the City of Akutan. Most critical for future development will be the ultimate status of ownership at the head of the harbor, including control of the gravel and water resources. The ultimate settlement of ownership status for USS 766 at the head of the harbor is another critical, and open, question at this time. It is likely that the state (Department of Natural Resources) will decide on the form of disposal of this property some time in the next few years. It is probable that Trident will continue to operate a major facility in Akutan over the near term and thus, will continue to lease the several properties around the harbor that it now does. A long term land issue in the community concerns access to, and perhaps acquisition of, some of the church owned property at the west end of town (now leased by Seawest). This land is effectively the only land onto which community residential housing could be extended. Without additional land, the resident population will soon again reach the _ saturated condition that existed before the new housing was built in 1982. It appears at this time that the community will opt for the least formalized method of land management; that is, a case by case approach of negotiated agreement. It is likely that lease/land use arrangements would contain specific stipulations protecting the local environment and lifestyle, as well as promoting local economic well being. Because of the present guidelines for formation of a Coastal Resource Service Area (CRSA), and given existing attitudes in the community and region, it is unlikely that Akutan will be involved in this formalized regional planning process in the near term. C. PORT AND HARBOR FACILITIES 1. Existing Facilities Other than the natural protection provided by the terrain, there are no harbor facilities in Akutan Harbor. Akutan Harbor opens into Akutan Bay on the north side of the peninsula which juts into Akun Strait from Akutan Island. Akutan Harbor is well sheltered from all but easterly winds and the heavy williwaws which often accompany gales in the area. The preferred approach to the harbor is from the northward through Akutan Bay and Akutan Strait. The latter is about a mile wide at its narrowest point, but the navigable channel is only about 400 yards wide pecause of reefs extending from the eastern shore and by Race rocks on the west. The harbor is about four miles long and from 1/2 to 1-1/2 miles wide. The harbor is free from underwater protuberances beyond 300 yards from shore. The harbor provides sufficient maneuverability for any moderate-sized vessel. Depths range from 24 fathoms at the entrance to 14 fathoms at its head. Detailed near shore bathymetry is available only in the immediate vicinity of the existing community where recent bathymetric studies (1983) have been completed in conjunction with the seaplane ramp and prospective community dock. Port facilities consist of the dock structures and uplands support buildings that have been built over the years by seafood processing industries. These facilities, as illustrated in FIGURE THIRTEEN, are located at the west end of town (Seawest); at the new Trident plant; at the Trident storage site south of the plant; and at the old whaling station site (Deep Sea, Alaska Shell). Seawest. The Seawest wood piling pier, built in the late 1960's, is approximately 275 feet in length. The face is approximately 80 feet with a water depth of between four and five fathoms. There is also a storage barge permanently moored alongside the pier. Upland facilities include a warehouse building (100'x200') designed for eventual conversion to a processing building. These facilities provide the only off-loading point accessible to the community. Over time, this has been a source of both cooperation and contention between the community and seafood processor stationed at the dock. An illustration of the Seawest facility lay-out is presented in FIGURE SIX, page 41. Trident. Trident has docking facilities on two parcels of land in Akutan Harbor. The storage area on the south side of the harbor (USS 1144) includes a newly built 30' x 100' wood dock on treated five-pile belts. There are two twelve-pile dolphins approximately 30 feet from each side of the dock. The dock was constructed for the purpose of off-loading crab pots and fishing gear onto the adjacent several-acre storage area. -65- The main Trident Facility is located on USS 1145 (illustrated in FIGURE EIGHT, 43). A backfilled sheetpile seawall, built in 1981-82, ext ‘eet along the shoreline of this parcel, almost doubling the usable uplands acreage. Approximately 90,000 cubic yards of rock were moved from a quarry site on the uplands for backfill. The sheetpile is stabilized by deadman anchors in the fill. 340 feet on the eastern edge of the fill area are protected by large quarry rock. The waterdepth alongside the main building accommodates vessel drafts up to 16 feet. The main warehouse/processing building a 130' x 360' metal structure with two floors. This building was completely destroyed by a fire in June, 1983. Other buildings on the site include several large dormitories, separate warehouse and a power plant building. Alaska Shell, Deep Sea. This property (USS 1143) is the site of the old whaling station. There are two piers at the site. A small 80' by 20' wood piling pier is located on the west side of the property with a larger 60' by 150' pier on the east side. There are no uplands facilities; the shore area (several acres) has been used during the last several years for pot storage. 2. Proposed Harbor Facilities There are a number of proposals for additional harbor facilities around Akutan Harbor. Tentative projects include expansion of the Seawest dock, a new community dock, a State ferry dock near town, a seaplane ramp and turn-around area, a community small boat harbor (U.S. Army Corps of Engineers), and the major port facility at the head of the harbor. Except for the seaplane ramp, none of these proposals have firm development commitments. Proposed sites for the above are illustrated in FIGURE THIRTEEN. Seawest expansion. Proposed expansion plans call for a 262 foot extension off the southern side of the existing pier, with two additional beach-to-dock entrance piers. Construction would be wood=piling. Seawest had initially hoped to build this dock in a joint venture with the community; however, no arrangements were concluded. Production at Seawest's Akutan facilities have dropped off dramatically due to the crab stock failure. Consequently, plans for the dock expansion have been put aside for the present. New Community Dock. As noted above, all shipped goods coming into the community must now be lightered to shore from freight vessel or from the Seawest dock. Until the late 1970's, the community was serviced by a dock located at the east end of town which the community had constructed on its own. The dock was destroyed by a violent series of storms. The new dock project is still in a preliminary conceptual stage. The -L9- FIGURE THIRTEEN PORT & HARBOR FACILITIES -EXISTING & PROPOSED Existing Facilities A. Seawest plant B. Trident plant C. Trident storage D. Deep Sea dock Proposed Facilities E. sea plane ramp F. State Ferry dock G. small boat harbor -option H. ” ” ” ” |. head of harbor project scale: | in.=I-1/4 mi. community is investigating possible funding sources for the project and has acquired information on underwater topography for two likely sites (near the community store, near the seaplane ramp area west of town). State Ferry System Dock. A study was performed in 1980 which investigated the requirements of a possible extension of regular Alaska State Ferry System service to the communities along the Aleutian Islands. Concerning Akutan, the study recommended that a new pier be constructed at the site of the existing Seawest pier, or just east of the Seawest site but still on Church-owned land. It was assumed that a water depth of 18' MLLW would exist about 180 feet fram shore, requiring the dredging of an additional five feet to obtain the working depth for all-tide ferry operations (23 'MLLW). The dredged material could provide a 100' x 200' shorefront unloading area. A short causeway would connect this area to a 60' x 140' T+shaped pier. An alternative to constructing the above described pier (at an estimated cost of $9 million) would be a lighterage service in association with regular ferry visits. At this time, the prospects for extending ferry service to the Aleutians are considered small. lane + A legislative appropriation approved several years ago provided for the construction of a small airport at Akutan. However, preliminary studies indicated that lack of suitable land and adverse weather conditions made a landing strip in the area impractical. The appropriation was then converted to permit the construction of a seaplane ramp for the community. The City is now negotiating with Seawest to acquire rights to the twenty acres of land just west of the seawest facility; the site now used as an informal turning area by amphibious aircraft. Seawest presently holds a long term lease on the property. Prospective control of this property is further complicated by the fact that the site has been tentatively selected by the City as a part of its ANCSA 14(c)(3) land selections The City is also negotiating with an engineering firm for the design of a facility at that location. Once the issue of land ownership is resolved, it is likely that the ramp will become a reality within several years. Community Small Boat Harbor. In 1981, the U.S. Army Corps of Engineers (COE) initiated a reconnaissance study to investigate potential port and harbor requirements related to the entry of American interests into the whitefish industry. Akutan was selected as a site meriting further detailed study. An interim report, released in Novenber, 1982, indicated four potential sites in Akutan Harbor for a 42-boat small boat harbor, sized to accommodate a theoretical whitefish fleet. It was determined that a rubble-mound breakwater would be too costly at these locations; and further, that floating breakwaters could not work effectively at two of the sites. Since then, all of the four sites have been rejected. A currently favored location is near a point on the north side of the mouth of the harbor several miles east of town. The bottom configuration in that area would accommodate construction of a rubble-mound breakwater, although it would still be quite expensive. Other harbor configurations which may also be considered by the COE would take advantage of the narrowing of Akutan harbor just west of the towne Either floating or rubble-mound breakwaters would be extended out from both the north and south shores, leaving a narrow entrance passage in the middle. Preliminary analyses indicate that such a breakwater system could provide a large body of semi-protected water where wave action would be reduced enough to provide safe anchorage and reasonable off-loading conditions. It will be several years before final site and design studies are completed. Depending on the outcome of feasibility studies, a potential harbor project for Akutan could then enter a prolonged process of approval by COE; ultimately requiring congressional approval. This process can take up to ten years, although there are indications that the process could go more quickly if the state were to provide supplemental appropriations for construction of the project. Head _of the Harbor Project. This project is by far the most ambitious concept proposed for Akutan Harbor: the development of a world class seafood industrial park focused on the whitefish industry. The concept came into being during the height of the 1979 activity in the harbor when the City and several fish processors were considering future onshore processing locations around the rapidly crowding harbor. Also at that time, there was a boom mentality in the state regarding the prospects for an American whitefish industry. With the assistance of a state grant to study marine related development near Akutan, the community proceeded with preliminary feasibility and design studies. The proposed plan for development of the project suggested a two-phase approach, providing the basic infrastructure for an industrial park at a cost of $17 million ($1981). The initial development phase ($13 million) would include dock construction, initial road development, work pad site preparation, and a minimal amount of utility installation. The second, or long-term, phase of development ($4 million) is based on the needs of a single processing facility (500,000 1b. in-the-round per day capacity), and would provide the following infrastructure (schematic provided in FIGURE FOURTEEN): e 20,000 sq. ft. dock; for vessels up to 500 ft., 35 ft. draft e Two-acre small boat harbor with boat haulout e 5,000 linear feet of road e Seven acres for industrial use e Two acres for van storage e Four acres for fishing related/boat storage e Eleven acres for housing e Eight acres for greenbelt protection e Two acres for commercial/office e Qne acre for fuel storage e Power plant e Utility easements/facilities e Floatplane access ramp ° Public office and maintenance building Design assumptions envisioned a whitefish plant working 225 days a year, with 25% recovery of product and a product price of $1.25 per pound. The study stated that initially it appeared that user fees for the dock and lease revenues from the land would exceed operating and maintenance costs (of the infrastructure). The study contained a number of cautionary qualifications including the need for further study regarding cost/benefits, markets, soil conditions, gravel availability, water and power source availability. The study left open the question of port management, suggesting that the facility could be managed in a number of ways; from a non-profit municipal service to a profitable business. 3. Port and Harbor Facilities: Implications for Development e Existing port facilities have essentially been adequate to service the level of use of the harbor during recent years. The various users of the harbor, including the fish processors and several shipping companies, have indicated no. critical port-related problems which affect their activities. Minor problems reported by shippers include the need for improved fender pilings at the Trident wharf (Chevron) and poor holding ground where vessels must anchor (BIA, North Star III). O FUEL STORAGE O FIGURE FOURTEEN PROPOSED HEAD OF HARBOR INDUSTRIAL SITE INDUSTRIAL SEWERS WATER AIRPLANE RAMP € BARGE aoc’ sso) The proposed expansion of the Seawest dock and facility will probably not occur in the near future. Seawest's operations have been focused on crab production which will be greatly reduced for at least several years. However, Seawest has experimented with whitefish (cod) production in Akutan in the past and, depending on the success demonstrated by the neighboring Trident plant, Seawest could invest in expanded whitefish development at its Akutan plant. Such an investment would probably be several years away; 1986 or later. The City of Akutan has expressed a need for a publicly owned (or publicly accessible) dock and small boat harbor facility. The community now uses the Seawest dock, but at the discretion of Seawest. A recently completed transportation study performed for the City suggested that the City develop a complex at the west end of town which would include the Seawest dock (perhaps expanded), a bulk fuel storage area, a warehouse and an open storage area. In this case, the City would work out a cooperative arrangement with Seawest for shared access to the combined facilities. A major problem with this scheme is that it conflicts with a planned use of the land for a seaplane ramp and turning area. Another point to consider is the anticipated reduced level of Seawest's use of its Akutan facilities, for the next several years. Another consideration: if the City pursues the concept of a “land (lease) swap" with Seawest for land use at the head of the harbor, then the City could obtain control of the present Seawest dock as a part of the exchange. Given the depressed state of the local fisheries, and consequently of the local economy, the prospects are not good for the construction of a public facility; at least for several years. The time frame for construction of the town's seaplane ramp is largely dependent on a settlement of land control for the chosen site. The ramp should be completed within a construction season from the time of a settlement. The small boat harbor/breakwater concepts being considered by the Army Corps of Engineers will be under study for several years before results and recommendations are available. Given favorable findings, it could be another five years before the start of construction. A critical factor in the decision of whether or not to construct harbor facilities in Akutan will be a determination of value of the facilities from the perspective of national interest in the long run. While the American whitefish industry is now struggling into existence, the long term prospects for American utilization of the resource nevertheless remain favorable. Consequently, the prospects for a national investment in future harbor facilities at Akutan also remain favorable. The time frame for a harbor development may depend largely on the willingness of the state to share in construction costs. e While the City of Akutan has maintained its interest in the development of the head of the harbor, neither the state nor a private developer has come forward with the necessary capital to advance the project to the development stage. The future of the site is likely to remain closely linked to the larger picture of American entry into the whitefish industry. The whitefish industry operates within a thin margin of profitability. The feasibility of onshore whitefish development is dependent on state and national policies which regulate the nature of the fisheries (i.e., joint ventures, exclusive economic and fisheries zones, etc.). When, and if, the scales tip to point where onshore whitefish processing is competitive with other forms of processing, the head of Akutan Harbor is likely to be one of the first places to develop. It should be remembered, however, that nearby Unalaska/Dutch Harbor, which has suffered the loss of much of its crab industry, will also be seeking to attract the whitefish industry. JOINT VENTURE OPERATIONS -73- D. COMMUNITY FLEET There is at present no community fleet in Akutan other than a number of small skiffs. As stated earlier, the many fishing and processing boats that operate in Akutan Harbor are all transient vessels from other ports in Alaska and the Pacific Northwest. While purchase of medium-sized commercial fishing vessels have been considered by the community, these Proposals to date have been rejected. Community Fleet: Implications for Development There are several major constraints to be overcome before the community enters the field of operating its own commercial fishing vessels. At present, when storms blow in from the east, smaller vessels could not be considered safe in Akutan Harbor. Until a protected harbor is built in proximity to the community, boat ownership would mean spending a great deal of time at locations that did have harbor facilities, away from Akutan. If there were a small boat harbor, with acceptable supporting facilities, it is likely that a number of fishing vessels would operate out of Akutan as their "home port". Initially, most of these would be owned by persons living outside of Akutan. Another major constraint to local boat ownership is the presently weak condition of the community's economic base. The local economy is tied directly to the success of the fish processing industry, which is now depressed. Therefore, it is unlikely that the community (City or village corporation) would be able to purchase a fishing vessel until the regional fishing industry recovers. Beyond simply recovering, the local fisheries economy would have to be vital enough to support the development of a local boat harbor which in turn would make local boat ownership practical. A third major constraint is the lack of local experience in the use and maintenance of commercial fishing vessels. While several residents do have crew experience in various fisheries, the community does not contain the depth of expertise required to safely and successfully manage a large commercial vessel. The lack of experience would also translate into high costs for financing and insurance. If Akutan were eventually to have a home fleet, it would most likely follow sometime after the development of more extensive onshore processing facilities and protected mooring space for a supporting fleet. Given an existing harbor,an improved economy and the opportunity to acquire fishing and vessel operating skills, it is likely that the community would take the step to boat ownership. The size of a prospective fleet would depend on the available mooring facilities and o the nature of the fish processing industry in Akutan Harbor. The most likely prospects at this time are for a return of the crab resource at reduced levels and for an increasingly active bottomfish industry. During the height of the crab industry, 80 to 90 arge fishing vessels (85-160 foot) operated out of Akutan harvesting shellfish. No more than half of these would be expected to be in port at one time. The crab seasons takes place in the fall (king crab) and in mid-spring (tanner crab). Discussions with processors indicate that a large whitefish facility (200,000 to 500,000 pounds ex-vessel per day) would require a supporting fleet of between 15 and 30 large trawling vessels (same size as crab boats); one-third of which might be in port at any one time. The whitefish season could operate year-round, but will likely run from August to April, with January to April being the busiest period. Therefore, a local harbor would be expected to berth around 35 vessels during active fishing seasons. During the summer months, the harbor would probably experience little active use. With regard to local entry into the new field of fishing, there are several developing programs in the Pribilof Islands of St. Paul and St. George that could serve as useful examples for the residents of Akutan. While those fisheries are initially targeted on halibut and hair crab, they are providing residents with the foundations for direct participation in a diversified fisheries economy. E. GENERAL INFRASTRUCTURE AND SERVICES 1. Water Resources and Use The steep slopes surrounding Akutan Harbor are occupied by many streams and creeks which have provided the community, and the fish processing industry, with a clean and adequate source of water. No water resource records have been maintained for the vicinity and very little is known about the amount or quality of water availability around the harbor. The community's main source of water is a small stream just east of town. A small reservoir connects by 12-inch pipe to a pump house at the mouth of the creek, with distribution lines to existing houses. The system was constructed in 1927 and upgraded in 1974. In 1982, the U.S. Public Health Service again renovated and upgraded the system. That renovation included the reconstruction of the reservoir dam; installation of a 680 foot transmission line; installation of 1,100 feet of water main and connection of 29 houses to the improved system. Due to an extremely harsh winter in 1982-83, the system appears to have some problems of decreased storage capacity because of soil erosion into the reservoir. Until recently, the stream adjacent to the water-supply stream was used to drive a pelton wheel hydroelectric generator. That hydropower system was built in 1924 and was the main source of electricity until the completion of the present diesel-powered generating plant in 1982. The community investigated the use of a moderate-sized stream, located one and a half miles west of town, for an expanded hydroelectric generator. However, after several years of study and design work, it was determined that the site was geologically unstable. The community has since chosen to operate a diesel electric system while keeping an option open for hydroelectric power. The other major users of water in Akutan Harbor, the fish processors, have individually applied for and received water access rights to a number of streams issuing into Akutan Harbor. The processors use primarily frigid sea water in the processing of crab; fresh water is required only for general clean-up and for drinking water. The same is true for the salted cod operations developed at Trident. Interviews with processors indicate that there has been adequate water available in the area to suit their needs. The study performed for the City regarding the development at the head of the harbor considered water resources and needs for both fresh water and for hydropower generation. It was determined that approximately one million gallons per day of freshwater would be required to satisfy industrial and domestic freshwater needs. There are few records of flow rate and fluctuation for the streams surrounding Akutan Harbor. While ground water appears to be almost everywhere present, the study concludes that extensive further investigation and instrumentation (over several years) is required before firm estimates of water availability and quality can be determined. A flow measurement device has subsequently been located on the south side of the lands at the head of the harbor. Concerning hydropower needs and potential, the study concludes that a processing industry and community would require approximately 5,000 KW of generation capacity (initial development would require only about 850 KW power capacity). After consideration of the site limitations and apparent water availability, it was estimated that hydroelectric generation in the vicinity of the head of the harbor would be limited to 300 KW, or less. Nevertheless, the sites investigated were determined to be more stable than the sites located near the existing community and the study recommended that such a hydroelectric generation source should be developed to serve as the power base during initial development as well as to supplement the diesel power system of the completed industrial complex. In conjunction with the new water system, the Public Health Service renovated and expanded the community's sewer system. Improvements to the system included installation of 1,500 feet of sewer _ line; installation of two 4,700 gallon community septic tanks; construction of 500 feet of marine outfall line; and connection of 17 existing houses and 19 new houses to the wastewater system. The system is reported to be operating acceptably after a year of service with the exception that the septic tanks appear to be silting in more quickly than anticipated. 3. Power As stated above, the major source of power for many years in Akutan was the 36-inch pelton wheel that was installed in 1927. There were also several small private diesel generators for homes, the store, the bar and the school. Several years ago, the City initiated efforts to replace the aging system with a larger modern hydroelectric system. However, after extensive study, the project was abandoned as infeasible. The City opted reluctantly to convert to diesel generated electricity, at least on an interim basis. In 1982, the City completed construction of a diesel plant facility consisting of two eighty-five KW generators and fuel storage for 12,000 gallons. The existing pelton wheel generator will be maintained and tied into the new system. 4. Fuel Supply Aside from the 12,000 gallon supply for the new generator, the City maintains a 4,500 gallon tank for residential use. The Corporation owns a 5,000 gallon tank and the school owns two tanks totaling 10,000 gallons. The City is presently seeking funds from the State to obtain a larger bulk fuel storage tank (60,000 to 100,000 gallons) which may permit the City to purchase fuel at reduced costs. 5. Housing The lack of housing has long been a great constraint to resident population growth in Akutan. However, the seafood processing industry has not relied primarily on the resident population for its labor force. Therefore, there are two kinds of housing considerations in Akutan. First, are the housing needs of the Native residents of the community who live in the community year-round, and who live in Akutan because it is their home. Second, there are the housing needs of the much larger transient population which passes through Akutan Harbor with each processing season. Most of the latter have quarters on board the floating processors; in fact, many never leave the processors over the course of a four-to-six month contract period. There are an increasing number of processor workers living in bunkhouse/dormitory situations. -77- Resident Housing About half of the housing in Akutan was built during the whaling station days, before 1940. This housing was extensively renovated after the residents returned from their World War II re-location. The houses are woodframe, very small, and have been slowly decreasing in number as units become uninhabitable. The 1970 census counted 22 units; only 19 were counted by the 1980 census. While small, these older homes have been maintained well and do provide good housing if not overcrowded. The other half of the housing in Akutan is brand new. Sixteen units of HUD financed housing were completed in late 1982 and were immediately occupied. The units performed well during their first winter, a particularly harsh winter in Akutan. Reports indicate that the new occupants are satisfied with their housing with the exception of some problems with soot generation from the central heating-cooking stove. Monthly payments for the new units vary depending upon family income, but tend to be around $150 per month. While there are presently two unoccupied older units in town, it is apparent that residents will have to begin doubling up again soon unless more new housing becomes available. All of the immediately available land in the existing commmity is now occupied. Possible options for future residential growth include tearing down the older housing and replacing those units with larger units; replacing the older units with more space efficient multi-family structures or other space saving housing configurations; or pursuing an arrangement whereby the community could gain the rights to build residential units on the church-owned land now leased for seafood processing. Processing Industry Housing To date, all onshore housing related to the processing industry has been group-quarters structures. In 1981, Seawest built a bunkhouse on a lot in town which can accommodate up to 40 persons. Trident has constructed several large dormitory structures at its main processing site west of town, which combined can accommodate over 200 persons. Discussions with supervisory staff at Trident indicated a desire to build single-family residential units in the vicinity of the plant, perhaps on the slopes behind the facility. It was noted that housing has been built under similar conditions in nearby Unalaska. This would require a lease or purchase arrangement with the Akutan Village Corporation which now owns the land. 6. Communications A satellite dish is located at the west end of town which provides access to telephone and television networks. There are presently nine telephones in Akutan. These include, one in the City offices, one in the Akutan Corporation offices, two at Seawest, two at Trident, two at the school, and one public phone located in the corporation's Bayview Plaza building. The phone system was operated by Alascom until recently when operations were assumed by Sitka Telephone Company. The rates charged by Sitka Telephone are quite a bit lower than charged by Alascom (less than a fifth as much per month). As a consequence, people in the community have indicated a desire to install phones in their homes. Television is received over two satellite networks: Learn Alaska and the Alaska Satellite Network. The most common communication within the community and around the harbor is with VHF and CB radios. Some homes receive the signal from KDIG in Dillingham on an occasional basis. The U.S. Public Health Service used to maintain a "hotline" with a hospital in Anchorage, but that service was discontinued recently due to federal funding cuts. A fourth class U.S. Post Office is located in Akutan. 7. Hotel Until the recent construction of the Akutan Corporation's Bayview Plaza, there were no formal hotel arrangements available to overnight visitors. Visitors were required to make arrangements to sleep in resident's homes or in the processors group quarters. The upper floor of the Bayview Plaza Building includes two one-bedroom apartments and four efficiency units which are all available on a per-night basis, although the apartments are intended for longer term residency. These units have maintained a reasonable occupancy rate, especially during the recent summers of dramatic construction activity in the community. As a result of the anticipated decline in the harbor's crab fishing industry and the culmination of the local development projects, it is possible that the hotel will experience high rates of vacancy during the next several years. 8. Transportation Akutan is one of the most isolated communities in Alaska. Not only is the town remotely located, but the physical situation in Akutan Harbor limits the forms of air and sea transportation to and from Akutan. Air service is limited to amphibious aircraft only and flights are restricted to daylight and reasonably fair weather conditions. While Akutan Harbor is fairly accessible to sea traffic, there are general hazards involved in ocean travel in the Aleutians, and specific shortcomings with regard to port facilities in the harbor. The City of Akutan contracted with a consulting firm to produce a study of short and long term transportation needs for Akutan. The study was completed in July of 1983 and provided the community with an inventory of its transportation facilities; a discussion of specific transportation issues that the community will be facing; and a number of options to be considered by the City regarding the development of transportation services in the community. Air Services There are two air carriers which presently provide service to Akutan: Air Pacific, Inc. and Peninsula Airways. Both of these air services use the Grumman Goose amphibious aircraft which has a seven-to-nine seat capacity. There are no support or terminal facilities in Akutan. Amphibious aircraft are forced to use an unmodified rocky beach as a turning area. PLANES “PARKED” ON THE BEACH Air Pacific, Inc. (AIRPAC) operates out of Dutch Harbor and makes up to four flights daily depending on need; all flights are charter flights. Most passengers are fish processing employees flying to and from their jobs in Akutan Harbor. AIRPAC has been expanding its flight services over the last several years and now provides service between Anchorage, Dutch Harbor and Kodiak. Passengers for Akutan can also reach Dutch Harbor from Anchorage or Seattle with Reeve Aleutian Airlines (through Cold Bay). Between 1979 and 1982, AIRPAC flights between Dutch Harbor and Akutan more than tripled in number. However, the number of flights have decreased recently due to the current loss of the crab industry. Until the crab industry recovers, or another fishery takes its place, air traffic in the region should continue at the present reduced level. The other air service which provides regular flights to Akutan (weather permitting) is Peninsula Airways which operates out of Cold Bay. Peninsula Air flies once-a-week into Akutan and has a contract to carry the U.S. mail. According to Alaska Transportation Commission records of the last five years, adverse weather conditions prevent at least one-third of each year's scheduled flights. Peninsula Airway states that sometimes only one flight a month is able to complete the trip. Marine Services There are three marine transport services presently serving Akutan on a regular basis: Western Pioneer Lines (general freight to processors); Bureau of Indian Affairs (BIA) North Star III (general freight to community); and Chevron USA, Inc. (fuel products). In addition to these services, there are frequent freight deliveries to the commnity employing the many fishing and shipping vessels that pass through Akutan Harbor in conjunction with the processing industry. The BIA North Star III, based in Seattle, makes one trip annually to Alaskan coastal communities. Goods are lightered ashore by community members. The operation in Akutan is viewed as routine with no major problems reported by the company. One concern expressed by BIA was the need for better VHF ship to shore communications. Western Pioneer Lines, based in Seattle, is a relatively small shipping company now operating seven ships between the Pacific Northwest and points in Alaska. The vessels employed by Western Pioneer Lines are relatively small shipping vessels, all under 500 tons displacement. In fact, they are classed as fishing boats which are chartered to haul fish products to secondary processing in Seattle. In this sense, the freight hauling leg to Akutan could be considered the back-haul portion of the trip. Western Pioneer is limited to delivering freight goods only to fish processors and their supporting industries. That is, Western Pioneer cannot deal directly with the community of Akutan. If persons or institutions in Akutan wish to make use of Western Pioneer's services, they must do so using a seafood processing company as an intermediary. This adds one more complexity to the relationship between the community and the processing industry. Western Pioneer views operations in Akutan Harbor as routine and makes weekly trips during the processing season. The company has also expressed concerns about the need for improved communications and navigational aids in Akutan Harbor. Chevron USA delivers fuel to Akutan on a periodic basis with its tanker, the Alaska Standard, and occasionally smaller barges. The major concerns expressed by the company regarding operations in Akutan harbor include a lack of adequate berthing; limited onshore staging areas; need for a central bulk fuel storage area and maneuverability in the harbor when many processing vessels are present. 9. Banking There are no banking services available in Akutan. this is viewed as a major problem by the City's residents. At present, all banking activities must be carried out through irregular postal service or by informal courier. Circuit-rider banking operations have been considered for Akutan, but have been rejected because the volume of banking activity is too small too cover the cost of access to the community. 10. Medical Services In 1983, the community completed the construction of a new medical clinic - the Anesia Kudrin Memorial Clinic. The clinic was built and equipped using a state legislative grant. Amnesia Kudrin, a long-time Akutan resident served as the community's health aide and mid-wife until her death in February, 1983. The state provides a part-time health aide position in the community which is otherwise served through periodic visits by a physician from the Alaska Native Hospital. Due to federal funding decreases, these visits have been reduced to once-a-year. For most births and major medical problems, residents must travel to Anchorage to receive care. ll. Fire Protection The City has organized a volunteer fire department, although at this time there is a lack of fire fighting equipment. The new water system includes two hydrants with pumps which can operate for up to two hours. -82- The City recently purchased a submersible pump which can draw water from the harbor for use in fighting fires. The new Public Safety building includes some space designated for storage of fire equipment. 12. Police The community now employs a full-time public safety officer under the State Trooper Village Public Safety Officer Program. A part-time position has also been established to provide supplementary assistance during nights and weekends; however, this position is currently unfilled because of reductions in revenues. The Public Safety Building contains a temporary holding cell. In the event of major problems, the State Fish and Wildlife Protection Officer stationed in Unalaska is available for assistance. 13. Schools Primary and secondary education is available in Akutan in a single-classroom setting. The school is funded by the State through the Aleutian Region School District (Regional Education Attendance Area #8). The school presently employs one instructor and several community members serve as a local school board. According to the City, the Aleutian School District has been working to acquire the funding to replace the aged structure, built in 1921. 14. Other Services Church. A Russian Orthodox Church building stands at the west end of town. Attendance is regular and church holidays are observed by the community. \fe- an “Russian Orthodox Church, hn Recreation Center. The center is housed in a converted structure that the community recently renovated on its own. It is primarily used as the center of social activities, primarily for the youth of the community. Bayview Plaza Building. In addition to the City and Corporation offices, this building houses the U.S. Post Office, a laundromat, a Public conference room and the public telephone. 15. General Infrastructure: Implications for Development Water. The existing water system is adequate to service the needs of the immediate community for the foreseeable future. There does appear to be some problem with siltation in the reservoir that may require corrective action in the near term. While there appears to be adequate freshwater sources available around Akutan Harbor to service a number of floating processors, further site assessment will be necessary to determine if adequate surface and ground water are available at the head of the harbor to support a major fish processing industry and associated residential population. Sewer. The newly constructed sewage disposal system appears to be operating effectively. There is some indication that siltation is occurring at a rate faster than anticipated. The U.S. Environmental Protection Agency (EPA) stationed a survey ship in Akutan Harbor for a week in the summer of 1983 for the purpose of establishing a benchmark of quality for waters in the harbor as well as the nature of the local currents and tidal flushing action. This survey should provide valuable information with regard to future actions concerning waste disposal into the harbor by the community and by fish processors operating in the harbor. As a result of the survey, it is possible that stricter requirements for waste disposal may be applied in the harbor. Solid Waste Disposal. At this time, there is no established program for disposing of solid waste in the community. Community residents either dispose of garbage at sea or burn it on the beach. Processors dump waste overboard or burn or bury it on the beach. The City is applying to EPA for permission to dispose of the residue from incinerated waste in the ocean. If this can be accomplished, then an application will be submitted to the Alaska Department of Environmental Conservation for permission to construct an incineration system. Power. While the community would have preferred hydroelectric power generation, it appears that Akutan will have to rely on diesel power generation to satisfy its expanding power needs. The two 85-KW generators now in place should service the community's power needs for the next several years. With regard to future industrial development, Trident and Seawest are likely to continue to provide their own power. The City has indicated that it would prefer to construct and maintain the infrastructure of the proposed development at the head of the harbor, including electrical generation facilities. Processors which locate in the industrial park would then pay a user fee for utility access. Housing. There are two. separate, and somewhat conflicting, considerations of housing in Akutan: residential and industrial. In the first case, are the concerns of population growth within the existing community and the availability of housing for future generations. In the second case, there is the concern of where to house the large numbers of employees associated with prospective onshore fisheries development. What brings these two into conflict is the extreme shortage of developable land around Akutan Harbor. The recent increase in the residential housing stock in the commmnity has temporarily alleviated much of the overcrowded conditions. However, the new housing consumed most of the land available to the community for residential expansion. If younger residents choose to remain in Akutan, it will mean a return to doubling up of families and increasingly crowded conditions. Assuming that doubling up will occur, the existing housing will probably accommodate local residential population growth anticipated for the next five. However, the community should be looking soon at concepts for providing additional housing before critical overcrowding occurs. Concepts generally would include using the available land more efficiently (multi-family, duplex), increasing land availability (land swap, lease) or developing residential subdivisions on feasible but less desirable locations (the low bluffs east of town). The need for housing process industry employees is related both to the general success of the regional fisheries and to the specific form of those fisheries. The highly transient crab industry operated effectively in Akutan Harbor, housing over a thousand employees on floating processors. If the crab industry stages a dramatic comeback to previous high production levels, it would likely again operate in Akutan Harbor without the necessity of locating onshore. Seawest's plans for expansion would also possibly be revived and could include some additional dormitory-style housing facilities onshore. Trident's whitefish-oriented facility in Akutan is planned to accommodate several hundred process employees in dormitory structures. Alternatively, if the dominant regional fisheries of the future turns out to be whitefishing, then a different scenario of industrial housing needs would evolve. The year-round nature of whitefish production could necessitate a more permanent style of housing for at least supervisory and maintenance staff, and for larger numbers of process workers. A thriving whitefish industry would also promote the development at the head of the harbor into a substantial industrial community, including extensive residential accommodations. The timeframe for such development is likely to stretch over the next decade, assuming that onshore whitefish development will in fact occur at all. Om the other hand, policy changes at the federal and state level could precipitate rapid development and the consequent need for housing. It is likely that there would continue to be floating processing operations in Akutan Harbor which will continue to house their employees onboard. It is also possible that industrial operations would increasingly use a mix of onshore/offshore operations such as found in Dutch Harbor and Kodiak. Communications. The present communications systems available in the community are generally viewed as satisfactory, although there have been some concerns regarding the quality of ship to shore communication in the harbor and between the community and incoming ships. These communications are presently handled by VHF on an informal, and inconsistent, basis. Transportation. The availability of transportation services to Akutan will probably remain at present levels although use of those services will be reduced during the next several years. The combination of remoteness and adverse weather conditions combine to make Akutan one of the more inaccessible locations in Alaska. Improved navigational aids could make the last leg of the journey into Akutan a safer and more predictable venture. At present there are no aids to flight navigation into Akutan. Shipping firms report that there are several critical navigational aid improvements that could ensure a safer entrance into the harbor. The completion of the seaplane ramp and turn around area will make the stopover in Akutan more comfortable for passengers and less damaging to aircraft. If development proceeds at the head of the harbor, it is likely that another seaplane ramp would be built at that location. State Department of Transportation studies indicate that a landing strip cannot be feasibly constructed in the vicinity. The transportation study recently completed for the commmity proposed two projects, besides the seaplane ramp, that could be realistically approached by the community at this time. The first is a general upgrade of the community's system of boardwalks. The second is a small boat harbor/dock for the community that would be built in coordination with future development of the processing industry in town (Seawest). Tentative funding sources and planning approaches for the projects are -86- discussed in that study. The study also lists a number of transportation projects which have been proposed during the last several years which are unlikely to be developed soon, if at all, but should be considered by the community for long term planning. Projects discussed in those terms included the head of the harbor development; Seawest's expansion plans; and the extension of Alaska State Ferry Service to the Aleutians. Considering the coming period of diminished revenues anticipated for Akutan as a result of the failure of the crab industry, it is not likely that the City or Akutan will be able to aggressively pursue transportation improvement projects without substantial technical and financial assistance from the state and federal governments or the private sector. It appears at this time that transportation development in Akutan Harbor will be linked to the progress of the American whitefish industry. Specifically, the development of the head of the harbor and development of an Army Corps of Engineers small boat harbor are tied to the potential demands of an expanding whitefish industry. The prospects for these developments, however, are not likely to be predictable within the next several years. F. MUNICIPAL CAPACITY 1. General Description of Government Akutan was incorporated as a second class city in 1979. It has a city council of seven members, one of whom is elected as mayor by the council. The City has assumed planning powers provided for by Alaska Statute (AS 29.43) and has established a five-member planning commission. Since its formulation, the City has employed City Administrators with offices located in Anchorage. The most recent administrator has resigned to assume the city manager position in nearby Unalaska. The greatly reduced revenues which the community is now experiencing may prevent the hiring of full-time replacements. Tne City of Akutan employs a number of full and part-time local positions. The Mayor, City Clerk, Power plant operator and village safety officer are full-time positions. Part-time positions include a recreation center director, librarian, clinic health aide (through the Aleutian/Pribilof Islands Association), janitor for clinic and several general maintenance persons. Again, because of reduced revenues, these jobs may have to be either eliminated or cut-back in hours. 2. Municipal Finances The City of Akutan derives its revenues from a number of sources, both from activities within the City and from the State of Alaska. Three sources account for the bulk of those revenues: a local sales tax; a shared revenue distributed from the State raw fish tax; and the State municipal revenue sharing program. The local sales tax applies to the importation and sale of raw fish or seafood products. This 1/2 percent tax was introduced with the incorporation of the community in 1979. These revenues obviously are directly linked to the success of the local processing industry and consequently, follow the fate of the crab industry. Tax revenues reached an annual high of $214,000 in 1980 (calendar year) and have since fallen to $146,000 in 1981 and $78,000 in 1982. ‘The figure for 1983 could be under $30,000 based on catch figures to date. It is possible that there may be no crab opening at all in the fall of 1983, in which case revenues would be even less. Supplementing the traditional crab fishery is the new whitefish Operation at Trident. The operations plan for the Trident plant called for an initial annual production requiring about 20 million pounds of fish ex-vessel which would be purchased at a cost of approximately 2.5 million dollars, representing a tax revenue to the City of $12,500. The actual first year production at Trident actually used around 25 million pounds of raw fish and expectations are that the plant could use as much as 40 million pounds. The later figure would still generate only about $20,000 in revenues annually. The revenues from the one whitefish plant are clearly not going to substitute for the loss of the crab industry. Also, the future of production at Trident is subject to reconstruction and operating plans in the wake of the fire which recently destroyed the main processing and warehouse building. Returns from the State raw fish tax represent another major source of income for the City. This return has represented about two-thirds of the annual revenues of the community since its inception. A 5% tax is levied on processors located offshore while onshore processors pay a 3% tax. A proportion of revenues thus generated are returned to the affected community; the current rate of return being 50% of total revenues. Surprisingly, these revenues have not dropped dramatically over the last several years. The reason for this is that the proportion of the raw fish tax returned each year to communities has been increased each year by 10% to the present rate of 50%, where it is scheduled to remain. Beginning with this year, however, sharper reductions in the raw fish tax revenues will become apparent. Returns to the community were over $300,000 in fiscal years 1981, 1982 and 1983. That figure will probably drop to $200,000 in 1984 and lower in following years. The third major source of revenue for Akutan is the state's municipal revenue sharing program. In this program, annual entitlements for communities are computed according to an established equalization formula that consider's the community's population, taxable wealth and local tax effort. Additionally, payments are made for certain municipal services (roads, health facilities, hospitals); however, Akutan does not qualify to receive these funds. All municipalities are entitled to a minimum of $25,000 (plus cost of living increases). The amount of state revenue sharing received by Akutan has varies from year to year due to certain characteristics of the statutory formula used to compute revenue sharing figures. In particular, Akutan has experienced a problem with the manner of full property value determination for communities (like Akutan) which have not actually performed an assessment. As a result of this formula, the assessed value of Akutan has risen from $186,000 in 1981 to $1,450,000 in 1982 and $6,178,221 in 1983. This rise, in combination with the decrease in the local tax base has resulted in an 80% drop in revenue sharing funds from 1982 to 1983. To make matters worse, the community has already asked for and received a 1983 prepayment of over $75,000 based on past expectations. Consequently, the City must now repay the state over $44,000, or assume a debit against future revenue sharing until that amount is paid back. 3. Planning Capability Akutan has a five-person planning commission, which until recently was supported by a full-time city administrator/planner position located in Anchorage. Before and since incorporation, the city has been supported by a series of professionals in local government assistance, from both the public and private sectors. The last several years have seen tremendous changes in the community, both in its physical make-up and in the community's capacity for a managed approach to future development. The exercise of passing through a large number of development projects in a very short period of time has provided a crash education in planning and municipal management. This period also produced a comprehensive planning document for the community, including a recent update, and a series of capital improvement plans to assist the community over the next several years. Assuming that the crab industry will at least temporarily remain in decline, and that the whitefish industry is not yet prepared to boom, it is most likely that Akutan will experience a relatively quiet period of development during the next several years. Consequently, planning efforts may be placed not so much on accomplishing specific projects as on establishing general policies of development planning such as land Management concepts and formulating development stipulations which will produce the maximum local benefit while remaining attractive to developers. 4. Capital Improvements Program (CIP) With the assistance of the City Administrator/planner, the community has completed a 1983 update to the Akutan Comprehensive Plan. The plan incorporates planning and implementation considerations for a number of capital projects envisioned for the community. Projects listed, in order of priority, include a bulk fuel storage facility, a seaplane ramp, a solid waste disposal system, a small boat harbor/dock, and a new school building. The first three projects have received funding and are in permit/design stages. The harbor project is under consideration by the Army Corps of Engineers and initial feasibility studies are not expected to be completed for several years. The school building is now high on the priority list of the regional school district and prospects appear good that it will receive legislative funding in the next several years. 5 Municipal Capacity: Implications for Development Incorporated only four years ago, Akutan's municipal government is still relatively young. However, the community has passed through a very busy period of development and City officials have gained a great deal of experience in a short time. This has included complex dealings with state and local government and with the private sector in taking a large number of capital projects to successful completion. With this recent background, the City is reasonably well prepared to continue with the slower paced development efforts envisioned for the next three years. The City has completed a comprehensive planning document, with a recent update, which will serve to guide municipal directions through the near term. For the next several years, the community is likely to experience a period of large reductions in every major source of revenue available to the City. This will require a tightening of municipal operations and services and ultimately could precipitate a maintenance crisis requiring the consideration of some form of interim state financial assistance. Total revenues for 1982 and 1983 were over $850,000 in each of those years. Total 1984 revenues may be only half of that amount. Perhaps the most immediate problem that arises from the expected revenue shortfall is the financial strain of refilling and maintaining the City Administrator position. The administrative and planning expertise which the position has provided the City since incorporation have been of tremendous value to the community. The City is now in the position of not being able to afford the position and yet entering a situation where professional assistance may be a critical factor in the community's well being. It is likely that Akutan will maintain at least a part-time administrative support position, located in Anchorage. -91- X \ eed : = SSS y nin SS : TA. = = x —— Panu — Ree ——— -92- — CONCLUSIONS —— The foregoing discussions have presented many of the aspects of the community of Akutan. The future of this community will be largely shaped by a number of key determinants. These are summarized here: At least in the immediate future, the community of Akutan will be experiencl: revenue levels greatly reduced from those of recent years. This is a direct result of the catastrophic disappearance of the regional crab stocks, the mainstay of the current Akutan economy. The red king crab stocks have plummented over the last several years and are now effectively banned as a fishery. The cause is not yet determined but could include a combination of increased fishing pressure, generally warming ocean waters, parasitic infestation, and increased predation from bottomfish species which have multiplied greatly since the introduction of the 200-mile fisheries management zone. No prognosis for stock recovery has been determined. However, It is likely that it will be many years before red king crab provide _a_ substantial industry in the Aleutian region. To a lesser degree, the stocks of tanner crab have also diminished. ‘The tanner fishery is likely to continue at_ greatly reduced levels for at least the next several years. Blue and brown king crab have become increasingly targeted as replacement fisheries for the vanished red king crab. However, these species are not as numerous as the reds; do not tend to congregate seasonally, and inhabit deeper and more rugged habitats. Hair crab will provide another alternative crab fishery in the region. While these alternative fisheries will provide some relief to a small number of crab fisherman, they will not substantially replace the economic loss of the red king crab. Akutan is not advantageously located with respect to the known blue and brown crab a hair crab habitats. The American whitefish industry is still very fragile and the form of its ultimate development over the coming years remains highly uncertain. At least for the near term, joint venture Operations will dominate. Whitefish joint ventures will have little or no positive effect _on the economy in Akutan. Following joint ventures, the next likely develo t will be an increase in the number “of American owned catcher/processor ships. Recent negotiations with the Japanese have resulted in stipulations that Japan increase its use of American fishing boats and American processors in getting fish from the Bering Sea to the Japanese marketplace. -93- Substantial movement into the field of onshore American whitefish production will require, at least initially, some form of regulation/incentive providing for a portion of whitefish products to be processed by shore based operations. It is likely that, within the next several s, the 200-mile fisheries management zone (az) will be converted to the more territor1 concept of an “exclusive economic zone (EEZ)". e consequent increase in controlled access to ese waters would ostensibly provide producers with a more stable investment climate, thus accelerating the "Americanization" of the whitefish resource. Federal legislation has been introduced (S.254, 1983) which would have the effect of extending the use of the Capital Construction Fund (CCF) to include’ shoreside processing facilities. This 500 million dollar revolving fund, which provides equity capital, is currently available to fishermen for reinvestment into vessel construction. Action on this legislation is expected by 1985. Passage of the legislation would provide a dramatic boost for new onshore processing facilities, and would make the Akutan head-of-the-harbor project more attractive to prospective investors. Trident Seafoods has not yet begun the reconstruction of its major whitefish plant which was destroyed by fire in June, 1983. While the company's owners have indicated a desire to continue operations, they have also indicated a hesitation to further invest in the enterprise without some assurance of access to the resource (i.e., joint venture/export stipulations). It is likely that Trident will operate the plant, at least temporarily, employing one or more of the company's floating processors in lieu of the shore facility's reconstruction. Because of the diminished crab resources, it is quite possible that Seawest Industries will at least temporarily curtail operations in Akutan. There is little immediate tential for substantial iversification o utan's 1 relat industries. However, the lease of Corporation lands for grazing Purposes could represent at least one alternative source of income to the community during the next decade. There are no known commercially exploitable mineral deposits in the area. The land reconveyance process pertaining to ANCSA 14(c)(3), from the Akutan Village Corporation to the City of Akutan, is still in preliminary negotiations. The outcome of this land conveyance will bear critically upon future development in Akutan Harbor. Until the reconve’ is leted, the lack of clarification of land ownership will be a hindrance to levelopment a disincentive to external investment. Another land status question that requires resolution relates to United States Survey (USS) 766 at the head of the harbor which presently is held by the State under somewhat complicated circumstances. The City of Akutan has opted, for the present, to deal with land use on a case by case basis, without formal regulations. This will require a process of negotiation between the City and each prospective developer in order to establish specific stipulations for a given development project. The development scenerio which appears to appeal to the broadest number of Akutan's residents is that of a major seafood processing development at the head of the harbor, with stipulations which assure a locally controlled access between the present commnity site and the industrial complex at the head of the harbor, two miles away. If the head of the harbor development, or any other major onshore development, becomes a reality, the present residents will be faced with a number of problems related to the shifting characteristics of the new “resident" population. While the overcrowded housing situation in Akutan has been temporarily relieved through the recent construction of sixteen new units, overcrowding could again appear within several years unless additional housing is soon begun. A number of the older houses in Akutan will become uninhabitable over the next ten years, adding to future crowded conditions. The Akutan Village Corporation has no announced major development plans. The Aleut Corporation has initiated informal discussions with the region's Village Corporations regarding a possible legal incorporation of the Village Corporations with the Aleut Corporation. A tentative deadline for such an incorporation would be 1991. Such an incorporation could have a subtantial effect on the process of local development in Akutan. Air transporation to and from Akutan is possible only by seaplane. There is at present no possibility of constructing a runway that is both feasible and safe. Consequently, air transport to the community will remain on an unpredictable basis. Sea transport to the community, while more reliable, is largely dependent on the presence of the seafood industry in the harbor. If that industry substantially withdraws during the next several years, sea transport services to the community will be concurrently reduced. The natural harbor of Akutan Harbor offers no all-weather protection for small boats. While this is not a major problem for the operation of floating processors, it does preclude any substantial entry into the operation of commercial fishing vessels by local residents. A major development at the head of the harbor would likely include some form of small boat of harbor. Additionly, the Army Corps of Engineers is currently investigating the need, cost and effects of, a small boat harbor in Akutan Harbor. Given the pace of the federal process, such a harbor, if built, would not be completed for another five to ten years. The above is a minimal listing of factors which should be considered in any planning effort directed towards the future economic growth of the community of Akutan. Akutan, City of, 1981. City of Akutan Public Qpinion Survey. Akutan, City of, 1983. City of Akutan Comprehensive Plan - Update. Akutan Corporation, 1980. A Report. Alaska. Artic Environmental Information and Data Center, 1977. Potential Port Facilities - South Beri Sea_and Aleutian Shelf — Preliminary Studies. Alaska. Department of Fish & Game, 1983. Eastern Aleutians Management Area Shellfish Management Report. Alaska. Department of Fish & Game, 1965-82. Alaska Catch and Production Commercial Fisheries Statistics (annual). Alaska. House Research Agency, 1982. The Alaska Fishing Industry; An overview of State Expenditures and Economic Benefits. Aleutians Pribilofs Islands Authority, 1982. Application for Grant: A/P Islands Assn. In-Home Services for Senior Citizens. Akutan, City of, 1982. 1982 Comprehensive Plan. Darbyshire & Associates (for the City of Akutan), 1983. Akutan Transportation Study. North Pacific Fisheries Management Council, 1983. enero ee Rulemaking for Bering Sea Fishery Development Pacific Fishing, July 1983. Seafood Report. Pacific Fishing, 1983. 1983 Yearbook. Peratovich & Nottingham, Inc., 1981. Akutan Port Facility —Questionaire for Proposed Development. Peratovich & Nottingham, Inc., 1981. Akutan Port Study. Rose, Frances H., The Alaska Journal, Winter 1983. pe 26. Akutan: Forging anew Formula for Survival. Spaulding, Philip. Ecological Change, Cultural Imbalance and Death of an Aleutian Community. The Fishermens's News; Pacific Fisheries Review, February, 1983 Trident Seafoods Corporation, 1982. The ations Plan for a Model White Fish Processing Facility in Alaska. U.S., Department of the Army, Alaska District Corps of Engineers, 1981. Public Notice: NPACO No. O71: -1-810353; Seawest pro) ° U.S., Department of the Army, Alaska District Corps of Engineers, 1982. Bottomfish Interim Study; Reconnaissance Reporte U.S. Department of Commerce, NOAA, 1981. Gulf of Alaska Bottomfish and Shellfish Resources (NOAA Technical Memorandum NMFS F/NWC-10. U.S., Department of the Interior, BIM, 1974. Socio-economic Characteristic for Natives Living in the Aleut Corporation Area. U.S., Department of the Interior, BLM, 1979. Interim Conveyance; the Akutan Corporation (AA 6647A & B). U.S., National Marine Fisheries Service, 1982. Results of the 1982 Eastern Bering Sea Crab Survey. U.S. National Marine Fisheries Services. Northwest and Alaska Fisheries Center. Quarterly Reports.