Top business stories of 2007: from politics to health care, from worker shortages to real estate, it was a year full of news.

• Author: Barbour, Tracy

Alaskans encountered a wide range of experiences throughout 2007, including bad news in the political and business arena, exploration of the world's largest concentration of copper and gold, a shortage of skilled labor, the cooling of the real estate market, a mixed construction industry and escalating health care costs. This article revisits these top business stories of 2007.

BUSINESS AND POLITICAL 'SCANDALS' PLAGUE THE STATE

In perhaps the biggest story of the year, former Alaska State Rep. Pete Kott (REagle River) was found guilty of taking bribes from former VECO Corp. CEO Bill Allen--who testified that he also paid for some of Sen. Ted Stevens' (R-AK) home remodeling in Girdwood. (Editor's note: CH2M Hill acquired VECO in late 2007.)

Allen reportedly gave Kott cash and promised him a job with his company as compensation for helping to get a petroleum state tax law (PPT) passed that would encourage oil companies to construct a pipeline that would benefit VECO, according to Associated Press news. The former seven-term lawmaker from Eagle River, located just north of Anchorage, accepted almost $9,000--including a $7,993 check that he used to pay his son to work as his campaign manager. The company also paid for a poll at a cost of a $2,750, media report.

Kott, who served as House speaker for part of his 14-year tenure, was convicted on Sept. 25 of conspiracy to solicit financial benefits, extortion and bribery. He was acquitted of wire fraud. His sentencing hearing was set for Dec. 7. Kott could be sentenced up to 20 years in prison on the extortion charge, up to 10 years on the bribery charge and up to five years on the conspiracy charge, Department of Justice spokesman Bryan Sierra told AP.

Gov. Sarah Palin, a Republican, said it was "very shocking" to read the transcripts, hear the testimony, and see the revelation of proof of the rumors that had been circulating. "We are somewhat disheartened to see that evidence, but, at the same time, encouraged that the legal process is working as it should be," she said. "Justice is being served at the end of the day."

Kott is among a handful of Alaska lawmakers being investigated for corruption by the U.S. Department of Justice. Stevens--the U.S. Senate's longestserving Republican--and U.S. Rep. Don Young are being closely examined for their link to VECO Corp., media says. In addition, Sen. Lisa Murkowski (R-AK) is under scrutiny for land she purchased and sold back on the Kenai River.

The investigations will certainly cause Alaska to come under scrutiny from all fronts--from the voters whom the elected officials are serving and from across the nation from those who are making decisions on Alaskan's behalf, Palin said. However, she says: "My perspective is it's welcomed because we have to be given the opportunity to prove that we are putting Alaskans in front of any special interests. I welcome the opportunity to show Alaskans and Americans that our state is committed to doing things right."

Palin added that Alaskans shouldn't be completely dismayed over the investigations. "They should be encouraged to see this new administration and new legislature are determined to work together to build back that trust," she said.

Kott's case was based on wiretaps of three phones belonging to Allen and a former company vice president, Rick Smith. Other evidence included video recordings the FBI secretly obtained in a Juneau hotel room rented by VECO during the 2006 legislative session.

During Kott's two-week trial, Allen said he paid more than $400,000 to a number of elected officials and had VECO workers remodel the Stevens' Girdwood home. Stevens--who had not been charged as of October--has reported to the news media that he paid all the bills he received for the remodeling project.

Both Allen and Smith have pleaded guilty to bribing Kott and other lawmakers. VECO was positioned to reap millions of dollars in contracts if the state Legislature approved a revised crude oil tax (PPT) that encouraged investment. The Legislature passed the tax, which supporters had said was needed to entice major petroleum companies to commit to helping build a pipeline.

Palin has called for a re-examination of the revised crude oil tax approved by the Legislature when Kott and other lawmakers were being investigated. She is working to close...