Anchorage.

• Author: Hill, Robin Mackey
• Position: Anchorage, Alaska - Know Alaska - Cover Story

As president of the private, non-profit Anchorage Economic Development Corporation (AEDC), it's Scott Hawkins' job to expand the city's economic base, or as he puts it, "to increase the size of the pie." Funded by membership dues, the Municipality of Anchorage and the state, AEDC serves as Anchorage's state-designated economic development organization, with an annual budget of between $800,000 and $1 million.

"We're hoping to create enough other things (opportunities) to at least keep even," says Hawkins of AEDC's efforts to further diversify Anchorage's economy. Because no single industry will be able to generate the enormous wealth produced by Alaska's oil industry, Hawkins and others agree that it's important that development occur on varied fronts.

Although AEDC is working to initiate growth in several areas, including tourism and seafood processing, coaxing small manufacturers and international distributors north tops the list. Hawkins admits that doing so is a "challenging sell," primarily because of misconceptions and stereotypes about Alaska and doing business in the Far North. Hawkins' initial goal, however, is to get those in charge to start thinking Alaska and to incorporate a possible move to Anchorage into their long-term business plans.

Earlier this year AEDC hosted two groups of executives -- most of them from California-based software and high-tech firms -- to show them how business-friendly Anchorage can be. Because such firms as computer software developers can work anywhere, Hawkins urges them to think, "Why not Anchorage?"

For international warehousers and distributors, Hawkins again argues that it makes sense to consider Anchorage. The city's proximity to major Asian, European and North American market is unparalleled, and the local air cargo industry is growing. Hawkins points out that firms could hold large amounts of inventory in Anchorage and deliver it where needed in 24 to 48 hours, eliminating the need to store goods in scattered warehouses on three continents. Along those same lines, Anchorage would be an ideal site for parts banks, repairs or final assembly, he says.

In addition to its focus on warehousing and distribution, in the next several months AEDC will conduct a series of tourism-related feasibility studies to determine the need for additional visitor attractions. With $250,000 in state funding, AEDC will examine demand for local tourist facilities ranging from day attractions to ski resorts.

Helping market the services of the Anchorage International Airport, especially to Asian visitors, and bringing large cold-storage and secondary fish-processing facilities to Anchorage rounds out AEDC's plans for the next several months.

History

Archaeologists suspect that Pacific Eskimos lived in the Cook Inlet region, at least seasonally, from perhaps 1000 to 1700 A.D., with the Tanaina Indians arriving sometime between 1650 and 1770. In the spring and summer of 1778, British explorer Capt. James Cook sailed the inlet that now bears his name, only to discover that it split into two arms known today as Turnagain and Knik.

Local history leaps ahead to 1914 and formation of the Alaska Engineering Commission. The group was mapping a railroad expansion route, and the following April, President Woodrow Wilson selected a right-of-way to run through Ship Creek, connecting the port town of Seward with Interior coal fields. A tent city of about 2,000 people immediately sprang up on the shores of Ship Creek and in July, 655 town lots were auctioned. Development of a permanent city began.

During the next 20 years, Anchorage's population varied widely as homes and businesses were built, the city was incorporated and Anchorage's first airport was opened in 1923. Gold was mined in surrounding districts and Anchorage became a shipping center. In 1940, construction began on what is now Elmendorf Air Force Base just outside the city limits. Neighboring Fort Richardson was built in 1951.

By 1950, Anchorage's population had swelled to more than 11,000, thanks in large part to the military. Ten years later, the city's population had increased to more than...