Texas development helps 'green' Alaska: CIRI's business, housing projects funnel dollars back into the state.

• Author: West, Gail
• Position: BUILDING ALASKA

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For how many years have Alaskans watched Outside business interests drain our state's resource wealth? From trappers to miners, fishers, loggers and big oil, non-Alaskans have come to our state to seek their fortunes and then take their money home. True, these businesses have provided some benefits to Alaska. Oil proceeds fund our government and the Alaska Permanent Fund, and construction of oil-industry infrastructure, such as the trans-Alaska oil pipeline provided good jobs for many Alaskans. They also employed Outside workers who took their incomes home--the money leaking out of Alaska like water through a sieve.

Today, however, a new generation of Alaska-based companies, especially Alaska Native corporations, are working to reverse this outflow of cash. Cook Inlet Region Inc., for example, has invested in a variety of businesses outside the state of Alaska--from oilfield and construction projects to real estate and resort developments and telecommunications, and these businesses are importing profits into Alaska.

CIRI is the Alaska Native regional corporation created by the Alaska Native Claims Settlement Act of 1971 (ANCSA) for Alaska Natives who had cultural or social ties to the Cook Inlet region. CIRI's corporate headquarters and most of its employees are based in Anchorage, and two-thirds of CIRI shareholders live in Alaska.

MOVING 'OUTSIDE'

Today, the corporation is aggressively pursuing a variety of real estate projects in the other 49 states. Its biggest single project is a 22-acre office and hotel project in San Antonio, Texas. It has other ongoing projects in southcentral Texas, southern California and in Hawaii.

Work started on the San Antonio office project, called 1400 Sonterra, in 2007 when CIRI Land Development Co. (CLDC)--a wholly owned subsidiary of CIRI--began the design process. Under the current concept, it is slated to include two hotels, approximately 600,000 square feet of Class A office space in three multi-story buildings, parking garages and restaurants.

"Our current plans could change," said Jim Jager, communications director for CIRI. "We don't have final board approval on the whole project and we are ready to adjust for tenant needs or other business opportunities."

Jager said CIRI's board has approved the general concept, and has also approved the first of the two hotels--a 126-room Hyatt Place hotel. Construction crews started work on the project site and individual building pads in...