Native Village Corporations Diversify for Economic Success.

• Author: BARBOUR, TRACY
• Position: Statistical Data Included

Native village corporations engage in a wide range of industries from construction and oil to tourism and hospitality. Collectively, they employ thousands of workers statewide and generate millions of dollars in annual revenues. They also distribute substantial charitable contributions and scholarships funds that impact Alaskans as a whole.

Klukwan Inc. is a prime example. Headquartered in Juneau, it is the state's largest village corporation in terms of employment and revenues. Klukwan owns an entitlement of 23,000 acres of forested land in the heart of Southeast Alaska's rain forest, a diversified portfolio of financial investments, and businesses operating throughout Alaska and the Northwest.

With about 350 shareholders, Klukwan Inc. employs between 450 and 500 people, according to Ron Gelbrich, president and CEO. Last year, over all revenue for the corporation was nearly $80 million, he said.

Klukwan Inc. has statewide interests in Alaska's construction, mining, forest products, marine transportation and visitor industries. Its enterprises are consolidated into four business groups: Atlas Alaska of Anchorage, South Coast Inc. of Ketchikan, Chilkat Cruises & Tours of Haines and K Ply Inc. of Port Angeles, Wash.

At this stage, the corporation's main focus is to solidify those companies. "Our intent is to grow within these basic business units and to continue to look at other opportunities," Gelbrich said.

Village Corporations Primer

Klukwan Inc. is one of 200 or so village corporations organized under terms of the Alaska Native Claims Settlement Act. The 1971 legislation created 12 regional Native corporations, dividing 43.7 million acres of land among them. Each corporation chose land in 12 geographic regions of the state and each represents a group of Alaska Natives. (A 13th Native corporation was established in Seattle to benefit Alaska Natives living outside the state.)

ANSCA also provided for $962.5 million to be distributed among the 13 corporations.

Within the 12 Alaska regions, Native villages located on reserves could receive title to the surface and subsurface rights of their land in place of a cash settlement. Or they could accept a payment and fee simple title to their land and subsurface rights.

All but six villages ultimately opted for a cash settlement. They subsequently set up profitable corporations to oversee their finances and resources, and overall well-being of shareholders.

Alaska Natives-those at least one-quarter...