Working together to reach a common goal: joint ventures help native corporations expand markets, increase expertise.

• Author: Orr, Vanessa

As Native corporations continue to diversify their holdings and grow their interests within Alaska as well as outside the state, it can often benefit these businesses to find other companies to partner with on specific projects. Establishing joint ventures, which are partnerships or cooperative agreements created for a specific purpose, for example, working on a federal contract, can provide advantages for both Native corporations and their business partners in many ways.

"One of the biggest advantages to entering into a joint venture is that different companies bring different capabilities to a project," said CIRI Corporate Communications Manager Jim Jager, of the company whose subsidiaries are involved in joint ventures in telecommunications, government services, construction and oilfield services. "Joint ventures also enable the companies involved to spread the financial risk."

"If you partner with a company who is a leader in a specific market, or who has expertise in a certain area, you can sometimes establish a mentor/protege relationship," added Curtis McQueen, corporate affairs, Eklutna Inc. "You can benefit from your partner's successful track record in an industry where you might not have worked before."

EXPANDING AREAS OF EXPERTISE

CIRI (Cook Inlet Region Inc.) is a prime example of a company that has used joint ventures to expand its reach in certain industries. In 2005, the corporation, which has been in the telecommunications business for the past decade, teamed with T-Mobile USA to offer wireless telecommunication services in the Lower 48. One of CIRI's largest investments, the company invested $80 million in this joint venture, acquiring 36 licenses which enabled it to provide wireless services in markets including Seattle, Denver, Indianapolis, San Antonio, Austin and Kansas City.

In the tourism sector, CIRI teamed with Woodbine Development Corp., the interests of Sid and Lee Bass and other companies, to develop the 493-room Hyatt Regency Lake Las Vegas Resort, Spa and Casino in Henderson, Nev. The corporation also teamed with other tourism industry investors to develop the 349-room Ritz-Carlton, Lake Las Vegas and the 732-room Westin Kierland Resort and Spa in Phoenix/ Scottsdale. In 2005, CIRI again teamed with Woodbine Development Corp. and other investors to add the Hyatt Regency Lost Pines Resort and Spa in Austin, Texas to its portfolio.

"When we decided to invest in a new destination resort in the Lower 48, one of...