PACIFIC NORTHWEST SPOTLIGHT
Mayor: 'Anchorage Breeds Entrepreneurs' |
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olstered by huge investments from global logistics firms like UPS, FedEx and China Air, the Anchorage area of South Central Alaska is having one of its best years ever in terms of new corporate and commercial construction. The biggest year ever for Anchorage was 1983, when new construction in the city topped $1 billion. By early December 2006, Anchorage was on pace to nearly match that amount. "These numbers are impressive and demonstrate the confidence that individuals and businesses have in our city," Mayor Mark Begich said, noting that the building boom of the 1980s was fueled largely by government- funded projects. This time, private industry is driving the growth, led by major investments from Wal- Mart, Target, Immediate Care Pharmaceuticals, Holiday Inn, Embassy Suites, JL Tower, UPS, FedEx and China Air. Site Selection recently caught up with Mayor Begich and conducted the following interview:
Mayor Mark Begich: It is a lot of things. People who look around the country see Anchorage as having some unique location assets. Our air hub for logistics continues to grow here with FedEx and UPS. We have many other air cargo facilities here, such as China Air. Half of their landings in the U.S. will be here in Anchorage. The economy here is no longer oil and gas dependent. A lot of research is coming out of the university and medical center here. Now, we have some very high- quality medical services and it is one of our fastest growing labor markets in Anchorage. I would also cite our education attainment. Our university system is very strong. Property taxes are very low. We have no income tax and no sales tax. Our cost of living is about equal to Portland's. It is different than it was 10 years ago. SS: What perceptions in the minds of business executives do you find that you still need to change? Begich: That it is always very cold here; that we don't have amenities their employees might want; that our cost of living is exorbitant; and that we don't have the services they would need. Once we get them here, it doesn't take long to change their minds. If they are smart business people, they figure it out quickly. It is just a total misperception. There is no question that people now want to come to Alaska. They quickly learn that this is a great place to do business. When I talk to people who do port development, I tell them that projects can get done very quickly here. People expect a process of long delays, but we are very quick to make things happen. SS: Does Anchorage produce and attract entrepreneurs? Begich: Anchorage just breeds those kinds of folks. You can come here with an idea today and tomorrow you can be in business. You have great opportunity here. You don't have ingrained social strata here. If you want to work hard, you can do just about anything. We have many Native Alaskan corporations that now do business globally. SS: What public infrastructure projects will benefit corporate development in your city? Begich: The convention center expansion in downtown Anchorage is a $100- million project. It will be done in September of 2008. There is a $100- million expansion of our museum, scheduled to be completed by 2009 or 2010. Our new public parking garage in downtown is a $44- million project and will include retail shops on the bottom level. It will be completed in 2008. Our airport is building a new rental car garage that will cost about $40 million; plus the airport itself is undergoing a $170- million terminal expansion. All of this is happening as we speak. SS: What advice would you give to the readers of Site Selection? Begich: Their perception of Anchorage is the challenge that we have. I ask them to come visit Anchorage, and they will change their views very quickly. It is a great place to live, work, play and retire. Where else can you go and be comfortable walking around downtown at night, walk to see a Broadway play, go salmon fishing just outside of town and enjoy some world- class cross- country skiing? It is a kind of undiscovered location. |
