Chijuk Creek Timber Harvest – A WIN for All Alaskans!

Project Overview

The vote regarding the Chijuk Creek Timber Harvest at the Matsu Borough Assembly, on April 17, can setup the opportunity for Alaskans to step onto the world stage and take control of their economic future. The logs harvested from Chijuk Creek will supply the Chinese wooden basket industry. The Mat-Su’s crooked birch trees and beetle killed Spruce are not suitable for the production of construction lumber. The business plan by Denali Timber Management, LLC, is to harvest trees in the Chijuk Creek that are 8 inches or more in diameter. This is not a clear-cut. They will then, transport the logs to Port McKenzie, where they will be loaded and shipped to China. This project has many key advantages, not just for the Mat-Su, but for all of Alaska.

Impact on Property Tax Payers

The Chijuk Creek timber project is projected to generate tariffs and lease revenue sufficient to make Port McKinsey break-even. That’s a whole lot better than MSB taxpayers paying $1 million per year from property taxes for the expenses for an idle port. In effect, the revenue from this project will free up $1 million of the MSB budget to go to services like repairing our swimming pools, building libraries, or filling the potholes. Or… maybe even a tax cut? Adding revenue sources to the MSB budget from sources other than residential property tax are a better way to stop property tax inflation than cutting budgets. This is because they create investment and jobs in the process. The port lease area proposed for this project is only a tiny fraction of the 14 square miles of Port MacKenzie. Imagine if it was all leased out.

Environmental Impact

It is understandable why some people object to mining, drilling, or gravel pits as these type of projects may change the face of the land permanently (Arguably, Usibelli is the exception!). However, the Chijuk Creek timber project is the perfect balance between economic development through monetizing renewable resources, and preserving and enhancing our natural environment.

From the point-of-view of the State of Alaska Division of Forestry this project this is important for curing a critical problem of Spruce Beetle infestations. Spruce Beetles are killing large stands of Alaska’s spruce trees. These dead trees pose a serious fire danger. The Willow fire should still be fresh in our minds. Imagine what would be lost in a similar fire around Trapper Creek or Talkeetna. Removing these types of hazards is a key strategy in managing the fire danger and stopping the spread of the Spruce Beetle.

The Chijuk Creek timber project will also create dozens of miles of recreational access roads and trails for all types of users.

Wildlife Impact

Although it is not spelled out as habitat enhancement project, the Chijuk Creek Timber Harvest Work Plan calls for “scarifying” the land where the harvest takes place. Scarifying is the process of disturbing the soil in a way that stimulates new growth of other plant species. This process stimulates growth of willows- the preferred food of Moose and Grouse. Scarification is NOT a new concept. Every winter, the Alaska Department of Fish and Game, and the Alaska Division of Forestry cooperate on projects to enhance Moose and Grouse, habitat through timber removal and scarification. To accomplish this, they roll over trees with a 50,000 pound roller-chopper owned by the Alaska Moose Federation. The roller chopper chops the felled trees into small pieces and the roller-chopper’s large blades cut deep into the earth. This process stimulates the growth of other species of plants like willows. Imagine an 11,000 acre Moose “pasture” created without any tax dollars being spent! What a deal!

Business Impact

The Chijuk Creek logging project is critically important- not just for the Mat-Su community, but for all of Alaska. This project could actually be the catalyst that takes Alaska from being a virtual territory of the United States, to a global player- as a supplier of renewable resource products.

This project will put Alaska on the world stage because it will be the first time, large scale, scheduled shipping for renewable resource products has happened in decades. This enterprise will succeed in proving the following.

Proving the functionality and value of Port McKinsey.Proving that Alaska can reliably supply renewable resource products on a large scale.Demonstrating Alaska’s logistical competitive advantage with Asia.

Alaska has the logistical advantage for trade with Asia. Alaska is 30% closer to Asia than Seattle and 74% closer than northern Europe. To date, there are no direct shipments from Alaska to Asia except mineral products and seafood. Most shipping from Alaska goes via Seattle and is then forwarded to Asia. That indirect route makes Alaskan products very expensive.

Once the operations by Denali Timber Management are established, and they are shipping logs to Asia on a regular basis, Alaskans will have a success story that can spur the selling of bulk agricultural products like hay, grains, and even meat. The future will belong to those who dare to try.

Local Impact

Talkeetna, Trapper Creek, and many of the businesses along the Parks Highway will benefit from commerce during the project. Everything will benefit- from support services to fast food and lodging. After the project is done, the open forest with trails and improved access will become a long-term economic stimulus for the Mat-Su in general with much of the value concentrated in the Trapper Creek and Talkeetna area. Furthermore, the subsistence hunting opportunities for the locals will increase many fold.

Government

The benefits to the Mat-Su Borough go substantially beyond $1 million of additional revenue. Lightly populated areas, like Talkeetna and Trapper Creek, have a very thin tax base, and in many cases cause red ink for the MSB because of heavy infrastructure costs that exceed tax revenue for the area. This project will increase commerce and jobs, and as a result, tax revenue will increase throughout the MSB.

From a risk management point of view, removing the beetle killed and infested trees will ensure that an already overstretched and underfunded fire crews are less likely to have a catastrophic fire to deal with.

The Big Picture

On the big pie chart of American economics and politics, Alaskans are virtually irrelevant. There is 1 Alaskan for every 496 other American citizens. The way things are now, the future of Alaska will be determined by people that don’t even live here. This is why Alaska needs to behave less like the 49th state, and more like a sovereign country.

With only 730,000 residents in Alaska, international trade is the key strategy for gaining the economy of scale to take Alaska from dependency, to self-sufficiency.

96% of Alaska’s food is imported. The people that feed Alaskans from outside, tend to view Alaskans as foreign consumers- no different than Japan, China, or any other export country. As Alaskans, we are vulnerable to any disruption that happens in the lower 48 economy or supply chain. Making the transition from 49th state to global player requires that we drastically reduce our dependence on food products from the Lower 48 states. Economic Independence begins with food independence. And in case you weren’t aware, our supply chain is a 3,000 mile long carbon footprint that is a single point of failure.

According to a report by the Brookings Institute in February 2017 titled: The Unprecedented Expansion Of The Global Middle Class: Annual consumer goods expenditures, by the global middle class, will increase by $29 Trillion by 2030. These middle-class consumers will want food products that come from sources that stand for quality and purity. Two-thirds of these middle class consumers will be in China. Alaska is in a prime position to be the supplier to all consumers globally, if we will invest in clean, renewable, large-volume agriculture.

There are 4.2 billion potential customers in Asia. It is projected that in the next five years 350 million new Asians will be born. Imagine if Alaska just had 50 million Asian customers, spending $20.00 per month on Alaskan products- that would be $1 Billion of new revenue for the Alaskan economy per month. That’s more revenue than the oil pipeline brings in. And it won’t have a pipeline price tag to get there. Set aside a percentage of that production to feed Alaskans, and you have food security for all Alaskans.

The Right Balance

Red, Blue, or Green- Alaskans must eat. Alaskans must have housing. Alaskans must clothe and educate their children. These basic needs are met by having an economy that creates jobs. The Chijuk Creek forest project will create jobs, not only for the logging industry, but for all service and product providers to the logging industry, transportation industry, and Port MacKenzie. But more than that, it can set up a path to large global scale agriculture markets and economic independence for Alaska.

What’s your vision for Alaska between 2018 and 2030? Will Alaskans and their elected officials have the vision and courage to unite and make it happen? Will we be relevant or irrelevant, status quo or global player? Let your elected officials know what you expect of them tonight at 6:00 PM.

Don Dyer is the President of MatSu Economic Development Corporation and the Executive Director of the Alaska Moose Federation. Visit: www.matsuedc.com and www.AlaskaMooseFederation.org