TAC BUSINESS OPERATIONS
When was Aleut Federal created and how is it performing?
Aleut Federal was created in 2020 as a result of combining Aleut Management Services (AMS) and Aleut Remediation Services (ARS). Aleut Federal ended FY23 (April 1, 2021 – March 31, 2022) with a $5.5M loss. TAC Management audited Aleut Federal’s government contracts and identified that the losses were primarily from the legacy AMS and ARS environmental and construction business lines. As a result, TAC and Aleut Federal instituted process and controls to ensure all contracts are bid to be profitable. TAC Management continues to work with Aleut Federal to monitor each of the business lines closely and adjust oversight as needed.
Is TAC pursuing mineral exploration and land development in our region?
TAC firmly believes that we are stewards of our land and any mineral exploration or land development must be done so responsibly and safely. TAC’s Board is moving forward cautiously; TAC is not rushing forward into any type of pre-exploration or exploration agreement that does not explicitly safeguard our land and our fish. The Board has made it very clear that it will reject any proposal or partnership that puts our land or our fish at risk.
SETTLEMENT TRUST
What is The Aleut Corporation’s position on creating a Settlement Trust?
ANCSA allows Alaska Native corporations, like TAC, to establish and maintain a settlement trust to provide tax-free dividends to shareholders. The Board of Directors will discuss the creation of a settlement trust at the March 2023 Board meeting. If it moves forward, it will be presented to shareholders at the October 2023 Annual Meeting. TAC Management and the Board will determine the appropriate timing of moving assets into the settlement trust while balancing TAC’s net operating losses (NOLs). TAC will continue to receive the benefit of our NOLs through 2035.
SHAREHOLDER RELATIONS
Is The Aleut Corporation planning to open enrollment?
The “open enrollment” question has come before the TAC Board repeatedly throughout the years. The overwhelming opinion of our shareholders has been not to dilute dividends by increasing the number of shareholders. Our focus as a corporation is to grow TAC’s revenue and operating income over the next 5-10 years to an amount that could support expanding our shareholder base. Shareholders can gift their shares to descendants to encourage becoming active participants in their Corporation. Contact our Shareholder Relations department with any questions regarding gifting shares.
Can TAC improve the registration process for an adopted descendant?
For cases of adoption, when there’s not a clear connection back to an original shareholder, the Board approved TAC’s recommendation to allow DNA testing for purposes of registering with the Corporation as a descendant.
IN-REGION SUPPORT
Could you provide an update about the pollock quota attached to Adak?
The Aleut Corporation has tried several different approaches to get our pollock quota back. TAC went before the North Pacific Fisheries Management Council with our case. When that didn’t prove successful, TAC went to the Department of Justice. The DOJ did not find enough evidence to act.
TAC has shifted its strategy to engage the Alaska delegation, Senators Lisa Murkowski and Dan Sullivan and, most recently, Congresswoman Mary Peltola, to take a top-down approach. They are working with the Department of Interior and NOAA. It’s a high priority for TAC to get our pollock allocation back.
Our region is facing drastic migration out of our communities. Can The Aleut Corporation do more to invest in our region?
The out-migration from our regional communities, from rural to urban areas, is common across the state for all Alaska Native corporations. Every quarter, the Board reviews statistics on where our shareholders and descendants are located. The balance has shifted dramatically in the past 5-8 years from moving out of the region into Anchorage and then out of Anchorage into the Pacific Northwest. A majority of our shareholders now reside in Anchorage or the Lower 48. In our smaller communities, the impacts of migration can be devastating. TAC is working with the Aleut Foundation to hire our kids as they come out of college. But it is an uphill climb.
TAC is also prioritizing how it invests in our region. We are pursuing federal grants for exploring renewable energy viability, repairing crucial infrastructure, and cleaning up our contaminated lands. We are going to be better partners for our village corporations and look for innovative solutions that benefit and support our communities. TAC can’t stop the out-migration from our communities, but we can help support and provide opportunities for shareholders and descendants to come back to.