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Seeing The Dividends
Petersburg Invests In Public Cold Storage
Petersburg, originally a Tlingit fish camp, is highly influenced by the late 1800's immigration of a Norwegian businessman who founded a cannery, sawmill and dock upon his arrival. By 1900, Petersburg was seeing its first shipments of halibut and salmon and ice (actual glacier ice) to national and international markets. That economic base has continued for the past 100 years and more than one thousand people are employed by the seafood processing industry in this community of just over 3,000.
In 2004, we interviewed Eric Phillips with The Petersburg Economic Development Council (PEDC). PEDC is the local non-profit economic development organization governed by a nine-member Board of Directors representing a cross section of the Petersburg community. At the time we spoke with Eric, PEDC had sponsored two successful community ballot propositions/initiatives. One of the propositions provided local funds for the development of cold storage and freight consolidation facilities in the community. The second proposition provides for the establishment of a local loan guarantee program to stimulate small business start up and expansion activity in the community. In addition to the local funds secured for the cold storage and freight consolidation projects, PEDC was successful in 2003 in securing $1.29 million in grant funds through Alaska’s Department of Commerce and Economic Development for the project. As Eric reviewed the common thread on PEDC projects, "The bottom line is that economic development on an island community usually comes back to one issue….. transportation. Eric has moved on, now to Valdez (yes, it has seafood, but also a road).
Liz Cabrera is now carrying out the Petersburg Economic Development Council initiatives, one of which has already paid dividends - the Public Cold Storage Facility. One of the principal drivers in this development was to provide the infrastructure necessary to hold more of fish in the community so that more of the value added work can be done by residents during the off-season. It is owned by the Petersburg Economic Development Council who hires a manager and oversees the operation. Everyone has access to it and it is used as an economic incentive -- a leg up, so to speak. Storing is $30 per month, per tote and blast freezing/glazing 7 cents a pound. They operate a plate freezer, handles 5000 pounds at a time -- freezing on trays. They sell ice and charge the market rate. During the off season they hold bait and other for their community clients.
Summer 2007 was the first year the community cold storage ran at full capacity. Blast cells ran 24 hours a day and they were able to bring in more than 1 million pounds of seafood that may not otherwise be handled. Smaller producers used it for processing and consolidating shipping -just as intended by the PEDC. Liz recounted several examples of local processors utilizing the facility for value added production of a variety of seafood species for local consumption in retail, restaurant or individual sales. It was exciting to see the community respond to the possibilities of extending their season and business opportunities through a public cold storage facility. Stay tuned, as Petersburg was ahead of the curve with their implementation and likely their seafood know-how and determination will realize even greater returns.
Liz Cabrera, Manager Petersburg Economic Development Council 907.772.4042 Fax 907.772.4032
Petersburg Seafood Connection: Coastal Cold Storage Lofoten Fish Company Northern Lights Smokeries Petersburg Fisheries Tonka Seafoods, Inc. Ocean Beauty Seafoods NorQuest Seafoods Alaska Inter-Island Ferry Authority
Petersburg Chamber of Commerce City of Petersburg Petersburg Economic Development Council
[PRINTER FRIENDLY VERSION]
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