Mat-Su Moving Forward 2023

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MARCH 2023 A comprehensive view of the Mat-Su • Real estate • Economy • Education • Healthcare

THE COVER

Mat-Su moving forward

Each year the Frontiersman puts together a special edition we call Progress. It is one of our biggest projects on the calendar and an opportunity to take a big picture look at a trend or theme related to our community. In the past, we’ve focused on philanthropy, the unsung heroes of the Mat-Su and business struggles and growth.

Two years ago our focus was on the pandemic. While residents are still feeling impact from the pandemic, the narrative has changed. Last year our theme is progress through adversity. This you we are focusing on the future, Mat-Su moving forward.

We are took a taking a broad look at a handful of topics we feel are very important to the Mat-Su: real estate, local business, healthcare, tourism and education.

The growth in residential and commercial real estate in the borough has been incredible. That growth includes the healthcare industry. The tourism outlook continues to improve. Local businesses have worked through issues such as staff shortages as they continue to rebound from the pandemic.

We at the Frontiersman are proud to tell these stories through our local perspective.

Thank you for reading,

2 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023
INFRASTRUCTURE Wasterwater . . . . . . . . . . . . . . . . . . . 3 ECONOMY 2024 Arctic Winter Games 4 State 6 Local 8 Employment 9 EDUCATION State of the school district 10 The 4 C’s 11 PLC Mondays . . . . . . . . . . . . . . . . . . 12 Mat-Su College 13 Talis Colberg retiring 13 HEALTHCARE MSRMC Q&A 16 REAL ESTATE Residential real estate 17 Real estate growth 19 ROAD CONSTRUCTION Borough roads 20 Future projects . . . . . . . . . . . . . . . . 21 INSIDE: PAGE 16 PAGE 17 PAGE 4 Mat-Su Moving Forward 2023 is a product of the Mat-Su Valley Frontiersman. Kim Benedict
Kim.benedict@wickcommunications.com Jeremiah Bartz Managing Editor, Mat-Su Valley Frontiersman editor@frontiersman.com Petra Albecker Regional Multimedia Marketing Consultant petra.albecker@frontiersman.com Ben Borg Regional Multimedia Marketing Consultant ben.borg@frontiersman.com Contributors Tim Bradner Mark Kelsey Katie Stavick
Group publisher
SEE STORY ON PAGE 17
ON
Sarah Lazzarotto, executive director of Mat-Su Home Builders Association, comments on the real estate market.

Itis a measure of a community as to how well it provides a safe and healthy environment for its residents – safe streets and clean drinking water top the list in most peoples’ minds.

But so does the safe and efficient disposal of wastewater and waste. Not often a topic of everyday conversation, unless things go wrong.

In this regard, the city of Palmer is close to completing a multi-year, $12 million modernization of its municipal wastewater treatment plant. The new plant not only brings Palmer into full compliance with strict state and federal regulations but adds capacity so there is room for expansion as Palmer grows, Palmer city manager John Moosey says.

The final touches on the system are now being made and testing is underway. The new plant will be fully operational in April.

The new system replacing the older sewage settling lagoons that at times had become a nuisance for nearby residents.

Where the older system was passive, relying on sunlight and air to aid nature in breaking down the waste the new system is a combination mechanical and biological process that breaks down the sewage much faster, said Jude Bilafer, Palmer’s public works director.

What used to take 17 days now takes 10 hours to 12 hours, Bilafer said, and the final result is a cleansed liquid that can be safely discharged into the Matanuska River. The discharges are done under permits issued by the state Department of Environmental Conservation under federal guidelines.

At the core of the new system are “Moving Bed Bio-Reactor (MBBR),” or facilities where wastewater is moved from the “headworks,” the building where city sewer pipes connect with the plant, into the MBBR.

There, bacteria speeds the natural breakdown of solids aided, in the most recent addition, by the installation of two “clarifiers,’ devices which further break down any remaining solids.

“It works like a big mixing bowl,” Bilafer said, with mechanical arms that stir the wastewater to speed the natural breakdown. The clarifiers are built into two concrete structures that are 55 feet in diameter and set 20 feet into the ground.

The last part of the system is a building where the wastewater is scanned with ultraviolet light to eliminate harmful bacteria, and this is being upgraded.

These modern mechanical and biological systems replace the sewage lagoons, where only natural systems were at work, which takes longer.

The upgrades give Palmer a new, more efficient wastewater and sewage system but also add capacity for future growth. The new system is also in full compliance with federal and state regulations.

Palmer has been working under a federal compliance agreement with the U.S. Environmental Protection Agency for several years over violations of federal rules in the past, although most of those were with documentation and reporting and not problems that put public health in jeopardy.

The original sewage treat-

ment plant for Palmer was built in the 1950s at about the same time as Palmer’s water distribution system. As these systems age upgrades were needed.

That started on the wastewater plant in 2002 with an upgrade to the headworks, where city sewers connect, followed in 2003 with an upgrade to the unit that treats the waste with ultraviolet light.

In 2018 and 2019 the Moving Bed Bio Reactor was installed followed by an upgrade to a mechanical “blowers” that blow air into the system, which speeds the biological process. The two clarifiers, the last parts of the system, are now being installed.

Much of this is being paid for by Palmer residents as part of their monthly sewer and water assessments. However, a $5 million state capital grant in 2022, secured by local state legislators and with Gov. Mike Dunleavy’s approval, will reduce the amount that is paid for by local residents.

There is, in addition, a pending $6.9 million federal grant secured by Alaska Sen. Lisa Murkowski as part of a number of Alaska-designated appropriations in the federal omnibus budget bill passed at the end of 2022.

The grant has not yet been

formally awarded to the city but when it is the money is to be used to upgrade the “headworks,” building.

Not all of Palmer’s wastewater and waste goes through the city’s sewers. There are still some septic storage units on individual residential lots, where waste is stored and periodically disposed of. Properly designed and maintained, septic systems are safe.

Palmer has seven homes on septic systems, some “grandfathered” in, or built prior to the city sewers being installed, and others where homes are in places that would be difficult and expensive to reach.

There are other septic systems within the city in neighborhoods that were annexed by Palmer. These also received “grandfather” rights. The Helen Drive area of Palmer, for example, was annexed into the city and all lots around Helen Drive are on septic systems, having been that way prior to being annexed into the city.

There is also the new Cedar Park subdivision now being developed that will be on septic systems as well as wells for water. Cedar Park consist of 83 homesites, the first phase which is in progress now consists with 31 lots. All these lots will be on septic and well water.

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 3
Palmer’s new $12 million wastewater treatment plant has capacity for community to grow

The 2024 Arctic Winter Games coming to the Mat-Su Borough

Withjust over a year until the e 2024 Arctic Winter Games, preparations are well underway in the Matanuska-Susitna Borough to welcome an estimated 6000 athletes, trainers, families, and fans to the area.

The Arctic Winter Games is unique event that brings together 2,000 athletes from nine delegations around the circumpolar world for a week of sports and culture. Athletes from Alaska, the Northwest Territories, Yukon, Nunavut, Greenland, Nunavik (Northern Quebec), Northern Alberta and the Indigenous people (Sapmi) of Norway, Sweden and Finland will participate in 21 sports– from Heritage and Nordic, to Indoor and Ice Sports, including team and individual events, as well as tra-

ditional sports such as Dene games. The week-long event is a celebration of Arctic cultures from around the world, with cultural programming held during the Games.

Plans have been underway for years to host the Arctic Winter Games, beginning after Alaska last played host to the Games in 2014. In February, 2021, the Mat-Su Borough officially submitted its bid to the Arctic Winter Games International Committee to host the 2024 Arctic Winter Games. Borough Planning Services Director Kim Solien led the team that prepared the bid, and is excited for the opportunity to host over 300 athletes for competition in 21 sports, as well as the cultural exchange programs that will take place during the games.

The 2024 Games are already unique in that they are coming

right off the heels of the 2023 Games in Wood Buffalo, Canada. Traditionally, the games are held every two years, but the COVID-19 pandemic delayed competition for a few years to having the Games back to back. The 2020 Games were cancelled due to health concerns revolving around the pandemic, days before the World Health Organization (WHO) declared a world-wide pandemic.

“It’s been 5 years since the last Games were held, that’s had a dramatic impact on coaches, athletes, and development. Then it’s a quick short year from Wood Buffalo to here,” said Gary Schauerte, Director of the Northwest Territories for the AWGIC.

“Normally, the Arctic Winter Games International Committee would have come ahead of a bid, but COVID changed

everything,” explained Casey Ressler, Director of Marketing & Public Relations for the MatSu 2024 Arctic Winter Games Host Society.

“We did the bid virtually for the first time ever, and it was done very well. We did a lot by Zoom, even going out to the ski lift (Skeetawk) using a camera as someone went about,” explained Schauerte.

The first Arctic Winter Games were held in 1970 and have

4 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023
“THE FIRST ARCTIC WINTER GAMES WERE HELD IN 1970 AND HAVE NEVER BEEN HOSTED BY THE MAT-SU BOROUGH BEFORE.”

never been hosted by the MatSu Borough before.

An estimated 2,000 volunteers will be required to undertake the effort of putting on the games. Local high schools and middle schools will be transformed into AWG villages, while Skeetawk Ski Trails in Hatcher’s Pass will be a spotlight for skiing events. Meanwhile, local businesses are making upgrades and improvements in preparation to receive the thousands of visitors. Among the partnerships secured before sending the bid to the AWG International Committee are the Chickaloon Village and Cook Inlet Tribal Council, both of whom will consult in putting on the ceremonies for opening and closing and assist with the weeklong cultural exchange among athletes from arctic nations.

Recently, the AWG Committee

celebrated a milestone with the opening of their headquarters at 902 Palmer-Wasilla Highway. In addition to being the center hub for all things related to the 2024 Games, the headquarters sells a variety of AWG gear and SWAG, and visitors can take a peek into Games past with a display of cultural and athletic items from past Arctic Winter Games.

Next up for the Games will be the official one-year countdown kickoff, a week-long of different events to mark the countdown to the 2024 Arctic Winter Games.

“While the Arctic Winter Games features 21 different sports during the weeklong event, they are so much more,” said Amy Spargo, Chair of the Mat-Su 2024 Arctic Winter Games Host Society during her remarks at the AW-

“It is athlete-centered, a true showcase event for the athletes and everyone taking part,” said John Rooda, President of the AWGIC.

“At a time when our communities feel so divided, the Arctic Winter Games will bring people together through sport

and culture. From our Tribal partners to government agencies to local businesses and non-profits, the Games is greeted with enthusiasm!” said Spargo.

For more information about the Mat-Su Arctic Winter Games, please visit www.awg2024.org, or visit their Facebook Page.

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 5
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State economy stumbles forward

Slow growth projected for Alaska, but challenges remain

Alaska appears to be on an incremental, but steady, rebound following the slowdown during the pandemic. Analysts and observers are cautiously optimistic that trend will continue, although challenges remain.

Most significant is a shortage of workers. In an economic overview presentation to a legislative committee in early February, Dan Robinson, chief of labor and research analysis for the state Department of Labor and Workforce Development, told legislators that the issue is population- and demographics-based.

Alaska has one of the largest percentage losses of working-age people in the country, he said. This is not solely a result of people moving out of state. It’s compounded by people who age out of the workforce but stay here.

Still, the state has managed economic growth, although its gross domestic product increases have been at a slower pace than nationally. Robinson pointed out this trend of underperformance to the U.S. economy has been steady since 2013.

He also noted the difficulty in financial planning and budgeting when large chunks of the revenue pie are controlled by outside forces.

“Because of the volatility of our revenue streams – mostly oil – it is hard to plan,” he said.

Robinson identified federal spending in Alaska as another huge source of state revenue that is inconsistent because of the vicissitudes of the national economy.

Neal Fried, a longtime economist with the Department of Labor and Workforce De-

velopment, said the national economy has always had an affect on the state economy. Now, it is slowing the migration of working-age people here, something Fried agreed is helping to drive the state’s general population decline and inability of businesses to fill open positions.

He said outmigration is a misnomer. There are fewer people coming to Alaska, and there is a decline in labor force participation because of the retirement of baby-boomers.

“We’re not attracting people to Alaska like we did in the past, because our economy is way less robust than nationally,” Fried said. “People move for opportunity. If opportunity is around the corner, you’re not going to move 2,000 miles for it. We’re really just the victims of a strong national economy.”

But Fried said Alaska’s economy has shown resilience through the pandemic, with a huge assist from federal dollars related to Covid aid and enhanced unemployment benefits. That financial shot in the arm got boosted with the passage of the recent biparti-

san infrastructure bill, which is already sending tens of millions to the state.

“Alaska did very well with the infrastructure bill,” he said. “The federal government is probably the biggest driver of the Alaska economy now.”

Fried said the use of the permanent fund as a revenue source for government has also helped fill some of the fiscal gap.

“It’s added some stability,” he said. “It could be sustainable, too, as long as management remains prudent.”

Fiscal stability and sustainability have long been identified as key to attracting and retaining businesses and families, according to the Anchorage Economic Development Corporation.

At its annual Economic Forecast Luncheon in January, AEDC said the slowing of inflation, as supply chain and logistics issues that plagued 2021 and 2022 are resolved, is buoying hopes that businesses will be able to expand.

Based on its yearly extensive polling of Anchorage busi-

nesses and business leaders, AEDC is predicting incremental job growth and continued low unemployment in 2023.

On the downside, though, the shrinking labor force will continue to be a barrier to higher levels of growth.

AEDC’s executive director, Bill Popp, said the survey results show the business community is confident in an overall good year in 2023.

“But I would not characterize this confidence as exuberant,” he said. “Rather, I think the business community sees a positive path to improved success for their businesses in 2023.”

As the population and financial center of the state, Anchorage’s economy is often a mirror of the statewide economy. So modest growth predicted across all economic sectors in Anchorage is likely good news for the rest of the state.

Mat-Su, meanwhile, has been an economic outlier. As Anchorage and the rest of state struggled during the pandemic, the Valley economy has chugged along nearly un-

6 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023

affected. (See related story, page 8)

The cautious confidence of the business community is tempered by a more pessimistic outlook from consumers. Popp attributes that to a regular stream of negativity in news and social media, combined with a growing perception among consumers that the state is unable to address longstanding problems.

“When it comes to big issues like the state fiscal crisis, housing, homelessness, and many other challenges our city and state have been facing for years, nothing ever seems to get done,” he said.

Also inducing frustration among employers is the his torically low unemployment rate, which is present despite thousands of unfilled jobs in the Anchorage/Mat-Su re gion. That’s good news for job-seekers, though, who should see decreased compe tition for open positions, espe cially in the sectors hardest hit by worker shortages.

Of the 10 economic sectors identified and studied in the AEDC survey, only health care, government, and finan cial activities are projecting flat growth. The other seven

are projecting growth ranging from 1 to 7 percent over 2022, with the oil and gas sector riding billions of dollars in new investments to the top of that range. Leisure and hospitality, buoyed by increases in both cruise ship and independent travel, is second-highest, at 5 percent projected growth.

Despite having the highest ex-

lose jobs. We see a good year ahead, but not necessarily a great year like 2022 was,” Popp said. “Lack of available workers with the skills local employers need to fill thousands of vacant job positions is the simple answer as to why we won’t see more jobs added in 2023.”

He admitted there are no quick

fixes to the situation. Alaska must find a way to attract and retain energetic and talented workers. Economic and educational stability are needed to provide confidence to families and businesses that the state is worth investing in.

“We must act to bring about new strategies and resources to remake our schools and universities into a new generation of high performing centers of educational and training excellence that a parent or student would be proud to have attended,” Popp said. “We have every reason to be optimistic about the coming year and beyond. But we have work to do to take full advantage of the many opportunities before us.”

FIND OUT MORE

Alaska economy statistics

https://live.laborstats.alaska. gov/index.php

Anchorage Economic Development Corp. report https://aedcweb.com/report/2023-economic-forecast/

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 7
Projected job growth or loss by Alaska industry, 2018 to 2028 - 651 - 572 - 494 - 464 - 44 2 96 239 248 282 827 858 974 1 200 1 285 1 618 1 690 2 047 3 286 5 049 Local Government Educa ional Serv ces Pub ic/Pr vate S ate Government nformat on Federa Government F nanc a Ac iv t es Ut t es Arts En erta nment and Recreat on Who esa e Trade Management of Compan es and Enterpr ses Transportat on and Warehous ng Retai Trade O her Serv ces exc Government Adm n/Suppor Waste Mgmt Remediat on Manufac uring Construct on M ning, incl Oil and Gas Profess ona Sc ent fic Techn ca Svcs Accommoda ion and Food Serv ces Hea th Care/Soc a Asst Pub ic/Pr vate - 8 2% - 3 7% - 3 0% - 1 9% - 0 3% 0% 2 4% 3 7% 3 9% 4 3% 4 9% 8 4% 9 9% 10 3% 10 6% 10 7% 10 8% 11 7% 13 0% 15 5% In ormation Loca Government6 State Government Educat ona Serv ces Publ c/Pr va e Federa Government3 F nanc a Act vi ies Reta Trade Transportat on and Warehousing2 Who esa e Trade Ut i ies Ar s Enter a nmen and Recrea ion Other Serv ces exc Governmen ) Manufactur ng Hea th Care/Social Asst, Publ c/Pr va e1 Accommodat on and Food Serv ces Cons ruc ion Adm n/Support Was e Mgmt Remed ation Management of Compan es and Enterpr ses Min ng incl O l and Gas Pro ess ona Sc en ific Techn cal Serv ces ... by number of jobs ... in percent terms 490 Agriculture, Forestry, Fishing, Hunting 37.2% Agriculture, Forestry, Fishing, Hunting Includes public sector hospital employment Includes U.S. Postal Service employment Excludes uniformed military, U.S. Postal Service, and hospital employment Includes local and state government educational service employment Excludes university, railroad, and hospital employment Excludes public school and hospital employment Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section ALASKA ECONOMIC TRENDS MAGAZINE OCTOBER 2020 5

Valley economy strong

While the state struggles to catch up to pre-pandemic levels of economic activity, the Mat-Su Valley is setting the pace for growth.

Just as elsewhere around the state, the Valley business community is challenged by open positions and lack of workers to fill them. But the total number of jobs, across all sectors, is at record highs, according to state Department of Labor and Workforce Development statistics.

Neal Fried, a state DOL&WD economist, said the local economy was barely affected by Covid.

“I think the state generally does not benefit from remote work,” Fried said. “But the Valley is one of the few places in the state that did benefit.”

Newly elected state legislator Jesse Sumner, whose fourplus years on the Mat-Su Borough Assembly overlapped the pandemic, agreed.

“I’m proud of how the borough handled the whole Covid pandemic. We managed pretty well with very little restriction on people,” he told fellow state representative Andrew Gray, during Gray’s weekly podcast, East Anchorage Matters, on Feb. 7.

During the wide-ranging discussion on issues facing the state, Sumner pointed out that pandemic sales tax receipts in Wasilla reached record heights, likely because of Anchorage residents driving there to shop and dine without restrictions.

“It is important to keep an economy functioning,” he said. “The one thing that is absolutely essential for human beings to live, in anywhere near the standard that we have, is that we have a functioning economy.”

and land in the city.

“We’ve got a lot of land,” Sumner said. “And we don’t have zoning or a building department, so there’s no regulatory restrictions that can slow things down and increase costs.”

The rate of new home construction in the Mat-Su highlights this, state economist Fried said. In a community where just 15 percent of the state population lives, 40 percent of all new homes being built in the state are in the Valley.

moving to the Valley, most likely in search of options for housing they were unable to find or afford in Anchorage.

That’s a microcosm of the “concerning” decline of working-age population Anchorage has experienced, said Bill Popp, AEDC’s executive director. Latest data shows a loss of 14,700 18- to 64-year-olds to retirement or relocation, both in and out of state.

“I’m not sure the Valley was ever in a pandemic economy,” he said. “The numbers are consistent (from year to year). You don’t really see any dip.”

Fried said the Valley’s lofty economic numbers were likely assisted by the large percentage of its workforce that normally commutes to Anchorage, but was forced to work from home – and spend more money locally – during the pandemic because of more restrictive Covid protocols in Alaska’s largest city.

Sumner, who was born and raised in the Mat-Su, represents a Wasilla-area district in the Alaska House of Representatives. He stressed the importance of kids going to school, and of people being able to go to work and go shopping.

“The world could not carry 7 to 8 billion people without free trade and a functioning economy,” he said.

A homebuilder and second-generation co-owner of Sumner Family Homes, he also noted the attraction of Mat-Su property to Anchorage residents, who typically pay more money for less house

Fried also emphasized the significance of more affordable property just an hour north of Anchorage. Against the current of 10 years of moderate statewide population decline, the Mat-Su population has continued to grow, including by 4.4 percent between 202022.

“The Valley is one of the few places that attracts more Alaskans than elsewhere,” Fried said. “Competitive real estate prices help drive that.”

Much of that growth is from people who choose to relocate from Anchorage. According to Anchorage Economic Development Corporation statistics, Anchorage’s net migration to the Mat-Su Borough increased significantly in 2022, with just over 1,400 Anchorage citizens of all ages

“We are losing working-age adults at a rate that is oneand-a-half times faster than the losses from total population,” he said. “This loss of working age population is the most significant cause of our growing labor shortages and is the most significant challenge our economy is facing today.”

FIND OUT MORE

Full discussion with Wasillaarea Rep. Jesse Sumner (podcast)

https://tinyurl.com/2vfju2md

Alaska economy statistics

https://live.laborstats.alaska. gov/index.php

Anchorage Economic Development Corp. report https://aedcweb.com/report/2023-economic-forecast/

8 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023
Mat-Su’s Population Keeps Growing 88,995 91,620 93,496 95,697 97,930 99,715 102,317 103,988 104,971 105,980 107,081 109,086111,752 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
“THE ONE THING THAT IS ABSOLUTELY ESSENTIAL FOR HUMAN BEINGS TO LIVE, IN ANYWHERE NEAR THE STANDARD THAT WE HAVE, IS THAT WE HAVE A FUNCTIONING ECONOMY.”

Local, state, U.S. unemployment rates near all-time lows

The Mat-Su has been a bit of an economic outlier throughout the pandemic – in good ways. The region remains one of the few places in the state that has more jobs than before Covid, according to state Department of Labor and Workforce Development statistics.

There was a slight loss of Valley jobs in 2020, in the early days of the pandemic. But most were in the hard-hit retail, and leisure and hospitality sectors, where huge dips in summer tourism traffic had the biggest impact. And that turned right back in 2021.

“It was hardly a hiccup,” said Neal Fried, a state DOL&WD economist. “There are more employed in those industries now than ever before.”

Mirroring the national rate, Alaska’s overall percent of unemployed also shows a downward trend. The state’s unemployment rate dropped slightly, to 4.3 percent, to end 2022.

But the Anchorage area, which includes the Mat-Su valleys, came in lower, matching the national rate of 3.5 percent for December, the last month with available statewide data. The Interior dropped to 4.1, but Southeast Alaska rose to 4.3 percent in December.

December’s job count was up by 2.1 percent, with 6,400 more Alaskans employed than a year earlier.

But it’s not all roses. Despite leading the state in economic growth, and what Fried characterizes as “probably the lowest unemployment rate in its history,” the Valley faces an obstacle to greater growth – lack of workers to fill open positions.

has, perhaps, a greater negative impact on a remote state already challenged by logistical and demographic issues.

Bill Popp, executive director of the Anchorage Economic Development Corporation, calls it the “most concerning” issue facing the region and the state.

“There are thousands of jobs currently open in all industry sectors of the regional Anchorage and Mat-Su economy,” he said. “The shrinking available labor force will be the primary barrier to higher levels of job growth.”

NUMBERS

It’s a nationwide trend that

Still, AEDC is forecasting continued job growth and low unemployment for 2023.

Nationwide, the jobless rate has fallen to a low not seen in more than five decades, according to federal Bureau of Labor reports. The January 2023 tally showed the unemployment rate had dipped to 3.4 percent, the lowest since May 1969.

During the first month of the year, the number of unemployed people declined by 28,000 to 5.69 million. The number of employed people increased by 894,000 to 160.1 million.

Job growth was widespread across most economic sectors, with the health care, professional and business services, and leisure and hospitality sectors leading the way.

Among the major worker groups, federal statistics show the unemployment rates for adult men (3.2 percent), adult women (3.1 percent), teenagers (10.3 percent), whites (3.1

percent), blacks (5.4 percent), Asians (2.8 percent), and Hispanics (4.5 percent), showed little change in January.

The number of persons jobless less than five weeks decreased to 1.9 million in January. The number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged at 1.1 million.

The overall U.S. unemployment rate has shown little net movement since early 2022. Same goes for the labor force participation rate of 62.4 percent.

FIND

OUT MORE

Alaska economy statistics

https://live.laborstats.alaska. gov/index.php

Anchorage Economic Development Corp. report https://aedcweb.com/report/2023-economic-forecast/

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 9
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“MIRRORING THE NATIONAL RATE, ALASKA’S OVERALL PERCENT OF UNEMPLOYED ALSO SHOWS A DOWNWARD TREND. THE STATE’S UNEMPLOYMENT RATE DROPPED SLIGHTLY, TO 4.3 PERCENT, TO END 2022.”

The2022/23 school year got off to a bumpy start with rolling bus cancellations from an understaffed school bus contractor, forcing many families to keep students home when buses were unavailable for their routes. Others became frustrated with late starts on Mondays due to a new program called ‘PLC Mondays,’ Perhaps no one felt the heat more than Matanuska Susitna Borough School District (MSBSD) Superintendent Dr. Randy Trani.

Though born in the lower 48, Dr. Trani was raised in Cordova, and his experiences with poverty and childhood homelessness shaped his mind to embrace the power of education, and how an education has the power to change a life motivated him to enter the field of K-12 education.

In 2020, he was unanimously tapped to become the MSBSD Superintendent, bringing him home to a rapidly growing Mat-Su Borough. MSBSD spans an area comparable to West Virginia, with 47 elementary, middle, and high schools serving approximately 19,000 students.

“Because of the size of Mat-Su, I have this chance to impact more students than I would in well, every other district but one and it’s my chance to give back to this state that really launched my whole career,”

to the job.

He owes a lot of his own educational opportunities to the ones he received growing up in Alaska.

“It was the state of Alaska that gave me the teacher scholarship loan that got me into college, that paid for my college, and now this is a chance for me to give back to the kids in Alaska and this is how I can impact the most students.”

In addition to the rolling bus schedules, MSBSD is also facing an ongoing school bus driver strike between the Teamsters Local 959 and Durham School Services, who was awarded the contract at the end of the last school year. The drivers walked off the job at the end of January and have yet to come to an agreement to end the strike.

This school year, the Superintendent was excited about the new changes that were planned, many which seemed outrageous to a lot of parents,

among them PLC Mondays, 4Cs, and remote learning in lieu of cancelling school.

Remote learning had been a pivotal piece during the COVID-19 pandemic, leading to the district being able to issue out laptops to middle and high school students to utilize for remote learning, as well as homework and other school-related activities.

Remote learning was used during the record snow fall that blanketed much of the Borough in December, rather than outright cancelling classes, which could have led to students falling behind.

A number of parents have not been receptive to utilizing the remote learning, though the MSBSD has received praise from other districts, who have also expressed interest in learning how it has been implemented in the district.

“It’s not perfect, but given the outcomes in other districts that we’ve seen, it has been working.”

There are a number of bright spots looming on the horizon, including the opening of the new Houston High School in March. It will occupy the site of the previous Houston Middle School, which was irreparably damaged during the 7.0 earthquake in 2017, leaving the schools to merge into the Houston Jr/Sr High School. The middle school will now be in the old high school site.

This year also marked the opening of the Knik Charter School. Not to be confused with Knik Elementary, the new school is a pre-K through 12th grade cultural school, open to students all across the Borough, a project that is coming to fruition after many years of hard work to see the school come to life.

There are also in the works, plans to either rebuild or update several charter schools, starting with discussion about funding for a new Mat-Su Central school.

“I have a great feeling about everything. We have design,

10 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023
Dr. Trani said in a 2020 interview upon his appointment
‘I like where we are, but there’s still room to improve’ Dr. Randy Trani reports on the state of the school district
“IT’S NOT PERFECT, BUT GIVEN THE OUTCOMES IN OTHER DISTRICTS THAT WE’VE SEEN, IT HAS BEEN WORKING.”

we have about 60% funded, so the potential is there.”

Dr. Trani says that improvements and building for other charter schools-Academy, American, and Birchtree-are in progress, with the hope of a purse state match for the funding.

“We had a great meeting with Valley legislators, and ideas were well-received, but really anything could happen in Juneau.”

Dr. Trani has been most pleased with the improved

graduation rate for students, which was at 86% last year, and if it maintains its current trajectory, will boast a 90% graduation rate this year.

One thing that Dr. Trani credits for the improved graduation rates is the boost in Career and Technical Education (CTE) courses offered throughout the district.

“It is known that there is increase in graduation rates when students take CTE courses,” Dr. Trani states, a statistic backed up by data

from the Department of Education.

According to the DoE, high school students who were CTE concentrators graduated from high school at higher rates than their non-concentrator peers, with an 8% increase in graduation rates.

“It’s fantastic we have moved ahead of the other big four (districts) and the state average for graduation,” Dr. Trani says, “but there’s more to be done to reach those who aren’t graduating.”

As to the state of schools within the MSBSD, Dr. Trani is happy.

“I’m very happy. There’s been a big shift in education and we are offering the most career and technical courses we’ve ever had.

As for how the superintendent is feeling about the school year so far, he says:

“Regarding education, things are great. I like where we are, even though there’s always room to improve.

AtColony Middle School (CMS) in Palmer, students are attending the requisite classes-math, reading, social studies-and extracurricular activities-band, yearbook, athletics.

“The Cs stand for Credit, College, Career, and Community,” explains MSBSD Superintendent Dr. Randy Trani.

4Cs at CMS is a class that meets Tuesday through Friday to help ensure that all students are high school ready by the time they complete middle school.

Among the goals is increasing readiness in mathematics by having 8th graders ready to take on Algebra 1 by the end of the school year, as well as be prepared to be successful high school-level writers.

“We posted our highest graduation rate last year with 86%. But think about what that also means-that 14% of our students are not making that mark. That’s not good enough. We need to improve,” says Dr. Trani. For context, Alaska state average rate of graduation is 78 percent.

But students are getting an extra class known as the 4Cs.

“The 4Cs is an absolute aim at making sure students are prepared for high school, earn enough credits to graduate on time. There are the other 3 ‘Cs’ that are there, but the credit, improving the graduation rate, is the most important.”

But it’s not just algebra and writing that students work on during 4Cs. The program also strives to make sure that there is a consistent adult mentor for every student for all three years of middle school, that there are weekly goals set and grade checks. But most importantly that a variety of outcomes geared toward students being equipped to be successful students.

4Cs mentor that will coordinate with teachers, counselors, and families to foster the success and growth of each student.

Students spend structured

time each week working on reading, writing, and mathematical skills, while gaps in learning outcomes are identified and addressed. Students are supported in accelerating beyond their grade levels.

Dr. Trani is aware that there is still work to be done, but is excited that for the 2022/23 school year, MSBSD is on track to have a 90% graduation rate.

“We can see the 4Cs working in real time. It is working. We are seeing the dramatic results and it’s remarkable. But there’s more to do, and that takes time.”

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 11
‘We can see it working in real time’ Reading, Writing, Arithmetic, and the 4Cs
“THE 4CS IS AN ABSOLUTE AIM AT MAKING SURE STUDENTS ARE PREPARED FOR HIGH SCHOOL, EARN ENOUGH CREDITS TO GRADUATE ON TIME. THERE ARE THE OTHER 3 ‘CS’ THAT ARE THERE, BUT THE CREDIT, IMPROVING THE GRADUATION RATE, IS THE MOST IMPORTANT.”

PLC Mondays

Teachinghas become more complex over the past 30 years, with more demands placed on teachers, with demands for increased student performance, larger classrooms, and more demand for accountability. This requires educators to continually gain and reinforce the knowledge and skills in their teaching toolbox.

“We are a good district, a great district, in the state, but we are lower as a state in performing in reading and math,” said MSBSD Superintendent Dr. Randy Trani, as he acknowledges that many parents and community members want to see student knowledge and performance increase.

To address this need in the Borough, Dr. Trani introduced a new policy at the beginning of the 2022/23 school year known as “PLC Mondays.”

The idea of a PLC-Professional Learning Communities-is a collaborative group of educators who share ideas to enhance their teaching practice and create a learning environment where all students can reach their fullest potential. Most PLCs operate within a school building or across a district and can be organized by grade level, content area or an entire teaching staff.

Nationwide, PLCs are increasingly recognized as the most powerful strategy for sustained, substantive school improvement processes.

Typically, the district plans several Teacher Professional Days throughout the school year which requires schools close for the day. With PLC Mondays, the plan allows in-

structional staff the time to examine student work, develop common assessment and collaborate on instructional strategies as a way to improve academic achievement and prepare students to be more ready to enter into a career, vocational training, or college.

PLCs are not new; many schools and school districts in the lower 48 have implemented such programs as a means to share best practices, brainstorm, and enhance teacher reflection as to what is and is not working in the classroom.

“We want to change the trajectory of our students, and that means changing the old schedule. If we want to change, then we need to change how we really teach someone,” says Dr. Trani. He believes that regularly schedule meetings that the PLC model offers will be better for teachers and students, rather than having 1 professional development day every quarter and trying to revisit that information later down the road.

“The idea is that this will become routine versus having random Professional Days and having to take the day off,” says Dr. Trani. He is hopeful that PLC Mondays will strengthen the team of teachers and directly impact teach-

ing and learning.

PLC Mondays are implemented during Monday mornings, with Middle Schools and High Schools starting at 8:45 am and releasing at 2:15 pm. Elementary Schools start at 10:15 am and release at 3:45 pm.

“With the High Schools and Middle Schools, there won’t be a loss in teaching time, and in fact there will be an increase in teaching time for the most vulnerable,” Dr. Trani explains, and acknowledges a 45 minute change for the elementary students.

This has been a contentious issue for some parents who argue that it interferes with student learning, drop-offs, and work schedules.

When asked why a late start versus an early release day, it was determined the late start days would have fewer scheduling conflicts with extracurricular, co-curricular and athletic activities. Since so many of students are involved in after-school activities such as sports, music, or clubs, and since many teachers are either the coach or sponsors of these activities, many of the teachers would not be available for the PLC meetings.

“We reached out to daycares and community groups,

and let them know about the change so they can plan and be accommodating the time change, and they have been supportive of the change,” says Jillian Morrissey, Chief Communications Officer for MSBSD.

The District has also arranged for early drop off for parents who need to use it, but Dr. Trani says that there haven’t been many signed up for it.

Meanwhile, he has seen the benefit of PLC Mondays as staff have dedicated time to meet uninterrupted regularly, shares expertise, and works collaboratively to improve teaching skills and the academic performance of students.

“The change was partly driven by parents and the community who wanted a bigger return on their investments,” said Dr. Trani about the catalyst for implementing PLC Mondays. “MSBSD is a good place for students to learn, one of the best in the state but, we are striving to make it even better! We want to make our district one of the standout districts in the nation.”

For more information about PLC Mondays, visit matsuk12. us/plcmondays

12 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023

Growing with the Valley

Matanuska-Susitna College delivering student success for 65 years

Fromits humble beginnings in 1958, where a handful of locals took night classes to expand their education, Matanuska-Susitna College has developed into a vital branch campus of the statewide University of Alaska system. Today, about 1,000 students attend classes each semester.

As UA students, they are able to get a good start on basic classes, pursue an occupational endorsement in fields like veterinary science and refrigeration and heating, or go on to the main campuses in Juneau, Fairbanks, or Anchorage for even more options.

“There are great opportunities on this campus and in the University of Alaska system,” said Talis Colberg, MSC director. “Compared to other places,

we are affordable and we have a lot of financial aid support.”

The evolution from community resource to part of a statewide education system mirrors statehood and organizational efforts that followed. In 1963, when the borough government was formed, the name of the college was changed to correspond to the boundaries of the fledgling Matanuska-Susitna Borough.

MSC became part of the University of Alaska system in 1987. Similar to Kenai Peninsula College and Kodiak College, it is an “extended college” of the University of Alaska Anchorage.

Today, the main campus is located on a 950-acre site on Trunk Road. It is a modern

102,676-square-foot facility, consisting of six main buildings.

With about one-seventh of the state’s total population living within 15 miles of the college, Colberg noted the benefit to the community of MSC being in the middle of Alaska’s only consistently expanding population base.

“We are a quality two-year school that is connected to three major residential campuses that include worldclass research institutions,” he said. “We are a great place to start a college experience.”

UAA Chancellor Sean Parnell agreed.

“The Mat-Su Valley is one of the fastest growing regions of the state, so opportunities

for education and workforce development are important in supporting that growth,” he said. “Mat-Su College serves as a vital pathway for Mat-Su residents to gain new skills, prepare for new careers, and pursue an education right in their own community.”

Parnell noted the importance to students of being able to take classes at MSC or online through any other UA campus. It’s part of what makes community campuses integral to the university’s mission, he said.

“This flexibility creates opportunities for students who may be place-bound or simply wish to stay and contribute to their community while completing a degree or certificate,” Parnell said. “Providing accessi-

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 13

ble education in all of the communities we serve will always be a priority for UAA.”

How that is done is a work in progress, especially since Covid. In March 2020, after shutting down completely in the early days of the pandemic, the university did a rapid transition to remote learning.

“People are thinking about education differently,” Parnell said. “Students want more choices in the way they approach education.”

He said the higher education industry, like other industries, has changed and adapted over the last few years. This includes offering more online and hybrid courses and programs.

“We strive to be adaptable and responsive to the needs of our students,” Parnell said.

If numbers are a gauge, students appear to be supportive of the changes. New, firstyear enrollments are up significantly across UAA’s campuses, Parnell said.

“Students are still choosing to pursue higher education,” he said. “And we are thankful so many of them are choosing UAA.”

But whether students prefer in-person learning, or online learning, remains an open question. Colberg said the mass transition of all classes to distance learning during the pandemic was probably the most complex and enduring educational change in his 13 years as director.

“Matanuska-Susitna College, before Covid, was traditionally largely a face-to-face experience,” he said. “In the fall of 2022, we worked hard to return to that model. We obviously want students to come back.”

Covid has not been the only recent challenge. In the wake of state budget cuts and loss

of programs across the university system, Alaska high school students are increasingly looking Outside for their postsecondary education.

Less money means fewer staff. At MSC, Colberg said that translated to 15 percent fewer employees.

“The result was reduced educational opportunity options for students,” he said.

But Colberg remains optimistic. Campus life has revived with the resumption of student government and clubs. The cafeteria has reopened, and the college paper is operating.

“I think 2023 will be the beginning of a return to great things for our students and employees. Local high school students have a great option here,” he said. “The last few years were rough on everyone. But in the context of where we were when we started in 1958, in a rented space in downtown Palmer, and where we are today, we have come a long way to making this a better place to live and learn.”

Colberg has devoted a sub-

stantial part of his life to that endeavor. After growing up in Palmer and attending Palmer High School, he took his first college class on the MSC campus in 1975.

“That class was my introduction to the wide array of life’s opportunities,” he said.

Those opportunities subsequently led him to law school. After years of local practice, Colberg was elected to the Mat-Su Borough Assembly and later served as the state’s attorney general. When he returned from Juneau in 2009, he was elected borough mayor, before being named MSC director in 2010.

But Colberg’s staff affiliation with the college predates his directorship by 17 years. He began teaching history there as an adjunct professor in 1992.

“That evening of talking about a topic I loved was, perhaps, one of the best things that ever happened to me,” he said.

“I taught 72 history and law classes at this college. Teaching those classes was the best

job I have ever had.”

Colberg’s tenure will come to an end in October, when he retires. Despite some high-profile successes as director, such as overseeing the construction of the Glenn Massay Theater, Colberg says his fondest memories are from the classroom and students who went on to be attorneys, physicians, graduate students, and community leaders after taking their first college classes at MSC.

“I am happy to have those connections, and I think they continue to be made in classes and offices on this campus every day,” he said. “Opportunities do start here, and some great Alaskans have started wonderful careers at the Matanuska-Susitna College.”

14 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023
FIND OUT MORE
College
University of Alaska Anchorage
University of Alaska
Matanuska-Susitna
https://matsu.alaska.edu/
https://www.uaa.alaska.edu/
https://www.uaf.edu/uaf/

MSC director retiring in October

After13-plus years at the helm of Matanuska-Susitna College, and several decades of high-profile public service, Talis Colberg is calling it a career. The 64-yearold announced his retirement recently, although he’s sticking around until October to assist with the transition to a new academic year.

Appointed by University of Alaska Anchorage Chancellor Fran Ulmer in 2010, Colberg is the 10th director of the college, which originated in downtown Palmer the same year he was born. Mat-Su College has grown with the community since then, and so has Colberg’s affiliation with the place. (See related story, this page.)

He took his first college class at MSC in 1976, and became an adjunct instructor of history in 1992.

“In the three decades I have been associated with this college, I think my fondest memories are from teaching my classes here,” he said. “And not just teaching, but connecting with the students who really engaged in the learning process.”

Colberg has been witness to a lot of changes, including the transition of the student body from a predominantly middle-aged group of people in the early 1990s, to a student body increasingly dominated by recent high school graduates 10 years later.

“When I first started, the majority of the students in my classes were working in the daytime and taking a class of general interest in the evening,” Colberg said.

He credited the UA Scholars program with ushering in the demographic change in the MSC student body. Originally

established in 1999 under former University of Alaska president Mark Hamilton, the UA Scholars Award is a $12,000 scholarship earned by Alaska high school students who are in the top 10 percent of their class at the end of their junior year. It was meant to provide an incentive for Alaska’s middle and high school students to achieve academic excellence and to encourage them to enroll at a University of Alaska campus.

The impact was swift and noticeable.

“It was a great move by the university,” Colberg said. “Even the outer campuse,s like the Matanuska-Susitna College, benefited from a surge in Alaskan high school students choosing to stay in state for college.”

student government became more active and the relationships between students, staff and faculty developed. There is a lot of truth to the adage that college is not just what you learn, but who you meet.”

Since stepping into the director’s office and assuming the day-to-day duties of operations at the administrative level, he said his perception of MSC has broadened.

“As an adjunct, I had never really realized the magnitude of connections between our college and the UAA campus and the UA statewide office,” Colberg said. “In the last 13 years as a full-time staff member, I had the opportunity to see the more complex and nuanced side of this institution.”

That included overseeing the construction and opening of the 500-seat Glenn Massay Theater, a fully equipped, state-of-the-art entertainment and education facility. He said the theater, with its ability to attract large numbers of people to the campus, fulfills a basic mission goal of the university system by providing a role as a “town square”.

population, that is not totally shocking. But on the other hand, people do come and figure it out.”

Despite a wave of budget cuts in recent years and the effects of Covid and pandemic closures, the college has weathered the challenges.

“This campus has a stable budget. We are small and efficient. We are known in the system for maintaining our buildings in good order,” he said. “We benefit from having a large and dedicated adjunct faculty to support our fulltime faculty, which allows us to be flexible in the options we can offer to our students.”

UAA Chancellor Sean Parnell said Colberg will be missed.

At MSC, that meant students were more likely to be fulltime, which had a positive impact on the campus environment.

“When someone takes just one class, they tend to come and go without having a reason to explore other activities or the campus itself. A fulltime student tends to hang around campus between classes, which leads to a more complete college experience,” Colberg said. “Clubs formed,

“The theater transformed our profile in this community in huge, but hard to measure impacts,” Colberg said. “A major production with multiple performances can attract as many as 10,000 people to this place. That means in some months 10 percent of our Valley population may have been here, which is, of course, a huge advertisement for the college itself.”

He said he tries to attend at least one performance of everything at the theater.

“I still am somewhat surprised to hear comments like, ‘I didn’t know there was a college here’,” Colberg said. “Given the transient nature of our

“Talis has dedicated years of service to Mat-Su College, the Mat-Su community, and the state of Alaska,” Parnell said. “He is a kind, intelligent leader with a passion for teaching and learning. UAA is better for his service at Mat-Su College.”

Colberg said he has no immediate plans for retirement.

“For the first time in my life, I don’t know what I’ll be doing,” he said.

But traveling will surely be on the agenda. Last year, for the first time in 20 years, he said, he took more than a one-week vacation and liked it. With three grandchildren in Washington state, he’s looking forward to “visiting without time limits”.

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 15
“IN THE THREE DECADES I HAVE BEEN ASSOCIATED WITH THIS COLLEGE, I THINK MY FONDEST MEMORIES ARE FROM TEACHING MY CLASSES HERE...”

Q&A with Mat-Su Regional Medical Center CEO David Wailace

What’s new at Mat-Su Regional Medical Center?

We have recently expanded our surgical services by adding four new general surgeons providing laparoscopy, endoscopy, and robot-assisted surgeries for a wide range of abdominal, breast, thoracic, thyroid, gastrointestinal and colorectal surgeries.

Many surgeries are minimally invasive or robot-assisted, which mean smaller incisions and faster recovery. We now have two surgical robots to increase local access to this advanced technology.

Over recent years, we have also expanded the number and breadth of available orthopedic surgery options for the patients we serve. Orthopedic surgeons on our medical staff offer general, spine, reconstructive, shoulder, hand, sports medicine, trau-

ma and upper extremity orthopedic care.

Additionally, there are several new providers including those practicing in behavioral health, cardiology, ear, nose and throat, family medicine, internal medicine, and pediatrics.

What’s coming soon to MSRMC?

We are pleased to be bringing the Mat-Su Valley’s first full-time Gastroenterology Service in March. These GI specialists will work with other specialists on our medical staff, such as general surgeons, emergency medicine, and hospitalists to deliver multidisciplinary care.

They will be particularly helpful for those suffering from Crohn’s disease and ulcerative colitis, and inflammatory bowel disease. We will offer

a wide range of GI diagnostic and treatment services to provide patients with quality care without having to leave the Mat-Su Valley.

How did delivery of services evolve during the pandemic?

We have continued to celebrate the tremendous teamwork and dedication of our amazing team of providers, and other clinical and support staff. We have noticed a significant growth in the number of patients coming to us from all across Alaska. Many of these have been connected to our Behavioral Health Unit, which opened in early 2020. But we are finding that our ICU and specialty services are becoming a well-known resource throughout Alaska as well.

What are the general goals that drive hospital operations?

Exceptional Cancer Care Close To Home

Our ambition is to continue to help people get well and live healthier by providing safe quality healthcare, building enduring relationships with our patients, and providing value for the people and communities we serve. We are constantly working to adjust to the changing and growing needs of the Mat-Su Valley.

Valley Radiation Therapy Center has been providing Alaskans with compassionate care and state-of-the-ar t cancer treatment since 1993, including the only Gamma Knife technology in Alaska.

16 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023
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Schedule your consultation today Call 907.745.290 0 Or online: alaskaradiationtherapy.com Conveniently located in the Medical Plaza Building next to Mat-Su Regional Medical Center 2490 S. Woodwor th Loop, Suite 150, Palmer
John S. Yordy, MD, PhD Board Cer tified by American Board of Radiology

Residential real estate market remains healthy Sales have cooled a bit, but inventory remains tight

Despite a slight downturn from the lofty heights of the last two years, housing remains a hot commodity in the Mat-Su.

Fewer units are moving, and they don’t move quite as quickly on average, but demand is still high and the average selling price is up from last year.

Marty Van Diest, owner of Valley Market Real Estate in Palmer, has been a real estate professional for decades. He says any time more than 20 percent of available inventory

sells in a month, it is a sellers market. The current turnover is at 33 percent.

“We are still in a sellers market. We are just not in the crazy, nuts, ridiculous sellers market of last year,” he said.

“Last year we were selling 83 percent of the monthly inventory. But demand is still stronger than supply.”

The average selling price of a home is up, too. Van Diest pointed to the current $383,000 average price tag, compared with $361,000 a year ago.

“That is 6 percent appreciation over the last 12 months, which is still better than our historical average,” he said.

Karen Ross, of Jack White Real Estate Mat-Su in Wasilla, said the data speaks for itself. In 2022, 2,754 single-family residences were sold in the borough. That’s up from the 2,385 units sold in 2021.

“Volume is a significant economic marker,” she said. “The facts say that in spite of soaring interest rates, the market has continued to flourish. Properties that are appropriately priced for the market

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 17
Sarah Lazzarotto, executive director of Mat-Su Home Builders Association
anchorage: 907.561.1011 | palmer: 907.707.1081 est’d 1979 | pndengineers.com
New homes under construction in the The Ranch subdivision last summer. With its convenient access to the Glenn Highway near the Parks interchange, locations like this are in high demand with commuters. Palmer MAC Federal Credit Union

A Pretty Competitive Housing Market

2022-3rd qrt, Average price of single-family home, MLS

$374,673 $417,913

are still moving very quickly, and still often under multiple offers.”

The average number of days a home remains listed before selling is up slightly, moving from 28 days in 2021 to 33 in 2022. But that’s still much better than the 62 and 53 days in 2019 and 2020.

Some of the slowdown in selling time is the market adjusting to changing conditions. Ross said that some sellers, expecting the markups of the last two years, have overpriced their properties, sometimes significantly. So offers often don’t come until the sellers lower the price.

Nonetheless, those rising interest rates have taken a toll. Most notably, some potential buyers get driven out of the

$368,817

$326,610

$519,509

market. Others qualify for smaller mortgages as rates rise, which decreases purchasing power. That puts additional demand pressure on lower-priced homes, which has been a low-inventory, high-demand niche for years.

“With interest rates still around double what they were in recent history, we are seeing more buyers at the lower price points,” Ross said.

But higher rates can also benefit qualified buyers. Mat-Su Home Builders Association executive director Sarah Lazzarotto noted that with higher mortgage rates resulting in fewer qualified buyers, there is less competition for the current housing inventory.

“This means that buyers can get homes for less than listed

prices in many instances,” she said. “Two years ago, we saw the opposite.”

With workforce development as a growing priority throughout the Valley, Lazzarotto said, the industry anticipates about 3 percent growth through 2030.

“That means we will recover from all the jobs lost during Covid and gain 200-plus more,” she said.

The logistical and supply challenges that were a drag on the economy are subsiding, too, so people who were reluctant to build in 2021 and 2022 should find more favorable conditions.

“If you’re looking to build or buy, don’t put your plans on hold,” Lazzarotto said. “While

we are seeing continued delays on some materials, it is not as severe as it was during 2021. And lumber prices have started to decrease from the outrageous hikes.”

Van Diest also noted the trend toward a cooling market as a function of rising interest rates, which are currently running in the high 5s to mid 6s.

“Last year, many people were finding 30-year fixed mortgages below 3 percent,” he said. “I don’t think we will see that again any time soon.”

Much of the relative resilience of the real estate market locally can be attributed to its proximity to Anchorage, where the average home price is around 12 percent higher. And even as population statewide has been

18 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023
Mat-Su Anchorage Kenai Peninsula Fairbanks Juneau

decreasing steadily for several years, Mat-Su continues to grow.

“The Valley is one of the few places that attracts more Alaskans than elsewhere,” said Neil Fried, an economist with the state Department of Labor and Workforce Development. He said lower-priced real estate has a lot to do with Mat-Su boasting a whopping 40 percent of all new home construction statewide.

In addition to more affordable homes, the Valley also offers larger lots with more space and privacy than can typically be found in Anchorage, Van Diest said.

“Some places with stricter covenants are harder to sell,” he said. “We are finding that

people want to have places with some freedom. The ability to have small farm animals and maybe a vegetable garden is attractive. Especially these days, people want to have chickens.”

He said the Fishhook area, with its easy access to outdoor recreation at Government Peak and Hatcher Pass, has been the fastest growing local region for the last two years.

“Fourteen percent of the total growth in the Mat-Su Valley has been in that area,” Van Diest said. “I think that area will continue to see growth.”

Maxwell Sumner, a board member of MSHBA and co-owner of Sumner Company Homes, agreed that the Hatcher Pass area, including Palmer-Fishhook and north Wasilla Fishhook, is popular. He also said affordable housing in general – anything less than $350,000 – is in high demand.

Ross said locations that offer quicker commutes to Anchorage are favored by buyers, too.

“Properties along the commute path have always reflected higher value,” she said.

Growth continues in commercial real estate market

Mirroring trends in residential real estate, the local commercial real estate market is emerging from the challenges of Covid with a mix of good and bad news.

Weighing on full-blown progress, northbound interest rates have cooled sales. But since the Mat-Su is one of the few regions of the state not experiencing a population decline, demand for services and the commercial real estate to provide them continues.

“Of course, interest rates have negatively affected sales,” said Jeff Goyette, commercial broker associate with Elite Real Estate Group in Palmer. “This, however, is offset somewhat by the continued growth in the Valley.”

According to state Department of Labor and Workforce Development statistics, the Valley population has continued to expand, despite a 10-year statewide pop-

ulation decline. Between 2020 and 2022, that growth registered at 4.4 percent. In addition to more people driving demand, Mat-Su also offers developers less expensive property and fewer regulatory hoops to slow construction down and drive prices up.

Goyette, whose commercial real estate knowledge is complemented by experience in land development, noted the availability of “affordable vacant lots” along the highly desirable Palmer-Wasilla Highway. Three new owner-occupied, multi-tenant office buildings already are nearing completion on the stretch of that roadway between Seward Meridian Parkway and North 49th State Street.

At the Wasilla end of the Palmer-Wasilla Highway, Goyette said the section from Knik-Goose Bay Road to the Parks Highway will continue to be a high-growth area for commercial construction.

One of the side effects of the pandemic and the early shutdowns was tenants vacating their leased property. So businesses looking to lease space for operations are finding the market more to their liking.

Charlene Moss, owner/broker at Charlene Moss Realty in Wasilla, said the rise in vacancies drove lease prices down as property owners vied to attract new businesses to their buildings. But there are signs that may be changing.

“Commercial lease rates are down,” Moss said. “How-

ever, commercial markets and lease rates are beginning to stabilize as more and more employees are returning to the office.” Like Goyette, she noted the proliferation of owner-user office parks on the commercial market, in demand by professionals like doctors and accountants who build for their own use, and lease out the adjacent spaces to others.

Citing relative ease of construction because of less regulation, Moss said any location close to Wasilla, but outside city limits, is most in demand.

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 19

Mat-Su prepares for another road construction season

Sureas daylight returns to Alaska this time of year, so, too, do traffic cones, detours and travel delays, as another road construction season nears.

Also as is typical, the new year will be a busy one for state road crews. The Alaska Department of Transportation and Public Facilities has added a few new projects to its list of ongoing projects, such as the KGB upgrade, that are designed to address a variety of concerns arising over the years as the Mat-Su’s population and traffic congestion have increased.

Justin Shelby, a DOT operations manager in the central region, which includes the Valley, noted the importance of annual road projects.

“Alaska’s transportation system is a public asset that should be managed wisely as a system for the mobility of goods and people,” he said. “The Mat-Su is the fastest-growing area of the state and Mat-Su roads and highways are an integral component of Alaska’s transportation system.”

One necessary downside of upgrading vital transportation infrastructure is travel delay. Bridge replacement projects at Montana, Sheep, and Goose creeks may occasionally slow summer traffic. Same goes

for a reconstruction project slated for a 3.5-mile stretch of pavement between mileposts 48 and 53.

The Glenn Highway is also likely to see delays in heavier summer traffic, with work at the Kings River bridge and farther south, between the Parks interchange and the fairgrounds.

Specific projects that will be visible this summer include:

Knik-Goose Bay Road between Centaur Avenue and Settlers Bay Drive

A huge project that has been a top roads priority for Gov. Mike Dunleavy continues to top the list of projects on tap for the Alaska Department of Transportation and Public Facilities this year.

Split into two phases, the construction portion of Phase 1 (Centaur to Fairview Loop) began in earnest last summer. Phase 2 is focused on the section of KGB between Fairview Loop and Settlers Bay Drive. The design and right-of-way acquisition portions of Phase 2 are anticipated to be complete in spring 2025, with actual construction to follow.

A housing boom and subsequent population expansion in the area in recent years have contributed to congestion, poor performance, and high collision rates on KGB.

DOT says the road project will expand the corridor to a fourlane divided roadway with a separated multi-use pathway on the north side that will allow KGB to function more efficiently with fewer delays, more capacity, fewer crashes, and increased safety.

More than a decade in the making, this huge roads project entailed substantial cooperation and coordination between the state, the city of Wasilla, GCI, MTA, MEA and Enstar

Glenn Highway, Milepost 34-42

Like many other DOT projects, this one is ongoing and is designed to reduce safety risks and accommodate increasing traffic by adding travel and turn lanes, widening shoulders and constructing frontage roads and a separated pathway. The finished project, which will be completed in two phases, will be a four-lane divided highway from the Parks Highway to West Arctic Avenue.

Phase 1 – South Inner Springer Loop to West Arctic Avenue – is complete. That portion of the project added a new pathway from Bogard to Outer Springer, in addition to upgrading the roadway.

The design portion of Phase 2 is complete, but utility relocation is ongoing. Due to continu-

ing coordination efforts and the availability of funding, DOT says the construction portion of the phase 2 roadway and pathway is expected to begin in xxxx and take two seasons to complete. The scope of this work includes a traffic signal on the Glenn Highway to connect South Colleen Street and East Bradley Lake Avenue on the west side and East Grandview Road on the east side to the Glenn Highway. Also included is the installation of a short side track alongside the existing railbed between Outer Springer Loop and the fairgrounds to accommodate unused rail cars and engines.

Guardrail inventory and upgrade

Construction is expected to begin this year on guardrail replacement and repair on various roads around the borough. That follows the inspection of approximately 1 million linear feet of guardrail and 2,200 end terminals in the vast central region by DOT crews in 2020. Findings indicated roughly half of inspected systems did not conform to state and federal standards and qualified for upgrades.

The following Mat-Su roads are part of the guardrail rehabilitation project, which will be underway this summer: Bogard, Fairview Loop Road, Glenn Highway, from Milepost 30 to 110; Knik-Goose

20 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023

Bay; Palmer-Fishhook; Willow-Fishhook; East Seldon extension; Trunk; Old Glenn Highway; Parks Highway.

Seward Meridian Parkway improvements

Anyone who has traveled the northernmost section of Seward Meridian, which is only connected to Seldon Road, during the start or finish of a school day knows how badly needed this project is. With three schools on the less-than-one-mile span of road and only one way in and out, traffic can be a nightmare at student drop-off and pickup times.

This particular section of the road is slated to be connected to the lower section of Seward Meridian at the intersection of Bogard as part of Phase 2 of a long-running upgrade of the important Mat-Su artery. Phase 2 also includes a widening of the portion of road between the Bogard intersection and the Palmer-Wasilla Highway. The upgraded roadway will accommodate four travel lanes and a center aux-

iliary lane for left turns.

There will also be a shareduse pathway along the west side of the road, and continuous lighting will be installed along both sides. Additionally, new traffic signals are coming at Cottonwood Creek Elementary School, East Meridian Loop, and at the turn to Mat-

Su Career and Technical High School.

The culvert at Cottonwood Creek will be replaced by a single-span bridge, as part of the project, and a parking area will be constructed for access to the creek.

“The plan is to begin construc-

tion later in the summer,” Shelby said. “But some uncertainty remains due to ongoing right-of-way acquisitions, as well as some ongoing permitting coordination for the new Cottonwood Creek bridge.”

The construction is estimated to cost just under $70 million.

Looking ahead at future road projects

Whilestate construction crews have their hands full with another season of active road upgrades, planners and engineers are busy with the preliminary stages of future construction projects. But design work and the vagaries of right-of-way acquisition and negotiations for utility relocations often require an unpredictable amount of time.

Justin Shelby, Alaska Department of Transportation and Public Facilities spokesperson, noted that the uncertainties of these early efforts sometimes make it challenging to forecast end dates.

“We may see some timelines change from what is currently anticipated,” he said. “State

and federal laws are designed to protect the rights and interests of all parties affected by property acquisitions needed for transportation projects. It is often not possible to accurately predict how long such proceedings may take.”

With that in mind, here are a few notable DOT projects in the Mat-Su that should see construction in the next one to three years.

Bogard Road, at Engstrom Road and Green Forest Drive

Highly anticipated intersection improvements at the intersection of Bogard Road, Engstrom Road and Green Forest Drive are moving forward. DOT, in cooperation with the Feder-

al Highway Administration, is proposing to add a single-lane roundabout there.

The way the intersections are closely spaced, combined with the relatively high speeds, and lack of sight distance in the area, contribute to congestion and a higher-than-average number of crashes at the intersection. The goal of this project, according to DOT, is to reduce the number and severity of crashes and also to improve day-to-day traffic conditions by reducing congestion.

In addition to the proposed roundabout, drainage improvements will be made and signage and lighting will be improved. Realignment of Green Forest Drive is also be-

ing considered.

The project is being developed and funded through the Highway Safety Improvement Program, which specifically targets reducing fatalities and severe injuries on Alaska roadways. Construction is not expected to begin until 2024 or 2025.

Fairview Loop Road pathway and safety improvements

This project, another joint effort of state and federal agencies, is meant to improve pedestrian and vehicular safety and reduce maintenance costs on this road that serves one of the fastest growing areas in the Mat-Su Borough. Prior phases of this project resur-

FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023 21

INFRASTRUCTURE ROADS, CONT.

faced Fairview Loop between Canter Place and Candywine Road in 2015, and realigned Fairview Loop at KGB in 2017 to improve safety.

In response to public comments, the project team will also be evaluating whether to include the following work in the final improvements: intersection improvements at Hayfield Road and Lupine Lane; extension of the pathway and rehabilitation of the road from Lookout Drive to Fern Street; and warning signage and roadside barriers from Top of the World Circle to the Alaska Railroad crossing.

DOT says the final schedule for completion of this project is contingent on available funding, right-of-way acquisition progress, and utility relocation progress.

Hermon Road extension: Parks Highway to PalmerWasilla Highway

This Wasilla project would connect the Parks to the Palmer-Wasilla Highway in the busy Wasilla core area by extending the existing Hermon Road through one of the most congested areas of the Mat-Su Borough highway network.

The project would provide for increased network connectivity and help alleviate congestion on and around the Parks Highway, a critical interstate route that operates at capacity in this area. Commercial areas adjacent to the project, such as the Sun Mountain plaza, continue to build out, increasing traffic volumes on Hermon Road and degrading intersection function at the Parks Highway.

The project is still in the design phase, so construction is not close. Interested people can find out more about it at an upcoming DOT open house, Feb. 21, 4 to 6 p.m., at the

Wasilla Public Library.

Vine and Hollywood

DOT and the Federal Highway Administration are undertaking three projects along the busy corridor between KGB and Big Lake that will reconstruct Vine Road from Hollywood to KGB, improve the intersection at Vine and Hollywood, and enhance pavement preservation from on Hollywood from Vine to Big Lake Road.

Vine Road reconstruction will take place along a .6 mile stretch of existing two-lane road to increase capacity, address safety, and upgrade the road to current highway standards. The finished product, which is not expected to begin until 2025, will include wider shoulders, a pedestrian pathway, and better drainage.

The plan to improve the intersection of Hollywood and Vine, which has a crash rate higher than the statewide average for this type of intersection, includes a single-lane roundabout. Improved drainage, pedestrian accommodations, landscaping and illumination are also being considered. This will also be part of the 2025 construction season

Still in the planning stage, the pavement preservation portion of the project will resurface Vine between Hollywood and Big Lake roads. Additional improvements may include better drainage, signage and striping, with the overall purpose of extending the surface life of the road and reducing maintenance costs. Construction is expected to begin in summer 2024.

Wasilla Main Street rehabilitation

Another long-studied, highly anticipated joint project of the state DOT and Federal Highway Administration proposes to improve traffic flow and

general mobility in downtown Wasilla by reconstructing Main Street and nearby roadways.

The initiative, still in the design phase, will enhance pedestrian and cycling infrastructure, while improving general travel efficiency by increasing traffic circulation, decreasing delays, and increasing northsouth corridor connectivity.

According to DOT, the proposed design will construct a one-way couplet to improve traffic flow and safety within Wasilla’s historic town center. Main Street will service southbound traffic. Northbound motorists will use Talkeetna and Yenlo streets, which are slated for improvements and extensions to Bogard.

DOT anticipates the construction phase of this project to run from 2024 to 2026.

Seldon Road extension, Phase 2, to Pittman Road

Although construction is not scheduled to begin until next year, this project will complete the upgraded Seldon Road extension, which connected Palmer to Meadow Lakes and provided an alternate route to the Parks Highway.

Just as with the Phase 1 section of construction, from Church Road to Beverly Lakes Road, the Phase 2 upgrades will extend the separated pathway for the full length of the project. A wider roadbed and resurfacing from Beverly Lakes Road to Pittman Road will also enable the speed limit to be raised to 50 mph along the new section.

The scope of the project also includes a new frontage road and trailhead parking near Meadow Lakes Elementary School.

22 FRONTIERSMAN MAT-SU MOVING FORWARD | MARCH 2023

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