Sheldon Jackson College is fully accredited by the Northwest Association of Schools and Colleges, and is authorized to offer courses in Alaska by the Alaska Commission on Postsecondary Education. The Teacher Education programs are certified by the National Association for State Directors of Teacher Education Colleges (NASDTEC). The campus is nestled between rugged mountain peaks and the Pacific Ocean, offering students an opportune environment in which to live and learn.

In 2003, there were 135 homes sold, which included both new construction and existing homes changing hands. The amount of time required to sell an existing home ranged from 175 days to 243 days. According to the MLS, the average sale price for a single-family dwelling was $200,809 and for one unit in a duplex the average price was $190,021.

Sitka has three real estate agencies: Davis Realty, Baranof Realty and RE/MAX of Sitka. All three agencies participate in the Sitka Multiple Listing Service (MLS). In Alaska, state law regulating the sale of homes is considered strict and all those brokering homes must test satisfactorily and be licensed. Sitka is currently undergoing a housing shortage and therefore an investment opportunity for a developer, for homes in the $75,000 to $150,000 range. City code requires single-family homes to be on lots of at least 7,000 square feet but the Planning & Zoning Commission has recently approved smaller lots in well-planned developments as a method to get the cost of housing down.

New home construction is most typically heated with fuel oil. Homes are built to the higher quality Alaska Standards that calls for a higher insulation factor among other things. Hot water is also typically fuel oil fired. Cooking is either electric or propane fueled.

Rental rates, excluding utilities, are $800 to $900 for a one-bedroom unit; $850-$1,000 for a two bedroom and $1,100 to $1,400 for a three bedroom. The City sales tax of 5% applies to the first $1,000 in rent only each month. The average household in Sitka is 2.61 people and there are 3,650 total housing units with 1,903 owner-occupied and 1,375 renter occupied (2000 US Census).

•The primary goal of AIDEA is to encourage economic growth and diversification.
•AIDEA's role is to encourage new activity. AIDEA's role is not to make a bad project good, but instead make a good project better.
•With regard to debt functions, AIDEA will remain a secondary financial entity and not become, for example, a direct lender or provider of grants.
•AIDEA's role as an equity participant (or sole owner) will be supportive rather than active.
•AIDEA is self supporting - utilizing income from its investments (cash and treasuries, loan portfolio and development projects) to fund its operations. AIDEA receives no funding from the Alaska General Fund, and instead, since 1996, has paid a dividend to the General Fund.


AIDEA’s Programs

Loan Participation Program:

AIDEA is not a direct lender, but through the Loan Participation Program, AIDEA purchases a portion of a loan that is sponsored and originated by an eligible financial institution. In most cases the interest rate on the AIDEA portion of the loan is slightly lower than the rate on the bank’s portion. The term of the AIDEA portion of the loan can also exceed the term of the bank portion. This can result in lower scheduled payments for the borrower.

•AIDEA offers either a fixed or variable interest rate.
•The term of the AIDEA portion of the loan can exceed the bank’s portion, thereby lowering the scheduled payments.
•AIDEA provides a secondary long-term market for eligible financial institutions.
•The originating financial institution retains a portion of the loan and also services the entire loan (i.e., payments are made to the bank, not to AIDEA).
•The project must be in Alaska.

In order to apply, an applicant must work with and through those Sitka banks that are certified to utilize the AIDEA program. Those banks include Alaska Pacific Bank, First Bank, First National Bank Alaska and Wells Fargo.

•The financial institution, after its approval of the loan, applies to AIDEA for participation in the loan.
•AIDEA loan officers conduct their own due diligence of the loan to assure it is a credit worthy project.
•The loan is submitted for approval to the AIDEA Credit Review Committee. If the AIDEA participation equals or exceeds $3 million, the loan must also be approved by the AIDEA Board of Directors.

Business & Export Assistance Loan Guarantee:

The Business and Export Assistance Program is a loan guarantee program designed to assist small to medium sized Alaskan businesses. The guarantee is applied to loans made to eligible Alaska business enterprises for real property, tangible personal property, working capital and export transactions. Through the program AIDEA is authorized to guarantee up to 80% of a loan, not to exceed $1 million, originated by eligible financial institutions.

The guarantee extends to the principal balance, accrued interest (not to exceed 90 days for non-export transactions, 180 days for post-shipment export transactions and 270 days for pre-shipment export transactions), and liquidation expenses. A part of this program, aimed at small businesses in rural areas, provides a streamlined application process for secured and unsecured loan guarantees up to $100,000.

AIDEA can guarantee up to 80% of a new loan originated by an eligible financial institution. AIDEA’s guarantee cannot exceed $1 million. The loan can be used for real property, tangible personal property, working capital and export transactions. There is a streamlined application process, aimed at small businesses, for secured and unsecured loan guarantees up to $100,000. AIDEA assists rural Alaskan entrepreneurs by enhancing the Rural Development Initiative Fund (RDIF) loan program administered by the Department of Community and Regional Affairs.

Maximum terms:

* 180 days if for a post-shipment export transaction;
* 270 days if for a pre-shipment export transaction;
* 1 year if secured solely by inventory and/or accounts receivable and a non-export transaction;
* 5 years maximum if working capital and/or unsecured by waiver;
* 15 years maximum if secured by tangible personal property;
* 20 years maximum if secured by real property.
* The project must be in Alaska and an Alaskan resident majority ownership is required.

Through AIDEA, small and medium sized businesses have access to the Export-Import Bank of the United States. The "Ex-Im" Bank, as it is commonly known, has cooperative partnerships with local and state development agencies, such as AIDEA, around the country.

The program is designed to help small businesses involved in export/import transactions make greater use of the Ex-Im Bank’s financing programs, which include: Working capital guarantees; Export credit insurance; Medium and long term guarantees; and Direct loans to foreign buyers.

Conduit Industrial Revenue Bond Program:

Projects, which are eligible under the Internal Revenue Code of 1986, can qualify for tax-exempt financing under AIDEA's Conduit Revenue Bond (also know and IRB’s) Program. Under this program, AIDEA acts only as a conduit for the issuance of either taxable or tax-exempt bonds. Neither the assets nor credit of AIDEA is at risk in this program; the creditworthiness of the project and credit enhancements offered by the applicant is essential to the underwriting and placement of bonds.

A business enterprise may request the adoption of an eligibility resolution for tax-exempt financing by submitting a preliminary application and nonrefundable $200 application fee to AIDEA on a form provided by AIDEA. If the board of directors adopts an eligibility resolution for a project, an applicant then submits an application for financing for the project. A preliminary application is also required for the issuance of taxable bonds, however, the board of directors do not need to adopt an eligibility resolution. In addition to third-party costs, the applicant will pay a financing fee to AIDEA. If the bonds are tax exempt and therefore subject to the volume cap provisions of 26 U.S.C. sec. 147, the issuance fee is equal to the following:

7. The project is in compliance with applicable law; and...