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Fairbanks Pioneer All Alaska Weekly Newspaper Archives May 9 1986, Page 1

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Fairbanks Pioneer All Alaska Weekly (Newspaper) - May 9, 1986, Fairbanks, AlaskaEstablished in 1970, if a 9 and Independent As the Birds. A Rasmusson Library diversity of Alaska Akodu weekly Fairbanks. Aladeau May 9, outside investors pulling drawstrings. ,skyrocket but area Banner construction Yea City involved in 27 projects totalling More than $50 million commercial projects coming to halt but Public projects up by Tom Snapp editor bankruptcies and foreclosures Are skyrocketing in Fairbanks and Alaska. Commercial construction which has boomed Here for the past two years is coming almost to a halt. The brightest aspect of the housing construction picture is a project to construct housing for troops to be stationed at adjacent it. Wainwright in a new Light infantry division. The of companies faced with drastically declining Oil prices have Cut Back on personnel projects on the drawing boards exploration and in some cases projects in the Mill. Declining Oil prices with resultant Revenue shortfalls have caused state and local governments to Cut Back on personnel services and programs and look seriously at increasing present taxes or imposing new taxes. Its All part of a massive grinding Down and adjustment of the Economy that is causing frustration in both the Public and private sectors in Alaska. The one Bright spot on the horizon is a projected Banner construction year for Fairbanks not with traditional commercial and residential housing but with a wide array of government projects. City Engineer John Phillips told the farthest North press club Friday that the City alone was involved in 27 projects either in construction or design that would total More than $50 million. And according to officials probably another $50 million in projects Are in the Mill for the area outside the City in the Fairbanks North Star Borough by the Borough itself the state and the Federal government. Last year 216 personal or business bankruptcies either chapter 11 reorganization or chapter 7 liquidation were filed in Alaska More than the total filings during the three years following the completion of the trans Alaska pipeline. This year in the first four months 126 cases have been filed and if this Pace keeps up More than 400 filings will be made this year doubling the bankruptcies of last year. Paul Wagner president of Interior credit Bureau which operates a reporting service on such things As foreclosures liens court judgments and bankruptcies says he believes the big increase in foreclosures is the result of the changed status of borrowing couples. Because for the past few years Alaska has been on an economic Roll Lije says outside lending institutions have been very receptive to buying a Alaska paper and the states lending institutions knowing that have been very receptive to lending Money to prospective Home owners even to marginal borrowers. He said the lending frenzy continued even when interest rates skyrocketed. A typical payment he said would run As High As $1500 a month. Such payments were made by both the Man and wife working and combining their incomes. Then he said along comes a change of status. The wife is Laid off As teacher because she does no to have tenure. Or the husband obtains a new Job in Portland and the family must move. The couple can to afford the $1500 a month payments and yet when they try to sell the Home for merely their equity they find they can to do it. A i have two or three Calls a week from people asking me How they can give their Home Back to the Bank that they can to afford the payments a said Wagner. A in my 20 years in Alaska i have never experienced this situation where so Many people Are willing to give their Homes because of declining Oil prices Wagner said outside lending institutions were pulling the drawstrings tighter causing the lending institutions Here to do the same. Regarding the upsurge in bankruptcy filings Wagner said he believed this was a shake out of businesses that probably should not be operating anyway. He said when the Boom in mall construction began people who had been operating Small businesses out of their Homes or garages suddenly Felt they continued on Page 2 after having spent 17vi years in the state legislature state senator John Sackett 41, announced tuesday he would not seek another term and would retire from the legislature and from state government on dec. 31. Lens unlimited photo Era opposes Vancsa amendments subsistence based on residence the National Rifle association whose Board of directors passed a Resolution in january opposing subsistence Hunting in Alaska based on place of residence has decided to oppose with appropriate resources proposed amendments to the Alaska native claims settlement act. Such was the word wednesday from Anchorage attorney Wayne Ross head of the Era in Alaska the Era Board has passed a Resolution saying the so called native sovereignty movement would jeopardize Hunting rights of alaskans and other citizens of the United states and would interfere with statewide sound game management by allowing individual native tribes and villages to ban. Control or severely limit Hunting. It also says that recent legislation that has been introduced in the . Senate to Amend the Alaska native claims settlement act would Advance aboriginal native claims for sovereignty to the detriment of other citizens of Alaska and the United states. The Resolution directs the executive vice president of the Era to use appropriate resources at his disposal to oppose the proposed legislation or similar legislation and to accelerate efforts to implement a resold continued on Page 3

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