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Municipality’s entrepreneur fund takes a race-based approach to investing in businesses, but for how much longer?

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The 49th State Angel Fund, a function of the Anchorage Mayor’s Office, late last year launched a fund for Alaska businesses in response to the Covid-19 pandemic, and it has carved out half of the fund to dedicate it to people of color.

“The 49SAF Co-investment Fund is a dollar-for-dollar fund: 49SAF will match new cash equity (or equity-like) investment into any Alaska company up to $25,000, near-automatically. Recognizing the lack of racial diversity in our portfolio, 49SAF has carved out half of this effort’s total capital to create the Building Equity Co-investment Fund to prioritize applications from businesses owned by Black, Indigenous and People of Color (‘BIPOC’),” the fund’s website states.

But the race preference being managed by local government puts the municipality at risk for a lawsuit. A federal district Judge in Texas this week found that the Biden administration engaged in systemic gender and race discrimination when it distributed Covid-19 relief for American restaurants — and not just Texas restaurants.

The case was brought by restaurant owner Philip Greer, who sued the Small Business Administration because, even though he is caucasian, he needs the same federal rescue assistance as a minority restaurant owner would under the American Rescue Plan Act. Undoubtably, this case will be sent to the Supreme Court.

Another lawsuit was filed over the $29 billion portion of the American Rescue Plan Act fund, when a Tennessee restaurant owner made similar claims to the Texas restaurant owner in a case still pending.

The Restaurant Revitalization Fund, a $28.6 billion program authorized by the ARPA, requires the SBA to give priority preference to restaurants owned by specific minorities and women, while bumping white males and other minorities to the back of the line.

The Restaurant Revitalization Program defines “socially disadvantaged” as people “subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.” The list includes Black Americans, Hispanic Americans, Native Americans, including Alaska Natives and Native Hawaiians; Asian Pacific Americans; and Subcontinent Asian Americans.

Restaurant owner Antonio Vitolo, who is the plaintiff, said, “I do not want special treatment. I just want to be treated equally under the law. I am opposed to race and sex discrimination, and I would hope my government lived up to the same principle.”

While the 49th State Angel Fund has not yet been sued for similarly discriminating against non-minority applicants, it is certainly vulnerable. Anyone who applied for funding from the city-managed fund and didn’t receive it might have a case, if they are caucasian. In this case, it would land as a lawsuit against the incoming mayor, even if the prior management of the fund was not a concept he supported.

The management team of the fund will likely be part of the changing administration under Mayor-elect Dave Bronson. The fund, created under the administration of Mayor Dan Sullivan in 2012, is run by Erin Baca.

Current advisors include Bill Popp of Anchorage Economic Development Corporation; Christi Bell, University of Alaska; Kevin Croy, Nine Mile Labs; Amy Fredeen, Cook Inlet Tribal Council; Lydia Griffey, STANTEC; Melissa Moody, Google; Dan Newman, AK Premier Auctions; and Stephen Trimble, Arctic Solar Ventures, and recent candidate for House District 22 against Rep. Sara Rasmussen.

There are several seats available for appointment to the 49th State Angel Fund board of advisors, which represents a few of the hundreds of volunteer appointments that may be made by the incoming mayor:

Read: Anchorage start-up fund at Municipality now dedicated to 50 percent minority.

Bronson announces transition team: Larry Baker and Craig Campbell to lead

Anchorage Mayor-elect Dave Bronson today announced the leaders of his transition team: Former Lt. Gov. Craig Campbell and former State Rep. Larry Baker. Both men have served on the Anchorage Assembly and have extensive backgrounds in municipal and state government with Baker most recently serving as former Mayor Dan Sullivan’s chief of staff, and Campbell most recently serving as the President and CEO of the Alaska Aerospace Corporation.

A press conference held today in a Spenard neighborhood office building was the first since the election for Bronson, who won the mayor’s race over Forrest Dunbar in a tightly contested runoff. Bronson thanked Dunbar and his campaign and said many good discussions were launched as a result.

Bronson has set up six transition teams as he heads toward being sworn in on July 1: Policy, economic recovery, personnel and organizational structure, budget, public safety, and communications. He has not announced the members of the teams yet but plans to make those names known in coming days.

Bronson said in a handout document that he would look for a new police chief. The current Chief Kenneth McCoy has been in the lead position at the Anchorage Police Department since April 21, having been appointed by the acting mayor upon the resignation of former Chief Justin Doll. Bronson said he expects his public safety transition team to have a short list of candidates ready for him before July 1. He also detailed qualities he will look for in a fire chief.

One of his areas of focus will be to address vagrancy and homelessness, which have exploded in Anchorage over the past six years of the Berkowitz and Quinn-Davidson administrations. He didn’t say whether he would accept the current plan of purchasing the Alaska Club building on Tudor Road in Anchorage to house 125 homeless people, as planned by the Quinn-Davidson administration. He said it would be part of a comprehensive look at all options, with the understanding that many who are homeless have underlying issues. Addressing the vagrancy and homeless issue is “one of the top priorities of my administration,” he said.

His economic recovery team will be focused on short-term and long-term objectives, and reversing the decline of downtown Anchorage, which was vibrant before the Berkowitz Administration and the installation of Andrew Halcro as the head of downtown development.

His written summary of the transition team work ahead also mentions the Port of Alaska, and the need to expand and improve it, as it serves as a transportation link for much of Alaska.

Those with ideas for his administration or who are interested in serving in the Bronson Administration can find out more at his website.

Watch the press conference at this link:

Biden signs cruise ship bill, a team win for Alaska delegation and for Southeast AK

At a private signing ceremony in the Oval Office at noon Eastern Time, President Joe Biden signed the bill that allows cruise ships to return to Southeast Alaska without stopping in Canada, which has banned cruise ships for the second year due to concerns about Covid-19.

The Alaska Tourism Recovery Act raced through Congress with the help of Alaska’s delegation and governor. Congressman Don Young, Sen. Lisa Murkowski, and Sen. Dan Sullivan played important roles in overcoming hurdles that many said were unsurmountable.

Biden’s signature was not unexpected, and cruise companies had already started publishing their schedules for Southeast Alaska.

Princess Cruises, Holland America Line, and Carnival Cruise Line are planning to operate one ship per line for a short season in Alaska that will begin the third week of July. 

The cruises will be available for those guests with a final dose of an approved Covid-19 vaccine at least 14 days prior to the sailing. Crews will be vaccinated, and the goal is to have a 95 percent vaccination rate onboard. 

From July 25 through Sept. 26, Princess Cruises will operate the Majestic Princess on seven-day itineraries visiting signature ports, glaciers and attractions including Glacier By National Park, Juneau, Skagway and Ketchikan.

Holland America Line will have seven-day sailings onboard Nieuw Amsterdam – with port calls in Juneau, Icy Strait Point, Sitka, and Ketchikan, with Glacier Bay included. The first departure is scheduled for July 24, and the ship will have 10 departures from Seattle through Oct. 2.

Carnival Cruise Line will have departures from Seattle starting July 27, through Sept. 14. The Carnival Miracle7-day cruises will stop in Juneau, Skagway and Ketchikan, and include Tracy Arm. 

Norwegian Cruise Lines is selling four Seattle-based sailings on the Norwegian Blisss, starting Saturday, Aug. 7 and with the final sailing on Sept. 4.

Read: Tour operators in Southeast wringing hands over whether they can make an 8-week season work

Juneau Assembly to hear public comment on proposed regulating, taxing of fireworks

The on-again, off-again fireworks policy in Juneau is once again up for public discussion.

After the City and Borough of Juneau canceled the official firework show last July 4th, Juneauites bought fireworks from Tlingit-Haida Central Council and shot them off in their neighborhoods. It was a bit haphazard and some neighborhoods didn’t enjoy it as much as others.

The discussion regulate fireworks that make a “bang.” At Monday night’s Assembly meeting the public will be able to weigh in on the draft ordinance that has a general prohibition of concussive fireworks except under certain conditions:

A person may use concussive fireworks for personal use when all three conditions are met: (i) on private property with the permission of the property owner or on designated public property, (ii) outside the fire service area, and (iii) only on New Year’s and Fourth of July as defined by this chapter.

According to the ordinance, fireworks would not be able to be lit between 10 pm and 10 am on those two holidays. Most fireworks on the Fourth of July in Juneau, however, are lit late in the evening on July 3, when it gets dark enough to see them. Juneau and other Alaska towns like the idea of being the first in the nation to celebrate the Fourth of July with fireworks. The proposed ordinance would curtail that longstanding tradition, which began long before Tlingit Haida Central Council began its firework stand.

In addition to putting clarified rules around fireworks in Juneau, a second draft ordinance would allow the city to tax the sale of fireworks even if they are sold by a nonprofit such as Tlingit Haida.

The items are up for public hearing at the 7 pm May 24 Assembly meeting:

Fairbanks borough rolls out ‘vaccine passport’ for unmasked employees

Fairbanks North Star Borough Mayor Bryce Ward said that employees of the borough can start bringing in their proof of Covid-19 vaccination to Human Resources on Monday, and by June 1, all employees and patrons who are vaccinated will not be required to wear face coverings in Borough facilities.

Ward said that patrons and guests will be informed of the borough policy at entries and will be instructed to self-enforce, but employees will need to show proof before they will be exempt from mandatory masking policy.

Those employees who wish to continue to wear masks are not required to provide any information to HR, and those who are vaccinated may also choose to continue to wear a mask in facilities, Ward said in a memo to borough employees.

“Staff that violate the masking policy will be disciplined in accordance with Borough procedures,” Ward wrote.

Cancel Culture 2.0: Youth arrested for allegedly racist Snapchat message

By SUZANNE DOWNING

America has arrived at the next stage in Cancel Culture, a stage where we eat our young: An underage youth in Connecticut has been arrested for racial slurs.

According to the Hartford Courant, a 16-year-old white boy was charged by the Fairfield Police Department with “breach of peace,” in addition to an older-than-dirt Connecticut misdemeanor of “ridicule on account of creed, religion, color, denomination, nationality or race.” Hate speech on Snapchat is now punishable by up to 30 days in jail in Connecticut.

The 16-year-old’s arrest has sent shock waves through the nation’s conservative circles, because we prize, above all, freedom of speech. No right-minded conservative defends the lad’s mean comments on Snapchat, but Constitution-defending conservatives now find themselves in the uncomfortable position of defending the rights of people to express hateful things.

What hateful things? A photo of a black student was posted on Snapchat with the caption, “Why is there a n—-r in my homeroom?” and “Why is he not in chains?”

It’s not the first time. In 2019, University of Connecticut Police arrested two students for shouting racial slurs outside a campus apartment complex, the home of many black students. The two 21-year-olds were charged under the 1917 law that makes it a misdemeanor to be racist. You read it right: The law was passed in 1917.

You can pass all the laws you want to reform the human heart, but no government has ever succeeded in actually doing so.

Legal scholars and the American Civil Liberties Union raised free speech concerns back in 2019, but even though the law is clearly unconstitutional, it remains on the books.

Our Constitution could not be more clear that “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

We can agree the racist remark was wrong and needed to be addressed by parents (and the school district, if what was written was on school property and during school hours).

But to ruin a 16-year-old’s life over a reckless remark is not going to help heal this nation. The student will live with his mistake for the rest of his life, and the experience with the justice system will likely harden his heart. He is a now a victim of Cancel Culture and there’s no escaping it.

There are other racist groups on Snapchat, most that never see the light of day. In April, one came to light in Aledo, Tex., in which ninth-grade students had a Snapchat group that they called “Slave Trade.” They pretended to buy and sell their fellow black classmates. The school district disciplined the students, but there were no arrests, and that was an appropriate response.

Coincidentally, Prince Harry, as a new resident of the United States, has concluded that our nation’s First Amendment is “bonkers.” Most constitution-loving conservatives waved his comment off as ignorant musings of a royal family member tearing down the most profoundly liberating document in the history of the world, the founding rights our forefathers fought and bled for.

In fact, Fairfield, Conn., where the 16-year-old was arrested, was burned to the ground by the British on July 8, 1779 during the Revolutionary War. We’d like to think Fairfield might take pride in championing free speech, but instead it has embraced the Gospel of Prince Harry.

In the past 15 months of pandemic policy, Americans didn’t fight their state, and local governments that stopped them from attending church, indoors or out, or even going to work. Americans were prohibited from assembling unless they were assembling for race riots. Governments, using emergency powers, prevented the governed from shopping or even opening their businesses. The world was too dangerous, Americans were told, to have people away from their homes … unless they were protesting Donald Trump.

In those 15 months, we also saw Big Tech cutting off the opinions Americans have about their governments. Big Tech canceled the voice of the president of the United States and blackened the accounts of people who questioned government policy on masks, mandates, and vaccines. Big Tech became the arm of government in enforcing government-approved speech, government approved activities, and government-approved vaccines.

A year later, the leftists breached the next constitutional barricade by arresting a 16-year-old punk for saying stupid things.

School Principal Paul Cavanna issued a statement: “We strongly believe that racism has no place here or anywhere in our society. We are working to support those who have been affected by this reprehensible act.” Another unconstitutional action: The principal just threw that kid’s Fourteenth Amendment due process rights in the trash.

Fairfield Public Schools Superintendent Mike Cummings also sent a letter out, saying, “As we continue our equity work as a district, we recognize that this is a journey, not a destination. There will be missteps along the way, and while we are extremely disturbed by these incidents, they provide learning that can and will inform our work.”

Ah, the equity work defense. Who can fight that? Where is the ACLU this time?

Beyond violating the rights of a student, the Fairfield principal, superintendent, and the police missed a major opportunity to use this as a teaching moment for the perpetrator. They could have done so much more, had they initiated a conversation on kindness, human dignity, and respect. Instead, they’ve turned their town and state into a national embarrassment, and probably ruined the student’s chance for a successful future.

Take note of this moment as you watch Cancel Culture move into government practice: Every word on campuses across America is being evaluated through a different “woke” lens. Our young students have little room for error, lest they be branded and banished from the public arena before they are old enough to really understand the emotional toll and hurtful consequences of their words.

Suzanne Downing writes for NewsMax, Must Read Alaska, and Must Read America.

Randy Ruedrich: This election is in the books

By RANDY RUEDRICH

The Anchorage Election Commission completed the 2021 Mayoral Runoff Election Canvas at 11:36 pm on Friday, May 22.

The runoff election generated 90,720 ballots, with Dave Bronson receiving 45,889 votes or 50.66% of the vote.  

Runoff voter turnout increased 15,279 from the regular election on April 6 to 38.31% of eligible voters, the highest municipal election participation ever.

More than 6,800 regular election voters did not participate in the runoff election. However, 22,000 people who did not vote in the regular election voted in the runoff election.

The Anchorage Election Commission’s canvass confirmed that 1,691 ballot envelopes should not be counted.  But 98.2% of the runoff election envelopes were opened and the ballots inside them were counted. 

What are the compliance defects for these 1,691 envelopes?    

The most fixable group are the 240 envelopes postmarked after Election Day.  

The Muni Clerk, the Mayoral Campaigns, MRAK and others encouraged voters to mail earlier. But 342 envelopes were late in the 2021 Regular Election.  Our runoff voters have an apparent 30% reduction in late ballot envelopes compared the April Muni Regular Election.  When the calculation includes the increased runoff turnout, the reduction in late ballot envelopes is 41.6%.  Let’s claim real progress on the procrastination problem.    

1,052 rejected ballot envelope signatures did not match their state reference signatures. The Clerk’s office sent these voters a “cure” letter requesting another signature. The mayoral campaigns urged their identified voters to complete and return their cure letters.  The Clerks’ office and Muni voters cured  1229 ballot envelopes. The 54% cure rate should be a new standard to beat.   These remaining  1052 voters did not respond.  Moral: No Signature match, then the ballot is not counted.

More complex rejections are the 61 unsigned ballot envelopes. There is no voter privacy issue here; a ballot envelope is opened and the secrecy sleeve with its ballot are removed.  The empty envelopes are bundled and saved. The ballots are removed from their secrecy sleeve and flattened for scanning. 

The problem for these 61 unsigned ballot envelopes is that their voters did not respond to their cure letters, which required signing an affidavit affirming that the envelope contains that voter’s ballot. Moral: No signature, then the ballot is not counted.

Another 120 voters submitted their 2021 Regular Election Ballots after the regular election was over and the 2021 Runoff Ballots were already distributed. 

A troubling reject group are the 44 voters who cast two ballot envelopes.  These envelopes will be forwarded to the District Attorney.  

The remaining 174 rejected envelopes have technical issues:  Not registered within Anchorage Municipality, registered after the deadline, no signature on file, not returned in proper envelope and other minor compliance errors. 

The 2021 Muni Election is in the books.

Randy Ruedrich is a former chairman of the Alaska Republican Party and is an elections expert.    

Juneau’s local election is Oct. 5: Three anti-cruise ship initiatives could be on ballot

Juneau will hold its municipal election for mayor, two Assembly seats, and three seats on the local school board on Oct. 5.

In addition, three initiative petitions are circulating in the community that would put severe limits on cruise ships going forward:

The cruise ship hours initiative would prohibit cruise ships with more than 250 passengers from being at the dock or at anchor in Gastineau Channel between the hours of 7 pm and 7 am. If a ship comes in after 1 pm and has to leave at 7 pm, ships are likely to just not to include Juneau on their itineraries, since they could not provide a great experience for guests.

This no-ship Saturdays initiative would prohibit cruise ships with more than 250 passengers from coming to Juneau on Saturdays. Because ships are going to other ports and must coordinate with those communities, they may just have to skip Juneau.

This initiative would prohibit cruise ships larger than 100,000 gross tonnage from being at dock or anchor in Juneau after Jan. 1, 2026. The Grand Princess, and Star Princess, for instance, have been coming to Juneau since the early 2000, and they would be banned. Ships such as the Discovery Princess, with 144,000 gross tonnage, would also have to bypass Juneau.

With these three anti-cruise ship petitions looming, other communities might pick up more cruise ships, as beneficiaries to Juneau’s reticence to be a port city.

The petitions’ organizer, Karla Hart, a critic of the cruise economy who leads a group called Cruise Control, has until June 3 to collect about 3,000 signatures on each of the petitions in order for them to appear on the Oct. 5 ballot. Her group has been relying on pop-up signature gathering events and person-to-person contact.

Cruise Control is also advocating for a vaccine passport and says the fact that 95 percent of passengers will be vaccinated is not good enough.

“The cruise industry is reluctant to follow CDC rules on vaccines. Passengers vaccinated at 95% is not enough as far as I’m concerned. A vaccine passport is a good idea. The huge crowds we experience when ships come to Juneau are the perfect set up for the spread of COVID-19,” the group wrote. It also wrote, “The cruise lines think they own us, and they do when our elected officials look the other way when they pollute, pay nothing in taxes, treat their crews like slaves, capture every dime possible onboard and leave us the crumbs. Our Assembly needs to regulate. Allowing the industry to self-regulate through the Tourism Best Management Practices is a joke. Ever tried to call with a complaint? It’s a black hole.”

Another group, Protect Juneau’s Future, is making the case that the initiatives would harm the Juneau economy. McHugh Pierre, president and CEO of Goldbelt, Inc., has spearheaded that group, and Pierre has been speaking around town about the dangers posed by the Cruise Control initiatives.

One local business owner said that the Cruise Control group is telling lies about the cruise ships, such as claiming they pollute the waters of Alaska, when in fact the ones that come to Alaska have the most stringent water systems in the world.

It’s already illegal to discharge sewage within three miles of any U.S. coastline. But the big ships have better wastewater treatment facilities than every one of the communities they visit in Alaska. The smaller ships that Cruise Control prefers have no such tertiary treatment.

A recent study of Ketchikan beaches, for example, showed high fecal coliform levels, even though no cruise ships have been there for 18 months. The pollution is coming from the community itself.

To ensure the ships are complying with environmental regulations, the Department of Environmental Conservation is planning to inspect every ship within the first few weeks they are in Alaska waters this season. This inspection program replaces the Ocean Rangers program that spent over $40 million since its inception, which had onboard inspectors from the State of Alaska. It was discontinued two years ago due to budget cuts. Instead, existing staff in the agency will be performing inspections.

Hart of Juneau’s Cruise Control said on KINY’s Action Line that she feels certain she can get the signatures, which would set up a major political battle for the Oct. 5 mail-in election, pitting government workers who have not missed a day of work against those Juneauites who work in the productive economy.

It would also mean the struggling productive economy workers would have to fight for their livelihoods during the late summer and fall, the exact same time they are simply trying to stay alive in a shortened cruise season.

The election will be mail-in only for the second year in a row. Juneau Assembly this spring voted to have the Anchorage Municipality’s Election Office manage a mail-in election to prevent people from participating in a normal in-person election.

Read: Southeast gears up for visitor season, but business owners see lots of risk to investing

To open the gift shop or not? Southeast gears up for cruise ships, but small business risk is worrisome in short season

Cruise ships are coming back to Southeast Alaska, if President Biden signs the Alaska Tourism Restoration Act. It temporarily removes a rule that a foreign port call is required by non-US-flagged cruise ships sailing between Washington and Alaska.

Now, small business owners in Juneau and across the Panhandle are faced with a critical decision, and for many, it’s life-changing: Can they risk opening for business this summer? Or will opening this year spell doom for their visitor-dependent enterprises?

Businesses generally need some degree of certainty, and business owners are feeling overwhelming uncertainty this year.

For some who spoke with Must Read Alaska, they don’t think they can risk it. They can’t get inventory in time. They can’t find anyone to work in their shops. Other family-owned businesses, such as Annie Kaill’s and Caribou Crossings in downtown Juneau are open and seeing some independent travelers already. Many restaurants and bars remained open as well.

While The Hangar and Roma restaurants at Merchants Wharf never closed during the pandemic year, the Twisted Fish and Pier 49 restaurants will remain closed this year because it costs too much to ramp back up, and there are so few people willing to work in the hospitality industry. On the other hand, Tracy’s Crab Shack will be open.

“The real story for entrepreneurs is the work force. We didn’t build it overnight and we’re not going to rebuild it overnight. We’re having a terrible time getting people to come back to work in the hospitality industry. It’s not just the unemployment bonus payments they have been getting. People have now had a long bridge of time to leave our industry and commit to different industry,” said one Juneau restaurant owner.

Nearly all of the tourism-facing businesses in Southeast Alaska have been without revenue since the season closed in 2019.

That’s over 600 days since they’ve had a customer, and by next year, it will have 30 months without revenue if they don’t open for the upcoming short and thin tour season.

For these businesses, their Paycheck Protection Program (PPP) monies have not covered their fixed costs over the past 18 months. Opening for a 10-week cruise season with only one ship a day that may have 60-70 percent capacity is not going to put them in the black, one Juneau retailer said.

Land and sea tour businesses in Southeast Alaska based their business model on 2019’s strong tourism numbers. Many had made plans to expand their operations in 2020, and were heavily leveraged for boats, buses, and equipment.

Unlike gift shops, those operators also have to have bus drivers transport ship passengers to a tour site, whether it’s a dock for a whale-watching boat, a trailhead, or the Gold Creek Salmon Bake. Finding bus drivers and getting the buses out of mothball status, inspected, permitted, and operational is difficult, because the rhythm of the seasons has been so disrupted by the 2020 ship shutdown.

Some tour operators are electing to put one or two boats in the water, and may operate just two to three days a week. But they are scrambling to find Coast Guard-certified captains for even that reduced schedule.

This week, some of the smaller boutique cruise ships arrive in Southeast — UnCruise and Alaskan Dream Cruises. For the owner of Juneau Food Tours, it’s great news. Midgi Moore said her walking tours are filling up.

Like other business owners who depend on visitors, she had big decisions to make last year for keeping open. Moore pivoted her focus and started the Taste Alaska! side business. Moore’s motto is, “If you can’t come to Alaska, we’ll come to you,” and she now ships custom Alaska food boxes all around the country. Her side venture was made possible because of a $7,000 prize she won from the Alaska Tourism Industry Association’s Shark Tank competition last year.

“I couldn’t operate food tours and I didn’t want to go bankrupt,” she said. Now, she has a year-round stream of revenue with her subscription boxes.

But Moore, who is also the head of the Downtown Business Association, agrees that finding people to work is the biggest lift for all small businesses in Juneau.

Yet, even with just a few ships, “It’s a beacon of hope and beacon of normalcy. It’s so important to our community, and out business owners who have been so stressed,” Moore said. “Business owners want to get out of their sweats, off the couch, and get back to work.”

(Photo courtesy of Juneau Food Tours)

Read: All aboard as cruises start filling up for Southeast