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Fake news: ‘Investors’ in the Dispatch

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In a report about the sale of the Morris Communication newspapers to Gatehouse Media, the Alaska Dispatch News labeled Gatehouse a New York “conglomerate.”

Because in some journalists’ view of business, conglomerates are bad things. New York is the media capital of the world. Except when it’s not.

GATEHOUSE NOT A CONGLOMERATE

The definition from Investopedia says a conglomerate is a corporation made up of a number of different, seemingly unrelated businesses. Like Westinghouse, for example. Or Johnson & Johnson. But not Gatehouse, which clearly is a media focused company.

Also, Gatehouse Media is not from New York City, which was the implication. The company is modestly headquartered in the town of Perinton, N.Y., population 47,000.

Gatehouse, which went through bankruptcy reorganization in 2013, reemerged with a new holding company, New Media Investment Group. That is still not a “conglomerate.”

Headquarters of “conglomerate” Gatehouse Media.

In 2007, Gatehouse purchased 14 daily newspapers and other publications from Morris Communications, so the relationship between these companies goes back at least a decade. Both companies have tried to diversify to stabilize their newspaper divisions, with limited success.

Dispatch editors used “conglomerate” as a pejorative to draw a distinction between that and a locally owned newspaper, a not-conglomerate.  Never mind the irony that the Dispatch‘s owner, Alice Rogoff, is married to one of the richest and most successful private investment bankers in the world, whose vast holdings of unrelated businesses make traditional conglomerates look small-time.

WHO WILL BUY THE DISPATCH?

The Morris Communication announcement of the sale of all of nearly all of its news division came as a shock to media professionals, not just because Morris has been a steady company in Alaska for the past nearly 50 years, but it’s also the company that seemed to have the skill and scale to save the Alaska Dispatch News as it founders on debt.

Later in the story about the Morris newspapers, the ADN newswriters took a stab at answering the elephant question in the room — the Dispatch owner’s own financial struggles:

Alaska Dispatch News is dealing with the challenges of the [newspaper] industry as well. ADN owner and publisher Alice Rogoff is ‘in discussions with several potential new investors’ in the company, she told staff in an email last week,” the reporters wrote.

With Northrim Bank having first position on 100 percent of the newspaper assets while it continues to hemorrhage cash, it’s unlikely that Rogoff will find any investors who will pony up funds while allowing her to remain at the helm. There could be a bail out, a buyout, or a bankruptcy reorganization, but  an investor?

Not likely, considering the newspaper’s dire financial straits together with Rogoff’s tendency to both initiate and attract lawsuits.  Here are some recent examples:

  • Immediately after purchasing the newspaper from McClatchy in 2014, Rogoff sued McClatchy over a contract it had with the Associated Press that she inherited with the sale.
  • When she and her business partner Tony Hopfinger broke up in 2015, she allegedly stiffed him for $900,000 and he’s suing her for that contract, written on a bar napkin.
  • Rogoff has recently been sued by her suppliers and contractors.

For the newspaper to report that its owner is in discussions with potential investors is either offering fake news to the readers or reflects naivety on the part of the newsroom.  Our bet is the latter.

“(W)e’ve been challenged by changing economic and financial circumstances, to say nothing of evolving news reading habits,” Rogoff wrote to employees, recently.

Rogoff went on to explain that deliberations with potential investors “are private and must be kept that way, so I cannot comment on their status. The goal is simple: to keep the state’s major newspaper in the business of delivering both printed and digital news of, and for, Alaskans.”

And with that, media observers are waiting for another shoe to drop, perhaps as early as this week.

[Read: The summer of Alice Rogoff’s discontent]

[Read: Craig Medred coverage: Newspaper gone?]

The Socialists’ paradise is nigh

OUR SENIOR CONTRIBUTOR HAS A DARK VIEW OF ALASKA’S FUTURE

ART CHANCE

We’re almost there. Public employee unions are one election away from complete control of the State, and they almost pulled it off in the last election.

Gov. Bill Walker is a dead man walking and his shotgun marriage with the unions/Democrats will end as soon as Mark Begich or some other credible Democrat emerges. Begich is showing signs of running despite protestations to the contrary.

My experience with both unions and Democrats has taught me that if you want to know what they’re doing or planning just watch and listen to what they say they’re not doing or planning.

Sen. Bill Wielechowski is the wild card; if he wins his suit to restore the Permanent Fund, he can be elected governor by acclamation if he wants it.

The Democrats will work that out in some rich person’s living room. As things stand, the next Governor will be a Democrat, the House will remain in Democrat control, and the Senate seems very likely to become Democrat controlled.

The Left and the media, with a lot of help from self-styled “true conservatives” and pro-lifers have done a very good job of demonizing the Republicans in the Legislature.

If the ‘true conservatives’ and pro-lifers hated Democrats as much as they hate Republicans who don’t toe their line, the opposition to the unions/Democrats wouldn’t be so hopelessly fragmented.

The Senate hasn’t done a good job of getting out its message or establishing its image, but Sen. Kelly is right: The Republican majority in the Senate is the only thing that has stood between the citizenry and an income tax, loss of citizen access to the earnings of the Permanent Fund, and punishing oil taxes that will effectively remove the oil industry as a political force in Alaska.

Control of the Senate and complete control of the Governor will allow the Left to assume control of the government with little regard for what those not in their constellation of constituencies thinks about what that government does.

The bulwark of the Left’s support is unionized public sector and Third Sector employees. Contrary to the mythology, there is almost no private sector unionization in the U.S. or in Alaska. What looks like private sector unionized employers are employers that are dependent on the government for their revenue, are heavily regulated by the government, or are government monopolies, e.g., utilities.

Unions have the trades workers on publicly funded projects and work for the crony capitalists who are union contractors so they can get that work.   The merchant mariners in much of the Alaska trade are union because the Jones Act mandates an American bottom and crew.

Utility employees are union because the utilities either belong to a government or are government protected monopolies in which the union and the management are essentially co-conspirators against the taxpayers and rate payers.

Alaska’s public employees are almost all union because the unions lobbied politicians to give them the public employees, not because the employees organized so they could become union.   None of the State’s unionized employees have ever voted in an election in which being non-union was a meaningful choice.

Labor Board regulations require that “No Representative” be a choice on a representation ballot but nobody in State government has ever uttered a word in support of no representation, and everyone in a position to make that utterance meaningfully knows that it would be their career death warrant the minute there was a Democrat government.

Even the initial unionization back in the Seventies really only gave the employees a choice of which union was to represent them, and in some units there was no choice at all; the unions just divvied up the employees among themselves.   In my 20 years with State labor relations there were two representation elections, but they were only elections to decide which union was to represent the group of employees.

There were a handful of representation petitions, but they too were only about carving out specific groups of employees for a separate union.   Union control over State government is so firm that when the leaders of a veto-proof Republican majority in both bodies recoiled from union abuses in the 1996 election and tried to amend the Public Employment Relations Act (PERA) so that it had at least the same protections against union abuses that the federal Labor-Management Relations Act has, the leadership couldn’t get the votes in the House to pass it.

Anchorage is no different; everyone who isn’t a Muni employee should have voted to support AO-37, yet the unions repealed it with a decisive vote.

I’m pretty sure I have more experience with public sector labor relations than anybody in the state and it is my considered opinion that the union grip on governments in Alaska cannot be loosened by ANY democratic process.

Many on the conservative/Republican side talk of right to work legislation; no legislature, whether Democrat or Republican controlled, will pass it, and if they did, no governor with further political ambitions would sign it.

There is nothing like the organization on the conservative/Republican or business sides to defeat the unions with an initiative; ask former Mayor Sullivan. That leaves the courts, and here there is some hope, if there is the will and resources.

This line of attack only applies to the State and not even to all State employees though it applies to the vast majority of them. It may apply to polisub employees who are paid from State funds and could be applied to other polisub employees, but each polisub would be a separate endeavor, and the outcome would depend on their ordinances and funding.

Almost uniquely, the Alaska Constitution requires that the State maintain a “merit system” of employment.  That Constitutional requirement is articulated in the State Personnel Act at AS 39.25.010.   Essentially, all managerial actions toward State employees, hiring, disciplining, dismissing, promoting, transferring, etc., may only take place for a reason related to merit.

Myths notwithstanding, it isn’t a union contract that requires “cause” or “just cause” to discipline or dismiss a State employee; it is the State Personnel Act and the Alaska Constitution.  This is the thinking that underlays my arguments to the Alaska Labor Relations Agency that led to ALRA Decision and Order 110, removing most actions related to job classification from the scope of the collective bargaining duty under the PERA.   Decision and Order 110 was upheld by the Alaska Supreme Court in APEA v. State in the early ‘90s.

Hiring an employee because s/he is the one the union sent over from the Hall is not a reason related to merit. Promoting an employee because the union contract says the most senior employee must be promoted is not a reason related to merit.   And most importantly, firing an employee for not paying union dues is a reason not related to merit.

If not compelled to pay dues, the vast majority of State employees would not pay them; this has been demonstrated in the past when the State has refused to enforce the union security clauses of expired contracts, and the State’s refusal to do so has been upheld by the ALRA.

It is unlikely that any of the white/gray collar units, general government, supervisors, confidential, could maintain their majority. The labor, trades, and crafts unit has somewhat more union loyalty and might maintain a majority.   The correctional officers and cops have considerable union loyalty, but even they would shed dues paying members.

A suit asserting this line of argument is a direct attack on the constitutionality of significant portions of the PERA as they have been applied to State employees subject to the State Personnel Act (SPA).  All classified State employees are subject to the SPA, while partially exempt employees are subject to some

Exempt employees are not subject to the SPA so this would not apply to unionized Marine Highway employees or State teachers or employees of quasi-governmentals, at least not on these precise grounds.

The unions would view this as an existential battle; it is, and they would nationalize opposition. Proponents can count on the unions mounting every form of opposition and bringing in the best legal talent money can buy.  There will be direct personal attacks on anyone who offers support and especially anyone who gives legal assistance or money. There will certainly be large protests and might well be violence.

Under this or any other Democrat administration, the State would vehemently oppose this suit.   Even under a Republican there’d be little State support because State lawyers and State managers know that one day there’ll be Democrat governor with a hit list and their name will be on it.

Proponents should expect to lose at the trial court level; the Democrats can always find a trial court judge who’ll do them a “great service” in exchange for an appointment to a higher court by a Democrat governor.

There is no money to be made off supporting or advocating for this suit, and any Alaska attorney who takes this own can write off doing any work for the State or political personages in the State ever again; the Democrats will hate him/her and the Republicans will be afraid of associating with someone so controversial; don’t ask me how I know.

Consequently, the predicate of any successful prosecution of the suit is securing conservative foundation and interest group support, financial aid, and legal assistance, unless there is some brave Alaska attorney who’d like to become the most hated person in Alaska since Ron and Penny Zobel.

This is the only remotely viable strategy I see to rein in unionized public employee control of Alaska’s political processes.   Failing this, after the 2018 General Election, we become the Socialist Workers’ Paradise and until the money runs out, there is no place for anyone else at the table.

Art Chance is a retired Director of Labor Relations for the State of Alaska, formerly of Juneau and now living in Anchorage. He is the author of the book, “Red on Blue, Establishing a Republican Governance,” available at Amazon. He only writes for Must Read Alaska when he’s banned from posting on Facebook. Chance coined the phrase “hermaphrodite Administration” to describe a governor who is both a Republican and a Democrat. This made Democrats irritable and hermaphrodites insulted.

Heads and Tails: Berky, Begich host fundraiser for who?

SHE’LL LEAD THE CHARGE OPPOSING ALASKA: Sen. Maria Cantwell, a leading opponent of drilling in the Arctic National Wildlife Refuge, has friends in high places.

Anchorage Mayor Ethan Berkowitz and former Sen. “The Honorable” Mark Begich are hosting a fundraiser for the Washington senator, whose largest donor is the League of Conservation Voters.

Other hosts of the event include environmental activist-litigator Peter Van Tuyn, Native American Rights Fund lawyers Heather Kendall-Miller and Lloyd Miller, and Raina Thiele, former Obama official and lead organizer of the Obama trip to Alaska. 

NORTH KOREA HAS GUAM IN SIGHT: North Korea has announced its plan to launch missiles toward the U.S. territory of Guam, which is home to a major U.S. military installation and dozens of strategic aircraft. The threat includes four Hwasong-12 missiles that would be pointed over Japan and into the waters near Guam, where 7,000 U.S. military personnel are stationed. The island has a population of 160,000. The missiles would be aimed to hit between 19 and 25 miles from the island and may be launched within a week, according to the regime in Pyongyang.

In an interview with Politico, Gov. Bill Walker expressed concern: “No one’s hiding under the desk that I know of at this point,” he said. “But we do have to make sure we have the technology and awareness of what could happen.”

Anchorage Mayor Ethan Berkowitz told writer Julia O’Malley last month that he was “worried about moose, not missiles, bears, not bombs.”

Sen. Dan Sullivan has been warning for a year about the growing threat from North Korea.

In January of 2016, he said on his Facebook page: “North Korea’s purported test of yet another nuclear device is a reminder of the menace and lingering threats that exist in the Asia-Pacific. Concurrently, the Obama Administration is planning to remove America’s only Airborne Brigade Combat Team in the Asia-Pacific, Alaska’s 4-25. Crippling our force capability is particularly dangerous given Russia’s massive Arctic military build-up and North Korea’s consistent provocations. In December at a confirmation hearing, I received the commitment of Under Secretary of the Army Patrick Murphy to support the development of a rigorous Arctic Operations Plan before a single troop is removed from Alaska. Weakness is provocative. Bolstering our forces in the North would send a strong message that the United States is serious about upholding our promises, reaffirming our alliances, and deterring aggression from our adversaries.”

Sullivan recognized the threat years ago; Mayor Berkowitz doesn’t seem to recognize the threat today.

OTHER STUFF THAT COMES FROM ACROSS THE PACIFIC: A “Save Our Seas” bill sponsored by Alaska Sen. Dan Sullivan has passed the U.S. Senate. Will plastic waste in the ocean actually be reduced as a a result of it?

“What is particularly troubling about the marine debris challenge and crisis … is that the majority of marine debris in the world’s oceans come from five countries in Asia: China, Thailand, the Philippines, Vietnam, Indonesia and South Korea,” Sullivan said.

In other words, missiles from North Korea, plastic from everywhere else in the Pacific Rim.

The bill calls on the State Department to engage other countries to find solutions. It would also reauthorize the Marine Debris Program for another five years, with up to $10 million a year.

Deputy Assistant Secretary of State David Balton described the waste deluge as a casualty of rapid growth in the countries most responsible.

“Their pace of economic development is just moving ahead so much more rapidly than their waste-management capabilities,” Balton said at a Senate hearing on the bill last month. “To get a handle on this we really need to help them improve waste management processes.”

Sullivan’s 21 co-sponsors range from from conservative Sen. Jim Inhofe, R-Okla, to far-left Sen. Cory Booker, D-N.J.

DON YOUNG FUNDRAISER: One of the top political events of the summer is the annual fundraiser for Congressman Don Young, to be held at the home of former Gov. Bill Sheffield on Aug. 16, 5:30-7 pm.

Hosts include a who’s who: Carl Brady, Ron Duncan, and cohosts Hugh Ashlock, Rick Boyles, Judy Brady, Sheri Buretta, Steve Colligan, Adam Crum, Bob Gillam, Richard Glenn, David Gottstein, Perry Green, Jim Jansen, Pete Leathard, Joey Merrick, Mark D. Nelson, Gloria O’Neill, Gail Schubert, and Aves Thompson.

CHRIS BIRCH MAKES IT ‘OFFICIAL’: On Facebook, Rep. Chris Birch of South Anchorage said he’d filed for office with APOC and will either run for House or for the Senate seat, should that become vacated by Sen. Kevin Meyer, who is mulling a run for lieutenant governor. Birch wrote:

“It is my intent to campaign for reelection to the State House or Senate if this office becomes open. Last year, with the support of many friends and neighbors we prevailed in the general election for House District 26 with a 28 percent margin. As a new member of one of the largest classes of freshman legislators since statehood – 15 of 60 House and Senate offices transitioned – I am committed to advancing an efficiency agenda that reduces spending, restores accountability, limits regulation and encourages private sector investment and employment.”

Chances are he’ll have a primary opponent in Rep. Charisse Millett should he run for the Senate seat, but that all depends on Sen. Meyer, who has expressed some recent interest in running for Lite Guv.

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Dan Fauske’s life celebrated by hundreds

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Elaine Fauske and Dave Stieren lead a toast to Dan Fauske.

A “going away party” for Dan Fauske, who died April 5, 2017 at age 66,  ended with shots of Irish whiskey being passed around a crowded room, and a toast given by his widow Elaine. It seemed an appropriate way to close out the life of an Alaskan who was considered a great statesman, even though he never held elected office.

More than 300 people attended the celebration of Fauske’s life at the Williwaw nightclub and event venue in downtown Anchorage. Many in the standing-room-only crowd were leaders from around the state, including Senior U.S. Senator Lisa Murkowski, Gov. and Donna Walker, former Gov. and Sandy Parnell, and a dozen legislators, such as Sen. Kevin Meyer, Rep. Lance Pruitt, Rep. Chris Birch, former Rep. Craig Johnson, former Rep. Mike Hawker, former Rep. Ben Nageak, and former Sen. Bill Stoltze.

Reunion: The “Four Horsemen,” as they were known in the Alaska House of Representatives, met up at the wake for Dan Fause. Left to right: Craig Johnson, Mike Chenault, Kurt Olson, Mike Hawker.

Also attending were Reps. Mike Chenault, Jennifer Johnston, Gabrielle LeDoux, former Reps. Kurt Olson, Lynn Gattis, Gene Therriault, Lindsey Holmes, and former Sen. Lesil McGuire.

Julie Fate Sullivan represented U.S. Sen. Dan Sullivan, who is in D.C. Former Anchorage Mayor Dan Sullivan arrived early, as did his former Chief of Staff Larry Baker, while current Mayor Ethan Berkowitz was not seen. But in general, it was a mix of political viewpoints that filled the room, a testament to how highly Fauske was regarded by people from all parts of the political spectrum.

Bryan Butcher, current CEO of Alaska Housing Finance Corporation, commented that Fauske would have loved to have seen the crowd that had gathered, as there were so many of his friends.

Gov. Bill and Donna Walker listen to a presentation about Dan Fauske.

Attended by about 250 Alaskans, the night was emceed by radio personality Dave Stieren, with additional remarks by Dan’s son D.J., and several others. A eulogy given on the floor of the U.S. Senate by Sen. Sullivan was played on a large screen.

Fauske was born in Fargo, ND and served in the U.S. Army during the Vietnam War. He met Elaine upon his return and they married and moved to Barrow, where Dan worked in construction. After earning his master’s degree, he was chief financial officer and chief administrative officer for the North Slope Borough. He moved his family to Anchorage and became the CEO and executive director of Alaska Housing Finance Corporation, and later the president of the Alaska Gasline Development Corporation under Gov. Parnell. He was not retained by Gov. Walker, who wanted to move the gasline in a different direction.

On the day of his passing, Sen. Dan Sullivan remarked on the Senate floor: “Dan has a big laugh and told great stories. He also had that rare ability to genuinely connect with everybody he met, and was able to speak the language of a businessman, a builder, a veteran, and a public servant. He spoke the language of a father, a husband, a friend, and a true Alaskan. In doing so, he gained the respect of politicians, state workers, military members — people from all across Alaska. If you wanted something done and done right, you asked Dan Fauske to help do it. People trusted Dan Fauske. I trusted Dan Fauske.”

Morris sells newspapers — Alaska included — to Gatehouse Media

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William Morris IV, William S. “Billy” Morris III, Susie Morris, Tyler Morris

JUNEAU, KENAI, HOMER PAPERS CHANGE HANDS

It’s the end of an era for Morris Communications.

The mid-sized family-run newspaper company, which started its Alaska publishing venture in 1969 with the Juneau Empire, has sold its newspaper division to Gatehouse Media.

The sale includes Alaska newspapers the Juneau Empire, Kenai Peninsula Clarion, and Homer News. 

William S. “Billy” Morris III told Must Read Alaska that selling the newspapers was one of the hardest decisions of his life, but the time had come for his family, since newspapering is an increasingly difficult business.

Deedie McKenzie will remain as publisher of the Juneau Empire and Peninsula Clarion. Billy Morris will continue as publisher of The Augusta Chronicle, the company’s flagship paper, and will oversee editorial-page policy for three Morris newspapers in Georgia.

The Morris family will continue to own the Juneau Empire building and property on Egan Drive, where the Juneau Empire is the anchor tenant.

The Alaska Journal of Commerce was not part of the sale, Morris said. A weekly business-focused publication, the newspaper was one of the few the company retained, while 11 of its other daily and non-daily newspapers, printing operations and other publications were let go. Morris will retain ownership of Alaska Magazine and the Milepost.

Bottom line: Morris is restructuring its business to focus on lifestyle and niche publications, broadband operations, property development and new business opportunities. The sale to Gatehouse, a publicly traded company, will be completed by Oct. 2.

[Read: Pressures mount on owner of Alaska Dispatch News]

MORRIS’ HISTORIC ROOTS IN ALASKA

The Juneau Empire was the first property purchased by Billy Morris when he took over the company from his father, William S. Morris Jr., who got his own start in media as a bookkeeper at the Augusta Chronicle, a paper he and his wife later bought. Billy Morris grew up with “ink in his veins,” and joined the company in 1956. He became president 10 years later. He had been to Alaska, fallen in love with the state, and so purchased the Juneau Empire in 1969 as his first acquisition.

Morris purchased the Kenai Peninsula-Clarion in 1990 during an era when the company was expanding its newspaper division and starting its digital ventures.

At one point Morris owned nearly 40 small and medium-sized newspapers from Florida to Alaska, but it has been shrinking its newspaper division for the past several years.

The daily newspapers in the sale include The Florida Times-Union (Jacksonville); The St. Augustine (Fla.) Record; The Savannah (Ga.) Morning News; The Augusta (Ga.) Chronicle; The Athens (Ga.) Banner-Herald; Lubbock (Texas) Avalanche-Journal; Amarillo (Texas) Globe-News; the Topeka (Kan.) Capital-Journal; Log Cabin Democrat (Conway, Ark.); Juneau (Alaska) Empire; Peninsula Clarion (Kenai, Alaska);    and Homer (Alaska) News. The commercial printing operation is West Texas Printing.

Morris III, chairman of Morris Communications, will remain as publisher of The Augusta Chronicle and will oversee editorial-page policy for the three Morris newspapers in Georgia. Morris said,

“Since 1929, the Morris family has had a great love and passion for journalism and the local communities that they serve. However, every newspaper company in America is battling trends and redirected advertising dollars, so it is necessary for newspapers to be part of a large newspaper group to build and maintain the necessary resources to compete. – William S. Morris III

“We are deeply grateful for the many friendships and business relationships we have enjoyed for these many years and look forward to the impact the next generation will make,” Morris said.

As part of the restructuring, all Morris Publishing Group magazines will be managed under Morris Media Network. Derek May, formerly president of Morris Publishing Group, will take a new leadership role as chief operating officer of the newly restructured company, the company said in a statement this morning.

William S. Morris IV, president and CEO of Morris Communications, said, “As the company transitions to the 3rd generation of leadership, we are enthusiastic about our plans to diversify our business holdings with print and digital communications, broadband and real estate development. We have found a wonderful buyer for the newspapers in GateHouse, as they are strongly committed to providing good community coverage for readers and effective solutions for advertisers. We will work closely with the new owners for a smooth transition over the coming weeks.”

MORRIS’ ALASKA HIGHLIGHTS

Morris has had the longest continuous ownership history of any communications entity in Alaska.

March 14, 1969:  Announcement of purchase agreement for Southeast Alaska Empire (later renamed Juneau Empire).

July 1985:  Construction began on new building for Juneau Empire.

February 1987:  New building for Juneau Empire opened.

Nov. 23, 1990:  Announced signing of letter of intent to purchase Peninsula Clarion, in Kenai, Alaska (purchase completed Dec. 13, 1990).

April 15, 1994: Susie B. Morris named acting publisher of Peninsula Clarion in Kenai, Alaska; subsequently named publisher.

Jan. 1, 1995: William S. Morris IV became assistant to the president of MCC, which included overseeing the daily operations of Athens newspapers, The St. Augustine Record and Juneau Empire.

Nov. 3, 1995: Purchased The Alaska Journal of Commerce, an Anchorage based business weekly. (“The” later dropped from flag.)

Nov. 15, 1996: Purchased Alaskan Equipment Trader, Anchorage (specialized publication).

November 1999:  Started Alaska Military Weekly, free nondaily newspaper distributed to military personnel throughout the state, with local, national and international military news.

Feb. 5, 2000:  Purchased Homer News (weekly).

Aug. 22, 2000:  Purchased  Alaska Star (weekly) in Eagle River.

August 2001:  Alaska Oil & Gas Reporter, a specialized publication, started in Anchorage as separate publication. (Had been section of Alaska Journal of Commerce).

October 2002:  Alaska Military Weekly became a section of the weekly Alaska Star.

October 2002:   Alaska Oil & Gas Reporter once again became part of the Alaska Journal of Commerce.

June 12, 2003:  Grand opening of Morris Alaska building in Anchorage (renovated after purchase in December 2001), housing Morris’ Anchorage publications and radio stations under one roof.

March 24, 2004: Purchased  Capital City Weekly, a Juneau-based free newspaper, and Boat Broker, a monthly magazine companion publication.

May, 2015: Sold radio stations in Alaska, California, Kansas, Texas and Washington to Portland-based Alpha Media. Sale included “KBEAR 104.1” (KBRJ-FM), “KOOL 97.3” (KEAG-FM), KHAR 590 AM and 96.7 FM, “MIX 103.1” (KMXS-FM), KFQD 750 AM and 103.7 FM, KWHL-FM 106.5 and KAYO 100.9 FM.

August 9, 2017: Sold 11 newspapers, The Florida Times-Union (Jacksonville); The St. Augustine (Fla.) Record; The Savannah (Ga.) Morning News; The Augusta (Ga.) Chronicle; The Athens (Ga.) Banner-Herald; Lubbock (Texas) Avalanche-Journal; Amarillo (Texas) Globe-News; the Topeka (Kan.) Capital-Journal; Log Cabin Democrat (Conway, Ark.); Juneau (Alaska) Empire; Peninsula Clarion (Kenai, Alaska);    and Homer (Alaska) News.

Heads and Tails: Campaigns, fundraisers, gaffes, and galas

PETE KELLY RUNNING: The luncheon for the Sen. Pete Kelly campaign in Fairbanks was packed at the John Deere dealership on Monday. In his remarks, Kelly said people had encouraged him to run for governor, and he surmised that Rep. Scott Kawasaki was thinking Kelly would actually do so when Kawasaki filed his letter of intent.

But Kelly told the overflow crowd that he is enthusiastic about the work of the Senate, and is geared up for a robust campaign.

Voters will have a choice between Kawasaki, who voted for an income tax, and Kelly, who led the charge to block the income tax. Good choice of different visions of the future.

KAWASAKI DOOR-HANGER GAFFE: Rep. Scott Kawasaki has a door flyer that he’s hanging on all the doors of his district, featuring him with a soldier in uniform standing behind him in the background. Not quite stolen valor, but close. And not quite a campaign flyer, but leaning that way. This postcard was paid for by the State Treasury. Did the officer give permission? Unlikely.

For sure, Rep. Tammie Wilson didn’t give permission. The look on her face in the adjacent photo is the same look Sen. Lisa Murkowski gives to President Donald Trump.

HEADING TO FAIRBANKS? An evening to remember is on the Must Read Alaska calendar for Aug. 18 — a joint fundraiser for the Republican Women of Fairbanks and the Alaska Republican Party. The event centers around the family histories of several Alaskans whose families helped build the state generations ago. Several potential gubernatorial candidates are among them: John Binkley, Ben Stevens, Bob Gillam, and declared candidate Mike Dunleavy (whose wife is Alaska Native). Also speaking is Libby Dalton Sloane on behalf of the legendary Mike Dalton.

EGAN READY TO QUIT? There’s a civil war brewing in the Democrat camp in Juneau as the aide for Sen. Dennis Egan, Jessie Kiehl, and Rep. Sam Kito are beginning to circle Sen. Egan’s seat. Word is Egan may not run again and also may not even last through next session as a senator, due to health reasons. If he steps down, the local Democrats would offer three names to the governor for his interim replacement. But if the governor doesn’t appoint Kito, what does that say about the sitting Democratic representative? And yet if he does appoint Kito to the Senate, what’s the political price? More on this later.

GLEN THOMPSON MULLS RUN FOR LG: Ketchikan civic leader Glen Thompson is said to be seriously considering a run for lieutenant governor.

He has been working with his close business and political affiliates to lay the groundwork and determine the feasibility of a possible campaign, Must Read Alaska has learned. A letter of intent could come as early as next week. We’ve heard Thompson is talking to a high-profile possible gubernatorial candidate who he’d form a ticket with, and our educated guess is that it’s Loren Leman. (At the 2016 Alaska GOP Convention, the two were seen talking at length.)

Thompson is a four-term, 12-year Ketchikan Gateway Borough Assemblyman who has served on the board of directors for Southeast Conference. He has been the Alaska Republican District 36 vice-chair since 2014, and is the former vice mayor of the Ketchikan Gateway Borough.

BEGICH HAS IDEA TO ‘FIX’ OBAMACARE: For the second time in as many months, the Alaska Dispatch News has published an opinion piece from former Sen. Mark Begich, which makes it look like he’s developing his campaign for the governorship. This time it’s on how he’d fix Obamacare. Readers of Must Read Alaska are welcome to provide their own punch line.

PenAir reorganizing, dropping some Outside routes

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One of the oldest family-owned airlines in the country is filing for Chapter 11 — a reorganization that should allow it to avoid bankruptcy.

Alaska-based PenAir says service in Alaska and Boston will continue unaffected, but the company’s Portland and Denver hubs will begin closing scheduled service over the next 90 days.

“The steps we are taking today will allow PenAir to emerge as a stronger airline, while continuing our focus on safe operations,” said PenAir CEO and Chairman Danny Seybert.

“We will be working with a restructuring officer to present a reorganization plan that will allow the management team to focus on our employees, safe operations, retiring debt and taking care of our customers.”

PenAir recently announced the termination of the Portland-area regional routes as part of an immediate cost-cutting plan in the Pacific Northwest. All but the essential Air Service (EAS) route between Portland and Crescent City, California, will be shut down effective close of business today, August 7. This impacts scheduled flight operations between Portland and Klamath Falls and North Bend/Coos Bay, Oregon and Redding and Eureka/Arcata, California.

PenAir announced the additional closing the Denver hub pending approval from the Department of Transportation.

PenAir is also filing a request with the federal DOT to end routes between Crescent City, CA and Portland and all regional routes served from its Denver hub. This will impact EAS routes operating between Denver and Liberal and Dodge City, Kansas and North Platt, Kearney and Scottsbluff, Nebraska.

Once approved, this transition usually takes 30 to 90 days until a new carrier can be secured in the market, the company said in a news release.

PenAir serves eight Alaska communities: Dutch Harbor, Cold Bay, Sand Point, King Salmon, Dillingham, St. Paul, St. George and McGrath; and three routes in the Boston area: Bar Harbor and Presque Isle, Maine and Plattsburgh, New York.

The company said that passengers in the Alaska and Boston markets can expect continued operations with no changes to scheduled flight service.

“Our employees are a key part of our success, and we are doing everything we can to keep our PenAir family intact,” said Seybert.

Passengers scheduled to fly out of Portland may contact the airline their travel was originally booked on, or PenAir at 800-448-4226.

PenAir was founded in 1955 by Orin Seybert in Pilot Point, Alaska. The airline is one of the largest regional airlines in Alaska and the Northeast U.S., and one of the largest operators of Saab 340 aircraft in the US. The company has 700 employees and serves 25 destinations.

Pressures mount on owner of Alaska Dispatch News

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For Alaska Dispatch News owner and publisher Alice Rogoff, evidence of extreme financial stress continues to accumulate. Legal filings now raise the question of whether Northrim Bank could end up the owner of Alaska’s largest newspaper.

A review of recent financial filings in the Anchorage Recording District shows that:

In April, Rogoff assigned her ownership interests in her publishing company, AK Publishing LLC (100% owner of Alaska Dispatch News LLC) in the event of default to Northrim Bank, her lender.

This appears to be putting the entire newspaper up for collateral.

The loan documents are not public, but it is a safe bet that the move was connected to either new cash flow financing or the restructuring of her older loan or loans.

In other words, it looks like Northrim Bank no longer views her enterprise to be creditworthy in its own right and is now moving to shore up its collateral in the event of foreclosure or bankruptcy.

For likely the same reasons, Northrim Bank also recorded a security interest in Rogoff’s income stream (allowance) from her marital agreement with billionaire David Rubenstein.

The personal financial details of Alice Rogoff was information her lawyers tried to suppress from open court proceedings during the July 12 oral arguments in a lawsuit filed against Rogoff by former her business partner, Tony Hopfinger. Rogoff’s attorneys attempted to have the media removed from the courtroom, as they said her personal finances could become a topic of discussion during the preliminary hearing. Judge Andrew Guidi refused to remove reporters observing the trial, which will continue in March.

[Read: Rogoff vs. Reporters: Outtakes from oral arguments]

Details of the marital income agreement are not publicly available, but legal records indicate that Northrim is reaching deeply into Rogoff’s personal assets and income streams in connection with her debt.

All of this squares with recent litigation over Rogoff  not paying important bills.

“STOP LENDING”: Rogoff’s former electrical contractor, M&M Wiring Service, has filed in the Anchorage Recording District a “Notice to Stop Lending” against various Rogoff publishing entities.

The May, 2017 filing puts Northrim on notice that if it advances any further funding on the project, it will be liable to the contractor unless the funds go toward paying off the claim — in this case an unpaid bill in the neighborhood of $459,000 to $509,000.

M&M in January was dismissed from the job of wiring the 59th and Arctic building that the Alaska Dispatch News is trying to move to, and where it has been installing a couple of large presses. M&M had helped dismantle one of the presses at the now-GCI building.

Rogoff hired another company — one to which she has other financial connections — to continue the electrical work at 59th and Arctic, but the trail of permitting grows cold at the end of March.

About half of the total bill to M&M has been paid, and the unpaid hundreds of thousands are now part of legal proceedings in which M&M has a lien on the building owned by Arctic Partners.

A separate lien from Precision Maintenance and Fabrication says Rogoff owes $160,000 for work evidently performed at the existing press location at the old Anchorage Daily News building. That building is now owned by GCI, but Rogoff’s press remains there.

STOP WORK: All construction work at the 59th and Arctic location came to a screeching halt on March 24. The only work that continued was when press people were in the building cleaning the presses — without a certificate of occupancy.

Here are some of the challenges the newspaper faces in the 59th and Arctic location:

  • Contractors have been put on ice while owner Alice Rogoff catches up with her bills.
  • M&M is suing Rogoff for hundreds of thousands in unpaid bills from 2016.
  • Her marital allowance seems not enough to keep up with the investments she must make to fund the operations and manage the move out of the GCI building to 59th and Arctic.
  • Without major retrofitting, the roof may not be able to support the air handling systems needed.
  • The gasline to the building is likely inadequate.
  • The 8-inch water main is too small.
  • It will need an expensive sprinkler system.
  • The facility is too small to store many rolls of newsprint on site.
  • Rogoff will either need to build a warehouse for paper on site, or arrange for storage at another location.
  • The parking lot is not large enough to meet city standards.
  • The location alongside the train tracks may be an ongoing problem for motion-sensitive press operations.
  • A big question is: Is this building suitable or has she erred fatally in signing 10-year leases and incurring debt to make it workable?

‘GO FUND ME’ FOR DISPATCH NEWS DEBT

With the bills and lawsuits piling on, is it time for a crowd-funding campaign to help retire the news mogul’s debt? Her “marital asset stream” seems insufficient to staunch the hemorrhaging of cash, and now it is encumbered by her bank.

Without an infusion of cash, and soon, it’s anyone’s guess how much longer the newspaper will continue to land on subscribers’ doorsteps.

Note to readers: Must Read Alaska moving to new server

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Keith Showalter, photographer.

BRIEF OUTAGE PLANNED TONIGHT

Dear Reader,

For a brief period on Saturday morning, Must Read Alaska will be offline, migrating to a higher-capacity cloud server with 50 percent more gigabytes, a bit more ram, and other fine attributes that ensure faster loading times and fewer “503 errors” for visitors.

It’s been a great 14 months since Must Read Alaska took the Monday morning newsletter to the next level and added a daily news site online.

We’ve gone from a borrowed server to a “cloud-based” server, and now need something even bigger.

For the curious reader, Must Read Alaska averages over 95,000 visits per month now, and has for several months. That means at times, the traffic gets all jammed up. It is a good problem to have, but also an important problem to resolve.

So if you’re an insomniac, or if you’re on the other side of the world, you’ll discover this web site not working in the wee hours of Saturday morning. We hope, and we expect, it will be a mercifully short outage.

Thank you, everyone, for reading, for your comments, and for your interest in a making Alaska everything it can be. Meanwhile, be sure to sign up for the Monday morning newsletter (right side of page). It’s a great read, and 10,000 plus Alaskans receive it every Monday.

– Suzanne Downing
MRAK Editor and Publisher