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http://www.news-miner.com/Stories/0,1413,113~7244~2869669,00.html
Downsizing Eielson an economic blow for Interior
By DIANA CAMPBELL
, Staff Writer
When Realtor Debe Reischke heard the news about the reductions in force at Eielson Air Force Base, she couldn't help but remember the "For Sale" signs that sprouted up around the Interior in the early 1980s.
Construction on the trans-Alaska oil pipeline was over. The economy slumped and people left. She remembers empty houses on every block.
But if the Department of Defense relocates more than 2,800 Air Force personnel and their 3,300 dependents--about 7 percent of Fairbanks North Star Borough population--she hopes it's not time to dust off those sale signs.
"If this actually happens, it would totally affect the economy here," said Reischke, who works for Somers & Associates.
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Nerves are already twitching, she said. North Pole has enjoyed a growing real estate market, partly spurred by a strong military presence. But on Friday a client wondered if she should list a house at the lowest price possible in order to sell it fast before others hit the market.
Interior business people expressed emotions similar to Reischke's--first surprise, then concern and finally hope that it will not happen. The base could be spared as the process is completed over the next six months. But if Eielson is moved to "warm" status with just a few hundred personnel, it's bad economic news, they said Friday.
The base had a $374 million economic impact last year, with a payroll of $133 million for 2,877 active-duty personnel and $27.8 million for 428 civil service employees, according to Eielson numbers.
Eielson officials estimated that another $36.7 million was generated by 971 secondary and indirect jobs. Construction, services, health care, grocery, education and housing contracts off base brought in another $122.7 million.
The Defense Department proposal would reduce active military jobs at Eielson by about 2,800 and cut another 319 civilian jobs. The realignment would cost $141 million and save $229 million a year.
"It practically puts the base on caretaker status," state labor economist Brigitta Windisch-Cole said.
The civilian service jobs on the list include those who run the utilities, work in family and social services, and housing, she said. Off base the economic ripple would go into retail, hospitality, leisure, medical and other Interior services and businesses.
"It's going to have a big impact for Alaska in general," Windisch-Cole said.
The hit might be softened with the permanent installation of the Stryker Brigade at Fort Wainwright, adding 1,500 troops. But the soldiers have a different economic demographic than Eielson military, she said. Soldiers tend to be younger and single, while the Air Force sends up older members with families. Their tours of duty tend to be longer.
"They've been more ingrained into the community," she said.
Local businesses would feel the pinch.
Reischke's husband, Mark, is the manager at Petro Star's North Pole refinery, where almost a third of the 200,000 gallons produced daily goes to Eielson. He said the company has a contract to supply 19 million gallons of jet fuel a year.
The base is home to 36 F-17 fighter planes and A-10 Warthogs.
How much the company would lose if the cuts take place is unknown. The Alaska Air National Guard's 168th Air Refueling Wing would stay at Eielson under the proposal.
Currently that's about 567 people and eight tankers.
"Those refueling tankers use a lot of fuel," he said. "We'll just wait and see what happens."
Steve Denton was also taking a watchful approach. The vice president of business development at Usibelli Coal Mine in Healy said the company sent 180,000 tons of coal to Eielson for its power plant last year, representing 12 to 14 percent of sales.
"We really don't know what the impact would be," Denton said. "There could be scenarios where there could be no impact. I don't know how much the base can be cooled down and stop taking heat in the winter."
R&D Environmental, a local company, won an Eielson contract last year to collect refuse and operate recycling efforts on base after the Air Force privatized those services to save money. Dan Schwietert, the company's operation manager, was surprised to hear the news, but wasn't going to fret yet.
"I worry about things when they happen," he said. "We adjust and handle situations and keep a smile on our face."
There are 89 statewide contractors who provide services for the base. Forty-eight of those are based in the Fairbanks area. All have a financial stake in what the military does.
Whatever happens will be interesting to watch, said Angie Hawk, manager of Hawk's Greenhouse. Her North Pole company won a contract to supply the base's flowers this summer. Businesses bid on the contract yearly.
"Anytime you have that large of population leaving, it's going to affect every business," she said. "There are vast implications for the state."
North Pole Mayor Jeff Jacobson said the impact of such a loss would be hard on the city. Its economy is driven by the presence of two petroleum refineries, Eielson and Fort Wainwright.
Eielson's families like to get off base and go to North Pole restaurants to eat or shop, he said.
"A lot of our revenues are driven from our sales tax," he said. "I'm concerned immediately for that.
"I'll be fighting for North Pole and fighting for Eielson," he said.
Diana Campbell can be reached at 459-7523 or dcampbell@newsminer. com.
Planned Eielson force reduction sparks shock and worry
http://hosted.ap.org/dynamic/stories/A/AK_BASE_CLOSINGS_ALASKA_AKOL-?SITE=AKFAI&SECTION=HOME
FAIRBANKS (AP) -- First came astonishment, then worry and finally, for some, the hope that Eielson Air Force Base would remain the same economic powerhouse Fairbanks and North Pole residents have come to rely on.
Eielson, 30 miles southeast of Fairbanks and even closer to North Pole, would lose its fighter squadrons, including airmen who fly F-16s Fighting Falcons and A/OA-10 Thunderbolt II aircraft, under a base closure and realignment plan announced Friday by the Pentagon.
"I'm shocked. I'm amazed," said Darice Ackerson, a Santa Claus House worker whose husband is stationed at Eielson. "I live out there and knew nothing about it."
Under the plan, Kulis Air National Guard Station in Anchorage would be closed, with its mission, personnel and aircraft transferring to nearby Elmendorf Air Force Base. As part of the proposed shake-up, Elmendorf also would be realigned as a joint base with Fort Richardson.
Before any changes can take place, the proposals must be approved or modified by a federal base closing commission by Sept. 8, then endorsed by Congress and President Bush.
Under the proposed changes, Alaska would lose 4,818 military or civilian jobs. Of those, almost 3,000 would come from Eielson, which would remain open but realigned to a "warm base" position with just a few hundred personnel. About 3,500 dependents also would be affected.
The loss represents more than 7 percent of the Fairbanks North Star Borough population, although the impact could be offset by the Army's plan to locate a Stryker brigade at nearby Fort Wainwright, adding 1,500 soldiers, officials said.
Still, some locals are fretting.
"If Eielson closed, it would devastate our business in North Pole," said Ken Pleasants, who helps manage the three Interior Wendy's franchises and counts anywhere from one to three airmen's children among every 10 of his employees.
Borough school district officials said troop reductions could force the closure of three schools - Eielson Junior/Senior High School and Anderson and Crawford elementaries. The district recently assumed ownership from the federal government of Eielson and Anderson.
"This concerns us a great deal," Superintendent Ann Shortt said. "If we're closing schools because we don't have enough students, that's going to have a big impact."
Realtor Debe Reischke said the news is already making homeowners nervous in North Pole, which has enjoyed a growing real estate market, partly spurred by a strong military presence. On Friday, a client wondered if she should list a house at the lowest possible price to sell it fast before others hit the market.
"If this actually happens, it would totally affect the economy here," Reischke said.
Her husband, Mark Reischke, manages Petro Star's North Pole refinery, where almost a third of the 200,000 gallons produced daily goes to Eielson. He said the company has a contract to supply 19 million gallons of jet fuel a year.
How much the company would lose if the cuts take place is unclear. The Alaska Air National Guard's 168th Air Refueling Wing would stay at Eielson under the proposal.
"Those refueling tankers use a lot of fuel," Mark Reischke said. "We'll just wait and see what happens."
Also keeping an optimistic eye on the future was Eielson school principal Larry Martin. He's taught on base for 16 years and has heard talk of base closures and realignments before.
"I'm not going to get excited until the September deadline," he said. "We're just going to go about business as usual and hope for good news."