The Newsletter

Big changes ahead for the San Juan Islands.

Alaska Northwest Properties shareholders have approved a merger with Under the Radar, a company formed recently by Jim Jannard, a major San Juan landowner. The merger makes Jannard owner of Speiden Island, one of the largest privately owned islands in the San Juans.

Jannard also is the president and chairman of sunglass and goggle maker Oakley.

It is a complicated deal. ANP merged with Under the Radar, with the new company acquiring the island. Other assets - property in Alaska, Hawaii and the San Juans plus the $20 million payment for the island - are spun off into a new limited liability corporation.

Michael Shimasaki, ANP president, said the assets will be liquidated and paid to shareholders.

There were no details on Jannard's plans for Speiden. A proxy statement, however, said Under the Radar wants to retain an "open space" tax designation. That allows the land to be taxed at a much lower rate than its full assessed value, but it remains undeveloped land.

ANP shareholders will get about $415 a share. Ronald Cosgrave and Bruce Kennedy, former Alaska Airlines officials and major ANP shareholders, stand to benefit the most. Cosgrave is expected to receive about $5.8 million while Kennedy gets $1.8 million.

The likelihood of spring flooding is increasing.

The state's huge snowpack continues to point that way. The snowpack is at record levels in some places and more than 150 percent of an average year statewide.

The Washington Basin Outlook Report, the main tool of forecasting water supplies for the state, says snowpack varies from 101 percent of normal in the Nooksack basin to 206 percent of average in the Cedar River area.

A snowpack measuring station at Paradise Park on Mount Rainier has already exceeded the previous record for seasonal water content of 84.3 inches. Snowpack usually accumulates at Paradise until May 1, so there is more to come.

While flooding is likely, a good water year for irrigation and other uses is likely as well. Summer stream flows, important for agriculture in places like the Yakima Valley, are forecast to be well above normal.

Big changes in the oil industry in Alaska.

It is a shrinking business as the flow of oil slows and revenues begin to decline. Alyeska Pipeline Service, one of the major employers, said late last week it would trim 480 jobs and shift some workers from Anchorage to Fairbanks.

The cuts represent a fifth of the company's 2,230 person work force. Alyeska is owned by seven major oil companies and runs the 800-mile Alaska pipeline and the tanker port at Valdez.

BP Exploration also said it will cut an unspecified number of jobs this year.

The trade deficit might be rising, but look for exports to continue to drive the economy.

Most exporters have restructured, cut costs and improved productivity to remain competitive. A strong dollar probably will not have much impact. Why? It has gained mainly against the yen and the German mark, not all currencies.

Keycorp, with a major presence in this market, was ranked the nation's top small-business lender for all commercial loans under $250,000, according to a national study by the Small Business Administration Office of Advocacy.

Key was recognized as the top lender in loans of less than $100,000. It also ranked first in customer satisfaction among banks named in a survey published in Fortune magazine.

Most business travelers will book their trips from their personal computers in two years, according to a recent American Express survey of 200 corporate travel executives. This summer, American Express and Microsoft will introduce software that will make it possible.

The software, code-named Rome, will allow travelers to book airline flights, hotel rooms and rental cars from a PC. Rome will be linked to American Express Expense Manager software.

According to recent reports, nearly 200 corporate customers have already signed up. ----------------------------------------------------------------- The wired world expanded this week when Singapore became the first nation to launch an international online campaign to promote trade and attract investments. Singapore's new Internet site at www.gov.sg/ will serve as a one-stop information source for businesses and individuals seeking opportunities in the Asia-Pacific region.