AIDEA can assist Alaskans through its ability to develop, own (in whole or in part) and operate basic installations and facilities within the state, especially those which advance the prosperity of a region. Roads, ports, airports, infrastructure for tourism destination facilities or other public use facilities which are essential for the economic wellbeing of an area and are able to produce adequate revenues to repay the bonds sold to finance the project are considered eligible projects.
Detailed information regarding the scope and characteristics of the project is submitted to the Authority for review. Staff and legal counsel determine whether or not the project is eligible and satisfies the development criteria for AIDEA participation and if the project can meet tax-exempt financing status under the U.S. Internal Revenue Code.
AIDEA Statutes 44.88.900 define a project as:
- A plant or facility used or intended for use in connection with making, processing, preparing, transporting, or producing in any manner, goods, products, or substances of any kind or nature or in connection with developing or utilizing a natural resource, or extracting, smelting, transporting, converting, assembling, or producing in any manner, minerals, raw material, chemicals, compounds, alloys, fibers, commodities and materials, products, or substances of any kind;
- A plant or facility demonstrating technological advances of new methods and procedures and prototype, commercial applications for the exploration, development, production, transportation, conversion, and use of energy resources;
- Infrastructure for a new tourism destination facility or the expansion of a tourism destination facility;
- A plant or facility, other than a plant or facility described in (2) of this paragraph, for the generation, transmission, development, transportation, conversion, or use of energy resources;
- A plant or facility that enhances, provides for, or promotes economic development with respect to:
- community public purposes,
- technical innovations,
- prototype commercial application of intellectual property,
- A plant or facility used or intended for use as a federal facility, including a US military, National Guard, or US Coast Guard facility;
- Infrastructure for an area that is designated as a Military Facility Zone.
The following are the most relevant criteria for obtaining the Authority’s participation in the project:
- The project and its development under AIDEA Statutes 44.88 must prove to be economically advantageous to the state and to the general public welfare and must contribute to the economic growth of the state;
- The project applicant is financially responsible;
- The project is economically and financially feasible and able to produce revenue adequate to repay the bonds or loans with which it is financed;
- The project will provide for any related increased demand on public facilities.
- The project will provide or retain employment reasonably related to the amount of financing by the Authority, considering the amount of investment per employee for comparable facilities, and other relevant factors;
- The scope of the project is sufficient to provide a reasonable expectation of benefit to the economy of the state;
- The project is in compliance with applicable law; and
- Issuance of the bonds is not expected to affect adversely the ability of the state or any political subdivision of the state to market other bonds. The Alaska State Legislature must approve all bond issuances over $25 million.
Analysis and Decision-Making Process
AIDEA has developed a four-phase process by which it can determine whether a potential project meets AIDEA’s mission and strategic initiatives and whether it is feasible. All four phases are designed to ensure that the project under consideration meets specific criteria and is evaluated to the extent that the project can move through the various “gates” of the decision-making process.
The chart below outlines the type and level of due diligence that the AIDEA staff and Board will expect every proposed project to undergo on its path to a final decision.
There is a broad spectrum of private and public purpose projects that are eligible under AIDEA's statutes. For more information regarding project development and financing contact Mike Catsi at (907) 771-3060.