Shee Atiká Reflects

Precious Land

What ANCSA gave Shee Atiká was a land settlement comprising 23,000 acres of forest on Admiralty Island, 3,000 acres at Katlian Bay near Sitka, and the Alice and Charcoal Islands adjacent to Sitka Rocky Gutierrez Airport. In its early years, Shee Atiká’s primary source of revenue stemmed from its 49 percent ownership in Atikon Forest Products. The 50 percent owner, Koncor, was a consortium of village and urban corporations including Yak-Tat Kwáan, Chenega Corporation, Natives of Kodiak, and Ouzinkie Native Corporation. Atikon would go on to purchase Shee Atiká’s Cube Cove timber, creating net operating losses. Quaker Oats took that liability off Shee Atiká’s balance sheet, providing cash to operate while paying down debt and making distributions to shareholders.

Atikon proceeded to log the timber at Cube Cove after a lengthy legal battle with environmental groups that went all the way to the US Supreme Court. Shee Atiká ultimately won the $20 million legal battle, but it became clear that any future logging or development would be met with the same challenges, given that the Cube Cove land was in the middle of Admiralty Island National Monument.

In 2010, the Shee Atiká board of directors decided to survey shareholders to see if they would be in favor of selling the Cube Cove land, using the proceeds to generate revenue rather than wait decades for trees to grow so the timber to be logged again. The board traveled to various communities explaining the issues with the Cube Cove land and answering questions. Survey results showed most shareholders favored a land sale. Shortly thereafter, the board voted unanimously to work with the US Forest Service to sell the land back to the federal government.

In 2016, the US Forest Service bought back one-fifth of the Cube Cove property, or 4,463 acres. As more money became available through the Land and Water Conservation Fund, the final segments were finally purchased in 2020. Liquidating the land grant brought the corporation more than $18 million, or slightly less than $800 per acre. It is not a transaction that Shee Atiká, or any Native corporation, is likely to pursue again lightly.

“Land is precious and personal to our shareholders,” Castro says, “and the decision to sell upset a large group of shareholders and created some changes to the board of directors. Today, our board is committed to never selling ANCSA land, to holding on to what we have, and preserving our land for generational use. And our next goal is how we acquire additional land.”

Nationwide Reach

Castro joined the corporation in 2019. Initially brought on to start a subsidiary called Alaska Northstar Resources, specializing in cloud integration and other information technology services, Castro quickly ascended to the role of CEO by April 2023. Under his leadership, Shee Atiká has seen significant growth, particularly in government contracting, with expected contracts exceeding $100 million in 2024. He acknowledges that growth would not have been possible without the cash generated from the Cube Cove sale.

“Our entire team has been instrumental in this growth,” Castro notes. “We have revived the culture of the organization and put people in the right spots. The strong team we’ve built has led to our success.”

Shee Atiká’s growth strategy has focused on diversification and expansion across various sectors. Castro’s first subsidiary, Alaska Northstar Resources, currently has 170 geographically dispersed employees providing information technology government contracts. Shee Atiká Enterprises, another subsidiary, specializes in medical studies and research, including COVID-19 related contracts.

In 2021, Shee Atiká acquired Lakota Solutions, a logistics and maintenance company primarily serving the US Air Force and Army. Lakota Solutions has grown to employ up to 170 people across the southeastern United States and New York. Additionally, Shee Atiká launched American Technical Solutions, a manufacturing and fabrication company originally based in North Carolina.

“We try to be very strategic in how we’re growing, so we’re diverse in every industry and our customer base is very diverse,” Castro says. “The worst thing to do when you’re starting out new and building this up is to win a bid and not execute. Reputation is all you’ve got, and you have one shot at it, so we want to execute at a very high level, and that’s not always a quick answer. We try to go after smaller contracts so we do a really good job, and the big ones will follow.”

Plugged Into Community

Beyond government contracting, Shee Atiká has ventured into tourism again. The corporation is partnering with the City and Borough of Sitka to develop Sheet’ká Treetop Adventures, an adventure park featuring an aerial ropes course set among Sitka’s giant trees. This venture includes plans for pavilions, cultural events, trails, and use of the water frontage.

“We want to be better plugged into our communities, and tourism is a great way to do that and connect with our local shareholders,” Castro says. “We believe in hiring locals and shareholders where we can and encouraging leadership to engage in the community. Shee Atiká has been making more of an effort in recent years, so we’re really leaning forward on community engagement and involvement showing that we’re here, we’re part of the community.”

Shee Atiká remains committed to being a good community steward. The corporation’s office in Sitka serves as a hub for board meetings, shareholder services, and accounting for the subsidiaries, ensuring a continued presence in its hometown despite the geographically dispersed shareholders and workforce.

“Our shareholders are pushing us to do better while holding us up. Our traditions are strong in family: our shareholders and our corporate employees are family,” says Garrity.

In 1993, Shee Atiká established the Shee Atiká Fund Endowment, a trust fund designed to provide consistent annual distributions to shareholders. Five years later, the Shee Atiká Benefits Trust was created to offer educational and funeral benefits to shareholders. The establishment of both funds demonstrated financial foresight that has enabled the corporation to distribute approximately $86.2 million to shareholders over the years.

Hitting Stride

A significant long-term project for Shee Atiká is the state’s development of Katlian Bay Road. This road will connect Halibut Point Road to Shee Atiká’s land in Katlian Bay. Its completion, some ten years in the works, is crucial for opening land for economic development, Castro says. Currently, access to the land is limited to planes or boats. The road is expected to be fully connected within the year, with plans for bridges and additional infrastructure.

“Our intention is to never sell ANCSA land again,” Castro states. “We are committed to holding on to what we have and preserving our land for generational use.”

In recent years, Shee Atiká’s board and staff reevaluated the mission, vision, and values that are central to its culture and overall operations, Castro says. They begin each meeting by revisiting them and reading them aloud. The vision is, “Our people thrive, prosper, and are self-sustaining. We inspire and hold each other up through meaningful connections to our land, ocean, traditions, and heritage.”

“We practice what we preach,” Castro asserts. “Our board adopted these principles, and we integrate them into every aspect of our work. This commitment is reflected in our strategic decisions and community engagements.”

As Shee Atiká looks to the future, it remains focused on expanding government contracts, diversifying revenue streams, and contributing to the economic development of Sitka and its shareholders, Castro says. The team hopes that the corporation’s dedication to preserving and acquiring land, coupled with its innovative business ventures, ensures that Shee Atiká will continue to be a pillar of its community in the near future and for generations to come.

Karpstein says, “Over the next five years, we’re focused on creating and delivering value to our shareholders and communities through strategic business choices and nurturing our cultural heritage in everything we do. Our shareholders play a crucial role in preserving our cultural lifestyle, guiding our land use decisions, and ensuring our lasting presence for generations as the keepers of the torch. By fostering honest and transparent relationships, we’re laying a strong foundation for Shee Atiká’s next fifty years.”

“At the end of the day, we are committed to our shareholders,” Castro says. “Shee Atiká has had a rough go of it in recent years, and I feel like we’re just now hitting our stride, getting a lot of forward momentum, and we want to keep building on our momentum moving forward and not settle. We are always trying to learn, look at trends, look at market segments. We are always learning. I think it’s important as we keep getting bigger.”