437 



It is difficult to say exactly what would happen pricewlse to homes In Sitka. 

 The current market is in balance with a slight pressure to Increase rents and 

 house prices. House prices have not significantly Increased since September of 

 1981. 



If 20% of the basic industry was knocked out I would guess for the first 6 

 months no price change would occur. On the other hand, the selling of homes 

 would be virtually stopped. Buyers would wait and see. 



As seller's were pressured to sell, prices could drop between 15 and 30X 

 perhaps over a 2 year period. If Jobs are created 1n other sectors of the 

 economy the mid to lower range of this drop may be realized. If panic sets In 

 and people who do not need to relocate put their homes on the market out of 

 fear of job loss or future equity loss, the rate of depreciation could 

 accelerate as it had in Juneau. A 20% decline 1n property values could wipe 

 out many Sitkan families' financial stability. 



The loss of a home or equity could be devastating to family financial plans. 

 Bankruptcy is very difficult emotionally as well as financially. The passage 

 of Senate Bill No. 346 may precipitate this type of catastrophic Impact on 

 Sitka and in other communities throughout Southeast Alaska. 



INTEGRITY IN BUSINESS 



Southeast Alaska has a unique beauty where mountains meet the sea in endless 

 shorelines. The heart of the people is typical of many areas of rural 

 America. Most of the population are settled in small insular communities with 

 no direct load linkage to other towns. Isolated in a way, the region is very 

 coherent in its hospitality and the way it conducts business. Our business is 

 not unusual when we will commit the resources of our firm for amounts In excess 

 of $10,000 based on a personal agreement over the phone. Generally, the people 

 In the region are honest, hard working people who consider a deal is a deal. 



Due to our remote location, the hardship of our weather, the lack of adequate 

 transportation linkage, we rely heavily on government services and help. 

 However, we work hard and endure the hardships of our environment at times 

 because of this chosen life-style. By living In a frontier land of wilderness 

 and opportunity, we have grown to honor this age old custom of trust in 

 conducting our affairs with each other and with the government. It is apparent 

 to many of us that the government is looking to pull out on a deal that had 

 been made in the past relative to the timber sales contracts with the pulp 

 mills and relative to the amount of land designated for wilderness areas. We 

 feel the deals have been made, the process is in place which allows us to enjoy 

 the life-style which we are used to. We therefore ask out of a sense of 

 fairness that the status quo be continued. 



We are also concerned about the fiscal responsibility of government in meeting 

 its needs and managing its resources properly. For these reasons we endorse 

 Senate Bill No. 237 proposed by the Alaska delegation as being a prudent way to 

 approach management of the Tongass Forest. For reasons cited above which we 

 feel could cause economic hardship and devastation of our life-style, we oppose 

 Senate Bill No. 346. 



Thank you for your consideration. 



HORAN, CORAK AND CO. 



