FEDC asks borough for $100,000 increase as it takes on regional ARDUR role

Jomo Stewart, president and CEO of the Fairbanks Economic Development Corporation, told the Fairbanks North Star Borough Assembly Finance Committee that FEDC has been designated the Alaska Regional Development Organization (ARDUR) and is asking the borough to boost its annual grant from $350,000 to $450,000 to cover new federal responsibilities and program costs.

Stewart said FEDC will act as project manager for tasks now expected of an ARDUR, including producing and updating the five-year SEDS (strategic economic development strategy) and managing federal grant applications. He told the committee that FEDC managed the 2025 SEDS update, conducting seven of 14 roundtables, four supplemental interviews and a public survey, and released the SEDS notes on June 27.

The funding request reflects higher projected costs tied to FEDC's expanded role and certain one-time expenses, Stewart said, citing a higher fundraising target for the Alaska Defense Forum and the added cost of directly administering SEDS and the annual economic report. "We have built our budget around flat funding of $350,000," he said, "and I'm asking for the increased funding. I recognize that it may not be possible, but I'm not going to leave without asking." He added the board directed him to request the increase.

Stewart described federal grant opportunities he said are "imminently fundable" by the Economic Development Administration (EDA), naming SEDS updates, an annual economic report and the small-business accelerator as likely candidates. He estimated EDA review timelines at roughly three to nine months and said FEDC is tapping some reserves and seeking additional municipal and private support to avoid delays in delivering contracted work.

Assemblymembers pressed Stewart on financial details. Representative (Assemblymember) Wilson asked when the $100,000 increase was determined and how much FEDC had in reserves; Stewart said reserves are "not that much," roughly in the $100,000 range. Stewart said his board was prepared to use some reserves to avoid delaying deliverables while pursuing federal match money and other funders.

Several members asked how historically the borough funded these functions. Stewart said the borough previously provided flat funding that ranged between $300,000 and $400,000 over the years; he showed an inflation-adjusted chart demonstrating the erosion of buying power under flat funding. He also noted FEDC's private fundraising has been uneven and that the organization is working to increase corporate support, using the Defense Forum as a major fundraising effort.

Why it matters: The borough's decision on the increase will determine whether FEDC can staff up and cover ARDUR responsibilities while pursuing federal grants that often require match funding and extended administrative capacity. Stewart framed the ask as necessary to both meet existing contract deliverables and equip FEDC to compete for federal funds.

Next steps: The Assembly will consider the borough's contribution during upcoming budget work sessions and the public budget hearings this spring.