Aleut's Adak gamble could pay off big for shareholders, region

The Aleut Corp. is doing fine, according to company officials.

Its commercial office buildings in Anchorage are fill of tenants and making money, according to president Vince Tutiakoff Sr. A $6 millionplus investment portfolio turned in a record performance last year, though this year represents a challenge.

In its business ventures, an innovative initiative in the federal facility management service business has been such a winner that the company, SMI International (formerly Space Mark Inc.) has graduated from its preferred minority status.

SMI now competes for business on a straight commercial basis, and the competition is tough.

So why is the Aleut Corp. taking on a huge gamble, a venture to convert a billion-dollar closed naval base far out in the Aleutian Islands into a profitable commercial support base and, even more daring, a new community? The risks are big The Aleut Corp., with $2.4 million in earnings last year, has already invested $2.5 million in various expenses related to Adak, although government contracts with Aleut Corp. subsidiaries have recouped some of that. Still, it could easily become a costly white elephant