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

The Aleut Corp. is doing fine, according to company officials. The Aleutians-area Native regional corporation is profitable - not wildly so, but steady - and has been for years.

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