April 19, 2012
Fellow Shareholders:
The past year, 2011, has been a very poor year revenue wise for SNA. Our Chairman and CEO are addressing these issues in their reports.
SNA original land leasing program produces a continuing source of funds. These are long term lease adjusted annually. Unfortunately several years ago the lease were changed to higher prices with shorter terms. Since then SNA has not been able to lease any more leases.
SNA has thousands of acres of land just sitting idle. Much of this land is ideal for home sites and recreation land leases which would generate low cost, low risk revenue. By doing nothing a great opportunity to earn money and shareholder dividends is lost.
Another opportunity we need to act on is the building and rental of cabins on a daily basis. The Kachemak Bay area gets a lot of visitors that would like to stay longer if they could rent a cabin for a few days.
This is something that is best done as a partnership with a person or company that specializes in recreation activities.
Local small boat tours of the area bays and bays water taxi service may be something SNA may want to do during the summer months.
The rock quarry along Seldovia Bay has high quality armor rock. SNA along with Cook Inlet Region Inc. should do more to market this valuable resource. SNA lands and waterfront has a lot of potential that is not being utilized.
In any event it is time for SNA to start productively using its land as a source of revenue and dividends.
Fred H. Elvsaas, SNAI President
