214 • Chapter 3 Kuiu Timber Sale FEIS 

3.15 Socioeconomics 

Approximately 70,600 people live in towns, communities, and villages 

located on islands and coastal lands of Southeast Alaska. Federal lands 

comprise about 95 percent of Southeast Alaska, 80 percent within the 

Tongass National Forest. Southeast communities are within or 

adjacent to the Tongass and are largely dependent on the Forest to 

provide natural resources for commercial fishing, timber harvest, 

recreation, tourism, mining, and subsistence. 

River and stream systems on the Tongass contribute to a healthy 

salmon fishery for commercial and sport fishing. About one third of 

the timber harvested in Southeast Alaska is from the Tongass. 

A summary of the community of Kake is provided below, and detailed 

information of all local communities can be found in the 

Socioeconomics and Subsistence Resource Reports available in the 

planning record. For a complete discussion of community descriptions 

and the regional economy, please see the Forest Plan EIS, Part 2, 

Chapter 3. 

3.15.2.1 Kake 

Kake is the nearest community to the Project Area and is most likely 

to be affected socially and economically by the project in terms of 

subsistence, recreation, tourism, and general local use of the area. 

Other nearby communities include Petersburg, Point Baker, Port 

Protection, and Wrangell. The information gathered for the community 

profiles came from the Alaska Department of Commerce Community 

and Economic Development web page (ADCCED 2004). 

The potential impact to nearby communities with processing facilities 

that may utilize the timber will depend on many elements associated 

with the competitiveness and efficiency of individual operations. Such 

factors are dependent upon private business decisions as well as 

market conditions for forest products. The Forest Service cannot 

predict which firms will successfully bid for a timber sale, thus 

potential community benefits relating to jobs and incomes associated 

with a sale will not be predicted specifically, but in a regional 

summary. 

Data collected at the census area level may not reflect specific 

community trends in Kake but is useful in subdividing the region into 

smaller study areas. Where it is possible, community-level data has 

been displayed. 

Kake is a Tlingit village and was the first Alaska Native village to 

organize under federal law in the early 1900s. The Organized Village 

3.15.1 

Introduction 

3.15.2 

Social and 

Economic 

Setting 
Socioeconomics 3

Kuiu Timber Sale FEIS Chapter 3 • 215 

of Kake (OVK), a federally recognized tribe, is located in the 

community and has a tribal membership of 480. Traditional customs 

are very important to the community. Kake residents are dependent 

upon subsistence opportunities as economic supplements. Subsistence 

is covered in Issue 2 - Deer Habitat and Subsistence Use in this 

chapter and in the Subsistence Resource report available in the Kuiu 

Timber Sale planning record. 

The population in Kake grew steadily over the last century until 2000, 

when the population began to decline. In 1990 and 2000, the 

population of Kake was reportedly 700 and 710, respectively. By 2003 

the population had fallen to 682, and by 2006 the population was 

estimated to be 598, which is a 16 percent decline in six years. The 

population of the community is nearly 75 percent American Indian 

(Alaska Native) with the remaining residents mostly White American. 

In Kake, the city, school district, Organized Village of Kake (OVK), 

and Southeast Alaska Regional Health Consortium (SEARHC) are the 

largest employers. Approximately 32 percent of the employed 

population of Kake work for a government entity, about 60 percent are 

privately employed, and the remaining are sole proprietors. Fishing 

contributes considerably to the economy. Sixty-seven residents hold 

commercial fishing permits. The non-profit Gunnuk Creek Hatchery 

has assisted in sustaining the salmon fishery. 

Kake’s economy was hit hard after 2003 when two of their major 

employers, Kake Tribal Logging and Timber and Kake Foods, 

virtually eliminated their workforce. Kake Tribal reduced its number 

of jobs by 97 percent while Kake Foods reduced its employment by 90 

percent. Kake has since been deemed a “distressed community” by the 

Denali Commission. According to the commission, a distressed 

community is one that meets the following criteria: 

• Per capita market income not greater than 67 percent of the U.S. 

average: and 

• Poverty rate at 150 percent of the U.S. average or greater: and 

• Three-year unemployment rate at 150 percent of the U.S. average 

or greater; or 

• Twice U.S. poverty rate and either (1) or (3) above. 

Based on 2003 data, the Denali Commission estimates Kake’s average 

market income as below the threshold level and estimates that more 

than 70 percent of residents aged 16 and over earn less than the 

threshold. 

Recreation and tourism opportunities are increasing in some parts of 

the region but it appears some further development and infrastructure 

is needed to strengthen these sectors and increase higher wage 
3 Environment and Effects

216 • Chapter 3 Kuiu Timber Sale FEIS 

employment. Kake is currently pursuing tourism income and 

opportunities, but has not experienced the increase in tourism that 

larger communities in the region have. 

3.15.2.2 Other Communities 

Point Baker and Port Protection are on the northwest end of Prince of 

Wales Island, approximately 40 miles southeast of the Project Area. 

According to a 2005 state demographic estimate, Point Baker had a 

population of 22 and Port Protection had a population of 54. 

Petersburg is situated on the northwest shore of Mitkof Island at the 

north end of Wrangell Narrows, approximately 35 miles east of the 

Project Area. The 2005 population estimate for Petersburg was 3,155. 

Wrangell is on the northern tip of Wrangell Island, approximately 60 

miles southeast of the Project Area. The 2005 population estimate was 

1,974. The community began as an important Tlingit village primarily 

because of its proximity to the Stikine River. Today timber, fishing, 

and fish processing dominate Wrangell’s economy and tourism has 

been a growing economic sector in recent years. 

Meyers Chuck is located on the Cleveland Peninsula approximately 80 

miles to the southeast of Kuiu Island. Most of use is by commercial 

fishermen and is incidental in nature. The 1995 population was 35, and 

by 2005 the population had fallen to 15. 

Residents of these communities may use Kuiu for some subsistence 

resources. Subsistence is covered in Issue 2 - Deer Habitat and 

Subsistence Use in this chapter and in the Subsistence Resource report 

available in the Kuiu Timber Sale planning record. 

3.15.3.1 Outfitter and Guide Use 

See the Recreation section in this chapter. 

3.15.3.2 Commercial Fishing 

Local economies are largely based on commercial fishing and fish 

processing. Fishermen use some of the waters around the Project Area 

but are not specifically dependent on this area. Riparian standards and 

guidelines, Best Management Practices and estuary and beach fringe 

protection were developed and initiated to protect salmon populations, 

regardless of the alternative selected. Effects to the fish populations 

and anadromous fish habitat would not likely be noticeable. These 

effects are discussed in Issue 4- Cumulative Effects on Watersheds and 

Essential Fish Habitat sections in this chapter. 

3.15.3.3 Tourism, Recreation and Scenery 

Tourism is a significant industry that continues to grow throughout 

Southeast Alaska and relies on several different resource bases. Some 

3.15.3 

Effects to 

Economic 

Activity 
Socioeconomics 3

Kuiu Timber Sale FEIS Chapter 3 • 217 

tourism activities depend upon the wildness of Alaska in attracting and 

engaging visitors to participate in outdoor adventures. Other tourism 

activities cater to visitors who enjoy the scenery of Alaska while being 

provided the comforts associated with development. Currently, the 

waters around the Kuiu Timber Sale Area support some tourism 

activities in the form of outfitter and guides. Fishing, black bear 

hunting, and wildlife viewing are the main activities. The analysis of 

changes in recreation is discussed in the Recreation section of this 

chapter. 

The Project Area is visible from public travel routes and use areas and 

the scenery is subject to change as a result of the proposed activities. 

See the Scenery section of this chapter for detailed information 

regarding scenic impacts. 

3.15.4.1 Direct and Indirect Effects 

Alternative 1, the No-Action alternative, would maintain the current 

level of opportunities for resource use. All action alternatives would 

cause changes to the current situation. These changes are described as 

increases or decreases in opportunities, benefits, or costs. 

Many of the benefits and costs are short-term, lasting only as long as a 

proposed timber sale would be active. Wood products employment 

associated with the sale, temporary road development, noise, logging 

camp use, log transfer facility activity, and increased traffic are 

examples of short-term impacts. Landscape changes are effects that 

would remain after timber harvest is complete. The time frame of 

individual impacts should be considered when evaluating the impacts 

of each alternative and when looking at cumulative effects. 

3.15.4.2 Cumulative Effects 

Most socioeconomic issues are not quantifiable because they rely on 

individual perceptions and values. In general, a stable timber industry 

would benefit the local economies of Kake, Petersburg and Wrangell 

mainly through support businesses like grocery and fuel. The timber 

economics resource report estimates the direct and indirect 

employment levels likely to result from the action alternatives. The 

basic premise is that the higher the volume of timber available and 

sold, the more jobs and income would likely result. A sustainable 

timber industry would continue to provide economic stimulus. 

Tourism and recreation are on the rise across southeast Alaska. Many 

seek ecosystem related activities such as fishing, hunting, wildlife 

viewing and other outdoor recreation activities. The Project Area and 

adjacent lands continue to be used for tourism related activities 

(Recreation Resource Report, Appendix B, Figure 1). Continued 

timber harvest and related activities impact ecosystems and affect the 

potential for wilderness experiences. The no action alternative would 

3.15.4 

Effects of the 

Alternatives 
3 Environment and Effects

218 • Chapter 3 Kuiu Timber Sale FEIS 

preserve passive values that include habitat preservation for posterity 

or local use. 

Selection of any of the alternatives, regardless of the action, would not 

likely affect the major economic base, which is commercial fishing.