Kitsap Peninsula Business Journal

Kitsap Peninsula

Business Journal An edition of the Kitsap Sun

KPBJ.COM

September 2015 | Vol. 28, No. 9

Service business

Running a successful retail shop to support a nonprofit mission Page 4

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Thrift stores a steady revenue source for nonproďŹ ts - Page 6

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| Monday, September 7,

INTRO | DAVID NELSON

Business on a mission

On the Cover Manager Virginia Hankins takes a drink order at Coffee Oasis in Bremerton. | Story, page 4 MEEGAN M. REID photo

A Place of good food, strong faith Kitsap Peninsula

3

KPBJ.COM

Business Journal

The couple who own That One Place, a Port Orchard restaurant, use their successful business to support their faith-based community service. Story, page 7

The Kitsap Peninsula Business Journal is published by the Kitsap Sun the first week of every month, and distributed to business addresses through Kitsap County, North Mason and Gig Harbor.

Brent Morris, Publisher brent.morris@kitsapsun.com David Nelson, Editorial Director david.nelson@kitsapsun.com Tim Kelly, Managing Editor tim.kelly@kitsapsun.com Mike Stevens, Marketing Director mstevens@kitsapsun.com Jeremy Judd, Digital Director jeremy.judd@kitsapsun.com

Secondhand shopping supports a cause Nonprofits such as Hospice of Kitsap County operate thrift stores that provide a steady source of funding for their operations. Story, page 6

For inquires to receive the Kitsap Peninsula Business Journal at your business, contact Circulation Sales Director Hugh Hirata at 360792-5247 or hugh.hirata@kitsapsun.com.

To advertise in the Kitsap Peninsula Business Journal, contact Michael Stevens at 360-792-3350.

TO SUBMIT NEWS: Tim Kelly, Managing Editor tim.kelly@kitsapsun.com 360.377-3711, ext. 5359

Standard mail postage to be paid at Bremerton, WA

POSTMASTER: Send address changes to Kitsap Sun, PO Box 259, Bremerton, WA 98337-1413 © 2015 Kitsap Peninsula Business Journal / Kitsap Sun ISSN 1050-3692 VOLUME 28, NO. 9

Mobile boutique packed with fashions A Port Orchard woman who wanted to open a clothing store decided the best location would be a retail space on wheels. Story, page 28

A joke I hear more often than I’d like about newspapers is that we’ve all become nonprofits. It cuts a little close to home, of course, but I can appreciate the poke as a commentary on how we now run a little leaner to survive in a competitive market and keep the spreadsheet numbers black.

But there’s something else I think our industry, at least at the community level of journalism, shares with the organizations the IRS recognizes as nonprofit. That’s the mission of an organization that goes beyond simply serving our paying customers. Our priorities at the Sun and the Kitsap Peninsula Business Journal are our readers and advertisers, but the benefit of a community newspaper reaches beyond subscribers. We comfort the afflicted, as an old saying goes, no matter the financial interest, or raise awareness for community issues without monetary gain exchanged. That’s comparable to how Coffee Oasis or the various thrift shops run by social services agencies — both profiled inside in this issue’s focus on the impact nonprofits have economically — serve paying customers with a product to stay financially healthy beyond grant and donation funding, so they may serve those who need something that isn’t available on a retail shelf.

The bottom line is the bottom line, of course, no matter how high-minded your purpose. The nonprofit that’s a major community player and an employer — Harrison Medical Center — knows that, as we’ve all seen in strategic moves to preserve its financial position into the future. And I don’t mean to suggest that for-profit local businesses don’t contribute out of community goodwill. We see that every day around here as well.

We’re spotlighting the social services that work retail as a way to underscore the economic importance of nonprofits. From providing jobs — Harrison’s the largest private employer here — to offering products like coffee, organizations that put profits back into a mission are important to our business fabric. Just like our mission with local journalism, when these businesses do well they can also do a lot of good.

David Nelson is editorial director of the Kitsap Pensinsula Business Journal. Contact him at david.nelson@kitsapsun.com.

4 | Monday, September 7,

Coffee shop ‘isn’t just a front for doing social work’ ■Business and youth

ministry dovetail at The Coffee Oasis

By Tim Kelly tim.kelly@kitsapsun.com 360-792-3359

Customers who get their morning latte at The Coffee Oasis or stop by for a sandwich or smoothie at lunchtime may just think of the place as a comfortable local cafĂŠ, with the same casual ambiance as other coffee shops.

That’s ďŹ ne with Dave Frederick, the nonproďŹ t’s executive director who wants Coffee Oasis locations to have that look and appeal. “It’s very intentional,â€? Frederick said. “One of the things that we didn’t want is people to just come to the Coffee Oasis to help out a nonproďŹ t. “That’s an important piece, and I know a lot of people support us because of what we do with young people. But we wanted people to come because it was the best coffee they could get, or the best panini or the best wrap.â€?

The Coffee Oasis has been working with homeless and at-risk youth since Frederick, a former pastor and police chaplain, started the ministry in Bremerton in 1997. Today the enterprise operates cafĂŠs in Bremerton, Poulsbo and Port Orchard, as well as a drive-through coffee stand in Bremerton and a kiosk in the Kitsap County Administration Building in Port Orchard. The

MEEGAN M. REID

Manager Virginia Hankins serves up an artistic latte at The Coffee Oasis in Bremerton.

business also roasts its own coffee beans at the Bremerton cafĂŠ and supplies some wholesale customers.

There are drop-in centers in separate spaces at the three cafĂŠs, offering street youth resources such as showers, laundry, shared meals and recreation, as well as counseling and job training programs.

The Bremerton location at 822 Burwell St. has the county’s only overnight shelter offering emergency housing for teens.

There are 52 employees between the social service programs and the coffee shops, and cafĂŠ employees and outreach

Coffee Oasis locations The nonproďŹ t Coffee Oasis (www.thecoffeeoasis.com) has three cafĂŠs in Kitsap County. • Bremerton — 822 Burwell St. • Poulsbo — 780 NE Iverson St. • Port Orchard — 807 Bay St. There is also a drive-thru offee stand at 1502 Sixth St. in Bremerton, and the Port Orchard Express inside the Kitsap County Admnistration Building at 614 Division St. in Port Orchard.

To find out more about being a business partner with Coffee Oasis for youth job training internships, call executive director Dave Frederick at 360-377-5560.

workers share the same sense of mission at The Coffee Oasis, which exempliďŹ es the concept of business as ministry. “My baristas care about customers as much as case managers care about the kids,â€? Frederick said. “So they all have this sense of we’re here to make a difference in our community.â€?

He said there are three key aspects of the business-as-ministry approach, one being the revenue the cafĂŠs provide for funding youth services, making The Coffee Oasis less dependent on grants and donations. “It also provides job training,â€? Frederick said, “and it also provides jobs.â€?

In addition to its in-house training and hiring, The Coffee Oasis places young people in internships at other local businesses.

They ďŹ rst take several weeks of job skills classes with a case manager before they are placed with a business partner to complete a 100-hour unpaid internship. Frederick said the long-term goal is for the youths to have a job within six months of completing an internship. “Last year we had 68 kids go through job training internships, and 62 of those 68 were employed within six months,â€? he said.

“It’s one of the most encouraging programs that we do.�

At Fraiche Cup, a coffee shop near the Bremerton ferry terminal, owner Scott Collins started using Coffee Oasis as his source for locally roasted beans a few years ago, and that led to being a partner for the job training program. Collins said he’s had 10 interns and wound up hiring two of them. “They are both exemplary employees,� he said.

The ďŹ rst intern Collins hired worked there nearly two years, and the other is a young woman who’s been at Fraiche Cup about a year and a half and is training the current Coffee Oasis intern.

Even though a couple interns didn’t ďŹ nish their 100 hours, Collins said the program is mutually beneďŹ cial for employers and interns. “It’s really good for the kids, because for most of them it’s their ďŹ rst time in any kind of employment,â€? he said. “And obviously for a small business like ours, it doesn’t hurt to get 100 hours of free work.â€?

Craig Kenady, owner of That One Place restaurant in Port Orchard (see related story, page 7), is another believer in the

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6

| September 2015

Thrift stores a good bargain for shoppers and nonprofits ■ Shops provide needed operating revenue for hospice, food banks and others thrift stores because they view them as a distraction from their core missions. In ShareNet’s case, a store that can pay the food bank’s rent is a valuable asset.

“The amount of support it’s able to provide, you have to consider it a net plus,” Ince said.

Down the road in Poulsbo, North Kitsap Fishline also sees its thrift store as critical to its operation, so much so the food bank opened a second outlet last year. Fishline’s original Second Season Thrift Store on Front Street sells clothes and other secondhand merchandise. The new Second Season Home Store, which specializes in furniture, is located in the former Third Avenue food bank building made vacant when Fishline move to Viking Avenue.

Hospice of Kitsap County Thrift Shop manager Gigi McKay, right, talks with customer Dale Kelly of Hansville. It was Kelly’s first visit to the store and she said she loved it.

LARRY STEAGALL

By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

Looking for more cash to support its end-of-life programs, Hospice of Kitsap County plunged into the retail industry a year and a half ago.

The Silverdale-based nonprofit opened a thrift store at Pacific Avenue and Burwell Street in the heart of downtown Bremerton.

Racks of clothing fill the front of the spacious store.

Cookware, tools and electronics can be found on a lower level. A nook at the top of a set of stairs is bursting with books .

Despite getting off to a slow start in downtown, the shop turned a profit in its first year, netting about $10,000 for Hospice of Kit-

sap. Manager Gigi McKay expects to double that figure in the store’s second year, with foot traffic picking up downtown.

“Things are changing, it’s getting better all the time,” McKay said. “We plan on being in the area for a long time.”

The hospice agency’s foray into retail was far from unprecedented. Kitsap nonprofits operate about 10 thrift shops across the county, ranging from tiny hole-in-the-wall outlets to the three cavernous Goodwill stores.

While retail may seem incongruous with the missions of some organizations that run the stores, the second-hand shops provide something rare and coveted for nonprofits: Steady revenue. Staffed by

volunteers, fueled by donated items and frequented by shoppers looking to support a good cause, the stores produce a consistent, year-round cash flow for charitable groups that see constant fluctuation in donations and grants.

ShareNet Food Bank in Kingston can count on its thrift store to generate about 20 percent of the organization’s annual revenue, despite being tucked away in a business park off Bond Road. “(The store) was designed to help pay our lease at the building,” ShareNet executive director Mark Ince said. “It does that and we’re grateful for that.

We’re grateful for how far we’ve been able to take it, given the challenge of our location.”

ShareNet markets the store constantly to attract customers to its rural locale. Luckily, thrift store devotees will go out of their way in search of bargains.

“That’s the good news about thrift stores,” Ince said. “People who really love thrift stores want to go to all of them, they don’t care how far they have to go.”

The stores aren’t only frequented by bargain hunters. ShareNet and other social service organizations use items donated to thrift stores to outfit clients with clothing and home goods.

Ince said operating a retail outlet adds another layer of complication to the already complex task of running a nonprofit. Some food banks opt not to run

(THE STORE) WAS DESIGNED to help pay our lease at the building. It does that and we’re grateful for that.”

— Mark Ince, executive director of ShareNet Food Bank in Kingston

“We knew we needed a constant source of revenue,” Fishline executive director Mary Nader said in a recent interview. “Even if it was marginally successful it would be better than having a nothing in the building, and it’s been quite successful.”

Unlike most the nonprofits running thrift stores in Kitsap, retail is central to Goodwill’s mission.

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September 2015 |

Diner serves generous helpings of food, and help

7

That One Place Address: 1386 Lund Ave., Port Orchard Hours: Monday-Saturday, 7 a.m. to 9 p.m.

Phone: 360-876-4572

■ That One Place owners make

faith-based community service a core mission of their business

By Tim Kelly tim.kelly@kitsapsun.com 360-792-3359

The owners of That One Place in Port Orchard have a profitable business,and they have a mission, and are passionate about both.

Craig and Evalina Kenady’s popular diner on Bethel Road is going strong; since opening almost five years ago they’ve expanded to double its original space. Even with a seating capacity of 65, there’s still a wait for a table at lunchtime some days.

Their restaurant’s success has enabled them to help others in the community in a number of ways.

The couple is involved through their church with plans to open a transitional house in South Kitsap for women and children who are moving out of a homeless shelter.

The fourth annual classic car and motorcycle show at That One Place in July raised more than $3,000 for the planned Ekklesia House.

However, another venture meant to provide long-term funding for that project hit a detour recently when the Kenadys closed That One Bakery, which they had operated in downtown Port Orchard since last September. They

had planned to convert that operation to a nonprofit and use revenue from the bakery to support Ekklesia House, but in late July they closed the business, which was facing eviction (see related story, page 16).

“Our plan was, we want to open a transitional house here in Port Orchard where women can come from a sheltersetting,andgetsome job training,” Craig Kenady explained on a recent afternoon sitting outside That One Place. “We were going to do the job training (at the bakery) and teach them how to be baristas, or teach them how to be dishwashers, whatever we could do to give them support.”

LARRY STEAGALL For now, the owners are Joshua Shorb takes an order from regular customer Greg Jarczynski at That One Place in Port Orchard. Shorb is one of numerous employees that owner trying to move their bak- Craig Kenady has hired at his restaurant through a state Department of Corrections work-release program. ery employees to jobs at the restaurant, while figuring out a The Kenadys focus their busi“It’s invaluable, having people tinges in his long reddish-blonde plan B that will maintain the bak- ness and personal lives on the like Craig who are willing to give hair and beard, was a Peninsula ing operation. mission of helping others in their these guys a chance,” said Greg inmate himself when he started “Hopefully the goal is That community, particularly people Guidi of Peninsula Work Release his transition from the wasted One Place can expand to include needing a second chance. That’s in Port Orchard. “We have five years of his young adulthood to some form of a bakery” still linked something Craig Kenady knows people down there now, plus two a restaurant career. to Ekklesia, Kenady said, adding a lot about, and it’s why he’s hired that have completed their work Guidi said Kenady’s situation that “it would definitely be two and trained numerous inmates release and stayed on.” as a business owner and former separate businesses. We’re trying from a state prison work-release Kenady, a gregarious 41-yearSee PLACE, 8 to maintain that separation.” program at his restaurant. old former meth addict with gray

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| September 2015

nady said. “A lot of people have really bought into the plan.”

The Kenadys, Blair, Port Orchard Mayor Tim Mathes and others have been working on the Ekklesia House plan for a couple years. Blair said the next step is to find either a rental house that could accommo-

LARRY STEAGALL

Craig and Evalina Kenady are the owners of That One Place in Port Orchard, and they are also active in fatih-based community service.

Place from 7

work-release employee gives him a unique perspective.

“He’s been very successful, and Craig understands people,” Guidi said. “He hires people and expects hard work, and he’s right there working hard alongside them. He’s a great role model.”

Kenady, who grew up in South Kitsap, said he hit rock-bottom during his second prison stint.

“When I got to workrelease I took a job with Shari’s, and I just had it in my mind that this was it for me. I had to make this work,” he recalled.

As soon as he could, he left his hometown and transferred to a Shari’s in Renton, where he met his wife.

They worked for Shari’s for 12 years at different restaurants, and he advanced from being a cook to a district manager position.

“I learned a lot, and I’m very grateful for my time there,” said Kenady, who still mans the grill at his diner. “They taught me how to run a restaurant and how to be successful.”

The couple eventually moved back to Port Orchard, in part because Kenady felt motivated to atone for his troubled past there.

“As I grew from my addiction, there was this urge

that I needed to give back, and I needed to try to make things right,” he said.

The owners of That One Place embody the principle of giving back to their community. Kenady and his wife are board members and volunteers at Georgia’s House, a homeless shelter for women and children operated by the Weaver Foundation in West Bremerton.

They also are members of the community servicefocused congregation of Ekklesia Church and are working with the pastor, South Kitsap Fire & Rescue chaplain Tim Blair, on developing the transitional housing they want to provide for families coming from Georgia’s House. That is an emergency shelter where homeless families can stay for up to 90 days, while the planned Ekklesia House would be a place for longer stays and would have case management through Georgia’s House.

It’s not just fellow church members supporting Ekklesia House; regular customers at That One Place have heard about the effort and gotten involved, too. Donations of clothing, sleeping bags and other supplies that go to Georgia’s House are often piled in a corner of their restaurant.

“This restaurant has really seemed to build a sense of community around here, people that just have an urge to want to help,” Ke-

date four or five families, or an affordable property for building a multi-family residence.

“We have enough money saved up to sign a long-term lease and pay up front, we’re just trying to find the right property,” Kenady said.

He and his wife are also looking for the right place

to move That One Place when their current lease is up in to 2018.

“We’re very successful here, we’re very blessed.

The community has really bought into what we do, and they love us here,” he said.

“But our ultimate goal is we don’t want to sign another lease here. We want to build

our own restaurant.”

They considered moving two years ago, but their landlord offered them a reasonable deal to expand into the adjacent unit in the building, so they knocked a wall out and doubled their table space.

See PLACE, 16

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| Monday, September 7, 9

Expanded Fishline will house other agencies ■ Two large grants boost nonprofit’s $2.7 million capital campaign to build new facility

By Terri Gleich

The other challenge: continuing to raise money for operations

KPBJ contributor

North Kitsap Fishline has launched a $2.7 million capital campaign to build a new grocery-style food bank and warehouse in Poulsbo and turn its existing building into a center that will provide coordinated services to people in crisis.

“When we’re done, we will have created a campus that meets the needs of the North Kitsap community for decades to come,” said Fishline executive director Mary Nader.

Board president Tom Eckmann said requests for proposals went out to selected architects in mid-August for a campus site plan and design of a 7,500-square-foot food bank on the east end of Fishline’s property at Viking Avenue and Liberty Lane. Proposals are due Sept. 25 and the project is slated for completion by the middle of next year.

After food bank operations move into the new space, Fishline’s current 5,100-square-foot building will be renovated to house the organization’s offices as well as representatives of social service agencies, such as Kitsap Mental Health, Kitsap Community Resources, the YWCA and the county health department. Plans call for that phase, which will expand the space to 6,500 square feet with the addition of a partial second floor, to be done by mid-2017.

Fishline, which has been operating since 1967, distributes more than 1 million pounds of food a year to 3,000 area families. It also provides emergency services, such as assistance with rent, utilities, medical copays and short-term shelter.

This is the nonprofit’s

Raising $2.7 million is a big task, but Fishline faces another challenge — making sure the public understands that it needs to raise operating money at the same time.

“When you give to the capital campaign, that’s great. But if it replaces operating funds, that creates a problem,” said Tom Eckmann, president of the nonprofit’s board.

The organization has an annual operating budget of nearly $2 million with $1.4 million coming from in-kind donations of food. More than $350,000 comes from grants and cash contributions and $155,000 is earned revenue from clothing and furniture thrift shops. On the expense side: Direct aid to clients totals $1.6 million while facilities and personnel costs add up to $336,000.

LARRY STEAGALL / KITSAP SUN FILE

North Kitsap Fishline executive director Mary Nader,left, bags groceries for client Nancy Satterlee of Poulsbo in the food bank’s larger facility that opened last year.

first capital campaign and it has already raised more than $1 million of the total goal, with the biggest portion coming from a $625,000 state grant.

Fishline also secured a $300,000 grant from the Birkenfeld Foundation, which will be matched with contributions from Central Market, the estate of Sandy and Bunker Hill, the Norcliffe Foundation and Kitsap Bank.

Fundraising is expected to take up to two years.

About $2 million of the total is budgeted for the two building projects with the balance going to pay off the mortgage on the Viking Way property.

Fishline moved from cramped quarters on Third Avenue into the former home of Poulsbo RV last year, tripling the size of its grocery-style food bank and greatly expanding parking.

The increased accessibility has had several benefits. Donations from home gardens have tripled in the first year. And clients, who are coming to the market more often, are taking less

food. Nader said clients are being more efficient because they get to choose what they want. Also, with more shelf space, there’s more consistency in offerings, so clients don’t need to worry that items won’t be there when they need them.

The one shortcoming at the new site is a lack of warehouse space, especially cold storage. In addition, there’s not enough space for volunteers to sort through increased grocery donations of perishables that are past their prime but still usable, a process known as “grocery rescue.” That amounts to about 60,000 See FISHLINE, 10

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| September 7

Continuum Care Community secures financing, breaks ground ■ Heron’s Key in Gig Harbor offers

range of residence options to meet members’ needs at any age

By Rodika Tollefson KPBJ contributor

Since Richard and Sandy Berry retired, they’ve explored various options for retirement living. The couple wanted to maintain an active lifestyle that would also accommodate their needs as they change.

The option they landed on was Heron’s Key, a housing development planned in Gig Harbor for people 55 and older. Designated as a Continuum Care Retirement Community,Heron’sKeywillprovide independent living, assisted living,skillednursingandmemory care all on the same campus.

“I wasn’t instantly enamored by this living arrangement,” Richard Berry says. “But we’ve investigated the options and this one became very attractive to us. It took time to come to the realization that people like us can live in a retirement community geared to communal living.”

The Berrys, who have lived

Fishline from 9

pounds of food a month.

Fishline originally planned to add 4,500 square feet of warehouse and processing space to the current building and then build a new coordinated service facility. The plan changed after the board worked with consulting architect Miles Yanick and Co. for six months. Eckman said board members learned it would be more expensive to expand the food bank’s footprint than to

ILLUSTRATION COURTESY EMERALD COMMUNITIES

Architect’s rendering of the entry canopy at Heron’s Key retirement community in Gig Harbor, which is scheduled to open in 2017.

gus Miller is the architect. RFM designed the Redmond campus as well as its recent $60 million expansion.

Construction in Gig Harbor is estimated to last about 19 months.

The builder is The Weitz Co. In August, Heron’s Key hit several milestones besides breaking ground. Emerald Communities finalized the $4.2 million purchase of the land from Pope Resources. It also received $145 million in nonrated, fixed-rate bonds from specialty investment bank Ziegler.

Heron’s Key was one of the apartment properties approved this summer by the Washington State Housing Finance Commission for a low-income housing tax credit. It allows affordable-housing developers to raise capital by selling the credits to investors.

The $145 million will pay for the phase-one hard costs and financing fees. The second phase will add another 78 apartments, 10 cottages and 32 private skilled-

nursing suites for memory care, but Hardy says there’s no timeline for the expansion.

“Our main goal is to get phase one up and running and make it successful,” she says.

Heron’s Key has been in the works for about four years by the nonprofit Emerald Communities, which was born out of the First Presbyterian Church in Bellevue in the late ’70s. Its first development, Emerald Heights, opened

in Redmond in 1992 and houses about 450 seniors.

Emerald Communities CEO Lisa Hardy says the leadership team and board looked for underserved communities from Bellevue to the Olympic Peninsula before selecting Gig Harbor for the second location.

“We looked at six hot spots in the desired demographics,” she says. “Gig Harbor is a delightful community in a beautiful setting and has both the old-town charm and new amenities.”

The 17-acre campus is located in Gig Harbor North and is part of Harbor Hill, a master-planned community with residential and commercial areas.

Phase 1 of Heron’s Key will include 10 duplex cottages, 184 independent living apartments, 36 assisted-living units and 45 private rooms for skilled nursing. All the buildings, except the cottages, will be interconnected by corridors.

Bremerton-based Rice Fer-

build a new one.

The new plan also makes it easier for Fishline to continue to serve clients seamlessly throughout the construction project.

Although there’s a $2 million cap on the two building projects, Eckman said he hopes to do it for less. The request for proposals makes that clear, noting that Fishline is known for “doing a lot with a little.”

“Most of what we need doesn’t have to be expensive,” said Nader.

“It needs to be practical and modern and efficient and welcoming.”

Added Eckmann: “We are

looking for an architect who is willing to take this on as a challenge. I think whoever designs this will win an award. This will be copied.”

About 25 percent of Fishline’s clients are elderly and 25 percent are children. The remaining 50 percent are split between adults in crisis and the working poor.

It’s that group Nader thinks will benefit most from the planned coordinated services center.

Currently, many agencies that serve the poor are based in Bremerton. For clients who don’t have a car, it can be difficult to vis-

it multiple offices to secure help, said Nader. The new facility will provide a cooperative approach in a convenient and private location. It will also avoid duplication of services and allow agencies to take a team approach.

“Clients will have to go through the agonizing details of their crisis only once,” she said.

The partners will also share the cost of the project by paying rent to Fishline for office space and committing to long-term leases.

Rochelle Doan, chief advancement officer at Kitsap Mental

Health, said the agency is pleased to be part of the effort.

“We believe that one-stop shop service centers can offer a range of services to folks where they need them, when they need them,” she said.

When the new building is done, the mental health agency will have a full team of therapists, case managers and psychiatric providers on site. In the meantime, several clinicians from the agency will begin seeing 10 to 20 north-end clients at the current building beginning in September.

in Bellevue for 40 years, sold their home and reserved a 1,200-square-foot Heron’s Key apartment with two bedrooms and two bathrooms. They will live in their Harstine Island beach house until the housing development — which broke ground in August — is ready in early 2017.

The location, they say, is perfect too — close both to their beach home and their children in Tacoma.

The continuity of care option takes a burden off their children, Sandy says.

“We feel this is a gift to them.

They don’t have to worry about what to do,” she says.

NEW MILESTONES

NUMEROUS AMENITIES Heron’s Key members pay a $215,000 entrance fee, with 75 percent refundable either on moving out or to the estate upon death.

“We needed the entrance fee to help pay for the debt,” Hardy says.

The monthly fee, which is based on the floor plan selected at time of entrance, will remain the same for the residents’ lifetime.

“As they progress through the levels of care, the fee follows them,” Hardy says.

If members’ financial resources are “depleted through no fault of their own,” they can also receive financial assistance and will not be asked to move out, she says.

See COMMUNITY, 16

| Monday, September 7, 11

Thrift from 6

The three Kitsap County Goodwill stores — East Bremerton, Silverdale and Port Orchard — are operated by Seattle Goodwill Industries.

Together they support 211 employees, spokeswoman Katherine Boury said.

The Hospice of Kitsap County thrift store hired its first employee in LARRY STEAGAL addition to McKay last month. The store also added Sunday hours, hop- Hospice of Kitsap County Thrift Shop volunteer worker Blossom ing to rope in more weekend shop- Graham of Bremerton arranges clothes. pers.

Donations have been strong for the most zation, McKay said. part, McKay said. The store receives many The nonprofit group’s mission is also a donations from the estates of clients who draw for customers. received hospice care. Donating is an easy “Everyone loves to support hospice,” way for families to give back to the organi- McKay said.

Oasis from 5

the business side but said next year he plans to hire a director of business operations, who would work with the organization’s two other directors of community development and youth programs.

Belfair, Kingston and Sequim are possible sites for another Coffee Oasis location, and there are capital campaigns going on in those communities.

People often ask about the nonprofit’s plans for continued growth, Frederick said, “but one of the things we’re wrestling with now … is how we can grow and grow well.”

Thecommunitydevelopment director is Frederick’s son, Daniel, who as a teenager joined his parents in their youth outreach ministry on the streets of Bremerton. He left grad school in Colorado in 2008 because he felt called to come home and work for The Coffee Oasis, even though at the time that meant starting in a part-time kitchen job.

Dave Frederick said his son is continuing graduate studies in business theology through Seattle Pacific University.

SPU students and visitors from other states have come to The Coffee Oasis to learn more about the nonprofit’s

business/social model.

“In our overall budget, I’d say about 55 percent right now is covered by business income,” Frederick said. “We have a desire to strengthen the businesses, ... so that we can really build the sustainability of the overall organization.”

Frederick, who grew up a pastor’s son in Manchester, said it took a long time for him to realize how a coffee shop and youth ministry could dovetail.

Even after buying the building across from the shipyard on Burwell in 1998 for his fledgling business, the organization was “kind of under the radar for about10years,”hesaid,with only a few paid employees.

A breakthrough came when another nonprofit’s director suggestedthatFrederickapply for county grants that couldenableCoffeeOasisto expand its youth programs.

“We requested a threeyear grant for three fulltime positions, and we got the whole thing,” he said.

The grant funded an outreach worker, a case manager, and a drop-in center supervisor, and that was when “we started having business employees and program employees, and we could really begin to expand both of them.”

Frederick has given a presentation to groups of Christian businessmen in the community about the

challenges of developing a viable business and integrating faith-based social service into it. His talk is titled “My Journey From Business as Misery to Business as Ministry.”

“For a long time it was hard … trying to figure out this balance between what I felt called to do, and I found that I really loved doing the business,” he explained. “And I kind of had this entrepreneurial excitement and eagerness, but for the longest time I struggled with feeling like this is taking away from what I was called to do.

“It was years until it came together, and it was like I lived two different lives — running a business and running this ministry.”

A turning point was when a teenager in a state WorkSource employment program asked if he could get job training at Coffee Oasis, where he had made connections. Frederick agreed and subsequently hired the teen, and began doing job training for others like him who had “a heart for the ministry, and the business.”

“It just became this process that all fit together,” Frederick said. “It’s still a learning process, but that was the transition to where this can be one thing, and work together instead of these things competing for my time.”

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| September 2015

FINANCIAL PLANNING | EDWARD JONES

No secrets to investment success Article provided by Edward Jones for use by financial advisor Calvin Christensen of Silverdale.

M

anypeoplelookfor the “secrets” to investment success.

Is it timing the market just right? Is it finding those hot stocks or getting in on the “ground floor” of the next big thing? Actually, these types of moves have little relevance to the vast majority of investors — even the most successful ones.

So let’s take a look at some steps you can take that can be effective in helping you work toward your financial goals.

It’s time in the market… not market timing. Some investors think they can succeed at “market timing” — buying when the

price is low and selling when the price is high.

And this would indeed be a good strategy if they could predict highs and lows. No one can accurately forecast these peaks and valleys, though. So, instead of ducking in and out of the market in a vain attempt to catch the highs and lows, simply stay invested. The more time you spend in the market, the lesser the impact you’re likely to feel from short-term price swings.

And if you’re always invested, you’ll always be in a position to benefit from the next market rally.

It’s “buy and hold” — not “buy and sell.” Even if you aren’t trying to time the market, you may be tempted to buy and sell frequently as you look for new and better opportu-

College degree still a smart investment Article provided by Edward Jones for use by financial adviser Denette Chu of Port Orchard.

Summer is almost over, which means it’s “back-toschool” time. If you have young children, you may be purchasing backpacks, pencils, notebooks and similar items. But one day, you could be shopping for colleges — and when you do, you’ll find the bill is a little bit higher than the one you get from your local school-supply store. That’s why it’s never too soon to start saving.

Just how costly is college? For the 2014–15 school year, the average expense — tuition, fees, room and board — was $18,943 at a public four-year school and $42,419 at a four-year private school, according to the College Board. And if recent history is any guide,

these numbers will likely keep climbing.

But there’s no need to panic. For one thing, your child may be eligible for loans, grants or scholarships. Still, you will likely end up shouldering some of the financial load, and you may ask yourself if it’s worth it. How much difference can a college degree make in the lives of your children?

Actually, college still seems to be a pretty good investment. The average college graduate will receive about $1 million more in lifetime earnings than the average high school graduate, according to the U.S. Census Bureau. So when you assist your children in getting to college, you can be reasonably sure that you’re at least helping them start on the path toward a rewarding career.

How should you put

nities. Yet, this constant buying and selling can be costly. Frequent trading, with all the additions and subtractions from your portfolio, can make it hard for you to follow a consistent, unified investment strategy. You’re better off purchasing quality investments and holding them for the long term, until either your needs change or the investments themselves no longer possess the same attributes they did when you purchased them.

It’s building a strong foundation — not getting in on the “ground floor.” Many people regret not being one of the initial investors of a company that has done spectacularly well. But most new companies don’t See INVESTMENT, 14

away money for college?

Unfortunately, more parents use a general savings account than any other method, according to Sallie Mae’s How America Saves for College 2015 study.

These accounts pay little or no interest and offer no tax benefits.

As an alternative, consider investing in a 529 plan. Contribution limits are quite high, and federal taxes won’t be assessed on earnings used for qualified higher education expenses.

(The earnings portion of withdrawals will be taxed, though, and can incur a 10 percent penalty if the withdrawals aren’t used for qualified expenses.)

Furthermore, your 529 plan contributions may be deductible from your state taxes. But 529 plans vary, so be sure to check with your tax advisor regarding deductibility.

Another college funding option is a Coverdell Education Savings Account, which, like a 529 plan, can See COLLEGE, 14

When it comes to your to-do list,

put your future first.

Decisions made in the past may no longer be what’s best for the future.To help keep everything up to date, Edward Jones offers a complimentary financial review.A financial review is a great opportunity to sit face to face with an Edward Jones financial advisor and develop strategies to help keep your finances in line with your short- and long-term goals.

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| Monday, September 7, 13

HUMAN RESOURCES | JULIE TAPPERO

Baby-friendly workplace policy requires thoughtful planning

N

etflix recently made headlines when the company announced a new maternity/paternity leave policy, a l low i ng new parents to take up to 12 months paid leave after the birth or adoption of a child. Microsoft and Adobe soon followed with their own enhanced paidleave programs. Not to be outdone, the state of Washington then introduced a pilot program allowing parents to bring their babies to work with them.

What is behind these progressive changes? Have we suddenly become aware of parents in the workplace, or extremely compassionate about children? The facts are that in 2014 almost 43 percent of mothers with children under the age of 1 were not participating in the workforce. With the unemployment rate hovering at 5.3 percent in the U.S., and businesses struggling to find qualified workers, companies are looking for creative ways to attract and retain their talent. We cannot afford to have high contributors stepping off the work train if we can help it. Developing flexible workplace policies for new parents is one more tool in our retention tool belt.

I recently asked a diverse group of business people for their thoughts on policies about allowing babies in the workplace. I was surprised by the answers I received. Many of the men who responded were quite supportive of the idea, the women were split, some of the people without children weren’t happy about it, and a lot of the human resources professionals were skeptical about the impacts it would make on the workplace as a whole.

That being said, there are many companies giving this a try, and like any workplace policy or benefit, it requires thought, planning and formal structure in order to work.

A company could start with a pilot project, just as Washington state is doing, to see if babies in the work environment are compatible with the organization’s business model. Recognize from the beginning that it may not work for every single job in the business.

It might work well for the administrative assistant, but not as well for the shipping and receiving clerk who drives a forklift all day, for example.

Most programs have a policy that spells out expectations for everyone in advance, trying to avoid surprises and disappointments. It’s important that the baby is safe, the workplace disruptions are controlled, the employee remains focused and productive, and the family is happy. Here are some key items to consider.

Talk to your insurance provider to make sure that your business is covered from a liability standpoint.

If there is an additional cost, your employee might be willing to pay it for the privilege of bringing baby with them. After all, they create a big savings by not paying for child care.

Most companies utilize a legal waiver form releasing the company of any liability should something go wrong. Be sure to have your attorney review it.

It’s common that the programs accommodate the baby until they are about 6 months old or able to crawl. At that point, it’s a little harder to ensure their safety as they start to become mobile. At that age, they also start to require more attention and interaction, and can become more

of a workplace distraction.

You and your employee should recognize up front that some of their work time will be dedicated to taking care of the baby.

This doesn’t need to be compensated “on the clock” time. Many policies state that the employee will be paid for six hours out of their eight-hour day. Have hourly employees maintain an accurate timesheet so they are properly paid under the FLSA. This also helps lower resentment by other employees.

You don’t have to be a parent to know that babies have times when they’re just plain unhappy. When that happens, the parent needs to do what’s necessary to not disrupt the work environment. That may mean going out for a while, or taking baby home for the day. There are also some babies that are just not a good fit for the workplace.

I know my own colicky child would have driven my co-workers mad. In those instances, telecommuting may become a better option.

There may be times that the parent cannot be by the baby’s side, perhaps due to a phone call, meeting or task.

A successful program will have one or two designated in-office volunteers who can be alternate caregivers in those events.

Logistics need to be worked out ahead of time.

Where will the baby be changed and where will the dirty diapers go? Breastfeeding is a question that comes up, but regardless of whether you allow babies in the workplace, under the provisions of the Affordable Care Act you most likely have to accommodate nursing or breastfeeding mothers in the workplace anyway. That’s just a matter of using some thoughtfulness and care.

The babies need to always

be with their parent or their designated alternate and it might work best if their workspace is a private one with a door. Some

companies even designate a baby-free zone for those employees who prefer not to interact with the little one.

Some people are concerned that a parent will be so distracted by their See TAPPERO, 14

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!

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Greater Kingston Chamber of Commerce & Visitor’s Informa�on Center

Here’s an offer you can’t refuse!

DID YOU KNOW THIS?

Join us for lunch for just $15! Guests are always welcome at our Chamber Business Luncheon. The 1st Tues. of every month 11:45am-1pm At the Kingston Cove Yacht Club.

Reserva�ons please! (360)297-3813

The Kingston Chamber’s website is the official home of the Kitsap Community Calendar.

Just click on the “Submit an Event” box on the home page and add your event or meeting.

It makes sense to have one site for everyone in the county to use. We are happy to be your host. Please utilize this resource and pass the word. KingstonChamber.com

P A R T N E R

VISITOR’S CENTER: If you haven’t been to Kingston lately, you probably haven’t seen our beau�ful new Offices and Visitor’s Center. This picture (right) is taken from the ferry just before she lands. We’re in the ideal loca�on to catch the millions of folks traveling to the Kitsap and Olympic Peninsulas. This summer we have had a record number of visitors from all over the world. Most are traveling by car but many tourists and “locals” walk onto the ferry for the ride then find themselves in our beau�ful li le village. Our coffee shops, ice creameries, crepe shop and fish & chip house are seeing the benefits of this beau�ful summer. Come check out Kingston for yourself and please stop by!

We sell fishing licenses and souvenirs too!

C O M M E R C E

Colleen Carey Execu�ve Director

O F

BUY TICKETS FOR OUR SPECIAL SEAHAWKS LUNCH AT WHITE HORSE GOLF CLUB IN DECEMBER!

C H A M B E R

We are thrilled to join the Kitsap Peninsula Business Journal as their newest Chamber of Commerce Partner. As this is our first edi�on, allow me to introduce myself. My name is Colleen Carey. I grew up in Hansville, graduated from NK High, raised my family here and commuted to downtown Sea�le for 20 years. What a wonderful change to now work just 2 minutes from my home as the Execu�ve Director of the Greater Kingston Chamber of Commerce. There are many exci�ng happenings here: Construc�on is underway for the new Community Center, Library and Boys & Girls Club at Village Green Park. Groundbreaking next month for Point Casino hotel. Clear Water Casino & Resort’s expansion in nearly complete. We have a new Youth Sailing Program, Eco Tours and camps at S�llwaters, Youth & Adult Art programs at the Art Farm. We have hundreds of thriving small businesses, inspiring and mo�vated entrepreneurs, volunteer groups, service organiza�ons school/community func�ons, events and fundraisers, it is an incredibly vibrant and rewarding place to live and work. Get connected via our website and Facebook pages to stay current with the north end of the county!

K P B J

GREETINGS FROM KINGSTON

16

| September 2015

Community from 10

The community has a long list of amenities, including restaurant-style dining, housekeeping, salon, day spa, ďŹ tness center, trails and covered parking. An onsite clinic will be staffed by physicians and nurse practitioners, who will be contracted through one of the medical groups. â&#x20AC;&#x153;The facility will provide all kinds of services,â&#x20AC;? says Gig Harbor city administrator Ron Williams, adding that thereâ&#x20AC;&#x2122;s none exactly like it in the city. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s really a great option.â&#x20AC;?

Williams has toured the Emerald Heights campus in Redmond

Place from 7

â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re to the point now, though, where weâ&#x20AC;&#x2122;re maxed out in this building, honestly,â&#x20AC;? Kenady said.

Theyâ&#x20AC;&#x2122;re interested in the growing area around Sedgwick and Sidney roads for a possible long-term site for the restaurant.

That One Place, which sometimes hosts services for the Ekklesia congregation on Sundays when the diner is closed, may go someplace else eventually but the ownersâ&#x20AC;&#x2122; mission seems certain to abide.

The onetime work-release inmate who got help turning his life around is unabashed about sharing his Christian faith. Kenady has talked about his experience with youth groups at The Coffee Oasis, at church camps and other churches. â&#x20AC;&#x153;We had a sign at the bakery that said â&#x20AC;&#x2DC;where bread changes lives,â&#x20AC;&#x2122; because really that was our goal,â&#x20AC;? he said. â&#x20AC;&#x153;We have no intention (for the restaurant) to be nonproďŹ t, but this place is for God,â&#x20AC;? he added. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s everything we do. â&#x20AC;&#x153;Our sole intent is to make Port Orchard a better place and help the people who need help.â&#x20AC;?

and says it is a â&#x20AC;&#x153;ďŹ rst-class facility.â&#x20AC;?

It even has a small theater and closed-circuit television station, as well as a store run by residents, with proceeds going to the ďŹ nancial aid fund.

The residents at Emerald Heights participate in various committees, such as a food committee that selects the dining menu. A similar concept will be implemented at Heronâ&#x20AC;&#x2122;s Key. â&#x20AC;&#x153;This is a very attractive lifestyle,â&#x20AC;? Hardy says. â&#x20AC;&#x153;You can live each day without the daily stresses.â&#x20AC;?

That stress-free lifestyle, with various activities, was an attraction for the Berrys. â&#x20AC;&#x153;Sometimes when you get to the retirement stage, you live in

a bit of isolation,â&#x20AC;? Sandy says. â&#x20AC;&#x153;Living in a community where you can participate at a level youâ&#x20AC;&#x2122;re comfortable with is very appealing.â&#x20AC;?

HIGH DEMAND Reservations for future residents â&#x20AC;&#x201D; a 10 percent, fully refundable deposit â&#x20AC;&#x201D;have been offered since 2013. The reservation rate is already slightly over 70 percent â&#x20AC;&#x201D; a level that Hardy says wasnâ&#x20AC;&#x2122;t expected to be reached until next spring. â&#x20AC;&#x153;I think that tells us thereâ&#x20AC;&#x2122;s a deďŹ nite need and lots of interest for this type of retirement community,â&#x20AC;? she says.

Williams says part of the de-

mand is driven by Gig Harborâ&#x20AC;&#x2122;s growth in general. As an expanding employer base is attracting more younger families to the area, the retirees want to move closer to their adult children and their grandchildren. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a growing (senior) population and thereâ&#x20AC;&#x2122;s a huge need for it,â&#x20AC;? he says. â&#x20AC;&#x153;This is a great beneďŹ t because they can be close to family and their needs are taken care of.â&#x20AC;?

About 85 percent of those whoâ&#x20AC;&#x2122;ve made a deposit for Heronâ&#x20AC;&#x2122;s Key come from the West Sound area, but some are from the Seattle to Olympia areas and out of state. Their average age is 76. â&#x20AC;&#x153;Typically residents of a Continuing Care Retirement Community are planners,â&#x20AC;? Hardy says.

â&#x20AC;&#x153;They know they want to make this decision now so if they need assisted living or skilled nursing, theyâ&#x20AC;&#x2122;ve ďŹ gured it out early.â&#x20AC;?

Thatâ&#x20AC;&#x2122;s one of the aspects that the Berrys appreciate. They said in talking to many other residents at retirement communities, theyâ&#x20AC;&#x2122;ve concluded that itâ&#x20AC;&#x2122;s a decision best made while theyâ&#x20AC;&#x2122;re still active.

The couple will be 77 by the time Heronâ&#x20AC;&#x2122;s Key opens its doors, which is anticipated around February 2017. â&#x20AC;&#x153;Other people we know have a full and vibrant life in communal-style communities,â&#x20AC;? Richard Berry says. â&#x20AC;&#x153;Youâ&#x20AC;&#x2122;re not retiring from life in a place like this, youâ&#x20AC;&#x2122;re just changing your outlook.â&#x20AC;?

Landlordâ&#x20AC;&#x2122;s lawsuit over vacated site challenged by tenants who ran bakery

By Tim Kelly

tim.kelly@kitsapsun.com 360-792-3359

The bakery saga in downtown Port Orchard took another turn recently when the latest tenant vacated a troubled building in a block of Bay Street owned

by Mansour Samadpour.

That One Bakery had taken over the building lease last September from Gabrielle Freeland, who opened CafĂŠ Gabrielle at 707 Bay St. in February 2014. Prior to that the building had been empty for more than a year, after the previous owners of Morningside Bakery closed up shop abruptly and lost the building in a bankruptcy proceeding.

Abadan Holdings, Samadpourâ&#x20AC;&#x2122;s property management company, filed an eviction notice Aug. 5 against bakery owners Craig and Evalina Kenady, claiming they owed more than $12,000 in back rent and asscociated costs for utilities, property taxes and

maintenance.

The Kenadys have operated That One Place restaurant in Port Orchard since 2011, and they had planned to convert their bakery to a nonproďŹ t to help fund a charity project they are working to establish. â&#x20AC;&#x153;We couldnâ&#x20AC;&#x2122;t afford to be there any longer,â&#x20AC;? Craig Kenady said in August. â&#x20AC;&#x153;We had to make some tough decisions before it really affected everything that we had.â&#x20AC;?

He said he couldnâ&#x20AC;&#x2122;t comment more on the situation at the building because of the eviction lawsuit.

The Kenadysâ&#x20AC;&#x2122; attorney, Carrie Eastman, recently ďŹ led a response seeking dismissal of the Abadan lawsuit, contending that there is no basis for an unlawful detainer action because the owners had vacated the premises.

The response also argues that no back rent is owed because the business was â&#x20AC;&#x153;constructively evicted,â&#x20AC;? essentially a claim that the landlordâ&#x20AC;&#x2122;s actions

www.KPBJ.com

www.KPBJ.com

or inaction made the property untenable. The court ďŹ ling did not provide any details.

Under the terms of the lease the Kenadys assumed from Freeland, the

monthly rent was $1,850 and increased to $2,250 starting in 2015. A negotiated agreement canceled the rent increase, but the Abadan lawsuit claims the bakery owners still owed

several months of unpaid rent.

The bakery building is in the same block as the Port Orchard Public Market, a redevelopment project that Samadpour ďŹ nanced.

PRIDE OF BAINBRIDGE ISLAND Our Bainbridge Island escrow team is dedicated to delivering exceptional service and customer satisfaction.

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Rachel Snelson LPO/Escrow Officer

Malia Speck Escrow Assistant

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2021 NW Myhre Road, Suite 300

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921 NE Hildebrand Lane, Suite 200

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More Opportunity. Spirited Community. The Best Place to Be.

K P B J WHAT’S HAPPENING NEXT?

C H A M B E R

$15

Minimum Wage: Could You Be Next?

The minimum wage could jump 58% for Tacoma businesses as soon as January 1, 2016— with no exceptions. Employers unable to pay could risk jail time and a criminal record. Could your business across the bridge be next?

Public Affairs Forum Thursdays, 7:30 AM September 3, 10, 17, 24

Notorious Networking Night Tuesday, Sept. 8, 5:30 PM Host: Chapel on Echo Bay

Membership Luncheon Thursday, September 3rd Speaker: Teresa Renner

Business After Hours Wednesday, Sept. 23, 5:30 PM Host: First Citizens Bank

C O M M E R C E

Other Upcoming Events

O F

Learn more at: www.gigharborchamber.net/calendar Connect With Us

Gig Harbor Businesses Weigh in on $15 Minimum Wage Justin Stiefel, Founder, CEO and Head Distiller “A $15 wage thrust upon business would have a counterproductive impact on us and the community. And really, $15 would be closer to $19 when FICA and other matching state and federal withholdings are factored in. We would be forced to pass over low experience job seekers because training them would cost too much. But the bigger issue for us is that to make $15 work we would have to fully automate our production process and employ fewer people—which would result in fewer jobs in our community.”

P A R T N E R

Driven by 15NOW, Tacoma voters may be asked to raise their minimum wage to $15/hour effective January 1, 2015. That’s 7 years earlier for Tacoma employers than it will be for Seattle employers—no kidding! If the 15NOW folks prevail, odds are the $15 minimum wage will be headed your way.

The increase could come down sooner and harder on Tacoma businesses than on Seattle businesses. If so, Tacoma will have the highest minimum wage in Washington and the nation. That’s an unfair burden given that Tacoma’s cost of living is much lower than Seattle’s.

Imagine the disruption and consequences such an increase would cause, the hard choices small businesses will forced to make, and the chilling effect on new business formation, relocation and jobs. Now imagine it happening to your business—or maybe you’d rather not.

Through its Know15 campaign the Tacoma-Pierce County Chamber of Commerce is working to find a more sensible local solution. To learn more about the issues and Know15, visit www. know15.com. Then start a conversation with other businesses about a better solution on our side of the bridge.

Time to re-energize you AND your business with leadership skills and personal insights designed to take you to your next level of success. It’s AWOB’s first annual POWER UP conference.

18 | Monday, September 7,

Boxlight moves headquarters, plans expansion with IPO ■ Company now based

in Atlanta raising capital for acquisitions

By Tim Kelly

The Boxlight display at the ISTE conference earlier this summer in Philadelphia.

tim.kelly@kitsapsun.com 360-792-3359

Another technology company based on the Kitsap Peninsula is making a big move, geographically and financially.

Boxlight, a manufacturer and distributor of interactive projectors and related classroom products, relocated its headquarters from Belfair to the Atlanta area earlier this year. The company is preparing to go public with an initial public offering of its stock that could raise more than $20 million. The IPO had been planned for this month, but an announcement Aug. 13 on the website of Renaissance Capital said the IPO has been postponed. The new date for the IPO is uncertain, but could be in early September, according to an Aug. 14 email from Boxlight marketing director Sunshine Nance.

Boxlight wants to establish itself as a leading integrator of technology in classrooms, and chief operating officer Hank Nance said about half of the capital the company expects to raise from its IPO will go toward acquisitions of complementary technology companies.

Boxlight, which Hank and Sunshine Nance bought from founder Herb Meyer in 2009, will maintain a small operation in Belfair, with six to 10 employees working at a service center and warehouse.

Mark Elliot will become chief executive officer of the new Boxlight Corp., while Hank Nance will continue as president of Boxlight’s subsidiaries.

Elliot has been CEO for the past two years of Genesis Collaboration LLC, a Georgia-based company that provides interactivity solutions. He previously was president of the Global Business & Government Division at interactive technology manufacturer Promethean Corp., which is listed along with Boxlight as a “strategic partner” on the Genesis website.

As reported in the Atlanta Business Chronicle on July 29, Boxlight’s S-1 filing for its IPO includes plans to acquire Genesis and two other companies — Taiwanbased Everest Display Inc. and Israel-based Globisens Ltd. “Through the acquisitions of (Everest) and Globisens, we seek to become a single source, world-leading innovator, manufac-

PHOTO COURTESY BOXLIGHT

turer and integrator of interactive products for schools and universities, as well as for the instruction and professional development markets for business and governmental agencies,” Boxlight said in the filing.

In a recent phone interview with the Kitsap Peninsula Business Journal, Nance explained that his company will be positioned to fill a need for a single entity to effectively coordinate technology use in educational settings.

“There is so much technology in a modern classroom, but there’s not a single point of accountability,” he said, since schools may have an array of devices and software programs purchased from different manufacturers. “There really wasn’t anybody looking at it from a holistic approach.”

In discussions Boxlight tech support staff have with clients, Nance said it’s clear that chief technology officers in school districts and other decision-makers want help in supporting classroom technology that can be very fragmented.

“We said ‘why don’t we be the company that brings all this together?’ All the display products and all the peripheral items in the classroom,” he said.

Nance said he started talking with Elliott about four years ago about possible collaborations to address that need. That evolved into a strategy of taking Boxlight public and expanding it to bring in other tech manufacturers and resellers.

“We want to be what I’m calling an education powerhouse, a full-service provider for products like Boxlight projectors that we manufacture, and also from our sales partners,” Elliott said in a separate phone

interview. “We want to roll it all together and have a very aggressive merger strat-

egy to bring in other companies of similar profiles.”

Nance said a successful IPO will give Boxlight a valuation of approximately $85 million. The company has about 150 employees, including those at its three manufacturing facilities, in Taiwan, China and Mexico.

Boxlight’s new headquarters is in Lawrenceville, Georgia, in a building that has 30,000 square feet of warehouse space next to the Genesis Collaboration office.

Nance said Boxlight will use the warehouse space for its mobile projector carts that are shipped from a manufacturer in Germany. Those products previously were shipped to Boxlight’s West Coast distribution center.

The Boxlight operation in Belfair that’s currently in a retail center will be moved to a more suitable location.

“We are also looking at an expansion See BOXLIGHT, 36

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Events And Activities VISIT the HBA Website! www.kitsaphba.com

BOOTH SALES on now for the Peninsula Home & Remodel Expo!

Visit www.kitsaphba.com Navigate the site by clicking on the Expo Icon Wednesday, September 2 Kitsap HBA Remodelers Council, 4pm “How to HOUZZ!” Advanced Registration Required All Professionals Welcome $20.00 for non-members

Thursday, September 3 HBA Developers Council, 7:30am Monday, September 7 HBA Office Closed Have a Safe Labor Day! Wednesday, September 9 Kitsap HBA Remodeling Excellence Awards 5:00pm, KGCC Advanced Registration This is a BUILD Your Network Event Thursday, September 17 Fall Season Social! Nothin’ But Fun! Moon Dogs Too, Port Orchard Advanced Registration $10 ($15 at the door) This is a BUILD Your Network Event

Thursday, September 24 Executive Comm. Mtg., 2:00pm Government Affairs Comm., 2:30pm Board of Directors 3:30pm (Note: During campaign season the Exec. Cmt. & GAC may alter their start times) MARK YOUR CALENDAR

October 2-4 Peninsula Home & Remodel Expo

Thursday, October 8 Special Date for HBA Developers Council Mtg. Council will not Meet on Oct. 1

Thursday, October 8 HBA Annual General Membership Meeting KGCC, 11:15am – 1:00pm This is a BUILD Your Network Event

Characteristics of Home Buyers Housing Economics Special Studies, July 2015 The American Housing Survey (AHS) is conducted on odd numbered years by the U.S. Census Bureau at the request of the Federal Department of Housing and Urban Development. The results are reviewed by NAHB and reported to members. For the full NAHB report, Characteristics of Home Buyers, please log into NAHB.org and use the search tool for that full study written by NAHB staff Heather Taylor.

Interestingly, for first-time home buyers, the price of the home was the most important factor followed closely by layout/design. While new construction buyers were less price sensitive, they too ranked the layout/design as the single most important factor in their selection. Interestingly, the “house itself” was the most common deciding factor for buyers, more so than the location of the home except that the safety of the neighborhood/area was a key decision point. Access to transportation was not a factor of high importance to most home buyers (16%).

Almost twice as many people recently bought homes in the two years considered by the 2013 AHS compared to the two years leading up to the previous AHS (2011).

2014 and 2015 showed steady increases in our local market so it is expected the 2015 results should reflect more improvement. New home construction sales were only 11% of the total market in the 2013 survey. This is consistent with the barriers home buyers face when affording new construction. The median value of new homes was $231,000 which was 38% above the median of all homes purchased during the survey period. There is a gap between what the median price is for new home construction and what buyers want (or feel they can afford) to pay. The gap is about 10%. This is part of the reason buyers purchase existing housing stock over new construction.

Check out this report and other informative industry studies and data at the National Association of Home Builders website, www.nahb.org.

2015 Officers President................................... Kevin Ryan 1st Vice President...................... Jim Ullrich 2nd Vice President ............. Miriam Villiard Treasurer ....................... Randy Biegenwald Secretary .................................Dee Coppola Immediate Past President..... Judy Mentor Eagleson

2015 Builders & Assoc. Directors Bill Broughton, Walter Galitzki, Stuart Hager, Jim Heins, Joe Hurtt, Berni Kenworthy, Jo Pederson, Leslie Peterson, Jim Way

2015 State Directors Robert Baglio, Lary Coppola, Judy Mentor Eagleson, Justin Ingalls, Wayne Keffer, Ron Perkerewicz, Kevin Ryan, Jim Ullrich

2015 Alternate State Directors John Armstrong, Rick Cadwell, Kevin Hancock, Byron Harris, Brent Marmon

Life State Directors Bill Parnell

2015 National Directors Kevin Ryan, Shawnee Spencer, Jim Ullrich

Businesses in Kitsap! It’s time!

Reserve your booth for the 10th Annual Peninsula Home & Remodel Expo today! EXPO is Friday – Sunday, October 2 – 4 @ the Kitsap County Fairgrounds.

Expo vendors will get: At least one listing on the Expo website (www.kitsaphbahomeshow.com) At least one listing in the printed Official Expo Guide distributed to thousands of Kitsap Sun subscribers (booth must be purchased before 9/15)).

Extensive Expo Promotion in print, online, and television Access to a professional designer for help with your booth design and display Space with professional pipe & drape 21 Hours Open to the Public Free Parking Flexible hours for set-up and tear-down Free electricity (110 v but 220 is available for a nominal fee).

Free WiFi Peace of mind: On-sight, afterhours security

2015 Alternate Natnl. Directors Mike Brown, Jeff Coombe

Life Directors Rick Courson, Bob Helm, Bill Parnell, John Schufreider, Dori Shobert, Jim Smalley, Larry Ward

2015 Council & Committee Chairs Build A Better Christmas ..... Randy Biegewald Built Green.............................Walter Galitzki

By Laws & Nominations ........Judy Eagleson Developers Council..................Robert Baglio Golf Classic........................Shawnee Spencer Govt. Affairs Cmt.........................Jim Ullrich Remodelers Council Chair... Dale Armstrong Membership ..........................Miriam Villiard Parade of Homes .................................... TBD Peninsula H&G Expo....................Lena Price Peninsula H&R Expo............................. TBD

HBA Staff Exec. Vice President .....Teresa Osinski, CGP tosinski@kitsaphba.com Events & Admin. Assistant .......Katie Revis hbaevents@kitsaphba.com Admin. Coordinator .......... Jennifer Summers info@kitsaphba.com

Access to professional Expo management every day.

The Peninsula Home & Remodel Expo is a great way to promote your business and generate a buzz about your services.

This Expo is a great place for all of Kitsap’s best companies! From Contractors to chiropractors and Roofing to Real Estate, the Peninsula Home & Remodel Expo is a great fit for any business looking to promote its services in Kitsap County.

Check out all the details at www.kitsaphba.com by clicking on the Peninsula Home & Remodel Expo icon to navigate to all the information and reservation forms. Call the HBA directly if you have questions (360-479-5778).

Home Builders Association of Kitsap County 5251 Auto Center Way, Bremerton, WA 98312 (360) 479-5778 • (800) 200-5778 FAX (360) 479-0313

www.KitsapHBA.com

Kevin Ryan Tim Ryan Construction

Teresa Osinski CGP

President, 2015

Executive Vice President

Drill Down on Safety

39.5%: The New Majority

As we close out the summer months and shift gears to the fall season I am reminded that in our industry we sometimes forget to consistently keep workplace safety the top priority. Just as we have all learned to drill down in our workplace folders we create on our PC’s or that TV remote looking for the right movie, the concept is the same.

It’s that time of year when I think about elections coming up and I think about all the people that I know that won’t vote. According to information on the Washington Secretary of State’s website, data from the 2010 Census suggests that about 1 in 4 eligible adults aren’t even registered to vote. This isn’t a new problem. According to the Secretary of State’s election statistics, we’ve hovered in this same statistical area since 1980. In other words, since about 1980 we’ve consistently seen about 25% of eligible citizens choosing not to register to vote. As a result, when you considered the total eligible population and voting turnout rates only 70% of eligible citizens are voting. Depending on the year, the number can be significantly lower.

As General Contractors and Subcontractors we are required to have “Site Specific” Safety Plans in place on an ongoing basis. The requirement for this may seem onerous at first but, if you really peal back the layers it is a great communication tool for the management and the field crews to think through how a particular project will be put together.

I will admit that there are some activities that may occur that regardless of the project will be approached the same way each time as it relates to safety protocol. There will always be a need for hard hats, safety glasses, ear protection, and other PPE (Personal Protective Equipment) at times on most projects. The challenge as I see it is to really look at how a particular project is different from the last one as it relates to new hazards that could potentially cause harm to your employees and others working in the vicinity.

One great tool we have utilized is called a JHA (Job Hazard Analysis) that will, by its design, assist in helping you specifically drill down further on specific phases of work and help you and your crew really put in place an action plan that fits with the work you’re actually doing. Whether it is forming that next foundation wall, erecting the columns, beams, working the roofing, excavating, siding, or painting, there will always be something unique to each project.

Learn to simply list out the hazards of each activity, ways to mitigate the hazards, and then review with your crew your plan. Input from the crew is crucial to build trust, and shows that you respect and value their ideas. You may be surprised at how many good ideas come from getting all parties to engage in the process. By marking up plans and providing sketches showing your areas of work and adjacent hazards you can work toward making things specific to your site.

On complex projects you may want to have multiple JHA’s for many different activities. Project phasing helps you breakdown areas of work and can also help in discussing in more detail with your crews not only how you plan to build each phase but, how you will continue to keep your jobsite safety on the front burner. You will find that by drilling down your crew will be better informed, more productive and prepared beforehand because they have carefully thought through not only the safety hazards but the nuts and bolts of the build as well.

Voter Registration Deadlines for 2015 General Election Oct. 5: Deadline for new registration, address changes & other updates Oct. 16: Ballots mailed to registered voters Oct 26: Deadline for in-person NEW WA State Voter Registrations Nov 3: General Election Day Note: If you are a registered voter but missed the deadline to update your address, you can still vote. Contact the county elections department where you are CURRENTLY registered to request a ballot.

Our government depends on your vote. Our government makes essential decisions about public policy and how to collect and spend taxes. Taxes are a percentage of your hard work and income. In the same way you want to make decisions about the money you keep, you should also want a say in how the money you contribute through taxes is spent. You have that say, in part, with your vote.

Elections are increasingly more important and impactful as they get closer to the people. While voting participation is strongest in Presidential Election years, the mid-term elections, like this year, are arguably as important, if not more important.

In 2012, the percentage of the “Voting Age Population“, that actually voted, was just under 61% in Washington State. In the 2014 election, the percentage of eligible voters that were actually represented at the polls was only 39.5%.

Think about that. Do you often feel like you’re a minority? That your view isn’t represented by the elected officials? Do you feel disconnected and disenfranchised?

Did you vote? If 39% of the adult population is voting, and if that 39% happen to be of significantly one view or another (for example when a ballot item motivates a particular demographic to vote) you are allowing the MINORITY opinion to achieve the MAJORITY vote.

Public policy is made by those that show up! It’s a fact. Those that approve policy are the ones that got elected by the people that showed up at the polls. You must be registered, you must learn the issues, and you must cast your ballot. Our government is based on this basic civic duty. A failure to honor your responsibility is not excused by the nonsensical argument, “My right to vote is also my right not to vote.” You have a duty and responsibility to honor the gift of the right to vote and practice that during each election. A ballot is not like a quiz in school. It’s perfectly okay to skip a question. If you feel you are only able to vote on some aspects of a ballot, then only vote on the part you feel you can. But vote you must!

To register to vote, please go to the Kitsap County Auditor’s office on Division Street in Port Orchard, pick up a registration at any of the Kitsap Regional Libraries, or go online to www.secstate.wa.gov.

All Businesses Can Make the HBA Their Business!

Did you know that being a member of a respected trade association like the HBA of Kitsap County is good for your business? It gives the public greater access to you and tells them that you care about your profession and our community.

The HBA has been promoting the construction industry in Kitsap County for 60 years! With leveraged buying power, product rebate programs, networking, and so much more, why aren’t you a member?

What do you buy that is less than $2.00 per day? You can receive priceless industry advocacy support (local, state, and national) for your investment of just $1.56 per day! As a member you can get a quarterly rebate on name brand products; possibly hundreds of dollars back to you, for an investment of just $1.56 per day. Help us help you! Call for information.

Government Affairs Committee Jim Ullrich, Ullrich Contracting Inc.

Interesting Times We live in interesting times. I use this phrase in relation to the Chinese curse, “may you live in interesting times.” People ask, “How is this a curse?” It was meant to cause consternation in an individual because a non-interesting time was a time of peace and security.

We are in the early stages of the primary elections for the general elections coming up in 2016. The Republicans have a varied and sundry array of candidates. The Democrats have a much smaller number of candidates running. The interactions amongst the party candidates and across party lines are at times deafening and bombastic to the extreme. It has been stated that 65% of the US population feels that our country is going in the wrong direction. If you are part of that 65%, please take the time to truly listen to what the candidates say. More importantly try to understand what their plans are for our country if they are elected. It is far more important that they have a plan to fix the problems than just going around stating what the problems are. We all know what the problems are. I ask that you think for yourself and don’t let the media convince you one way or another. Don’t let personalities cloud your vision. We must select the best person for the job. If your selection process goes no further than their sex or skin color then you are part of the problem. In 2008 an election was held and it’s possible that a man was elected to the Presidency for no other reason than his skin color. If people had taken the time to read what his plan was, in his own words, I don’t believe he would have been elected. He doesn’t believe in American exceptionalism and has done so much to destroy it. But this is what he said he wanted to do. He didn’t dupe us, we duped ourselves. The fault is not his, but ours. He stayed true to his word. Now we are in a situation where our friends don’t trust us nor do our enemies fear us. This has made these times much more interesting, unfortunately.

Companies in Kitsap that are in the construction trades may find the BIAW Health Insurance Program to be a better quality and more affordable that options available through the Washington State Health Exchange. If you haven’t received a quote recently, we recommend you do! Quotes are free, and any Kitsap company in a construction related field can request one. HBA Membership is required to enroll in the program. Please contact the HBA to receive an application. The BIAW Health Insurance Program is one of the very few association health programs considered to be bona fide by the Washington State Insurance Commissioner. Check it out!

Home Builders Association of Kitsap County: 360-479-5778 or by email at info@kitsaphba.com.

NAHB MEMBER ADVANTAGE

Please for the sake of our country and our children take the time to select the person that will lead our country in the right direction. I am not telling you who to vote for, I would not presume to. I am asking that you don’t judge by the color of their skin or their sex but on the content of their character and their plans for our country.

Candidate Endorsements The Affordable Housing Council of the HBA of Kitsap County has begun endorsing candidates running for public office. At this time the following candidates have been endorsed by the HBA. Richard Huddy, Bremerton City Council Greg Wheeler (Incumbent), Bremerton City Council John Clauson (Incumbent), Port Orchard City Council Cindy Lucarelli (Incumbent), Port Orchard City Council Shawn Cucciardi (Vacated Seat) Port Orchard City Council Rob Putaansuu, Port Orchard Office of Mayor Connie Lord (Incumbent), Poulsbo City Council Kenneth Thomas (Appointed Incumbent), Poulsbo City Council Interviews continue and are open to all current HBA members.

Remember the general election is Tuesday, November 3, 2015.

HBA ANNUAL General Membership Meeting Thursday, October 8 – 11:15am to 1pm All HBA members are encouraged to attend the annual General Membership Meeting and luncheon scheduled for Thursday, October 8 at the Kitsap Golf & Country Club. During this meeting several important pieces of HBA business will be discussed including the election of the 2016 Officers and Directors. Your participating matters and we’d like to see you at this informative and important annual meeting of the HBA Members.

Watch your U.S. Mail for the official notification of the meeting, including the Board approved slate of nominees for the 2016 Board of Directors. You should receive it on or about September 29th. If you do not receive it, be sure to contact the HBA. The 2015 By Laws & Nominations Committee is Chaired by Immediate Past President Judy Mentor Eagleson. If you have an interest in serving on the HBA Board, please let Judy know. To be considered for the board you must have been a member of the Association for at least one year. There are attendance requirements for board meetings so be sure to consider your availability if you’re interested.

WELCOME NEW MEMBERS GR Construction & Design, LLC Gary Reynolds PO Box 516 • Indianola, WA 98342 (360) 860-1688 grconstdesign@gmail.com

Guest Column by: Elliot Eisenberg, Ph.D., GraphsandLaughs, LLC

Rate Rise in September?

(Note: This article was provided by Dr. Eisenberg in early August 2015)

And the SPIKE goes to…..

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Change Your Batteries!

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Be safe!

Smoke detectors save lives!

The Federal Reserve dropped the federal funds rate to zero in late 2008. Never in their wildest imagination did they think that seven years later the rate would still be zero. Of late, reasons the rate remains low include a rapid slowdown in Chinese growth, a tumbling Chinese stock market, the ongoing Greek crisis, and closer to home, very weak inflation and slow growth. Despite these problems, the Fed will raise rates soon, quite possi-bly in mid-September.

While China’s GDP is now growing at a sub-7% rate for the first time in decades, outside of a small reduction in American exports to China and slightly weaker raw material prices, the impact of the slowing will be little felt by us.

As for the stock market swoon, it’s important to note that equi-ties play a minor role in the Chinese economy. Fewer than 15% of Chinese household financial assets are in the stock market, and the value of all tradeable shares is about 30% of GDP, compared to 125% here. As a re-sult, just as the run up in prices had little impact on the real Chinese econo-my, the bust will be no different. Also, the recent stock market sell-off, just like the previous one, is not a harbinger of economic decline.

Looking to Europe, while Greece is likely to roil the EU for years, it is no larger economically than Oregon. Moreover, because 83% of Greek debt is held by other European nations, the IMF and the ECB, only 17% is held by private banks. Thus, even a complete Greek bankruptcy would do little damage to the rest of Europe. This was evidenced during the run up to the snap referendum Prime Minister Tsipras recently called to improve his bargaining position. It backfired as there was virtually no increase in vola-tility in European stock, bond and foreign exchange markets. In terms of impact to the US, a slightly weaker euro will hurt exports marginally but there will be few, if any, other consequences.

As for our economy, the unemployment rate is fast approaching 5% or full employment, and the labor market has hit its stride. Last year, monthly employment growth averaged 260,000, the best since 1999, and so far this year it is averaging a respectable 208,000. In 2013 it was 199,000 and in 2012 it was 188,000. As you can see, monthly employment growth peaked in 2014, suggesting that there will be no more additional mass movement from the ranks of the unemployed to the working. As for GDP growth, it was 2.4% last year, 1.5% in 2013, and has averaged 2% since the end of the recession. Here too, there appears no indication that rapid GDP growth is right around the corner.

Finally, inflation, while very low, has stopped falling and is starting to creep up and wage growth may see some increases in the near future.

With foreign economic turbulence unlikely to impact the US, domestic GDP and employment growth not expected to meaningfully improve, and inflation and wages hopefully on the rise, there is no longer any reason for the Fed to wait before raising rates. Moreover, by raising rates this Sep-tember, the Fed will be able to wait several quarters before tightening again. By contrast, if they wait to raise rates, they may be forced to in-crease rates rapidly, and that could be disruptive.

Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.

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24

| September 2015

Avalara’s 150 jobs leaving Bainbridge ■ Sales tax software firm seeks more space, moving to Seattle

By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

Fast-growing sales tax software company Avalara will shift its headquarters from Bainbridge Island to Seattle by early 2016, taking 150 employees with it.

The move was announced on the company’s Facebook page Aug. 11. Avalara was looking for more space than was available on the island and wanted easi-

er access to the Seattle-area tech workforce, according to the post.

“We are proud to have bucked the odds for 11 years and built a worldclass business on Bainbridge Island, which is a huge tribute to our exceptional Kitsap employees and supportive community,” the Facebook post said.

Spokeswoman Sheri Pollock said Avalara began moving employees from Bainbridge to Se-

attle in early 2014. The company’s remaining workforce on the island will make the transition during the fall and winter.

Avalara’s new headquarters will be at Second Avenue and Spring Street in downtown Seattle.

Avalara, which creates cloud-based software that helps businesses track sales tax, was founded on the island in 2004 and occupies offices in the Island Gateway development at

Highway 305 and Winslow Way. The company grew in bounds in recent years, landing huge capital investments, gobbling up other firms and opening offices around the globe.

News of Avalara’s relocation plans did not come as a surprise to Kitsap business leaders.

“They’ve built a really dynamic company,” Bainbridge Island Chamber of Commerce President Rex Oliver said. “Unfortunately,

it just grew bigger than the island.”

Oliver said Avalara is Bainbridge’s largest employer of “reverse commuters” — workers who travel from the east side of Puget Sound to the island for work.

Locating closer to the tech industry epicenter in Seattle made sense.

That said, the move will be a loss for the island.

“They’ve been a huge part of the community for

years,” Oliver said.

John Powers, executive director of Kitsap Economic Development Alliance, called Avalara’s impending departure “bittersweet.”

Losing a top employer is tough, he said, but Avalara’s rapid growth is a success story for the region.

“Avalara is the poster child proving the case that you can build a world-class tech company here in the West Sound or Kitsap,” Powers said.

As for the relocation, “You understand it, you congratulate them and you build on their legacy,”

Two more Bremerton apartment projects in the works

By Josh Farley jfarley@kitsapsun.com 360-792-9227

Some blighted buildings on Burwell Street are being targeted by developers as part of downtown Bremerton’s apartment construction boom.

Two new proposals — one at 242 Burwell (site of the defunct Nite Shift Tavern), and the other at the corner of Burwell and Warren Avenue — are working their way through City Hall.

“I’m elated,” Bremerton Mayor Patty Lent said of the projects, each of which would build about 30 new apartment units. “They don’t have to be big, but just a continuation of what we’re already doing. Every little space that gets upgraded is a step forward.”

On Aug. 6, the apartments’ developers presented their plans to the city’s Design Review Board, a bureaucratic hurdle that ensures the projects follow development regulations.

A familiar face presented the first project: PJ Santos with Lorax Partners, the would-be developers of 26 units at the corner of Burwell and Warren. Lo-

CONTRIBUTED RENDERING

Artists rendering of a modular apartment complex planned for the location on Burwell Street previously occupied by the Nite Shift Tavern.

nontraditional approach to development is brewing.

Dale Sperling, a developer who has lived in Kit-

TIM KELLY PHOTO

The view through the glass front door of the former Nite Shift tavern at 242 Burwell St. in downtown Bremerton shows the empty space after demolition of the building.

rax has long been involved in city projects, including the Bremerton Harborside complex and the 606 Apartments under construction at Fourth Street and Park Avenue.

Santos said the three-story Burwell development, valued at around $5 million and similar in appearance to the 606, will also remove “one of the

worst eyesores downtown” — a clutter of boarded-up row housing currently at the location. Diamond Parking currently owns the site, Santos said.

Lorax sees a pent-up demand for upscale apartments in Bremerton.

“A lot of people would like to live and walk to where they work,” he said.

Up the street, a more

sap County for more than 40 years, purchased the old Nite Shift Tavern for $250,000.

He’s using the construction methods of One Build, the Seattle company he founded, to build a fourstory, 30-unit complex. The company prefabricates an entire modular structure in China, then ships it to the location and connects them like giant Legos.

That’s the plan for the Nite Shift site, too.

“I’m more excited than ever” to be developing in Bremerton, he said.

Cost of the project has not been disclosed.

Neither project has a construction timetable yet.

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SEPT 9:

Chamber September Luncheon

Sponsored by Kitsap Rescue Mission 11:30 am-1 pm at Gateway Fellowship

SEPT 12:

Grand Opening Ceremony - Poulsbo Visitor Center

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at 360-779-4999 to learn more.

P A R T N E R

Greater Poulsbo Events Calendar

C O M M E R C E

Mark W. Costa

O F

Sponsored by www.PoulsboChamber.com

C H A M B E R

September Luncheon

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K P B J

Message from the President of the Board of Directors

26

| September 2015

T&C Market’s new look complete ■ Extensive remodel of iconic Bainbridge store took 18 months

By Rachel Anne Seymour rachel.seymour@kitsapsun.com 360-792-5242

Culinary demonstration clerk Virginia Simon serves up baked salmon with tomatoes and green olives at Bainbridge Island’s Town & Country Market.

BAINBRIDGE ISLAND — Con-

struction on the Town & Country Market in Winslow is done, and the final touches are being completed after 18 months of work.

Customers can watch culinary demonstrations and find plenty of seating with the new renovations, and they will be able to fill growlers and pick up sushi soon, too.

The renovations added about 3,000 square feet of space to the sales floor along with a more open layout for a total of 35,000 square feet.

All shopping is done on one floor now. In the past, customers had to venture to the basement for beautyandhealthproductsaswell as the restrooms, which moved to the main floor.

The basement is now used for offices, storage and an employee

PHOTOS BY MEEGAN M. REID / KITSAP SUN

break room.

“It’s really a whole new store,” spokeswoman Becky Fox Mar-

Gordon Aber looks at rows of colorful tomatoes at Bainbridge Island’s Town & Country Market.

shall said.

Employeesevenhadamockribbon cutting for the new restrooms with toilet paper instead of ribbon.

Whileeventhesmallestupdates have been celebrated, the renovation was not just about bringing all the departments to one floor.

Shoppingandeatinghabitshave changed since the market opened 56 years ago, Marshall said, and the renovations were part of the store’s look at how to better serve customers.

Shoppers are making more frequent trips to the grocery and trying different cuisines, Marshall said. Fewer people are sticking to

the same recipes over and over again.

Bainbridge Island resident Hilary Hilscher goes to Town & Country about four times a week, she said, for the fresh local food.

To mesh with changing habits, Town & Country is offering a larger fresh food selection and a new layout.

The seafood section has expanded and is included in the market’s meat department. There are fresh noodles and pre-made sauces,alongwithasaladandantipasta bar. There are no Coinstars or lottery tickets, Marshall said.

The store is about food and flavor.

Added stores to increase mall’s footprint

By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

Kitsap Mall is 30 years old and still growing.

The Silverdale shopping center will add more than 40,000 square feet to its building in coming months to accommodate two major retailers.

The first expansion will add 11,200 square feet north of Macy’s. The add-on will be combined with 11,420 square feet of remodeled space in the existing building to

create a roughly 23,000-square-foot H&M store. H&M, a Swedish apparel seller, was announced as a tenant this year and is slated to open in November.

The second project will make room for a Dick’s Sporting Goods by adding 29,738 square feet south of Barnes & Noble. Dick’s will occupy an additional 15,000 square feet of renovated space. The sporting goods store is expected to open in mid-2016.

The Dick’s expansion will eliminate a Kitsap Transit stop on the west side of the mall, according to permit documents. The bus stop could be relocated to the east side

of the building.

Permit documents show two smaller expansions will add retail space near H&M, and expand and improve the mall’s west main entrance. The mall will gain 99 parking stalls by re-striping portions of the parking lot, bringing its total number parking stalls by re-striping portions of the parking lot, bringing its total number of spaces to 3,757.

Kitsap Mall general manager Erin Leedham said customers should expect construction to continue in various areas of the mall for 1½ years.

Customers wanting to make quick pickups, grabbing coffee or prepared food, can park and enter the northeast corner of the building. The traditional grocery store entrance by the produce section is on the west side of the building.

Throughout the entire renovation, the store stayed open. It was rough and chaotic, Marshal said, asdepartmentsandproductswere constantly being moved.

Hilscher credited the smooth transition to the employees’ positive attitudes and willingness to help customer locate the seemingly elusive items they came to buy.

Ellen Connolly had hated grocery shopping until moving to the island more than 20 years ago.

Town & Country changed that for her, she said, because of the staff and selection of food.

“It just worked for me like no other grocery store had done,” she said.

Connolly and Hilscher continued to shop at the store during the remodel.

There was no doubt the market would stay downtown, Marshall said.

“We know what we are to this community,” she added.

Being in Winslow has made parking a little trickier because of the popular shopping location, and with the renovations the store lost 30 parking spaces. It now has 145 parking spots and the lot has gone from two to one hour parking. Town & Country Markets Inc. also owns Central Markets in Poulsbo,MillCreekandShoreline, as well as markets in Ballard and Bellevue.

“We apologize to our shoppers for all the dust and noise but enjoy the expanded shopping opportunities that these tenants bring to the peninsula,” Leedham said in an email.

The mall has been adding tenants at a furious pace. Buffalo Wild Wings opened in the shopping center this year and will be joined in the fall by a Potbelly Sandwich Shop and Qdoba Mexican Grill. Lane Bryant and Just Sports remodeled their mall spaces, while Victoria’s Secret expanded with the opening of a Pink store in June.

Built in 1985, the main mall building covers 710,000 square feet. Starwood Retail Partners of Chicago bought the center in 2013.

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28

| September 2015

The most fashionable truck in town

■ Port Orchard woman creates The Dressing Vroom, a mobile boutique

By Tim Kelly

tim.kelly@kitsapsun.com 360-792-3359

Leslie Gaschler has taken the mobile vendor concept that works well for food trucks and applied it to selling women’s clothes.

The Port Orchard woman’s boutique on wheels — The Dressing Vroom — is a converted FritoLay delivery truck. It once had Doritos decals on the sides but now has a bumper-to-bumper teal paint job.

“I wanted it to be something you’re not going to miss,” Gaschler said as she opened for business on a recent Thursday in the parking lot at Whiskey Gulch, a coffee shop, café and bar next to the Annapolis passenger ferry dock.

The Dressing Vroom made its debut May 1 at Café Soleil in Port Orchard, but Gaschler had had the idea to open a boutique since moving to the community in 2009.

“When we moved here, I noticed there really wasn’t a place to shop in Port Orchard,” she said.

She talked about opening a store with her husband, a Navy officer who works at the shipyard in Bremerton. They held off on the idea because he thought they’d be here only two or three years before he’d get transferred again.

They’ve been here more than six years now, and have a daughter in preschool, so Gaschler thought the time was right to launch her business venture.

She previously had worked in real estate and started looking for store locations, but hadn’t found a suitable spot when she and her husband had an “aha” moment.

“We both said at the same time, ‘what about mobile?’” she said. “We decided it would be a mobile boutique, and we’d make it as convenient as possible for busy women.”

Once they found the truck through a craigslist broker, Steve Gaschler built shelves and display racks and transformed the interior into a stylish shopping space. The turquoise and white color scheme evokes “a beachy,

Gulch on Thursdays as well.

“You can’t beat the view,” she said of the waterfront location. “Annapolis is a good area — people can shop at Josephine’s for home stuff, come here for an outfit, then eat or have coffee at Whiskey Gulch.”

Other regular stops include Saturdays at The Lighthouse restaurant in downtown Port Orchard, and she’s made a couple visits to Bremerton. She also books the truck for driveway parties on weekends.

Her mobile boutique, which Gaschler is “pretty sure” is the first of its kind in Western Washington, also has jewelry, scarves, hats and beanies, and a shelf of shoes displaying an eye-catching pair of leopard print wedges.

In August she went to Magic, a fashion industry show held twice a year in Las Vegas, to check out fall styles to add to her mobile inventory.

“I have loyal customers PHOTOS BY LARRY STEAGALL already who come in once Leslie Gaschler operates a mobile clothing boutique out of a truck in Port Orchard. Her business is called The Dressing Vroom, which opens a couple days a week to see what’s new,” a week by Whiskey Gulch coffee shop and café (above) next to the Annapolis passenger ferry dock. she said.

If her business accelerMcGee started the Annapo- ates, Gaschler may look to add lis Sunday Market in 2013 with another teal truck, and she defithe owner of neighboring busi- nitely would like to someday open ness Josephine’s Redeemed a store that’s not on wheels, so she Boutique, a vintage home décor could “have more merchandise store. When McGee and his wife and carry a good assortment of heard through Facebook earlier sizes.” this year about what Gaschler And what would happen to The was planning, they asked her to Dressing Vroom if her Navy fambe part of the market during the ily gets transferred again? summer.

Gaschler, who’s from Charles“Her idea is a really cool spin ton, S.C., could drive the truck on the food truck concept,” to their next stop, depending on he said. “In Annapolis we like where it is. Or it could keep makunique and new ideas.” ing the rounds here without her.

Gaschler was surprised by the “I’d have to find that right perrequest, because her truck was son to run it for me,” she said. still being painted at the time at For now she’s focused on revPort Orchard Auto Body. But the ving up her new venture.

Sunday market — where The “Opening a business, who coastal feel,” Leslie said.

Whiskey Gulch owner Rob Mc- Dressing Vroom was a colorful wouldn’t be nervous,” she said.

“We wanted people to come in Gee said. contrast with the familiar Pink- “But it’s been great. The comand feel welcome, and forget that “They did a fantastic job. You anator food truck — became a munity is loving it, we’re getting they’re in a box truck.” feel like you’re in a store when you regular stop for her mobile bou- positive feedback — I couldn’t The Dressing Vroom does that, walk inside that thing,” he said. tique, and she sets up at Whiskey ask for more.”

CHAMBER

K I T S A P

NORTH MASON

B ELFAIR L ICENSING | V ISITOR C ENTER

MAKE A NOTE OF IT UPCOMING EVENTS

ENGAGE … ENERGIZE … EXCEL

Chamber After Hours The Selah Inn 5:00 – 7:00 p.m. www.selahinn.com

WEDNESDAY, SEPTEMBER 23

THURSDAY, SEPTEMBER 24

We sold more than 2,500 of “Harry Martin’s World Famous Oysters” at the Taste of Hood Canal this year, thanks to volunteers like Adena Clark (left) and Stephany WilkieMoore, both Chamber staff.

SATURDAY-SUNDAY, OCTOBER 3 & 4 OysterFest in Shelton www.oysterfest.org

Members thoroughly enjoyed luncheon speakers Washington State Representative Drew MacEwen and Lori Tsugawa Whaley, author, Speaker and Life Coach.

THURSDAY, OCTOBER 8 Chamber After Hours 5:00 – 7:00 p.m.

Location tba

SHOP LOCAL at the Belfair Saturday Market Open 10 a.m. to 2 p.m. every Saturday through Sept. 26.

Located at the corner of NE Roy Boad Road and NE Clifton Lane (the small road between Safeway and QFC).

P A G E

Many thanks to Cat Ross and North Mason Resources for sponsoring our July luncheon.

Sunrise Equine Rescue Sheila Christiansen, Vice President/Treasurer P.O. Box 2427 Belfair, WA 98528 360-340-8439 www.sunriseequinerescue.org

C O M M E R C E

Chamber Scholarship Breakfast 7:30 – 9:00 a.m.

North Mason High School

More than 100 guests turned out to help us celebrate Belfair’s 100th birthday, hosted by Jeff and Dena Baker of Local Wrench. Long-time resident Don Cady and Cherie Cloud, Olympia Federal Savings, cut the celebratory cake.

North Mason Community Voice Lee Swoboda, Chair P.O. Box 1056 Belfair, WA 98528 360-275-9241 www.nmcommunityvoice.org

O F

WEDNESDAY, OCTOBER 7

Farmers Insurance Reynolds Recruiting and Training Ctr. Kristen Granroth, Executive Recruiter 6704 Tacoma Mall Blvd.

Tacoma, WA 98409 253-200-1110

C H A M B E R

Candidates Forum North Mason High School Auditorium 6:00 pm.

Presented by North Mason Chamber, North Mason Community Voice and MasonWebTV.com

WELCOME NEW MEMBERS

J O U R N A L

Monthly Membership Luncheon Theler Community Center 11:30 a.m. – 1:00 p.m. www.thelercenter.org

Congratulations, Hood Canal Communications, our July Member of the Month. Team HCC did a great job designing a special phone system for the Chamber offices.

From left: Darren Eisele, Marti Depoe and John Oblizalo.

B U S I N E S S

THURSDAY, SEPTEMBER 10

P E N I N S U L A

30 NE Romance Hill Road, Belfair, WA 98528 | 360.275.4267 | northmasonchamber.com | explorehoodcanal.com

30

| September 2015

Offering a new plan for care ■ Patients at Bremerton clinic will pay a flat fee, and have better access

worth it, he said. He can spend as much time as he needs with patients, giving them the kind of care he would want to receive.

“It’s perfect,” he said, “except for no pay.”

By Tad Sooter

A NEW CLINIC

tad.sooter@kitsapsun.com 360-475-3783

Tanya Spoon had begun to feel less like a nurse and more like an assembly line worker.

Patients cycled through her Silverdale office in rapid succession.

Spoon sometimes saw 25 a day, eking out what time she could for each visit.

“It’s like a mill,” the nurse practitioner said, “like a patient mill.”

It wasn’t that patients were getting bad care, Spoon said. She just knew she could give them better care with more time. But paying the bills at a small family practice meant keeping the patient mill churning.

“I love giving good patient care,” Spoon said. “Part of my struggle with the system in place is I couldn’t give the kind of care I wanted to give.”

So about a year ago, Spoon began plotting an escape. She’ll depart Silverdale, where she worked alongside Dr. William Minteer, to open a clinic Sept. 1 in Bremerton.

For Spoon, The Manette Clinic represents both a new medical practice and a new way of practicing medicine. The clinic will operate under what’s called a direct primary care model. Patients will pay a flat monthly fee — $55 for single adults, $120 for families — to cover their primary care needs, things like routine physicals, sick visits, mental health counseling and sutures.

Their health insurance will never be billed for services at the clinic, though patients will be encouraged to carry catastrophic plans. Labs, medications and some vaccines will cost extra.

Patients will have 24/7 access to Spoon by phone and email, and when they come to clinic for appointments, their visits will last at least 20 minutes. Minteer will help at the clinic part time.

By cutting out insurance companies and dealing with patients directly, Spoon believes she can deliver more personalized care and keep her patients healthier.

“I think that kind of care is missing,” she said. “What I’m try-

MEEGAN M. REID/KITSAP SUN

Tanya Spoon stands outside The Manette Clinic, which will provide primary care under a monthly fee system.

ing to do is get that back.”

A DIRECT APPROACH Spoon is far from the only disillusioned provider turning to direct primary care as an alternative to the standard fee-forservice system.

The direct care model emerged in Seattle in the 1990s, pioneered

by Dr. Garrison Bliss. Bliss went on to found Qliance, a health clinic chain that expanded the direct care model to serve employees at major companies like Expedia.

In 2007 Washington became the first state to pass legislation defining and regulating direct patient-provider relationships.

Direct care can even be offered through the state’s health exchange, provided it’s coupled with a high deductible plan. About 30 direct care practices were operating in the state in 2014, according to an Office of the Insurance Commissioner report.

Direct practices appeal to providers like Spoon who feel the fee-for-service model, in which insurance carriers reimburse providers for individual visits and

procedures, promotes a rushed, quantity-over-quality approach to care. Dr. Jared Hendler, a primary care physician who has practiced on Bainbridge Island for 36 years, believes the fee-for-service model stifles relationships with patients and leads to more errors.

“The faster you work, the more you’re overworked, the more mistakes you make,” he said.

Hendler knows the “patient mill” feeling well. At one point his island practice served more than 3,000 patients. He’d see 40 on some days.

“I was running around like a lunatic,” Hendler recalled. “I had to find a different system. For a small office, it really was impossible to continue.”

About seven years ago Hendler switched to a direct care model, setting up a monthly membership fee based on age, and no longer billing insurance.

His patients — all of them — left.

“It was a really new concept,” Hendler said. “They couldn’t connect to it.”

Hendler now has about 100 patients, enough for his practice to break even. Like many direct

care providers in the state, he took a hit from the rollout of the Affordable Care Act, as more people became insured and others felt a squeeze from rising premium costs. Direct practices reported a 35 percent drop in patients in 2014, according to the insurance commissioner report.

Hendler hasn’t collected a paycheck since switching to a direct care model. The change still was

Key Peninsula receives grant for Healthy Community plan A grant from the Gary E. Milgard Family Foundation has given the Key Peninsula the opportunity to build a healthy community model. Key Peninsula service organizations worked for months to create the goals and strategies of the Healthy Community plan, which may inspire and benefit service organizations throughout the Kitsap Peninsula region.

The $150,000 Milgard grant will primarily fund the salary and benefits to employ a full-time community partnership director

Spoon, a Manette resident herself, believes she’s penciled out a business plan that will make her new clinic profitable.

She and Minteer saw about 4,000 patients in Silverdale. The Manette Clinic will open with about 600 patients. Spoon offered memberships to her existing patients first and plans to open admissions to the public by the end of August. The clinic had about 300 sign-ups as of last week.

With a fraction of the patients, she’ll rely on low overhead to turn a profit. Cutting out insurance companies means far less paperwork and a smaller front office staff, Spoon said.

Since patients will pay monthby-month and can drop their membership at any time, Spoon will have added incentive to keep them healthy and happy.

“Customer service has to come first,” she said. “That’s something that’s sometimes difficult from a provider standpoint.”

The Manette Clinic is positioned to grow if Spoon’s experiment proves successful. She took over an 1,800-square-foot former real estate office near the Manette Bridge, with enough space for more disillusioned docs to join her.

“I think other providers are going to want to come along and do this,” she said. for one year. The grant also will fund the costs of first-year increases in direct services.

A search will begin immediately to find a qualified director to build community leadership, develop multi-year strategies, and increase services for the three targeted priorities: health and wellness, hunger and transportation.

The Key Peninsula Community Council (KPC) was chosen to serve as the supervising entity for the Healthy Community plan.

The director job description and job strategies can be found on the KPC website: www.kpcouncil.com.

286 4th Street, Bremerton WA 98337 l 360.479.3579 l bremertonchamber.org

September 8, 7:00 - 9:00 a.m.

Kitsap Business Forum Christie Johnson The Boomerang Effect

Results NOW! Results NOW! Consul�ng Consul�ng

HyperEffects Effects Hyper WobblyHopps Hopps Wobbly Brewery Brewery

StateRepresenta� e Representa� e State JesseYoung Young Jesse

KitsapRescue Rescue Kitsap Mission Mission WilliamsonLaw Law Williamson Group,PLLC PLLC Group,

October 22 - 6:00 p.m.

2015 Chamber Gala Kitsap Conference Center, Marina Vista Room

P A R T N E R

New Chamber New Chamber Members Members

September 24 - 5:30 p.m.

Chamber After-Hours Networking Event Gold Mountain Golf Complex

C O M M E R C E

September 15 - 11:30 AM Membership Luncheon Mary Hancock Executive Director, Dispute Resolution of Kitsap County McClouds Grill House

O F

September 14 - 11:30 AM Armed Forces Festival Committee Meeting Cloverleaf Sports Bar & Grill

C H A M B E R

September 3, 11:30 a.m.

Membership and Marketing Committee Meeting Arena Sports Bar & Grille

K P B J

September Chamber Events

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THANK YOU TO OUR SPONSORS! ďż˝ S

Each Collectable Challenge coin has a picture of City Hall and the 125th Anniversary logo on one side and the Chamber logo on the other. This coin will be a great addition to any Challenge Coin collection.

S S

Peterson & Jake CPA

This year our award categories will include Professional Services, Trade Services, Retail Excellence and six other awards.

You can view all the categories and nominate a business through our website. Donâ&#x20AC;&#x2122;t have internet access? You can also submit your nominations to the Port Orchard Chamber office at 1014 Bay St #3, Port Orchard, WA 98366.

Kitsap Sun

Welcome New Members Kitsap Property Management Visonarch LLC SKHS NJROTC Clancy Donlin Blue Crea�ons Western Washington University on the Peninsulas

Harrison Medical Center / CHI Franciscan Health

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My Prin ng Services Southard, Beckham Atwater & Berry CPA, PS Barry Doll Agency/ American Family Insurance

The Ceremony will be part of a Masquerade Ball at our annual dinner. In addition to the awards we will also be honoring long time chamber members. Check out our website for more details or give us a call!

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This year the Port Orchard Chamber of Commerce will be hosting the Business Excellence Awards and Appreciation Celebration on October 24, 2015. The awards will honor local businesses that have demonstrated outstanding business practices and contributed to the well-being of the community.

C O M M E R C E

Later in the evening youâ&#x20AC;&#x2122;ll find us at Whisky Gulch Coffee Company for our Fall Mega Mixer. This event is always well attended and it features door prizes, food, live music, and lots of opportunities to network! The party gets started at 5 pm, so stop by on your way home from work. Whisky Gulch is located at 2065 Bay Street in Annapolis. We hope to see you there!

Celebrate Port Orchardâ&#x20AC;&#x2122;s 125th Anniversary with the Port Orchard Chamber of Commerce Commemorative Challenge Coin. A limited number of coins are still available.

O F

We start at our September luncheon featuring Bill Bryant, Seattle Port Commissioner and Republican Gubernatorial Candidate. This is a great opportunity to network and hear about Billâ&#x20AC;&#x2122;s plans for Washington State all while enjoying a lunch provided by Amyâ&#x20AC;&#x2122;s on the Bay. The luncheon begins at 11 am at the Port Orchard Pavilion. Registration is available through our website â&#x20AC;&#x201C; www.portorchard.com.

125th Anniversary Commemora�ve Challenge Coins

C H A M B E R

Join us on September 17th for a full day of networking in South Kitsap.

K P B J

S

34

| September 2015

Historic Silverdale farm to get new owners

same on the Petersen property.

“It fits the things our family does and has done,” Jeff said. “It fits in a multitude of different facets.”

KITSAP SUN FILE The Berrys will The Petersen Farm, the site of fall festivals like this one in 2012, has been sold to a Port Orchard family who plan to run cattle and harvest timber there. need to rebuild fences on the property before ■ introducing cattle. Jeff said it’s too early to know how many head they can keep on

By Tad Sooter ting Silverdale Way was not included in the land. tad.sooter@kitsapsun.com the sale and will be sold separately, likely The family is entering into a forest stew360-475-3783 to a developer. ardship plan with Great Peninsula ConDorothy Lind, Petersen’s niece and the servancy to guide timber harvests on the A spread of historic agricultural land representative for his estate, said she was property. The scope of the timber harvests known as Petersen Farm soon will have ecstatic to find a buyer that could purchase also have not been determined, Jeff said. new owners. the majority of the land and continue its He said the family plans to replant trees to About 155 acres of fields and woodland agricultural legacy. Petersen, who died in replace those it culls and follow “sustainalong Clear Creek, formerly owned by 2009, wrote in his will that he wished to able” forestry practices. farmer Gerald Petersen, are being sold to a see his property sold “as a whole and as The sale of Petersen Farm was opposed Port Orchard family who plan to run cattle a working farm.” About 76 percent of the by some of the people closest to it. and harvest timber there, according to an sale price will benefit charities named by Scott and Peggy Hall, of Olalla, were announcement Aug. 25 from the Petersens. Petersen. friends of Petersen and helped maintain The majority of the land — about 115 “We hit a home run,” said Lind, who lives the farm before his passing and later manacres — is covered by a conservation in British Columbia. “We found someone aged the property for the estate, while aideasement, which requires the property be who wants to buy almost all the property ing with the conservation easement effort. used for agriculture, and prevents future and wants to farm it.”

In his will, Petersen said Scott Hall could development. Great Peninsula ConserThe sale also was lauded by the Great be given special consideration on price if vancy purchased the easement last year Peninsula Conservancy. Executive direc- he wished to purchase the farm. with money from a community fundraising tor Sandra Staples-Bortner said she met Hall took issue with the way the farm campaign and grants. with the Berry family and was impressed was marketed after the easement was put DJ Cattle and Land LP, owned by the by their commitment to preserving the in place and entered a declaration in court Berry family, is buying 10 of the 11 par- character of the land. opposing the sale. The nonprofit Kitsap cels owned by the Petersen estate. A “They plan to be long-term stewards of County Agricultural Alliance entered a Kitsap Superior Court judge approved the property,” Staples-Bortner said. “They similar declaration. the sale in August over opposition understand the conservation easement, Hall said there was an understanding from the property’s longtime caretak- what the community wants them to do, when the easement was entered that the er and the Kitsap County Agricultural and we want to work closely with them.” land would be marketed at a steeply disAlliance.

Jeff Berry with DJ Cattle and Land said counted price. Instead, he said the estate The transaction was expected to close he and his father, David, have been in- marketed the land at a price much higher by the end of August. Court documents volved in breeding and raising cattle most than could be afforded by farmers interestindicate the purchase price was about $1.7 of their lives. The Berrys raise beef cattle ed in working the land, particularly when million. An additional 12-acre parcel abut- in the Port Orchard area, and plan to do the bundled with properties not covered under

Controversy surrounds deal for Petersen land

the easement. Hall added the 12-acre parcel being sold separately contains a critical portion of the farm’s water supply.

Hall said Petersen’s vision for the property wouldn’t have included timber harvests and parcels being split off.

“I don’t see how any of that adds up to Mr. Petersen’s wishes that it be maintained as a whole and working farm,” Hall said.

He said that he is in a unique position to preserve the farm’s legacy should he be allowed to buy it and that he has the backing of the farming community.

“There were a lot of people rooting for me to be here,” Hall said. “They will be very upset that it came to this conclusion.”

Lind disagreed with Hall’s assertions.

She said the property was marketed at a fraction of price it would have been without the conservation easement. Lind said she understood Hall’s frustration but felt she’d acted in the best interest of the farm and beneficiaries of the estate.

“Of course he’ll be hugely disappointed he can’t buy it,” Lind said. “But you have to balance things.”

Petersen bought the farm, which included portions of several other homesteads, in 1948. He operated a dairy there until 1970 and later raised grass-fed cattle.

After Petersen died at age 94, Lind worked with the Great Peninsula Conservancy and a number of other organizations to put the conservation easement in place. The conservancy led a campaign that raised roughly $400,000 to purchase the easement and extinguish development rights on the core of the property.

The celebration of Petersen Farm preservation and a dedication of a donor plaque will be held 9-11 a.m. Sept. 19 at the farm, 12450 Petersen Lane NW. To attend, RSVP mary@greatpeninsula.org or call 360-373-3500.

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SCORE MENTORING | KEN SETHNEY

Do you have independent contractors or employees?

N

eed help with some aspects of your small business, but aren’t ready to hire a full-time employee? Then do what your customers do when they hire you to deliver services as an independent contractor.

You will see a lot of similarities in your relationship with clients and your independent contractor’s relationship with you. They prefer to work for themselves.

They make arrangements to perform their services on their own schedules, not yours.

You are the independent contractor’s client, not their employer.

You don’t withhold taxes from their payments, or pay their Social Security or Medicare. Just like you, they have to take care of

those things on their own — and they like it that way. Don’t you?

In addition, independent contractors use their own resources to do the job, whether it’s tools, technology or people. The independent contractor is also responsible for incremental expenses required, including transportation charges, routine purchases, and time and materials above and beyond his or her estimate.

Unfortunately, the difference between an independent contractor and employee can easily be blurred to the point where he or she may reasonably be considered your employee under federal and state law. If so, that makes you an employer, responsible for those withholdings from paychecks, as well as penalties and other obligations.

So, before you decide to initiate an independent contractor relationship with anyone, make sure

you understand what it means and carefully weigh the pros and cons. If you misclassify a worker, you could be liable for back taxes, plus penalties.

These steps can help prevent an independent contractor from being misclassified as an employee: • Specify the task and contractor’s responsibilities/expectations in the contract.

• Avoid setting a pattern of daily or weekly work hours dictated by your business.

• Plan to compensate contractors on a per-job basis, not weekly or monthly.

• Do not include independent contractors under any insurance or benefits coverage you have for employees.

• Always require an invoice before making payment.

If you are still uncertain as to whether your worker is a con-

tractor or employee, IRS Form SS-8, “Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding,” can be filed with the IRS by either by you or the worker. IRS will review the facts and circumstances and determine the worker’s status.

What if you improperly classified an employee as an independent contractor? It depends.

If you had no “reasonable basis” for doing so, according to the IRS, you may be held liable for employment taxes for that worker. See Internal Revenue Code section 3509 for more information.

If you did have a “reasonable basis” for not treating a worker as an employee, you may not have to pay employment taxes for that worker. See Publication 1976, Section 530 Employment Tax Relief Requirements (PDF) for more

BUSINESS COMMENTARY | DON BRUNELL

Promoting spud consumption in China

I

n China, the government has launched an “eat more potatoes” campaign — and Washington state could benefit as a result.

China’s potato push is in part an environmental effort to provide more clean drinking water for its exploding urban population and offset its polluted water from factories and inadequate sewer treatment.

Home to more than 1.3 billion people, China has until recently enjoyed a decades-long economic boom that raised more than 600 million people out of poverty, according to World Bank statistics.

Urbanization is expected to continue at breakneck speed, adding 300 million additional people to Chinese cities in the next 15 years to create a total urban population of about 1 billion people by 2030.

But 13 percent of Chinese city dwellers have inadequate water pressure and 60 percent of

China’s 661 cities face seasonal water shortages. Contamination of drinking water from feces is a critical health problem throughout the country.

That’s where the potato comes in. Crops like rice and wheat, the Chinese staples, are far more water-intensive than the low-maintenance potato. Even though China grows a quarter of the world’s potatoes, the Chinese frown on tubers. Spuds have traditionally been viewed as a poor man’s food, something to subsist on in times of famine, fed to hogs or thrown into simple stir-fries.

The government wants to change that. Through marketing events and ad campaigns, it is promoting a new image for the lowly spud with slogans and catchy jingles like, “Potato, Potato, Potato” and “Our Potato, Little Round Potato” broadcastacrossthe country.

To combat the notion that potatoes are bland, fast food companies such as McDonalds are experimenting with a variety of

seasoned french fries.

That’s where Washington and Idaho come in. Those two states are our nation’s top potato producers, and companies such as J.R. Simplot have developed the technology to deliver high-quality frozen potatoes. Nearly two thirds of Washington’s potato crop is processed, frozen and sent to the fast-food market.

As lifestyles change and incomes rise among Chinese urbanites, so too does the demand for fast food – and part of the fastfood menu is French fries, potato wedges and crisps.

In the five years ending in 2014, the Chinese fast-food industry grew at an average rate of 12.4 percent a year. In comparison, the mature U.S. fast-food industry grew at just 2.5 percent.

While the U.S. fast-food industry is more than twice the size of the Chinese industry, urbanization and income trends promise continued growth in China for the foreseeable future.

That’s good for our state because it opens additional markets for exports. In 2014, China was far and away the largest market for Washington goods, at $20.8 billion, up 24 percent.

Trade is the lifeblood of our state. Last year, total exports from Washington state hit a record $90.6 billion, an increase largely driven by Boeing ($48 billion). The state’s non-Boeing exports, which are primarily a combination of agricultural and manufactured goods, increased by 8.9 percent to $3.8 billion.

According to a recent study

by Washington State University, the potato industry has a $4.6 billion economic impact and is

information.

If you’re not sure, talk to your SCORE mentor or an experienced business attorney.

• For help with valuing your small business, contact SCORE — Mentors to America’s Small Business. SCORE is a nonprofit organization with more than 12,000 volunteers who provide free, confidential business mentoring and training workshops to small business owners. To learn more, visit kitsapscore.org.

Ken Sethney is a volunteer business mentor and branch manager with Kitsap SCORE. He isa former ad agency creative director and marketing coach who worked with the owners of midsize companies throughout the U.S. Contact Ken via email at ken.sethney@scorevolunteer.org.

responsible for 23,500 jobs in our state. Nearly all of the potato farms throughout Washington are family businesses owned by people with deep roots in their communities.

Undoubtedly, China will beef up its food processing industry, but for now, America has a leg up.

The trump card is Washington has an abundance of clean water to grow and process potatoes and state-of-the-art wastewater treatment technology to protect streams, lakes and seashores.

That is an advantage we want to maintain.

• Don C. Brunell is a business analyst, writer and columnist. He retired as president of the Association of Washington Business, and now lives in Vancouver. He can be contacted at theBrunells@msn. com.

www.KPBJ.com

www.KPBJ.com

www.KPBJ.com

38

| September 2015

REGIONâ&#x20AC;&#x2122;S ECONOMY | JOHN POWERS

A bittersweet recipe for Kitsapâ&#x20AC;&#x2122;s technology future

A

valara recently conďŹ rmed its plans to relocate company headquarters from Bainbridge Island to Seattle â&#x20AC;&#x201D; the center of the most robust regional growth in technology in the U.S. Bottom line (and reading a bit between the lines), the company stated it had simply outgrown its foundational roots on the Island.

In announcing the news, Avalara leaders acknowledged the â&#x20AC;&#x153;bittersweetâ&#x20AC;? nature of the pending move, stating: â&#x20AC;&#x153;they had bucked the odds for a decade in building a worldclass technology business on Bainbridge.â&#x20AC;? Company leadership attributed their success to â&#x20AC;&#x153;exceptional Kitsap employees and strong community support.â&#x20AC;?

These pioneers, like so many successful entrepreneurial peers, have, indeed, bucked the odds in landing top-ďŹ&#x201A;ight tech talent; talent drawn to a unique company and community culture. Kitsap is, indeed, a special place that presents great opportunity within a healthy life/work-balanced environment.

As an economic developer, focused on the needs of private-sector business clients, I too view this transition as a â&#x20AC;&#x153;bittersweetâ&#x20AC;? development for our community. â&#x20AC;&#x153;Bitterâ&#x20AC;? in the fact that hundreds of technology jobs will be repositioned a few nautical miles from the West Sound to the East Sound (just two blocks up from the Colman Dock at Second and Spring in Seattleâ&#x20AC;&#x2122;s CBD). â&#x20AC;&#x153;Sweetâ&#x20AC;? is the fact that this development unites a rapidly growing number of Avalara employees from throughout our region (soon to approach

a thousand strong). This rapidly expanding team of tech talent is taking this decade-old, Bainbridge-born company to new heights in delivering an innovative, integrated tax accounting tool â&#x20AC;&#x201D; AvaTax (â&#x20AC;&#x153;Taking the Tax Out of Sales Taxâ&#x20AC;?) â&#x20AC;&#x201D; to a rapidly expanding e-commerce market.

WE REMAIN confident that Kitsap has a bright future and an important role to play in our regionâ&#x20AC;&#x2122;s worldrenowned technology sector.â&#x20AC;? â&#x20AC;&#x153;Sweetâ&#x20AC;? is the fact that many Avalarians will continue to live in, invest in and contribute to the social economic fabric of their respective home communities: Bainbridge, Suquamish, Poulsbo, Kingston, Silverdale, Bremerton and Port Orchard, to other communities throughout Kitsap and the West Sound. â&#x20AC;&#x153;Sweetâ&#x20AC;? is the fact that Avalaraâ&#x20AC;&#x2122;s innovative technology platform, developed right here in Kitsap, has attracted attention, and over $200 million in investment, to our regional community from around the globe. â&#x20AC;&#x153;Sweetâ&#x20AC;? is the fact that Avalaraâ&#x20AC;&#x2122;s phenomenal success is a poster child for demonstrating that our West Sound commerce and talent pool is capable of supporting the launch and development of world-class technology companies such as Avalara, Applied Technical Systems, Azima DLI, Paladin Data Systems, LumiThera, Visulant,

Taqtile, MK Hamilton, Differential Energy Global Ltd, Eagle Harbor Holdings, Kombi, Distributed Energy Management, SMB Nation, Evoke Networks, ClaroVia Technolgies, SuperCritical Technologies, and Squarerigger Software â&#x20AC;Śto name a few.

Today there are well over 60 technology companies in Kitsap County employing thousands of highly skilled technology professionals. We regret that Avalaraâ&#x20AC;&#x2122;s departure will, in the short term, thin our ranks a bit (7 percent +/-); however, we remain conďŹ dent that Kitsap has a bright future and an important role to play in our regionâ&#x20AC;&#x2122;s world-renowned technology sector.

Join me in congratulating the founders of Avalara â&#x20AC;&#x201D; Rory Rawlings, Jared Vogt and Scott McFarlane â&#x20AC;&#x201D; and the entire Avalara team for the incredible success they have achieved in building a world-class technology business in Kitsap. Their success has positioned Avalara to take center stage in the heart of our region â&#x20AC;&#x201D; a region known for its starring role on the worldâ&#x20AC;&#x2122;s technology stage.

Success begets change.

Change is disruptive. From disruption ďŹ&#x201A;ows challenge and opportunity. This change presents an opportunity for our community to double down in supporting Kitsap tech companies.

We must seize the opportunity to train, retain and attract tech talent to new opportunities on this side of the Sound; whether seeding a new company, or pursuing employment opportunities with our myriad of top-ďŹ&#x201A;ight tech companies.

Today, dozens and dozens of technology companies thrive in Kitsapâ&#x20AC;&#x2122;s uniquely competitive yet balanced life/work marketplace.

Tomorrow there will be dozens more.

Rather than lament the loss of Avalara, letâ&#x20AC;&#x2122;s wish our friends and neighbors from Avalara much continued success; and, as a com-

munity, commit to building on its local legacy for generations of Kitsap technology pioneers to come.

On Kitsap!

â&#x20AC;˘ John Powers is executive director of the Kitsap Economic Development Alliance.

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