KPBJ - September Edition by Kitsap Sun Digital

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Working well Doing the little things to encourage employee health Page 4

An edition of the Kitsap Sun

September 2016 | Vol. 29, No. 9

Tax beneďŹ t encouraging development | 15 Hiring in a tight market takes planning | 36

Kitsap Sun 545 Fifth Street Bremerton, WA 98337

Kent, WA PERMIT No. 71

PAID

Prsrt Std U.S. POSTAGE

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| September 2016 |

WELCOME | DAVID NELSON

On the Cover:

Ambition’s affect

Rice Fergus Miller employees (left to right) Elin Headrick, Ivi Gabales and Monica Blackwood with part of the weekly CSA delivery at Rice Fergus Miller in Bremerton. (MEEGAN M. REID / KITSAP SUN)

A big idea with little homes Gig Harbor’s Brett Marlo DeSantis is convinced that comfortable design can work in a very tiny space. Story, page 7.

Kitsap Peninsula

KPBJ.COM

Business Journal 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. David Nelson, Editorial Director david.nelson@kitsapsun.com Mike Stevens, Marketing Director mstevens@kitsapsun.com Jeremy Judd, Digital Director jeremy.judd@kitsapsun.com 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.

Business gets on board A Port Orchard company is using its city’s proximity to Sinclair Inlet to get people out on the water. Story, page 8.

TO SUBMIT NEWS: Tad Sooter tad.sooter@kitsapsun.com

Standard mail postage to be paid at Bremerton, WA

Are tax breaks paying off? Cities like Bremerton and Port Orchard are using incentives to push residential development, and builders say it’s working. Story, page 16.

he last week of August I interviewed Monica Blackwood at Rice Fergus Miller about the firm’s simple but innovative ways to make employees’ lives healthier, simpler and, RFM intends, happier. As she shared the ideas the company has tried I was struck. The “problem” Monica described was my own, and to a greater degree than ever right now — there’s never enoughtime duringthe hecticwork periods to take care of what needs to be done personally. That applies to leisure, particularly when I have to see everyone’s social media posts that depict how summer “should” be spent, but also to the little things. When do I get the cat to the vet when we’ve got deadlines? How do I wait two hours for the cable guy with three phone conference calls on today’s agenda? The pressure is raised in my own career this season due to a significant time of change for us. First, if you read former managing editor Tim Kelly’s column last month, you know this month means turnover for this publication. Second, our newsroom is deep into a migration to the USA TODAY Network, an ambitious plan to unite journalists in more than 100 markets across America through our property’s new ownership. The grand idea is that we’ll be the largest network of journalists ever created outside The Associated Press, with a newfound strength and stability that will drive journalism that makes an impact and buffers the financial pressure we’re under as the media landscape evolves. A recognizable national brand will build a new reputation on the reporting done in cities and towns like ours, and unite advertisers with customers they may have never reached. That’s easier said than done, of course, and the plans in Bremerton are still evolving. But business journalism is a key part of that strategy, so I’m writing as an assurance that our focus will remain on covering these topics for the Kitsap Peninsula and eventually using what the net network can offer in terms of content or tools. I may miss the cable guy’s visit and feel the stress of preparing another spreadsheet — but right now I’m buoyed by that ambition for our company, which I’d guess is a similar passion that drives many of you in your industry or the business you own. Nonetheless, I’m looking to learn a few tips from the story that begins on the next page. I need to make sure wellness can survive as well. I hope you do the same. • David Nelson is the editorial director of the Kitsap Peninsula Business Journal. Contact him at david.nelson@kitsapsun.com.

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| September 2016 |

RFM is looking to hire, said Blackwell. â&#x20AC;&#x153;People get really excited when they hear you have a CSA in the office.â&#x20AC;?

STAFF COMES FIRST

Melissa Dylan has worked enough jobs (37

by her count) to know how well, and how poorly, employees can be treated. When she opened a fabric store in downtown Bremerton last month she decided concentrate on keeping her staff happy and energized, ďŹ gur-

ing engaged employees would provide the best customer service. â&#x20AC;&#x153;My number one priority is how we treat ourselves and our employees and ourselves,â&#x20AC;? Dylan said. Dylan Fabric employees are allowed to bring

their children to the shop (the storeâ&#x20AC;&#x2122;s ďŹ rst worker regularly brings three). Breast feeding is encouraged. Wages start at $15 an hour and Dylan is hoping to offer some level of beneďŹ ts even to part-time workers. See WELLNESS, 6

Dylan Fabrics owners Paul and Melissa Dylan their kids Ruby, 9, and Eva, 7, outside their fabric store on PaciďŹ c Avenue. Dylan Fabrics is opening with a business strategy that focuses on family life of its employees, including an offer for workers to bring children to the shop.

its 46 employees, but a few unique perks help the architecture ďŹ rmâ&#x20AC;&#x2122;s leadership attend to individual health of those workers as well. Every Thursday afternoon a delivery arrives at RFMâ&#x20AC;&#x2122;s front door from Abundantly Green farm in Poulsbo. The brown paper bags contain eight shares of a Community Supported Agriculture program, or CSA, that employees can opt in to for their family or to share among one another. Itâ&#x20AC;&#x2122;s not a perk the company pays for, but itâ&#x20AC;&#x2122;s a draw for workers looking to eat right, support local farms and, perhaps most importantly, save time on errands. â&#x20AC;&#x153;Some of our beneďŹ ts are more about making something available to makes life easier for our employees,â&#x20AC;? Monica Blackwood, director of administration, said. â&#x20AC;&#x153;It saves time that they can be spending with their family or doing other

things.â&#x20AC;? That has meant the weekly delivery of fresh produce through the summer and fall, an agreement with a bakery that brought in fresh loaves for sale once a week, a pick-up and delivery service for dry cleaning and a masseuse that schedules on-site appointments. â&#x20AC;&#x153; We â&#x20AC;&#x2122;r e s i m pl i f ying life,â&#x20AC;? Blackwood, a mother to two busy children herself, said. â&#x20AC;&#x153;I can have this done while Iâ&#x20AC;&#x2122;m at work, and not worry about it.â&#x20AC;? An August delivery from Abundant Farms contained Sweet100 tomatoes, Gala apples, brussels sprouts, cucumbers and pluots, which were quickly split between members of the marketing department. Itâ&#x20AC;&#x2122;s a beneďŹ t that may not be as signiďŹ cant as health insurance, dental or retirement plans, but it is one that catches the attention of recruits when

Not All HSAs Are the Same

Health Savings Accounts (HSAs) are a tax-smart way for you to provide your employees with options. Discover the beneďŹ ts of an HSA account with Kitsap Bank!

Serving you through over 20 locations in six Western Washington counties. www

| September 2016 |

Health center picks up added federal funding PENINSULA COMMUNITY HEALTH SERVICES ADDS $138,000 FOR BENCHMARKS IN QUALITY CARE By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

MEEGAN M. REID / KITSAP SUN

The CSA delivery to Rice Fergus Miller employees from Abundantly Green changes with the harvest. An August delivery contained tomatoes, pluots, brussels sprouts and apples.

Wellness from 5

Dylan said it was tempting to phase these perks in over time — launching a new business, after all, is tough under any circumstances. But she was determined to offer a good employee experience from the start. “It’s going to succeed of fail based on the people involved here,” she said. “If I fail, I’d rather fail treating people well.”

STRESS RELIEF WITH A LAUGH For each of the six years Deborah Howard has managed the City of Port Orchard’s human resources department, her office has helped bring home the “WellCity Award” from the Association of Washington Cities. Though the honor is earned by focusing on best practices for em-

ployee health and helps reduce the cost of medical benefits, Howard’s quick to point out that Port Orchard works creatively to ensure “health” is more than just encouraging exercise. “With wellness, it’s not just about physical activity and eating right, it’s also stress relief,” she said. That came into stark terms for Howard during the Great Recession, when morale was suffering due to uncertainty in the economy and city jobs that always seemed to absorb more duties. She said an annual survey of employee satisfaction always has one common denominator mentioned — stress. “That’s why these crazy things are a release; people look forward to it,” she said. “Crazy” is Howard’s description of the annual “office Olympics” held at a Public Works building, when creativity takes over. A “toss the boss” competition

with an inflatable office worker, races in desk chairs or walking an obstacle course while pushing a lawn mower are dreamed up by her wellness committee and done to build camaraderie. Other ideas from the employee committee have included a “poker walk” among Bay Street business, when city workers used their lunch break to take walks to merchants and pick up a card, a “show me the funny” day when employees each brought in a photo from their awkward years, and an upcoming volunteer project to donate blankets for veterans at Retsil. Howard said Port Orchard is trying to include mental health in its creative approach even though most programs that are reﬂected in insurance rates — like WellCity — focus on the physical. “This stuff just makes everybody feel engaged, and basically just gets people together.”

BREMERTON — Peninsula Community Health Services will receive an injection of federal money after surpassing a number of benchmarks for quality care. The Bremerton-based health center is one of 25 in Washington receiving a share of $2.8 million from the Affordable Care Act’s Community Health Center Fund to invest in services and infrastructure. Peninsula Community Health will get about $138,000. “These quality improvement awards will support health centers to continue to deliver superior health care that engages patients, improves care coordination and bridges overall access to care,” Health and Human Services Deputy Secretary Mary Wakeﬁeld said in a news release. Health centers were evaluated on performance measures that emphasized positive outcomes and efficient care delivery. Peninsula Community

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Health was recognized for improving the quality of its clinical services, surpassing many state and national quality of care standards and being recognized as a primary care medical home, meaning the center coordinates all aspects of care for its patients, including management of chronic diseases. Peninsula Community Health was one of three centers in the state rewarded for exceeding national quality benchmarks. “We provide great care to everyone who walks through our doors, and this shows it,” CEO Jennifer Kreidler-Moss said. According to a breakdown provided by Peninsula Community Health,

the center exceeded national and state standards in a number of categories, including screening or management of conditions such as colon cancer, tobacco use, depression, asthma, high blood pressure and coronary disease. Kreidler-Moss said the center is working to improve care in several areas. It’s focusing attention on cervical cancer screenings and prevention, and on helping patients with diabetes stay in control of their disease, to avoid damaging complications like blindness and kidney failure, she said. Kreidler-Moss said the center has not yet determined how it will invest money from the federal award.

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| September 2016 |

MEEGAN M. REID / KITSAP SUN Port of Bremerton’s Steve Sparks, director of facilities and planning, talks about the cleanup being done after a chrome plating business departed a Port of Bremerton industrial building last November, leaving traces of lead, arsenic, cadmium and other toxins behind.

Cleanup contract OK’d for port site METAL-PLATING BUSINESS LEFT CHEMICALS IN SOIL By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

BREMERTON — Port of Bremerton commissioners awarded a contract Aug. 23 to continue cleanup of an industrial building contaminated by metal-plating businesses. Rivers Edge Environmental Services Inc. entered the lowest of three bids for the project at $74,460 (the port will pay about $81,000 after taxes). The work will take a month. Port Facilities and Planning Director Steven Sparks said there were few ﬁrms qualiﬁed to handle the complex re-

moval of trace chemicals. “It’s a very specialized industry,” he said. The port already spent about $35,000 for testing and cleanup at the Olympic View Industrial Park building, which had housed metal-plating businesses for nearly 20 years. Chemicals used in the plating process had soaked into the concrete f loor, the soil underneath the structure and drywall. Additional tests found trace chemicals coating horizontal surfaces in the upper reaches of the shop. Toxins identiﬁed in the building included arsenic, cadmi-

um, cyanide and lead. Sparks said the port will have to pay more money to have contaminated material removed. The port plans to contact insurance companies for the previous tenants to seek compensation. The most recent tenant was Art’s Custom Chrome, which moved out in November. Reached for comment Friday, owner Art Bottger said he spent $30,000 clearing out the shop, scrubbing ﬂoors and disposing of leftover chemicals before vacating. He noted his business occupied the building for three years, after taking

over the lease from Electro Forming Systems, which had been there since 1998. Bottger said he hadn’t heard from the port in months and was surprised to learn of the extensive cleanup project underway. “We left absolutely nothing but the concrete,” Bottger said. “Here I thought I’d done a good job, but now it sounds like not so much.” Neighboring tenant Stripe Rite, which shares a wall with the former metal-plating shop, was equally surprised to ﬁnd out about the cleanup. Stripe Rite branch manager Eben Erickson told the port commission Tuesday that he didn’t know about the contamination until reading about it in the Kitsap Sun. “As a tenant, wouldn’t you expect a landlord would make you aware that there’s a toxic cleanup underway next door, when you’re sharing the building?” Erickson said. “I think it’s inexcusable that the port has known about this for an extended amount of time and allowed me and my employees to occupy the building.” Port CEO Jim Rothlin declined to comment on why Stripe Rite wasn’t notiﬁed, following advice from attorney Gordon Walgren.

Mason commuters may get options FOUR SITES UP FOR PARK-AND-RIDE By Arla Shephard Bull For KPBJ

BELFAIR — Mason Transit Authority is considering four locations for a future park-and-ride in Belfair, including the temporary parking lot the agency unveiled this summer on Roy Boad Road. Developing a new parkand-ride in Belfair is part of the agency’s plan to improve all of its park-andrides, including sites at Highway 3 and Pickering Road, Highway 3 entering Shelton, Shelton-Matlock Road at Highway 101 and Southeast Craig and Cole Roads in Shelton.

The agency has been working since 2014 to secure funding for the $10 million countywide project. More than 90 percent of the funding will come from the state’s Regional Mobility Grant program. In May, Mason Transit contracted with the engineering ﬁrm SCJ Alliance to see the entire project through, with the priority being the development of a park-and-ride in Belfair. With input from a group of stakeholders, SCJ Alliance narrowed a list of about 15 potential See TRANSIT, 31

FOR LEASE IN SILVERDALE 11871 Silverdale Way - 2,318 SF - $14.00 NNN 11875 Silverdale Way - 2,020 SF – $11.50 NNN 2041 NW Myhre Rd - 4,500 SF - $16.00 NNN 3594 Byron St. - 800 SF - $12.00 Tenant pays Electric 9657 Levin Rd - 2,405 SF - $26.00 Full Service 1,274 SF - $26.00 Full Service 480 SF - $26.00 Full Service Bradley Scott Commercial Real Estate (360) 479-6900 (800) 479-6903 www.bradleyscottinc.com

| September 2016 |

Announcements and openings Kitsap Bank reports record earnings in period Kitsap Bank in August reported its strongest January-June period in the bankâ&#x20AC;&#x2122;s 108-year-old history, with the second quarter topping the record-setting ďŹ rst quarter for earnings. Olympic Bancorp, the holding company for Kitsap Bank, reported that earnings rose 46 percent for the period ending June 30. The bank achieved double-digit growth in a number of key areas, according to a news release. Net income totaled $5.6 million for the ďŹ rst half, compared to $3.8 million last year. Total loans grew $109.5 million from $488.1 million a year ago, to $598 million. And deposits totaled $982.9 million at the

end of the second quarter, compared to $886.6 million. â&#x20AC;&#x153;Our performance remains strong, as we continue to execute our growth strategy for Kitsap Bank,â&#x20AC;? Steve Politakis, president and chief executive officer said in a statement. â&#x20AC;&#x153;Our core deposit base and experienced team of bankers, as well as our increased presence in King and Pierce Counties, have all contributed to these results.â&#x20AC;?

County names new community development chief Louisa Garbo, a former planning director in Manitoba, Canada, took over as director of the Kitsap County Department of

Community Development in August after an eightmonth wait to replace Larry Keaton. Garbo will oversee the departmentâ&#x20AC;&#x2122;s 70 employees and a budget of $8.8 million for a salary of $119,000. She was selected by the board after a yearlong, nationwide search. A director of planning and building safety for Brandon, Manitoba, Garbo oversaw development activities, building inspections, heritage preservation and implementation of long-range plans and policies. She has strong budgeting skills, Wolfe said. Garbo is a certiďŹ ed planner in both America and Canada and an accredited Leadership in Energy and Environmental Design Green associate, certiďŹ ed

Thank You!

in familiarity with resource efficient, environmentally friendly construction. She has a masterâ&#x20AC;&#x2122;s degree in planning, a law degree and another masterâ&#x20AC;&#x2122;s in conďŹ&#x201A;ict resolution. Garbo began her planning career in Arizona, working for the cities of Scottsdale and Peoria, and for Cochise County.

Liberty Bay adds new banker Alexis Freeto of Silverdale has joined Liberty Bay Bank in Poulsbo as a professional banker, focused on commercial services. Freeton is a PaciďŹ c Northwest native from Olympia, now completing an associates in business degree at

Olympic College. She and her husband Josh enjoy volunteer coaching for the Silverdale Pee Wees Little League, as well as golf and a range of outdoor activities that includes hiking with their two dogs. Contact Liberty Bay Bank at www.libertybaybank.com or 360-779-4567.

FOR SALE INDUSTRIAL/VACANT LAND $530,000 Copy: 19.34 ac zoned (IND) industrial property within the Silverdale UGA. Easy access to State Hwy 3 off of Newberry Hill Road. MLS# 647702 Marcus Hoffman 360-271-0023 COMMERCIAL INDUSTRIAL $155,000 Copy: Great location would be a great place for another church or non-profit community group. Land is zoned UL, maybe able to be rezoned for more uses. MLS# 795626 Dennis Balduf 360-649-5053

COMMERCIAL $399,000 Copy: Medical office built in 1994 w/4608 sq ft on one level. Conveniently located within a block of Harrison Hospital & rest of the Medical District in East Bremerton. MLS# 283763 Merv Killoran 360-308-2255 INDUSTIRAL/VACANT LAND $125,000 Copy: 3 tax lots totaling 1.68ac, zoned industrial. County location. Water, sewer, power in street. Access via S Oyster Bay and Bremerton Blvd. Variety of potential uses, buyer to verify. MLS# 902743 Brian or Sharna McArdle 360-710-1444

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| September 2016 |

PHOTO BY MEEGAN M. REID/KITSAP SUN

Quinoa salad (above) and ﬁsh sliders (top right) are on the revamped menu items at the Kingston Ale House.

New owners revamp Kingston Ale House

20% INSULATION BONUS TO HELP YOU SAVE MORE

FORMER PATRONS UPDATE MENU AND RENOVATE BUILDING By Terri Gleich Special to KPBJ

When Tony Clark and Kim Francisco began visiting Kingston by boat seven years ago, they found friends and a sense of community at the Main Street Ale House. Now, three years after moving to Kingston from Mill Creek, the couple own the restaurant and longtime patrons say they have breathed new life into a community hub. The pair bought the place in December and reopened it as the Kingston Ale House KINGSTON —

in May after a menu overhaul and interior makeover. “It’s cleaner than it’s ever been and there’s a better feel,” said John Lyon-Smith, an Englishman who’s been a regular patron for six years. “The food’s better than it’s ever been. It’s more gourmet food.” He likens the restaurant’s friendly atmosphere to that of a traditional English pub. Diana Kingsley, who’s been going to the restaurant for more than a decade, has seen ups and downs under three owners. “This is deﬁnitely an up,” she said. “It’s innovative. There’s good

food, good service, a good price range and a nice wine selection.” Francisco worked in a series of restaurant jobs as a young woman before a career in telecommunications and ﬁnance. Clark, her husband of 27 years, works for Hewlett-Packard in data storage. Since taking over the ale house, the couple have brightened the interior with light gray walls and white trim, giving it a more modern feel. They replaced booths in the backroom with tables See KINGSTON, 32

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| September 2016 |

Their achievements are impressive

Bremerton marina nearing capacity SUMMER’S PEAK MOORAGE AT 85 PERCENT By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

Boats ﬁlled 187 of 221 permanent moorage slips in the downtown marina in July, up from 164 in July of 2015, and 88 back in 2012. July and August are peak months for the facility. Ma rina ma rketing consultant Bob Wise told Port of Bremerton commissioners Aug. 23 that the port’s “two-for-one” moorage discount continues to reel in boaters. The deal allows tenants

TOGETHER,

They represent our area’s promising future.

NOW ACCEPTING NOMINATIONS FOR THE CLASS OF 2016

Nominate an emerging leader today! The Kitsap Peninsula is home to promising individuals whose records of achievement in the workplace and community make them our emerging leaders of tomorrow. The most accomplished of those will be honored at a special event in November. It starts with a nomination, and if you know someone under 40* whose professional and personal excellence stand out, nominate that person today. To be nominated is meaningful and rewarding. From among all nominations received by September 22, an independent judges panel will determine the twenty to be named in November as our area’s Class of 2016 20 Under 40 Honorees.

to pay moorage every other month, if they agree to a two-year contract. The port rolled out the discount in 2013, and offered it again at the Seattle Boat Show in January. That resulted in 31 new leases, Wise said. Most tenants are sticking around to sign fullrate contracts after their two-year discounts expire. The retainment rate for boaters attracted by the two-for-one deal is about 70 percent, Wise said. The discount “gives us an opportunity to show-

case what we have to offer,” he said. More downtown activity is also helping draw attention to the marina. A revamped Rock the Dock concert series drew large crowds this summer (the last concert of the season is Saturday). Brewfest and the Harbor Festival are popular with boaters. The port continues to aggressively plug the marina on social media, in magazine ads, and at boat shows. Revenue has increased as slips ﬁlled up, but the facility is still far from breaking even.

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Nominate that accomplished, emerging leader today. *For further criteria, information and to nominate someone, please visit KitsapSun.com/20under40.

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| September 2016 |

Builders responding to tax incentive program MAYORS SAY CITY BENEFITS OUTWEIGH LOSS OF REVENUE By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

BREMERTON — Four

apartment projects recently approved in Bremerton all received the same welcoming present: A healthy break in property taxes. The 606 Apartments, completed last year; Spyglass Hill, now under construction; and the planned Inhabit Burwell and Evergreen Pointe projects all qualiﬁed for a multifamily tax exemption offered by the city. The exemption is authorized by state law to encourage construction of apartments to house the growing population, and incentivize affordable rents at a time of steep cost

increases. Under the program, the value of newly constructed or rehabilitated apartment units is exempted from property taxes for eight or 12 years. Bremerton enacted its exemption program in 2007, but 606 Apartments was the ﬁrst project to take advantage of the incentive. Port Orchard approved a multifamily tax exemption in July. Cities like Seattle and Tacoma also offer the exemption. As the housing market heats up in Kitsap, and more developers see opportunity in the county, the tax exemption programs merit deeper examination. And with one project that qualiﬁed for the program already completed in Bremerton, some

hard numbers are available to study. The mayors of Bremerton and Port Orchard are among those who already believe the beneﬁts of the tax exemptions far outweigh any unrealized tax revenue. “When you’re trying to grow your city, you’re going to pull out all the stops as far as incentives,” Bremerton Mayor Patty Lent said. In Port Orchard, Mayor Rob Putaansuu views the tax exemption as a tool to stoke housing construction in areas of the city where development has stagnated. “We have a housing crisis out here,” Putaansuu said. “We have a need to create activity, and some

redevelopment.”

HOW THE EXEMPTION WORKS

The multifamily tax exemption comes in two ﬂavors. Developers can qualify for an eight-year property tax exemption by constructing or rehabilitating a building with more than 10 units. Or they can earn a 12-year exemption by committing to rent or sell at least 20 percent of the units to low- or moderate-income households (more on what that means later). The exemption is only available in certain areas of the cities. Planners in Bremerton and Port Orchard designated neighborhoods where the city’s comprehensive plans encourage density,

and where development is more challenging or costly. (In downtown Bremerton, for example, apartment developers are demolishing existing structures, or building on top of them.) Bremerton’s exemption program covers downtown, Bay Vista, Charleston, Manette and portions of the Wheaton Way corridor. Port Orchard offers the exemption on Bay Street, south along a stretch of Bethel Avenue, and on portions of Mile Hill Drive. Port Orchard Planning Developer Nick Bond said those areas are ripe for redevelopment, but land there isn’t as attractive to developers as vacant tracts on the outskirts of town.

“There’s a desire to see improvements in some older, more established areas of the city that are maybe a little tired,” Bond said. “And we’re not seeing the interest in developing those areas.” For projects that qualify, the exemption applies only to the value of the housing units that are constructed or rehabilitated. Owners still pay tax on the land beneath the buildings and any nonresidential improvements. Cities can revoke the exemption, and the county can retroactively collect taxes, if a property owner doesn’t follow the rules. Once the exemption expires, the buildings are valued

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| September 2016 |

a low-income tenant, and $1,502 or less for a moderate-income tenant. Affordable rent standards set by the program are roughly in line with average rents in Bremerton, though newly constructed apartments typically command higher prices. Average rent-per-unit at large apartment buildings hovered just below $1,000 at the end of 2015 and climbed to $1,023 by the second quarter of 2016, according to Tom Cain of Apartment Insights Washington. Williams said she applied for the 12-year tax exemption after realizing she wouldn’t have to lower her projected rents to qualify. “As we were doing our rent comparables we realized a good portion of our smaller units were considered affordable,” she said. The exemption programs don’t require rents that would accommodate very low-income families. Mayor Lent said it is still important to encourage rents aimed at low- to moderate-income families. “You need all different rates of affordability,” she said.

MYRIAD BENEFITS Affordable units aren’t the only beneﬁt of apart-

ment projects aided by tax incentives. Bremerton Housing Authority Executive Director Kurt Wiest said any new units will ease the county’s housing market, which is strained by low vacancy rates and steadily rising rents. “Anything we can do that might bring some relief is helpful,” Wiest said. And city officials were quick to point out that construction generates permitting activity and revenue from sales and utility taxes, and impact fees, all while creating jobs. Once built, apartments will attract new households to the core of the cities, generating more sales for businesses and breathing new life into neighborhoods. The multifamily tax exemption programs don’t have to be permanent. Cities could choose to no longer offer the exemptions if the market becomes strong enough to spur growth in underdeveloped areas. For now, Putaansuu believes the tax exemption could play a critical role in delivering much-needed homes to the heart of his city. “It isn’t a silver bullet that’s going to solve all of our problems,” he said. “But it could create a project or two.”

Tax credit bites school funding OFFICIALS STILL FAVOR THE CITY INCENTIVE TO SPUR BUILDING By Chris Henry chenry@kitsapsun.com 360-792-9219

PORT

ORCHARD

—

School and ﬁre officials in South Kitsap generally approve a tax incentive to developers recently passed by the Port Orchard City Council, but they would have liked to be part of the conversation when it was proposed, given the provision could hit their bottom line. Port Orchard in July adopted a multifamily housing tax credit that gives developers a temporary delay in value-based property tax increases for new, renovated or converted housing projects of at least 10 units within certain areas of the city. The exemption applies only to improvements and does not affect impact fees paid to schools and local governments. The purpose is to spur development, to add badly needed housing units, including affordable housing, and to revitalize blighted areas of the city. Not clear to city of-

Supply of homes up this summer PENDING SALES, PRICES ALSO UP FROM A YEAR AGO A wave of new listings hit Kitsap’s real estate market in July, helping to replenish — if only slightly — the county’s scant supply of homes for sale. Other Western Washington markets enjoyed a similar inﬂux of listings, Northwest Multiple Listing Service reported. “We might actually be starting to move very slowly back toward a more bal-

anced market,” OB Jacobi, president of Windermere Real Estate, said in a news release. In Kitsap, 654 homes came on the market in Kitsap in July, raising the total number of available listings to 944. Inventory was still down 10 percent from July 2015, but that marked a major improvement from January, when there were 30 percent

fewer homes on the market compared with the previous year. Pending sales remained strong in July, up 7 percent from 2015, while closed sales dipped. The county’s median home price was $290,000, up about 5 percent. The number of closed sales dipped slightly yearover-year, with 439 in 2016 compared to last July’s 467. —Tad Sooter

ficials, at least initially, was the fact the exemption applies not only to city taxes but to all taxing districts, including schools, the county and fire districts. At least two council members raised questions at a July 12 public hearing about how the tax exemption worked. City staff were not immediately able to provide the correct information. After some research and more discussion, the city council passed the tax incentive on July 26, without holding another hearing. In hindsight, the city should have contacted South Kitsap School District and South Kitsap Fire & Rescue, Mayor Rob Putaansuu said. Those two taxing districts (along with state schools) would take the greatest revenue hit should a project that qualiﬁes for the tax exemption reach completion. “I should have been out in front of that,” Putaansuu said. “It’s my eagerness to get things done and to be proactive and move development along in our community. That’s where the fault is. ... I absolutely should have reached out beforehand and talked to those folks.” Former South Kitsap School District superintendent Michelle Reid and South Kitsap Fire & Rescue Chief Steve Wright said they have spoken to Putaansuu since the vote. Neither

believes the slight was intentional. “We have a great relationship with the city of Port Orchard. I don’t think there was any intention to leave us out,” said Reid, who was in transition to become superintendent of Northshore School District when the city adopted the tax exemption. “I would say he’s been upright and honest telling us what he knows now,” Wright said. “It certainly spurred a conversation.” Wright said the tax exemption not only might impact revenue, but growth could put pressure on the fire district and schools to provide increased services. On the flip side, Reid said the availability of more housing — especially affordable housing that comes with the incentive of a longer exemption — would be a boon to some teachers and families. And increased enrollment means a larger allocation of state funding. Both public officials recognize the value of revitalizing South Kitsap and, in the long run, adding to its tax base, when the exemptions expire. “This is one where it’s an investment in our community and our future,” Reid said. South Kitsap’s interim Superintendent Karst Brandsma said he’d need a better financial analysis to weigh in on the tax implications, but he sup-

ports revitalization, even if it means pressure on the district. “We want healthy communities that are safe and the kids thrive,” he said. “Our role is to educate the kids that are sent to us.” Putaansuu defended the tax exemption, saying Port Orchard’s stagnant development needs a jump-start. “If we’re creating activity and raise the tide everywhere in our community, everyone benefits,” Putaansuu said. That said, the city will be more mindful of unintended consequences to other taxing districts as a result of this episode, he said. That suits Wright and Reid. “What I’d say in the future is, we’d want to be collaborative on those kinds of decisions,” Reid said. In Bremerton, where that city’s first project to qualify for the tax exemption was completed last year, school officials responded to the 12-year suspension of revenue they otherwise would have seen from the project — $14,500 in 2016. The district’s total budget this year is about $67 million. “We are always concerned about tax exemptions that redirect money away from capital projects or district operations,” Bremerton School District spokeswoman Patty Glaser said. “This in turn requires the district to pursue other financing options.”

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| September 2016 |

Kitsap Building Association • www.kitsapbuilds.com

VISIT the HBA Website! www.kitsapbuilds.com

NOW TAKING RESERVATIONS FOR THE

NEW

PENINSULA HOME & RECREATION EXPO Sign up today to reserve a booth Visit www.KitsapBuilds.com or call The KBA today! THURSDAY, SEPTEMBER 1 Developers Council Mtg., 7:30am MONDAY, SEPTEMBER 5 KBA OFFICE CLOSED ENJOY LABOR DAY WEDNESDAY, SEPTEMBER 14 End of Summer BBQ Sponsored by JCM Property Management RSVP to KBA www.kitsapbuilds.com Event at JCM Property Management 4:00 – 6:00pm Food, Music, Beverages

Have you heard the BUZZ? Attend the NEW Peninsula Home & Recreation Expo! Friday, September 30 Saturday, October 1 Sunday, October 2

2016 Ofﬁcers President................................... Kevin Ryan 1st Vice President............... Miriam Villiard 2nd Vice President ...........Berni Kenworthy Treasurer ............................. Leslie Peterson Secretary ..............................Brent Marmon Immediate Past President..... Judy Mentor Eagleson

2016 Builders & Assoc. Directors

Kitsap County is the place we live and play. Surrounded by exceptional beauty and healthy communities you can ﬁnd all your lifestyle services at this NEW, annual Expo. The Peninsula Home & Recreation Expo is the only recreation focused expo on the greater peninsula. This new event is sponsored by the following important, local, businesses:

Bill Broughton, Ellen Ross-Cardoso, Walter Galitzki, Stuart Hager, Jim Heins, Joe Hurtt, Chad Lyons, Brendan McGeer, Jo Pederson, Shad Smallwood

2016 State Directors Robert Baglio, Lary Coppola, Judy Mentor Eagleson, Wayne Keffer, Berni Kenworthy, Ron Perkerewicz, Kevin Ryan, Miriam Villiard

2016 Alternate State Directors Rick Cadwell, Kevin Hancock, Byron Harris, Justin Ingalls

Life State Directors Bill Parnell

2016 National Directors Berni Kenworthy, Shawnee Spencer, Kevin Ryan

2016 Alternate Natnl. Directors

THURSDAY, SEPTEMBER 15 1st Aid/CPR Class Open to Members and the Public Register with KBA www.kitsapbuilds.com 1:30pm – 5:00pm WEDNESDAY, SEPTEMBER 21 REX AWARDS & COCKTAIL RECEPTION KGCC, 5:00pm – 7:00pm RSVP to the KBA www.kitsapbuilds.com THURSDAY, SEPTEMBER 22 Special DATE! Executive Committee • 2:00pm Government Affairs Cmt. • 2:30pm* Board of Directors • 3:30pm * Note: During election season, this time may shift. Please check with the KBA for start time.

Mike Brown, Jeff Coombe

Check out the details at www.kitsaphbahomeshow.com. Watch the Kitsap Sun on Tuesday, September 27 for the Ofﬁcial Expo Guide! Jon us on September 30, October 1 and October 2 for this exciting new event! Buy an “All Access Pass” on Friday and attend the Expo each day at no additional cost. Daily admission is affordable and children 12 and under are always FREE! Meet local businesses offering you all the best ways to enjoy the great Kitsap Peninsula as well as area contractors to help you with a new home or a remodel project. Maybe you will decide to buy a hot tub and need it wired and a pad poured. Maybe you will decide you must have a garage built for your new side-by-side or RV. The new combination of Home and Recreation is a perfect ﬁt for the beautiful lifestyle we all enjoy in Kitsap County.

SEPT. 30 – OCT. 2 Peninsula Home & Recreation Expo Kitsap Sun Pavilion at the Kitsap County Fairgrounds

Business owners, DON’T MISS OUT If you’re a company in Kitsap that would like to meet several thousand Kitsap area residents during one weekend, this is the event for you!

THURSDAY, OCTOBER 6 General Membership Luncheon 11:15 am check in – 11:45 lunch Kitsap Golf & Country Club Pre-register with the KBA or on our website at www.kitsapbulds.com

Don’t let the citizens of Kitsap County ﬁnd their next recreation service by traveling to Tacoma or Puyallup, let them know you’re here and you want them to do business with you! Sign up for an affordable booth today.

Life Directors John Armstrong; Randy Biegewald, CPA; Dee Coppola, CGA, Rick Courson, Bob Helm, Bill Parnell, John Schufreider, Dori Shobert, Jim Smalley, Larry Ward

2016 Council & Committee Chairs Build A Better Christmas ..... Randy Biegewald Built Green.............................Walter Galitzki By Laws & Nominations ........Judy Eagleson Developers Council..................... Mike Wnek Golf Classic........................Shawnee Spencer Govt. Affairs Cmt..................Miriam Villiard Remodelers Council Chair.....Molly McCabe Membership ....................... Berni Kenworthy Parade of Homes .................................... TBD Peninsula H&G Expo....................Lena Price Peninsula H&R Expo Leslie Peterson & Judy Eagleson

KBA Staff Exec. Vice President .....Teresa Osinski, CGP tosinski@kitsaphba.com Events & Admin. Assistant .......Katie Revis hbaevents@kitsaphba.com

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

www.kitsapbuilds.com

KBA NEWSLETTER KBA NEWSL

EWSLETTER KBA NEWSLETTER

Events And Activities September 2016

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| September 2016 |

Government Affairs Committee Miriam Villiard, Heritage Builders NW LLC In July, the Government Affairs Committee met with David Lynam, Fire Marshall Kitsap County, and Brad Wiggins, Deputy Fire Marshall, South Kitsap Fire & Rescue to get a general update. David Lynam largely reported on items pertaining to the Department of Community Development and building permits. As a result of the 2015 Energy Code going into effect July 1, 2016 and an overall increase in residential construction, a record number of residential plans were submitted at the end of June. Residential plan review is taking 48-55 days, up from the 21-day goal set by the department. At the end of July, the department was processing 176 permits. Commercial permits are winding down. It’s expected that it will take a couple months for the Department to get through the backlog of residential permits. To aid in the processing time, at permit submittal, the permit technicians go through a checklist of permit requirements to make sure that these items are met. Submitting the form without doing the homework may get you through the permit submittal, but will result in a deﬁciency, which requires a resubmittal and more processing time. The most common errors in building permit submittals typically involve meeting the Energy Code requirements, Stormwater requirements and/or Design requirements. For the Energy Code requirements, it’s ﬁguring out accurately how many credits are required for the project, based on the square footage, and selecting the appropriate options to equal the credits needed. For the Stormwater requirements, typically, if you’re not in an environmentally sensitive area and you will have over 2,000 sf of impervious area, you will fall under the low-impact development prescriptive code which allows for the use

MEMBER ADVANTAGE: As a KBA member you are also a member of the National Association of Home Builders. In addition to advocating for the industry with our nation’s congress members, in the courts, and among regulatory agencies, NAHB has pulled together incredible buying power deals for our members! As you make plans to travel this fall or for the upcoming holidays don’t forget to take your discount at Hertz, Budget and Avis! For all the details go to nahb.org/ma!

of infiltration pits, rain gardens or dispersion trenches. An often overlooked piece of information needed for this permit is soil sample results. These results are obtained by digging a soil sample, approximately 3’ deep in the area that is best suited for the selected stormwater mitigation system, and having the soils tested. The test results are submitted with the permit, and the County uses the results to determine the size of the stormwater mitigation system. Working with a professional who submits permits on a regular basis and is familiar with these requirements will aid in a more efficient processing of your permit. The County has elected to delay the adoption of the 2015 Energy Code to January 1, 2017. For those who are submitting a residential permit before then, you can choose whether to meet the criteria of the 2012 Energy Code or the 2015 Energy Code. In the 2012 Energy Code for an average new construction, 1.5 credits had to be met through the use of efficient heating, water heater, insulation, windows, etc. This requirement was fairly easy to meet. In the 2015 Energy Code 3.5 credits has to be met through the selection of energy efficient systems. Meeting this requirement will prove to be more challenging and costly to the end user. It will be a balancing act of meeting regulatory requirement while trying to keep housing affordable and consumer’s budgets inline. There was some discussion regarding the confusion over residential fire code, and when a project has to have fire marshal review and approval. When a residential project has over 5,000 square feet of total area (living area, garage area, deck area, eave area), it must meet fire code, which require it to have a fire suppression system or use alternative fire resistant materials in the construction. It was suggested that this be added to the building permit checklist as there have been projects that made it through review, only to find out during the building process that the project has to meet fire code. Additionally, with the increase in the number of solar panel systems being installed, we’ve learned that they need to be reviewed by the fire department to insure they could adequately fight a fire. These are just a few of the “in case you didn’t know” requirements that have a direct effect on your business and your clients. You are always welcome to join us at the Government Affairs Committee meeting, the 4th Thursday of the month, at 2:30pm.

UPCOMING CLASSES The KBA — Your source for education! KBA classes are affordable, local, and on topics important to your business. All professionals are welcome to register and attend our classes.

Sept. 15—CPR/1st Aid—1:30pm* Oct 26 – Construction Management – 8am Nov 2- Estimating for Builders & Remodelers – 8am We have filled over 150 seats for education in 2016! Are you accessing all the education we have to offer? Are your competitors? Don’t miss out! Register today for the classes listed above. The courses listed above will be at the KBA office in Bremerton. Please register directly with BIAW at www.biaw.com, or call the KBA office for assistance (360-479-5778). The September 15 CPR class is offered by the KBA and all reservations and payments are to the KBA directly (360-479-5778) or online at www.kitsapbuilds.com)

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Kitsap Building Association • www.kitsapbuilds.com

| September 2016 |

Kitsap Building Association • www.kitsapbuilds.com 35 Years Viking Fence Company

10 Years JL Homes

Over 25 Years Judkins Drywall Inc (29) Ecklund’s Drywall & Painting (29) Paciﬁc Northwest Title Co

Over 5 Years Liberty Bay Bank (9) Hanley Construction

Over 20 Years H&S Quality Construction Collins Homes/Kitsap Kitchen & Bath Co Spellman Construction Inc. Beisley Inc.

ANNUAL GENERAL MEMBERSHIP MEETING KBA members, please note the annual meeting will be on Thursday, October 6 at the Kitsap Golf & Country Club (11:15—1PM)

Over 1 Year Ron Hemley Septic Installation Inc (4)

This event is the annual meeting of the members where important annual business is handled including the election of the 2017 Ofﬁcers and Directors. In addition to the annual election there may be other matters for the membership to vote on.

1 Year Albert Lee Appliance Mutual Materials

We have invited the new Kitsap County DCD Director, Louisa Garbo to say a few words and we will be giving away some terriﬁc door prizes to members in attendance.

Over 10 Years Housing Kitsap (14) Bird Electric (14) Creekside Cabinet & Design Inc Paratransit Systems International

WELCOME NEW MEMBERS Roadrunner Concrete Cutting, LLC Alanna Speidel 5081 SE Bobcat Lane Port Orchard, WA 98367 (360) 373-8670 │ (360) 373-1957 Fax roadrunnerconcretecutting@gmail.com And the SPIKE goes to…..

Bill Wyman Creative Countertops Inc

END OF SUMMER BBQ! Sponsored by JCM Property Management

This is a Build Your Network event and we encourage every single member company to attend. The Kitsap Golf & Country Club has generously agreed to an affordable lunch at just $20 per person. Don’t miss out! We look forward to seeing each you and this annual event is a great way to connect and reconnect with other KBA members. To register, please go to www.kitsapbuilds .com and navigate to the Events & News page and ﬁnd the October 6 event. You may also call the KBA ofﬁce and register by phone at 360-479-5778. Join us! Plan to attend the annual General membership luncheon meeting on October 6. Doors open at 11:15. Lunch is served at 11:45.

It’s BACK to school and time to check your smoke detectors! The kids are re-charged and ready for another year of leaning and now’s the time to make sure your home’s smoke detectors are fully charged too! Change the batteries in all your home’s smoke detectors. Be safe! Smoke detectors save lives!

Remember to VOTE! KBA members are encouraged to attend this September 14 event at JCM Property Management in Silverdale. (Note: This was originally the Fall Social and was scheduled for September 15. Please note the name, date, and venue change). We ask that you please register in advance for this fully sponsored event! We want to support our sponsor, JCM Property Management by giving Jeff a reliable head-count. There will be FOOD, MUSIC, and BEVERAGES!!!! All KBA members are welcome and encouraged to register to attend the End of Summer BBQ! Wednesday, September 14 JCM Property Management, Silverdale 4pm – 6pm Register with the KBA at 360-479-5778 or online at www.kitsapbuilds.com

Your vote matters and our system is depending on it. We function in a representative form of government that relies on the principals of democracy for decision making. Your voice is not represented when you don’t vote. Too often elections are won on narrow margins of low voter turnout. The primary resulted in only 35% of all registered voters casting ballots. Think about how many voting eligible citizens aren’t even registered. When you feel unheard or under-represented by the elected ofﬁcials at all levels of government, consider how you could impact that for the better by practicing your right to vote. The great thing about voting is that you get to do it every couple of years. No vote is forever. You can live, learn, and vote another day. Please remember to vote in the November election.

KBA NEWSLETTER KBA NEWSL

EWSLETTER KBA NEWSLETTER

THANK YOU RENEWING MEMBERS

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24 | September 2016 |

TAD SOOTER/KITSAP SUN

Scott Sprague of Accumar rides a cable lift built by the business at a residence on Bainbridge Island. The Poulsbo-based company makes lifts for homes with steep properties.

Taking homeowners for a ride, intentionally A POULSBO COMPANY IS MAKING CABLE LIFTS FOR VIEW PROPERTIES BUILT ON AN INCLINE By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

BAINBRIDGE ISLAND

— The staircase that mean-

ders from the Parker residence down the precipitous bank to their beach doesn’t see as much use these days. That’s because the Bainbridge Island couple had a much easier route down the bank installed last year: a steel tram suspended on galvanized cables and powered by an electric winch. The 150-foot-long cable lift system, built by Accumar in Poulsbo, noiselessly transports guests and supplies from a deck on the Parkers’ hill-

side house to a patio next to their dock. Cynthia Parker said she and her husband invested in the cable lift because older relatives had trouble getting up and down the long staircase, and the Parkers themselves want to be able to enjoy their beach through their retirement years. “As we get older, it seemed like a nice thing to have,” Cynthia said. The Parkers represent the typical clientele for Accumar, which has manufactured cable and track lifts since the 1980s. The company, headed by partners Bill Carter and Scott Sprague, offers a

transportation solution for homeowners with steep properties. Most of the lifts they sell are ordered for high-bank waterfront properties, while others connect houses to garages. Accumar has installed about 40 lifts in Kitsap County and more across the region. Sprague said the cable lifts resemble the gondolas and ski lifts used at mountain resorts but on a residential scale. “We’re essentially doing a smaller, much more economical version of that,” Sprague said. The compact cable lifts still come at a steep cost. Systems typically run

Find out how to afford both! Teresa Bryant

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Downtown Bremerton 360-373-1263

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| September 2016 |

about $125,000 or $150,000, fully installed. Accumar’s bill accounts for only a portion of the total cost. Engineers and contractors are hired to complete the installations. Each lift is built to meet the state’s stringent elevator codes and comply with local land use regulations. Sprague said in some cases the trams are easier to permit than staircases, because they only require two anchoring points on the ground: One at the top of the hill, and one at the bottom. “You just ignore the slope, pretty much, and that’s what permitters love,” he said. Accumar staff design and fabricate the lifts in a shop off Finn Hill Road. Some trams, like the Parkers’, are simple metal baskets with seats. More elaborate models feature roofs, enclosed walls or custom woodwork. “Some are like little

Dog Gus sits outside the Accumar Corporation’s shop. LARRY STEAGALL / KITSAP SUN

rooms with opening windows,” Sprague said. Accumar also builds electronic control systems that run the lifts, along with emergency brakes and other safety components. After the lifts are installed, the company offers a regular service plan. “If you maintain them, they’ll kind of go forever,” Sprague said. In fact, lifts installed by the company decades ago

are still humming. Sprague, a Bainbridge Island native, began his career as a boat designer. He built his ﬁrst cable lift in 1981 at the request of an island architect, modeling his design on a system his father created in the 1960s. The lift caught the attention of other shoreline homeowners. “I started getting orders right away,” Sprague said. Sprague and Carter began manufacturing lifts full

LARRY STEAGALL/KITSAP SUN

Accumar Corp. welder Pat Reich works on the base to a cable lift in the company’s Poulsbo shop. Accumar has manufactured cable and track lifts since the 1980s.

time, ﬁlling a niche not occupied by other businesses. Now with lifts in operation across the Northwest, Accumar doesn’t bother advertising. Word-of-mouth provides all the marketing the company needs.

The lifts are expensive, but Sprague said they’re not just a luxury for the wealthy. Often Accumar builds trams for older residents who can no longer climb stairs on their property.

“It can allow people to stay in their homes for the rest of their lives,” Sprague said. “Those are the gratifying ones.” For information on Accumar, go to www.accumar.com.

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26 | September 2016 |

Pot legalization dooms longtime head shop BREMERTON’S PIED PIPER SEES MARKET MIGRATE, WILL FOLD IN OCTOBER Employees Vince Garrido (left) and Jen Schmidt handle counter duties Monday at Pied Piper’s Emporium on Callow Avenue in Bremerton. The store is closing in October due to over-saturation of the local market, the owner said.

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

BREMERTON — Within a case of colorful glassware at Pied Piper’s Emporium, a sticker hearkens back to what now feels like ancient history in Washington state: “I (heart) My Tobacco Water Pipe.” There was a time when the phrase “tobacco water pipe” provided the supposed legal cover for those purchasing them as marijuana bongs. No more. In 2012, voters in Washington legalized cannabis and subsequent bong rips for adults. The sticker, at this point, is merely for a laugh every now and then at the Callow Avenue store. But in a paradoxical twist, Pied Piper’s, long a home base for cannabis culture in Bremerton, is closing down due to the vamped competition the legal marijuana market has created. “What always paid our bills were pipes,” owner Alyssa Miller said. “Now, there’s a million places to

JOSH FARLEY / KITSAP SUN

JOSH FARLEY/KITSAP SUN

Pied Piper’s Emporium, a longtime Bremerton head shop on Callow Avenue, is closing in October. Outside the shop, the mural of a frog and the Beatles remains.

buy pipes all around us.” Since 56 percent of Washington voters approved legalization in November 2012, three pot stores and a head shop have opened in the vicinity. That, combined with two recent burglaries in as

many months, got Miller thinking it might be time for the store to end its 18year run. “We used to be a little niche business,” she said. “But now it’s all been commercialized.” Miller was only 17 when

the store opened at Sixth Street and Paciﬁc Avenue, now home to a large office building constructed by Poulsbo developer Tim Ryan. At 20, Miller got a job there, and just three years later she bought the business from its founder.

In 2005, it moved to 816 Paciﬁc; the store again moved, this time to Callow, and has been there almost seven more years. According to Miller, employees and some customers, legalization ﬂooded the market with cheaper goods used to get high. The store prides itself on carrying American-made glassware that Miller, a glass artist herself, ensures is of high quality. But those getting stoned these days might not care about that. “It opened the market so wide that it allowed

for the inﬂux of all these cheap products,” Angela Kartischko, a longtime Pied Piper’s customer, said of legalization. Vince Garrido, an eightyear employee of the store, compared it to big-box stores that put smaller, locally owned places out of business. “It’s like Walmart versus mom-and-pop stores,” Garrido said. The store will close Oct. 18. Miller plans to liquidate inventory by slashing prices. She’ll take anything left to a barter fair in Okanogan County in late October.

Medical pot’s shutdown boosts retail profits RECREATIONAL SHOPS SEE SALES JUMP BY 20 PERCENT By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

The shutdown of medical cannabis dispensaries in June proved a boon for Kitsap County’s recreational marijuana industry. Sales by state-licensed marijuana retailers shot up nearly 20 percent in July, reaching $2.15 million, according to data published by the Liquor and Cannabis Board. All 12 active stores in the county report-

ed an uptick in sales. “We definitely saw a bump in business,” said Sharla Engle, purchasing manager for Destination Highway 420 in Bremerton. Unlicensed dispensaries were forced to close by July 1 under a state law that overhauled the state’s medical marijuana industry. Kitsap County Sheriff’s Office served notice to eight dispensaries in the unincorporated county before the deadline. Deputy

Scott Wilson said all of the operations closed as required. Patients who’ve received authorization from a medical provider can join a registry and purchase their products from recreational marijuana stores without paying the 37 percent state excise tax (other taxes still apply). A number of stores in the county received medical endorsements from the state to serve registered patients. Identiﬁcation cards are issued at the

stores. Engle said Destination Highway 420 issued more than 100 ID cards since the rules took effect. But stocking the specialized products used by some medical marijuana patients has been nearly impossible, she said. Recreational marijuana stores have to purchase from state-licensed marijuana growers and processors, and many of those companies haven’t begun producing medically approved products,

which require additional testing. “Basically right now there aren’t any,” Engle said. To ﬁll the gap, some stores stocked up on products with higher cannabidiol, or CBD, content available through the recreational market. Cannabis with higher CBD content is often preferred by people using marijuana for medicinal purposes because it has fewer side effects than strains with high tetrahy-

drocannabinol, or THC. Several store owners said they were offering special discounts to medical patients making the switch to recreational stores. “We are really trying to be sensitive to the needs of the patients who now turn to us for their medicine,” Kathy Hartwell at Paciﬁc Cannabis Co. in Bremerton said. For more information on the new medical marijuana rules, go to doh.wa.gov.

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28 | September 2016 |

Ferry pass resell site goes systemwide By Ed Friedrich ed.friedrich@kitsapsun.com

A Bainbridge Island woman, after test-launching a website that connects buyers and sellers of unused ferry passes, has taken the service systemwide. Robin Kallas opened the Ferry Tail site this week to all Washington State Ferries routes. It debuted in June with the Southworth-Vashon Island-Fauntleroy run and later added the San Juan Islands. Many riders have posted passes with trips remaining â&#x20AC;&#x201D; they have to be used within 90 days of purchase or are lost â&#x20AC;&#x201D; but

only about a dozen have been purchased. â&#x20AC;&#x153;That surprised me,â&#x20AC;? said Kallas, who created the system with husband Alex and a software development ďŹ rm. â&#x20AC;&#x153;We just need to get the word out.â&#x20AC;? The site, though largely undiscovered, has worked without a glitch and been warmly accepted by those who have been introduced. â&#x20AC;&#x153;People are very happy,â&#x20AC;? Kallas said. â&#x20AC;&#x153;Every place I have tried to advertise, Iâ&#x20AC;&#x2122;m getting high-ďŹ ves and hugs and why didnâ&#x20AC;&#x2122;t anybody try this before.â&#x20AC;? The website applies only to Wave2Go passes for passengers and reg-

ular-sized vehicles, not trucks, motorcycles or monthly passes. The ferries system sells them at a 20 percent frequent-rider discount and are good for 20 one-way trips or 10 round trips. A pass-holder, determining that the trips wonâ&#x20AC;&#x2122;t be used before the deadline, can post them on Ferry Tail instead of letting them go to waste. Buyers can search by route and number of trips needed. To purchase, they enter credit card or PayPal information. They receive the bar code from the pass. Buyers receive discounted tickets and sellers

Kitsap Sun ďŹ le photo

get back about two-thirds of the price they paid. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s working,â&#x20AC;? Kallas said. â&#x20AC;&#x153;People are posting. Itâ&#x20AC;&#x2122;s saving everyone money, and itâ&#x20AC;&#x2122;s an idea whose time has come.â&#x20AC;? The concept behind the passes is they should

beneďŹ t frequent users, not everybody. â&#x20AC;&#x153;It negates the entire reason for the existence of frequent-user tickets,â&#x20AC;? WSF spokesman Ian Sterling said. He warned that itâ&#x20AC;&#x2122;s risky for people to share

personal ďŹ nancial information with third-party websites and that it appears both buyers and sellers can cheat the system. The ferries system is investigating whether the site is legal.

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30 | September 2016 |

Minding Your Business | Tad Sooter

KITSAP SUN FILE PHOTO

Construction workers at the site that will become a home to Kitsap County’s second Jimmy John’s sandwich shop.

New sandwich option coming in Silverdale Jimmy John’s is bringing its “freaky fast” sandwich service to Silverdale. The restaurant chain was the first tenant confirmed for a 4,200-squarefoot commercial building under construction next to the AMC in Silverdale. Property manager Jeff Coombe said the structure should be finished by the end of the year. Jimmy Johns is expected to open in early 2017. The building will have room for at least one other retail tenant, Coombe said. Silverdale will be the second Kitsap County franchise location for Jimmy John’s. The same franchisee group opened a shop in 2013 at Burwell Street and Park Avenue in Bremerton. The future home of Jimmy John’s in Silverdale is being constructed in a parking lot at Clear Creek Office Plaza. Coombe said the existing building in the plaza just underwent a $1 million remodel and has space available for tenants. The owner of the plaza property also owns the neighboring AMC parcel. The theater is enjoying an uptick in business after receiving $4 million in improvements, Coombe said. The Randall Way/Kitsap Mall Boulevard corridor has been hopping with construction this year. Newlife church broke ground on a new center at the site of the former Regal cinema in May. A

self-storage center is taking shape on the hillside west of Randall. Kitsap Mall is expanding to make room for a Dick’s Sporting Goods store, set to open this fall.

KITSAP SUN FILE PHOTO

Chef Robert Irvine and his Restaurant Impossible crew visited Keyport’s Whiskey Creek Steak House in 2012. After recommending major changes to its western theme, leading to an eventual move, the restaurant struggled and has now closed.

TV couldn’t save Keyport steakhouse Whiskey Creek Steak House, a Keyport restaurant that experienced a brief and ill-fated brush with reality TV fame in 2012, has shut down for good. A sign on the front door says the steakhouse closed Aug. 5, “to give the new owners time to make changes on the building to start their new adventure.” That adventure, according the sign, will be a restaurant called Trendy’s Pizzeria, described as “an authentic East Coast eatery.” Whiskey Creek had been in business since the 1990s and gained national exposure in 2012 when it received a makeover from Food Network program “Restaurant: Impossible.” The TV show crew

stripped Whiskey Creek of its kitschy Old West interior and nixed popular menu items. The owners came to regret changes made by “Restaurant: Impossible.” They moved the restaurant to a larger space across the highway in 2013 and later turned over the business to employees. Whiskey Creek closed without fanfare this month. It’s website and social media pages are offline.

Sierra Trading posting up at The Trails Outdoor gear seller Sierra Trading Post is planning a brick-and-mortar store in The Trails at Silverdale shopping center. A permit application to build out the retailer’s space at The Trails was ﬁled with the county last month. However, a Sierra Trading Post representative said Tuesday she could not conﬁrm a Silverdale location was planned. The store appears to be headed for one of the remaining large retail spaces at the north end of the Greaves Way development. Sierra Trading Post is part of the TJX family of stores, which includes T.J. Maxx, Marshalls and Homegoods (Homegoods already opened in the Trails). Sierra is best known as an online retailer, but TJX recently began a push to open more physical storefronts, according to a story by Chain Store Age. Silverdale shoppers will have plenty of options when it comes to outdoor apparel and sporting goods. The town already has a Big 5, REI and Sportsman’s Warehouse. Dick’s Sporting Goods will open in Kitsap Mall later this year.

Trails at Silverdale General Manager Paul Brett said two large stores are expected to open at the shopping center in August. First will be Old Navy, which is moving from Ridgetop Boulevard. Shoe store DSW should open later in the month, Brett said.

KITSAP SUN FILE PHOTO

Customers enjoy a ﬂight of beer at Wobbly Hops in Bremerton after its opening 2015.The brewery will be renamed Dog Days as a new owner takes over the operation in downtown Bremerton.

Wobby Hops will become Dog Days One of Kitsap County’s newest breweries is set for a relaunch. Wobbly Hopps Brewery, which opened last fall on Fourth Street in Bremerton, will change hands at the end of August and be rebranded as Dog Days Brewing sometime in the next few months. Wobbly Hopps owners Jon and Sheree Jankowski are selling the business to fellow brewing enthusiast Jeffery Scott, of Port Orchard. Scott takes the helm Sept. 1, just in time for Blackberry Festival. The Jankowskis originally planned to hire a professional brewer to oversee operations at Wobbly Hopps, but that never came to pass. Jon said the couple has too many other interests and obligations, including fulltime jobs, to carry on running the brewery. “I haven’t mowed my lawn in a year,” he said. Jon believes Scott will preserve the friendly atmosphere and unorthodox brews customers enjoy at Wobbly Hopps. “I waited until someone came along who I could trust to take it over,” Jon said. Scott said he’s been

homebrewing for five years and worked an apprenticeship at Sound Brewery in Poulsbo. He was considering opening another brewery in downtown Bremerton before striking a deal with the Jankowskis. Scott will take over a five-barrel brewing system and a lively taproom with an outdoor seating area. He’ll continue serving Wobbly Hopps’ beers at first, while gradually adding his own recipes to the mix. Scott’s first beer, a “Dog With No Name IPA,” was brewing for the Sept. 1 opening. “I can’t wait to serve some beer to the neighborhood,” Scott said. For updates, go to the Wobbly Hopps Brewery and Dog Days Brewing pages on Facebook.

Poulsbo approves retail complex plans Poulsbo has approved plans for a retail complex that will house a Starbucks coffee shop and SherwinWilliams paint store. The stores will be constructed on a parcel directly north of CVS, off the intersection of Highway 305 and Hostmark Street. Starbucks will get a 2,000-square-foot shop with drive-thru. SherwinWilliams will occupy a 4,000-square-foot space. The Poulsbo planning director approved the project Aug. 1, according to a notice published by the city. The applicant is PacLand-Seattle, which initially submitted plans for a coffee shop and restaurant on the site. CVS sold the 1-acre parcel to Seattle-based RPI Poulsbo LLC at the end of June for $1.175 million, according to county documents. Sherwin Williams already signed a 10-year lease agreement with RPI

Poulsbo, with a projected start date of May 2017.

JCPenney opens appliance showroom JCPenney is returning to its department store roots this year with the rollout out of appliance showrooms in 500 stores. One of those stores is the JCPenney in Silverdale, which unveiled an appliance showroom Friday, according to a news release. Each showroom will display more than 100 name-brand appliance models, including refrigerators, stoves, dishwashers, washers and dryers. The store will offer nointerest financing, free delivery and a price match guarantee. Appliance sales are part of a three-year strategy announced by JCPenney’s CEO in August to grow proﬁts. Other strategies include a focus on special clothing sizes, beauty products and jewelry. The company has already bolstered its e-commerce capabilities with a redesigned mobile app and more shipping options for online orders.

Sport Clips to Silverdale Sports-themed barber shop Sport Clips opened in Silverdale the last week of August. The business is located at 9414 Ridgetop Blvd NW, across from Best Buy. The Texas-based hair styling franchise caters to men and boys. The company has more than 1,500 locations. The shops feature plenty of TV screens tuned to sports channels. Walk-ins are welcome. Stay up to date on more business news at Tad Sooter’s blog, pugetsoundblogs.com/ mindingyourbusiness.

Transit from 10

park-and-rides in North Mason to four locations that it presented to the public, including the Roy Boad site in town and three sites near the county line to Kitsap. The group of stakeholders included Mason Transit employees, Mason County Commissioner Randy Neatherlin, North Mason School Board member John Campbell, Mason County Public Works Deputy Director Melissa McFadden and resident John Piety. SCJ Alliance plans to present its ﬁndings to the stakeholder working group this fall, but some community members expressed concern at an

Aug. 22 open house that Mason Transit had not done enough to involve the public in the process. “I was the only workerdriver who could come tonight,” said Frank Gilger, who takes Mason Transit to work at the shipyard in Bremerton each day. “It’s difficult when the stakeholder meetings are scheduled in the middle of my workday.” Campbell, the school board member, defended Mason Transit’s focus on three sites north of downtown Belfair. “For years Mason Transit has been trying to build a park-and-ride in Belfair, the problem is the land (in Belfair) keeps sinking,” Campbell said. Mason Transit needs

between 5 and 10 acres for the park-and-ride in Belfair, said development manager Mike Oliver, adding that the Roy Boad site is limited by its size, about 3.5 acres unless the agency is able to purchase additional surrounding property. The other three sites are about 5 to 10 acres, depending on how much land Mason Transit could purchase. Only preliminary conversations have been had with some of the landowners, Oliver said. To follow updates on the project, go to www. masontransit.org /parkandrideproject. For information, contact MTA development manager Mike Oliver at 360-4325710 or moliver@masontransit.org.

Navy planning new pier in PA By Kitsap Sun staff

PORT ANGELES — Navy

officials approved the building of a new pier and support facilities at Coast Guard Air Station Port Angeles to provide a forward staging area for a security detail that escorts submarines traveling between Naval Base Kitsap and the Strait of Juan de Fuca. The decision follows a two-year public process. The site will include a pile-supported pier about a half mile east of the Coast Guard station entrance, an onshore facility for offices and crew rest, an armory,

an aboveground fuel tank and distribution system, and utilities. The Navy will perform mitigation for the loss of aquatic resources and for impacts to tribal treaty resources. It will include removing rock armoring, imported ﬁll and debris, concrete and asphalt pads and storage structures at the Icicle Seafoods laydown area; grading to create a low slope beach; nourishing beaches with sand and gravel, and native vegetation; and removing a nearby derelict building.

www.KPBJ.com WHAT’S HAPPENING Sue Allison Appointed Executive Director at the Poulsbo Chamber

Sept 14th

JOIN NOW! Interested in becoming a member of the Poulsbo Chamber of Commerce? Call us today at (360) 779-4999 or visit www.PoulsboChamber.com

Freedom Road Insurance is now open at 411 Park Ave. Suite B in Bremerton. The agency is affiliated with Allstate Insurance Company and owned and operated by exclusive agent Shannon Gonsalves. She is at 360-627-7513 or freedomroad@allstate.com. Gonsalves holds her Insurance Producer License in the state of Washington. The agency sells auto, home, renters, business, property, recreational vehicles and life insurance.

Do you have news to share with Kitsap Peninsula’s business community? Email announcements to sunnews@kitsapsun.com.

Monthly Networking Luncheon

Business After Hours Viking Dental - 5:00 pm to 7:00 pm 18520 Highway 305 NE - Poulsbo

CALL FOR VOLUNTEERS!! The Poulsbo Chamber of Commerce is currently seeking active volunteers for the Gala Committee, the Ambassador’s Committee and the Visitor’s Center! We would love to have you on our team. Please call the Executive Director, Sue Allison, at (360) 779-4999.

KPBJ CHAMBER PARTNER

Sue has been in the Poulsbo community for the last two decades and previously worked for Olympic Property Group as a Senior Project Manager for over 17 years. Sue managed the redevelopment of Port Gamble and the Port Gamble Bay Environmental Remediation Project. She currently resides with her husband and two fur-children south of Poulsbo.

New insurance option downtown

Monthly Networking Luncheon Speaker: Dan Ryan from Tim Ryan Construction 11:30–1:00 pm at Gateway Fellowship

Sept 15th

The final environmental assessment, the Navy’s decision and the finding of no significant impact can be viewed at http://go.usa. gov/tAr4.

EVENTS CALENDAR

Ingmar Anderson, President of the Poulsbo Chamber of Commerce Board of Directors, announced that Sue Allison has been appointed Executive Chamber Director effective August 17, 2016. “Poulsbo is currently experiencing historic growth and dynamic new economic opportunities. The Chamber Board welcomes Sue as the new Executive Director and looks forward to continuing our work to renew, strengthen and build partnerships and community success in 2016 and beyond,” said Anderson.

| September 2016 |

32 | September 2016 |

Inslee won’t enter ferry food fight BREMERTON COMPANY LOST DEAL FOR BOATS

SEATTLE — Its legal meansexhausted,aBremerton company pleaded for Gov. Jay Inslee to help keep it in the ferry food business. Washington State Ferries chose national company Centerplate in March to replace Olympic Cascade Services, which has operatedgalleysonmostroutesfor more than 11 years. Olympic Cascade argued through the courts that the process wasn’t properly conducted. The trial court and appeals court rejected Olympic’srequest to delay awarding the contract, allowing an injunction to expire at midnight Aug. 31. The state could sign a deal with Centerplate as early as Sept. 1. “Olympichasdoneeverything in its power to do,” its attorney, Warren Rheaume, saidafteranewsconference at his Seattle office. “Now it is time for the governor to do what he can do.”

Rheaume believes Inslee should direct an independent review to determine whether the procurement process was performed correctly. He and co-ownersNoveandSusanMeyers, father and daughter, don’t think it was. They want a ﬁnancial analysis of competing proposals and a process that reﬂects state preferences for local ownership, particularly by women, minorities and veterans. More than 13,000 people have signed petitions or called Olympia to “keep ferry food local.” Legislators from districts served by ferries have sent letters to Inslee to express their disappointment and asking him to review the process. The Meyers say they’re asking the governor to follow through on statements he made to Nove that he’d take a serious look into the situation and talk to ferries Director Lynne Griffith. “He has all of the information now,” Susan Meyers said. “He’s empowered to

ton Ale House is my favorite place in the world,” he said. “There are so many amazing musicians and artists in Kitsap County.” Francisco and Clark have made a point of getting involved in the community, particularly the annual July Fourth celebration, and the couple encourage staff to follow suit with a paid day off for every eight hours of community service they perform in Kingston. About half of the restaurant’s 35 employees are younger than 18 and Francisco knows most of their

parents or grandparents, giving the restaurant a family feel. She also emphasizes partnerships with local businesses, serving Majestic Mountain Coffee and desserts from Sweet Life Cakery, offering a discounted corkage fee for bottles from d’Vine Wines and featuring specialty drinks with goodies from Little City Candy, including a salted caramel martini. “It’s not a competition. It’s a community,” she’s fond of saying. “The more people we bring to town,

By Ed Friedrich efriedrich@kitsapsun.com 360-475-3792

PHOTOS BY MEEGAN M. REID/KITSAP SUN

The Kingston Ale House, formerly known as the Main Street Ale House, reopened in May under new ownership after being shut down for a remodel.

Fish sliders await pickup at the Kingston Ale House.

Kingston from 12

for more ﬂexibility and repainted the rear deck overlooking Appletree Cove. Chef Andy Bynum, a veteran of Hale’s Ales in Silverdale and Seattle, has created a menu of upscale pub food that showcases high-quality ingredients, including Beecher’s Handmade Cheese, Dungeness crab and wild king salmon. Popular dishes include crab-stuffed mushrooms, house-smoked salmon chowder and halibut and chips. The mushrooms are $9. The chowder is $6 for a cup or $9 for a bowl. And, the ﬁsh and chips costs $18 for two pieces or $23 for three.

Prices range from $5 to $16 for small plates. The popular Beecher’s Burger with caramelized onions and bacon is $16 and dinner entrées range from $12 for macaroni and cheese to $29 for a hand-cut rib-eye steak. “Our entrées are really clean. They don’t have 17 different seasonings going into them,” Bynum said. “We’re just looking to make really good food.” Francisco expects to keep things fresh by changing the menu three times a year. In keeping with its name, the ale house offers 20 beers on tap, including 15 regional selections. There’s a wide-ranging wine list and a 25-percent bottle discount every Wednesday to encourage patrons to be adventurous. The restaurant

also ﬁlls growlers and sells wine by the bottle to go. The ale house sets itself apart from other local restaurants by serving dinner until 9:30 p.m. and offers a late-night menu of small plates from 9:30-10:30 p.m. on Fridays and Saturdays. In September, Francisco plans to begin offering breakfast Saturdays and Sundays from 7-11 a.m. One thing the new owners didn’t dare change was the ale house’s popular karaoke sessions Fridays and Saturdays from 9:30 p.m. to 1:30 a.m. “This town loves karaoke,” said Francisco. “It’s a lot of fun. They’re all so supportive of each other. It’s a good crowd.” Lyon-Smith is a fan. “I’ve done karaoke around the world and I think the Kings-

act, and there’s time-sensitivity.” Inslee’s office says he doesn’t plan to intervene. “The procurement process is the responsibility of the agency in charge,” spokeswoman Tara Lee said. “The Department of Transportation has followed the appropriate procurement process, and we are not going to get involved in the existing process.” Olympic Cascade finished third out of eight bidders and it would be unethical if not illegal to choose the company because it’s local and familiar, WSF spokesman Ian Sterling said. “What Olympic Cascade is asking us to do is ignore a process that so far has been found to be fair and lawful,” he said. If a contract is signed with Centerplate, Olympic Cascade would be given a 30-day notice and two weeks after that to remove its equipment. Centerplate would need time to get set up. Olympic Cascade employsabout100people.Centerplate is required to give them preferential hiring status and is already interviewingthem.Becausethey already have the required training and credentials, many would be expected to step right into the new company. The contract requires the new contractor to staff each galley with two workersatatime,withsome exceptions. the more people who will frequent all the local businesses.”

KINGSTON ALE HOUSE

Where: 11225 NE State Highway 104 Hours: 11:30 a.m. to 10 p.m. Sundays-Thursdays, 11:30 a.m. to 1:30 a.m. Fridays and Saturdays Reservations: recommended on weekends and for parties of six or more Info: 360-880-0412 or http:// thekingstonalehouse.com

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34 | September 2016 |

BUSINESS STRATEGY | DAN WEEDIN

Family Matters, Part 2: Why you hate your boss

his is the second of a business unattended by you for three-part series on run- more than a week? So much so ning a family business that you constantly are checking profitably and equitably. Over in when you’re away? ■ Do you hate your boss? the past 27 years, I’ve worked Let’s be clear. I’ve seen all with hundreds of family businesses. Even though the indus- of these iterations in small family-run businesses over the tries differ, the past 27 years. I’ve heard all the challenges surusual excuses: rounding them “I have to make sure the are very comwork is done to the company mon. In the next standard…” two columns, I “No, I really thrive when will draw attenworking in chaos for 12 hours tion to the three a day…” most critical “I have to set a good example topics that all family businesses need to address for both profit- of work ethic or else nobody would work hard…” ability and family bliss. “I’m not a micro-manager; it’s So you work for “the man,” do just that I need to know everyyou? Or maybe, “the woman?” So much of our popular cul- thing that goes on in my busiture revolves around the con- ness…” “My employees feel empowceptualization of the persecuted and overburdened employee who ered when I’m always around. works for a horrible boss and un- They hate it when I’m gone…” “Oh, I’m only being controlcaring business. A modern day Willy Loman character that is ling until (fill in the blank)…” I could go on for the entire coldoomed to a dreadful employment while the boss lives a care- umn. In fact, you may have othfree existence carousing on their ers to share, especially if you are employed at a family business! yacht and mansion. Here’s the stark reality of the When it comes to small family businesses, the true picture is situation — if you own and operate a small family business and often very different. I find that a very high num- can’t walk away for two months ber of business owners fled one without touching it, then you horrible boss for an even worse don’t have a business, you have boss…themselves! So many of a job! In my experience, entreyou — yes, you — have started preneurs start their businesses or inherited family businesses and find yourselves being treated more conENTREPRENEURS temptibly than you’d accept from any othSTART their businesses not er employer. to have a job, but to create Let’s do a quick jobs; create value; do what check: they love; and eventually sell ■ Do you start work at 6 a.m. and that business to fund the rest then stop at about 8 of their lives. p.m. (or later)? ■ Do you take fewer vacation days than your employees? not to have a job, but to create ■ Do you accept and return jobs; create value; do what they work calls and email until you love; and eventually sell that go to bed? business to fund the rest of their ■ Do you go to work sick, even lives. If you work yourself to when you’d not allow employees the bone and create a condition to do the same? where you’re always stressed out, ■ Do you fear leaving your burned out, and dreading your

KITSAP SUN FILE PHOTO

Kelly Campo’s passion for cycling led him to start a small business, Night Owl Cycling. Maintaining time for himself to ride is key as owner.

work, you may not have a much of a life left to enjoy. The answer is to stop hating your boss. Here’s my ﬁve-step process to doing that quickly: 1. Empower your employees: That means train and then trust them. They want autonomy and the permission to fail and learn. That means delegate things that you shouldn’t be doing anymore. It means that you must create a culture and operation where you’re working yourself out of a “job!” 2. Take time off: Force yourself to take vacation time. You can still make yourself accessible in the event of an emergency, but in most cases it won’t happen. Your life balance requires relaxation and recharge. Take it. 3. Give yourself a break: Too many CEOs by their own actions seem to require perfection in themselves. If you do that, stop. You don’t require perfection from employees (and if you do, stop that, too). Allow yourself

to be human, to make mistakes, and to be resilient. By doing this, you’ll alleviate stress and anxiety in yourself and your employees. 4. Ferociously guard your time: I cover this in my book, Unleashed Leadership. Learn how to prioritize by triaging what is urgent, important, and normal. The bulk of the time will actually be spent on the last one. Your time is extremely valuable. Save it for what only you can do and what you want to do. 5. Commit to having fun: That’s right. You can have fun. What does this look like? For the savvy CEO of a small family business it looks like actually enjoying what you do and manifesting it through your self-talk, your behavior, and your leadership. You must have a passion for your product or service; must enjoy people; must be a lifelong learner; must be a risk-taker; and must be an encourager. You must be able to reward and for-

give yourself; seek out new challenges; create and innovate; and be a positive inﬂuence in your company. People don’t leave jobs, they leave bosses. You’re stuck with yourself. You’d better come to a lifelong “employment agreement” where you wouldn’t even dream of working for anyone else. Next month, Part 3: Dysfunction junction — What’s your function? Dan Weedin is a strategist, speaker, author and executive coach. He helps small business and middle market business leaders and entrepreneurs to grow more profitably and create a better life. He was inducted into the Million Dollar Consultant™ Hall of Fame in 2012. You can reach Dan at 360-697-1058; e-mail at dan@ danweedin.com or visit his web site at www.DanWeedin.com.

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36 | September 2016 |

HUMAN RESOURCES | JULIE TAPPERO

Help, don’t hurt, in your hiring process T

he latest report on unemployment claims revealed that new claims have dropped again, and have actually held at a low level now for 76 straight weeks. The unemployment rate is holding steady, and economists are telling us we are basically at full employment. This means the talent pool our businesses rely on for success is shrinking. If you ask almost any business owner or manager to name a major issue they struggle with, they are likely to tell you it has something to do with ﬁnding good employees. The early bird gets the worm, right? How can we speed up our hiring processes and grab the best worms — oops, workers — before someone else snaps them up? According to a recent article in the Kitsap Peninsula Business Journal, a survey by DHI Group showed that on average it takes companies 28.3 days to ﬁll a job. If we’re going to win the hiring race, we have to be able to move more quickly! What’s holding us back? The tight job market is part of the problem, but we are responsible for some of our difficulties. Technology can be both friend or foe when it comes to hiring.

We’re now able to access an unlimited number of candidates, thanks to job boards and social media. The Internet seems to promise endless possibilities, giving us the impression that the perfect candidate has yet to cross our cyber-paths. When employers chase this promise too long and too far, they can fail to recognize they’ve already discovered their perfect candidate — until it’s too late, and the perfect candidate is now your competitor’s perfect new employee. Assessments and skills tests are another aspect of technology that can hurt as much as help with hiring. We used to take a candidate’s word for it when they told us about their proficiencies. Now, we can test them on just about anything, including whether their personality is a fit for our culture. Far too many times, I’ve watched my own clients lose out on great candidates just because someone didn’t “pass” a particular test. Hiring is not a puzzle where pieces are always going to be perfect fits. Becoming too hung up on test scores can prevent employers from recognizing great talent when they see it. According to Pew Research, 50 percent of smartphone job seek-

ers have used their phone to apply for a job. This is information we should seriously take into consideration when we review our job application processes! If your job application process is cumbersome on mobile devices and tablets and has too many questions, job seekers will abandon the ap-

HIRING IS LIKE DATING. Both parties want to feel the love. If you don’t call, but someone else does, your candidate may move on to a company who’s expressing more interest. plication and move on to a more easy to use opportunity. In fact, a CareerBuilder survey showed that 60 percent of job applicants quit during an application process purely out of frustration. If you’re advertising your job online — and especially if you’re paying per click — imagine the money you’re wasting whenever an applicant quits part way through. Review your application, make sure it’s mobile friendly, and that you’re only asking questions that are truly necessary during the

earliest phase of your recruitment process. Less can be best! Like the Boy Scouts say, “be prepared” before you start the hiring process. Figure out exactly what you need and write an accurate job description and job posting. Be clear on what is absolutely required for the position, and what is just a preferred skill or experience. Have someone committed to reviewing resumes daily as they come in. Just like bread, resumes grow stale when they sit too long. Decide who will need to interview your candidates and have them block time on their calendars. It’s common these days to conduct panel interviews, or have candidates meet with a variety of company stakeholders. The more people involved, the more complicated and time-consuming it gets. And the more hoops your candidates have to jump through, the more tired of the process they can become. If you do have a complex interview process, you should at least plan it out ahead so a candidate moves through it quickly. Hiring is like dating. Both parties want to feel the love. If you don’t call, but someone else does, your candidate may move on to a company who’s expressing more

interest. After all, just as you’re interviewing several people, your candidates are interviewing with several companies. Your candidate may not realize what’s going at your end. They may not realize that you are in the middle of checking references on them, or that one of your decisionmakers has gone on vacation, or your dog just died. All they know is they haven’t heard back from you — which they may interpret as you choosing to hire someone else. Don’t lose your top choice just because you failed to pick up the phone. Job seekers are looking for a great place to work and a job they will love. Your hiring process itself tells them something about your company and its culture. Take a look at your application process, from start to ﬁnish, through your applicants’ eyes and ask yourself how it makes you feel. If the process is slow, annoying, and unreasonably lengthy, and the management team has difficulty making a decision, you’re not selling your company and your opportunity very well. • Julie Tappero is president and owner of West Sound Workforce, a professionalstaffingandrecruiting company with offices in Poulsbo and Gig Harbor. Contact Julie at julie@westsoundworkforce.com.

| September 2016 |

BUSINESS COMMENTARY | DON BRUNELL

COMMENT | ORLANDO R. BARONE

IRS really going for the gold Ready, set, school

Guess who was among the first to welcome our Olympic athletes back home from Rio? None other than the IRS. For U.S. athletes, winning an Olympic medal comes with pride, glory — and a hefty federal tax bill. According to TIME, Michael Phelps owes over $55,000 in federal income taxes for his five gold and one silver medals earned at the recently concluded summer games. That’s a whopping amount even for someone whose net worth is $55 million. The U.S. is one of few countries which does not provide government funding for their Olympians. Most Olympic athletes are not as fortunate as Phelps because they lack endorsement deals and rely on small stipends from the USOC and income from day jobs. Some even maintain their amateur status and are college students who rely family support and scholarships. So how did the IRS get into taxing America’s Olympic medal winners? It started in 1992 when the U.S. Olympic Committee allowed professional athletes to compete for Team USA in the Barcelona games. USOC also established cash prizes which paid $25,000 for gold, $15,000 for silver and $10,000 for bronze medals. With that in mind, America’s Olympic officials decided that our country was already competing against professionals from other nations, so why not find a way to let our best, amateur or professional, represent us. “Like any prize winner, from a jackpot hitter to a Nobel Prize recipient, the athletes are taxed because Olympic medals and cash bonuses are considered income,” said Steven Gill, associate professor of accounting at San Diego State University. The tipping point came in the 1988 Seoul games when the

U.S. swimmer Michael Phelps shows off his gold medal in the men’s 200m Individual Medley, the fourth at these Summer Games and the 22nd of his career, at the Olympic Aquatics Stadium in Rio de Janeiro, Brazil, on Thursday, Aug. 11, 2016. (Robert Gauthier/Los Angeles Times/TNS)

Russian (Soviet) professional basketball players beat our amateurs for gold. So “The Dream Team” led by professional basketball players — Michael Jordan, John Stockton and Magic Johnson — went to Barcelona in 1992 and Team USA again stood atop the awards podium. At the time, some Americans balked at using professionals. They pointed to our 1960 and 1980 teams which defeated the heavily favored Russian hockey teams on their way to gold medals. The USOC decision 24 years ago paid off. The 2016 Rio Games will go down as the best ever for Americans who won 120 medals. That beats the old record of 110 medals at the Beijing Olympics eight years ago. In 2008, the “Victory Tax” take was $5.3 million. This year’s total revenue to the IRS should be higher. The maximum possible “victory tax” on the bonus for each gold medal, using the top tax rate of 39.6% for the nation’s highest earners, is $9,900, according to Americans for Tax Reform. For silver, it’s $5,940, and for bronze it’s $3,960. Olympians in lower tax brackets would owe less. Athletes can offset their

potential tax hit with the hundreds of thousands of dollars in expenses they’ve likely racked up for training and traveling, if they treat their sport as a profession. Hopefully, they keep good records and have a sharp tax accountant. For example, in the last Olympics, The New York Times reported that Missy Franklin’s parents spent $100,000 a year on her swimming expenses. Even the medals themselves are taxed, but the taxable base is low. According to MONEY’s estimates, the scrap value of a gold medal is about $501. Silver medals have even less value, about $300, and bronze medals have the lowest value. The bottom line is that the “Victory Tax” should be repealed. The IRS might have a case for keeping it if our government was funding our Olympians, but it should not. Having the IRS in the mix is a big enough headache.

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

The games of the 31st Olympiad fade into history and the school year of 2016 begins. Parents everywhere are preparing their own little Olympians to charge into the classroom and return with the gold. Or at least a B-plus. The competitive spirit is alive and well in the classroom just as in the Olympic arena. We don’t always award gold medals, but being top of the class is an honor coveted by kids and parents everywhere. This is good news for those who despise the awarding of “participation trophies” to children who play on losing pee wee football teams. Do a web search of “hating participation awards” and see what I mean. My four adult children suffered no such undermining of their competitive spirit. They were all athletes in several sports and every award they received was earned by individual merit. Sure, one swimming ribbon reads “17th place,” but I assume there was a No. 18. Of course, losing is relative. By deﬁnition, 90 percent of all graduates are not in the top 10 percent of their class. For that matter, about 90 percent of those Olympic athletes left Rio with no medal. Winning is a rarity, losing an epidemic. Did you cheer the amazing Usain Bolt? Well, if he had stopped after his ﬁrst Olympics — he failed to advance in a 200-meter heat as a 17-year-old in Athens — he’d have ended up smack in the middle of that gaggle of losers. As the school year commences, these thoughts swirl. Having taught high school, college, and graduate students, I can state unequivocally that they are acutely aware that they are in a system that, throughout their young lives, tests them, compares them, ranks them, and rewards them based on tests, comparisons, and rankings. The “Hunger Games” trilogy has enjoyed huge popularity among them, and it’s not because the premise is unfamiliar. My daughter Cari is a highly successful professor with many accomplishments to her name. Yet I recollect with great pride a particular swim meet way back when she was 7. In the 8-and-under age group, Cari anchored one of the two 100-meter relays her team deployed. Hers was the “slow” relay. She was replaced on the “fast” quartet by a swimmer

she had routinely beaten, and she was confused and upset at this. She typically swam her 25 yards face in the water, without taking a single breath after her dive. I once asked her if she thought about breathing during those swims. “No,” she said. “What do you think about, then?” “I think,” she said, “about winning.” She knew she was contributing to a losing cause that evening as her frantically ﬂailing teammate touched the wall, almost a full length behind. Cari propelled a strong child’s body into her lane and swam the 25 yards face down. She had taken no breath in her losing cause. She had thought only about winning. That loss explains Cari’s successes better than any of her wins, which are many. Her insistence on giving her all no matter the odds is the story of her life. It requires a combination of grit, persistence, courage, and something else, something hard to describe. I think it’s a kind of outlandishness. A notion that you might just make up a full length and win the race. It’s 17-year-old Bolt looking back at the empty track and saying, “See you in four years.” It’s everyone who has ever been pushed back, knocked down, or counted out regaining their footing, squaring their shoulders, and reentering the ﬁeld of play. It is your daughter refusing to be told she’s not college material, your son rebelling against a world of cynical statisticians ever ready to tell him exactly how foolish he is to set that goal, chase that dream. Foolish even to try. So, here’s my nugget of advice as the school year begins: Whatever the quest sought by your son or daughter, listen with care for the voices that cry, “Outlandish.” Let that be your signal to bend down, grab your child by the shoulders, and whisper: “Go for it. Just go for it.” That’s the kind of participation deserving of a trophy. Orlando R. Barone is a writer in Doylestown, Pennsylvania. Readers may send him email at orby114@aol.com. Distributed by Tribune

38 | September 2016 |

KITSAP ECONOMY | JOHN POWERS

Plan in hand, how will we grow?

he Washington growth targets of 75,000 St ate G row t h new residents and 45,000 Management Act new jobs county wide was enover the next twenty acted in years. The changes in 1990. Its Kitsap County’s compreprimary hensive plan currently purpose shapes the future of apis to enproximately two-thirds sure that of Kitsapians (175,000 l o c a l out of 265,000) residing g ove r n in both rural and urban ments, both county and areas of unincorporated municipal, effectively Kitsap County, as well as Kitsap Sun file photo m a n a ge a nt icipated thousands of businesses Silverdale is poised for more growth, from retail to residential, and the Kitsap County 2016 Comprehensive Plan update will help guide the development. growth within their re- based in unincorporated spective jurisdictions in Kitsap County. terms of land use poliThe Silverdale Urban terms of both population tions for the continued chapter 2 of the plan). components of the updatcies and regulations, as Growth Area is by far the and commerce. growth of Naval Base And, our Alliance is ed comp plan or the capiwell planning for criti- largest and most dense Much of growth pro- Kitsap’s multiple mis- grateful for having been tal facilities plan dealing cal transportation and unincorporated urban jected for the Silverdale sions, including NBK invited by the Board of with infrastructure. We public works infrastruc- growth area within Kit- UGA is fueled by the Bangor on the periph- County Commissioners will also provide an opture to support projected sap County. It is currently significant expansion ery of Silverdale’s UGA, to remain involved in the portunity for stakeholdgrowth. To comply with home to approximately of the Harrison Medi- these market growth fac- process of implementing ers to share their ideas the GMA, local jurisdic- 17,000 citizens, residing cal Center currently un- tors make a strong case the updated comp plan. and interests in particitions are required to de- in 8,000 households. It is derway. It is anticipated for being well prepared We see our role in the pating in the processes, velop, and periodically also the largest commer- that this mega project, to shape Silverdale’s fu- implementation of those possibilities, and projupdate, a Comprehensive cial area in the county, when completed in 2018, ture in a smart, balanced, portions that will guide ects that will drive the Land Use Plan, or “comp with an employment base will employ over 2,500 and sustainable manner. future growth in the Sil- further development and plan,” to ensure they are of approximately 10,000. health care professionals Now that what we have verdale UGA (identified re-development of the prepared to effectively Over the next 20 years and will attract and help an updated Kitsap Com- in the comp plan under Silverdale UGA. And we deal with growth that Silverdale’s population is grow considerably more prehensive Plan 2016– chapter 8) as one of con- hope to explore possible will impact their com- expected to increase by medical and health care 2036, what are the next tinued community en- incentives and strategies munity’s future. over 50 percent and its related businesses. In ad- steps in implementing gagement. We have been that could further faciliAfter an extensive employment base nearly dition, Silverdale’s retail the vision laid out there asked by the County to tate the development of three-year process in- double to 20,000 FTEs. It and professional services in? And, what is the con- meet with and listen to new projects or the revolving a sectors are tinued role of our Eco- Silverdale UGA proper- development of existing great deal u n d e r g o - nomic Development Al- ty owners as a whole, as projects. So, when we reach out of commuing con- liance in helping to drive well as smaller groups of and knock on your door, nity input, s i d e r a b l e the plan forward — from stakeholders with particSILVERDALE IS experiencing an influx on June 30 growth. Sil- theory into practice, into ular interests and ideas, or give you a call I sinof population looking for an affordable, the Board verdale, like balanced and sustainable and with individuals with cerely hope you’ll answer of County other West change? significant interests in and express an interest in balanced lifestyle and career alternative to CommisSound comOur Alliance was Silverdale’s future and continuing to work as a the rapidly escalating cost of housing, cost sioners admunities, is grateful for the oppor- who may desire a more community to implement of doing business and traffic congestion optedKitsap also expe- tunity to participate in candid conversation that the Plan and join in the Cou nt y ’s riencing an the community outreach can occur in a confiden- process of building an that defines the I-5 corridor. Comprei n f lu x of that shaped the comp tial one on one meeting. ever stronger, more vihensive population plan update, and to work In the coming months brant, more prosperous, Plan 2016looking for directly with the Coun- our team at KEDA will be healthier Kitsap — in2036 consistent with the is no wonder the Silver- an affordable, balanced ty’s Comp Plan Update in contact with Silverdale cluding the center of KitGMA and aligned with dale UGA garnered sig- lifestyle and career al- Internal Review Team, UGA property owners sap located in the heart of the Puget Sound Re- nificant attention during ternative to the rapidly led by the County’s De- and stakeholders to con- the Silverdale UGA. On Kitsap! gional Council of Gov- the comp plan update pro- escalating cost of hous- partment of Community vene meetings to gather ernments Vision 2040 cess regarding land use ing, cost of doing busi- Development in fashion- important input from • John Powers is executive (www.compplan.kitsap- policies and regulations ness and traffic conges- ing portions of the plan a variety of interested gov.com). Through the and infrastructure plans tion that defines the I-5 that dealt directly with stakeholders in order to d i re c t o r o f t h e Ki t s a p comp plan update, Kitsap necessary to support corridor. economic development address their questions E c o n o m i c D e v e l o p m e n t County is reestablish- projected robust growth When taken into con- elements of planning or concerns about the Sil- Alliance. Contact him at ing its vision to address in the Silverdale UGA in sideration with projec- for Kitsap’s future (see verdale Regional Center powers@kitsapeda.org.

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