February 2015 Vol. 28 No. 2
An edition of the K i t sa p Su n
Est. 1988
Sea change Environment and economy create new opportunities Page 4
Going with the flow to filter runoff | Page 5 Sustainability tips that help the bottom line | Page 6
Return service requested The Kitsap Peninsula Business Journal Post OfďŹ ce Box 259 Bremerton, WA 98337
Presorted Standard U.S. POSTAGE PAID PERMIT NO. 76 Bremerton, WA 98337 CAR-RT Presort
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Business Calendar Feb. 3, 17 and 24 Good Morning, Kitsap County Hear from a different business professional each week and enjoy a Q&A session. Where: Hop Jack’s, Silverdale When: 7:30-9 a.m. Info: silverdalechamber.com
Feb. 3 Marketing: Business Storytelling Part of Tues@noon Workshops. Evaluate components of storytelling, what consumers need to hear and more. Where: Bainbridge Cinemas,
403 N Madison Ave., Bainbridge Island When: noon-1:30 pm. Info: officexpats.com Feb. 5 Shift to Above-the-Line Culture Shannon Bruce presents
“How positive thoughts accelerate results.” Where: Olympic College, Poulsbo When: 6-7:30 p.m. Info: wwu.edu/ee/poulsbo/ events.shtml#lectureseries
Eye on Your Business Salon: Follow the Money Bring in financial statements for the month and compare the Key Performance Indicators for your business. Where: Bainbridge Cinemas, 403 N Madison Ave., Bainbridge Island When: 6-7 p.m. Info: officexpats.com Feb. 6 Brown Bag Lunch Lecture Series Create a garden that attracts beautiful wildlife and helps restore habitat in commercial and residential areas. Where: Waterfront Community Center, 370 Brien Dr. NE, Bainbridge Island When: 11:30 a.m.-12:30 p.m. Feb. 10 Kitsap Business Forum Hear from experts on how to grow, manage and improve your business. Where: Kitsap Conference Center, 100 Washington Ave., Bremerton When: 7:30-9 a.m. Info: kitsapeda.org Finance: Tax Requirements Part of Tues@noon Workshops. Prepare for tax season, and understand what your business will be held accountable for. Where: Bainbridge Cinemas, 403 N Madison Ave., Bainbridge Island When: noon-1:30 pm. Info: officexpats.com Feb. 12 Eye on Your Business Salon: Website Analytics Measure and learn from results of creating and promoting content on a website. Where: Bainbridge Cinemas, 403 N Madison Ave., Bainbridge Island When: 6-7 p.m. Info: officexpats.com Feb. 17 Business Software: PowerPoint for Business Pitches Part of Tues@noon Workshops. Learn do’s and don’ts for quick, clean presentations. Taught by Mickey Molnaire. Where: Bainbridge Cinemas, 403 N Madison Ave.,
Bainbridge Island When: noon-1:30 pm. Info: officexpats.com Feb. 18 WSTA Luncheon Briefing The subject will be “Using Open Data to Drive Innovation and Entrepreneurship.” Please register. Where: Norm Dicks Government Center, 345 Sixth Ave., Bremerton When: 11:30 a.m.-1 p.m. Cost: $25-$15 Info: 206-984-3509, westsoundtechnology.org Feb. 19 West Sound Business Expo The eight local Chambers of Commerce will be present with over 150 businesses. Where: Kitsap Sun Pavilion, 1200 Fairgrounds Road NW, Bremerton When: 2-7 p.m. Info: bremertonchamber.org/ pages/WestSoundExpo Feb. 21 Women in Agriculture Conference Join WSU Kitsap Extension for a multiple-site conference that offers women in Washington, Oregon, Idaho and Alaska a unique opportunity to gather for a one-day event, experience great speakers, learn new skills and network with others at an easily accessible location. Please register. Where: Norm Dicks Government Center, Bremerton When: 8:30 a.m.-4 p.m. Cost: $30-$25 Info: kitsapeda.org Kitsap Wedding Expo Photographers, venues, catering, disc jockeys and more. Where: Kitsap Sun Pavilion, 1200 Fairgrounds Road NW, Bremerton When: 10 a.m.- 5 p.m. Info: kitsapweddingexpo.com Feb. 25 Edward Jones Coffee Club Donald Logan, a local Edward Jones financial advisor, will be hosting a coffee club the fourth Wednesday of every month. Where: Edward Jones, 2416 NW Myhre Road, Bremerton When: 8:15 a.m.
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Also in this issue • Sound Brewery expansion will greatly increase its beer output and distribution, 16
• Top commercial property
sales of 2014 in Kitsap, 14 • Moondogs, Too in Port Orchard has local buyer, 11 • Tech columnist Charles Keating on opportunities for utilizing open data, 23
The Kitsap Peninsula Business Journal is published by the Kitsap Sun the first week of every month, and distributed to business addresses through Kitsap County, North Mason and Gig Harbor. Brent Morris, Publisher brent.morris@kitsapsun.com David Nelson, Editorial Director david.nelson@kitsapsun.com Tim Kelly, Managing Editor tim.kelly@kitsapsun.com editor@kpbj.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 360-7925247 or hugh.hirata@kitsapsun.com. To advertise in the Kitsap Peninsula Business Journal, contact Michael Stevens at 360-7923350. TO SUBMIT NEWS: Tim Kelly, Managing Editor tim.kelly@kitsapsun.com 360.377-3711, ext. 5359 Standard mail postage to be paid at Bremerton, WA POSTMASTER: Send address changes to Kitsap Sun, PO Box 259, Bremerton, WA 98337-1413 © 2015 Kitsap Peninsula Business Journal / Kitsap Sun ISSN 1050-3692 VOLUME 28, NO. 2
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introduction | david nelson
The green shoots we’re starting to see
I
sat there listening to Dr. John Mitchell’s annual discourse on the economy at KEDA’s Decision Makers breakfast the last week of January, entertained by his style and overwhelmed by his statistics. Graphs, charts, lists, percentages, inspirational quotes and questions to ponder — all of which tell the story overall of the economy, in a sense, but without a single storyline the media usually prefers. That’s because an honest assessment of the national economy doesn’t lend itself to a simple explanation, and Mitchell always illustrates that contradictions exist and statistics can’t solely evaluate society. I heard a common phrase in his presentation — 2014’s comparison with “prerecession” data, a theme that is seen often as home prices rise and unemployment rates decline. But Mitchell wasn’t preaching that everything return to 2006 behavior; he also stressed the significant differences in the business world today. That idea of a changed business climate is a discussion we had when planning the February edition of the business journal. Managing editor Tim Kelly and
I began brainstorming with the words soon read, there are businesses riding “green economy,” a cliché you’ve heard this trend — and sometimes riding those before. Words like “biofuels,” “recycling,” regulations — toward economic success, “alternative energy” and whether directly through yes, “regulation” pop into The business new contracts that allow your head, and we became for hiring and growth, or aware of the connotation trend we sought indirectly through cost we were using. savings to be found by to illustrate was The stereotype wasn’t participating in actions where we were going with how our region’s that help conserve rethe concept, and as we sources. It’s a significant talked further we real- connection to change in behavior — and ized the business trend environmental certain industries, like we sought to illustrate energy producers, are far was how our region’s con- awareness is from out of the woods in nection to environmenterms of what’s coming. tal awareness is changing changing business But there’s likely a differbusiness these days. So we ence in attitude from past these days. framed our ideas with that years as well, as the conin mind — when a comcept of “green” isn’t just a munity decides to be stewhippie ideal, but can also ards of its natural assets, which is a priorbe the color of profits. ity here, how does that affect small busiTo me that’s the connection to Mitchell’s ness? Who’s taking advantage of this mareconomic forecast — none of us are going ket? How does that help the local econback to a decade ago, whether we’re talkomy, or how can individual businessing about how we treat the environment es improve their operations with emergor how we run our businesses. And that, ing ideas or technology that’s focused on if you’ll indulge one more “green” referhelping the environment? ence, is offering our region some room to We found some good examples. As you’ll grow.
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environment & economy
Company’s work evolves from building bulkheads to restoration
on the cover Craig Powell, owner of Sealevel Bulkhead Builders, and his daughter, Jenny Powell Rotsten, stand near the culvert at the end of Kitty Hawk Drive, where their company did restoration work last summer on the Chico Creek estuary. (MEEGAN M. REID PHOTO)
By Christopher Dunagan KPBJ contributor When Craig Powell purchased Sealevel Bulkhead Builders in 1984, he could walk into the Kitsap County Courthouse with a simple plan and walk out with a permit to build a solid wall along the shoreline. “I would draw a little diagram,” Powell said, “and they would give me a permit over the counter for $25.” Through the years, state and county rules have evolved to better protect the shoreline ecosystem. Today, new bulkheads are prohibited — unless one can show that a house is at imminent risk of damage from waves and tides. Sealevel Bulkhead Builders, based in Kingston, has evolved as well. The company that built bulkheads almost exclusively in the 1980s has become heavily involved in the restoraLARRY STEAGALL tion of shorelines, streams and Machine operator Craig Powell, owner of Sealevel Bulkhead Builders of Kingston, begins to chip away estuaries. the old culvert at the mouth to Chico Creek. The culvert was removed last summer. Sealevel has become a player in the multimillion-dollar effort to restore tion, Powell finds himself removing some the shoreline allows people to better enjoy the Puget Sound ecosystem. It’s an efof the same bulkheads that he built years their property. fort that benefits fish and wildlife but also ago, sometimes replacing solid wooden or “We are taking out some of our older protects human health and boosts the rerock walls with so-called “soft-bank probulkheads or else modifying them with gional economy, state officials say. tection.” The softer approach involves ansoft-bank protection,” he said. “SomeSince 2009, $253 million has been spent choring large rocks or logs into a sloping times we use a combination of bulkhead on more than 700 restoration projects beach to dissipate wave energy before it and soft-bank.” throughout the Puget Sound region, recan cause damage. Powell can discuss the benefits of natsulting in 15,000 jobs, according to esti“We are finding that more and more peoural shorelines, including overhanging mates by the governor’s office. ple are trying to get down to their beach,” vegetation that feeds insects to marine As an example of the surge in restoraPowell said, noting that a softer edge to life; natural erosion, which provides san-
dy spawning habitat for small forage fish; and shallow water (absent bulkheads), which allows small fish to escape predators during migration along the shore. “Theoretically, a lot of this restoration is quite helpful,” Powell said. “I don’t stick around to watch the fish. When the tide is in, we are gone.” Powell got his start in construction working for his father’s company, where he learned to drive dump trucks and other heavy equipment. When his father disbanded that company, he started working for the two-year-old Sealevel Bulkhead Builders, which was constructing wooden bulkheads exclusively. Within a year, Powell offered to buy the company, and the owner accepted. Along with his wife Sandy, Powell has expanded the business through the years. The Powells’ daughter Jenny joined the company after graduating in 2004 from Huxley College of the Environment at Western Washington University. She quickly put her degree in environmental economics to use by working with planners and engineers as well as the agency officials who approve permits for the company’s various projects. Today, Sea Level Bulkhead Builders employs about 14 workers during the busy season and can take on projects of all sizes. Because of Sealevel’s extensive experience working in high-energy shoreline environments, the company finds itself in demand for restoration projects. Recent work includes: • removal of an old bulkhead at the county’s Anna Smith Children’s Park on see restor ation | 10
Inslee’s cap-and-trade plan would make polluters pay By Phuong Le Associated Press OLYMPIA (AP) — So many people signed up to testify on Gov. Jay Inslee’s sweeping proposal to rein in greenhouse gases that the Jan. 27 public hearing on the bill was continued for another day. About three dozen people from across the state testified before the House Environment Committee on a bill to cap the overall amount of carbon emissions in the state and require major polluters to pay for each metric ton of carbon released. The hearing room quickly filled, and many who couldn’t get a seat had to watch the proceedings on TVs in overflow rooms.
Rep. Joe Fitzgibbon, D-Burien, who chairs the committee, said the impacts of climate change are real and the state can’t afford to wait any longer to address it. He’s the prime sponsor of House Bill 1314, which has three dozen Democratic co-sponsors. The governor-backed bill, which must be approved by the Legislature, faces resistance from some businesses and Republicans, who control the Senate. Q: Why is the governor proposing it? A: Inslee says polluters should pay for the emissions they release into the atmosphere and his plan will raise $1 billion in its first year for transportation, education and other needs. The governor says the
state has a moral obligation to take action on climate change and his plan will help the state meet a mandate to reduce greenhouse gases linked to global warming. Q: Who supports it and why? A: Environmental groups, labor unions, groups advocating for low-income and minority communities, and public health advocates testified in favor of the bill. A coalition called Alliance for Jobs and Clean Energy that launched Tuesday is also pushing the plan. Supporters say the plan will cut pollution and improve public health and the environment. Renee Klein, CEO of the American Lung Association of the Mountain Pacific, was among those who said
the state is already facing the consequences of climate change in increased health costs and other problems. Polluters should be held accountable, supporters said, and the program will ultimately encourage more energy efficiencies and clean-energy innovations. De’Sean Quinn, a Tukwila City Council member, told lawmakers it’s also an issue of social justice and equity. He and others said minority and low-income communities often have higher rates of asthma and other health issues related to pollution. Q: Who opposes it and why? A: The Western States Petroleum Association, Association of Washington Business see cap-and -tr ade | 5
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FEBRUARY 2015 | 5 In this April 2, 2010, file photo, a Tesoro Corp. refinery, including a gas flare flame that is part normal plant operations, is shown in Anacortes, Wash. The plant is among those likely to be affected by Gov. Jay Inslee’s sweeping proposal to rein in greenhouse gases with a charge on polluters, which was heard in late January in the House Environment Committee. AP Photo/Ted S. Warren, File
er Road power plant in Vancouver. Biomass plants, waste facilities, landfills, and federal and tribal entities are exempt. But the University of Washington and Washington cap-and -tr ade | f rom 4
and others formed a group, the Washington Climate Collaborative, to urge alternatives. Republican lawmakers say the state is already a low-carbon-producing state and they support private market innovations. state is already a low-carbon-producing state and they support private market innovations. Christine Brewer with Spokane-based Avista Corp., which will be covered under the plan, said the costs will fall to ratepayers. Matthew Lyons with Nucor Steel in Seattle said that as the state’s only steel mill, it must compete with others out of state that won’t have to pay those charges. He estimated that the company would have to pay more than $3 million in the first year. Other business owners said they were concerned that the so-called large polluters would simply pass along the charges onto them in “a trickle-down effect.” Q: How does cap and trade work? A: The program sets an overall state limit on carbon dioxide and other emissions and requires major polluters to buy allowances, or permits, for each metric ton released. The cap would ratchet down over time, so fewer allowances are issued and the price for pollution rises. Companies can decide to pay for their pollution or find that there’s more financial incentive for them to reduce greenhouse gas emissions by becoming more energy-efficient or finding newer technologies to reduce pollution. Q: Who would have to pay and how much? A: The program would apply to major facilities that release more than 25,000 metric tons of carbon a year, such as power plants, oil refineries and food processors. Examples of those likely affected include the Tesoro Refinery in Anacortes, Ash Grove Cement plant in Seattle, Boeing Co.’s commercial airplanes factory in Everett, ConAgra Foods Lamb Weston in Pasco and Richland, and the Riv-
Company developing way to filter out stormwater pollution upstream By Tim Kelly KPBJ editor Researchers at the Center for Urban Waters at the University of Washington Tacoma are working to “understand and quantify the sources, pathways and impacts of chemical pollutants in urban waterways.” Part of that research — which is funded by the federal Environmental Protection Agency — is ana-
lyzing new technologies, and one of the first options to be tested at the center is a “stormwater interceptor mechanism” developed by a new company in Kitsap County. Stormwater pollution is a critical issue in the Puget Sound area. As the Center for Urban Waters website notes, “When contaminants are released into our environment they collect see stormwater | 30
State University would be included because they meet the threshold. Q: How much would polluters have to pay? A: The actual price would be set at auction, with a minimum of about $12 a metric ton and no lid on how high prices could go. At $12 a ton, for example, facilities that release 100,000 metric tons of carbon a year would have to pay about $1.2 million. Q: Who else has a cap-and-trade program? A: Washington lawmakers failed to pass a cap-andtrade program in 2009 when it was pushed by then-Gov. Chris Gregoire. California rolled out a program nearly three years ago. A coalition of Northeast states has a program that applies to power plants. Europe launched a program in 2005.
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Tips on sustainable steps that can save on the bottom line By Rodika Tollefson KPBJ contributor Some businesses may be hesitant to embrace sustainable practices because of the notion that “green” means spending more money. But that is no longer the case — and often, even simple changes can bring big cost-savings. Sustainability is about controlling costs, improving efficiency and generating positive return on investment, said Alan Crain, chief operating officer at Kitsap Bank, which has implemented a comprehensive sustainability program. “The sustainability mindset is all about using fewer resources,” Crain said. “Companies that embrace sustainability gain a competitive advantage through a lower and better controlled cost structure over those who don’t.” To get started, Crain recommends starting with the “low-hanging fruit of changes that are easy to implement and quickly impact the bottom line,” and prioritizing projects based on implementation time, payback period and ROI. “Kitsap Bank started by implementing changes that immediately improved the bottom line,” he said. “This helps get buy-in from others in the organization to see that sustainable choices are smart business.”
Simple, Low-Cost Steps
The simplest step toward a greener business is through changes in operations, and recycling is the easiest place to start, said Tony D’Onofrio, environmental sustainability director for Town and Country Markets, which includes the Bainbridge store and Central Market in Poulsbo. “It’s just a matter of changing behavior in the organization and once you do, the
cost of recycling and composting is less than the cost of your waste,” he said. Kitsap County’s Waste Wise @Work program offers businesses technical assistance for reducing waste and recycling more. The county is giving away free recycling bins to participating businesses (while supplies last). Recycling tips: • Be creative and go beyond the usual paper, glass and plastic. Town and Country Markets recycles things like Styrofoam containers, deep-fryer oil (which is used to make biodiesel), and cardboard, a valuable commodity that pays cash back. rice fergus miller photo Bay Hay & Feed on Rice Fergus Miller’s building in Bremerton has no ductwork, Bainbridge Island not so a huge ceiling fan circulates air through the space, only recycles Styrofoam including the central area that is open to the top floor. containers but also colWindows at the top of the building can be opened to increase lects them from the air flow as well, allowing warm air to escape in the summer. community twice a year. The store then delivers them to a Seattle company that reuses the this strategy after hiring two college incontainers for shipping cold products. terns, an architect and a mechanical engiOther operational tips: neer, who studied the firm’s habits. • Use power strips for computer equip• Place reminders around for employees ment so it can be easily turned off at the to turn off lights. end of the day. “You can be surprised at how big a Rice Fergus Miller Architecture and change that can make,” D’Onofrio said. Planning, located in a renovated down• Install timers for lighting and the town Bremerton building, implemented HVAC system (some already have a built-
Bainbridge Hay & Feed photo
Above: A rain collection barrel at Bay Hay & Feed on Bainbridge Island. Stored water is used for watering plants. in thermostat that’s often overlooked). • Reduce paper use by printing doublesided and using electronic records. Kitsap Bank has seen a big reduction in the amount of paper it uses through a variety of measures that include e-statement adoption, mobile banking and remote-deposit capture, printing on both sides and making internal board and committee documents available electronically. Additional savings came from a reduction in postage and courier delivery costs.
More Energy Savings
Simple improvements: • Install backer rod between sheet rock and windowpanes. “If you’re careful, you can do it without having to replace the molding. …It reduces the flow of air in and out of the building so you don’t gain heat in the summer or lose see tips | 8
Carbon tax proposal could indirectly affect Kitsap’s road needs By John Stang For Kitsap Peninsula Business Journal OLYMPIA — Gov. Jay Inslee’s plan to tax and reduce carbon emissions (see story, page 4) in Washington will be one of the biggest legislative battles this session in Olympia. But what will all that mean to the Kitsap business community? Directly, very little. Only one of the state’s 130 biggest polluters who would pay the proposed cap-andtrade system’s fees is nearby, and that’s
in Port Townsend. And the area’s largest industrial employer, Puget Sound Naval Shipyard and Intermediate Maintenance Facility, is exempt because the state does not have jurisdiction over federal facilities and tribal operations, said Chris Davis, the governor’s advisor on carbon markets. But the ripple effects of the proposal — even if all it does is stir debate in Olympia — could be significant. To John Powers, executive director of the Kitsap Economic Development Alliance, Inslee’s plan could be a catalyst to gets some Kitsap Peninsula transporta-
tion projects moving, which could make a difference to local businesses. These include improvements for the Washington State Ferries, tackling congestion on State Route 305, dealing with congestion of traffic going to and from the Kingston ferry landing, and upgrading the interchange of State Routes 3 and 16. “I think this proposal holds great promise for that,” Powers said. How this is evolving is a bit complicated. To start with, the legislature’s House Democrats and Senate Republicans have deadlocked for roughly 22 months on how
to map out a 10- to 12-year package of transportation construction and maintenance ventures, including the Kitsap projects. In May 2013, the House and Senate Democrats announced their $10.5 billion proposal with a 10.5-cents-per-gallon gas tax increase. The current state gas tax is 37.5 cents a gallon. Several months later, the Senate Majority Coalition Caucus — currently 25 Republicans plus maverick Sen. Tim Sheldon, D-Potlatch — gradually unveiled a $12.3 billion, 10-year proposal fueled by an 11.5-cent-per-gallon gas tax see carbon ta x | 7
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FEBRUARY 2015 | 7
Larry Steagall file
A fix for traffic congestion on State Route 305 over the Agate Pass Bridge is one of the road projects needed in Kitsap that could be indirectly impacted by a state carbon tax Gov. Jay Inslee has proposed. ca r bon ta x | f rom 6
increase. Only 12 or 13 of the 26-person caucus supports its own proposal, depending on when the votes were counted. Sheldon and Sen. Jan Angel, R-Port Orchard, were not among the supporters. Without new revenue, the Washington State Department of Transportation will be forced to cut ferry service and dramatically trim maintenance on highways and bridges. The longer the deadlock continues, the more likely it is that delays will plague other state transportation projects. Fast forward to Inslee’s December 2014 proposal to trim carbon emissions in Washington with a capand-trade program. The governor’s plan calls for roughly 130 of Washington’s biggest polluters to pay for permission to produce specific amounts of carbon emissions, which scientists have linked to global warming. If that system is installed, polluters would be allowed to trade or sell their pollution quotas to other businesses. Inslee’s approach is predicted to raise $1 billion a year, with the governor wanting the money to be divided into several chunks, including $400 million a year going to transportation projects to replace potential gas tax hikes. The governor wants another $380 million annually to go to education, where the state’s courtordered improvements on student-teacher ratios would be the most likely target for the money. The remaining money would go to Washington businesses competing against out-of-
state and foreign firms that don’t face the same carbon-pollution restrictions, and to provide tax-credit checks to roughly 500,000 lower-income families. It is the proposed $400 million from carbon emission charges for transportation that could make a ripple in Kitsap County. Inslee hopes to reduce statewide carbon emissions to achieve limits that the Legislature set in a 2008 law. That measure set a goal of reducing the state’s greenhouse emissions to 1990 levels by 2020, with further trimming of emissions later. Recently, Rep. Joe Fitzgibbon, D-Burien, introduced a bill to put Inslee’s plan into action. During that same week, Republican Senate and House leaders overwhelmingly slammed Inslee’s proposal. They contend such charges on carbon emissions would discourage new industries from moving to Washington and would increase expenses for other businesses — specifically citing Washington’s many food processing plants — which might opt to move elsewhere. The loss of those plants would affect the facilities’ subcontractors, such as trucking firms, plus neighboring small businesses dependent on the spending by employees of the main plants, they said. People are much more interested in creating new jobs than in trimming carbon emissions, which could lose some jobs, Angel said. “It’s not a priority for the people in this session,” she said. The closest facility on
the state’s tentative list of 130 polluters is the Port Townsend Paper Corp. pulp mill in Jefferson County, on the Olympic Peninsula. Powers does not believe pollution caps on the Port Townsend facility or eastern Puget Sound sites would directly trickle down to financially affect Kitsap businesses. But Powers and Sen. Christine Rolfes, D-Bainbridge Island, believe In-
slee’s cap-and-trade program as a potential replacement for a proposed gas tax hike will force legislators on both sides of the issue to get some momentum on the long-delayed transportation talks. Powers is neutral about whether a gas-tax hike or carbon emissions money gets earmarked to fund Kitsap’s transportation projects on — as long as the actual work begins.
Rolfes leans toward the carbon emissions proposals providing the money because the pollution has been linked to increase acidity in Pacific waters, including Puget Sound and Hood Canal. That increased acidity has begun killing baby oysters and harming other shellfish harvested in the Northwest. Washington’s shellfish industry is worth about $270 million annu-
ally. Rolfes said the governor’s efforts to battle carbon emissions and ocean acidification will also help preserve tribal fisheries. Unlike Angel, Rolfes sees job-creation potential in tackling carbon emissions, contending new firms will sprout up to provide fix-it measures for pollution, or expand alternative energy sources, which would help companies such as Poulsbo’s Blue Frog Solar.
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environment & economy
Overall, all the energysaving steps at the museum it in the winter,” said Tere(including LED lights and sa Osinski, executive vice solar panels have generatpresident at Home Builded 15,000 kilowatt-hours in ers Association of Kitsap energy savings, and CO2 County, which made sevoffset savings equivalent to eral energy-efficient up1,250 gallons of gas. grades to its 20-year-old Innovative heating: building as a demonstra• If you’re constructing a tion project funded through new building, research althe U.S. Department of Enternative, innovative heatergy’s Energy Efficiency ing options. and Conservation Block BIMA uses a geo-exGrant Program. change system with 14 un• Seal the light switches derground bores to reduce and electrical outlets with heating and cooling enercaulk. gy. The bores, drilled at 400 “The more you can refeet, act as a “heat sink and duce unwanted gaps in source at a constant ground your building, the more eftemperature of approxificiently your HVAC sysmately 50 degrees. The system will run,” Osinski said. tem was designed to reduce Lighting upgrades: heating and cooling enerAlthough retrofitting gy by 90 percent and to relights requires an investduce peak heating and coolArt grice photo from Bainbridge Island Museum of Art ment, rebates and incening loads by 50 percent,” acThe glass facade of the Bainbridge Island Museum of Art allows for ample natural light. To reduce glare and control heat, tives from Puget Sound cording to BIMA. an innovative shading system — fully automated — tracks the solar angle and regulates the hollow-aluminum louvres, Energy can offset a big part When Rice Fergus Miller which were designed to look like grained wood. of the cost. The utility is ofgutted and renovated an old fering several programs for commercial customers that a major part of the design, including a glass façade on the Sears automotive center to create its new, award-winning include rebates and grants. south and west sides. A fully automated, motorized shad(and LEED Platinum certified) headquarters, the company • If the budget is tight, switch to LED lighting gradualing system tracks the sun’s angle and regulates the excreated an insulated blanket of sorts around the building. ly, as bulbs burn out. truded-aluminum louvres on the façade to keep the light “The shell traps internal heat gains from people and That’s what Bay Hay & Feed has been doing. “They cost level consistent and reduce glare. computers, so we engineered the building to the gains,” a little more upfront but it comes back to you in the long run,” said Els Heyne, managing director. • Lighting technology changes once or twice a year so any new fixtures are likely to be less expensive and more energy-efficient. At Town and Country Market stores, gradual changes included installing dimmable, motion-sensor lights to freezer cases low-voltage fluorescent lights to various areas. A variety of energy-efficient changes and retrofits at the Bainbridge store are projected to reduce energy use per square foot by 41 percent when the extensive remodel of the store is complete this spring. Solar panels: Commercial building owners may qualify for investment tax credits (ITC) for solar panels. The state of Washington also has incentives for solar equipment manufactured in the state. Kitsap Bank installed solar panels over the drive-thru lanes at its new East Bremerton branch, and Crain said most businesses could expect an average return of 7 percent to 14 percent over a 20-year period. “The ITC is scheduled to reduce from 30 percent to 10 percent at the end of 2016 and the Washington state production incentive ends in 2020, so time is of the essence to capture these returns,” he said. “However, solar systems are rapidly dropping in cost and improving in efficiency, so returns are still compelling even with reduced incentives.” Bay Hay & Feed has been saving about $2,400 per year after installing 24 solar panels, the maximum possible, in 2010, according to Heyne. The savings come from “turning the meter back” and feeding excess power back into the grid. Natural light: • Take advantage of daylight for lighting. At Central Market, skylights were added for more natural daylight, as well as sunlight monitors that dim lights when it’s bright outside. At Bainbridge Island Museum of Art, “daylighting” was ti ps | f rom 6
WWW.KPBJ.COM said Steve Rice, senior prination dinners, jazz nights, resources cipal. even bereavement groups About 80 percent of the and sewing circles. • Kitsap County Waste Wise @ Work recycling program: energy comes from the heat “It gives people a great www.kitsapgov.com/sw/ww.htm gain. “It’s not a sophisticatplace to come together and • Kitsap County Envirostars: www.kitsapgov.com/sw/sqg.htm ed system, it’s another way it gives us a captured audi• Sustainable Bainbridge: sustainablebainbridge.org/ of preserving the heat,” ence,” Rice said. • Greendrinks groups: silverdalegreendrinks.com/ Rice said. A large ceilCaptured audience, that sustainablebainbridge.org/green-drinks2.aspx ing fan is used to mix and is, for spreading the word facebook.com/bremertongreendrinks move the air the way a duct about sustainability, leverwww.greendrinks.org/WA/Poulsbo system does (the building aging the interest in the doesn’t have ductwork). unique building to “start The building (which also has solar panels) has minithe sustainability discussion for the West Sound.” mum reliance on power. Last May through August, Rice “We didn’t want to keep our energy story a secret,” Rice Fergus Miller, which employs 38 people, didn’t even have said. a power bill.
Water Savings
• Install low-flow water fixtures and toilets. Home Builders Association of Kitsap County switched to dual-flush toilets and installed faucet aerators, which use less water while maintaining the water pressure. The changes resulted in a 75 percent reduction in water consumption (excluding irrigation). The Bainbridge Island Museum of Art is saving more than 74,000 gallons of water a year — the amount of water consumed by 406 people — by using low-flush toilets, low-flow fixtures and waterless urinals. • Look for ways to recapture and recycle water. Rice Fergus Miller captures rainwater and redirects it for flushing toilets. The company has reduced its water usage by 70 percent through various steps that also included aerators and dual-flush toilets in the bathrooms, and drought-tolerant and native plants in the landscape. Bremerton Yacht Club collects and recycles the water used to pressure-wash the bottom of boats at its marina. The club uses a railway track to lift the boats from the water and carry them into the yard. An electro-coagulation unit filters the water, which is stored in tanks and then reused for pressure-washing. A separate system captures and stores stormwater runoff, which is used to supplement the main system when pressure-washer water evaporates during hot days. Prior to using the new system, the club hauled off about 500 gallons of wastewater every 10 days.
Less Tangible Benefits
Many local sustainability champions believe that it’s important to go above and beyond cost-saving green steps. Some of the benefits are less tangible or measurable, but they contribute to the so-called triple bottom line. • Treat employees right (such as offering a good wage and benefits). Employee retention does more than saving on recruiting and training costs, Heyne said. “You get a better employee base with good knowledge to sell your products,” she said. • Do things that benefit the entire community. Bay Hay & Feed’s Styrofoam recycling program costs money, but “it does good things for the community and that comes back eventually,” Heyne said. “You have to think out of the box to do things good not only for you and the environment, but also for your employees and customers,” she added. The Bainbridge Island Museum of Art is encouraging alternative transportation by providing generous bicycle storage and showers for staff, as well as electric car stations in the garage. Parking spaces are also limited to discourage traditional commuting. Rice Fergus Miller serves as a delivery spot for a bakery and a CSA and welcomes any community member to take advantage of those deliveries. The company also makes its building available free for after-hours community functions (for groups sponsored by an RFM employee who volunteers for the event), and the spacious, comfortable lobby was designed with that in mind. The space has hosted social events such as prom dinners, voting rallies, nonprofit foundation donor-appreci-
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Resources and support
Organizations like Rice Fergus Miller and Bainbridge Island Museum of Art are happy to show off their buildings and give others ideas on how to be sustainable (BIMA even offers sustainability tours). In addition to Kitsap County’s Waste Wise and the EnviroStar programs, Green Drinks networking events are another local resource. It’s “a great way to meet like-minded businesses who can share ideas and success stories and help facilitate introductions to experts in specific fields,” Crain said. “Call your waste hauler to see if you can do more with your waste recycling and composting,” D’Onofrio recommended. “Call your energy provider to see what recommendations they have for you.”
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environment & economy
Lovers of local flowers promote Valentine’s Day alternative By Tim Kelly KPBJ editor The popular farm-to-table concept that highlights locally grown food has an offshoot in the flower business. Two florists in Kitsap County are part of a consciousness-raising movement started by author and flower maven Debra Prinzing. “Locally sourced flowers are the way to go,” says Melanie Benson, one of two Bainbridge Island floral designers listed on Slowflowers.com. That’s the website Prinzing — a Seattle- and Los Angeles-based garden and design writer — launched as a nationwide online directory of florists and designers who eschew imported flowers for local, American-grown blooms. To get its message out ahead of the most flower-centric day of the year, Slowflowers.com recently sent out a news release headlined “Florists ‘take back’ Valentine’s Day from teleflorists with sustainable choices.” “I have been using locally sourced product (mainly organic) for 15-plus years,” says TJ Montague, owner of Garden Party Flowers. “I use product from my garden on Bainbridge and then source the rest as close to home as possible.” Often that source is California, especially during winter in the Pacific Northwest. But for Montague, Benson and like-minded florists, that’s a fresher and much-preferred option to cut flowers shipped by the planeload from foreign countries. “Now that we have a growers co-op in Seattle that caters to florists, rather than farmers market consumers, we are on our way,” Benson says. “Good for the local economy and our environment, local flowers are usually organically grown. We use them as our first choice.” The co-op she refers to is the Seattle
Allyce Andrew Weddings photo
Bouquet by TJ Montague of Garden Party Flowers sourced from the Seattle Wholesale Growers Market and her own organic garden (hellebores, maidenhair fern, euphorbia, daffodils, paperwhites). Wholesale Growers Market, where farmers sell directly to area florists, stores and professional buyers. “The florist-farmer movement is gaining momentum,” Benson says. Her floral design studio (which composts all its stems and leaves) doesn’t get the rush of Valentines Day orders that retail florists do, but she still urges flower buyers to make the effort to find local blooms, even if that means selecting a less traditional bouquet. “Our local grocery, Town & Country/ Central Market, is a huge supporter of local flowers,” Benson says. Slow Flowers advocates list numerous reasons why local purchases are a better
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Dyes Inlet near Tracyton; • removal of a culvert under Kittyhawk Drive near Chico, along with restoration of the nearby Chico Creek estuary; • removal of an earthen dike and restoration of a shoreline on Camano Island in North Puget Sound; and • installation of manmade logjams in the Dosewallips River in Jefferson County. About 80 percent of Sealevel’s income now comes from restoration work, Powell said. Restoration projects have helped boost the income of construction, engineering and environmental planning firms throughout Western Washington. For some companies, it has been a mainstay through the recent recession. Jeanette Dorner of the Puget Sound Partnership said it is not always easy to see the economic benefits provided by ecosystem restoration, but it is much more than beautiful scenery. Few people question the need for government spending on roads, bridges and other infrastructure that can improve lives and keep the economy running, she said. Likewise, “green infrastructure,” such as wetlands, can provide clean water and reduce flooding. That not only
what it represents. “Promoting locally grown is similar to the farm-to-table movement,” she says, “which means it is the buzzword for many, yet those of us who have been doing it for decades find it part of our life.” Prinzer, whose two most recent books are Slow Flowers: Four Seasons of Locally Grown Bouquets from the Garden, Meadow and Farm, and The 50 Mile Bouquet: Seasonal, Local and Sustainable Flowers, says on the Slowflowers. com website that she started the directory as a resource for consumers to find florists who guarantee the origin of the flowers they sell. “It’s all about making a conscious choice,” Prinzer says. In a recent profile in ArchitecMelanie benson floral photo tural Digest, the article notes that Bouquet by Melanie Benson Floral uses WashingSlow Flowers takes its name from ton tulips and California roses; some of her bouquets the Slow Food movement, and that use spring plants grown in local nurseries. Prinzer’s directory “operates under the guiding principle that purchoice than ordering franchise flowers chasing flowers should be as mindful and from a global delivery service. measured an act as putting food into your “The traditional wire-service flowers body.” are designed without regard to season, That also means paying more, the same the styles are outdated and almost everyas consumers pay higher prices for organthing is made in the dreaded floral foam,” ic produce at farmers markets than for suBenson says. “They also require the flopermarket vegies. rist to follow a ‘recipe’ of their style with “It is hard for some to pay the increased no consideration of what a florist could do price, so that part of the promoting is with the best materials they might have at tricky,” Montague says. “Many customers the time or season.” love the idea but not the price tag.” She also notes that a local business that Regardless of how many flower buyers handles wire-service flower orders gets a are persuaded by the Slow Flowers promuch smaller cut of the price because of motion to shop local this Valentines Day, middle-man fees. Benson thinks it’s a worthwhile effort. Branding the “buy local” movement as “I’m not sure selling locally grown flowSlow Flowers may be new, but Montague ers will be a huge selling point this year,” says many florists have long embraced she says, “but it is the right thing to do.”
benefits human health, but it helps maintain the economic value of fish and shellfish. “Another thing to remember about green infrastructure versus gray infrastructure is that roads and bridges require maintenance that you have to plan for,” Dorner said. “When you are successful in restoring natural processes, the system starts taking care of itself.” A healthy ecosystem can help maintain a healthy economy, she said. “Companies in our area say it is easier to recruit people to live and work here because of the natural environment.” Restoration work brings both direct and indirect economic benefits, officials say. For every $1 million invested in ecosystem restoration, between 17 and 33 jobs are created, according to a recent analysis by the National Oceanic and Atmospheric Administration. Indirect benefits depend on the specific restoration project, but they can include increased property values, lower costs for clean water and flood control, increased abundance of harvestable fish and shellfish, and tourism. A study released in January by Earth Economics of Tacoma estimates that Washington state’s outdoor recreation industry generates revenues of $21 billion a year (see story, page 34).
Jenny Powell Rotsten of Sealevel Bulkhead Builders said construction projects — and permitting — have become more complicated as the effort to protect the environment increases, especially along the shorelines. At the same time, new grant programs are becoming available to help homeowners plan and pay for removing their old bulkheads — and people are beginning to respond. “We’re still building bulkheads, because some people don’t have a choice,” Rotsten said. “But people are becoming more in tune with what a natural beach should look like.”
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retirement planning | jason parker
Faith, family and friends come before finances
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consider myself to be relatively thrifty and for years I refused to purchase a good pair of sunglasses. I was always sitting on them, losing them, or forgetting where I left them. A few years ago my wife and I were on vacation talking, and I said, “You know I think I am finally responsible enough to own a really nice pair of sunglasses.” She agreed and the rest is history. I’m not sure if the brand-name sunglasses are really any better than the cheap ones, but we are proud owners of very nice sunglasses. As we prepared for a vacation to Maui over Christmas break, I mentioned to Rebecca how I was kind of surprised and proud of the fact that after several years she and I still owned the nice sunglasses we had acquired years earlier. But while on vacation during Christmas break, I was reminded that faith, family and friends come before finances and things. One day during our vacation we were at the beach enjoying the rolling and crashing waves. Libby, my 7-year-old daughter, likes to play this game where I hold on to her and when a wave comes I help her jump over the wave. As we looked out with anticipation I saw the next wave rolling in and it was HUGE. I said, “Libby this one is too big. Come on we need to get out of here.” We turned and tried to start making our way back to the shore, but the current was rushing against our legs. We couldn’t move fast enough. I looked
back over my shoulder and realized that huge wave was just about to break right on top of us. I told her, “OK we are going to have to brace for it.” I grabbed her and held on. The wave smashed us down and she went under. I was able to hold my footing at first, but then all of a sudden a second wave hit and it knocked me off my feet. I was holding on to Libby as we both when down under the power of the waves. Heads submerged, I was struggling to hold on to my beautiful daughter as her skin was slippery from all the suntan lotion. My expensive sunglasses were being torn from my face and in that instant I had a choice to make. Do I let go of Libby with one hand to save my sunglasses or do I hold on with both hands to pull her close. In a situation like that you don’t have time to think, you act on instinct. I was holding my breath, water swirling around my head, blinded by the salt and even though she was slippery I thought there is no way I am going to let her go, so I tightened my grip and pulled her close. The water finally subsided enough to let me get my footing. I pulled Libby up. I helped her to shore so she could use a towel to dry her face. We made our way up to Rebecca, my wife, who was sitting on the beach and had seen the whole thing. Rebecca was not very happy with me. Libby jokingly and sarcastically said, “Good job Dad,” but shrugged it off like it was no big deal. My heart was racing and I made my way back out into the water to look for my sunglasses. After the adrenaline resided, and I had
Sale pending of Moondogs Too bar in Port Orchard to local businessman By Tim Kelly KPBJ editor
a few other adjustments to enhance the experience for our customers, but othA sale of Port Orchard’s erwise Moondogs Too will popular Moondogs Too is remain fairly similar,” he pending, and could close said. “While there are still by early March. numerous steps to comKurt Craig, owner of Eaplete before the purchase gle Crest Construction in process is complete, we Port Orchard, has submitare extremely excited to ted an offer on the restauhave the potential opporCourtesy photo rant and bar. It has been tunity to become part of listed on commercial real Amy and Kurt Craig an iconic downtown Port estate sites for $850,000 Orchard establishment.” for the business and the downtown buildThe property is being sold on behalf of ing it occupies at 714 Bay St. the estate of Darryl Baldwin, who died of Craig said in an email response to the cancer last April. Kitsap Peninsula Business Journal that if Baldwin, who opened Moondogs in 2007, the sale closes as planned, he has “no inwas highly regarded in the South Kitsap tention on making major changes to the area for his community support, most noday-to-day operations” at Moondogs. tably the free Thanksgiving and Christ“We intend to give the building a little mas dinners hosted at his establishment. bit of attention where required and make see moondogs | 12
time to think and process this experience, I had three realizations. First, I realized that waves are like the problems we face every day. If we turn and face them and move toward, then we can usually get beyond the break point. Moving toward a big wave can be scary and feel unnatural, but if you can get to it and over it before it breaks on top of you, then you will be much better off. When you try to run from waves or problems you might occasionally get away in time, but eventually you will get stuck in the perfect conditions and the problem will knock you off your feet. Second, as I think back about this experience I asked myself how could I ever even consider losing my sunglasses. What is wrong with me? How could that even be a thought that would pass through my mind? But as I thought about this, I realized we all make this choice all the time. We all have to decide what is most important to us. Do we value money and stuff or relationships. I’d like to believe that given the choice all of us would choose relationships over money, but how often do we hear stories about brothers who fall out of favor with one another over an inheritance? Or marriages that end because of financial hardship? Third, my greatest joy in life has been learning to be a dad. As a Christian, becoming a dad has helped me understand what our heavenly father must feel toward us. In those moments when life is crashing in on us like a rogue wave, when we make the wrong choice to try to run from a prob-
lem instead of moving toward it, when we play games and lose, when life is a struggle and challenge and we are being rolled under the force of adversity, then God in his big loving arms pulls us in close and says this is my child whom I love and I am not letting go for anything. I was recently asked during a radio interview what my hope for our community is as we enter the new year. My hope is that people understand their purpose. That they know what is most important to them. Financial advisers have the responsibility of stewardship. We are tasked to oversee, protect and grow assets that reflect a lifetime of hard work and sacrifice. We also have an amazing opportunity to learn from incredible people. I’ve learned from the people we serve that the most important things in people’s lives aren’t things. They are faith, family and friendships. My hope is that your goals for the new year reflect your priorities and that this be a year of increase for you in those areas that truly matter the most. • Jason Parker is president of Parker Financial LLC, a fee-based registered investment advisory firm working primarily in wealth management for retirees. His office is in Silverdale. Parker is insurancelicensed and holds his series 65 securities license. He offers annuities, life and longterm care insurances as well as investment services. Follow Jason’s blog at www.soundretirementplanning.com.
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Grow Community receives national green award Grow Community on Bainbridge Island has received the prestigious Platinum Award in the Green Community category from the National Association of Home Builders, in its 2014 Best in American Living contest. The sustainable, solar-powered neighborhood received more top honors by winning the Best In Green Development Award in a secondary competition. Both awards were presented at the NAHB International Builders’ Show in Las Vegas in January. Grow Community is the first development in Kitsap County to win the NAHB’s Platinum Award distinction, and PHC Construction — contractor for the project — is the first Kitsap builder recognized. “To be acknowledged among the nation’s very best residential projects really speaks well to every facet of Grow, from concept to design to construction,” PHC president Marty Sievertson said. The 8-acre Grow Community is a new urban development adjacent to Winslow village center on Bainbridge Island. With One Planet Living principles as its guide for sustainable development, project developer Asani used input from community workshops to shape the look and feel of Grow. The city of Bainbridge Island’s Hous-
Solar-powered homes and garden beds in The Village, the completed first phase of the Grow Community on Bainbridge Island. grow community photo
ing Density Development Program allowed Asani to create neighborhoods that are both compact and comfortable. The project’s first phase, the Village, is now complete and fully occupied. Construction is proceeding on the next two phases, the Grove, which will be oriented around a woodland and orchard, and the Park, where homes will flank an open greenway. Low-impact site development, certified 5-Star Built Green homes, and net-zero energy designs with rooftop solar define the project. Extensive shared, organic “P-patch” gardens and a bike share program are now in
place and popular with residents. The Village at Grow is already the largest solar community in Washington state, and solar options will also be offered to buyers in the next two phases. Grow Community has previously earned recognition for excellence from the Urban Land Institute, the Northwest EcoBuilding Guild and Green Builder magazine, among other organizations. The Grow Community (www.growbainbridge.com) is being built by PHC Construction and developed by Asani for a group of local Bainbridge investors.
Lynwood plans spark traffic, parking concerns By Rachel Anne Seymour KPBJ contributor Nearly 100 people turned out on Bainbridge Island to ask questions, voice concerns and listen to plans for a proposed residential and commercial development in Lynwood Center called Roost. Many people expressed concerns at the Jan. 26 meeting about traffic and parking in the vicinity of the popular Lynwood Theatre and Walt’s Market. “My only concern is that I can’t buy a loaf of bread because I can’t find a parking space,” one area resident said. “I don’t care what the minimum parking is, or if you go a little above what minimum is, there’s no place to park.” The nearly 5-acre development proposed by Blue Moon & Roost Land Cos. LLC would be built west of a vacant lot and paved parking area on Lynwood Center Road, between Baker Hill Road and Point White Drive. It has no water access. If approved, the development would include 118 parking spots, including 90 public parking spots for its businesses and along Point White Drive, said Jeb Thornburg with Indigo Architecture & Interiors. Bainbridge Island will conduct a traffic study of the area in the next few weeks, said
city officials at the meeting. The study will be made public once it is finished. “We know that change is a part of what happens to a community,” Thornburg said. “Part of growth is figuring out how to accommodate it in a positive way.” Other people at the meeting expressed concern about how sewer and water service would be handled. The development would be connected to the South Bainbridge Island Water System, which can handle the proposed development, Thornburg said. The first phase of the development would be 12 houses and six townhouses. Houses would cost from $430,000 to $725,000, while the townhouses (which would include a 1,700-square-foot living area and 800 square feet of ground-floor commercial space) would run about $815,000 each. Plans call for retaining about 90 percent of the existing tree canopy. Wetlands in the northwest corner of the property would be left undeveloped. The developer hopes to break ground for work on roads and utilities in April, Thornburg said. The development would not be in the Tudor style of other Lynwood Center buildings. The design for the three three-story buildings has not been set, although the
residential units would have a gray metal exterior. The second phase of the development would include three-story buildings along the south end of the property. They could be a mix of residential and commercial space, with the possibility of condos and a rooftop restaurant and bar overlooking Rich Passage. Two of the buildings would be used as an inn or hotel setup, which is referred to as Hotel Charrette in Indigo’s plans. Jeb and Belinda Thornburg, also with Indigo, plan to own and run the hotel. They also plan to purchase one of the townhouses and use the main floor as an office. A row of small, detached hotel rooms called “gypsy wagons” would be on the southwest side of the development. A brick house on the property along Point White Road could be renovated to be the office and main building for the inn, hotel and gypsy wagons. There also are plans for three water towers to store rainwater for irrigation and an open market area for a Sunday market. • Rachel Anne Seymour is a Kitsap Sun reporter and contributes articles to the Kitsap Peninsula Business Journal.
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Craig said he and his wife, Amy, intend to continue that tradition as the new owners. “Moondogs Too has a well-deserved reputation for excellent food, good service and a friendly ambiance, but perhaps Darryl Baldwin’s greatest achievement was the creation of a bond between Moondogs and the community,” Craig said. “His legacy of philanthropy is something that very much attracted us to the business …. In our minds there is no question that Darryl’s programs to feed those in need for free at Thanksgiving and Christmas must continue. Craig noted his local roots as a longtime business owner in his hometown. “We are very supportive of downtown Port Orchard and our local community and what it is becoming,” he said. “My wife and I both were raised in Port Orchard and raised our family here. I have been fortunate enough to own and operate a reasonably successful business here for the last 20 years.” Ed Punchak, the listing agent with Better Properties real estate office in Lakewood, said the purchase offer is going through a feasibility review, and a scheduled closing date is set for March 11. “We look forward to completing the deal and to meeting Moondogs customers in the near future,” Craig said.
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financial focus | edward jones
What does 2015 hold in store for investors? Article provided by Edward Jones for use by financial advisor Erin Abrigo of Gig Harbor.
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f you’re an investor, you probably had a pretty good year in 2014. But what’s in store for 2015? It’s essentially impossible to make precise predictions about the performance of the financial markets — but it is possible to identify those economic conditions and market forces that may help shape outcomes in the investment world for 2015. By paying close attention to these conditions and forces, you can gain some valuable insights as to what investment moves might make sense for you. Here are a few of these moves: • Consider adding stocks. With stock prices having climbed higher and higher for more than five years, you might be wondering if it’s time to scale back on your ownership of equities. After all, no “bull” market lasts forever. Still, some factors point to continued strength for stocks over the long term. First, we are seeing signs of improving economic growth; employment gains and low oil prices are giving consumers more confidence, leading to a boost in spending. Second, corporate earnings
— a key driver of stock prices — were quite strong in the second half of 2014, and companies appear poised to show more good results in 2015. Third, stocks — at least large-company stocks — are still reasonably valued, as measured by their price-to-earnings ratios (P/E). Given these factors, you might want to think about adding quality stocks to your holdings — assuming, of course, these stocks can help meet your needs for a balanced portfolio. And be aware that even the most favorable conditions can’t assure a continued run-up in stock prices, which can and will fluctuate. • Prepare for rising interest rates. For several years, interest rates have been at, or near, historical lows. Given the strengthening economy, and the decreased need for stimulus, the Federal Reserve may well raise short-term interest rates in 2015, perhaps as early as this summer. But long-term rates may start rising even before then, so you may want to take a close look at your bonds and other fixed-rate investments. As you probably know, when interest rates rise, the value of existing bonds typically falls because investors won’t pay full price for your bonds when they can get newly issued ones that pay high-
er rates. One way to combat the effects of rising rates is to build a “ladder” consisting of short-, intermediate- and long-term bonds. With such a ladder, you’ll be able to redeem your maturing short-term bonds and reinvest them in the new, higher-paying bonds. • Look for investment opportunities abroad. Although economic growth has been slow in parts of the world, especially China, many countries have now initiated policies to spur economic growth. These actions can create opportunities for international equity investments. Keep in mind, though, that international investing involves particular risks, such as currency fluctuations and political and economic instability. So if you are considering foreign investments, you may want to consult with a financial professional. There are no guarantees, but by following the above suggestions, you may be able to take advantage of what looks to be a fairly favorable investment environment for 2015. While you should make most of your investment decisions based on long-term considerations, it’s always a good idea to be attuned to what’s happening in the world around you — and to respond appropriately.
What do low oil prices mean for investors? Article provided by Edward Jones for use by financial advisor Don Logan of Silverdale.
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s you’ve no doubt noticed, your trips to the gas station have been a lot more pleasant these past several months. There’s not much doubt that low oil prices have been welcome to you as a driver. But when oil is cheap, is that good for you as an investor? There’s no clear-cut answer. But consider the following effects of low oil prices: • Positive impact on economy — When you spend less at the gas pump, relative to recent years, what will you do with your savings? Like most people, you’ll probably spend most of it on goods and services. If you multiply the amount of your increased spending by the millions of other Americans who are also saving money on gas, you can see that you and your fellow consumers are likely adding billions of dollars to the economy. Typically, a strong economy is also good for the financial markets — and for the people who invest in them. • Different results for different sectors — Different sectors within the financial markets may respond in different ways to low oil prices, even if the overall effect is generally positive. For see oil prices | 14
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Kitsap’s top commercial property sales of 2014 8. Trails at Silverdale, Silverdale Sale date: July 30 Sale price: $4.38 million Sold by: Homestead Business Park LLC to Silverdale Centercal LLC. Notes: Two parcels comprising 13 acres in the Trails at Silverdale shopping development, which is under construction. Centercal also bought adjoining properties.
By Tad Sooter KPBJ contributor Residential real estate sales surged in Kitsap County last year. The same was true for commercial sales, according to assessor’s records. Across the county, 302 commercial parcels changed hands in 2014, about 13.5 percent more than in 2013. A total of 198 were sold in single-parcel sales, 18.5 percent more than in 2013. Those sales included some high profile properties. Below I’ve listed the 20 biggest commercial real estate transactions of 2014 by sales price. A couple of notes before we get started: — We’re talking about sales of property, not the business tenants associated with the property. — Most the sellers and buyers were generic holding companies. You can plug the names into the state’s corporation search to get more details.
1. Arbor Terrace Apartments, Port Orchard Sale date: Dec. 22 Sale price: $28.6 million Sold by: Heritage Communities LLC to Sea 1800 Sydney Avenue LLC Notes: Two parcels totaling about 18 acres and 280 units. 2. Bay Pointe Retirement Center, Bremerton Sale date: June 16 Sale price: $21.9 million Sold by: AEWSH Bay Pointe Senior Housing to ARCH BPBRMWA01 LLC Notes: A 3.3-acre retirement center in West Bremerton.
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example, businesses such as consumer goods companies and auto manufacturers may respond favorably to cheaper oil and gas. But the picture might be quite a bit different for energy companies. You could spend a lot of time and effort trying to adjust your investment portfolio in response to low oil prices. In fact, you may well want to consult with your financial professional to determine which moves might make sense for your individual situation.
The Bethel Junction shopping center in Port Orchard, with a Safeway store as anchor tenant, was sold last sumer for $20.8 million, one of the year’s most expensive commercial property sales.
3. Bethel Junction, Port Orchard Sale date: July 22 Sale price: $20.8 million Sold by: Tavitac Bethel LLC to Bethel Garp LLC. Notes: A two-parcel, 157,500-squarefoot shopping center that includes a Safeway (soon to be Haggen), Starbucks and other businesses. Sold to a San Diego investment group. 4. Lowes, Silverdale Sale date: Sept. 29 Sale price: $13.8 million Sold by: Waco Silverdale LLC to Broadway Tenth Silverdale LLC. Notes: A 12.4-acre Silverdale parcel, with 220,000-square-foot building. Lowe’s has a long-term lease. 5. Kitsap Way Walgreens, Bremerton Sale date: Nov. 20 Sale price: $7.45 million Sold by: Barrett LLC to CIE Washington LLC.
Yet there’s actually a bigger lesson to be learned here: Don’t overreact to temporary developments. The recent decline in oil prices has certainly had an economic impact, but no one can predict how long these prices will stay low or what other factors may arise that would affect the financial markets. That’s why you can’t reconfigure your portfolio based on particular events, whatever they may be — oil price drops, interest-rate fluctuations, political squabbles at home, natural disasters in faraway lands, and so on. If you can keep from being overly influ-
Notes: One 1.45-acre parcel with 14,400-square-foot retail building. The adjacent Starbucks is on a separate parcel with a different owner. 6. Navy HR center, Silverdale Sale date: Oct. 6 Sale price: $7.1 million Sold by: Decade Investments LLC to Navy HR Center Office LLC Notes: Two parcels totaling 3.33 acres on Randall Way, just north of Target. The Navy has had a human resources center there for many years. 7. Olive Garden and Red Lobster, Silverdale Sale date: July 28 Sale price: $7.1 million Sold by: GMRI Inc. to ARCP/OG Silverdale WA LLC. Notes: Also on Randall Way. The county recently approved a subdivision dividing the 3.7-acre property into two parcels, one for each restaurant building.
enced by specific events, you may be able to gain at least two key benefits: First, by not making trades constantly in reaction to the headlines of the day, you can avoid piling up heavy fees and commissions —costs that can reduce the return rate on your investments. Second, you’ll find that if you aren’t always thinking about what’s going on in the world today, you can focus your investment efforts more intensely on where you want to be tomorrow. The most successful investors set longterm goals and don’t focus on factors they cannot control, such as oil prices, interest-
9. The Cottage at Cascades, Bremerton Sale date: March 31 Sale price: $3.3 million Sold by: Albright Aid Propco LLC to Health Care Reit Inc. Notes: A 39-unit East Bremerton assisted-living facility previously called Albright House. It was bought by Cascade Living Group of Bothell, which already owned the adjacent Ashley Gardens and The Willows communities. The name was changed to The Cottage. 10. ARCO & AMPM, Silverdale Way Sale date: Jan. 15 Sale price: $2.5 million Sold by: Cameron Enterprises Inc. to Revive Enterprise Inc. Notes: Gas station and minimart at the corner of Silverdale Way and Highway 308 (Keyport). 11. Marion Court Apartments, Bremerton Sale date: Oct. 13 Sale price: $2.5 million Sold by: Marion Court Associates to Marion Court Preservation LP Notes: Two-acre complex near Forest Ridge Park in West Bremerton. Includes HUD-subsidized units. see sales | 27
rate changes or other economic events. Instead, these investors make adjustments, as necessary, to accommodate changes in their goals as well as other changes, such as revisions in tax laws — but they basically stick to their same approach for the long term. So be aware of low oil prices, but don’t get so “pumped” about them that you sludge up your consistent investment strategy — because that strategy has the energy to keep you moving toward your important objectives.
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business openings
Sound Brewery going big with Poulsbo expansion New brewing facility will ramp up production to meet growing demand By Tim Kelly KPBJ editor The most popular beer from Poulsbo’s Sound Brewery is a strong Belgian-style ale called Monk’s Indiscretion. With a 10 percent ABV (alcohol by volume), it’s big and bold, rather like the expansion the brewery is undertaking. Owner and founder Mark Hood and his partners are assembling an entire new brewery in a former truck repair building on Viking Avenue, just across the street from the small business park where Sound Brewery’s production facility and taproom have been for four years. The new facility that will give Sound the capacity to produce 10 times as much beer will utilize a mash-filtration brewing system that’s not typically found at smallscale craft breweries. “We’re the first ones in Washington state to use this,” Hood said during an interview at Sound’s taproom. “It’s a fairly old technique for giant breweries, but it’s brand new, like two years old for small breweries. “It’s a completely different way to brew beer.” The closest brewery using a mash filter is Full Sail, one of the Northwest’s foundational craft breweries founded in 1987 in Hood River, Ore. Named Craft Brewer of the Year by Beverage World Magazine in 2014, employee-owned Full Sail produces about 120,000 barrels a year, vastly more than Sound’s current output of about 1,350 barrels. However, Hood said his small brewery will realize the same operational efficiencies of installing a mash filter, as Sound expands to keep up with growing demand. “This (current) system does seven barrels in about five hours,” Hood explained. “The new brewhouse will do 15 barrels in two hours. So in an eight-hour day, we can do four different beers, all 15 barrels, or we can do one big, giant 60-barrel batch” of one of Sound’s top-selling beers such as Humulo Nimbus Double IPA. That flexibility is especially helpful for a brewery like Sound that has a roster of a couple dozen beers, and likes to experiment with a variety of seasonal brews. “The other advantage is efficiency and being green,” Hood said of the mash filtration system. “This thing uses way less water, way less power, and it gets 98 percent extract out of the malt. Right now the best we can get is about 80, … so it’s extreme-
MEEGAN M. REID
Brewing kettles await installation after they were delivered in January to the site where Sound Brewery is expanding. The brewery bought the old Clark’s Clark’s Diesel Repair building (below) near its existing Poulsbo brewery for its new production facility. to-install system. The whole investment in the brewery expansion, including the $450,000 purchase
ly efficient.” And while Hood plans to add three employees in the brewery and one in sales, the new system’s efficiency also will significantly reduce the per-barrel labor cost of producing beer. (For a more technical explanation of mash filtration brewing, see the article on Full Sail in the March 2014 issue of Beverage World.) Sound’s mash filter was shipped from Belgium to Victoria, B.C., where a company called Specific Mechanical built the brewhouse — the kettles, piping and other components of the system. The Canadian company also built the brewhouse that Hood bought used four years ago to start Sound Brewery, and he said Specific Mechanical has provided exceptional support for the system even though Sound was not the original buyer. So when Hood decided he wanted a mash filtration system for the new brewery, he and head brewer Brad Ginn — an engineer who formerly worked for the city of Bremerton — collaborated with Specific Mechanical “to figure out what we could do to make this system ourselves,” Hood said. The result was a big savings over the $500,000 price to buy a complete, ready-
of the former Clark’s Diesel Repair property, is about $1.3 million, which is being see brewery | 18
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Foreclosure will force out Sk8Town, Tommy C’s By Tad Sooter KPBJ contributor More than 300 people crowded Tommy C’s sports grill Sunday to watch the Seattle Seahawks snatch victory from the Green Bay Packers in the NFC Championship Game. Like the Seahawks, Tommy C’s isn’t lacking for fans. But the popular Port Orchard restaurant will be shutting its doors soon anyway. The Bethel Centre property that houses Tommy C’s, Sk8Town and two smaller tenants was taken over by a bank in December. The bank has issued eviction notices to at least three tenants, who say they have until the end of February to close or relocate. Tommy C’s owner Tommy Cash is scrambling to find a space to move the business. He called the eviction notice “heartbreaking,” particularly for his 18 employees. “Our heart, soul, blood, sweat and tears are in this place,” he said. “To do no wrong
Tommy C’s general manager Brian Stutey takes lunch orders from regular customers Bruce and Sherry Beck at the Port Orchard restaurant. MEEGAN M. REID
and to have the rug pulled out from under us ... there’s some anger ... a lot of emotions.” Sk8Town, a roller rink and events center, will close Feb. 8. “I don’t have the energy to try to re-create this again,” owner Mark Baker said. Sk8Town was an epicenter for Kitsap’s roller derby scene, serving as home to the
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financed by an SBA loan through Liberty Bay Bank in Poulsbo. “They’re a local bank, and they’ve supported us from day one,” Hood said. “Without them this never would have happened.” It originally happened in Poulsbo and not Bremerton — where Hood lives and first looked for a location to start his brewery — because one of the founding directors of Liberty Bay Bank, Gary Anderson, became Sound Brewery’s landlord. “He’s really why we moved into Poulsbo; he worked with us on getting this going,” Hood said. Anderson — who’s no longer a bank director and retired last year as chief financial officer of Paladin Data Systems — said he owned a commercial building and faced a challenge finding someone to lease it when the economy was still grim several years ago. “Coincidentally, at the same time I was looking at a five-year refi on the property,” Anderson recalled. “I’ve been a CPA and an entrepreneur all my life, and I figured the only way to get that done was to help somebody get started in business.” He structured a five-year lease for Sound Brewery with free rent for an initial period, then gradually increasing payments. “The whole process there was trying to find a way for somebody to get started,” Anderson said, “and let them hang on to their capital to do what they need to do to
Northwest Derby Company league. Baker plans to give equipment from the building to derby teams in the hopes they can build their own rink somewhere else. As bad as the eviction was for his business, Baker said, “it’s a lot worse for the community.”
FORECLOSURE out of here,” Hood said of the taproom that has only 27 seats. “We sell 35 barrels a month through here.” That’s 70 kegs’ worth of beer, since a 15.5-gallon keg is called a half-barrel in brewery jargon. Taproom sales include beer to go, sold in kegs, growler fills or 2.5-gallon “party pigs.” Along with the MEEGAN M. REID brewery expansion, Hood’s also looking to open at least one more taproom. Washington allows three off-site taproom locations for each brewery, and Sound’s second one is likely to be in Seattle, where Hood is looking at sites in the Pioneer Square and South Lake Union areas. But he has a lot more than another taproom in mind for distributing all the beer Sound’s new brewery will produce. “There’s very few (Washington breweries) that really try aggressively to sell outside the state,” he said. “We’re one of them. We sell in the four western provinces in Canada,” as well as shipping a few dozen kegs a month to Japan. In Tokyo, Sound brews are found at pizzerias and other trendy spots that serve American craft beers. “We just had the biggest order we’ve ever had from Canada,” Hood said, and he expects shipments to Japan will soon increase to about 100 kegs a month. He’s also developing channels to ship to Europe. The big jump in sales and distribution, Sound Brewery owner Mark Hood takes a sip of beer in the existing brewery’s taproom. He has plans to open additional tasting rooms as part of Sound’s expansion.
get their business going.” Sound’s success that is fueling its expansion gives Anderson a lot of satisfaction. “As it turns out, Mark’s got some of the best beer we know of, so it’s going to do fine,” he said. “I’m very proud of all of that. That’s something that a person can feel good about; when you help a small business get going like that, it’s good for the community.” Even when Sound’s new facility is operational, hopefully by this summer, the existing brewery and taproom will remain part of the operation. Hood and his brew crew love to get creative and will use the original brewery for specialties like barrel-aged beers, and the taproom accounts for a significant portion of their draft beer sales. Sound’s revenue is derived about 50-50 from sales of bottles and kegs, although about 75 percent of the beer currently produced is for draft. “But out of that 75 percent that’s draft, believe it or not, 25 percent of it goes right
According to county documents, the 1501 Piperberry Way property was previously owned by P&H Properties LLC., whose managing member was Port Orchard attorney Darlene Piper. P&H used the property to secure a $1.5 million construction loan from Venture Bank of Lacey in 2005. State regulators shut Venture Bank in 2009 and its assets were assumed by First Citizens Bank & Trust Co. of North Carolina. Piper, formerly a South Kitsap lawyer and partner in the controversial Woods View development, filed for bankruptcy in 2010. In a comment to the Sun, Piper said she gave up ownership in P&H Properties in 2010. Secretary of State records show the most recent registered agent for the corporation was Tina Hughes of Bellevue. First Citizens Bank foreclosed on the 1501 Piperberry property last year, claiming P&H Properties was behind $160,0000 in loan payments. A trustee’s sale was held Dec. 5, seeking $1.58 million to cover the loan principal and other expenses. No buyer was found, and the bank took ownership. see foreclosure | 27
however, will be closer to home, where Sound’s domestic market currently extends only to Oregon and Idaho. “One of the biggest opportunities for growth outside the state is through the megachains — BevMo, Total Wine, Whole Foods, those kind of places,” he said. Those retailers already sell his beer in the Puget Sound area, and that’s important because the 22-ounce bottles of a premium beer like Monk’s Indiscretion that sell for $9 in stores have a much higher profit margin than kegs that bars and restaurants buy. Sound Brewery raised its industry profile when it was one of three Washington breweries invited last year to Savor, a prominent food/beer pairing event held annually in Washington, D.C. “When I was there, the head buyers for all Total Wine stores, and for Whole Foods and for BevMo all came up to me and said ‘when are we going to get your beer in California?’” Hood said. That’s the reason for the new brewery, and if it eventually produces its max capacity of 13,000-plus barrels a year, Sound could be the big dog on the peninsula. The combined production of all Kitsap breweries in 2013 was more than 11,000 barrels, according to a Kitsap Sun article last summer on the region’s thriving craft brew scene. Hood, who kept his job as a video game designer during Sound Brewery’s first two years in business, thinks a reachable goal would be to produce 4,000 barrels in the new brewery’s first full year of operation. “That’d be really nice,” he said. “It wouldn’t be that hard with the new system.”
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business openings
Lallie Mae’s Chalet owners Tammy Mahood, left, and her sister, Jody Grutzeck, center, are preparing to reopen their shop in a redecorated space on Bay Street in downtown Port Orchard, after they had to relocate from their previous location across the street when that site sold. Mercedes Baudrand, right, is moving her jewelry shop, That’s Beautiful, into the new Lallie Mae’s location. MEEGAN M. REID
Displaced shop owners find happy landing nearby By Tim Kelly KPBJ editor It might have been a pizza joint, if Jody Grutzeck and Tammy Mahood had their druthers. “We were trying to get our favorite pizza place, Toad House Pizza in Bremerton, to come over here” to Port Orchard, Grutzeck said. They had hoped to see a second location go in the Bay Street building that still has Shi Shi Ni (the name of the former Korean restaurant there) above the front door. Fortunately for the two sisters, that first-floor space at 632 Bay St. was still vacant when they got the upsetting news recently that their own business — Lallie Mae’s Chalet, a vintage-themed boutique just down the block next to the Port Orchard Public Market — was being forced out by the market owner. The Shi Shi Ni building — next to an empty lot where an old, fire-damaged building was razed in October — is owned by Dave Jeffcoat, a Kitsap Bank vice president and regional manager who works at the bank’s headquarters across the
street. He and his wife bought the building in 2013 and renovated the second-floor apartment, but they had not yet recruited a tenant for the former restaurant space. That’s why Grutzeck and Mahood were in there on a rainy January day, both wearing white painter’s hats as they put their creative color scheme on the art deco interior of Lallie Mae’s new home. They hope to have their relocated shop open by Valentine’s Day. “The timing was unbelievable,” Grutzeck said. She first met Jeffcoat — who was recently elected president of the Port Orchard Bay Street Association — when she was organizing a POBSA downtown beautification day in 2013. “I had had a ‘for lease’ sign up maybe a month or so,” when the displaced sisters inquired about the building, Jeffcoat said. “They knew I was looking for a restaurant to fill that spot, but I wasn’t set on anything. “We just started talking and worked out a deal. I thought they’d be a good fit for me; they’re nice gals and they run a really nice shop.” The sisters named their shop after their
grandmother, whose passion for discovering and collecting unique items inspired them. “We started out with our grandmother’s estate,” Mahood said. Theirs is not an antique store, but the inventory is a mix of old and new — shabby chic furniture, jewelry, apparel and accessories, artwork and other assorted treasures. They also carry organic teas, and locally made organic soaps. They’re also into the “upcycling” trend of repurposing or restoring items that might have been disposed of or recycled. “Pinterest gives you a lot of ideas for upcycling,” Mahood said. She adds that “we started doing it before we even knew about Pinterest; just trying to come up with unique and different ideas.” Their first sales venture was at New 2 You, a Port Orchard store where scores of vendors have spaces for displaying and selling their wares. “We’re still at New 2 You, actually,” Grutzeck said. “I started with a shelf there and it just grew and grew.” Mahood said they were up to four booths there before scaling back when they opened their first storefront location. Their shop had been at 713 Bay St. for three years in a building owned by Gabrielle Freeland, who opened a bakery next door last year but sold her business after a few months. Freeland recently sold the 713 Bay St. building to Mansour Samadpour, the absentee owner of a lot of downtown property, including the bakery building
and the Port Orchard Public Market that opened last year. Grutzeck and Mahood got word in early November that they’d have to pack up and be out within a month (though that was later extended to the end of December), even though they had a lease with Freeland that wasn’t up for renewal for a few more months. “We were told, with not much notice, that we would have to be moving out because the building was selling to Mansour,” Grutzeck said, “and that in six months, remodeling was taking place in that building and we would have to be out of there ultimately anyway.” Freeland said she declined previous offers from Mansour to buy her building, but changed her mind and sold it for $380,000 because she and her husband, Jay Freeland, needed money for a Port Orchard housing project he is developing. Grutzeck and Mahood were “very good renters,” but Freeland said she had an ongoing agreement with them and not a signed lease. She acknowledged that the future remodeling plans would have required the Lallie Mae’s owners to relocate, though Freeland maintains they were not kicked out, but rather chose not to accept Mansour’s month-to-month lease offer. The remodeling there might be to prepare the site for a future revival of the 110 Lounge, a nearby bar owned by Don Ryan that closed in January. Ryan, who was POBSA president when he was developing the public market, is Mansour’s property manager and also owns a restaurant/ bar and a meat shop in the market. Regardless of what happens in their former location that they didn’t want to leave, the Lallie Mae’s co-owners are moving on with the proverbial “When life gives you lemons, make lemonade” approach. “It’s kind of sad to move out, because we really loved that building,” Mahood says. Then she adds with a laugh, “But we love this one. “It’s really nice; it’s going to be beautiful when it’s all painted.” The sisters said they’ll have “lots of surprises” to add at the store as they get going in their new location. The former restaurant’s kitchen is intact, and they hinted that they may utilize that in the future. They’re also bringing in a new partner, Mercedes Baudrand, who owns a jewelry and accessories shop called That’s Beautiful at the other end of the downtown stretch of Bay Street. She will move her shop and share space with Lallie Mae’s. “We’ve been talking for a couple years about combining,” Grutzeck said. “We’re really good friends, and we want to help each other out.” The sudden unplanned move has been stressful, but that’s been eased by finding a place to land and a welcoming landlord. “We got really blessed out of it, too. We got this building,” Grutzeck said. “It was very fortunate because there was no other building the size that we needed. We could downsize, but now we’ve kind of upsized a little bit.”
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human resources | julie tappero
Hiring criteria should be based only on clearly defined duties
A
s professionals in the staffing industry, our clients occasionally want to hire based on non-work-related criteria. They will ask us questions such as, “Is it legal for me to hire only nonsmokers? Can I only hire men for this position, since it involves heavy lifting? Is it okay for me to request someone younger for this job?” When establishing criteria for a job, it is important to first review the essential functions of the position. This helps to define the kind of applicant that you are seeking. As employers, it is essential that we create job descriptions for the positions that we are filling. If we don’t clearly define the duties for the job and what tasks the employee will be performing, how will we ever manage to hire the right person to fill that role? Many times, employers will call us and say, “I need a receptionist.” When we ask what the receptionist will be doing, the response is, “Answering the phone.” The reality is that a receptionist does much more than that, and if the person is actually capable of nothing more than answering phones, he or she will fail miserably. Let’s specifically address questions about non-work-related criteria. Nonsmokers are not in a protected class in Washington state, as they are in some other states. Thus, it is legal to make nonsmoking a requirement for employment in your company. However, with a tightening labor market, enforcing this requirement also means making your labor pool that much smaller — so keep that in mind. Alternatives to this might be requiring your employees to not smoke during work hours, on work property or in companyowned vehicles.
When making hiring decisions, it is important to always keep in mind protected classes. You may never discriminate based on age (over 40), race, color, sex, religion or national origin. You also may not discriminate against a qualified individual with a disability, or based on their military service. In Washington, we also prohibit discrimination based on marital status, pregnancy, sexual orientation (which includes gender identity), for use of a service animal, or based on HIV/AIDS and Hepatitis C status. Take the examples above. You may have a manufacturing environment that involves heavy lifting of product components. This lifting is an essential job function. However, don’t assume that only men can do heavy lifting! Women that are able to lift the weight requirement must be considered for the position, and will bring a great diversity to your workplace. You also cannot assume that a pregnant woman cannot lift, as that constitutes discrimination as well. We will occasionally have requests for younger workers for positions. These requests often make us smile, since our recruiters tend to be a more mature group ourselves. When we ask why a younger worker is preferred, the answer is often that the employer wants someone with good computer skills, an adaptable attitude, and the ability to manage multiple tasks in a rapidly changing environment. We present candidates based only on the essential job requirements, and more often than not, it is the experienced, mature worker who will get the job. Conversely, sometimes employers specifically don’t want to hire young women, fearing that they will get pregnant, or that they will need to take time off to care for their young children. The general misconception is that this is not discrimination, because age discrimination applies only to
people over 45. Although true, this is actually an issue of gender discrimination. In Washington, you may never discriminate against anyone who is pregnant. Also, you may never discriminate against anyone based on their gender. The days of only mothers taking time off to care for their children are long past. Today, fathers are often the caregivers as well. Besides, many of us in the baby boomer generation are finding ourselves forced to take time off to care for our ailing parents. So employers cannot assume that it is only young people who will need flexibility to care for others. The solution is to be clear about your company’s attendance and discipline policies, and to hire the best qualified person for the job. While the law prohibits discrimination based on military service, some Kitsap employers occasionally discriminate against military spouses. In my book, this is another big mistake. The fear is that these employees will not stay with the employer for a length of time. My experience with military spouses has been great! The ones I have employed have been well educated, experienced, talented, motivated and dedicated (I’m fortunate to have a great one working for me right now.) They will often stay until they’re transferred, as they know that finding another good position is harder for them to do. Don’t overlook this great resource in our community. Many of our clients establish policies to perform criminal checks, pre-employment drug tests and credit checks. These policies are not illegal or discriminatory,
as long as they are applied evenly across the board. For example, if you are going to require pre-employment drug tests, you must do it for all applicants you are considering for the job, not just those of a certain race or gender. In Washington, the law requires employee credit checks to be substantially related to the employee’s job. We, as employers, cannot routinely require credit checks on all of our employees, regardless of the job that they do, as our government believes this violates employees’ rights to privacy. However, you may decide that it does relate to your bookkeeper’s job, if the bookkeeper is handling the company’s finances. You may decide that someone with a bad credit history is a poor risk in your bookkeeping position, and the same may be true of a convicted felon. Recruiting and retaining good employees is the number-one issue for most employers. As we watch the labor pool shrink once again, it’s clear to all of us that we need to be thoughtful about our hiring needs. Finding employees with the necessary skills, aptitude and attitude is a lot more important than finding employees that meet our preconceived ideas of the best fit. • Julie Tappero is president and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor. She can be reached at julie@westsoundworkforce. com.
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SAFE Boats extends lease on Port of Bremerton site By Tad Sooter KPBJ contributor SAFE Boats International is staying put. The manufacturer of defense and law enforcement boats will finalize new leases for its Port of Bremerton properties this month, laying to rest speculation it would consolidate operations in Tacoma. The new lease agreements will likely include a two-year commitment, with the option for four one-year extensions. The agreements will come before the port commission for formal approval soon. SAFE Boat’s existing leases were set to expire in June. The company employs 188 workers at its facilities in Olympic View Industrial Park, across Highway 3 from Bremerton National Airport. CEO Dennis Morris said the desire to stay close to the company’s established workforce played a big role in the decision to maintain its homebase in Kitsap County. “We have longtime employees here, and they want to stay here,” Morris said. The new lease is a victory for the Port of Bremerton. SAFE Boats is the port’s largest industrial tenant. “I think it’s very significant,” port commission President Roger Zabinski said. “It shows we’re able to keep our major tenants.” TWO CAMPUSES SAFE Boats builds its smaller vessels in Bremerton.
by trailer to Sinclair Inlet for trials. In Tacoma, SAFE has easy access to a boat lift and ramp for launching. Morris said moving small boat construction to Tacoma was a very real consideration. Consolidation would have helped the company reduce costs. But uprooting its headquarters from Bremerton after 15 years would have been a disruptive and unpopular move within the company. Morris said the announcement of the Bremerton lease renewal was met with applause from employees. “No one likes uncertainty,” he said. The Port of Bremerton made concessions to keep its flagship tenant in town. The starting base rent is less than SAFE Boats had been paying, but it will step up in SEE SAFE BOATS | 32 MEEGAN M. REID
SAFE Boats International Chief Executive Officer Dennis Morris talks about the company’s latest boat designs. They range from 25-foot response boats tailored for law enforcement, to 65-foot, jet-driven boats being built for the Tunisian Navy. The company added a waterfront location at the Port of Tacoma in 2012 to begin work on a series of Mark VI fast patrol boats for the Navy. The 78-foot Mark VI boats were too big to be constructed in SAFE’s Bremerton warehouses. About 100 employees work in the Tacoma plant. Along with size, the Tacoma property offered another big advantage: water access. SAFE Boat’s Bremerton properties are landlocked, meaning it has to take its boats
Home prices barely changed in 2014 By Tad Sooter KPBJ contributor
KITSAP REAL ESTATE ROUNDUP Kitsap's real estate market in 2014 was marked by increased sales a low inventory of available homes and only small price fluxuations. Total closed sales 2012 2013 2014 2,855 3,542 3,850 Average active listings 2012 2013 2014 1,465 1,387 1,263
Kitsap median prices Single family home Condominium $242,000 $190,000 Up 0.53% Up 20.3% from 2013 from 2013
Bainbridge Island Finn Hill Chico Silverdale Poulsbo Lofall S. Kitsap East Kingston Hansville Seabeck Holly S. Kitsap West Indianola CK East Retsil Manchester Suquamish Port Orchard Port Gamble East Bremerton West Bremerton
Kitsap County’s real estate market seemed to defy basic laws of economics in 2014. Sales were up by a wide margin from 2013. The inventory of homes on the market continued to fall. Prices? They hardly budged overall in the county. “It’s flying in the face of supply and demand,” said Frank Leach, with ReMax Platinum Services in Silverdale. Aside from an acutely low inventory, real estate professionals said they were encouraged by the market in 2014. Mike Eliason, CEO of the Kitsap County Association of Realtors, points to the incremental price increases as a sign Kitsap’s economy is recovering at a responsible pace. “We want a stable marketplace, with slow and steady growth,” Eliason said. “The dramatic price increases don’t help anybody.”
SALES SURGING
Median price change Median Price 2013* Median Price 2014* *Combined houses and condos
0
$100
Source: Northwest Multiple Listing Service
$200
$300
$400
$500
$600
(thousands) SCRIPPS NEWSPAPERS
Plenty of homebuyers were on the hunt in Kitsap in 2014. The county saw a nearly 9 percent increase from 2013 in the number of sales closed, according to data released last week by the Northwest Multiple Listing Service. The 3,850 houses and condominiums sold in Kitsap last year totaled more than $1 billion. Sales were distributed fairly evenly geographically, with none of the 19 Kitsap submarkets tracked by NWMLS reporting a major falloff. Activity also was consistent across various price ranges, according to Eliason. He attributed the surge in sales to increased confidence on the part of buyers, job growth across the region and low interest rates for mortgages. Sales in Kitsap County followed the typical seasonal SEE HOUSING | 27
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trends last year, peaking in early summer and declining through the fall and winter. But 2014 finished especially strong. Pending sales recorded in December were 20 percent higher than at the same time in 2013. Carli Ryen, of Mike & Sandi Nelson Real Estate in Poulsbo, said her independent firm had eight homes sell last month. “That was big for us, that was really exciting,” she said. “I think we’ll have a good January as well.”
SMALLER SELECTION
The number of available homes in Kitsap County has fallen steadily for several years. But the shortage was exacerbated in 2014 as sales climbed. There were an average of 1,260 homes for sale in the county last year, down about 9 percent from 2013. The stockpile sales | f rom 14
12. Creekside Office Park, Silverdale Sale date: Aug. 27 Sale price: $2.4 million Sold by: Silverdale Creekside II LLC ET to Kitsap Crest LLC. Notes: A 1.5-acre parcel with offices off Bucklin Hill Road at the head of Dyes Inlet. 13. Dollar Tree, Bremerton Sale date: Nov. 24 Sale price: $2.25 million Sold by: Pep Boys to Patriot Equity Partners LLC. Notes: Two-acre property with Dollar Tree off Highway 303. 14. Harborview Plaza, Kingston Sale date: Oct. 15 Sale price: $2.2 million Sold by: Ohio Ave Partners LLC. to DSR Enterprises LLC.
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A call to First Citizen’s corporate headquarters was not immediately returned. According to assessor’s documents, First Citizens also owns a property at 1521 Piperberry Way, which the former owner handed over to avoid foreclosure. The bank filed a lawsuit seeking to foreclose on 1541 Piperberry last year.
FALLOUT
Tenants of the 1501 Piperberry Way property say they were aware of the fore-
FEBRUARY 2015 | 27 dwindled to fewer than 900 in December, very low even for the winter season. What’s more surprising, Leach said, is the inventory continued to fall even as a bevy of newly constructed homes hit the market. Nearly 400 newly built homes sold last year, fetching a median price of $279,000. The inventory didn’t keep up with demand, particularly late in the year. The months supply of homes — the number of months it would take to sell off the available inventory if no more homes were listed — averaged 3.9 months in 2014, but ended December at 2.8. A balanced market (a market that doesn’t unduly advantage a buyers or sellers) typically has a supply of between three to six months. Low supply meant stiff competition among buyers for good quality houses. “The homes in really great shape, that are desirable and well priced, are going to go quickly,” Leach said.
Notes: Mixed-use property at the corner of Ohio Avenue and Highway 104, near the ferry terminal. Includes Mora Iced Creamery and a mix of offices. 15. Evergreen Pointe, Bremerton Sale date: April 22 Sale price: $2.2 million Sold by: Park Place Development LLC. to Clearview Sheldon LLC. Notes: Eight parcels off Sheldon Boulevard in Bremerton, across from Evergreen Park. Developers hope to build 104 apartment units and commercial space on the property. 16. Mile Hill Taco Bell, Port Orchard Sale date: June 9 Sale price: $1.95 million Sold by: Mile Hill Investors LLC to Convey Investments California LLC. Notes: Less than an acre with a Taco Bell off Mile Hill Drive east of Olney Avenue. (The Taco Bell property off Kitsap Way also changed hands last
closure sale but blindsided by the eviction notices that followed. Helen Kestle, owner of the Fab U Look spa on the ground floor, said she plans to close at the end of January. She’s looking for a new location in Port Orchard or Silverdale. She’ll be sad to leave her space in Bethel Centre. “It’s a beautiful place,” she said. An Avada Hearing Care office also leases space in the building. An employee said she couldn’t comment without hearing from the company’s corporate office. Baker and Cash said they were sur-
GRADUAL PRICE CHANGE
ing to look at home prices for the county as a whole. Kitsap contains a diverse collection of smaller markets, each with its own variables. About half of the areas tracked by NWMLS in Kitsap recorded price increases in 2014, while others saw modest declines. Booming Bainbridge Island notched a Seattle-esque 10 percent leap in its median home price last year, condominiums included. Wilson expects prices gains to accelerate in 2014, with inventory still lagging and sales remaining strong. In the fast-paced market, he said, buyers and sellers both have to be well prepared. Sellers need to make sure their houses are well prepped for showing. Buyers should talk to lenders well in advance of househunting as loans remain a hassle to get approved. “You really need to do your homework,” Wilson said.
year, but didn’t quite make our list.)
Notes: Fifteen undeveloped parcels, totaling about 14 acres, east of the airport in the industrial area formerly known as SKIA. The land is on Pirates Cove Avenue, which extends south off Old Clifton Road. Appears to be within Bremerton’s meandering city limits. Vosk Spirits’ ownership is in Port Orchard.
It stands to reason high demand and a small supply of homes would set the stage for big price jumps in Kitsap. That scenario played out elsewhere around Puget Sound, where several counties recorded median price gains well over 6 percent in 2014. Kitsap’s market bucked that trend. The median price of a single-family house in the county was $242,000, up about 0.5 percent from 2013. Add condominium sales to that total and the year-to-year change was essentially negligible. Real estate professionals point to a few potential reasons for the incremental price changes. Bank-owned homes and short sales still are trickling through the market. Eliason said a delay of up to 18 months between price trends in the frenetic Seattle-area market and Kitsap County isn’t unusual. Frank Wilson, managing broker at John L. Scott in Poulsbo, said it also is mislead-
17. ARCO & AM/PM, East Bremerton Sale date: Jan. 15 Sale price: $1.76 million Sold by: Cameron Enterprises Inc. to Aman & Ankit Inc. Notes: Another ARCO-AM/PM pairing sold by Cameron Enterprises, this one at the corner of Fairgrounds Road and Highway 303. 18. Hi Joy Bowl, Port Orchard Sale date: Dec. 15 Sale price: $1.6 million Sold by: TTMJ LLC to TTKJ LLC. Notes: The Port Orchard bowling alley appears to have changed hands within the Myers family, which also owns All Star in Silverdale. 19. Pirates Cove SKIA, South Kitsap Sale date: Nov. 19 Sale price: $1.36 million Sold by: Paul and Mary Schmidt to Vosk Spirits Inc. prised First Citizens would want to empty the building of its steady tenants. Each said they tried to negotiate for more time but found the bank wouldn’t budge. The closure of Sk8Town will displace the Northwest Derby Company. The league is scouring the county for a warehouse to practice and hold bouts in. Its competitive season starts next month. “This is terrible timing for us,” derby coordinator Aimee “Brawlyanna” Durgan said. Cash also is on the hunt for a location. He wants to find space both for Tommy
20. Day Road industrial, Bainbridge Island Sale date: Aug. 7 Sale price: $1.3 million Sold by: 8040 Northeast Day Roast LLC to Makh Properties LLC. Notes: This 1-acre Day Road warehouse property had the good fortune of being located in the tiny chunk of the island where the city is allowing recreational marijuana businesses. The buyers are marketing the warehouse as a recreational marijuana growing and retail facility.
C’s and a microbrewery he was close to opening in Port Orchard. He launched a fundraiser on gofundme.com to help offset the cost of the sudden relocation. While trying to relocate, Cash plans to keep Tommy C’s open in Bethel Centre for as long as he can. “Until the sheriff shows up at the door to lock it,” he said. • Tad Sooter is a business reporter for the Kitsap Sun and contributes articles for the Kitsap Peninsula Business Journal.
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business Briefs WWU hosts info sessions on Business Administration degree program at OC Western Washington University will host information sessions at Olympic College’s Bremerton and Poulsbo campuses about WWU’s Poulsbo-based bachelor’s degree program in Business Administration. Olympic College students, community members and local businesses are invited to attend to learn more about the program and meet the new academic program director, Mary Sass. The information session schedule is as follows: • 9 a.m. on Monday, Feb. 9 at Olympic College Poulsbo, Room 119 • 1 p.m. on Tuesday, Feb. 10 at Olympic College Bremerton, Room BUS 0200 • 6 p.m. on Wednesday, Feb. 11 at Olympic College Poulsbo, Room 220 Session attendees will have an opportunity to learn about benefits of the degree, course requirements for admission, how to apply for the program, tips and deadlines, financial aid resources and career services. The priority application deadline for the fall 2015 program is April 15. Applications received after that date will be accepted on a space-available basis. Offered through Western’s College of Business and Economics, the program is designed to prepare students for leadership roles in business and the community. A bachelor’s degree in Business Administration is beneficial for students with a variety of career goals, including opportunities with financial institutions, manufacturing and retail firms, service industries and the public sector. Western Washington University Center at Olympic College in Poulsbo is a collaboration between Olympic College and WWU. For more information, visit wwu. edu/Poulsbo, email Western.Peninsulas@wwu.edu or call 360-394-2733.
Free Wi-Fi now available in downtown Bainbridge The Bainbridge Island Chamber of Commerce announced that free Wi-Fi is now available in the community’s downtown area, provide throug a partnership with Kitsap Public Utility District. Several years ago, the chamber approached KPUD about how to provide free Wi-Fi internet access to business-
es, residents and visitors to downtown Winslow. KPUD analyzed the possibilities and began the search for a technology partner to help them install the necessary equipment. The first iteration of the program ran into technology challenges due to the exponential increase in the kinds of receiving devices, which moved from personal computers to mobile devices of many kinds. KPUD chose to work with a new technology partner, Mobilisa, which came into the program with newer technology and began the process of installing necessary equipment to make the program a reality. The result of this work is the bringing on line of “Community Wi-Fi.” This is the Wi-Fi address to use for free Internet access on a computer, smartphone or tablet. The signal is available to businesses along Madison from the Pavilion to Bjune and along Winslow Way from the Winslow Green to the police station at Highway 305. The complete map of signal coverage is available on the chamber website. The public signal is free, however it is not secure. Users are advised not to transmit any personal information or financial transactions using the free Wi-Fi signal. In the coming months the chamber will be working with members to advise them how to make use of this new technology.
KEDA director selected for Washington Military Alliance leadership team OLYMPIA – The Washington Military Alliance (WMA) named four members to serve as its executive leadership team while the organization moves forward as a chartered public-private partnership formed to provide a single voice representing the state’s interests as the U.S. Department of Defense proceeds with spending cuts and potential military base downsizing. The leadership team members are Rich Hadley, representing the Association of Washington Business; Tiffany Speir, South Sound Military and Communities Partnership; Gary Brackett, TacomaPierce County Chamber of Commerce; and John Powers, Kitsap Economic Development Alliance executive director. The leadership team was selected to represent each of the WMA’s four focus areas: industry, infrastructure, military community advocacy organizations, and economic Associate Development Organizations (ADOs), respectively.
WSU Kitsap Extension offers ag entrepreneurship classes The WSU Kitsap County Extension is offering new classes this year for local residents. Here is a list of classes, and how to register. • Ag Entrepreneurship & Business Planning — Wednesdays, Jan. 28 through April 22, 6:30-9 p.m. at the Norm Dicks Government Center in Bremerton. Extension educators, successful farmers and agricultural business professionals will discuss how to: • create a plan for your business • brand and market products • manage your risk • apply for government programs Register online at Brown Paper Tickets: http://www.brownpapertickets.com/ event/1168929. For more information, contact Diane Fish dfish@wsu.edu. • Women in Agriculture Conference — Feb. 21, 8:30 a.m. to 4 p.m. This will be a multiple-site conference that offers women in Washington, Oregon, Idaho and Alaska a unique opportunity to gather for a one-day event, at an easily accessible location. Registration fee is $30, but there is a $25 early bird special until Feb. 13. The event includes a light breakfast, lunch, handouts and tools you can use. Scholarships are available for aspiring farmers and students. For event information including locations, registration and agenda, visit: Womeninag.wsu.edu. The Kitsap Community Agriculture Alliance has created a scholarship fund to pay the registration for seven participants to attend this conference. Please contact Laura Ryser at laura.ryser@wsu.edu or 360337-7281 if you are interested in the scholarship. • Organic Gardening Vegetable Course — Feb. 28 and March 7, 21 and 28, from 9 a.m. to 3 p.m. at the Norm “Washington’s military and defense industry represents some $16 billion to our state’s economy and tens of thousands of jobs. I applaud the leaders and members of our Washington Military Alliance for stepping up to promote and protect this vitally important sector,” Gov. Jay Inslee said. “I’m confident that this is a power-
Dicks Government Center in Bremerton. Cost: $150 for all four classes (includes class materials, Maritime Gardening Guide and resource guides) or $45 each class individually. Master Gardener rate is $100 for all four classes. Register online at https://ocrs.wsu.edu/ Signup/?eventid=949. For more information, email kitsapvegclass@gmail.com or call 360-3377157. • Stream Stewards — Fridays, Jan. 23 through Feb. 27 at Island Lake John Horsley Center in Poulsbo. Cost: $45. Stream Stewards is for people who want to learn about and protect natural resources. In addition to the training, the program also provides opportunities to volunteer in activities around Kitsap County, including tree planting, streamside restoration, stream sampling and teaching others about watersheds, wetlands, streams and salmon. • Beach Naturalist Training — Thursdays, April 9 through May 14, 6-8 p.m. at Poulsbo Marine Science Center. Cost: $65 ($60 if registered by March 18). Beach Naturalists is for people who want to discover and explore shorelines and sea life. In addition to the training, the program also provides opportunities to volunteer in activities around Kitsap County, including acting as a naturalist for community beach explorations and children’s field trips, conducting beach profiles, sea star monitoring, and outreach at local events. Register online at http://www.brownpapertickets.com/event/935697. For more information, contact Lisa Rillie at lrillie@co.kitsap.wa.us or 360-337-7157, ext. 3244.
ful, effective public-private partnership to forge a successful path forward for every community that relies on our military assets.” Convened in 2012 and formalized through a Memorandum of Understanding by Inslee in September 2014, WMA is see business briefs | 30
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a consortium of some 20 organizations with an economic or workforce interest in the state’s defense community. One of the first major accomplishments of this stakeholder group was a joint effort to secure a $4.3 million Defense Department Office of Economic Adjustment (OEA) grant to help assess and forecast statewide economic impact of Washington’s defense industry, and plan local assistance for potential defense industry adjustments. Over the next six months, the WMA will draft bylaws, identify a sustainable organizational structure, and reach out to additional community stakeholders. The interim executive team was elected to serve until a permanent leadership team is selected through an approved bylaw process. The group also appointed a committee of members to advise the Washington State Department of Commerce on activities related to the OEA grant. Find more information at www.wamilitaryalliance.org.
Virginia Mason offers urgent care at Bainbridge Island center Bainbridge Islanders who need urgent medical attention have plenty of options. Virginia Mason began offering urgent care Jan. 26 at its Winslow Way medical center, becoming the third medical group stor m water | f rom 5
in storm drains and, for the most part, flow untreated into our precious streams, rivers, lakes, and oceans.” A growing awareness of the problem is spurring more work on finding solutions, and Buzz Holmes and Ken Perry, principals in Pure Stormwater, are developing a line of storm drain filtration basins they think will be highly effective. Holmes, owner of industrial construction company Holmes Mechanical in Silverdale, said Pure Stormwater has done a lot of research on filtration and is in the process of applying for patents on the components in its products. “Most of your catch basins (for stormwater runoff) don’t typically have any filtration in them,” he said. “The focus is to put filtration in, and catch as much of the nasty stuff as you can. “It’s really simple, honestly; it’s not rocket science.” The Pure Stormwater venture (housed at Holmes Mechanical’s Silverdale headquarters) is sort of version 2.0 for Holmes and Perry, who were partnering a year ago with a California-based company called Safe Drain International. However, Perry said they ended the partnership because he and Holmes wanted to develop and market a product that emphasizes filtration, rather than the Safe Drain prod-
to offer the service on the island. The Doctors Clinic provides daytime urgent care at its Hildebrand Lane location. Harrison Medical Center recently opened a 24-hour clinic off Madison Avenue. Andrew Baylor, director of Virginia Mason Bainbridge Island Medical Center, said urgent care was added in response to requests from patients, rather than increased competition. Staff at the Bainbridge center had been preparing for the change for months, he said. “Our patients have told us they want to access health care in different ways,” Baylor said. “One of those ways is urgent care.” The urgent care service on Bainbridge is a first for Virginia Mason. The Seattlebased nonprofit group plans to expand urgent care this year, beginning with Federal Way. Virginia Mason Bainbridge Island was accepting walk-in patients who needed quick treatment of minor injuries and illnesses. The rollout of urgent care formalized that practice, Baylor said. Virginia Mason added staff and expanded hours at the Winslow center to accommodate more walk-in patients. Urgent care is now available 8 a.m. to 8 p.m. weekdays, and 8 a.m. to 6 p.m. Saturdays and Sundays. Virginia Mason has offered services on the island since absorbing the former Winslow Clinic in 1995. Its Bainbridge Island Medical Center provides primary and specialty care, as well as medical imaging.
The Doctors Clinic expanded to Bainbridge in 2007, opening in the High School Road commercial corridor. Harrison Medical Center opened its clinic in December near the Highway 305-Madison Avenue intersection. For information about Virginia Mason urgent care, go to www.virginiamason. org/Urgent-Care. or call 206-341-0001.
uct that’s primarily a spill-containment measure. “We know there’s a market need, and we’re rapidly developing new filtration and moving forward,” Holmes said. They aren’t disclosing specifics about Pure Stormwater’s interceptor mechanism until they are farther along in the patent process. But the essential design uses a mix of textiles and natural fibers in filters inside stainless steel catch basins that will be installed in storm drains. They believe their product will be highly effective at filtering runoff — from parking lots, manufacturing plants, fuel storage sites — to remove hydrocarbons, metals and other contaminants before stormwater runoff flows out into local streams or Puget Sound bays. Holmes and Perry said installing filters where runoff enters individual storm drains, rather than where a large network of drains empties into an outflow pipe and the water volume is much higher, results in more efficient removal of contaminants. “Basically what you’re doing is (filtering out) higher levels of contamination into a manageable piece that you can remove so it doesn’t go downstream,” Perry said. Moreover, Perry and Holmes anticipate a product like theirs will be in high demand as EPA establishes benchmarks for National Pollutant Discharge Elimination
System (NPDES) permits, and EPA and the state Department of Ecology implement laws and regulations for controlling water pollution. “We think that we’ll have a huge advantage in a huge potential market,” Perry said.
offer memberships for $9.99 a month and a $1 joining fee, with no long-term contracts. Sign-ups are available online at www.FitEvo.com.
New fitness center under construction in Bremerton opens temporary setup Fitness Evolution, which plans to open a new facility this spring in East Bremerton, has opened a temporary exercise center and is offering a special introductory rate on memberships. The new 23,000-square-foot fitness center at 4220 Wheaton Way will be in the former Albertson’s building on the longvacant big-box complex south of Riddell Road, which also once had Lowe’s and Rite Aid as tenants. Fitness Evolution’s temporary setup with an array of cardio machines has been installed in the front of the former Rite Aid space adjacent to the new center. The Bremerton location will be the fifth in the Puget Sound area for Marylandbased Fitness Evolution, which has more than 50 locations in several states and markets them as affordable clubs with upscale amenities. Mailers sent out in the Bremerton area
Larry Steagall
Taylor Williams and others work out on cardio machines at the temporary site of the new Fitness Evolution at the former Rite Aid on Wheaton way in East Bremerton. Williams is a customer service rep at the fitness center.
“We think this is going to be the norm,” as state and federal regulations spur a drive for accountability that he calls “the evolution of stormwater.” “I think the federal government and the state are very open-minded to new technologies right now,” he added.
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technology | charles keating
often see them as a local or regional economic stimulus plan, allowing software developers and entrepreneurs in cities ranging from San Francisco to South Bend, Indiana, to New York to build new businesses based on the information they get from government websites. Seeing this opportunity, an Obama administration directive in December 2009 Why? set forth policy to support transparent There are many initiatives that seek to government — intended to make federal, place open data in the hands of citizens state and local data accessible. Since then, and entrepreneurs in consistent, machinesome 175 federal agencies — including the readable formats. The Defense and Justice debenefits of open data and partments — have postFusing the two transparency are uniqueed more than 88,000 da— open data and ly visible within the entreta sets on www.data.gov, preneurial world. It’s what the federal government’s entrepreneurship fuels innovation by makopen-data site. More than ing it easier for visionaries 43 cities have followed — will result in to create new tools, apps, suit. Since 2010, the city more positive, projects and programs, all of Seattle has put more of which can be geared tothan 200 data sets online, impactful results. including crime rates, 911 ward boosting economic climate and improving calls and the precise locaoverall quality of life. tions of bicycle racks. With this in mind, fusing the two — open data and entrepreneurship — will Sparking the Dialogue result in more positive, impactful results. On Feb. 18, West Sound Technology The better question then becomes “Why is hosting a luncheon briefing at Norm Not?” Dicks Conference Center in Bremerton More cities are putting information on with a panel of open/big data experts. everything from street-cleaning schedules Participants include Deep Dhillon, chief to police-response times and restaurant technology officer of Socrata, the world inspection reports in the public domain, in leader in cloud solutions for open data the hope that current and potential busiand data-driven governments. He will be ness owners will find a way to make money joined by Wilford Saunders Jr., senior prooff the data. Supporters of such programs gram manager of open data for the state
Open data — a ripe entrepreneurial opportunity These are exciting times; an open data revolution. What that means — and why any non-technical person should care — becomes an excellent question.
What is Open Data?
Open data is the sharing of public data sets to create new values. Governments are literally awash in data, the result of automation efforts by government agencies at all levels over the past 20 years. These agencies are the keepers of public trust, but we are essentially the owners of this data resource. Everything from building data, bus schedules and 911 response times are stored in databases, many of which have only been previously accessible via slow, manual open records request procedures that are often cumbersome, labor-intensive and very expensive to fulfill. Automated systems have the ability to transform cities and counties, to identify issues and target resources that might just save our cities.
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successive years. The deal also gives SAFE flexibility to downsize if necessary. SAFE Boats leases three buildings and a 3.5-acre parcel of land from the port. Its total rent under the expiring lease was about $40,000 a month. Morris gave the port credit for accommodating SAFE Boat’s needs. “We’ve had a great relationship with the Port of Bremerton,” he said. LOCAL SUCCESS STORY SAFE Boats needed only a portion of its Bremerton warehouse when it first leased space from the port. The largest boats it was building were 29 feet long. “We literally had a tape line on the floor,” co-founder and Chairman Scott Peterson said during a tour of the bustling plant Thursday. “The rest of it was empty.” Today, the 8,800-square-foot manufacturing plant is overflowing. Added focus on security following the 9/11 terrorist attacks helped buoy business for SAFE Boats, which supplied vessels to the Coast Guard, Customs and other federal agencies. Its boats, known for signature wraparound flotation collars, became ubiquitous around U.S. ports. SAFE now ships boats to navies and security forces around the globe. Colombia and Mexico have been big clients lately, as has Israel. SAFE builds its boats from scratch in Bremerton. Sheets of aluminum roll in
through one end of the building, where it’s cut and bent into myriad shapes. Welders assemble the hulls and cabins. The boats are outfitted with motors, seats, electronics arrays and flotation collars before rolling out of the yard. The company got creative to accommodate bigger vessels at the Bremerton facility. Boats like the 65-footers ordered by Tunisia were assembled in temporary hangars outside the main plant. Demand for small boats ebbs and flow. SAFE Boats laid off more than 15 employees a year ago and shifted some staff to Tacoma, measures Morris attributed to shifting contracts. The company is now hiring again, he said. While considering a move to Tacoma, SAFE Boats also eyed consolidation in Kitsap. Kitsap Economic Development Alliance helped scour the county for an industrial waterfront site with space for small and large boat manufacturing. The search didn’t turn up any ready solution. “That’s a tough piece of property to find,” KEDA executive director John Powers said. Powers said it’s encouraging to know SAFE Boats is keeping its roots firmly planted in Bremerton. “I think they’re strong and growing in both locations,” Powers said. “But I’m really pleased they’re recommitting to their headquarters and their core product.” • Tad Sooter is a busienss reporter for the Kitsap Sun and contributes articles for the Kitsap Peninsula Business Journal.
of Washington, and Bud Harris, director of information service for Kitsap County. I will moderate a discussion suited to entrepreneurs, technologists, and citizens alike. Some of the questions we hope to answer are: • What is the relationship between open data and big data, business intelligence and data analytics? • What are the key attributes of open/ big data? — a primer on the key terms. • What are the opportunities for current and potential entrepreneurs regarding apps or solutions to solve problems? • What are Washington state and Kitsap County doing for open data policies and coordination? • Where are some of the issues and challenges with achieving the full potential of open data? • What local applications exist now? • What future events or partnerships (such as hackathons) can the public sector host to spark ideas? We hope you’ll join us by registering at westsoundtechnolog.org. • Charles Keating is president of Keating Consulting Service, Inc. (www.kcsco.com), an IT consulting firm serving global clients since 1983. He is also a partner in K2 Strategic Solutions (www.k2strategic.com) and Professional Options (www.professionaloptions.com), and current president and co-founding member of West Sound Technology Association (www.westsoundtechnology.org).
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Outdoor recreation paying big dividends in Kitsap does is (show) that outdoor recreation is also an economic engine for our state.” As an example, Barejka cited Sage, a flyfishing rod manufacturer on Bainbridge Island. With about 170 employees, it’s among the island’s largest employers. The study estimates that Washingtonians spend about 56 days a year recreating outdoors. The five activities with the greatest participation were, in ranked order, walking, running and jogging, wildlife viewing and photography, bicycling and playground use. Activities generating more than $1 bil-
MEEGAN M. REID
A pair of paddleboarders wait for a boat to pass as they paddle off the shore of Port Gamble last summer. By Tristan Baurick KPBJ contributor
“It shows that preserving open space and restoring and protecting our waterways is a sound strategy,” she said. “What’s good for the environment is good for the economy, and that’s clearly demonstrated in the study.”
Outdoor recreation in Kitsap County is generating nearly $700 million a year, ranking it as one of the most lucrative outdoor destinations in the state, according to a new study commis- “Even though we don’t have the sioned by the state Legislature. The study, which found that benefit of the marketing that about $21.6 billion is generated comes with having a national from outdoor recreation trips and equipment each year in Washing- park, we demonstrate that the ton, is considered the first comprehensive analysis of the state’s outdoor recreation industry recreation economy. is extremely important to the “For our state, (outdoor recreation) is a way of life,” said Wen- Kitsap region’s economy.” dy Brown, policy director for the Washington State Recreation Patty Graf-Hoke, Visit Kitsap Peninsula and Conservation Office. “This (study) really substantiates that it’s a true driving force for our state’s It’s noteworthy, she said, that Kitsap is economy.” generating robust spending despite the The Recreation and Conservation Office fact that the county is the only one in the hired Earth Economics, a Tacoma-based state without federal recreation lands. research firm, to conduct the study. Earth The study noted that all other counties Economics looked at participation and were drawing a substantial benefit from spending data related to 42 activities that acreage managed as a national park, namake use of the state’s 23 million acres of tional forest or national wildlife refuge. public and private recreational lands and Olympic National Park and Olympic Naits marine waterways, lakes and rivers. tional Forest generate $118 million in JefThe $694 million generated in Kitsap ferson County and $65 million in Clallam puts the county in ninth place out of the County per year. state’s 39 counties. Kitsap was just below “Even though we don’t have the benefit Whatcom County ($705 million) and just of the marketing that comes with having above 10th-place Yakima County ($670 a national park, we demonstrate that the million). King County’s annual outdoor outdoor recreation industry is extremerecreation spending put it at the top, with ly important to the Kitsap region’s econo$5.4 billion generated each year. my,” Graf-Hoke said. Outdoor recreation supports more than The study estimates that outdoor rec6,400 jobs in Kitsap and generates about reation supports nearly 200,000 jobs in $37.5 million in annual state and local tax Washington. That’s comparable to some revenue, according to the study. of the state’s largest industries, according The data is proof that Kitsap’s growing to the study. commitment to parks and environmental “Aerospace always gets the spotlight, protections are “paying dividends,” said and information technology gets the spotPatty Graf-Hoke, Visit Kitsap Peninsula’s light,” said Marc Berejka, REI’s director of executive director. government affairs. “But what this report
lion per year in spending include motorized boating ($3.8 billion), bicycling ($3.1 billion), hiking ($2.1 billion), hunting and shooting ($1.9 billion) and snow sports ($1.7 billion). Graf-Hoke said Kitsap is well-positioned to generate more recreation spending. “Seattle’s growing more and more, and I think we’re definitely going to be the backyard or playground for Seattle,” she said. • Tristan Baurick is a reporter for the Kitsap Sun and contributes articles for the Kitsap Peninsula Business Journal.
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business strategy | Dan weedin
Do you see your shadow?
F
ebruary is best known for Groundhog Day. Okay, I know there is some special occasion involving love, romance and flowers on the 14th, but hey, I got your attention, right? With all due respect to actor Bill Murray and his movie by this name, Groundhog Day is best known for the remarkable rodent named Punxsutawney Phil. Double P makes his grand entrance every Feb. 2 to announce to the world whether he has seen his shadow or not. According to the official website, Phil will leave his burrow at 7:25 a.m. February 2nd at Gobbler’s Knob in Punxsutawney, Pennsylvania. He will observe the weather conditions and look for his shadow and he will then make his prediction for the remainder of winter. With undoubtedly greater accuracy than local weather gurus and football pundits, Punxsutawney Phil will indicate whether there are six more weeks of winter coats or if spring flowers are about to bloom. His celebrity grows… What do you see when you pop out of your burrow every morning to assess your day? Unlike Punxsutawney Phil, we make our grand entrance into each day without much fanfare, cheering crowds, or an-
ticipation of thousands marking our every move. However, we do have great control over whether our day ahead is winter or spring. I’m not referring to what’s visible outside your window; rather what’s percolating inside your head! Too many of you fall victim to the malaise portrayed in Mr. Murray’s movie. Your shadow is the “same old, same old,” the “daily grind,” the “rut.” It’s easy to do and happens to all of us at some time. In fact, February may be the exact time you start feeling it. We are now past the holiday season; the weather tends to be dreary and rainy; your resolutions are forgotten and you feel a little guilty; and you’ve settled into a comfort zone that basically has you toiling away at things you have to do rather than want to do. Sound familiar? Before your day, week, month or year turns into a daily repeating movie, assess your current situation and make plans to either get out or avoid this trap. To help you do this, here are my five techniques to assure sunny weather in your future… • Pre-hydrate. We all know how important drinking water early and often is to our health and energy level. Without prehydrating, you quickly lose steam physically and emotionally. Likewise, without pre-hydrating your mind with positive thinking about yourself and the value you bring, you will soon run out of
the momentum and motivation it takes to avoid the trap. Pre-hydrate by ending each night before you go to bed with positive thoughts about your day and your contribution to it. I’m not suggesting you start chanting mindless affirmations until you enter a state of nirvana. What I do recommend is that you recall what you did well. What did you accomplish? Whom did you help? What skills and talents did you bring to bear? How did you improve the day of someone else? This is both for your personal and professional activities. Hydrate your mind with the positives aspect of your day and be truly grateful for them. • Wake Up with Gusto. This is my hardest one. I need to be intentional about my own self-talk when my alarm goes off at 4:50 AM. I’ve tried to boost it by using the Monday Night Football theme song as my alarm! Catch yourself before you roll out of the bed grumbling. If the problem is lack of sleep, then you have the power to change that. What you say to yourself the first thing in the morning is critical to your day. • Get Moving. For myself, I get my day started exercising at the gym. It’s well chronicled that simply getting moving early helps your circulation and your brainpower. Choose an activity that gets you in a positive spin — walking the dog, running around the block, swimming a few laps, shooting hoops or whatever else gets your blood pumping. It doesn’t need to be hard, just consistent. In order for consistency to occur, it needs to be fun. That’s an added benefit!
• Ferociously Guard Your… Time and whom you listen to. Time isn’t a resource issue; it’s a priority issue. Use your time for good, not evil. Good includes advancing your career; boosting your business; enhancing your valued relationships; educating yourself; helping others to grow or improve; having fun. Evil is listening to naysayers; gossiping; complaining; spending an inordinate amount of time on social media; and allowing negativity to insidiously attack your attitude. Despite what you think, you do have control over whom you associate with and how much time you allow them. You do have control over your activities and behaviors. You just need to be ferocious about it. • Rinse and repeat. Do this daily and before you know it, muscle memory has kicked in! Bottom line — you’ve heard your entire life about attitude. Most likely, very few dispute it, yet really living it is much harder to achieve. To escape the Groundhog Day trap, you need to be intentional and committed to improving your daily activities and behaviors that will result in a better attitude. Then you won’t have to be scared to see your shadow … you will actually embrace the opportunity to make a new friend! • Dan Weedin is a strategist, speaker, author and executive coach. He helps business leaders and executives to become stronger leaders, grow their businesses, and enrich their lives. You can reach him at 360-697-1058; e-mail at dan@danweedin.com or visit his web site at www.DanWeedin.com.
People in business Kitsap Bank adds two on management team Kitsap Bank has hired Elizabeth Robertson as Vice President and Credit Officer, and she will be based out of the Sixth and Pacific Branch in downtown Bremerton. Robertson comes to the bank with over 17 years of experience in business lending and credit analysis. She spent the past 10 years in the West Sound Elizabeth business community, most Robertson recently as vice president and credit administrator at Liberty Bay Bank. She is a graduate of the University of Massachusetts-Amherst with a master’s degrees in business administration and music. Kitsap Bank also anErin nounced the hiring of ErSorensen in Sorensen as Vice President and Business Banking Relationship Manager. She will be based out of the main branch in Port Orchard, serving businesses in Kitsap and Mason Counties. Sorensen comes to the bank with nearly 20 years of experience in banking and
business lending, spending the past 12 years in the Puget Sound business community, most recently working as the Northwest region business account specialist for Navy Federal Credit Union. She studied at Southern Illinois University in the school’s Workforce Education and Development program.
Two former deputy prosecutors become partners in new law office Stan Glisson and Jeremy Morris recently announced the opening of their new law firm, Glisson & Morris in Port Orchard. Glisson was previously a partner at Glisson, Witt & Altman, a firm that was based in Bremerton. He co- Stan Glisson founded the firm in 2004 after six years working as a public defender, then as a deputy prosecutor for Kitsap County. Mike Altman and Ryan Witt, Glisson’s previous partners, will reform their law practice, with offices in Jeremy Bremerton and Tacoma. Morris Morris is a former col-
league of Glisson’s in the prosecutor’s office. He spend the past 15 years as a deputy Kitsap County prosecutor handling every type of criminal prosecution, and ultimately serving as chief appellate deputy. The two partners will be specializing in all types of personal injury/negligence and civil litigation, as well as DUI and other criminal defense cases. Glisson & Morris is located at 569 Division St., Suite C, across from the county courthouse. More information can be found at www.kitsapdefense.com or by calling 360-519-3500.
Franciscan names new chief medical officer for physicians network Dr. Michael Marshall has been named the new president and chief medical officer for Franciscan Medical Group, CHI Franciscan Health’s regional network of clinics, physicians and other providers. The medical group has more than 100 clinics and approximately 600 physicians in Pierce, King and Kitsap counties. Its physicians and other providers represent more than 100 medical specialties. “Mike is a highly respected physician whose clinical expertise and administrative experience will help advance our medical group,” CHI Franciscan Health
CEO Joe Wilczek said. Marshall is board-certified in Family Medicine and most recently served as the president of Allina Health Clinics and senior vice president of Allina Health, a large nonprofit health system located in Dr. Michael Marshall the Twin Cities metropolitan area of Minnesota. He has worked as a family medicine and urgent care physician in Minnesota, New Hampshire and Canada for 17 years. “I’m honored to be joining Franciscan Medical Group,” Marshall said. “I look forward to the opportunity to partner with their exceptional physicians and providers to transform health care in the Puget Sound and further CHI Franciscan Health’s long-standing commitment to building healthier communities.” Marshall joined CHI Franciscan Health on Feb. 23 and will serve on the system’s senior executive team. He succeeds Dr. Stephen Spare, who retired last year. Tacoma-based CHI Franciscan Health is one of the largest health systems in Washington state with more than 1,100 acute-care beds and a medical staff of more than 2,400, including more than 700 who practice in the Franciscan Medical Group or the Harrison HealthPartners medical group.
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business commentary | Don brunell
Moving beyond the gas tax With gas prices plummeting to less than $2 a gallon, some politicians think this is the ideal time to increase state and federal gas taxes. The theory is when gasoline is expensive, voters vehemently oppose higher gas taxes; but when the price drops, motorists don’t pay as much attention. They just fill up and drive off, thankful for the savings.
The flaw in that theory is that gas prices will inevitably climb again. But a larger concern is that the debate over fuel taxes distracts us from the real question: What is the best way to pay for road projects and bridge maintenance and reduce highway congestion? The real issue is how taxes are collected and distributed for transportation projects. Today, the federal gasoline tax is 18.4 cents per gallon and 24.4 cents for die-
regional economy | john powers
Economic assets attract investment from across globe
T
he Greater Seattle Market has long been recognized as a leader in international trade, and is among the top exporting regions in the United States ($57B annually- directly impacting over 100,000 local jobs). What our four county region has not been known for is to concomitantly attract foreign direct investment (“‘FDI”) to our region at the same top tier level. Frankly, our region has been underachieving in pursuing - this important opportunity - that’s about to change. Last April, the University of Washington hosted a kickoff event for a “Global Cities Initiative” sponsored by the Brookings Institute and aimed at increasing direct foreign investment in select regions across the U.S.. Several members of our Alliance’s board participated including: County Commissioner Charlotte Garrido; Poulsbo Mayor Becky Erickson; OC President David Mitchell; Kitsap Credit Union CEO Elliot Gregg; ATS President Bruce MacDonald; and, Kitsap Bank CEO Steve Politakis. By May our Kitsap Economic Development Alliance had committed to partnering with our regional peers from Snohomish, King and Pierce counties, and the Trade Development Alliance of Greater Seattle, together with the Puget Sound Regional Council, and the Washington State Department of Commerce, to work with a team of experts at Brookings to develop a regional strategy to enhance trade and boost direct foreign investment (FDI) in our regional economy. Integral to developing our regional FDI strategy was to engage local businesses regarding their current, or future, interest in exploring FDI opportunities which could include real estate investment, M&A transaction, strategic ventures, or green field startup opportunities. I personally met with several Kitsap based
businesses that were already involved in FDI opportunities, or that were interested in examining potential opportunities. And, we are available to work with more local businesses in this dynamic arena. After nine months of collaborative efforts, and countless hours working directly with Brookings, on January 15th, our FDI leadership team (spear headed by Suzanne Dale Estes of the Seattle King County EDC and Sam Kaplan of the TDA) unveiled “The Greater Seattle Region Global Trade & Investment Plan”. Present to promote the Plan were Governor Jay Inslee, and Amy Liu Director of Brookings Metro Policy Programs as J P Morgan Chase announced a $150,000 grant to support the execution of the Plan. The Plan outlines five strategies to double FDI in our region and clearly establish our region as the most competitive trade and foreign investment market in the country: • Ramp up regional economic collaboration among King, Kitsap, Pierce and Snohomish • Convert export partners to investors in advanced industries • Help small and medium sized enterprises access new capital and export markets • Develop a foreign investor pipeline by leveraging international education and travel ties • Leverage strong ties to the Asia Pacific Rim for increased investment in area companies Now it’s time to take the field and execute the Plan. For more details about the Plan and information about how your company may engage the Plan, check out our KEDA website – www.kitsapeda.org and look to info posted on the KEDA blog, or feel free to contact me directly @ 360 536 0996 . . . On Kitsap ! • John Powers is executive director of the Kitsap Economic Development Alliance.
sel. Washington state’s gas and diesel taxes are among the nation’s highest at 37.5 cents. Therefore, truckers in our state are taxed 62 cents a gallon for diesel and car owners fork over nearly 56 cents per gal-
lon in taxes. And there’s more to come. Although not a direct fuel tax increase, Gov. Inslee’s cap-and-trade program and his proposed low-carbon fuel standard will both raise fuel costs. The cap-and-trade program would cap industrial carbon emissions at a certain level and facilities that exceed the cap would have to pay money to the state. Inslee estimates the program will bring in $1 billion a year, $400 million of which would pay for road and bridge projects. Presumably, the refineries and fuel shippers covered by the program will pass their added costs on to consumers in the form of higher fuel prices. And analysts see gas ta x | 39
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car review | 2015 nissan pathfinder
Platinum version of Pathfinder is one nice crossover SUV By Lary Coppola For KPBJ When we saw the first media photos of the totally redesigned Nissan Pathfinder in 2013, we were less than impressed. The fact Nissan also took what was one very tough, very capable, body-on-frame, genuine go-anywhere SUV, and turned it into a unibody crossover, didn’t help our opinion. However, the photography didn’t do the Pathfinder justice, and neither does the term “crossover SUV.” Seeing it in person at a Nissan introduction press event in Napa Valley, and actually driving it in 2013, swayed our opinion quite a lot. Driving the luxurious 2015 Platinum Edition just raised its status in our eyes. The term “crossover” is now standard automotive jargon missing a clear definition of exactly what defines it. The line between crossovers and “real” SUVs has become so blurred it’s hard for the average consumer to understand the difference. The only certainty is that crossovers have become a blend of minivans, family sedans and traditional sport utility vehicles (SUVs).
The unibody Pathfinder Platinum is available in both front-wheel and allwheel-drive (AWD) configurations — defining the current state-of-the-crossoverart. It’s loaded with creature comforts and features never before found in the rugged, body-on-frame version of the Pathfinder. Truck-based, body-on-frame vehicles like Nissan’s XTerra, have always defined “real” SUVs. However, by that definition, is the unibody Jeep Grand Cherokee, which arguably delivers as much offroad capability, a crossover or a “real” SUV? Most would agree it’s “real.” Walkaround: For starters, the Pathfinder doesn’t have the same boxy styling, or truck grille, that linked the previous version to the Frontier and Titan pickups as well as the larger Armada SUV. Like most newer, car-based crossovers, the styling is softer and more rounded, with a strong character line running the length of the body, flowing from the headlights down the hood, underneath the beltline and into the LED tail lights. The front fascia stylizes the previous truck look, so expect to see the Frontier and Titan sport similar changes in the future.
car review | 2015 honDa fit
Totally redesigned subcompact goes to front of its class By Lary Coppola For KPBJ The 2015 Honda Fit is touted as the third generation of Honda’s smallest U.S. vehicle, but it’s really the first total makeover. This complete redesign includes a new interior, engine, transmissions, new styling, safety upgrades, a new unibody configuration and improved fuel economy. In other words, there’s noting left over from the previous version. The new Fit is a front-wheel-drive subcompact — just like every other vehicle in this segment. However, unlike some competitors, it’s offered only as a five-door hatchback. Its dimensions have been altered slightly for 2015, with the wheelbase stretched while overall length has actually shrunk. The height remains unchanged, while the width has grown just minimally. Structurally, the new Fit boasts expanded use of high-strength steel, reducing chassis weight while increasing torsional rigidity by 15 percent — which shows up in the Fit’s handling. Model Lineup: The 2015 Honda Fit comes with a variety of trim levels and a choice between 6-speed manual and con-
tinuously variable transmissions (CVT). All versions are powered by Honda’s new 130-horsepower 1.5-liter engine. The Fit LX is available with 6-speed manual or CVT and comes standard with fabric upholstery, A/C, 160-watt fourspeaker AM/FM/CD/XM, 5-inch LCD screen, rearview camera, Bluetooth for phone and/or streaming audio, USB audio interface, MP3 jack, MP3/Windows Media audio playback capability, Radio Data System, speed-sensitive volume control, tilt-telescope wheel with backlit controls for cruise, audio and phone, two 12-volt power outlets, keyless remote entry, auto on-off halogen headlamps, LED brake lights, body-colored power side mirrors, and 15-inch wheels and tires. The Fit EX upgrades to 180-watt sixspeaker audio, 7-inch touch-screen, Honda-Link telematics, Pandora compatibility, display audio interface, power moonroof, smart entry system, Honda lanewatch, SMS text messaging, push-button start, HDMI port, cargo area tie-downs, 16-inch wheels, and the choice of the 6-speed manual or CVT. The Fit EX-L adds leather-trimmed seats, leather-wrapped steering wheel and
The 2014 Pathfinder rides on the same platform as the Infiniti QX60, and is slightly larger in all dimensions than the previous version. Its 114.2-inch wheelbase is 2 inches longer than before with the body itself almost 5 total inches longer, and 4.4 inches wider. The height is a full 3 inches lower, two of which were gained by reducing ground clearance to 6.5 inches for better ingress and egress. The new Pathfinder has also shed as much as 500 pounds from the vehicle’s overall mass. Interior: Nissan didn’t skimp on interior size or amenities — especially in the American-made Platinum — to lose that weight, delivering a seven-passenger, three-row cabin that’s comfortable, spacious, airy and well-appointed. It successfully bridges the gap between traditional SUV and more refined crossover. The leather seats are comfortable, with wide bolsters and a well-cushioned bottom. The dashboard features soft-touch materials on nearly every surface, with thoughtful touches like padded leather on the doors making this Pathfinder seem more like a refined luxury sedan than a rugged off-roader. The family-friendly second row allows you to slide the outboard passenger seat forward without needing to remove a child seat. It also offers enough leg and headroom for most adults, along with conveniences like cupholders in the door armrests and the ability to slide and recline. All seats behind the first row fold flat, reshift knob, heated front seats, and comes standard with the CVT, as well as bodycolored heated side mirrors with integrated turn signals. The Fit EX-L Navi — our test vehicle — adds satellite navigation with voice recognition, real-time traffic info, HD radio, satellite radio, and standard CVT. Walkaround: Although it’s actually slightly smaller than the previous model, the 2015 Fit looks bigger, thanks in part to its slightly longer wheelbase, but more because of its higher beltline that’s accentuated by a strong character line rising from the front wheel wells to the top of the rear fender. Slightly flared fenders suggest muscularity while a small spoiler positioned above the rear hatch adds a sporty touch. The completely resculpted front fascia actually doesn’t look remarkably different, although the headlamp lenses were stretched horizontally and protect halogen lights. The longer wheelbase combined with a reduced front overhang, and coupled with the sleek, wedge-shaped profile, give the Fit its sporty persona. Interior: More room, higher quality materials, soft touch surfaces, enhanced telematics and surprising quietness are all major interior upgrades. Controls and instrumentation are typical Honda — attractive, intuitive and simple. There’s no need to consult the owner’s manual to figure out how to change the radio. The big news is second-row, adult-size seating. There’s an additional 4.8 inches of rear legroom, making it reasonably
The Nissan Pathfinder Platinum is loaded with creature comforts and features never before found in the rugged, body-on-frame version of the Pathfinder. vealing 79.8 cubic feet of cargo space. There’s 16 cubic feet with all seats in position, compared with 79.2 and 16.5 cubic feet in the previous Pathfinder. In terms of technology, the 2015 Pathfinder Platinum abounds in it, starting with Nissan’s Around View Monitor technology — perfected by Nissan’s luxury brand, Infiniti. It displays views of every angle on all sides of the vehicle — excellent when parking or maneuvering in tight spaces. Other amenities include a full navigation/infotainment system, kickass Bose premium audio (available on SL and Platinum trims only), a tri-zone DVD entertainment system, along with a host of alphanumeric safety systems and Nissan’s new Easy-Fill tire inflation system that honks the horn when tires are inflated to their optimum specification. Under The Hood: Nissan’s 3.5-liter see pathfinder fit | 39
As luxury options continue to proliferate in the small car sector, subcompacts become more and more acceptable as all-around transportation. comfortable for four adults. This was accomplished in part by redesigning the fuel tank, which sits beneath the floor. The new tank is an odd shape for certain, but accounts for the additional space. Honda designers reconfigured the interior, reducing the rear cargo area by 4.0 cubic feet to 16.6, and dedicating it to secondrow passengers. That sounds like a lot, but 16.6 cubic feet is bigger than many midsize sedan trunks. Pulling one lever collapses the rear seatbacks, creating a flat load floor, complete with cargo tie-downs in higher trim levels — resulting in 53 cubic feet of space. Both the Fit’s passenger and total cargo volume are best in class. Under The Hood: The four-cylinder powerplant remains unchanged at 1.5 liters — but this is a new DOHC 1.5-liter. It utilizes Honda’s iVTEC variable valve timing and lift system, with direct fuel injection for more power, and improved fuel economy. The new engine delivers 130 see honda fit | 39
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PATHFINDER | F ROM 3 8
G A S TA X | F ROM 37
workhorse V6 — arguably the best powerplant since the small-block Chevy — is the only engine available. It delivers 260 horses and puts out 240 pound-feet of torque. The old Pathfinder’s conventional, five-speed automatic has been replaced with Nissan’s much-improved Xtronic Continuously Variable Transmission (CVT). The CVT is actually a surprisingly good match for this engine. Nissan used the same basic formula that improved fuel economy on the 2013 Altima sedan, with the CVT shouldering much of the burden. The V6 has been pretty much left alone, while the transmission’s 40-percent reduction in internal friction and use of a drive chain specifically designed 2015 Nissan Pathfinder for the Pathfinder, improves overall performance. Nissan’s All-Mode 4x4roads. Both deliver a solid, smooth, comi system allows drivers to switch between fortable and stable ride that’s relatively front- and all-wheel-drive on the fly, as quiet — only more so in the AWD Platiwell as featuring a fully automatic mode, num. The CVT didn’t disappoint on some and is available on all models. challenging terrain, although in all fairFuel economy for the front-wheel-drive ness, while as adequate as any crossover, version is 20/city and 26/highway. AWD it’s not the go-anywhere off-road enthunumbers are 19 and 26 for a combined 22. siast’s machine the previous Pathfinder Despite criticism about using a CVT on was. But it isn’t meant to be either. an SUV, there’s much to say for a tranThe car-based platform leaves that trany that holds engine RPMs to 1,800 at 70 ditional truck feeling and ride behind, inmiles per hour. stead delivering a refined, dialed-in drivBehind The Wheel: Our test vehicle ing experience. The steering is a bit light was an AWD 2015 Platinum version Pathfor our personal taste, but brakes, accelerfinder. We’ve also test-driven the frontation and handling are all good, and the and all-wheel-drive versions of the 2014 Pathfinder just feels more nimble than its a couple different times on all kinds of
for the state’s climate change task force estimated his low carbon fuel standard would increase gas prices 93 cents to $1.17 per gallon. Here’s the problem. Depending solely on gas taxes and carbon-based fuels to pay for transportation may have worked in the past, but it ignores modern realities. When President Eisenhower set up the federal Highway Trust Fund in 1956, the proceeds from the original three-cent gas tax built the interstate highway system. As the system was expanded and upgraded over the decades, the tax was increased in 1982, 1990 and 1993. That system worked pretty well when the price of gas was under 30 cents a gallon and when the only electric vehicles in Seattle were the electrified trolley buses. But the 1973 Arab oil embargo changed all that. Overnight, the price of a barrel of oil quadrupled. President Nixon responded by rationing gasoline and imposing a 55-mph speed limit. As Congress got involved, the auto industry began shifting to cars that got better mileage. Now, President Obama wants cars to average 54.4 miles per gallon by 2025. More fuel-efficient cars and the growing popularity of hybrids and electric cars mean less gas is sold, which generates less gas tax revenue for transportation projects. The formula for funding highway and bridge construction must change; state and federal fuel taxes are no longer sufficient. Carbon fuels can no longer bear the brunt of funding our transportation system. Congestion-based funding, tolls, licensing and fees on all vehicles, including electric and alternative-fuel cars, will have to pick up a greater share of the costs. Recently, the Wall Street Journal editorialized that the time has come to abolish the federal gas tax, saying the costs of transportation can reasonably be borne by the people who enjoy the benefits — a user fee of sorts. While it seems highly unlikely that Congress will repeal the gas tax, elected officials need to look at the core issues with transportation and shift away from reflexively raising fuel taxes. That just won’t work anymore.
competitors. Whines: Visibility is good, although the wide A-pillars make vision around some corners slightly problematic. However, some competitors have larger blind spots. Bottom Line: No matter how you define a luxury crossover SUV, the 2015 Nissan Pathfinder Platinum is a winner in the three-row, family-friendly luxury segment. It offers a well-appointed cabin, lots of functionality, intuitive technology, and decent driving dynamics packaged in a stylishly sleek, luxurious wrapper. What more could you want? • For more car reviews, visit www.auto reviewers.com.
HONDA FIT | F ROM 3 8
horses — up from 117 — 114 pound-feet of torque, and is EPA rated at 29/37 mpg with the new 6-speed manual. The CVT replaces the previous 5-speed automatic, and is the only automatic offered. In most trim levels the CVT-equipped Fit is rated at 32/38 mpg, though in the basic LX it cracks that magical 40-mpg barrier at 33/41. Behind The Wheel: While people continue to prefer sedans, hatchbacks are definitely more versatile — and the Fit is the versatility champ in this segment. However, the Fit’s most compelling attribute isn’t versatility, but athleticism. The new Fit is quick on its feet, and handles well with minimal body roll. The new electric power rack-and-pinion steering system is a little numb, but it’s sports-car quick, and accurate once you get some seat time on a winding road. Ride quality is better than we expected, and its disc/drum braking system is strong. Performance of the new 1.5-liter powerplant is impressive, with strong green light getaways, as well as passing power on two-lane blacktops. Using the improved CVT’s paddle shifters activates steps in the system’s program, simulating actual shifts. This mitigates that slipping clutch effect that still plagues CVTs. However, for drivers who
• Don C. Brunell is a business analyst, writer and columnist. He recently retired as president of the Association of Washington Business, and now lives in Vancouver. He can be contacted at theBrunells@ msn.com. 2015 Honda Fit really enjoy driving, the new 6-speed manual is the way to go. It replaces the previous 5-speed, and is typical of Honda sticks — short throws, and sure engagements — for pure driving fun. Interior noise has been reduced significantly, but it’s a little brassy at 75-plus mph. Whines: Honda limits the fun manual transmission to the Fit’s lower trim levels, LX and EX, which means if you want
to shift for yourself your butt won’t feel leather and you can’t have navigation. Bottom Line: As luxury options continue to proliferate in the small car sector, subcompacts become more and more acceptable as all-around transportation. The 2015 Honda Fit is an outstanding example — well equipped, roomy, versatile, affordable, inexpensive to operate, and exceptionally fun to drive. This new Fit zooms to the head of the subcompact pack.
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