Kitsap Peninsula Business Journal by Kitsap Sun Digital

Kitsap Peninsula

Business Journal An edition of the Kitsap Sun

KPBJ.COM

October 2015 | Vol. 28, No. 10

Sky’s the limit Drones take flight for commercial use | Page 4 Kent, WA PERMIT No. 71

Kitsap Sun 545 Fifth Street Bremerton, WA 98337

PAID Prsrt Std U.S. POSTAGE

Inside: LumiThera’s light therapy research | 5

PUD’s ﬁber optic network | 7

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INTRO | DAVID NELSON

On the Cover

Tech talent and more

Fred Ford releases his eBee drone into the air while conducting a training ﬂight recently with Dave James at Howerton Soccer Complex in Silverdale. | Story, page 4

MEEGAN M. REID photo

Shopkeepers shufﬂe in Poulsbo Kitsap Peninsula

KPBJ.COM

Business Journal

Front Street has seen some of its downtown merchants rearranged in domino-like fashion recently as shops open, close or move to larger spaces. Story, page 28

The Kitsap Peninsula Business Journal is published by the Kitsap Sun the first week of every month, and distributed to business addresses through Kitsap County, North Mason and Gig Harbor. Brent Morris, Publisher brent.morris@kitsapsun.com David Nelson, Editorial Director david.nelson@kitsapsun.com Tim Kelly, Managing Editor tim.kelly@kitsapsun.com Mike Stevens, Marketing Director mstevens@kitsapsun.com Jeremy Judd, Digital Director jeremy.judd@kitsapsun.com

Family business sold, but name stays Dahl Glass is owned by someone outside the Dahl family for the ﬁrst time since the company was founded in Silverdale in 1946. Story, page 26

For inquires to receive the Kitsap Peninsula Business Journal at your business, contact Circulation Sales Director Hugh Hirata at 360792-5247 or hugh.hirata@kitsapsun.com. To advertise in the Kitsap Peninsula Business Journal, contact Michael Stevens at 360-792-3350. TO SUBMIT NEWS: Tim Kelly, Managing Editor tim.kelly@kitsapsun.com 360.377-3711, ext. 5359

Standard mail postage to be paid at Bremerton, WA

A new place to publish for local authors Well-traveled couple become local entrepreneurs with micro-publishing business in Poulsbo. Story, page 24

t seemed impossible this summer to open a web browser and not see a story about Amazon. Commentary on Seattle blogs went viral after New York Times’ reporting scrutinized the company’s workaholic culture. Stories in the Seattle Times on the physical impacts of buying and building real estate around downtown for thousands of migrating employees, and what that does to housing prices in the city, caught my attention, as did the Times examining the role, or lack thereof, of corporate philanthropy from Jeff Bezos’s giant. Business leaders on our side of the water wonder how to ride parts of that wave, of course. I’ve heard it repeatedly that Kitsap’s quality of life will be the draw for those Amazonians when it’s time to leave the big city. And I wouldn’t blame them, even if I revel in Kitsap’s undiscovered gem status at times. How that potential talent acquisition plays out locally is a different question, but this edition of the Kitsap Peninsula Business Journal, focused on technology, offers some hints. A biotech startup in Poulsbo, a company on the leading edge of business applications for drone technology, and the efforts of organizations like Kitsap Public Utilities District, West Sound Technology Association and the Kitsap Economic Development Alliance, which recently formed a committee speciﬁcally focused on technology, seem coordinated about creating an atmosphere — and more importantly, the infrastructure and education — for entrepreneurs that will call the region home. It’s a coincidence that this edition on technology precedes November’s “20 Under 40” awards we host to recognize young business leaders. Next month we’ll introduce entrepreneurs moving Kitsap’s economy forward — in tech ﬁelds and otherwise — who haven’t been subject to a media blitz. Many of you nominated employees or colleagues, and our judging panel again had three to four times as many names to review than awards to give. That’s an encouraging sign itself when talking about talent in Kitsap County. That load of talent is also a story this publication tells every month when we examine companies and individuals that make a difference in our economy. I hope you enjoy reading about them, but I more sincerely hope you enjoy being one of them.

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| Wednesday, October 7, 2015 |

Colleges roll out programs to meet IT workforce demand ■ OC, Western on the Peninsulas

offer new four-year degrees in Information Systems By Tim Kelly

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

With one four-year degree program beginning its second year and another one starting in fall 2016, Olympic College is doing all it can to help meet the growing workforce demands of the information technology sector. Norma Whitacre, dean of Business and Technology, said any four-year degree program offered for OC students “must be a professional/technical or applied baccalaureate, preparing people for work.” There’s plenty of work to be had for students who get either a Bachelor of Applied Science in Information Systems (BAS IS) degree, or a Computer and Information Systems Security (CISS) degree that Western Washington University will launch next year at the OC Poulsbo campus. “The decision to offer the (CISS) degree is in response to an urgent statewide need for trained personnel in this ﬁeld far exceeding the capacity of existing programs,” Lois Longwood wrote in an email to the Kitsap Peninsula Business Journal. She is Director of Degree and Professional Programs and Extended Education at Bellingham-based WWU. That is echoed by Mike Hamilton, who started a cybersecurity company in Bremerton three years ago and is a member of OC’s employer advisory committee for its technology programs. He said his firm, recently renamed

Critical Informatics Inc., has a staff of 10 plus about 30 contract employees who mostly work as analysts monitoring business clients’ computer networks. However, Hamilton anticipates growth and national expansion of his business that will lead to hiring a lot more analysts. “Ifwereachourpotential, ... we’re going to need more than 100 of them,” he said. “We intend to have a company that’s an acquisition target in four years. Our objective is to have 1,000 managed service clients.” Some of those analysts might come from WWU’s cybersecurity program, which will enroll up to 30 students next fall in Poulsbo through Western on the Peninsulas, the university’s partnership with the region’s two community colleges — Olympic and Peninsula College in Port Angeles. WWU started the cybersecurity degree program this fall at its main Bellingham campus, with students who completed an associate’s degree in technology at Whatcom Community College. Olympic’s four-year degree program in information systems enrolled its ﬁrst cohort in Bremerton in fall 2014, and with this year’s incoming group the program has about 35 students. OC received a STEM pathways grant of $200,000 from the State Board for Community and Technical Colleges to develop the program, and the OC Foundation provided an additional $100,000 that was used for curriculum development and computers for a state-

of-the-art networked classroom with 25 workstations.

“We have enough space to do 50 students at a time

every year,” said Rich Becker, the faculty member in charge of the program. Olympic’s BAS IS program also requires incoming students to have an associate’s degree or equivalent work experience. Besides being tailored to workforce needs, the pro-

gram also is designed to accommodate the schedules of students who already have jobs, and to meet federal requirements for military veterans to be eligible to enroll. “A lot of our students See COLLEGES, 10

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Light therapy may prevent vision loss ■ Poulsbo biotech startup LumiThera develops device to treat macular degeneration By Rodika Tollefson KPBJ contributor

MEEGAN M. REID

Clark E. Tedford, Ph.D., explains the inner workings of the Lumithera 300 at the Poulsbo ofﬁce of LumiThera.

A Poulsbo-based company is working on a device that could help treat age-related macular degeneration, a debilitating disease that has no cure. If all goes well, LumiThera, Inc. could see its device on the market in Europe next year — and work its way into the United States after that. According to the American Macular Degeneration Foundation, macular degeneration is the leading cause of vision loss, affecting more than 10 million Americans. That’s more than cataracts and glaucoma combined. Typically, macular degeneration is age-related (but there’s also a form caused by a recessive gene). “The disease is profound in the sense that you lose your central vision and as you lose your central vision, you lose your ability to read, drive, function in a lot of your daily activities — and ultimately, it can take your independence,” says Clark Tedford, the Ph.D. who is one of the ﬁve LumiThera co-founders. Since its inception in 2013, the company has been developing a medical device using photobiomodulation, also known as low-level light treatment. Unlike surgical or aesthetic laser (which destroys tissue), photobiomodulation creates a photochemical reaction with the cell at certain wavelengths. The therapy has been used for things such as chronic pain

and healing after sports injuries. “It’s been used for many years as an alternative to traditional antiinflammatory drug medication,” Tedford says. “The technology has an outstanding safety record.” LumiThera received two grants from the Life Sciences Discovery Fund, established in 2005 by the Washington state Legislature “to foster growth of the state’s life sciences sector and improve the health and economic wellbeing of its residents.” The ﬁrst LumiThera grant, for $250,000 in 2014, was for proof of concept. The second, $500,000 awarded earlier this year, was to help the company commercialize its technology. In September, the company became the recipient of two more grants, from the National Institutes of Health and the National Eye Institute.Asmallstudyhas alreadyshown encouraging results for treating agerelated macular degeneration. And now, one of the NIH/NEI small business innovative research grants will be used for another pilot clinical trial. The yearlong trial of 30 patients in Toronto, slated to start at the end of this year, will provide two rounds of treatments with the LumiThera device. Each round will have nine sessions, which last less than ﬁve minutes per eye. The patients will then return for another round six months later. “The idea is that we can be on the market in 2016 with our product in

I THINK WE HAVE a technology that could have tremendous impact on the lives of millions of patients with vision loss.” — Clark Tedford, co-founder of LumiThera

Europe and can (then) start expanding in the United States and the rest of the world,” Tedford says. The second national grant will go toward research collaboration with University of Wisconsin-Milwaukee’s Dr. Janis Eells, a leading researcher in photobiomodulation. Growing startup

Tedford, who lives in Poulsbo, has extensive background in the pharmaceutical ﬁeld and was previously vice president and chief science officer at PhotoThera. He became interested in photobiomodulation for age-related macular degeneration after meeting two ophthalmologists at an event. One of them was Dr. Robert Dotson, who had a solo ophthalmology

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| Wednesday, October 7, 2015 |

KITSAP PUBLIC UTILITY DISTRICT | PAUL AVIS

Investing in a community-owned fiber optic network By Paul Avis

Kitsap Public Utility District For KPBJ

ommunitiesthroughout the country have been experiencing the benefits of having highcapacity fiber optic broadband net work s extended to their homes and businesses. Recent studies conducted by the Fiber To The Home (FTTH)Councilhavefound that students with broadband at home have a 7 percent higher graduation rate, FTTH increases home values 3 percent, and communities with access to gigabit broadband have had higher economic growth, as measured by GDP, over similar communities without. The efforts of some utility cooperatives and Google Fiber throughout the country have shined the spotlight on fiber to the premises (FTTP) and gigabit service (1 gigabit or 1,000 megabits per second Internet connection speed with no data usage caps). In 2014, the Federal Communications Commission took notice and began outlining a path to bring high-speed broadband to all Americans. They defined broadband as a utility, 25 megabits per second (Mpbs) download and 3 Mbps upload, required an “open Internet,” changed the use of Universal Service Funds (USF) from telephone service to broadband service with the Connect America Fund, and began overturning state laws that are barriers to broadband deployment. Since 2000, Kitsap Public Utility District has operated an open-access network that gives busi-

nesses access to multiple Internet service providers. The problem at the time was that multiple service zones separated the county, making it cost-prohibitive for businesses to communicate across the zones. KPUD was able to run ﬁber optic lines throughout the county, allowing cheaper connectivity in some cases, but better connectivity in all cases. There are three aspects that truly differentiate the PUD’s network: open access, high speed and community ownership. The open-access nature of the network allows the end users to have access to a variety of service providers. This competition has been shown to result in better services and lower prices for those services. The PUD wants to build a network that is as future-proof as possible. They have designed the network to provide the option of a gigabit service (or higher) to every

premises in the county, meeting today’s needs. The network is built on a ﬁber optic backbone that can provide a virtually unlimited speed of service. The community-owned aspect of the network is very interesting. As business owners in Kitsap County, you have the opportunity to meet directly with the leaders of the PUD and can steer direction by voting for the commission. When Kitsap PUD began building its network for schools, libraries and other governmental agencies, there were very few services that would require a gigabit connection. Skype and streaming on Netﬂix did not exist. Data backups were still being done with tape and offsite storage. Cloud services were still in their infancy. Now businesses are able to transit data in a small fraction of the time that it takes using legacy broadband equipment, such as DSL (0.786 – 3

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THERE ARE THREE aspects that truly differentiate the PUD’s network: open access, high speed and comunity ownership. megabits per second speed on average). In a world where speed matters, this means websites load faster, large data ﬁles such as CAD drawings and medical im-

ages can be shared around the world in seconds, and customers can get overall better service. The PUD wants to support Kitsap County in being a leader in education, health care, economic development and more. Continuing to build KPUD’s ﬁber optic network will continue to strengthen our community and the county as a whole. With the many apparent benefits to business owners, it is still difficult for all of us to change our mindset of how broadband is delivered. Many have grown accustomed to ISPs providing an incentive to sign a contract by offering to install the service for free. Then the service provided is oversubscribed

to the point that it can be made cheaper to the end user. While adequate for some, for a growing percentage of businesses the service is becoming unsatisfactory. The KPUD is looking to provide access to a high-speed, open-access ﬁber optic network. As a public agency, the option of installing the network for free does not exist. The residents of Kitsap County will need to invest in this community-owned network to expand it to all. The KPUD broadband network is all over the county. If you are interested in knowing more about connecting your business or residence to the KPUD network, reach out to ourFiber@kpud.org or complete the survey at kpud.servicezones.net. • Paul Avis is Superintendent of Telecom at Kitsap Public Utility District (www.kpud.org).

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TECHNOLOGY | CHARLES KEATING

How we’re advancing an innovative tech economy for the region

his past year has been an intense period of re-evaluation regarding West Sound Technology Association’s role and mission. Like the trends that shaped it, the process is ongoing — and we have exciting developments in the works. To ﬁrst determine whether we were on track, we conducted a survey and requested feedback from members, partners and the community. The details were announced in our newsletter but in summary, we were pleased to hear we are reaching people. Our mission is understood, our core initiatives are still valued and relevant. Like an onion, there are layers to WSTA (westsoundtechnology.org) and always some who do not know or understand us as well as they might think, but this is an opportunity for us to educate and continue spreading the word. The challenge of limited ﬁnancial and human resources remains, but we will continue outreach to gain the support of stakeholders and partners in our efforts to advance an innovative technology economy for the West Puget Sound Region.

WSCD, along with the Hour of Code initiative we will again host in December, are in response to the urgent need to bridge a talent gap and expand interest and access to computer science topics for kids 8-18 (and their parents.)

See KEATING, 10

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Our strategic shift — STEM, K-20 education, and West Sound CoderDojo West Sound Technology Professionals Association was founded 15 years ago, in part to promote technology and provide information. While we still do this, the explosion of online resources has changed the landscape and our role. Many other technology-focused groups now meet virtually or have switched to ad-hoc meetup formats because of an expressed desire for more personal and social interaction and business networking. The effort to identify and increase local resources, talent pools and local opportunities continues, though challenging when the Eastside beckons. The recent decision of Avalara to relocate its corporate offices from Bainbridge Island to its expanding Seattle location is an example. The fact that they could and did start up here proves it’s possible; it’s also clear we need to figure out how to keep companies here to remain globally competitive – requiring all of our community leadership to be a part of this conversation. Fixing the talent gap and building a pipeline (or highway) starts early, and this drove our strategic shift. WSTA has always focused on networking interactions, influence and advocacy, and engaging youth and workforce, but West Sound CoderDojo (WSCD) was a pointed effort that took many months of visioning, planning and legwork. Launched in May, we’ve since hosted 14 events that have attracted 500 attendees in four months. On Sept. 12 at our semi-permanent location at Western Washington University Center on Olympic College’s Poulsbo campus, some very excited kids built their own computer for the first time using a Kano kit, which they connected to HDMIcompatible monitors and used them to code. WSCD and CoderDojo events must always be free, but for this event parents had to purchase the kits directly from Kano. Avalara executives and an anonymous community member graciously donated three and two kits, respectively, for families with financial hardship who could not otherwise participate.

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| Wednesday, October 7, 2015 |

HUMAN RESOURCES | JULIE TAPPERO

Lessons from Amazon about creating a company’s culture

mployees stab each other in the back. They cry at their desks. Their bosses and peers criticize them non-stop. Co-workers are encou raged to tear each other’s ideas apart. Personal lives, including illness, family emergencies and vacations are expected to not interfere with an employee’s productivity. Stress is extreme, burnout is common, turnover is high and the morale of many of these workers is low. Sound like a place you’d like to work? Maybe not, but over 150,000 people do work here, and this well-known employer is Amazon. How does this company’s culture enable them to succeed, and how does it coincide with what employees today expect? In August, The New York Times wrote an exposé on what it’s like to work at Amazon. Whether or not it’s 100 percent accurate, no doubt there are grains of truth in this article. Amazon’s amazing success has been built on a bruising and grueling work environment, driven by CEO Jeff Bezos. It’s interesting that this culture, which may seem negative on its face, has supported huge success for the company. One thing I’ve learned by working with a wide variety of businesses over the last 17 years is that every company has a unique culture, and what works, or doesn’t work, is different for each one. Company culture often reflects the personality and values of the company founders. When I meet someone who is just start-

ing a business it is often something they are thinking a lot about. What will the company’s values be; what will the work environment be like; what are the employee behaviors that will be valued; how will employee performance be reviewed and rewarded; and what will the organizational structure look like? These are just some of the components that create a company’s culture. But just as business owners have a high interest in the company’s culture, so do employees. In our staffing company, when we are matching employees and employers, the cultural “fit” is as important as the fit for skills and experience. If the company culture is not a fit for the employee, the relationship will not last for the long run. As the economy evolves and the workforce ages and changes, the needs and desires of employees also change. Every year the Society for Human Resource Management does a survey of employees in the United States for Employee Job Satisfaction and Engagement. The results are helpful for employers to determine trends in order to create a company culture that attracts and retains the best talent available. In this year’s survey, the top aspect that contributed to employees’ job satisfaction was “respectful treatment of all employees at all levels” with 72 percent of responders ranking it as very important. The second aspect was “trust between employees and senior management” with a 64 percent ranking. These were followed by more concrete aspects of overall employee benefits, compensation/pay, and job

security. This is interesting to contrast with Amazon’s work environment where co-workers are encouraged to criticize peers, and the culture does not foster an environment that would exude trust and respect. But it’s also interesting to compare the 2014 survey results to prior years, as it shows how job satisfaction changes. In 2013, compensation was highest rated, followed by job security and opportunities to use skills and abilities (which was the number one factor the year before that.) And it’s not surprising to ﬁnd that compensation, beneﬁts

and job security ruled during the recession years. When the New York Times article came out, Bezos sent a memo to his employees instructing them to go to their HR people if they had issues like those reported in the story. Hopefully, that’s good news for Amazon employees and the human resources staff who will now be empowered to make strategic changes to improve and shift a company’s culture. What has worked for Amazon to this point may not be sustainable in this changing economy. In order for them to attract and retain the brightest talent in a tight tech job market, which surely is what they want and need to do, they will have to be known as one of the best places for thebrightestpeopletowork. I have a passion for

shoes, and it follows that I am a big fan of Zappos, a company known for their great company culture. Interestingly enough, Amazon owns Zappos. Part of the agreement made by Zappos CEO Tony Hsieh when he sold his company to Amazon was that they would continue to manage their company independently of Amazon. Hsieh believed that Zappos’ commitment to their company culture, above everything else, including their proﬁts, is what distinguished his company above his competitors, and he wasn’t willing to let go of that. Bezos agreed to that as part of the purchase. What does that tell us? Perhaps it says that Bezos is smarter about the importance of company culture than he may have been given credit for. Jeff Bezos and the senior

management of Amazon have an opportunity before them to have a frank dialogue with their employees about their company’s culture, and to ask hard questions about whether it is still the appropriate mix to meet Amazon’s future goals. Some business owners and managers never have the opportunity to hear honest feedback from their employees. If we are lucky enough to be in Bezos’s shoes, we need to use the information we receive to our advantage, as no doubt a smart man like Bezos will do. • 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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10 | Wednesday, October 7, 2015 |

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networking, web application design and things like that,” he said. “I’m a proponent of A LOT adding a cybersecurity comOF OUR are working and want to ponent to all of those.” advance in their jobs, and Prospective analysts for STUDENTS others want to get a job,” companies like his would are working Whitacre said, explaining benefit from internships that classes include online where they are “looking at and want to learning and two evening events on networks in real advance in classes a week in the intertime and ﬁguring out what’s their jobs, and active classroom. “It makes going on,” he said. “That’s it accessible for working what my company needs, others want to people who want to go to and that’s a role in real short get a job.” school in the evenings.” supply right now.” Becker said the classes Hamilton also strongly — Norma Whitacre, and the physical classroom supports recruitment of are designed for students to veterans into the IT indusDean of Business & work on group projects. try. He’d like to see the OC Technology at OC “We have them work in and WWU programs focus teams, becausewhenyou get on Navy veterans, similar to out in the real world, that’s how the University of Washwhat they’re going to be doing,” he said. ington-Tacoma developed a program for Students also will create a senior project Joint Base Lewis-McChord. as a graduation requirement. “A lot of roles in the service themselves “They choose what they want to de- to this kind of analysis and investigation,” velop, and make it available (online) for Hamilton said. any potential employer to see,” Becker said. Becker said the OC program aims to As one of those potential employers, equip students with a skill set they can leHamilton said he’d like to see students verage in various IT jobs. from OC and elsewhere complete intern“You don’t expect somebody who’s goships to gain practical experience working ing to be an expert,” he said. But students in the IT ﬁeld. with a strong foundation in IT will be able “Most of the conversation has been to “self-direct in a new environment and around curriculum that’s more classic IT — then specialize.”

from 5

Keating from 8

imperative, and it has been a special treat to have some of our CoderDojo classes led by the students themselves. We’re always looking for mentors and volunteers so contact us and take advantage of this unique opportunity to engage youth and transfer lessons and experience.

Western Washington Summit 2015 — Are we all doing enough? This year’s annual summit focuses on education, but also challenges us to examine whether we — nonproﬁts, educational institutions, communities at large — are doing enough. Our luncheon will again be hosted at Clearwater Casino Resort on Nov. 19, during Global Entrepreneurship Week, as we explore what more is required to build a tech-savvy workforce. We’ll have education and private-sector leaders on our panel to help us connect the dots between efforts, needs and how to pivot and innovate despite budget and other challenges. Our sincere thanks to Port Madison Enterprises and Professional Options for again leading off with sponsorships.

Individually, they carry impressive records. Together, they demonstrate our region’s promising future.

We’re going to Congress and the White House. What message do you want us to take? Last year, our strategic advisor (Doña Keating of Professional Options) participated in White House meetings as part of a small, select group invited by Voices for Innovation, a global Microsoft-hosted community whose goal is to advance 21st-century tech policies. VFI hosted the roundtable meeting with senior administration officials for an open discussion about technology innovation, regulatory issues and small business challenges. This year, I was also extended an invitation to participate in congressional and White House meetings at the end of October, and want to hear your voices about policies, initiatives or concerns you’d like addressed. Let me know. We are moving forward and hope you can meet us over the horizon. • 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 and Professional Options, and current president and co-founding member of West Sound Technology Association (www.westsoundtechnology.org).

Welcome the Class of 2015 Honorees in a special dinner reception! 5:30 p.m. p.. m . – 8 p.m. Wednesday, November 4, at thee Admiral Theatre. Keynote Keynn ote speaker State Representative Drew w Hansen, 23rd Legislative District & Chair of the House Houss e Higher Education Committee will be featured. Purr chase tickets now n ow at kitsapsun.com/20under40. Purchase Dinner and nd non-dinner prices. BROUGHT TO YOU BY

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

Thursday, October 1 HBA Ofﬁce Closed Thursday, October 1 Day 1 of Set-up for Peninsula Home & Remodel Expo Kitsap Sun Pavilion (8am – 9pm)

Congratulations to all our 2015 REX winners! In early September, the Kitsap HBA Remodelers Council presented the awards of excellence to member remodelers. As always the competition was tough. Ultimately the judges (John Armstrong, Kevin Ryan, and Bill Wyman) selected 13 winning projects. This year’s entries included several unique spaces to include barns, closets and basements. Homeowners are interested in making all their spaces useful and the entries proved that. As usual, the applications included big baths and small, gourmet kitchens, and expanded living spaces. We are so proud of our remodeling professionals.

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

2015 Builders & Assoc. Directors

Thursday, October 1 HBA Developers Council Mtg. MOVED to 10/8

Bill Broughton, Walter Galitzki, Stuart Hager, Jim Heins, Joe Hurtt, Berni Kenworthy, Jo Pederson, Leslie Peterson, Jim Way

Friday, October 2 HBA Ofﬁce Closed

2015 State Directors

Friday, October 2

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

Peninsula Home & Remodel Expo Set-up Continues 7:30am – Noon

Friday, October 2 Day 1 Peninsula Home & Remodel Expo Kitsap County Fairgrounds 2pm – 8pm

CleanSpace Northwest Inc. “Existing Basement/Carport/ Garage Remodel” REX Award.

TN Miller Remodeling “Residential Kitchen $30K -$60K” REX Award.

The following companies took home multiple awards in several categories. They are listed below with one photo from just one of their winning projects.

2015 National Directors 2015 Alternate Natnl. Directors Mike Brown, Jeff Coombe

Life Directors

Sentinel Construction and Consulting Inc. “Residential Universal Design” and “New Carport/Garage/Utility Building” REX Award.

A Kitchen That Works LLC was awarded “Other/ Specialty Room”, “Residential Kitchen Over $60K”, and “Residential Bath $15K - $30K” REX Awards

Accurate Builders won REX Awards in “Exterior Finishes” and “Decks, Gazebos, Porches, & Outdoor Kitchens”

Wayne R Keffer Construction took home REX Awards in “Residential Kitchen Under $30K” and “Residential Bath Under $15K”.

Monday, October 5 HBA Ofﬁce Closed Expo Tear-down Continues Wednesday, October 7 Thursday, October 8 Developers Council, 7:30am SPECIAL date!

Thursday, October 8 Annual General Membership Mtg. Kitsap Golf & CC, 11:15am

Monday, October 26 Built Green Orientation, 3pm

Thursday, October 29 Executive Comm. Mtg., 2:00pm Government Affairs Comm., 2:30pm Board of Directors 3:30pm

Life State Directors

Kevin Ryan, Shawnee Spencer, Jim Ullrich

Sunday, October 4 Tear-down of Expo 5pm – 9pm

Remodelers Council, 4pm

John Armstrong, Rick Cadwell, Kevin Hancock, Byron Harris, Brent Marmon

Bill Parnell

Saturday, October 3 Day 2 Peninsula Home & Remodel Expo Kitsap County Fairgrounds 10am – 6pm Sunday, October 4 Day 3 Peninsula Home & Remodel Expo Kitsap County Fairgrounds 10am – 5pm

2015 Alternate State Directors

Joe Gates Construction was awarded for their entries in “Residential Addition Over $175K” and “Residential Whole House $100K - $150K”.

Watch for the Fall/Winter edition of the Build & Remodel on the Kitsap Peninsula magazine for more details on these winning projects as well as our website www.kitsaphba.com and our page on Houzz.com.

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

2015 Council & Committee Chairs Build A Better Christmas ..... Randy Biegewald Built Green.............................Walter Galitzki By Laws & Nominations ........Judy Eagleson Developers Council..................Robert Baglio Golf Classic........................Shawnee Spencer Govt. Affairs Cmt.........................Jim Ullrich Remodelers Council Chair... Dale Armstrong Membership ..........................Miriam Villiard Parade of Homes .................................... TBD Peninsula H&G Expo....................Lena Price Peninsula H&R Expo............................. TBD

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

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

www.KitsapHBA.com

Kevin Ryan Tim Ryan Construction

Teresa Osinski CGP

President, 2015

Executive Vice President

Membership Matters

Building Codes

As we begin October, the first full month of fall the HBA of Kitsap County holds their annual General Membership meeting which allows all members to come together and help to shape the future of this great organization. The old saying that “membership matters” is so true in organizations like ours that work to improve the construction industry and the communities we live in.

Now is the time and the time is now! If you have been tracking the code update process through our Washington State Building Code Council, you know that public comment is deadlines are fast approaching. To make comments in person, the last local opportunity is on October 16 in Olympia at the Department of Enterprise Services Building. Up until the 16th, please forward your comments to the BIAW staff, Al Audette (ala@biaw. com) or Jan Rohila (janr@biaw.com).

As business leaders we all know the importance of building relationships with others. The buzzword “networking” has been used to help make the act of reaching out to others and just having a conversation something new and fresh. We can all appreciate how nice it is when we reach out with a phone call and a real person answers, so why is it so difficult to do so? As members I challenge each of you to truly reach out this month and introduce yourself to others in our organization you have not met and potential new members who can help make our industry stronger.

Changes in the Washington State Energy Code, IRC, IFC (Fire Code), Mechanical Code, and Plumbing code are sure to further drive up the cost of housing in ways that will not be recognized or appreciated by the appraisal community. These changes, if adopted are sure to further exacerbate the existing chasm between cost of construction and the appraised value. These changes include a new residential fire sprinkler mandate for townhome construction. With more and more shared wall townhome construction you should be aware of this and comment if you feel such a mandate may price you out of being able to build and sell for going market on these products.

Members in any organization are called upon to routinely help shape their organization’s future leadership and so if you truly want your voice to be heard you need to engage. When they say that “those who show up make the rules” they are right! As members you have the opportunity to let us know what is important to you and help us, as leaders, better work on your behalf. One of the best ways to do this is to simply call any of the HBA staff or stop by and let us know how we can help. In conjunction with the National Association of Home Builders the HBA of Kitsap County is conducting a membership drive this month and will be awarding prizes for members who get their boots on the ground and recruit new members. Remember to think of those you know that can not only benefit by becoming members but, who will really get engaged and help make for a well-rounded membership for years to come. One of the things I enjoy most about our organization is the diversity of its membership and I am convinced that without it we would not be as influential as we are.

Register Now for the Next International Builders Show! The National Association of Home Builders (NAHB) will again be co-locating the International Builders Show with the National Kitchen & Bath Industry Show (KBIS) in Las Vegas from January 19- 21, 2016. This annual event will offer more than 400,000 net square feet of exhibits and 1,300 manufacturers and suppliers. IBS combined with the KBIS will offer you the information about the most in-demand products and services on the market today. Over 125,000 builders, contractors, remodelers, designers and all other types of trades will gather in Las Vegas for this event. Get all the registration information by visiting www.buildersshow.com or going to the HBA website (www.kitsaphba. com) and using the IBS link on our home page (lower right corner). Anyone in the industry, member or not, is encouraged to make this trip. IBS is not to be missed! Voter Registration Deadlines for 2015 General Election Oct. 16: Ballots mailed to registered voters Oct 26: Deadline for in-person NEW WA State Voter Registrations Nov 3: General Election Day Note: If you are a registered voter but missed the deadline to update your address, you can still vote. Contact the county elections department where you are CURRENTLY registered to request a ballot.

A summary of the pending changes can be found in your September 2015 edition of the BIAW’s Building Insight newsletter. All HBA members should be receiving this in their regular mail. The HBA will be holding a briefing for our members here in Bremerton on October 8 at 4pm. Please register on our website at www.kitsaphba.com. If you would like to submit written comments please sent your remarks to SBCC, PO Box 41449, Olympia WA 98504 or via email to SBCC@ga.wa.gov. All comment is due no later than October 23, 2015.

HBA ANNUAL General Membership Meeting Thursday, October 8 – 11:15am to 1pm All HBA members are encouraged to attend the annual General Membership Meeting and luncheon scheduled for Thursday, October 8 at the Kitsap Golf & Country Club. Don’t miss out on a chance to get to know another HBA member. We encourage members to do business with members. New to the HBA? Be sure to attend. We always recognize our new members and will encourage others to make a connection with you. Per the HBA Bylaws you will receive the official meeting announcement by mail. The mailer will include the slate of 2016 Officers and Directors as approved by the HBA Board of Directors. Nominations will be accepted from the floor. If you have an interest in making a nomination from the floor please call Teresa Osinski at the HBA office in advance of the meeting so staff can be prepared with all necessary paperwork at the event. Again, watch your U.S. Mail for the official notification of the meeting and be sure to register. You can register by going on our website at www.kitsaphba.com and navigating to the calendar on the Events & News page. You can email hbaevents@kitsaphba.com, or call us at 360-479-5778. This is a BUILD Your Network event and we hope to see as many of you there as possible. All Businesses Can Make the HBA Their Business! Did you know that being a member of a respected trade association like the HBA of Kitsap County is good for your business? It gives the public greater access to you and tells them that you care about your profession and our community. The HBA has been promoting the construction industry in Kitsap County for 60 years! With leveraged buying power, product rebate programs, networking, and so much more, why aren’t you a member? What do you buy that is less than $2.00 per day? You can receive priceless industry advocacy support (local, state, and national) for your investment of just $1.56 per day! As a member you can get a quarterly rebate on name brand products; possibly hundreds of dollars back to you, for an investment of just $1.56 per day. Help us help you! Call for information.

Government Affairs Committee

According to a new study 26% of employers could face the ‘Cadillac tax’ on their health insurance policies.

Jim Ullrich, Ullrich Contracting Inc.

By the people, for the people American exceptionalism what is it? Is it true today? Will it be true tomorrow? Was it ever true? These are all questions that each of us has to answer for ourselves. The answers seem obvious to me, especially as someone that grew up during the Iron Curtain era. I remember quite well a time when there was a country that had to keep a fence around it, not to keep people out but to keep people in. In that country, there were guards that shot people trying to escape íts totalitarian socialist regime; a place where people built tunnels or other ingenious routes to escape. I remember quite clearly the communist regimes around the world killing people by the thousands that merely wanted freedom. Freedom, that until recently, we have enjoyed since the inception of our country. We are supposed to have freedom to say what we want, to do business with whom we wanted or not do business with whom we want. Now the government wants to force people to do business with whom it thinks you should. The government wants to pick the winners and losers. We had a press that was a watch dog of our government but now is its lap dog. We had an education system that we could be proud of, and now we have to reduce the acceptable skill level in order to get a large portion of the kids to be able to graduate. And so, many of them graduate with a fraction of the skills that kids 25 years ago graduated with. And the biggest loss in the education system is the loss of the ability to think critically, to know what you believe and why. Now the government funded schools will tell you what to believe and you don’t need to know why. This doesn’t sound exceptional except that the thing that made it exceptional was the freedoms that were instilled in its people. These were the freedoms bestowed by God not government. That spark can be rekindled and the freedom loving people can take control of this country again, if we act soon. This country was not created with a ruling class and we can’t let it gain control now. When this country was started it was exceptional in that it gave power to the people. It was the people that built it into a powerhouse. It was the people that overcame great diversity by coming together and making a difference. America was once the great melting pot. When people came here they became part of the whole. That synergy enabled the U.S. to become great. But now, under our current regime our country has become fractured, divided by race, divided by age, divided by how much one earns and divided by religious belief. We are leaving our Judeo-Christian values behind as if that was what was holding us back when actually our values were what made us an exceptional country. So yes, it was exceptional and can be again. But we must turn our backs on the belief that everything is about us, the every man for himself mentality. We need to roll up our sleeves and get to work. We also need to work to find the best people to represent us in our government because we are government by the people for the people.

Candidate Endorsements The Affordable Housing Council of the HBA of Kitsap County has begun endorsing candidates running for public office. At this time the following candidates have been endorsed by the HBA. Richard Huddy, Bremerton City Council Greg Wheeler (Incumbent), Bremerton City Council John Clauson (Incumbent), Port Orchard City Council Cindy Lucarelli (Incumbent), Port Orchard City Council Shawn Cucciardi (Vacated Seat) Port Orchard City Council Rob Putaansuu, Port Orchard Office of Mayor Connie Lord (Incumbent), Poulsbo City Council Kenneth Thomas (Appointed Incumbent), Poulsbo City Council Interviews continue and are open to all current HBA members. Remember the general election is Tuesday, November 3, 2015.

There has been a lot of scrutiny recently over the so called “Cadillac Tax” which continues to be a very controversial part of the Affordable Care Act. According to a recent Kaiser Family Foundation report, roughly 25% of employers offering health insurance plans could potentially face the dreaded “Cadillac Tax” if they do not make changes between now and 2018, when the law is scheduled to take effect. For a quick refresher, the Cadillac tax is essentially an excise tax of 40% imposed on employers who offer an employee plan that costs more than $10,200 a year for an individual or $27,500 for family coverage. The 40% tax is imposed on the dollar amount that exceeds these thresholds. The law’s creators placed the “Cadillac Tax” provision in the Affordable Care Act with the clear goal of attempting to slow the trend of rising health care costs by encouraging employers to offer more affordable plans. Typically, that means higher deductibles to keep cost increases modest. This means that employers need to be thinking through how to best position their plans now to stay out of trouble in 2018. Specifically, that may mean another look at an HSA plan or exploring plans with “narrow networks.” There is a significant amount of bipartisan support to repeal this provision of the law before 2018, but if it does come in to effect, make sure you connect with our team at the BIAW Health Insurance Trust to best position yourself and your employees to avoid any unnecessary taxes as a result. They have a wealth of resources on this and many other health care reform related topics to keep you in compliance for 2016 and beyond.

Join the HBA today! The HBA of Kitsap County has been serving the Kitsap County area for 60 years. All businesses in our community have a place at the HBA. For the investment of just $557 you receive 12 months of membership, listing on our website that is fully searchable by other members and the public, a listing in our annual printed directory (provided to each member and handed out to hundreds of Kitsap area consumers), access to leveraged buying power for your wireless service (all major carriers), shipping discounts from UPS, vehicle (personal or fleet) discounts from GM, rebates on major brands used on your projects (including Timbertech®, Heatalator®, Delta®, and so many more), and the possibility of enrolling in the Return on Industrial Insurance Select® program which may get you a refund of a portion of your annual premium paid to the Washington State Department of Labor & Industries. Members have access to each other too! Attend affordable events, meetings, and socials. Send members special offers (member to member), build your network of local firms! Join today! We are working on behalf of Kitsap’s business community every day. As the largest business trade association in Kitsap County, your investment goes a long way to helping you and helping your industry. Call Jenn Phillips at the HBA to learn more! 360-479-5778. Join in October and save $50 on your membership fee!

WELCOME NEW MEMBERS Floor Decorators Carpet One Dave Taylor 4535 Auto Center Way Bremerton, WA 98312 (360) 479-3463 (360) 377-6691 Fax Dave@ﬂoordecorators.com www.ﬂoordecoratorscarpet1bremerton.com

Built Green® Orientation – A requirement for all our builders certifying homes Built Green in Kitsap County. The Home Builders Association of Kitsap County has adopted a new Residential Built Green checklist for Kitsap area contractors building homes in the Built Green program. This new checklist is the consolidated checklist created by the Built Green Washington Board. It allows builders a common checklist and scoring system for their projects. This is particularly useful when building in more than one jurisdiction.

And the SPIKE goes to….. TJ Erickson Kitsap Sun

A new feature for Kitsap is 3rd Party Certification. Under the newly adopted program, contractors will be able to garner up to 5 Star certification for their projects (historically, Kitsap has had a 3 Star maximum). To get 4 or 5 Star levels, contractors will be required to hire a 3rd Part Certifier to participate throughout the construction phase and verify the items on the checklist are being incorporated in the project as identified by the builder.

NEW Afﬁliate Member Margit Glenn Visionarch, LLC PO Box 147 Port Orchard, WA 98366 (360) 769-6218 margit@visionarchllc.com www.visionarchllc.com And the SPIKE goes to….. Thomas Glenn Visionarch, LLC

All Built Green contractors must attend an orientation to submit under this new checklist. You must take the orientation class in order to submit for certiﬁcation. The HBA will be holding an orientation on Monday, October 26 at 3pm at the HBA. Kitsap’s Built Green Chairman, Walter Galitzki of Sun Path Custom Construction will be leading you through the checklist and facilitating a conversation about ways to meet the requirements of the various star levels. Please register with the HBA on our website at www.kitsaphba.com, email at hbaevents@kitsaphba.com, or calling at 360-479-5778. The class is free for HBA members and $50 for non-members.

THANK YOU RENEWING MEMBERS 34 Years Viking Fence Company Over 30 Years Port Orchard Sand & Gravel Co Inc. (32) Over 20 Years Sun Path Custom Construction Inc. (26) Over 10 Years Eagle Home Mortgage (15) Kimco Plumbing Inc. Peninsula Rooﬁng LLC Coldwell Banker Park Shore Real Estate

10 Years 1st Choice Housekeeping Inc. Quadrant Homes Over 5 Years Templeton Horton Weibel PLLC (9)\ Port Orchard Plumbing & Heating Inc. (9) CleanSpace Northwest Inc. Amalani LLC

5 Years Hanley Construction Inc. Over 1 Year Lexar Homes (4) Gale Contractor Services (4) PHC Construction LLC One Year Waterman Mitigation Partners Sound West Group

THANK YOU SUPPORTERS! We thank our recent sponsors and dedicated volunteers that helped to pull off another great showcase of professional Kitsap area service providers at our annual Peninsula Home & Remodel Expo! We depend on you and we thank you! Please do business with these members when you can! Their generous contributions help the HBA work for the industry.

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Jodi Jackson

Senior Financial Advisor U.S. Bancorp Investments 253.853.8089

Private Banking Relationship Manager U.S. Bank 253.853.8095

Real Progress

Hammocks and walks on the beach are great daydreaming fodder, but they don’t help when it comes to retirement planning. We focus on establishing tangible goals for business owners. Then we craft plans and monitor the progress. But first, U.S. Bank and U.S. Bancorp invite business owners to visit a branch or call our financial professionals today. Visit usbank.com/retirement

Investment products and services are: NOT FDIC INSURED NOT A DEPOSIT

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RealSteps>Retirement® is a registered trademark of U.S. Bancorp.

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For U.S. Bank: U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments. Credit products are offered by U.S. Bank National Association and subject to normal credit approval. Deposit products are offered by U.S. Bank National Association. Member FDIC.

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| Wednesday, October 7, 2015 |

Longtime family business makes transition to new owner ■ Third-generation owner of Dahl Glass says it was right time for sale to right buyer

Gabe Rees, left, and Kevin Dahl are reﬂected in a mirror at Dahl Glass in Twelve Trees Business Park. MEEGAN M. REID / KITSAP SUN

He was part of a commercial real estate development company until “we got clobbered pretty hard during the recession,” Rees said. “For the last eight years I worked for a small, closely held investment group, with a fairly diverse group of holdings.” His primary focus most recently was the acquisition of Architectural Door & Hardware in Billings, Montana. Rees oversaw expansion of the company to Casper, Wyoming, and Coeur d’Alene. By Tim Kelly

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

Plenty of family businesses don’t survive through third-generation ownership, but Kevin Dahl was determined to keep that from happening at Dahl Glass. And he did, building the company back up after losses during the recession that might have spelled the end of the business his grandfather started in Silverdale in 1946. Now, however, the thirdgeneration owner — who used to walk down the hill from Central Kitsap High School to work at Dahl Glass in the 1970s — has decided it’s time to move on. He recently sold the business to Gabe Rees of

Coeur d’Alene, Idaho, and Dahl is going to work as a real estate agent with Windermere in Silverdale. The decision to sell to someone outside the family was “a huge step,” he said. “I had to really think about this a long time.” Dahl, 54, ﬁrst explored selling the business six years ago, but the economy was still in a downturn and he decided to wait until his company and the economy were on solid footing again. As those conditions emerged, Dahl said his decision to make a career change also was prompted by personal reﬂection after he lost a close friend. “The biggest thing for me was I lost my best friend to West Nile virus,” he said, referring to the June 2014 death of Rory Stevenson.

“What that did for me was put things in perspective about how short life can be. “You ask yourself, are you satisfied with what you’ve done in your life? I wanted a new challenge.” Going into real estate (he actually got his license three years ago) suits him because “I’m a people person,” Dahl said. At the same time, he’s looking forward to starting a new job for another reason. “What I’ve told people about being in real estate is, I’ll have an employee count of one,” Dahl said. “It’s just me, and for this chapter of my life it’s a perfect ﬁt.” Rees said he was ready for the challenge of owning a company after spending several years running companies for investors.

His desire to advance coincided with Dahl’s readiness to ﬁnd a capable buyer for his business. “I wanted something that I actually own, and for a little over a year I looked for a business that suited me,” Rees said. He wanted to stay in the Northwest, and Dahl Glass ﬁt the bill. “Kevin was running a really tight business, with good employees, and a good opportunity in the marketplace,” Rees said. Dahl, who worked three years doing commercial glass installations with his brother after graduating from Washington State University with a degree in economics, bought the business from his parents in 1992. Under Dahl’s management the company saw a substantial increase in annual sales and at one See DAHL, 32

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28 | Wednesday, October 7, 2015 |

Trading Places: Front Street shops, shopkeepers reshuffle By Tim Kelly

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

PHOTOS BY TIM KELLY / KITSAP PENINSULA BUSINESS JOURNAL

Alisa Erickson stops while walking her Corgis to talk with Patty Fliege, left, and Lisa Nelson as they paint the front of the a building in downtown Poulsbo. Nelson’s daughter, Brie Coultas, is preparing to open a baby and toddler clothing store called Barna & Co in the building.

Kay Mork recently moved her Modern Mercantile boutique from a small space down the block to a 900-square-foot space she and her husband remodeled at 18846 Front St. in Poulsbo. It was formerly the location of Kitchen Karousel, which closed this summer.

A reshuffling of shops and shopkeepers is rearranging the lineup on Front Street in downtown Poulsbo. The dominoes that started the recent sequence of merchant moves this summer were the closure of Kitchen Karousel, which Sharon Lucas had operated for 20 years, and relocation of The Curious Child to the south end of the bustling street along the waterfront. The Kitchen Karousel vacancy was ﬁlled by Kay Mork, who wanted to expand her Modern Mercantile boutique. Mork, who opened her shop four years ago in a tiny 270-square-foot corner nook in the building at 18864 Front St., moved down the block in August to the more spacious location at 18846 Front St. Around the same time, Risa Owen was in a job transition after the Bainbridge Island business where she worked was sold and was relocating to Bellevue. Owen and her husband, Doug, are the

longtime owners of Cargo Hold, a maritime-themed gift shop in the same Front Street building where Modern Mercantile had been. Owen said she was sad that Kitchen Karousel closed because she felt a shopping area like downtown Poulsbo needed a kitchen shop. So she decided to open one in the available spot by Cargo Hold. “It was just like it was meant to happen; everything fell into place, with the timing of it,” Owen said. She got to work as soon as Mork moved out, and opened her new shop, Salt Kettle, just ﬁve days later on Aug. 15. Salt Kettle’s inventory isn’t as extensive as what Kitchen Karousel had, but the small shop offers a selection of basics and specialty kitchen, grill and barware-related items. “I’ve heard really positive feedback,” said Owen, who noted that downtown Poulsbo saw a particularly busy summer. “Everybody’s pleased that Poulsbo has a kitchen shop again.” Mork is likewise pleased with Modern Mercantile’s new larger location. “My husband and I totally remodeled the whole building,” she said. “We brought in a lot more clothing and jewelry, more of everything” in the 900-square-foot space, she said. Notable additions are custom light ﬁxtures hanging from the shop’s high ceiling. “We specialize in lighting,” Mork said, but they didn’t have room for display space in the smaller shop. She and her husband, Bo Blakey —previous owners of Cups Espresso downtown — plan to add wine sales next year and have tastings in a space at the back of their boutique. Brie Coultas is another shopkeeper in transition. She’s been the manager of Indigo Plum clothing store, but after seven years there Coultas is preparing to open her own store called Barna & Co at 18927 Front St.

Salt Kettle is a new specialty kitchen shop in Poulsbo that Risa Owen opened recently in a small space adjacent to Cargo Hold, a maritime-themed gift shop Owen and her husband have owned on Front Street for 24 years.

That building was subdivided into two spaces after The Curious Child moved out. The new tenant in the other half is vintage store Found, which Raejean Barone opened in the Manette district of Bremerton in the summer of 2014. Barna will sell baby and toddlers’ clothing and some maternity apparel in the approximately 600-square-foot space that Coultas and her husband remodeled. Barna means “child” or “children” in Norwegian, said Coultas, who hopes to have the store open in early October. “I just felt like we were missing that down on Front Street,” Coultas said. “People kept coming in (at Indigo Plum) and saying you can’t get a gift for a baby down there.” The idea to ﬁll that niche herself “just kind of came to me over the summertime,” she said. “Honestly, it just kind of popped in my head one day. I saw the space was open and that it was divided in two spaces.” Coultas plans to run the store mostly by herself, with some help from her mother and her daughter.

Where Business & Community Become One...

GREATER POULSBO CHAMBER OF COMMERCE

KEYNOTE SPEAKER: Sen. Christine Rolfes DATE: Wednesday, October 15th TIME: 11:30am â&#x20AC;&#x201C; 1:00pm PLACE: Gateway Fellowship Poulsbo

Mark W. Costa

Greater Poulsbo Events Calendar Business U Constant Contact presents: â&#x20AC;&#x153;Put the Power of Email to Work for Your Businessâ&#x20AC;? 7:30 - 9 am at the Kitsap Regional Library - Poulsbo

OCT 14:

October Luncheon Sponsored by Poulsbo Art District 11:30 am - 1 pm at Gateway Fellowship

OCT 15:

Los Cabos Mexican Restaurant, 18751 Hwy 305, Poulsbo 5 -7 pm

OCT 22:

Poulsbo Chamber Membersâ&#x20AC;&#x2122; Flu Shot Day Sponsored by Costco 8 - 11 am at Poulsbo Fire Department (911 NE Liberty Rd) NOT YET A MEMBER? at 360-779-4999 to learn more.

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Sponsored by: POULSBO ART DISTRICT

C H A M B E R

September Luncheon

If you have the opportunity this fall, I highly encourage you to pay a visit to downtown Poulsbo and see our new Visitor Center, co-locat

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

K P B J

The Gig Harbor Film Festival is one of the fastest growing independent film festivals in the Northwest. Enjoy an fun evening of unique films and documentaries October 15-18th.

Other Upcoming Events Public Affairs Forum Thursdays, 7:30 AM October 1, 8, 15, 22, 29

Notorious Networking Night Tuesday, Oct. 13, 5:30 PM Host: Harborstone Credit Union

Membership Luncheon Thursday, October 1st Speaker: David Israel

Business After Hours Wednesday, Oct. 28th 5:30 PM Host: The INN at Gig Harbor

Learn more at: www.gigharborchamber.net/calendar

Outgoing Board Members

New Board Members Re-Elected Board Members Lindsey Johnson

Thanks a million outgoing board members — great work!

Jason Faulkner Delphis Creative Marketing Solutions

Harbor WildWatch

Welcome new board members — we’re lucky to have you.

Janine Mott Tacoma Community College

Theresa King Financial Advisor

Mike Hemphill Alicia Klumpp Roberts, Johns & Hemphill Kensington Gardens Estate Senior Living

Terry Lee PenMet Parks Bob Felker Attorney at Law Alan Jones Access IPD

Barbara Sykes Peninsula Independent Retirement Living Mike Henery Sandcastle Toys & Tickled Pink Brian McLean Peninsula Light Company

P A R T N E R

Connect With Us

Ch-Ch-Ch-Ch-Changes…

KC Bitterman Tacoma Community College

C O M M E R C E

It turns out that an ex-convict and Gig Harbor Chamber of Commerce members have a lot in common. No wait — that doesn’t sound right. Ok, let’s start over. On October 1st board members, members and other folks convened at Canterwood Golf & Country Club for the Annual Chamber Luncheon — a perennially fun and enlightening business community ritual. Especially thought provoking was speaker, David Israel, Founder and CEO of POP Gourmet Food. First off, Chairman, Tim Lopez, and Treasurer, Mitch Anderson, shared the Chamber’s past year accomplishments and contributions, then gave heartfelt thanks to outgoing board members and introduced new board members (see sidebar below). Next up, Mr. Israel, now 54, shared his energizing personal and business story. In less than 20 years he founded and sold a business for $80 million, fought a 10-year criminal case, served 4 years in prison despite asserting his innocence, then launched Pop Gourmet Foods, a wildly successful global food brand. Those attending the event found they share common ground with the valuable life and business lessons he learned along the way.

Oct. 15-18

O F

This year’s Gig Harbor Chamber of Commerce Annual Chamber Luncheon invited members and other attendees to ﬁnd common ground with an exceptionally successful serial entrepreneur — who just happens to be an ex-convict.

WHAT’S HAPPENING NEXT?

C H A M B E R

Finding Common Ground With an Ex-Con

32 | Wednesday, October 7, 2015 |

Publisher from 24

I’ve been used to,” he said. “Self-publishing has a place, but in my world, I needed the credibility to say somebody took a chance on this. … This is going to be a legitimate business book” that’s been professionally edited and designed. “That was very important to me,” he said. “I was really pleased with the direction Ingemar and Barbara are taking this business, because it matched up directly with what I expect out of a publishing situation.” Kitsap Publishing contracts with book editors, and with Poulsbo graphic design business Fusion Creative Works for cover designs and e-books. Micro-publishing has changed the ﬁnancial side of the book business for authors like the ones the Andersons are working with. Kitsap Publishing offers contracts with varying service fees in relation to the royalties authors receive. “In the past you had to put $5,000 on the table so you can print 1,000 books or maybe 2,000,” Ingemar said. “That’s not the case anymore, because you can print 100 books, you can print 50 books, you can print one book, really, if you want to do that. “The costs are going down when you do low volume. The problem, of course, for printing on demand is, if you want to print 5,000 of these books, we would be busy about two months constantly printing, because it’s not a fast printing system.” The approach Kitsap Publishing uses for a book like Weedin’s, he explained, is to take preorders through their website and the author’s website for a couple months or so before the release date, to gauge demand for the book while printing a ﬁrst run. The publisher provides advance copies for Weedin to circulate to generate online reviews — which are particularly important for listing on Amazon.com, the largest book retailer.

Dahl

from 26 point had 22 employees, but he also took his lumps during the recession, losing the property on Clear Creek where he’d built a pair of 10,000-square-foot buildings, one for his business and one to lease. “It humbles you, and I could have rolled up the tent right there,” he said. Instead, he became a tenant in the building he previously owned and persevered, working to rebuild the business. In 2013, he moved the operation to a leased building in Twelve Trees Business Park near Poulsbo. “That was the ﬁrst time Dahl Glass has been outside Silverdale in 69 years,” he said,

“So we could have maybe 500 preorders, and by the release date we have almost 1,000 books printed, which is the minimum typically for offset printing,” Anderson said. “And you know what, with 500 (pre-orders) we can order 1,000 books, we have the funding for it already. So it’s kind of a self-sustaining system.” Weedin, as a business consultant, knows an author needs to be involved in marketing his book. He’ll take books with him to sell at conferences where he speaks. “I understand today that authors need to sell the book; I get that. We have to do our own marketing,” he said. “I don’t care if you’re dealing with McGraw Hill or Kitsap Publishing, authors have to do the marketing, and that’s what I enjoy doing, but Ingemar has really been a partner in helping to get that marketing out and going.” Weedin, who also writes a monthly column for the Kitsap Peninsula Business Journal, isn’t expecting a big payday from his book; rather, he’s hoping it sells well enough to attract more clients for his consulting business. However, he understands his obligation to the publisher, because “they have an investment in me, in this book.” His measure of success for Unleashed (which is Weedin’s second book, not counting a self-published anthology in 2013) would be to sell 10,000 copies in the ﬁrst year and a half. Anderson would be pleased to hit that goal. “How realistic it is, we will see,” he said. “Dan’s book, it’s one of our best books, I have to say, from a quality perspective.” The author said he recommends Anderson’s micro-publishing operation to colleagues who are working on book projects. “I’ve been telling them this is a great situation, you work directly with the publisher instead of going through an agent,” Weedin said. “It’s an opportunity to have a publishing contract to get your book out in front of people in a commercially published situation.”

New chip card technology and your business

though it’s proved to be a good location. His company’s recent notable projects included the new Harrison medical building on Bainbridge Island and the extensive remodel of the island’s iconic Town & Country grocery store. He feels like the company Rees is taking over is in good shape, and the new owner is keeping all 15 employees. “I was ready for a change, and I felt that with the economy coming around, and the way I’ve built the business up … I thought with the right owner it would have the best opportunity to be successful,” said Dahl. “And I think he will be.” Rees said he wants to keep the company growing, and he’s already arranged some limited distributorship deals for Dahl Glass

to offer doors and hardware from his former company. He acknowledged some concern about taking over a business that had been operated for so long by a family with deep roots in the community. “Honestly, I was concerned about that coming in, but so far it has not been an issue,” Rees said. Dahl,whostayedonafewweeksafterthe sale to help with the ownership transition, said even though he’d owned the company for 23 years, he wasn’t sure how his parents would react to his decision to sell it. “They spent an awful long time in the second generation keeping it going,” he said. Although Dahl conﬁded that he had ﬁred

U.S. Small Business Administration

U.S. credit card companies are making the transition from magnetic stripe technology to cards with chips. Chip cards are payment cards that have an embedded chip, offering increased security when your customers use the chip to pay in store. Chip cards are based on a global card payment standard called EMV, which stands for Europay, MasterCard and Visa, currently used in more than 80 countries around the world. The United States is now in the process of making the migration to EMV technology. In an effort to reduce fraud, EMV chips are becoming the standard for integrated circuit cards (IC cards), IC card-capable point-of-sale terminals, and automated teller machines. Chip card transactions offer advanced security for in-store payments by making every transaction unique. Chip cards are also much harder to counterfeit or copy. If the card data and one-time card are stolen, the information cannot be used to create counterfeit cards and commit fraud. For merchants and ﬁnancial institutions, the switch to EMV means adding new in-

Haggen from 30

on Bethel Road in Port Orchard. The SilverdaleandPortOrchardstoresswitchedtothe Haggen Northwest Fresh brand in March, followed by the East Bremerton store in June. Haggen retained existing employees. Rumblings of trouble were heard over the summer as multiple media outlets re-

store technology and internal processing systems. To get chip-enabled for your business, contact your acquirer or payment services provider. The switch to EMV also means a change in liability for credit card fraud. Today, if an in-store transaction is conducted using a counterfeit, stolen or otherwise compromised card, consumer losses from that transaction generally fall back on the payment processor or issuing bank, depending on the card’s terms and conditions. Beginning Oct. 1, a deadline set by major U.S. credit card issuers including MasterCard, Visa, Discover and American Express, the liability for card-present fraud will shift to whichever party is the least EMV-compliant in certain fraudulent transactions. SBA Webinar Presentations on EMV • Oct. 14 at 11 a.m. PDT — EMV 101: What Small Businesses Need to Know About the Switch to Chip Card Technology. Registration is free but required, check sba.gov for more information. • View an Aug. 26 archived version of this webinar at https://www.youtube.com/ watch?v=GqlI3E0yzH0&feature=youtu.be. You can also download a copy of the presentation at https://www.sba.gov/sites/default/files/files/EMV_101_Final.2_1.pdf. Additional Resources • To learn more about the EMV transition and new liability rules, view a video presentation at https://www.youtube.com/ watch?v=tdxOBqk5DyI&feature=youtu.be. ported Haggen was struggling to compete in its new Southwest markets. Haggen announced an initial wave of 27 store closures in August. On Sept. 1, Haggen sued Albertsons for $1 billion, claiming Albertsons sabotaged its expansion effort. Haggen ﬁled for bankruptcy protection soon after. A full list of proposed store closures can be found at www.haggen.com.

his mother during his ﬁrst year owning the business because of differences over how he wanted it to grow, he said when he talked with his parents about his plans to sell, they were supportive. Dahl expressed his appreciation for his employees and customers, and for the community support that helped his family business weather the tough times. The fourth generation — his two daughters and a son — weren’t groomed as heirs to the business, and they’re headed toward their own careers that are likely to take them away from their hometown. That’s ﬁne with Dahl, though he’s proud of his part in the Dahl Glass heritage. “My name’s still on the truck,” he said, “so it means a lot to me and always will.”

Greater Kingston Chamber of Commerce & Visitorâ&#x20AC;&#x2122;s Informa on Center K P B J

WELCOME NEW PATRON MEMBER!

C H A M B E R

VP-Bim Prince, VP-Clint Boxman (360)297-4848 The La tude 48 Group brings together four experienced ďŹ nancial advisors and three assistants as a true team oďŹ&#x20AC;ering smart ďŹ nancial strategies. Our goal is to provide individuals and families with personalized care, informed investment strategies, and sophis cated Financial Planning advice to help preserve, protect, and improve the quality of lives now and for genera ons to come. Please call for your complimentary ďŹ nancial or re rement review today.

The Real Value of Joining a Local Chamber of Commerce

O F

Being ac ve in the local chamber of commerce is an eďŹ&#x20AC;ec ve business strategy. It communicates to consumers that a company uses good prac ces, is reputable, cares about its customers, and is involved in its community. According to a recent study by The Schapiro Group: When consumers know that a small business is a member of the chamber of commerce, they are 49% more likely to think favorably of it and 80% more likely to purchase goods or services from the company in the future.

Greater Kingston Events Calendar Oct. 6th:

Kingston Cove Yacht Club 11:45am-1pm

Oct. 7th: Black & White Dinner at the Axe Handle Restaurant 6-9pm Tix at Chamber

Oct. 8th: Kingston High School Home Coming Parade & Dance, Port of Kingston 5pm-9pm

When consumers know that an insurance company is a member of the chamber of commerce, they are 36% more likely to think favorably of the company.

If a company shows that it is highly involved in its local chamber (e.g. sits on the chamber board), consumers are 10% more likely to think that its products stack up be er against its compe on.

When a consumer thinks more favorably of a company because the company is highly involved in its local chamber of commerce, it is because he or she infers that the company is trustworthy and cares about its customers. The way we do business is forever evolving and the posi ve impacts of chamber membership have remained the same and even increased over me.

INTERESTED IN MEMBERSHIP? Contact our Chamberâ&#x20AC;&#x2122;s Execu ve Director, Colleen Carey by phone or email. Mon-Fri 10am-2pm 360-297-3813, director@kingstonchamber.com

Oct. 8th: Chamber Aďż˝er Hours hosted by Kitsap Bankâ&#x20AC;&#x201D;Kingston Branch 5-7p,m Oct. 10th : Village Green Harvest Fes val Village Green Park, W.Kingston Rd. All Day Oct. 23-30th : Spirits & Spiritsâ&#x20AC;&#x201D;A celebra on of North Kitsapâ&#x20AC;&#x2122;s best Booâ&#x20AC;&#x2122;s & Booze! www.spiritsandspiritsfest.com

P A R T N E R

When consumers know that a restaurant is a member of the chamber of commerce, they are 68% more likely to eat at the franchise in the next few months.

C O M M E R C E

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| Wednesday, October 7, 2015 |

Business Briefs Grow Community builder PHC earns Green Hammer award

ond phase, the Grove, will see the ﬁrst residents move in this fall. The Grove has homes for sale and for rent. The Built Green program is designed to help buyers ﬁnd quality, affordable homes that protect the

For the second straight year, PHC Construction has earned the prestigious Built Green Hammer Award for Grow Community, a Bainbridge Island housing development. Sponsored by the Master Builders Association, the awards recognize environmentally sustainable residential projects. Grow Community earned top honors in the Builder, Multifamily 1-50 Units category. The award was preCOURTESY PHOTO sented this week at the Grow Community on Bainbridge Island annual Built Green Conference at Shoreline Com- health of their families and the munity College. Northwest environment. Built “We’re doubly proud to win a Green homes are designed to proBuilt Green Hammer Award for vide homeowners with comfortthe second year in a row,” said able, durable, environmentally Marty Sievertson, one of the friendly homes that are cost-efprincipals in PHC. “Our goal has fective to own and maintain. always been to show what’s posFor more information: www. sible in top-quality, environmen- builtgreen.net, www.phc-contally conscious construction.” struction.com, www.growbainThe Grow Community’s sec- bridge.com, www.asanillc.com.

Disability from 34

EPO effectively turned the process inside out. They didn’t start with a job description and hope they could attract someone with a disability. They engaged Trillium to help them see where positions could be created and then to ﬁnd the right person with the necessary skills. “We really had those two needs, and they ﬁlled a gap that we had,” Hulbert says. He recommends that other schools and businesses “really identify what you need, and then there are individu-

als out there that can help ﬁll those needs. Think outside the box sometimes, because then it’s a win-win for everybody.” And as a school preparing students for success in the real world, “It’s good for our students to embrace diversity, and it’s a good example … for all of our students here that it’s a diverse population and we embrace and work with everybody,” he says. Engaging a specialized employment agency to help companies recruit employees with disabilities not only helps ﬁll labor gaps and meet diversity goals, it can be the solution that helps your business

Greendrinks event set at Kitsap Credit Union in Silverdale The monthly Silverdale Greendrinks will be Oct. 7 at Kitsap Credit Union, 2041 NW Myhre Road in Silverdale. The designated nonproﬁt for the October gathering is the Kitsap Food Backpacks 4 Kids program. Admission is $10 at the door, with catering provided by The Chipmunk Grill at Harrison Medical Center. Participants are encouraged to bring their own beverage glasses to the event, which as always will run from 5:24-8:03 p.m. To sign up for the gathering or to join the email list, send an email to rsvp4silverdalegreendrinks@gmail.com.

Blue Frog Solar partner rebrands as APsystems Poulsbo-based solar technology company APS — a partner with Blue Frog Solar — is now APsystems. The company said its brand re-

shift from good to great. There are several other local companies that can and have testiﬁed to this. As one business manager, Wayne Harris (assistant store manager of the Silverdale Costco) says, “All it takes is a leap of faith. The reward greatly exceeds any effort” • Jaymie Heberlein is a senior employment counselor with Trillium Employment Services, which specializes in providing job opportunities, training and retention for adults with disabilities. If your business is interested in learning more about these services, call her at 360698-6659.

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ﬁnement highlights its commitment to powerful alternative energy solutions, and its evolution from a product-oriented portfolio to a whole-systems innovator. The phrase “Altenergy Power,” a nod to the company’s original legal name, will appear beneath APsystems in the company’s new mark. Blue Frog Solar in Poulsbo manufactures and distributes the APsystems YC500 microinverter under license.

way they want to, whether that be in their local branch, online, over the phone or, now, on their smartphone,” said David Devine, senior vice president and marketing director. Tacoma-based Columbia Bank has been serving the Northwest since 1993, and has more than 150 banking offices and branches in Washington, Oregon and Idaho. For branch locations and more information, visit www.columbiabank.com.

Apple Pay available at Columbia Bank

Aerospace group to hold annual meeting

Columbia Bank has announced that its customers will have access through personal and business cards to Apple Pay, the mobile payment service from Apple. The service will offer Columbia Bank’s customers the ability to conveniently make purchases in a single touch while maintaining security and privacy. Customers can add their bank debit and credit cards to Apple Pay and use their iPhone 6, iPhone 6 Plus and Apple Watch to pay in person anywhere they see a universal contactless acceptance symbol. “Apple Pay is one of the ways we’re helping Columbia’s customers manage their money the

The Kitsap Aerospace and Defense Alliance will hold its annual meeting Oct. 8, from 3-6 p.m. in the Avian Flight Center at Bremerton National Airport, 8900 State Route 3. The meeting’s theme is “Embracing Aerospace & Space: Kitsap’s Opportunities.” Tom Captain, vice chairman for aerospace and defense at Deloitte LLP, will be the featured speaker. He will share his insights and suggestions regarding Kitsap’s competitiveness in the aerospace and space industries. The event is free and open to the public, but preregistration is required at http://kada2015.bpt. me/.

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38 | Wednesday, October 7, 2015 |

BUSINESS COMMENTARY | DON BRUNELL

Washington Business Week still changing lives at 40

n the early 1970s, a small group of Washington business leaders led by Yelm grocer Hal Wolf decided it was time to integrate business owners with high school students. They realized that our free-enterprise, market-based economic system would not survive unless it was reinvigorated with a consistent injection of young entrepreneurs. At the time, our nation had been deeply divided by the Vietnam War and an anti-establishment, anti-business fervor. Wolf, a state legislator, saw trouble ahead for our way of life. Central Washington University president Jim Brooks shared that fear, and together they launched Washington Business Week in 1975. The Association of Washington Business, our state’s

chamber of commerce and manufacturing association, became the sponsor. In selling the idea to AWB’s board, Wolf and Brooks had to answer the question: What does business have to do with education? Their answer was, “Everything.” The success of any business depends in large part on having skilled, knowledgeable and motivated employees. And motivated employees can use their knowledge, skills and work experience to climb the economic ladder and build a secure future for themselves and their families. To Wolf and Brooks, putting business owners with high school students was a learning opportunity for both, and it helped ensure that our way of life would be handed down from generation to generation. Students learned hands-on

Powers from 37

that are rapidly arising as a result of Kitsap’s relationship, proximity, balance and access to the dense, and very expensive, heart of the regional real estate market centered in Seattle. Many business leaders and property owners are generally aware of conditions in the local real estate market being much improved since the substantial downturn in 2008; but, few are knowledgeable regarding the speciﬁc market dynamics behind current fast-moving forces that are fueling one of the hottest regional real estate markets in the United States. Attendees will come away from this program better understanding why Kitsap County is projected to welcome an additional 60,000 residents by 2030; and know why we are well positioned to take advantage of the regional economic boom and increase our employment base by over

about running a business. In the process, they met other students from around the state and let their creativity ﬂow. For business leaders, it was a chance to get to know the next generation of entrepreneurs and inspire them to take a risk and go into business. Washington Business Week started as a one-week summer camp on the campus of Central Washington University in Ellensburg. High school juniors formed 10-person companies with a business leader assigned to each group. In simulations, they developed innovative products or services and marketed them using business principles. After a few days, the students — most of whom had never been on a college campus — became inspired and excited by their own accomplishments and the realization that they had the power to change their lives for the better. One student who had never

25 percent during that time horizon. We will explore the data behind why our Kitsap real estate is healthy and growing stronger, and why local real estate, when compared with adjacent communities, enjoys a distinct competitive advantage for all those who invest in Kitsap’s future. Whether a business owner, landlord, investor or just a real property occupant (owner or tenant) you will glean valuable information that will prepare you to better utilize, manage, invest in or develop real estate in our local and regional market. So I invite you to join us on the afternoon of Oct.22 to take a look, a close look, at the future of real estate in Kitsap and this very special place we call home. For more information, and to register for the program, go to our website: keda2015.bpt.me. I look forward to seeing you on Oct. 22. On Kitsap ! • John Powers is executive director of the Kitsap Economic Development Alliance.

considered college said his experience at Business Week had opened his eyes to new possibilities. “Now, I can’t wait to go to college.” Another said, “No matter what I do in my life outside Business Week, Business Week has taught me how to do better.” That is called “The magic of Business Week.” It worked then and it still does today. Over the last 40 years, Washington Business Week has spread to Gonzaga, Western Washington and Paciﬁc Lutheran, as well as to 22 other states, Australia and Poland. Business Week started during the Cold War, ﬁve years before Lech Walesa climbed atop the gate at Gdansk’s Shipyard in Poland and sparked a workers’ revolution. Walesa and his fellow shipyard workers captured worldwide attention and shook the foundation of the Communist

regimes behind the Iron Curtain. In Poland at the time, capitalism was forbidden and the Communist party bosses controlled everything. People starved and agriculture and industrial output was dismal. Today, Poland has one of Europe’s strongest economies and shopping in downtown Warsaw is like going to a modern mall in Spokane. Polish leaders like Gdynia Mayor Wojciech Szczurek embraced Business Week to give Polish students the chance to experience the rewards of the free enterprise system. JustasthefoundersofWashington Business Week saw education as the key to our future 40 years ago, we all need to remember that education and entrepreneurship are joined at the hip. They need one another more than ever in this fast-paced, global economy. • Don C. Brunell is a business analyst, writer and columnist. He retired as president of the Association of Washington Business, and now lives in Vancouver. He can be contacted at theBrunells@msn. com.

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