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IN THIS ISSUE...
SHORTAGE
Whatcom County needs double the shovel-ready industrial land to attract and retain high-wage jobs.
Bellingham business leaders launch program awarding grants to inspire and support young entrepreneurs.
All American Marine builds fuel-efficient
Beach Cat Brewing grows from Birch Bay to Bellingham, blending great beer with heartfelt community spirit.
WaTrust opens first Bellingham branch, offering personalized banking and community engagement.
City Dogs Grooming provides expert, compassionate care for canines, delighting their owners.
Jennifer Irwin turned her creative passion into Bellingham’s thriving boutique marketing agency, Swell Media Solutions.
The Way Café in Birch Bay supports community ministry through local partnerships and volunteer efforts.
Whatcom County plans a local career and technical skills center to train high school students in trades.
48North manages private aircraft for local businesses and
The Chugach Express, an advanced 84.5-foot hydrofoil-assisted aluminum catamaran, built for Phillips Cruises & Tours and designed
daily eco-tour operations in Prince William Sound, Alaska.
THINK BIG, SHOP SMALL 50years
We all need to stay engaged!
As we look toward 2026, stakeholders — businesses, policymakers, educators and community members — must work collaboratively to navigate the complexities of our local economy. We must make every effort to balance the housing crisis in our community while recruiting, retaining and supporting industries that provide good, family-wage jobs and a diversified tax base.
The National Federation of Independent Business is one of the oldest and most widely respected economic research reports in the country. The US Small Business Optimism Index reported that nationally, businesses are optimistic and are confident about expansion. In August, optimism reached its highest level in five months (100.8, the highest level in more than a year), and the percentage of small businesses expecting improved business conditions increased, with more job creators stating that the current time is a good opportunity to expand their operations. Over two-thirds of small business owners find conditions to be either excellent (14%) or good (54%), while just 4% think they are poor.
In Washington State, however, tax hikes that began in October — including an expansion of the retail sales tax on a number of business services and an increase in the business and occupation tax rate — are causing almost every industry to brace themselves for the impact of the largest tax hike in state history.
With the decline in cross-border travelers to our region and crippling budget deficits, it is more important than ever to shop local. We all have a responsibility to support our community and sustain a vibrant place to live, work and recreate. When we keep our dollars where we live and work, we are supporting our friends and neighbors and building a thriving community.
As we approach the end of 2025 and the midpoint of the decade, midterm elections are taking place. Our economic future is at a critical juncture, faced with stressors that demand our attention and strategic foresight. Whatcom County has a diverse economy rich in potential yet fraught with issues for local business and residents — burdensome taxes, over-regulation, skyrocketing cost of living, housing shortages, crime, and a fentanyl crisis. Employers in advanced manufacturing, health care, education and the public sector are currently struggling to recruit and retain staff due to the lack of housing that meets the needs of their workforce. Projections estimate 67,638 new residents in Whatcom County by 2045, requiring 36,013 new housing units. Follow the
lessons learned by Peter Frazier on Page 42 in this issue of Business Pulse, as he ponders many years of regulatory burden and regret.
This issue investigates our region’s competitiveness in keeping and expanding high-wage industrial jobs. Dig into Cheryl Stritzel McCarthy’s in-depth article with Economic Development Director Tyler Schroeder on what is severely lacking in our region. On Page 20, Cheryl salutes All American Marine — the $80 million vessel manufacturing mega-player — and its long history at our Bellingham waterfront.
Celebrate newcomer Beach Cat Brewing with Tony Moceri and pawsome City Dogs Grooming with Mary Louise Van Dyke — two local businesses enjoying their new waterfront locations. Study Elisa Claassen’s article on plans for a larger skills center in Whatcom County; and the sky’s the limit for 48North, a niche aviation management team.
Matt Benoit applauds our local “youthpreneurs” and the grants they were awarded recently for their innovation and commitment to entrepreneurship. Agriculture is facing a myriad of challenges that should be concerning to all. Fred Likkel drills into the status of the water adjudication process, which is already falling behind, on Page 47.
Tamara Loucks christens our new nonprofit feature section with a story that will warm both your heart and your hands. Read on to discover the latest policy, fi-
nance, leadership and tech columns with Mark Harmsworth, Dann Mead Smith, Elizabeth New, Tom Doll and Dana Rozier. Swell Media Solutions’ Jennifer Irwin is highlighted in this issue’s Personally Speaking interview. Please join us in welcoming WaTrust to our community and discover its outstanding financial services on Page 31.
Over the past year, our community enjoyed all that makes Whatcom County spectacular, including our sold-out Whatcom Business Awards Gala in March (2025 nominations are now open on our website), celebrating all levels of business success, from startup to lifetime achievement. Business leaders gathered for valuable insight into business practices at our May conference and socialized together at our September San Juan Cruises event.
The WBA’s Leaders of Industry forum in October (featuring keynote speaker Paul Guppy of the Washington Polic Center), brings many businesses of all sectors together to engage on issues important to our community.
We invite our readers to engage with other business owners, share insights and collaborate in shaping a resilient economic future at our December Economic Forecast Breakfast at the Bellingham Golf & Country Club on Dec. 3rd.
You will love this issue! I want to close out the year with a genuine thank you to all of our writers, advertisers, staff and supporters for making this and every issue of Business Pulse possible. We could not do this without you.
Happy Holidays!
Barbara Chase, Executive Director Whatcom Business Alliance
Whatcom Family YMCA welcomes Kait Whiteside as association director of advancement and impact
The Whatcom Family YMCA has announced the appointment of Kait Whiteside as association director of advancement and impact. In this leadership role, Whiteside will guide the Y’s strategies in fund development, marketing, communications and volunteerism, all of which are essential to strengthening our community and expanding access to the Whatcom Family YMCA’s programs.
Whiteside brings more than a decade of nonprofit leadership experience, most recently as executive director of the Max Higbee Center, where she led the organization through transformative growth. Whiteside led a successful capital campaign that secured a new program facility in the heart of downtown Bellingham as well as a comprehensive program expansion to meet rising community needs in the wake of COVID-19. In addition to her executive experience, Whiteside has contributed to the Whatcom Family YMCA as a dedicated board member for the past three years, helping shape the organization’s strategic priorities and championing its mission.
“I’m grateful and excited to join the Whatcom YMCA,” said Whiteside. “I’ve personally experienced the power of belonging at the Y, and throughout my professional career I’ve admired how the Y creates a welcoming environ-
ment for all of our community members to build connection, health and community. It’s an honor to now work in this role and further the mission and impact of the Y.”
Solar by Barron installs solar system for hosts of popular HGTV show
Solar by Barron, a division of Barron Heating AC Electrical & Plumbing, recently installed a solar system and battery backup for the home of Dave and Jenny Marrs, hosts of HGTV’s popular “Fixer to Fabulous” series.
A Solar by Barron team traveled to the Marrs’ home in Bentonville, Arkansas, installing a 52 430-watt solar panel system. The panels were manufactured by Silfab Solar, which has facilities in Skagit County and North Carolina.
Additionally, Solar by Barron installed a 15-kilowatt FranklinWH battery backup system with the goal of eliminating the couple’s entire electrical bill and adding backup power for outages.
Brad Barron, CEO of Barron Heating AC Electrical & Plumbing, met Dave Marrs about a year ago during work on a sustainability series produced by
Daikin, a heat pump manufacturer. Marrs was surprised that Solar by Barron had created efficient solar systems for clients in Northwest Washington’s climate and began to consider one for their home.
The system now generates as much energy as the family uses, essentially zeroing out their energy consumption.
But Dave and Jenny Marrs said sustainable energy wasn’t just about saving money — it was about stewardship, caring for the earth and passing those values to their children. They wanted to fully harness natural resources from their farm and create a clean energy legacy.
From classroom to career:
Lynden program opens doors in health care
September marks the three-year anniversary of Lynden Healthcare Education, which offers free nursing assistant training to Whatcom County residents. The program is tailored for long-term care certified nursing assistants to help meet the community’s health care needs.
Since its launch in 2022, LHE has graduated 140 students, empowering
The Hannah
Barron solar panels being installed on Marrs barn.
Kait Whiteside Dianne Anderson
them with the knowledge and skills to become proficient nursing assistants.
Classes are offered at no cost to select students, thanks to support provided by the Christian Health Care Center Foundation, which raises funds for educational training programs and faith-based care provided at CHCC in Lynden.
Dianne Anderson, a licensed practical nurse and an instructor in the program, was a clinical instructor of nursing at Whatcom Community College from 2009 to 2025. She taught CNA classes at Christian Health Care Center from 2016 to 2022, before the program expanded and transitioned to Lynden Healthcare Education.
“Our goal is simple: equip people with the training and confidence they need to serve in long-term care,” Anderson said. “The need for compassionate and skilled nursing assistants remains high, and we’re here to be part of the solution.”
Students consistently praise Anderson’s knowledge, clear instruction and teaching style infused with care and humor.
The program continues to see strong demand. Anderson’s experi-
ence and reputation, paired with class sizes limited by Washington state law to 10 students, mean each session fills quickly. Those interested in applying for Lynden Healthcare Education’s free CNA training program can sign up to receive an email notification when enrollment opens at lyndenhealthed. org/enroll.
All American Marine wins 2025 Ship of the Year
All American Marine has announced that the R/V North Wind has been named Ship of the Year by Professional Mariner in its annual American Ship Review, a recognition reserved for the most innovative and impactful USbuilt vessels.
This 78-foot semi-displacement aluminum catamaran, delivered to Cal Poly Humboldt, exemplifies forward-thinking design and engineering, advancing scientific exploration along the Northern California and Oregon coasts.
Port of Bellingham unveils
economic
development
strategy for Point Roberts to address unique challenges
The Port of Bellingham has unveiled a new economic development strategy for Point Roberts aimed at tackling the community’s distinctive challenges — from geographic isolation and limited infrastructure to a shrinking labor pool and heavy dependence on Canadian tourism. Accessible from the mainland US only by crossing two international borders, the small peninsula has long relied on Canadian visitors to sustain its economy. The COVID-19 border closures and shifting trade policies exposed the risks of that dependence, prompting local leaders to seek more resilient solutions.
With funding from the Washington State Department of Commerce’s Community Economic Revitalization Board, the port hired consultants to work with residents, business owners and regional partners to chart a path forward. The resulting strategy calls for revitalizing the Point Roberts Marina to expand tourism and marine trades, improving broadband connectivity, and developing a centralized sewer system to support housing and business growth. It also proposes creating a Resilience Hub to nurture small businesses and workforce training.
Other initiatives emphasize environmental and economic sustainability, including expanding cycling and pedestrian infrastructure, promoting eco- and health tourism, and enhancing local landmarks.
R/V North Wind
LHE graduates
OVER 50 YEARS...
This is the last issue of 2025, celebrating Business Pulse’s 50th birthday! Throughout 2025, Business Pulse magazine has celebrated its 50-year anniversary while highlighting companies that are also 50 years old (and older) and still doing business in Whatcom County. These are the leaders in our community, exemplifying business success and longevity, built from the ground up, formed and thriving across generations.*
*We gratefully acknowledge assistance from the Bellingham Chamber of Commerce when creating this list.
Hempler’s hemplers.com
1934
The Hempler’s story began in the early 1800s in Borken, Germany, where the family first opened its sausage kitchen. Founder Hans Hempler grew up mastering traditional recipes in the family business. In the 1960s, his son Richard (“Dick”) carried on the craft, embracing the artisan methods passed down through generations. Today, the Hempler family continues this legacy of quality, care and craftsmanship.
TODAY
Hempler’s specialty hams, bacon and sausage products have become renowned across the Northwest, living up to Hans Hempler’s original vision of quality ingredients and small-batch-crafted authenticity. Located in Ferndale, Washington, Hempler’s is committed to maintaining roots in its community and producing time-honored family recipes dating back to the 1900s.
Hans Hempler and Otto Hahnel in 1947. Photo courtesy of Hempler’s.
Ferndale office at 5470 Nielson Ave.
Photo courtesy of Hempler’s.
in Whatcom County!
Larson Gross larsongross.com
Then & now
Ted Larson founded the company in 1949. Dennis Gross joined Larson in the early 1960s, and together they built a business based on excellence, passion, integrity and trust — values still important to Larson Gross today.
LEADERSHIP
Even well into their retirement years, Ted Larson and Dennis Gross continued to have the best interests of the firm at heart. Larson would come into the office on a regular basis to meet new faces and make a personal connection with team members and clients.
Led by 16 partners and supported by a team of over 200 professionals around the globe, Larson Gross continues to value long-term partnerships built on trust, integrity and a shared vision for the future. The firm has five offices located in Bellingham, Burlington, Lynden, Wenatchee and Yakima, making Larson Gross the 10th largest public accounting firm in the Puget Sound region.
Theodore Earl (Ted) Larson (1920-2012) at his high school graduation. Photo courtesy of Larson Gross.
A grand opening in the ‘90s at 1616 Cornwall Ave. Photo courtesy of Larson Gross.
Larson Gross headquarters at 2211 Rimland Dr. in the Dorothy Haggen Building. Photo courtesy of Larson Gross.
1931
In 1931, Harry Walton and his three sons, Charlie, Eddie and Harold, founded the Walton Fruit Company in Bellingham. They transported fresh fruits and vegetables from Seattle to Bellingham by truck. In 1940, following a franchisee’s suggestion, Harold introduced 7UP, Pepsi, Dr Pepper, Mountain Dew and MUG Root beer to the company’s lineup.
TODAY
Operating from its Ferndale headquarters, Walton Beverage employs 150 people and manages 88 delivery trucks. The company services over 1,500 accounts throughout Whatcom, Skagit, Island and San Juan counties. To support projected growth, the Walton sisters have planned a 50,000-square-foot expansion that will nearly double the facility’s size. The addition will be built and finished January 2026.
John Walton points to a photo of Harry Walton, Paul Blam, Harold Walton, Jack Peoples, Charlie Walton and Eddie Walton. Photo courtesy of Walton Beverage.
Left to right: Angela Walton, John Walton, Patti Walton and Joanie Walton. Photo courtesy of Walton Beverage.
WANTED: MORE HIGH-WAGE JOBS
What’s needed to make that happen
Cheryl Stritzel McCarthy
Whatcom County needs more shovel-ready industrial land — nearly twice as much as we have now. To prosper over the next 20 years, the county is projected to require between 782 and 917 acres of “fully served” industrial land.
We currently have 485 acres.
What’s “fully served”? It means land that is:
• along truck freight corridors that connect industrial areas to Interstate 5;
• ready-to-develop, industrially zoned property within a half mile of an I-5 interchange;
• at least five acres in size, with some parcels at least 20 acres; and
• able to be coordinated among local
governments, the Port of Bellingham, and providers of water, sewer and power.
All this is from the Port of Bellingham’s recent study that identified what highwage businesses here need to grow.
Here’s the nuance in that study: Whatcom County does have enough industrially zoned land for growth through 2045, but it’s not fully served. Utility access, parcel size and transport currently limit its use.
So, work needs to be done. Tyler Schroeder is director of economic development at the Port of Bellingham. His job is to retain and expand living-wage jobs, so he has a clear understanding of what’s needed: Expand wetland mitigation, improve
freight corridor infrastructure, promote consistent regulations and preserve space for established and emerging industries.
A few obstacles
Let’s look at wetlands first — and wetland mitigation banking. That’s a system that provides for the establishment or preservation of wetlands to compensate for unavoidable impacts elsewhere.
“Nearly half of the industrially zoned land in Whatcom County has a wetland and associated buffer that can’t be developed,” Schroeder said. (The city of Bellingham is working on establishing a wetland mitigation bank.)
Next, freight corridors. The recent
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study will act as a baseline document for the future improvement and expansion of corridors, Schroeder said. This can be done through coordination with the Whatcom Council of Governments to identify a regional freight network using existing and forecast truck volumes, adjacent land use and roadway design.
What about consistent regulations and preserving space? Schroeder said the study has been received favorably by port, county and city leadership. Consistency requires aligning zoning with desired industries, prioritizing high-wage businesses, identifying allowed uses that don’t contribute high-wage jobs, and eliminating non-industrial uses in industrial zones.
One way to bring that about is a “target employment” method used by other cities. “A business could seek endorsement if they are bringing in or retaining targeted employment,” Schroeder said. “We as a community would define those targets.” If the business wins an endorsement, it could get expedited permitting, lower fees, grants or loans.
“Responsive state and local governments and expedited permitting are important for site selection for businesses and consultants,” Schroeder said.
How do we compare?
How competitive is Whatcom County in keeping and expanding high-wage industrial jobs compared to our neighbors along I-5? Compared to counties such as Clark, Cowlitz, Lewis, King, Kitsap, Skagit and Snohomish, Whatcom’s manufacturing employment is decreasing, with no new facilities for manufacturing built here since 2010. A bright spot is that Whatcom’s food and beverage processing sector is growing, supported by improvements in refrigeration and other developments in cold storage buildings, Schroeder said.
Whatcom shows a strong advantage in marine industries, with more than 6,000 jobs — including commercial fishing, trucking and logistics, recreational
“Nearly half of the industrially zoned land in Whatcom County has a wetland and associated buffer that can’t be developed.”
— Tyler Schroeder, director of economic development at the Port of Bellingham.
boating, and the chandleries and other businesses that cater to them, Schroeder said. “More than a thousand of those jobs are commercial fishing-related jobs that not only provide for fishermen and their families but also provide a bounty of wild-caught fish that Whatcom County residents enjoy at restaurants and grocery stores.”
Even the tech industry, often thought to be distant from the marine trades, is impacted by the maritime economy here. Schroeder points to the local examples of Corvus Energy, a marine battery energy storage company, and All American Marine, a commercial aluminum boatbuilder that in 2022 delivered the 70-foot Sea Change, the world’s first hydrogen fuel cell commercial ferry with that specific configuration, to the Bay Area.
In Washington, the tech and maritime industries intersect in a “blue economy,” where technology is developed and applied to improve the maritime sector.
Another economic strength in Whatcom is agriculture — especially raspberries, blueberries and dairy (or “berry and dairy,” as old-timers say).
Recent successes in Whatcom’s manufacturing growth include Marcon Metal, which has created dozens of family-wage jobs, Schroeder said. Corvus Energy established its first US manufacturing in a port-owned building in Fairhaven.
The Port of Bellingham continues to work with existing businesses, Schroeder said. “We have a couple of exciting opportunities with local businesses that we hope to be able to announce in the near future.” ■
Whatcom needs workers
Maritime business owners report ongoing labor and skills shortages. In response, the Port of Bellingham hosted a marine trades career exploration and job fair in 2024, and in May 2025, the port and partners hosted Blue Tech by the Bay, a maritime career exploration for high school students from five counties. Designed to inspire underrepresented and rural youth, the event connected students with high-wage, high-demand maritime careers vital to Washington’s economy, said Tyler Schroeder, director of economic development with the Port of Bellingham. “Whatcom County’s maritime sector supports 6,400 jobs — with more than 3,600 living-wage positions — and generates over $1.6 billion in annual revenue,” Schroeder said. “But with so many skilled workers nearing retirement, there’s an urgent need to train the next generation in trades like welding, ship fitting and marine service.”
Schroeder points to the numbers: After the Blue Tech event, 76% of attendees reported increased knowledge of maritime careers, and 41% expressed interest in follow-up opportunities.
That creates a pipeline for the future, particularly in tandem with the Northwest Maritime Apprenticeship Program, launched in part with the port’s financial support in October 2022.
“Our team can’t wait for the 2026 Blue Tech by the Bay event, and we look forward to partnering on similar workforce development with other business sectors in Whatcom County,” Schroeder said. For information, visit waterfrontfoundation.org/ northwest-maritime-apprenticeship.
YOUTHPRENUERS
Local ‘youthpreneurs’ awarded $9,000 to support their small businesses
Matt Benoit
For the past several years, three Bellingham entrepreneurs have been meeting early on Friday mornings in the forests of Sudden Valley, taking walks and talking shop.
Discussions among the three men — Isaac Burrous, co-owner of Kent’s Garden & Nursery; Brandon Nelson, local real estate agent with Compass Real Estate; and Trevor Swezey, founder of Highline Construction — have included creating a way to give back to the next generation of entrepreneurs.
Those discussions led to the creation of the Youthpreneurs of Northwest Washington program, which awards business grants to three recipients between the ages of 16 and 21 who reside in Whatcom or Skagit counties.
The first-ever trio of winners was announced this summer, with an awards ceremony held in August at Kent’s Garden & Nursery.
Malachi Larsen, a 19-year-old Burlington-Edison High School graduate, was named 2025 Youthpreneur of the Year and awarded $5,000 toward his business, Pacific Kickz. Larsen was joined by honorable mention winners Ella Jones, 16, and Gunnar Williamson, 17, who each received $2,000 toward their entrepreneurial exploits.
“We wanted to find people that have grit and determination, and that’s present with all three of these students,” said Swezey at the awards ceremony. “What they’re doing now may not be what they do in 20 years, but the reality is that they’re all learning valuable skills now that they can take into the future. We’re excited and proud to support them and give them a leg up.”
Larsen’s business, Pacific Kickz, is a local and online-based company that buys, sells and trades collectible sneakers. He founded the business as a sophomore; it has since exceeded six figures in sales revenue, with an average return on investment of 20% to 30%.
“It’s almost like ‘Pawn Stars,’ but for sneakers,” Larsen explained.
Being recognized for his hard work, he added, means the world to him, especially since Pacific Kickz’ founding came during a challenging personal time in which Larsen entered the foster care system.
“It just fills my heart to be part of their journey. Because I know that it can be hard, intense and scary to run your own business.”
Larsen’s passion for sneakers, capacity to handle risk and impressive success made him stand out, Swezey said.
“In terms of running a legitimate business that can turn into something that you can support a family off of, achieving that goal while you’re still in high school shows that you are well on the path to something that is a sustainable business down the road,” he told Larsen.
Larsen said he plans to use the award money to cover inventory and marketing expenses, with the rest going toward his college education at Skagit Valley College. He plans to pursue an associate degree in business.
Ella Jones, now a junior at Burlington-Edison High School, was awarded despite not being old enough to actually apply for the program.
Nevertheless, Jones — who turned 16 in September — said the risk of rejection was worth taking, just as it was when she founded Ella’s Photo Booth — an open-air photo booth for events — her freshman year.
“To be an entrepreneur, you have to take risks and be willing to try things,” she said.
After taking a loan from her parents, Jones began buying photo equipment, including a tripod, tablet, props and numerous photo backdrops. In the past two years, her photo booth has appeared at high school dances and auctions, as well as birthday parties and the John L. Scott holiday party.
Burrous, the co-owner of Kent’s Garden & Nursery, said they were impressed by Jones’ initiative. The spirit of entrepreneurship, he added, is often imbued with the knowledge of what rules to break and what rules to take.
Jones said she plans to use her award to purchase a printer so photos can be printed on-site in strips, as traditional photo booths do.
Gunnar Williamson, now a Burlington-Edison senior, received his reward for founding Custom Freeze Drying LLC — a company that prepares, packages and sells freeze-dried fruits, candies and meals.
—Trevor Swezey
Williamson’s father approached Gunnar with the idea of selling freeze-dried foods after the family acquired a freeze dryer several years ago. It started with sales to friends and classmates, and now, Williamson’s initial investments toward his business have been totally paid for through his hard work.
The freeze-drying process removes all water from the foods, Williamson said, enhancing flavor while still retaining nearly all nutrients.
“It melts on your tongue,” he said of eating freeze-dried food. “It throws a crunch in everything.”
Williamson will put his money toward proper permitting of his business, with the rest going toward equipment that will enable him to be a vendor at fairs and farmers markets.
For the three men inspired to create the program, giving away $9,000 to these young business owners was very rewarding.
“It just fills my heart to be part of their journey,” Swezey said. “Because I know that it can be hard, intense and scary to run your own business. They’re at a different stage in life, and it’s a different scale than my own situation, but that passion they have can continue and lead to bigger things. And the bigger things, they have teeth.”
For Nelson, who advocates for having a vision, staying focused and remaining determined, the pluck of these youthful entrepreneurs reminds him of his favorite description of what one is.
“My favorite definition of the entrepreneur,” he said, “is someone who likes to jump off a cliff and build an airplane on the way down.” ■
Opposite page, top photo: Brandon Nelson, Gunnar Williamson, Ella Jones, Isaac Burrous, Malachi Larsen and Trevor Swezey. Lower image: Unsplash/Marek Piwnicki.
A powerful presence on our working waterfront
Cheryl Stritzel McCarthy
If you’ve walked onto a foot ferry or taken a dinner cruise or whale-watching tour anywhere in the Puget Sound region, you’ve likely been on an aluminum boat built by local company All American Marine. AAM has a dozen boats operating in the Puget Sound and many more around the country. Even more likely, as you stepped aboard, you took the wondrous machine beneath your feet for granted.
But if you walked into AAM’s 57,000-square-foot building on Hilton Avenue in Bellingham and saw those beautiful boats arising from the shop floor, you’d realize what modern marvels of engineering and craftsmanship they are. The shop — though you can’t call it that because it’s more like an aerospace manufacturing facility — includes four cavernous bays housing giant, gleaming aluminum vessels in various stages of assembly. In one bay, the 108-foot monohull Harbor Breeze, with three decks and a 350-passenger capacity, looms high overhead (more on that boat later). In another, a 77-foot research vessel being built for the University of North Carolina Wilmington is positioned upside down for efficient welding; a “rotisserie” at the front and back will soon roll it over for installation of the pilot house and decking. In another bay, you can stroll beneath the twin hulls of a 65-foot catamaran to view the chines and hydrofoil “wing” that partially lifts the hulls out of the water, producing a boat that delivers more speed with less fuel. The robust
“Our people here are building some of the best boats in the world. It’s my honor to help lead them.”
— Ron Wille, president and chief operating officer
hydrofoil is shaped like an airplane’s wing, providing the same lift through water as a plane’s wings do through air.
Hydrofoils supercharge growth
AAM has built high-speed, hydrofoil-assisted aluminum catamarans since 1999, when it gained exclusive North American building rights to the New Zealand design. That type of boat is AAM’s bread and butter. The company also specializes in hybrid-electric ferries, tour boats and research vessels, said Ron Wille, president and chief operating officer. AAM is known for clean-propulsion vessels, including hydrogen fuel cell, hybrid, and battery-electric. The company has 80 full-time employees and gross sales north of $20 million. Hiring of skilled trades is ongoing.
Like its vessels, AAM’s growth, especially over the past 25 years, has been supercharged. AAM was founded in 1987 in Fairhaven as a builder of aluminum fishing boats. It’s come a long way since then. Now (as of this magazine’s press time), it is to launch the first US-built parallel-hybrid ferry (that 350-passenger ferry mentioned earlier), which is headed for Harbor Breeze Cruises in Long Beach, California. Parallel means the vessel can be driven by electric motors, diesel engines or both at once. That gives operators the option of using quiet, zero-emission operation in a harbor or diesel assist for longer range. Batteries can be charged while connected to shore
power or via its engines while underway.
“Our current Harbor Breeze build is the first of its kind that’s set up in this configuration,” Wille said.
Crafting vessels
AAM leadership is happy to be known nationally for its zero-emission and hydro-propulsion commercial aluminum vessels — and locally as a significant waterfront presence.
“We create and sustain family-wage maritime jobs in Whatcom County,” Wille said. “We’re proud to be a major employer and anchor business in Bellingham, fabricating almost entirely in-house. We don’t manufacture engines or doors or carpet here, but we install all of it and fabricate all the aluminum.”
And what fabrication it is. Massive rectangular plates of aluminum come in one door, and finished commercial aluminum boats roll out the other. In between, computer numerical control routers cut the plate into parts while writing instructions for welding right onto the parts. The lion’s share of labor within AAM is welding and fabrication, Wille said.
That’s why AAM resembles an aluminum manufacturing business or aerospace facility more than a traditional shipyard, said Daniel Zech, business development manager.
“We analyze every part and piece that goes into a boat,” said Bronson Lamb, marketing manager. “We use the lightest, best parts. Weight matters. The lighter we make boats, the less energy they use.
Efficiency is in our DNA here.”
Visiting clients have commented on AAM’s output.
“One of our competitors built six boats over the last seven years,” Wille said. “We built 20.”
Ever forward
AAM moved into its current, purpose-built facility in 2017.
“This building has enabled us to be more efficient,” Wille said. “The Port of Bellingham has been a fantastic partner.”
AAM’s waterfront location allows finished vessels to be loaded onto a waiting
150-foot trailer and then launched at Squalicum Harbor’s public ramp — at “oh-dark-thirty, high tide,” Wille said.
Today, the majority of AAM’s business are those aluminum, hydrofoil-assisted, diesel-powered catamarans that use a third less fuel than the industry standard, Lamb said. But projects currently occupying AAM bays show variety — including the 80-foot passenger vessel with a quad water-jet propulsion system that can do 34 knots. That one is headed for cruise duty with Phillips Cruises & Tours in Alaska, which takes folks up close to view glaciers. Wille said AAM delivered one vessel like
that to Phillips in May 2025, and within 60 days the company ordered another.
AAM has built multiple boats for the National Oceanic and Atmospheric Administration over the years. Notable research vessels built since 2018 include vessels for customers such as Duke University, University of Hawaii, California Polytechnic State University and, again, NOAA. The boat for Cal Poly, North Wind, was awarded Ship of the Year for 2025 by the publication Professional Mariner.
“Our people here are building some of the best boats in the world,” Wille said.
Welding and fabrication make up the lion’s share of labor at AAM. SATTVA PHOTO.
“It’s my honor to help lead them.”
Other newsworthy AAM events include the 2018 launch of the large-capacity 128-foot tour boat Enhydra, a hybrid-propulsion milestone for the US market; the 2021 launch of the 70-foot Sea Change, the world’s first hydrogen fuel cell commercial ferry; and the 2023 installation of two new CNC router tables and a 550-ton CNC press brake into the facility.
Wille joined AAM in 2018 as director of business development, coming from AAM customer Kenai Fjords Tours in Seward, Alaska. He gained his current title of president and chief operating officer in 2021. That year, AAM was purchased by Bryton Marine Group, North America’s largest private, family-owned builder of aluminum boats. “We went from working for one family to working for another, and it was an exceptionally smooth transition,” Wille said. Besides AAM, Bryton Marine Group brands include Alumacraft, BRIX Marine, Duckworth, EagleCraft, KingFisher Boats, Weldcraft, and Freshwater Marina in Campbell River, BC.
AAM has produced 20 aluminum vessels since 2018 and 100 total since its 1987 founding. Today, the company’s boats skim waters along the West Coast, Alaska and Hawaii and throughout the country. That includes boats that patrol, research and cruise.
So, next time you step aboard a foot ferry or excursion boat, think about the craftsmanship beneath your feet — and the Bellingham folks who built it. ■
Photos, Page 20: Ron Wille (right) and Daniel Zech stand aboard the newest vessel inside the 57,000-square-foot AAM warehouse on Hilton Ave. This page, top: AAM’s warehouse interior.
Photo courtesy of AAM; AAM’s exterior showing the huge garage door that opens to bring in large pieces of materials, like sheets of aluminum; Ron and Daniel talk about a project; the interior of the newest vessel project, wrapped for protection. SATTVA PHOTO.
Crafting since 1987
Matt Mullett and Pat Pitsch begin collaboration.
All American Marine is founded by Pat and Julie Pitsch on McKenzie Avenue in Fairhaven as a builder of aluminum fishing boats.
AAM obtains exclusive North American building rights with naval architect Nic de Waal of Teknicraft Design in New Zealand and focuses on building high-speed, hydrofoil-assisted aluminum catamarans.
Matt Mullett becomes CEO.
AAM builds its first quad-jet catamaran, the Chilkat Express, a 61-foot passenger ferry with a top speed of 46 knots.
AAM moves to 200 Harris Ave. in Fairhaven, increasing capacity and workforce.
AAM completes four catamarans for NOAA.
AAM continues to deliver vessels for varied uses, including the 62-foot Florida II to the US Army Corps of Engineers, to carry out port dredging, shore protection and emergency response.
AAM delivers a fifth NOAA catamaran, the 82-foot Manta, recognized by WorkBoat magazine as one of the top 10 boats of the year, the first of these awards for AAM.
Matt and Nina Mullett become sole owners of AAM.
2013-2017
AAM moves into its newly built 57,000-squarefoot facility on Hilton Avenue on Bellingham’s waterfront, completing its first vessel here, the 125-foot Salish Explorer for Argosy Cruises.
AAM delivers the 83-foot La Espada to Harbor Breeze Cruises in Long Beach, California. La Espada is recognized by WorkBoat magazine as a Top 10 Significant Boat.
Ron Wille joins AAM as director of business development, coming from AAM’s customer Kenai Fjords Tours in Seward, Alaska.
AAM delivers the 128-foot Enhydra to the Red & White Fleet in San Francisco. The 600-passenger vessel is the largest lithiumion hybrid vessel in North America. Enhydra is recognized by WorkBoat Magazine as the Boat of the Year.
Mullett is chosen as Business Pulse’s Business Person of the Year.
The delivery of research, patrol and excursion vessels continues.
AAM delivers the 70-foot Sea Change, the world’s first hydrogen fuel cell commercial ferry, to the Bay Area.
In December, AAM is to launch the first US-built parallel-hybrid ferry, a 350-passenger vessel headed for Harbor Breeze Cruises in Long Beach, California.
AAM enters the offshore wind industry with its delivery of the 73foot hydrographic survey vessel Shackleford to the East Coast.
With the receipt of a federal grant, AAM installs two CNC router tables and a CNC press brake.
AAM is purchased from Mullett by current owners Byron and Sheryl Bolton (Bryton Marine Group).
Wille becomes president and chief operating officer.
Purr-suing the wave Beach
Cat Brewing is building happiness, one beer at a time
Tony Moceri
Beach Cat Brewing has been making a splash in Whatcom County since 2020, when Jake Gobeille and Darin Hamm opened their first location in Birch Bay at 7876 Birch Bay Drive #101. With a focus on building a community and sharing great beer, they couldn’t pass on the opportunity to expand to a second location on the waterfront in Bellingham earlier this year when the perfect spot presented itself at 1010 C Street, #107.
Expanding a business at any time can be a risky endeavor, but in an economic climate that feels a bit shaky, and at a
time when households are watching their spending, some business owners may have decided to keep riding a good thing and hold off on a second location. That isn’t how the Beach Cat team is wired. From the infancy of Gobeille’s idea for Beach Cat Brewing, he decided he was making his decisions with his heart.
“The big reason that I started Beach Cat in the first place was I was diagnosed with testicular cancer back in 2018,” Gobeille said. “I was 25 years old, diagnosed with cancer, was told that I’d never be a parent, and I just had all this stuff
just hitting me at the same time. I really push myself, because while going through cancer treatment, I told myself that I would never do anything that wouldn’t put me on the pursuit of happiness — or at least trying to figure out what happiness meant. And beer, from the first time I brewed it, made me so happy I fell in love with it. Then opening (Beach Cat Brewing) and taking that leap forward was what I swore I would do during chemo. And I swore I would always be moving forward in life.”
That leap of faith in the pursuit of
Darin Hamm (left) and Jake Gobeille, owners of Beach Cat Brewing. SATTVA PHOTO.
happiness has paid off, but only because of the support of the community and the people with whom they have surrounded themselves. It was a GoFundMe campaign that provided the $3,000 seed money to start the brewery. Then Gobeille and Hamm went to work building out the team, which is the soul of Beach Cat. TJ Marrs and the rest of the team worked with Hamm to create award-winning beers, such as the Raspberry Puurreé sour, Christmas in July, and
the Stark Katze Golden Belgian Strong.
The team has continued to grow, with each member having an impact on the success of the business and the satisfaction of customers to ensure they return — and return they have.
Now, thanks to winning awards and to Bradley Sakali’s social media skills, Beach Cat is recognized industrywide.
Since first showing interest in the Birch Bay location, Gobeille and Hamm have felt the love. The Birch Bay Chamber
of Commerce was supportive from day one. Beach Cat opened its doors on Aug. 6, 2020, limiting how they could serve their customers. The community showed up anyway, sitting outside and taking beer to go until Beach Cat finally was able to begin seating a limited number of people inside in November 2020.
“We are trying to bring a little bit of Birch Bay to Bellingham, because our community out there is amazing,” Gobeille said. “We have a tremendous amount of respect for the community of Birch Bay and what they have provided us, and just what it is to be there. I mean, it’s like walking into the Cheers bar, where everyone knows each other’s names and everyone wants to sit with each other; they want to socialize, they want to talk, they want to make and cultivate friendships. That’s a really beautiful thing, and I want to try and do that in Bellingham this year.”
To create that same sense of community, the Beach Cat team is doing things the same — but different — between the two locations. Beach Cat regularly hosts events such as music, bingo and trivia at both locations, but the team also offers unique events, including a running club, cribbage, stand-up comedy and Dolly night.
It’s like walking into the Cheers bar, where everyone knows each other’s names and everyone wants to sit with each other; they want to socialize, they want to talk, they want to make and cultivate friendships. That’s a really beautiful thing.
Yes, Dolly night. On Dolly night, the reading carpet gets rolled out, and children can enjoy listening to story time. Donating a book earns you a discount on a beverage. Beach Cat also partners with rotating food trucks, allowing people to pair their favorite foods with their favorite beers.
While you can find Beach Cat beer elsewhere through a small distribution and some collaborations, for the most part, if you want the beer, you have to visit the breweries. Because of the margins, it’s as much a business strategy as it is self-serving, because the team wants people in the breweries building community.
If you are not in the mood for a beer tonight — or ever — that does not prevent you from enjoying the atmosphere and events at either Beach Cat location. The breweries offer a wide variety of beverages beyond beer, both alcoholic and non-alcoholic. The most important thing for Gobeille, Hamm and the rest of the Beach Cat team is that people are in the breweries having as much fun as Gobeille had coming up with the name.
“The name stems from my high school friends and me, when we were 15,” he said. “We were pulling an all-nighter, telling ‘your mama’ jokes to one another. And one of the ‘your mama’ jokes was ‘your mom smells so bad, when she goes to the beach, cats try to bury her.’ We spent all the rest of high school calling each other beach cats. When I wanted to open a brewery, there was only one name that made sense, and it was Beach Cat.”
If you want to join in on the Beach Cat fun, you can stay up to date with all the happenings through social media and on the company’s website at beachcatbrewing.com. ■
— Jake Gobeille
HOLIDAY ORDERS NOW OPEN
Custom labels available
Local delivery options
Corporate discounts for bulk orders
(360) 676-0589
Page 28, top right: Beach Cat Brewing’s sunny Bellingham location at 1010 C Street, #107. Bottom, left to right: Jordan McDonald, Kaitlin Gobeille, Jake Gobeille, Darin Hamm, Andrew Tripp, Riley Fraser, Marlea Pitman, Bradley Saklai. This page: Timm Blakely pours a draft. All photos, SATTVA PHOTO.
Thank
Thank you!
EXECUTIVE COMMITTEE
BOARD OF DIRECTORS
Washington Trust Bank brings financial independence, customer dedication to Whatcom County
Matt Benoit
Whatcom County added another bank to its financial portfolio this summer, welcoming the presence of the area’s first Washington Trust Bank branch in Barkley Village.
After officially opening for business in August, the new branch — located at 2210 Rimland Drive Suite 101 — held a ribbon cutting and open house on Oct. 14. It was the bank’s second such celebration in October for a new Western Washington branch, following the opening of
a Tacoma branch earlier in the month.
WaTrust provides a full range of financial services, from consumer, commercial and private banking to wealth management and trust advisory services.
Kevin Bedlington, a WaTrust vice president and relationship manager, said the Interstate 5 corridor is the fastest-growing region for the bank, which operates more than 40 branches throughout Washington, Oregon and Idaho.
A Smokey Point branch opened five
years ago, joining branches in downtown Seattle and Bellevue. Founded in Spokane in 1902, WaTrust is the oldest and largest privately held commercial bank in the Northwest. Under Stanton family leadership since 1919, it now manages more than $10 billion in assets.
WaTrust prides itself on combining the continuity of services found at larger public banks with the personal touch of local bankers who know their communities well.
Left to right: Chad Nickisch, Rob Camandona, Kevin Bedlington, Karly Bromann, Julie Ranson, Karina Trubin, Kit Gerwels. SATTVA PHOTO.
“We
really like the WBA. We think it does an excellent job supporting the community of businesses... it’s great to be a part of that.”
— Kevin Bedlington
“We’re a family-owned business that is privileged to do business with other family-owned businesses from our community,” Bedlington said. “That’s where we shine our brightest.”
The Bellingham branch currently employs seven people, with more expected to be hired, Bedlington said. All of them are locally based, and most have decades of experience not just as bankers but as Whatcom County residents.
Bedlington, whose family roots go back three generations in Whatcom County, is joined at the Barkley branch by Relationship Manager Rob Camandona, Branch Manager Julie Ranson and Mortgage Loan Officer Chad Nickisch, among others.
Bedlington is a board member of the Lighthouse Mission Foundation, and everyone in the office has ties to at least one community organization, he added.
Kit Gerwels, the bank’s north Puget
Sound team leader, said its culture is centered on helping communities and businesses prosper.
“Bellingham is an ideal community,” he said. “As a community bank, we combine scale with deep local roots, always focused on supporting the communities we serve.”
The bank itself is also deeply philanthropic and was ranked among the largest corporate philanthropists in Washington by the Puget Sound Business Journal this summer.
WaTrust also is a preferred Small Business Administration lender and features international banking services. The latter makes it an especially good partner for community businesses in such close proximity to Canada, Bedlington added. The bank covers a wide range of lending and also offers such products as remote deposit capture, online wire service and treasury management projects.
“We deliver banking on a very personalized, customized platform,” Bedlington said. “I think that’s probably our niche: We definitely try to really understand our customers’ businesses, get to know them well and align, as best we can, with their needs.”
WaTrust is a member of the Whatcom Business Alliance and last year brought in a chief economist for an economic forecast presentation, Bedlington said.
“We really like the WBA,” he said. “We think it does an excellent job supporting the community of businesses in that area, so it’s great to be a part of that.”
WaTrust also has a recognizable mascot, W.T. Banks, inspired by its iconic “bug” logo. He represents the bank’s approachable and community-focused culture and has been known to pop up at branches, events and community engagement efforts.
“We like to get him out in the community when we can,” Bedlington said.
And much like W.T. Banks himself, WaTrust plans to expand its local footprint, opening a full-service drive-thru branch off Bakerview Road in the not-too-distant future.
“We’re definitely in the market to grow,” Bedlington said. “Bellingham’s a great market for us. We’re looking forward to continuing to work with the companies we work with and foster additional relationships moving forward.” ■
The welcoming interior and inviting exterior of Washington Trust Bank, located at 2210 Rimland Dr., #101. Bottom: Vice president and relationship manager, Kevin Bedlington, at his desk. SATTVA PHOTO
City Dogs Grooming Where Bellingham dogs get their glam on
Mary Louise Van Dyke
City Dogs Grooming staff members relish making visits pleasant for dogs, with nose-to-tail spa experiences at the Bellingham shop.
Recently, a small poodle-mix dog, covered with matted fur, arrived with its elderly owner (who appeared to have health issues) for an appointment. The goal was a haircut and a bath.
Maia Early, a groomer and assistant manager, watched as a co-worker skillfully sheared the dog free of its heavy coat and followed up with a bath.
“Looking at her afterwards, she looked like a little puppy, with these cute little ears, and seemed to feel much freer,” Early said.
“When I see a little dog transformed like that, I go home and think I am making the world a better place.”
The business employs between 12 to 15 staff who live in Whatcom County, and each works about four days a week. Professional grooming is a physically demanding job, said owner Lee Ann Kelly.
Depending on staffing levels, 35 dogs per day receive services, including baths, comb-outs and brushing, nail trims/filing, ear cleaning and grooming/haircuts, based on the owner’s styling requests. Grooming packages such as the Woof Works and the Chuckanut Trim are tailored to different breeds’ needs.
Kelly launched City Dogs Grooming in 1997 — however, that wasn’t her first career choice.
She’d graduated from Western Washington University with a degree in speech pathology/audiology before deciding she really wanted to be a veterinarian.
“I got a job grooming dogs and I was hooked,” she said.
Back in the mid-1990s, just a handful of dog groomers offered services in Whatcom County. After working as a groomer for other businesses, Kelly decided against becoming a vet and leaped into ownership, warmly encouraged and supported by her husband.
Lee
Ann
Kelly and Maia
Early inside
City Dogs Grooming spa.
As a dog mom, she was determined to make the experience comfortable for dogs and their humans. Canine clients should enter the facility with tails a-wagging, and owners should feel confident that their loved companions are going to have a positive experience here. Whether the dog loves it or not, staff can’t guarantee that — but they can guarantee a safe, comfortable and compassionate experience.
The first City Dogs location was at Lincoln Street and Lakeway Drive, before it moved to the corner of Holly and Ellis streets, both in Bellingham. In 2021, the shop relocated to its current waterfront location, at 1225 Roeder Ave., where Kelly got to create her dream facility.
With years of experience, Kelly, Early and the team recognize that each dog breed has its own distinctive features and behaviors.
Siberian huskies, friendly mid-sized canines, are the most vocal and talkative, with a very distinctive sound of “rarr, rarr, rarr.” What they are talking about isn’t
always easy to decipher, Early said. Hopefully, they’re saying how much they like the experience.
“It’s not necessarily that they’re not enjoying the process, but they just have something to say,” Kelly said.
Both agree that poodles are probably the divas of the dog world when it comes to achieving the perfect look.
They are higher maintenance dogs, and there are so many ways to groom a poodle. Groomers spend a lot of time scissoring the tail just so, doing the ears just so, and putting bracelets on the legs. The top knot, too, is a strong poodle characteristic.
“So, I think poodles tend to think of themselves as ‘all that’ with much more glamor,” Kelly said.
Most dogs depart appearing proud of themselves after a haircut. Those good vibes are due in large part to owners who arrive and enthuse, “Oh, you look beautiful! Look at you!” Kelly said.
with some exceptions, what dogs really adore is getting lots of positive comments from their owners.”
Grooming isn’t limited to mature dogs, but wiggly puppies require a different approach — especially during their first visit.
“We’re going to do basic hygiene, and we’re going to try and make this experience fun,” Kelly said.
Staff use a rotor file for toenail trims, but newly washed juveniles might panic at the sound and refuse any further grooming. Staff will work to help each become accustomed to the sound on future visits.
“We want to do a lot of desensitizing so the puppy will return and think, ‘Oh, this experience is fine’,” Kelly said.
City Dogs Grooming has received the Bellingham Alive! Best of the Northwest Dog Groomer of the Year Readers’ Choice award numerous times from 2010 to 2024.
Looking to the future
“We do everything we can here to make your dogs have fun here,” she said. “But
Kelly and her management team are researching the pros and cons of starting
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a dog grooming training program at their 2,500-square-foot facility. Currently, there’s no official professional certification requirements for dog groomers in Washington state, according to the Vet Career Schools website.
Kelly sees a huge need for these classes, and she and the management team are exploring what the venture would entail and the expenses involved.
“If we do it, it’s going to be legitimately certified through the Washington State Board of Education, and everyone (here) would have to be on board,” Kelly said.
Retirement isn’t on Kelly’s radar at this point. She wants to ensure City Dogs Grooming will continue strongly past that point, whenever she hangs up her grooming tools.
“I get up every morning, and I’m happy to come to work,” she said. “If my body would let me, I would do grooming all day.”
All these years later, she doesn’t regret not continuing with the veterinarian pro-
gram. One of the most rewarding aspects is not only with the dogs, but also with their people. Many clients have supported her and the business since the early years.
“After nearly three decades, many of these clients feel like family, and that, as much as anything, makes me love what I do,” Kelly said. ■
Tali
Penny
This page, from top left: Melody Pizano, Lee Ann Kelly and Maia Early enjoy some furry lovin’; Piper poses for the camera; Lee Ann Kelly outside City Dogs Grooming, off Roeder Ave; Bailey Lee gives her client a smile; Kecha Whyte greets clients; Alison Ehl and Sophia Roberts give expert trims. SATTVA PHOTO.
Lulu
Berlin
Piper
Wednesday, December 3 | 7:00 - 9:00am Bellingham Golf & Country Club
$80 / individual | $600 / table of 8
Purchase tickets at whatcombusinessalliance.com/events
Driven to create
Jennifer Irwin channels what she loves into what she does best
In 2006, while visiting friends in Bellingham, East Coast native Jennifer Irwin was captivated by the city’s scenic charm. She moved to Bellingham and completed her degree in political science but did not want to return to the East Coast to work after graduation. With limited job opportunities because of the 2008 recession, she stayed in Bellingham and embraced her passion for creative arts, which paved the way for a thriving career in marketing.
Today, Irwin is the founder and manager of Swell Media Solutions, an innovative and award-winning boutique marketing agency located in Bellingham.
BP: You’re not native to the area. How did you come to reside in Bellingham?
I grew up on the East Coast, just outside of Baltimore. As a young adult, I was a substitute teacher, bartender and beach bum. In 2006, the last year my brother managed a remote lodge in Juneau, Alaska, he invited me to come work there for a season. I loved the big, beautiful West Coast, but I needed more civilization than Alaska offered. I stayed in Bellingham for a couple of weeks afterwards and fell in love with it and moved here.
BP: When you were a young girl, what did you want to be when you grew up?
I wanted to be a writer, philosopher, artist and lawyer. In college, I initially studied philosophy at Salisbury University in Maryland, but then I thought, ‘what am I going to do with that?’ So, I got into political science and had intended to go to law school. After moving to Bellingham, I finished my degree in political science at Western.
Tamara Loucks
Jennifer Irwin, founder of Swell Media Solutions.
Photo courtesy of Swell Media Solutions.
BP: So, a career in marketing was not what you had envisioned for yourself?
No, but it was one I welcomed. I always had a knack for it and a love for writing and creating, but I had never thought it could be a career. I did a little work for a local advertising agency after graduation, and I took a marketing job at the Willows Inn on Lummi Island, but everything came together when I joined Cascade Radio Group and worked in sales and marketing under Don Curtis. He was the best boss! I worked directly with clients to develop campaigns, write commercials, create promotions and events. Eventually, my clients were asking me for help with marketing beyond radio advertising. I had Don’s approval, so I primarily helped businesses with their digital media. After he retired, I left the station to run my business full time. I loved it because I was creating campaigns, writing, directing design and helping to promote my clients on a range of platforms.
BP: That was a big leap — from employee to business owner then employer.
It was a rush — and then the pandemic hit. Many of my clients were considered essential businesses, and their businesses needed to be communicating online. I needed to quickly find a team of qualified people who intently understood marketing. It was a struggle. The book “Good to Great” was my bible — it still is, and I’m still always looking for the right people for my bus.
BP: What drives you today?
Hope. It boils down to hope, because I am very driven. I think I am also a little competitive. You get knocked down so much as a business owner, and you get back up because you have hope and vision.
BP: Do you have a personal philosophy or mantra for your life?
During the pandemic, I put up a sign that said “Breathe” because I had to literally remember to breathe. I was in my own head, and there was a lot of panic and anxiety
because I had no experience running a business and so much responsibility as an employer. Another mantra is, “Things will happen for you, not to you.”
BP: What do you like to do in your free time?
Ha! I am the most boring person on planet right now. At least once a month, I try to get together with friends and paint or do something fun. When we can, my husband and I head to Mexico for the sun and ocean. He’s a helicopter pilot, and sometimes we go flying.
BP: Contemplating your life, what makes you smile and brings you joy?
The salt-of-the-earth people I have in my life. Friends, family and colleagues. People who are real with me. And of course my dog, Piper Penny Lane!
BP: Where do you see yourself in 10 years?
Doing this (operating Swell Media Solutions), hopefully with a few more on staff. I really love what I do! ■
Swell Media’s team; Jennifer and her dog, Piper Penny Lane; flying a helicopter from Juneau to Anacortes with her husband. Photos courtesy of Jennifer Irwin.
We built a housing crisis...
Now we have to grow our way out of it
I’m fortunate that both my adult children decided to move back to Bellingham, the third generation of our family in Whatcom County. One is a nurse, the other a public-interest attorney. If you met them, I suspect they’re the kind of people you’d want as neighbors. Yet neither one is anywhere close to being able to afford a home here. That weighs on me as a father and as a community member, especially because it’s my fault.
For 40 years, like many of us, I’ve supported policies and a regulatory process that created the conditions we’re living with now: a housing crisis. Every step came from good intentions: cleaning up polluting industries, stopping sprawl, protecting open space and wetlands, increasing energy efficiency, improving safety standards, preserving neighborhood character, safeguarding clean air and water. But over time, we built layer upon
layer of regulation at the federal, state and local levels. We stopped making hard choices. Instead of confronting trade-offs, we kept adding rules and requirements, rarely considering their downstream effects. Each seemed reasonable at the time, but together they’ve produced a system so cautious and procedural it can barely move, even when we desperately need it to. Avoiding hard decisions became the path of least resistance, and as long as we could afford it, on we went.
The issue came into focus recently at a meeting of the Whatcom County Business and Commerce Committee, just after the city and county presented their budget challenges. Mayor Kim Lund said something simple but profound: For a hundred years, government has expanded by layering on programs, services and expectations. We’ve reached the point, she said, where that expansion can’t continue. We must realign what we do with the fiscal reality of our tax base. She’s right. You can’t keep adding forever. She described it as a kind of civic entropy, the natural tendency of systems to grow more complex until they can no longer sustain themselves.
Then a builder, Pete Dawson, spoke for the private sector. He and others thanked the city for some recent progress — faster permitting, streamlined reviews and the removal of parking minimums that now allow three times the housing in Old Town. But they also made clear that if Bellingham wants to climb out of its fiscal and housing crisis, reconsidering layers of regulation has to be part of the solution.
Dawson pointed to the recent attempt to impose county-wide Project Labor Agreements that might have added 30 percent to construction costs, a proposal thankfully defeated, but at great effort. He reminded the room that while affordable housing is desperately needed, the cost of producing even large public projects, such as a Laurel Forest or 22 North, has reached roughly $460,000 per unit in Bellingham, compared with about $300,000 for similar units in the private sector. Much of that gap, he said, comes from regulatory costs that we, the public, have asked our elected officials to impose over the years. But he contended there’s a real opportunity now to redefine what’s essential, to narrow our focus and do fewer things better.
Peter Frazier
Neither one [of my kids] is anywhere close to being able to afford a home here. That weighs on me as a father and as a community member, especially because it’s my fault.
“
—Peter Frazier
County Executive Satpal Sidhu agreed. “You can build the same house in Ohio for less than half the price,” he said, making the point that the materials cost the same. City Planning Director Blake Lyon lowered the boom on the exchange by referring to a study that showed median new home prices here are just under $700,000, and over $200,000 of that are regulatory costs.
That exchange captured more than a housing problem; it revealed how every added layer of regulation, however well meant, converts caution into cost and makes homes harder to build and buy. What begins as prudence becomes exclusion. It’s the same instinct that drives our land decisions — our desire to preserve what’s green and open too often becomes reluctance to make room for those who want to live here. We’ve protected open space while resisting annexations and urban growth area expansions that could have relieved price increases and expand opportunity for those who live and work here. And that gets to the heart of our fiscal problem.
While our housing crisis is partly driven by state and federal policy, it’s also the result of choices we’ve made locally. We’ve preserved large amounts of green space within city limits, taken developable lands
out of the urban growth area, and avoided annexations that could support housing near existing infrastructure. Each choice was understandable, even virtuous, but together they’ve boxed us in, creating an exclusive community. We didn’t just limit sprawl; we limited opportunity.
When we restrict housing, we restrict the growth of our local economy. Without homes for engineers, nurses, teachers and tradespeople, we can’t attract or retain the very workforce and the businesses that sustain our tax base. And without a healthy tax base, we can’t fund the things we say we value when we pass levies: schools, affordable housing, child care, behavioral health, greenways, a new jail and behavioral care center. We’re a generous community with a huge appetite for social ambition but without the fiscal metabolism to support it.
This is where we have to act. The choices ahead are local, and they require courage. We can’t keep adding rules and restrictions and still expect housing to become more affordable. We need to balance what we love with what we
need. That means thoughtful UGA expansion; faster and simpler permitting; interwoven, trail-connected parks and dense, climate-smart neighborhoods; and a willingness to reinvent and revise the policies that have quietly priced people out of our community.
We can do both, protecting what makes Bellingham extraordinary while making space for those who want to live and work here. If we can’t, we risk becoming a city reserved for the wealthy rather than a place for the next generation to build their lives. My daughter and my son want to stay here, raise families and give back to the city that raised them. We should make sure they, and those like them, can do so. ■
Peter Frazier is a partner at FrazierPelton, a consultancy working at the intersection of business, government and community. He developed the Heliotrope Hotel and Hotel Leo and is co-chair of the Incarceration Prevention Reduction Task Force and chair of the Bellingham Tourism Commission. When he does leave Whatcom County, it is typically by sailboat.
Birch Bay coffeehouse opens through generous community support
Tamara Loucks
Birch Bay’s The Way Café had an atypical beginning. It did not arise from a budding entrepreneur’s longtime dream to own a coffee shop but from a conversation café founder Pastor Lee Connors had with Rick Faber, a longtime supporter of his nonprofit ministry.
He’d told Faber that he believed God compelled him to open a coffee shop in the commercial space donated to his ministry, The Bridge Community Hope Center. However, the ministry could not afford to fund the buildout and equipment. Faber and his wife, Debbie, believed the revenues from the café could help support Connors’ ministry. With their backing — and many hours of donated labor, supplies and materials — The Way Café opened, debt free, on June 28, 2025.
The café, located at 4823 Alderson Road, is open 7 a.m. to 5 p.m. Monday through Saturday. It serves Caffé D’arte coffee and espresso from Seattle, Murchie’s tea from Canada, locally baked specialty pastries, charcuterie and fresh sandwiches made primarily from locally sourced ingredients. It’s a stunning coffee shop with quality offerings, but Connors says what really makes the café special is its warm, welcoming staff and the feeling of peace its patrons experience while there.
The Way Café is operated through The Bridge Community Hope Center. Connors serves as founder and executive director. The ministry provides a variety of services that weren’t previously available locally to the Birch Bay community, including a food bank, a used clothing boutique with a
clothing voucher system for those in need, a volunteer coffee bar and crisis counseling, plus other services. All café proceeds feed back into the community through the ministry.
Initially, all services at The Bridge Community Hope Center were housed under one roof, but a king tide flooded the building.
“The building was ruined, and we were able to relocate all the ministry’s services except for the coffee bar, which was used to train youth to become baristas so they could get jobs, and the conference center,” explained Connors’ wife, Rosemary.
Generous benefactors Tom and Kayo O’Gorman came to their rescue. The O’Gormans believed in the ministry’s mis-
Main photo: Doug Lang, Rick Faber, Eric Nathan, Becca Schemstad, David Connors, Andrea Skorka, Rosemary Connors and Steve Schemstad — friends and volunteers of The Way Café. Below: Pastor Lee Connors, founder and executive director of The Way Café. Images courtesy of The Way Café.
sion and donated two attached commercial spaces. They now house the café and a conference room, named the O’Gorman Center, which can be reserved for business meetings and small events or parties and will generate additional revenue to support the ministry’s services.
Community supporters rallied to assist with the buildout — including the Fabers, founders of Faber Construction, who donated the majority of time and materials for the project — along with Tim Faber of King Architecture, who donated design and permit management, and Dianna Del Giorgio, owner of Bellingham’s Caffé Adagio, who volunteered her expertise in menu development and staff training.
“Rick and Debbie’s buildout was first class,” Connors said. “They did 90% of the work themselves. Our ministry would never have been able to afford to open such a beautiful establishment. We committed to Rick and Debbie that the café would be run as a first-class establishment to honor their efforts.”
Faber relied on his many construction contacts for support.
“Debbie and I stepped up and donated time, materials, equipment, tables, chairs and machines,” he said. “We tapped a few of the tradesmen Faber Construction did business with. Many, like Excel Electric, donated time and/or supplies. Without the overhead of the buildout, the café should be able to turn a profit and support the ministry, which in turn supports the community. God has blessed us with much, and the community supported our business over the years, and this was a great opportunity for us to give back and bless others as we’ve been blessed.”
Connors says The Way Café rivals any of the nicest coffee shops around.
“It’s exceeded our expectations in every way,” he said. “What Rick and Debbie did for us, our wonderful staff, and how the community came together to make this happen just blows our minds. We, and our customers, are thankful for the café and everything it will make possible for the ministry.” ■
WHERE WE WIN WHERE WE LIVE
We’re not just moving — we’re growing with you.
Our Lynden team is excited to be expanding into a larger o ce space, just a few blocks away!
Construction is underway, and soon we’ll be welcoming you into a space built for better collaboration, conversation, and community.
Same team, same values, more room to grow — together.
Whatcom farmers watching closely as water rights court case still not off the ground
It’s now been over a year since the Whatcom water rights adjudication was officially filed, and yet the process of getting it off the ground is still winding its way very, very slowly through Whatcom Superior Court. The court has taken considerable time so far in working to lay out the ground rules of how this admittedly very complicated and far-reaching court case is going to operate.
Recent discussions have centered around the court docket. This document is what the court will use to let the various parties know what cases the court will be working on next. At some point,
a postcard will be mailed out, letting all the parties know about how this part of the process will work.
Another key item has been the question of how to serve the remaining parties who haven’t been served yet. According to recent Washington State Department of Ecology statements, they have 6,000 yet to serve out of the now 35,000 who will be served. Ecology plans on serving them via public notice in a newspaper of record.
We in the local farming community are watching closely as the numbers in this case continue to evolve. Interestingly, at the beginning of the entire adjudication discussion Ecology noted that only 15,000 to 20,000 would be served, and now the number is up to 30,000 or more. We also heard that 12,000 notices had been returned, yet now we are told 6,000
have yet to be served. We also know of a group who weren’t served at all the first time around.
Don’t forget that from the beginning, we were told the entire adjudication process would only take 10 to15 years. Yet it’s been over a year, and we really haven’t even set the guidelines for the case, much less any of the issues surrounding the water rights of those who have been served.
We have heard there will be multiple pretrial motions that will almost certainly cause more delays. Judge Freeman noted in the hearing that over 30,000 people will be served in the adjudication, but in a typical year prior to the adjudication, all four Superior Court judges together have served an average of only about 6,000. We’ve also seen some ridiculously low quotes on how much Ecology has
Fred Likkel
All images courtesy of Dillion Honcoop.
estimated this adjudication would cost.
The state of Washington, through its Department of Ecology, is the plaintiff — the one suing us all over water rights. However, the process of the adjudication goes through Whatcom Superior Court, and therefore Whatcom County is responsible financially for running it.
As you can imagine, this is a very expensive process, and because of this the state has promised to provide funds to the county to run the adjudication. However, the state is in a budget crisis and is looking for places to cut. The result: Whatcom County, which has to run an adjudication the state forced on it, asked for $4.7 million to support the process but received just $1.4 million.
What will the result be? Three things are most likely to occur: The first is an even further slowdown of the process, the second will be additional costs foisted on Whatcom County and its residents, and the third will be residents less prepared to manage their claims.
We often get asked: Should I be filing this form right now? Ecology and Whatcom County are encouraging filing as soon as possible. We are not legal experts, but we do speak to many who are. The consensus opinion is to prepare now, but hold on filing until the date is much closer. There don’t appear to be any benefits to filing early.
This does not mean that our hands are tied completely. We see collaboration and settlement as the only path forward for the community. Whatcom Family Farmers started a coalition called Water For Whatcom along with the Whatcom County Association of Realtors and the Whatcom Farm Bureau.
This group is trying to encourage the community toward collaborative discussions. You may have seen signs that say “It’s Time To Negotiate” or “It’s Time to Collaborate,” which are from this group. We’ve also been focusing our messaging recently on the collaborative process in Yakima and how it ended the
Coaster version 2.pdf 1 2023-02-27 5:46 PM
CSD Attorneys at Law Welcomes Shane P. Brady
We are extremely pleased to announce that Shane Brady has joined CSD Attorneys at Law as a principal attorney.
Shane is a litigator with extensive experience handling claims involving civil rights, premises liability, discrimination, negligence, and public nuisance, among other business and public agency matters. He also served in the Bellingham City Attorney’s office as the City’s primary civil litigator, risk manager advising all City departments on risk and liability, police legal advisor, and lead criminal prosecutor.
adjudication there.
As the water rights adjudication continues to unfold, we are committed to following it closely and speaking up for the Whatcom farming community regarding its impacts. We will continue to share information and educate the public about the process, as well as its huge significance not only for the future of local agriculture but also for the community as a whole.
Please subscribe to our newsletter updates and follow us on social media to hear our latest updates. Also, you can sign up to show support and receive alerts on the Water For Whatcom campaign at waterforwhatcom.org. ■
Fred Likkel is the executive director of Whatcom Family Farmers, which works to preserve the legacy and future of family farming in Whatcom County by unifying the farming community and building public support.
Shane joins the firm’s litigation, ports, and municipal law practice groups where he will employ his considerable skills and experience assisting private and public agency clients throughout the State of Washington.
Shane grew up on Whidbey Island and attended Western Washington University, where he played on the men’s soccer team.
WA Cares needs all the help it can get, including an assist from SJR 8201 on Nov. ballot
This article was previously published online at washingtonpolicy.org.
Senate Joint Resolution 8201 is related to the misguided WA Cares Fund, but it has nothing to do with whether or not you like WA Cares. It’s a question asking voters whether the state should be allowed to invest WA Cares dollars in more ways than it can now, with hopes of stronger fund growth.
WA Cares comes with a payroll tax of 58 cents on every $100 that W-2 workers earn in their working years — for a benefit many of them will never see. The Washington state tax is mandatory, and it has staying power, especially after voters last year failed to pass an initiative that would have made the long-term care program optional. SJR 8201 doesn’t change any of that, unfortunately. Instead, the question before voters in November is purely financial: Should the state continue limiting WA Cares dollars to ultra-safe, low-return government bonds and certificates of deposit, or should it allow those funds to be invested in diversified portfolios that see better growth?
Right now, the state constitution bars most public money from being invested in the stock of private companies. It’s a century-old restriction from the horse-and-buggy era of finance — long before diversified portfolios, index funds or even the Federal Reserve existed. The rule has been lifted for the state’s pension and industrial insurance funds, which are well managed by the Washington State Investment Board — one of the most respected fiduciary institutions in the nation.
The change proposed by SJR 8201 would simply add the WA Cares Fund to that list.
The idea passed the Legislature with strong bipartisan support — 42–7 in the Senate and 86–9 in the House. Democratic Gov. Bob Ferguson and Senate Republican Leader John Braun, R-Centralia, agree on the issue. They say in the official voters’ pamphlet that this is a common-sense measure that costs taxpayers nothing (unlike WA Cares itself) and that SJR 8201 ensures tax dollars go further.
Not everyone agrees the government should be putting taxpayer money in private stocks and corporations. In the statement against SJR 8201, some lawmakers point out that the market is more volatile than they are comfortable with. I get that concern. But this isn’t about a casino bet with taxpayer dollars. It’s about letting the same professional board that invests teacher and firefighter pensions — at an average 8% annual return over 25 years — manage a $2 billion WA Cares fund that currently has a projected 4% return over the next 30 years under current restrictions. WSIB also must follow state law “to maximize return at a prudent level of risk.”
As former WSIB chief investment officer Gary Bruebaker and public finance veteran Steven Hill say in an opinion in The News Tribune, “We can say with confidence that a diversified portfolio is far more advantageous than relying on low-return government bonds and treasury bills — from both a risk and return perspective.”
Their experience backs the numbers: An additional one or two percentage points of annual return could mean an extra $67 billion to $113 billion for the fund over 50 years — money that could help protect taxpayers from future payroll-tax hikes and sustain overpromised benefits, which have been said to be unsustainable at different times since 2019.
WA Cares will need every bit of that help. The program’s design struggles not only with
fairness but also with solvency. And like the state’s Paid Family and Medical Leave program, which saw its payroll tax more than double in five years, WA Cares could easily see its 0.58% rate balloon if investment returns lag or claims rise faster than expected. Between the two programs, full-time workers in Washington state pay hundreds and thousands in payroll deductions for benefits that not everyone will receive and that will sometimes flow to those who don’t need taxpayer-funded support.
Allowing the WSIB to manage the WA Cares fund doesn’t fix those structural problems, but it gives the program a fighting chance to pay benefits earned without constantly dipping deeper into workers’ paychecks. It lets WSIB professionals do their job of investing prudently for sustainable growth, just as they do for other long-term trusts in the state.
So, whether you think WA Cares is visionary or a mistake (I vote “unfair mistake”), SJR 8201 is worthy of consideration. The ballot measure is not about politics, it’s about stewardship and making sure the money taken from workers’ paychecks works as hard as they do. ■
Elizabeth New, a Seattle native and Western Washington University journalism and political science graduate, began her career writing political columns for The Bellingham Herald. She later served as communications director for the Washington Family Council and spent a decade each as a columnist for The Columbian and The Oregonian, earning multiple journalism awards. A free-market advocate, she’s also taught at Washington State University Vancouver and volunteers in community and outreach programs.
Elizabeth New
Skills centers give another option for youth
Not all of Washington’s students select college after graduation. Many Whatcom County residents may not know there is another option for the state’s high schoolers with an interest in professional development in the trades — one that comes at no cost to the students and their families (other than for uniforms or similar items).
The Washington State Career and Technical Education system, overseen by the Office of the Superintendent of Public Instruction, has the support of the Workforce Training and Education Coordinating Board and the Washington State Board for Community and Technical Colleges. The program is primarily for juniors and seniors — and occasionally sophomores — still enrolled in high school. The goal, organizers say, is to provide students with the skills, knowledge and experiences they need to successfully enter the workforce.
While skills centers are located throughout the state, some say Whatcom County has a need for its own center. Whatcom County students leave early in the morning via bus
to go to Skagit County, which has the nearest core campus, or find one of several programs currently offered locally at a satellite campus at Meridian High School in Meridian School District campus (providing fire science, welding and allied health programs). The programs run for 2.5 hours; session one starts at 8 a.m., and session two starts at 11:30 a.m.
“We have a strong, career-focused student population,” said Northwest Career & Technical Academy Director Lynette Brower. Brower has been the program director of NCTA in Skagit County for more than 10 years.
NCTA’s offered courses are varied and change as the demand changes: aerospace manufacturing, animation and graphic design, applied medical sciences, automotive services, baking and pastry, construction, criminal justice, culinary arts, cyber security, dental assisting, early childhood education, fire science and EMS, health and human services, maritime, medical assisting, pharmacy technician, teaching academy, tourism and hospitality, transportation and logistics,
pre-vet tech/veterinary assisting, video game development, and welding.
Brower said many students and their families are still learning of the program’s existence. According to the OSPI, skills centers are regional secondary schools that serve high school students from multiple school districts. They provide instruction in preparatory programs that are either too expensive or too specialized for school districts to operate individually.
Brower compared the better-known Running Start program with skills centers. Brower made it clear that the two programs are quite different. The skills centers involve the parents and focus on the trades. Running Start involves general educational classes that can lead to further college. Both programs can apply credits to both high school and college. Another benefit of taking these programs is finding out the reality of a career versus the preconceived ideas. Brower spoke of a person really liking animals and considering studying to be a vet technician; however, in reality some people may have difficulty seeing the animals
Elisa Claassen
suffering or dying and may be better suited to being pet owners.
Enrollment at NCTA includes (by district) 48 from Bellingham, 26 from Meridian, seven from Lynden, seven from Blaine, and four from Nooksack Valley. Noticeably, enrollment decreases in the north end of the county — farther from the center’s facilities. No students are currently enrolled from the Mount Baker, Lummi or Ferndale school districts. The total enrollment for this center for 2025-2026, as of Sept. 25, is 652, according to Brower. The enrolled students achieve 540 hours within a year. Program instructors come from the trades, Brower said, and then receive additional assistance to gain teaching certification.
The Whatcom County Skills Center has been approved by OSPI but is not yet funded. It is a capital obligation of the state Legislature, and Meridian School District cannot levy or bond for it. In the meantime, Superintendent Dr. James Everett has developed a short-term more immediate solution — using existing facilities for several programs on the Meridian district grounds.
First step for Whatcom: early childhood learning center
The first step for the future Whatcom County Skills Center will be to establish a Whatcom Early Learning Center located in Meridian School District — with a start on construction around fall 2026.
“We’ve needed it 10 years ago. Students deserve these opportunities.” Everett said. State and federal funds, grants and donations will cover the $12 million cost to build the new
Whatcom Early Learning Center.
The new Whatcom Early Learning Center would be approximately 14,000 square feet and be able to provide care for 80 to 120 children — with extended hours to better support working families. Everett said the state has a shortage of child care options, especially in rural Whatcom County. This early learning center will provide one infant room, one age-flexible room, two toddler classrooms, two preschool classrooms, three behavioral and mental health professional offices, two conference rooms, an adult classroom for skills center and college students, and ancillary service areas. With extended hours and days of operation, this center will be an ideal space for community adult education focused around child care and early learning.
The Whatcom Early Learning Center will be constructed where the district office is located. The current district office, a farmhouse
built in the 1890s, will be auctioned. District office staff will move to a new prefabricated modular building that will be constructed on the northwest corner of the Meridian High School parking lot in spring 2026. The new building will have four classrooms to accommodate the expansion of the Whatcom County Skills Center. There four classes will house expanded course offerings beginning in February 2026. The next step is starting the construction process with a newly hired architect to facilitate the planning and design. The center funding will come through the state Legislature — and not a levy within the district.
According to the NCTA website, the 2025-2026 school year started on Aug. 27. For those wanting to know more about this program, see nwtech.k12.wa.us. ■
Sustainable Solutions – Since 1991
Photos, opposite page, left to right: Jack Cook (Nooksack Valley High School), Tristan Haines (Bellingham High School), Clinton Bankston (Blaine High School), Mac Rasmussen (Bellingham High School), Leanne King (Squalicum High School), from the Whatcom County Skills Center fire science program, located at Meridian High School. This page: students in the skills program in 2022. Courtesy photos.
Washington’s new sales tax onslaught devastates small businesses
This article was previously published online at washingtonpolicy.org
New legislation will unleash a slew of new sales taxes on services, courtesy of Senate Bill 5814, designed to plug a self-inflicted budget black hole at the expense of hardworking entrepreneurs.
From freelance information technology consultants to mom-and-pop temp agencies, the ripple effects of this 6.5% (plus local add-ons up to 10.5%) tax increase on previously untaxed services such as advertising, security and software development is already proving catastrophic. Over 90,000 businesses must now scramble to comply, but it’s the little guys, those with razor-thin margins and no army of accountants, who will bear the brunt.
The new tax blankets services from temporary staffing ($833 million projected revenue over four years) to live events ($360 million) and website development ($189 million) to name a few, with only a small number of exemptions. Only hospital temp staffing gets a pass. Small firms, lacking the scale of giants such as Comcast
(which is already suing to block the ad tax as unconstitutional), face compliance costs estimated at $5,000 to $10,000 per year in software and consulting fees alone, per a 2025 National Federation of Independent Business analysis.
The math doesn’t lie. Washington’s small businesses, 99% of all firms, employing nearly 1.5 million workers, generate $800 billion in annual output. Yet this tax expansion, projected to rake in over $1 billion over two years for Olympia’s coffers, ignores the downstream carnage.
Rural businesses, like Walla Walla event planners or Yakima security firms, are hit hardest. Online service delivery once bypassed physical nexus, but now every gig is taxable. Prices will rise on everything from website builds to holiday party bookings, fueling inflation in a state already grappling with 4.2% cost-of-living spikes.
Proponents tout “fairness,” claiming it levels the field against goods sales tax. This is government gluttony, prioritizing pet programs over prosperity. A compliance nightmare that’s already spurred an uptick in service business filings for dissolution.
If Washington is to remain a place where innovation and entrepreneurship thrive,
policymakers must prioritize tax and regulatory reform that supports small businesses rather than burdens them. This means rethinking the business and occupation tax structure, resisting the urge to target specific industries for punitive taxation, and ensuring that new regulations are carefully crafted to avoid stifling competition and investment.
Senate Bill 5814 should be repealed. The 2025 session and SB 5814 should serve as a wake-up call. Without course correction, Washington risks losing its reputation as a hub for small business and innovation. The Washington Policy Center will continue to advocate for policies that create a fair, competitive and predictable environment for all businesses, large and small. ■
Mark Harmsworth was elected in 2014 to the Washington State House of Representatives, where he served two terms. His focus was on transportation and technology, including serving as the ranking member on the House Transportation Committee. Mark works in the technology industry and is an owner of a small business after completing a long career at Microsoft and Amazon.
Mark Harmsworth
Unlock capacity without hiring
How small businesses can gain 15% to 20% more performance through clarity, feedback and accountability
Margins are under pressure. The cost of finding great people keeps climbing. And yet, most companies are already leaving 15% to 20% of their team’s capacity untapped.
Gallup estimates that disengaged employees drain the global economy of $8.8 trillion a year, nearly 9% of the gross domestic product. The American Psychological Association points to unclear expectations as a leading cause of workplace stress. Put those two together, and you can see why projects stall, why meetings drag without decisions, why managers avoid tough conversations, and why high performers quietly disengage.
If any of that feels familiar, you’re not
imagining it. These are the fingerprints of a common enemy: disengagement.
And here’s the irony: Disengagement isn’t solved with more headcount, free snacks or another employee-of-the-month award. It’s solved by leaders who do three things consistently: provide clarity, give real-time feedback, and hold people accountable in ways that are both constructive and fair.
Clarity: the first capacity multiplier
Imagine trying to win a game without knowing the rules or how the score is kept. That’s how many employees experience their jobs. Gallup data confirms that only about half of workers strongly agree they know what’s expected of them.
Clarity doesn’t require a 10-page human resources manual. It’s about answering three simple questions:
• What outcomes define success in this role?
• What decisions can this person make?
• How will progress be measured?
When employees know whether they’re winning or losing each week — even each day — they stop guessing and start performing.
Local companies have learned this the hard way. Business Pulse profiled Exxel Pacific (January/February 2024), where core principles are posted on every office wall. Those aren’t posters; they’re anchors. In another feature, GK Knutson (January/February 2023) showed how aligning employees around family-driven values has helped the company thrive in a competitive labor market. Both examples show that clarity, embedded into daily work, drives execution.
Tom Doll
Hiring for fit: protecting your margins
Here’s a tough truth: keeping a C player isn’t just a drag on performance — it’s a tax on your best people. It quietly tells your A players that excellence is optional. Hiring for fit protects you from that tax. Technical skills can be trained; values and behaviors can’t. That’s why smart leaders design interviews around behavior. Ask candidates: “Tell me about a time you owned a mistake.” Or “Describe how you supported a struggling teammate.” Their answers will reveal whether they belong on your team long before you see their technical ability.
As Business Pulse reported in “Recruiting in Today’s World” (March/April 2025), local employers who prioritize behavior and alignment in hiring are outperforming those chasing résumés alone.
Feedback: the engine of engagement
If clarity sets the stage, feedback provides the fuel. And yet, many managers treat feedback like flossing — they know it matters but avoid it until there’s a problem.
Gallup found that managers account for 70% of the variance in employee engagement. That means if your team is disengaged, it likely traces back to a manager who isn’t talking to them.
Erin Meyer, author of “The Culture Map,” shows that while feedback styles differ across cultures, the need for real-time, specific input is universal. The most effective leaders normalize quick, actionable feedback: “Here’s what worked. Here’s one thing to tweak next time.”
When employees hear this consistently, accountability stops being scary and starts being motivating. As Business Pulse highlighted in “Three Strategies to Recruit Reluctant Workers” (March/April 2023),
companies that doubled down on recognition and feedback outperformed peers in one of the toughest labor markets on record.
Where it all leads
So, let’s connect the dots. When expectations are clear, when you hire for fit, and when feedback flows daily, disengagement loses its grip. Suddenly, the 15% to 20% of hidden capacity inside your existing payroll comes alive.
And when that happens, something bigger emerges. You’ve probably heard the phrase shouted in boardrooms and business books alike: “Culture eats strategy for breakfast.” Now you know why.
Because the system you build around clarity, accountability and feedback doesn’t just protect margins today — it builds the intangible capital that represents 80% of your company’s value. That’s the capital buyers look for in transition planning or a business sale. It’s what makes your company transferable, durable and worth more.
Unlocking capacity isn’t about squeezing people harder. It’s about giving them the clarity and accountability they crave. Do that well, and “culture” stops being a buzzword. It becomes your competitive advantage — the quiet engine raising your margin floor today and building long-term value for tomorrow. ■
Tom Doll is a business coach based in Bellingham with over 30 years of executive experience and 10 years of coaching business owners. He is a certified Pinnacle Business Guide and a Certified Exit Planning Advisor. He helps leaders unify teams, clarify vision and strengthen the intangible capitals that drive 80% of company value. His focus is on helping owners alleviate the frustration of running their business today while positioning for growth and transition.
3 signs you’re losing 20% of your capacity
1. Projects stall or cycle endlessly. Deadlines slip, meetings end without decisions, or work gets redone. That’s not busyness — it’s lack of clarity.
2. Managers dodge real conversations. Feedback only shows up in annual reviews or when something goes wrong. Silence isn’t neutral — it’s disengagement fuel.
3. Chronic underperformers linger. Everyone knows who they are. Keeping them signals that accountability is optional — and your A players notice. If two or more of these sound familiar, you’re already leaving 15% to 20% of your team’s capacity on the table. The fix isn’t hiring. It’s leadership: clarity, feedback and accountability.
Why your team might resist AI (and how to respond)
Picture this: You’ve spent months experimenting with AI, and you’re genuinely impressed by how it’s streamlined your work and sparked creativity.
You decide it’s time to roll AI out to your team. You share your enthusiasm at your next staff meeting and do a quick demo.
But instead of curiosity, you mostly get raised eyebrows and skeptical looks. Jason in marketing volunteers, “I don’t trust AI.” Nicole in sales remarks, “I’m a people person. AI isn’t human.”
If you’re feeling deflated by responses like these, don’t be. They’re completely normal. And predictable.
In a recent talk, AI expert Allie K. Miller (the most-followed voice in AI business and a former leader at Amazon and IBM) identified the most common reasons teams resist AI. I see these same patterns in my consulting work. Fortunately, each one has a straightforward response.
Why teams resist AI (and what you can do about it)
“I’m a people person. I don’t want to work with machines.”
This often comes from employees who see themselves as service oriented or relationship driven. They’re proud to be the “human touch” in a digital world, and they worry AI will undermine that.
What to say: “That’s exactly why AI matters — so you can spend more time doing the human parts of your job. You’re still the expert here. AI is like having a genius assistant who can draft things for you to review and approve.”
Try this: Ask: “What part of your job do you wish you had more time for?” Then find a way AI can help buy that time back.
“I don’t trust it.”
Some people are skeptical of the output quality. Others worry about privacy. These are valid fears.
What to say: “You’re always in control. AI creates the first draft, but you decide what’s good enough to use. And we’ll set up clear safety measures to make sure it’s used responsibly.”
Try this: Give your team a safe “sand-
Dana Rozier
box” — a private place to test AI tools without fear of getting it wrong. Let them explore before they apply it to real work.
“I don’t see the point.”
This group isn’t scared or skeptical. They’re just busy. They don’t have time to figure out something new unless it’s clearly worth it.
What to say: “You’ve got a lot on your plate. But if this can help clear it faster — with less stress — it’s worth a quick look. We’re not asking you to become an AI expert overnight.”
Try this: Don’t say, “Go play with AI.” Show one use case that fits their real workflow, like summarizing a report or drafting a tricky email.
Let me show you how it works in practice.
I recently worked with a local geotechnical consultant who was skeptical about AI. He couldn’t see how it could help with technical reports — a task that took him hours. I showed him how to feed the AI examples of his past reports and then provide it with the technical information for a new one. When he watched the AI produce an excellent rough draft in under two minutes, he exclaimed, “Are you kidding me? This just saved me five hours!”
That was his light bulb moment. He now uses AI to draft his reports, freeing up time for higher-value work like client conversations.
Learning AI tools won’t be the problem. Change will be.
Most business leaders worry about the wrong thing. They think AI adoption fails because the technology is hard to learn. It’s not.
Your team will figure out ChatGPT in a few hours. The real challenge is getting them to change how they work. That geotechnical consultant didn’t
struggle with the AI interface. He picked it up immediately. What was hard was changing his workflow. He had to adjust his long-standing habit of manually creating technical reports to leverage AI instead.
Change is hard even when a new way is clearly better. Your team will need support to make it stick.
Here’s how to make change stick.
Start with volunteers, not mandates. Find naturally curious people or those overwhelmed by repetitive tasks. Let them experiment and share wins.
Make it about problems, not tools. Don’t say, “Learn AI.” Say “We’re solving the problem of spending too much time on routine emails.”
Celebrate wins loudly. When someone saves three hours using AI, make sure the whole team hears about it.
I’ve seen this approach work. Teams that adopt AI this way get comfortable with the tools. But more importantly, they get good at adapting to change itself. Those two skills together will keep your company competitive in the years ahead. Are you prepared to lead them through it? ■
Dana Rozier is an AI strategy consultant and educator helping professionals and businesses cut through the AI noise to work smarter, not harder. She has over 25 years of experience in education, curriculum development and entrepreneurship. Dana specializes in practical AI applications that streamline workflows, boost productivity and spark innovation. As founder of Nova Consulting AI, she partners with organizations to lead strategy sessions and hands-on workshops that show how tools like ChatGPT and Claude can drive smarter decisionmaking and tangible business results.
Why AI
Dann Mead Smith
Budget headaches expected to continue in 2026
Officials should decrease county and state spending rather than increasing taxes further
As we look ahead to 2026, the policy issues facing our state and county will be similar to those we saw this year. Budget issues at the state and county levels and in the city of Bellingham could lead to higher taxes, even after the large tax increases passed by the majority of the state Legislature and Whatcom County Council over the past 12 months.
Recent polling on the economy & taxes
Before we look at potential taxes and other policy issues that will be at the forefront in 2026, it’s instructive to review recent polling to gauge how citizens feel about the level of taxes in our state. In September, Napolitan News Service/ RMG Research released a statewide poll that showed that three-quarters of voters agree that taxes in our state are too high (this includes 70% of Democrat voters). When told that the Legislature and governor passed a $9 billion tax increase during the 2025 legislative session, that number increased from 77% to 82% who say taxes are too high. In addition, 80% of respondents say that the Legislature should wait and see what impact the taxes passed just a few months ago have rather than considering future increases. Voters who identify as Democrats and Republicans have broad agreement on this point, with 81% of Republicans and 79% of Democrats suggesting that legislators wait before any new taxes are part of the debate next year.
State-level spending & new taxes
As we have covered in past columns, the state government has been increasing at unsustainable levels over the past several years. The state budget was $33.6 billion about ten years ago (in the 2013-2015 state budget) and is now at $77.8 billion for the current biennial budget, including a 6.5% increase just this year at the same time that legislators were told economic growth would be only 4.5%. This dramatic increase in state spending is what led to the massive increase in
taxes earlier this year — including increases in the new capital gains tax, estate/death tax, gas tax, and business and occupation taxes and the extension of the sales tax to new services. Even with the projected revenue from these new taxes, the state’s budget outlook showed a budget shortfall of nearly $500 million for the current 2025-2027 biennium. “These (new) tax hikes stifled growth rather than fueling it,” wrote Mark Harmsworth in a column for the Washington Policy Center. Over this same 10-year period, the state’s business tax rating has dropped from sixth in the country in 2014 to 45th this year. Democrat leaders are already setting the stage for more taxes when they return to Olympia in January. Two new taxes that might be on the table were bills that did not pass in 2025, mainly due to opposition from Microsoft and other corporations: one to create a new wealth tax and another to take Seattle’s Jumpstart Payroll Tax — which taxes businesses that pay their employees over a certain salary amount (about $140,000 was the level being considered last year) — statewide. These taxes will be on the table again. At the same time, some businesses and nonprofits will be asking the Legislature to take a look at the taxes that were just passed and are going into effect this fall and in January, including sales taxes that will impact nonprofit organizations such as food banks and an increase to the business and occupation tax that will hit independent grocery stores and result in higher prices for food and other grocery items.
Local issues to watch for in 2026
In addition to the fiscal crisis at the state level, we are seeing similar patterns of increasing government expenses, with lower tax revenue than was estimated for the county and in Bellingham. Some of this information might be out of date by the time this column (written in early October) is published, as both the county and Bellingham might either be asking taxpayers to increase taxes or have decided to increase them without a vote. At the time of publication, Bellingham was considering a one-tenth of one percent sales
tax increase (about 10 cents on a $100 purchase) that would raise about $3.9 million for “public safety,” which will include hiring more police officers along with other to-be-determined items.
A possible property tax increase to pay for county road maintenance, which already was increased last December by the majority of the Whatcom County Council, was reported by The Bellingham Herald. According to a news story that ran in the newspaper in September, money set aside to pay for infrastructure is falling behind the costs of labor and supplies. The Public Works Department plans to cut eight jobs and freeze 13 other positions while also searching for new sources of revenue, the article said. The Herald stated that Public Works Director Elizabeth Kosa urged the council to consider new taxes for roads and to direct money from elsewhere in the county to the Public Works Department.
Other local issues to watch include:
• The finalization of the Whatcom County Comprehensive Plan.
• Which of the 12 amendments put on the ballot by the Whatcom County Charter Review Commission will be passed by county voters in November? Some of the amendments have price tags associated with them so will need to be paid for in the county budget.
• The outcome of the citizen ballot initiative that would repeal Prop. 5/the Healthy Children’s Fund. The initiative turned in enough signatures to qualify for the ballot last year but was then challenged by the majority of the council and was kept off the ballot in 2024 by a local judge. This ruling has been appealed and was heard by a State Court of Appeals panel in September. ■
Dann Mead Smith is the co-founder and co-director of Project 42. He is the former president/CEO of Washington Policy Center and has been writing for Business Pulse for three years. Dann lives part time in Birch Bay and Seattle.
“You dream it, we make it happen.” New business manages aviation assets
Whatcom business 48North is essentially an aviation asset manager. What does that mean?
“By design, we don’t own or charter out our own airplanes,” said CJ Costanti, 48North president and chief pilot. “A potential or current airplane owner would come to us to help manage the myriad and complex ecosystem that goes with airplane ownership. We throw our arms around the operation as an expert team.”
Costanti has been a lover of aviation since his youth.
“The family legend is that I was trying to sit up and point at airplanes before I could talk,” Costanti said. “I was 10 when the movie ‘Top Gun’ came out, so watching Navy jets blasting off aircraft carriers kind of sealed the deal.”
Costanti learned to fly at Big Bend Community College after high school and completed its commercial pilot program in 1996. He then added his flight instructor certification while completing a degree at Western Washington University. Today, he is Airline Transport Pilot certified, the highest level of pilot certification issued by the Federal Aviation Administration.
After graduation from WWU, Costanti worked as an instructor full time at Bellingham International Airport before getting an offer to fly a large business jet for the owner of a company in Southern California.
“Those eight-plus years turned out to be my introduction to business aviation and executive flying, and I’ve stayed in this segment of the industry for my entire career,” Costanti said. “I’ve never had any real desire to fly for the airlines, but I hold the FAA Airline Transport Pilot certificate and have type ratings for several turboprop and jet airplanes.”
Costanti said he’s seen a growing need in Whatcom County for this type of business while flying around the Pacific Northwest for over 20 years. 48North is based out of Bellingham International Airport and currently has two pilots and two maintenance professionals.
“We officially started in 2018 as a one pilot, one mechanic operation, managing and flying a Beechcraft King Air for a local company, Axiom Construction.”
In 2021, Axiom upgraded from the King Air to a Bombardier Learjet 45 to assist expansion into multiple states.
“We have an awesome team, and our aim is to replicate this model for other local companies and entrepreneurs, family offices and HNWIs (high-net-worth individuals),” Costanti said. “Local business and private aviation has great potential to grow, and we are ready and able to be a resource that grows alongside that emerging need.”
While based locally, 48North goes beyond the Whatcom footprint.
“The beauty of our business model is that we are tailored to what each airplane owner needs,” Costanti said, “so we don’t service an area like an airline would with a dedicated flight schedule or city pairings. If an owner has a need to go to, say, Salem for an all-day meeting and dinner, that’s our mission for that day. Our qualifications enable us to have the ability to fly and maintain nearly any airplane a customer could select for their needs. We have a deep background flying around the Pacific Northwest especially, but we’ve been all over North America. You dream it, we can make it happen.”
Essentially, 48North has focused on one large client, Axiom, but Costanti said the company pictures expansion beyond that.
“It’s been incredibly rewarding to grow with Axiom and meet their operational needs as their transportation mission expanded,” he said. “They are a fantastic partner. We would love to offer that capability and expertise to other local business owners, companies and families.”
Costanti said he doesn’t want to become too large and compete with big fractional and charter providers.
“We have some big ideas for aviation locally and in the greater Pacific and Mountain West, but we can’t do it alone,” he said. “We really prioritize relationships and growing organically as the right scenarios present themselves.”
Costanti believes in giving back to the business sector and the community at large.
“I’m currently mentoring a handful of people just getting into aviation (including his son, Cooper, who is attending the aviation maintenance program at Big Bend Community College), and I always tell them, ‘I couldn’t recreate my career if I tried.’ So many instances of right place, right time moments and having a great network to draw on when I needed advice or a shove in the right direction. Starting a business is somewhat similar: You can have a general aim of where you want to be, but you have to seize an opportunity when it jumps in front of you. You also need to know when to let things pass. Whatcom County is a pretty small aviation market compared to Seattle or Southern California, but the fundamentals of success are the same: Do the right thing, be someone people can count on when things are good and bad, give more than you take, be a professional in all things. It’s simple, not easy.”
Costanti, a longtime resident of north Whatcom County, has served on the Lynden School District Board, joining in December 2017 as an appointee. In 2019, he was formally elected to the board and served as its president. He decided not to run for reelection in 2023. He’s also coached youth football for several years in Lynden.
The decision to join the Whatcom Business Alliance was an easy one for Costanti.
“Don’t tell her, but I’ve stolen Business Pulse magazine from my wife’s farm office for nearly two decades, so I’ve been a fan of the writing and local coverage for a while now,” Costanti said.
Costanti chose to join the Whatcom Business Alliance in the past year as a member — and now gets his own copy of the magazine as well, so he no longer has to steal from Angie.
“The WBA conference this spring at the Bellingham Golf and Country Club was a great intro to the business ecosystem around WBA,” Costanti said. “I look forward to
Elisa Claassen
Top photo: King Air 300, Paine Field, Everett. Bottom: Lear 45 over Mount St. Helens. Right: sunrise over Mount Baker. CJ Costanti, owner of 48North. All photos courtesy of CJ Costanti.
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