Kitsap Peninsula Business Journal - April 2016

Kitsap Peninsula

Business Journal An edition of the Kitsap Sun

KPBJ.COM

April 2016 | Vol. 29, No. 4

Affordability is Central Duo has reputation for building quality homes with a little ‘pizazz’ Page 4 Active local developers move into Bainbridge as project partners | 8 Former Starbucks honcho’s new venture in Gig Harbor | 9

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HOME | CONSTRUCTION | BUSINESS

| April 2016 |

WELCOME | DAVID NELSON

On the Cover Central Highland Homes co-owners David Smith and Barry Keenan at the Summerset housing development in Poulsbo. | Story, page 4 Meegan M. Reid photo

Kitsap Peninsula

Business Journal KPBJ.COM

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

David Nelson, Editorial Director david.nelson@kitsapsun.com Tim Kelly, Managing Editor tim.kelly@kitsapsun.com Mike Stevens, Marketing Director mstevens@kitsapsun.com Jeremy Judd, Digital Director jeremy.judd@kitsapsun.com For inquires to receive the Kitsap Peninsula Business Journal at your business, contact Circulation Sales Director Hugh Hirata at 360792-5247 or hugh.hirata@kitsapsun.com.

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

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

Standard mail postage to be paid at Bremerton, WA

POSTMASTER: Send address changes to Kitsap Sun, PO Box 259, Bremerton, WA 98337-1413 © 2016 Kitsap Peninsula Business Journal / Kitsap Sun

A future that we can afford

C

onstruction and real estate development is a regular topic in the Kitsap Peninsula Business Journal, and always popular. This is always one of the most interesting issues to plan stories for because there are so many projects ongoing, and these stories are among our most popular — everyone wants to know what the new construction popping up is going to become.

The conventional wisdom has been that Seattle’s skyrocketing prices drive sales and development on our side of the water. Two KPBJ stories this month illustrate this — new South Kitsap homes that should be 40 percent off market rates in Seattle, and homes in

North Kitsap labeled affordable at prices north of $200,000. My guess is many of us many have new neighbors that reinforce the perception as well.

Such examples of “affordable” are fair descriptions when compared with current Seattle prices, although defining the word across the community is an issue we will deal with soon, if not already.

The boom in housing prices and development certainly has winners, but there’s a sharp edge to be mindful of — a growing lack of rental housing, particularly on the lower end of the scale, thanks to apartment rents that increased by 15 percent on average in 2015.

Obviously there’s incentive for owners to make improvements that can price out a portion of the population when the market responds with a vacancy rate of 3 percent, down from

10 percent in 2013. And if we feel it in Kitsap, just imagine what Seattle’s renters are considering. Can a median income purchase anything there any longer? The cross-sound influx seen as a financial bonanza to builders or home sellers may have a significant impact on our middle-class prices, our affordable housing agencies, and tenants looking to keep their rent stable.

The county is fortunate to have organizations focused on providing housing resources for different income levels, providing a mix of options from public and private agencies. The Bremerton Housing Authority has added nearly 300 affordable units in the Bay Vista neighborhood of West Bremerton; nonprofits such as Community Frameworks and Habitat for Humanity assist first-time homebuyers; Bain-

3

bridge residents have seen a renewed emphasis on providing affordable options through projects like Housing Resource Bainbridge’s Ferncliff Village and a fledgling partnership with Olympic Property Group; developers like Sound West Group are rebuilding blighted parts of urban centers so we can infill rather than sprawl.

Affordable housing is a serious need, and an immediate one. How our network of homebuilders, developers and public agencies solve that is a story still unfolding, and all of us should encourage those efforts. But I also see a story of opportunity — through new housing revitalizing communities and schools, new residents with talents to lend in neighborhoodsacrossourpeninsula,and partnerships and solutions now developing that will help a community retain its mixed demographics and remain proud of that character.

• David Nelson is editor of the Kitsap Sun and editorial director of the Kitsap Peninsula Business Journal.

Lots of lots keep builders busy in South Kitsap Three housing developments, including the build-out of the remaining McCormick Woods land, could add more than 2,000 homes in the South Kitsap area west of Highway 16 in the near future. Story, page 12

Plan shapes up for food, fun and sustainability Former Starbucks executive Troy Alstead left the corporate world and is launching a new business venture described as a “sustainable social hub” at Olympic Towne Center in Gig Harbor. The as-yet unnamed project will have a restaurant featuring locally sourced food, and entertainment options including two kinds of bowling and other activities. Story, page 9

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| April 2016 |

5

Surge in housing permits covers all of Kitsap are in the city’s future. In addition to new construction at McCormick Woods and McCormick West, 300 lots are slated for a development called Stetson

By KPBJ staff

Home builders have returned to Kitsap in a big way.

The number of permits issued for single-family residences across the county increased 42 percent in 2015, according to numbers reported by planning departments.

Here’s a look at some notable developments around the county: BAINBRIDGE ISLAND The city issued nearly 100 permits for single-family homes in 2015, and projects were scattered across all parts of the island.

Pockets of construction included a small neighborhood being built along Ferryview Lane off Wing Point Way, where 11 homes were permitted. The owner is Freestone of Fife.

A smattering of other residential developments are in the works around Winslow. A Kent builder plans to construct 18 homes south of Wyatt Way and 19 homes off Weaver Road.

Another 28 homes are planned at the northeast

corner of Madison Avenue and Wyatt Way. BREMERTON The largest single-family development underway in Bremerton is far from downtown. Freestone continues building out its 250-home Bayside neighborhood, which is situated on an isolated patch of incorporated Bremerton between Gorst and Port Orchard.

Developers recently revived plans for a sprawling development east of Bayside. The 134-acre Sinclair Ridge neighborhood will include 343 lots. Six hundred were originally planned.

PORT ORCHARD Single family permitting in Port Orchard doubled from 2014 to 2015. Quadrant Homes kept hammering away in the vicinity of Feigly Road north of McCormick Woods Horseman Heights off Horseman Road added about 20 homes as did Fredrick’s Landing off Sidney Avenue.

A host of home starts

Heights is slated at Sedgwick Road and Glenwood Road.

POULSBO Poulsbo continues to be a

hotbed for residential construction in the county.

Quadrant Homes was wrapping up work on one neighborhood last year and beginning construction

on another. The Bellevue builder has sold out its 90home Vinland Pointe subdivision on Finn Hill Road.

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6

| April 2016 |

TYPICALLY PEOPLE TELL YOU if you’re doing it right and have your systems in place, you can weather any market. But last cycle was significantly different — dramatically steep and fast and furious. It caught a lot of people off guard, so many were scrambling.”

— Rich Jacobson of Keller Williams West Sound.

LARRY STEAGALL

Rich Jacobson, branch manager/broker at Keller Williams West Sound in Silverdale, worked for awhile at Home Depot to weather the downturn in the real estate business.

Recovery in real estate market includes workforce

■ Many offices on Kitsap Peninsula are adding new agents

By Rodika Tollefson KPBJ contributor

The turnaround of the real estate market is helping boost the number of brokers on the Kitsap Peninsula. Many of the local offices have been adding multiple agents to their lists and continue to hire.

“There’s a new push, with new brokers coming into the business, because the market seems easy,” says Frank Wilson, branch manager for John L. Scott in Poulsbo.

Easy, that is, compared with six or seven years ago, when the market just about came to a halt.

A large number of homes available were bank-owned, and neither buyers nor sellers were very enthused. The last three years, however, have been pointing to a rebound, even through the market is uneven, skewed in sellers’ favor.

“We’ve had three solid years of improved market, and every year, the turnaround has been better,” says Mike Eliason, executive for Kitsap County Association of Realtors.

He notes that Kitsap County

Debbie Burk, a newly licensed real estate agent, has joined the Windermere Professional Partners office in Gig Harbor, where her son Chris Burk is a broker.

RIC HALLOCK

had 4,274 closed sales in 2015 — a “very good” number compared with the year before.

Carl Peterson, branch manager for Windermere Gig Harbor, says open houses are seeing as many as 10 couples, which is unusual compared to the past.

“We have a lot of buyers and we’re waiting for more inventory to come on the market,” he says.

“There’s enough business out there to keep us busy.”

So busy that the office has been actively hiring, and added seven new brokers since January. But

even so, the number of brokers — 56 as of mid-March — is still far from the peak of 90 prior to the downturn.

“The drive for us to hire more brokers is that we want to continue to grow and maintain the market share we have in Gig Harbor,” Peterson says.

Most of the new brokers he’s been hiring are new to the industry, coming from all sorts of other careers, from education and retail to construction, and from all age spectrums — college grads in their late 20s to baby boomers.

Debbie Burk is one of those baby boomers looking for a career change. Burk, who joined Windermere Professional Partners, a newly opened office in Gig Harbor, has owned a bookkeeping business for 14 years.

When she turned 62, she considered retiring and selling her business. Instead, she got hooked on real estate when she began helping her son, Chris, with marketing. Chris Burk, a broker for two years, has joined the same office — and the two plan to officially become business partners later this year.

Debbie Burk says she’s seeing a lot of buyers though so far has no listings. Still, she thinks it’s a good time to start in this business, especially as her new agency is growing.

She says more agents doesn’t necessarily mean more competition.

“There may be some overlap in your sphere of influence but you’re marketing to the people you know,” she says. “So everybody brings in the people they know.”

One thing she learned in her licensing classes is that 80 percent of income is generated by 20 percent of brokers.

“I want to be in that 20 percent,” she says.

To become licensed, first-time brokers must take 90 hours of training and pass a state exam.

Relicensing is required every two years, which entails another 30 hours of continuing education.

Data provided by Washington State Department of Licensing as of mid-March shows that of the 580 licensed brokers in Kitsap County, 22 were licensed so far this year. Of the brokers still active, 66 received their license in 2015, 71 in 2014 and 35 in 2013. By

comparison, fewer than 100 active brokers were first licensed in the five-year period between 2007 and 2012. (These numbers don’t include the county’s managing brokers, whose current total is 274.)

The membership of the Kitsap County Association of Realtors reflects the ebb-and-flow of the industry as well. At the peak of the market in 2006, there were 1,119 members, according to numbers provided by Wilson. By August 2013, that number dropped to 709, and now stands at 769.

Wilson says many brokers had to leave — even if they were successful — because their spouses lost their jobs and the family needed steady income.

“Some families had to consolidate to create enough income during the downturn,” he says.

“We are seeing some of those brokers coming back.”

Rich Jacobson loved his job too much to leave outright, but he did have to get a part-time job.

Jacobson, who spearheaded the opening of the Keller Williams West Sound office in Silverdale in September 2011, worked at Home Depot for more than a year until that fall.

He says other factors contributed to his part-time employment and he didn’t face as big a financial challenge because his wife continued to work. Still, he needed to do something to keep busy.

“Typically people tell you if you’re doing it right and have your systems in place, you can weather any market. But last cycle was significantly different — dramatically steep and fast and furious,” he says. “It caught a lot of people off-guard, so many were See WORKFORCE, 26

| April 2016 |

7

REAL ESTATE | JIM FREEMAN

Brokers: Need inventory?

Look to HUD homes

F

eeding frenzies. Multiple offers. Disappointed buyers, rising prices. Offer acceptances soaring over the ask price.

It is no secret that housing inventories in Kitsap County are at record lows.

My studies indicate that supply of all homes valued under $500,000 have less than three monthsâ&#x20AC;&#x2122; supply. Most housing analysts agree that in order for a marketplace to be balanced between buyers and sellers that you need four to six monthsâ&#x20AC;&#x2122; supply. Thatâ&#x20AC;&#x2122;s why HUD homes are more important to selling brokers than ever.

What is a HUD home?

Simply put a HUD home is one acquired by the U.S. Department of Housing and Urban Development to remarket following a default and foreclosure of a home owned by a borrower with a Federal Housing Administration (FHA) insured loan. HUD is the federal department that oversees the FHA and other functions. Once the FHA has paid out the insurance beneďŹ t to the investor that owns the loan secured by a home with a defaulted borrower, title is transferred to HUD for remarketing and asset recovery. Lenders who make FHA-insured loans are fully insured for their losses.

The current limit in Kitsap County for an FHA-insured loan on a single-family residence is $307,050.

With the Kitsap County median home price standing somewhere around $240,000 in February, FHA-insured loans are a resource for households with

incomes ranging from low to the upper middle. The inventory of HUD homes can represent a similar proďŹ le.

HUD inventories can also occasionally include twoto four-unit multi-family properties.

HUD employees act as contract managers to oversee operations carried out by private contractors managing and marketing HUD-owned properties.

The contractors include a mortgage compliance manager to oversee the foreclosure process and obtain marketable title. Next is what is called a ďŹ eld services manager that oversees re-keying, cleanup, health and safety repairs. Last is the asset manager that is in charge of marketing and selling the properties. Local listing brokers (LLBs) work as subcontractors for the asset manager.

Prior to the ďŹ nancial crisis of 2007 the market share of FHA-insured loans was about 3 percent of all originations. In combination with other federal government intervention, the FHA was ordered to increase its activity up to what became a 30 percent market share circa 2008 with loan limits higher than they are today.

The minimum down payment for an FHA loan is 3.5 percent. So from 2008 through circa 2013, FHA loans made with a 3.5 percent down payment might certainly have lost more value than the down payment would buffer against.

This represents a large plurality of potentially distressed homes in the future and inventory worth paying attention to.

The FHA is a government agency operating a mortgage insurance program to insure lenders making loans to qualiďŹ ed

borrowers for the purchase or reďŹ nance of qualiďŹ ed residences. Program funding is totally dependent on revenues derived from mortgage insurance premiums paid by the borrowers that use the system with an express guarantee of the federal government.

The FHA was created in 1934 in a package of new federal programs to encourage home ownership and stimulate the economy.

Since its creation the FHA has not had to rely on subsidies from the federal budget although it came close in 2014-15. By law the FHA is required to maintain a level of cash reserves equal to 2 percent of its aggregate portfolio principal. In 2014 by some calculations those reserves had fallen to 1.7 percent.

With some tightening of loan underwriting standards and an increase in the FHA mortgage insurance premium (MIP), the FHA was able to bring the reserves back to regulatory levels and subsequntly lower the MIP, which currently stands at 0.85 percent. This is very competitive with current private mortgage insurance premiums.

Here is some good news.

They are priced right.

HUD homes are valued to sell in their as-is condition with no representations or warranties. For the ďŹ rst 15 days or so of the listing, only owner-occupants can make an offer. There are FHA loans available to deal with minimum repairs and more. These include FHA 203(b), 203(b) with repair escrow and 203(k) to provide a method for owneroccupants to acquire homes that need substantial repair and thereby build sweat See HUD, 13

!

8

| April 2016 |

TIM KELLY PHOTOS

The view looking west from Ferncliff Avenue of the 4.7-acre property where the Bainbridge Landing housing development might be built. The house on the corner of the site would be moved to make way for a public park.

The Bainbridge Landing developers would like to connect a public park on the east side of the property to this park in the adjacent Harbor Square condos.

Multi-family housing development could land near ferry

said is helping shape plans for the project. Two more sessions were planned before the developers have a pre-application meeting with city officials scheduled for April 19.

One key point explained at the meetings with neigh-

■ Two active Kitsap developers are partners

on proposed Bainbridge Landing project

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

The apartment-building surge on the Kitsap Peninsula continues, and has brought two well-known developers together on a proposed project near the Bainbridge Island ferry.

Olympic Property Group andSoundWestGroup(see related story, page 10) are partners on Bainbridge Landing, planned for an undeveloped 4.7-acre site behind the Harbor Square condominiums on Winslow Way East, a couple blocks north of the ferry terminal.

If the project — still in preliminary planning — ultimately is approved for construction, plans call for up to 20 two-story townhomes facing the site’s interior along two sides of the

property, with a minimum 20-foot-wide landscape buffer on the site’s perimeter along Cave Avenue and unpaved Gilmore Way. The townhomes would be about 1,600 square feet each.

There also would be a four-story, U-shaped building with 115 apartments in the center of the site, plus development of a 1-acre park on the east side of the property bordered by Ferncliff Drive, OPG president Jon Rose said.

He said OPG is partnering with Sound West Group to share investment risk on the development, and because of Sound West’s experience in apartment construction projects.

“This is really our first significant project on Bainbridge,” Rose said last month, before OPG’s proposal was picked from among several plans sub-

mitted to the city for developing housing on the island’s Suzuki property (see story, page 14).

The developers have a contract to buy the land from the Cave family for an undisclosed price, though Rose noted the property sale is contingent on city approval of the Bainbridge Landing project.

Before submitting any application to the city, the developers want to gain the support of nearby residents and property owners for the project.

“Part of our due diligence … is a pretty intensive face-to-face with neighbors,” Rose said.

Two meetings were held in November and two more in February to present information about the project to neighboring residents and property owners, and to gather input that Rose

bors is that zoning density for the site — the maximum number of residential units allowed per acre — is the highest in the city because it’s near the ferry.

“This property is zoned for many, many multifamily units,” Rose said at

the most recent meeting.

“This is a very expensive property, and there has to be a certain amount of development to make all the numbers work.”

Asked about rents for See LANDING, 13

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10

| April 2016 |

Sound West Group looks north

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

Sound West Group principal Wes Larson said his firm is “up to our gills” working on redevelopment plans for recently purchased buildings on a block of Fourth Street in downtown Bremerton. That’s in addition to the Spyglass Hill apartment building under construction by the Manette Bridge.

Still on the development firm’s to-do list is an affordable housing project at Sixth Street and Broadway in Bremerton. Larson said that project isn’t a priority right now, though he will be meeting with the Bremerton Housing Authority about future plans for the DL Cady Block, named for his great-grandfather who was mayor of Bremerton.

Meanwhile, Sound West Group is looking north as well. Plans for the Poulsbo Fjord apartments on the site of the former Poulsbo police station are in design review with the city; construction could start this fall or next spring. The active

firm also is involved in its first potential project on Bainbridge Island, a multifamily housing development called Bainbridge Landing (see story, page 8).

“We think there’s incredible demand out there for apartments on the Kitsap Peninsula, and we’re trying to build as much as we can to meet that demand,” Larson said.

Sound West Group is a partner with Olympic Property Group on Bainbridge Landing.

“We have always been interested in Bainbridge, just have not been able to find the right project or the right partner,” Larson said. “We feel we have both in this case.”

Those projects notwithstanding, Larson emphasized that his hometown of Bremerton “is near and dear to our soul” and remains the primary focus of Sound West Group’s development efforts.

“We are expanding our footprint downtown, and looking to redevelop downtown into a cool residential area like Ballard or West Seattle, with a connection via ferry to downtown Seattle” he said.

Parking garage will be first phase of Harrison’s Silverdale expansion

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

Harrison Medical Center could break ground as early as April on a five-story parking garage in Silverdale, marking the start of a massive hospital campus expansion project.

The county is reviewing plans for the 240,000-square-foot structure, which will provide about 787 parking stalls for the Myhre Road medical complex. A construction bid estimate of $17 million was listed in permit application materials.

Designs show a long, rectangular structure situated east of the existing hospital. Each floor of the garage will be about 45,000 square feet. An overhead pedestrian walkway

Permits from 5

Houses are now going up at Mountain Aire, Quadrant’s 145-lot neighborhood on Noll Road, near Poulsbo Elementary School.

Meanwhile, Central Highland Homes’ Summerset development is under construction at the north end of Viking Avenue, with

would eventually connect the garage to the hospital.

For comparison, Harrison’s garage will contain about 100 more spaces than one recently constructed for the Clearwater Casino Resort in Suquamish.

The parking garage represents the first phase in a roughly $240 million expansion that will grow Harrison’s Silverdale hospital to 350 beds from 240.

Additional phases include a 160-foot-tall, nine-story tower, according to a fact sheet provided by Harrison parent company CHI Franciscan Health. Overall, the project will create a total of 640,000 square feet of new space for acute and ambulatory care. Existing facilities in Silverdale will also be renovated and a new cancer center is planned.

Construction is expected

to last 42 months, with an opening tentatively slated for the winter of 2019.

A representative of lead contractor Howard S. Wright at one point estimated the project would use 50 subcontractors and about 150 workers.

Harrison is still determining the fate of its aging, 450,000-square-foot East Bremerton hospital, which could be repurposed or demolished. Meanwhile, the medical group is developing plans for a new Bremerton clinic. The 16,500-square foot facility would provide primary care, urgent care and imaging and lab services.

A site for the clinic has not been announced. It could open as early as the fall of 2018, according to the fact sheet.

128 homes planned over three phases.

The Poulsbo Department of Planning and Economic Development reported a busy start to 2016, with $46,652 generated in revenue at the start of March 1, compared with $450 for the same period of 2015.

After a whole lot of earth moving, building permits are being issued for the Woodbridge Crossing development on Silverdale Way, across from Gateway Park. Forty-two homes are planned in the 7-acre first phase.

Work continued at the 150-lot Sterling Hills Estates, south of Anderson Hill Road.

UNINCORPORATED KITSAP COUNTY

OFFICE SPACE FOR LEASE 9657 Levin Road, Silverdale Land Title Building Full Service Lease Rate -- $26.00 SF 480 - 2,405 SF available Near Kitsap Mall and Harrison Views of Clear Creek Excellent signage and plenty of parking Easy access from Hwy 3 and Hwy 303 (Waaga Way)

Chris Wray, Managing Broker (360) 479-6900

(800) 479-6903

| April 2016 |

Hub

from 9 done before.

“This a very unique facility,” White said. “It would be difficult to describe it, because there aren’t any other facilities just like it.”

He noted that his company has been been working with Alstead on the project for eight years, and that the Olympic Towne Center development has been delayed by the recession and by numerous challenges in the regulatory and permitting process.

“So much time went by, we had to re-conceptualize the whole project,” White said.

“For me in particular, that’s been good,” Alstead said, “because this started for me literally as an idea.”

The prolonged development process that’s finally culminating in construction this year has allowed time for his business idea

ILLUSTRATION COURTESY WHITE HUTCHINSON

A rendering of the Gig Harbor project designated as Building E.

to evolve.

As for choosing a name for the business, several possibilities have been considered but didn’t work out because similar names were trademarked or the URL wasn’t available. Alstead said he hopes to come up with a suitable name for the project that conveys a sense of place.

Alstead is funding the venture himself; he didn’t want to say how much the completed project will cost, only that his investment is “substantial.”

“I am the sole owner, founder, initiator of the idea,” he said. Though he’s using a lot of what he

learned from people he’s known and worked with, “the passion behind it and the funding behind it are all mine.”

According to the website salary.com, his total annual compensation at Starbucks was $4.8 million. Alstead, who worked 23 years at the company and was instrumental in its international growth, also exercised his stock options and sold 100,402 shares for $8.8 million in January 2015, after selling 114,800 shares for $8.8 million in November 2013, according to Barron’s.

Alstead also is setting up a nonprofit foundation unrelated to his business.

KRIS MIHULKA Vice President and Kitsap County Manager

The Board of Directors and the staff of Land Title Company congratulate Kris on her 30th year with the company! Kris, thank you for your hard work, support and commitment.

You always go above and beyond the call every day!

Silverdale Title and Escrow 9657 Levin Road NW Silverdale, WA 98383 360-692-2233

Port Orchard Escrow Branch 600 Kitsap Street #101 Port Orchard, WA 98366 360-876-0450

It will be based on his passion for restoration of the oceans, Puget Sound and local waterways.

The entrepreneur said he hopes his new venture in Gig Harbor shows that a business guided by a commitment to sustainability can be successful.

“I have a passion for

coming to fruition, and he’s looking to the future.

Whatever Building E is ultimately named, Alstead said if the business meets expectations, “then we’ll think about whether there’s an opportunity for more.

“My gut feeling is there’s an opportunity for more.”

FOR SALE INDUSTRIAL/VACANT LAND $530,000 19.34 ac zoned (IND) industrial property within the Silverdale UGA. Easy access to State Hwy 3 off of Newberry Hill Road.

CBA# 541947 MARCUS HOFFMAN 360-271-0023

Rural Commercial building. Natural gas, electricity, water and sewer in the street. Seller has purchased a sewer hook up and is willing to negotiate for an additional cost.

Partial view of Dyes Inlet.

MLS# 867417 DAVE & CINDY MCKAY 360-620-5451 OR 620-6490

COMMERCIAL INDUSTRIAL MLS # 807789 $275,000 Office duplex building ready to occupy or lease out.

Recent upgrades including roof, siding, floors and more.

DENNIS BALDUF 360-649-5053

COMMERCIAL PROPERTY $140,000 Opportunity to own three commercial lots in Bremerton, close to PSNS, bus lines, Seattle ferry and Highway 3! All three parcels assess for well over the asking price!

One parcel has a small home that is currently used as a rental.

So many possibilities here!

MLS# 867979 DAVE & CINDY MCKAY 360-620-5451 OR 620-6490

COMMERCIAL INDUSTRIAL $155,000 Great location would be a great place for another church or non-profit community group. Land is zoned UL, maybe able to be re-zoned for more uses.

MLS# 795626 DENNIS BALDUF 360-649-5053 COMMERCIAL PROPERTY $99,900 Great corner lot, .26 of an acre with 136' of Chico Way road frontage.

Level and cleared - ready for your

DEVELOPMENT POTENTIAL $250,000 Large .67 acre site with a 1500 SF one-level residence-Preliminary drawing with engineering estimates to develop the sit into an additional 4 lots. Sewer on site MLS# 860178 MERV KILLORAN 360-620-2829

Poulsbo

Bainbridge Island 206.842.5636

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sustainability that turned into a business, that’s what is most exciting for me,” Alstead said. “I really believe this is an opportunity to prove that you can be both sustainable and make money; those things aren’t in conflict with each other.”

He said it’s gratifying that the project is finally

360.876.7600

11

www.johnlscottcommercial.com

Bremerton 360.377.0046

| April 2016 |

Landing from 8

the apartments, Rose said the units would have an average size of about 900 square feet and he estimated rents would be $1.70 to more than $2 per square foot.

Bainbridge architect Charlie Wenzlau is working on the site design, and said one of the unique and exciting aspects of Bainbridge Landing is making it a â&#x20AC;&#x153;transit-oriented development.â&#x20AC;? â&#x20AC;&#x153;The city has set up zoning in the ferry terminal district to create pedestrian-oriented development,â&#x20AC;? Wenzlau explained. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s an opportunity for reduced automobile dependence; thatâ&#x20AC;&#x2122;s probably one of the bigger sustainability opportunities with the project.â&#x20AC;?

All parking for Bainbridge Landing residents would be under the buildings, he said, with visitor parking on access streets through the development. City requirements are for one parking space per residential unit. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re expecting we will not have a need even for that much

HUD from 7

equity. All offers are sealedbid and if your client makes the best offer during the initial period deadline, they will get the home. No â&#x20AC;&#x153;highest and bestâ&#x20AC;? hassling after the fact.

Sure, the documents are different and so are some of the policies and proce-

on the south side of the site thatâ&#x20AC;&#x2122;s adjacent to Harbor Square.

The building also is designed to have a two-story arched opening at one corner for walking between Bainbridge Landingâ&#x20AC;&#x2122;s park and the apartment courtyard, Wenzlau said. â&#x20AC;&#x153;We were trying to ďŹ nd a way to open (the site) to the south, and bring sunlight into courtyard, but also ďŹ nd a way to sort of transition the scale,â&#x20AC;? he said.

The preliminary site plan has a couple ILLUSTRATION COURTESY CHARLIE WENZLAU ARCHITECTS freestanding two- or A preliminary site plan for the proposed Bainbridge Landing development that would include townhomes and three-story buildapartments on a 4.7-acre site adjacent to the Harbor Square condominiums near the Bainbridge ferry. ings for what Wenparking,â&#x20AC;? Wenzlau said â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re park on the east side of the de- zlau called â&#x20AC;&#x153;loft homesâ&#x20AC;? on the seeing a pattern with younger velopment, and the Bainbridge courtyardâ&#x20AC;&#x2122;s south side, between millennials; a lot of them choose Landing developers would like the shorter sides of the U-shaped not to have cars. Thatâ&#x20AC;&#x2122;s what is to see a connection to the small apartment building that would nice about this site being close to public park on the adjacent Har- have a maximum 45-foot height. the ferry and town.â&#x20AC;? bor Square property.

The only structure on the proA member of the Cave family The three-sided apartment posed Bainbridge Landing site donated property for the planned building would have a courtyard is an old house that Cave family

dures, but once you know the system it is maneuverable. Plenty of help is provided and often clockhour classes are available for free or low cost. If you would like to have a 20- to 30-minute HUD update presentation for your ofďŹ ce or arrange for clockhour classes, please contact Jessica Campbell at 360-620-9522 or jessica@

JPFreemanTeam.com.

All HUD homes in the country may be viewed at HUDHomeStore.com.

Help resources are available through the asset manager at BLBResources.com.

members built on the propertyâ&#x20AC;&#x2122;s northeast corner, on part of the designated park land. The house, which has been used as a rental, will be moved to preserve it. â&#x20AC;&#x153;A member of the family owns the lot immediately to the north along Ferncliff, and right now our plan is to pick that house up and move it 100 feet north,â&#x20AC;? Wenzlau said.

Rose said the familyâ&#x20AC;&#x2122;s history on Bainbridge traces back to Robert Cave, who was â&#x20AC;&#x153;a horticulturalist from England who worked on the ďŹ rst landscape plan for city of Winslow, and he bought the land that is now Harbor Square condominiums.â&#x20AC;?

At the neighborhood meetings on plans for Bainbridge Landing, Rose told the groups that the Cave family members who negotiated the land sale to Olympic Property Group got an offer for $1 million more from a Seattle developer. â&#x20AC;&#x153;And they didnâ&#x20AC;&#x2122;t take it,â&#x20AC;? Rose said, â&#x20AC;&#x153;because they thought somebody who was local would have a better shot of working with the neighborhood, and not turning it into a gigantic mess.â&#x20AC;?

OFFERING COMMERCIAL CONSTRUCTION AND PERSONAL CONSTRUCTION LOANS IDEAL FOR YOU! Weâ&#x20AC;&#x2122;re committed to knowing you and our communities, so we can provide you with innovative solutions that help meet your financial goals and achieve your dreams.

â&#x20AC;˘ Jim Freeman is a local listing broker for BLB Resources at the Coldwell Banker Park Shore real estate office in Port Orchard.

Shawnee Spencer

Homes from 12

within South Kitsap School District boundaries.

Tosti said the expanded McCormick area will draw many new families.

That would add signiďŹ cant numbers of students in the South Kitsap district, which is trying to pass a $127 million construction bond, primarily for building a second high school on district-owned land off Old Clifton Road, near all three

housing developments.

The bond measure narrowly missed getting the required 60 percent approval in a February election, and the school district resubmitted the bond for a special election April 26. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re wholly supportive of the bond issue, and we have contributed to the bond campaign,â&#x20AC;? Tosti said. â&#x20AC;&#x153;When we move into an area we get involved in the community.â&#x20AC;?

Like Griffin and others, he reiterated that Kitsapâ&#x20AC;&#x2122;s affordable housing makes it

a desirable area, especially compared with the Seattle metropolis. â&#x20AC;&#x153;We ďŹ gure a comparable house on our property versus King County is 30 to 40 percent less,â&#x20AC;? Tosti said, and the homes are â&#x20AC;&#x153;the same quality, and on a better piece of property, with a littlelarger lot.Wearegoing to see a lot families wanting to move into the area, and a lot of retired people.â&#x20AC;? â&#x20AC;&#x153;The marketâ&#x20AC;&#x2122;s already there,â&#x20AC;? he added, â&#x20AC;&#x153;the demand is already there and itâ&#x20AC;&#x2122;smovingupintothatarea.â&#x20AC;?

13

Mortgage Loan Officer NMLS# 463131 360.308.2349 shawnee.spencer@ourfirstfed.com

John Murock Commercial Relationship Manager 360.344.4919 jon.murock@ourfirstfed.com

Local Bankers â&#x20AC;˘ Local Decisions â&#x20AC;˘ Local Focus Interactive Teller Machine M-F 7am - 7pm, Sat 9am - 1pm Learn More > open Account Online > ourfirstfed.com > 800.800.1577

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| April 2016 |

Ferry food change bitter for local company ■ Bremerton-based company’s workers could

lose jobs in contract switch to new concessionaire

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

Dozens of Kitsap County residents could lose their jobs after Washington State Ferries hired a new food and drink concessionaire on March 29.

Bremerton-based Olympic Cascade Services operates galleys on five ferry routes, providing work for at least 75 people in Kitsap and 25 in Anacortes. It and a Mukilteo outfit that serves two routes will be replaced by Centerplate, a multinational corporation based in Stamford, Connecticut. The transition is expected to be completed by mid-June.

Olympic Cascade owner Nove Meyers said he was shocked.

“We think we have a re-

Tappero from 14

very well be held liable!

That being said, many employers believe that discussing current events and topics of public interest builds morale and helps employees to develop relationships with their co-workers. Additionally, many companies encourage their employees to be civic-minded and to be part of their community, which includes being an informed voter.

Businesses should put guidelines about political discussions in place for management and staff.

Clear guidelines create a healthy environment where diversity is encouraged, employees’ opinions and differences are respected, and the company is protected. (As always, it is critical that good poli-

ally good 11-year track record,” he said. “In the past, the ferries have indicated how strongly they want local companies. It looks like they totally changed that direction.”

Most of the workers live on the west side of Puget Sound. Centerline will be based on the east side, so Meyers said he didn’t know how many, if any, would be able to keep their jobs.

A Centerplate spokeswoman did not respond to whether the firm will reach out to the Olympic Cascade workers or give them hiring preference.

Washington State Ferries selected Centerplate from nine contenders because of its promise to expand service, offer a variety of local food brands and improve reliability across all ferry routes. cies are in place in an employee handbook, and that employees are made aware of the company’s policies.)

There are several approaches a company can take to create this environment. They could prohibit employees from: making political comments to customers or the public; wearing any shirts, hats, or political memorabilia; using company computers for disseminating any political information, including jokes, videos, etc.

It’s equally important for managers to be trained in how to conduct themselves and respond to complaints. Subordinates who overhear or are drawn into discussions about politics by their supervisor may feel forced into expressing similar views. This can potentially lead to a claim of a hostile work environment.

Sometimes, businesses favor a candidate who they

The company’s contract is for systemwide galley service, systemwide vending, the Anacortes ferry terminal café and for news, convenience and book stores at the Seattle and Anacortes terminals.

“Our customers see ferries as more than transit,” WSF community services and planning director Kristina Arsenault said. “Our system’s vessels and terminals are valued community gathering places, and the food, drink and spaces should reflect that.

“Centerplate’s proposal offers spaces and products that reflect the unique local character of our region to commuters and tourists alike.”

Centerplate’s proposal features are as follows: • Possibly opening additional coffee and beer feel will benefit their company or industry. The Federal Election Commission (FEC) governs how corporations may disseminate candidate endorsements and campaign information to their employees.

Ultimately, all of these potentially prickly conversations essentially boil down to whether or not candidates are capable of and qualified to perform a job. For many of us, these discussions unexpectedly help us challenge longheld biases we don’t even know we harbor. And, in the workplace, isn’t that always beneficial?

• Julie Tappero is president and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor.

She can be reached at julie@ westsoundworkforce.com.

kiosks on the Jumbo Mark II class ferries that serve Bainbridge and sometimes Kingston.

• Consistent hours across the system, with additional service in the San Juan Is-

lands.

• Creative, fresh and healthful offerings, including local brands such as Hempler’s beef and ham, Uli’s sausage, Beecher’s cheese and Stimson Estate

Cellars wine.

• Promotions and incentives, such as commuterreward programs.

Centerplate has provided concessions for 23 years to The Steamship Authority in Massachusetts. It also operates concessions See FERRY, 18

Grow your business with Government Contracting!

KEDA’s PTAC – Procurement Technical Assistance Center - helps companies find & successfully achieve contracts for work with local, state & federal governments.

Kitsap PTAC Counselors: Mary Jo Juarez and Mona Carlson each bring over 30 years’ experience as federal government contracting officers and have the practical experience and insights to help you understand the process, avoid pitfalls and be successful.

Call 360-377-9499 to set up your FREE business coEnsultation PTAC Classes & Events Classes are free but pre-registration is required!

April 6th 7:30-9am

Contracting Coffee Hour

James McCanna Answers Your Labor Law Questions

May 4th 7:30-9am

Contracting Coffee Hour

Drop in Help for Your Contracting Questions

May 17 & 18

Keyport Industry Day (see kitsapeda.org/ptac for details)

Learn how to do business with NUWC Division Keyport.

Presentations, matchmaking & networking

May 19th & 20th 8am-Noon

Technical Proposals 2-part series

Explores the process of understanding RFPs and submitting successful proposals

June 1st 7:30-9am

Contracting Coffee Hour

Drop in Help for Your Contracting Questions

Contractor Rights & Responsibilities

Know our rights & responsibilities, prepare for risks and learn how to prepare a Request for Equitable Adjustment

th

June 8th 9-11am

th

15

Visit Kitsapeda.org/ptac for more information and registration or contact Theresa Mangrum (360) 377-9499 mangrum@kitsapeda.org

KEDA IS MOVING! Beginning in May (exact date to be determined).

Our new location will be: Cavalon Place, 2021 NW Myhre Rd Ste 110, Silverdale, WA 4312 Kitsap Way, Suite 103, Bremerton | 360.377.9499 | info@kitsapeda.org | kitsapeda.org | kitsapconnected.org

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Promoting Business & Encouraging Community in South Kitsap Since 1890 Kick off Spring

4/14/2016 11:00 am â&#x20AC;&#x201C; 1:00 pm McCormick Woods

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Join us for our monthly luncheon in April as Port Orchard Police Chief Mar� discusses crime sta�s�cs and the percep�on and misconcep�ons regarding the crime levels in South Kitsap.

C H A M B E R

Join us on April 30 for a free Pancake Breakfast and Customer Appreciaďż˝on Specials at McClendonâ&#x20AC;&#x2122;s Hardware in Port Orchard.

Join us at 7:00 am for Breakfast and then be one of the ďŹ rst 500 in the doors at 7:30 am for a free â&#x20AC;&#x153;goodie bagâ&#x20AC;? and other specials.

This will be an excellent opportunity to meet the Police Chief and ask him any ques�ons you may have about Port Orchard Law Enforcement.

K P B J

April Luncheon

THANK YOU TO OUR SPONSORS!

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Come and join the â&#x20AC;&#x153;Yard Beau ďŹ ca on Societyâ&#x20AC;? and start oďŹ&#x20AC; May the right way.

You can register online at www.portorchard.com â&#x2122;Ś May 28th Seagull Calling Festival and Wings Cook-Off â&#x2122;Ś July13th 5th Annual SK Golf Classic

S S

Peterson & Jake CPA Kitsap Sun Kitsap Bank

April Happenings

Harrison Medical Center / CHI Franciscan Health

in and around Port Orchard

Fred Meyer

â&#x2122;Ś 4/14 Chamber Luncheon- McCormick Woods-PO Police Chief Mar

Miller Woodlawn Memorial Park

â&#x2122;Ś 4/16 Farmers Market Opens- Downtown Port Orchard

McCormick Communi�es, LLC

â&#x2122;Ś 4/16 Tribute to our Troops- Tacoma Rainers- Elton Goodwin Founda on

Leah Reynolds - Isagenix

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My Prin ng Services

Yang's Botanical Garden

â&#x2122;Ś 4/21 Chamber A er Hours- South Kitsap School District

Delphis Crea�ve, Inc.

â&#x2122;Ś 4/30 Customer Apprecia on Breakfast- McClendonâ&#x20AC;&#x2122;s Hardware

John L. Sco Real Estate - JeďŹ&#x20AC; Weeks

â&#x2122;Ś More details call the Port Orchard Chamber at 360-876-3505 or visit www.portorchard.com Donâ&#x20AC;&#x2122;t Forget to Vote by April 26th

Sage Financial Advice, LLC

Southard, Beckham Atwater & Berry CPA, PS

Need More?

Social Media Marke�ng Solu�ons

www.portorchard.com

Get in the KNOW, www.portorchard.com 360.876.3505

360-876-3505

P A R T N E R

Air Masterâ&#x20AC;&#x2122;s Hea ng & Cooling

1014 Bay St #3 Port Orchard, WA 98367

C O M M E R C E

Donâ&#x20AC;&#x2122;t Forget to Vote by April 26th for the SKSD School Bond

18

| April 2016 |

Brewery switcheroo ■ Sound will move its taproom when Campana’s

restaurant closes, giving Rainy Daze a place in Poulsbo

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

One of Poulsbo’s oldest restaurants will close this spring, making way for one brewery to expand and another to open in the city.

Campana’s Italian Restaurant plans to serve its last dinner April 30, ending a 40-year run on Viking Avenue. Sound Brewery will move its tasting room from Bovela Lane into the Campana’s building. Rainy Daze Brewing, a popular but low-profile Silverdale beer maker, will slide into Sound Brewery’s space on Bovela and ramp up production.

Campana’s owner Chris Campana said the decision to close the family business was difficult, but he was weary of the restaurant industry, which he said has become increasingly complex and challenging. Campana said he was grateful to the restaurant’s loyal diners for supporting the business through the decades.

The Italian restaurant first opened in Bremerton in 1970 and moved to Poulsbo in 1976. The Campana family operated a second location in Silverdale for a number of years.

The Poulsbo Campana’s will hold a customer appreciation event April 30 and make a large donation to North Kitsap Fishline before shutting its doors for good.

“It’s bittersweet,” Chris Campana said. “It’s been a long run, it’s just time.”

The closing of Campana’s creates expansion opportunities for two Kitsap craft breweries.

Campana will lease the 5,700-square-foot restaurant

Ferry from 15

at Safeco Field, the Tacoma Dome and public venues in Spokane, Yakima, Portland and Vancouver, British Columbia.

Like the last contract, the new

building to Sound Brewery, which expects to open a tasting room there as early as June 1. The new tasting room will mark a second phase of expansion on Viking Avenue for Sound, which shifted its brewing operation from Bovela

manager Mark Hood said he wanted to find a bigger home for the busy tasting room as well.

“We’ve been talking about it for a long time and trying to find another location,” he said.

Soundisobtainingarestaurant-

Campana’s Italian Restaurant, a longtime family-run establishment on Viking Avenue in Poulsbo, will close at the end of April.

Lane to an old truck repair shop on Viking a year ago. The move enabled the brewery to exponentially increase beer production and keep pace with growing sales.

Sound Brewery founder and

type liquor license that will allow it to sell beer and wine and offer more guest taps. Hood said the new Sound Brewery also will serve food, though it won’t boast an extravagant menu.

“We’re going to keep it pretty simple,” Hood said.

Sound sold its original brewing equipment to Rainy Daze and will transfer its lease on Bovela Lane to the Silverdale brewery.

“It’s nice to work with someone we know and trust, who also brews,” Hood said.

Rainy Daze Brewing opened on Olympic View Loop near Bangor in 2012. The brewery’s beers earned a following at area bars and festivals, but Rainy Daze wasn’t able to obtain regulatory approval for a full-time tasting room in Silverdale.

Owner Mike Montoney said opening in Poulsbo will transform his business. The tasting room will allow him to sell beer directly to customers, supplementing his wholesale business.

“It’s going to be awesome, I can’t wait,” Montoney said. “It’s going to be great to finally make money off my beer. I’m peddling beer from Burien to Port Townsend right now.”

Rainy Daze also will be able to brew far more beer in Poulsbo.

Montoney currently brews with a 1.5-barrel system — tiny even by microbrewery standards. In Poulsbo he will take over Sound Brewery’s seven-barrel system.

“What I can do in a week here, I will be able to do in two days there,” Montoney said while wrapping up a recent day of brewing in Silverdale.

Montoney hopes to have the Poulsbo location open by late summer. Rainy Daze will become Poulsbo’s fourth brewery, joining Slippery Pig Brewery, Sound Brewery and Valholl Brewing.

one is for four years with WSF holding an option for six more. A concession fee collected by the ferries system was raised from 7-10 percent of monthly gross sales to 12 percent for food, nonalcoholic beverages and retail, and 14 percent for beer and wine.

Olympic Cascade won the con-

tract after Sodexho dropped it in January 2004, saying it couldn’t make enough money. Boats for 18 months offered only vending machines, which Sodexho continued to supply.

To restore galley service more quickly, the state split it between Olympic Cascade Services of

Bremerton, with five routes, and CDX Ferry Concessions of Mukilteo, with two. Doubleteaming proved troublesome at times because boats switch routes with little notice when one breaks down.

If it happens on routes served by different concessionaires, one

must move its staff, products and cash register from the boat to be replaced by those from the other vendor.

To end that practice, the state sought a single contract for all 23 ferries with galleys. Olympic Cascade put in for all the onboard galleys and vending.

Richard Zehrung of Bremerton sits with his beer at the Sound Brewery tasting room in Poulsbo. He is a regular at the brewery, which in June will move to the Campana’s building on Viking Way.

PHOTOS BY LARRY STEAGALL / KITSAP SUN

Worker Michael Kish fills kegs the expanded brewing facility Sound Brewery opened last year in Poulsbo.

Kitsap Building Association • www.KitsapHBA.com

VISIT the HBA Website! www.kitsaphba.com

WEDNESDAY, APRIL 6 Remodelers Council Meeting 4pm at the KBA THURSDAY, APRIL 7 Developers Council 7:30am at the KBA The Art of Effective Networking (Class) 9am—12pm At the KBA office Register with BIAW (360) 352-7800 TUESDAY, APRIL 12 Significant Changes to the 2015 Codes (Class) 8:00am—12pm at KBA (FULL) Significant Changes to the 2015 Codes (Class) 1:00pm—5:00pm at KBA Register with BIAW (360) 352-7800 WED. & THURS., APRIL 13 & 14 Green Building for Building Professionals (Class) 8:00am—5:00pm at the KBA This is the last chance to take this course in Kitsap!

Register with BIAW (360) 352-7800 THURSDAY, APRIL 14 Spring Fling Social!

5:00pm—7:00pm McClouds Grill House RSVP by phone or online at www.kitsaphba.com FRIDAY, APRIL 15 Business Management for Building Professionals 8:00am—5:00pm at the KBA Lean the management skills that give industry leaders the edge managing small to medium size building/remodeling & service companies.

Register with BIAW (360) 352-7800 TUESDAY, APRIL 26 CPR/1st Aid Training Class 1:30pm—5:00pm at the KBA Certify new trainees or get recertified for 2 years.

Register with the KBA by phone or online THURSDAY, APRIL 28 Exec. Cmt. 2:00pm Gov. Affairs Cmt. 2:30pm Board of Directors 3:30pm

It’s Spring!

Take a Good Look Around Your Home Now that winter is behind us, many of us are peeking out and around the exterior of our homes. With the wild winds we had in March, be sure to look carefully for any signs of damage from those storms as well as reacquaint yourself with your home’s exterior in general.

If you missed the recent Peninsula Home & Garden Expo, not to worry! The Kitsap Building Association has members that can assist you in all aspects of your home’s maintenance. But, remember, with the proper tools and a little bit of time you may be able to do much of the annual spring maintenance yourself.

If you find you want to hire a professional, be sure to verify their registration, insurance, and bond yourself. You can easily look contractors up on the Washington State Department of Labor and Industries’ website at www.lni.wa.gov. Members of the Kitsap Building Association are required to meet the state’s requirements and our member directory is a great place to find qualified, professional, local contractors. You can look up members on our website at www.kitsaphba.com or phone our office M-F 8am – 5pm 360-479-5778..

Here’s a quick list of things to check and take care of now so you can enjoy your summer more: Roof, Gutters and Downspouts A qualified roofer should inspect your roof every three years.

Skylights should also be inspected each time your roof is inspected so leaks don’t develop from cracks and interruptions around the seals, caulking and flashings.

Make sure that gutters and downspouts do not get clogged with leaves or other objects.

Windows and Doors – Inspect exterior windows and doors yearly to see if the caulking around them has split and cracked. If so, replace the caulk and clean any mildew.

For a simple solution to wash extremely dirty exterior windows, combine equal parts vinegar and water or three tablespoons of denatured alcohol per quart of warm water. Use a piece of crumbled newspaper to wash the glass to avoid lint left behind by paper towels.

Siding – Inspect your siding yearly to determine if your wood-sided home needs to be repainted. Trim shrubbery away so that it does not touch the siding.

The exterior of your house is built to withstand exposure to the elements, but a periodic cleaning will improve the appearance and, in many instances, prolong the life of siding and other exterior products.

Garage – The moving parts of garage doors should be oiled every three months.

Remember, if you find you don’t have the tools or the time, be sure to make the Kitsap Building Association your first stop for all the services and contractors you need to maintain your home.

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

2016 Builders & Assoc. Directors Bill Broughton, Ellen Ross-Cardoso, Walter Galitzki, Stuart Hager, Jim Heins, Joe Hurtt, Chad Lyons, Brendan McGeer, Jo Pederson, Shad Smallwood

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

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

Life State Directors Bill Parnell

2016 National Directors Berni Kenworthy, Shawnee Spencer, Kevin Ryan

2016 Alternate Natnl. Directors Mike Brown, Jeff Coombe

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

2016 Council & Committee Chairs Build A Better Christmas ..... Randy Biegewald Built Green.............................Walter Galitzki

By Laws & Nominations ........Judy Eagleson Developers Council..................... Mike Wnek Golf Classic........................Shawnee Spencer Govt. Affairs Cmt..................Miriam Villiard Remodelers Council Chair.....Molly McCabe Membership ....................... Berni Kenworthy Parade of Homes .................................... TBD Peninsula H&G Expo....................Lena Price Peninsula H&R Expo Leslie Peterson & Judy Eagleson

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

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

www.KitsapHBA.com

KBA NEWSLETTER KBA NEWSL

EWSLETTER KBA NEWSLETTER

Events And Activities April 2016

Kevin Ryan Tim Ryan Construction

Teresa Osinski CGP

President, 2016

Executive Vice President

LABOR AND LOTS

Most of us remember the line in the movie from Field of Dreams “If you build it they will come”. Two of the top concerns voiced by builders and others in the construction industry this year are the continued labor shortage and lack of buildable lots. What can we do to help get some traction on improving the situation this year?

In a recent issue of Building Insight from the BIAW (Building Industry of Washington) they provided some data from the NAHB (National Association of Home Builders) on both of these concerns. From those surveyed 76% of builders expect the Labor Shortage to continue to increase and remains a top concern as we continue to spring into the building season this year. This is not something new to our industry. For many who left the trades after the down turn in they have not returned. And as boomers continue to retire from the industry there remains a void in our labor market that must be filled.

In 2014 NAHB reported that their estimates indicated that there would need to be 2+Million Craft Professionals needed by 2017 in order to keep up with the demand and in total approximately 8 Million new job openings by 2018. How can you help? Continue to discuss options with the youth in our community that will let them know that there are great opportunities and other options to post-secondary education if they choose. The KBA is a great resource to contact if you or someone you know is interested in the construction field. Both at the local and statewide level we can provide many contacts for continued education or possible employment with industry professionals eager to build a solid labor force.

In addition to the Labor pinch the shortage of buildable lots was ranked by 59% of builders to be the second highest priority in 2016 according to the NAHB report. So what does this mean for the local economy? As those in our industry know the ripple effect of a stagnant building industry is far reaching. Without the structures in place those wishing to locate to our area will look elsewhere and along with that all the potential new jobs created leave as well. How can we help? Learn to really understand the impacts that the regulations we impose play in this regard. The development process is surely not perfect and there can always be improvements made. At the state and local levels get involved with local government and let your legislators know to keep these issues on the hot plate.

The KBA remains the go to organization in our area for issues related to this industry we are so passionate about. Feel free to reach out to the KBA and let us know how we can help. Our membership is continually looking to build on its 60 year tradition of providing support to the construction industry in Kitsap County.

It’s April and that means the 2016 Peninsula Home & Garden Expo is behind us. It was a terrific event again this year. With almost 200 vendors and displays, our 2nd Annual Garden-Art Walk featuring over a dozen Peninsula area sculpture artists, a dozen on-trend seminars, and a great visit from regional, gardening celebrity Ciscoe Morris the Expo was another wonderful community event. Our two Expos are just one of many ways the KBA connects consumers to local professional contractors and service providers.

We believe in “buy local” and I hope you will continue to look for KBA members and the vendors that support our Expos when you are looking for services in Kitsap County.

This year was our 3rd annual Lego® Brand Building Challenge. A big thank you to our partner, Air Masters Inc for supporting this wonderful family event again this year. I want to thank our 6 esteemed judges: Mayor Patty Lent, Sheriff Simpson, Kitsap County Assessor Phil Cook, Kitsap County Building Official Jeff Rowe, Mayor Rob Putaansuu, and Commissioner Charlotte Garrido.

Each year the work required to pull off this event is incredible and I want to thank our ongoing, dedicated, sponsors Advantage Nissan, Kitsap Credit Union, and the Kitsap Sun. Your support and partnership is so important and it sends a message to the community about your commitment to the economy here and to the professional trades that do so much for Kitsap County. Thank you for your continued support!

Finally, I want to thank our volunteers that helped us manage this event.

Chair Lena Price, Air Masters; Dee Coppola, Wet Apple Media; Monica Phillips, Fairway Independent Mortgage; TJ Erickson, Kitsap Sun; Kevin Ryan, Tim Ryan Construction; Leslie Peterson, Liberty Bay Bank; Berni Kenworthy, Team 4 Engineering; Ron Cleaver, Team 4 Engineering; Sarah Bender, CleanSpace NW; Tamra Ingwaldson, United Way Mason County; Mike & Daydra Denson; Jennings-Heins and Associates; Dave Revis; Robison Mechanical; Jim Minder, Olympia Federal Savings; Jennifer Carter, Caliber Home Loans; Kitsap County Sheriffs Cadets; Kelle Cooper, The Rockfish Group; Peninsula Electric; Joe Gates Construction; GTS Interior Supply, Corliss Painting, Ornamental Stone, and Miriam Villiard, Heritage Builders NW. For information about the next event please visit our website at www. kitsaphba.com or call the KBA today 360-479-5778.

Winners: Joey Girard, Tiger Wockenfuss, Shun-la-ta Smith

Winners: Jonah Horton, Levi Caldwell, & Brock Krause

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Kitsap Building Association • www.KitsapHBA.com MD Design Group Michele Doyle 25940 Pioneer Way NW, Poulsbo, WA 98370 (360) 689-4156 mdoyle@micheledoyle.com www.micheleinteriors.com And the SPIKE goes to…..

Dee Coppola, CGA Wet Apple Media Alpine Pacific Design, LLC Derek DeCouteau PO Box 6, Poulsbo, WA 98370 (360) 731-5903 contact@alpinepacificdesign.com www.alpinepacificdesign.com And the SPIKE goes to…..

Berni Kenworthy Team 4 Engineering Blakely Hill Consulting, LLC Earl Hubbard 4709 Blakely Hill Ave NE, Bainbridge Island, WA 98110 (206) 910-1923 (206) 855-9088 Fax earl@blakelyhill.com www.blakelyhill.com And the SPIKE goes to…..

Kevin Ryan Tim Ryan Construction Inc.

UPCOMING CLASSES – Open to all Industry Professionals The KBA is a great source for education!

Our classes are affordable, local, and on topics important to your business. Members receive a special discounted tuition rate, but all professionals are welcome to register and attend our classes. Designations are available to all that take certain combinations of classes too! Ask the KBA or the BIAW for more information on designations and how one can give you the competitive advantage!

April 12 – Significant Changes to the 2015 Codes – 1pm April 13 – 14 – Green Building for Building Professionals – 8am April 15 – Business Management for Building Professionals – 8am April 26 – 1st Aid/CPR (2 Year Certification) – 1:30pm -5pm * June 9 – Significant Changes to the 2015 Building Codes – 8am June 10 – Move That House! Selling the Contingent Home – 1pm *To register for this course please call the KBA directly or visit our website and go the event calendar (www.kitsaphba.com). All other courses register directly with BIAW (www.biaw.com).

THANK YOU RENEWING MEMBERS 45 Years!

Armstrong Homes of Bremerton 27 Years Northwest Cascade Inc/Honey Bucket Over 10 Years Sentinel Const. and Consult. Inc. (14) Sound Publishing (14) Talbot Excavating 10 Years JWJ Group LLC Over 5 Years Invisible Fence Peninsulas (7) A Better Crawl Inc. (7)

Over 1 Year Disney And Associates Inc. (4) Lakeside Industries Inc. (4) Sound Custom Siding (4) LaMont Design (4) Warfield Masonry LLC Duckworth Pump & Well Drilling Port Madison Ent. Const. Corp.

Prime Lending/Silverdale 1 Year Justin Ingalls/Kitsap Trident Homes Inc. (Affiliate) Bainbridge Heating and Air

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| April 2016 |

23

Artistic furniture featured at temporary showroom ■ Coyote Woodshop uses slabs milled from local trees to create distinctive pieces

By Tim Kelly

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

When a spring storm with high winds battered the Kitsap Peninsula in mid-March, David Kotz figured he’d get some new inventory.

Sure enough, the owner of Coyote Woodshop on Bainbridge Island got a call to retrieve a madrona tree, over 2 feet in diameter, that blew over on Manitou Beach during the storm.

Wood slabs milled from that madrona could wind up in a custom desk or dining room table in someone’s home, but the tree-totable process might take until the end of summer ... in 2019.

“A rough rule of thumb for slabs that I cut at our mill site is a year per inch of thickness to air dry them,” Kotz explained. A 3-inch slab is the typical desired thickness for making a table, “so those will sit for as long as three years to air dry, and then go into the kiln after that. It’s a long process.”

For potential customers interested in seeing the finished product, Coyote Woodshop has opened a temporary showroom displaying the live-edge furniture pieces Kotz and his crew make from wood of unique character and local lineage.

The display space at 563 Madison Ave. has a desk built from a chestnut tree that came from Queen Anne Hill in Seattle, and frog chairs made from Kinnear Park elms in the same neighborhood. A large maple stump from the island’s Wing Point Country Club became a Rorschach-shape coffee table, and woodworkerKristinaOldanishapedan“awkward” piece of spalted maple into a side table with a waterfall edge.

“Probably over 90 percent of the wood we get is local,” Kotz said during a recent interview at the new Coyote showroom.

“Largely from Bainbridge, but also from Kitsap and sometimes out of Seattle.”

He often gets trees from land being cleared for new homes, and some homeowners want the wood used to make interior trim, countertops or furniture.

TIM KELLY PHOTOS

David Kotz, owner of Coyote Woodshop, sits on a custom bench in the temporary showroom set up to display furniture made by his business. The showroom is at at 563 Madison Ave. on Bainbridge Island.

Left: An unfinished cedar stump at Coyote Woodshop’s production facility will be made into a table.

“One client did a built-in desk and a dining table for their new home from a beautiful maple that came off the site they cleared,” he said.

Kotz, who has applied for B Corp. status for Coyote Woodshop, has milled wood from cottonwood and hemlock trees cleared from the site where architectJasonMclennan,creatorofthe LivingBuildingChallengesustainability standards, is building his Bainbridge home. The wood will be used as flooring and paneling.

If homeowners don’t want to use trees cleared from their land, they’ll often let Kotz have the wood in exchange for hauling off the trees.

The woodshop’s sourcing extends as far as northern California for prized Claro walnut, while its own backyard can be the source of fir, madrona, cedar, maple, alder and occasionally even some elm trees.

“Bloedel Reserve had to take out their two big elms down by

the house,” Kotz said. “They’re milled now and have been air drying about a year, so they’ll be coming into production here before too long.”

The native islander has been making a living from wood since he got his first chainsaw when he was 14 and started cutting firewood. He started a sawmill in 1991, and Coyote Woodshop was a home-based business from 1998 until he moved into a larger shop in the Day Road industrial area two years ago, and took on a partner in his expanding business.

“We’ve had a lot of growth in the business the last couple years,” said Kotz, who now has six employees.

That includes commercial jobs for clients such as shoe company Brooks Sports at its flagship store in Seattle’s Fremont district. The woodshop also produced office counters for Retina Center Northwest in Silverdale, and countertops and tabletops for some area restaurants.

PROBABLY OVER 90 PERCENT of the wood we get is local.”

— David Kotz, owner of Coyote Woodshop

“We’ve been moving into that more commercial realm quite a bit lately,” Kotz said. “That’s part of the deal — we’ve grown our production capacity as a company a lot, and so we really are … ready to handle those larger jobs.”

Not only has the production capacity ramped up in the larger shop with more woodworking machinery and the addition of a metal shop for making table bases, Kotz also has substantially increased his wood inventory.

John Breslin, another custom

furniture maker, had a shop and a large supply of milled live-edge slabs stored in a warehouse near the Bremerton airport, but he had to relocate in 2014. So Kotz is storing the wood and helping Breslin sell it, and using some for Coyote’s projects.

Breslin, who’s from Port Orchard, is still making custom furniture pieces in shop space he uses at a large Seattle woodworking business. He said he’s looking for property in Kitsap to build a wood shop for his own business, Fallen Tree LLC. For Kotz, the showroom experiment is the first time Coyote Woodshop’s furniture has had a proper display setting.

“This is all brand new for us,” Kotz said.

“We were really glad to get the opportunity to fill up a space like this,” he added, “because we have so much beautiful wood, and it’s exciting for us to get to build some of our own things, yet we’ve not had space to display them.”

The Madison storefront previously was an art gallery, and it was recently purchased as the new home for Bainbridge Island Physical Therapy. Owner Keith Heinzelman is leasing the space to Coyote for three months before the clinic moves there from its Winslow Way site.

The benefit might be more in exposure than sales of Coyote’s tables, which range from $2,000 to $10,500 for a large maple conference table. The showroom, which opened in February for the First Fridays Art Walk, is open on Fridays and by appointment, but Kotz said there haven’t been a lot of walk-in visitors to the site a few blocks off Winslow Way. He said he’d love to find another showroom location when their short-term lease ends, though nothing is currently planned.

Kotz also has worked with the owners of Furnish Bainbridge and Dana’s Showhouse to display and sell furniture in their Winslow Way stores, and may explore doing that again.

“I think we’ll probably have a big sale before we leave here and see if we can’t move a few things,” he said.

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The catalyst for business prosperity, connection, and opportunity.

EVENTS CALENDAR MAY 3

Business U: How’s Your Digital Presence?

MAY 11

Business Luncheon: Unleashed Entreprenuer Speaker - Dan Weedin, Toro Consulting 11:30 - 1:00 pm at Gateway Fellowship

How to be an Entrepreneur Regardless of Your Job Title

Empress Hill Wedding and Events Venue & P5 Photography Join us for a laid back stroll through the country at Empress Hill - llamas and networking included!

5:00 - 7:00 pm at Empress Hill

P A R T N E R

Dan Weedin, author of Unleashed Leadership: Maximizing Talent & Performance by Opening the Gates of Opportunity, will be giving a presentation on how each person must develop and nurture an entrepreneurial mindset to be both successful and significant in their careers. Regardless of “job title,” we all are entrepreneurs for our own “corporate entity.” That entity is our family and our lifestyle. How we approach our jobs will also impact the quality of our lives. In addition, many entrepreneurs left one boss and went to work for a worse one when they started their own business! This program will benefit anyone that considers themselves a business owner, entrepreneur, or business professional that wants to maximize their talents, boost their income potential, and create a better life.

C O M M E R C E

Unleashed Entrepreneur

Business After Hours

O F

MAY 26

C H A M B E R

Speaker - Cecilie Burleson, Kitsap Sun Is your website up to par? Can you be found on Google? Plus a teaser on Social Media, and useful marketing tips.

5:00 - 6:30 pm at the Poulsbo Chamber

K P B J

MAY LUNCHEON

May 11, 2016 Networking begins at 11:30AM-1:00PM at Gateway Fellowship, 18901 8th Avenue NE, Poulsbo, WA 98370 Reserve your lunch at: PoulsboChamber.com or (360) 779-4848 Photo courtesy of P5 Photography

The Vikings are Coming, the Vikings are Coming!

JOIN NOW!

Visit Historic Downtown Poulsbo on May 20th thru 22nd for the Annual Viking Fest Festival and Parade. Enjoy the carnival, parade, vendors, bands, competitions, pancakes, running race, bicycle ride and more! www.vikingfest.org

Interested in becoming a member of the Poulsbo Chamber of Commerce?

Call us today at (360) 779-4999 or visit www.PoulsboChamber.com

26

| April 2016 |

TECHNOLOGY | CHARLES KEATING

Cybersecurity, privacy and LEADs — We all have a dog in this fight

Y

ou probably heard by now the FBI dropped its case pursing Apple to unlock the phone used by terrorists in California. While this particular case was solved when another firm was able to crack the phone security, it’s part of much larger issues that pit national security against user privacy — and these are connected to international concerns with potential to damage the U.S. and Kitsap economies.

Firms of all sizes are moving applications and data to cloud providers, driven not only by greater functionality and user mobility, but security and cost.

Smaller firms, including like those in Kitsap, need these tools to compete and open the door to new mar-

kets. The United States is the undisputed leader in cloud services with firms like Microsoft, IBM, Amazon, Facebook, Google, Apple and others at the forefront. Washington state is home to all of these firms and tech employment here is driven by their success. Everywhere, the cloud depends on user trust and privacy. Internationally, these American champions are already viewed with deep suspicion and envy. A toxic mix of outdated laws, concerns with government surveillance, and issues pitting national security against user privacy have opened rifts in international relations and user trust — both of which are being exploited.

In one case currently before the U.S. Court of Appeals, the Department of Justice is requesting that Microsoft turn over data stored on its servers in Ireland so DOJ can pursue an

If companies with cloudbased products and services can’t guarantee the privacy of your information with the same safeguards and standards afforded paper data, the implications are worldwide and can impact not only our economy, but the tools we all use to function efficiently in our businesses.

Imagine Microsoft, IBM, Amazon, Facebook, Google and many other American but global companies suffering dramatic losses because other nations won’t trust its services in their country due to our law enforcement practice of trying to snatch personal data

without a warrant.

Imagine the economic impact should those countries then decide to build their own cloud networks — which is starting to happen.

Imagine the numerous small and medium IT businesses selling cloud-related services or products in our nation, state and region that could suffer significant business losses or worse.

Imagine the impact on your business, which relies on these IT efficiencies to thrive and grow.

This is like a frog in a pot, slowly heating up yet oblivious given its relative comfort. This is about much more than the Microsoft case in the news. Rules about electronic communications and data privacy were written in 1986 at the dawn of the personal computer, in essentially pre-Internet days. Laws need to reflect today’s digital world, protect privacy and make

Workforce

immediately and put in offers the same day, then “be willing to go above and beyond,” he adds.

It’s a 180-degree turn from a little over a decade ago, when it was the sellers who had to go above and beyond. But for the brokers, the need to be on their toes hasn’t changed. That’s one observation that Tori Smith with John L. Scott in Port Orchard has noted.

Smith, who left in 2006 to raise her two children, recently got her license again and in March joined the same office where she was previously a broker for five years.

Even more pronounced than the market change, she says, is how technology has changed the nature of transactions — thick files

in triplicate copies have been replaced by electronic paperwork, and email and texting have changed the way people communicate, even if they work in the same office.

“It’s important to ride the wave of technology but at the same time you have to nurture your personal relationships,” she says. “The relationship part hasn’t changed.”

And that may be one of the reasons why Wilson, who started in the industry in the ’90s, hires only about three of every 10 people he meets with. He says brokers need to be businesssavvy, since they own their own business, but that’s not enough to succeed, no matter the market.

“If we get brokers who

are well connected in the community and are ethically driven, there’s definitely room,”hesays.“(Thosewho fail) think it’s about houses but it’s not— it’s about generating leads, making contacts and building relationships in the community.”

Wilson thinks the market should be doing well for at least a couple more years, given the always-cyclical nature of real estate. And Smith — like many others — is excited for the year ahead.

“Over the next nine months, we’ll see a huge amount of transactions, listings and sales, and through November of next year,” she says. “It’s an exciting time in real estate, and I’m happy to have come back at such an exciting time.”

from 6

scrambling.”

Like other realty offices around Kitsap, Jacobson’s is growing and currently has 16 brokers. He says the last couple of years have been the best in his 18-year career, even though the market is still challenging.

“It’s not for the weak of heart,” he says. “I’ve done more creative deals in the past year than I’ve done in the last 18. You have to think outside the box instead of relying on MLS inventory, and be out there looking for properties aggressively and putting deals together before a home even goes on the market (officially).”

Buyers have to respond

Irish citizen on a criminal matter. Besides setting an incredibly bad precedent domestically and internationally, this along with concerns of unhindered U.S. government access had led to a crisis.

How bad is it … really?

law enforcement more effective and accountable.

What Next?

On May 19 at Western Washington University/ Olympic College Poulsbo Campus, our West Sound Technology Association (WSTA) will host a luncheon event on LEADS (Law Enforcement Access to Data Stored Abroad Act — an international framework), digital privacy and cybersecurity. Mike Hamilton of Critical Informatics will join Jonathan Friebert of Microsoft/Voices For Innovation (VFI) on a panel to discuss these issues and how they impact us. Brad Johnson from WWU will discuss their plans for the new cybersecurity program to address education and workforce needs in our evolvingsociety.Thosewho

wanttotourthecampuswill also be allowed to do so. As president of WSTA, I will moderate the discussion.

Details and registration for this free event can be found at www.westsoundtechnolog y.org / events/upcoming-events/ may-19-quarterly-briefing Registration is required, and a box lunch is optional.

• Charles Keating is president of Keating Consulting Service, Inc. (www.kcsco. com), an IT consulting firm serving global clients since 1983. He is also a partner in K2 Strategic Solutions (www.k2strategic.com) and Professional Options (www.professionaloptions. com), and current president and co-founding member of West Sound Technology Association (www.westsoundtechnology.org).

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Silverdale The Heartbeat of Kitsap Peninsula!

April 22 - Donâ&#x20AC;&#x2122;t Miss!

7:30 AM â&#x20AC;˘ APRIL 22 â&#x20AC;˘ HOPJACKS

Kitsap Business Forum â&#x20AC;˘Apr 12 â&#x20AC;&#x153;Go Green for Blackâ&#x20AC;?

Clearwater Casino Resort 7:30â&#x20AC;&#x201C;9 am Military Appreciation Day Apr 16 â&#x20AC;˘ Kistap County Fairgrounds Kitsap Sun Pavilion â&#x20AC;˘ 11am to 4 pm Good Morning Kitsap County Apr 19 â&#x20AC;˘ Hop Jacks â&#x20AC;˘ 7:30â&#x20AC;&#x201C;9am Open House â&#x20AC;&#x201C; Wildtree Apr 20 â&#x20AC;˘ Unique Local Bazaar Kitsap Mall â&#x20AC;˘ 5â&#x20AC;&#x201C;7 pm

Staying AďŹ&#x201A;oat With Pending New FLSA Rules on White Collar Worker Apr 22 â&#x20AC;˘ Hopjacks 7:30â&#x20AC;&#x201C;9am Business University â&#x20AC;˘ Apr 26 Hop Jacks â&#x20AC;˘ 7:30â&#x20AC;&#x201C;9am General Membership Luncheon Speaking on Business Leadership Issues- Charlie King â&#x20AC;˘ Apr 27 â&#x20AC;˘ Kitsap Golf & Country Club 11â&#x20AC;&#x201C;1 pm Silverdale Chamber Fun Night Apr 29 â&#x20AC;˘ Clover Leaf â&#x20AC;˘ 7â&#x20AC;&#x201C;9 pm Good Morning Kitsap County May 3 â&#x20AC;˘ Hop Jacks â&#x20AC;˘ 7:30am

April 16, 2016

11-4 â&#x20AC;˘ Kitsap County Fairgrounds

FREE & OPEN TO THE PUBLIC

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Currently GAC is collaborating with KC in creating a logo for â&#x20AC;&#x2DC;Old Townâ&#x20AC;&#x2122;, aesthetics for bike lanes, sidewalks, and planters along Silverdale Way and into â&#x20AC;&#x2DC;Old Town.â&#x20AC;&#x2122; Silverdale Chamber GAC cohosted with CK School District a KC/business owner meeting on March 15 updating us on the upcoming road improvements.

GACâ&#x20AC;&#x2DC;s mission is to keep businesses informed about changes happening in Silverdale that affect them, and be a voice for the business community to Kitsap County in working together to accommodate the growth that is happening with respect to business.

SILVERDALE WATER FRONT

June 18, 2016

ARE YOU A MEMBER YET? - JOIN THE SILVERDALE CHAMBER OF COMMERCE! 3100 NW Bucklin Hill Rd. Suite 100 â&#x20AC;˘ Silverdale, WA 98383 â&#x20AC;˘ 360.692.6800 â&#x20AC;˘ S I L V E R D A L E C H A M B E R . C O M

Booths & Sponsorships AVAILABLE NOW!

P A R T N E R

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C O M M E R C E

Military Appreciation Day

O F

Late last year the Department of Labor (DOL) published draft changes to existing standards for exempt employees â&#x20AC;&#x201C; commonly known as â&#x20AC;&#x153;white-collarâ&#x20AC;? workers. These changes to the Fair Labor Standards

mid-summer. James McCanna, J.D., of McCanna Law, PLLC will discuss the meaning of the changes and how they will likely impact all business sectors from Mom and Pop shops to big employers. James describes the changes as a sea change in how exempt workers are

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silverdalechamber.com/events

C H A M B E R

SEE WEBSITE EVENTS FOR MORE DETAILS

K P B J

UP COMING EVENTS

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

360-297-3813 / KingstonChamber.com

Central Avenue Salon Four talented and well-established stylists have joined forces to create Central Avenue Salon. Located at Cleo’s Landing. In downtown Kingston, Kimberly, Cindy, Sue and Emily are thrilled to welcome new & established their new home. The décor and view are awesome, as are the neighbors, Thistle Floral & Home, D’Vine Wines and Sweet Life Cakery.

Check out their Facebook page and stop by! 360-860-2320

O F C O M M E R C E

Upcoming Chamber Events Chamber After Hours

Thurs. April 7th at 11:45 am to 1pm Kingston Cove Yacht Club Featuring Mike Barnet & Pete Orbea Of the North Kitsap Tourism Coalition

April 14th at 5-7pm The Windermere Bldg.- Lindvog. Rd. Hosted by PAWS of Bainbridge & N. Kitsap Windermere Real Estate & Sweet Heat Yoga

Village Green Community Center

Chamber Business Lunch

Dedication Ceremony / Opening Day Date subject to change. Check Chamber website calendar. Tentatively scheduled Saturday, April 30th at 2pm.

Thurs. May 5th at 11:45 am to 1pm White Horse Golf Club Sponsored by The Kitsap Sun Featuring Port of Kingston Commission Mary McClure

Interested in Membership?

Call Executive Director, Colleen Carey at 360-297-3813 or 360-860-1861 Email: Director@KingstonChamber.com Or apply at our website: KingstonChamber.com / member services

P A R T N E R

Chamber Business Lunch

C H A M B E R

The Chamber plays a vital role in connecting its business community. It helps to provide people and organizations an opportunity to get to know each other through networking events, luncheons, seminars and social media groups. Through the formation of these relationships, we can support one another and advance shared interests. Taking initiative creates a proactive and positive environment. Stewardship plays a vital role in the quality of our personal lives as well as in the quality of our business dealings. Working together promotes a stronger voice with our elected officials and within the business community. We all look to improve the environment here in the Greater Kingston area. It’s time to create a stronger, more unified community and I look forward to leading our Chamber during this time. Connect with your peers today and become an active member of the Greater Kingston Chamber of Commerce. If you would like more information on becoming a volunteer or joining a committee or board, call or email.

Best Regards, Shelby Nelson The Point Casino, Sales & Events Manager

WELCOME NEW MEMBERS!

K P B J

A message from Chamber President, Shelby Nelson.

We’ve got some exciting “Grand Openings” and community events happening soon in Kingston.

Be sure to Like and Follow on Facebook: The Kingston Ale House , Village Green Community Center, Greater Kingston Chamber of Commerce, What’s Happening Kingston, Kingston’s Cove Summer Concerts

| April 2016 |

Business Briefs Gig Harbor gets state grant for LED street lights The City of Gig Harbor has received a grant from the state Transportation Improvement Board’s Relight Washington grant program, which is designed to lower street light costs by helping cities convert to more energy-efficient light-emitting diode (LED) streetlights.

The city has been approved to retrofit all of its 713 fixtures from high-pressure and metal halide type lights to high-efficiency

POULSBO FARMERS MARKET

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offer a wide array of products through the co-op including dairy, eggs, meat, seafood and processed items like jams, baked goods and soaps. Those extras help the co-op stay busy in the winter when most local produce is out of season.

Charter co-op member and self-described “foodie” Paul Taylor buys 2 gallons of raw milk through Kitsap Fresh each week, which he turns into cheese. He revels in the greens and credits Dungeness Seafood with selling him “some of the best king salmon I’ve ever had.”

“It really does make a difference when you get something fresh,” Taylor said.

The co-op’s ordering system insures produce reaches customers quickly. Pro-

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farmers, and they are joined by crafters and artists.

Last year, the Poulsbo Farmers Market made $469,000 in sales and had American more than 24,000 customLegion ers, according to Cleveland.

Park Shoppers might have to 1/8 mile walk a little farther. There won’t be any parking directly at the new site, except for a few handicap spots, Cleveland said. Parking will be available along Front Street, city parking lots and the upper parking lot of the Parks and Recreation building off First Avenue. There is a staircase between the lots.

Market organizers also are hoping for more foot traffic from downtown and the nearby housing developments, including Poulsbo Place, Cleveland said.

While the market organizers have been preparing for the new location, they

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and long-lasting LEDs. The total project conversion cost is estimated at $560,000, with funding coming from the grant of $508,000 and another $52,000 in energy rebates.

The city expects to realize a 60 percent monthly energy cost savings when the street light conversion is complete. Currently the city spends about $7,200 a month in street lighting costs.

City savings will equate to a yearly total of $52,000. A sustainable return on investment study conducted by TIB found that cost, energy and environmental benefits returned more than twice the installation expense over 15 years. The city expects conversion to be completed by this fall.

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are planning and fundraising for a permanent and potentially indoor location.

The Poulsbo Farmers Market has been discussing for years the idea of a place that would provide better coverage from rain and allow a year-round market.

Market organizers continue the search for a permanent home even though plans for a long-term place on port property fell through in 2011, followed by another location on Viking Way that did not work out recently. ducers post items they have available to the co-op’s website at the end of each week.

Customers have Sunday and Monday to place orders. Producers start filling tickets Tuesday and deliver their goods to Slippery Pig Brewery by Wednesday evening for customers to pick up.

Just about everything is picked to order, Ryser said, “Nothing is wasted, as a result.”

It’s a retail model Kitsap Fresh is eager to share with more of the county. Ryser said the cooperative plans to open a series of new pickup sites in the near future. Starting Wednesday, CJ’s Evergreen General Store on Bremerton’s Park Street will host a weekly pickup. Kitsap Fresh is shopping for a location on Bainbridge Island and would like to add sites in Central and South Kitsap.

“This is the first step in a multi-phased plan,” Ryser said.

Do you prepare more for family vacations than you do for college?

For a personalized college cost report, call or visit a financial advisor today.

Teresa Bryant

Denette Chu, AAMS

Schelley Dyess

Downtown Bremerton 360-373-1263

Port Orchard 360-876-4709

Port Orchard 360-876-3835

Debi Tanner

Todd Tidball

Glenn Anderson, AAMS

Kingston 360-297-8677

Poulsbo 360-778-6123

Poulsbo 360-779-7894

Jeff Thomsen, AAMS

David Hawley, AAMS

Jim Thatcher, AAMS

Bremerton 360-475-0683

Belfair 360-275-7177

Bremerton 360-373-6939

Edward A. Finholm

Patty Perez

Kingston 360-297-8664

Bainbridge Island 206-842-1255

Robert Morgan

Calvin Christensen

Jay Seaton, AAMS

Silverdale 360-698-6092

Port Orchard 360-876-7538

Mary Beslagic

Jessie Nino

Manchester 360-871-0998

Poulsbo 360-779-6450

Poulsbo 360-598-3750

Michael F. Allen, AAMS Silverdale 360-308-9514

Angela Sell, AAMS Silverdale 360-698-7408

www.edwardjones.com MEMBER SIPC

286 Fourth Street, Bremerton WA 98337 l 360.479.3579 l bremertonchamber.org

Haselwood Auto Group

April 11 & 25 - 11:00 AM Armed Forces Festival Committee Meeting Cloverleaf Sports Bar & Gril 1240 Hollis St, Bremerton

Gold Members Land Title of Kitsap County Puget Sound Naval Shipyard & Intermediate Maintenance Facility

Welcome New Members Fuji Buffett, Inc. 3585 Wheaton Way Bremerton (360) 627-9666

April 19 - 11:30 AM Membership Luncheon Sheri Nelson Government Affairs Director Association of Washington Business Kitsap Golf & Country Club 3558 NW Golf Club Hill Rd, Bremerton

Delphis Creative PMB 232,4810 Point Fosdick Dr. NW Gig Harbor (360) 689-4063 Kitsap Tennis & Athletic Center 1909 NE John Carlson Rd Bremerton (360) 692-8075 May 7th 10:00 a.m. - 2:00 p.m.

Culinary Arts Compe��on May 11th 7:00 - 9:00 p.m.

Bremerton Central Lions Charitable Founda�on Ambassador Scholarship Awards

May 13th 7:30 a.m. & 1:00 p.m. Shotgun starts Pepsi Armed Forces Golf Tournament May 21st 7:00 - 10:00 a.m.

Bremerton Lions Club Pancake Breakfast May 21st 7:30 a.m.

Contact the Bremerton Chamber of Commerce for more informa�on

May 21st 10:00 a.m. - 1:00 p.m.

68th Armed Forces Day Parade May 21st 11:00 a.m. - 1:00 p.m.

Heroes Barbecue May 21st 6:00 - 9:00 p.m.

Navy League Gala

5K Run 360.479.3579 or staff@bremertonchamber.org

P A R T N E R

April 28 - 5:30 p.m.

Chamber After-Hours Social Peninsula Paint Center 5373 Auto Center Way, Suite 103, Bremerton

C O M M E R C E

April 14 - 7:30 AM Your Business Academy Employment Law United Way Building Conference Room 647 Fourth Street, Bremerton

Tim Ryan Construction, Inc.

O F

April 12 - 7:30 - 9:00 AM Kitsap Business Forum Building a Personal Community: Identify and Deepen Your Relationships for Excellence Clearwater Casino Resortt 15347 Suquamish Way NE, Suquamish

Kitsap Sun

C H A M B E R

April 1 - 11:30 AM Membership and Marketing Committee Meeting Arena Sports Bar & Grille 4111 Wheaton Way, Bremerton

Harrison Medical Center

K P B J

April Chamber Events

Platinum Members

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CHAMBER

K I T S A P

NORTH MASON

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

MAKE A NOTE OF IT UPCOMING CHAMBER EVENTS

ENGAGE … ENERGIZE … EXCEL

TRAVELER DAYS, UNION

Business Breakfast Featuring Cecilie Burleson, Kitsap Sun 7:30 – 9:00 A.M. Union River Grille, Belfair

APRIL 11 – MAY 8 www.visitunion.com

TUESDAY, APRIL 12

TRAVELER 5K RUN/WALK

Professional Development Group 7:30 A.M. Reid Real Estate, Union Quarterly Union Luncheon Featuring Seahawks’ Stadium Announcer Randy Rowland 11:30 A.M. – 1:00 P.M. Alderbrook Resort & Spa, Union

Barbara Treick and Carol Ann Davis, CLTC, welcome guests at our fun St. Patrick’s Day After Hours hosted

by Peter J. Taafe, CRPC, CFP, owner of Vista Financial Solutions. The reception also served as a special welcoming party for Carol Ann Davis, CLTC, who recently joined the staff.

THURSDAY, APRIL 14

Patti Kleist, Executive Director of Faith in Action, was honored as our March Member of the Month. Patti has been working tirelessly for more than seven years on an exciting project for the North Mason community – the HUB Center for Seniors. On May 3, from 2 to 6:30, Patti and her team will celebrate the grand opening.

Everyone is invited. Congratulations!

WEDNESDAY, APRIL 27

MAY 7 THROUGH SEPTEMBER 9:00 A.M. – 2:00 P.M. HUB Center for Seniors, Belfair www.belfairfarmersmarket.com

Monthly Luncheon at Theler Featuring Washington State Representative Drew MacEwen, 11:30 A.M. – 1:00 P.M.

SATURDAY, APRIL 30

Ribbon Cutting & Welcoming Event HUB Center for Seniors, Belfair 111 NE Old Belfair Highway 2:00 – 6:30 P.M. Reception 5:00 P.M. – Ribbon Cutting

Everyone, including local celebrity goat Rudy Raywinkle, is heading to Union from April 11 to May 8 to celebrate Traveler Days. Local businesses offer special sales, events and more, as visitors come to see “The Traveler,” a rock formation on Mt. Washington, which is visible only for a few months every year and only from the Union view of the mountain.

MAY 7 Hama Hama Oyster Co. Lilliwaup 360-877-5811 www.hamahamaoysters.com

WE ELCOM M E NEW MEMBE ERS THE BUCK SHOP 360-552-2781

www.facebook.com/ TheBuckShop.Belfair

Bev Voss-Petredis, Owner 15781 NE North Shore Road Tahuya, WA 98588

360-275-9313

www.summertideresort.com

MAY 13-15 Shelton High School 360-426-1782 www.bluegrassfromtheforest.com

P A G E

Derek J. Morrison, Owner 23969 State Route 3, Suite G Belfair, WA 98528

BLUEGRASS FROM THE SUMMERTIDE RESORT AND MARINA FOREST

C O M M E R C E

TUESDAY, MAY 3

Chief Criminal Deputy Ryan Spurling mesmerized our January luncheon attendees with his compelling presentation, “Checking in on Crime,” focusing on what to do during an emergency – run, hide or fight.

HAMA HAMA OYSTER RAMA

O F

Spring Sale and Free Pancake Breakfast Pancakes grilled by Chamber Trustees 7:30 – 10:00 A.M. Scott McLendon’s Hardware, Belfair

BELFAIR SATURDAY MARKET

C H A M B E R

Business After Hours The Salmon Center • 5:00 -7:00 P.M.

APRIL 23; 10:00 A.M. The Point @ Alderbrook Golf & Yacht Club Union 360-898-1500 www.hoodcanalevents.com

J O U R N A L

WEDNESDAY, APRIL 13

B U S I N E S S

WEDNESDAY, APRIL 6

FESTIVALS & EVENTS

P E N I N S U L A

B ELFAIR L ICENSING | V ISITOR C ENTER

34

| April 2016 |

BUSINESS MENTORING | KEN SETHNEY

What’s the difference between marketing and sales?

I

t’s common to hear “marketing” and “sales” used interchangeably. In reality, they each have distinct characteristics. Small business owners need to know the difference, so they can approach each with purpose while understanding how they need to work together to achieve success.

Marketing. Sales. What’s the difference?

To put it simply, marketing encompasses everything you do to reach and engage prospects.

Marketing is typically a mediadriven function. It involves the use of print, online and wordof-mouth communications to drive brand, product and service

awareness.

Marketing-related activities may include: ■Conducting market research to determine needs within your target market; ■ Setting standard pricing for products and services; ■ Raising awareness of your company and its products and services within your target markets using various media and platforms; ■ Creating collateral and communications to support your salespeople in their efforts.

Sales encompasses everything you do to seal the deal with a prospective customer.

Sales is typically a people-driven function. It involves human-to-human connections to build and nurture relationships.

Sales-related activities may include: ■ One-to-one, face-to-face interaction with prospects and customers; ■ Careful evaluation of specific customers’ needs; ■ Solutions-selling to meet spe-

ENTREPRENEUR TRAINING | BILL HOKE

Lessons from a thousand small business start-ups

D

uring the past 10 years, I’ve been privileged to work with more than 1,000 business startups, in my professional practice, with Washington CASH and with the BE$T programs here in Kitsap. For me, this is true economicdevelopment. We eschew meetings and focus on making sales.

My name is Mary Smith and I want to start a coffee stand.” Or a consulting business, or a product for a street fair, or an Internet business.

One thousand dreams now out in the open and ready for development.

Here are some of the things I have taken from this wonderful experience of working with more than

1,000 start-ups.

Lesson one: It takes courage to stand up and say you intend to start your own business, and for me this is humbling work and you work in the trenches of the small business world.

Theory and assumption have no place here. Starting a small business gets everyone face-to-face with hard realities. Those most likely to succeed are full of curiosity and brimming over with can-do. You’ve got to learn to take a hard hit. They call it the shark tank for good reason.

Ready to start a new business? Someone needs to ask the hard, impolite questions. I have a list of 10 to test the entrepreneurial will. This is no place for weenies or wallflowers.

As a business development start-up specialist, I see my primary role as

teaching business owners to challenge every start-up assumption. There are no end to the hard questions.

I believe starting a new business is a four-step process: first, answer my tough 10 questions. Then it’s time to prepare enough of a feasibility study to determine if yours is a viable business idea. If this business looks promising, then it is time to write the formal business plan and no whining about how much research this requires. Finally, every business needs an operations/ sales plan.

I have heard every reason why entrepreneurs do not think they need a business plan and the marketplace is littered with failed businesses because they knew it all, were the exception.

See HOKE, 36

cific customers’ needs; ■ Proposing special pricing when situations require straying from standard pricing; ■ Asking for the sale and getting a contract signed; ■ Follow-up phone calls and email messages to keep the lines of communication open.

Blurred lines Realize that while marketing and sales have distinct characteristics, the lines between them have become blurred to a large degree with the advent of social media. In the past, sales professionals were primarily accountable for establishing and maintaining relationships with prospects and customers. But now, that responsibility also falls on the shoulders of marketers using channels such as Facebook, Twitter, Instagram, LinkedIn, Google Plus and others.

Whether you are personally responsible foryoursmall business’s marketing and sales, or if you have

employeesperformingthesefunctions,youneedastrategytoensure your efforts are aligned.

If you need guidance in how to make your marketing and sales activities complement each other so you can build and grow your company, contact SCORE — Mentors to America’s Small Business.

• SCORE is a nonprofit organization with more than 12,000 volunteers who provide free, confidential business mentoring and training workshops to small business owners. To contact Kitsap SCORE, email kitsap@scorevolunteer.org or visit kitsapscore.org.

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

www.KPBJ.com

1000 Full-Color Brochures $ 18995

Printed from your digital files. Includes printing and folding. Graphic services available.

Owner Brad Potter, printing superhero since 1981

Bainbridge Island Chamber of Commerce â&#x20AC;&#x153;Creating a Strong, Sustainable Local Economyâ&#x20AC;?

Check Out Our New Newsletter!

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Social Network Links: Facebook - Bainbridge Island Chamber of Commerce Twitter - @BainbridgeCofC LinkedIn - Bainbridge Chamber Pinterest - Bainbridge Island Chamber of Commerce

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Gold Avalara â&#x20AC;˘ Home Street Bank â&#x20AC;˘ Rotary Club of Bainbridge Sears & Associates â&#x20AC;˘ Town & Country Market

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hunting licenses expire April1, 2016.

P A R T N E R

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Get your new licenses

Silver Ace Hardware â&#x20AC;˘ Bainbridge Disposal â&#x20AC;˘ Liberty Bay Auto Center SpiderLily Web Design â&#x20AC;˘ Suquamish Clearwater Casino Resort The Point Casino/Noo-Kayet Development Corp.

Monday to Friday 9 AM-5 PM

Bronze AGS Stainless Inc. â&#x20AC;˘ Bainbridge Bakers â&#x20AC;˘ Bainbridge Lending Group, LLC Carney-Cargill, Inc. â&#x20AC;˘ Christmas in the Country â&#x20AC;˘ Columbia Bank The Doctors Clinic â&#x20AC;˘ Hill Worldwide Moving Services â&#x20AC;˘ Kitsap Physical Therapy Paper and Leaf â&#x20AC;˘ Sage/Far Bank â&#x20AC;˘ Umpqua Bank Walgreens â&#x20AC;˘ Wells Fargo Bank â&#x20AC;˘ Winderemere Real Estate

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Take a look and let us know what you thinkâ&#x20AC;&#x201C;and what else you might like to see.

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our 2015 Membership Awards, introduces the Chamberâ&#x20AC;&#x2122;s newest employee, and contains articles of interest to members and the community, including familiar features like new member welcomes and

Community Events

C H A M B E R

Our Chamber newsletter has a new look and a new nameâ&#x20AC;&#x201C;The Channelâ&#x20AC;&#x201C;and will be published quarterly, with free print copies and a free interactive online version.

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For Latest Info on

Visit us at 395 Winslow Way E (206) 842-3700 866-805-3700 Fax (206) 842-3713 info@bainbridgechamber.com

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K P B J

C H A M B E R

O F

C O M M E R C E

P A R T N E R

38

| April 2016 |

REGION’S ECONOMY | JOHN POWERS

Three decades of shaping our economic future

I

n June of 1983, community leaders from across Kitsap came together to form a public–private economic development partnership aimed at attracting more business investment, growing our primary jobs base, and building a stronger, more diverse economy throughout the county. Thirty-three years later it’s clear that this partnership, now known as the Kitsap Economic Development Alliance (KEDA), has indeed made a real difference in advancing economic opportunities throughout Kitsap for decades.

The past decade in particular has seen our public–private partnership roll up its sleeves and accelerate the pace at which our community tackles many significant challenges, turning them into opportunities for employers and employees alike. This commitment to create opportunity

was manifested in the 2020 Vision and Action Plan adopted by a broad base of community leaders in 2007.

For the past five years, it’s been my privilege to work with a solid base of community leadership committed to continuing the important work of KEDA to positively shape Kitsap’s economic future. Nowhere is this commitment more readily manifested than in the substantial growth of the financial investment in our economic development work made by our alliance’s public and private sector investor partners.

When I arrived at KEDA in the summer of 2011, the effects of the great recession still loomed around every corner of our community and budgets were stretched tight. Yet, it was in that uncertain time that community leaders responded to our board’s challenge and redoubled their commitment to invest in our community’s economic future. As a result, over the past five years private-sector annual investment

in KEDA has increased by 50 percent and overall revenues have grown from $375,000 to more than $600,000. This commitment empowered our alliance to deliver the following results over the past five years: • Assist 600-plus business clients with a combined employment base of 20,000 FTEs; • Contribute to clients’ success in securing over $300 million in new business; • Help attract in excess of $90 million in new private-sector investment in Kitsap County; • Receive recognition from the International Economic Development Council for KEDA’s innovative multi-media marketing campaign — Kitsap Connected, a powerful marketing strategy to tell and sell Kitsap’s story.

Our board continues to be comprised of senior business and community leaders from across Kitsap. This leadership cadre is our alliance’s No. 1 asset, and it is because of their dedication to our alliance, and commitment to

BUSINESS COMMENTARY | DON BRUNELL

For whom the roads toll

R

oad and bridge tolls keep many elected officials awake at night.

They often inflame voters because they are costs motorists see while driving; whereas, a gas tax is hidden in the price of a gallon of fuel. Too often people filling up their cars ignore the stickers on the pumps that break down the state and federal taxes they are paying.

In Washington, the combined gas tax is now 62.9 cents a gallon while signs are posted from Tacoma to Bremerton tell you crossing the Tacoma Narrows Bridge costs between $5 and $7 depending upon how you pay.

For years, tolls have been po-

litical hot buttons. Washington Gov. Albert Rosellini (D) used them to pay for the Hood Canal and Evergreen Point floating bridges completed in the early 1960s. However, tolling fatigue was a reason Rosellini lost his bid for a third term in 1964.

Historically, our state’s voters oppose permanent bridge tolls.

That opposition started in 1917 when the first bridge across the Columbia River connected Vancouver and Portland. The toll was a nickel and ended in 1929 when the bonds were retired.

Rosellini preferred permanent tolls but compromised and settled for the traditional system, which leaves no money for maintenance, expansion and eventual replacement. Voters don’t trust legislators who have a habit of robbing dedicated funds to balance the budget.

By contrast, in the San Francisco Bay Area all major bridges are tolled. They have been part of the Bay Area transportation system since the Golden Gate Bridge opened in 1937. Tolls helped pay for the Bay Bridge replacement in 1989 when a 6.9-magnitude earthquake sent an upper section crashing down on a lower one.

In Texas, public-private partnerships were formed to avoid ending tolls once construction costs were paid. The most notable project is a 41-mile tollway between Austin and San Antonio completed four years ago.

It is operated by SH 130 Concession Co. To get truckers to use it, the state initially rebated part of the $33.83 toll, but when state subsidy ended many truckers found other routes. Now the company hasfiledforChapter11bankruptcy

Kitsap’s economic future, that I’m confident KEDA will continue to positively shape our community’s future for decades to come.

I want to close by thanking all the members of our alliance for their support and engagement in our work. I also want to recognize the outstanding work of our team of economic development professionals: Kathy Cocus, business development director; Theresa Mangrum, director of communications and marketing; Mary Jo Juarez and Mona Carlson, government contracting counselors; and Susan Veach, accountant and small business financial advisor.

Finally, I want to thank our board of directors and members of our executive committee who contribute countless hours to our alliance and the clients we serve.

A special note of thanks to the past board chairs that I have had the privilege of serving with these past five years: Chris Rieland, Jim Carmichael, Elliot Gregg, Julie Tappero and Steve Politakis.

I look forward to serving our

alliance with our recently elected new board officers: board chair Ben Anderson, CEO of Art Anderson Associates; vice chair Monica Blackwood, principal at Rice Fergus Miller; treasurer Nathan Evans, CTO ATS, Inc.; and immediate past chair Steve Politakis, CEO of Kitsap Bank. I also want to acknowledge the great service of the public-sector members of our executive committee: Silvia Klatman, PAO at Naval Base Kitsap; Kitsap County Commissioner Charlotte Garrido; Bremerton Mayor Patty Lent; and Poulsbo City Council member Ed Stern.

From my perspective, our community’s next 30-year horizon looks bright; and, I’m excited about continuing to shape it and work together to make it even brighter.

On Kitsap!

protection; however, lawmakers are confident SH 130 Concessions will emerge successfully.

Texas lawmakers, like their counterparts in other states, wanted to cut down on congestion allowing people to shorten commute times and truckers to expedite shipments from farms and factories to markets They boosted the speed limit to 85 mph on the tollway. After all, time is money and costs matter to families and shippers.

By applying the San Francisco model, you pay regardless of which bridge you cross. In essence, drivers have no choice.

That has been a problem for Washington lawmakers. They have nixed the idea of tolling the I-90 and SR 520 bridges to pay for the replacement of the SR 520 connecting Seattle and Medina.

Correspondingly, tolling I-205 across the Columbia near the Portland International Airport to pay for the new I-5 bridge cutting through downtown Vancouver also is a tough sell.

While tolls are not a panacea, they are an important financing tool, especially today when gas tax revenues are inadequate to pay for maintaining our current highways and bridges.

Transportation leaders believe tolls are pertinent since the trend in paying for roads and bridges moves to user fees. You pay based on how much you drive regardless of whether your vehicle is propelled by electricity, gas or diesel.

The key is to think differently.

A good start would be to make tolls permanent and put the excess collections in a “locked box” that can only be used to repair, maintain, expand or replace the roads and bridges from which they are collected.

• John Powers is executive director of the Kitsap Economic Development Alliance.

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

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