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RETAIL IS ON THE RISE

HIDDEN FEES COSTing THOSE WITH 401(k)s, report says

Whatcom County’s first quarter sales show 8.9 percent spike from 2011 By Evan Marczynski evan@bbjtoday.com

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ith retail trends in 2010 pointing to an uncertain future, opening an apparel store in a small town was a gamble. Yet Barb Scoggins did so with Find Your Fashion, her clothing store located in the Ferndale Station retail center. As the shop reaches its two-year anniversary in August, Scoggins said small-town roots and a local customer base have been major factors in its success. “In this down economy and being in a smaller town, it’s hard to get momentum,” she said. “But I wanted my flagship store to be in Ferndale. I wanted to provide local jobs and convenience for our town.” To celebrate the two-year mark, Find Your Fashion hosts a series of events from Aug. 13-19, including visits from local apparel artists, sales and prize drawings. Alissa Taylor, a lead sales associate, said the store tries to compete with larger retailers in the region by emphasizing customer service– zeroing in on the adage of “quality over quantity.” “We just have a small-town feel,” Taylor said. “A lot of our regular customers, we know their names, we know their families.” Despite the positive response the store’s seen from its regulars, Taylor said she was still surprised by the amount of Ferndale residents she meets who have never heard of Find Your Fashion. That lack of hometown recognition has led to a push for more marketing and advertising. Scoggins also plans to open a second location in Bellingham by the end of the year.

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The Bellingham Business Journal

August 2012

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OH (WATER) TAXI! P.7

New disclosure rules inspire local financial planning firm to expand services By Evan Marczynski evan@bbjtoday.com

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Find Your Fashion’s lead sales associate Alissa Taylor, left, and owner Barb Scoggins in the front section of the retail store, located in Ferndale Station. EVAN MARCZYNSKI PHOTO/ (RIGHT) COURTESY OF FIND YOUR FASHION

POSITIVE SIGNS FOR LOCAL SHOPPING Whatcom County retailers showed sound sales numbers in the first quarter of 2012, according to figures released in July by the Washington State Department of Revenue. The county’s taxable retail sales increased 8.9 percent since the

same period last year, an increase higher than the statewide uptick of 4.7 percent. Though Bellingham, with a larger population base and greater number of retailers, accounted for nearly two-thirds of the county’s 2012 first quarter sales total of $716.1 million, the city’s growth rate lagged behind other Whatcom communities.

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Though Bellingham, with a larger population base and greater number of retailers, accounted for nearly two-thirds of the county’s 2012 first quarter sales total of $716.1 million, the city’s growth rate lagged behind other Whatcom communities.

aving for retirement is usually thought to be one of the smartest financial choices one can make. But a recent federal report found nearly half of the people participating in 401(k) retirement plans could be losing chunks of their nest eggs without noticing, due to little-known fees charged by financial firms that sell plans. To increase transparency in the retirement savings market, the U.S. Department of Labor began enforcing new rules in July that require 401(k) plan providers to issue regular reports to sponsors – typically employers offering 401(k) matches to employees – detailing fees charged for administrative services. Devin Wolf, wealth manager and a certified financial planner at Financial Plan Inc. in

Sales in the border city of Sumas, which recorded the highest increase, shot up more than 28

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IMPROVING YOUR CASH FLOW Adam Hill and Charles Marcks from VSH CPAs present an overview of cash-flow forecasting and management for businesses at The Unity AUG Group’s Monthly Brew series. The free seminar, hosted by The Unity Group from 8 a.m. to 9 a.m. on Tuesday, Aug. 14, will help attendees learn how cash flow management affects all aspects of business, including a company’s response to competitor activities, unforeseen emergencies and growth opportunities. To register for the event, visit the Eventbrite registration page at http://finperformance. eventbrite.com.

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FINDING IDEAL CUSTOMERS ONLINE The Building Industry Association of Washington, in coordination with Local Marketsense, a webinar AUG hosts from 1 p.m. to 1:45 p.m. on Thursday, Aug. 16, designed to help participants learn the best methods to target ideal clients online. The webinar will cover ways to identify potential clients online, find out what they are using the Internet to search for and target their interests to generate business. Registration is $5 for BIAW members and $10 for nonmembers. Find out more at pnw.cc/cB4XT.

continues to be one of Bellingham’s premier summer events,” said Rob Camandona, Downtown Bellingham Partnership’s executive director. “It’s wonderful to see the community come downtown to support the great food being created locally.” Admission is free, but food and beverage tickets will be sold at the entrance for $1 each. Tickets can then be exchanged for food or drinks.

FRUIT FESTIVAL WITH ‘ESPALIER’ The Western Washington Fruit Research Foundation presents the 4th annual Summer Festival AUG Fruit and Espalier Symposium from 8:30 a.m. to 4 p.m. on Saturday, Aug. 18. The festival is held at the WSU - Washington

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Research and Extension Center, 16650 State Route 536 in Mount Vernon. The event features classes and demonstrations on Espalier, the ancient horticultural technique of training fruit trees and grapes to grow flattened in two dimensions. Topics in classes and demonstrations include the uses of espalier fruit trees, fruit growing in small spaces, selection of appropriate varieties, how to train and care for trees, pruning for harvest quality and quantity and different forms and methods for training. Lunch will be available from Patty Pan Grill and will feature freshly prepared fare. Registration – free to WWFRF members, $15 for nonmember singles and $30 for nonmember families – can be done online at pnw.cc/cB7dN or at the event.

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The Downtown Bellingham Partnership hosts the 7th annual Bite of Bellingham from 12 p.m. to 4 p.m. on Saturday, Aug. 18, on the block of AUG 1300 Cornwall Ave. The event, presented by Portionables, features a selection of more than 20 Bellinghamarea restaurants, with cuisine ranging from Cajun and pub-fare to modern American and Chinese. “The Bite of Bellingham

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Who’s news in Bellingham & Whatcom business Deets, Stamps join Chmelik Sitkin & Davis law firm Katherine Deets and Matt Stamps are now principals in the Chmelik Sitkin & Davis P.S. law firm in Bellingham. Deets joined the firm in 2004 after graduating from the Seattle University School of Law. Katherine Deets Her practice focuses on business transactions, estate planning and probate. Deets is a member of the YWCA board of directors, and she is also on the Northwest Estate Planning Council. Stamps joined ChmeMatt Stamps lik Sitkin & Davis P.S. in 2006. He graduated from the University of Chicago Law School in 2004. His practice emphasizes commercial and construction litigation, as well as insurance coverage and insurance defense.

Wells Fargo names new regional business bank manager Holly Oakley has been promoted to business banking manager for Wells Fargo in northern Washington, according to Raymond Baer, the bank’s Washington business banking area manager.

Oakley will oversee operations at Wells Fargo business banking offices in Everett and Bellingham, directing about 11 team members. As a financial services veteran with 26 years of experience, Oakley previously worked as a learning and development consultant training Wells Fargo business bankers across the nation. She has also worked as a principle business banking relationship manager in Everett, along with stints as a credit analyst and customer service manager. Oakley has lived in Snohomish County for 25 years. She received a bachelor’s from Western Washington University.

Tepker hired as assistant VP at People’s Bank Kevin Tepker has joined Peoples Bank as assistant vice president and commercial loan officer at the Barkley Financial Center. Tepker has more than 12 years of commercial lending expertise. He holds a bachelor’s from Illinois College in Jackson, Ill., and has lived and worked in Whatcom County since 2002. Kevin Tepker In addition to working with great people, he said the thing he enjoys most about working with businesses is the opportunity to partner with decision-mak-

ers and help businesses reach goals. Outside of work, Tepker volunteers with Wade King Elementary, coaches youth soccer and is a court-appointed special advocate for children. “I’m pleased to announce that we have added Kevin Tepker to the Whatcom business banking group,” said Terry Daughters, the bank’s senior vice president/Whatcom business banking team leader. “Having a credit and business development background, Kevin will be a wonderful addition to our team. His strong banking and commercial lending experience is a great asset to our customers.”

WWU astronomer hypes Mars rover from mission control Brad Snowder, manager of the Western Washington University Planetarium, joined a NASA team of 25 social-networking mission specialists publicizing the Aug. 5 landing of the Mars Science Laboratory Curiosity Rover. Snowder will spend three days at the Jet Propulsion Laboratory in Pasadena, Calif. He will be in the lab’s mission control center during the entry, descent and landing of the rover. While there, he will create live mission status updates on social media sites and platforms. “I’m still in a little bit of shock,” said Snowder, after learning he would join the team. wThe Mars mission will study whether the Gale Crater area of the planet has ever supported habitable environments. It is part of a larger study of the Martian surface and atmosphere. Snowder, who refers to himself as a “space geek,” has managed the WWU Planetarium since 1995. He also teaches astronomy at WWU and at Whatcom

Community College in Bellingham.

Local attorney honored for rights advocacy Whatcom County homeless-rights advocate Page Chance has been given the Access to Justice Advocacy Award by the Washington State Bar Association. The bar’s Access to Justice Board recognized her “tireless efforts on behalf of lowincome and vulnerable people,” and her “inspirational and enduring commitment to equal justice for all.” Chance has worked since August 2007 as a homeless disability benefits advocate for LAW Advocates, an organization of Whatcom County attorneys who volunteer their time to give civil Page Chance legal aid to low-income residents. During her time with the organization, Chance has provided help, including information and referrals, to more than 100 people each year. Last year, she helped nearly 40 people complete disability benefits applications. Along with community partners, Chance also helped bring 15 people out of homelessness.

McAuley joins advisory on Puget Sound cleanup The Puget Sound Partnership has added Port of Bellingham Commissioner Michael McAuley as one of two new port representatives to its Ecosystem Coordination

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Board, an advisory body where citizens, governments, tribes, scientists and businesses come together to cleanup Puget Sound. Commissioner Bill Bryant of the Port of Seattle will serve as the primary representative to the board; McAuley will serve as the alternate. Together, they will represent Michael McAuley the state’s 75 port districts. McAuley said growing up while working on a farm in Lewis County instilled in him an appreciation for the natural environment. The Bellingham commissioner earned a bachelor’s degree in environmental studies from the Evergreen State College and a master’s in geology from Western Washington University.

Kinney recognized for real estate success Ben Kinney, a Bellingham agent, was recognized in two national real estate news companies for his success at the Keller Williams Western Realty Market Center. Kinney was listed as the leader of one of the top real estate brokerage teams in the county in 2011, based on closed transactions, by Real Trends, Inc., a real estate consulting and communications

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company and a leading source of industry news. Kinney’s team, Home4Investment, ranked 18th out of 250 teams nationwide. In addition, Inman News, another real estate industry news source, placed Kinney on its top 100 Most Influential Real Estate Leaders for 2011 in the media, social Ben Kinney media and marketing category. Inman News recognized Kinney for developing an online platform called the Internet Marketing Specialist Designation, which helps real estate agents pursue business leads through the Internet and social media.

Boys & Girls Clubs CEO is stepping down Lynn Templeton is stepping down as executive director and CEO of the Boys & Girls Clubs of Whatcom County after 12 years on the job that saw the number of children served by the nonprofit nearly double. Templeton is moving into a new position as chief professional officer at the Boys & Girls Clubs of St. Helena and Calistoga in Napa County, Calif. He spent the past four decades working with Boys & Girls Clubs in Washington state. The organization has begun a nationwide search for Templeton’s successor.

August 2012

401(K) | FROM 1 Bellingham, said the new rules are a “good starting point,” and should help empower workers who have placed their savings in 401(k) plans. “It’s going to give them a real avenue to create change within their plan,” Wolf said. “Knowledge is power – so once they actually know if they’re getting ripped off, they can try to elicit some kind of change.” Up until now, the fees have not been withheld – they’ve just been hard to find. Participants willing to sift through the fine print in their plan’s various filings and statements can usually figure out how much they’re charged and how their money is used. Yet analysts are finding many people are either unwilling to go through the trouble or unable to understand the information. Close to 50 percent of employers who offer 401(k) plans either did not know whether their employees were charged fees or falsely thought the fees had been waived, according to an April 2012 report from the U.S. Government Accountability Office. The oversights can prove costly. An average American household with two income earners can lose nearly $155,000 in 401(k) savings over the

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course of a lifetime due to retirement plan fees, according to a May 2012 study from the economic research firm Demos. High-income households – ones where both partners earn annual incomes higher than threefourths of Americans – can lose more than $277,000.

401(k)-sponsoring employer peace of mind. “The reason they’re hiring someone else is because they don’t think they’re qualified to do that in the first place,” Wolf said. “It’s the same reason I go to a doctor instead of performing heart surgery on myself.”

CHANGE ELICITS COMPANY EXPANSION

NEW DISCLOSURES START THIS FALL

Prompted by the new transparency rules, Financial Plan Inc. has expanded its 401(k) services, devoting a new company branch entirely to 401(k) management. Devin Wolf leads the new department. Wolf said his company has offered 401(k) management services for some time, but until now the service has been limited to the firm’s existing customer base. With the branch out, Financial Plan Inc. broadens its spectrum of potential 401(k) clients, he said. A major component of the new arm, Wolf said, is the fact that the company’s financial planners assume liability for their 401(k) management decisions, rather than letting liability fall to employers offering retirement savings to their employees. The offer strengthens Wolf ’s belief that financial advisers should stand behind the choices they make for their clients, he said. It also attempts to give a

The real test of the new disclosure rules will be this fall when 401(k) sponsors and participants begin getting the new statements from their plan providers, Wolf said. Financial Plan Inc. is trying to jump one step ahead. The company has unveiled an online “quick benchmarking tool” that allows prospective clients to input the total assets of their retirement plans along with the number of participants – then see how much they would likely pay in various administrative costs under Financial Plan’s retirement savings structure. Wolf said 401(k) sponsors’ next steps once they receive the disclosure statements will be to understand where their money is going and ensure the services they are receiving are appropriate for their companies and for the number of employees they have. “For the most part, people aren’t doing that.” Wolf said. “They need to figure out what process is reasonable for them.”

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RETAIL | FROM 1

percent since the first quarter of 2011 – and Sumas’ retail trade sales, which only count transactions made inside stores, rose nearly 40 percent. Ken Oplinger, president of the Bellingham Whatcom Chamber of Commerce and Industry, said he doesn’t see the strong local retail sales fizzling anytime soon. Growth in the sector can be largely attributed to the increase in Canadian consumer spending, he said. Cross-border traffic has been lucrative for American retailers. Adding to the boon, the

Canadian government recently quadrupled the dollar amount of duty-free purchases its citizens can bring back from the U.S. “All of the different economic indicators that generally drive Canadians south are all in our favor right now,” Oplinger said. But small retailers face challenges competing against larger chain stores, which are more likely to capture the increase in Canadian consumer spending, he said. Unfortunately for small shops, Canadians seem to favor major players – particularly the big-box stores in Bellingham such as Target, Wal-Mart and Costco. Yet Oplinger believes local stores still have qualities larger retailers can’t touch,

including unique characteristics and loyal, hometown customer bases.

DEFINING A LOCAL STORE Highlighting the singular elements of her business has proven to be one of Barb Scoggins’ challenges. Part of the problem, she said, is a misconception over what class of retail store Find Your Fashion falls into. Scoggins said a lot of people believe the store is either a consignment shop or a high-end boutique. But it’s neither. Much like retail chains found in major

shopping malls, Find Your Fashion sells men’s, women’s and children’s apparel at competitive market prices, including items from popular lines such as Quiksilver and Yummie Tummie, a women’s shapewear line created by Heather Thompson from the Bravo network’s reality TV show “The Real Housewives of New York.” “To this day, I have people who live and work in Ferndale, and they walk in and go, “Oh my gosh, this is not what I expected,”

RETAIL | Page 6

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Scoggins said. Finding quality workers is also difficult, employers say. Find Your Fashion has six employees working part-time with various hours and schedules. Scoggins starts new employees at minimum wage, but provides incentives for strong workers. She pays more experienced ones as much as $15 an hour. Scoggins said she knows there are good workers out there looking for jobs, but not everyone dropping off resumes is hireable. During one recent hiring round for a new sales associate, Scoggins said she had to go through a search process three times to find someone who fit the job. It’s disappointing, since one of her goals with Find Your Fashion is to help her community, she said. With a desire to stay close to home and foster cooperation among other local small-business owners, Scoggins said she started in Ferndale in part to be at the forefront of the city’s future business development. “I want to be part of the solution in Ferndale and not part of the problem,” she said. Expanding to Bellingham is part of that strategy. With a second store – whose location has not yet been determined – Scoggins said she want to “cross-pollinate,” and show Bellingham shoppers that there are strong local businesses in other parts of Whatcom County. Scoggins said if shoppers in the region begin seeing Ferndale as a retail destination, she doesn’t think they will leave disappointed. “Come support small local businesses in Ferndale,” Scoggins said. “Shop local and help support the small shops here.”

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PLASTIC BAG BAN INSPIRES DIY SPIRIT

August 2012

Fourth Corner Quilts offers workshops teaching locals to make reusable bags By Evan Marczynski evan@bbjtoday.com

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s retailers in Bellingham prepare for the Aug. 1 start of the city’s new ordinance banning single-use plastic bags in stores, Fourth Corner Quilts on State Street is already one step ahead. The quilting and sewing shop, owned by Julia Menkee, is hosting a series of workshops that give people a chance to create their own reusable tote bags. Attendees pay $5, which includes everything one would need to make a bag: materials, in-person instruction and the use of a sewing machine. Menkee said the bag ordinance has allowed Fourth Corner Quilts to try something different with its instructional workshops. “There’s always growing pains with

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Julia Menkee, right, owner of Fourth Corner Quilts in Bellingham, shows Vickie Van Dyken of Everson how to measure and cut fabric pieces to sew together two sides of her reusable tote bag. EVAN MARCZYNSKI PHOTO change,” Menkee said. “For us, it’s an opportunity to have a positive twist to it.” While spaces in the store’s August workshops are already full, Fourth Corner Quilts has a waiting list for future events planned in the fall. Once Bellingham’s bag-ban rule takes effect, shoppers will have to bring along reusable bags to stores or pay 5 cents to retailers to have items placed in paper bags instead. The Bellingham City Council approved the ban in July 2011, giving the city’s retailers one year to plan for the change. Officials also sent letters to local retailers to remind them of the new rule. Though carry-out bags at grocery stores and other retailers can no longer be used,

other plastic bags—including ones used for meats and produce in grocery stores and those used in restaurants for take-out orders—will still be allowed, according to the city of Bellingham’s website. The ordinance was driven in large part by the group Bag It Bellingham, led by local residents Brooks Anderson and Jill McIntyre Witt. A similar ban took effect last month in Seattle. Bans are also set to start in the Washington state cities of Bainbridge Island, Port Townsend, Issaquah and Mukilteo between now and March 2013. Fourth Corner Quilts is located at 1844 N. State St. in Bellingham. For more information, call 360-714-0070.

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OH (WATER) TAXI!

Bill McGown of Leap Frog Water Taxi next to his boat, “Andiamo,” at the Bellingham Cruise Terminal.

New outfit offers service to San Juans By Evan Marczynski evan@bbjtoday.com

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ith the San Juan Islands just beyond Bellingham Bay, Bill McGown believes Whatcom County residents who haven’t made a trip to see their island neighbors to the west are missing chances at both business and leisure. “I’m always surprised when I meet locals who have never been to the San Juan Islands,” said McGown, owner and operator of Leap Frog Water Taxi. “I’m just like, ‘Are you crazy?’” McGown, who lives in Bellingham but owns a cabin on Lopez Island, started the small ferry company in fall 2011 after realizing island residents wanted a direct route to Whatcom County that would let them bypass a ferry trip south to Anacortes. But as he’s tried to fill this practical need, he’s found a greater motivation: bridging a new connection between Whatcom and the San Juans. Leap Frog carries passengers to a variety of destinations in the islands, a number of which not accessible by other modes of transportation such as the Washington state ferry system. One-way fares for the water taxi, which is based out of the Bellingham Cruise Terminal, vary from $23 to $85 based on a trip’s length, according to the company’s website. McGown also offers a 10-ride punch card to frequent passengers that can save them 15 percent on fares.

TAKING THE LEAP On a rainy Friday morning at the floating dock outside the Bellingham terminal, McGown waits as his 32-foot aluminum boat named “Andiamo” – Italian for “let’s go” – idles in the water. As the four passengers on this morning’s run begin to arrive, McGown takes their bags and other gear, then sets off from the harbor. Stephen Koch from the San Francisco Bay area and Jenny Light from Redmond, Wash., are headed to a vacation cabin on Blakley, an island south of Orcas Island. Light said she had traveled on Leap Frop before and found McGown’s straight shot to the San Juans more convenient than other options. “It’s been great so far,” Light said. “[Leap Frog] works because it’s easier.” McGown said vacationers and adventurers make up a portion of his passenger base. But his main traffic has come from people living on the islands, as well as travelers making the final legs of their trips to the San Juans after arriving at the Bellingham International Airport or at the Amtrak and Greyhound stops in Fairhaven Station. In addition to Leap Frog, other companies, including Paraclete Charter Service of Anacortes and San Juan Islands Water Taxi of Friday Harbor, run similar ferry services—although McGown is the only operator currently based in Bellingham. Barbara Marrett, communications manager with the San Juan Islands Visitors Bureau, said water taxis are particularly useful to people traveling to the islands by plane or train.

“They just allow a kind of flexibility that you don’t have when you rely on the [state] ferry,” Marrett said. “It’s a way for them to get here without renting a car and taking the ferry – it’s very direct.” About half an hour into the Friday morning trip, McGown reaches over from behind the boat’s wheel and slides opens a side window, allowing a roaring breeze to come off the water and into the cabin. The interior of the Leap Frog craft has green booths and tables running along either side. It could comfortably seat about a halfdozen people or so, though the boat itself – with additional open-air seating in the rear – is licensed to carry up to 12 passengers. While McGown drives, he tracks weather changes on his iPhone, takes calls for future pick-ups, tweets and checks his email. As a one-man operation spending most days on the water, McGown has to play receptionist as much as pilot – essentially turning his boat into a floating command center. Along choppy water, Leap Frog approaches the morning’s first stop at Sinclair Island. McGown is dropping off two passengers: a man and a woman carrying suitcases, water and a Styrofoam cooler. On this side of Sinclair, a small island east of the San Juans, there’s no dock. Instead, McGown is dropping the pair inside a small boat tied to a buoy a few hundred feet offshore. From there, they will wait for a friend to row out and meet them. Leap Frog makes drop-offs in a variety of locations. The boat can run right up on a beach, McGown said, provided the shoreline is not too steep and no large rocks or other obstructions are in the area. This aspect has come in handy when McGown makes runs for kayak groups or custom trips for people hauling heavy cargo such as building or landscaping materials. After seeing his Sinclair passengers off, McGown carefully turns his boat around and heads toward Blakley Island. According to his instruments, the water underneath the vessel at the drop-off point was just five feet deep. “It verges on the sketchy side,” he said. “This is probably one of the funkier places to land.” The stop at Blakley is easier, with a small empty dock giving McGown plenty of space to pull in. The entire trip took a little over an hour.

TUNING THE LEAP FROG MODEL Leap Frog is designed to run year-round, but McGown said he plans take some time off in December and January. After his first full year, the water taxi’s business model will likely need some retooling, he said. Yet while McGown admits he’s been “barely” profitable so far with high overhead and maintenance costs—he spent more than $12,000 on fuel alone during the first seven months of 2012—he doesn’t plan major changes. “I think the way we came out of the starting blocks has worked well,” he said. “This is year one, and I knew I had to brace myself and prepare to spend this year working super hard and see how it washed out.”

EVAN MARCZYNSKI PHOTO/COVER PHOTO COURTESY OF LEAP FROG WATER TAXI

With the total ridership he has available, McGown is optimistic his company can grow, particularly since island residents

have embraced him and lent support. “Having customers with that attitude – that’s value right there,” he said.

“Washington’s schools can’t solve our education problems on their own.

AWB has promoted public-private partnerships to provide science, technology, engineering, and math education that will fuel Washington’s economy into the next century.

It’s working.”

Phillip C. Ohl, President Vista Engineering Technologies, Tri-Cities

Our State’s Business Climate is Tough. But you can do something about it. Developing a skilled workforce is essential to rebuilding our state’s economy. All across Washington state, employers and business owners are finding new ways to connect with K-12 and higher education to ensure students are prepared to meet the demands of today’s changing workplace. Any hope of a sustained recovery rests with private sector job growth — a critical piece to solving our state’s significant, recurring budget woes. Lawmakers must take particular care not to jeopardize a restart of our economy by piling additional tax and regulatory costs on employers. Policymakers should instead be considering incentives that will help retain and recruit employers and jobs. That’s why AWB is encouraging greater support for private employers, workforce training and job creation across the state. We can’t control the ups and downs of our economy. But we can promote a more business-friendly climate in Washington state.

To help ensure your voice is heard in Olympia, visit www.AWB.org and click on “We Mean Business.”

#wemeanbusiness

PO Box 658, Olympia, WA 98507-0658

800.521.9325

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8

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‘NORTHWEST FRESH’ Popular Bellingham-based Haggen Food undertakes a major rebranding effort

By Evan Marczynski evan@bbjtoday.com

R

ick Haggen has spent nearly 40 years turning his parents’ small chain of neighborhood markets into one of the largest independent grocers in the Pacific Northwest. Yet decades after taking over the family business with his late brother, Don, the grocery chain owner is not finished helping the company make its mark in the supermarket world. “You don’t want to just say, ‘Well, we’re done,’” Haggen said. “You always want to improve.” That improvement now involves a major rebranding effort for Bellingham-based Haggen Inc., which owns 13 Haggen Food & Pharmacy stores and 15 TOP Food & Drug stores in Washington and Oregon. The facelift will place all TOP stores under the Haggen banner within the next few years. It will also introduce a new store theme – “Northwest Fresh” – which company executives said will emphasize products with more natural, locally produced ingredients. C.J. Gabriel Jr., Haggen’s president and

CEO, said the remake will let the company move forward under just one brand name instead of two, which has been his major goal since taking the top spot at Haggen in 2011 – shortly after The Comvest Group, a Florida-based investment firm, bought a majority share in the grocery chain. ”It’s always difficult for any retailer to have to manage two brands, but especially for a small one,” Gabriel said. After a test run last November at a former TOP store in Bellevue, the Meridian Street Haggen store in Bellingham was selected as one of the first locations to get the new treatment. Gabriel said the Meridian store was chosen in part to reflect the company’s appreciation for its hometown roots. In addition, he noted, the outdated store that was originally built in 1957 before being renovated and dedicated in 1979 “needed some love and care.”

TRADITIONAL GROCERS GO ORGANIC While profits for U.S. grocers dropped each year from 2007-2011, supermarkets

August 2012

Garden manager Renee Rimer waters plants outside the entrance of the Meridian Street Haggen store in Bellingham. EVAN MARCZYNSKI PHOTO

are still part of a multi-billion dollar indusAfter Don and Rick Haggen took over try. In 2011, American supermarket sales the company and developed the TOP totaled more than $580 billion, according Foods store brand, the grocery chain introto the Food Marketing Institute. duced the region’s first 24-hour store, and As a private company, Haggen does not in the 1980s, an Everett location became disclose financial information. Multiple the first supermarket in the nation to open media and industry reports, however, show an in-store Starbucks coffee shop. the chain’s annual revenue tops at least Another in-store Starbucks opened $500 million. shortly thereafter – in the Meridian Street With its move to more natural products, store in Bellingham. including organic and gluten-free goods, NEW BRAND, NEW FOCUS Haggen is following a national trend in which larger, more traditional grocers are The Meridian store’s makeover is still overtaking speunderway. New cialty food stores signage has gone in organic food up in the aisles, sales. new products Supermarket have been placed chains and club on shelves and or warehouse new wall decor food retailers showing green made 54 percent and yellow rollof U.S. organic ing farm hills sales in 2010, borders the according to the store’s walls. Organic Trade Peter Olsen, Association. Haggen’s direcGabriel said tor of marketing, Washington said there’s still shoppers’ tenmore aisle markdencies toward ers and tags to natural products be hung around has surprised the store, but the him. As an food main pieces of and beverage the rebrand are veteran – previin place. ously a senior Many of the executive with store’s departindustry giants ments remain in such as Albtheir same locaertsons and tions, including Rick Haggen, right, checks in with the Meridian PepsiCo Inc. the deli and the Street store’s produce manager Jim Johnson outside – Gabriel said meat departthe store’s entrance. The Meridian Haggen is one of he’s never seen a ment, as well as regional organic the first stores with the new theme. the pharmacy. EVAN MARCZYNSKI PHOTOS food ethic like Gabriel said the one Washthe chain will ington consumers share. emphasize its in-store pharmacy services “Yes it’s a national trend,” he said,” but I over the next few years. would say Washington leads that trend.” “The pharmacy customers inside a grocery chain are typically some of your most A HISTORY OF BEING FIRST loyal customers,” Gabriel said. It’s a different world from the time Ben Haggen is also making investments in its and Dorothy Haggen, along with Dorothy supply management system. The company Haggen’s brother Doug Clark, invested recently announced it was teaming up with $1,100 in a small Bellingham grocery store Utah-based Park City Group to develop in 1933 amid the Great Depression. The technology in Haggen stores allowing mantrio started out by emphasizing high-quali- agers to better track sales and inventory to ty products and customer service. improve its product selection. As the company grew, it began to set As the rebrand moves along, Olsen said itself apart by being among the first groeach makeover project would be unique. cery stores to offer a variety of amenities After the test run in Bellevue, the comconsidered common today. pany’s marketing team has learned the Haggen was the first store in the Northimportance of catering the changes to each west to offer a self-service meat departstore’s customer base, he said. ment. It also was the first to open an in“Every store, every community is a bit store bakery. different,” Olsen said.


August 2012

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August 2012

PORT OF BELLINGHAM August 2012

PORT NEWS Boaters Add Jobs to Whatcom County Sponsored content provided by Port of Bellingham

D

uring the summer, it is hard to forget that Bellingham is a maritime community. Bellingham Bay is dotted with boats big and small. As a waterfront community, we are known for our re cre at iona l boating fleet as well as our commercial fishing fleet. The Port of Bellingham op erates f u l l - s e r v ice marinas in Bellingham and Blaine, serving over 2,000 vessels. And that doesn’t count the thousands of boaters who make use of our community boat launches to get their boats onto the bay. When you look outside and see beautiful sailboats cutting across the water or watch a large powerboat heading into the harbor, you might not think about the positive economic impact from those vessels. But it would be a mistake to overlook this important and growing part of our economy. Most vessels in our harbors are owned by our friends and neighbors in Whatcom County. And their boats are what help local boatyards, shipyards, chandleries and boating service providers provide jobs in our community. Based on economic impact studies done in 2008, researchers found that the owner of an average powerboat on a trailer spends $2,000 a year on boating expenses. Powerboats

moored in a marina spend about $5,000 per year and sailboats in a marina spend about $4,800 a year. Commercial fishing vessels spend substantially more. It was estimated that the Port‘s marinas generated 133 direct jobs for people working in marine trades and services. This spending also was credited with an additional 131 induced j o b s i n Whatcom County. Marine trades and marine supply businesses spent over $12 million locally in 2008. Boating helps p ay for lo cal government services too with the Port’s marinas generating

$2 million in state and local taxes. A recent statewide boating study found that boating generates $3.9 billion a year in economic activity for Washington State, employing 28,000 people. And in Whatcom County our economy also gets a boost from visiting boaters. Studies have found the averagev is it i ng b o ate r spends $220 per trip in the communities they visit. So next time you look out on the bay, it is good to remember -Boating means Business.

Contact: Port Administrative Offices 360-676-2500 info@portofbellingham.com www.portofbellingham.com 1801 Roeder Ave. Bellingham, WA 98225 Hours: Monday - Friday 8:00 am - 5:00 pm Board of Commissioners Scott Walker, District One Michael McAuley, District Two Jim Jorgensen, District Three Meetings: 3 p.m. on the 1st and 3rd Tuesdays of the month. Agendas are on the Port website. The Port operates: Bellingham International Airport Bellingham Cruise Terminal Squalicum Harbor Blaine Harbor Fairhaven Marine Industrial Park Bellwether on the Bay Shipping Terminal Airport Industrial Park Sumas Industrial Park

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BBJBUZZ

Top news items from BBJToday.com Bellingham citywide plastic bag ban takes effect

Woods Coffee plans shop in former Lychee Buffet building

he expects a high volume of traffic at the new spot—located just off of Interstate 5 next to the GuestHouse Inn and across the street from the Lakeway Fred Meyer. The company said it plans to hire a number of new employees for the location prior to opening. “Given the traffic patterns in the area, this could be one of the busiest coffee sites in Whatcom County,” Herman said. “After all, in many ways, this is the entrance to the city center, and we’re excited to be a part of that.” The new shop will be in the eastern portion of the building. The other 2,200 square feet of the building will be available for a second tenant. The company said it is in talks with several potential tenants to move in, but did not give details. Woods Coffee has also started construction on another new location at the site of the new 16-screen movie theater in Bellingham’s Barkley Village. The company expects that shop to be complete by November.

The Woods Coffee chain will open its 13th Whatcom County location on Lakeway Drive in Bellingham, in the building formerly home to the Lychee Buffet. After substantial renovation, including construction of a drive-through window on the building’s eastern side, the new location should open in October. The Lynden-based coffee chain was founded by the Herman family in 2002. The building on Lakeway Drive has been vacant since the Lychee Buffet closed last year. In the past, the location has also served as a Pizza Hut. Prior to that, it was originally home to Sambo’s restaurant. Woods Coffee owner Wes Herman said

A team sponsored by Klicks Running and Walking of Bellingham finished with the best overall time during the Ragnar Relay Northwest Passage race, which was held from July 20-21. The team finished the relay, which started in Blaine and finished on Whidbey Island, in 19 hours, 51 minutes and 51 seconds. “Ragnar Relay is just a great event,” said Jim Clevenger, Klicks’ owner, who sponsored the team. “Our team was just a bunch of guys who happened to be very quick.”

A citywide ordinance banning single-use plastic bags at retail stores in Bellingham took effect Aug. 1. Shoppers will now have to bring along reusable bags to stores or pay 5 cents to retailers to have items placed in paper bags instead. The Bellingham City Council approved the ban in July 2011, giving the city’s retailers one year to plan for the change. The new ordinance was driven in large part by the group Bag It Bellingham, led by local residents Brooks Anderson and Jill McIntyre Witt. A similar ban took effect last month in Seattle. Bans are also set to start in the Washington state cities of Bainbridge Island, Port Townsend, Issaquah and Mukilteo between now and March 2013.

The Klicks team was led by Mark Kerr, a local high school teacher and running coach. The Ragnar Relay Series is an overnight,

nonstop running relay race held in various locations across the country. The Northwest Passage race was 190 miles long.

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BUZZ | FROM 11

WWU industrial design students win scholarships for furniture

Western Washington University won $6,000 in scholarship money for their furniture designs during the annual Mount Baker Products Furniture Design Competition. The competition’s objective was to

618746

Six industrial design students from

BBJToday.com

August 2012

design a piece of furniture for either the Make.Shift art space or the Spark Museum of Electrical Invention, both located in downtown Bellingham. For their Make.Shift designs: Travis Malloy of Vancouver won first place and a $1,500 scholarship for “Shelving Bench,” a bench that shelves flat art work underneath its seat; Jonathan Mayfield of Santa Cruz, Calif., won second place and a $1,000 scholarship for “The Roadie,” a fold-out amplifier stand with a cable storage drawer; and Scott Broberg of Wenatchee won third place and a $500 scholarship for “Shift,” a shelving system. For their Spark museum designs, and for the same prize amounts as the Make.Shift winners: Aiden Borer of Lake Stevens won first place for “Stack,” a reading bench with an incorporated book display; Matthew Lider of Bellevue was second for the “Arc Step Stool,” a three-legged stool designed to allow children to better view the Spark museum’s collections; and Kathleen Mahon of San Antonio, Texas, won third place for “Incite,” a children’s book shelf and display.

Ferndale’s IMCO gets green-building rating IMCO General Construction announced its office building and headquarters in Ferndale has been given LEED certification by the U.S. Green Building Council. The LEED system—LEED stands for Leadership in Energy and Environmental Design—rates and certifies building projects that incorporate sustainable construction and development practices. The IMCO building, which was completed in the summer 2010, was designed and built by Axiom Design Build of Seattle. While Axiom has completed hundreds of “green” building projects in the Pacific Northwest, the facility in Ferndale is its first LEED-certified project. “The urgency of USGBC’s mission has challenged the industry to move faster and reach further than ever before, and this team serves as a prime example with just how much we can accomplish,” said Rick Fedrizzi, president and CEO of the U.S Green Building Council. The building includes heating and ventilation systems that optimize energy efficiency and air quality, a 16,000-gallon underground rain cistern used to capture rainwater for irrigation, and a lighting design that emphasizes natural light and outdoor views. IMCO—founded in 1978 by Frank and Patti Imhof— is a leading Whatcom County construction firm. The company was recently placed on the Puget Sound Business Journal‘s list of 100 largest private firms in Washington state. IMCO ranked 88th with more than $76 million in revenue in 2011, according to the list.

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Ready, Set, SWIPE!

LETTER TO THE EDITOR

Support for Sanders, Grant in judge races Voters! Remember—we elect judges on the primary ballot. You have a choice of candidates with two different philosophies: those who adhere to the tenets of social justice, or those who align themselves with the principles of individual liberties and property rights, as the Constitution implies. Remember—the United States of America is the only country in the world that bases its being on the sovereignty of the individual with inalienable rights as a gift from our creator. Why do you think the law of the land is based on the Ten Commandments? My vote will be for Richard Sanders for Supreme Court, and Dave Grant for Superior Court.

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13

CHUCK & DEE Q&A | ROBINSON

The longtime owners of Village Books in Fairhaven reflect on change and challenge as independent book sellers By Evan Marczynski evan@bbjtoday.com

“C

huck and Dee are doing what they want.”

This matter-of-fact headline introduced a profile of Chuck and Dee Robinson, owners of Village Books in Fairhaven, on the front page of the Bellingham Business Journal’s first edition in November 1992. According to the Robinsons, who opened the bookstore more than three decades ago, the rubric still rings true today. Independent retailers in the book industry face stiff competition. The early-90s sprout of “big-box” stores and the birth of the cyber marketplace drove some independents to close and others to radically alter their business models. Yet despite the challenges, Chuck and Dee Robinson said their mission has never changed: don’t just sell books, create a local cynosure – a space for people to meet, browse shelves and debate merits of the latest best seller. BBJ: In 1992, what did you think was going to be your biggest challenge over the next two decades? CHUCK: We were just beginning to see the roll-out of the national chains’ big-box format, so Barnes & Noble was around at that time. It was also the year I became president of the American Booksellers Association. I remember the biggest challenge that booksellers thought they would face at that point was national chains going into communities where there were already established stores. That really was at the forefront of everybody’s minds, and I think for a couple of years that did turn out to be the biggest challenge. The unanticipated one that hit us later on – probably in 1994—was online sellers, of course very specifically Amazon. com. In ’92, the Internet was pretty much unknown. It continues to be a major challenge, not the only challenge we’re facing, but certainly a major challenge at this point in our existence. Actually in truth, we sold books online before Amazon did—but somehow I didn’t become a billionaire. Dee: Our response to the big-box stores – what they called the “superstores”—was growing the physical size of our bookstore, which turned out in retrospect to probably not have been such a good idea. In response to the big box stores it was, but they turned out to not have the effect on our business that we had thought. I think the Internet and the online book sales have been more of an issue. Nobody imagined what the Internet was going to be like back then.

Chuck: The thing about the Internet that we hadn’t anticipated, which all kinds of retailers are facing at this point, is what’s called the “showrooming effect.” Thirtyseven percent of all books that are being bought online, whether it’s a print book or an e-book, have been seen first in physical Chuck and Dee Robinson on the second floor of Village Books in Fairhaven. The owners locations. opened the popular independent bookstore in 1980. EVAN MARCZYNSKI PHOTO BBJ: So someone comes to the store, sees a book and then goes home and orders it online? help us create community. that e-books would be some part of the Dee: They don’t even need to go home. BBJ: What do you think an independent business, but not a big part of it. Then I remember one of the consultants said, “In Chuck: Yeah, they can order it on their “brick and mortar” bookstore will look terms of full disclosure, we should also cellphone. So, that’s a challenge that obvilike 20 years from now? tell you that we’re the people who told the ously in ’92 we never would have guessed. I Dee: It will probably be smaller than phone companies that cellphones weren’t mean think about what a cellphone looked [Village Books today]. Obviously, in 1992 going anywhere.” So, I guess they doubled like in 1992 – it was essentially a brick. So there was no way we could foresee the down and predicted right the second time. that’s a quite a change. technological changes that would happen I do think with e-books there will be BBJ: After hitting some financing snags in our business. I can’t imagine now, even some balance struck out there, and I think while developing Village Books’ current in 10 years, what the technology is going one of the things that shows that’s true is location in Fairhaven, you chose to give to be. the fact that the most avid e-book readup ownership of the building in 2004 in Chuck: It’s hard to imagine 10 weeks ers today are also some of the most active order build residential units above the from now. print book buyers. store, which was your longtime dream. Dee: It changes so fast. I still think they Dee: Right – those are the people who Are you still happy with will be a gathering point use e-readers while traveling, but when that compromise? for like-minded people. they’re home want a physical book. We’re “I like the The author visits will still actually seeing a little bit of backlash from Dee: I don’t think we community center be an important part, unhappy e-reader users who are going back regret the decision we made. and it might not even be concept, that to print because they don’t like the reading We ended up with what physical visits – already experience on e-readers. So who knows we wanted. Ever since the whole idea of a there are a lot of authors how much of that will occur in the future? bookstore started we wanted third place that doing Skype presentaChuck: With any trend, there’s a certain to live above the store, and tions to stores and to that’s not home amount that’s false and there’s a certain it took us a long time to book groups. But I think amount that’s a real trend. I certainly think get to that point. But we’re and not work. [A that the gathering of that there’s a trend to e-books—I wouldn’t very happy with that. It just local bookstore people together to talk doubt that for a minute. The e-book sales makes our lives so much about books and to talk is] a semi-public are going to continue to grow. easier. Compromise is a about ideas is still someBut I do think Dee’s right. There’s a daily part of running a busispace where thing that will happen in long history of people who bought some ness, I think. people meet and bookstores. machine but don’t use it anymore. I mean, Chuck: One of the Chuck: I like the exchange ideas I bet there are a thousand camcorders in things that we discovered community center conBellingham that haven’t taken a video in as we were going through and see each cept – that whole idea years. making that decision, which other.” of a third place that’s Of course this is as big of a challenge I think pertains to a lot of Chuck Robinson not home and not work. now for publishers as it is for retailers. If decisions in business or in It’s a semi-public space you’re preparing to print the new John people’s lives, is we were where people meet and Grisham novel, how many do you print if a focusing on a strategy of “I still think they exchange ideas and see certain percentage of them are going to be owning the building. At will be a gathering each other. sold as e-books? some point we said: Let’s However, what porinstead look at what we want point for likeBBJ: What would you tell an entrepretion of the publications the outcome to be. neur today who is in the same spot you minded people. ” will be e-books and what What we decided was were when you first started? will still be print I think Dee Robinson important to us was the is still a very open quesDee: If you love something, are passiondesign of the building, contion. We’re very, very ate about it and you’ve done some market trolling our costs and havearly in the e-book game, even though the research – I would say go for it. If you’re ing a place to live, which was the personal notion of them has been around for well not passionate about it, then find somepart. We focused on the outcome and said, over 20 years. When I was involved in a thing else. “Is there another strategy that could get forum with CEOs of the major publishing Chuck: I think it goes back to that us there?” I think that’s a key thing that a companies—this was probably 1995 – they earlier point of focusing on what the real lot of people lose track of, not just in busiwere already talking about e-books. outcome is. I don’t think very many people ness but in life—getting so locked into Dee: At that point they determined it become successful or remain successful by what their strategies and their tactics are was not going to be a major part of their focusing on money. The focus has to be on that they forget about what the outcome is business. the bigger purpose of what you‘re doing they’re trying to achieve. Chuck: Yeah, it wasn’t going to be a big and why you’re doing it. That ties back to The focus of our business, our mission, deal. It’s interesting because consultants passion. I think you increase your chances has always been community. If we thought from McKinsey & Company, one of the of success by looking at where you want our mission was to sell books exclusively, biggest management consultant firms in to go, even before you start thinking about we would’ve lost track of things a long, the world, were there with us in that room. what you want the legacy of your business long time ago. Selling books, while that is At the end of presentation they concluded to be. incredibly important to us, is a strategy to


14

BBJDATA

Information in the public record

BBJToday.com Sky’s the Limit Landscaping, Thomas J. Conner, 2810 Superior St., Bellingham, WA 98226. Carter’s, Carter’s Retail Inc., 3930 Meridian St. #100, Bellingham, WA 98226.

BUSINESS LICENSES

BUILDING PERMITS

Bellingham Finders Keepers, Spoulding & Scholtz, 1840 James St., Bellingham, WA. A+ Heating & Air, Perry A. Arnold, 6267 Mount Baker Highway, Deming, WA 98244. Pacific NW Motorcycles, Donolson Corp., 4781 Meridian St., Bellingham, WA 98226. Colockum Craftworks, Jeffrey W. Brummel, 3515 Azalea Place, Bellingham, WA 98225. Lotus Cleaning Services-Jennifer M. Watson, 2496 Yew Street Road, Bellingham, WA 98229. Benjamin Greene Film Productions, Benjamin Greene Film Productions, 2001 Lindsay Ave., Bellingham, WA 98225. Consortia, Derek J. Jordan, 2131 Superior St., Bellingham, WA 98229. ADT, ADT LLC, 11824 N. Creek Parkway N #105, Bothell, WA 98011. Simply Spirit, Simply Spirit Inc., 1304 Meador Ave. #B11, Bellingham, WA 98229. Rugby Architectural Building Products, Rugby LP LLC, 8825 S. 184th St., Kent, WA 98031. Westcoast Contracting, Westcoast Contracting Inc., 219 SW 41st St., Renton, WA 98057. Five Star Mechanical, Ware Enterprises Inc., 109 Washington Blvd. #B, Algona, WA 98001. Home Safety Research, Home Safety Research Inc., 1241 E. Main St., Auburn, WA 98002. Baker Construction & Development, Baker Construction & Development, 2711 E. Sprague Ave., Spokane, WA 99202. Pacific Medical Inc., 790 Kentucky St., Bellingham, WA 98225. Bonner Electrical Contracting, Bonner Electrical Contracting, 1562 Bradshaw Road, Mount Vernon, WA 98273. Mason Electrical, Mason R Berg, 1611 Gala Court, Bellingham, WA 98226. Blurry Fingers Music, Jeffrey T. Billingsley, 708 40th St., Bellingham, WA 98229. SKB Events, SKB Solutions LLC, 314 W. Holly St. #204, Bellingham, WA 98225. Mel Chandler MD, Mel E. Chandler, 609 N. Shore Drive #A, Bellingham, WA 98226. Commercial Interiors, Commercial Interiors Inc., 9840 Willows Road NE #110, Redmond, WA 98052. Lakeway Enterprises, Lakeway Enterprises Inc., 1022 Lakeway Drive, Bellingham, WA 98229. The Floor Store, Nelda A. McAlpine, 2316 E. Bakerview Road, Bellingham, WA 98226. Nail Image & Waxing, Truc T. Dinh, 1303 Railroad Ave., Bellingham, WA 98225. Chic Nails, Chic Nails LLC, 316 W. Champion St., Bellingham, WA 98225. Alexander McBean MD, Alexander D. McBean, 1750 Academy Road, Bellingham, WA 98226. Integrity Cleaning, Natalya A. Belous, 2288 Thornton St., Ferndale, WA 98248. Cathleen Tupper LMP, Cathleen E. Tupper, 1209 11th St. #2, Bellingham, WA 98225. 2nd Wind Productions, Stephan Michael Horwitz, 1100 21st St., Bellingham, WA 98225. Heather Erb Attorney at Law, Heather Erb PLLC, 554 Midwood Court, Bellingham, WA 98229. Foley Family Dental, Laura Howrey DDS PLLC, 610 Dupont St. #129, Bellingham, WA 98225. Response Home Lending, Response Home Lending LLC, 2930 Newmarket St. #111, Bellingham, WA 98226. D D Nails & Skin Care, Truong Viet Tran, 1125 E. Sunset Drive #100, Bellingham, WA 98226. Silver Creek Trading Company, Silver Creek Trading Company LLC, 1200 Dupont St. #2-I, Bellingham, WA 98225. Law Office of David A. Henken, Law Office of David A. Henken, 1229 Cornwall Ave. #307B, Bellingham, WA 98225. Bellagio Cleaning Services, Bellagio Cleaning Services Inc., 4145 Meridian St. #103, Bellingham, WA 98226. Rainbow WA, Rainbow WA Inc., 408 Westerly Road #304, Bellingham, WA 98226. North Cascade Building Materials, North Cascade Building Materials, 3001 Smith Ave., Everett, WA 98201. Northwest Popsicle Company, Force & Jewell, 18 Green Hill Road, Bellingham, WA 98229. Robbins & Company, Robbins & Company House Moving, 818 SW 142nd St., Burien, WA 98166. Aerotek Inc., 1010 SE Everett Mall Way #103, Everett, WA 98208. Sandra Kay Designm Sandra Kay Design LLC, 591 E. Bakerview Road, Bellingham, WA 98226. Citrus Cleaners LLC, 4816 88th Ave. SE, Mercer Island, WA 98040. Karate Quest, Karate Quest LLC, 1105 11th St., Bellingham, WA 98225. J & M LLC , 424 W. Bakerview Road, Bellingham, WA 98226.

Issued 2039 Moore St., $60,000 for tenant improvement: interior renovations as shell space only for future unstated use(s): tenant unknown at this time (separate occupancy approval required for all uses): S&P Mills LLC. 1321 Cornwall Ave., $11,000 for tenant improvement: retail store and warehouse/distribution/product mixing for electronic cigarette distributor, includes warehouse shelving: ECX LLC. Applicant and contractor: Braam Construction Inc. 3001 Cinema Place, $368,024 for new one-story commercial building shell. Contractor: Dawson Construction Inc. 2502 Cornwall Ave., $52,000 for tenant improvement: create new offices: Edward Jones. Applicant and contractor: Linn-Douglas Construction LLC. 2432 E. Bakerview Road, $185,937 for commercial alterations/ additions: enlarge ground floor showroom and shop, enlarge secondstory office and storage area within existing building footprint. Applicant: Fuller Building Design. Tenant: D K Diesel. Contractor: The Franklin Corporation. 215 W. Holly St. 21, $13,500 for tenant improvement: convert office space into pizza restaurant. Contractor: Pacific Construction. 4040 Northwest Ave., $12,347,357 for new hotel over underground parking garage: 122-room “Springhill Suites” and common areas (phase one of two): Marriot Corporation. Contractor: Vandervert Construction. 4040 Northwest Ave., $140,000 for commercial construction: two concrete stormwater vaults for proposed hotel: Marriot Hotel. Contractor: Vandervert Corporation. 2000 N. State St., $35,000 for one internally-illuminated, freestanding monument-type sign with electronic message center (on existing foundation from previous sign): Natural Way Chiropractic. Applicant and contractor: The Sign Post Inc. 1409 18th St., $45,000 for commercial alteration, Larrabee School: rebuild concrete exterior stairs at south end of building. Contractor: Dawson Construction Inc. 117 N. Samish Way, $95,000 for tenant improvement: interior remodel to convert previous restaurant into a Happy Nails salon 3960 Hammer Drive, $19,000 for commercial alteration and occupancy change: new occupancy of business mixing and distributing lawn-care chemicals: Trugreen Limited. Applicant and contractor: The Franklin Corporation. 4285 Meridian St. 103, $100,000 for tenant improvements: interior remodel of existing cafe: Starbucks Coffee. Contractor: Wilcox Construction. 333 32nd St., $10,000 for commercial alteration: install support beam at second floor to support UPS batteries, revise HVAC roof rack. Applicant: Zervas Group. Tenant: Administrative Services. Contractor: Veca Electric Company Inc. 2075 Barkley Blvd. 225, $23,000 for tenant improvement, suite 225: divide existing office suite into two tenant space. 2075 Barkley Blvd. 230, $28,000 for tenant improvement, suite 230: divide one tenant space into two. Contractor: Scoboria Construction Inc. 2620-28 Donovan Ave., $11,664 for commercial alteration: install racking for roof mounted photovoltaic system. Applicant and contractor: Ecotech Energy Systems LLC. 1707 N. State St., $24,075 for commercial re-roof: remove existing roofing to roof deck, install R-30 EPS foam, install separator sheet and TPO single-ply roof membrane with new metal edge flashing around perimeter. Applicant and contractor: Esary Roofing & Siding Co. Inc. 516 High St. (WWU College Hall), $450,000 for commercial alterations: re-roof and install attic insulation. Contractor: Regency NW Construction Inc. 915 Cornwall Ave., $10,000 for commercial alteration: enlarge pile cap to support air compressors, tank and equipment ched. Contractor: Total Western Inc. 405 32nd St. 201, (no valuation calculation) tenant improvement: remodel existing office for financial services business: Fairhaven Financial. Applicant: Dawson Construction 350 W. Orchard Drive, $135,308 for commercial: install new membrane roof system over existing built-up roof. Applicant and contractor: Hytech Roofing Inc. 1929 King St., $18,500 for commercial: removal and replacement of existing roofing system. Contractor: Topside Roofing & Construction. 607 E. Holly St., $25,000 for commercial alteration: install Unirac Rapidtrac mounting system for installation of photovoltaic modules: City Gate Apartments. Applicant and contractor: Western Solar Inc. 3750 Meridian St., $10,000 for one roof-mounted internallyilluminated LED display sign for hotel: Econolodge Inn. Contractor: Mike’s Neon Signs. 1 Bellis Fair Parkway 532, $30,000 for 12 signs: Seven internallyilluminated hung from walls and ceiling, five non-illuminated wallmounted: Forever 21. Applicant and contractor: Signs Plus Inc. 2210 Rimland Drive 101, $106,000 for tenant improvement: complete shell space in new office building for unknown office tenant: Talbot Real Estate LLC. Contractor: Scoboria Construction Inc. 3960 Hammer Drive, $19,000 for shell improvement: add concrete berm and create concrete put for new sump pump for future

occupancy: Trugreen Limited. Applicant and contractor: The Franklin Corporation. 4365 Meridian St., $35,091 for commercial alterations/addition: demolish R-3 dwelling unit to enlarge restaurant seating area, add storeroom, enlarge parking lot. Tenant: Wonderful Buffet. Contractor: Upland Developers Inc. 516 High St. (WWU Ross Engineering Technology Building), $220,000 for commercial alterations: modify HVAC system at third floor, clean/weatherize building exterior. Contractor: H B Hansen Construction Inc. 2012 Woburn St., $16,500 for commercial: install 13 bays of pallet racking and two sections of cantilever rack in warehouse: product is noncombustible and nonencapsulated roofing hardware, flashing, etc.: Convoy Construction Materials. Contractor: Warehouse Solutions NW LLC. 3031 Orleans St. 203, $16,000 for tenant improvement: remodel interior of office suite 203 and close off door to adjoining suite. Applicant and contractor: Scoboria Construction Inc. 1311 N. State St. (Alley), $69,000 for tenant improvement: reconstruct portions of ground floor space for commercial catering kitchen and associated office & storage areas; restore historic storefront: ACME Farms & Kitchen. 1309 N. State St., $55,200 for tenant improvement: reconstruct portions of ground floor space for restaurant with small commercial kitchen (shares facilities with adjacent catering kitchen at 1311 N. State): restore historic store: Dashi Restaurant. 1313 N. State St., $13,800 for tenant improvement: reconstruct portions of first-floor shell space for future commercial tenant (separate T.I. permits required): FSM Development. Accepted 115 Unity St., $37,085 for commercial: install new membrane roof system over existing built-up roofing. Applicant and contractor: Esary Roofing & Siding. 3725 Iron Gate Road, $20,000 for commercial: construct unenclosed roof over work area (atop existing asphalt). 2815 Meridian St., $15,000 for tenant improvement: remodel space for office/religious center. 2418 Alabama St., $14,350 for tenant improvement: finish 400 square feet of new convenience store for restaurant kitchen lessee: Pizzazza. 220 Unity St., $190,000 for tenant improvement: upper floor lobby remodel, acoustical work, etc. 220 Unity St., $1.33 million for tenant improvement: remodel entire lower floor for medical offices. 475 W. Stuart Road, $405,000 for foundation only for new twostory commercial building and site/utility work. 747 Ohio St., $10,000 to remove, recover and reinstall existing awnings. Applicant and contractor: Signs Plus Inc. 215 W. Holly St. 21, $13,500 for tenant improvement: convert office space into pizza restaurant. 207 Unity St., $20,000 for tenant improvement: remodel space for additional cafe area, replace overhead and entry door. 1 Bellis Fair Parkway 330, $185,000 for tenant improvement for new retail store in existing retail space including partitions, doors, ceiling: Chico’s. Applicant: Permit Resources. 3001 Cinema Place, $368,024 for a new one-story commercial building. 1321 Cornwall Ave., $11,000 for tenant improvement: retail store and warehouse/distribution/product mixing for electronic cigarette distributor: EXC Inc. Applicant and contractor: Braam Construction Inc. 4040 Northwest Ave., $140,000 for commercial construction: two concrete stormwater vaults for proposed hotel: Marriott Hotel. Contractor: Jansen Construction Co. of Washington. 3005 Cinema Place, $50,000 to install 10 exterior illuminated signs and border neon per design. 2000 N. State St., $35,000 for one internally-illuminated freestanding monument type sign with electronic message center (on existing foundation from previous sign): Natural Way Chiropractic. Applicant and contractor: The Sign Post Inc. 2039 Moore St., $60,000 for tenant improvement: interior renovations as shell space only for future unstated uses: tenant unknown at this time (separate occupancy approval required for all uses): S&P Mills LLC. 2211 Rimland Drive 210, $17,500 for tenant improvement: remodel office space on second floor of building. Contractor: Scoboria Construction Inc. 1926 James St., $51,000 for commercial: install racking systems in new retail auto parts store. 1306 Lakeway Drive, $10,000 for tenant improvement: reconfigure existing Subway restaurant. 215 W. Holly St. 21, $13,500 for tenant improvement: convert office space to pizza restaurant. 2039 Moore St., $15,000 for tenant improvement: interior renovations as shell space only for future assembly use(s): tenant unknown at this time. 1707 N. State St., $24,075 for commercial re-roof: remove existing roofing to roof deck, install R-30 EPS foam, install separator sheet and TPO single-ply roof membrane with new metal edge flashing around perimeter. Applicant and contractor: Esary Roofing & Siding Co. Inc. 1409 18th St., $45,000 for commercial alteration, Larrabee School: rebuild concrete exterior stairs at south end of building. 1926 James St., $570,000 for construction of new auto parts store with related parking and drive aisle.

August 2012 400-block W. Stuart Road, $405,000 for foundation only for new two-story commercial building and site/utility work. 121 Prospect St., $90,000 for commercial alteration: partial window replacements. Applicant: SHKS Architects. 915 Cornwall Ave., $25,000 for commercial: install new canopies over two existing exterior stairs. 3960 Hammer Drive, $19,000 for commercial alteration and occupancy change: remove existing slab and replace with new containment slab in warehouse/office building, new occupancy of business mixing and distributing lawn-care chemicals: Trugreen Limited. Applicant and contractor: The Franklin Corporation. 117 N. Samish Way., $95,000 for tenant improvement: interior remodel to convert previous restaurant into a nail salon: Happy Nails. 333 32nd St., $10,000 for commercial installation of new beam on second floor to support future UPS, revised existing roof rack for future HVAC equipment. Applicant: Zervas Group. Tenant: Administrative Services. 2075 Barkley Blvd. 225, $23,000 for tenant improvement: divide existing office suite into two tenant spaces. Contractor: Scoboria Construction Inc. 2075 Barkley Blvd. 230, $28,000 for tenant improvement: minor interior remodel of existing office space. Contractor: Scoboria Construction Inc.

LIQUOR LICENSES New applications Cafe 542; Trisha Ann Gesmundo and Serafino Gesmundo, applied to sell beer/wine in a restaurant at 7466 Mount Baker Highway, Maple Falls, WA 98266. Dollar Plus Smoke Shop; Ekham LLC, Balras Singh applied to assume a license from Amarjit Singh to sell beer/wine in a grocery store at 4151 Meridian St., Suite 108, Bellingham, WA 98226. Bellingham Beverage Express; Bellingham Beverage Express LLC, Michael Craig Mullarky, Laurie E. Mullarky, Mark E. Shintaffer, Joyce C. Shintaffer, Dean Phillip Shintaffer and Amy M. Shintafffer applied to sell beer/wine and growlers in a specialty shop at 2001 Iowa St., Suite A, Bellingham, WA 98229. Eagles Roost; Diversified Holdings LLC, David J. Bernstein applied to sell beer/wine in a restaurant at 4973 Cottonwood Court, Blaine, WA 98230. Luis’ Mexican Restaurant; Robles Inc., Luis M. Robles applied for a license change to sell spirits/beer/wine in a restaurant lounge at 1538 Birchwood Ave., Suite B, Bellingham, WA 98225. Perch & Play; Family Clubhouse Cafe LLC, Raleigh Barreon Kukes applied to sell beer/wine in a restaurant at 1707 N. State St., Bellingham, WA 98225. Bromley’s Market; Bullet LLC, James Robert Bromley and Kandy J. Bromley applies for a license change to sell beer/wine/spirits in a grocery store at 315 Cherry St., Sumas, WA 98295. Old World Deli; Grippe-Adams Inc., Anna M. Adams and Chris G. Adams applied for a license change to sell beer/wine in a restaurant and for off-premises consumption at 1228 N. State St., Bellingham, WA 98225. Recently approved The Fireside Martini and Wine Bar at 416 W. Bakerview Road, Bellingham WA 98226, was approved for a license change to be a direct shipment receiver-in WA only. Old World Deli at 1228 N. State St., Bellingham, WA 98225, was approved for a license change to sell beer/wine in a restaurant. Southern Wine & Spirits of Washington at 1313 Meador Ave., Suite B, Bellingham, WA 98229, was approved as a beer distributor. Ocean Bay Restaurant at 1210 3rd St., Blaine, WA 98231, was approved to sell beer/wine in a restaurant. Tokyo House at 1222 N. Garden St., Bellingham, WA 98225, was approved for a license change to sell beer/wine in a restaurant. Kombucha Town at 1155 N. State St., Suite 603, Bellingham, WA 98225, was approved as a microbrewery. Renates German Deli at 312 Front St., Lynden, WA 98264, was approved to sell beer/wine in a restaurant and taproom. Alexxian at 2001 Iowa St., Suite F, Bellingham, WA 98229, was approved as a domestic winery, less than 250,000 liters. Lighthouse Bar & Grill at 1 Bellwether Way, Bellingham, WA 98225, was approved for a change of LLC member to sell beer/wine/ spirits in a restaurant lounge.

BANKRUPTCIES Chapter 7 Mark Gilbert Heath, case no. 12-17782-KAO. Filed July 27. Robert Dean Flaherty Jr. and Ginger K. Flaherty, case no. 12-17742-KAO. Filed July 26. Mark Lee Cicogni and Peachy Villanueva Cicogni, case no. 12-17741-KAO. Filed July 26. Aaron Lee Grey and Melissa Diane Grey, case no. 12-17729-KAO. Filed July 26. Hermod Erling Bakke and Linda Gail Bakke, case no. 12-17722KAO. July 26. Matthew Robert Randall and Laura Jane Randall, case no. 12-17720-KAO. Filed July 26. Robert John Benasky and Jeri Lynn Benasky, case no. 12-17693-

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August 2012

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DATA | FROM 14 KAO. Filed July 25. Efrain Garfias-Velazquez and Carmen A. Garfias, case no. 12-17692-KAO. Filed July 25. Travis Joshua Hansen and Danicka Elysha Hansen, case no. 12-17658-KAO. Filed July 24. Christ Gade Thomsen and Tami Lynn Thomse, case no. 12-17657-KAO. Filed July 24. Daharanjit Singh Sandhu and Sandeep Kaur Sandhu, case no. 12-17615-KAO. Filed July 23. Paul Edward O’Breen and Jamie Lynn O’Breen, case no. 12-17591-KAO. Filed July 23. Mark Allen Ferguson and Angela Elizabeth Ferguson, case no. 12-17556KAO. Filed July 20. Russell Scott King and Jolene Flay King, case no. 12-17526-KAO. Filed July 20. Walter Robert Taylor and Karen Kay Taylor, case no. 12-17517-KAO. July 19. Charles Robert Brinkley and Jerrie Lynn Brinkley, case no. 12-17502-KAO. Filed July 19. Richard Anthony Perkins and Melody Ann Perkins, case no. 12-17480-KAO. Filed July 19. Fidel Guevara Rodelas and Jacqueline Bernice Rodelas, case no. 12-17476-KAO. Filed July 19. Dannetta Villa, case no. 12-17453-KAO. Filed July 18. Michael Ross Glick, case no. 12-17403KAO. Filed July 17. Ryan Daniel Kimber and Carrie Kathleen Kimber, case no. 12-17346KAO. Filed July 16. Amber Lee Winsor, case no. 12-17311KAO. Filed July 13. Darrell John Stacey, case no. 12-17308KAO. Filed July 13. Salvador Alexander Lopez, case no. 12-17275-KAO. Filed July 13. Martha Kimberly Carson, case no. 12-17252-KAO. Filed July 12. Michael Dennis Sullivan and Emily Elizabeth Sullivan, case no. 12-17244KAO. Filed July 12. Ellen Pugh McAnany and David Donaldson McAnany Jr., case no. 12-17228-KAO. Filed July 12. Jennifer Aika Mott, case no. 12-17042KAO. Filed July 6. Daryl Ray Myers and Meghann Jean Myers, case no. 12-17039-KAO. July 6. Michael Norman Gist and Heather Ann Gist, case no. 12-16946-KAO. Filed July 3. Mary Annette Rael, case no. 12-16943KAO. Filed July 3. Brandon Michael Minga, case no. 12-16815-KAO. Filed June 29. April Dennise Lee, case no. 12-16767-KAO. Filed June 28. Chapter 11 No cases reported. Chapter 13 Margaret Louise Parsons, case no. 12-17809. Filed July 27. Adam Patrick Prince, case no. 12-17784KAO. Filed July 27. Cecilia Marie Johnson, case no. 12-17612KAO. Filed July 23. Paula Baldwin Elias, case no. 12-17423KAO. Filed July 18. Richard Leon Woodmansee and Carol Leslie Woodmansee, case no. 12-17419KAO. Filed July 17. Ty Merlyn West and Kimi Carnine West, case no. 12-17406-KAO. Filed July 17. Elizabeth Ann Mello, case no. 12-17167KAO. Filed July 10. Debra Ann Wharton-Pearce, case no. 12-17020-KAO. Filed July 5.

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TAX LIENS Editor’s note: At press time, tax liens filed after July 10 were not yet posted by the Whatcom County Auditor’s office. Once those liens are made available, find them at BBJToday.com. HB Hansen Construction Inc., $32,801.65 in unpaid IRS taxes. Filed July 10.

Michael C. and Jeanette A. Christopher, $8,882.91 in unpaid IRS taxes. Filed July 10. John Canteline, $25,258.57 in unpaid IRS taxes. Filed July 10. Jan S. Lipton, 78,794.21 in unpaid IRS taxes. Filed July 10. Barbara M. Udy, $175,496.67 in unpaid IRS taxes. Filed July 10. Calvin C. Smith, $473,540.89 in unpaid IRS taxes. Filed July 10. Daniel J. and Katherine A. Ripley, $6,770.06 in unpaid IRS taxes. Filed July 10. Whitney Underground LLC, $39,299.83 in unpaid IRS taxes. Filed July 10. Solis Painting Inc., $10,157.87 in unpaid IRS taxes. Filed July 2.

BBJToday.com Charles A. Shipp and Nuong Duong, $20,383.39 in unpaid IRS taxes. Filed July 2. Marsi Danielsen, $9,216.52 in unpaid IRS taxes. Filed June 29. Rising Suns Motors Inc., $45,269.94 in unpaid IRS taxes. Filed June 29. Colleen Marie, $84,868.91 in unpaid IRS taxes. Filed June 29. Cheryl L. O’Connor, $99,921.75 in unpaid IRS taxes. Filed June 29. Mad Pizza Company Inc. and Bryan Dobb, $55,373.97 in unpaid IRS taxes. Filed June 29. Industrial Services Inc., $437.37 in unpaid IRS taxes. Filed June 25. Raymond Gilbride, $34,424.22 in unpaid IRS taxes. Filed June 25. Jon A. and Rebecca M. Peterson, $27,829.10 in unpaid IRS taxes. June 25. Tera L. Ehman, $8,479.94 in unpaid IRS taxes. Filed June 22. International Composite Design LLC and Jon Lindhout MBR, $109,572.23 in unpaid IRS taxes. Filed June 22. William S. Cummins, $536,792.66 in unpaid IRS taxes. Filed June 22. Cowboy Campsite LLC, $15,685.18 in unpaid IRS taxes. Filed June 22.

Excel Physcial Therapy Inc., $1,562.02 in unpaid IRS taxes. Filed June 22.

JUDGMENTS Finnmex Inc. dba A Taste of Elegance, $389.22 in unpaid Department of Revenue taxes. Filed July 25. Anthony W. Kesslau dba Kesslau Construction, $25,140.72 in unpaid Department of Revenue taxes. Filed July 25. Patrick’s Custom Construction Inc., $1,561.69 in unpaid Employment Security Department taxes. Filed July 24. Trident Structural Inc., $20,639.27 in unpaid Employment Security Department taxes. Filed July 24. Hunnicutts Inc. dba Hunnicutts Truck Stop, $9,125.99 in unpaid Employment Security Department taxes. Filed July 24. Charlotte L. Melland and Kevin R. Melland dba Cutie Patooties Childrens Boutique, $1,474.02 in unpaid Department of Revenue taxes. Filed July 23. Nami Japanese Restaurant Inc., $5,246.44 in unpaid Department of Revenue taxes. Filed July 23. Semiahmoo Drywall LLC, $4,211.47 in unpaid DOR taxes. Filed July 23.

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Pacific Packetting Inc., $1,432.93 in unpaid Department of Labor & Industries taxes. Filed July 23. B&J Fiberglass LLC, $3,241.52 in unpaid Department of Labor & Industries taxes. Filed July 23. TLB Construction LLC, $15,338.90 in unpaid Department of Labor & Industries taxes. Filed July 23. Scott Christopher and Jane Doe Shuman fka Dream Decks & Siding Inc., $18,815.83 in unpaid Department of Labor & Industries taxes. Filed July 23. Justin E. Burner, $1,050 in unpaid DLI taxes. Filed July 23. Keith Allen Harbison, $133.60 in unpaid DLI taxes. Filed July 19. Christopher Shea Heston; Barbara Faith Heston; Jane and John Doe Heston dba Heston Hauling, $10,994.41 in unpaid Department of Labor & Industries taxes. Filed July 17. The Lectronic Shoppe Inc., $2,160.16 in unpaid Department of Revenue taxes. Filed July 17. Nu Growth Industries Inc. dba Perfect Timing Watch Repair, $2,464.61 in unpaid DOR taxes. Filed July 17. Dale E. Smith and Heidi D. Smith dba Power Operated Wash, $2,063 in unpaid Department of Revenue taxes. Filed July 17. Nebula Glass Studios Inc., $1,340.31 in unpaid Department of Labor & Industries taxes. Filed July 16. Pacific Quest Inc., $171.43 in unpaid Department of Revenue taxes. Filed July 12. Lancer L. Martin dba Lancescaping Ultd., $1,917.82 in unpaid Department of Revenue taxes. Filed July 11. Cody L. Ross dba Dimension Tile & Stone, $1,968.89 in unpaid Department of Revenue taxes. Filed July 10. Claassen Enterprises LLC dba Book Fare Cafe, $5,934.51 in unpaid Department of Revenue taxes. Filed July 10. CB5 Corporation dba Pro G Sign & Graphics, $6,891.02 in unpaid Department

August 2012 of Revenue taxes. Filed July 10. Sheila D. Haugen dba Gardenworks, $3,023.76 in unpaid Department of Revenue taxes. Filed July 10. Hannegan Super Market LLC, $8,895.49 in unpaid Department of Revenue taxes. Filed July 10. Gameday Auction USA LLC, $6,937.70 in unpaid Department of Revenue taxes. Filed July 10. Brent J. Applington dba Natures Art Landscaping, $268 in unpaid Department of Revenue taxes. Filed July 9. Raindance Roofing Inc., $2,442.12 in unpaid Department of Labor & Industries taxes. Filed July 9. Mount Baker Powder Coating Inc., $3,192.48 in unpaid Department of Labor & Industries taxes. Filed July 9. Adan G. Baldovinos, $1,050 in unpaid Department of Labor & Industries taxes. Filed July 9. Pegasus Corporation, $778.18 in unpaid Department of Revenue taxes. Filed July 6. Denise M. Lariviere dba Rocket Coffee, $4,153.77 in unpaid Department of Revenue taxes. Filed July 6. Matthew J. Simmons and Jessica M. Simmons dba Simmons Automotive Services, $529.03 in unpaid Department of Revenue taxes. Filed July 5. Five One Five Holdings Inc., $7,030.94 in unpaid Department of Revenue taxes. Filed July 5. O’Brien Resources (USA) Inc., $26,046.73 in unpaid Department of Labor & Industries taxes. Filed July 5. On Point Construction LLC, $5,401.20 in unpaid Department of Revenue taxes. Filed July 2. Platinum Builders Inc., $2,115.97 in unpaid Department of Labor & Industries taxes . Filed July 2. Life’s A Party LLC, $306.64 in unpaid Department of Labor & Industries taxes . Filed July 2. Cicchitti’s Pizza Inc., $990.47 in unpaid

Department of Labor & Industries taxes . Filed July 2. Muscle Marketing USA Inc., $392.67 in unpaid Department of Labor & Industries taxes . Filed July 2. Timothy Scott Moore dba Slide Mountain Bar & Grill, $447.57 in unpaid Department of Labor & Industries taxes . Filed July 2. Edward Leigh Howe and Rosa Elba Howe dba House Painting by Ed Howe, $2,449.66 in unpaid Department of Labor & Industries taxes . Filed July 2. NW Choice Construction Inc, $8,231.97 in unpaid Department of Labor & Industries taxes . Filed July 2. Accusearch LLC, $220.48 in unpaid Department of Labor & Industries taxes . Filed July 2. Banditos Burritos B Inc., $7,072.87 in unpaid Department of Revenue taxes. Filed June 28. Forever Fit LLC, $4,687.54 in unpaid Department of Revenue taxes. June 28. Anthony W. Kesslau dba Kesslau Construction, $17,059.02 in unpaid Department of Revenue taxes. June 28. Michelle R. Mousseau and Jonathan R. Grover dba Boos Parlour, $3,428.26 in unpaid Department of Revenue taxes. Filed June 28. Marcos and Jane Doe Cortes dba Espinoza Inc. dba Espinoza Mexican Restaurant, $383.32 in unpaid Department of Labor & Industries taxes. Filed June 27. Copper Hog LLC dba Copper Hog Inc., $1,252 in unpaid Department of Labor & Industries taxes. Filed June 27. C&H Management Services Inc., $5,135.32 in unpaid Department of Labor & Industries taxes. Filed June 26. Cicchitti’s Pizza Inc., $1,106.90 in unpaid Department of Labor & Industries taxes. Filed June 26. Banditos Burritos B Inc., $302.33 in unpaid Department of Labor & Industries taxes. Filed June 26.

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August 2012

FORWARD THINKING

Eberhard Eichner, lead designer of the RE Store’s REvision Division, discusses the art of creating furniture from donated or salvaged building materials.

RE Sources turns 30, adjusts to the realities of the post-recession economy

By Evan Marczynski evan@bbjtoday.com

I

n the early ‘80s, at a time when Bellingham’s only mode of recycling required locals to load their cars with old cans and newspapers and drive to a drop-off spot, a group of volunteers decided to borrow a truck and take recyclables straight from people’s curbsides. With an ethic of waste reduction, Bellingham Community Recycling, as the volunteers later called themselves, eventually spurred the city and county to offer curbside pickup as well. Over the next three decades, the organization developed programs charged with an array of sustainable-living goals. Its remodeled compound in Bellingham’s Fountain District opened in 2007. Today, after making it through the economic recession, RE Sources for Sustainable Communities – the organization’s original moniker changed in 1995 – is ready to map its future, said Crina Hoyer, the nonprofit’s executive director. “I think we’re on the cusp of something spectacular,” Hoyer said. RE Sources celebrated its 30th anniversary in July. In addition to the RE Store, the agency runs North Sound Baykeeper, which protects marine and nearshore habitats in north Puget Sound; Sustainable Schools, a program encouraging local schools to reduce waste and make more efficient energy and transportation choices; and the Sustainable Living Center, a hub for residents interested in “green” building, permaculture, solar tech and other sustainable practices. Branching out from its original purpose likely saved the organization during the downturn, Hoyer said. “If we had just stayed a recycling program, I don’t think we would have weathered the storm,” she said. “We have a commitment to this vision of a sustainable community.” Like other nonprofits, RE Sources was not immune to the recession. The RE Store had to cut 25 percent of its

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staff, and every program saw drops in volunteers and resources. But hard times forced directors and employees to re-focus the organization and broaden its endeavors, which has given Hoyer optimism for the future. Over the past couple of

years, the nonprofit has become more visible in regional environmental issues. RE Sources is an active opponent of the Gateway Pacific Terminal proposed for Cherry Point by SSA

EVAN MARCZYNSKI PHOTO

RE SOURCES | Page 19

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Serving: Bellingham, Blaine, Birch Bay, Ferndale, Lynden, Lummi Island and all of Whatcom County... more to explore.

August 2012 Arts & Culture • Dining Bicycling • Fishing • Wildlife Water Adventures• Casinos Lodging• Winter Activities Shopping • Spas • Health

A Refreshing Change

Travel & Tourism – on pace for a record year Sponsored content provided by Loni Rahm, Bellingham Whatcom County Tourism.

T

he U.S. travel and tourism industry is looking at a record-setting year, with both spending and visitor numbers well above last year’s figures. Much of the increases are attributable to a surge in international visitors – bolstered by travel demand from China, Mexico, Brazil, and Canada. In 2011, international travel spending totaled $153 billion while travel spending abroad by Americans totaled $110 billion – creating a trade surplus of $43 billion in favor of the U.S. International travel directly supports about 1.2 million U.S. jobs with wages of $28.5 billion annually. The U.S. received 62.3 million international arrivals in 2011. Of those, approximately 27.9 million were from oversees markets and 34.4 million were from Canada and Mexico. Direct spending by resident and international travelers in the U.S. averaged $2.2 billion a day, $92.8 million an hour, $1.5 million a minute, and $25,778 per second. The State Department recently announced that they it had already processed more than 1 million visas in China so far this year – a 43 percent increase over the first six months of 2011. Tourism is a prime reflection and economic benefactor of improving relations between the U.S. and China. Since 2004, the number of visitors from China has increased 438 percent. According to Chinese government statistics cited by China Daily, about 1.2 million mainland Chinese visited the United States last year. That number is expected to reach 2 million

by 2015. U.S. consular offices in Mexico process more than 1 million visa applications each year, and with a 44% increase this year over last, Brazil is soon likely to surpass that number as well. The Canadian market is showing similar strength in numbers and is projected to finish the year even stronger to take advantage of increased duty free allowances for overnight stays. “After September 11, the perception formed around the world that America was not as welcoming as it once was. That there was difficulty in accessing the visa, and the entry process through customers was inefficient,” indicated Geoff Freeman, the chief operations officer of the U.S. Travel Association. “Interest in America is high and has largely remained high but there has been the perception that ‘America isn’t interested in me so I won’t go,’” Mr. Freeman said. “’Go Away’ was the message we were sending.” Not anymore. Brand USA, the United States’ first-ever tourism marketing campaign, launched May 1st. The message is clearly “Our doors are open.” Brand USA is a partnership of government agencies and private companies developed to act like the tourism ministries of countries such as Ireland, Italy or Israel. Funding for the consortium is derived in part as a result of the Travel Promotion Act, which passed in 2010 and imposes a $10 fee on each new visa. As evidenced by the record numbers of visas being processed, the fee did not dampen

Coming Spring 2013

traveler enthusiasm. Individual destination marketing organizations (DMOs), including Bellingham Whatcom County Tourism, also focus marketing energies across the border and around the world. In a recent study conducted through DMAI (Destination Marketing Association International) more than half of the 240 tourism agencies who responded indicated they market internationally, investing an average of one-third of their total marketing budget outside of the U.S. The most popular countries currently pursued include Canada, the United Kingdom and Germany. But given the overwhelming demand in China, Mexico and Brazil, those countries will most likely receive more marketing attention in the future. International interest is also a

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reflection of the increased destination exposure gained through social media and non-traditional marketing activities. Global consumers demand increasingly sophisticated content and functionality, with DMO’s spending more time and resources on destination websites, mobile websites and integration of online activities. Putting out the community “welcome mat” to international visitors provides a great opportunity to stimulate job creation and strengthen the local economy. After all, the travel industry remains one of the countries top 10 industries, and ranks #1 among all U.S. industry exports.


August 2012

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RE SOURCES | FROM 17

Marine of Seattle. It also helped create the Power Past Coal group, an alliance of anticoal advocates spread across the western U.S.

RE STORE REMAINS AT CENTER As a clearinghouse of salvaged building materials, the Bellingham RE Store at 2309 Meridian St., is a crowded mash with shelves of plumbing fixtures, rows of cabinets and doors and dozens of bins with wheels, tools and hardware of all sorts. The store, which opened in 1993, recovered and saved more than 2,200 tons of building supplies in 2010. Its annual sales regularly top $1.5 million. RE Sources also operates a second branch in Seattle. RE Store manager Rich Chrappa said while repurposing building materials for new construction is still a trend with builders and homeowners, it’s challenging to create a fair pricing system for the store’s items. Materials are usually sold at about half the cost of what they would sell for brand new. Since the RE Store is in the business of re-selling, some customers think its inventory comes solely from donations, Chrappa said. Yet getting items on the shelves is not an easy task. While many items are donated, often the store’s staff recovers building material themselves. “There’s actually quite a lot of labor that goes into salvaging that material,” Chrappa said. RE Store staff hauls materials out of building sites, strips them from homes undergoing remodeling and also offers

(Left) The RE Patch Community Garden, located behind the RE Store’s warehouse on Meridian Street, allows community members to rent garden beds to grow edible or otherwise useful plants. (Right) An assortment of items hangs in Eberhard Eichner’s workshop. EVAN MARCZYNSKI PHOTOS

full “deconstruction” services to demolish buildings and recover salvageable items. The store employs about two dozen people between its sales-floor team and its field crew. Majorie Leone, the RE Store’s Bellingham field manager, said salvage efforts are tied to the real estate market. But since the recession, it’s been tougher to find recovery sites. Residential projects are prime spots for salvage jobs, Leone said. Due to the timecrunching nature of commercial contracting, residential builders tend to also be more frequent customers, she said. “Using used materials takes a little bit more time, a little bit more work,” Leone said. “You save some money, but it takes more work.”

sputtering economic world has taxed RE Sources’ programs, as the organization’s third decade comes to a close, things are improving. With broader public knowledge of the cost-savings that can come from green building techniques, including building with re-used or re-purposed materials, Darling said people are starting to catch on to the fact that what may look like trash

can often be turned into something useful. He said education and community service programs, such as the Sustainable Living Center, will be major components of RE Sources’ future. “We’re in this new economy now, so we’re just adjusting to that,” Darling said. “We’re ultimately about meeting the needs of the community.”

A ‘NEW’ ECONOMY Jason Darling, education and marketing coordinator at the RE Store, said while the

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There’s A World Of Possibilities Out There. Whidbey ISLAND BANK Making Life A Little Easier MEMBER FDIC

August 2012

Bellingham Business Journal, August 06, 2012  

August 06, 2012 edition of the Bellingham Business Journal

Bellingham Business Journal, August 06, 2012  

August 06, 2012 edition of the Bellingham Business Journal