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Year 21 No. 5 $1

MAY 2013

STAY & FLY | PAGE 8

PROPOSAL FOR HOLIDAY INN AT AIRPORT WILL MOVE AHEAD

Skill gap seen in applicants for jobs in high-tech fields Survey shows half of Washington’s technology employers report difficulty filling positions By Evan Marczynski evan@bbjtoday.com

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PeaceHealth St. Joseph Medical Center in Bellingham, which is Whatcom County’s sole hospital and largest employer, was set to become part of the new regional health care system. PHOTO COURTESY OF PEACEHEALTH

CALLED OFF

PeaceHealth, Catholic Health Initiatives cite discord among shared services in suspending talks to create new health care system By Evan Marczynski evan@bbjtoday.com

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fter announcing a joint venture last summer to combine their operations in the Pacific Northwest and create a new regional health care system, leaders of PeaceHealth and Catholic Health Initiatives knew the negotiations would be complicated. But nine months into a due diligence process before the partnership was expected to begin in July, talks were suspended as the organizations said they had hit

an impasse over how to integrate their services. The partnership was driven by a desire to cut costs, handle more financial risk in caring for Medicaid and Medicare patients and streamline operations as elements of federal health care reform took effect. But the scale of the deal presented too many complexities for either group to meet agreeable terms, executives from PeaceHealth and CHI, both of which are nonprofit Catholic health care systems, said. “It is the fragmentation that

lives within health care across all the providers that makes that so difficult,” Peter Adler, a senior vice president and chief strategist for PeaceHealth, said. “We need to keep working on that.” With the health care industry anticipating significant change over the next decade, synergy among hospital operators is thought to be a key element in achieving more efficient service— and in the end, better outcomes for patients currently facing

fter making a lap around the conference room in Fox Hall at Bellingham’s Hampton Inn, Will Hobbs takes a short break from mingling with dozens of potential employers, almost all with jobs to offer. Hobbs is at the Bellingham TechExpo and Job Fair, hosted by the nonprofit Technology Alliance Group for Northwest Washington, to scope out jobs available from local technology employers. The 41-year-old, who works a graveyard shift doing security at Silver Reef Casino in Ferndale, said he has about eight months left before finishing an information technology degree program at the local branch of Charter College. He said he is interested in a career in network security, and he

thinks he will likely start out at a small company. But right now, it’s difficult for him to narrow down the options. “It’s so hard to really decide on what I want to do,” Hobbs said. Once he’s completed school, Hobbs will enter an industry with employers who say it is getting harder to find skilled and qualified applicants to fill job vacancies. A 2012 survey completed by the state Workforce Training and Education Coordinating Board, the results of which were released in January, found that out of an estimated 60,000 Washington employers who hired new workers last year, one in five had difficulty finding qualified applicants. While unemployment has dropped from recession-level highs in much of Washington,

SKILL GAP | Page 22

INSIDE THIS ISSUE Tech entreprenuer center opens downtown | PAGE 13 Alliance between digital firms, nonprofits and commercial real estate agents has created a new entrepreneurship center, devoted to getting new tech companies off the ground in downtown Bellingham.

Questions & Answers with Corrinne Sande | PAGE 12 Computer security expert and educator has helped garner national acclaim for the Computer Information Systems program at Whatcom Community College.

PEACEHEALTH | Page 23

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Bob Wallin Insurance will host a free document shredding event from noon to 2 p.m. on Friday, May 10, at its Bellingham MAY office, 1844 Iron St. Sound Recycling will be handling disposal of shredded material. All metal clips, binders and staples need to be removed from documents to be shredded. Bob Wallin Insurance can be reached at 360-7345204 for more information

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Gluten-Free Food Fair

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The Bellingham Public Market, Terra Organica, and the Bellingham Gluten Intolerance Group plan to host a GlutenFree Food Fair celebrate MAY to National Celiac Awareness Month, which takes place in May. The event is scheduled from 1 p.m. to 4 p.m. on Saturday, May 11, at the Bellingham Public Market, 1530 Cornwall Ave. At the Gluten Free Food Fair, visitors will be able to learn more about celiac disease and gluten sensitivity. There will be many gluten free foods to sample and resources to help people live a healthy life without gluten. Author and naturopathic physician Dr. Jean Layton will answer questions and sign copies of her book “Gluten Free Baking for Dummies,” and massage therapist Janet Kingsley will be available to discuss the benefits of abdominal massage. There will also be door prizes and goodie bags (while supplies last).

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Understanding conflict EVENTS The nonprofit Whatcom Dispute Resolution Center is offering a six-hour Understanding MAY Conflict Workshop over two sessions from 1 p.m. to 4 p.m. on May 14 and May 16. MAY The interactive workshop is designed to develop participants’ awareness of their own approaches to

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conflict, and to increase their skills and capacity to better manage conflict as it arises at home, in the community and at work. The workshop costs $75 and pre-registration is required. Classes will be held at the Whatcom Dispute Resolution Center, located at 13 Prospect St., Suite 201, Bellingham. For more information, call 360-676-0122 or visit www.whatcomdrc.org.

Habitat’s Annual Auction Habitat for Humanity’s Annual Raise the Roof Auction debuts casual, mid-week format. Habitat for MAY Humanity in Whatcom County’s 2013 Raise the Roof Auction will be held at 5:30 p.m. on Thursday, May 16, at the Hotel Bellwether in Bellingham. The auction is the primary fundraising event for the local low-income housing ministry. This year, instead of a sit-down banquet, the auction will be a casual, after-work event with cocktails, appetizers and desserts. Silent and live auctions will offer a wide variety of local and regional items, services, dining and lodging. Some highlights include: A weekend Porsche rental from Roger Jobs Motors, a week’s stay in Whistler,

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British Columbia, private party space for 40 at Fireside Martini & Wine Bar and more. The event will also include a raffle, prizes and competitions. Tickets are $50 per person, and can be purchased at Habitat for Humanity in Whatcom County’s website: www. hfhwhatcom.org, by calling Habitat’s office at 360-715-9170 or by visiting the Habitat for Humanity Store at 1385 Admiral Place in Ferndale.

Disaster recovery in the “cloud” The nonprofit Technology Alliance Group for Northwest Washington hosts Chris of MAY FitzGerald FiberCloud to discuss ways business owners can quickly recover from an unexpected power outage, IT hardware malfunction, a network failure and problems. He will also talk about ways use “Colocation” and cloud solutions to protect mission-critical data and ensure business continuity. The event is scheduled from 11:30 a.m. to 1:15 p.m. on Friday, May 17, at NorthWood Hall in Bellingham, 3240 Northwest Ave. Registration costs $15 for TAG members, and $25 for nonmembers. More information is online

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May 2013

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Who’s news in Bellingham & Whatcom business Peoples Bank announces new president, top-level changes Peoples Bank in Lynden has announced a series of top-level personnel changes, including the appointment of its chief operating officer, Russ Lee, to bank president. Bank CEO Charles LeCocq, who has been the company’s president since 1987, has been promoted to chairman of its board of directors. LeCocq will continue as CEO at Peoples Bank. In addition to his new position of president, Lee will also continue as the bank’s chief operating officer, according to a company announcement. The bank also announced that Irwin LeCocq, Jr., Charles LeCocq’s father, who has served as Peoples Bank’s board chair, will now serve as vice chairman of the board and chairman emeritus. Peoples Bank reports more than $1.24 billion in assets. The bank operates 23 branches and three loan production offices in seven counties. It employs 398 people, is the tenth largest bank headquartered in Washington state.

Feder joins Mount Baker Theatre as development director Larry Feder has joined the staff of the Mount Baker Theatre as its development director. Feder has more than 25 years of fundraising and development experience, as well as a background in theater. He has worked with major organizations around the country, including City of Hope Larry Feder National Medical Center, and 12 years as vice president with Fred Hutchinson Cancer Center in Seattle.

McCormack joins Lakeway Inn as director of outlets Bill McCormack has been appointed as director of outlets at the Best Western PLUS Lakeway Inn & Conference Center in Bellingham McCormack, who has more than 30 years of experience in the hospitality industry, is overseeing all operational aspects of the newly renovated Poppe’s 360 Neighborhood Pub and The Oboe Café. McCormack, a lifelong Bellingham resident, has so far introduced a new breakfast menu in the cafe, as well as new menu and happy-hour prices that are competitive for the local market.

Surmi joins ACME Farms + Kitchen as culinary director ACME Farms + Kitchen in downtown Bellingham has hired Travis Surmi as its new culinary director. With Surmi joining the company, ACME plans to begin offering new “Sunday suppers,” boxed lunches and catering services. Surmi was one of the founders of the now-closed Cheese Meat(s) Beer restaurant. He attended Le Cordon Bleu College of Culinary Arts in Portland, Ore. “I am very excited for the opportunity to

work with ACME Farms + Kitchen,” Surmi said. “I find my inspiration through all the different local and seasonal products available and being able to tell a story with my food.”

WWU picks new dean for Fairhaven College John “Jack” Herring has been appointed to serve as dean of Fairhaven College of Interdisciplinary Studies at Western Washington University, according to an announcement from the school’s provost, Catherine Riordan. Herring, now dean for the campus-based undergraduate program at Prescott College in Prescott, Ariz., will begin at WWU in August. Herring was selected following a national search and will succeed Fairhaven College Dean Roger Gilman, who is retiring. Jack Herring As dean at Prescott College, Herring supervises more than 60 faculty and staff and is responsible for delivery of 300 courses a year, enrollment projections, research and planning. He has been at Prescott College since 1998, where he has served as a faculty member in the Environmental Studies Program, and as an associate dean and dean in the Resident Degree Program. Prior to that, he was a research associate in the Department of Meteorology at the University of Maryland, a Congressional Science Fellow and Legislative Aide in the U.S. House of Representatives, a post-doctoral research associate at the University of Alaska Fairbanks Geophysical Institute, and an environmental chemist for the Alaska Department of Environmental Conservation. His scholarly background is in the area of atmospheric chemistry. He has a doctorate in atmospheric sciences from the University of Washington.

Arlynn promoted at Chrysalis Inn and Spa

Daysha Arlynn

The Chrysalis Inn and Spa has appointed Daysha Arlynn as its new lead esthetician. Arlynn will now oversee the spa’s esthetics department. She has worked as an esthetician for eight years, and has spent the past four at the Chrysalis.

Johnson-Cicchitti, a resident of Whatcom County for 38 years, specializes in residential, commercial and new construction. Prior to earning her real-estate license, Cicchitti manChristine aged the U.S. Bank in Johnson-Cicchitti Edmonds, Wash., where she practiced sales on a daily basis. Once licensed in 2005, Cicchitti spent seven years as an associate broker before joining RE/MAX Whatcom County. Cicchitti currently serves as secretary/treaJosh Feyen surer on the Whatcom County Association of Realtors’ Board of Directors, has earned the Internet Marketing Specialist Designation and is e-Pro certified through the National Association of Realtors.

Heather Gabbard has been promoted to manager of the processing department at Whatcom County’s Neighborhood Mortgage. Gabbard has been in the lending industry for more than 15 years, and has been a member of the Neighborhood Mortgage team since July 2005. Neighborhood Mortgage is a locally owned and operated, full-service mortgage broker based in Bellingham.

Local lean-management professional earns prize for book Chris Ortiz, president of Kaizen Assembly in Bellingham, has earned the Shingo Prize Research and Professional Publication Award for his book, “The Psychology of Lean Improvements: Why Organizations Must Overcome Resistance and Change Culture.”

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Ski to Sea Weekend The next annual installment of the popular Sea to Ski race kicks off with a block at 5 p.m. MAY party on Friday, May 24, at Boundary Bay Brewery on Railroad

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BBJToday.com Avenue in downtown Bellingham. The event will include live music, a beer garden and Boundary Bay Brewery food. The 93rd annual Ski to Sea Grand Parade will be held from 10 a.m. to 4 p.m. on Saturday, May 25. The parade route begins at Cornwall Avenue and Alabama Street and ends at York and State streets. The race itself begins

in the early morning of Sunday, May 26, on the slopes of Mount Baker. The seven-leg, 93.5 mile relay race will take competitors of the mountain, through Whatcom County and to the finish at Marine Park in Bellingham’s Fairhaven District. More information is online at www.skitosea.com.

Historic Fairhaven Festival

The 2013 Historic Fairhaven Festival will be held Sunday, May 26. The all-day, multiparty MAY street will feature live music on two stages, food, arts and crafts vendors, as well as special exhibits.

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May 2013 The Historic Beer Garden located at 11th Street and McKenzie Avenue opens at noon. Tickets are $4. More information on the event can be found at www.facebook.com/ historicfairhavenfestivals or www.fairhaven.com. The festival is produced by the Historic Fairhaven Association.

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JOBLESS RATE GETS BELOW 8 PERCENT IN WHATCOM Construction sector sees major job changes; economist cites volatilty of the building industry By Evan Marczynski evan@bbjtoday.com

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hatcom County’s jobless rate has dropped below 8 percent for the first time in 2013, as the Washington State Employment Security Department’s initial jobless estimate for March put local unemployment at 7.9 percent. That is down from a revised rate of 8.4 percent in February of this year, and also down from an 8.1 percent jobless estimate from March 2012. The number of people with jobs in Whatcom County increased by more 2,500 between February and March of this year. No industry sectors showed job losses in those month-tomonth figures.

“If we take a longer view and look at the trends, it really is a positive and upward trend.” —Anneliese VanceSherman, regional labor economist

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But between March 2012 and March 2013, the county lost about 1,700 jobs overall, according to Employment Security Department estimates. The county’s total labor force also shrunk by more than 2,100 between March 2012 and March 2013. While job losses look concerning on paper, Anneliese Vance-Sherman, a regional labor economist, said the drop between March 2012 and March 2013 seems so far off recent trends that she expects a different picture to emerge as estimates are revised. Vance-Sherman said that over the past two years, Whatcom County has shown consistent job

JOBS | Page 7


May 2013

PEOPLE | FROM 3 The Shingo prize recognizes and promotes research and writing regarding new knowledge and understanding of lean and operational excellence. It is among the highest honors in research and professional in the lean-management field. Ortiz is one of the youngest winners of the Shingo prize. He has been practicing and teaching lean-management principles for 15 years.

Launching Success hires new community relations team Launching Success Learning Store has hired three new community relations directors—Jodi Boon, Amy Blackwood and Sherri Willand—to focus on sharing the store’s educational materials, toys, games and other services with local schools, businesses, organizations and consumers. Boon earned her bachelor’s in elementary education from Western Washington University and taught kindergarten and

first grade for eight years. Blackwood has been a writer and editor for more than 15 years. She has extensive experience in community relations and public relations, including three years as a communications specialist at a school district in St. Louis, Mo. Willand brings six years of volunteer experience with school districts and parent-teacher organizations, including serving as volunteer coordinator for Ferndale Holiday Giving Store.

Fairhaven Veterinary Hospital manager earns industry certification Michael Bellis, manager of the Fairhaven Veterinary Hospital, has earned the Certified Veterinary Practice Manager distinction from the Veterinary Hospital Managers Association. The certification is VHMA’s highest professional distinction. Bellis has managed multiple veterinary hospitals over 16 years in the industry. He is also a licensed

Chamber president Ken Oplinger to step down after accepting similar position in California Ken Oplinger, who has served as president and CEO of the Bellingham/ Whatcom Chamber of Commerce & Industry since October 2003, has announced he plans to leave the organization at the end of May to take over as the president and CEO of the Santa Barbara Region Chamber of Commerce in Santa Barbara, Calif. Oplinger’s final day will be May 29, which will allow him to lead the Chamber thorough the upcoming Blossomtime Grand Parade, the Junior Ski to Sea Race and the Junior Ski to Sea Parade. In addition to his role at the Chamber, Oplinger has also served for six years on the Planning Commission in Blaine, and was elected to the Blaine City Council in 2011. Oplinger will continue to host his Sunday morning KGMI radio show, “The Whatcom Report,” until his departure. The Chamber and KGMI are in discussions over the future of the show. In an annoucement of his departure, the Chamber highlighted Oplinger’s contributions to the organization, including his role in the creation of new events such as the Annual Awards Banquet and the Spring Business Showcase. During his time at the helm of the Chamber, Oplinger has supported a variety of initiatives to bolster crossborder commerce between Whatcom County and British Columbia. In the past couple of years, he has also been among the local advocates who

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BBJToday.com veterinary technician and graduate of the Pennsylvania State University. The Fairhaven Veterinary Hospital has served the Bellingham since 1979. The hospital currently employs five doctors and 12 support staff members.

construction and “Built Green” properties in Whatcom and Skagit counties. In addition to its office in Bellingham, it has an additional location in Ferndale.

Bobbie Martin has been hired as a new licensed agent by Beacon Insurance Group of Lynden, an independent agency offering auto, home, farm, commercial and business insurance. Martin, who has 12 years of business experience in Lynden, recently completed insurance training and passed a state examination.

ingham-based network management firm. As network administrator, Foley’s responsibilities will include providing clients with remote and on-site network assistance and will eventually evolve into providing project management and emergency network problem resolution services. Foley graduated from Bellingham Technical College with a degree in computer network technology. His certifications include CompTIA A+, Security+, Network+. He is also a Microsoft Certified Professional.

Foley hired at 3D Corp. in Martin hired at Beacon Insurance Bellingham Randy Foley has joined the network Group in Lynden administration team at 3D Corp., a Bell-

Striker, Brown join Sterling Real Estate Group Sterling Real Estate Group has hired Karen Striker and Dan Brown to its Bellingham office. Sterling Real Estate Group specializes in residential, commercial, new

Send hiring annoucements to editor@bbjtoday.com

Fairhaven 360-714-5080 Barkley 360-714-5080

The right mortgage, right here. favor the proposed Gateway Pacific Terminal at Cherry Point. The Chamber has not yet indicated if plans are in place to find a successor as president and CEO. “We have a great staff to carry on the important work of the Chamber as Ken moves to his new position,” said Peter Cutbill of Whidbey Island Bank, the treasurer of the Chamber’s board. ”Our board will develop a transition plan in the next few weeks to make sure our programs and events go on as planned. We want to express our appreciation for all that Ken has done over these many years and know that he will bring great benefit to his new community.”

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A NOTE TO OUR READERS REGARDING SOLICITATIONS Our staff has learned that a company, called American Registry, is apparently contacting local firms listed in the 2013 edition of our Book of Lists and trying to sell them expensive wall plaques under the impression they have won a special award or recognition from The Bellingham Business Journal. The Bellingham Business Journal is in no way connected to this company. We will not solicit you in order to sell you a plaque. Please contact our office at 360-647-8805 if you have additional concerns.

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May 2013

RECESSION PROOF

Brisk business helping salon and spa industry at a time when other services struggle By Evan Marczynski evan@bbjtoday.com With growth that has outpaced other sectors in the American economy, the salon and spa industry can be a strong lure for entrepreneurs seeking new ventures. But licensed intradermal cosmetic technician Heather Gauf-Perrin, who in January opened Bella Body & Sol, a tanning salon and spa on Harris Avenue in Fairhaven, said it’s the connections made with clients that truly matter for those in the business. “I love how rewarding it is,” Gauf-Perrin said. “People really appreciate what you do.” Even as the economic recession has forced many people to tighten their budgets and cut back on all but the bare essentials, the nearly $40 billion salon and spa industry has maintained steady growth over the past decade. Gauf-Perrin offers an array of services in her 1,100-square-foot shop, including tanning, massage, facials, permanent makeup, eyelash extensions and waxing. Bella Body & Sol also carries a variety of natural, organic cosmetic and body products. A health-centered approach to beauty care is among the more unique aspects to her business, Gauf-Perrin said. Along with that, she emphasizes custom services for clients. Bella Body & Sol is staffed mainly by independent contractors who provide beauty and personal-appearance services. The contractors pay rent to Gauf-Perrin for the facility and for access to products needed to offer their own specialties.

Professional Beauty Association and the National Cosmetology Association. Salons and spas with paid employees have also seen growth, though on a smaller scale. They’ve increased 15 percent over the past decade, with sales rising 47 percent. Job growth in the sector has also outpaced overall employment growth in the U.S. economy, and salon and spa industry experts project that trend will continue. Since 2000, the sector has increased its total employment by more than 18 percent, adding nearly 75,000 new jobs, according to the federal Bureau of Labor Statistics. Brad Masterson, communications manager for the Professional Beauty Association, which is based in Scottsdale, Ariz., said salons and spas are able to maintain strong business due to a loyal customer base and the fact that they provide a service that customers see as necessary in their lives. Even when money is tight, people still want to get their hair styled or receive other beauty services, Masterson said. This is particularly true when more people are out looking for work and need to maintain their personal appearance for job interviews, he added. “The salon business is relatively recession-proof,” Masterson said. Focusing on the retail side of the salon and spa business, by offering products along with services, will help owners retain customers and grow their shops, Masterson said. For Gauf-Perrin, business at Bella Body & Sol will rely heavily on her tanning services.

Loyal customers bring sales

Scrutiny on indoor tanning

Independant contractors, those who operate on their own without paid employees, have enjoyed the strongest gains in the salon and spa business in the past 10 years. The number of salon and spa establishments run by independent contractors has increased 78 percent in the past decade, and their sales have increased 99 percent, according to recent figures compiled by the

Controversy, along with increased taxes and regulation, has hurt revenue in the U.S. tanning industry in recent years. But indoor-tanning businesses are estimated to generate nearly $5 billion in annual revenue. The industry could enjoy slightly sunnier times in the future. The research firm IBISWorld reports indoor-tanning will see

Sam Malich of Chazzzam Signs & Graphics installs window graphics on the front window of Bella Body & Sol tanning salon and spa in January 2013. The business is located in Fairhaven’s Harris Square at 960 Harris Ave., Suite 104B. (Right) One of the massage rooms at the Bella Body & Sol tanning salon and spa. EVAN MARCZYNSKI PHOTOS | THE BELLINGHAM BUSINESS JOURNAL

a 1 percent annual revenue increase over the next five years. Indoor tanning’s success depends largely on its customers’ disposable income, and market analsyts expect sales to pick up as the national unemployment rate continues its slow decline. Gauf-Perrin said she believes the industry will be healthy in the future. “People think tanning salons are going out, but even with the negativity forming around the tanning industry, it is still growing,” she said. That negativity centers on concerns from health experts who say the regular use of tanning beds can greatly increase the risk of skin cancer, including melanoma. The American Academy of Dermatology Association supports an outright ban on the production and sale of indoor tanning equipment for commercial and cosmetic purposes. Other anti-tanning groups push for stricter government regulation of the industry. In the U.S., 33 states have some

form restriction on tanning-bed use, according to information compiled by the National Conference of State Legislatures. The laws vary. States either require users to be 16 years old—some set the age limit at 18—or they require parent permission for younger users. Washington does not currently enforce such an age limit, although within the past few years several state lawmakers have introduced bills to prohibit teen tanning. Gauf-Perrin doesn’t deny some of the dangers associated with tanning. But she said at Bella Body & Sol, practitioners try to minimize risks by closely controlling their tanning sessions. That includes setting a 10-minute maximum tanning time limit for clients—GaufPerrin said most people probably only need 6-7 minutes—and also customizing the length of sessions based on clients’ skin types. Gauf-Perrin said with a little control and common sense, the risk of skin cancer can be minimized.

Bellingham out front in Q1 home sales; county’s overall market mixed Bellingham’s gains in first-quarter home sales and prices outpaced those seen across Whatcom County as a whole, while market activity in several smaller communities slowed. First-quarter home sales in Bellingham rose 21.4 percent to 176 from last year, and the median price of sales rose 8.2 percent to $272,636, according to data from realestate agent Lylene Johnson of The Muljat Group. While sales were mixed in the county’s small cities and rural areas, the entire county still experienced increases of 8.5 percent in homes sold (410) and 7.5 percent in median price ($246,750). in comparison to 2012.

An improving economy and low interest rates were factors in the higher number of sales, Johnson said, while sales at higher price points and a declining number of houses for sale were contributing to higher median prices. Johnson noted that Bellingham had 516 homes for sale in mid-March 2010, but only 295 for sale in the same week this year. “While inventory should increase somewhat as prices strengthen, there are still many homeowners who cannot afford to sell due to their debt level, so those homes won’t come into the inventory pool,” Johnson said. “The number of short sales and bank-owned properties has been declining. While we are seeing more new construc-

tion, spec construction financing for builders is still tight and tends to limit the number of small builders who can contribute to the new home inventory.” Despite low interest rates, Johnson said buyers still may experience difficulty in getting bank loans. Lenders are requiring more documentation than ever, and low appraisals are a real concern, she said. Johnson also said that sellers must be realistic and buyers should be prepared if they are entering Whatcom County’s housing market. “Owners must realize that the houses that sell are the ones that look the best, smell the best, are in the best locations and are priced to beat the competition,” she

said. “Buyers must do their homework so they can quickly act when they find the best house. Have your financing set up before you even start to look; sellers with choices don’t take offers from unqualified buyers. Face the fact that if it is the best house in the market, you will probably need to pay full price or very close to it.” Johnson analyzed data from the Northwest Multiple Listing Service to calculate comprehensive statistics for local communities. View comprehensive statistics for Whatcom County communities online at: pnw. cc/kzy7C. —BBJ Staff Reports


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Gateway terminal scoping officials release comment summary By Evan Marczynski evan@bbjtoday.com The co-lead agencies tasked to prepare an environmental impact statement for the proposed Gateway Pacific Terminal at Cherry Point have issued a summary of close to 125,000 public comments gathered regarding the scope of impacts to be studied. Whatcom County, the Washington Department of Ecology and the U.S. Army Corps of Engineers collected comments online and in a series of public meetings during the 121-day scoping pro-

cess between last September and January. In a nearly 140-page report, the agencies have split their summary into sections covering the outcomes of the seven public meetings held around the region during the comment-gathering period, the comments themselves organized into 20 different areas of concern, comments collected from tribal and government agencies, as well as from interest groups or business groups, and comments covering possible alternative actions. The summary report and addi-

tional appendices can be viewed here: pnw.cc/kzooV. One important note to make is that the comments summarized in the report are portrayed as they were provided to the co-lead agencies, meaning they might not have yet been fully vetted for factual accuracy. Not all comments in the summary will actually be part of the final EIS. Gateway Pacific Terminal, proposed by Pacific International Terminals, a subsidiary of SSA Marine Inc. of Seattle., is expected to eventually be able to store and export up to 54 million tons of

dry bulk commodities annually, including coal, grain, iron ore, salts and aluminum. Coal will likely be its main commodity, and has been a driving source of controversy over the terminal’s construction. After considering the comments, the co-lead agencies will decide what should be studied. The EIS is expected to evaluate alternatives to the terminal’s construction proposal, potentially affected resources, possible adverse impacts of various alternatives, as well as potential means to avoid, minimize and mitigate

WATERFRONT | Cost of toxic mercury cleanup rising

A cleanup crew with the Washington Department of Ecology uses a small, specialized vacuum to suck up large beads of mercury found underground on Bellingham’s central waterfront. Most of the toxic-tainted soil is actually sucked up with a high-powered vacuum truck. Originally, the project was expected to cost approximately $1.8 million. The Port of Bellingham is now estimating it might cost up to $3.2 million, because of the increased digging and mercury treatment. The work should be completed by summer. PHOTO COURTESY OF THE WASHINGTON DEPARTMENT OF ECOLOGY

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Initial job losses from 2012 likely to be revised downward growth when numbers from each month are compared with the previous year. “If we take a longer view and look at the trends, it really is a positive and upward trend,” Vance-Sherman said.

The county’s construction sector, which the Employment Security Department combines with mining and logging industries in its regular reports, is showing notable variation in employment, according to the March figures. While the industry gained an estimated 400 jobs in March compared to the previous month, which puts its current job-count estimate at around 5,500, state economists believe Whatcom’s construction field has shed more than 15 percent of the workforce it supported one year ago. Yet Vance-Sherman said that

since construction work is heavily seasonal and contract-based, the industry’s volatility can make it difficult to establish definite employment trends. Around northwest Washington, San Juan County had the lowest initial unemployment estimate in March, at 7.5 percent. Island County posted 8.3 percent, and Skagit County had a 9.3 percent jobless rate. King County, the state’s population center, continues to hold Washington’s lowest unemployment rate, at 5.1 percent, followed by Snohomish County at 5.7

percent. Ferry County in the northeastern part of the state had the highest unemployment estimate at 14.2 percent. The total jobless estimate in March for all of Washington, 7.3 percent, was at its lowest level since December 2008, according to the Employment Security Department. Since statewide estimates are adjusted to account for seasonal factors, economists say they should not be directly compared to county-level estimates, which are not adjusted due to their smaller sample sizes.

effects of the proposals, according to a press release from the co-lead agencies. The “scoping” process will not address whether the terminal should receive various permits needed for construction. Those decisions will be made by a number of different government agencies, including the Whatcom County Council, after the EIS has been completed, which is expected to take at least one year. The co-lead agencies will seek another round of public comments once a draft of the EIS has been completed.

Hosting NCAA tourney games fed $1M to local economy, WWU officials say When Western Washington University hosted two simultaneous college basketball tournaments from the NCAA Division II West Regional, the events provided an estimated $1 million boost to Bellingham’s economy, according to university athletic officials and the local tourism board. WWU hosted games for both the men’s and women’s tournaments at the school’s Carver Gym. More than 11,000 people packed the facility for the events, including fans from opponent schools such as Chaminade (Honolulu, Hawaii) and Grand Canyon University (Phoenix, Ariz.). The tournaments brought nearly 250 coaches and athletes to Bellingham, along with an estimated 2,000 to 3,000 fans and supporters. The $1 million estimate came from tallying the estimated number of visitors over the course of the tournaments, and then factoring a per-diem eating and dining expense for each of those visitors. It did not, however, factor in the potential additional boost to local retail businesses, meaning the final impact is likely greater. “I can’t remember any Division II school hosting both men’s and women’s regionals the way we did, but it was a testament to not only the teams and coaches, but our staff and the city of Bellingham as well,” Western Washington University Athletic Director Lynda Goodrich said. Both the men’s and women’s team advanced into the Elite Eight bracket in the Division II tournament, the men reaching the national semifinals. The women’s team reached No. 5 in the NCAA national rankings by the end of its season. —BBJ Staff Reports


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HOTEL PLAN MOVES FORWARD Mount Vernon-based developer proposes 156-room Holiday Inn within walking distance of airport terminal. Port Commission to vote on final lease approval in June. By Evan Marczynski evan@bbjtoday.com

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ellingham already has several hotels with quality rooms and conference facilities, but the developer selected to build a new Holiday Inn next door to the Bellingham International Airport thinks there is room for more. “There is still a need and I think that need will be met within this facility,” Dan Mitzel, chairman and managing member of Hotel Services Group LLC, a Mount Vernon-based company, said. “I think that the bar is being raised in the quality of rooms in the Bellingham market, and we want to raise it even further.” The Holiday Inn proposal is moving ahead after the Port of Bellingham Commission voted, 2-1, in early April to approve a preliminary letter of intent from the project’s developer. Hotel Services Group plans to build the hotel on about 3.77 acres of port-owned property on Mitchell Way, just south of the Pacific Cataract Laser Institute and across the street from the airport’s commercial terminal. The 156-room hotel will include a full restaurant with its own separate entrance, an indoor pool, underground and surface parking, as well as about 7,000 square feet of conference rooms and

meeting space, which will range from smaller board rooms up to a full-scale ballroom capable of hosting larger events, Mitzel said. The construction cost will be about $18.5 million. Once operational, the hotel and connected restaurant could employ up to 100 people, according to Shirley McFearin, the port’s real estate director. Commissioner Michael McAuley cast the dissenting vote on the proposal’s approval. McAuley said he supported the hotel development, but just not at the site that was chosen as its future location. He said he would prefer to leave the currently vacant land on the east side of Mitchell Way empty to serve A preliminary conceptual design of the proposed Holiday Inn at the Bellingham International as a “visual buffer” between the airport Airport. Final design parameters must be approved by the Port of Bellingham Commission and the freeway, in part to help minimize before construction begins. ARTWORK BY RICK MULLEN | COURTESY OF THE PORT OF BELLINGHAM negative impacts of the airport’s recent growth that has been reported by some resMitzel said. tourism. idents who live in nearby neighborhoods. Both Ken Oplinger, president of the Bell“The airport is a very strong economic Yet the location was a deciding factor ingham/Whatcom Chamber of Commerce engine for the community,” Oplinger said. for Hotel Services Group, Mitzel said. The and Industry, and Loni Rahm, president “I think this is another great piece to that.” property will allow hotel guests to walk and CEO of Bellingham Whatcom County Now that the letter of intent has been directly to the airport’s terminal instead Tourism, spoke during the public comapproved, the port and Hotel Services of having to take a shuttle, as is the case ment portion of the April 2 meeting and Group will determine the final leasing with many other airport-adjacent hotels, urged the port commission to approve the terms for the development. The port comhe added. plan, saying the Holiday Inn would bring The site also allows for good visibility tremendous benefits to local business and from southbound traffic on Interstate 5, HOTEL | Page 9

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May 2013

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If approved, $18.5 million development could be completed by fall 2015 mission is expected to vote on a final agreement in early June. The port has been in search of a hotel developer for the Mitchell Way site since last fall. After sending out a “request for qualifications and vision,” the agency said it received four written proposals from national-brand affiliated hotels. In addition to the proposal from Hotel Services Group, Shirley McFearin said proposals were also submitted by Erck Hotels Corp. of Missoula, Montana, for a Hilton Garden Inn, a local developer represented by Dave Ebenal for a Cambria Suites hotel, and a company called Architecturally Distinct Solutions of Kelowna, British Columbia, for a Wyndham-brand Wingate Hotel. A selection team reviewed the four proposals and interviewed the respondents before selecting Hotel Services Group, which currently operates eight nationalbrand hotels in western Washington, including InterContinental Hotels Group, Hilton and Best Western. Port Commission President Jim Jorgensen supported the proposed location for the planned Holiday Inn. “I’m excited about the location along the freeway,” Jorgensen said. I think it’s good exposure for the airport and the hotel.” Commissioner Scott Walker said he thought that Hotel Services Group’s plan to include underground parking in its development set it apart from the other proposals.

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BBJToday.com Mitzel said the new Holiday Inn will likely include some type of “stay-and-park” service, where hotel guests can park their cars for extended stays prior to flying out of the airport. Al Reingold, the corporate director of brand management for Holiday Inn Brands, said the high volume of leisure passengers at the Bellingham International Airport makes the site a prime location for a Holiday Inn. Reingold added that he expects the new hotel will have a high volume of Canadian guests. The significant increase in passenger levels at the Bellingham airport since 2004 has been fueled largely by Canadians. Ed Shaw, a regional director for InterContinental Hotels Group, said his company has wanted to build a Holiday Inn in Bellingham for several years. Bellingham already has a Holiday Inn Express, one of 11 brands InterContinental manages, currently located on Meridian Street. He added that among the company’s various markets, hotels adjacent to airports consistently outperform those in other locations. As the hotel development plan moves forward, a $38 million renovation and expansion on the commercial terminal at the Bellingham International Airport continues. An expanded baggage claim area and a new baggage carrousel are expected to open before summer begins. Hotel Services Group will be responsible for completing all improvements at the hotel site, including surface and sub-surface parking, at its own expense. Construction at the site would start by May 2014 and improvements would need to be completed within 18 months, according to the agreement. The agreement also states that the hotel’s final design must be approved by the port prior to any construction.

An Allegiant Air jet at the Bellingham International Airport in April 2012. The airline is restarting direct flights between Reno and Bellingham. EVAN MARCZYNSKI PHOTO | THE BELLINGHAM BUSINESS JOURNAL

Bellingham-Reno flights returning Allegiant Air has announced plans to reintroduce nonstop service between Bellingham and Reno, beginning June 6. The new flights, between Bellingham International Airport and Reno-Tahoe International Airport, will operate twice weekly, according to the airline. Introductory one-way fares are expected to start at $69.99. “We are pleased to bring another affordable and convenient travel option to the residents of Bellingham,” said Andrew C. Levy, president of Allegiant Travel Com-

pany, the owner of Allegiant Air. “We are confident the Bellingham community will appreciate the convenience of flying nonstop to Reno-Tahoe and the value of bundling their air, hotel and car rental reservation together.” The airline has previously offered twice weekly Bellingham-Reno flights, but dropped the route in April 2009. More information on flight times and reservations can be found online at www.allegiant. com. —BBJ Staff Reports

Scotty Browns Restaurant expands in Bellingham airport terminal Canadian restaurant brand has seen success at airport since opening in 2012 Scotty Browns Airport Restaurant, which opened last year in the Bellingham International Airport, plans to add 526 square feet to the restaurant itself and another 576 square feet at the airport for office and storage space. The Port of Bellingham’s Board of Commissioners recently approved the restaurant’s lease modification. “We are expanding due to the enormous success of the restaurant in the terminal,” said Scotty Browns Manager Jason Cooper. “The airport has been a great addition to our restaurant brand, and has been well received by the Canadian public due to our association with Browns Restaurant Group.” The restaurant is located in the secure waiting area of the airport’s terminal. The restaurant expansion is expected to be completed by the end of April. With the expansion, Scotty Browns will occupy nearly 2,000 square feet in the airport, not including the new office and

storage area. It currently seats about 80 people, but will be able to seat more after the expansion. Scotty Browns employs about 30 workers and spent more than $1 million in building its facilities. Because restaurant expansion construction is occurring behind a new wall in the terminal, customers will not see the new space until it is complete, and construction will not impact daily operations, Cooper said. The airport is currently undergoing a $38 million terminal expansion, which includes work to add additional restaurant space. Scotty Browns also has a location in Bellingham’s Barkley Village, which opened in 2009. The Vancouver, British Columbia-based Browns Restaurant Group, which operates Scotty Browns, runs 14 restaurants in Canada, as well as the locations in Bellingham. —BBJ Staff Reports

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The latest business briefs, tips and leads Sargento Foods will begin Bellingham layoffs in May Sargento Foods Inc. plans to begin layoffs on May 3 for at least 34 employees at its soon-to-close facility on Bellingham’s waterfront, according to a notice filed with the Washington State Employment Security Department. The company announced the closure of its 65,000-square-foot Bellingham facility late last month. Operations at the facility are expected to end within the next 9-16 months, and a final closing date should be announced later this spring, according to Sargento. Ultimately, up to 54 local jobs are expected to be lost through the closure. Sargento has said the decision to close the facility was due to several factors, one being the Bellingham plant’s primary customer not renewing its contract with

Sargento, which expires at the end of the year. The company said it has developed a transition and training program to help its employees find other work in the Bellingham area. Sargento was founded in 1953. Its headquarters are in Plymouth, Wis. The food producer is best known for its line of packaged cheeses.

Recent WWU grads having more luck finding first jobs The job market for recent Western Washington University graduates is improving, according to the school’s annual employment-survey report, the latest version of which was recently released by WWU’s Career Services Center. Eighty percent of bachelor’s degree recipients from the WWU class of 20112012 reported finding jobs within six

months of graduation, compared with 75 percent from the previous year. Field-related employment increased from 47 percent to 51 percent. Average starting salaries for recent WWU graduates jumped 17 percent to $38,741, in the latest survey. Top employers of recent WWU bachelor’s degree graduates include: Boeing, Amazon, Microsoft, AmeriCorps, Nordstrom, Target, Costco, Ernst and Young, Starbucks and the Bellingham School District. The value of internship experience was again supported by this year’s survey results. Graduates with internship experience were 23 percent more likely to be employed within their field of study, were 7 percent more likely to have a job within three months of graduation, and had a 5 percent higher starting salary, according to the report.

St. John Glass purchased by longtime employee St. John Glass in Bellingham has been bought by sales manager Newton Bouma, who has been with the company since 2003. The business, which is located at 804 Dupont St., offers residential glass and window replacement, custom glass design, auto glass replacement and rock-chip repair, along with other services. It has been locally owned and operated since 1945. Bouma purchased St. John Glass in February, according to a press release, after the company’s former owner chose to retire.

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A local version of the popular TED conference will be held in Bellingham on Nov. 12. TEDxBellingham’s inaugural event, titled “Here by Choice,” will be held from 10 a.m. to 5 p.m. at a yet-to-be-determined location. Event organizer David Wiggs is currently seeking sponsors, speakers, performers and volunteers. Ticket information for the invitation-only event will soon be announced. Wiggs said he is bringing the TEDx event to Bellingham to share with the world the local community’s version of “ideas worth spreading,” which is the slogan for the global TED conferences. “We are fortunate to live in a very special place, with incredibly talented people, and I look forward to seeing, hearing and feeling how each speaker interprets our “Here by Choice” theme,” Wiggs said. TED, which stands for technology, entertainment and design, was first held nearly three decades ago. The now-annual conference has been held each year in Long Beach, Calif., although organizers plan to celebrate the event’s 30th anniversary in 2014 by holding the conference in Vancouver, British Columbia. While TEDx events receive general guidance from the TED organization, a nonprofit group that organizes the annual TED conference and also awards the TED Prize, they are independently organized.

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The Firehall Cafe, located in the Jansen Art Center in Lynden, celebrated its grand opening during the first weekend of May. The Firehall Cafe specializes in gourmet breakfast sandwiches, grilled panini sandwiches, soups, salads, wraps and appetiz-

May 2013 ers, with vegetarian and gluten-free options available. Beverages include a full line of espresso drinks featuring Bellinghambased Tony’s Coffee, craft beers on tap from Bellingham’s Kulshan Brewery and a variety of Washington wines. “We’re emphasizing local products whenever possible, including berries from Enfield Farms of Lynden,” Sean Beanblossom, cafe manager, said. “We’re also the only restaurant in downtown Lynden with an outdoor deck that has views of Mount Baker, which people are enjoying as the weather improves.” Beanblossom, a lifelong Lynden resident, completed the culinary program at Edmonds Community College and has worked in various restaurants across the county. The Firehall Cafe, located at at 321 Front St., is open from 8 a.m. to 5 p.m. Mondays through Wednesdays, 8 a.m. to 8 p.m. Thursdays through Saturdays, and 11 a.m. to 5 p.m. on Sundays.

Local Data Doctors franchise spins off into new company A Bellingham-based Data Doctors computer service business has reached an agreement with the national franchise to become a new independently owned company under the name Ovation Technical Services. The company, which was previously known as MJK Services Inc., is located at 1019 Iowa St., and has been in business since 2006. It provides a full range of computer technology-related services for business and residential customers, including computer repair, networking, data backup and protection, security and monitoring. Under its agreement with Data Doctors Franchise Systems Inc., which is effective immediately, Ovation will be able to offer its services to customers in Whatcom and Skagit counties. “We are very pleased with this development. We are now in our seventh year of operation in Bellingham, and have established a solid reputation as a reliable provider of quality, affordable computer services—one of the largest in the region,” Mark Knittel, the company’s owner, said. “Over time our focus has shifted more toward business customers, and the majority of our growth has come from that area.” Ovation Technical Services can be reached at its new phone number: 360306-5261.

Ferndale biorefining firm earns $4.6 million federal grant A Ferndale company has been awarded a $4.6 million grant by the U.S. Department of Energy to develop an innovative pilotscale biorefinery that will test renewable biofuels as a domestic alternative to power cars, trucks and planes that meet military specifications for jet fuel. Mercurius Biorefining Inc. of Ferndale will build and operate a pilot plant that will convert cellulosic biomass, including materials such as wood chips, into biofuels. The Mercurius Biofuels plant is part of an $18 million investment by federal energy officials for four projects across the country that will demonstrate technologies to cost-effectively convert biomass into advanced drop-in biofuels and assist these organizations to scale up the processes to commercial levels. Karl Seck, the company’s president and CEO, told The Bellingham Herald that the biorefinery plant for the project will be

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built in Indiana, although the company’s headquarters will remain in Ferndale. Mercurius is joined by several partner organizations, including Purdue University, Pacific Northwest National Laboratory and Incitor. U.S. Energy Secretary Steven Chu said, in a statement, that advanced biofuels are a key component to the Obama Administration’s strategy to reduce American dependence on foreign oil, improve energy security and protect the nation’s air and water. “The innovative biorefinery projects announced [April 22] mark an important step toward producing fuels for our American military and the civil aviation industry from renewable resources found right here in the United States.” Chu said. Democratic U.S. Sen. Patty Murray of Washington state also praised the announcement in a press statement. “Creating a biofuels industry that will mean jobs for our state and energy independence for our nation requires us to bring innovators together, and this critical investment will continue that process,” Murray said.

State lawmakers target “zapper” tax-cheat software A new bill recently passed by both the state House and Senate will target retailers who use illegal “zapper” software to erase cash sales from cash registers, and the state Department of Revenue says the law will mean bad news for tax cheats. The House unanimously passed Senate Bill 5715, which makes it a class C felony to commit tax fraud using automated sales suppression software, commonly known as “zappers.” The Senate earlier unanimously passed the bill, which now goes to Gov. Jay Inslee for his signature. Under the legislation, persons convicted of selling, installing, or designing zappers will be subject to an additional mandatory fine that is the greater of either $10,000 or

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BBJToday.com the amount of tax that the retailer didn’t pay. It also gives the Department of Revenue the authority to revoke the business licenses of any business found using such devices and not reinstate a business unless it agrees to five years of electronic monitoring. Zapper use has spread across the country and Canada, according to revenue officials. The software alters cash transactions from electronic cash registers and point of sale systems so that the reduced sales can’t be tracked later using traditional audit methods. Businesses found to be using zapper software typically have been restaurants and other small businesses that are predominantly paid in cash. They collect sales tax from customers but keep it rather than remitting it to the state as required by law. Revenue Director Carol K. Nelson said this legislation raises the stakes for businesses that keep sales tax they collect from customers and understate their gross income so they pay less business and occupation tax. “Customers have the right to expect the sales tax they pay to be returned to them in the form of state and local services such as schools and law enforcement,” Nelson said. State Rep. Ed Orcutt, a Republican from Kalama, who was prime sponsor of a House version of the zapper legislation, said the zappers simply have no legitimate use. “They are used solely to defraud the state of Washington and the U.S. Government, and this bill will hold them accountable and help deter this illegal activity” Orcutt said, in a statement. “In doing so, we’re making sure the businesses that are collecting sales tax from customers are remitting that to the state, and that in turn protects taxpayers.” Thirteen other states have passed legislation targeted at sales suppression software.

Timeline released for legal pot sales’ implementation The Washington State Liquor Control

New and improved milk powder dryer in Lynden expect to boost business for dairy farmers The Darigold processing plant in Lynden completed installation of its new milk powder dryer, after a fire in February 2012 damaged the old one. The new dryer measures 22 feet in diameter and is 108 feet tall, and is enclosed by concrete walls and insulated metal panels that measure up to 130 feet. It will be able to produce 16,800 pounds of powder per hour, approximately 6 percent more powder annually than the dryer it replaced. It will also not only be able to produce condensed milk powders, such as non-fat dry milk powder and skim milk powder, but will be also be able to produce whole milk powder for domestic and export markets. The added capacity an output of the new dryer is expected to boost business for local and regional dairy farmers. “We will now begin the process of initial start-up runs through the new dryer,” Jim Wegner, Darigold’s president and CEO. “During this process, we will be fine tuning Board has released its timeline for implementing Initiative 502, the ballot measure passed last year that legalizes recreational use of marijuana and allows licensed stores to sell pot to adults 21 years or older. Directors with the agency said they are on track to have rules regarding I-502

the equipment and completing our employee training. As a dairy cooperative focused on its members and providing high quality dairy products for our consumers, we at Darigold are thrilled to bring this much needed capacity back online, continuing to create a secure market for our owners’ milk.” written by a Dec. 1 deadline, which is mandated by the new law. Liquor board spokesperson Brain Smith told The Associated Press that the agency plans to issue licenses for marijuana grow-

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May 2013

Questions & Answers

CORRINNE SANDE

Computer Information Systems program coordinator at Whatcom Community College By Evan Marczynski evan@bbjtoday.com

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igh-profile cyber attacks, including recent ones that have targeted Google, allegedly destroyed nuclear centrifuges in Iran and brought down the websites of major financial firms JP Morgan Chase and American Express, have led more people to realize what security experts have been saying for years: In the digital era, cyberspace is a battlefield. Attackers’ impact on the companies and governments targeted can be costly, many times involving the loss of sensitive intellectual property. Few people likely understand the stakes better than Corrinne Sande, coordinator for the Computer Information Systems program at Whatcom Community College in Bellingham. Since joining the college in 1999, Sande has built the school’s CIS program in one that regularly earns national recognition and has expanded its educational offerings. In August 2012, WCC was given a $500,000 grant from the National Science Foundation to help develop a new two-year “information assurance” degree, with Western Washington University and the University of Washington developing similar four-

year degrees in tandem. Sande said the CIS program is a vital component in training future professionals to secure sensitive information in cyberspace. There is an increased demand for IT security professionals in a variety of industries. What do think is causing that? Since everything is now connected and there’s a lot more commerce done on Corrinne Sande demostrates some of the training gear her students use in class, including this rolling tower the Internet, there’s more of computer network switches. EVAN MARCZYNSKI PHOTO | THE BELLINGHAM BUSINESS JOURNAL demand to secure the networks that are connected. For tected. So there’s multiple reasons that we ee will then be able to later log in from most companies, their most need these people that have these skills. home. You’ll also have situations where important asset is their data, and there’s a a company doesn’t even have a security lot of criminals out there who would like to When it comes to IT security risks for pripolicy, or they have a security policy and steal that data. vate companies, what do you think should they don’t enforce it. In addition, it’s actually a national secube among the biggest concerns? rity issue in that cyberspace is considered In this age now, the most important How important is it for a company to hire a fifth domain of warfare. We have air, sea, thing that the companies own is their talented and well-trained IT security proland, we have outer space, and we have the information—so their recipes, formulas, fessionals? Internet. databases, customers, credit cards and It’s really important. An IT person typiAll those things combined, along with things like that. At a minimum, any IT cally, like a network manager, has total our critical infrastructure like refineries, person they have at their company should access to all of the information about the electricity and so on, they need to be prohave some security training. employees and the database. You have to There’s also this idea that an IT team make sure that not only do they have the itself is solely responsible for the security of training, but also make sure that they are a network, but the fact of the matter is you someone you can count on for that. It’s a need the entire company. All employees sensitive position. need to be invested in this. One of easiest And a lot of things that happen [within ways to break into a network is through a computer network] are not because social engineering, and that’s done through someone intentionally did something, it’s using an employee who doesn’t understand because they didn’t know any better. That’s security. where the training comes in. Also, a lot of attacks are insider attacks. I think that the biggest mistake people So for example, even if you have a very make is assuming that an IT team is secursecure network, if you have an employee ing their networks, because it’s really everywho wants revenge, then you’ve got anothbody in a company that should have some er problem. One common thing that has kind of involvement. happened is an employee is terminated but their network access is not, so that employQ&A | Page 15

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A NEW HOME FOR TECHNOLOGY

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Collaborative office in downtown Bellingham’s Crown Plaza seeks to become center for local entrepreneurship By Evan Marczynski evan@bbjtoday.com

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long-empty section of a historic building in downtown Bellingham could soon develop into a center for digital startups and entrepreneurs. Digial marketing firm Red Rokk Interactive and the BIG Idea Lab, along with partners Pacific Continental Realty and the nonprofit Technology Alliance Group for Northwest Washington, announced in March the opening of a new collaborative office space designed to support high-tech companies. Creators of the 4,000-square-foot space, located on the top floor of the Crown Plaza building at 114 W. Magnolia St., will initially combine the shared space with other groups, including the Bellingham Angels investment group, a longtime supporter of local technology startups. Tyler Byrd, president and CEO of Red Rokk Interactive, said the idea was orginally developed after his company saw a need to expand. Red Rokk is the lease holder on the space, which is managed by Pacific Continental Realty. “We needed a bigger space as a group, so this fits our needs really well,” Byrd said. Byrd and Shawn Kemp, a tech entreprenuer who leads the BIG Idea Lab, envision the office, which has space for about 40 people, to be the starting point for what they hope will morph into Bellingham’s central entrepreneurship base—one that provides a collective environment for new technology companies to get off the ground and a new local coworking space. Kemp said the idea was to support, with both physical office space and the opportunity for collaboration with other startups, companies with scalable busi2034 James St. Bellingham, WA

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ness models, ones that can quickly grow revenue without increasing their overhead costs. A desk in the office’s coworking area rents for $150 per month. The flex-seating arrangement allows a member to come in and use any one of the open desks, which include computer and Internet access, along with other shared amenities. Dedicated offices, most of which ring around the center floor area, start at rents of $550 per month. The coworking model is slowly catching on locally. In addition to a coworking space, called The Pond, on Duport Street in Bellingham, the co-founders of local screenprinting company INNATE have plans to open a coworking office at their facility on State Street. Outside Bellingham and Whatcom County, the collaborative workplace model is gaining popularity in larger metropolitan areas. A 2012 survey by Deskmag, an online magazine that covers the coworking movement, estimated that five new coworking offices open worldwide every business day. Byrd said he thinks demand for coworking space in Bellingham is largely driven by the degree of awareness one has that such spaces exist. Building that awareness is the most difficult part of creating centers to support local entrepreneurship, he added. Kemp said he thinks coworking has great value as a transitory model, where professionals just starting their companies can have a space to work through the initial phases of growing their businesses before becoming more established.

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BUZZ | FROM 11

ers and processors on Dec. 1, instead of in summer and fall as a prior implementation timeline had indicated. With that, legal marijuana sales in Washington will probably not begin until at least spring 2014. The board will send draft rules on the new law’s implementation to stakeholders for comment in mid-May. Should the draft rules need substantial changes after comments are submitted, the license issuance date could be pushed to later in December, according to the board. I-502 timeline Mid-May: Send draft rules to stakeholders for comment Mid-June: CR102 (draft rules) filed for the Producer, Processor and Retailer Licenses. The CR102 allows the WSLCB to seek public comment on draft rule language developed with input from the public during the initial comment period. Small Business Economic Impact Statement issued with CR 102. Late July: Public hearing(s) on rules for the Producer, Processor and Retailer Licenses allowing the public to comment on the draft rule language. Rules adopted. Late-August: Rules become effective. September: WSLCB begin accepting Producer, Processor and Retail License applications. Dec. 1: Rules are complete (as mandated

BBJToday.com by law). WSLCB begins issuing Producer, Processor and Retail licenses to qualified applicants.

Bornstein Seafoods gives $100K to BTC’s new fishery building Bornstein Seafoods has donated $100,000 to Bellingham Technical College’s Fisheries and Aquaculture Sciences program’s new building campaign, according to BTC’s Foundation. The hatchery portion of the new building in Bellingham’s Maritime Heritage Park, called the Perry Center for Fisheries and Aquaculture Sciences, will be named in the company’s honor as The Bornstein Hatchery dedicated to Myer J. Bornstein. “Naming the hatchery of this building for Bornstein Seafoods honors the Bornstein family and specifically Jay’s significant contributions to Bellingham’s waterfront and fishing industry, and to the national seafood business,” Patricia McKeown, BTC’s president, said. “BTC is very appreciative of the Bornstein’s generous gift and proud to have a permanent reflection of the Bornstein’s involvement with our college and programs at the Perry Center.” BTC’s Fisheries and Aquaculture Sciences program has operated successfully for 34 years in Maritime Heritage Park, providing an educational path for students with an interest in becoming stewards of the environment, enhancing and protecting fisheries and aquaculture resources, and learning and applying science to the field. Due to severe structural issues, the building that housed the Fisheries and Aquaculture Sciences program was no longer operational, so BTC launched a capital campaign to raise funds to build a

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May 2013

Northwest Indian College’s new campus library on track for completion by January 2014 Northwest Indian College plans to begin construction on its 12,710-square-foot Coast Salish Institute Building in May, while work continues on a nearly $3 million library and technology building that broke ground in February. The library will be the eighth building constructed on NWIC’s main campus as a result of the college’s $44 million capital campaign, which began in 2005. The building is scheduled to be completed by January 2014. The Coast Salish Institute Building is expected to be finished by June 2014. In the almost 11,000-square-foot library and technology facility, which was designed by Zervas Group Architects, the northern section of the building will house the college’s IT department, staff work rooms, labs and offices. The southern portion will house traditional library spaces, teens’ and children’s rooms, special collections, study areas and a large open space with books and

magazine stacks. Valerie McBeth, NWIC’s library director, said that while she will miss aspects of her current space, which was built around 1930, she and her staff are excited for the new building. “Things will be a lot more convenient,” McBeth said, in a press release. “The layout is going to be much nicer and we will again be located back in the center of campus activity. With so much having moved to the new campus, we are now on the periphery.” In the new building, the library will be brought under a single story and will have more space. NWIC’s library occupies less than 5,000 square feet now, and will fill 6,500 square feet in the new building. Funding for the building came from contributions by the U.S. Department of Education, Lummi Indian Business Council, and the U.S. Department of Housing and Urban Development’s Tribal Colleges and Universities Program.

new building in the existing Do you own a business in location. In addition to a Bellingham or Whatcom County? $2 million matching state allocation, funding has also Then you can take advantage of our come from contributions limited-time offer and receive from local businesses, india single-year free subscription to viduals, civic groups, BTC The Bellingham Business Journal. staff, and public/private foundations and college Call 888-838-3000 or visit BBJToday.com funds. to sign up and start receiving The new building should monthly editions of the BBJ. be completed and ready for classes by September. Bornstein Seafoods has makes the merger a natural fit.” been processing seafood Columbia also appointed David A. for more than 79 years on the shores of Dietzler, a former director of West Coast, Bellingham Bay. Myer J. Bornstein took to serve on the boards of directors for the the helm of the company in 1980 from his Columbia company and Columbia Bank. father, who founded the firm in 1934. He expanded Bornstein Seafoods further into Tax refunds help state recoup Washington, Oregon, northern California thousands in overpaid jobless and Canada. Today, the company is run by Myer J. benefits Bornstein’s three sons, Kyle, Colin and The state’s Employment Security DepartAndrew Bornstein. ment is saying the federal tax-filing season Columbia Banking System is turning into debt-repayment season for Washington residents who owe the departacquires West Coast Bancorp ment money. Columbia Banking System Inc., which The first two weeks of IRS disburseoperates Columbia State Bank, has comments netted $446,380 to the state agency pleted an acquisition of West Coast Banfrom the Internal Revenue Service under corp, parent company of West Coast Bank. the federal Treasury Offset Program, or Columbia operates 157 branches in 38 TOP. counties in Washington and Oregon. Its The program allows Employment SecuBellingham location, at 211 E. Holly St., rity to cross-match its computer files with serves as a commercial lending base for IRS files and flag individuals who are Whatcom and Skagit counties. delinquent in paying back benefit overpayWith the merger, Columbia’s total assets ments. The department can claim any tax now exceed $7 billion, according to the refunds they have coming, after the IRS, company. delinquent child support and other federal “We are delighted to welcome the cusdebts are paid. tomers, employees and shareholders of Additional disbursements will be issued West Coast to Columbia,” said Melanie J. each week. Dressel, president and CEO. “The merg“While this represents only a small dent ing of Columbia and West Coast moves us in the total benefits debt, it sends a signal significantly toward our stated objective of about the importance we place on running being the leading Pacific Northwest region- a fair and solvent unemployment-insural community bank. The complementary ance system,” said Employment Security aspects of the companies’ businesses, Commissioner Dale Peinecke, in a press including customer focus, geographic coverage, business orientation and compatBUZZ | Page 15 ibility of management and operating styles,


May 2013

BUZZ | FROM 14

release. “It’s a good start, and we expect to recoup even more through TOP in the months ahead.” In December, Employment Security notified 25,000 people that their 2012 income-tax refunds might be intercepted to repay benefits they shouldn’t have received. At that time, they owed a total of $61.7 million in delinquent debt. Many people being targeted through TOP claimed unemployment benefits fraudulently. Federal law also allows states to use TOP to recover benefits from people who didn’t disclose earnings they received while claiming benefits.

Haskell Corp. earns safety award from Corps of Engineers The U.S. Army Corps of Engineers-Alaska District has selected Haskell Corp. in Bellingham as its Contractor of the Year. Haskell was named during the Army Corps’ 14th annual Celebrate Safety ceremony in March. The Bellingham company was among 10 contractors and two individuals honored for safety performance in 2012 during the event. The safety-achievement award is for contractors who demonstrated excellence in safety for a project in Alaska during 2012 calendar year. Haskell took the top award for phases one and two of a $53 million design and build project to replace two coal fired boilers and handling systems at Eielson Air Force Base. The scope of work included the demolition of the existing boilers, installation of new boilers and all auxiliary equipment to support boiler operation, extensions of the plant controls, electrical systems, glycol and steam systems, emission control equipment and new environmental control elements.

Anticipating move, Heritage Flight Museum buys hangar in Skagit After announcing last December that it planned to leave its home as the Bellingham International Airport, the Heritage Flight Museum says it has now purchased a large hangar at Skagit Regional Airport, several miles west of Burlington. “We had been looking at Skagit Regional as

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an option for relocation” the museum’s Executive Director Greg Anders said. “This facility came on the market and was seeing a lot of interest. In order to preserve the option to get into a ready-made building that meets all of our space and operational needs, the board of directors decided to take action and not lose the opportunity.” Museum directors have cited unfavorable lease terms with the Port of Bellingham for a new aviation museum that was planned to be built just north of the runway at the Bellingham International Airport. For the past decade, the Heritage museum has operated out of a hangar owned by Apogree LLC, a firm owned by the nonprofit museum’s founder, William Anders, who is Greg Anders’ father. According to a statement from the museum, it is continuing its relocation search, but anticipates holding Warbird Weekend in June at the museum’s current facilities in Bellingham. Heritage Flight Museum is online at www.heritageflight.org.

Q&A | FROM 12

How has WCC’s Computer Information Systems program managed to be so successful? Probably the main thing is that I’ve always looked at this program as not just a little program at Whatcom Community College, we’re actually part of this nationwide strategy to secure cyberspace. It’s our responsibility to turn out people that are highly skilled. Also, our program is not just a series of classes that people take. The students in our program have a lot of different opportunities. We run a free help desk where they fix computers for people. Students can participate in a national collegiate cyber-defense competition. We also have a grant for high school cyber camps, and our Whatcom students serve as mentors. The main thing is that our focus is not on just this program, but it’s on national initiatives and how we can participate in those. And also that we’re making sure our program is recognized by outside sources as being valuable; that we’re teaching the students the right things to succeed. For someone who might have an interest in a career in IT security, what is the best way to get started? I do tell students when they come in and they’re trying to figure it out that they have to remember that this is a way of life. Working in IT is not a 9-to-5 job. You’re always having to

learn new things. If a person really wants to pursue this field, in order to do the security for IT, you have to understand how everything works. So I would suggest they take classes in networking, operating systems and hardware, and learn how to secure those things. In our program we have veterans, and we have people coming back to school to get re-trained because they’ve lost their jobs. So, it’s not a field just for people right out of high school. For business people without much technical training in IT security, are there some basic tips or lessons that can help keep personal or proprietary digital information safe? At the very least, don’t click on a link in an email from someone you don’t recognize. You have to just be aware that there are people trying to get into your network and they are using various means. They can social engineer their way in. So, you might get an email or a phone call from someone saying they need to reset your password, but they need your old one to do it. That’s an oldie, but a goodie. Then, you can also have phishing attacks, where someone will send you an email [in order to break into your network]. But a lot of things happen just because somebody isn’t aware of everything that could happen. I think it’s important to just increase your understanding of what could happen to your machine and your network. At the very least you should be

running an antivirus and a firewall on your computers. At our help desk, the majority of machines that come in are infected with something. Either somebody downloaded something from a bad site, they browsed to a bad site or they installed a program from somewhere they didn’t recognize, and they’ve infected their machine. In a business, there’s simple things that everyone should have, such as an acceptable-use policy for their employees and a security policy. Then they should also enforce those policies. I’ve seen situations where companies do have policies, but they are never enforced. So for example, passwords should be changed at certain intervals, and passwords shouldn’t be posted on a sticky note. Another thing, especially for private companies, is that they should be careful about what they are putting on their websites. Because really, when an attacker is doing re-con, the first place they’ll go is to your website to find out about your company. What information is risky to put on a website? It’s not so much risky, it’s just that the more information that’s available, the more an attacker can use. So, an employee directory, for instance, or information about your vendors. It depends on the nature of your business, but if you’re using a particular type of device in your network and you put your vendor on your website, then you giving information to an attacker.

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recently spent some time with my mom and noticed that she worries a lot about her growing forgetfulness. And yet, when reminiscing about trips and vacations over the years, her memory is crystal clear. I can relate. I vividly remember each time my parents loaded up the car, plopped us kids in the back seat or even in the pick up truck bed (seat belts were optional then) and headed out for a camping trip, a jeep club rendezvous (this is when 4-wheel drive first became the rage), or a family reunion. Two of my earliest childhood memories are attending the Seattle “World’s Fair” in 1962…and fighting with my sister over pretty much everything on a long and hot drive to Disneyland the following year. I didn’t truly appreciate the necessary “patience quotient” of a road warrior parent until I was wrestling with my own kids – trying to make up car games to prevent the inevitable “are we almost there?” before finally acquiescing to the temporary but incredibly welcome silence of personal CD players. (The silence lasted until one or both would sing along to their favorite music…at full volume).

This isn’t intended to discourage you from family travel. On the contrary: The U.S. Travel Association (USTA) completed a study which indicates “few memories are better than those from family vacations.” The study went on to show that nearly every child surveyed (93%) agreed that on vacations “I get to spend quality time with my parents.” And the majority of children (53%) “strongly agree” that “vacations bring my family closer together.” Even teenagers, who often give the impression they would rather be ANYWHERE but traveling with their parents strongly agreed that on family vacations they get to “see and do new things that I’ll remember for a long time” (64%) and that some of their “best memories are of things that I did during a family vacation.” (49%) Travel experiences also create shared family memories that sometimes result in wildly differing perspectives. My telling of the time we ended up driving down a narrow alley (barely clearing the parked cars on either side) in Krakow, Poland only to arrive at a newly walled in dead end, is far funnier than my husband’s. Of course he had to attempt to drive out of the same tight alley backwards…

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all the while I was defending my map reading skills which certainly did NOT indicate the road would abruptly end two blocks before our hotel. Our daughters alternated between hysteric laughter and foreign language traffic control. Or there’s the time we turned too soon and ended up driving down a train track in Bratislava. Also not one of my better navigational moments – but the story (and accompanying pictures) has become a favorite family “legend”. Not surprisingly, the same USTA research shows that family vacations give parents an opportunity to share their own childhood. More than half of the adults surveyed reported that “I have fond memories of vacations that I took as a child, and I want to create similar experiences for my family.” With busy schedules crammed full of activities, a solid majority of parents reported that “family vacations are one of the few things that families do together.” Three-quarters (76%) of parents surveyed believe that family vacations are worth the time and money because they “give my child experiences that they will remember years from now.” The role of Bellingham Whatcom County Tourism is to encourage visitors to come to our region because of the crucial economic benefits and job creation tourism generates. But since May 4-12 is National Travel & Tourism Week (and the month of May is the unofficial “kick off” of family travel season), it seems like a great time to remind us all about the value of travel.

May 1 May 2 May 3 May 4 May 5 May 7 May 8 May 9 May 10 May 11 May 12 May 14 May 16 May 17 May 18 May 19 May 22 May 25 May 26 May 30 May 31

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May 2013

PORT NEWS

Port Brings First Waterfront District Property to Market Sponsored content provided by Port of Bellingham

PORT OF BELLINGHAM 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

For nearly a decade the Port of Bellingham has been preparing the old Georgia Pacific Mill site for redevelopment. The Port has removed over a hundred old industrial structures, completed some early-action environmental cleanups, and undertaken a huge communitywide planning effort. All of this has been done, in coordination with the City of Bellingham and the State Department of Ecology, to transform a vacant industrial site into a new and thriving area. Over the long term, they are envisioning thousands of new jobs, new housing, six new community parks and an extensive waterfront trail network. The city’s Planning Commission is reviewing the draft planning documents and agreements before making recommendations to the City Council. The City Council and Port Commission likely will vote on these documents by the end of the year. Port officials believe this is the right time to find a developer, or developers, for the first available parcels. This month the Port is issuing a Request for Proposals (RFP) for Waterfront District property located in the Downtown section of the site

that will be developed in a mixeduse, urban style. The Downtown portion of the Waterfront District is 37-acres, including parks and roads. “We are seeking someone now because we want a developer at the table as the final details of the planning documents are determined,” said Port Executive Director Rob Fix. “We have learned from other Northwest public/private developments that the very best projects come from close collaboration.” The RFP is hitting the streets in early May, with a mid-July response deadline and it includes three development options: a “master developer” for the 10.8 acre site, a developer for adaptive reuse of the old Granary Building, or a devel-

oper for a specific project within the 10.8 acres. The entire Waterfront District, including the former treatment lagoon is 237 acres. “We have been reaching out to the regional development community for nearly a year to make sure they are aware of our project and are ready for responding to this opportunity,” said Port Business Development Director Lydia Bennett. “We are hopeful that we will get responses from qualified developers.” Development proposals will be ranked based on the capability of the developer; the development concept and the proposed transaction. The Port is seeking developments that generate jobs; work well with surrounding neighborhoods; and have a high level of sustainability. Port staff will review proposals and will make recommendations to the Port’s Board of Commissioners, which will make the final determination in selecting developers. The goal is to select a developer by the end of 2013.

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Recently filed public record information Public record information is obtained from a variety of sources. Business licenses and building permits are from the city of Bellingham. Liquor licenses are from the Washington State Liquor Control Board. Bankruptcies are from the U.S.bankruptcy court in Seattle. Tax liens are from the Whatcom County Auditor. Judgments are from the Whatcom County Superior Court. Listings are subject to change and are only current as of their filing dates. Due to space constraints, some public records might be omitted in print. All public records can also be found online at BBJToday.com. Building permits appear weekly, usually on Tuesdays. Liquor licenses appear every other week, usually on Thursdays. All other records appear monthly. For more information, please email editor@bbjtoday.com.

BUSINESS LICENSES 13 Nails & Salon Company, 13 Nails & Salon Company, 907 Harris Ave., Bellingham, WA 98225. 2907 Mt. Baker Hwy. LLC, 2907 Mt. Baker Hwy. LLC, 2907 Mount Baker Highway, Bellingham, WA 98226. 360 Fabrication, Jordan Michael Yoder, 5141 Guide Meridian, Bellingham, WA 98226. Advanced Cleaning Products LLC, Advanced Cleaning Products LLC, 2812 St. Paul St., Bellingham, WA 98226. Afloat, Afloat LLC, 112 Ohio St., Suite 111, Bellingham, WA 98225. Albertson’s #416, Albertson’s LLC, 1650 Birchwood Ave., Bellingham, WA 98225. Alexandra Knezo Licsw, Alexandra M. Knezo, 3031 Orleans St., Suite 101, Bellingham, WA 98226. ALM, Andrea Lynn McKechnie, 2415 Kelly Road, Bellingham, WA 98226. Amy’s Alterations, Amy N. Nguyen, 2829 Meridian St., Bellingham, WA 98225. Ashley N. West, Ashley N. West, 2609 W. Maplewood Ave., Apt. 113, Bellingham, WA 98225. B&S Drywall Construction LLC, B&S Drywall Construction LLC, 2638 Humboldt St., Bellingham, WA 98225. Bay 3 Designs LLC, Bay 3 Designs LLC, 806 Marine Drive, Bellingham, WA 98225. Bayview Home and Yard Services, Debbie Lee Schlichemeyer, 374 Sudden Valley Drive, Bellingham, WA 98229. Be Prepared Training, Russell Nolan Dzialo, 1112 E. Maryland St., Bellingham, WA 98226. Big Fresh Media, Big Fresh Inc., 1344 King St., Suite 202, Bellingham, WA 98229. Black Diamond Construction, Osiel Mazaru Gonzalez-Matar, 2719 James St., Bellingham, WA 98225. Black Pearl, Lailas Black Pearl Restaurants Inc., 1317 W. Bakerview Road, Suite 102, Bellingham, WA 98226. Black Raven Salon, Tamar Cargill, 4000 Flynn St., Spc. 6, Bellingham, WA 98229. Blair Smith, Blair David Smith, 4709 Parkhurst Drive, Bellingham, WA 98229. Boatman Tile, Brent Stuart Boatman, 3 Jubilee Lane, Bellingham, WA 98229. Bundle LLC, Bundle LLC, 907 W. Connecticut St., Bellingham, WA 98225. Canadian Friendly Business, Janet Lee Defield, 1313 E. Maple St., Suite 306, Bellingham, WA 98225. Carmen Som LMP, Carmen Andrea Som, 4152 Meridian St., Suite 105 Unit 373, Bellingham, WA 98226. Cathy C. Hedford dba Reiki Healing Portal, Cathy C. Hedford, 1116 Key St., Suite 103, Bellingham, WA 98225. Cedarside Maintenance Services, James C. Curlett, 3322 Cedarside Court, Bellingham, WA 98226. Chris 4 Math, Christine A. Elzea, 1120 St. Paul St., Bellingham, WA 98229. CK Design Divaz Home Staging, Candyce Lisa Kirbyson, 2657 N. Shore Road, Bellingham, WA 98226. College Pro Painters of Skagit, Igor Alex Samoylenko, 5019 Northwest Drive, Bellingham, WA 98226. College Pro Painters of South Bellingham, Geneva Dane Olson, 2300 Bill McDonald Parkway, Apt. 209, Bellingham, WA 98225. Convergent.io Technologies Inc., Convergent.io Technologies Inc., 5725 Schickler Lane, Bellingham, WA 98226. Creations, Jennifer Eileen Mayville, 3918 Tamarack Road, Bellingham, WA 98226. Cuc Thi Nguyen, Cuc Thi Nguyen, 410 Bakerview Road, Suite 108, Bellingham, WA 98226. Culinary Creations, Colman Management Company LLC, 1210 11th St., Bellingham, WA 98225. D&K Audio Specialties, Douglas Kenneth Ash, 624 Trout Lake Drive, Bellingham, WA 98226. Design By Kerry, Kerry Nickle Thompson, 1706 40th St., Bellingham, WA 98229. Dollar Plus Smoke Shop, Ekam LLC, 4151 Meridian St., Suite 108, Bellingham, WA 98226. Elisabeth K. Kenoyer LLC, Elisabeth K. Kenoyer LLC, 820 11th St., Bellingham, WA 98225. Enrich, Keri Colleen Ridenour, 262 E. Bakerview Road, Apt. 103, Bellingham, WA 98226.

Europa Foods, Europa Foods Inc., 3908 Meridian St., Suite 112, Bellingham, WA 98226. Evergreen Lawns, Alex John Vandergriend, 2401 Elm St., Apt. 10, Bellingham, WA 98225. Evergreen Outdoor Supply, Galen Francis Cobbs, 2317 St. Clair St., Bellingham, WA 98229. Expanding Pathways to Health LLC, Expanding Pathways to Health LLC, 2114 James St., Bellingham, WA 98225. EZ Business Solutions, Siv Kristin Spain, 2014 Julia Ave., Bellingham, WA 98225. Faulkner Investment Services LLC, Faulkner Investment Services LLC, 1010 Harris Ave., Suite 203, Bellingham, WA 98225. Fernando Design, Fernando Green Olvera, 1229 Birch Falls Drive, Bellingham, WA 98229. Francesca’s, Francesca’s Collections Inc., 1 Bellis Fair Parkway, Suite 326, Bellingham, WA 98226. Freehub Magazine, Freehub Media LLC, 501 Meador Ave., Suite 104, Bellingham, WA 98225. G2G Engineering, Gerald Evan Guidroz, 1032 Kenoyer Drive, Bellingham, WA 98299. Garden Green Retirement Development LLC, Garden Green Retirement Development LLC, 1210 10th St., Suite 204, Bellingham, WA 98225. Grand Illusion Floral Corporation, Grand Illusion Floral Corporation, 3634 Home Road, Bellingham, WA 98225. Gwozdz & Hanna, Richard Bernard Gwozdz, 4610 Quinn Court, Bellingham, WA 98226. H&H Acres Farm and Pet, Justin Wayne Hammer, 2764 Mount Baker Highway, Bellingham, WA98226. Hair By Charleen, Charleen L. Hess, 1322 Commercial St., Bellingham, WA 98225. Half-Full Distributing, Half-Full Distributing, 107 Carter Drive, Bellingham, WA 98225. Harbor Bay LLC, Harbor Bay LLC, 514 N. State St. #101, Bellingham, WA 98225. Hard Washington, Hard Washington Cider LLC, 2726 Douglas Ave., Bellingham, WA 98225. Henderson Lawn Care, Douglas Edward Henderson, 1688 Sapphire Trail, Bellingham, WA 98226. Hogen & Associates, Michael Warren Hogen, 3019 Barkley Meadows Circle, Bellingham, WA 98226. Homestudies Northwest, Kristin Mail Barber, 2306 Henry St., Bellingham, WA 98225. Hoppis Real Estate LLC, Hoppis Real Estate LLC, 112 E. Maple St., Suite 102, Bellingham, WA 98225. Horne Consulting, Peter Horne, 1900 Madison St., Bellingham, WA 98225. Inspiring Events, Emily Kristine Norton, 1011 E. McLeod Raod, Bellingham, WA 98226. Intek LLC, Intek LLC, 925 17th St., Bellingham, WA 98225. Irena Rose Lambrou, Irena Rose Lambrou, 1224 Harris Ave., Suite 106, Bellingham, WA 98225. JC/DC Specialties, Judith Ann Crnich, 1025 Kelly Road, Bellingham, WA 98226. Jewell Electric, Scott Ernest Jewell Jr., 18 Green Hill Road, Bellingham, WA 98229. Jonathan Charles Norell, Jonathan Charles Norell, 826 Queen St., 98229. Junior Flooring & Construction, Jury J. Galeas Melendez, 2008 E. Illinois St., Bellingham, WA 98226. Justin Lee Ver Burg, Justin Lee Ver Burg, 5005 E. North St., Bellingham, WA 98226. Justin M. Woodum, Justin Michael Woodum, 1721 Iron St., Bellingham, WA 98225. Kara’s Beauty Barn, Kara’s Beauty Barn LLC, 1711 Pence Ave., Bellingham, WA 98226. Katherine Alena Laspina, Katherine Alena Laspina, 405 14th St., Bellingham, WA 98225. Kathryn G. Polselli, Kathryn G. Polselli, 1016 38th St., Bellingham, WA 98229. KDLR Enterprises LLC, KDLR Enterprises LLC, 1710 Grant St., Bellingham, WA 98225. Kulshan Computer Services, Kulshan Computer Services LLC, 1708 McKenzie Ave., Bellingham, WA 98225. Lambert Garden Creations, Sheri Maureen Lambert, 373 W. Hemmi Road, Bellingham, WA 98226.

Law Office of Edward S. Alexander, Edward S. Alexander, 1501 Eldridge Ave., Bellingham, WA 98225. Lembcke Insulation LLC, Lembcke Insulation LLC, 3440 E. Smith Road, Bellingham, WA 98226. LGM Outdoor Services, Benjamin Scott Sutherland, 3100 Ferry Ave., Apt. B-107, Bellingham, WA 98225. Ling Incorporated, Ling Consulting Inc., 1900 Mill Ave., Bellingham, WA 98225. LJ Shepherd Photography, Leah July Shepherd, 902 N. Shore Drive, Bellingham, WA 98226. Looking Glass Salon, Looking Glass East LLC, 118 E. Magnolia St., Bellingham, WA 98225. M2M Contracting, M2M Steel Systems LLC, 1329 N. State St., Suite 204, Bellingham, WA 98225. ManPowerGroup US Inc., ManPowerGroup US Inc., 216 W. Champion St., Bellingham, WA 98225. McEathron Partnership, McEathron Partners, 910 E. Maple St., Bellingham, WA 98225. Mearns Law Group, Matthew Shelley Mearns, 4310 Columbus Ave., Bellingham, WA 98229. Megan Lynn Lee, Megan Lynn Lee, 444 S. State St., Apt. 410, Bellingham, WA 98225. Melanie Paloma Aceves, Melanie Paloma Aceves, 1415 E. Victor St., Bellingham, WA 98225. Mindoptimal, Elizabeth Ann Anderson, 3120 Squalicum Parkway, Suite 2, Bellingham, WA 98225. Misfit Pastry, Misfit Pastry LLC, 250 Flora St., Bellingham, WA 98225. Moon and Hare, Barbara Jean Simler, 1212 Old Fairhaven Parkway #D202, Bellingham, WA 98225. Moss Bags, Julie Ann Simon, 12 Clear Lake Court, Bellingham, WA 98229. Mount Baker Distillery, Mount Bakery Distillery LLC, 1305 Fraser St. #102, Bellingham, WA 98229. Never Enough Thyme Professional Gardenkeeper, Meilani Ruth Obra, 311 Cedar St., Bellingham, WA 98225. New Dawn Fashions, Christopher Ryan Schwitter, 2400 Huron St., Bellingham, WA 98229. New Worc (IV) Development and Management LLC, New Worc (IV) Development and Management LLC, 1210 10th St., Suite 204, Bellingham, WA 98225. No Code Productions, Sean Patrick Burke, 53 Sudden Valley Drive, Bellingham, WA 98229. North Liberty LLC, North Liberty LLC, 1521 23rd St., Bellingham, WA 98225. Northwest Grip, Northwest Grip LLC, 2502 Kentucky S., Bellingham, WA 98229. NVNTD Inc., NVNTD Inc., 1344 King St., Suite 202, Bellingham, WA 98229. On Point Entertainment, Tyler Shuck, 1034 24th St., Apt. 5, Bellingham, WA 98225. Orozco’s Home Remodeling LLC, Orozco’s Home Remodeling LLC, 2310 Yew Street Road, Bellingham, WA 98229. Pacific Nerdwest, Pacific Nerdwest, 207 1/2 E. Holly St., Bellingham, WA 98225. Pebble Equity LLC, Pebble Equity LLC, 4641 Celia Way Unit 102, Bellingham, WA 98226. Pedaling Home, Pedaling Home LLC, 510 Lakeway Drive, Bellingham, WA 98225. Play By The Bay Inc., Play By The Bay Inc., 1201 11th St., Suite 200-B, Bellingham, WA 98225. Polished, Joann Joy Latham, 1344 King St., Bellingham, WA 98229. Pro Draft League, Pro Draft League Inc., 1313 E. Maple St., Suite 201 #587, Bellingham, WA 98225. Rainmaker Products LLC, Rainmaker Products LLC, 3917 Silver Beach Ave., Bellingham, WA 98226. Rebecca Cairelli, Rebecca Cairelli, 3909 Silver Beach Ave., Bellingham, WA 98226. Rebecque Asher, Rebecque Therese Asher, 2412 West St., Bellingham, WA 98225. Reclamation Art and Design, Recreation Northwest, 3026 Lynn St., Bellingham, WA 98225. Red Door Catering Company, Steven James Engels, 1815 H St., Bellingham, WA 98225. Redstone Ridge Construction, Mark Aplin Wharton, 2807 Cottonwood Ave., Bellingham, WA 98225. Richard Sprague LICSW DCSW, Richard Roy Sprague, 103 E. Holly St., Suite 411, Bellingham, WA 98225. Rockin Locks, Linda Marie Thurber, 2846 Undine St., Bellingham, WA 98226. Sally R. Lange Family LLLP, Sally R. Lange Family LLLP, 2515 Cherry Ste., Bellingham, WA 98225. Samish Marine Services, Samish Marine Services LLC, 639 Manley Road, Bellingham, WA 98229. Sassy Eents & Entertainment LLC, Sassy Eents & Entertainment LLC, 415 N. State St., Apt. 305, Bellingham, WA 98225. Seattle Digitalize For Marketing, Ammar Al-Jaghlit, 4152 Meridian St., Suite 105, Bellingham, WA 98226. Second Wind Massage, Jacqueline Theresa Griffith, 4611 Coast Way, Bellingham, WA 98226.

May 2013 Seifert & Jones Wine Merchants, Seifert & Jones Wine Merchants LLC, 19 Prospect St., Bellingham, WA 98225. Sew!, Jennifer L. Wall, 3137 Cottonwood Ave., Bellingham, WA 98225. Shepherdson LLC, Shepherdson LLC, 3707 Alabama St., Bellingham, WA 98226. Shiner Distillery, Shine Distillery LLC, 2200 Queens St., Suite 16, Bellingham, WA 98229. Sole Graphics, Matthew Lawrence Bain, 12 Bellwether Way, Suite 232, Bellingham, WA 98225. Spectrum Plumbing and Heating LLC, Spectrum Plumbing and Heating LLC, 753 E. Smith Road, Bellingham, WA 98226. Starr Pest Solutions, Starr Pest Solutions LLC, 5129 Sand Road, Bellingham, WA 98226. Stephana Campion, Stephana Campion, 1344 King St., Suite 102, Bellingham, WA 98229. Steph’s Cleaning, Stephanie Cher Fehr, 667 Andy Court, 98226. Still Water Gifts LLC, Still Water Gifts LLC, 3960 Hoff Road, Bellingham, WA 98225. Tamar Lieb, Naturopathic Physician and Licensed Midwife PLLC, Tamar Lieb, Naturopathic Physician and Licensed Midwife PLLC, 2011 H St., Bellingham, WA 98225. TDS Construction Inc., TDS Construction Inc., 3960 Meridian St., Bellingham, WA 98226. The Autohaus, Executive Autohaus LLC, 1828 Franklin St., Bellingham, WA 98225. The Great Eco Fishery, The Great Eco Fishery LLC, 401 Harris Ave., Suite 202, Bellingham, WA 98225. The Kleman Agency LLC, The Kleman Agency LLC, 204 N. Commercial ST., Bellingham, WA 98225. The Natural Health Clinic, Dr. Emily Sharpe ND PLLC, 1707 F St., Bellingham, WA 98225. The Rustic Bird Chalet, David James Clayton, 200 Sudden Valley Drive, Bellingham, WA 98229. The Sisterhood, Olivia B. Hanson-Hostetter, 1215 Kelly Road, Bellingham, WA 98226. The Union Coffee House, Vanepps Incorporated, 114 W. Magnolia St., Suite 101, Bellingham, WA 98225. The Wild Goose LLC, The Wild Goose LLC, 3912 Britton Road, Bellingham, WA 98226. Therapeutic Lifestyle Change Inc., Therapeutic Lifestyle Change Inc., 3511 Chuckanut Ave., Bellingham, WA 98229. Torilynn’s Styles, Tori Lynn Salinas, 4260 Cordata Parkway, Suite 102, Bellingham, WA 98226. Tracell LLC, Tracell LLC, 1732 Iowa St., Bellingham, WA 98229. Tribeka LLC, Tribeka LLC, 424 W. Bakerview Road #105-322, Bellingham, WA 98226. Two Dreamers, Two Dreamers, 301 W. Holly St., Suite D14, Bellingham, WA 98225. Veracity Construction & Business Consulting LLC, Veracity Construction & Business Consulting LLC, 1971 Midway Lane, Suite L, Bellingham, WA 98226. West Coast Mobile Detailing, Jordan Wesley Nielsen, 334 E. Axton Road, Bellingham, WA 98226. Whatcom Information Technology Services, Whatcom Information Technology Services, 3409 Donovan Ave., Bellingham, WA 98229. Whitewater Rescue Institute, Whitewater Rescue Institute, 336 36th St. #225, Bellingham, WA 98225. Wiebe Insurance Inc., Wiebe Insurance Inc., 647 Old Samish Road, Bellingham, WA 98229. WWS Boardshop, WWS Boardshop LLC, 501 Harris Ave., Bellingham, WA 98225. Zephyr Painting Company LLP, Zephyr Painting Company LLP, 1422 Lincoln St., Bellingham, WA 98229.

BUILDING PERMITS ISSUED PERMITS 516 High St. (WWU Ridgeway Alpha), $1,086,982 for commercial improvements to existing residential dormatory: interior upgrades and addition of sprinkler system and alarms. Applicant: King Architecture. Contractor: Faber Construction Corp. Permit No.: BLD2012-00485. Issued April 19. 1301 W. Bakerview Road 106, $80,000 for tenant improvement: remodel former office space to frozen yogurt shop: Menchie’s. Contractor: Moceri Construction Inc. Permit No.: BLD2013-00066. Issued April 15. 1 Bellis Fair Parkway 316, $40,000 for commercial tenant improvement: remodel existing styling salon: Master Cuts. Contractor: GM Northrup Corp. Permit No.: BLD2013-00101. Issued April 15. 1 Bellis Fair Parkway 605, $15,489 for tenant improvement: remodel retail tenant in mall: Activate Cellular. Contractor: Carpita. Permit No.: BLD2013-00045. Issued April 19. 1030 Lakeway Drive, $10,000 for tenant improvement: construct new room in center of store for food prep demonstration area: The Market at Lakeway. Permit No.: BLD2013-00140. Issued April 16. 3011 Cinema Place 101, $290,000 for tenant improvement: finish space for new frozen yogurt restaurant. Contractor: Sustainable Tenant Improvements LLC. Permit No.: BLD2013-00059. Issued April 1. 1421 N. State St., $258,000 for commercial tenant improvement

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to create climbing gym. Applicant: Vital Climbing LLC. Permit No.: BLD2013-00080. Issued April 2. 810 Alabama St., $175,000 for tenant improvement: remodel office space into self-serve laundromat: Northwest Laundry Company. Contractor: The Franklin Corp. Permit No.: BLD2013-00028. Issued April 1. 140 E. Bellis Fair Parkway, $125,233 for new commercial unheated storage building, accessory storage for credit union office building: WECU. Contractor: Alvord & Richardson Construction Co. Permit No.: BLD2012-00479. Issued April 2. 2501 James St., $100,000 for commercial: replace exterior dryvit wainscot with new cultured stone cladding, overframe and replace metal roofing on entry only. Applicant and contractor: Pearson Construction Corp. Permit No.: BLD2013-00135. Issued April 4. 3028 Lindbergh Ave., $75,000 for commercial interior remodel: reconfigure spaces to create additional classrooms: Bellingham Technical College. Applicant: RMC Architects. Contractor: Berschauer Phillips. Permit No.: BLD2013-00107. Issued April 11. 119 N. Commercial St., $53,301 for commercial: re-cover existing one-layer roof with one new layer 60 MIL TPO roof membrane on 15th floor and portions of fourth and fifth floors. Contractor: Hytech Roofing Inc. Permit No.: BLD2013-00132. Issued April 2. 1 Bellis Fair Parkway, $20,000 for commercial alteration: raise soffits approximately two feet at 26 locations throughout mall: Bellis Fair Mall. Contractor: Culp Construction Company. Permit No.: BLD2013-00121. Issued April 5. 114 W. Magnolia St. 102, $20,000 for tenant improvement: expand existing cafe space into adjacent suite (previously retail), no exterior modifications: Daisy Cafe. Contractor: Clark Construction. Permit No.: BLD2013-00095. Issued April 5. 800 Lakeway Drive, $4 million for commercial alteration: remodel of existing retail store: Fred Meyer. Permit No.: BLD2012-00360. Issued March 25. RECENTLY ACCEPTED PERMIT APPLICATIONS 20 Bellis Fair Parkway, $750,000 for commercial tenant improvement for new sports retail store: Sports Authority. Contractor: James E. John Construction Co. Inc. Permit No.: BLD2013-00034. Accepted April 18. 1 Bellis Fair Parkway, $420,000 for commercial alterations: remodel common areas of mall including two entrances, new flooring, column wrap and ceiling modifications, food court bulkhead modifications: General Growth Corp.-Bellis Fair Mall. Permit No.: BLD2013-00148. Accepted April 16. 2938 Lindbergh Ave., $305,000 for commercial re-roof, remove two existing roof layers, replace with new TPO roof. Applicant: RMC Architects. Contractor: Berschauer Phillips. Permit No.: BLD201300153. Accepted April 19. 516 High St. (WWU Haggard Hall), $67,500 for interior remodel: juice bar converted to copy center. Contractor: Western Washington University. Permit No.: BLD2013-00150. Accepted April 16. 4029 Northwest Ave. 202, $65,000 for tenant improvement: interior remodel of office space. Permit No.: BLD2013-00155. Accepted April 19. 193 Telegraph Road, $50,000 for commercial alteration: relocate demising wall between tenants 189 and 193, update toilet rooms. No tenant. Applicant and contractor: Oracle Contracting Services. Permit No.: BLD2013-00152. Accepted April 17. 4173 Meridian St., $37,000 for commercial alerations: interior remodel to convert janitor’s closet to children’s restroom; remodel group area for classroom and check-in area: Christ The King Church. Permit No.: BLD2013-00151. Accepted April 16.

LIQUOR LICENSES NEWLICENSE APPLICATIONS Jeckyl & Hyde Deli and Ale House, Burning Applewood Inc.; James D. Skinner and Richard Kenneth Van Dommelen applied for a license change to sell beer/wine in a restaurant and operate a microbrewery at 709 W. Orchard Drive #1 & #2, Bellingham, WA 98225. Filed April 15. The Big Fat Fish, The Big Fat Fish Company Inc.; Brian Andrew Tines applied for a license change to sell beer/wine/spirits in a restaurant lounge and for catering purposes, as well as make to-go sales of kegs at 1304 12th St., Bellingham, WA 98225. Filed April 12. BelleWood Distilling, BelleWood Acres Inc.; Dorene Martell Belisle and John Lynn Belisle applied for a license change to operate a craft distillery, sell beer/wine/spirits in a restaurant lounge, make wine sales for off-premises consumption, as well as make to-go sales of kegs at 6140 Guide Meridian Road, Lynden, WA 98264. Filed April 10. Fat Pie Pizza, Fat Pie Pizza LLC; Steve Rex Brinn, Kirsten D. Barron, Christine A. Carlin and Don Richard Carlin applied to sell beer/wine/ spirits in a restaurant lounge at 1015 Harris Ave., Bellingham, WA 98225. Filed April 10. The Loft at Latitude 48.5, Latitude Restaurants Bellingham Inc.; Jeffrey P. Holmes and Stefan Alexander Kolbeins applied to sell beer/ wine/spirits in a restaurant lounge and be a direct-shipment receiver (in WA only) at 1801 Roeder Ave., Suite 120, Bellingham, WA 98225. Filed April 5. Alexa’s Market; Emilio Colin and Alberta Gonzales applied to sell beer/wine in a grocery store at 102 Jackson St., Nooksack, WA 98276. Filed April 4. JJ’s In And Out, Sajjan Inc.; Sanjay Chanan and Nirmal Chanan applied for a license to sell beer/wine and growlers in a specialty

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BBJToday.com shop at 2019 Harris Ave., Bellingham, WA 98225. Filed April 2. Good Burger, Good Burger LLC; Matthew Trott, Kristen L. Trott, David B. Trott and Miriam S. Trott applied for a license to sell beer/wine in a restaurant at 5687 3rd Ave., Ferndale, WA 98248. Filed April 2. Birch Bay Mini Mart; Mandeep Kaur applied for a license to sell beer/wine in a grocery store at 8101 Blaine Road, Blaine, WA 98230. Filed April 2. Fat Pie Pizza, Fat Pie Pizza LLC; Steve Rex Brinn, Kirsten D. Barron, Don Richard Carlin and Christine A. Carlin applied for a license to sell beer/wine/spirits in a restaurant lounge at 1212 11th St., Bellingham, WA 98225. Filed March 29. Pho & More, JS Gold Monkey, Inc.; Jim Won Soung applied to assume a license from Sang Ton Yi and Sun Mi Yi to sell beer/wine in a restaurant at 4285 Meridian St., Suite 102D, Bellingham, WA 98226. Filed March 28. Maple Falls Cafe, Maple Fall Inc.; Tiago Hassan applied to assume a license from Slide Mountain Bar & Grill, Timothy Scott Moore, to sell beer/wine/spirits in a restaurant lounge at 7471 Mount Baker Highway, Deming, WA 98226. Filed March 27. Homestead Golf & Country Club, Stephan Golf Inc.; Bradley Arthur Stephan Jr. and Kimberly Rae Stephan applied to assume a license from The Homestead Club Inc., to sell alcohol in a snack bar at 115 E. Homestead Blvd., Suite C, Lynden, WA 98264. Filed March 26. Hannegan Speedway, Mount Baker Motorcycle Club Inc.; Justin Bode, Brian Larcom, Michael Hurlbert and Katie Mount applied for a license change to sell alcohol in a sports entertainment facility at 4212 Hannegan Road, Bellingham, WA 98226. Filed March 22. RECENTLY APPROVED LICENSES Europa Foods at 3908 Meridian St., Suite 112, Bellingham, WA 98226, was approved to assume a license to sell beer/wine in a grocery store. Filed April 17. Vinostrology Wine Lounge & Merchant at 120 W. Holly St., Suite H, Bellingham, WA 98225, was approved to be a direct-shipment receiver (in WA only). Filed April 16. El Nopal Family Mexican Restaurant at 625 Cherry St., Sumas, WA 98295, was approved to sell beer/wine/spirits in a restaurant lounge. Filed April 9. Bellingham Bells Baseball Club at 1220 Orleans St., Bellingham, WA 98229, was approved for a license with added fees to sell alcohol in a sports entertainment facility. Filed April 8. Fred Meyer #667 at 1225 W. Bakerview Road, Bellingham, WA, 98226, was approved for a license change to be a direct-shipment receiver (in/out of WA). Filed April 5. Starvin’ Sam’s #5 at 2604 Meridian St., Bellingham, WA 98225, was approved for a license assumption to sell beer/wine in a grocery store. Filed March 25. DISCONTINUED LICENSES Lightcatcher Cafe at 202 Grand Ave. #B, Bellingham, WA 98225, had a license to sell beer/wine in a restaurant discontinued. Filed March 26.

BANKRUPTCIES CHAPTER 7 David John Blauvelt, case no. 13-13849-KAO. Filed April 26. Heather Kathleen Waterhouse and Brian Allen Waterhouse, case no. 13-13845-KAO. Filed April 26. Champlin R. Gaylord and Marie Gaylord, case no. 13-13834KAO. Filed April 26. Donna Mary Anderson, case no. 13-13828-KAO. Filed April 26. Victoria Lynette Leigh, case no. 12-13740-KAO. Filed April 24. Scott Christopher Smith and Kate Dewey Smith, case no. 13-13716-KAO. Filed April 24. David William Sovey, case no. 13-13721-KAO. Filed April 24. Natalie Lynn Berry, case no. 13-13699-KAO. Filed April 23. Robert Allen Parkerson, case no. 13-13697-KAO. Filed April 23. Summer LeAnne Giles, case no. 13-13694-KAO. Filed April 23. Michael David Fahey and Rachel Michelle Fahey, case no. 13-13692-KAO. Filed April 23. Fay Marie Brockoff, case no. 13-13690-KAO. Filed April 23. Sheryl Lynn Ulrich, case no. 13-13686-KAO. Filed April 23. Isidro Flores-Hernandez and Juana Flores, case no. 13-13633KAO. Filed April 22. Michael Reed Torfin and Judith Marie Torfin, case no. 13-13617-KAO. Filed April 19. Jose David Gonzalez, case no. 13-13608-KAO. Filed April 19. Eric Ryan Peterson, case no. 13-13589-KAO. Filed April 19. David Wayne Purkiss, case no. 13-13577-KAO. Filed April 19. Bryndel Marzan Callejo and Denise Ann Callejo, case no. 13-13569-KAO. Filed April 18. Kimberly Dawn Benjestorf, case no. 13-13527-KAO. Filed April 18. Paul Clifford Roberts and Dana Georgene Roberts, case no. 13-13526-KAO. Filed April 18. William Alexander Robertson and Janet Catherine Robertson, case no. 13-13523-KAO. Filed April 18. Danielle Rene Blackburn, case no. 13-13522-KAO. Filed April 18. Gail Carmichael, case no. 13-13490-KAO. Filed April 17. Tresa Leann Rogers, case no. 13-13479-KAO. Filed April 16. Holly J. Reed, case no. 13-13478-KAO. Filed April 16. Nathaniel Wray Dufour and Nalene Deanne Dufour, case no.

13-13466-KAO. Filed April 16. James Allen Brady, case no. 13-13464-KAO. Filed April 16. Debra Joi Echols, case no. 13-13462-KAO. Filed April 16. William Pettie Joyner Jr. and Anita Irene Joyner, case no. 13-13450-KAO. Filed April 16. Isela Medina, case no. 13-13438-KAO. Filed April 15. Haley Kristine Woods, case no. 13-13434-KAO. Filed April 15. Irene Madhulesh Ayala and Ricardo Angulo Ayala, case no. 13-13429-KAO. Filed April 15. Mariah Christine Fulbright, case no. 13-13336-KAO. Filed April 11. Margaret Beryl Cagle, case no. 13-13331-KAO. Filed April 11. Jessica Christine Kelton and William Robert Kelton Jr., case no. 13-13279-KAO. Filed April 10. Alexander David Travis, case no. 13-13269-KAO. Filed April 10. Andrew Marshall Cox and Myriah Cox, case no. 13-13267-KAO. Filed April 10. Courtney Alexander Hepworth and Sandra Renee Hepworth, case no. 13-13249-KAO. Filed April 9. Lynda Jean Pettit, case no. 13-13243-KAO. Filed April 9. Nicole Danielle Senter, case no. 13-13230-KAO. Filed April 9. Robert Wayne Fields and Nancy Lee Fields, case no. 13-13216KAO. Filed April 9. Jessi Jean Warren, case no. 13-13198-KAO. Filed April 8. Ann Michele Lindquist, case no. 13-13192-KAO. Filed April 8. Amy Marie Myers, case no. 13-13106-KAO. Filed April 5. Betty Joyce Torgerson, case no. 13-13099-KAO. Filed April 5. Royce Ryan Ednalino, case no. 13-13087-KAO. Filed April 4. Patricia Ann Watson, case no. 13-13045-KAO. Filed April 3. Tamara Dawn Winkley, case no. 13-13044-KAO. Filed April 3. Derrick J. Watson and Jennifer J. Watson, case no. 13-13034KAO. Filed April 3. Kelly O’Brien Miller, case no. 13-12992-KAO. Filed April 1. Michael John Owen, case no. 13-12982-KAO. Filed April 1. Elvin Rudolph DeShazer and Judith Lynn DeShazer, case no. 13-12971-KAO. Filed April 1. Rodney Gregg Anstett and Cory Janel Anstett, case no. 13-12969-KAO. Filed April 1. Jacob Daniel Webster, case no. 13-12880-KAO. Filed March 29. Nancy P. Stager, case no. 13-12851-KAO. Filed March 29. William Waldie Bowen and Danielle Rae Bowen, case no. 13-12812-KAO. Filed March 28. Ray John Gould and Sidsel Madaline Gould, case no. 13-12806KAO. Filed March 28. Jesus Alejandro Hurtado, case no. 13-12798-KAO. Filed March 28. CHAPTER 11 No cases reported. CHAPTER 13 Daniel Aaron Bennett and Carolyne Michele IngramBennett, case no. 13-13746-KAO. Filed April 24. Monte Lyn Nieuwendrop, case no. 13-13499-KAO. Filed April 17. Marlyn Z. Runge and Mary Linda Runge, case no. 13-13460KAO. Filed April 16. Kenneth Lee Kirkey, case no. 13-13347-KAO. Filed April 12. Debra Hahnel, case no. 13-13126-KAO. Filed April 5. Nancy Russell, case no. 13-13125-KAO. Filed April 5. Irina Vladimirovna Chernomorets, case no. 13-13057-KAO. Filed April 4. Gerrit Anker and Rosemary Alice Anker, case no. 13-12929-KAO. Filed March 30. Trevor Waith Cary, case no. 13-12773-KAO. Filed March 28. John Joseph Damon II and Thelma Elaine Damon, case no. 13-12771-KAO. Filed March 28.

TAX LIENS Van Zanten & Son LLC, Gary Van Zanten MBR, $5,457.05 in unpaid IRS taxes. Filed April 3. Peter P. Logrande, $3,816.93 in unpaid IRS taxes. Filed April 3. Robert L. Eastman and Luz E. Eastman, $11,539.59 in unpaid IRS taxes. Filed April 3. Century Mining U.S. Corp., $3,072.54 in unpaid IRS taxes. Filed March 29. Eric A. Weston and Tina Weston, $25,207.15 in unpaid IRS taxes. Filed March 29. Northwest Pro Concrete, $22,277.48 in unpaid IRS taxes. Filed March 29. Janice Vilkin Kessel and David B. Kessel, $8,498.63 in unpaid IRS taxes. Filed March 29. Direct Data Products, $8,897.98 in unpaid IRS taxes. Filed March 29. Scott R. Lemon, $1,225.74 in unpaid IRS taxes. Filed March 27. Dennis R. Wagner and Nancy Wagner, $18,882.91 in unpaid IRS taxes. Filed March 27. Michael L. Elmer, $104,451.19 in unpaid IRS taxes. Filed March 27.

Ken R. Shelley, $192.84 in unpaid IRS taxes. Filed March 20. Teresa M. Cruz, $4,193.10 in unpaid IRS taxes. Filed March 20. HB Hansen Construction, $30,394.30 in unpaid IRS taxes. Filed March 12. William S. Cummins, $61,856.10 in unpaid IRS taxes. Filed March 12. Hillco Contracting Inc., $760.40 in unpaid IRS taxes. Filed March 12. Bellingham Whatcom Radiator & Battery Inc., $17,677 in unpaid IRS taxes. Filed March 12. Harkness Contracting Inc., $944.57 in unpaid IRS taxes. Filed March 12.

JUDGMENTS Eufemio Rexcarl Colinares, $8,760.50 in unpaid Department of Revenue taxes. Filed April 24. Frederick E. Knutzen, $344.53 in unpaid Department of Labor & Industries taxes. Filed April 23. La Cantina Birch Bay LLC, $6,502.78 in unpaid Department of Labor & Industries taxes. Filed April 23. Rutledge Embroidery Corp., $9,534.50 in unpaid Department of Revenue taxes. Filed April 22. J&J Custom Construction LLC, $82,392.52 in unpaid Department of Revenue taxes. Filed April 22. Cheese Meats Beer, $850.84 in unpaid Department of Labor & Industries taxes. Filed April 22. Tiam Pies Inc., $3,547.73 in unpaid Department of Labor & Industries taxes. Filed April 22. Kelly A. Sullivan, $1,108.36 in unpaid Department of Labor & Industries taxes. Filed April 22. Forever Fit LLC, $1,852.24 in unpaid Department of Revenue taxes. Filed April 19. Everett M. Denton, $23,975.87 in unpaid Employment Security Department taxes. Filed April 19. Sandra Barbero, $8,004.32 in unpaid Employment Security Department taxes. Filed April 18. Don Eidemiller, $6,629.20 in unpaid Employment Security Department taxes. Filed April 18. William L. Vanwingerden, $7,072 in unpaid Employment Security Department taxes. Filed April 18. K. Gretchen Woody, $390.20 in unpaid Department of Labor & Industries taxes. Filed April 11. Pioneer Trucking Co., $1,887.83 in unpaid Department of Labor & Industries taxes. Filed April 11. Milt’s Pizza Place LLC, $1,572.77 in unpaid Department of Labor & Industries taxes. Filed April 11. Jason R. Pealatere, $1,402.90 in unpaid Department of Revenue taxes. Filed April 11. Alliance Properties 2000 LLC, $949 in unpaid Department of Labor & Industries taxes. Filed April 10. Laventure Group LLC, $1,070 in unpaid Department of Labor & Industries taxes. Filed April 10. Kalab Robert Aswegan, $1,070 in unpaid Department of Labor & Industries taxes. Filed April 10. Anatoly F. Kolesnikov, $555 in unpaid Department of Labor & Industries taxes. Filed April 10. Gabe 5 LLC dba Parkway Chevron LLC, $3,217.85 in unpaid Department of Labor & Industries taxes. Filed April 10. JKJ Inc., $528.54 in unpaid Department of Labor & Industries taxes. Filed April 10. Custom Concrete by Dave Johnson dba Custom Concrete Contracting, $3,418.15 in unpaid Department of Labor & Industries taxes. Filed April 10. B&B Paint Co. Inc., $10,300.47 in unpaid Department of Labor & Industries taxes. Filed April 10. Raindance Roofing Inc., $1,927.64 in unpaid Department of Labor & Industries taxes. Filed April 10. Cicchitti’s Pizza Inc., $2,218.22 in unpaid Department of Labor & Industries taxes. Filed April 10. Mark A. Astengo, $909.37 in unpaid Department of Revenue taxes. Filed April 10. Captain Jack Jr.’s Family Entertainment Center, $5,659.82 in unpaid Department of Revenue taxes. Filed April 10. K2B LLC, $1,696.03 in unpaid Department of Revenue taxes. Filed April 10. Newbatts Fashion LLC, $929.32 in unpaid Department of Revenue taxes. Filed April 10. Namaste Ventures Inc., $2,056.36 in unpaid Department of Revenue taxes. Filed April 10. Lincoln Green Nursery LLC, $2,364.29 in unpaid Department of Revenue taxes. Filed April 3. Bellingham Whatcom Radiator & Battery Repair, $1,601.76 in unpaid Department of Revenue taxes. Filed April 3. Stauffer Stains LLC, $1,065.36 in unpaid Department of Revenue taxes. Filed April 3. Cash Corp., $6,061.33 in unpaid Department of Revenue taxes. Filed April 3. Dee’s Country Diner LLC, $22,041.20 in unpaid Department of Revenue taxes. Filed April 3.


May 2013

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BBJToday.com

Ask Red Rokk: Do you have a good example of a local small business that is effectively competing against national online and “big box” retailers? Guest coMMENTARY by

ED MUNRO

Red Rokk Interactive

T

o answer this question, the Red Rokk team reached out to a local business with an e-commerce website to discover its keys to success. We chose Hardware Sales, a family-owned retail outlet began as a dynamite supplier in 1962, and has grown to become one of Whatcom County’s most successful retailers. Through customer loyalty and diversifying their offerings into rentals and office furniture, the McClellan family’s Hardware Sales retail outlets prospered and successfully competed when The Home Depot and Lowe’s arrived on the scene by focusing on reliable and knowledgeable customer service, as well as stocking the right selection of products. By late 2008, when the economy went into recession, Hardware Sales remained in good shape because of its business diversification and because of its ongoing commitment to superior service. Today, the e-commerce business for Hardware Sales resides in a big warehouse tucked away in Ferndale, north of its Bellingham retail location. Steve Douge has managed Hardware Sales online sales as its e-commerce director since 2007 (in fact, it was his online hardware business the McClellan family bought out). He runs a 13-person operation that expertly manages, tracks and fulfills all the online orders.

Meeting “big-box” competition online Douge credited his online success to his

team’s quick turnaround and the ability to offer products across three online platforms that include hardwaresales.com as well as e-Bay and Amazon.com. “We’ve found that customers have certain website preferences when shopping for tools and hardware items, so the ability to offer a wide selection of our products on sites like Amazon and e-Bay in addition to our own website has been a big part of our success,” Douge said. Although they may never admit it, the big box retailers actually have little incentive to sell products online. The reason, as reported in Marketwatch, is that “beyond generating additional sales, the company (The Home Depot) also wants to use the Internet as a marketing medium to help build customer loyalty and feed store sales.” Also, many customers now use their smartphones to go out “showrooming,” where they will view products on store shelves, then cross-reference them with online competitor’s prices before making a purchase.

Making checkouts fast and easy For any e-commerce website to generate consistent traffic that converts to sales, certain elements are required. From a layout and functionality perspective, customers expect an e-commerce website to include easy navigation with high-resolution product pictures (ones that can increase in size and be seen from different angles). They also want to be able to find all product-related information with an easy-to-read shopping cart button. Overall, providing a fast and convenient checkout process involving the fewest clicks possible while always displaying the total price is crucial.

Other keys to success The design and ease-of-flow across an e-commerce website is just as important as search engine optimization, also known as SEO, that makes sure people find the site. In addition, many e-marketers are now able to see who is visiting their websites, where they can spot abandoned shopping carts and quickly follow-up with a friendly email. The ability to track and view how customers use a website actually works. Studies show that more customers return and complete their sale when reminded by a reminder email. Being prepared for sales growth is crucial for every e-commerce marketer. The importance of being able to fulfill orders in a timely manner cannot be understated. In fact it’s the other half of Douge’s operation, and probably the area that sets HardwareSales.com apart from its competitors. Inside the 33,000 square-foot warehouse, there are 10 long aisles with 26-foot-high racks holding more than 8,000 items at any given time. “The key to our ongoing success is the Lean program which has increased our overall productivity tremendously,” Douge said.

The importance of “Lean” Lean is the increasingly popular efficiency program that streamlines how people organize their workspace, whether it’s a warehouse, manufacturing floor or an office space. Saving time and being well-organized— by using what’s known as the “5S program,” sorting, straightening, cleaning (sweeping), standardizing and sustaining the process—

increases efficiency dramatically when the system is implemented and maintained correctly. It’s also about staff members embracing a new mentality where the idea of constantly focusing on ways to improve becomes the norm.

Listen to your employees While touring the warehouse amidst a swirl of activity, Douge pointed to a pair of pallets used for stacking outgoing packages. “In addition to our Lean program, we have often found that it’s the little things that can have the biggest impact,” he said. “For instance, by simply color-coding these two pallets (purple for FedEx and yellow for DHL) we have saved time and reduced human error by a significant margin. And the beauty of it is, this idea came from one of our staff members.” The takeaway: Always be open to listening to what employees have to say. Their ideas count! In addition to Lean procedures in the warehouse, Douge’s team has also phased in the same program for the front office by arranging desks to save space, fostering collaboration and cutting out a lot of physical movement. When added together, these kinds of changes under the Lean program improve Hardware Sales’ ability to serve its customers and effectively compete against any online or brick-and-mortar competitor. Red Rokk Interactive, a digital-marketing firm based in Bellingham, is online at www. redrokk.com.

STAY CONNECTED ONLINE WITH THE BELLINGHAM BUSINESS JOURNAL Visit BBJToday. com and sign up for our free daily email to have the latest business news sent to your inbox every morning. Track breaking news updates by finding us: On Twitter (@BBJToday) On Facebook (BBJ Today) On Google + (Bellingham Business Journal)


May 2013

BBJToday.com

MIND THE TRAPS

When estate tax crosses the border

Tips and best practices to reduce “networking anxieties”

Guest coMMENTARY by

PATTI ROWLSON

of Whatcom County, which promotes construction), and there are networking groups made up of a variety of businesses (such as the Bellingham/Whatcom Chamber of Commerce and Industry). Choose groups to participate in based on target markets. If a company builds widgets that are useful to people in the construction industry, then networking at the BIAWC should be considered. Personal networking styles should also be considered as a way to ease networking anxieties. There are large, structured events such as monthly networking breakfasts, and there are also casual, no-host meet-ups at bars, restaurants and coffee shops. If the company representative loves large groups and the idea of sharing business news via a oneminute “elevator speech,” then give structured events a try. If the rep is more comfy with less formal conversation at smaller group gatherings, try casual meet-ups. Once a networking representative is selected and the right events are identified, it’s time to attend a few meetings. Make sure the basics are covered like having a professional name tag and plenty of business cards on hand. Then keep these five networking tips and best practices in mind: 1. On the day of the event, mentally prepare by identifying three things: a product or service to promote, an area of the business that is doing well, and an answer to the “What are you working on today?” question that many people ask as an ice breaker. Planning ahead in these areas will greatly ease anxieties. 2. Ditch old-school networking tactics that project a “What’s in it for me?” vibe. People catch on quickly when someone is just networking for a quick sale. Refrain from using hard sell methods.

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Instead, use new-school methods that project a “How can I help you?” attitude. Listen to people’s needs, provide information and work to build a relationship; be a solution provider. 3. Smile and stay positive. Networking events are not the place for “Debbie Downers.” Refrain from complaining about the economy, lack of business or coworkers. Smile often and keep conversations light and positive. 4. Find one person to “rescue.” Look for a person that is standing or sitting alone and be the person that rescues them. Start a conversation, invite them into a group or introduce them to others. It feels great to help others be successful at networking. 5. Value everyone. The beauty of networking is that people never know when or where they will meet someone who will influence their business (or personal life). Sincerely valuing everyone, from high level CEOs to entry-level employees, is important. Lastly, here’s a word about communicating and following up with people after a networking event: Adding new contacts to a company’s newsletter or email distribution list without permission is spam. Even though the info being shared is believed to be really cool and totally valuable to everyone who will ever read it, it is still spam if permission is not given first. Instead, use the information found on business cards to connect and engage with companies on social media sites like LinkedIn, Facebook and Twitter. Use those tools to keep conversations going—until the next time you meet at a networking event.

Guest commentary by Stephanie Hathaway PR Consulting Services International Tax Partner, Moss Adams LLP The estate tax in the United States is well known, but it’s Networking at business events complex, making it difficult for some individuals to know can be a fun and effective way whether, and to what degree, it might apply to them. for local companies to build their This is particularly true when international factors are involved. brand. Connecting with others Over certain thresholds, the estate tax is applicable to U.S. in-person can educate consumers, citizens, regardless of residency; U.S. residents, regardless of build trusting relationships and citizenship; and foreign individuals who own “U.S. situs” assets even generate referrals. Those are (see below). Many states, including Washington, also have all good things, right? separate estate-tax regimes. The flip side is that networkSo how does this break down? ing can make some people feel nervous, anxious and stressed. The gross value of worldwide assets owned or controlled by Those feelings are not so good. a U.S. citizen or resident (a U.S. estate) is subject to estateThis month’s article focuses on tax reporting if the value exceeds $5.25 million (for 2013). tips and best practices that comAdministrators of estates in Washington must also file a state estate-tax return if gross assets exceed $2 million. panies (or individuals) can use to improve their networking success. A U.S. estate is allowed deductions and exclusions that may First and foremost, the goal of reduce or eliminate the estate-tax liability. These are for items networking is to build mutually such as legal and accounting fees, estate administration beneficial relationships over time, expenses, costs to maintain estate assets, funeral and so start by making sure the right burial expenses, debts and mortgages, losses during estate person is selected as a company administration, bequests to qualified charitable organizations representative. Choose someone and transfers to a spouse who is a U.S. citizen. If the spouse is not a citizen, tax-free transfers are limited under both federal who will be with the company for and state laws, making proper planning even more important. an extended period of time; try to avoid using transitional employNon-U.S. estates that include more than $60,000 of U.S. situs ees in high turnover positions. assets are required to file an estate tax return. However, there Business owners and key memare tax treaties that may provide relief for estates subject to tax bers of the management team in more than one country. can be great networkers if they For example, smaller Canadian estates—those with worldwide are friendly, somewhat confident gross assets of $1.2 million (U.S.) or less—are exempt as long as people. These people will have the U.S. assets are neither real property nor business property. the knowledge necessary to talk To qualify for the exemption, the estate must file a U.S. estateabout products and services, and tax return and claim the treaty benefit. they are often passionate about Executors of non-U.S. estates with U.S. situs assets are what the company offers. sometimes surprised to learn that a U.S. estate-tax return is If owners happen to be shy and required. This requirement is often discovered after the due introverted by nature, then indate for filing the return, at which point additional interest and person networking will be a chalpenalties may be imposed and the estate may no longer be lenge. Choose a more extroverted eligible to make certain advantageous tax elections. company representative or focus While determining situs for specific trust or partnership assets marketing efforts in other areas. and debt obligations requires a detailed fact pattern analysis, Next, consider what type of the most common U.S. situs assets include: networking groups to participate - Real estate in the United States in based on target audiences. There are industry-related groups - Shares of stock issued by U.S. corporations Visit Patti Rowlson online at www. made up of many businesses suppattirowlson.com. - Tangible personal property, including checks and cash, porting one industry (such as the physically located in the United States Building Industry Association - Debt obligations issued by a U.S. entity or individual - U.S. bank accounts, if connected to a U.S. trade or business - Interest in some partnerships, including some LLCs, if the partnership owns U.S. real property or business property - Most U.S. retirement plans and benefits - U.S. assets held by a non-U.S. corporation, if the ultimate non-U.S. shareholder previously transferred the assets to the corporation or fails to respect the corporation’s separate dominion and control over the assets - Assets owned by trusts, if the assets were U.S. situs The WA Foreclosure Fairness Act gives either at the decedent’s date of death or when they were originally contributed to the trust (even if homeowners tools. Mediation with teeth: those assets were later sold and replaced with nonthe “good faith” requirement. U.S. assets) - Estate tax rules in the United States are complex, • Monthly Payment Reduction particularly for individuals with international situa• Interest Rate Reduction tions. With proactive planning, these individuals can • Extension of the Term quantify their U.S. estate-tax exposure, identify and implement strategies to reduce that exposure, and • Principal Reduction structure future activities with tax efficiency in mind. James R. Doran-Attorney at Law Stephanie Hathaway can be contacted at 360-676jim@doranlegal.com • www.doranlegal.com • (360) 393-9506 1920 or stephanie.hathaway@mossadams.com.

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THE FUTURE OF BUSINESS

May 2013

The 2013 Future of Business Conference, an annual event organized by the nonprofit Sustainable Connections, focused this year on local companies that have managed to hold strong through a difficult economy while still maintaing sustainable business practices. Guest speakers included Scott Jenkins, vice president of operations for the Seattle Mariners, and A-P Hurd, vice president of Touchstone Corp. The Bellingham Business Journal was a media sponsor for the event. (Clockwise from top right) Whatcom County Executive Jack Louws, center, speaking during a local government leaders panel at the conference’s opening reception. Louws spoke briefly about county government’s use of lean-management practices. With Louws is Derek Long, Sustainable Connections’ executive director, left, and Rob Fix, executive director for the Port of Bellingham. Bellingham Mayor Kelli Linville was also scheduled to appear but couldn’t attend due to illness. Bill Taylor, owner of Taylor Shellfish Farms, gave the conference’s opening keynote speech. The Future of Business conference’s opening reception was held in the Depot Market Square in downtown Bellingham. Derek Long speaking during the local government leaders panel. EVAN MARCZYNSKI PHOTOS | THE BELLINGHAM BUSINESS JOURNAL

SKILL GAP | FROM 1

Demand for science and technology education expected to increase finding work remains a problem for many people. Whatcom County’s most recent estimate from the state Employment Security Department put its jobless rate at 7.9 percent. Employers in the high-tech industry, a growing sector in Whatcom County, reported the highest difficulty compared to other industries. In the high-tech field, 51 percent of employers surveyed across the state reported difficulty filling vacant positions at their companies. Workforce and labor analysts say a continuing “skill gap” between employers’ needs and workers’ skills poses a threat to the state’s business climate and economy. It also makes it more difficult for people out of work, or those preparing to enter or reenter the workforce, to find good-paying jobs. This skill gap is apparent in the technology field in Whatcom County, said Mark Knittel, chair of the board of directors for the Technology Alliance Group, which is more commonly known by its acronym, TAG. But local tech employers’ difficulties finding good hires aren’t based entirely on

a dearth of qualified applicants, he added. A skilled labor pool will be necessary if “There is a general shortage across the Whatcom County is to continue its develboard that isn’t localized to here,” said opment over the past decade into a strong Knittel, who also owns a local computer hub for tech business. service company called Ovation Technical Whatcom has the seventh highest numServices (previously a Data Doctors franber of technology-related jobs in Washingchise). ton state, according to TAG. Three WhatWhatcom County’s smaller market size, com County tech firms, Toolhouse Design when compared with larger metro areas Company, Ryzex and Logos Bible Software, with strong tech sectors such as Seattle or have ranked among the fastest-growing Vancouver, British Columbia, also plays a private firms in the country. role in makBob ing it more Pritchett, challenging president We’ll look at your resume, but it really to recruit and CEO of doesn’t matter. We care about proven skilled Logos Bible and demonstratable skills that are workers, Software, Knittel said. related to the job.” BellingEducators —Bob Pritchett, president and CEO of Logos ham’s largin Bellingest software Bible Software ham and developer Whatcom in terms of County employees, have plans to address a projected lack of said it is challenging for his company to college graduates in science, technology, find qualified workers. Expanding his team engineering and math, a conglomeration of software developers has been particuof subjects referred to as “STEM,” which larly challenging, Pritchett said. is in high demand in the technology Logos, an electronic publisher of biblical field. These plans include new initiatives references and scholarly works, is ready to to engage students at a younger age and bring on a significant number of new hires. encourage them to pursue STEM-related The firm has dozens of open positions interests and education. listed on its website. Along with jobs in Analysts predict that by 2018, Washingsoftware development, there are openings ton could have the third largest demand in marketing, sales, graphic design and for STEM-related jobs in the entire nation, video, along with additional openings in according to a 2012 annual report from Logos’ internship program. Whatcom Community College. The company has grown rapidly since

relocated to Bellingham in 2002 from Oak Harbor, Wash., with around 40 employees. Today, Logo employs more than 300 people. Pritchett said Logos looks for the job applicants who can prove they have the skills needed to be a successful addition to the firm. While credentials and education are important, occupation-specific skills are generally given more weight, he said. “We’ll look at your resume, but it really doesn’t matter,” Pritchett said. “We care about proven and demonstrable skills that are related to the job.” For other companies, it can also be difficult to find applicants with the right attitude toward work. Back at the job fair in Fox Hall, Tim Dyck, a developer and team lead at DIS Corp. in Bellingham, was advertising two job openings on the company’s mobiletechnologies development team. Dyck said he sees a lot of applicants— including many fresh out of college—who lack a strong work ethic and critical-thinking skills necessary to make them effective employees. He added that at times, there’s almost a sense that younger applicants feel as if they are “owed” a job. “For the younger people we’ve been interviewing, there’s this kind of indebtedness,” Dyck said. Still, he added, for skilled applicants looking for work in the area, there are jobs available.


May 2013

PEACEHEALTH | FROM 1

BBJToday.com

anticipated. “We were unable to create a model within that framework that was simple enough that would end up delivering that level of integration and level of efficiencies and services,” Adler said. “[But] what we found in this process, among many things, is that PeaceHealth and CHI are very compatible organizations.” The joint venture had its critics. increasingly expensive health care bills. Yet The American Civil Liberties Union in at PeaceHealth, developing such strategic Washington state challenged the affiliation partnerships, at least on a grand scale, is between PeaceHealth and CHI, expressing proving difficult. concern that the partnership between the The integrated system would have religiously-affiliated organizations could combined seven CHI hospitals with nine restrict legal access to reproductive care, belonging to PeaceHealth and would have birth control and abortion services, and included nearly 26,000 employees, about certain end-of-life care options. 950 doctors and a variety of other health Other detractors also feared that care facilities and operations in Washingpatients’ freedom of choice could suffer ton, Oregon and Alaska. It was expected depending on how the two organizations to generate nearly $4 billion in annual aligned their adherence to the Ethical and revenue. Religious Directives for Catholic Health PeaceHealth operates St. Joseph Medical Care Services. CHI was perceived by some Center in Bellingham, which is Whatcom opponents of the joint venture as being County’s only hospital, and is the area’s more restrictive than PeaceHealth regarddominant health care provider. The orgaing reproductive and end-of-life services. nization is also the county’s PeaceHealth spokesperlargest employer, with more son Jenny Ulum said reli“I would by no than 2,700 employees. gious values played no role In suspending the disin the decision to suspend means take it as cussions rather than endjoint venture talks. Adler a sign that these ing them, PeaceHealth said the same, adding that kinds of large and CHI, an Englewood, the bulk of the negotiaColo.-based provider that consolidations are tions centered on business operates 55 hospitals in 17 matters, not philosophical infeasible.” states, left open the possiones. —Larry Thompson, bility of future partnership. The partnership between Both will “remain actively PeaceHealth and CHI is executive director engaged in exploring other stalled for now. of the Whatcom opportunities to work But Adler said PeaceAlliance for Health together and strengthen Health will continue seektheir respective ministries ing ways to integrate its Advancement in the Pacific Northwest,” health care financing and according to a joint press delivery systems. “It is the release issued on April 3. While the developments The negotiations stalled with PeaceHealth and CHI fragmentation over disagreements on provide a window into that lives within how the organizations the complexities of major health care across restructuring within the would share a wide array of administrative services, health care world, industry all the providers Michael Romano, a CHI said the failure of that makes this so experts spokesperson, said via the joint venture does not difficult.” email. mean that such partnerOne sticking point ships are impossible. —Peter Adler, involved the integrated sysLarry Thompson, execuchief strategist for tem’s combined purchasing tive director of the nonPeaceHealth power. profit Whatcom Alliance The agreement would for Health Advancement, have created a 50-50 joint said all signs in the indusventure between all of the facilities and ser- try point toward more integration, not less, vices run by PeaceHealth and CHI’s opera- among providers. tions in the Pacific Northwest—CHI runs “I would by no means take it as a sign the Franciscan Health System in Tacoma that these kinds of large consolidations are and has affiliations with two additional infeasible,” he said. medical centers in the Puget Sound area. Thompson said PeaceHealth will likely Fearing the loss of bulk purchasing have other opportunities to gain the size power from its facilities in the region— and scale it sought by combining with which make up about 20 percent of CHI’s CHI, including forming partnerships and total operations—CHI executives sought new operating agreements with smaller to take the lead purchasing role in the joint providers around the region. venture in order to protect supply prices Such plans are already forming at the St. at its other hospitals around the country. Joseph Medical Center, with new agreeBut an agreement with PeaceHealth in that ments between PeaceHealth and public regard could not be reached. hospital districts in San Juan and Skagit Both organizations also struggled to counties. meld their information technology systems PeaceHealth could also have the option and their revenue cycles. Romano said of restructuring the facilities it already neither group felt it could develop an intemanages, said Thompson, who has spent grated model that would provide desired more than three decades in the health care benefits and serve the best interest of its and medical world. physicians, employees and patients. That might include creating a “hub and Adler said the negotiation process spoke” model where administrative funcrevealed that while PeaceHealth and CHI tions are concentrated into larger regional share similar values and care directives, facilities, which are placed at the center of the joint-venture presented more complinetworks surrounded by smaller medical cations than either organization initially offices, he added.

PeaceHealth, CHI remain committed to exploring future health partnerships

PeaceHealth delays takeover of Skagit’s United General Hospital 30-year operating agreement with Sedro-Woolley hospital now set to begin July 1, 2014

PeaceHealth St. Joseph Medical Center and United General Hospital in SedroWoolley have agreed to extend the date in which PeaceHealth will take over leasing and operation of the Skagit County medical center. Both parties have agreed to implement a 30-year operating agreement no later than July 1, 2014. A previous agreement set the deadline for July 1 of this year. The extended deadline was necessary due to procedural delays with state-level regulators and the need for more time to fully integrate the operations of the two organizations, according to PeaceHealth. United General and PeaceHealth are currently working together under an interim-services agreement that will be expanded as of July 1, 2013. The long-term deal was approved by commissioners of the Public Hospital District 304 in Skagit County last fall. The United General facility, which would still be owned by the Public Hospital District, would be renamed the PeaceHealth United General Medical Center. “We have made enormous strides towards this alliance and we will continue to do so,” Greg Reed, CEO of United General Hospital. “Leaders of both organizations are committed to a seamless and successful transition. We simply need more

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time to minimize any disruption to our services.” PeaceHealth St. Joseph CEO Nancy Steiger also said, in a statement, that the relationship between both organizations remains strong. —BBJ Staff Reports

Family Care Network plans affiliation in Mt. Vernon Family Care Network, the largest provider of primary care medical services in Whatcom County, has reached a preliminary agreement with North Cascade Family Physicians in Mount Vernon for a new affiliation that could be complete by the end of the year. Both organizations are now working to harmonize their systems for medical record keeping, clinical care, contracting and billing, according to a press release. When the alliance is completed, owner physicians at North Cascade Family Physicians will become physician partners with FCN, and part of the shared governance of Family Care Network.

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Bellingham Business Journal, May 06, 2013  

May 06, 2013 edition of the Bellingham Business Journal

Bellingham Business Journal, May 06, 2013  

May 06, 2013 edition of the Bellingham Business Journal