Business Pulse July | August 2023

Savi Loan Team

Drew Wilkens

Senior Vice President Strategic Projects

NMLS #2117896

P 360.739.5967

dwilkens@savibank.com

Christian Christensen Vice President Branch Manager NMLS #1082785

P 360.685.0080

cchristensen@savibank.com

Scott Louia

Vice President

Commercial Lending Officer

P 360.404.5042 slouia@savibank.com

Meet the Bellingham Loan Team. Our mission is to bring long-term success to our clients and this community. It’s who we are, down to the core. It's why we are proud of our Bellingham loan team with their in-depth experience and passion for this community. The perfect group to walk you through the often-confusing world of lending. Like a good trail guide or indispensable Sherpa, using knowledge and expertise, they will take you where you want to go.

Seana Olberg

Vice President

SBA/USDA Business Development Officer

P 360.820.8375 solberg@savibank.com

Trevis Seimears

Assistant Vice President Loan Officer

NMLS #745555

P 360.685.0080

tseimears@savibank.com

Ashley Walker

Senior Mortgage Banker NMLS #934856 P 360.404.5040 awalker@savibank.com

Our loan officers strive to put you in the right loan for your needs and your budget. And because we’re a locally-based bank, we know the importance of strong communities that we all help create.

Darrell Elke Senior Mortgage Banker NMLS #422230

C 360.922.8919 P 360.404.5044 delke@savibank.com

Senior Mortgage Banker NMLS #91667

C 360.303.6905

mnaselow@savibank.com

Jennifer

Mortgage Loan Originator NMLS #1445860 P 360.961.7101 jhebert@savibank.com

When you need a trusted advisor that believes in doing what’s right, team up with the loan officers at SaviBank Together, we’ll make our communities even stronger.

Michael Naselow

Hebert

VOL. 48 | NO. 4

PUBLISHER Whatcom Business Alliance

EXECUTIVE DIRECTOR Barbara Chase

EDITOR

CONTRIBUTING

Matthew Anderson, Bellingham PR & Communications

Elisa Claassen

WRITERS Heather Lea

Cheryl Stritzel McCarthy

Tara Gilligan Reimer

GUEST COLUMNISTS Jeffrey Jansen

Jennifer Noveck

Dann Mead Smith

ART DIRECTOR

Whitney Pearce

PHOTOGRAPHY Sattva Photo

Sam Kristofferson

Cover Photo by Sattva Photo

WBA BOARD OF DIRECTORS:

BOARD CHAIR: Pam Brady, Director NW Gov’t & Public Affairs, bp Cherry Point

EXECUTIVE COMMITTEE: John Huntley, President/ CEO, Mills Electric Inc.; Doug Thomas, President/CEO, Bellingham Cold Storage; Josh Turrell, Partner, Larson Gross PLLC; Josh Wright, VP/Broker, Bell-Anderson Insurance

BOARD OF DIRECTORS: Tyler Byrd, CEO, Red Rokk Interactive; Jane Carten, President, Saturna Capital; Andy Enfield, Vice President, Enfield Farms; Bryant Engebretson, Managing Principal, Tradewinds Capital; Jon Ensch, Commercial Banking Officer, Peoples Bank; Mitch Faber, Partner, Adelstein Sharpe & Serka, Jim Haupt, Hotel Bellwether; Sandy Keathley, Former Owner, K & K Industries; Tony Larson, Founder, WBA; Sarah Rothenbuhler, Owner/CEO, Birch Equipment; Patrick Schuppert, Commercial Banking Relationship Manager, Wells Fargo; Carryn Vande Griend, Government Affairs Representative, PSE; Billy VanZanten, CEO, Western Refinery Services

For editorial comments and suggestions, write info@whatcombusinessalliance.com. The magazine is published bimonthly at 1225 Roeder Ave., Ste. 108, Bellingham WA 98225. (360) 746-0418. Yearly subscription rate is $25 (US). For digital subscription, visit businesspulse.com. Entire contents copyrighted ©2023 Business Pulse. All rights reserved.

POSTMASTER: Send address changes to Business Pulse, 2950 Newmarket St., #101-173, Bellingham WA 98226

Your local business news brought to you by WHATCOM BUSINESS ALLIANCE

IN THIS ISSUE

13 WATER ADJUDICATION COMES TO WHATCOM COUNTY

Three experts share their take on this critical issue.

22 CAMP SATURNA BRINGS LODGING & EVENTS TO CAMP BLACK MOUNTAIN

Saturna makes a commitment by purchasing and renovating the former Boy Scout camp to give it new life.

This year’s impressive list of Whatcom County’s TOP 100 (based on 2022 sales) private companies shows impressive growth in our local economy.

39 PERSONALLY SPEAKING

The Lighthouse Mission has a credible record of helping those in homelessness recover and engage in the community. Meet Hans ErchingerDavis, president and CEO.

COLUMNS

20 Building resilience will require attention to housing, child care, emergency preparedness, diversification and leadership

47 The countdown to the collection of the new WA Cares payroll tax is on

51 Building generational weath with a SBA 7(a) loan

The Top 100 list celebrates what makes this county special

One of my favorite issues of the year is our Top 100 Businesses in Whatcom County. We celebrate this popular feature with an inspiring list of amazing companies and leaders right here in our backyard.

Although these businesses generate billions of dollars in sales, the Annual Top 100 is not just a list of the most profitable companies. It also celebrates what makes our county special; the tenacity, innovation and resilience of these companies show exactly what we are made of. Much of their success is continuously reinvested back into our community.

The high cost of living is putting a pinch on family budgets, and a significant rise in housing costs over the past year has created hardships for many in our region. Gas prices in Washington just surpassed California, as the burdensome carbon tax caused prices at the pump to increase by nearly 50 cents per gallon.

Beginning in July, workers in Washington will take home less pay due to the onerous Long Term Care Act insurance premium deduction to pay for WA Cares. The Legislature adjourned the session without addressing major issues with the Act and, despite a coalition of groups such as Whatcom Business Alliance pushing to make fixing this flawed program a priority, the program will take 0.58% of wages starting July 1.

The battle over water rights begins this year, and millions of dollars will be spent by property owners trying to secure water claims in the Water Resource Inventory Area. Cheryl Stritzel McCarthy digs deep into what this means for our farms, our fish and our future. The WBA will be following this battle very closely.

Despite the obstacles, many companies in Whatcom County have thrived and those companies are featured on this list. Others receive specific attention in this month’s features. Heather Lea profiles Bellingham Wind Works,

a small business working hard to bring music to our ears. Elisa Claassen profiles the good work one of our favorite local businesses is doing at the renovated Camp Saturna on Silver Lake.

This issue also includes important legislative wins and losses resulting from the recent session. Dann Mead Smith summarizes the success and failure of bills we were closely following.

Read on to see how your legislators voted on these important issues. How do we plan for economic resilience? Jennifer Noveck takes us through the process of what your business and industry can do to build resilience. In our Personally Speaking feature with Hans Erchinger-Davis, Tara Gilligan Reimer delves into the plan for the new Lighthouse Mission structure to bring place and promise and help people out of the homelessness cycle.

The Annual Top 100 is always a great source of pride for Business Pulse and the group of people who pull this issue together. I want to thank our team,

Individual memberships now just $100/yr!

if you believe business success is essential to community prosperity.

US

the readers, advertisers and contribu tors who make this magazine possible. Together we can leverage resources, share knowledge and best practices, and help businesses and communities adapt and thrive in the face of change. Enjoy our beautiful region this sum mer, and check out our WBA website for a list of upcoming events!

Barbara Chase, Executive Director Whatcom Business Alliance

JULY 14

WBA Member Appreciation Night

Bellingham Bells Game

AUG 18

Presidents ClubSan Juan Islands Cruise

OCT 19

Leaders of Industry Issues Forum Hotel Bellwether

DEC 6

Economic Forecast Breakfast

Bellingham Golf & Country Club

For more information, go to: whatcombusinessalliance.com

INDUSTRIAL CONSTRUCTION HOME IMPROVEMENT

Home to the 76th largest equipment rental and sales fleet in the USA!

Salish Wealth Management adds client service associate

Salish Wealth Management recently welcomed Kristi Huizenga as a new client service associate. She brings more than six years’ experience to the team and will be working alongside Joy Hume and Dan McCorkle.

For more information, visit https:// www.salishwm.com/.

PeaceHealth Medical Group welcomes new surgeon

PeaceHealth has welcomed Dr. Michael Higgins to its general surgery team in Bellingham. A well-respected surgeon in private practice in Bellingham for more than 10 years, Higgins began seeing patients at PeaceHealth on May 11.

“My goal as a surgeon is to help my patients make informed choices about their health,” said Higgins of his practice philosophy. “Surgery is an option, and I believe that the care of patients occurs before, during and after surgery. I like to emphasize trust, communication and continuity of care.”

Higgins completed his medical degree at the University of Washington School of Medicine in Seattle, and he completed a fellowship in laparoscopic surgery in the Franciscan Health System West. He also has a bachelor’s degree in mathematics from the United States Military Academy in West Point, New York, and holds a master’s degree in applied mathematics from

the University of Washington.

Higgins is a fellow of the American College of Surgeons, a member of the Society of American Gastrointestinal and Endoscopic Surgeons and a member of the Whatcom County and Washington state medical associations.

Learn more at https://www.peacehealth.org/care-providers/michael-shiggins-md.

All American Marine hires new business development manager

All American Marine has announced the appointment of Daniel Zech as the organization’s business development manager. Zech, a Bellingham native, sailed on vessels from French Polynesia to the Caribbean for over a decade. His maritime career took him to the Charter House Yacht Club in the U.S. Virgin Islands, where he managed day-to-day operations for a charter fleet of 28 catamarans and monohulls for several years. His experience also includes managing and captaining a number of commercial boats on a variety of missions while holding his 500-ton U.S. Coast Guard Master License and endorsements. His most recent experience had him presiding over a robust sales pipeline during his tenure at Electronics Value Recovery Inc., where he was the vice president of business development.

Zech’s new role as business devel-

opment manager at All American Marine will focus on expanding the company’s presence in the North American and international maritime markets. He will oversee the sales pipeline of new customers and past operators looking to add to their fleets.

Visit https://www.allamericanmarine.com/dzech-bizdev-mgr/ for more information.

Twedt recognized as top financial adviser

Northwestern Mutual, a leading financial security company, has honored Paul Twedt, a Bellingham-based wealth management adviser, for his 30-year commitment and drive to help families and businesses plan for and achieve financial security. As part of this recognition, Twedt has been inducted into the company’s elite membership, the 2023 Forum Group.

Twedt is affiliated with Aria Financial Services, part of Northwestern Mutual based in Milwaukee, Wisconsin, and this is the first time that he has received the Forum Group honor. Forum award qualifiers represent the top segment of Northwestern Mutual’s industry-leading financial representatives; just 5% of the 6,000-plus financial representatives receive this recognition.

Learn more about Northwestern Mutual and Aria Financial Services at https://afs.nm.com/.

Daniel Zech

Dr. Michael Higgins

Paul Twedt

Bruce Wiseman

Kristi Huizenga Raymond Faber

Business Development Resources marks 25th anniversary Business Development Resources, the training and business coaching authority for home services industry professionals, has celebrated 25 years of driving profit and growth for HVAC, plumbing and electrical contractors and distributors.

“We’re incredibly proud of BDR’s impact on the home services industry over the last quarter of a century and the relationships we’ve built with the hard-working men and women who are the foundation of our industry,” said Bruce Wiseman, founder and president of BDR. “Our passion is helping contractors, distributors and their teams identify their goals, make a plan for success and see their companies thrive and grow. Since we founded the company, thousands of industry professionals have benefitted from BDR’s innovative training and coaching programs. We’re committed to advancing the field forward the next 25 years.”

Inspired by a shared enthusiasm for building and coaching exceptional teams, Wiseman and Barry Burnett founded BDR in 1998 to equip service business owners with critical knowledge and skills for driving profit and growth. Wiseman credits the expertise of Burnett, who died in 2018, with the company’s 25-year track record of success.

“Barry touched the lives of countless people throughout our industry,” Wiseman said. “The programs we use today are based partly on his extensive knowledge, insights and heartfelt dedication to our clients and their desire to build better lives for themselves, their families and their employees. I consider myself fortunate to have been his friend and business partner.”

Over the past 25 years, BDR’s indus-

try-leading training classes and Profit Coach program have helped thousands of contractors and distributors build better businesses and achieve higher results. BDR has more than 40 coaches and trainers who work daily with contractors across the country to develop a plan for growth and success.

Learn more about the company at https://www.bdrco.com/.

Faber Construction wins awards for Sumas Elementary construction

Faber Construction recently received the Associated General Contractors of Washington’s most prestigious award for its work building a new Sumas Elementary School.

Faber Construction was presented the Grand Award for Construction Excellence for the first time in its 36-year history during the AGC awards ceremony on May 23. The 47,476-squarefoot Sumas Elementary School was built for the Nooksack Valley School District within budget and in time for the start of the 2022-23 school year.

The successful project was achieved despite the COVID-19 pandemic and major flooding in late 2021. The flooding damaged construction equipment and building materials while also affecting the schedule.

The Lynden-based company also won awards for Best Public Building in the $20 million-$50 million category for Sumas Elementary and Best Public Building in the $5 million-$20 million category for the Skagit Stabilization Center.

“These awards highlight the amazing skill and dedication of our team members, as well as the quality of the architects, subcontractors and vendors on these projects,” said Raymond Faber, business development manager for Faber Construction.

Sumas Elementary required 75,000

hours of work and approximately 1,800 cubic yards of concrete. The project included 24 classrooms, a cafeteria, gymnasium, library and playground. The wood-framed construction atop cast-in-place concrete crawlspace walls with perimeter flood vents accommodates potential flooding and the passage of water under the building.

The award judges noted that Faber Construction built Sumas Elementary with many environmentally friendly and safety features.

“It includes a high-end camera system and a security system with a one-button lockdown that will secure buildings and dispatch first responders,” Faber said. “Fire sprinklers were installed throughout the buildings, and specialty fire-suppression systems are in the kitchen.”

For more information, visit https:// www.faberconstruction.com/.

Local builders win Associated General Contractors of Washington recognition

Exxel Pacific, Granite Construction, IMCO General Construction and Faber Construction were among the winners in the 2023 Build Washington Awards from AGC of Washington.

“The Build Washington Awards provide an excellent opportunity for members of our construction community to come together and reflect on recent projects that demonstrate superior excellence for innovation, safety and related challenging aspects, and to recognize the contractors driving that excellence,” said 2023 AGCW President Glyn Slattery. “Our local communities are significantly improved as a result of the extraordinary efforts of our award-winning firms and staff, and we should all be proud of their contributions to our state.”

Taking home the Grand Award for Construction Excellence was Faber

Construction Company of Lynden for its Sumas Elementary School project. The 2023 Rising Star Award went to Mark Rosenwald of Exxel Pacific.

Build Washington Awards were also presented in numerous categories related to safety and construction excellence. Exxel Pacific won awards for safety and construction, the latter related to its project to build The Accolade, a 21-story student housing tower in Seattle. Granite Construction also won for safety and two awards for construction related to its Padden Creek fish passage on State Route 11 and its safety improvements at the intersection of Grape Drive and State Route 17 in Moses Lake. IMCO General Construction won a construction award for its Tolt River pipeline rehabilitation project, while Faber Construction won for the Skagit County Stabilization Center, in addition to its recognition for Sumas Elementary School.

Downtown Bellingham Partnership Announces 2023 Summer Activation Grant

The Downtown Bellingham Partnership is taking applications for its 2023 Summer Activation Grant Program, made possible by funding from BECU, a regional member-owned and not-for-profit credit union. The goal of the program is to provide engaging community activities and experiences for residents and visitors in downtown Bellingham throughout the summer.

The program provides micro grants to businesses, community members, and organizations seeking to bring positive energy and creativity todowntown Bellingham this summer from July to September. Activations can include musical performances, DJs, pop-up markets, temporary installations or other creative experiences.

Grants of $500 (small site, one block) and $1,000 (larger, one or more blocks of downtown) will be awarded monthly to eligible applicants from July - September. Applicants will receive grant payments directly and must provide all necessary information to process payments, including a W-9. Eligible applicants can only apply once per month during the granting period.

Applications will be open in July, August and September.

For grants, criteria/eligibility, and to apply go to Downtown Bellingham’s website: https://www.downtownbellingham.com/summer-activation-grant.

TO SELL TO LEARN THE VALUE OF YOUR COMPANY.

DON'T WAIT UNTIL YOU'RE READY

the eventual return on your largest assetyour company - and how to personally prepare for when that day arrives.

Water adjudication comes to Whatcom County

Long, long process has begun

Cheryl Stritzel

Water adjudication is happening now in Whatcom County. What does that mean for our farms, our fish and our future?

Adjudication of Water Resource Inventory Area 1, also known as the Nooksack basin, means that this autumn, the Washington State Department of Ecology will notify all water users (excluding individual users of a system such as a city or public utility district) via certified mail that they must file a claim in Whatcom County Superior Court describing their water right and use.

After receiving notice, users have one year to return the claim form. Users who want assistance with filing (technical, not legal) will be able to get help from Ecology or Whatcom County.

The court will inventory all users and then start the long, long process of figuring out who gets water, how much, and from where.

Adjudication is affecting thousands of folks in Whatcom County. Here, three share their take on this critical issue. Interviews have been edited.

The farmer

Fred Likkel, born and raised on a dairy farm in Everson, is the executive director of the advocacy group Whatcom Family Farmers.

Q. Anyone who wants to use WRIA 1 water must file a claim, including permitexempt well users. How much will this cost?

Ecology will provide an easy way to file. The challenge comes when there is limited water and competition for

McCarthy

PHOTO: iStockphoto.com/Warren Srigley

rights.

The biggest concern surrounds the needs of fish. In the past, the instream flow rule, which set flow limits in rivers and streams, was a junior right with a priority date of 1985, making it junior to many rights, including almost all agriculture and municipal rights. However, tying instream flow to tribal rights may make the instream flow senior to all other rights. Instream flows are significant, taking up most (or, in summer, often all) of the flows. If the instream flow isn’t met, and it becomes senior to all other water rights, then all other water users are at risk of being shut down.

Q. What will that mean for farmers?

Water is the lifeblood of farms. Without reliable water, our farms would be unable to exist. You simply can’t grow crops and feed animals knowing that you may have water shut off at any time.

Q. Do you think some farmers will choose to forgo their right?

Most likely, yes. There are numerous farms where some of their water rights are held by older individuals, families a generation or two removed from the land, or absentee landowners, who will not see or understand the value of defending their water rights. As everyone knows, legal actions can get expensive in a hurry. It is highly likely that some will ignore this action by Ecology. Whether it be ignorance of the consequences, fear of being involved in any legal action by the government, or lack of financial resources,

water rights relinquished due to lack of action is distinctly possible.

Q. Ecology’s records show nearly 5,000 surface and groundwater rights documents, some a century old, with some users relying on rights that aren’t evaluated or verified. Ecology’s website explains this can’t be untangled without adjudication, and water users, including tribes, face uncertainty about their rights plus vulnerability to each other’s potential claims. Your thoughts?

Ecology has the information they need to help untangle this mess. They have records of all filed water rights claims. (Perhaps the only exception would be the tribal claim for sufficient water for salmon.) Agriculture has never been against quantifying tribal treaty rights. We have been against legal action that will be far more divisive than the collaborative solutions we need. Bottom line: Adjudication itself solves nothing related to the water resource issues we face.

Q. The Yakima basin (Ecology v. Acquavella) took 30 years to resolve (more if you count prep work and appeals). Ecology says it will go faster now. Your thoughts?

The Yakima adjudication was embroiled in legal battles. … It was only when collaborative actions occurred that it was settled.

The Yakima was only a surface water adjudication. Imagine how long it would have taken if it included groundwater? Ecology’s estimates simply do not match reality. As long as

collaborative actions are put on hold, we can expect a lengthy, drawn out, very expensive process.

We are already seeing the effects of a possible adjudication. Recently, a major potato grower ceased operations, citing burdensome regulations as a primary reason. This included the cost of adjudication. He has chosen to sell rather than spend huge money defending water rights.

Additionally, we are already seeing more ag land being moved to development. Developers have more resources and can be more patient, buying up farmland and waiting until the rules change so they can put in houses.

The Realtor

Perry Eskridge is the government af fairs director at the Whatcom County Association of Realtors. His role includes educating real estate agents on adjudication, as it impacts real estate in Whatcom County.

Q. Anyone who wants to use WRIA 1 water must file a claim, including permitexempt well users. How much will this cost?

The initial filing fee will be minimal. If a claimant uses an attorney, there will be attorney fees, but there is no way to know what those will be.

Q. What will that mean for farmers?

The expense will be in gathering the information to support the claims and, ultimately, defending those claims

from other users seeking to invalidate or remove the priority of an agricultural claim. That process, it has been estimated, could run into millions of dollars for those with numerous or voluminous water claims.

Q. Do you think some farmers will choose to forgo their right?

Heavens, I hope not! Surrendering water rights in a watershed that, in all likelihood, will have closed basins when adjudication concludes means property with no access to water could sustain a substantial loss in value. Subsequent purchasers seeking

Image:

water for future uses or development will be required to gain access, likely through a water association, district or municipal utility. Securing such water will be expensive and, combined with professional fees for necessary agreements, may make any construction or subdivision very costly.

Q. Ecology’s records show nearly 5,000 surface and groundwater rights documents, some a century old, with some users relying on rights that aren’t evaluated or verified. Ecology’s website explains this can’t be untangled without

adjudication, and water users, including tribes, face uncertainty about their rights plus vulnerability to each other’s potential claims. Your thoughts?

The water belongs to everybody. Ecology is supposed to ensure it’s available to everyone and benefits everyone.

convoluted this gets. When the tribes talk about their water right, it’s not on a certificate or expressed anywhere, but arguably, and most likely, it’s the most senior right in the county.

A lot of people in the county have water rights that predate the 1917 code. They had to come in and file their water right claim under the code. Some did, some didn’t.

A lot of people had wells before the 1945 groundwater code was adopted. Same situation. They were using groundwater before there was a code that said you must have a right. Some did, some didn’t.

At times, Ecology has offered amnesty, saying, “You can file your claim, and we’ll maintain your previous priority date.” These were noted and mapped, but it doesn’t appear there was an attempt to prioritize them.

Property has changed hands now. Add to that, some families farm the same property but have changed its use; they may have had a stock-watering certificate, but now they farm berries. If the change from dairy to berry isn’t accepted, they could lose priority. Crops in Whatcom County are water dependent. Any inclination that there might be a problem with that could be catastrophic for your operation.

Q. The Yakima basin (Ecology v. Acquavella) took 30 years to resolve (more if you count prep work and appeals). Ecology says it will go faster now. Your thoughts?

I do not believe, absent a settlement, that this will be faster. Acquavella took nearly 45 years when all was said and done, but that case was limited to sur-

face water. Nooksack/Whatcom includes both surface and groundwater. The inclusion of groundwater is unique to this adjudication and, as I understand it, the United States. Trying to quantify and assign water usage to groundwater systems that are not completely understood will be complex and daunting. Indeed, Ecology has already stated it will not consider the Fraser River and the contribution that makes to groundwater in northern Whatcom County. The increased complexity in water use litigation since the beginning of Acquavella, coupled with the complexity of Whatcom’s groundwater systems … I suspect that this case will continue for quite some time.

The state

Robin McPherson is an adjudication manager with the Washington State Department of Ecology, headquartered in the Olympia suburb of Lacey. An attorney, her role is to assess the need and feasibility of adjudications statewide.

Q. Anyone who wants to use WRIA 1 water must file a claim, including permitexempt well users. How much will this cost?

Whatcom County’s claims filing fee for water is $25. There is a sense that being in court, people need to pay lawyers for years and defend against attacks. Adjudication doesn’t require that. We need them to tell us what their water right is. Unless the neighbors choose to contest and cross

examine each other … it doesn’t have to be expensive. People have a right to object to others’ water rights, and they have a right to object to our report.

One thing worth thinking about is not what might be lost if they don’t participate, but what might be gained if they do. Adjudicated certificates are more valuable than any water right they have.

Q. What will that mean for farmers?

Water is a public resource, used under a priority system. Because water is connected through streams, rivers and aquifers, owners of land do not necessarily have the legal right to use any water they can pump or divert. There has been significant conflict in WRIA 1 for many years, with a great deal of uncertainty, including requests by tribes for federal lawsuits against the state of Washington. This makes all state water users vulnerable. An underregulated system may benefit some users some of the time, but it is not reliable or fair. To fairly protect all water users, and to be sure the system is fair and legal, we need to know who uses water and what their authority is.

We anticipate many claims will be stipulated (agreed without objection).

We have been meeting with local farmers for over three years now and understand that the change to adjudicated certificates is uncomfortable and farmers are wary. But as adjudication proceeds, we expect to see tribal water rights resolved and infrastructure funded.

Q. What route other than adjudication might have worked?

Ecology has been working since at least 1985 (when the instream flow rule was adopted) to resolve water conflict in WRIA 1. In the 1990s and 2000s, the state met with tribes, irrigators and other interests on solutions, including watershed planning. These efforts have stalled because rights — including tribal rights and irrigation water — are not clear. We believe adjudication will move these efforts forward, bring federal parties to the table, and enable meaningful long-term solutions.

Q. Ecology’s records show nearly 5,000 surface and groundwater rights documents, some a century

old, with some users relying on rights that aren’t evaluated or verified. Ecology’s website explains this can’t be untangled without adjudication, and water users, including tribes, face uncertainty about their rights plus vulnerability to each other’s potential claims. Your thoughts?

The uncertainty comes from many angles: Tribes claim senior rights, but we do not know exactly where or how much water this might be. The federal government could bring actions against the state for impairing rights. We don’t know how much water is used through permit-exempt wells. There are thousands of documents that may or may not be valid, and we do

not know how these align with current uses. Water users could sue each other for impairment at any time, though this hasn’t happened yet. The current situation is not reliable or stable.

Q. The Yakima basin (Ecology v. Acquavella) took 30 years to resolve (more if you count prep work and appeals). Ecology says it will go faster now. Your thoughts?

While it’s impossible to predict the future, there are many reasons Acquavella took as long as it did that are not at issue here. First, Acquavella included many years of jurisdiction and venue disputes (including that of Yakama Nation), and we don’t expect those here (Lummi and Nooksack consent to jurisdiction). Second, advances in the law resolve many legal issues that took years to resolve in Acquavella. Third, we have technical advances like e-filing, notice and service to expedite the process. But adjudication is still a long-term process and an unfamiliar one. While many people seem wary of the length of time of adjudication, many water users and local interests already express an interest in additional time at the beginning of the adjudication. For those who are concerned about resolving their water rights sooner, they do not have to wait to submit claims and evidence. ■

BUILDING

Factors to focus on for long-term success

Jennifer Noveck, Ph.D. Port of Bellingham

Since the onset of the COVID-19 pandemic in March 2020, the buzzword has been “resilience.” Economic resilience. Business resilience. Household resilience. Individual resilience. Well-known business consulting firms, such as McKinsey, emphasize that in uncertain times, organizations need to invest in the processes, technologies and people that build resilience in order to navigate the myriad risks now faced by businesses in the global economy.

Before we delve into what your business and industry can do to build resilience, we should ask: What exactly is economic and business resilience? And how is it different from sustainability? (Sustainability is, after all, another popular and important concept for business and industry.)

According to most econometric definitions, resilience is essentially the ability of an economy, sector or business to recover quickly from external shocks and disruptions such as disasters, economic downturns, cyberattacks, pandemics and so on. By doing so, financial systems and the businesses they support can maintain operations and, most importantly, keep their doors open and employees paid. Resilience, in general, is focused on responding to challenges and adapting to change. In contrast, sustainability has historically been more focused on preserving resources and minimizing negative impacts to the environment.

Don Goldberg, director of economic development at the Port of Bellingham, notes: “Resilience and business

preparedness is something that my team has been working on since 2019. It is a big part of the Whatcom County Comprehensive Economic Development Strategy that was approved in late 2021. There are a lot of established best practices that government, industry and businesses can take to build resilience locally.”

The Whatcom County Comprehensive Economic Development Strategy for 2022 to 2026 is a long-term, consensus-driven document intended to guide development and growth. The strategy was unanimously approved by the Whatcom County Council in October 2021 and accepted without edits by the Economic Development Administration in April 2022. To learn more, visit https://portofbellingham.com/1003/CEDS.

Building resilience in Whatcom County will require attention to a number of important factors, including housing, child care, emergency preparedness, diversification and leadership.

Housing and child care

Community members, business leaders and others have shared that what is most needed is a combination of physical, social and economic infrastructure improvements that would increase economic and business resilience throughout Whatcom County. In particular, members of the business community have identified as their biggest obstacles to

growth and expansion the need for affordable, accessible and available housing for all income levels and the need for affordable, accessible and quality child care.

Affordable housing and child care contribute to economic, business, household and individual resilience by providing increased employee retention via stability and security for individuals and families. Affordable housing also reduces the risk of displacement during times of economic hardship or disasters. The existence of affordable, accessible and quality child care and housing for all income levels also fosters more diverse and inclusive communities that are better equipped to weather challenges and support each other during tough times.

Emergency preparedness

While both of these issues are systemic and not specific to Whatcom County or even Washington state, businesses can take bold, innovative actions to build internal resilience and thus contribute to local economic and financial resilience. One of the first steps is to have a business emergency preparedness plan. This involves developing a set of procedures and protocols to prepare for and respond to potential emergencies such as disasters, cyberattacks or other unexpected events. It is important to first identify the specific potential risks faced by your business and then to create an action plan that outlines how the business will continue to operate during and after such an emergency. A great place to start is by getting familiar with the Washington state and Whatcom County natural hazards mitigation plans, which identify hazards, risks and vulnerabilities and propose strategies and actions to

reduce risks to people, property, the economy, the environment, infrastructure and first responders. A business preparedness plan should also detail how you plan to secure inventory and assets, including data, and to ensure the safety of employees and customers.

To get started building your own emergency preparedness plan, visit https://www.ready.gov/business.

Diversification

Diversification builds resilience and protects business. Businesses with diversified supply chains, product lines, customers, clients and markets all fare better against competitors during good times and are more agile during downturns. Likewise, businesses that use data to understand their current situation are better able to forecast and predict future demand and changes in the workforce. Businesses can also build

resilience by developing fiscal literacy, investing in innovative technologies, implementing flexible work arrangements, establishing strong partnerships and remaining agile and curious in decision-making. Additionally, businesses can address specific issues such as labor supply by improving retention efforts through prioritizing employee wellness and training programs.

Leadership

Ultimately, developing resilience requires leadership from and collaboration among private, public and nonprofit actors and stakeholders. Building resilience is not something that can be done well in isolation; it must be done in community. Together we can leverage resources, share knowledge and best practices and help businesses and communities adapt and thrive in the face of change. ■

Photos courtesy of Camp Saturna unless otherwise noted.

Camp Saturna expands lodging and event options

The former Boy Scout camp on Silver Lake takes on new life

Elisa Claassen

Have you ever wanted exclusive use of an entire summer camp?

On an early sunny morning in May, I was invited to tour Camp Saturna, a 133-acre retreat at the north end of Silver Lake, just north of Maple Falls. It is remote in terms of being off the grid, but it is easily accessible for those coming from Bellingham or Seattle or even lower British Columbia. The immediate setting takes one’s breath: one can imagine sitting on the lakeside deck, with picnic tables dotting the nearby lawn, and contemplating the beauty of our local wilderness — including Black Mountain, elevation 4,459 feet, across Silver Lake.

We are educators. We are community contributors. We are risk managers. The purchase of Camp Black Mountain put all these values to work at once.

Jane Carten, president of Saturna Capital

What I saw matched the descriptions I had read about the camp: “The pristine forest, private lakeshore and mildly rugged terrain of Camp Saturna provides excellent outdoor recreational opportunities where campers can learn about environmental stewardship while immersed in nature.”

When not being used as an environmental education

center, the camp is rented to private groups for business retreats, church gatherings, summer camps and events. It also is a great place for groups to use as a winter base for skiing Mount Baker.

Saturna Capital Corporation, a Bellingham-based financial services company, was established in 1989. In addition to the headquarters in Bellingham, the “values-based global asset managers” have offices in Henderson, Nevada, and Kuala Lumpur, Malaysia.

A subsidiary, the Saturna Environmental Corporation, was formed to purchase the property in 2015. With the purchase came a commitment to renovating and refurbishing the former Boy Scout camp known as Camp Black Mountain.

Why would a group primarily known for its financial acumen seek this type of investment and choose to focus on educating youth in the natural world? The reason is twofold, according to Jane Carten, president of Saturna Capital.

The first is that Nicholas Kaiser, the Bellingham-born founder of Saturna Capital, had served as a scout in local Troop 5 in his youth, spending many summers at Camp Black Mountain. He credits the camp for helping him discover and develop his leadership skills. On one particular visit in 1959, the then-13-year-old Nick took charge of a group of scouts for a full week after the scoutmaster did not make it up to camp due to a family emergency. This experience was a turning point for him, and he went on to achieve Eagle Scout status a few years later.

The second reason is that Carten, who heads Saturna Capital Corporation, said the camp aligns with the organization’s core values.

“We are educators,” she said. “We are community contributors. We are risk managers. The purchase of Camp Black Mountain put all these values to work at once.”

One of the main goals of the camp is to get children out into nature and to give them experiences and education that are not possible in a standard classroom.

Walking outside the main lodge via a bridge and up a short trail, you’ll reach

the Chapel in the Woods — complete with an open A-frame focal point and rustic, moss-covered log seating. Further down the hillside is one of several outdoor fire pits to inspire camaraderie and conversation. Along the lakeshore, the boathouse has a variety of watercraft, paddles and safety vests of all sizes, the use of which is included in every rental. A covered patio, underlit by lights, is a central gathering space, perfect for smaller breakout sessions or as an outdoor dining area.

On the east side of the camp, you will find archery and shooting ranges, a climbing wall and an outdoor challenge course. Nathan’s Wall, the indoor climbing facility, is named for Nathan Nakis, a Sedro-Woolley High School graduate and member of the Oregon National Guard who was killed in Iraq. Nathan was an avid climber and an Eagle Scout. To honor him and his service to our country, the local Boy Scout council partnered with community groups to construct the wall — an integral part of the educational programming at the camp to this day.

The nearby outdoor challenge course includes various stations — a trust fall, slack line, balance challenge and more

— designed to create a team-building experience that marries outdoor education and fun with the development of problem-solving skills.

Camp Saturna partners with several local schools and agencies to bring environmental education programs to the children of Whatcom County. Connections, one of the many programs, brings 150 fifth graders from the Mount Baker School District to the camp each year. Partners in the teaching programs include Common Threads Farm, Wild Whatcom, Nooksack Salmon Enhancement Association, North Cascades Institute, Western Washington University, Whatcom Conservation District and the Community Boating Center.

Saturna Environmental Corporation is also part of the Snow to Sea program, through which middle schoolers follow a water molecule from the top of Mount Baker to the Salish Sea. The students visit Camp Saturna as part of the curriculum, learning about the water cycle and completing hands-on science activities with camp counselors. The kids also participate in the recreational activities the camp offers.

When not in use as an environmen-

Photo: Elisa Claasen

tal education center, Camp Saturna is available for private rentals. It is great for family reunions, corporate or church retreats, weddings and other celebrations. Several Boy Scout troops still use the camp for outdoor camping retreats. The camp is rented to just one group at a time, affording privacy and the freedom for groups to design their own programming. Guests can make their own food or select vendors, giving them complete control over the look and feel of their events.

In addition to the activity areas, private rentals include the exclusive use of the main lodge, which contains a commercial kitchen, 139-seat dining hall and a massive rock fireplace likely built over 100 years ago. Also included is the use of all lodging at the camp, including a 44-bed bunkhouse, an apartment-style two-bedroom lodging, three small summer cabins, and four group campsites dotting the shoreline. Wi-Fi is available for limited use in the main lodge through Starlink, but cell service is not available otherwise. This allows renters to concentrate on the camp experience without the distractions of the modern world.

Rates and minimum stays vary de-

pending on the season and the day of the week. For those considering use of the property on a more limited basis, the camp does offer day rates for companies to host team-building meetings during weekdays. There are nightly minimum stays of two to four nights, depending on the time of year,

for groups staying longer. Rates are available online at https://www.campsaturna.com/rates.

More information is available online at https://www.campsaturna.com or via email to Sarah Kaiser at sak@ saturna.com. ■

Photo: Elisa Claasen

TOP 100 PRIVATE COMPANIES IN WHATCOM COUNTY

[BASED ON 2022 SALES]

More than a list, the Top 100 private companies of Whatcom County is a testament to astute entrepreneurs and savvy investors, business owners and team leaders, early risers and nose-to-the-grindstoners.

Here, in one snapshot, are the establishments that make Whatcom a coveted place to work and live. Incredibly, the top 100 generated almost $4 billion in sales. Importantly, hiring remains a priority across industries, with 93% of this year’s respondents reporting they will be taking on more employees at all levels.

Tucked into the stats, are a sampling of stories that span over 140 years. Samson Rope began making high-performance rope in 1848. This year, Bellingham Millwork Supply and Totally Chocolate celebrate 30 years of an enduring workforce and commitment to craftsmanship. Started 56 years ago, Dawson Construction’s leap in sales, a $36 million increase over the previous year, reflects Whatcom’s astounding growth. And Vander Giessen Nursery, founded in

1938, is in its fourth generation of family leadership and one of 19 companies new to the top 100, revealing our county’s roots in family-owned companies.

But the arc of this story is so much greater than our county. With remote jobs now viable realities, Whatcom, snugged between mountains and sound, is a place where meaningful work fuels fulfilling lives. Nationally, Whatcom has been recognized by organizations like SmartAsset, a financial information website, as one of the ten wealthiest counties in Washington State as well as a great county to start a small business.

This is the account of the ongoing and unfolding story of privately launched and locally owned prosperity. This is Whatcom’s best.

PHOTO: iStockphoto.com/natrot

#30 | Scholten’s

Heather Lea

When you’re eating a vegetable or lining your horse stall with hay, do you ever think, “Where did this come from?”

Well, hopefully it came from a local farm. Whatcom County is an agricultural hub, after all.

Located in Lynden, Scholten’s Equipment buys, sells, rents, repairs and delivers farm and construction equipment. With a second location in Burlington and a substantial market in the rest of Washington, Oregon and British Columbia, Canada, Scholten’s is one of four major agriculture dealers in the area.

A 43-year-old business, Scholten’s was started by Duane and Arlene Scholten in 1980. The company employs 55 full-time employees, with 35 of those folks living in Whatcom County.

Duane tells us that Scholten’s was “started from scratch, fixing neighbors’ tractors on the end of the Jones Road east of Sumas on my in-laws’ dairy farm in between milkings.”

Who can think of a more wholesome, homegrown beginning?

In the early days, Duane Scholten purchased late-model, low-hour tractors out of Iowa, where he is from. He’d then resell these valuable finds to Sumas neighbors. A year after founding the company, Duane and Arlene bought a place by Nooksack Valley High School. In 1983, they hired their first two employees. One of those employees is still working at

Equipment

Scholten’s Equipment today.

By 1984, incorporated and ready to expand, Duane and Arlene rented a bigger shop in Clearbrook, and in 1988, they purchased the Kubota dealer (Kiels) in Lynden. Together, the Scholtens ran both locations for one year, then moved the Clearbrook team to Lynden. In 1993, the business opened a new location in Burlington, on Cook Road.

Today, Scholten’s Equipment is an authorized dealer of Kubota, CLAAS, JCB, Trioliet, Jamesway, JBS, Massey Ferguson (hay and forage only), Kawasaki, Hesston, Land Pride, Rankin, Haybuster and Westendorf.

Future plans include setting up a location in Eastern Washington, finding and building a larger location in Skagit Valley, and adding storage in Lynden.

Scholten’s Equipment was chosen as Business of the Year in 2013. In 2019, the company celebrated 30 years in the estimated $20 million local business market (including their competition) and filmed the occasion. A photo on the company’s website homepage shows a happy employee gathering.

“Another feather in our hat,” Duane Scholten said, “was being chosen over 30 years ago to be a JCB dealer because customers (unbeknownst to us) had requested JCB choose us! We were quite small then.”

As Duane points out, a good website

can be monumental in business sales, and he is most proud of scholtensequipment.com, which, he said, has brought in a lot of walk-in business. The company’s videos are especially impressive.

As pioneers in relatively unknown ideas and new lines, like self-propelled forage harvesters, Kemper heads, Haybuster, Ty-Crop and JCB, Scholten’s Equipment stays on top of things with an aggressive yet friendly approach. Duane’s connections to the Midwest have allowed the company to become a leader in the industry over the years.

On doing business in Whatcom County, Scholten said, “Where else can you go and look at night and there isn’t a security fence keeping you out? (We’re) very blessed to be here (and) we have great employees!”

Scholten’s Equipment is employee owned, and Mr. Scholten himself has always sought to create an environment where hard work and positive attitude are “handsomely rewarded.”

“We have a strong belief that you must enjoy your job at Scholten’s equipment,” Duane said. “While closing a deal on a big, new 600-horsepower-class chopper is quite a rush, there is nothing more satisfying to me than being able to come to work every morning and say ‘Hi’ to everyone and share a cup of coffee with our team and family.” ■

PHOTO: Sam Kristofferson

#83 |

The Lost Co.

Heather Lea

Some of the best ideas come from thinking outside the box. That’s exactly what Mike Randol and a former business partner did in 2016 when they started Whatcom County’s first mobile bike shop.

To keep costs down — instead of renting space somewhere — Mike and his partner bought a 1988 Ford U-Haul truck and converted it into a business on wheels called Mister Lost’s Mobile Bike Shop. The truck body was covered in cedar siding to fit well into the Pacific Northwest backdrop of stellar mountain biking.

Although being mobile helped the bike shop stand out against its competition, one year later the business had outgrown the mobile model’s capabilities. It was time to rent an actual brick-and-mortar building in the Sunnyland neighborhood. There, the business focus went to e-commerce and online media, and in 2018, the bike shop was renamed The Lost Co.

“We suddenly realized the massive potential of the internet,” Randol said, “and [grew] the online side of the business as a primary source of revenue.”

The Lost Co. increased the volume of service work it provided, but more importantly, the team was able to work efficiently without having to drive from site to site.

“This increased efficiency meant we had more time to learn the intricacies of

selling online, which proved to be a pretty massive undertaking,” Randol said.

Creating YouTube content proved to be a smart business decision. The company’s videos got consistent views, and website sales shot up.

Fast forward to 2023, and The Lost Co. has six employees, a 5,000-square-foot shop in the Roosevelt neighborhood, and close to 150,000 YouTube followers.

“I’m extremely happy with the community we’ve built, which consists of die-hard mountain bike enthusiasts around the world,” Randol said. “It’s very gratifying to share technical knowledge, product reviews and adventures with an audience of folks that are just like us.”

Randol said he feels that bike shops can come across as intimidating or snobby; he and his team strive for a fully inclusive experience for anyone who requests assistance.

“I don’t care what your knowledge is with bikes or how much money is in your pocket,” he said. “We interact with each customer in the same professional manner to best gauge how to help each individual for exactly what they need.”

Randol wears many hats, with a hand in nearly every aspect of the business (with physically performing service on bikes and suspensions or shipping and receiving being the only exceptions). His goal is to grow the business to the point

where he can focus solely on being the lead creative director for The Lost Co.’s marketing.

Something worth mentioning is The Lost Co. doesn’t actually sell bikes. It focuses on parts and accessories — specifically, on high-end and technical parts — and provides in-house suspension service, along with rebuilding and servicing most suspension forks and rear shocks, also in-house. That’s not common; that work is typically shipped out to be done externally.

Front-burner projects for The Lost Co. include making more video content for YouTube and other social media platforms. Making videos requires a lot of time and resources which, Randol says, the company struggles to fit into its calendar and budget.

However, video content is a massive driver in traffic to The Lost Co.’s website and overall brand awareness.

“We have more video ideas than we know what to do with,” Randol says. “I hope that one day we’re able to have enough resources to bring those ideas to life.”

The Chuckanut and Galbraith trail systems near town are the perfect terrain for mountain biking. And with a strong biking community in Whatcom County, The Lost Co. has nowhere to go but up(hill). ■

PHOTO: Sam Kristofferson

#95 | Bellingham Wind Works

Heather Lea

In the heart of the Fountain District in Bellingham, you’ll find a music shop that has catered to the musicians, teachers and students of Whatcom and Skagit counties since 2005.

After watching local music stores shut down in the early 2000s, Bellingham Wind Works saw a niche to be filled. In 2012, owners Kat and Ed DeVaney expanded to provide repair and restoration services for band and orchestra instruments, along with services for percussion instruments, accordions, harmonicas, guitars and other fretted instruments.

Ed originally worked for The MUSIC Shoppe as its instrument repair technician. He purchased the repair shop from the previous owner in 2005. In 2011, he and Kat purchased the building, renamed the shop Bellingham Wind Works, and started offering retail sales and rental instruments at the request of customers.

The shop offers almost every type of musical instrument repair, Kat says, including a full retail showroom with new and used musical instruments, a full selection of print music, and a wide variety of musical instrument accessories, including reeds, mouthpieces, strings, lubricants, cases, harnesses and straps, jewelry, ornaments, children’s instruments and gifts.

Looking to rent? The shop does that, too. Bellingham Wind Works offers the rental of band and orchestra instruments made by major manufacturers such as Yamaha, Conn-Selmer, Buffet Crampon, Jupiter and Eastman, as well as hard-to-

find rentals, such as English horns, oboes, bassoons and upright basses.

“We have student and step-up instruments that include everything you need to get started on your musical career, and they are available to anyone in Washington state,” Kat says.

Ed and Kat, husband and wife, are both trained repair technicians with experience repairing brass and woodwind instruments. Like many small business owners, the two have held a variety of roles over the years, including window dresser, delivery driver, technician, social media manager, educator, janitor, human resources department, office manager, shipping and receiving manager and general overseer.

The company employs nine full-time staff members, seven of whom live in Whatcom County. The three part-time employees also live in Whatcom County. Staff members and owners partake in training, classes and seminars, and they are always learning from customers.

“Our greatest accomplishment is providing for our employees and customers through consistent growth,” Ed says. “We are very proud of our staff of experts, who are regularly performing musicians and many of whom hold advanced degrees in music.”

Keeping up with new products and trends, Bellingham Wind Works will soon carry a new line of clarinets by Royal Global and a popular range of bass clarinets. Reed instrument aficionados may

have seen these clarinets played by New Orleans clarinetist Doreen Ketchens or Michael Lowenstern, of Julliard.

“We are very proud that over the last 18 years we have grown from a one-person instrument repair shop to a full-line band and orchestra music store that people visit from all over the world,” Kat says. “We have worked on and restored some of the rarest and most unusual instruments in our field.”

Ed and Kat have collaborated with local businesses such as Evergreen Music Studios, Bellingham Music, The ReStore, Bellingham Symphony Orchestra, Skagit Symphony and The Bellingham Theatre Guild. They also have actively donated to fine arts organizations such as the Blaine Fine Arts Association and the Family Interactive Gallery at the Whatcom Museum, providing instruments, music and financial assistance for performances, petting zoos, art pieces and auctions. They also have donated more than 100 instruments to Bellingham music programs.

Bellingham Wind Works serves 35 schools across three counties, with two school representatives offering weekly delivery services and working directly with teachers. Nominated by local teachers, Bellingham Wind Works has received a “Friends of Music” award from the San Juan Music Educators Association.

Whether you’re a budding musician or a professional, Ed and Kat say you will be at home in their store. ■

PHOTO: Sam Kristofferson

We at Business Pulse magazine believe the following companies qualify for the list based on previous years but were unable to confirm their numbers as of press time (in alpha order):

American Canadian Fisheries, Brooks Manufacturing Co, Infusion Solutions, Louws Truss, Seeking Health, Superfeet, Wood Stone Corp, and others.

If you would like to be included in the list for next year, please contact us at info@whatcombusinessalliance.com.

BUILDING UP! New structure for the Lighthouse Mission to bring place and promise to help people out of homelessness

Tara Gilligan Reimer

The physical transformation of Lighthouse Mission Ministries, at the corner of Holly and F streets in Bellingham, has begun. The old, concrete, Spanish-style building — with the iconic big-block letters spelling out the name — has been razed. A new structure will go up, to be completed in 2024.

In talking about the new building, Hans Erchinger-Davis, president and

chief executive officer of Lighthouse Mission Ministries, never forgets about the lives he hopes to see transformed inside. His core of staff and volunteers are one of the most visible forces in Whatcom County, with a credible record of helping those in homelessness recover from addiction and engage with specialized intervention services to forge new lives. (A record of how many guests receive

a selection of services — emergency shelter, for example — is posted daily at https://www.thelighthousemission. org/what-we-do/base-camp/.)

“One of our most successful case managers came from the streets,” Erchinger-Davis said. “He had tracks up and down his arms from drug use. He found recovery at Lighthouse. In turn, for the last 10 years as case manager, he has helped so many people

PHOTOS: Sattva Photo

“How we treat our poor is a reflection of our soul. And at Lighthouse Mission, we’re after the soul of this city.”

Hans Erchinger-Davis

transform, too.”

This interview happened days before the mission’s annual gala, with June 9 marking 100 years of service from the largely privately funded, Christian-based charity. Even with a regular workload topped off by a special event, staff dipped in and out of the conference room to say hello, make sure bottled water was offered, and pass along tasks and phone messages to their CEO. The radical hospitality, something Lighthouse strives to be known for on the street, extends to all who come through the organization.

Where you’ve been

BP: Before talking about the new building construction, can you explain why you and your team use specific words for your guests, those who live in homelessness?

Hans: We use “guests” instead of “clients.” We care for our “neighbors,” not “others” or “street people.” We have a significant record of helping many “people in homelessness” move into recovery and full, vibrant lives.

In our spoken words, the person always comes first. How we talk with those we care for, our guests, deeply affects how they feel. We emphasize the mutuality of people instead of power dynamics. Our words allow people to realize we’re walking with them and not over them.

Some community members see those in homelessness as not wanting help and not wanting work.

Erchinger-Davis, who worked for 10 years as the Lighthouse chaplain and has worked for the past seven years as CEO, shared graphics of the new building, along with charts of fundraising sources. He and his staff fluently described complex systems of how to build a new $25 million structure with community support. But in describing the work, they always came back to the accounts of how people move from desperation to recovery, a distance that seems great but also possible. The new Lighthouse building is a place and a promise — for guests, staff and supporters — to continue the work of a 100-year-old mission.

People don’t become homeless due to lost resources. They become homeless due to lost relationships. If you or I encounter addiction or job loss, we would find solace and shelter with our family and friends.

The opposite of addiction is connection. In positive relationships with the Lighthouse team, our guests scramble to get jobs, fight to get their children from Child Protective Services, want to be whole. Fueled by our gospel-centered mission, each guest sees that he or she is a child of the King, not a piece of dirt.

BP: How does the work of recovery begin?

Hans: Those in homelessness have lost family, friends, all sustaining relationships. They don’t have anyone,

and they don’t trust anyone. Typically, many have suffered severe childhood physical and sexual abuse. They’ve been told they are worthless. They mistake homelessness as penance and abandonment as their earnings. They get eyed a lot — gawked at — and they feel badly in their hearts. If you believe you’re a drunk or a drug addict, you live that out. Those in homelessness carry these damaging beliefs in a kind of horrific backpack.

On the street, in our shelter, in our recovery programs, every Lighthouse team member helps dismantle the debilitating belief system to remove that backpack. Identity and vocation are where we focus. We help guests identify who they truly are — cherished — and then possibilities for vocation — their purposes and gifts. This is often a year-and-half process.

Where you’re going

BP: Describe the structure to be built as the new Lighthouse Mission. How will services expand?

Hans: The old Lighthouse Mission structure, at the corner of Holly and F streets in Bellingham, was razed. The new building to be completed in 2024 features five floors, 400 beds that will

double the impact of our services, different shelters with specialized interventions based on unique needs, and workplace development opportunities.

More square footage is important; we serve about 2,500 people a year. We work with roughly half of those who live in homelessness in Whatcom County.

BP: What issues have you encountered as you’ve proceeded with building plans?

Hans: There’s a lot to permitting. That city group had been short-staffed but were also intentional about not creating a backlog. We had a few challenges that got worked through.

Also, Lighthouse applied for a land use variance to be able to host more people, which justifiably included public comment. In doing this work, you encounter detractors and negativity, which is basically fear. I get the fear. I understand neighbors who fear trespassing or theft. At Lighthouse, we’re always going to advocate for our guests while at the same time working hard to be a good neighbor in the city.

BP: Within the new building, there will be an industrial kitchen. Can you talk about the importance of this feature and your hopefulness at the county providing these funds (after first declining)?

Hans: Meeting a person’s hunger is their ticket to our door. Seeing opportunity and sensing hope? That starts with a meal.

The mission will receive $750,000 from Whatcom County for an industrial kitchen in the new building. Those funds come from federal COVID-19 relief dollars. We currently serve 750

meals a day, but that capacity will double to 1,500 meals.

The kitchen will also be a space of study and hands-on learning for people interested in entering the culinary field, part of workplace development.

The iconic building — now torn down and to be replaced — is seen as the Lighthouse Mission. But the new building is part of a campus, adjacent to other structures that house services for a very deliberate path, from street to recovery.

We deliberately scaffold our services so that moving from chaos on the streets to recovery and shelter is a step-by-step process.

• Outreach: On the street, Lighthouse staff build trust by offering sandwiches, toiletry kits and invitations to check out Base Camp. (Importantly, we do not offer propane or tents, or anything that might keep someone stuck in the woods.) Our motto is reach out, invite in.

• Base Camp: Here we stabilize incoming guests. They have been on the street, trying to survive hour by hour. At Base Camp, we help guests get quiet, with shelter, food, showers and laundry services. Pets are welcome. Guests can access a medical clinic, Café Renovare (our on-site coffee shop), pathways to establishing identifications, housing referrals, memorial services, voluntary prayer time, worship and Bible studies, case management and 15 partner agencies. Base camp is a first-step transition space. Staff need to be “Mo-Chuck,” combining the compassion of Mother Teresa with the street smarts of Chuck Norris. (With the demoli-

tion of the old building, Base Camp is currently in the old Public Market building at 1530 Cornwall Ave. Base Camp will return to its original location, in the new building on Holly Street.)

• Agape Home: A place to find healing and connect to even more resources, this is the faith-based residential recovery program for single women and women and their children.

• Ascent: In a separate building, this is the faith-based residential recovery program for men.

BP: Sometimes, it might be easier to focus on the new building. But you are deliberate in emphasizing that the work of Lighthouse is in relationship.

Hans: One of our sayings is “housing next” and not housing first. Through our scaffolding of services, we help move people forward to housing readiness, on their timetables. We’re seen as warm demanders and compassionate growth assistants. We are not doing only mercy work, what’s known as “three hots (meals) and a cot.” Our work is human connection and mat-

uration: healing the whole person spiritually, relationally, emotionally and physically; providing a place to work on the issues that propelled folks to homelessness. When guests re-engage with the world and get their own places, they have been given a fighting chance.

In community

BP: Can you talk about the undertaking of securing grants and fundraising?

Hans: Lighthouse has raised $19.5 million for its new $25 million shelter. To retain its Christian-based mission, Lighthouse is largely privately funded.

Supporters, donors, public servants and first responders want to see intervention that is effective. That is what they see in Lighthouse. We know how to be in relationship with those touched by homelessness and addiction. Our faith conviction is God’s care and concern for the poor.

BP: What precautions and guidance have been put in place to help downtown businesses feel safe and positive about Lighthouse Mission Ministries and its programs?

Hans: Lighthouse is intentional about giving every area stakeholder a voice. Monthly, we host a neighborhood advisory group, which includes a representative from the Whatcom Transit Association, local property owners, police and city representatives.

We also sponsor the Good Neighbor Project to provide resources and support for local businesses as they interact with our neighbors. We offer training to de-escalate volatility and increase compassion. Business owners faced with requests for handouts have

“With BECU, we feel like business partners.”

Member Nik P., Co-Owner of Phinney Ridge Painting.

coffee tickets: I can’t give you anything, but here’s a ticket for a cup at the Base Camp coffeehouse.

BP: What gives you hope?

Hans: We work in partnership with churches, agencies and individuals from every ideological perspective who see our success and are incredibly supportive and generous.

There are some who have written off people who live in homelessness. Try not to forget, these are human beings, with parents and families and dreams. They’re made in the image of God and therefore worth every effort to bring to health. How we treat our poor is a reflection of our soul. And at Lighthouse Mission, we’re after the soul of this city. ■

2023 legislative session recap

How local representatives voted on key business issues

Dann Mead Smith

As someone who is busy running your business, it is not always easy to find time to track and then engage on issues that impact your company. That is where the Whatcom Business Alliance can be a helpful resource. Hopefully you were able to track some of the bills and maybe even weigh in on them during the 2023 legislative session to let your local legislators know your position on the many bills that could impact businesses in Whatcom County. Here is a recap of what took place during this session, which adjourned at the end of April, as well as how our six legislators in the 40th and 42nd districts voted.

One note for the bills that died: In some cases, our local legislators should be held accountable for not helping them move though the legislative process, so even though there might not be an official vote for or against, you should ask them for their position on each bill and if them not sponsoring a

“good” bill is the same as being against it.

Most of these bills come from the list we presented in our Business Pulse column when the session started. The overall summary from the session:

• No new general taxes were passed.

• The Democrat majority did pass (and the governor signed) several bills that will negatively impact businesses.

• The state budget continues to grow at an unsustain-

able level, with $4.7 billion in new spending in the overall $69 billion two-year general fund operating budget.

• Several key issues were partially addressed this session but will need additional work next year or via possible ballot measures.

Here is a list of the six Whatcom County legislators (all Democrats) whose votes are listed under each bill below:

• 40th District:

Sen. Liz Lovelett

Rep. Alex Ramel

Rep. Debra Lekanoff

• 42nd District:

Sen. Sharon Shewmake

Rep. Alicia Rule

Rep. Joe Timmons

SB 5352 / HB 1363

Concerning vehicular pursuits

Of all the issues the Legislature spent time debating, restoring the ability for police to pursue criminals in vehicles might have been the highest profile. Unfortunately, it was only partially addressed and will need to be revisited in the future. This could be in the form of a ballot measure to the Legislature in 2024 if enough signatures are collected later this year. A watered-down version of Senate Bill 5352/House Bill 1363 that will not significantly improve public safety passed. Nearly every police chief in Whatcom County has spoken about the need for this fix. House Bill 1363 was sponsored by Rep. Rule, who voted for the amended SB 5352 that passed and was signed by the governor. A “yes” vote is a step in the right direction and hopefully reflects their interest in fully restoring pursuits of dangerous criminals in the future. Some legislators voted against the bill because they do not want to restore pursuits in any way, while others voted against it to demonstrate that this bill will not do what is needed and is not worthy of support at this time. Lovelett voted “no,” while all the others voted “yes.”

SB 5536

Concerning controlled substances, counterfeit substances, and legend drug possession and treatment

The other major public safety bill was the so-called “Blake fix,” which addressed open drug use and possession. The Legislature held a one-day special session in mid-May to pass a bill that they could not find consensus on during the regular 105-day session. The bill is similar to what the city of Bellingham passed a few weeks ago to address drug use in the downtown area. SB 5536 passed and was signed by the governor and supported by all six Whatcom legislators.

SB 5476 / HB 1523

Authorizing agricultural employers to select 12 weeks a year to employ workers for up to 50 hours a week before overtime applies

Given how important agriculture is in Whatcom County, it would have been good to have SB 5476/HB 1523 pass the Legislature. Unfortunately, this bill — sponsored by Rep. Rule in the House — to authorize agricultural employers to select 12 weeks a year to employ workers for up to 50 hours a week before overtime applies only received a hearing in the Senate, with no vote taken. There were other agriculture-related bills, but space precludes us from including them in this column.

HB 1011

Concerning the state’s long-termcare program and tax proposal

The state’s new long-term care payroll tax takes effect in July, when it will impact every W2 employee in the state. HB 1011 would have repealed

this unpopular program, which is funded by a new payroll tax of 58 cents for every $100 a worker earns. It did not receive a hearing, and none of the Whatcom House members sponsored the bill.

HB 1373

Funding the removal of illegal encampments near schools, child care centers, parks, and courthouses

One bill that was introduced to address the homeless crisis in our state and in particular its impact on local businesses and neighborhoods was HB 1373, but the bill did not receive a hearing and did not have any local district sponsors.

HB 1401 / HB 1293

SB 5058 / SB 5290

Addressing affordable housing and building more homes

One of the major goals from the governor and legislators from both parties was to address affordable housing and to build more homes across the state. There were several “good” bills that were introduced, with a few positive and also negative ones that finally passed:

HB 1401 to streamline the permit process received only a hearing and committee vote, with no Whatcom legislators serving on the particular committee that heard the bill. While HB 1293 will streamline some development regulations, SB 5058 exempts some buildings from the definition of “multiunit residential,” and SB 5290 consolidated the local permit review process. All of these passed, and I am pleased to report that all six of the Whatcom legislators voted for all three. All were signed by the governor.

HB 1110

Concerning removing singlefamily zones in cities across the state

One housing bill, HB 1110, was controversial and received support (from all Whatcom legislators) and opposition from legislators of both parties, as it allows more housing units to be built on single-family-zoned lots, which will increase the supply of housing but also density. Furthermore, it overrides city and county current zoning. Ramel and Lekanoff sponsored this bill.

HB 1181

Improving the state’s response to climate change by updating the state’s planning framework

On the other hand, HB 1181 adds “climate change” as a specific element to the Growth Management Act and

adds a goal to reduce vehicle miles driven, which would increase housing costs with yet another regulatory element. When affordable housing is one of the biggest issues locally and across the state, we should be reducing unnecessary regulations to bring down housing costs; this adds another burden to counties, cities and builders. Lovelett voted “yes” and sponsored its companion, SB 5203. Ramel and Lekanoff voted “yes” and sponsored the bill. Shewmake and Timmons also voted “yes,” with Rule the only local “no” vote.

SB 5133

Concerning responsible bidder criteria for public works projects

SB 5133 was one of several bills related to the construction industry, especially small businesses, that might have ended up increasing costs and

adding to workforce shortages. The bill died, thankfully, after passing out of committee. None of the Whatcom legislators were sponsors of this bill, which would have required all contractors looking to engage in public/ government work to have a “registered training agent,” something many small contractors can’t afford.

HB 1106

Concerning qualifications for unemployment insurance when an individual voluntarily leaves work

HB 1106 unfortunately passed and was signed by the governor. It will make it easier for individuals to gain unemployment benefits by expanding the standards for “voluntarily leaving work.” Employers in Whatcom County and across the state are already struggling to hire employees; this will

make it easier to be unemployed.

Shewmake voted “no.” Lovelett, Ramel and Lekanoff voted “yes.” Rule and Timmons voted “yes” on final passage.

SB 5217

Known as the Ergonomics Bill

WBA members might recall the debate over ergonomics several years ago, as a ballot measure repealed the regulations that were passed by state government. SB 5217 now removes the restriction passed by voters on the regulation of work-related musculoskeletal disorders (“ergonomics”), except for home offices. This new law will increase the power of the state Department of Labor and Industries to fine small businesses even when the state doesn’t have any scientific consensus on musculoskeletal injuries. The bill passed even though

workplace safety is improving, worker injuries are decreasing and employers are struggling to come back from a pandemic. We should be making it easier, rather than harder, for our businesses. Lovelett sponsored the bill, and all local legislators voted for it.

Stay informed — bills we’re watching

We mentioned three other bills that were good to keep an eye on: SB 5482 would replace the state’s business and occupation tax with a margins tax. HB 1795 would make the estate/death tax “more progressive.” HB 1484 addresses who qualifies to pay the estate tax by restoring a working inflation index, as the number of people paying the tax is much higher than originally envisioned since there is no functional “death tax index” for inflation. None of these bills either passed or moved out

of committee.

WBA encourages you to stay engaged and to continue to let your state legislators know where you stand on these and other important issues, even when they are not in session in Olympia. It’s a good time to ask them where they stand on all of these issues.

You can access more information on these bills and contact your legislator via https://leg.wa.gov and https://future42.org. ■

Dann Mead Smith, president/CEO of the Mead Smith Group, works with groups such as Project 42, a nonprofit organization created to change the course of Washington state. Prior to starting his own firm, Dann was president and CEO of the Washington Policy Center. He also served on the Advisory Group of the Washington State Tax Structure Study Committee and the Citizen Performance Audit Oversight Board. Dann is a graduate of Western Washington University and lives part time in Birch Bay.

Bridge the path to business ownership

SBA 7(a) loans can help build generational wealth

Jeffrey Jansen

If you dream of owning your own small business, the growing number of current business owners eyeing well-deserved retirement might offer the perfect solution. According to Calder Capital, baby boomers own most of the roughly 15 million privately owned businesses in the country, with approximately 60% of these businesses owned by people born before 1964. With that in mind, roughly 10,000 baby boomers are estimated to retire each day.

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PHOTO: iStockphoto.com/SewcreamStudio

refinancing current business debt, purchasing and installing machinery and equipment, and acquiring furniture, fixtures and supplies.

This could be a perfect solution for, say, a younger electrician wanting to purchase a mentor’s 40-year-old electrical business, including the business name, client base, office space, tools, equipment and materials.

Eligibility for SBA 7(a) loans up to $5 million is based on various factors, including the nature of the business, credit history, cash flow, collateral and guarantor support.

How does the SBA 7(a) process work?

The SBA Lender Match referral tool can help buyers find an autho-

rized SBA lender, such as Peoples Bank. As a locally owned community bank in operation for more than 100 years, Peoples Bank is uniquely positioned to help customers with this type of loan. Having firsthand knowledge of a customer’s personal story and financial goals is also especially helpful when it comes to processing loan applications. And, because Peoples Bank is focused on building long-standing relationships with customers, we can also play the role of matchmaker, connecting customers nearing their retirement with young entrepreneurs just starting to build their careers.

Loan applicants will be asked to provide a standard financial package, including business and personal

financial statements and tax returns, along with a small business plan and collateral, where available. For most applicants using a preferred lender, such as Peoples Bank, the process is expedited and typically takes about six to eight weeks.

To learn more about how you can begin building generational wealth with an SBA 7(a) loan, please visit https://www.peoplesbank-wa.com/ SBA.

Jeffrey Jansen is a commercial banking officer at the Peoples Bank Lynden Financial Center. Born and raised in Lynden, he is a third-generation Lynden native and continues his grandfather’s legacy as a veteran community banker. Jeffrey has over 30 years in the financial services industry and of those, over 15 years dedicated to commercial lending. He can be reached at jeffrey.jansen@peoplesbank-wa.com.

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