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| February 2016 |

US economic growth slows to 0.7 percent at end of 2015

On the Cover Her volunteer work with students in a mock trial program helped Leyna Harris, a Kitsap native who went to law school in California, make connections that led her getting hired by a ﬁrm in Silverdale. | Story, page 4 Meegan M. Reid photo

By Jim Puzzanghera Tribune News Service

CPA firms merge Two CPA firms that both have been in Bremerton a long time are merging into one office. Story, page 6

Kitsap Peninsula

Business Journal KPBJ.COM

The Kitsap Peninsula Business Journal is published by the Kitsap Sun the first week of every month, and distributed to business addresses through Kitsap County, North Mason and Gig Harbor. David Nelson, Editorial Director david.nelson@kitsapsun.com Tim Kelly, Managing Editor tim.kelly@kitsapsun.com Mike Stevens, Marketing Director mstevens@kitsapsun.com

Brewery’s big expansion Gig Harbor’s 7 Seas Brewery is undertaking a major expansion and will add a second brewery and taproom in the old Heidelberg building in Tacoma. Story, page 12

Jeremy Judd, Digital Director jeremy.judd@kitsapsun.com For inquires to receive the Kitsap Peninsula Business Journal at your business, contact Circulation Sales Director Hugh Hirata at 360792-5247 or hugh.hirata@kitsapsun.com. To advertise in the Kitsap Peninsula Business Journal, contact Michael Stevens at 360-792-3350. TO SUBMIT NEWS: Tim Kelly, Managing Editor tim.kelly@kitsapsun.com 360.377-3711, ext. 5359

Standard mail postage to be paid at Bremerton, WA

Eyesore to become an oasis A long-¡vacant building that once was a Kentucky Fried Chicken has been donated to The Coffee Oasis, which will open a second Bremerton café there. Story, page 13

WASHINGTON — The U.S. economy slowed sharply at the end of last year, expanding at an anemic 0.7 percent annual pace as business investment and exports fell, the Commerce Department said in late January. Growth in the October-through-December period was weaker than the 0.9 percent ﬁgure analysts had forecast and could raise new alarms about the U.S. economy’s ability to weather a global slowdown and recent ﬁnancial market turmoil. The fourth quarter was the second straight in which total economic output, also known as gross domestic product, declined. The U.S. economy grew at a 2 percent annual rate in the third quarter and 3.9 percent in the second. The new data, which will be revised two more times in the coming weeks, mean that the U.S. economy expanded 2.4 percent last year. That was the same as in 2014. Consumer spending held up relatively well, with personal consumption expenditures increasing 2.2 percent in the fourth quarter. Still, that was down from 3 percent in the previous quarter. But the U.S. economy was dragged down by a drop in exports and business investment. The rising value of the dollar compared with other currencies has made U.S. products more expensive abroad. Net exports declined 2.5 percent in the fourth quarter after increasing 0.7 percent the previous quarter. Private domestic investment also declined 2.5 percent in the fourth quarter as businesses pulled back on spending. Federal Reserve officials raised concerns in late January about how the economy ended last year, and continued weak growth could lead them to delay planned future increases in a key interest rate. Even as the jobs market produced strong gains in December, Fed policymakers noted that economic growth slowed as businesses spent less on their inventories, and that exports were “soft.” Fed officials did not rule out an increase in the central bank’s benchmark short-term interest rate at their next meeting in March, but they indicated they would be watching U.S. data and global conditions to determine if a rate hike was warranted.

| February 2016 |

Law school grad makes her case for staying local By Terri Gleich KPBJ contributor

It pays to listen to grandma. At least it did for Leyna Harris, who landed a job fresh out of law school in a tight Kitsap job market, thanks to her grandmother’s sage advice. A 2006 Olympic High School graduate, Harris attended Whittier Law School in Southern California, but always planned to return to Kitsap to establish her practice and raise a family with her husband, Hank. When she moved home to study for the bar exam after graduating in May 2014, her grandmother insisted that she contact John Mitchell, a well-regarded Bremerton attorney who had done estate work for the family. “I was hesitant. I sat on grandma’s advice for weeks, but I ﬁnally thought, what is the harm,” she said. “Because Kitsap is still a bit small, word-of-mouth, getting involved and reaching out to people” makes a difference. Mitchell met with Harris, listed about 20 attorneys she should contact and encouraged her to highlight her college moot court experience by volunteering as a coach for the Haselwood Family YMCA’s mock trial team. That led her to connect with Ashley Armstrong of Ryan, Montgomery & Armstrong, who also coached the team. Armstrong was married to Mitchell’s law partner, Kevin Cure, and she became an advocate for Harris. “We weren’t actively looking for an associate,” said Armstrong. “But when someone as bright and hardworking as Leyna comes along and wants to stay in Kitsap County, we thought we should make a position available.” At the same time Harris was jumping into her legal career, she was also jumping into motherhood and was six months pregnant when she interviewed with the ﬁrm. There, too, Armstrong paved the way. “I was hired when I was pregnant,” she said. “We are very family-friendly.” Harris got the job in November 2014, but only worked a month before pre-eclampsia forced her to go on bed rest. She returned to

LARRY STEAGALL

IT’S SHELLSHOCKING to come back with Southern California law school debt and make Kitsap County income, but I’m happy to make the trade-off to have a life.” — Leyna Harris

work the following March and has been able to achieve an enviable work-life balance for a new attorney. She works 35-40 hours a week, taking Friday afternoons off to spend with year-old son Henry. She was advised during law school to wait ﬁve or six years to get established before having children and to expect to work 60-hour weeks as an associate. “It’s a striking difference from

Leyna Harris of the law ﬁrm Ryan, Montgomery & Armstrong advises Klahowya Secondary School student Trenton Vellay as he prepares for his role as a defense attorney in a mock trial. Harris is one of the lawyers who work with students on the Silverdale YMCA’s mock trial team.

what I thought I was supposed to prepare myself for and what I found. That’s the really nice thing about Kitsap,” she said. “It’s shell-shocking to come back with Southern California law school debt and make Kitsap County income, but I’m happy to make the trade-off to have a life.” Harris has friends who have passed the bar but are still looking for work or who have taken jobs in Seattle, even though they want to work in Kitsap. One is applying for paralegal jobs, so that she can stay local. “I feel very fortunate,” she said. “I’m good to stay here as long as they’ll keep me.” Armstrong said it’s always challenging for new attorneys to find a job in Kitsap County, where many lawyers are solo practitioners. Her Silverdale firm, the county’s largest with nine lawyers, has only hired two attorneys since she joined in 2011. That’s not because of a lack of legal work, she said, but because of the logistics of running a small business. One example: The firm is out of office space and would have to ex-

pand before putting more names on the letterhead. Ryan Vancil, president of the Kitsap County Bar Association, said the improved economy and the pending retirement of several long-time attorneys is opening up opportunities. However, there’s also uncertainty in the profession as online legal services expand and Washington pilots the use of limited-license legal technicians in family law cases. The biggest

Supreme Court to hear arguments on I-1366 appeal OLYMPIA (AP) — The state Supreme Court has granted expedited review to an appeal of a ruling that struck down a taxlimiting initiative. The high court said Jan. 29 that it would hold oral arguments on the appeal of the ruling on Initiative 1366 on March 15. In January, a King County judge struck down the measure as unconstitutional. He said it

legal employer in the county continues to be the prosecutor’s office, he said. Harris, who is the first person in her family to earn a four-year degree, was attracted to the legal profession to help people. She is still awaiting her first trial and has done a lot of observing, researching and learning in her rookie year. Her early cases have included traffic offenses and landlord-tenant disputes. As a law student, she interned for a criminal defense attorney and clerked for a civil judge. Their words have often been on her mind during the past year. “They both said that going to law school and passing the bar does not teach you how to be a lawyer,” she recalled. “Becoming a lawyer teaches you how to be a lawyer.” While she hones her skills, she’s continuing to coach the YMCA’s mock trial team. The high school students’ challenge is to get an armed robbery conviction expunged from a defendant’s record. They play the roles of attorneys and witnesses, research the law, write motions and prepare for trial. It’s a valuable experience for students, said Harris, and a way for her to further her connections to the community she loves. “You can slowly see them break out of their shells and become a little more assertive about asking questions,” she said. “They all stand a little bit taller and their shouldersarealittlebitstraighter.”

was a thinly disguised effort to propose a constitutional amendment — which can’t be done by initiative in Washington — and that it also violated the rule that initiatives be limited to a single subject. Voters last fall narrowly approved I-1366, which would cut the sales tax by 1 percentage point, beginning April 15, unless lawmakers allow a public vote on a constitutional amendment that would require a two-thirds supermajority in the Legislature for future tax increases.

| February 2016 |

HUMAN RESOURCES | JULIE TAPPERO

Know and comply with labor laws or risk costly consequence

hose of us who manage small businesses often wear many hats throughout the day. At any time, we could be a sa lesperson, bookkeeper, human resources manager, customer service representative — you name it, we’re doing it. Manyof those rolescome withlawsthatdemandcompliance. It’s hard enough to keep all of these balls in the air, but remembering all of the rules that apply to every role is even harder. It would be nice to just say, as Thomas Edison did, that “there are no rules here, we are trying to accomplish something!” Unfortunately, thegovernmentdoesn’tcare about what you’re trying to accomplish. It only cares about rules — and when you lose track of those rules while dealing with employees, you’re making a costly mistake. Here are some basic rules that small businesses sometimes don’t know about: • Comp time: If you are a private-sector for-profit employer, it is not legal to give your employees comp time in lieu of paying them overtime. Comp time is only permitted for nonprofits and government entities. Even if your employees ask to take comp time, it is illegal for them to do so. Sometimes this is an area of confusion, since Washington state law permits comp time for privatesector employers, but it is prohibited by federal law, which trumps our state law. • The Fair Labor Standards Act: This law basically classifies employees as eithersalaried(exemptfrom overtime) or hourly (not exempt from overtime). The lawisveryspecific,andhow youclassifyyouremployees

is not a matter of personal choice. The Department of Labor has recently announced revisions to the rules, and if they go into effect this year, it’s expected that about 5 million more Americans will be eligible for overtime wages. Under the new rules, the salary at which workers will be exempt from overtime will rise from $23,660 to $50,440. You may very well have employees who are exempt now, but won’t be under the new rules. Don’t be tempted to cheat, though, as misclassification can be a costly mistake. • Misclassification of workers: Speaking of employee misclassification, classifying a worker as an independent contractor, rather than as a W-2 employee, is not a choice but a matter of compliance with the law. It’s understandable why many businesses prefer to classify workers as independent contractors — when you add on benefits and employment taxes, the cost of an employee rises by at least 30 percent or more. Both the IRS and the state Department of Labor & Industries have guidelines on the legal definition of an independent contractor. Among other things, it involves: • The worker’s opportunity to make a profit or incur a loss; • The worker’s investment in equipment and materials; • The business’s degree of control over the worker; • Whether the person performs the same work for other businesses; • The permanence of the business’s relationship with the worker • Whether the services the worker performs are integral to the business. There is a huge push to crack down in this area right now, especially with our new gig economy, so

businesses are wise to learn these rules and comply with them. • Requirements for new hires: When you hire

a new employee, you have some legal requirements you may not realize. Washington requires employers to report all new hires

— regardless of their age, gender, or the number of hours they work--to DSHS within 20 days of hire. The purpose of this is to help

the state collect child support. It also helps prevent fraud when it comes to See TAPPERO, 9

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| February 2016 |

Longtime CPA firms see new opportunities in merger By Tim Kelly

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

Larry Hurley began his accounting career in Bremerton in the same building where Dennis Treger’s worked for more than three decades. “I used to see him on the elevator years ago when he worked in this building for Moss Adams,” recalled Treger, a partner since 1982 in the CPA firm Treger & Ball, whose offices have long been in the KPS Health building at Fourth Street and Warren Avenue. He and Hurley have become much more than professional acquaintances recently. They are merging their CPA firms, and Treger’s staff will relocate in June to the Hurley, Williams & Cook offices in the Hearthstone Building out on Kitsap Way. The two principals see a lot of positives in the merger — the combined operation will be renamed Hearthstone CPA Group — although it was an unfortunate circumstance that brought it about. “My partner (Dave Ball) has a terminal brain tumor, and we found out right after our busy season last year,” Treger said. “That caused me to ponder how we would take care of our clients, and also take care of our staff.” He hired a consultant that specializes in CPA mergers, and that search identified Hurley’s firm as a potential good match. When he was contacted last

MEEGAN M. REID

From left, CPAs Larry Hurley, Dennis Treger, Chris Cook and Neil William at the Hearthstone Buidling in Bremerton.

summer, Hurley was open to a partnership because he was concerned about succession in his business. “The number-one issue for CPA firms is succession planning, having members in your firm that will succeed you and allow the firm to continue to be successful,” he said. “If you don’t really have people in place for succession, a merger is usually the next step.” The merger will result in a new

firm with 16 CPAs and a total staff of 23 at Hearthstone. Hurley and Treger said new opportunities will result from the combined expertise of the two firms. “It’s certainly going to provide more opportunity for our staff, and it also gives us a much deeper bench for clients, in financial accounting matters as well as tax matters,” Treger said. “They do and we do a lot of accounting and auditing, and we wanted to make

sure the ﬁrm we would hook up with had a commensurate A&A practice.” Hurley said clients will have greater access to more professionals with a range of expertise, and there will be more collaboration among the larger staff. “There will be additional skills, knowledge and experience in one location,” he said. “With a larger ﬁrm, I think we’ll be able to attract more clients, certainly

State unemployment tax rate dropping for most employers in 2016 The state Employment Security Department has issued 2016 tax rate notices to employers and updated its website (https:// www.esd.wa.gov/employer-taxes/determining-your-tax-rates) with all the new information. Tax rates in all 40 rate classes declined from 2015 to 2016, ranging from 0.10 to 5.7 percent (not counting delinquency taxes).

About 83 percent of Washington employers will move into a lower rate class or stay the same this year. Highlights: • 83 percent of employers will have a lower tax rate in 2016, 0.3 percent will remain the same, and 16 percent will move to a higher rate class. • The average tax rate will

decrease from an estimated 1.48 percent in 2015 to an estimated 1.26 percent in 2016. The average total tax paid per employee will decline by $48 to $277. • About 39 percent of all taxable employers are in rate-class 1, taxed at 0.10 percent. Ninety percent of employers in rate-class 1 have ﬁve or fewer employees. • The experience-rated portion

of the 2016 unemployment tax (paid by rate-classes 2 and higher) will be based on beneﬁt payouts from July 2011 through June 2015. • Unemployment tax collections will decrease from $981 million in 2015 to about $836 million this year. •Employerswillpayunemployment taxes on the ﬁrst $44,000 of each employee’s earnings.

larger businesses in the area. And having additional clients will result in more opportunities for the CPAs and other employees in the office.” Hurley worked for Moss Adams — one of the largest CPA firms in the country, though it no longer has a Kitsap office — and transferred in 1989 to the company’s Bremerton office, where Treger had worked before becoming a partner in Ball’s firm. Hurley joined his current firm in 1993 and became a partner a few years later. In 2001, he and a couple previous partners who are now retired bought the Hearthstone Building, which once housed a popular restaurant. The Kitsap Economic Development Alliance is a tenant occupying the lower floor of the building that looks out on Oyster Bay. But KEDA will be moving out when its lease expires at the end of May to accommodate the staff coming from Ball & Treger. KEDA executive director John Powers said the organization is looking for other office space in the Bremerton/Silverdale area. The partners who are merging their CPA firms expressed a high professional regard for each other’s operation. “They’ve been a worthy competitor for many years, and we’ve always had a healthy respect for each other,” said Hurley, whose current partners are Neil Williams and Chris Cook. “I think it’s a good fit,” he added. “We’re in the same city and understand the business climate, and network with the same individuals. “We have a great group of people here — the partners and staff; and we feel the same about the people over there.” • For 2016, new employers will pay 90 percent of the average rate for all businesses in their respective industries.

www. KPBJ.com

| February 2016 |

2016 LEGISLATURE

Hot topics for business include minimum wage, carbon tax By John Stang For Kitsap Peninsula Business Journal

The Washington Legislature’s business agenda this session does not target Main Street much. Rather, the biggest bills currently going through the Legislature’s business committees tackle marijuana and the high-tech world — reﬂecting how Washington’s business world has expanded and evolved in recent years. In fact, the Legislature is in the process of punting to November’s voters the two biggest business issues in the state — raising the state’s minimum wage and putting caps on carbon emissions. Nothing could be more Main Street than raising the minimum wage. The proposed increase affects both business owners and the state’s current minimum-wage workers. Rep. Jessyn Farrell, DSeattle, got a bill passed in the House last year to raise the statewide minimum wage from the current $9.47 an hour to $12 an hour over four years. Seattle, SeaTac, and recently Spokane and Tacoma have raised their minimum wage above the statewide level — creating a hodgepodge of different minimum wages across Washington. But Farrell’s bill quickly died in the Senate Commerce & Labor committee in 2015. That same GOPcontrolled committee blocked a House Democrats mandatory sick leave measure in 2015. This year, Farrell’s bill is poised for likely passage

again in the House and will be sent back to the Senate — if Senate Republicans pass their own minimumwage-increase bill as a good faith gesture to begin negotiating a compromise bill. On the sidelines are a couple influential business lobbying organizations — the Washington Restaurant Association and the Association of Washington Business — that don’t want an increase, but would rather have a nuanced, negotiated bill than face a blunt force initiative in November. So far this session, Senate GOP leaders have voiced no interest in making a minimum-wage counteroffer. The Republicans hate the idea of increasing the state’s minimum wage, arguing that such an increase would hurt small businesses and industries, especially in rural counties where unemployment figures are much higher than in liberal and relatively prosperous King County. Meanwhile, an initiative is set for a public vote in November to raise the state’s minimum wage to $13.50 an hour across four years beginning in 2017 — and it would require paid sick leave for private-sector workers. And at this time, the Legislature does not appear to be a factor in this issue any more. Gov. Jay Inslee recently noted that Washington ranks among the top five states in job growth and leads the nation in gross domestic product growth. “The problem,” he said, “is most workers are not sharing in the fruits of their own productivity... If you work 40 hours a week, you

deserve a wage that puts a roof over your head and food on the table.” Another somewhat Main Street issue is putting a cap on carbon emissions form the state’s top polluters. This affects public health and possibly jobs. But the Legislature is essentially punting on whether to put a cap on carbon pollution in the state with some type of tax or ﬁne, or with a cap-and-trade system. Republicans don’t like the concept because they believe it will hurt industries and jobs. Meanwhile, Democrats support it because of concerns about public health and global warming, and a belief that a clean energy industry can provide a jobs bonanza. No signs have surfaced that a legislative compromise is possible on this issue. So Inslee has ordered the Department of Ecology to develop regulations by this summer to put an annual cap of 100,000 metric tons on carbon emissions from any air-polluting site. The effort will likely include some type of cap-and-trade system in which over-polluting facilities would buy credits from under-polluting sites in Washington, or in other states and provinces with cap-and-trade agreements. No facilities in Kitsap and Mason counties reach that 100,000-metric-ton benchmark. Sen. Doug Ericksen, RFerndale, has introduced a bill to take away the governor’s power to set up carbon emissions regulations. See LEGISLATURE, 8

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10 | February 2016 |

BUSINESS STRATEGY | DAN WEEDIN

How to approach your ‘chip shots’

hip shots are supposed to be easy… automatic, right? Ask Blair Walsh. The Minnesota Vikings placekicker missed a 27yard field goal attempt at the conclusion of the playoff game against the Seattle Seahawks that would have won the game for the Vikings and eliminated the two-time NFC champions. Pundits, bloggers and even his coach all stated, “It was a chip shot and he should have made it.” All these people must not be golfers. The term “chip shot” means that a golfer has a short distance to the hole. Withaneasyclubtohit(e.g., pitching or sand wedge), the expectation is that the shot will be hit close enough to tap in an effortless putt. Walsh had that short distance. Statistically in the 2015 season, 99 percent of field-goal attempts from this distance were converted. The problem is, all of those made previously this season weren’t in -2 degrees temperature and to win a

playoff game. My chip shots are no guarantee. Even as a guy who’s played golf for nearly 40 years, that 75-yard “simple” shot can get dicey if the conditions aren’t right, or if there is a friendly wager at stake. Funny how my grip might get a little tighter; my jaw gets a little more clenched, and my swing becomes sloppier. Any of you who’ve played golf have undoubtedly chili-dipped or shanked your share of chip shots. Chip shots aren’t automatic. They still must be executed on the golf course, the football ﬁeld, and your business. Have you ever had a sales call that should have been a chip shot, but went awry? Have you ever had to deal with an employee issue that you thought would be easy and turned out to be just the opposite? Have you ever been tasked with a project that on the surface seemed benign and then turned chaotic? We all have … we’ve all had chip shots that landed in the sand trap. Here are ﬁve ways you can avoid shanking your professional chip shots: 1. Have a short memory.

Crowdfunding from 9

be better options. Remember, crowdfunding is a form of marketing, and you want to be where your customers are. Do: Follow through on your promises. Watchdog groups and state and federal consumer protection bureaus have begun to shift their attention to deceptive crowdfunding campaigns. “There is an inherent risk of consumer fraud in these campaigns,” said Dargie, “and businesses should be prepared to deliver on their commitments if they want to minimize their risk of legal liability.” Don’t: Fail to manage the expecta-

Past experiences can come back to haunt you. Richard Sherman just barely missed blocking Walsh’s previous ﬁeld goal from the right side. Could he have remembered that and subconsciously overcompensated and pulled the kick left? I’m guilty of reliving previous chip shots from earlier in my golf round and had them affect my next shot. Too many times our previous failures or “near misses” adversely affect our mindset, causing us to act differently. Fear of failure is the leading culprit and that has to be expunged from your mind immediately. 2. Focus on fundamentals. Experts said Walsh had his “plant foot” too close to the ball and his lead foot too far in front. Ironically, his kick mirrors a golf swing. When you get anxious, your weight can get unbalanced and leads to wayward kicks and chip shots. When you professionally lose fundamentals, it also leads to unbalance. Every role and career has fundamentals and they are most often discipline issues (e.g., prioritization, delega-

tions of your campaign’s backers. Delays in business are a fact of life and usually only become a problem when the company fails to keep its backers in the loop. Don’t: Launch a campaign without the liability protection of a properly formed business entity. “You don’t want to be left holding the bag personally if your business has spent all the money on development and has nothing to show for it at the end, and the backers want their money back,” said Dargie. Don’t: Forget about taxes. Proceeds raised from rewardsbased crowdfunding campaigns are usually treated as taxable income to the business. For this reason, Dargie advises businesses to consult with their tax advisors before embarking

tion, time management and decision-making). Fundamentals can go awry when under stress. Which directly leads to my next strategy… 3. Keep perspective. Nothing we do is life or death (unless you’re a brain surgeon reading this, then that’s different). Making too much out of a ﬁeld-goal attempt or chip shots leads to stress and anxiety, which cause losing fundamentals. Likewise, making too much out of a sales call, an investor meeting, an employee review, or a client meeting leads to stress and anxiety, causing you to lose your balance. People sense that unbalance and this causes less than maximum results. 4. Don’t chomp the chip. I once read a chipping tip from golf analyst and former pro Gary McChord. One of my challenges as I addressed the ball for a chip shot is that I’d get “tight.” I didn’t really even know I was doing it, but preternaturally had my muscles and jaw tighten causing me to not be relaxed. His technique was to imagine having a potato chip delicately held between your

teeth. He suggested swinging the club with so much ease that you wouldn’t “chomp the chip.” It was a kinesthetic cue that I could implement. I bet kickers attempting field goals would need to have the same level of relaxation. Do you ever find yourself tense around your neck or jaw before a meeting or other significant event? Test yourself the next time. Being relaxed and “in the moment” is necessary to success. If you find yourself tensing up, imagine that potato chip between your teeth and lighten your death grip. This might help you relax. 5. Accept help. A lot of NFL kickers are left alone with their thoughts as they prepare for big kicks. You see players and coaches avoid them like the plague. On the other hand, pro golfers are given advice from their caddies prior to big shots, especially chip shots. The best players in the world rely on expert advice for help. I’ve met many business professionals that feel like they need to be the lone wolf. They eschew any help feeling like they can figure

out solutions on their own. That’s actually the worst thing they can do. The golfers and athletes who have the most confidence are the ones that accept outside advice and help. The most successful business pros are keenly aware that you can’t be brilliant by yourself. They access coaches, mentors and accountability partners for sage wisdom, perspective and even just a listening ear. Make no mistake, “bad stuff” happens. Many things are outside of our control. However, there is much within our control and between our ears that lead to assuring that your “chip shots” fly through the goal post or close to the pin. By using my five strategies above, you’ll be well on your way to unleashing your best shot every time. • Dan Weedin is a strategist, speaker, author and executivecoach.Hehelpsbusiness leaders and executives to become stronger leaders, grow their businesses, and enrich their lives. You can reach him at 360-697-1058; e-mail at dan@danweedin. com or visit his web site at www.DanWeedin.com.

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on a crowdfunding campaign. • For help with starting, growing or successfully exiting your business venture, contact SCORE — Mentors to America’s Small Business. SCORE is a nonproﬁt organization with more than 11,000 volunteers who provide free, conﬁdential business mentoring and training workshops to small business owners. To contact Kitsap SCORE, email kitsap@scorevolunteer.org, call 360-328-1380 or visit kitsapscore.org. Ken Sethney is a volunteer business mentor and branch manager with Kitsap SCORE. He is a former ad agency creative director and marketing coach whoworkedwiththeownersofmidsize companies throughout the U.S. Contact Ken via email at ken.sethney@ scorevolunteer.org.

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| February 2016 |

What will become of former KPS building? ■ Glass-paneled structure in Bremerton is one of area’s most recognized By Josh Farley

jfarley@kitsapsun.com 360-792-9227

New ownership likely will bring a new name for Bremerton’s glass-paneled KPS building. For starters, KPS Health Plans was absorbed by Group Health Cooperative, its owners for a decade, at the end of 2015. Group Health has put the building at Fourth Street and Warren Avenue on the market for $5.3 million. The building’s future is unclear, but it maintains a healthy list of tenants that include accountants, lawyers, federal contractors and, of course, health care professionals in the four-story building. The new owners could take over the entire building or continue to manage the building with a number of tenants, according to commercial real estate experts at Bradley Scott, whose offices are located inside as well. The building’s location, design and functionality give the real estate professionals conﬁdence it will fare well in the coming years. “This building was the newest and nicest building downtown for decades,” said Vic Ulsh, who has worked inside

ton, South Carolina-based company is bringing 50 employees to Bremerton as part of a three-year, $53 million contract it was awarded by the federal government in December. Employees here will support the Naval shipyard in Yokosuka, Japan, with planning and engineering. In layman’s terms, they’ll provide plans and designs for repair work and other services to the Navy so that they can keep “the ships out to sea where they belong,” said Peter Thomas, program manager for shipyard support services for the ﬁrm. “We’re excited to be here,” Thomas said. “And we’re still hiring.” The company, with a presence at many shipyards around the country, is increasing its allotment in the building to 6,800 MEEGAN M. REID/KITSAP SUN square feet from about 900. The future of Bremerton’s KPS building is unclear, but it maintains a healthy list of clients in the four-story building. The property, which once housed an elemenits walls since 1981. “It still bles reinforce its stability, as do space is rented. Peninsula tary school, was developed seems to me like it’s ahead of circular concrete pilings that Community Health Services, by Land Title Associates of its time.” line its exterior. which took over much of the Kitsap County. In 1993, Kitsap The robust building includes “There is not another build- space once used by KPS, has Physician Service bought the a concrete core, an inconve- ing as functional and as solid the biggest share, with almost building for $3 million. Parknience only when hanging art as this one,” Gartin said. 11,000 square feet. ing was added in 1995 following on its walls, said Gary Gartin, Two-thirds of its roughly The newest tenant is Life Cy- the purchase and demolition of also of Bradley Scott. Steel ca- 45,000 square feet of office cle Engineering. The Charles- some neighboring homes.

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12 | February 2016 |

Craft brewers barrel into beer history ■ Unable to expand at Gig Harbor site,

7 Seas building big facility in Tacoma By Tim Kelly

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

The 7 Seas Brewery partners thought their last move was big, but “This place is huge; it dwarfs anything,” Mike Runion says while walking through the cavernous building that will house a second production facility for the Gig Harbor-based craft brewery. He points to old catwalks and conveyors overhead in the 80,000-square-foot building, which was built around 1950 and was part of the Heidelberg Brewery complex in Tacoma. Heidelberg, which in its heyday as a regional brewery produced about 750,000 barrels a year, closed in 1979 after nearly 75 years in the city, and the building’s history is a big part of what attracted Runion and 7 Seas partner and brewmaster Travis Guterson. That, and they needed more space to expand their steadily growing microbrewery, which produced more than 5,000 barrels of beer in 2015 at their Gig Harbor facility. Since 2012, the 7 Seas brewery and taproom has occupied about half of the building that used to be a QFC grocery store in the Peninsula Shopping Center near the town’s downtown waterfront. “When we first walked in the QFC site four or five years ago, it looked huge. I never would have thought we would’ve filled it up,” Runion says. That happened sooner than expected, though, and he and Guterson thought their next step would be expanding into the other side of the 25,000-square-foot building, which remains empty. Runion admits they’ve had “some head-scratching moments” about why their landlord hasn’t leased them the entire building so they could expand. “For over two years now we’ve had a standing offer to take over the whole site, and no word back,” he says. “We take fantastic care of the building as if it were our own, and we pay rent and we want

more space — we’re kind of the best tenant possible.” The shopping center, which has been around for more than 50 years, has other vacant sites and several smaller tenants. The 6-acre property was purchased by the Milgard family after QFC closed in 2011, and the owners are considering redevelopment options that include demolition, though not of the building where 7 Seas has a long-term lease. Olympic Property Group is managing the redevelopment project, and has held community meetings to get input on what might be done there. “I think the owners … have wanted to keep their options open,” OPG president Jon Rose explains, adding that any redevelopment would not affect the brewery’s long-term lease. “They’re not sure what the best plan is for the future of the center. “That place is really in a period of transition, and I think the ownership just really wants to get a read from the community on it.” However that transition turns out, the brewery owners decided to ﬁnd somewhere else to expand, and after an extensive search they found it on the other side of the Tacoma Narrows bridge. “We needed to look at other options for the company,” Guterson says. “The solution to this was to look into a building we could purchase that would be viable for our long-term future and a slow, sustained growth pattern.” Launching an ambitious expansion in Tacoma hasn’t lessened the 7 Seas owners’ appreciation of where they established their microbrewery and taproom, and they say it will be business as usual there for years to come. “The thing we always reassure everyone about is we have the utmost gratitude for the community of Gig Harbor,” Guterson says. “Mike and I are both residents, and the community has shown nothing but support for us. “We’re not going anywhere and nothing’s changing; we’re just expanding over the bridge.”

COURTESY PHOTO | RCMEDIA PHOTOGRAPHY

Travis Guterson and Mike Runion, co-owners of Gig Harbor’s 7 Seas Brewery, stand in front of the doorway to the second-ﬂoor space that will be the taproom at their new brewery in Tacoma. The 80,000-square-foot building they bought is the old Heidelberg Brewery building.

The brewery they’re building over the bridge will subtantially boost their production capacity. Runion says production volume has increased between 35 and 70 percent each year since 7 Seas opened in 2009, and it exceeds every brewery on the Kitsap Peninsula except Silver City in Bremerton (see chart). They recently expanded their distribution to Eastern Washington, and within the next three to ﬁve years 7 Seas could triple or quadruple its annual production, Guterson estimates. They’ll be ready to ramp up production again when the time comes, because they’re installing infrastructure and utilities in their spacious Tacoma building to accommodate another brewhouse when needed. “We basically have already laid out not just the facility that we’re getting ready to put in place here, but another facility, a larger one,” Runion says. “Long-term we’ve built the site out to do 80,000 to 100,000 barrels (a year), if we’re lucky enough to ever get there.” He ﬁgures 22,000 barrels is the bar to clear for future expansion, See BREWERY, 36

| February 2016 |

Complimentary coffee

■ Owner of former KFC in Bremerton gives building to Coffee Oasis a grateful Frederick said. And the timing couldn’t have been better. Frederick said that about two weeks

TIM KELLY

The building on Naval Avenue near a Puget Sound Naval Shipyard gate in Bremerton was once a Kentucky Fried Chicken but has been vacant since 2008. The property has been donated to The Coffee Oasis, which plans to move its drive-thru operation to the site. By Tim Kelly

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

Overgrown blackberry bushes behind a boardedup building started a chain of events that resulted in a unique donation to a Bremerton nonproﬁt. The site on Naval Avenue a block and a half from the shipyard gate was once a Kentucky Fried Chicken, but the building has been vacant for eight years. Soon it will have new life when The Coffee Oasis remodels the building and relocates its drive-through coffee stand there. The Centioli family of Kirkland that had owned the KFC wasn’t able to sell the property, which became an eyesore and attracted vandals. The condition of the site caused concern for neighbors like Ruben Sanchez-Teran who live on Burwell Place, a dead-end street next to the property. Sanchez-Teran said when he complained about blackberry bushes at the back of the lot growing through his fence, he

learned that “they were having trouble selling property and were considering giving it to a charity, and that’s when I mentioned Coffee Oasis.” The got the attention of Lauren Centioli, who helps manage his family’s real estate portfolio. “I emailed the neighbor, and he responded and said if anybody deserves our support, it’s them,” Centioli said. His grandfather, Gill Centioli, was the original KFC franchisee in Washington (and hosted the chicken chain’s founder, Colonel Sanders, in his Seattle home), and at one time he owned 41 restaurants in the Puget Sound region, including four others in Kitsap County. Most of the former restaurant properties still owned by the family are in the Seattle area, and Lauren Centioli said family members had discussed what to do with the Bremerton site last year before he heard from Sanchez-Teran. “We wanted to put the property to the highest and

best use, and decided that would be putting it in the hands of local charity,” he said. “This is the only one we’ve donated, and given its proximity to the naval base, we were thinking about a military charity.” His thinking changed when Sanchez-Teran’s recommendation led Centioli to research Coffee Oasis and its programs helping homeless youth, which are partly funded by revenue from the nonproﬁt’s cafés in Bremerton, Port Orchard and Poulsbo. “I had not heard of them before,” Centioli said. “So I went on their website and looked at the history, and saw they had multiple locations, so that sort of validates that the concept works.” He contacted Coffee Oasis executive director Dave Frederick, and without even meeting in person, Centioli arranged for donation of the Bremerton property, which has an assessed value of $256,000 on Kitsap County tax records. “It’s the ﬁrst building we’ve ever been donated,”

before Centioli ﬁrst contacted him last fall, Coffee Oasis had decided to ﬁnd a different location for its

drive-thru stand, which has been at the corner of Sixth Street and Veneta Avenue in Bremerton for more than six years. The nonproﬁt renewed its lease there for the ﬁrst six months of 2016, and See COFFEE, 14

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14 | February 2016 |

Site near Bremerton ferry may get eatery ■ Developer plans downtown Chung’s Express By Josh Farley

jfarley@kitsapsun.com 360-792-9227

TIM KELLY

The Coffee Oasis plans to move its drive-thru stand on Sixth Street in Bremerton to a new location in a building on Naval Avenue that was donated to the nonproﬁt organization that helps homeless youth.

Coffee from 13

Frederick said they plan to transition to the remodeled building on Naval Avenue by late spring. Grants and donations, including $10,000 donated by Kitsap Bank, will cover most of the $75,000 that Coffee Oasis has budgeted for renovations. Frederick said they’ve already accepted bids for work on the project and are just waiting for permits to get started. The 2,200-square-foot building will become the nonproﬁt’s fourth café in addition to its drive-thru site. There will be seating for 40 people, and it will serve the same menu as the other cafés although the food will come from the kitchen at the other Coffee Oasis in Bremerton, which is less than a mile away on Burwell Street.

The new location will not have a youth center as the other three locations do, although it will provide job training for Coffee Oasis clients. “We’re eager to be by the Naval (Avenue) shipyard gate,” Frederick said. “And we’re hoping to maintain most of our current drivethru customer base.” The building has a large kitchen space that could be equipped for baking or for use when Coffee Oasis does catering. “Our intent is, in a financially feasible way for us, to get it up and running and profitable, and then evaluate in stage 2 what to do with the kitchen area,” Frederick said. Centioli, who hopes to come to Bremerton for the grand opening of the new Coffee Oasis site, called it “a great symbiotic fit with their use of it as a café and our family background in

the restaurant business.” Sanchez-Teran, the neighbor who was the catalyst for the property donation, said he had occasionally attended Sunday worship services at the Coffee Oasis on Burwell with a friend whose son works at one of the cafés. He’s pleased that the long-vacant building next door will be cleaned up, and that an organization that’s good for the community is moving in. “I was happy for them, that they can expand and make more of a presence,” Sanchez-Teran said. “They are a very worthy cause helping out homeless youth in the area, and I’m glad to see them growing.” Frederick said his organization is excited by the opportunity “to be part of community revitalization by turning an eyesore into a nice-looking local coffee shop.”

For 25 years, Poulsbo developer Tim Ryan has owned two Bremerton properties at different ends of Pacific Avenue. He built an office building on the first parcel, at Sixth Street near the Admiral Theater. But the second, a sliver of land across First Street from the Puget Sound Navy Museum, has remained vacant. “I wanted to put something in there that’s meaningful,” Ryan said of the property. “Something that would fit well there.” He believes he’s found it in his son’s Silverdale business, Chung’s Teriyaki. Ryan is set to construct a nearly 5,000-square-foot building that would have room for a second Chung’s location, plus plop three apartments on top of the restaurant. The business, owned by Chung Nguyen and wife Oanh Truong, has been looking to move into Bremerton for some time, Nguyen said. He called Ryan his “mentor” and said

MEEGAN M. REID / KITSAP SUN

Tim Ryan’s property next to the South Paciﬁc Sports Bar in downtown Bremerton, where the developer plans to build a new restaurant.

he’s excited to partner with him on the project. “I’ve been bugging him, let me do something there,” Nguyen joked. “He told me, ‘Why don’t we do it together?’” Nguyen, who owns a Silverdale Teriyaki location and sold a Poulsbo location years ago, plans Chung’s Express in downtown Bremerton. It will include popular items found in Silverdale and soups and sandwiches, with breads made at an on-site bakery. The focus will be on making things quickly, to cater to the lunch rush from the Puget Sound Naval Ship-

yard, as well as ferry riders and others. “We want to make everything fast,” he said. Ryan plans to get going on construction at the site, sandwiched between the Bremerton Bar & Grill and the South Paciﬁc Sports Bar, “as soon as we can get a permit.” The project will have to go before the city’s Design Review Board to ensure it complies with the downtown subarea plan. Amenities include roll-up doors that allow customers to sit on a patio connected See EATERY, 16

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16 | February 2016 |

New shop caters to meat and seafood lovers By Rodika Tollefson KPBJ contributor

When Ricardo “Benny” Topete was ready to venture on his own and open a business, a meat market — a business he grew up around — seemed like the best choice. He only knew Gig Harbor in passing, but at the advice of a co-worker he decided this “beautiful place” would be the right ﬁt. Six months since opening Harbor Farms Meats & Seafood near downtown, he says it was the best decision of his life — after getting married, that is. “It’s my passion to be a meat cutter and manager of my own store,” says the father of three. Harbor Farms’ selection is focused on all-natural meats that are free of genetically modiﬁed organisms, as well as wild-caught, fresh seafood. Much of it comes from around the Northwest, but some is sourced from beyond — like the Maine lobsters and the Southern chicken. In addition to a wide range of fresh meat and seafood choices, the store sells some all-natural frozen food, as well as gourmet and organic brands of everything from tortillas to coffee. Fresh salsa and tamales are provided by Taqueria Las Mulitas, an Aberdeen restaurant that Topete’s father owns. Meat cuts and meatloaf are made in-house, while marinated meats such as chicken and taco asada as well as stuffed chicken breast varieties like cordon bleu are brought in from a

Eatery from 14

to an existing city plaza. Rice Fergus Miller, the Bremerton architects who designed the project, said the proposal aims to help

RODIKA TOLLEFSON

Harbor Farms manager Benny Topete can be seen behind the counter helping customers seven days a week. The store was his brainchild and came to reality thanks to his father’s investment to launch the business.

Topete, who lives in Lacey, is a second-generation butcher. His father, Jorge, had a butcher shop in Mexico, and later opened a Mexican market in California, where the family moved in the ’90s. Young Benny was about 6 when he started doing odd jobs at his father’s shop. “This is what I know,” he says. Topete worked at a meat shop in Lacey for eight years, and as the manager, he learned every aspect of the business. He noticed that customers were looking for healthier, more sus-

tainably sourced products, as well having a yearning for locally owned shops. “They get tired of the big markets,” he says. “It brings people back to the old times — they want an old-fashioned butcher.” His Lacey store co-worker, who was an industry veteran, suggested that Gig Harbor and Bellevue would be good locations for this type of a market. Gig Harbor was closer to home. There was just one setback: Topete didn’t have the money to do it on his own. So his father became a silent investor. “He gave me the chance to do it,” Topete says. It took about seven

months to get everything together once he chose his location, a vacant storefront on Kimball Drive that was formerly home to a scrapbooking store. An extensive remodel included turning a large part of the space (about 12 by 34 feet) into a walk-in cooler and freezer. “Opening was the toughest part,” he says. Jorge Topete got to see the result of his investment recently. He came to help out at Christmastime, when the store was very busy — Topete says he sold 2,500 prime ribs during one week alone. “Dad is happy (with the business),” Topete says. Buy the rush of custom-

create a “prominent destination for pedestrian trafﬁc.” No on-site parking will be provided, according to plans submitted to the city. Ryan’s other building at Sixth and Paciﬁc has endured its share of struggles — it has narrowly

avoided foreclosure on two occasions and still is not fully leased. Yet Ryan, who helped bring about Bremerton’s St. Patrick’s Day parade, remains upbeat about the city. He remembers coming to Bremerton as a child when

it was the county’s retail hub and says the city’s potential is too often undersold. “I don’t think people realize what was there, what could be there, and what a steal it is to live there,” he said.

local provider.

Family tradition

ers doesn’t just come during the holidays. On a recent Saturday afternoon, a time that typically sees a slowdown after the morn-

ing peak, the four employees and Topete worked fast to keep up with about 15 customers. Many of the customers are repeat — and know Benny by name. “I was busy since day one,” says Topete, who works seven days a week. “Every day is better and better.” It’s not just the quality that brings customers like Bob Green, a Lakebay resident who shops at Harbor Farms a few times a month. “I like the consistent quality and the good sourcing,” Green says. Topete, who says he doesn’t have a target niche (“It’s everybody,” he says), considers his customers one of the best parts of his job. “I like to help people with their food and best quality of meat and best prices,” he says. “It’s fun when you do something you like.”

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Events And Activities VISIT the HBA Website! www.kitsaphba.com

2016 Ofﬁcers

Wednesday, February 3 Remodelers Council Mtg., HBA 4pm The Basics of Social Media Thursday, February 4 Business Mngmt. For Business Professionals This Class Open to All Register with BIAW www.biaw.com Wednesday, February 10 EPA Lead Certified Training EPA Lead Certified Refresher This Class Open to All Class is at KBA Office in Bremerton Register with BIAW www.biaw.com Thursday, February 11 --Special Date-Developers Council, 7:30am Friday, February 12 Final payments due for Peninsula Home & Garden Expo. Required Expo documents due today Wednesday, February 24 1st Aid & CPR Class KBA 2:30pm-5:00pm Class is Open to All Register with KBA 360-479-5778 Thursday, February 25 Executive Committee Mtg., 2:00pm Government Affairs Cmt., 2:30pm Board of Directors, 3:30pm

Mark Your Calendar! March 2, 3 & 4 CESCL Certiﬁcation CESCL Recertiﬁcation Class Open to All Register with BIAW www.biaw.com Class Held at KBA in Bremerton March 18, 19, & 20 Peninsula Home & Garden Expo Check out the Details on: www.kitsaphbahomeshow.com

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

2016 Builders & Assoc. Directors

Kitsap Building Association – New Name, Same Great Organization

Bill Broughton, Ellen Ross-Cordoso, Walter Galitzki, Stuart Hager, Jim Heins, Joe Hurtt, Chad Lyons, Brendan McGeer, Jo Pederson, Shad Smallwood

2016 State Directors

Message from Kevin Ryan, President 2016 Over the years, the Association and its members have considered whether our name is inclusive enough and if it accurately reﬂects all we care so much about. At the foundation of our purpose is the support and advancement of small construction companies that build homes in our community. This has been, and continues to be, a paramount concern. Additionally, our Association is a professional trade organization for other small businesses like cabinet shops, ﬂooring companies, painters, plumbers, and so much more.

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

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

Life State Directors Bill Parnell

2016 National Directors Berni Kenworthy, Shawnee Spencer, Kevin Ryan

As the only active construction trade organization in the County, the Association is also a place for commercial builders and companies like the one my Dad built, Tim Ryan Construction, and many others in our membership. The Association crossed a threshold last year. 2015 was the 60th anniversary of the HBA. For over 60 years now, we have been advocating and supporting construction companies in Kitsap County. In late 2014 a group of loyal and dedicated members began working together, at the direction of the membership, to evaluate the name of this Association. In early 2015 the Board selected local, member marketing company The Rockﬁsh Group to help in the process. Ultimately, in October 2015, at the General Membership Meeting, the members voted overwhelmingly in favor of a new Association name! The name chosen is: Kitsap Building Association. Following that vote, effort was put to ﬁnalizing the new logo to go with the new name. At the General Membership Meeting in December, the members voted on a new image/logo, as shown here and in other places in this newsletter. On January 21, 2016, the National Association of Home Builders’ Board of Directors voted in support of our request to change our name. The roll out of the new name will begin now! We have been the most respected, effective, and consistent trade association in Kitsap for 60 years and we fully expect to continue that same tradition for many more! I want to thank our members that invest in our work on behalf of the industry and we hope more companies in Kitsap will see the connection and join. We are stronger when we are together.

2016 Alternate Natnl. Directors Mike Brown, Jeff Coombe

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

2016 Council & Committee Chairs Build A Better Christmas ..... Randy Biegewald Built Green.............................Walter Galitzki By Laws & Nominations ........Judy Eagleson Developers Council..................... Mike Wnek Golf Classic........................Shawnee Spencer Govt. Affairs Cmt..................Miriam Villiard Remodelers Council Chair.....Molly McCabe Membership ....................... Berni Kenworthy Parade of Homes .................................... TBD Peninsula H&G Expo....................Lena Price Peninsula H&R Expo Leslie Peterson & Judy Eagleson

HBA Staff Exec. Vice President .....Teresa Osinski, CGP tosinski@kitsaphba.com Events & Admin. Assistant .......Katie Revis hbaevents@kitsaphba.com Admin. Coord. & Membership Asst. Jennifer Phillips info@kitsaphba.com

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

www.KitsapHBA.com

Call for VENDORS! Peninsula Home & Garden Expo 2016 Sponsored by: Kitsap Building Association, Kitsap Credit Union, Kitsap Sun, & Advantage Nissan Booth sales are underway! Kitsap businesses now’s the time to purchase your space. While this is a home and garden event, vendors of all types are encouraged to participate. If you want to get your name out there, if you have a product you want to sell, if you have a service Kitsap residents need to know about, this is the event for you! Be a vendor because: We advertise extensively for this event in print, on-line, cable, signage, and billboards. The Official Expo Guide is published in the Kitsap Sun and distributed to thousands of subscribers Booths are affordable from $350 (outside includes quality tent) to $575 inside. We give you extensive Set-up and Tear-down time All booths come with professional draping, free electricity, table, and chair We offer free wi-fi. Parking is Free for vendors (in designated locations) You keep all your profits; no “vending” surcharge. You will have over 20 Hours Open to the Public You may be able to teach a seminar (applications are available on our website) We provide you up to 6 free Vendor Badges for easy In/Out privileges We have on-site, professional, Expo Management to assist you throughout the event Why Kitsap will come: Daily on-trend seminars (free with paid admission to the Expo) Regional Gardening Celebrity Ciscoe Morris (Saturday) 2nd Annual Garden-Art Walk (Peninsula Sculpture Art on Display Daily) 3rd Annual LEGO® Brand Building Challenge for Kids (Sunday) Outdoor Landscape and Inspiration Displays Low Admission Price Free parking Numerous Landscaping and Garden Vendors Be seen! Be a vendor at this professionally managed, annual Peninsula Home & Garden Expo. The Expo is March 18 – 20. Booths are sold on a first come, first served basis. So don’t delay! Reserve your space today! Call the HBA at 360-479-5778 or on our website at www.kitsaphba.com.

Education Opportunities EPA Renovation/Repair/Paint - February 10, 2016 KBA office in Bremerton (5251 Auto Center Way) Full Certification and Recertification Classes – EPA Lead Certification Do not be caught without the EPA required certifications if you are bidding or working on any home (and some other structures) that were built before 1978. Any contractor that is disrupting a designated amount of square feet in such a property must be a Certified firm and must have a certified specialist on the job. The fines are hefty, enforcement is done by Washington State Department of Commerce, and your liability is long. All companies that are required to have this certification (this may include painting contractors, HVAC contractors, electricians, and remodelers) should register today for this local class! Class Date: February 10 Register at: www.biaw.com

Teresa Osinski CGP Executive Vice President Companies join the Kitsap Building Association for many reasons and no matter the reason we are glad they invest in the services we offer. One reason companies join is to expand their connections in the construction industry here in Kitsap County. Some call this “networking” but what does it really mean? Networking is a method of getting to know business leaders in the community in order to develop rapport and, hopefully, generate business relationships. Sounds easy enough. Even though many members join for that reason they don’t necessarily feel comfortable “networking.” To help our members that want to make those connections and build those relationships we offer many methods to achieve the desired outcome. Direct Networking – The KBA offers several pure social events each year. During these events there are no agendas and rarely any keynote or issuefocused speakers. These are events where our members simply show up, have some tasty treats and mix and mingle. These are always casual and low-key events. All members are encouraged to come and connect, or reconnect, with fellow members. Indirect Networking – Annually the KBA holds several events that serve several purposes but always include the opportunity to network with other members. These events include the May Membership Luncheon, June’s Affordable Council Auction/KBA Dinner, July’s Builder’s Classic Golf Tournament, October General Membership Meeting, and the annual Remodeling Excellence Awards. At these events all are coming together to enjoy an activity or listen to an industry speaker, but in each case there is an opportunity to get to know other members and help them get to know you. So if the purely social events are less comfortable, these events may ease you in by creating a purpose and topic of common interest. Stealth Networking – What is stealth networking? Well, this is where it gets really fun and very rewarding! All year the KBA has committees of members that donate their time to help the Association be successful. These committees are formed to help us pull off important fundraising events for our operating budget and offer our volunteers direct access to our members. By donating your time on our Builder’s Classic Committee, Affordable Housing Council Auction Committee, Peninsula Home & Garden Expo Committee, or the Peninsula Home & Recreation Expo Committee you not only network with other committee members, but you get direct access to all KBA members, and in some cases businesses beyond our membership alone. Committee members always have the “warm call” to a fellow member because your purpose is set out in the timeline of pulling off another essential fundraising event for the KBA. By donating your time in this way, you build the networking connections you’d hoped for while supporting the key and essential events of the KBA. It is really a win win! We need your help and we want to help you! If you’re curious to learn more about each committee, what volunteering entails, and how to get your feet wet, please call the KBA office today! You’ve made the investment, now let us help you reap all the rewards!

Government Affairs Committee Miriam Villiard, Heritage Builders NW LLC Why hire a licensed, bonded and insured contractor? How many times have you heard someone ask for a cheap contractor? Most times when someone is looking for a cheap contractor they are looking for someone who is able to work for less than an “above the board” contractor who pays for their contractor’s license, adequate insurance and a surety bond. It’s impossible for a company who operates per State requirements and pays Federal, State & Local income & B&O taxes, workman’s compensation, and Federal and State unemployment taxes to compete on cost with someone who doesn’t meet these requirements and pay taxes. The Department of Labor & Industries is Washington State’s government body that is responsible for registering contractors. To become a registered contractor, you have to provide to the Department of Labor & Industries proof of insurance and a surety bond. Meeting these requirements costs money, and is the cost of doing business, which is passed along to the consumer. But as part of the cost of doing business, it provides assurance for the consumer and provides some recourse for the consumer should there be a problem with their contractor or the work performed by the contractor. The bond is a security for debt, ensuring that someone will pay when the contractor cannot. General contractors are required to maintain a $12,000 bond, while trade and specialty contractors need a $6,000 bond. Carrying an adequate level of insurance insures that a contractor has coverage should the unexpected happen. Did you know that if you have an unregistered contractor (not licensed, bonded or insured) working on your house and he or she or their employee(s) gets injured on your property, you may be liable for their medical bills and other costs? If the contractor is licensed, bonded, and insured, the Department of Labor & Industries has a workman’s compensation program that employer’s pay into that would cover the injured worker’s medical costs. So how do you know if your contractor is licensed, bonded & insured? Visit www.lni.wa.gov, and click on “Verify a contractor’s or Tradeperson’s license”. On this page, click on the “Verify a Contractor, Tradesperson or Business). Here you can search by Name (Business name or last name of contractor), Contractor/ tradesperson license, Worker’s Comp Account or WA UBI No. When you find the business you are looking for, click on the name. This brings you to a page with a plethora of information regarding the business, including the type of license they hold, expiration date, bond company, insurance company and much more. At the bottom of the page, there is a section called “Workers’ comp”. In this area you can see if the business is reporting workers (employees) and how many. If your contractor shows up to your project with workers/employees and this page shows they are reporting “0 workers”, there may be an issue and you ought to have a conversation with the contractor to ensure their employees are being treated and paid as employees, otherwise, their injuries could end up being your personal liability. The saying “You get what you pay for” holds true in the contracting world. You may be able to find someone to fix your leaking roof for “cheap”, but you will have no recourse if they get injured while working on your property, or 2 weeks later you discover the leak is back. It pays to do business with a business whose practice is to meet or exceed Federal, State & Local requirements. Visit www.Kitsaphba.com and click on “Find a Member”. You can find a specific trade business, a remodeler, a builder or just about any other business that has involvement in the construction industry. To be a member of this association, you have to be licensed, bonded and insured.

2015 Award Winners Announced Each year the association kicks off the year with a celebration to install the new Officers and Directors but also to recognize the members that give so much to our success. This year’s event was packed and full of fun. In addition to announcing our new association name and honoring the committee that worked so hard to help guide the association through the branding process, awards were given for the Builder Member of the Year, Associate Member of the Year, and Remodeling Member of the Year. This year special recognitions included the Orton Lee Award, and Life Director recognitions. Orton Lee Award: This award has only been given one time previously; over a decade ago. It is the award that recognizes the most selfless and dedicated among members. The award is given by the Board of Directors and the recipient for 2015 was Rick Courson. Rick was a Life Director and Past President of the Association. He was one of the original authors of Washington’s first green building program, Build A Better Kitsap (later renamed to Built Green®). The association was saddened to lose Rick last summer. His beloved wife Charmain and their son Robbie with wife Cate were able to attend the event and receive this honor for Rick. To recognize his contributions Charmain was given a beautiful hand blown lamp made by local artist Lisa Stirrett. Special President’s Award: Kevin Ryan recognized Immediate Past President Judy Eagleson for her work chairing the Name Consideration Committee. Judy showed tremendous leadership, tenacity, and commitment to an open and in-depth process to identify the brand and name to represent this industry into the future. Life Directors: A small number of association leaders are ever honored with the privileges of Life Director. To be considered for this recognition a person must have served with honor and distinction and held a position on the Executive Committee. Selections are made by the Board of Directors. Life Directors have voting rights on the Association’s Board for life. At the General Membership Meeting in October three Life Directors were announced. However to surprise them and tell the membership how special each of them are we commissioned the National Association of Home Builder’s Video Dept. to produce brief videos to share the story about each of their contributions to the Association. In addition to their videos each was given a unique and special plaque.

Dee Coppola, CGA Wet Apple Media

Randy Biegenwald, CPA PS Randy Biegenwald CPA

John Armstrong Armstrong Homes of Bremerton

Remodeler Member of the Year

Associate Member of the Year

Builder Member of the Year

Dale Armstrong, Orca Remodeling & Plumbing Services

TJ Erickson, Kitsap Sun

John Armstrong Armstrong Homes

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24 | February 2016 |

Bay

from 23 sloped beach. Starting in July, crews will concentrate on the north side of the mill site, removing bulkheads, pilings and a loading dock before installing clean beach material. Rose, of Pope Resources, said the cleanup’s completion will allow his company to begin redeveloping the mill site. He envisions a bay-oriented residential and retail area with 70 homes, a waterfront hotel and a small dock. “This definitely ushers in a new chapter for the town and the bay,” he said. Thecleanup’shighcostwasn’teasyonhis company, which has just over 50 employees. “It definitely hurt but it was the right thing to do,” he said. Sullivan, the S’Klallam Tribe chairman, wishes the cleanup had gone further. He would have preferred that more wood waste was dredged rather than covered up. “Honestly, we wanted more … but they’ve done a good job to bring the bay back,” he said. Tribal members have harvested shellfish from the bay despite closures and other warnings about contamination.

Briefs from 18

Sound. The 12,500-square-foot facility in Lacey follows the recent merger of Purdy Fun Climbing and Warehouse Rock Gym. The Olympia-based ﬁtness centers joined operations last year after developing a strong following among area climbers over the past decade. General contractor PHC Construction is a regional company specializing in sustainable building. The new facility, slated to open this summer, will be three times larger than the present layout, with double-height climbing walls and a dedicated bouldering area. It will be in the Hogum Bay Business Park, 8276 28th Court NE in Lacey. For more information, check online at www.Warehouserockgym.com.

Leadership Kitsap presents workshop on collaboration Leadership Kitsap and Sound Options Group present Building Collaborative Teams, a workshop facilitated by Greg Abell, on Feb. 26 from 8 a.m. to 4 p.m. at the United Way NonProﬁt Center at 647 Fourth St. in Bremerton. This one-day workshop is designed to help work teams function more effectively. Combining organizational development

LARRY STEAGALL / KITSAP SUN

State Department of Ecology employees Dawn Hooper and Russ McMillan look over the cleanup site along the shore in Port Gamble at the old mill site.

“People need to put food on the table,” he said. “Crab, butter clams, horse clams — these are all staples of our diet, but there’s been real concern about the health of people taking food from the bay.” Sullivan is looking forward to working

with Ecology and Pope Resources on a host of restoration projects — many of which have been underway for years. In 2013, the state Legislature appropriated $7 million for bay restoration and land preservation efforts. The largest share —

theory, adult learning theory and conflict resolution theory, this workshop presents strategies to enhance team performance and improve relationships. The workshop can be customized to meet specific team challenges. Participants will: • Learn a framework for understanding and assessing group development; • Explore the role of leadership during different phases of group development; • Gain skills for effective communication; • Explore effective decision making and how it relates to leadership; • Develop shared expectations, core values, and shared vision. The fee is $130, including lunch, and proceeds benefit the Leadership Kitsap Foundation. Register online: LKTeams.bpt.me

to nonprofits, the new series will focus on helping nonprofits find ways to improve their programs to better serve clients, rather than on administrative issues. The February workshop is designed to help Kitsap nonprofits identify and meet challenges unique to their organizations. The center is partnering with Results Washington to bring Kitsap nonprofits an experienced Lean trainer picked by Gov. Jay Inslee to work with state government. To find out more about the Lean workshop, Lean principles, other trainings, and how to become a Kitsap Center for Nonprofit Excellence member, visit the center’s website at www.kcnestrong.org.

Center for nonproﬁts offers ‘Lean’ workshop The Kitsap Center for Nonprofit Excellence will present a pilot workshop for a potential new nonproﬁt training series based on Lean principles. The workshop will take place from 8:15 a.m. to 4:45 p.m. on Thursday, Feb. 11 in the Humanities and Student Services Building, room 129, at Olympic College in Bremerton. The cost is $75, or $50 for members of Kitsap Center for Nonprofit Excellence. If the pilot workshop proves valuable

Nominations open for YWCA Achievement Awards The YWCA Kitsap County is taking nominations for this year’s Women of Achievement Awards, which will be presented at a luncheon on Friday, April 22 at 12 noon at the Kitsap Conference Center in Bremerton. Award categories this year include arts/ culture/design; business/ﬁnance; community champion; education/training/development; environmental sustainability; health and wellness; nonproﬁt; and public service. Also, new this year is a special category for outstanding workplace. Nominations are due Feb. 26 and winners will be announced in mid-March.

about $1.5 million — helped buy the 530acre Port Gamble Forest Heritage Park on the bay’s west shore. Owned by the Kitsap County Parks Department, the former timberland boasts a network of logging roads popular with mountain bikers and hikers. About $1 million was spent on efforts to enhance oyster habitat, and more than $600,000 was used to remove derelict boats, rusty cars and the tribe’s creosotetreated pier at Point Julia. An eelgrass restoration project and studies of the bay’s mussel and herring populations also were funded by the appropriation. The $2.8 million that remains could help with a planned expansion of the park. Last month, the tribe received a $1.5 million state Department of Fish and Wildlife grant to bolster the restoration effort. Much of the money could be used to buy a portion of the mill site and protect it from development, according to Sullivan. Sullivan said the tribe has learned to be patient with cleanup efforts. They’ll apply that same patience once the barges and cranes are gone and the long process of recovery begins. “We’re not going anywhere, so we’ll make sure it’s done,” he said.

For information on the awards and nominating criteria, visit ywcakitsap.org/ women-of-achievement/.

CougsFirst! business event expands to Seattle Responding to a growing list of businesses that want to showcase their products and services, CougsFirst! is moving its 2016 show to the Washington State Convention Center in downtown Seattle. The fourth annual free networking event isavolunteerinitiativestartedbysixalumni of Washington State University. The showcase of businesses is scheduled for Thursday, March 10 from 4-8 p.m., followed by an after party. Organizers expect a sellout of exhibit space featuring approximately 120 Cougar-owned or managed businesses. Event co-founder Glenn Osterhoutsaid most exhibitors from the 2015 show plan to return, and they’ll be joined by many new exhibitors. The one-stop collection of businesses, all owned or managed by WSU alumni, showcases a wide assortment of products and services ranging from apparel, architects and attorneys to home improvement services, manufacturers and wineries. Several WSU divisions are also participating, including Carson College of Business, Career Services, and WSU at North Puget Sound. More information about CougsFirst! is online at cougsﬁrst.org.

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26 | February 2016 |

Kroger tests concept store catering to foodies ■ Main & Vine opens at former QFC site by Uptown Gig Harbor By Rodika Tollefson KPBJ contributor

The wait is over for Gig Harborites who missed having several grocery store options on the west side of town. More than ﬁve months after the former QFC store on Point Fosdick Drive closed for a major remodeling, its replacement — a new concept store called Main & Vine — opened its doors Feb. 3. Customers of the old QFC store by Uptown Gig Harbor, however, aren’t going to recognize the space, according to store manager Dann Kohl. “It’s airy and open. There are exposed wood beams now,” he said. “It looks completely different.” Although the 27,000-square footprint hasn’t changed, the remodel provided more natural light and opened up ceilings — making the new store look bigger, according to Kohl. The more spacious look is not the only difference from the old QFC. Main & Vine’s focus is on fresh, local, organic, in-season and sustainable foods. The

Housing from 18

and demand buoyed prices. The countywide median price for homes and condominiums was $258,500, 8 percent higher than 2014. The typical winter sales slowdown did little to cool the market. The median price in December was $266,500, besting December 2014 by 13 percent. Buyers on Bainbridge Island paid a median price of $615,000 in 2015. West Bremerton remained most affordable, at $146,000.

LISA ELLEDGE PHOTO

The Main & Vine store in the former Gig Harbor QFC site was set to open Feb. 3.

fresh foods selection will be prominently displayed in the center, where signiﬁcant space will also be dedicated to a bulk foods section. Main & Vine also will sell the more conventional, mainstream groceries — and all of it, including the local and fresh produce, will be at affordable prices, Kohl said. “We’re partnering with some of the best producers in the region, farmers and

purveyors, so we can have a fantastic variety of local foods that our customers will recognize,” Kohl said. An “events center” will provide daily, ongoing programming such as talks with farmers and demonstrations by local chefs. For a full list of events and activities, visit www.mainandvineshop.com. The store also has a coffee, beer and wine bar — made from salvaged train-car wood. (Other

While prices are rising, Kitsap hasn’t seen the return of pre-recession housing bubble. Chris Reiland, CEO of Paciﬁc Northwest Title, believes the peninsula’s base of middle-class jobs are helping restrain the market. “We have slow, steady growth,” Rieland “I think it keeps things in balance.”

demand and low inventory. More homes usually hit the market as spring approaches but sales also tick up. “The only area that’s going to help us is new construction,” said Eliason with the Association of Realtors. The county saw a burst of single-family home permitting in 2015, and those units will continue to come online this year. The question is whether it will be enough to satisfy those hungry buyers. “We’ve got some serious housing challenges in our county,” Eliason said.

LOOKING AHEAD Familiar storylines from 2015 are likely to carry into this year, according to real estate professionals. That includes rising prices, high

furnishings and displays are made of salvaged wood

as well). “It’s going to be a onestop shopping destination,” Kohl said. “We want to be a gathering place to help people connect not only with each other and our associates, but also reconnect with their foods.” To help facilitate the gathering space idea, there will be several seating areas, including outside and on the main level. An upstairs terrace that previously served as a place for storage and offices has been remodeled to create a new seating area. Main & Vine is the ﬁrst brand of its kind for parent company The Kroger Co., which owns QFC as well as Fred Meyer, among other stores. Kohl said the company worked with a branding firm to identify the best market for a concept

that emphasizes healthy and affordable living. Gig Harbor was identiﬁed as the perfect location. “The Northwest in general is a hotbed for local artisans and producers and there’s continued demand for fresh, organic, local, sustainable food in the area,” Kohl said. “Gig Harbor is a very strong community… and was the strongest place for implementing the concept.” The Gig Harbor market will serve as a proof of concept of sorts, but there are no immediate plans for new locations. “We will continue to evaluate expansion plans later, as we go,” Kohl said. Main & Vine will employ up to 110 people, and more than 30 former QFC employees will be returning.

1000 Full-Color Brochures $ 18995

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28 | February 2016 |

State parks might allow advertising By Tristan Baurick tbaurick@kitsapsun.com 360-792-9212

Advertisements promoting everything from pickups to potato chips could soon be cropping up in state parks. Washington State Parks has crafted a draft policy that would allow commercial advertisers to hawk their wares at trailheads, bathrooms, picnic shelters and otherwell-trodspotsatKitsapMemorial, Scenic Beach, Illahee and themorethan115otherstateparks. The aim is to drum up new revenue to ﬁll widening funding gaps. The state’s support for its parks has waned in recent years, forcing parks leaders to rely on new fees, higher fees and other moneymaking enterprises. The state parks commission will hear a report on the proposed advertising policy during a meeting Thursday in Edmonds. “We’re not willing to compro-

Scheduled for adoption in March, the proposal comes after the commisWE’RE NOT WILLING sion in 2014 repealed a 50to compromise our year ban on commercial advertising. mission, but we are State parks eased into looking for opportunities ad selling by ﬁrst offering its print materials and to sustain the parks website. The ﬁrst website system. With ads, the ads appeared in Novembottom line is we don’t ber. Narrow banner ads at the tops or sides of nearly want to interfere with every page now sell bankvisitors’ experience.” ing services, insurance, rental cars, office supplies and other products. — Virginia Painter, state parks Allowing ads meant spokeswoman the park system had to move most of its website’s content off its .gov mise our mission, but we are look- address. Federal policy prohibits ing for opportunities to sustain commercial advertising on .gov the parks system,” state parks sites. State parks still maintains spokeswoman Virginia Painter an ad-free .gov main page, but said. “With ads, the bottom line clicking most content redirects is we don’t want to interfere with to a .us site. visitors’ experience.” The proposed policy for in-

County seeks input on land-use alternatives in comp plan update The Kitsap County Board of Commissioners will hold three public hearings in February to accept public input on the draft land-use alternative staff recommends for the Kitsap County Comprehensive Plan update. “Developing a preferred land-use map from the three alternatives is imperative for Kitsap County because land-use decisions have such direct impacts on the topics that are so important to us now and over the next 20 years: quality of life, public safety, and economic development,” said Commissioner Ed Wolfe. The public is encouraged to attend the hearings to view maps detailing the preferred alternative, and to share their comments with commissioners. The county’s comp plan update is required to be completed by June. The draft plan with three land-use alternatives was issued for public comment in November. Based on input received, staff is recommending a preferred land-use alternative to the commissioners. Following the public hearings listed below, the commissioners will provide direction to staff on which land-use alternative to incorporate into the ﬁnal draft of the comprehensive plan.

The map for the preferred alternative is anticipated to be available Jan. 25. To view the maps and other background documents, visit http://compplan.kitsapgov. com. Additional public hearings will occur on the ﬁnal draft Comprehensive Plan in April, May and June. Public hearings for the preferred landuse alternative begin at 5:30 p.m. in the locations listed below. Maps will be displayed from 4:30-5:30 p.m. preceding the hearings as part of informational open houses in the lobby of each location. • North Kitsap — Monday, Feb. 1 Poulsbo City Council Chambers, 200 NE Moe St. • Central Kitsap — Tuesday, Feb. 2 Central Kitsap Fire and Rescue/Silverdale Water District conference room, 5300 Newberry Hill Road, Silverdale • South Kitsap — Monday, Feb. 8 Hearingtakesplaceduringthecountycommissioners’ regular business meeting in the Kitsap County Administration Building, 619 Division St., Port Orchard For more information, contact Katrina Knutson in the Kitsap County Department of Community Development at (360) 3375777 or kknutson@co.kitsap.wa.us.

park advertising would prohibit messages that are “controversial, offensive, inappropriate or harmful to the general public.” The ads could not include information that is “political” or contains “public issue advocacy.” Tobacco, marijuana, ﬁrearms and adult-rated entertainment are among the products that could not be advertised in parks. The policy stresses that all ads should protect the Washington State Parks “brand” and “credibility.” Each ad proposal will by screened by park staff. An ad could undergo review by the state Department of Archaeology and Historic Preservation if it is proposed near or on buildings older than 45 years or in historically signiﬁcant areas. Painter said state parks will steer away from “huge visible advertising” like billboards and large signs. In some parks, advertising might be limited to lists of

nearby restaurants and tourist attractions. The draft policy does not set limits on ad sizes, materials or lighting. Painter said these details will be worked into a ﬁnal draft. Park officials promised to track public reaction to the ads once they begin appearing in parks. It’s unclear how much money the in-park ads would generate. Park officials hope to earn $5 million per year from online ads. The commission’s decision to nullify its advertising prohibition came via a 6-1 vote in January 2014. Commissioners said the park system’s financial strains left them little choice. Fordecades,contributionsfrom thestate’sgeneralfundmadeup60 to 80 percent of the park system’s budget. Last year, the state contribution amounted to less than 25 percent of the budget. Funding reductions have forced state parks to cut about 200 employee positions in recent years and led to the introduction of the annual Discover Pass and other user fees.

Business Briefs No date set for reopening of Safeway in Port Orchard A Gig Harbor Safeway that became a Haggen last year will become a Safeway again Feb. 3. But Safeway spokeswoman Sara Osborne said no reopening date has been announced for the vacant Safeway-turnedHaggen in Port Orchard, also set to return to the Safeway brand. Safeway parent company Albertsons LLC. bought back both stores from Haggen in a bankruptcy auction last fall. Haggen stores in Silverdale and East Bremerton were not purchased during those auctions and remain empty. The Bucklin Hill Road and Wheaton Way locations were previously operated by Albertsons.

New leadership installed at Poulsbo chamber The Greater Poulsbo Chamber of Commerce is under interim leadership after the resignation of former director Marc Abshire. Abshire stepped down to take a job as executive director of the Port Angeles Re-

gional Chamber, according to a story in the Peninsula Daily News. He was hired in Poulsbo in October 2014. Poulsbo Chamber board treasurer Dan Barry will serve as interim director, according to a news release. “Poulsbo is experiencing historic growth and dynamic new economic opportunities and the board is excited to work together to renew, strengthen and build partnerships in 2016,” Poulsbo Chamber president Ingmar Anderson said in the release.

Olhava auction tops commercial sales The $3.1 million sale of the Regal Cinemas in Silverdale to Newlife Church was among the notable commercial transactions closed in Kitsap County during the last three months of 2015. By far the largest, however, was the foreclosure sale for 42 vacant parcels in Poulsbo’s College Marketplace. MUFG Union Bank, which forced the sale, took ownership of the properties for a recorded sales price of $8.17 million. A total of 85 commercial parcels See BRIEFS, 36

K P B J Not pictured: Kelly Werner, RenĂŠe Martin

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30 | February 2016 |

500 out of work as call center closes

■ Concentrix to shut down Bremerton operation in March By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

About 500 workers will lose jobs by the end of March as phones stop ringing at the Concentrix call center in East Bremerton. Concentrix spokeswoman Jyllene Miller said the company will vacate the sprawling McWilliams Road customer service facility March 28, though operations will wind down sooner. Employees were notiﬁed this week. Miller said the closure was due to business changes being made by the center’s corporate client. She declined to name the client, citing a conﬁdentiality agreement. “We’re so incredibly thankful for the hard work and effort of our staff there,” Miller said. “We enjoyed our staff and enjoyed being

part of the community.” Call center employees told the Kitsap Sun the client is Sprint. The mobile carrier is in the midst of a massive cost-cutting campaign that will eliminate 2,000 call center jobs across the country, according to media reports. Miller said Concentrix will ﬁle a Worker Adjustment and Retraining Notification with the state Employment Security Department this week. Large companies are required to give 60-day notice of layoffs or facility closures. While the company eliminates its brick-and-mortar operation in Bremerton, Miller said Concentrix is adding more “work at home” positions, and will give priority to displaced call center workers as it interviews for those jobs. “A few hundred” at-home positions will be available, she said.

Business Briefs Port of Bremerton installs new wi-ﬁ system at marinas The Port of Bremerton has installed new wi-ﬁ technology for the Bremerton and Port Orchard marinas. Tenants and visiting boaters will now have complimentary access with improved coverage and capacity through the new network connection that provides a 125Mb/per second access link that is shared by both facilities, and can be scaled up to 1 gigabit as demand increases. The new network allows up to 1,000 devices to be connected at one time. “Studies have shown, and our customers have repeatedly told us that the number one utility they value bar none is connectivity,” said Jim Rothlin, Port of Bremerton CEO. “It’s also the number-one frustration they have with marinas as it can so often be weak, slow and unreliable. Our goal with this investment was to ensure that

“We’re going to continue to be a big employer in the state,” Miller said. The East Bremerton call center opened in 2001 and changed hands several times. It was one of Kitsap’s largest private employers over the past 15 years. Jobs available at the center were generally low-paying and required little experience. A recent Concentrix posting for “customer service advisers” offered $10.50 an hour, plus beneﬁts and performance incentives. The positions required a GED or high school diploma, and at least six months of customer service experience. Working at Concentrix was “a very demanding job,” one employee said in an email to the Sun, adding turnover at the call center was high. He’d already begun applying for new jobs but said many co-workers still were processing

our customers’ experience is unparalleled across the board.” A ﬁber optic backbone was installed throughout both properties connecting multiple access points to ensure that coverage is uniform no matter where in the marinas a boat is moored. In addition, commercial-quality equipment that is used in multiple hospitality locations across the U.S. was deployed, so the system is robust compared with typical residential systems. The Bremerton Marina (www.portofbremerton.org/marinas/bremerton) offers 220 permanent slips as well as room for 80 to 100 visiting boaters, accommodating boats up to 120 feet. For more information, visit http://www.portofbremerton.org/marinas/bremerton or ﬁnd us on Facebook: www.facebook.com/BremertonMarina. We can also be contacted at 360-373-1035. The Port Orchard Marina’s (www.portofbremerton.org/portorchardmarina) amenities include covered moorage and nearby full-service repair yards.

MEEGAN M. REID / KITSAP SUN

The Concentrix call center, where 500 people work in East Bremerton is closing.

news of the closure. “This is all so fresh and new, no employee has had time to fully think yet,” the employee said in the email. Hildo Rodriguez with WorkSource in Bremerton said displaced Concentrix employees have a good chance of ﬁnding work. Other call centers in the region are hiring, though those positions aren’t in Kitsap. Rodri-

guez said most customer service workers have skills that would transfer well to other jobs available in the county. “We’re trying to reach out and let them know that we have jobs,” Rodriguez said. “They just have to come in.” WorkSource Kitsap County is located at 1300 Sylvan Way in Bremerton and can be reached at 360-337-4810.

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B ELFAIR L ICENSING | V ISITOR C ENTER

MAKE A NOTE OF IT UPCOMING EVENTS

Annual Red & White Gala & “Hot Stuff” Auction 5:00 p.m. cocktails; 6:00 p.m. dinner Alderbrook Resort & Spa

THURSDAY, FEB. 11 After Hours Event 5:00 – 7:00 p.m. “Love Warms the Heart” North Mason Resources

WEDNESDAY, FEB. 24

Ray A. Johnson

RadSaw Films, Allyn

Belfair

Randell Seymour info@radsaw.com

North Mason Dental Center

360-801-6891

Christine Marshall, D.D.S.

South Sound Country 96.9 K AYO Radio

24070 NE State Route 3 Belfair, WA 98528 360-275-4455

Crystal Evans 1700 Marine Dr. NE www.kayofm.com 360-349-4211

P A G E

Olympia, WA 98501

C O M M E R C E

ALL EVENT INFORMATION: ADENA CLARK, 360-277-5007

WELCOME NEW MEMBERS

North Mason Chamber Board of Directors Back row (L-R): Kris Klusman, John L. Scott, Belfair; Randy Neatherlin, Mason County Commissioner; Pamela White, OUTLOOK Writing & Design; Josiah Rowell, Falcon Financial; Margie Kaiser, Board Treasurer, Peninsula Credit Union; Greg Oldham, RE/MAX Town and Country, Member at Large; Herb Gerhardt, Mason County Public Hospital District #2; Chris Ladner, Board Chairman, Arnold Smith Insurance; Jeromy Hicks, Board Vice Chairman, North Mason Regional Fire Authority; Darren Corliss, Past Chair, Corliss Painting, Inc.; Mason County Sheriff Casey Salisbury. Seated (L-R): Cherie Cloud, Board Secretary; Pam Hanson, Cameo Boutique; Pam Volz, WorkSource Mason County; Kim Haack, Kitsap Bank; Shawna Stice-Hawley, Edward Jones Investments; Leanne Sanchez, Hood Canal Travel. Not pictured: Dana Rosenbach, Superintendent of North Mason Schools. Photo by Steve Zugschwerdt

O F

Membership Luncheon Featuring Andrew Larsen Association of Washington Business 11:30 a.m. – 1:00 p.m. Theler Community Center Belfair

Habitat for Humanity Executive Director (left) and Bill Hunter of Hunter Farms enjoyed lunch expertly served by Alderbrook Golf & Yacht Club staff Camas Baugh (left) and Jane Longan.

C H A M B E R

A special thank you to our very active and dedicated Trustees, who began the second year of their two-year term in January. They were honored at the Chamber’s Annual Gala at Alderbrook Resort & Spa on February 6.

SATURDAY, FEB. 6

J O U R N A L

Business Breakfast Featuring Peter J. Taafe, CRPC®, CFP® Financial Advisor | Certified Financial Planner Professional Vista Financial Solutions, A financial advisory practice of Ameriprise Financial Services, Inc. 7:30 – 9:00 a.m. Union River Grille, Belfair

January 13 marked the first quarterly luncheon the Chamber will host in Union. More than 30 people turned out to kick off the year at the Alderbrook Golf & Yacht Club to get tips on “How to get your name in the News” from Stephanie Rowland, Chamber President & CEO, and to participate in a discussion about the Chamber’s expanded presence in Union. On April 13, Seahawks Stadium Announcer Randy Rowland will be the keynote speaker in Union.

B U S I N E S S

WEDNESDAY, FEB. 3

ENGAGE … ENERGIZE … EXCEL

P E N I N S U L A

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

K I T S A P

CHAMBER NORTH MASON

Whether golfing or stopping for a meal, the view from the Alderbrook Golf & Yacht Club is breathtaking.

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36 | February 2016 |

Brewery from 12

“so we’ve got plenty of room to grow for a couple more years at least before we need to look at doing that.” The partners put together their $6.2millioninvestmentinTacoma — for purchasing the building and installing infrastructure and new brewing equipment — with help from Harbor Realty Advisors and ﬁnancing from the Small Business Administration and Heritage Bank, the bank that worked with 7 Seas as it started and grew its Gig Harbor operation. Runion says they also got crucial support from the Tacoma economic development officials in working out the deal to buy the building, which renowned glass artist Dale Chihuly’s studio had been using for storage. Community and Economic Development director Ricardo Noguera says the city contributed $115,000 for off-site improve-

Briefs from 28

changed hands in the fourth quarter of 2015 for a combined $23.6 million, according to county assessor’s records. Here’s a look at some of the high proﬁle transactions: ■ College Marketplace parcels, Poulsbo — $8.17 million Sale date: Oct. 29 Assessed value: About $21 million Sold by: Hacker & Willig Inc (Trustee) to MUFG Union Bank Description: 42 tax parcels in the College Marketplace development in Poulsbo, adjacent to Walmart and Home Depot. Notes: Previous owner was Olhava Associates Limited Partnership, of Edmonds. Olhava defaulted on loans issued by Frontier Bank. Union Bank was the successor to Frontier Bank, which was closed in 2010. The College Marketplace properties are still listed for sale. ■ Regal Cinemas, Silverdale — $3.1 million Sale date: Nov. 12 Assessed value: $2.95 million Sold by: Eastgate Theatre Inc.

ments required for the brewery redevelopment. His office also assisted the buyers through the permit process and working through “some challenges with off-site infrastructure there.” The 7 Seas project ﬁts in with the city’s overall efforts to revitalize the area at the south end of downtown Tacoma, which is anchored by the University of Washington-Tacoma campus just a couple blocks from the brewery. “When we were approached by Mike Runion, he saw this as an opportunity to take an underutilized building … and revive the old brewery district,” Noguera says. He notes that across the street from the 7 Seas building that takes up two blocks, the city owns 6.4 acres of open land and is working with a Chinese developer that plans to build a $125 million project there with 400 residential units and up to 200,000 square feet of retail space. Runion says another appealing feature of the property is an

old rail spur next to the building, which the city plans to make part of the Prairie Line Trail, a pedestrian and bike path that runs through the UWT campus and will extend several blocks south. “We wanted a walkable area for the taproom,” he says. The taproom will be on the building’s second floor, with glass windows offering a view of the brewhouse, and at the opposite end there will be an open-air rooftop seating area. On the building’s main level, which has space for enlarging the brewing operation in the future, the owners are putting in a canning line. Seven Seas, the ﬁrst craft brewery in the state to sell beer in cans, has been contracting with a mobile operator that comes to the Gig Harbor brewery to do canning. Cans account for about 35 percent of sales and the rest is keg sales, but the 7 Seas owners expect that ratio will even out when the new brewery ramps up. “We’ve always been big pro-

ponents of craft beer packaged in cans, and now we’re starting to see some really good traction,” Guterson says. They also hope to start using a new type of can with a pull-tab that removes the entire top, so it’s more like drinking beer from a glass. Another craft brewing trend is barrel-aged beers, and 7 Seas will set up its barrel operation in a large room in the cellar of the old Heidelberg building. There are also plans to develop a market with the new taproom. Runion envisions renting space to a few vendors “that will craft a product on site and you’ll be able to see the process just like with the brewery, and then you’ll be able to buy those products or sample them here.” That could include a food vendor, but the 7 Seas founders reiterate that they have no intention of starting a brewpub, though customers have often expressed a desire for that. Runion says their compromise is a food truck, a ven-

ture they started last year with partners who are restaurant/bar owners in Tacoma. Their truck, christened The Galley, is usually parked outside the Gig Harbor taproom and sometimes taken to beer festivals. It could visit the Tacoma taproom when it opens. The owners expect to be brewing beer in their new facility this spring, and to have the taproom open by summer. The company currently has about 20 production and retail employees, and will hire another 16 to 20 for the Tacoma operation, which Runion says could eventually have a staff of 40. This undertaking would have seemed unfathomable a few years ago for the 7 Seas entrepreneurs, who had to overcome losing their original brewery to a ﬁre before it opened. “The fact that we’re able to revitalize a historic brewery is about the coolest thing I could ever imagine,” Runion says. “That’s our dream.”

to New Life Church on the Peninsula Description: A 15,000-squarefoot cinema on 2.6 acres at 9923 Poplars Ave. Notes: Newlife Church plans to turn the building into an education and worship center. The cinema will continue to operate into early 2016. ■ 7-Eleven building, Port Orchard — $1.46 million Sale date: Nov. 9 Assessed value: $379,920 Sold by: Karka LLC to Duomo Mercer Island Properties Description: A 3,000-squarefoot convenience store on 0.3 acres at 1794 SE Mile Hill Drive. ■ Children’s Center, Bainbridge Island — $1.35 million Sale date: Dec. 7 Assessed value: $1.19 million Sold by: Amerae Enterprises Inc. to Mosaic Properties LLC Description: A 6,000-squarefoot child care center on 1 acre at 621 High School Road NW. Notes: Home to First Years Children’s Center. Bainbridgebased Mosaic Properties bought two other parcels in the vicinity last fall ■ Future Silverdale Library — $850,000 Sale date: Nov. 11

Assessed value: $808,000 Sold by: Bawd Creekside LLC

■ Front Street building, Poulsbo — $500,000 Sale date: Nov. 20 Assessed value: $309,750 Sold by: Hans and Patricia Ebke to Nucon Northwest LLC. Description: A 3,210-squarefoot building on 0.07 acres at 18966 Front St. NE Notes: Home to Fat Apple Bakery. Nucon Northwest is backed by Bainbridge Islanders. ■ Husky Auto Repair, Bremerton — $390,000 Sale date: Nov. 3 Assessed value: $521,660 Sold by: Ronald Templeton (trustee) to Yu Byung Description: A 5,300-squarefoot building on 0.42 acres at 3740 Wheaton Way. Notes: This was a foreclosure sale. The former owner was East Bremerton Automotive and Retail.

juana retailer called GreenX3, located at 4235 Olympic Drive W. in Gorst. The addition of GreenX3 brings Kitsap’s count of legal retailers to 10 (not including a tribal store in Suquamish, operated under a special compact). The state plans to issue up to 20 retail licenses in the county. There are another 10 producers/processors already licensed in Kitsap. Revenue from licensed recreational marijuana stores rebounded in December, after dipping in November for the first time since the launch of the fledgling industry. Statewide sales followed a similar trend, according to stats released this month by the state Liquor and Cannabis Board. In Kitsap, eight shops reported a combined $1,439,266 in gross sales in December, marking a 10 percent gain from November. The county finished the calendar year with about $11.71 million in retail marijuana sales.

to Sound West Holdings LLC (deed transferred to Kitsap Regional Library) Description: A 1.14-acre parcel on the north side of Bucklin Hill Road, adjacent to Clear Creek. Notes: KRL is raising money to build a new Silverdale Library on the site. ■ Clifford’s Auto Body, Bremerton — $525,000 Sale date: Oct. 29 Assessed value: $206,890 Sold by: Howard and Laurie Froggatt to Collision Service Repair Center Inc. Description: A 5,000-squarefoot auto shop on 0.21-acres at 327 N. Montgomery Ave. Notes: Former Clifford’s Auto Body became the ﬁrst Kitsap County location for fast-growing Gerber Collision & Glass. ■ Bremerton business park — $675,000 Sale date: Oct. 29 Assessed value: $517,920 Sold by: Kitsap Bank to Bremerton Business Park LLC Description: Two parcels totaling 2 acres with two buildings in a business park at 5943 State Highway 303

Retail marijuana store approved in Gorst Marijuana shops keep sprouting in the south end of Kitsap County. On Thursday, the state Liquor and Cannabis Board approved a license for a recreational mari-

• These items were first posted on Minding Your Business, a blog written by Kitsap Sun reporter Tad Sooter. For more, go to pugetsoundblogs.com/ minding-your-business.

Greater Kingston Chamber of Commerce & Visitorâ&#x20AC;&#x2122;s Informa on Center Greater Kingston Chamber Calendar

KITSAP PHYSICAL THERAPY Richard P. McDowell PT, MPT, MEd, OCS

Feb. 3rd: Silverdale Green Drinks Watson Furniture, Poulsbo 5:24pm-8:03pm Feb. 4th : White Horse Golf Club 11:45am-1pmF

KINGSTON DENTAL Sean M. Couch, DDS

21-22, 2016

Hosted by Visit Spokane

Feb. 9th : Kitsap Business Forum Kitsap Conference Center 7:30-9am Feb. 11th: Kingston Chamber Aďż˝er Hours The Point Casino 5-7pm With the Poulsbo Chamberâ&#x20AC;&#x201D;Please join us!

The AVICW provides educa onal seminars, workshops, conferences and materials to enhance produc vity of visitors informa on centers in the promo on of tourism

Arrive April 20th to enjoy a tour of Spokane followed by a complimentary dinner with fellow members.

April 21, 9:00 a.m. Conference begins with seminars, classes and round-table discussions. The evening concludes with Banquet/Auc on. Conference ends April 22, at Noon following a lively round-table discussion. Lunch will be provided. Banquet & Aucďż˝on: Bring a basket full of goodies from your region to auc on oďŹ&#x20AC; at our Conference Banquet on Thursday night. Conference Rates: $100 AVICW Member $150 Non- Member The Kingston Chamber is proud to be an AVICW Member Call us for more information 360-297-3813

(Above) Last yearâ&#x20AC;&#x2122;s Joint Chamber Event ďż˝ er Hours at The Point Casino Mar. 3rd : Kingston Chamber Biz Luncheon The Point Casino 11:45am-1pm Mar. 10th: Kingston Chamber Aďż˝er Hours Ameriprise Financial at Kingston Financial Center 5-7pm www.KingstonChamber.com

P A R T N E R

Conference Locaďż˝on: Red Lion River Inn Spokane Ask for AVICW room block rate - 509-326-1120

C O M M E R C E

AVICWâ&#x20AC;&#x2122;S ANNUAL CONFERENCE APRIL

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360-297-2298 KingstonDental.net At Kingston Dental, the goal is to help their pa ents achieve and maintain a healthy smile for life. By listening to your concerns and thoroughly evalua ng your dental condi on, KD will provide you with a detailed, personalized plan that is designed to promote las ng health and minimize your risk for future dental problems. Kingston Dental IS commi ed to providing excep onal dental care with integrity, empathy and excellence.

C H A M B E R

360-297-7050 KitsapPT.com With 7 Kitsap loca ons, KPT treats orthopedic, work and sports-related injuries. Specialists oďŹ&#x20AC;ering an array of programs and preven ve care services. StaďŹ&#x20AC; is commi ed to working with pa ents and their physicians to establish a hands-on, one-on-one customized treatment plan to help pa ents return to their highest level of func on in a mely manner. Since 1979, KPT is proud to be the most recognized physical therapy provider in Kitsap County

K P B J

KINGSTON HEALTHCAREâ&#x20AC;&#x201D;PATRON MEMBERS

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PSE customers can receive electricity from 100% renewable PaciďŹ c Northwest power sources. When you sign up for PSEâ&#x20AC;&#x2122;s Green Power Program, we buy electricity from clean-energy producers in our region and add it to the grid on your behalf. The program is voluntary and signing up is easy. Learn more at pse.com/bainbridge.