Kitsap Peninsula Business Journal 26/05

May 2013 Vol. 26 No. 5

The Voice of Kitsap Business since 1988

Bainbridge clothing store closing, pg. 18

Makeover into a marketplace Manette bike shop, pg. 31

Inside Special Reports: Banking & Finance, pp 6-17 Golf & Recreation, pp 28-33 People, pg 2 Real Estate, pg 23 Technology, pg 26 Human Resources, pg 27 Automotive, pp 34, 35 Editorial, pp 36-38 Home Builders Newsletter, pp 19-22

By Tim Kelly, Editor A year after plans for the Port Orchard Public Market were announced, the site of businessman Don Ryan’s ambitious project had an open-air feel when he took several prospective market vendors inside recently.

The long-vacant Bay Street building was missing its roof — but that was a sign of progress.

The building that’s been empty since the Slip 45 nightclub closed several years ago has been gutted, and interior work to transform the space is in progress under a

Tim Kelly photo

Crews work on the upper frame of a clear story skylight on the roof of the building on Bay Street where the Port Orchard Public Market is being built. new roof. Rising above the building’s flat roof is the 25-by-50-foot frame for the clear story skylight over the market’s central area.

When work is completed, there will be a new façade above the Bay Street entrance, Cover Story, page 4

Local banks, credit unions keep pace with growing interest in mobile banking

By Rodika Tollefson If you’re one of those people who whip out their smartphones while standing in the grocery line and transfer money between two accounts before getting to the checkout, you’re in good company. A Federal Reserve report released in March estimates that 50 percent of smartphone owners used mobile banking in 2012 (a 33 percent increase from a year before) — and transferring between accounts is the second-most common use, after checking balances and recent transactions.

While large national banks started offering mobile banking several years ago, local and community banks and credit unions are quickly catching up. Two years ago, some offered mobile banking through web browsers.

Last year, however, several rolled out mobile apps, and others are following suit this year or actively exploring options.

“It has been a hot topic behind the scenes. We talk about that generation that’s coming into banking and we hear from clients they want mobile apps,” said Jennifer Carrier, Liberty Bank assistant vice president and branch manager. “On the other side,

Mobile, page 8

North Mason Chamber of Commerce hires new director

2 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

Stephanie Rowland

The North Mason Chamber of Commerce has hired Stephanie Rowland as its new executive director.

Rowland will replace Greg Oldham, who is stepping down to focus full-time on his real estate business.

“Greg has done a fantastic job for our chamber over the past year,” said chairman of the board Darren Corliss.

“Working tirelessly with our board of directors, Greg has helped set the stage for growth for both our chamber and Belfair Licensing, which we have operated for the past 11 years.”

Rowland, who served as the chamber’s member services director and

interim executive director in 2009-10, most recently has been serving as contributing editor of Shelton Life and North Mason Life, community publications of the Kitsap Sun. “Stephanie brings a unique set of skills and passion for our local community, and a sense of urgency and excitement for how our chamber can work together for the benefit of our

members,” Corliss said.

Rowland’s new role will take effect on May 13.

“I am thrilled at the opportunity to serve the community in this capacity again, especially now as we embrace a renewed economic spirit throughout North Mason and our surrounding neighborhoods,” she said.

Originally from Tacoma, Rowland’s family was one of the first to purchase property on Treasure Island in 1955, which they maintained as a vacation and retirement home through 2005.

Rowland sold the family beach place in 2010 and purchased a home on Mason Lake.

“I have lived here full-time since 1998 and it never ceases to amaze me how the area has grown and how much diversity in talent and business we have all around us,” she said.

A University of Washington graduate, Rowland brings experience as a broadcast journalist in Seattle and Spokane, 15 years as a communications manager and meeting/hotel manager at Weyerhaeuser Co., convention sales and guest services for Sheraton and marketing for the Washington State Employees Credit Union in Olympia.

Rowland also holds a certification in international etiquette from The Protocol School of Washington in Washington, D.C., and has traveled throughout the Pacific Northwest and the country speaking on business etiquette and manners since 1998. She is the author of “Full House: Selling Rooms & Space with Style & Grace” and “Are Bad Manners Driving your Clients Crazy?”

The North Mason Chamber of Commerce is located at 30 NE Romance Hill Road in Belfair. For information, visit www.NorthMasonChamber.com.

Furniture maker Watson hires director of sales services Liz Reese has joined Poulsbo-based furniture manufacturer Watson as the company’s director of sales services.

She has more than 15 years experience in business development, sales, marketing and product management.

Reese was previously with Heritage Business Interiors as the Calgary-area architect and design representative, and was a board member and marketing chair for the Canada Green Building Council, Alberta Chapter.

Reese studied interior design at Bellevue College and earned a master’s in International Business from NHH in Bergen, Norway.

Kitsap Peninsula Visitor & Convention Bureau annual meeting will feature welcome for REI The Kitsap Peninsula Visitor and Convention Bureau will hold its 2013 annual meeting and awards luncheon on May 22 at the Best Western Plus-Silverdale Beach Hotel. The theme of the meeting is Destination Kitsap Peninsula: Capitalizing on our Natural Attractions. Award recipients will be announced at the meeting.

The KPVCB, Kitsap County and Sound West Group are using the meeting to welcome REI to the Kitsap Peninsula region. Guests will hear a presentation from the featured speaker, Kevin Golic, REI’s director of retail for Washington and Alaska. He will talk about the economic and environmental benefits of outdoor recreation and share details about REI’s new store scheduled to open in Silverdale this fall. The event will include presentations by elected officials, business and community leaders.

Attendees will have the opportunity to view exhibits and talk with Kevin Golic representatives about a wide range of public and private-sector tourismrelated projects. Information about upcoming events also will be available.

The buffet luncheon and handcrafted desserts will be provided by local chefs and food establishments. The cost is $15. For more information and to RSVP, visit www.VisitKitsap.com/AnnualMeeting.

Natural yard care workshops offered in in May The City of Gig Harbor and Tacoma-Pierce County Health Department are presenting a free Natural Yard Care workshop series in May. Participants will learn how to design and maintain a beautiful landscape the natural way.

Three workshops will address a variety of yard maintenance issues, including how to have a beautiful yard and what people can do to protect water quality in the community.

The series will include the following workshops held from 6:30-8:30 p.m. at the Gig Harbor Civic Center, 3510 Grandview St.: • May 7, LAWN & GARDEN HEALTH – BUILDING SOIL RESOURCES Anna Thurston, landscape horticulture designer, will talk about improving the growing potential of soil in yards and gardens. Participants may bring in a soil sample to test.

• May 14, NATURE KNOWS BEST IN YOUR LANDSCAPE Landscaper and designer Bill Peregrine will give a presentation on how to use nature’s way to improve and add beauty to landscapes.

• May 21, NATIVE PLANT LANDSCAPING Dana Bressette, an urban horticulturist, will discuss how to add beautiful, lowmaintenance native plants to a landscape, and how to put the right plant in the right place.

Space for the workshops is limited. Reservations are available by contacting Walt Burdsall at (253) 798-4708 or wburdsall@tpchd.org.

AWOB event showcases member businesses The Alliance of Women Owned Businesses will presents the group’s first aMayZing Showcase of Businesses Owned by Women on May 8 at the Inn at Gig Harbor.

Local entrepreneurs will get an opportunity to showcase their businesses to the public.

Merchandise will be available for sale, and service providers will promote and give information on their businesses.

The free event will be open to the public from 5-8 p.m., and vendor space is sold out.

There will be appetizers, a no-host bar, door prizes, swag bags and networking, so the public can get to know these AWOB local businesses.

“We have been looking for a way to showcase our businesses to each other as well as to the public for quite some time; so we are very excited for the public to join us in this special event,” AWOB president Lisa Markman said.

Founded in 2010, AWOB is a nonprofit membership organization that offers a range of meetings designed to empower women entrepreneurs in Pierce, Kitsap and Mason counties to achieve higher levels of business success.

Port Orchard site leased for third Coffee Oasis location Coffee Oasis has signed a lease for the former Bay Street Ale House building in downtown Port Orchard, where the faith-based nonprofit will run a coffee shop on the main level and use the second floor for its programs that help homeless youth.

Dave Frederick, executive director of Coffee Oasis, said the site at 807 Bay St. will be remodeled this summer with the help of volunteers from service clubs in the community such as Rotary, Kiwanis and Soroptimists. The coffee shop could be open in a few months Coffee Oasis has similar operations in Bremerton and Poulsbo, and recently has been operating a temporary Port Orchard program center in another small storefront on Bay Street.

For more information about Coffee Oasis, call 360-377-5560, email connect@thecoffeeoasis.com or go the website thecoffeeoasis.com.

Tweet it from the mountain tops! @Ecodevokitsap: #KitsapConnected why so many companies choose to call #Kitsap home. Videos and #Work+Life stories at www.KitsapConnected.org

The Central Kitsap Food Bank will hold its annual dinner/auction at the Silverdale Beach Hotel on May 18, with the theme “A Night of Aloha” for this year’s fundraising event.

Guests will enjoy the signature dishes of the Aloha Kitchen in Silverdale. There will also be an authentic Hawaiian band playing the favorite songs of the Islands. Three will be a silent auction as well as a live auction.

Tables for the event can be purchased by calling the food bank at 360-692-9818. Tickets are $500 for a table of 10 or $50 per single ticket. Individual or companies interested in being a sponsor for this event should call 360-692-9818.

The Central Kitsap Food Bank is a nonprofit that helps individuals and families who live or work in the Central Kitsap School District.

www.KitsapConnected.org Visit

www.kitsapeda.org for more information

360-377-9499

Rejuv Massage & Spa announces move to new location Rejuv Massage & Spa in Bremerton is moving to a new location but staying in the Manette community, where it’s currently located at 2109 E. 11th St. “We’re not leaving Manette — it’s such a great neighborhood — we’re just around the corner to 1007 Scott Ave.,” owner Julie Poston said. “The location is bigger and will allow us to expand our services to meet increased demands from our guests.”

The move will take place in early June, with a grand opening to be announced soon.

For appointments, call 360-405-0293.

Kitsap Economic Development Alliance 4312 Kitsap Way #103 | Bremerton, WA 98312

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 3

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Central Kitsap Food Bank to hold annual dinner, auction

4 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

Other committed which will have wide doors that vendors include Pick Your can be rolled up to make the Burrito — whose proprietor indoor market more visible has a 10-foot chili pepper to from outside and add to the contribute to the market’s ambience. décor — and Sue’s Although the envisioned Lavender, run by a project has been described Manchester couple who plan previously as a Pike Place Market-style setting, Ryan said a to sell the fragrant herb and more suitably sized model is the lavender-based products.

Melrose Market on the east side A Bremerton bakery also of downtown Seattle. That is planning to have a market in renovated historic presence at the market, Ryan brick buildings with high said. Downtown has been ceilings and exposed wood without a bakery since beams has a roster of shops like Morningside Bakery, which what Ryan hopes to bring to Bay was in a space next to the Street: restaurants, bars, a market building, closed a few butcher, a shellfish vendor, an months ago. artisan cheese shop, and a fresh Ryan, who owns the 110 flower and produce vendor.

Lounge a block from the If all goes as planned, Ryan is market site, plans to open a optimistic the market could be bar in the market, which will open for the Fourth of July. have vendor stalls around “We have almost enough the perimeter and an open people to fill the building,” the central area with tables and developer said at his meeting chairs and a small stage for and site tour with vendors, musicians. when he passed out tentative Some of the old wood diagrams of the market layout beams pulled out the and asked vendors to start building are 20 feet or planning how they want to longer, and they’ll be milled customize the space they will to make benches, tables and lease. counters in the market, Ryan Tim Kelly photo Some vendors are Port Orchard Public Market developer Don Ryan, right, and the project’s builder, Jeff Way of Pristine Homes, stand inside the said. Another distinctive committed to the project and building at 715 Bay St. in early April, when the old roof had been removed and the structure was gutted so renovations for the feature he has planned is “a can’t wait to set up shop, while market could begin. native American-style pit out others are still in the thinkingback for grilling oysters on about-it stage. the half-shell.”

“We’re doing everything we “The more atmosphere She said the new development offers her Co. to tie in with the community. can to be ready when it does open,” said we create in this building, the more an affordable lease in an appealing “It seems like that’s exactly what the Annie Fitzgerald, who owns A & K Shellfish beneficial it will be for all of us,” said Ryan, environment, and she plans to use produce downtown area needs,” Fitzgerald said of with her husband, Craig. who is president of the Port Orchard Bay and meat from other market vendors as Ryan’s market project.

A & K is a Mason County-based Street Association. much as possible.

Lanette Duchesneau of Bremerton also wholesaler that supplies fresh shellfish to a At recent POBSA and City Council “It’s small local businesses helping small said the market is the kind of opportunity few stores in the Puget Sound area and has meetings, he said property owner Mansour she was looking for to establish a local businesses,” Duchesneau said, adding had a stand at the Bremerton Farmers Samadpour — who owns the Institute for permanent presence for her Salad Shack that the new market is “all about the local Market, but this will be the first time the Environmental Health, a major foodenterprise. She started it last year with a guy, not the big corporate guy.” couple have operated their own retail testing laboratory and consulting service in stand offering healthy food options at The local guy who might be the market’s outlet.

Seattle — has committed to spending more Whaling Days in Silverdale, the Kitsap butcher is Joe Keehn, owner of Farmer “We’re going to expand to not only have than $500,000 on building renovations for County Fair and other community festivals Georges, a custom meat-cutting business our shellfish we grow in our tidelands, but the market. and events. that’s been in Port Orchard since 1959. other local fish and wine also,” Fitzgerald Space will be leased to vendors for $2.50 “I’m ready to rock and roll; in fact, I was “I’m just considering it,” Keehn said. said. Customers who get salmon, crab, per square foot, plus a share of utility and really hoping we’d be opening (at the “I’ve got some other things going on also,” oysters or clams will get suggestions for advertising costs, and Ryan said that lease market) in the spring,” said Duchesneau, including a possible expansion of the pairing their seafood with local wines. rate won’t increase during the first year or who expects to draw customers from the longtime family-owned operation on “When Don contacted us, we actually two of the market’s operation. nearby Kitsap County government Bethel Road. He said he would probably were looking for a store to start our own “Mansour has agreed to keep the price buildings. In addition to salads, soups and decide by May 1 whether to be a vendor at retail business, and it seemed like a great incredibly low for us,” he said, “for the chili, she plans to offer breakfast items and the downtown market. fit,” she said, adding that they may call their simple reason he wants this to be coffee at an outside walkup window in the “It’s going to be unique, that would be Port Orchard shop the Bay Street Seafood successful.” mornings before the market opens. the drawing point of it,” he said.

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Commercial Real Estate Developers • Brokers • Contractors • Lenders

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New pub to surface this summer

Dave Tagert and Stacey Bronson stand in front of the stern section salvaged from a 42-foot Chris-Craft that sank years ago. It will be used as the back bar at the Devilfish Public House they plan to open this summer on Bay Street in Port Orchard.

Street while visiting family in the area, they agreed it would be an ideal spot for a second Devilfish in the community where they still have a lot of ties.

They’re aware of the indoor market development going in a block up from their spot, and think it will be a catalyst to boost interest in the struggling downtown area.

Tagert said they hope to open Devilfish in late June. That’s around the same time the Port Orchard Public Market might be opening, so Bay Street could be a much livelier scene this summer.

Tim Kelly photo

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By Tim Kelly, Editor Dave Tagert and Stacey Bronson are an affable couple, proprietors with obvious gusto for good food, good beer and good times.

Just don’t ask them when they’re going to open their new bar.

“We’re not a bar,” Tagert said last week as he and Bronson took a break from remodeling the corner space at 639 Bay St. in Port Orchard where they plan to open Devilfish Public House this summer.

“We’re a gastro-pub.”

If you’re not sure what the devil that is, it’s a pub that offers 26 Northwest craft beers on tap, occasional live acoustic music in an atmosphere where adults will relax and won’t find flat-screens showing ballgames arrayed around the room, and cuisine that Tagert describes as “five-star food and pub grub thrown in a gumbo pot, and that’s what you come out with.”

He noted that the Devilfish Public House they opened in Chehalis two years ago is the only Lewis County eatery with a five-star rating on Yelp.

“The Fish,” as their Chehalis establishment is known, is a 21-and-over pub and Tagert, a former Marine with a graying horseshoe mustache, said they aim to attract patrons who aren’t likely to have their IDs checked.

“Our menu, our music selections, are all geared toward the over-35 crowd,” he said.

That proved to be a popular appeal in Chehalis, Bronson said.

“They found us,” she said, “that 35-andover crowd that wants a place to sit and relax.”

Bronson, a Navy vet, and Tagert are former longtime Kitsap County residents who used to live in the old beach house that was torn down recently to make way for expansion of Marina Park on Port Orchard’s waterfront.

Tagert ran scuba diving shops in Port Orchard and Gig Harbor until 2006, and said he sold his commercial diving division a year ago.

“This has been my first year not in the water, and I’m enjoying that,” he said.

They made connections in Chehalis when they went there to help during the disastrous 2007 floods that swamped the town, and wound up moving there and opening a pub, something Bronson said they’d been planning for years. They come up to Port Orchard on Mondays and Tuesdays when The Fish is closed to work on getting their new place ready.

The gregarious pair, wearing overalls and ballcaps and accompanied by their two dogs, are doing all the remodeling work themselves.

One prominent piece of the pub’s decor is the stern of a 42-foot Chris-Craft that sank in Sinclair Inlet years ago. They’ve mounted the sliced-off section of the classic wood boat to utilize it as the pub’s back bar.

The bull-nosed prow from that same boat is displayed in their Chehalis pub.

Although Tagert said he didn’t think he’d ever come back to Kitsap County, when they saw the vacant spot on Bay

A light at the end of the tunnel for LED innovation Kitsap firm to start manufacturing new high-intensity replacement bulbs after community bank provides financing that other lenders wouldn’t

6 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

By Tim Kelly, Editor A convergence of factors led to approval of a loan for a Kitsap County manufacturing company that had sought unsuccessfully for months to secure financing to start production of a breakthrough LED product it developed for industrial lighting uses.

About a year ago, Rick Flaherty returned from the Lightfair International trade show in Las Vegas, where the HI-Lamp prototypes exhibited by his company, Differential Energy Global (DEG), got great reviews. They drew attention from lighting distributors who were potential buyers of the highly energy-efficient LED bulbs, which can be installed as replacements in existing high-intensity discharge units without the cost of replacing the entire lighting fixture.

He hoped the boost from Lightfair would strengthen DEG's hand in applying for a loan to take the new products to market, but much to his dismay that didn't happen. DEG's development of this innovative product with potential for global impact, and Flaherty's frustration over a string of near-misses with a host of commercial lenders and other financiers were reported in the November 2012 Kitsap Peninsula Business Journal.

Earlier this year, the stalled effort to begin production was revived when Kitsap Bank approved a Small Business Administration-backed loan of about

DEG took its booth displaying HI-Lamp LED bulbs to the Lightfair International trade show held April 23-25 in Philadelphia.

$500,000 for DEG. "I have to give Kitsap Bank credit in a big way," Flaherty said. "Not only did they step up, but if they had not, we probably would have mothballed this project for some time.

"This was a lifeline, and if we had not had it, we would not have gotten to the finish line."

Before he left for this year's Lightfair show held April 23-25 in Philadelphia, Flaherty said third-party testing should be completed soon to certify that the HILamp bulbs meet performance and quality assurance standards. Then DEG would begin manufacturing them at the Port Orchard plant of Leader International, the company he and his wife, Cathy, have owned for 23 years.

Flaherty and Kitsap Bank officers said personal relationships helped make it possible to put together a deal after numerous other lenders passed on providing a production loan to DEG. Another factor was Kitsap Bank's expanded focus on sustainability, both in its own operations and in the local businesses to which it provides loans.

The notion of "relationship banking" may sound like an advertising cliché, but in this case two top loan officers at the bank who worked on the DEG deal have known the Flahertys for a long time. One of them has only been at Kitsap Bank for a short time, but before Jeff Reynolds came on board last August as Senior Vice President/Commercial Market Manager, his 30-plus years in business lending with Bank of America included numerous attempts to land the Flahertys' company as a prime commercial account.

"One thing that’s always impressed me about Rick is his commitment to his product. He puts everything into a project," Reynolds said. "There’s no halfway with Rick; he’s all in."

Senior vice president and credit administrator Linda Smith also has known the Flahertys a long time, dating back to when she worked at Columbia Bank before joining Kitsap's management team more than a dozen years ago.

"We’ve had a great relationship with Linda since we came to town," Rick Flaherty said. "She did our first loan."

Reynolds said knowing the owners have a solid track record in business and have been part of the community for a long time "makes a huge difference."

"There’s a big value in Kitsap Bank being

Jeff Reynolds, right, a senior vice president at Kitsap Bank, was instrumental in arranging an SBA loan for Rick Flaherty’s company to begin manufacturing a new kind of LED replacement bulb for industrial lighting. a community bank… we’ve worked and lived with Rick and his company for years," he said.

Knowing that history of a local business "broadens the non-tangible type of criteria when making a loan decision," he added.

Although DEG had been turned down by numerous bigger banks who could have provided a larger start-up loan of $1.5 million that Flaherty was seeking, Reynolds said Kitsap Bank didn't work on this deal because it presented an opportunity to look like the good guys coming to the aid of a local business no other lender would help.

"I think it was more that this is a very committed couple of entrepreneurs … working on a cool new environmental type of product," he said.

That was echoed by Tony George, who took over as Kitsap Bank's president and chief operating officer last year after Jim Carmichael retired. He has spearheaded the bank's initiative on sustainable business practices, such as an emphasis on recycling and getting more customers to opt for paperless statements.

"I looked at that deal and I didn’t really know (Rick’s) background," George said.

"But I told Jeff, 'We’ve got to do this.'”

He recalled reading the DEG loan application and thinking "this is going to be huge," and that it was the kind of opportunity that Kitsap Bank is seeking "to partner with sustainable businesses."

"There’s not a lot of banks looking at that," he added. "There are sustainable businesses breaking into the clean-tech world, and they have unbelievable business models."

He said Kitsap Bank isn't changing its

focus as a stable community bank that's been around for more than a century.

"We’ve always been a very conservative bank. We have stringent credit standards and we pride ourselves on that," he said. But it makes sense for the bank to support sustainable businesses within that approach, he added.

"The bank has a role," George said, "but we’re not venture capitalists."

With an SBA loan, the federal government guarantees about 75 percent or more of the loan's value, which limits a bank's risk when financing a new business venture.

"I think that's what SBA loans are designed for, is companies in Rick's stage of development," Reynolds said.

Although economic development strategy often focuses on bringing established companies in aerospace or other major industries to Kitsap County, Flaherty said there are other emerging companies within the county that have the potential to reach a global market like DEG hopes to.

"There are some fantastic sutainable companies here," he said.

George said Kitsap Bank is in a good position to help them grow.

"We have incredible lending capacity," he said. "I don’t want to give the impression we’re going to do a lot of start-ups. We still have to adhere to our credit standards. But I think for a portion of our portfolio, we should be seeking out those types of deals.

"It’s a new understanding of where the world is going, where the economy is going, and where business is going."

Extensive documentation the new ‘normal’ for mortgage loans long time because the USDA is involved in the underwriting process,” Hancock said.

The USDA eligibility criteria will expire in September and after that the geographic areas and other factors may be redefined.

Both USDA and FHA loans have the advantage of less restrictions on gifting, such as for closing costs, Hancock said.

“The FHA is a good loan because of the 3.5 percent down payment, but it has high mortgage insurance, so if the credit is good and there’s a 5 percent down

payment, we tend to suggest a conventional loan,” he said.

One frequently asked question is how long people should wait before applying for a mortgage loan after having had a negative credit event such as a short sale, foreclosure or bankruptcy. Hancock said the answer depends on the type of loan, and the amount of time ranges between one and seven years.

For example, after foreclosure, recommended wait time should be seven years for a zero-down conventional loan but much less with a 10 percent down

payment; for FHA and USDA loans it’s three years, and two for VA. After short sales, deed in lieu of foreclosure or loan modification that resulted in principal reduction or principal forbearance, consumers should wait two to seven years for a conventional loan depending on down payment, three years for FHA/USDA and two for VA. “I think the thing that impacted a lot of people were short sales, foreclosures and bankruptcies, but people with good credit and good assets still have those and can get a loan,” Hancock said.

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 7

By Rodika Tollefson Mortgage rates are no longer at “historic lows,” but they have steadily remained down. While rates can change daily, so far the federal government has still kept them as close to those historic lows as ever. Which means savvy homebuyers are taking advantage of the market, especially of the variety of loans that still allow people with good credit to buy a home with very little or no down payment.

But it’s not business as usual for the mortgage industry. Consumers used to the easy process of 10 years ago may be in for a big surprise.

“Heavy documenting is the trend. The process can be intrusive,” said Val Hawryluk, branch manager for Eagle Mortgage in Silverdale.

The reason for this trend is the change in federal rules that came as a result of the mortgage crisis a few years ago. A relatively new federal agency, the Consumer Financial Protection Bureau, has established a variety of mortgage lending and servicing rules and is monitoring compliance by lenders.

“The three key words in the mortgage industry today are document, document, document,” said Mike Hancock, loan originator with Legacy Group in Silverdale.

The biggest change for consumers is documentation of income and other sources of funds that are being used for transactions, including closing costs.

Lenders must verify bank statements for the two months prior to the application date, and verify the source of all major deposits, including checking payroll against pay stubs. As one example, even if applicants provide a copy of their tax return, they also have to complete IRS Form 4506 (Request for Copy of Tax Return) for verification.

Still, the paperwork headache doesn’t seem to deter people. Hancock noted that March saw a big uptick in new mortgage activity compared with December and January. Interest in refinancing, however, has been tapering off because many people who were eligible for refinancing already went through the process.

Interest rates vary based on credit scores, type of loans, income-to-debt ration and other criteria, and rates were in the 3 percent to 3.5 percent range in April for 30-year fixed mortgages.

“We are still doing the same loans but the process has become more cumbersome because of federal regulations,” Hawryluk said.

According to Hancock and Hawryluk, in the Kitsap area, USDA and VA loans are especially popular. Both do not require a down payment. The USDA program is only available in specific rural areas and has an income ceiling, but the amount is relatively generous (up to $86,950 for a family of up to four people and $114,750 for five to eight).

“They are very popular but they take a

MOBILE from page 1

8 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

there’s the risk factor with fraud and as a small bank, it’s harder to deal with fraud losses. But we believe that’s the way things are going.”

The generation that’s coming into banking, digital natives and the millennials (aka Gen Y), are indeed driving adoption. According to the same Fed survey, people age 18 to 29 make up the largest category of mobile users, at nearly 40 percent. Gen X is not far behind — 34 percent of people who use mobile banking are in the 30 to 44 age category.

“For younger customers and early adopters, banking via mobile apps is second nature,” said David Devine, senior vice president and marketing director for Tacoma-based Columbia Bank, which has branches all over the Kitsap Peninsula. “But others are just entering mobile and their worries include security; it’s a new technology and folks are skeptical until they start using it.”

Columbia introduced a new mobile suite last September that includes apps for iOS and Android platforms, while it previously had web-based mobile banking. App features include bill payment and a GPS-based branch locator, and the bank has been actively promoting the new suite — last year, for example, it had a “keep mobile” campaign that included gas card giveaways.

Devine thinks the adoption of mobile banking is much faster than online banking was as a new technology for two reasons: Smartphones are

Graphic by Rodika Tollefson

cheaper devices than computers and people are already used to accessing information and conducting transactions electronically.

“Now that smartphones are becoming ubiquitous, I think adoption is going to grow exponentially,” he said.

Peninsula Credit Union, which is based in Shelton and includes branches in Belfair, Port Orchard and Poulsbo, is planning to launch a mobile app this summer, as early as June. Features will include bill pay, personto-person payments via PayPal (integrated into the app) and geolocation-based services for locating not only PCU branches and ATMs but also credit unions that are part of the “shared branch” network and ATMs that are part of a co-op agreement.

“People pretty much expect (mobile) for a variety of reasons, probably largely because of their schedules,” said Peninsula Credit Union CEO Jim Morrell. “It’s one of those convenience factors.”

Up-and-coming: Mobile deposit JP Morgan Chase may be the one responsible for giving consumers the idea they don’t have to go to a branch anymore to deposit checks — thanks, in part, to its widely distributed television commercials a year or two ago. Who doesn’t remember the proud husband bragging about being able to make a deposit from any room of the house?

“We’re actively looking at this feature internally. We have more people asking about it,” said Jeff Wells, e-business manager Mobile, page 9

MOBILE from page 8

Need to accept credit cards? There’s an app for that

at Kitsap Credit Union, whose app includes GPS branch locator, reward programs and, as of a couple months ago, bill pay.

Kitsap CU sends out regular surveys to its members and uses the thousands of responses to decide on new services. It was member response, in fact, that prompted much faster rollout of mobile apps, said Leah Olson, vide president of marketing.

Currently, the Bremerton-based credit union has about 9,000 active mobile banking users, more of them on iPhones than Android phones. (SMS transactions are also popular — in March, the credit union saw 41,000 text messages through its SMS banking system.)

Consumers are not the only ones embracing mobile banking.

Companies, especially small businesses, are taking advantage of mobile technology by using their smartphones to accept credit cards. It’s becoming more common to see a merchant using a tablet or phone to swipe a card through a small attachment on a mobile device.

Some current options: • Square: Pioneered the idea several years ago (the company was subsequently bought by Starbucks). Fees are 2.75 percent per swipe or a $275 flat monthly charge (until a certain transaction total per month) and 3.5 percent plus 15 cents for keyed-in. No sign-up or annual fees, and free card reader is

provided.

• PayPal Here: 2.7 percent per transaction (3.5 percent plus 15 cents for keyed-in) and free reader; doesn’t accept American Express. The iPad version has barcode scanning. Money is transferred into the merchant’s PayPal account (note that commercial PayPal accounts charge additional processing fees).

• Kitsap Bank: Mobile credit/debit card processing through PayFox. Sign-up is the same as for traditional merchant services, as are the fees.

• Columbia Bank: Mobile processing through ROAMpay.

Sign-up and fees are the same as traditional merchant services (cost of device is less than a terminal).

“For younger customers and early adopters, banking via mobile apps is second nature.”

— David Devine, Columbia Bank senior vice president and marketing director

New Trends Other mobile features some of the local financial institutions are considering Mobile, page 15

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 9

The most recent questionnaire that went out is asking members if they’re interested in remote deposit. “We want to know what the adoption rate may be for new products,” Wells said.

Sound Credit Union (based in Tacoma and with branches in Gig Harbor/Key Peninsula) saw more than $1 million in mobile deposits in March, a number that’s been growing since the feature was introduced in December. The mobile app, launched last September, also has features such as bill pay and branch locator and maps.

“Mobile has been our fastest-growing channel,” said chief marketing officer Robyn LaChance. “We really work hard to keep our eyes on technology. It’s changing so fast, but it’s exciting.”

Kitsap Bank’s app, which was rolled out in November for the iPhone and Android, will include mobile deposit this June or July.

Chief information officer Jackie McVay said there’s a lot of going on behind the scenes before new features can be added.

“There’s a lot of security that goes into making sure fraud doesn’t occur, so we do extensive testing before rolling out features,” she said.

She said mobile banking is a complimentary product, just another way for customers to interact with their bank — but even so, she expects to see more and more of those types of services.

“I believe as PCs become obsolete and we go more to tablets and mobile devices, we’re digitizing more services. It will become more of a norm than add-on,” she said.

Trending toward growth: SBA loans can help boost small business

By Don Brown According to the U.S. Small Business Administration, there are 23 million small businesses in America. These businesses account for 54 percent of all U.S. sales, occupy up to 50 percent of all commercial space, and are responsible for 65 percent of all new jobs created over the last decade.

In fact, small business is the economy’s little engine that can, with the number of start-up businesses exploding and experiencing greater success than ever before — even as corporate America is downsizing.

As the government agency tasked with protecting, strengthening and representing the interests of America’s small businesses, the SBA understands the value of small businesses to the economy better than anyone. In fact, in recent years the SBA has expanded loan guarantees, increased loan amounts and reduced and/or waived fees to bolster even greater growth. The result: more small business owners have had the support they need to realize their full potential and flourish.

What government-guaranteed SBA loans can do for your business

10 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

While the SBA offers management assistance and special outreach programs to encourage and support entrepreneurs, arguably the most important role it serves is

to provide a guarantee for loans made by a lender to businesses that may not otherwise qualify for conventional financing. In most cases the terms are more favorable than traditional financing.

SBA loans can be used to start a business, expand a business or to supplement working capital. They are designed to be flexible in tough economic times or during periods of rapid growth.

Benefits of SBA loans include: • Longer terms and lower down payments. Borrowers can repay the loan over a period of up to seven years for working capital, 15 years for equipment and 25 years for real estate.

• Lower interest rates. Borrowers can receive the most competitive variable rates.

• More flexible repayment options.

Borrowers may be able to delay their first payment by up to three months, are not required to pay “balloon” payments for SBA 7(a) loans, and will not face prepayment penalties on loans less than 15 years on SBA 7(a) loans.

Loan programs to meet a variety of needs The SBA has a core set of loan programs that serve a wide range of business needs.

The following are some of the more common debt financing programs offered through the SBA. SBA 7(a) – This is the SBA’s largest loan guarantee program and is designed to provide loans to qualified businesses that cannot otherwise obtain funding on reasonable terms. SBA 7(a) loans can be used for real estate, equipment and machinery, construction and expansion

improvements, working capital support for accounts receivables and inventory, purchasing a business and refinancing business debt. Benefits include longer terms than conventional lending and lower collateral requirements. The maximum loan amount is $5 million.

SBA 504 – This loan is designed for growing a business that needs a long-term, fixed-rate loan for a major asset acquisition, such as the purchase of land and subsequent improvements, construction of a new facility or to acquire new machinery/equipment. The SBA 504 features loan maturities of 10 and 20 years and is designed for project size ranges from $100,000 to $12 million. It also has a job creation requirement.

Working Capital CAPLine – Designed for short-term working capital needs, such as inventory, managing receivables or consolidating short-term debt, the Working Capital CAPLine functions as a working/revolving line of credit. Terms are set by the lender. For example, KeyBank offers maturity up to 10 years with a maximum loan amount of $1 million.

SBA Express Program – Targeted for smaller requests, this loan program allows for an expedited and streamlined application process. Loans may be used for fixed-asset purchase, debt consolidation or working capital. Credit requests can be up to $350,000.

SBA Export Programs – The SBA Export programs provide financing to businesses that will enhance a company’s export development. The Export Express Program can be used in the form of a line of credit or term loan with a maximum loan amount of $500,000. The Export Trade

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Loan Program is a term loan with a maximum loan amount of $5 million.

How can your business qualify for an SBA loan?

To qualify for an SBA loan, a company must be independently owned and operated and must meet SBA employment or sales standards for different business types.

Potential borrowers must also be of good character and demonstrate strong management skills and an ability to pay, based on historic cash flow. Startups must present strong business plans. Businesses must have net worth consistent with industry averages and adequate collateral to secure the loan.

For more information about the financing and support the SBA can provide to your company, call a preferred lender experienced in SBA loans or visit www.sba.gov (the SBA site) or www.key.com/sba. You just might be surprised how much they, and your banker, can do to help you become one of the many small business success stories that prop up the economy by creating jobs and spurring innovation.

• Don Brown is Vice President and Senior Relationship Manager for KeyBank’s South Puget Sound District.

He can be reached at (253) 732-2672 or donald_x_brown@keybank.com.

Columbia Bank completes acquisition of West Coast Bancorp Columbia Banking System, Inc. completed its acquisition of West Coast Bancorp, the parent company of West Coast Bank, in April. With the completion of the merger, Columbia’s total assets exceed $7 billion, with 157 branches in 38 counties in Washington and Oregon.

Effective at the time of the merger, Columbia appointed David A. Dietzler, a former director of West Coast, to serve on Columbia’s board and the board of its wholly owned subsidiary, Columbia State Bank.

Melanie J. Dressel, president and chief executive officer of Columbia, said, “The merging of Columbia and West Coast moves us significantly toward our stated objective of being the leading Pacific Northwest regional community bank.

The complementary aspects of the companies’ businesses, including customer focus, geographic coverage, business orientation and compatibility of management and operating styles, makes the merger a natural fit.”

Financial institutions step up efforts to promote paperless banking members because we’re able to get electronic statements to them much more quickly and it’s safer than mailing them,” he said. “We do save expenses and as a credit union, that saved expense goes into expanded services.”

Paperless options such as online loan application and processing, emailed transaction receipts, online bill payment and other features are increasingly being offered by financial institutions, and many local community banks and credit unions are already offering all of that or are in the process of adding new features. Some are

even promoting paperless services through special accounts. Sound Credit Union, for example, has Gold Checking, a high-interest checking account that rewards members for reducing expenses, including through estatemen ts.

Leah Olson, vice president of marketing, said the goal to offer more paperless transactions and features was one of the reasons last year Kitsap CU went though an extensive program to select a new core computer system. Already, about two-thirds of the 32,000 active online users per month are signed up for e-statements.

“Right after bill pay, it’s the most engaged product we have online,” said Jeff Wells, Kitsap CU e-business manager.

Columbia Bank’s Grow Green Checking, which requires paperless statements, has an added bonus — for every customer who signs up, Columbia donates $5 to Habitat for Humanity. David Devine, senior vice president and marketing director, said the bank is actively promoting e-statements and consumers are definitely embracing the idea.

“Most consumers manage their accounts Paperless, page 17

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 11

By Rodika Tollefson While consumers have embraced the conveniences of electronic banking — they’re writing fewer checks every year, according to the Federal Reserve — electronic statements are still not mainstream. Yet, as any banking professional will agree, e-statements are not only faster and convenient, they are also more secure and are good for the planet.

“People like to use the Internet for information but they still like their mail,” said Jackie McVay, Kitsap Bank’s chief information officer.

Last year, the amount of paper statements and envelopes mailed to Kitsap Bank customers equaled 210 trees or 17,524 pounds of paper. The bank estimates that if only 20 percent more of its customers signed up for e-statements, 42 trees and 3,501 pounds of paper would be saved every year.

Which is why, like many other financial institutions, Kitsap Bank is looking at ways to encourage customers to consider their options.

“Sustainability is important. As an organization, we are examining our practices to see how we can be better stewards of our resources,” said Shannon Childs, senior vice president and marketing director, adding that they are actively promoting estatements and looking at ways to better deliver paperless services to customers.

Business customers are especially heavy paper users since their statements can be 20 pages or more.

“Businesses tend to write more checks and statements can include copies of checks so that does take up paper,” said Jennifer Carrier, assistant vice president and branch manager at Poulsbo-based Liberty Bank.

“Plus there’s po stage on top of that.”

Financial institutions are pointing out that paperless features benefit them and the customers equally. E-statements are secure — unlike snail mail — as well as much faster.

“They can get them anywhere, which makes it convenient,” Carrier said. “They can save the statement on the computer and access it any time and file it better (than the paper).”

Other paperless features, such as ele ctronic signature cards and records, have also made banking much more efficient.

Robyn LaChance, chief marketing officer for Sound Credit Union, recalls the time when signature cards were stored at headquarters and staff had to call HQ to have a signature card faxed. Now, a signature can be verified instantly. Since all record retention is paperless at Sound, it has greatly improved operations.

“It simplifies our recordkeeping tremendously,” she said.

Adoption of paperless options varies by institution but it continues to grow, even though some features, like e-statements, have been offered for years. Jim Morrell, Peninsula Credit Union CEO, said about 70 percent of checking accounts have electronic statements, a number that’s still growing — in the most recent quarter, more than 650 account holders signed up for the service.

“It’s an advantage for both us and

Investors can learn from Earth Day's lessons

By Jay Seaton First celebrated in 1970, Earth Day has grown into an international movement whose goal is to raise awareness of the need to take action to sustain a healthy, sustainable environment. You can do your part through recycling and other measures, but you can also apply some of the lessons of Earth Day to your financial situation — and, in particular, to your approach to investing.

Give these ideas some thought: Make the most of your existing resources. One of the most valuable lessons of Earth Day deals with the need to be responsible managers of the natural resources we have available. As an investor, it’s important to maximize the benefits of the resources to which you have access. For example, are you contributing as much as you can afford to your 401(k)? At the very least, you should put in enough to earn your employer’s match, if one is offered.

Take advantage of a favorable environment. Underlying all Earth Day

activities is the goal of creating a healthy environment in which to live. You may also benefit from a positive investment environment — and that’s what we appear to be experiencing, at least in terms of low interest rates, low inflation and the financial market. So in this favorable atmosphere, look for those investment opportunities that are appropriate for your situation.

Don’t over-consume.Excess consumption has played a big role in causing some of the environmental issues we face. Consequently, many Earth Day programs teach us to get by with less, or at least to avoid acquiring more than we need. To translate this philosophy into your investment habits, take a close look at the number of trades you make. Are you constantly selling old investments and buying new ones in the hopes of capturing higher returns? This type of trading can result in significant fees and transaction costs — and possibly higher taxes, too. Perhaps just as importantly, this constant activity, with all its starts and stops, may detract from your ability to follow a long-term, consistent investment strategy.

Avoid “toxic” investment moves. The motivation to create Earth Day developed, in part, by the growing awareness that industrial toxins were affecting our air and water. And

you can find many toxic investment moves, too. To illustrate: Many people chase after “hot” stocks after hearing about them from friends or relatives, or seeing them touted by so-called experts in the media. But by the time these people acquire the hot stocks, the stocks may already have cooled off. Furthermore, these stocks may not have been appropriate for these investors in the first place. Another potentially “toxic” investment move is to try to time the market — that is, try to buy investments when prices are low and sell when they’re high. In theory, this is a good way to

invest; in practice, it’s almost impossible to predict market highs and lows Instead, consider buying quality investments and holding them for the long term, or at least until your needs change.

By following these Earth Day-related suggestions, you can help yourself make progress toward a healthier — and possibly more productive — investment environment.

And that’s worth celebrating more than once a year.

• Jay Seaton is an Edward Jones financial advisor in Port Orchard.

Nourish the ‘roots’ of your investment strategy

By Jim Thatcher On Arbor Day, which we celebrate in late April, people across the country plant trees. Of course, trees provide us with many benefits, including beauty, fruit and oxygen, as well as protection against land erosion.

But the act of planting and nurturing trees can also guide our

behavior in other areas of life — such as investing.

First of all, consider the vision and patience exhibited by tree growers when they plant their saplings. As an investor, you, too, need this type of perseverance and long-term outlook. When you invest, you should be focused on the long term yet be prepared for the inevitable shortterm market downturns. How long is “long term?” Many investors hold quality Nourish, page 13

Why Go Anywhere Else?

12 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

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Transition into retirement can require overcoming fear realize that they are not their job. They also realize that regardless of how much they have saved, most people are concerned it may not be enough, an d now they need to redefine their identity and focus on what is truly the most important thing in their life.

There are two things I think most people could do to help them overcome the fear and stress of retirement.

The first thing I would recommend doing is sitting down and writing out a purpose statement for this next phase of their life. I went through this process for our firm last year, and it was inc redibly clarifying. The rewards of being intentional about designing your life in a way that is clear, concise and meaningful can really provide clarity of purpose and help you decide how you will spend your most valuable asset, your time. When I sat down to write the purpose statement for our firm I asked myself and my team three things: 1) Who are we?

2) What are we going to do?

3) Why are we going to do it?

You could apply these same questions to your retirement. I'll warn you this is not an easy exercise. It took me several months to really dial in our firm's purpose statement and every word has significant meaning.

Our purpose statement answers all three of these questions and is only one sentence long so it is easy to memorize. This statement is now the foundation for every decision we make. Imagine what it would be like to wake up every morning in retirement and have that type of clarity.

The second thing you can do to overcome the fear of retirement is to have a written financial plan. I recommend sitting down with

NOURISH

fruit trees; its commercial benefits may be greater than a comparable orchard that only grows apples. Plus, the presence of a variety of trees can prove beneficial if disease strikes one type. In some areas of the country, for example, Dutch Elm Disease wiped out thousands of trees, leaving entire streets treeless. If some other species had also been planted, these streets would still have had the benefits provided by mature trees, even if the elms were gone. As an investor, you don’t want to own just one type of financial asset, such as growth stocks, because if a downturn hits this segment, your entire portfolio could take a big hit. A better strategy would be to populate your “financial orchard” with a variety of investments — such as stocks, bonds and government securities — that are suitable for your situation. (Keep in mind, though, that while diversification can help reduce the effects of volatility, it can’t guarantee a profit or protect against loss.)

As an investor, you can learn some lessons from Arbor Day that could prove “tree-mendously” helpful to you as you chart your course for the future — and you won’t even have to “go out on a limb” to put these strategies in place.

• Jim Thatcher is an Edward Jones financial advisor in Bremerton.

from page 12 investments for decades. It’s a long process, but the potential growth you s eek will need this time.

What else can you, as an investor, learn from tree planters? For one thing, be aware of how they keep their orchards healthy. By providing proper irrigation and disease-prevention measures, they help their trees stay on the long path toward maturity. Similarly, you need to nurture your investment portfolio by continually providing it with the financial resources it needs to stay “healthy.”

During periods of market volatility, it can be tempting to take a “time out” from investing — but if you do, you’ll miss out on the potential growth opportunities that may follow. Since no one can really predict the beginnings and endings of either “up” or “down” markets, you’re better off by staying invested. Also, just as horticulturalists take steps to keep their trees from being subject to disease, you can keep your portfolio in good shape by periodically “pruning” it of investments that no longer meet your needs.

Here’s something else that tree planters can teach us: diversification. Consider an orchard that contains several different

an adviser who specializes in working with folks transitioning into and through retirement.

Finding an expert to help guide you along this path will do a couple of things: First, your adviser is not emotionally involved in the prospect of your retirement, so he or she should be able to give you objective advice; and second, your adviser may know of techniques or strategies that you have not considered simply because they've helped hundreds of others preparing for the same transition.

A good retirement plan will look at your budget, cash flow, taxes, income, assets, estate planning and insurance to help paint a picture of what your financial life will look like on a year by year basis as you transition into and through retirement. A good retirement plan can help answer the question of "have we saved enough?" and alleviate the concern of running out of money in retirement. A good retirement planner should ask you the question, "What is the purpose of this money," and you should be able to answer that question.

Hiring an expert retirement planner can help you understand the rate of return you need to earn on your money in order to achieve your goals and help you craft an asset allocation, diversification and income strategy to help you achieve that goal with as little volatility and risk as possible. And ultimately a written retirement plan will help provide you with confidence.

When you go through this process of defining your purpose statement for your

retirement, and you do the hard work of answering those three questions outlined above, then you will discover clarity. With a written financial plan for achieving your retirement lifestyle goals you will achieve confidence. Ultimately, once you have clarity of purpose and the confidence to know the numbers are going to work, then my hope is you will experience freedom.

Freedom to do the things you want to do, to be with the people that matter the most to you, to be free from worry, fear and greed; and ultimately freedom to have an impact in this world so that one day you might be greeted with “well done good and faithful servant.”

• Editor’s Note: Article written by Jason Parker. He is the president of Parker Financial LLC, a fee-based registered investment advisory firm specializing in wealth management for retirees. His office is located in Silverdale. The opinions and information voiced in this material are not intended to provide specific advice or recommendations for any individual, and do not constitute a solicitation for any securities or insurance products. All information is believed to be from reliable sources; however, no representation is ma de as to its completeness or accuracy. Please consult your trusted professional for advice and further information. Parker is insurance-licensed and holds his series 65 securities license. He offers annuities, life and long-term care insurances as well as investment services. Follow Jason’s blog at www.thriving-in-retirement.com.

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 13

By Jason Parker One of the top search queries bringing people to my blog is “Overcoming fear of retirement.” Ultimately I don't think people are really afraid of retirement, but like most of us we are resistant to change. A transition into the unknown can shake us out of our comfort zone and create uncertainty, which can lead to fear and stress.

I remember in late 2004, we had just found out that we were expecting our first child. My wife and I had been trying to have children for eight years. So this was amazing, wonderful, spectacular news. We were overwhelmed with joy, but at the same time for me there was stress associated with transitioning into the unknown. Every morning for the entire week after we found out I'd get a bloody nose while in t he shower. While we were both extremely excited and happy, I was also very nervous and fairly stressed about the responsibility of becoming a Dad. I have learned from working with many pre-retirees and retirees that the prospect of retirement can bring a similar sense of anticipation and joy. It can also cause stress and fear as people begin to prepare for the transition into the next phase of their life. Many of the people we work with have been leaders in business and in their communities.

Oftentimes their identity is associated with what they do, who they've become in their career and how much they have accomplished.

Transitioning into retirement makes them

A roundup of Kitsap Peninsula banking institutions and branch locations 1st Security Bank of Washington www.1stsecurityofwa.com (800) 683-0973 Poulsbo: 21650 NW Market Pl. (360) 779-4488

Columbia Bank

www.awbank.net Bainbridge Island: 921 Hildebrand Lane (206) 842-6929 Poulsbo: 18960 Hwy 305 N (360) 394-1701

www.columbiabank.com (800) 304-0050 Bainbridge Island: 249 Winslow Way East 208 High School Road 23961 NE State Route 3 Gig Harbor: 5303 Point Fosdick Dr NW 3006 Judson St, Suite 101 Kingston: 26563 Lindvog Road NE Port Orchard: 228 Bravo Terrace Poulsbo: Central Market 20148 10th Ave. NE, Suite B Silverdale: 10100 Silverdale Way NW

Bank of America

Connection Credit Union

Alaska USA Federal Credit Union www.alaskausa.org (360) 876-0119 Port Orchard: 3355 Bethel Rd SE

AmericanWest Bank

14 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

Port Orchard: 4350 SE Mile Hill Dr Fred Meyer – 1900 SE Sedgwick Rd Poulsbo: 20350 Little Valley Rd NE Silverdale: 10745 Silverdale Way NW

www.bankofamerica.com (800) 442-6680 Bainbridge Island: 1200 NE Hildebrand Lane Bremerton: 1600 NE Riddell Rd 1000 6th St Gig Harbor: 4815 Point Fosdick Dr NW Kingston: 10943 NE State Hwy 104 Port Orchard: 1497 Olney Ave E Poulsbo: 19255 Jensen Way NE Silverdale: 9981 Silverdale Way NW 10574 Silverdale Way NW

Boeing Employees’ Credit Union BECU www.becu.org (800) 233-2328 Gary J Oakland, CEO Silverdale: Safeway – 2890 NW Bucklin Hill Rd

Chase www.chase.com (877) 682-4273 Bainbridge Island: 231 Winslow Way E Belfair: QFC – 201 NE SR 300 Bremerton: Fred Meyer - 5050 State Hwy 303 NE 500 Pacific Ave. Gig Harbor: 5004 Point Fosdick Dr NW 5225 Borgen Blvd NW

Bremerton cont.: 6733 NE State Hwy 303 Gig Harbor: 4714 Point Fosdick Dr NW 7109 Pioneer Way Kingston: 8190 NE State Hwy 104 Port Orchard: 619 Bay St., 1700 Village Lane SE 3324 Bethel Rd. Poulsbo: 19725 7th Ave NE Silverdale: 10488 NW Silverdale Way

Kitsap Credit Union

First Citizens Bank

www.kitsapcu.org (800) 422-5852 Bainbridge Island: 1050 Hildebrand Lane Belfair: NE 51st Hwy 300 Bremerton: 155 Washington Ave. 6651 NE State Hwy 303 1001 6th & Warren Gig Harbor: 4949 Borgen Blvd Suite 106 4747 Point Fosdick Dr NW Kingston: 8196 NE State Hwy 104 Port Orchard: 393 S. Kitsap Blvd.

Poulsbo: 19045 Hwy 305, Suite 200 Silverdale: 9481 Silverdale Way NW 2041 Myhre Rd.

www.firstcitizens.com (888) 323-4732 Gig Harbor: 5101 Point Fosdick Dr

Liberty Bay Bank of Washington

www.connectioncu.org (360) 307-6400 Bremerton: 2525 6th St Port Orchard: 1026 Sidney Ave (Inside the Givens Center) Silverdale: 10200 Silverdale Way

KeyBank www.key.com (800) 539-2968 Bainbridge Island: 617 High School Rd NE Belfair: 23731 NE State Route 3 Bremerton: 3570 Wheaton Way Gig Harbor: 5001 Olympic Dr NW, Ste 101 3216 Judson St 5055 Borgen Blvd NW Port Orchard: 1301 Bay St Silverdale: 9338 Silverdale Way NW

Kitsap Bank www.kitsapbank.com (800) 283-5537 or (360) 876-7800 Bainbridge Island: 10140 NE High School Road Belfair: 24180 NE SR 3 Bremerton: 607 Pacific Ave. 3425 Wheaton Way, 1140 Marine Dr.

www.libertybankwa.com (360) 779-4567 Poulsbo: 19917 7th Avenue NW Suite 101

Navy Federal Credit Union www.navyfederal.org (888) 842-6328 Bremerton: 4980 Auto Center Way Silverdale: 3340 NW Randall Way Peninsula Federal Credit Union www.pcfcu.org (800) 426-1601 Belfair: NE 23550 Hwy 3 Port Orchard: 1081 Bethel Rd Poulsbo: 21505 Market Pl NW, Suite 109

Sound Credit Union www.soundcu.com (800) 562-8130

Gig Harbor: 4521 Point Fosdick Dr NW Key Center: 8920 Key Peninsula Hwy N

Sterling Savings Bank www.sterlingsavingsbank.com (206) 842-8676 Bainbridge Island: 600 Winslow Way E, Suite 120

Timberland Bank www.timberlandbank.com (800) 562-8761 Gig Harbor: 3105 Judson St Poulsbo: 20464 Viking Way NW Silverdale: 2401 NW Bucklin Hill Rd

Umpqua Bank (Formerly Rainier Pacific Bank) www.umpquabank.com (866) 486-7782 Gig Harbor: 3123 56th Street Ct NW 4949 Borgen Blvd #101

US Bank www.usbank.com (800) 872-2657 Bremerton: 2020 6th St Gig Harbor: Safeway – 4831 Point Fosdick Dr NW Albertson’s – 11330 51st Ave NW Port Orchard: Albertson’s – 1434 Olney Ave SE Albertson’s – 370 SW Sedgwick Rd Silverdale: Albertson’s – 2222 NW Bucklin Hill Rd

Washington Federal Savings www.washingtonfederal.com Bremerton: 5265 State Hwy 303 NE (360) 479-404 Poulsbo: 18960 State Hwy 305N, #103 (360) 779-2111

Wells Fargo Bank www.wellsfargo.com (800) 869-3557 Bainbridge Island: 1180 Hildebrand Lane NE Bremerton: 2602 6th St 2550 6th Street (Motor Bank) Safeway – 1401 NE McWilliams Rd. Gig Harbor: 5501 Soundview Dr. Port Orchard: 1488 Olney St SE Poulsbo: 19044 Jensen Way NE Silverdale: 9976 Mickelberry Rd NW

Loan officer hired for bank’s second home lending office in Kitsap The second home lending office opened this year in Kitsap County by 1st Security Bank will have Kathy Hite on staff as loan officer.

The Mountlake Terrace-based bank’s new Kathy Hite office is in Port Orchard at 1140 Bethel Road. The bank’s Poulsbo home lending office opened in February.

Hite has been a loan officer in the area since 2000 and has worked in the industry for over 20 years.

Financial advisor offers Overcoming Obstacles seminar Edward Jones financial advisor Donald Logan of Silverdale is hosting a free seminar titled Overcoming Obstacles on May 30, at 5:30 p.m. at 2416 NW Myhre Road.

The presentation will examine trends and insights to help put concerns about the economy and stock market into perspective.

It will also address anxiety about deficits and debts, the economic outlook, strategies to address the impact of inflation and interest rates, and opportunities in the market.

The presentation is free, but space is limited. To make a reservation, contact Logan or Beth Halvorson at 360-692-1216.

Legacy Group to merge with larger mortgage lender Legacy Group Lending, Inc. recently announced a merger with Denver-based lender W.J Bradley. The merged company is estimated to become the fourth-largest privately owned lender in the United States.

With expanded loan products, improved pricing and special programs like HARP 2.0 refinances and in-house underwriting for jumbo loans, the Legacy Group merger decision came as part of the brand’s strategic growth plan, according to the company.

MOBILE

from page 9 include person-to-person payments, loan applications and so-called mobile wallet, the ability to use your phone to pay for goods and services. But the behind-thescene discussions are not only about new features and convenience.

Security, for example, has been a hot topic. The way Peninsula Credit Union is addressing that is through a feature that goes beyond the usual user name and password.

When the mobile app becomes available in a couple of months, it will use a geolocationbased safety feature. Users will be able to set the parameters, such as their common location and radius, and those parameters

“Aligning with W.J. Bradley will allow the Legacy Group family to grow throughout our key regions much more quickly,” said Scott Rerucha, Legacy Group CEO. “We will not only have access to their incredible technological systems, but also their consumer-friendly lending platform.”

Founded in 2007, Legacy has 23 branches in Washington, Oregon, California, Hawaii, Colorado and Arizona.

In 2012, Legacy funded more than $1.6 billion in loans. It also ranked on the Puget Sound Business Journal’s “fastest-growing private companies in the state” and Seattle Business Magazine’s “best places to work” list in 2011.

In 2012, W.J. Bradley originated more

than $6.4 billion in residential home loans.

With more than 70 branch locations throughout the United States, the company is licensed in 20 states and currently operates with more than 1,400 professionals.

The Legacy Group team will continue to operate all of its community branches under W.J. Bradley, as well as maintain an operations center in Bellevue.

“The production capability, quality of operations and strong reputation maintained by Legacy and its employees makes this partnership an ideal fit for us in the Pacific Northwest," said Michael Kime, chief operating officer for W.J. Bradley.

“The integrity and strength of this team is exceptional.”

will have to be met in order to access information via the phone. But members will be in full control, according to Morrell. For example, if they go on vacation, they’ll be able to set new coordinates.

Tablet use is another trend financial institutions are discussing. Kitsap Credit Union plans to introduce a tablet strategy later this year that takes advantage of the “real estate” that tablets offer.

“When you handle a smart phone, it’s more on the go and with one hand. With a tablet, it’s more relaxed so there’s a major difference,” Wells said.

KCU is also looking at so-called responsive design, a new way to design websites so they respond to different devices and screen sizes (by using a grid system for

information architecture and adjusting the elements accordingly based on device).

“We recognize that our website needs to scale up and down depending on what device is accessing it, Olson said. “One individual might access our site via a smartphone and another with a gaming device or projector. With responsive design, we will be able to give an excellent experience no matter what device is used.”

No matter what new ideas and features technology brings, one trend is here to stay: Financial institutions want to meet and serve their customers no matter where they are.

“Folks want to do their banking whenever and wherever they can,” Devine said. “They want convenience.”

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 15

New name and home for CASH, same mission for program

By Rodika Tollefson While the Washington CA$H program is no longer officially in Kitsap County, the program, which provides training for nascent entrepreneurs, continues to go strong. Now called BE$T — Business Education Support Training — the program is under the umbrella of Kitsap Community Resources and is providing the same type of hands-on education for small business owners.

CA$H has operated in Kitsap since 2000, helping more than a thousand entrepreneurs start or expand their businesses. KCR has been a supporter of CA$H and has even provided space for its classes. When CA$H was looking to pull out of Kitsap last year due to some challenges, KCR offered to help.

“We offered to step in and play a part since microenterprise is so important,” said KCR Executive Director Larry Eyer. “We did a partnership, which so far has worked out well.”

As part of the partnership, BE$T is providing the curriculum, training and mentoring. Washington CA$H, in turn, is providing the infrastructure for the microloans program, which is available to advanced students. BE$T participants can also utilize the CA$H consignment store at Pike Place Market for selling their products.

“They (CA$H) have the expertise in certain areas and can provide us with technical assistance,” Eyer said.

Stuart Walton, a familiar face around Kitsap — he’s coordinated Kitsap CA$H since 2006 — now works for KCR as the BE$T manager. He developed the program, does the recruiting and continues to work with local mentors who provide additional support for students. Enrollment costs a small fee ($40 or $100, depending on income) and is limited to a certain income threshold (80 percent of HUD’s median guidelines) due to funding through community development block grants from the city of Bremerton and Kitsap County.

Although the curriculum is similar to CA$H, Walton changed it to better match the local population. “I tried to find the ‘face’ of Kitsap,” he said. That face turned out to be a 43-year-old single mother of two who was laid off and offered a job at an average of 70 percent of her previous pay. “She wants to provide a better life for herself and her family and has several options, one of which is the path to entrepreneurship,” he said.

With that picture in mind, Walton talked to a university professor who successfully used experiential training, and changed the

Waste Wise @ Work

16 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

A Kitsap County Business Program recognizing local businesses for waste reduction, recycling and purchasing recycled products.

Congratulations Kitsap Sun 2012 Waste Wise @ Work Business of the Year Kitsap Sun was recognized at the Kitsap County Annual Earth Day Awards presentation for their excellence in reducing waste, recycling and buying recycled products. Visit www.kitsapgov.com/sw for more information.

Kitsap Sun’s 100 employees recycle more than 85% of their waste on the jobsite.

Kitsap Sun recycles a variety of materials including metal printing plates, newsprint, bottles and cans.

Kitsap Sun uses recycled content products.

Join the Waste Wise @ Work program so your business may be considered for the 2013 Business of the Year. Apply online:

www.kitsapgov.com/sw/ww.htm For more information contact: Kitsap County Public Works Solid Waste Division 360-337-4898 • solidwaste@co.kitsap.wa.us

curriculum with the help of local business consultant Bill Hoke, a longtime mentor and supporter for Kitsap CA$H. Because the goal is to help people become self-sustainable — which is the overarching mission of KCR — even if students successfully get full-time Courtesy photo employment instead of Gary and Julia Reynolds enrolled in BE$T after owning a business for running a business after a few months and said they were able to implement many ideas to the program, BES$T improve their business. considers that a success. be licensed and bonded,” he said.

“We are looking at what is the (best) end While they’ve been successful in getting result for these ‘reluctant entrepreneurs,” enough work, Reynolds said the class Walton said. benefitted them both. Julia was more The new curriculum is hands-on, using a interested in financial topics and he, in lot of role-playing, public speaking and similar marketing. “When we started, it was just word techniques. The first phase includes an of mouth. Now we are doing a website and orientation and an eight-week session that making flyers for customers to pass along,” he meets weekly and provides an overview of said. “We plan on hiring in the near future.” basic business aspects.

The couple was planning on returning to “We got a lot of ideas out of it and we are BE$T for phase 2, another eight-week session starting to do things a little differently,” said that focuses more in-depth on a feasibility plan Gary Reynolds, who attended the recent as well as business management. The program phase 1 training with his wife, Julia. The has a total of four phases. The third one is a Indianola couple launched GR Construction peer- and mentor-based support group and and Design last August, which employs Gary the final is an advanced support group that full-time and Julia part-time. Like many of gives participants access to the microloan those “reluctant entrepreneurs” Walton programs. describes, Reynolds was laid off, losing a job BE$T is a state-approved self-employment he’s had with a local builder for 13 years. While assistance program, or SEAP, which allows collecting unemployment for a short time, individuals to receive the training while on Reynolds started doing small jobs and soon he unemployment assistance (instead of actively realized he had a business.

“We decided to make the jump because we had a lot of work coming at us. We needed to CASH, page 17

PAPERLESS

from page 11 very differently from the way they did years ago. They’re doing online monitoring and not waiting for a monthly statement,” he said. He said banks are not the only ones being aggressive with paperless — it’s a growing trend for credit card companies and utility providers as well.

“It’s important for consumers to explore their options,” he said.

On a national scale, if onl y 20 percent of

people switched to electronic bills and statements, 150 million pounds of paper would be saved, along with 1.6 billion gallons of waste water and 15 million gallons of fuel, according to PayItGreen, a collaborative initiative between financial institutions and businesses to reduce paper use and promote electronic payments.

“We’re all guilty of maintaining the status quo,” Devine said. “Check to see if your service providers offer those options and do something good for the environment.”

Peninsula Cancer Center earns radiation oncology accreditation Peninsula Cancer Center was awarded a three-year accreditation in radiation oncology in April as a result of a recent review by the American College of Radiology (ACR). After passing this stringent evaluation, Peninsula Cancer Center received the ACR seal of approval for displaying the highest level of quality care and patient safety.

According to the ACR, only four other facilities have been awarded this distinction in Washington state.

The ACR is the nation’s oldest and most widely accepted radiation oncology accrediting body, with nearly 500 accredited sites and 25 years of accreditation experience. In order to earn accreditation, Peninsula Cancer Center had to meet several strict standards and qualifications developed by the ACR, based on a peer-review evaluation by board-certified radiation oncologists and medical physicists who are experts in the field.

Peninsula Cancer Center was founded in 2009 by Dr. Berit Madsen and Dr. R. Alex Hsi to provide radiation treatment to cancer patients.

“We’re extremely proud to receive this distinction,” Madsen said. “It shows that Peninsula Cancer Center is living up to our mission of providing the best patient care possible.”

Facilities are evaluated in the fields of patient care and treatment, patient safety, personnel qualifications, adequacy of facility equipment, quality control procedures and quality assurance programs.

“Earning this accreditation means that our patients can have confidence that a third party has rated Peninsula Cancer to be a superior cancer treatment center,” Hsi said.

Poulsbo clinic earns accreditation for MRI InHealth Imaging in Poulsbo has been awarded a three-year term of accreditation in magnetic resonance imaging (MRI) as the result of a recent review by the American College of Radiology (ACR). MRI is a noninvasive medical test that utilizes magnetic fields to produce anatomical images of internal body parts to help physicians diagnose and treat medical conditions.

“There are very few centers that have earned this designation and we are very proud of the quality that we are delivering to our patients,” said Dr. Manfred Henne, board-certified radiologist and operator of InHealth Imaging. “We have worked diligently to qualify for this designation and are gratified that ACR has acknowledged our accomplishments with the MRI gold seal designation.”

The ACR gold seal of accreditation represents the highest level of image quality and patient safety. It is awarded only to facilities meeting ACR Practice Guidelines and Technical Standards after a peer-review evaluation by board-certified physicians and medical physicists who are experts in the field. Image quality, personnel qualifications, adequacy of facility equipment, quality control procedures, and quality assurance programs are assessed. The findings are reported to the ACR Committee on Accreditation, which subsequently provides the practice with a comprehensive report they can use for continuous practice improvement.

The ACR is a national professional organization serving more than 36,000 diagnostic/interventional radiologists, radiation oncologists, nuclear medicine physicians, and medical physicists with programs focusing on the practice of medical imaging and radiation oncology and the delivery of comprehensive health care services.

CASH

from page 16 seeking full-time employment).

The program is part of KCR’s employment and training division, which includes employment preparation assistance, financial education and other resources. BE$T applicants, however, do not have to be KCR clients.

Recently, the second BE$T class was enrolled, with 64 applicants for 32 spots.

About a third of participants already have an existing business.

“There’s still a huge demand for it and people are coming from all walks of life,” Walton said.

He said he is seeing a lot more serviceoriented business owners, and the majority of those starting out are still working part-time.

“To start a business now is very, very tough,” he said. “You need some income coming in so taking a part-time job for these reluctant entrepreneurs is crucial.”

There will be two more new sessions this year, one starting in June and another in September. For more information, go to kcr.org/best.

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 17

Owner’s retirement means Bainbridge clothing store will close Lindsley’s has been selling ‘lifestyle clothing’ to islanders for 22 years

By Tim Kelly, Editor She turns 66 on May 16, and two days later Judy Lindsley will close the Bainbridge Island clothing store she and her husband opened 22 years ago. After that?

"I'm looking forward to my next chapter, whatever that's going to be," she said during an interview at Lindsley's, where signs advertised 40% off everything in the store for the going-out-of-business sale.

"Everybody wants to know what I'm going to do, but I have no idea."

Judy and her husband, Tom, had an idea in 1991 to pull up stakes and leave the Midwest to do something different, even though they both had good jobs working for Halls, an upscale department store in Kansas City, Mo., owned by Hallmark Cards, Inc. Judy, a onetime elementary school teacher, was a manager and had worked there 20 years, but she said they felt the time was right if they were ever going to leave her hometown.

"We decided to play 'where would you live if you could live anywhere?'" she said.

Tim Kelly photo

Judy Lindsley, left, stands with store employee Sidney Snyder as customers shop the going-out-ofbusiness sale at Lindsley’s clothing store. The business Judy and Tom Lindsley started on Bainbridge Island 22 years ago is closing May 18.

They had taken sailing vacations to the San Juan Islands and other destinations around Puget Sound, and on one trip they took the ferry to visit Bainbridge Island.

"We wanted to do something together,"

she recalled, "and we thought this would be great, to start a business on an island like this."

They got to know the late Lou Goller, founder of now-defunct American Marine Bank, who suggested to the Lindsleys that a clothing store would be a good addition on Bainbridge Island.

Their store that provided “someplace on the Island you could buy Jockey underwear” originally opened on High School Road and later moved to their location on Bjune Drive, just off Winslow Way. Through fashion changes over two decades, Lindsley’s focused on selling “lifestyle clothing.”

“We carried basic brands like Pendleton

and Woolrich, names that would let people know this was a quality store,” Judy said.

Their plan to run the business together lasted a few years, until Tom bought Eagle Harbor Window Coverings, which was next door to their clothing store until a recent move to a new location. He plans to keep running his business even though Judy’s retiring.

After Lindsley’s closes, the Wildernest outdoor store on Winslow Way will take over the space to expand its operation.

Asked what she’ll miss the most once she retires, Judy replied “just seeing people, and their dogs.”

Her store always welcomed canine companions.

“We had two dogs, and they were in our commercials and our ads,” she said. “So yeah, we let people come in with their dogs, because around here people just do a lot of things with their dogs.”

She said she’ll also miss the creative side of being a clothing store owner, which included going to New York a couple times a year on buying trips.

“I’m not retiring because I’m tired of it,” she said, adding that she planned to retire at 66 and will miss that target date by only two days.

The Lindsleys’ 26-year-old daughter grew up on the Island, but there was no intention for her to take over the store. Nor did Judy want to find a buyer for the family business.

“We didn’t even offer it for sale, and I’ll tell you why,” she said. “The name of the store is Lindsley’s, so the name is the business, and I’m not willing to sell our name.”

She said she’s “totally happy” with the decision to close the store after a good run.

“This has been a great community to have a business in,” she said.

18 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

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May 2013 Edition

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

Wednesday, May 1, 4 p.m.

Kitsap HBA Remodelers Council Thursday, May 2, 7:30 a.m.

Developers Council Mtg. Friday, May 3, 4 p.m.

Membership Recruiting Event Pizza & Beer hosted by KINGSTON LUMBER! RSVP to HBA Friday, May 10 DUE DATE Builders Best Award Applications Friday, May 17 AHC Annual Auction & HBA Dinner RSVP to HBA by May 3 Please donate high quality new items Please consider a sponsorship Tuesday, May 21, 1 p.m.

Forklift Training @ HBA! Preferred Pricing for Members Non Members Welcome Register w/ BIAW Monday, May 27 HBA CLOSED Wednesday, May 29 Elliot Eisenberg 3 Phases of Construction Benefits to Kitsap’s Economy Luncehon — RSVP to HBA Thursday, May 30 Executive Cmt. Mtg., 2 p.m.

Gov. Aff. Cmt. Mtg., 2:30 p.m.

Board of Directors Mtg,, 3:30 p.m.

Tuesday, June 18 Builders Best Awards Event!

RSVP to HBA VISIT the NEW HBA Website! www.kitsaphba.com Online Event Registrations!

A Tale of Two Households

BY ELLIOT EISENBERG, PH.D. During the last year and especially the last five or six months, the economic data have been of two minds. On one hand, household net worth is way up, the stock market has been setting new highs and the number of millionaires is at 9 million, just below where it was before the recession. At the same time, we read that the amount spent at restaurants, bars, and department stores recently fell as households compensate for higher gas prices and payroll tax increases by reining in discretionary spending.

Which is it? Is the economy getting better or are Elliot Eisenberg, PH.D. households hunkering down? Turns out, it’s both. Behind this seeming paradox is the growing gulf between America’s wealthier households and its poorer ones. And the past recession has put this gap into bold relief.

While suffering during the Great Recession, wealthier households, because they are more likely to own equities and a home, have enjoyed the recent rise in house prices and the stock market, as well as the special yearend dividends that were timed to avoid tax increases that went into effect the first of this year. In addition, because they can borrow money at today’s historically low rates, they are spending more on vacations, cars and other high-end discretionary purchases as their financial situation improves.

Moreover, over the last few years their incomes have been rising, something the majority of the population has not been experiencing.

By contrast, households in the bottom half of the income distribution are having a tough time of it. The combination of stagnant wages in the years before the Great Recession, large job losses during the recession, current high levels of unemployment, the dramatic increase in those unemployed 12 months or more, high gasoline prices and delayed income-tax refunds are forcing these households to forgo many purchases. As such, retailers that cater to lower and middle-income Americans are feeling the pinch. Worse, the payroll tax hike will probably take three or four months before its impact is fully felt.

Fortunately, those in the top half of the income distribution are doing well and they pack a lot of retail punch. The top 20% of households account for 38% of all spending while the top 50% of all households account for 70% of all spending. By contrast, the bottom quintile is responsible for a tad less than 9% of all spending. And so far, higher income households have been carrying the load, with spending most recently rising at a month-over-month rate of 0.7%, the best level since a 0.8% gain in September 2012.

Despite high-income households facing higher taxes due to the expiration of the Bush tax cuts and everyone facing the vagaries of the sequester, the economy is not on the ropes. A diet of dirt-low interest rates, a booming energy sector, and solid improvement in the allimportant cyclicals including autos, big ticket items, business fixed investment, and most importantly homebuilding, should translate into increases in middle — and lower-class employment and (hopefully) wages, and thus more household spending among those doing relatively little of it now.

Elliot Eisenberg, Ph.D. is President of G raphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.

2013 OFFICERS President . . . . . . . . . . . . . . . . . . . . Robert Baglio First Vice President . . . . . . Judy Mentor Eagleson Second Vice President . . . . . . . . . . . . . . John Leage Treasurer . . . . . . . . . . . . . . Randy Biegenwald Secretary . . . . . . . . . . . . . . Dee Coppola, CGA Immediate Past Pres. . . . Wayne Keffer, CGR, CAPS

2013 BUILDER & ASSOC. DIRECTORS Karla Cook • Judy Granlee-Gates Joe Hurtt • David Godbolt, CAPS, CGP, CGB, CGR Berni Kenworthy • Miriam Villiard Kevin Ryan • Leslie Peterson, CGA Shawnee Spencer • Jim Way, CGB

2013 STATE DIRECTORS Robert Baglio • Kevin Hancock Lary Coppola • Judy Mentor Eagleson Justin Ingalls, RCS • Wayne Keffer, CGR, CAPS John Leage • Ron Perkerewicz

2013 ALTERNATE STATE DIRECTOR John Armstrong • Walter Galitzki Brent Marmon • Greg Livdahl • Jim Heins

LIFE STATE DIRECTORS Bill Parnell

2013 NATIONAL DIRECTORS Robert Baglio • John Leage

2013 ALTERNATE NATNL. DIRECTORS Michael Brown • Jeff Coombe

LIFE DIRECTORS Rick Courson • Jim Smalley • Bob Helm Bill Parnell • Larry Ward John Schufreider • Dori Shobert

2013 COUNCIL & CHAIRS Build a Better Christmas. . . Randy Biegenwald Built Green . . . . . . . . . . . . . . . . Walter Galitzki

By Laws & Nominations . . Wayne Keffer, CGR, CAPS Developers Council. . . . . . . . . Berni Kenworthy Golf Classic . . . . . . . . . . . . . Shawnee Spencer Govt. Affairs Cmte . . . Judy Mentor Eagleson Remodelers Ccl Chair . . . . . . . Walter Galitzki Membership . . . . . . . . . . . . . . . . . . John Leage Parade of Homes . . . . . . . . . . . . . Dee Coppola Peninsula H&G Expo. . . . . . . . . . Ardi Villiard Peninsula H&R Expo . . . . . . . . . Dee Coppola

HBA STAFF Executive Vice President . . . Teresa Osinski, CGP tosinski@kitsaphba.com Events and Administrative Assistant . . . Katie Revis hbaevents@kitsaphba.com Administrative Coordinator. . . Kathleen Brosnan 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

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May 2013 Edition

The Status of the Construction Industry — A Robert Local Perspective Baglio People often ask me how are things in the construction The BJC Group Industry?

Are things 2013 President improving? Well it does seem as if things are slowly getting better. There appears to be more activity in the market place. Owners and developers are starting to move forward with projects that they have been sitting on for 5 or 6 years. This increased activity leaves one cautiously optimistic. The optimism is tempered though, because even though there appears to be more activity, the positive advances are tenuous due to negative market forces that are counteracting the advances. These negative market forces include difficulty obtaining construction financing, increases in material costs, and the never ending cycle of increased regulatory requirements. The following paragraphs explain these negative forces and their impacts on the construction industry.

Difficulty obtaining construction financing. The process to obtain construction financing is a long, painful process. Quite often taking nearly a year to complete and in most instances requiring multiple submittals to multiple banks before one is found that wants to lend money for a construction project. Since the process takes so long, the construction costs used to develop the project budget are old and stale by the time the bank gives the approval for you to break ground. But you are so happy to have work you don’t say a word and go to work starting at a greatly reduced profit margin, even less than the already minimal margin used when the cost figures were initially submitted to the bank.

Increasing material costs. Material prices are increasing so quickly that they threaten to cause the cost of construction to exceed that value of the finished product. A problem we have been trying to overcome for close to 5 years now. For example, lumber prices are the highest they have been since September of 2004. According to NAHB statistics the national average for lumber is $449/1000 board feet and OSB is quickly approaching historically high prices. The sharp escalation of material prices increase the cost of construction while property values are only slowly creeping up, making it incredibly challenging to maintain construction cost at levels that still ensure a project is economically viable. And let’s not forget about the price of gasoline, which affects every aspect of the construction industry or any industry for that matter.

Increased regulations. The never ending, never ceasing, continual assault on the construction industry in the form of increased regulations is probably the single most detrimental obstacle to turning our economy around. It is not one single item or regulation. It is the sum total of all the various minor and incremental code changes and updates that occur on a regular basis. The difficult thing about the slow continual increase in regulations is that the average citizen does not understand the full ramifications and impacts of these regulations. When asked about code revisions for energy efficiency, storm water, or shoreline regulations, the average person on the street would more than likely think they are a good idea. They seem reasonable. That is until they have to obtain some type of a permit for work they want to perform. This is usually only done perhaps once or twice in their lifetime, if ever, but when that time does come they begin to understand how many rules and regulations you must comply with. It is then that your client turns and looks at you and says, “I don’t know how you do it. How do you deal with these things day in and day out without going crazy?” That’s a good question.

An example of the impacts of regulations on new home construction is exemplified in a study performed by the National Association of Home Builders (NAHB) in 2011. This study found that on the average, regulations imposed by governments at all levels account for 25% of the final price of a new single family home, TWENTY-FIVE PERCENT! Now that certainly is not contributing to

affordable housing is it? Even in the grips of the “Great Recession” the regulations continue to be increased. If there was ever a time to be “regulatory neutral” it would be now. The economy is showing positive signs of growth. Give it a chance. Give us a chance. Put a freeze on increased regulations and hopefully efforts will be made to loosen up construction lending.

To better understand the reasons construction is important to our local economy, I encourage all HBA members to register to attend our lunch meeting on May 29 where we will have Dr. Eliott Eisenberg here to explain, using Washington specific data, the 3 phases of construction’s economic benefits. In 2011, one of many bleak years for our construction trades, this sector was still the 3rd largest employer in the state. 41,000 Elliot Eisenberg, PH.D. jobs were tied to construction and over $3 billion in (Luncheon May 29) revenue was generated and spent in the state and local economies.

Please RSVP to the HBA to attend this luncheon on May 29.

As the 2013 Legislative session is wrapped up here are a few important updates related to the construction industry.

CGP Plat Extension Bill Signed into Law By Governor — Executive House Bill 1074, Rep. Jan Vice President Angel’s (R-Port Orchard) plat extension bill has been signed by the Governor. This bill provides another year of relief for the struggling homebuilding industry. This common-sense bill had unanimous support in the House and Senate. When you have a minute, please thank our legislators for their support and Jan Angel specifically for taking the lead.

Impact Fee Deferral Bill — As of this writing, this bill has passed both chambers with strong bipartisan support. By the time this article is published we will know if Governor Inslee signed it or not.

House Bill 1652 defers the payment of impact fees until closing or certificate of occupancy. It does not mandate any changes to programs like the one in Kitsap County but does mandate all jurisdictions to adopt a deferral program. Deferral ensures all the recipients (schools, parks, and roads) receive the required funds, but allows the builder to delay paying the fees until closer to the end of the project. These fees can make the difference in getting financing.

Upfront SEPA/Latecomers Agreements Passes Unanimously — Engrossed Substitute House Bill 1717 was sent to the Governor in late April. At the time of this article, it had not yet been signed. This bill encourages local jurisdictions to do upfront SEPA by allowing reasonable expenses to be recovered. The bill includes offramps for developers so they are not forced to use the Environmental Impact Statement (EIS) prepared by the municipality or pay the fees associated with using it. ESHB 1717 modifies the language around latecomers’ agreements and mandates a contract between the real estate owner and the local jurisdiction (when requested by the real estate owner) to be used and establishes a mandatory 20-year term. It also allows local governments to collect fees for administrative costs. ESHB 1717 will ensure that first developers are able to recoup some of their infrastructure costs when others move in after the infrastructure is available and already paid for.

The work of BIAW and its contract lobby team have served the membership well this year. The leadership and vision of BIAW Executive Vice President Art Castle has helped to guide BIAW to the first session in many years where our members have actually gotten new legislation to help them do what they do. Several other bills were effectively killed that would have been damaging to the industry. If you have any questions about these or other bills, please don’t hesitate to call me. I’m happy to assist.

Teresa Osinski

May 2013 Edition

Government Affairs Committee

HBA Dinner & Auction

Dust off your cowboy hat, polish your boots and join us for the annual Kitsap County Homebuilders Judy Mentor Eagleson Association dinner and Mentor Company auction on May 17th. The 2013 Chair festivities will take place at the Kitsap Golf and Country Club. Tickets are $45 per person and the event is open to both members and non-members. Our theme this year is the Wild Wild West and we encourage you to dress the part.

The bulk of the evening’s proceeds will support the Affordable Housing Council of the HBA of Kitsap County. The AHC is the political action committee of the HBA and its purpose is to support the candidates that support our industry. It is through the AHC that we are able to be politically active and relevant.

Our evening will begin with a silent auction of items secured from many generous donors. If shopping is not your thing take a seat and try your luck at the Black Jack table. Or just “bend an elbow” with friends.

Once the silent auction ends we will be called to dinner at the chili bar with all the “fixins” — not to mention the prime rib. As we dine we will be entertained by the Presidents (Past and Present) Duel. Yes, there will be holsters, there will be 5 steps and there will be guns (not real).

Then the real fun begins with Stokes Auctioneer Chris Sizemore taking center stage to auction off “bang up” — one of a kind items.

Have you ever had the opportunity to bid on a Wall of Whiskey; golf, lunch and beverages with Jeff Coombe and JC Carlson; Key Arena Suite tickets for 8 to the Rat City Roller Girls?

The proceeds from one of our live auction items will go entirely to support Hang on Kitsap. In cooperation with Catholic Community Services the HBA provides funds each year for the installation of grab bars in the homes of our elderly and mobility challenged citizens. We recognize that with a little additional assistance, citizens can live safely in their homes, longer, and independently.

Another way your local Homebuilders Association serves our community is through Build A Better Christmas. Each year we buy, wrap and deliver gifts to the families staying at the local YWCA Alive Shelter — hopefully bringing a little joy into their lives. Once your dinner has settled we will begin the dessert auction with these proceeds going to Build A Better Christmas. From homemade cookies and homemade Kahula to Cheeries Jubulee served tableside

by Kitsap Golf & Country Club Chef Dave you will be sure to find something to please your table’s palette.

So as you can tell the evening promises to be a “hip hollerin good time” and we hope you will join us.

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O T ff In he eri Se Be ng rv st ic e

HBA Meet & Greet!

May 3, at Jennings-Heins & Associates 26166 United Rd. NE, Kingston Join the HBA, Kingston Lumber, and Jennings-Heins & Associates for the 2nd Annual Spring Meet & Greet. This FREE event is open to all the construction related companies out there that aren’t currently members of the HBA. Maybe you were at one time. Maybe you’ve wondered, but never knew exactly why it matters. Kingston Lumber has been a member of the Association for over 30 years. Jennings — Heins has been a member for almost 20. These two successful Kitsap companies want to give you a casual opportunity to learn more.

We will have pizza, local beer and some prizes for you! Come by and learn how membership in the HBA will help your business. We encourage all HBA members to talk to the non-member companies you know and encourage them to come with you to this Meet & Greet event.

Please RSVP to the HBA.

Take advantage of YOUR MEMBER ADVANTAGE!

Member Advantage www.nahb.org/ma

There are national companies that want to do Every Year Thousands business with the you! Each Save Millions! company named below, and several others, are putting their money where their mouth is and offering MEMBERS ONLY these discounts.

Do you use FedEx? Are you saving up to 29% when you ship Express? How about 20% every time you use FedEx Ground? There are many other discounts too. Visit, www.1800members.com/nahb or call 1800-636-2377 for details.

Do you use Dell? Members can save up to 30% off on top of the line Dell computers. Call 800-695-8133 and mention NAHB or visit www.dell.com/mpp/nahb.

Still not a believer? Do you need office supplies? Visit www.officedepot.com/nahb and start receiving 10% off all delivery orders and FREE shipping on orders of $50 or more. You can call Office Depot directly at 800-274-2753 and mention your NAHB membership to learn more.

For all the details on all the companies giving our members discounts, please visit, www.nahb.org/ma. These discounts are there for members to use. If you have any questions, please call the HBA at 360-479-5778. We are happy you are a member and look forward to connecting you with all the NAHB Member Advantage money saving opportunities.

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May 2013 Edition

Welcome New Members Duckworth Pump & Well Drilling

Umpqua Bank

Ronald Duckworth 18365 Diamond Dr. NE Poulsbo, WA 98370 (360)779-9355 (360) 697-6950 fax duckworthdrill@hotmail.com And the SPIKE goes to...

Kerry Chamberlin of FPH Construction

Shawnee Spencer 10049 Kitsap Mall Blvd., Ste 100 Silverdale, WA 98383 (360) 535-5088 shawneespencer@umpquabank.com And the SPIKE goes to...

Shawnee Spencer of Umpqua Bank

Commercial Fence Corp Cheryl Duke 6000 A West Marginal Way SW Seattle, WA 98106 (206) 767-7433 (206) 767-9051 fax cduke@fenceitall.com And the SPIKE goes to...

Robert Baglio of The BJC Group

First Federal Bank David Huck 19980 10th Ave. NE, Suite 202 Poulsbo, WA 98370 (360) 912-1463 (360) 457-3194 fax dave.huck@ourfirstfed.com And the SPIKE goes to...

Judy Mentor Eagleson of Mentor Company

NW Ductless Inc Nathan Martin 4365 Victory Drive SW Port Orchard, WA 98367 (360) 329-6744 Nathan@nwductlessinc.com And the SPIKE goes to...

Joe Hurtt of Kingston Lumber

D.A. Caldwell, Inc Derek Caldwell 10120 Lillehei Ln. SE Port Orchard, WA 98367 (360) 536-8659 (360) 443-4260 fax derek.caldwellteam@gmail.com And the SPIKE goes to...

Keith Baggerly of Timberland Bank

2nd Annual HBA Builders Best Awards!

Applications due May 10.

Reception & Awards Ceremony June 18.

HBA members! It’s time to apply for the Builders Best Awards!

Applications are available on our website or from the HBA. Deadline for submissions is May 10 (firm!). Awards will be presented at a lovely cocktail reception on June 18 at 5 p.m. (location to be confirmed).

All HBA members are encouraged to attend th e reception and support the incredible work or Kitsap’s builders.

RSVP for the reception at the HBA. Please call Teresa for details.

Thank You Renewing Members 42 Years

10 Years

Armstrong Homes of Bremerton

Talbot Excavating Pickett Property Management Advanced Door Service Inc. Romark Corp

Over 20 Years Stan’s Electric Inc., (24) Cedar Bay Homes (23) McCormick Land Co., Inc. (23)

Over 5 Years Team 4 Engineering (9) Sound Construction & Coating JWJ Group LLC Northwest Decks Inc. Peninsula Credit Union JB Concrete Construction

20 Years Central Highlands Inc.

Over 15 Years Zwicker Construction (17) Washington Federal Four Aces Drywall KG & Sons Inc

Over 1 Year

Stephen Johnson Inc

Invisible Fence Peninsulas (4) Acupuncture and Wellness Center (4) DG Builders Inc (4) Republic Mortgage (4)

Over 10 Years

1 YEAR Anniversary

15 Years

Accurate Builders (13) Hard Rock Inc (13) Markay Cabinets Inc Air Masters Inc Robison Plumbing Service Inc Chinook Properties

LaMont Design BDH Holdings, LLC Hands of Joy Disney And Associates Inc. Lowe’s

Affordable Housing Council of the HBA of Kitsap County annual Auction!

May 17, 2013 - Kitsap Golf & Country Club Throw on your ridin’ boots and saddle up for a Wild Wild West themed night of fun! This annual event starts at 5:30 p.m. with a silent auction and FUN Wild West games. Dinner starts at 7:00 p.m. and is followed by a live auction. Admission & dinner is $45 per person. There are sponsorship levels in all sorts of denominations!

Don’t fret! We have an option that will fit your budget! Cash contributions help the HBA fund this great Wild Wild West dinner, and will get your company’s name in the program! Thanks go to Hard Rock for their generous contribution of the table center pieces. Be sure to RSVP by May 3rd by calling the HBA or registering on our website (www.kitsaphba.com).

Daily E-mail Updates It’s FREE for everyone!

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Just visit daily.kpbj.com and sign-up for our emailer to start receiving breaking area news stories right in your inbox. For more information call (360) 876-7900.

No activity at empty Myrhe’s building, only in the courts Trustee sale scheduled in June; former operators face lawsuit filed by unpaid contractors

By Tim Kelly, Editor The corner building where Myrhe's restaurant and bar served Port Orchard patrons for decades has been empty since a kitchen fire gutted the two-story structure in July 2011, and prospects for a revival are dim.

The boarded-up site has become an eyesore on Bay Street. The foreclosed property is scheduled to be sold at auction in a trustee's sale in June. The last owners of the restaurant, John Lora and Mindy Oliver of Milton, owe thousands of dollars in delinquent property taxes, and they are being sued by four companies that started restoration work on the building last year.

They claim Lora did not pay them for work they did, even though he received about $633,000 from an insurance claim before Travelers Insurance denied further payment on the claim because of alleged fraud.

It’s not cl ear how much of the insurance money Lora spent on restoration work, which included interior demolition, rebuilding second-floor walls and replacing the roof.

The property went into foreclosure because Lora and Oliver still owe about $700,000 on a deed of trust from their 2005 purchase of the property from its longtime owners, the Rylander family.

Port Orchard attorney Tracy DiGiovanni represents the family’s company, Myrhe’s Inc., and she’s been trying to get back the insurance settlement money that should be used to cover losses from the fire.

“I was able to to get some funds into a trust account, and from those we made sure the money went to contractors and material suppliers that needed to be paid,” she said.

“Then that money was depleted.”

The amount she collected and disbursed

was a little over $100,000.

“That was money paid by the insurance company to John Lora, and I took it from John Lora,” she said.

Klaus Snyder, a Pierce County attorney representing the four plaintiffs who filed the lawsuit, said he doesn't anticipate the trustee sale will happen. It would be postponed if Lora declares bankruptcy.

If the trustee sale does go through, it's unlikely to yield any money for the four contractors who are suing Lora and Oliver and have filed liens on the property. Any proceeds from a trustee sale would go first toward paying off the couple’s $700,000 debt to Myrhe’s Inc.; if the unpaid contractors are awarded a judgment in their lawsuit, they could be paid out of any surplus funds from the trustee sale.

But the building, even with the preliminary restoration work that was done last year, is basically an empty shell that's not worth near as much as Lora and Oliver owe on it.

"It's not even worth $200,000 until it's finished," said Lawrence Scheurer, who owns Design Systems Unlimited in Puyallup and is one of the plaintiffs in the lawsuit. "It's an unfinished building; it's not worth anything till it's done."

Lora had filed design plans with the city to rebuild the restaurant and bar on the ground floor and to build five apartments on the second floor.

Scheurer's firm is owed $16,277 for architectural services, and it's the smallest of the claims in the lawsuit. The other plaintiffs’ claims are $57,295 owed to Cloise & Mike Construction, a Port Orchard roofing company; $49,601 to Scorpion Ironworks of Kingston; and $135,000 to Troy and Charlotte Slaton,

Starting Aug. 1, owners of both residential and commercial buildings in Bremerton that are considered abandoned will have to register their properties with the city and inspect them monthly. The owners will also have to correct any nuisances, such as overgrown grass, trash or graffiti.

The ordinance, which the Bremerton City Council passed unanimously in April, is the first of its kind in Washington state. It imposes steep fines for noncompliance with the new rules.

Abandoned properties are defined as those that are vacant and have either been foreclosed (or have a deed in lieu of foreclosure), are under a notice of default or trustee sale, or are the subject of a pending tax assessor’s lien sale. The ordinance requires

the properties to be properly maintained, and if the owner is a lender or another entity out of the area, it must retain a local property manager who will be responsible for complying with the ordinance.

The lender or other “responsible party” will have 14 days after the default to conduct an initial inspection, prior to initiating foreclosure proceedings or posting a notice.

If the property is deemed vacant upon inspection and thus considered abandoned, the owner has another 14 days to register it with the city. The property then must be inspected monthly to determine if it’s vacant and if maintenance or other requirements under the ordinance are being met. It also must be inspected monthly if it’s occupied but remains in default, in order to determine whether it is vacant.

— Klaus Snyder, attorney for four contractors suing John Lora

including his house," said Scheurer. "And he's got a big house, with a swimming pool; I've been there a few times."

He said Lora is "a crook," and also may be under investigation by the state Labor & Industries office. Scheurer has done work for him in the past and said Lora was always late in paying.

"He definitely hasn’t been honest with us at all; he's been procrastinating and saying we're all gonna get paid," Scheurer said. "He hurt a lot of people. It's like he doesn't even have a conscience."

Neither of Lora's attorneys, William Wood Jr. and bankruptcy lawyer Neil Shillito, both of Tacoma, returned calls requesting comment for this article.

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May 2013 Kitsap Peninsula Business Journal • KPBJ.com 23

Bremerton will require registration, upkeep of abandoned properties

owners of Bad Board Restoration and Construction Services in Sumner.

Three other companies that are not part of the lawsuit also have filed liens against the property because they were not fully paid for their work on the building.

Snyder said any payments Travelers Insurance made for settlement of a claim from the fire should not have gone to Lora.

"Those checks should have been payable directly to Myrhe's Inc.," as the designated loss payee on the policy, Snyder said. He added that "It appears Lora may have forged some of the (insurance) checks to make them payable to him and Myrhe's Inc." Lora told the workers they would get paid out of the insurance settlement as soon as the new roof was put on, "and sure enough the money came through, but we think he used the insurance money for other things," Snyder said.

Lora and Oliver own other properties, including at least two other restaurants they ran in Orting and Kenmore, and Snyder said not all of their assets would be shielded from creditors if they file for bankruptcy.

"We're going after everything he owns,

“The money came through, but we think he used the insurance money for other things.”

Milltech Marine opens store in Port Orchard Milltech Marine has opened a retail store in downtown Port Orchard to augment its online business.

For over seven years Milltech Marine has been a provider of automatic identification system (AIS) marine solutions for recreational, commercial and military customers around the world. AIS is a transponder-based system for vessels of all sizes, and is designed for vessel tracking and collision avoidance. Milltech’s customers include the Coast Guard, Navy, fishing fleets, tug operators, round-the-world sailors and cruisers in every ocean.

“Since we live and boat here in Port Orchard, we decided to open a retail store in downtown Port Orchard where we hope to provide more personal service to our local customers,” said company founder Doug Miller. “While Milltech Marine initially focused on AIS hardware, we have now branched out to provide marine software, VHF radios, displays, antennas and cables and other popular marine electronics.”

The store is located at 120 Harrison Ave., next to Amy’s on the Bay restaurant. The company’s online store is www.MilltechMarine.com. For more information, email info@milltechmarine.com or call 206-299-2217.

Adair Homes opens West Sound office in Silverdale

A bit of jolly old England at new bakery A new business with a British flair has opened in South Kitsap. Owner Mayassa Roach opened The Piccadilly Bakery on April 13 in one of the retail buildings on the Fred Meyer lot at the corner of Sedgwick Road and Bethel Road in Port Orchard. The bakery offers stylishly decorated cupcakes and other fresh-baked goods along with espresso service, and also will be featuring some British foods such as Cornish pasties and shepherd’s pie.

The bakery — whose name is associated with Piccadilly Circus, a historic area in the West End of London — will add more hot dishes as it develops a full-service menu.

Piccadilly Bakery’s hours are 7 a.m. to 8 p.m., with a drive-up window open at 5 a.m. The address is 1894 SE Sedgwick Road, Suite 101.

Custom home builder Adair Homes has opened its newest sales office in Silverdale to serve the West Puget Sound area. The office at 3500 NW Bucklin Hill Road, Suite 100, will serve Kitsap, Clallam, Jefferson, Pierce and Mason counties.

“Interest and activity in the Puget Sound area have both increased during the first quarter of 2013,” Adair Homes president Byron Van Kley said. “We felt this was an ideal time to bring the quality and value of Adair Homes to a new location.”

Vancouver, Wash.-based Adair Homes offers a unique customization process for homebuyers in Washington, Oregon, Idaho and Northern California.

Surgical practice moves to new Gig Harbor location Olympic Surgical Associates has relocated their medical practice to Gig Harbor Business Park, 5800 Soundview Dr., Suite A-101. The office will be open for patients starting May 1.

Dr. Derek Boyden and Nancy Boyden, Advanced Registered Nurse Practitioner, may be reached at 253-858-2408.

24 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

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from page 38 piercing. The mayor, by the way, said nothing during that discussion about his selfappointed mission to deal with the piercing shop on his own.

In the end, the angst over Aperture was all for naught. City officials found there was no DOD prohibition on body piercing, the business licensing issues were resolved, and an adjusted attitude of acceptance seems to be emerging, even if Tim Kelly photo reluctantly. For his part, Ryan Jake Franklin and Kerry Enderton, owners of Aperture said now that the business is Body Arts Studio. properly licensed, “welcome to the community.”

As Moondogs owner and model. Yet in Poulsbo, on a prominent POBSA member Darryl Baldwin noted, corner on its quaint Norse-themed main Aperture wound up getting a lot of free street, there’s a tattoo parlor called Thor’s publicity.

Hammer and Needle that fits right in and is “Now anyone who wants to get a about to mark its second anniversary there, piercing knows where to go,” he said. with no noticeable heartburn among its The shop is open again and Franklin, brethren in commerce. who’s had training under renowned body Here’s what Poulsbo’s business-minded modification pioneer Fakir Musafar, said mayor, Becky Erickson, has to say about the his goal is “to bring in a high-class body art body artists who ply their craft there: studio that promotes education and safety.”

“Actually, they’re nice kids, nice He follows the guidelines of the Association people,” she said. “This generation likes of Professional Piercers and has a pending piercing and tattoos. Their appearance is application for membership. different from what I’m used to, but if you One other thing to consider: the sit down and talk to them, they’re truly nice council’s discussion touched on what kind people.” of downtown Port Orchard would like to Maybe she ought to make them deputy develop, and Poulsbo was mentioned as a mayors.

Leading in crisis: What we can learn from the Boston tragedy

By Dan Weedin The tragic events in Boston last month serve as a stark and vivid reminder that we face risk every day.

Regardless of whether it’s in business or in our personal life, our acceptance of dealing with anticipated and non-anticipated peril starts when you crawl out of bed.

As a business owner or manager, you’re probably in charge at some level in being a leader in the face of crisis. A bombing like what occurred at the Boston Marathon will most likely never happen to you (although merchants and business leaders in Boston may not have envisioned it, either). That being said, I promise you that you will face different crises in your business that imperil your operations, your revenue, and your reputation.

The events in Boston offer perspective and draw conclusions to facing risk and being a strong leader during crisis. Here are my thoughts on what you should take away and consider in your business: People will respond. As chaos ensued after the bombs exploded, people responded heroically. Runners kept running to Massachusetts General to give blood. Bystanders and runners rescued and gave aid to the injured. They did this

all without prior preparation or training.

They just knew what to do.

Your employees will do the same in a crisis. While I do advocate planning, preparation and readiness, people are resilient and caring and will respond accordingly. Helping them be prepared and ready only makes them that much better equipped at the time of crisis.

Leadership was present. Kudos to Massachusetts Gov. Deval Patrick. His addresses to the people of Boston, to his state, and to the nation were swift, specific, empathetic and frequent. He was clearly the leader and the face for the city while capably facilitating speakers from the police and FBI. The most injurious enemy for leaders in crisis is poor communication. Often, they don’t want to address anyone until they have all the facts. This is a mistake.

Silence in the face of crisis only fuels the fire with employees, supply chain, customers and community. Ambiguity leads to rumors and misinformation. Lack of empathy leads to bitterness and anger.

Who’s in charge of communications in your business in the event of a crisis? Do they have the skills to be effective in the face of adversity?

Be watchful and vigilant. The police will find the perpetrators of this heinous assault. They are receiving tips from people who were vigilant and saw things; clues are left behind, and there are really smart people on the job. A few years ago

when a car bomb in Manhattan didn’t explode, it was because someone on the street saw something out of the ordinary and wasn’t afraid to alert the authorities.

Because of his action, people didn’t die and the bad guy was caught. Being watchful and having the confidence to act leads to saving the day.

Have you trained your employees to be watchful and vigilant? Do they have full confidence to approach you if they see something strange? Are they capable of fixing things that should be fixed? I was at a client’s site once and observed a guy almost injure himself as he walked by a metal rod sticking out of a shelving unit.

To my surprise, he kept on walking, leaving a hazard there for someone else to get hurt, rather than simply fixing it! This vigilance is a culture that is set by you.

Security and readiness save lives. If you’re like me, you’re amazed that only three people died. While three people are three too many, the potential for hundreds was very real. The reason that didn’t happen was what we didn’t see – incredible preparation, security and readiness by the marathon staff, the city and police. My daughter works for the Pittsburgh Marathon and has told me how arduous a task this is and the hours of behind-the-scenes work that is done to protect everyone.

How “ready” is your place of business?

Have you done everything you can to protect your people, protect the structure,

and protect your property? I’ve walked through too many businesses that let this slide due to time, complacency and sheer apathy. Being proactive in crisis prevention and planning ultimately may save you tens of thousands of dollars – your business lifeblood – in the event of a disaster.

The worst in people brings out the best in people. This doesn’t just apply to business; it applies to life. This one sentence provides hope and gives confidence to each of us to get out of bed daily and move boldly through our lives.

The worst in people and in situations will be met by the best in people. If you arm your people with tools and make outstanding people even better, then you are not only a leader in crisis, you’re plain and simple, a great leader.

To close, I am reminded of Sgt. Phil Esterhaus's signature line in one of my alltime favorite television shows, Hill Street Blues: "Be careful out there." I would just add, “Be bold and be confident because we are strong.”

• Dan Weedin is a Poulsbo-based strategist, speaker, and mentor. He leads an executive peer-to-peer group in Kitsap County where he helps executives improve personally, professionally and organizationally by enhancing leadership skills. He was inducted into the Million Dollar Consultant™ Hall of Fame in 2012.

You can reach Dan at 360-697-1058; e-mail at dan@danweedin.com or visit his web site at www.DanWeedin.com.

Federally funded program helps low-income seniors find jobs that can be matched to the enrollee’s skills and interests. Jobs have ranged from administrative and maintenance to retail and plant care.

Although the administrative offices are located at the Givens Center in Port Orchard, the program’s employment counselor and participant coordinator (who is also a program enrollee) is stationed out of the WorkSource center in Bremerton. This gives the Title V program participants complete access to the training and resources available through WorkSource.

“The seniors can access all the classes, workshops and skill enhancement programs. The whole idea is to improve job readiness,” said Lou Guarasci, supervisor for WorkSource sites in Kitsap, Clallam and Jefferson counties.

She noted that WorkSource is a partnership of various agencies such as Kitsap’s Aging and Long Term Care. “As partners, we collaborate with them when we have a need,” Guarasci said. “It’s to the partners’ advantage to be housed here because they don’t have to invest into their own resources.”

Kitsap County moved the program inhouse in 2011 after the Washington State Employment Security Department decided to no longer be the subcontractor for it.

The change went through a complete

approval process by county commissioners, and the program is being administered without any additional staff.

“We didn’t want to lose the service in Kitsap County. It was critical for us not to lose it,” Hanna said.

She said the program not only benefits the seniors but also the participating nonprofits because it doesn’t cost the organizations to have the subsidized jobs.

She also noted that since the program is restricted to nonprofits, it creates limitations for the placement.

David Foote, executive director of Kitsap County United Way, said the advantage is not just in cost-savings.

Because the program works through a longterm contract, it gives the organization a chance to work with an individual closely.

“It gives us the opportunity to test them to see if they’re a good fit and if they are, hopefully hire them if we have the funds,” he said. “If there are other organizations that have the opportunity to use this program, it’s a good way to find good people to do needed work.”

Poulsbo Office Building For Sale POWDER HILL BUSINESS CENTER • • • • • • •

Across from new Safeway Olympic Mountain & territorial views 1 block from Highway #305 2-story brick building, built in 1999 22,196 sq. ft. building Upper floor vacant for buyer/user Asking price $3,600,000

Contact Victor C. Ulsh, CCIM Bradley Scott Commercial Real Estate

(360) 479-6900 • (800) 479-6903

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May 2013 Kitsap Peninsula Business Journal • KPBJ.com 25

By Rodika Tollefson Kitsap County’s low-income seniors who need skill training or assistance finding work may be able to get a hand from the county’s Division of Aging and Long Term Care. For nearly two years, the agency has been administering the Title V Senior Community Service Employment Program, which is funded by the federal government through the Older Americans Act. The goal of the program is to help lowincome individuals who are 55 or older become self-sufficient through training and job placement. The number of participants depends on funding every year, but earlier this spring Kitsap had about 13 slots.

“The idea is to help those with greatest need (who) may have barriers that make it difficult to find employment,” said Linda Hanna, Kitsap County Division of Aging and Long Term Care planner who coordinates the program. “The training is geared toward the participants’ interests and abilities.”

The program works by placing the participants in part-time, subsidized employment with various nonprofits to get them trained for, and placed in, unsubsidized employment. The nonprofits, however, may not use the seniors to fill new or existing positions or vacancies. Instead, the nonprofits create a part-time position

New Horizons program provides computers to those in need

By Rodika Tollefson When staff at Pinewood Manor in Bremerton need someone to repair the “community” computer, they know they can count on one person: Larry DuSavage.

The owner of a computer maintenance and repair business, DuSavage volunteers his time as part of Kitsap Computing Seniors.

Pinewood Manor, an RHF retirement community, has a public computer for residents’ use thanks to a KCS program called New Horizons.

“We are a low-income and disabled community so a lot of our residents don’t have a computer at all,” said service coordinator Laura Inman-Cowell. “They can use the (community) computer to keep in touch by email or search the Internet.”

In addition to the community computer, KCF donated several others to Pinewood Manor individual residents.

“They otherwise wouldn’t be able to have their own,” Inman-Cowell said. “A lot of them don’t drive and don’t have extra cell-phone minutes, so email is a way to stay in touch.”

Even if they can’t afford to connect those computers to the Internet, she said using them for other tasks is very beneficial for their mental acuity, helping keep the brain sharp. “It’s creating a new education

level for them,” she said.

Through New Horizons, Kitsap Computing Seniors provides as many as 20 computers each year to low-income Kitsap residents of all ages, including students.

The computers are donated to the organization, which does basic refurbishing and maintenance to ensure they’re in working order. New software is installed as well, and the recipients have the option of having it delivered to their homes.

DuSavage does the bulk of the refurbishing but he has also trained a small group on the New Horizons committee to help him. The committee also screens and selects applicants, who submit a simple application. The recipients must pay for their own Internet connection and KCS doesn’t provide printers, with some exceptions when some are donated to them.

The donations usually come from individuals, including from the 240 KCS members. On a couple of occasions, New Horizons received a small batch from an organization, such as Kitsap Community Resources, which donated its surplus machines during an upgrade. KCS pays a small amount for each Windows license as well as Microsoft Office, thanks to a service that offers low-cost software for nonprofits.

The money comes from the KCS general

“It’s Always Nice To Do Business Locally.”

26 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

“Northwest Commnet has been a business partner with Kitsap Credit Union for the last five years.

“Three years ago, we contracted with Telebyte Northwest, as an augmentation to the internet services we were currently providing.

“Both companies have been very responsive and provide dependable service.”

— Colin Morrison Senior VP CIO Kitsap Credit Union

360-613-5220 • TELEBYTE.COM

360-373-2137 • NW-COMMNET.COM

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fund, which is supported by the $20 annual memberships.

Membership is open to all ages, not just seniors, and members get free access to more than 300 computer classes per year.

DuSavage also installs a host of other free software for ongoing Photo by Rodika Tollefson maintenance, and sends off each new Larry DuSavage works on a computer that was donated to New Horizons for refurbishing. owner with an especially since the women can’t always extensive list of tasks that should be leave the premises. performed on a regular basis. He estimates “When they come here, they need a way that it takes an average of six hours per to search for jobs and housing,” she said. computer, and he can do just about “Some of them are doing online classes. anything except for replacing the The computers are very beneficial to them.” motherboard or electrical work.

DuSavage said the committee welcomes “It’s very rewarding to do this,” said donations of computers and laptops as long DuSavage, who is volunteering his time to as they’re capable of running Windows do the same kind of work for which he Vista or 7. Laptops are especially in demand charges private clients. I really enjoy it.” because many people want the portability.

Pinewood Manor is one of several “Our committee is very dedicated,” he organizations that have received KCS said. “Most of the members have been computers and more are being added to the involved for a long time.” list. Family Place, a shelter for women and For more information about Kitsap children, is among them. Residential Computing Seniors, go to manager Jane Elliott said the two www.ffogynews.org. computers they received are invaluable,

Passage of ‘zapper’ bill bad news for cash skimmers OLYMPIA — Passage of a bill targeting retailers who use illegal “zapper” software to erase cash sales from cash registers is bad news for tax cheats, the state Department of Revenue says.

The House unanimously passed Senate Bill 5715, which makes it a class C felony to commit tax fraud using automated sales suppression software, commonly known as “zappers.” The Senate earlier unanimously passed the bill, which now goes to Gov. Jay Inslee for his signature.

Under the legislation, persons convicted of selling, installing or designing zappers will be subject to an additional mandatory fine that is the greater of $10,000 or the amount of tax that the retailer didn’t pay.

It also gives the Department of Revenue the authority to revoke the business licenses of any business found using such devices and not reinstate a business unless it agrees to five years of electronic monitoring.

Zapper use has spread across the country and Canada. It alters cash transactions from electronic cash registers and point-of-sale systems so that the reduced sales can’t be tracked later using traditional audit methods. Businesses found to be using zapper software typically have been restaurants and other small

businesses that are predominantly paid in cash. They collect sales tax from customers but keep it rather than remitting it to the state as required by law.

Revenue Dept. director Carol K. Nelson said this legislation raises the stakes for businesses that keep sales tax they collect from customers and understate their gross income so they pay less business and occupation tax.

“Customers have the right to expect the sales tax they pay to be returned to them in the form of state and local services such as schools and law enforcement,” Nelson said.

Rep. Ed Orcutt (R-Kalama), who was prime sponsor of a House version of the zapper legislation, said the zappers simply have no legitimate use.

“They are used solely to defraud the state of Washington and the U.S. government, and this bill will hold them accountable and help deter this illegal activity,” Orcutt said. “In doing so, we’re making sure the businesses that are collecting sales tax from customers are remitting that to the state, and that in turn protects taxpayers.”

Thirteen other states have passed legislation targeted at sales suppression software.

Is it discrimination to make hiring decisions based on looks? of Title VII that can extend protections based on appearance. For instance, national origin discrimination includes discriminating against someone based on the physical characteristics of a national origin group. If a business is hiring beautiful women for a particular job, and decides that only Caucasian blondes fit the b ill, they may very well have a discrimination claim filed against them. The other problem can occur under the ADA. Obesity may very well fall under the ADA, depending on its cause.

Disfigurement and other disabilities that may cause an employee or job seeker to appear “unattractive” may also be covered under protections of the ADA. Assuming that discrimination by a business doesn’t violate the ADA or Title V II, can it discriminate based on appearance? Generally, yes. Let’s take a bikini barista stand as an example.

The business model is selling coffee by attracting customers who want to see skimpily clad pretty girls in bikinis. Therefore, it becomes a BFOQ (bona fide occupational qualification) that employees be pretty, in good physical condition and female. The company can discriminate based on sex, age and l ooks, but they must be able to prove that any members of the protected class they are discriminating against could not perform the job. Would their business be successful if the bikini was worn by a grandmother, a man, or an overweight unattractive female?

Probably not, and that’s how Hooters, bikini barista stands and NFL cheerleading squads get to discriminate based on looks.

It probably won’t surprise anyo ne to know that every day in the workplace, appearance-based decisions are being made. A poll by Newsweek magazine revealed that 24 percent of employed adults know someone who has gotten ahead at work because of their looks, and 30 percent know someone who has been

negatively impacted at work due to their looks. Being overweight appears to be an even worse disadvantage, with 78 percent of those polled saying that overweight people have a harder time getting ahead at work.

Newsweek asked hiring managers to rate the character attributes that were important in hiring decisions, and looks ranked third, after experience and confidence, but above education.

Sixty-one percent of the hiring managers polled said it’s to a woman’s advantage to wear clothing at work that showed off her figure (seriously, in this day and ag e?)

There is increasing focus on lookism, as evidenced by the book "Beauty Bias" by Deborah Rhode. Her premise is that lookism, whether its preference for attractive people or discrimination against unattractive, should be illegal discrimination. The Journal of Social Psychology’s study showed that attractive women were discriminated against when they applied for jobs that were considered male-dominated, such as tow-truck drivers and construction workers. On the other hand, positions that involved in-person client contact, such as sales, often involved discrimination against unattractive men and women.

We can probably all agree that we don’t need more laws on the books!

And if there was a law prohibiting discrimination based on looks, just how would that work? Who would define the parameters of what is goodloo king and what is unattractive? Can you imagine juries debating merits of discrimination cases and the discussions that would ensue about the plaintiff’s looks? Would poorperforming employees try to protect themselves by gaining weight or looking as homely as possible in order to fall into a protected class?

As long as there have been employees, hiring decisions have been influenced by looks. Many studies have been done on this, and we know that height, hair, weight, eye color and

many other factors have influenced hiring, promotions and compensation.

Smart businesses will always end up choosing the best candidate that will perform for them, and hopefully, as our world becomes more diverse, appearance will become less important.

Editor's Note: Julie Tappero is the President and owner of West Sound Workforce, a professional staffing and recruiting company based in Poulsbo and Gig Harbor. She can be reached at julie@westsoundworkforce.com. View her LinkedIn profile at www.linkedin.com/in/jtappero. The recommendations and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions, advice, or guaranteed outcomes. Consult with your legal counsel w hen addressing legal concerns related to human resource issues and legal contracts.

Business forum will focus on hiring practices The Kitsap Business Forum will present “Build a Better Team — Hiring Best Practices” with guest Wayne Sargent of Express Employment Professionals on May 14.

Sargent will provide information on how bad hires can impact your business, and he’ll discuss some easy-to-implement strategies on how to eliminate them.

The Kitsap Business Forum is sponsored by the Silverdale Chamber of Commerce, Dave Mitchell, and the Bremerton Chamber of Commerce.

Panera Bread will provide coffee and bagels at the event.

The Kitsap Humane Society will be accepting donations from attendees as well.

The event will be fro 7:30-9 a.m.at the Morgan Stanley office in Silverdale at 2011 Myhre Road, Suite 301.

Anyone interested in attending should RSVP to 360-692-6800, or go online to BuildABetterTeam.eventbrite.com.

West Sound Workforce

15 Years in Business!

Celebrating over 5000 successful job placements on the Kitsap Peninsula!

561320 – Temporary Help Services 561312 – Executive Search Services 561311 – Employment Agencies

Kitsap County

(360) 394-1882

Gig Harbor Office

(253) 853-3633

www.westsoundworkforce.com

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 27

By Julie Tappero A friend asked me the other day, “How is it that Hooters can discriminate based on looks?” This question started an entire conversation about businesses, such as bikini barista stands, and professions, such as NFL cheerleaders, that obviously discriminate based on looks, and why and when that is permitted under the law. Do good-looking people have an advantage in the job market? Do they ever have a disadvantage? Does it violate Title VII protections to discriminate against someone based on their looks?

There are some cases that are frequently cited in discussions on this subject. Debrahlee Lorenzana sued Citibank alleging they fired her from her job because the clothes she wore were distracting to her male coworkers and she was “too hot.” In the case of Annette McConnell, who weighed 300 pounds, sh e alleges she was terminated because her supervisor said “people don’t like buying from fat people.” Hooters was sued by Cassandra Smith, who alleged that she was told to join a gym and “lose weight and improve her looks.” These are just a handful of the many cases that can be cited on what is being called lookism discrimination.

Is it illegal to discriminate against someone based on their looks? The answer i s not that simple or clearcut.

Discrimination and protected classes are defined in Title VII of the Civil Rights Act and also in Washington state law. Neither of them specifically provides a protection based on looks.

In fact, there are only a very few states or municipalities that have what some have deemed an “ugly ordinance.”

Santa Cruz, San Francisco, Michigan and the District of Columbia all prohibit di scrimination based on appearance or height and weight.

There are some aspects, however,

Gig Harbor’s YMCA plans expansion

By Rodika Tollefson Gig Harbor’s Y, which was renamed in March the Tom Taylor Family YMCA, will be adding 10,500 square feet to its five-year facility.

The expansion project is focused on children and teen programs but will also include multipurpose rooms available to all ages.

The two-story expansion will house a slightly larger teen center, a half-court youth gym, an adventure zone for families and two multipurpose rooms. The current nursery and child watch areas will then be expanded through a remodel to incorporate the space now used by the teen center.

Of the Y’s 19,000 members, 5,200 are youth. The expanded space will allow for additional programming including classes, leadership programs and various activities, according to Andrea Millikan, Tom Taylor Family YMCA executive director.

“We have an active Y and we found that the additional space could provide more specific

programming for youth, especially activity and nutrition education programs,” she said.

“We’re not able to do that (now) to the level it could be.”

The expansion of the facility, which is currently about 77,000 square feet, is estimated to cost $3 million and the Y hopes to raise half of that amount through a capital campaign. Tom and his wife, Jackie, gave the campaign a boost with a $500,000 contribution. The couple, who are 45-year Gig Harbor residents, have been Y supporters for many years and instrumental in the first capital campaign, which raised money for the Gig Harbor Y construction. Three generations of the Taylor family are members of the branch.

“We were very excited about getting the Y open and are overwhelmed with the tremendous acceptance (by the community),” Tom Taylor said. “We’re busting at the seams and we need an expanded area.”

Taylor has been a YMCA member for 40

years and recalls that membership was around 550 when he joined a Y located in an old Tacoma building. He later became involved with efforts to move that Y (now called Morgan Family YMCA) to a new facility, on Morgan Street, and was a major promoter of the idea of a Gig Harbor Y. “I supported it and thought it would take five years (to do it). It took 20 years,” he said.

“It’s something that will be there for generations to come.”

In addition to chairing the original capital campaign, the couple made financial contributions to the project. Taylor also served as board chair several times and continues to be involved with the YMCA of Pierce and Kitsap Counties. The Gig Harbor Y was renamed in Taylor’s honor in March to recognize his and his family’s longtime contributions.

“I support the Y because it is open to all. No one is turned away,” Taylor said, noting the

scholarship program for families who can’t afford to pay. “The Y is so much more than a workout facility.”

The organization is working through the permitting process with the city of Gig Harbor. Millikan said the hope is to begin construction in summer and complete it within six months. Once the addition is built, remodeling of the nursery and child watch area will begin.

“Tom and Jackie’s most recent capital gift for the expansion project at the Gig Harbor Y serves as a catalyst for others to invest in this high-impact campaign,” she said.

Taylor said as the YMCA of Pierce and Kitsap Counties continues to grow, his hope is to see a facility in Port Orchard next. The idea is in the organization’s long-range plan, but it would depend on the support of the local community.

“Each community has to rally around this type of facility for it to happen,” he said.

28 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

A roundup of local golf courses and country clubs Alderbrook Golf & Yacht Club 300 Country Club Drive, Union (360) 898-2560 Course Pro: Justin Gravatt Alderbrook is an 18-hole, par 72 course.

It is 6,280 yards long and is assigned a course/slope rating of 70.8/121. Weekday green fees are $40 and $18 for Juniors. The weekend (Friday through Sunday) and holiday fee is $55 except for Juniors who pay $18. A $25 twilight rate is in effect after 3 p.m. on Monday through Thursday; and $35 on Friday through Sunday.

Club rentals are $15 for 18 holes or $10 for nine holes. Hand carts cost $5 for 18 holes, $3 for 9 and power carts are $14 per rider.

Alderbrook offers a driving range, putting green and chipping area. If you are new to the sport or want to buff up your short-iron game, a 45-minute individual lesson costs $40 or four for $120. Group instructions available for 3 – 6 people for one hour at $20 per person. Alderbrook offers a snack bar and restaurant, Alderbrook Golf and Yacht Club Restaurant; open Monday through Friday from 11 a.m. to 7 p.m. Saturday 11 a.m. to 9 p.m. and Sunday 8 a.m. to 9 p. m.

Alderbrook is available for tournaments. Call for more information.

Canterwood Golf & Country Club 12606 54th Avenue NW, Gig Harbor (253) 851-1845 Head Golf Pro: Dale Davis Canterwood Golf & Country Club is a private 18-hole facility. Course par is 72, length is 7,185 and the course is rated 75.9/146. Call Canterwood for membership details.

Canterwood offers a driving range, putting green, chipping area and has been

rated by Golf Digest to be one of the best golf courses in Washington State.

Gig Harbor Golf and Country Club 6909 Artondale Dr NW, Gig Harbor (253) 851-2428 Course Pro: Shane Henderson Gig Harbor Golf and Country Club is a private nine-hole facility. It is 5,420 yards long and the course par is 70 and is rated 66.6/123 for men and 68.3/120 for women.

The course is scenic, hilly and has incredible views of Mt. Rainier. Memberships are available for $192 per month for 9 months and then 3 months are free; call Gig Harbor Golf and Country Club for details.

They offer a driving range, putting green and a chipping area. A new renovated event space is now available to members and non-members.

Gold Mountain Golf Complex 7263 West Belfair Valley Road www.goldmt.com • (360) 415-5432 General Manager: Daryl Matheny Head Pro: Mark Knowles Gold Mountain offers two 18-hole courses, Olympic and Cascade. Par for the Olympic course is 72. The 7,035-yard course is rated 74.1/135, 71.3/129, 69.1/124 for men and 74.7/132, 67.2/120 and 70.2/122 for women. Olympics’ weekday green fees are $45 and $22 for Juniors. Olympics’ Friday fees are $50, weekend and holiday fees are $65 for everyone. Twilight fees are $25 for weekday and $27 for weekend.

Par for the Cascade course is 71.

Cascade is 6,707 yards long and is rated 72.2/125, 70.5/122, 69.0/118 for men and 75.0/127, 67.3/114 and 70.2/119 for women. Cascade’s weekday fees are $33 and $12 for Juniors, Friday - $36 for everyone.

On weekends and holidays Cascade costs $40 and twilight rates are $23 during weekdays and $26 for weekends.

Clubs rent for $25. Hand carts rent for $4 and power carts for $16 per person. The facility offers a putting green, a chipping area and a partially covered driving range. Instruction is available, call for details. The Restaurant at Gold Mountain, 415-6895, is open to the public Wednesday through Friday for dinner and every day for breakfast and lunch.

Gold Mountain has been chosen to host the 2011 U.S. Junior Amateur Tournament and Golf Digest has rated the Olympic course to be the second best value in the United States.

Horseshoe Lake Golf Course 1250 SW Club House Ct, Port Orchard (253) 857-3326 Horseshoe Lake Golf Course is an 18-hole, par 71 course. Its length is 5,607 yards and it is rated 69.1/116. Peek weekday green fees are $36, which includes cart, and $12 for Juniors.

Twilight rates after 1 p.m. during the weekday is $29 and 16 for Juniors and includes a cart and all you can play. The weekend and holiday rate before 8 a.m. is $39; from 8 a.m. to 1 p.m. the rate is $39, twilight weekend after 1 p.m. are $42 for everyone which includes a cart and all you can play. Club rentals are $20. Hand carts are free.

Horseshoe Lake offers a driving range, putting green and chipping area.

Kitsap Golf & Country Club 3885 NW Golf Club Hill Road, Bremerton (360) 377-0166 Course Pro: Al Patterson Kitsap Golf & Country Club is a private 18hole, par 71 course. It is 6,329 yards long and has a rating of 70.7/125, 69.9/123 and 71.7/123. Guests pay $45 on weekdays and $55

on weekends and holidays. Club rentals are not available. Handcarts are complimentary and power carts cost $45 for two persons.

A driving range, putting green and chipping area are available. A 30-minute lesson costs $50.

For members and their guests, the restaurant offers lunch daily, dinner on Wednesday and Friday, and breakfast on weekends.

Lakeland Village Golf Course Old Ranch Road, Allyn (360) 275-6100 Course Pro: Randy Jensen Lakeland offers three 9-hole courses, Generation I, II and III. Generation I is a par 35, 2,584-yard course with a rating of 32.5/110. Generation II is a par 36, 3,140yard course with a rating of 35.0/126.

Generation III is a par 36, 3,331-yard course with a rating of 35.1/126.

Green fees are as follows: Friday $32, Weekend - $36 to play any combination of two 9-hole courses; Monday and Thursday - $28 for any combination of two 9-hole courses. Twilight rates of $22 are available everyday. Senior rates on Monday and Thursday are $22. On Tuesdays and Wednesdays the fee is $22 after 12 p.m.

Lakeland Village also offers memberships.

The annual fee for a single member is $1,700, and $2,700 for a family. Clubs rent for $10. Handcart rentals are $5 for 18 holes and $3 for nine holes, and power carts cost $32 for 18 holes and $20 for nine holes.

Lakeland Village has two driving ranges, a putting green and a chipping area. 30-minute individual lessons are available, call for rates.

Lakeland Village offers snack bar fare.

Golf roundup, page 30

White Horse now offers community much more than golf New clubhouse opens at Suquamish-owned development in North Kitsap

White Horse general manager David Raper on the patio outside the new clubhouse.

Courtesy photos

The new clubhouse (top photo) at White Horse Golf Club overlooks the 18th green. The lobby that leads into the Cedar Ridge Grill dining area (photo above) has a huge stone fireplace.

Clearwater Casino Resort, the tribal-owned hotel and casino complex that’s about 10 miles from White Horse. Clearwater offers stay-and-play packages that include golfing.

The resort is embarking on a five-year expansion that will greatly increase its convention space and add a hotel wing, and the connection with White Horse will be part of Clearwater’s regional marketing.

“At some point I would envision having shuttle service to the casino,” Raper said.

The golf course itself, which opened in 2007 and which Port Madison Enterprises bought after the original developer filed for Chapter 11 bankruptcy, underwent an extensive modification that was completed last year before construction of the clubhouse began.

“It got a reputation for being too difficult,” Raper said, and course maintenance suffered when the development — originally planned as a residential community around the golf course — fell on hard times.

The renovation was overseen by noted golf course designer John Harbottle, and included removing 65 bunkers, taking out some trees, and softening the greens to make the well-regarded course more

inviting. But White Horse still provides a challenging round for golfers, who can

choose from five sets of tees to get a course distance from 5,022 to 7,093 yards.

“The feedback we’ve received from golfers is they’re very pleased with it compared to before,” Raper said.

With the golfing side of the operation stabilized, he said the focus is on developing the catering and restaurant operations in the new clubhouse, which was designed by architects D.B. Bryant & Associates of Bainbridge Island and built by Korsmo Construction of Tacoma.

The Cedar Ridge Grill offers breakfast, lunch and dinner in a casual atmosphere, and diners will find a menu that’s “not typical golf course food,” Raper said, noting special Northwest-oriented dishes such as crab macaroni-and-cheese.

Overall, the enhancements at White Horse Golf Club make it a place that golfers and non-golfers both will enjoy, he said.

“It’s still a public facility, but it has a little more upscale feel to it,” he said. “We want it to be tied into the community, so people see it as so much more than a golf course.”

Casual Waterfront Dining in Downtown Port Orchard Full Service Bar • Happy Hour Everyday • 3pm – 5pm

For fabulous food in a relaxed setting and a beautiful view of Sinclair Inlet, Amy’s On The Bay is a great choice to treat yourself to a delightful dining experience with so many wonderful dishes to try.

Gluten-free items are available.

Voted “Best Steak” and “Best Seafood” by the people of SK 5 years in a row!

Amy’s On The Bay Restaurant & Bar 100 Harrison Avenue, Port Orchard 360-876-1445 www.amysonthebay.com

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 29

By Tim Kelly, Editor Go there to play golf or to get married.

Those are just two of many possibilities for an outing at White Horse Golf Club, where a newly opened clubhouse and restaurant offers amenities to match the quality of the golf course.

The new White Horse facilities are a far cry from when a temporary pro shop was in a single-wide trailer by a dusty, unpaved parking area.

In the lobby inside the main entry to the clubhouse, visitors headed to the pro shop on one side of the building or the Cedar Ridge Grill in the middle pass by the huge gas fireplace with a towering stone mantel that rises to wood beams on the ceiling 25 feet above.

Behind the restaurant is a spacious patio overlooking the 18th hole and a small lake.

There will be three gas firepits installed on the patio, taking the chill off for people who like to sit outdoors even on cooler days.

During pleasant summer days, tall sliding glass doors can be opened to create an open-air atmosphere between the restaurant and patio.

“During the summer, we expect the patio will be full of people,” said David Raper, the golf club’s general manager. He was brought in by Touchstone Golf — the national management company that operates White Horse for Port Madison Enterprises, the Suquamish Tribe’s business agency — a couple months before the new clubhouse opened in March.

Raper, who oversaw the opening of Arizona State University’s golf club and was manager of a course in Las Vegas before coming to Kitsap County, said the goal is to establish White Horse as a community facility in North Kitsap as well as a Pacific Northwest golfing destination.

“We want to not only draw people from the Seattle area, but to be a partner in the community,” he said.

On the opposite side of the clubhouse from the pro shop is a spacious banquet room that can accommodate up to 225 people for wedding receptions, conferences or other meetings. The hall is fully equipped with A/V connections and a 70inch flat-screen monitor, and like the adjacent restaurant it has glass doors that open on to the patio.

“We’re putting in an outdoor ceremony area for weddings, it will be a grassy area with a pergola, with the golf course for a backdrop,” Raper said.

“There’s not many places around where you have this kind of setting,” he added.

The club and the golf course that was designed on 456 acres of sloping woodlands is a bit off the beaten path, tucked just south of Kingston. But White Horse offers shuttle service for visiting golfers from the Seattle side of Puget Sound who take the ferry from Edmonds to Kingston.

The golf course is also promoted as an amenity for guests at Suquamish

GOLF ROUNDUP

30 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

from page 28 Madrona Links 3604 22nd Avenue NW, Gig Harbor (253) 851-5193 Head Pro: Pat Bean Madrona Links offers 18 holes with a par of 71. Course length is 5,602 and rated 66.8/115, 64.7/108 and 62.9/105. Weekday rates are $27 for 18 holes, $20 for nine holes. Weekend rates $30 for 18 holes and $22 for nine holes.

Seniors pay $23 for 18 holes and $17 for nine holes Monday through Friday. The weekend rates apply on Friday, Saturday and Sunday.

Juniors pay $18 for 18 holes and $13 for nine and twilight rates are $22, super twilight are $17 all week. Clubs rent for $15, handcarts for $5.00 and power carts for $14 per person. *Rates may change for summer.

Madrona offers a driving range, putting green and chipping area. Madrona Links Restaurant and Lounge is open for breakfast, lunch and dinner. From 6 a.m. to 8 p.m.

McCormic k Woods 5155 McCormick Woods Dr. SW, Port Orchard (360) 895-0130 www.mccormickwoods.com Course Pro: Jeff Mehlert McCormick Woods is an 18-hole, par 72 course. The course is 7,040 yards long and is rated 74.3/134, 73.2/131, 70.7/124 for the

men and for the ladies 74.0/134 and 71.6/127.

Weekday fees are $45, 10% off for Seniors and 40% off Juniors. Basic clubs rent for $25, premium clubs for $40. Three wheel carts rent for $8 and power carts for $15 per rider.

McCormick offers a driving range, putting green and chipping area. A driving range token is $5 for 35 balls. A 50-minute individual lesson costs $70 for adults and $60 for Juniors.

The Club House at McCormick Woods is open weekdays from 11 a.m. to 8:30 p.m. and serves lunch and dinner. Weekend hours are 11:00 a.m. to 9:30 p.m. A non-buffet Sunday breakfast from 9 a.m. to 1 p.m. is available.

The Club House can be reached at 895-0142.

Meadowmeer Golf and Country Club 8530 Renny Lane NE, Bainbridge Island (206) 842-2218 Course Pro: Ted Wurtz Meadowmeer is a nine-hole course. Par is 71, course length is 5,596 yards, and it is rated 67.7/117. Weekday rates are $26 for 18 holes or $21 for 9. Twilight weekday rates are $15, twilight weekend rates are $20, and both include unlimited golf for everyone.

Seniors, Juniors and Military pay $22 for 18 holes or $17 for nine. Weekend/holiday rates apply to everyone: $31 for 18 holes or $25 for nine holes. Members only till noon on weekends and holidays.

Clubs rentals are $17 for 18 holes or $13

for nine holes. Hand carts cost $5.50 for 18 holes or $3.50 for nine, and power carts cost $28 for 18 holes or $18 for nine. Meadowmeer offers a putting green and a chipping area but no driving range. A 30-minute individual lesson costs $40. Meadowmeer has a snack bar with grill and offers beer and wine.

Northwest Golf Range & Scott Alexander Pro Shop 368 NE Waaga Way, Bremerton (360) 692-6828 Teaching Professional: Chris Keough Northwest Golf is a driving range and an 18-hole putting course. A jumbo bucket sells for $10; large bucket sells for $8; a medium for $7 and a small for $5. For patrons 15-yearsold and younger the cost is $5 per medium bucket. Irons are available at no cost; woods rent for $2 each with a $2 per club deposit.

General green fees are $6, patrons 12 years and younger pay $4, and a group of 15 or more pay $4 for adults and $3 for children under 12. A 60-minute individual lesson costs $60. Call for more lesson rate information and specials. Northwest Golf has batting cages for additional recreational enjoyment.

Rolling Hills Golf Course 2485 NE McWilliams Road, Bremerton (360) 479-1212 Course Pro: Tedd Hudanich Assistant Pro: Charles Welter Rolling Hills offers 18-hole of play.

Course par is 70, length is 5,936 yards, and its rating for men is 68.7/120 and for women, 71.0/120. Weekday fees are $29.50, and weekends are $32.50. Seniors, Juniors and Military pay $21. Clubs rent for $12.

Hand carts rent for $4 and power carts for $30. Twilight rates are $21.50 for weekdays, $23.50 for weekends and power carts are $10 per person. Discount golf packages are available. Call for more information.

Rolling Hills offers a driving range, putting green and chipping area. A 60-minute individual lesson at Rolling Hills costs $40 and a 30-minute less costs $20. A group of four to six can receive six lessons for $80 - $90 per person. Putter’s Restaurant and Lounge (377-7077) serves breakfast, lunch and dinner and also offers banquet services.

Trophy Lake Golf & Casting 3900 SW Lake Flora Road, Port Orchard (360) 874-8337 General Manager: Lance Fong Course Pro: John Hildebreand Trophy Lake offers an 18-hole course.

Course par is 72, length is 6,162 yards, and its rating is 70.0/128. Green fees change incrementally with the seasons. Green fees for this year’s summer peak season, beginning June 1, will range from $32 to $85 depending on time and day of week. Power carts are available. Call for more rate information. Clubs rent for $50. The facility offers a driving range, two putting greens and a chipping area. Instruction is available.

The Dry Fly Café offers breakfast and lunch Monday through Saturday from 7 to 11 a.m.; Sunday from 7 a.m. until 1 p.m. and lunch Monday through Sunday from 11 a.m. to 6 p.m.

Village Greens Golf Course 2298 Fircrest Drive SE, Port Orchard (360) 871-1222 Supervisor: Billie Schmidt Village Greens offers 18 holes of play.

Par is 58, course length is 3,255 yards, and its rating is 57.3/83. Green fees are the same everyday: $16.50 for adults. Seniors and Military can play all day for $13.20; Juniors can play all day for $11. Hand carts rent for $3.25. They offer a covered driving range, putting green and chipping area.

Village Greens offers snack machines.

White Horse Golf Club 22795 Three Lions Pl NE, Kingston (360) 297-4468 Course Pro: Bruce Christy Assistant Pro: Brian Cresto White Horse Golf Club offers 18 holes with a par of 72, course length is 7,093 yards, and is rated 74.7/141.

Weekday, Monday through Thursday rates are $35 for 18 holes and $22 for 9. The Junior rate is $10 after 12 p.m. seven days a week. Weekend rates, Friday through Sunday and holidays, is $49 for 18 holes and $25 for 9. Twilight rates after 3:00 p.m. are $22 for weekday and $25 for weekends.

Active Duty Military rates are $29 for weekday and $39 for weekends. White Horse also offers a Replay rate of $20 for weekday and $25 for weekends.

Power golf carts are available at $15 per person for 18 holes and $9 per person for 9 holes. Push carts are $6 for 18 holes and $4 for 9 holes.

White Horse also offers a grass driving range, two putting greens, a chipping area with sand traps and bunkers. A Players Card can be purchased which offers the golfer discounts and lessons are available, call for more information.

Wing Point Golf & Country Club 811 Cherry NW, Bainbridge Island (206) 842-7933 General Manager: Bob Hollister Course Pro: Jeff D’Amico Assistant Pros: Neal White & Cory Nergaard Wing Point Golf & Country Club is a private 18-hole facility. Course par is 71, length is 6,053 and the course is rated 69.7/128. For 18 holes, guests of members pay $60 on weekdays and $60 on weekends/holidays; $25 for nine holes during the week, and $35 on weekends/holidays.

Memberships are available, call Wing Point for details. Clubs rent for $40. Handcarts are free and power carts go for $30 for 18 holes or $15 for 9. Wing Point offers a driving range, a putting green, a chipping area, pool, and tennis courts. Instruction is available, contact the pro shop for details. The restaurant is available to members and their guests.

Several other courses are within a short driving distance of Kitsap County and Gig Harbor. These include Port Ludlow and Chevy Chase Golf and Country Club in Jefferson County and Bayshore, near Shelton, in Mason County. You are invited to call them directly for information on greens fees and tee times.

Manette bike shop brings small-town service to Kitsap

By Rodika Tollefson Aaron Duffin could talk about bicycles all day long. The owner of 16 bikes and a rider his “whole life,” Duffin is passionate about bicycling — and it shows.

Nearly a year ago, Duffin kicked his passion up a notch. After working in the industry for years, he opened his own fullservice shop, Bicycle-Works, in Manette.

“Something I always wanted to do is have my own business,” he said.

The cozy shop that is hardly larger than 500-600 square feet accommodates both Duffin’s workshop (including a couple dozen bikes in different stages of repair or maintenance) and a small inventory of basic parts. His $50 tune-ups are especially popular, and although demand tapers off November through March, there are still enough diehards who ride year-round and keep him busy through the winter.

Duffin can special order just about anything, including about half a dozen brands of midrange and high-end bicycles.

He can even custom-build bikes, offering a service that is not widely available in Kitsap.

“It could take as little as four days but some people do it a little at a time. It can be as fast as the customer wants,” he said.

Bicycle-Works (bicycle-works.com) opened last July and immediately became busy. Customers range from year-round commuters to the Bremerton Police Department.

Aaron Duffin owns Bicycle-Works in Bremerton.

“This place has grown faster than I was expecting,” Duffin said. “I wasn’t prepared for how busy I was going to get. I’m amazed at how supportive the community has been.”

He’s already had offers for larger space but so far Duffin doesn’t want to move.

What attracted him to Manette in the first place was that feel of a small town.

Although his customers come from as far as

Seattle, he likes the idea of a small, neighborhood shop.

“I really like the small-town atmosphere.

That’s what I was looking for,” he said.

It’s a tough industry, he notes, and many shops close within their first three to five years. But he’s not afraid of going against the grain.

“I’m trying to go back to the small-town American shop,” he said. “I find that a lot of bike shops are getting too corporate and forgetting customer service.”

He’s found the local community is especially supportive of small businesses like his.

“The community has been really great,” he said. “They really want to help out a small business.”

Duffin got his first job at a bike shop in Victoria, B.C., when he was a teen. “I hung out at the shop and eventually got a parttime job,” he said.

He took a short break from the industry to become a welder but “missed being around the bicycle culture.” Those welding skills will come in handy when he eventually pursues his goal of building hand-made frames.

To prepare for his business adventure, Duffin not only worked in different facets of bicycle shops, including sales and management, he also observed other business owners so he could learn from their mistakes while applying the positive

things they did. Still, as any small business owner, he was overwhelmed when he finally took the plunge.

“I think I’ll always be in the learning curve,” he said. Still, as overwhelmed as he was when the store first opened, Duffin said he had a smile on his face every day — it seems he has found his niche.

For him, Bicycle-Works is not only about providing service to customers. Duffin is also passionate about seeing the bicycling community grow. As one example, BicycleWorks has a riding event every Friday starting at 6 p.m. that attracts anywhere from five to 40 riders who cruise around downtown Bremerton and other areas.

“It gets people who are not used to riding around town to ride with a group of people.

The main goal is to get people more comfortable riding their bikes around,” he said.

Duffin, who commutes on his bike everywhere and is also a racer, has been volunteering his time to build mountain bike trails as well. Currently he’s working with another trail designer to add trails at the 360 Park on the Key Peninsula, owned

by KeyPen Parks. Recently, the park hosted a major race and Duffin hopes to see a lot more of those types of events on the Kitsap Peninsula. His goal is to work with Kitsaparea park districts as well to create other trails that are sustainable and require low maintenance.

Bike Shop, page 32

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 31

Kitsap soccer scene heats up with WestSound FC

32 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

Whether that happens soon or not, Silverdale-based WestSound FC wants to make sure local kids get the opportunity to get as far in soccer as they want. The nonprofit premier club, which serves Kitsap, Jefferson and Island counties, has been adding new programs to make sure the sport is prominent at least on the local map.

“The peninsula has great talent and our job is to keep those kids here instead of going to Seattle, and provide them with a high level of play and experience,” said Ben Pecora, the club’s administrative director.

“A lot of kids want to progress and play as high a level as possible so we provide that. I think we’re getting to a point now to be able to facilitate any aspiration a player has.”

The club has about 350 athletes ages 8 to 18 on 20 teams, numbers that could change after the May tryouts. Although Silverdale is the home base, games and practices are held at multiple locations.

Pecora, who sometimes coaches and has two children in the club, is especially excited about two new events coming to Kitsap this summer. One is a championship in June for youth ages 7-14 (and some amateur adult events), and another is a training camp coached by elite Italian players.

Fabio Cannavaro, who was captain of the Italian team that won the World Cup in 2006, is among four Italian players coaching the Champions International Camp in August — and Bremerton is one of only five stops and the only small city hosting one; the only other West Coast program is in Los Angeles.

“The Italians coming is unprecedented, and for us to be included with those big cities,” Pecora said.

The June tournament, the WestSound

WestSound FC has about 350 youth soccer players ages 8 to 18 on the club’s 20 teams. The club will host the WestSound Summer Classic tournament at the Kitsap County Fairgrounds in June, and the Champions International Camp in August with four players from the Italian national team that won the 2006 World Cup. George Vukic, left, is the club’s director of coaching.

Summer Classic, is also a unique event.

Teams of all skill levels are expected to come from around the state for the tournament, hosted at Kitsap County Fairgrounds. Adult games will be included to give parents as well as local adult players a chance to play.

“We’re serving the local community, bolstering adult play in the county and bringing economic development,” Pecora said, adding that the Summer Classic is expected to become an annual event.

Pendergast Park Makeover Also in the works is a public-private partnership project with the city of Bremerton to improve Pendergast Regional Park. Under an agreement that was due to be presented to the City Council in late April, WestSound FC would lease the two

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By Rodika Tollefson Relegated mostly to the fields of Europe and South America in the past, soccer has been catching up in popularity in the United States in the past decade or so.

While the sport is still outshadowed by football, basketball and baseball, it is gaining speed — and social scientist Rich Luker, who studies sports trends, has even declared last fall that it’s only a matter of time before soccer is at the top in popularity.

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soccer fields while also keeping them available for public use, including for teams from other appropriate sports. The club will cover the two soccer fields with synthetic turf made of the latest technology, using rubber infill from ground tires.

Bremerton Mayor Patty Lent said the turf would cost $385,000-$450,000 per field, funds that the city doesn’t have, especially as recreational grants continue to shrink. She said the central location of the park could attract users from as far as Gig Harbor and North Kitsap.

“Public-private partnerships have become very popular,” Lent said. “If city government can’t afford the needs of the fields, this is a good way to do it.”

As part of the lease agreement, WestSound will charge fees that are comparable to existing ones and will also manage scheduling, which will save city money in staffing.

A similar agreement currently exists between the city and the YMCA of Pierce and Kitsap Counties for the Glenn Jarstad Aquatic Center, adjacent to Bremerton Family YMCA. The pool is owned by the city of Bremerton and operated by the Y, which expanded programming and hours as well as made physical improvements since taking over in 2010.

WestSound FC, page 33

BIKE SHOP

from page 31 He says interest in recreational bicycling has exploded in the past 20 years and has especially grown in the past five years or so.

“I think it’s become a movement because the technology has changed so much and people have changed,” he said. “I want to see more people doing it. It’s definitely happening.”

Water Trail Festival starts at Olympic Outdoor Center’s new Silverdale location The Olympic Outdoor Center will host the Kitsap Peninsula Water Trail Festival in Silverdale and open their fourth kayak and standup paddleboard location on June 1.

The festival is a celebration of the Kitsap Peninsula Water Trail as well as the kickoff for the new rental location. The Water Trail includes nearly 300 miles of shoreline and about 80 public access points around the Kitsap Peninsula, including five points in Silverdale’s Dyes Inlet where the festival

will be held.

The festival and rental location will be next to Silverdale Waterfront Park. The event was created through a partnership with the Kitsap Peninsula Visitor & Convention Bureau, the Silverdale Port and the Olympic Outdoor Center. Part of the proceeds from the festival will go to the North Kitsap Trails Association as thanks for helping to create the Water Trail.

The activities that will be part of the

WESTSOUND FC

numerous players have gone on to play at the collegiate level.

Although team enrollment is very competitive, WestSound is reaching out to youth beyond its elite athletes. In addition to the summer camp and Summer Classic, which are open to all levels, Free Fridays are held in spring and summer. The popular training and game sessions are run by WestSound coaches and staff on a volunteer basis.

One of Pecora’s goals is to recruit sponsors so scholarships can be offered to those athletes who cannot afford the fees.

He also plans events where people could donate gear for those kids.

“I believe in this country it’s too expensive to play sports at all levels and it shouldn’t be an elite sport,” he said.

“Hopefully my legacy is to make this affordable for everybody and that’s what I’m working toward every day.”

from page 32 “We get free swimming for our citizens at least four times a year,” Lent said. “It’s been well-received.”

Lent said she hoped the council approves the agreement in May, after which time the turf project could begin. “The council has to make sure there’s no gifting of public property,” she said. “We want to make sure we’re transparent.”

Inspiring young athletes WestSound FC is sanctioned by the U.S. Soccer Federation and is part of the Regional Club League, the highest level of youth soccer in the state. The league includes the top 20 Washington premier youth clubs (WestSound and Gig Harbor’s Harbor FC are the only members on the Kitsap/Olympic Peninsulas). The club’s teams have won state championships and

festival are: An optional 6-mile paddle from Evergreen Park in Bremerton to the festival location, with stops along the way at Water Trail locations. The paddle is a poker run — a card will be given at each stop and the winning hand will win a prize at the end. All ages, experience levels and human-powered watercraft are welcome. Kayaks and standup paddleboards can be rented through the Olympic Outdoor Center. A shuttle from Silverdale back to Evergreen park will be provided.

Demos of kayaks, standup paddleboards, paddles and other paddling equipment. People can try out different types of equipment and ask questions of paddling experts.

Games for kids, both on water and on land. No paddling experience is needed.

Beginning standup paddleboard lesson at 1 p.m., and beginning kayak lesson at 3 p.m.

Sea kayak and standup paddleboard rentals will be available at the Silverdale waterfront location starting June 2, though if it’s raining or windy it’s best to call ahead to make sure they’re open. There will also be ice cream, soda, energy bars and other items for sale at the rental office. No reservations are needed for rentals unless there is a group of eight or more people.

Group classes will also be available by request.

Registration for the festival is available

Photo by Spring Courtright.

Paddlers in double kayaks on Dyes Inlet near Silverdale. online at OlympicOutdoorCenter.com.

For questions about the festival or group rentals, contact the center at programs@kayakproshop.com or (360) 297-4659.

The Olympic Outdoor Center has been in business for 26 years, offering kayak and standup paddleboard events, classes, summer camps, tours and rentals out of Poulsbo, Port Gamble and Bainbridge Island. The center also operates KayakProShop.com, an online store for kayak accessories.

May 2013 Kitsap Peninsula Business Journal • KPBJ.com 33

34 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

2014 Mazda CX-5: A very efficient SUV

By Bruce Caldwell The Mazda CX-5 was new for the model year 2013, so the early arriving 2014 CX-5 is more of an engine and technology update than a whole new vehicle. What Mazda has done is take an already excellent crossover SUV and refine it with a more powerful 2.5liter four-cylinder engine.

We were very impressed during our time in a 2013 CX-5 and the improved 2014 model only boosted those already positive reactions.

Walkaround: The CX-5 is a handsome vehicle. It’s a nice blend of SUV ruggedness and passenger car sleekness. It has some chiseled lines, but not to the extent that was popular a few years ago. As a crossover the CX-5 is a blend of both function and form.

Our tester was painted Sky Blue Mica (a bright candy blue) and although color doesn’t impact performance, it does affect how we feel about a vehicle. We applaud Mazda for offering colors beyond the all too common earth tones found on many SUVs. The CX-5 rolled on handsome 19-inch alloy wheels and all-season tires, both of which contributed to a more urban than rural look. Given how seldom most SUV owners leave paved roads these styling choices were a wise decision.

Interior: Mazda has done an excellent packaging job with the CX-5. The interior is spacious, even though the exterior size is very city-friendly. Tall people easily fit in the CX-5 and the high roofline means they can keep their hats on. Front legroom is very good and rear legroom is sufficient (depending on front seat positioning).

A comfortable, slightly contoured steering wheel was outfitted with intuitive auxiliary controls that included audio, cruise, and Bluetooth functions. The front seats had 3-temp heat and the driver’s seat had a power lumbar feature. The power sunroof was a little small, but it worked well.

Interior materials, design, and fit/finish were all very good with the exception of the headliner, which we rated as sub-par. Cargo space and flexibility are excellent. Small item storage areas are below average. The cargo floor is flat, but the split folding rear seats have a slight upward slant. We hauled some pretty impressive loads with all the seats retracted.

Under The Hood: The big news for the improved 2014 model CX-5 is the larger 2.5-liter inline four-cylinder engine. The extra half-liter displacement (over the previous 2.0-liter engine) is better suited for this crossover SUV. The engine is rated at 184-horsepower with 185 lb-ft of torque.

The engine is mated to an excellent 6-speed automatic transmission with all-wheeldrive.

The new 2.5-L engine is only available with the 6-speed automatic transmission and only on the Touring and Grand Touring models. The 2.0-L engine can be had with a 6-speed manual transmission.

We previously tested a CX-5 with the 2.0L engine and manual transmission. We were very impressed with fuel economy numbers over 31mpg and the transmission was smooth and easy to use.

The slight fuel economy drop of the a u t o m a t i c transmission and larger engine is easily offset by the added convenience. This region is too hilly and congested to fully enjoy a manual transmission, especially in an active use vehicle like an SUV. The CX-5 is EPA-rated at 24mpg city and 30-mpg highway. We averaged 29.3-mpg on an extended highway trip and 27.7-mpg in mixed city/highway driving. That’s very impressive fuel economy for an AWD SUV with ample passenger and cargo room.

In addition to the full-time AWD, the CX-5 features excellent 4-wheel disc brakes, independent front and rear suspension, dynamic stability control, traction control, hill launch assist (not as big of a deal with an automatic transmission as with a manual trans, but still nice to have), and Mazda’s Skyactiv technology, which seamlessly integrates and maximizes all running gear functions.

Our test vehicle had the optional Grand Touring Tech Package, which included the new Smart City Brake Support. It uses a laser sensor to detect

objects ahead of the vehicle and to monitor vehicle-closing rates. It then pressurizes the brake system to minimize braking times whenever a potential collision is detected. If the driver doesn’t brake for the obstacle, the system will automatically apply the brakes. This high level technology is usually reserved for much more expensive vehicles.

Behind The Wheel: The 2014 Mazda CX-5 is very smooth riding, especially given its SUV capabilities. The overall driving impression is more car-like than truck-like. The electric power-assisted steering gives a decent road feel. It’s not a sports car, but it’s pretty responsive.

A standard feature that we greatly appreciated was the blind spot monitoring system. In today’s highly congested, aggressive traffic we really like knowing what’s in our blind spot. Another great

Pacific Northwest feature is the variable rain-sensing wipers.

Whines: The 2014 CX-5 came out in the first quarter of 2013, which makes it a 2013-1/2 at best. We don’t think automobiles should be dated like comic books.

The liftgate could open a little higher.

We failed to pay attention (admittedly we were parked on an incline) and received a pretty good thump while loading gear in the cargo bay.

A few more interior small item bins would be nice.

Bottom Line: The 2014 Mazda CX-5 does an outstanding out of blending good old SUV practicality/functionality with state-of-the-art safety and fuel economy technology at a very attractive price. It’s a lot of car for the money and a lot of car period.

NWAPA announces 2013 Northwest Outdoor Activity Vehicle of the Year The Northwest Automotive Press Association (NWAPA) has announced that the 2014 Jeep Grand Cherokee is the 2013 Northwest Outdoor Activity Vehicle of the Year. The Cherokee demonstrated outstanding performance, features and value after rigorous testing during NWAPA’s annual Mudfest competition — which is recognized as the most grueling event in the country for production vehicles. This is the event’s 19th year.

More than 30 NWAPA automotive journalists attended Mudfest 2013 at the 310-acre DirtFish Rally School site in Snoqualmie. They spent two days doing on- and off-road testing on courses designed to simulate extreme driving situations the vehicles might encounter.

Journalists tested 23 vehicles from 13

manufacturers to select winners in five categories: compact class, luxury compact class, family class, luxury class, and off-road class. From these, journalists selected their choice for overall winner.

There were many excellent entries in each vehicle category, but the vehicles below were a cut above the rest: Best Overall: 2014 Jeep Grand Cherokee Overland 4x4 Best Compact: 2013 Hyundai Santa Fe Sport AWD 2.0T Best Luxury Compact: 2013 Acura RDX AWD Tech Best Family: 2014 Subaru Forester 2.0XT Premium CVT Best Luxury: 2014 Jeep Grand Cherokee Overland Best Off-road: 2013 Jeep Wrangler

Unlimited Rubicon 10th Anniversary 4x4 On-road testing consisted of a wet pavement autocross course and public roads near the DirtFish site. For all but the off-road class, a moderate off-road course was designed with plenty of mud, ruts, gravel and dirt. Vehicles in the off-road class were subjected to a more difficult course simulating leisure off-roading that takes advantage of locking differentials, great axle articulation and approach angles.

NWAPA (www.nwapa.org) is a professional trade organization of automotive journalists from throughout the Pacific Northwest and Canada. Founded in 1991, it includes 45 voting members, representing more than 100 newspapers, magazines, radio stations, media groups and online news sources.

2014 Jeep Grand Cherokee: A good thing just keeps getting better The corners have been rounded somewhat, with a rear-running upswept character line, but the overall look is the same.

Interior: The 2014 Grand Cherokee offers more comfort, quietness and luxury than ever before, featuring available Natura leather and open-pore wood trim. It comes exceptionally well equipped and boasts a number of advanced technology features that includes an 8.4-inch touchscreen display, a seven-inch configurable multiview cluster display, as well as Chrysler’s Uconnect system that offers cloud-based voice texting.

Also included in the standard technology array on the Overland model are a 506-watt, 9-speaker audio system with sub-woofer, HD AM/FM/Sirius Satellite radio with a complementary one-year subscription, and connections for iPod and other devices, as well as Navigation, and Integrated Voice Command with Bluetooth.

Other standard equipment includes rear back up camera; rear parking sensors; heated front and second row seats; ventilated front seats; power 8-way driver and passenger seats with memory for the driver, as well as 4-way power lumbar adjustment for both front seats; a heated, power-tilt/telescoping wood and leatherwrapped steering wheel; and keyless entry with remote start features.

Optional equipment on our test model included the $1,695 Advanced Technology Group, which includes Adaptive Cruise Control; Forward Collision Warning with Mitigation; Blind Spot and Rear Cross Path Detection; and Advanced Brake Assist.

Under The Hood: Our test vehicle was equipped with the 360-horse, 5.7-liter V8 with Variable Valve Timing and Chrysler's Fuel Saver cylinder-deactivation technology. It delivers 390 lb.-ft. of torque and is EPA-rated at 14/city and 20/highway for a combined 16 mpg.

It was coupled to Chrysler’s aforementioned 8-speed automatic.

Beyond the efficiency contribution of the new transmission, it also features a new Eco Mode that optimizes shifting, and the V8's Fuel Saver cylinder deactivation and lowers the air suspension to Aero ride height above 52 mph.

There are three 4x4 systems offered on the 2014 Grand Cherokee. Our test vehicle was equipped with the top-of-the-line Quadra-Drive II with rear Electronic Limited-slip Differential (ELSD) that delivers maximum traction. It instantly detects slip and distributes torque to tires with the most traction, and can even anticipate slip and proactively adjust to limit or eliminate it. It also featured the available Quadra-Lift system that uses air springs at each corner to automatically (and/or manually) adjust to five different ride heights.

Behind The Wheel: The highway ride — where most people will drive 2014 Grand Cherokee — is far more comfortable than its ruggedness suggests, and is aided by the plushness of its interior.

The electric-assisted steering is light during low-speed driving, and appropriately weights up at speed. Acceleration, as well as braking, under any condition are excellent.

However, off-road is where the 2014 Grand Cherokee really impresses with its ample ground clearance, abundance of traction, and innovative off-road technology.

Whines: The large, square mirrors and

boxy shape do create some noticeable, but not overwhelming, wind noise.

Bottom Line: The 2014 Jeep Grand Cherokee is a much-improved version of an already very capable vehicle. At $51,875 as tested, it also comes with a 5-year, 100,000mile powertrain warranty. The Cherokee lives up to its image of comfort, sophistication and go-anywhere, anytime ruggedness that’s just hard to beat.

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May 2013 Kitsap Peninsula Business Journal • KPBJ.com 35

By Lary Coppola The 2011 Jeep Grand Cherokee was Chrysler LLC — or the “new” Chrysler’s — first “all-new” vehicle following its government-managed bankruptcy and acquisition by Italy's Fiat. It rolled on an allnew architecture shared with MercedesBenz's M-Class SUV — a legacy of its former ownership by Daimler — and powered by an all-new world-class V6. It was good looking, upgraded inside and out, and was quite frankly, a pleasant surprise that sold very well, contributing handsomely to Chrysler's newfound profitability.

For the 2014 model year, Jeep’s flagship Grand Cherokee went under the knife once again for a gentle facelift in order to keep its place against serious competition from segment standouts like the Volkswagen Touareg and its sibling Audi Q7, the somewhat long in the tooth but still formidable Volvo XC90, Toyota 4Runner, and the redesigned Nissan Pathfinder. Jeep engineers improved the road manners of the 4th-generation Grand Cherokee, and unlike some of its competitors, didn’t sacrifice off-road capability in the process.

At the top of the Grand Cherokee hierarchy is the equally new Grand Cherokee SRT, which delivers performance rivaling the Porsche Cayenne GTS — for significantly less money.

Among the major changes for 2014 is an available new 3.0-liter EcoDiesel V6 engine, which Chrysler claims delivers a best-in-class 30 mpg — a cruising range of more than 700 miles — and best-in-class towing capability of 7,400 pounds.

All Grand Cherokees feature a version of the 8-speed automatic Chrysler is outfitting vehicles with across its lineup.

This smooth-shifting gearbox provides impressive mileage gains when married to any of the three available powerplants, and improves 4x4 capability with a lower crawl ratio.

Our test vehicle was the 2014 Grand Cherokee Overland 4X4 — which besides our regular week-long test drive, we also drove again in the Northwest Automotive Press Association’s (NWAPA) annual on and off-road competition known as Mudfest. It’s nationally recognized as the most grueling event in the nation for standard production vehicles. The 2014 Grand Cherokee Overland was the overall winner out of 23 vehicles entered by 13 manufacturers, and we will restrict this review primarily to that vehicle.

Model Lineup: The 2014 Jeep Grand Cherokee is offered in five trim levels — Laredo, Limited, Overland, luxury Summit and the monstrous 470-horse, 6.4-liter, Hemi V-8-powered SRT. Walkaround: While the Grand Cherokee’s new face features a slightly shorter and more sculpted treatment of Jeep’s traditional 7-slot grille, it’s still unmistakable as a Grand Cherokee. Each trim level offers a slightly different front fascia treatment with distinctive LEDringed xenon headlights showcasing the upper trim. The redesigned rear hatch has been updated with LED taillights.

Publisher Lary Coppola Editor Tim Kelly Advertising Sales Dee Coppola Creative Director Steve Horn Webmaster/IT Greg Piper Graphic Design Kris Lively Office Administration Jennifer Christine Web Host PCS Web Hosting LLC Contributing Writers Rodika Tollefson Don Brunell Kathleen Byrne-Barrantes Dan Weedin Julie Tappero Jason Parker

36 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

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Member Kitsap Economic Development Alliance Kitsap Visitors and Convention Bureau Homebuilders Association of Kitsap County Bainbridge Island Chamber of Commerce North Mason Chamber of Commerce Poulsbo Chamber of Commerce Silverdale Chamber of Commerce

Grateful for economic development leadership

By John Powers, Kitsap Economic Development Alliance On March 21, the Kitsap Economic Development Alliance convened its 30th Annual Meeting. KEDA board chair Julie Tappero, president of West Sound Workforce, welcomed over 100 community leaders from throughout Kitsap celebrating KEDA’s 30-year legacy of economic development leadership.

Julie reported on 2012’s highlights: a 24-hour board retreat empowering members to better tell and sell the Kitsap story; the launch of a new multimedia marketing campaign — Kitsap Connected — creating a development tool for KEDA partners to retain and attract talent, customers, and new businesses to Kitsap; and, a significant increase in the number of local businesses being served by KEDA’s government procurement technical assistance center (PTAC). Julie noted our alliance is gaining strength due to the longstanding commitment of public sector partners, and the significant 97 percent growth in support from private sector investment from $79,000 in 2011 to $155,000 in 2012.

Business conducted included: electing new board members: Bremerton City Council president Greg Wheeler, Paladin Data Systems CFO Gary Anderson, and Kitsap Bank CEO Steve Politakis; election of officers: Julie Tappero (s econd term) board chair, Steve Politakis vice-chair, and

Ben Anderson treasurer; and adoption of KEDA’s 2013 work plan and budget focused on four business retention, expansion and attraction priorities: Prosperity Partnership 2.0; PTAC; Kitsap Connected; and Kitsap Aerospace & Defense Alliance.

A panel of government contract counselors and clients briefed attendees on programs designed to assist local small b usinesses in pursuing government contracts. While we are all working hard to ameliorate impacts of budget sequestration on local defense employees, it was good to be reminded that there are current opportunities for local contractors to do business with the DoD and other government agencies.

We also launched Phase II of Kitsap Connected: eight 90-second videos highlighting local businesses representing many economic sectors. You can view it at: www.kitsapconnected.org… watch it, like it, share it!

Finally, our alliance honored two champions — Economic Development Champions — for their outstanding service to KEDA and many contributions to our community.

Jim Carmichael was recognized for his longstanding support and leadership of Kitsap’s economic development efforts. After a successful career with Kitsap Bank, la st summer Jim passed the reins to a new generation of leadership.

For more than three decades, Jim and Kitsap Bank were omnipresent on the economic development scene in Kitsap.

Throughout our 30-year history, KEDA could always rely on Jim to stand up, lead by example, and call others to action.

For his extraordinary commitment to advancing Kitsap’s

economic future, we honored Jim with a rare Economic Develop ment Lifetime Achievement Award. Congratulations, Jim! Poulsbo City Councilmember Ed Stern was recognized as KEDA’s Economic Development Champion of the Year. Ed has been active in our alliance for over a decade and currently serves on the executive committee. Ed’s efforts in 2012 impacted local, regional and statewide opportunities. Ed serves as chair of the Central Puget Sound Economic Development District and spearheaded a large, active delegation of Kitsap leaders in crafting the new Regional Economic Strategy. Ed also championed AWC’s efforts to pursue creative new economic development financing tools for local governments; while at the same time providing key leadership in expanding access to telecommunications infrastructure in Kitsap. For this remarkable year of exceptional contributions to economic devel opment efforts, far and wide, we recognized Ed as our Economic Development Champion of The Year.

Congratulations, Ed! Join me in thanking all of our community leaders who support economic development in Kitsap; and a special thanks to the champions — Here’s to the Champions… Here’s to ’em all!

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

(Editor’s note: This column was publis hed previously on kpbj.com.)

Are we creating more poor people? recovery from the Great Recession than they were at lowest point of the downturn," Seefeldt concluded.

Some 23 million Americans are unemployed, underemployed, or have stopped looking for work because there are no jobs. There are now 4.7 million longterm unemployed in the United States, the largest number since records were first kept in 1948. A record 47.8 million people — 15 percent of the entire U.S. population — use food stamps, a 70 percent increase since 2008.

Even those with jobs are struggling. The median family income has dropped to 1995 levels — so we’re going backward. Millions of new college graduates, many of them deeply in debt, can't find jobs in their fields.

And our economy is growing too slowly to make a difference.

The Occupy Wall Street folks have it backward. Rather than bring rich people down, we should give poor people a way up.

The best way to do that is with good private-sector jobs. Without good jobs, people stay poor. While that may make them a solid voting block for some politicians, it doesn’t help them grow stronger and more independent.

Instead of making scapegoats and pitting people against each other, we should nurture success, empower it, reward it, celebrate it — and expand it. We need to create a culture where job providers have a reason to risk everything on new businesses, where people have opportunities to find work and advance in their careers, and everyone can reap the rewards of their efforts.

America has always been a beacon for people seeking a better life. We need to remember what they knew — that with hard work and economic freedom, everything is possible.

• Don Brunell is president of the Association of Washington Business. Formed in 1904, the AWB is Washington’s oldest and largest statewide business association, and includes more than 8,000 members representing 700,000 employees. AWB serves as both the state’s chamber of commerce and the manufacturing and technology association. While its membership includes major employers like Boeing, Microsoft and Weyerhaeuser, 90 percent of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit www.awb.org.

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May 2013 Kitsap Peninsula Business Journal • KPBJ.com 37

By Don C. Brunell, Association of Washington Business There’s an ancient Chinese proverb that says, "If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime."

In other words, it is better to teach someone to take care of themselves than keep them dependent on others.

In our country today, the growing tendency is to let government provide for us. Almost lost is the notion that, if people are willing to take risks, work hard and pick themselves up when they fall, they will eventually succeed.

As government grows ever larger in an attempt to provide more benefits to more people, it saps trillions of dollars from the private economy and ultimately deters job creation.

When investors and entrepreneurs become targets of derision and are wracked with uncertainty about what the government will do next, they hesitate to risk everything to start a business.

Think about it: Would you mortgage your home and family’s future if you feared that a higher tax, new regulation or government-subsidized competitor would wipe you out? Starting or expanding a business is risky in the best of times; trying to do it in an environment of total uncertainty is foolhardy.

Consequently, private-sector growth — and job creation — remains anemic. In the fourth quarter of 2012, our nation’s GDP grew at an annual rate of 0.4 percent. It should be eight times that much.

Ironically, the government’s campaign to help poor people is creating more poor people.

“About 46 million Americans are poor.

That means for a family of four, they're living on less than $23,000 a year," writes Professor Kristin Seefeldt of the University of Michigan’s School of Social Work.

Seefeldt found charitable donations for programs that serve the poor declined sharply during the recession and have not yet recovered. Making matters worse, fiscal pressures on government may lead to cutbacks in programs that assist the poor.

"Low-income Americans may prove to be more vulnerable during the slow

puppetmaster Michael’s hand-picked choice to replace longtime Councilmember Carolyn Powers, who is retiring, along with Nicole Vaught of the South Kitsap Republican Women.

Vaught is an ultraright wing conservative with a well-earned reputation as perhaps the most vitriolic Republican in Kitsap County.

LARY COPPOLA She once called me a dirtbag in The Last Word front of witnesses for supporting former Congressman Norm Dicks, and then State Senator Derek Kilmer over perennial candidate Doug Cloud, and Kilmer’s Republican opponent, real estate salesman Marty McClendon. Explaining that both Kilmer and Dicks were instrumental in helping the city I was Mayor of acquire public works project funding just ratcheted up her rage even more, as she went into a tirade about taxation. So why she was there, along with the rest of this ubiquitous group of well-known right-wingers? Is Fred Chang really a closet conservative, or are his apparent supporters all closet liberals?

Inquiring minds want to know…

“consumer protection” lawsuit against a small business refusing to provide flowers for a gay wedding. Arlene’s Flowers & Gifts of Richland, is the focus of this legal drama, after owner, Barronelle Stutzman, cited Christian beliefs, and apologized for not providing flowers for the gay nuptials.

According to SeattlePI.com, Ferguson’s decision to make an example out of this small, local business — which could bankrupt it with legal costs — came after a March 28 letter in which he attempted to get Stutzman to reconsider her decision. She refused, saying, “It’s a personal conviction. It’s not a matter of being right or wrong. It’s my belief.”

Exactly which “consumers” is Ferguson “protecting” anyway? Did our AG choose this small, local business because it most likely doesn’t have the resources to fight back? And why is he writing them letters about this to begin with?

This is nothing more than flagrant social engineering, being conspicuously carried out with our tax money. Who will Ferguson sue next, dictating who independent businesspeople can, can’t and/or are required to do business with — no matter what their personal beliefs or financial and/or logistical ability to provide the services in question?

No matter what your beliefs about samesex marriage, if you’re in business in Washington, this brazen abuse of power should scare the hell out you — because you could be next.

Washington State Attorney General Bob Ferguson recently filed what he termed a

I’ve watched the Port the entire 25 years I’ve written this column, and with two Port

Random observations …

The more I observe local politics, the more I agree politics make strange bedfellows.

For example, Port Orchard City Councilman Fred Chang, an ultra-liberal, and in my view, less than honest Democrat, up for re-election in November, recently held a kickoff fundraiser. No surprise there. What is surprising is where it was held and who attended and contributed to his campaign.

The venue was the B&B owned by Republican PCO Gil Michael — who many believe is actually Port Orchard’s “real” Mayor, in spite of the fact no one elected him.

He’s been referred to in the online comments in the Kitsap Sun and Port Orchard Independent as well as Facebook and Twitter, as Mayor Tim Matthes’ “puppetmaster,” something many people familiar with Port Orchard politics believe is absolutely true.

Also in attendance to show their support for Chang — who is the Democratic PCO in the very same precinct as Michael — were Matthes, a well-known Tea Party Republican, and past president of the Kitsap Alliance of Property Owners, plus Kitsap Republican Party vice chair, and former County Commission candidate, Linda Simpson.

Showing up as well were Matthes’ good buddy, irascible Port Commissioner Larry Stokes, and Republican strategist Steve Sego, who many credit with engineering Matthes’ election, along with his main squeeze, Port Orchard Chamber manager Coreen Haydock. Also in attendance was Bek Ashby,

Commission seats up for election this fall, here’s some simple observations meant to help whoever is elected.

Far from being an endless series of paintdryingly dull meetings, or a steppingstone to higher office, Port commissioners occupy what are arguably the most critical economic development jobs in this county.

CEO Tim Thompson runs the day-to-day operations and is responsible for implementing the policies the Commissioners set. However, the Commissioners need to stick to policymaking, get out of Thompson’s way, and let him do his job. If he can’t perform up to a clearly defined set of expectations once they’ve been outlined, then the Commissioners need to hire someone who can — and stay out of his or her way.

What else the Port needs are commissioners who can convincingly explain its importance to community activists — including some electeds — that tend to be obstructionist towards business, and often, government employees more personally focused on the environment than creating private sector jobs. Setting policy, and advocating for economic development are the Commissioner’s main responsibilities — not micro-managing the day-to-day moneylosing operations at the marinas, the industrial park, and the airport. Continual interference by the Commissioners, and the negative uncertainty it creates, has a lot to do with the Port’s ongoing chaos.

Isn’t the first rule of getting out of any kind of hole you find yourself in, to stop digging?

38 • Kitsap Peninsula Business Journal • KPBJ.com May 2013

Looking out for his town, by taking down a body art shop The last time Port Orchard's mayor held court at the dog and pony show he calls his town hall meetings, he waxed sentimental at evening's end and talked about the kids.

Said he likes to "deputize" youngsters and tells them their job as deputy mayor is to "just tell everybody you see you love Port Orchard."

Because, gosh darn it, if folks just realize how nice and friendly everybody is here in Mayor Tim Matthes' town, then pretty soon things will start to turn around for sure. You betcha, kids. All those empty Bay Street storefronts will fill up, and before you know it those passenger ferries from Bremerton will be packed day and night with tourists who want to feel the love... and spend their money downtown, of course.

"OK, maybe the buildings were a little scruffy and you didn’t like the color; I don’t think you remember that,” Matthes said.

“But it’s how were you treated down there.

“And I think,” he concluded, “people are treated very nicely here in Port Orchard.”

Really?

That wasn't the case when this awshucks mayor who spins his folksy spiel had the chance a few days later to show his welcoming attitude to some newcomers — entrepreneurs who opened a business in one of those vacant spots.

You'd think the mayor would be all over that, right? Probably wanting to talk to the business owners about scheduling one of those dopey Chamber of Commerce ribboncutting ceremonies, where he could pose and grin for a photo op.

But it was not a message of welcome that Matthes delivered TIM KELLY when he Editor’s View dropped by unannounced on the day Jake Franklin and Kerry Enderton opened their Aperture Body Arts Studio in the space where Sugardaddy's was until the salon's recent relocation. The mayor didn't bring cookies like he does for town hall nights, and he wasn't there to have his ear lobes pierced and stretched for plugs.

“I was upstairs and I heard some guy giving Jake a hard time,” recalled Enderton, who sports a shiny blue patch in her short blond hair. "He was very rude."

“He wouldn’t listen; he just told us ‘turn off your sign, you’re not licensed,’” said Franklin, whose arms and neck are heavily tattooed and whose assorted facial piercings include silver eyelets wider than a

half-dollar coin in his ear lobes.

Matthes insisted the couple had to close their shop, where they sell body jewelry and Jake does piercings in the loft upstairs, because they didn't have a license. Jake tried to explain that he has a state license for body piercing, that all the forms and permit applications for their business had been filed and that city planning staff had told them they could open.

But Matthes was having none of it. This wasn’t a town hall show; he was there to play the heavy, not to practice what he preaches to those little deputy mayors.

“There was no communication,” Franklin said. “He wasn’t listening to us.”

The mayor’s rogue operation may have stemmed from concerns voiced by some downtown business owners. According to a front-page Kitsap Sun article, Matthes said there were many complaints and “a lot of pushback” about Aperture as the shop prepared to open in March.

But the mayor’s assertion went unquestioned in the Sun’s tepid reporting.

He was not asked who was complaining and pushing back. Nor did the reporter find and quote any such complainers or pushers.

Rather, Matthes was allowed to say “They didn’t feel that business fit their predetermined notion of what we wanted

to do downtown,” without having to identify who “they” were.

A records request from our publication to City Hall uncovered a single email exchange regarding Aperture. Don Ryan, president of the Port Orchard Bay Street Association, had forwarded to Matthes and several City Council members an email from an unidentified “local business owner.” That person wrote “I thought tattoo & body modification business's [sic] were not allowed on Bay street lower levels?

Whats Up?” and Ryan sent the inquiry along with his own comment: “Hope you guys are looking into this. It would be an absolute shame on the council and city hall to allow this on a lower level Bay Street frontage after POBSA and the community has gone to great lengths to re-image our town.”

A few days later, the mayor who seems to fancy himself the town constable was confronting the Aperture owners.

That was followed by an awkward discussion at the next City Council work study session about amending the Downtown Overlay District to tighten restrictions on certain types of businesses, with hardly any specific mention of body Body art, page 24

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