KPBJ November 2015

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Waste Wise @ Work

Newsletter — November 2015

Waste Reduction for Local Business Congratulations! Kitsap County Program The following businesses have met the qualification criteria and are now official Waste Wise @ Work members:

Provides Incentives for Businesses to Reduce Waste

Art Anderson Associates Bainbridge Island Chamber of Commerce Bainbridge Island Historical Museum Bremerton Chamber of Commerce Bremerton Henery Hardware Bremerton Tennis and Athletic Club Chung’s Teriyaki City of Bremerton Clark Whitney, PS Cox and Lucy, CPA Digitalis Education Solutions Inc. Dispute Resolution Center of Kitsap County Echo Artworks, Inc. Ed’s Fly Meat Eddie Bauer Edward Jones Bremerton Express Services Plumbing Fisher Distinctive Dentistry Greater Kingston Community Chamber of Commerce Habitat for Humanity of Kitsap County Hampton Inn & Suites Bremerton Herdman Plumbing Hope Center Island Health and Chiropractic Kitsap Sun Kitsap Bank Kitsap Chiropractic Lutheran Community Services NW Michael Angelo Construction, Inc. Military Air Cargo Northwest Multiple Listing Service Novus Windshield Repair Office Xpats Olympic College Olympic Printer Resources, Inc. Pacific Northwest Title Peace Lutheran School & Church Peninsula Fleet Services Port Orchard Chamber of Commerce Port Orchard Eagles Prototype Tooling & Fabrication SC Fuels Seabeck Conference Center Silverdale Autoworks Sound Appraisal Group The Greater Poulsbo Chamber of Commerce The Island School Wall Liebert & Lund, P.S. Watson Furniture Wet Apple Media

Kitsap County’s Waste Wise @ Work program provides tools and resources to businesses at no cost that are designed to help increase recycling, reduce waste and divert material from landfill. If your business would like to start a recycling program or perhaps explore options on how to expand your current recycling program, please contact us today for the following resources:

Complete a Waste Wise @ Work Membership Application On Our Website

Business Recycling Kits Businesses can request new toolkits for helping to start or improve recycling.

The kit includes information about local recycler options, resources for recycling unusual items such as fluorescent lights, and tips for reducing waste.

Recycling Containers Durable, blue, deskside recycling containers are provided as an incentive for businesses that improve or add recycling. There is a limit of 10 per qualifying businesses while supplies last.

Recycling Stickers Stickers with photos of items that are acceptable for recycling are available to place on or above containers or on employee boards.

Onsite Waste Evaluations by Recycling Specialist Businesses can have a recycling expert visit their location to do a quick onsite review, provide recommendations, and help implement new conservation strategies.

Online Resources to Help Your Business What Do I Do With It? This database lists recyclers or drop off locations for many unusual materials including paint and batteries. (www.kitsapgov.com/sw/recycle.asp) Local Recyclers for Businesses. Information on which recyclers will provide recycling service onsite. Call them for pricing. (www.kitsapgov.com/sw/pdf/3741_Business_Recycling.pdf)

Recognition Opportunities Waste Wise @ Work: Kitsap County Business Recognition Program Businesses qualify by the amount of material they recycle, how they reduce waste, and by purchasing office products with recycled content. Qualifying businesses will be listed on Kitsap County’s website, receive a window cling to display, and will be considered for the Business of the Year award. Membership is easy and free. www.kitsapgov.com/sw/ww.htm EPA’s Waste Wise: National Recognition Program This program provides waste reduction tools to help your business reduce waste. Membership is free. www.epa.gov/epawaste/conserve/smm/wastewise/index.htm Energy Star: National Recognition Program This site contains resources to “grade” your building, as well as monitor your energy use. Free to use. www.energystar.gov/

Olympic College Implements Organics Recycling Congratulations to The Culinary Arts team at Olympic College where they recently implemented a food waste recycling program! Organics that are generated in various prep stations in the main kitchen are collected in repurposed pickle buckets that are then emptied into carts on the loading dock for pickup by the recycling hauler. The food waste is taken to a local composting facility where it is mixed with yard waste and turned into a great resource – nutrient rich compost.

This program diverts waste from landfills, supports Olympic College’s commitment to environmental sustainability, and provides a valuable teaching tool for future culinary professionals. Thanks to Chef Instructor Chris Plemmons (pictured) and his team for their commitment to this new recycling program as Olympic College continues to forge ahead with sustainable practices.

Kitsap County Outreach and Education Staff worked with Chef Plemmons and the Culinary Arts Team to identify opportunities for food waste recycling at the end of the last school year. Together, county staff and the Culinary Arts Team at Olympic College came up with a strategy for implementation which included signage, technical support and onsite training of staff and students. Collection of the organics for recycling officially began in September and material that was previously going to landfill in Oregon is now processed at a local composting facility.

If your business is interested in exploring a similar waste diversion program, contact us today for a free onsite waste assessment.

Contact Kitsap County Public Works, Solid Waste Division: 360-337-4898

www.kitsapgov.com/sw/ww.htm • solidwaste@co.kitsap.wa.us

| Saturday, November 7,

Born artist, entrepreneur by design ■ Poulsbo native says constant

learning, adapting has led to success of Fusion Creative Works

By Terri Gleich KPBJ contributor

When 27-year-old Shiloh Schroeder took over Sloan Creative in 2006 and turned it into Fusion Creative Works, she transformed a niche marketing agency into a broad-based design firm that combines old-fashioned customer service with a tech-savvy approach to websites, branding and publishing.

To get to that point, she had to overcome shyness, commit to constant retraining and be open to unexpected opportunities.

A born artist, Schroeder was always drawing and painting as a child, and made mock fashion magazines in spiral notebooks with a friend. She wanted to be an architect, but reconsidered after a high school internship revealed the profession to be as much about paperwork as creativity.

Schroeder’s love of a visual communications class at North Kitsap High School led her to attend Northwest College of Art after her mother pointed out that the college had a degree in that discipline.

“I hadn’t put two and two together,” Schroeder said.

“Because I really liked it, I didn’t realize I could make a living at it.”

After graduating with a bachelor’s of fine arts in visual communications with a major in graphic design, it took Schroeder two years to get her first job in the field. She worked retail and as a receptionist before landing a job with Bainbridge-based Sloan Creative. Her job interview was at a construction site for owner Stephen Sloan’s

new home and he flipped through her portfolio on the hood of his car.

Sloan hired her on the spot to create materials for his niche market of independent office supply companies. She started designing weekly sales flyers and then branched out to websites.

When Schroeder bought the company in 2006, she went to every networking event she could find, even though she found it hard to introduce herself to a roomful of strangers. If she couldn’t afford to join a group, she went as a guest.

The strategy worked. She met businesses that needed logos and those businesses recommendedhertoothers.

“I learned as I went,” she recalled. “It was actually pretty terrifying.”

Designer Jessi Carpenter has been with Schroeder since the start and production designer Rachel Langaker joined the firm two years ago. All three women work from home. Schroeder still loves design work, but spends most of her time on customer relations.

Langaker first worked at the firm as a high school intern and sought a job after graduating from Western Washington University because she liked the creativity and working with Schroeder.

“Even with such a small team, we are still able to compete with, as well as surpass, the experience and originality of larger organizations in Seattle and other parts of the country,” Langaker said. “We work well together and it shows in our designs, as well as our customer loyalty and satisfaction.”

Fusion has developed in

surprising ways, according to Schroeder. For example, she met a publishing coach early on who needed some quick edits to his book cov-

er. She did the job and he began recommending her to his clients. Publishers saw the work and started calling. Now, her firm is

becoming known for book covers, interior layout and e-book creation.

“They are absolutely fantastic, state-of-the-art and they win awards every year,” Aloha Publishing CEO Maryanna Young said of the trio at Fusion Creative Works. “They

bring both design and technology into the same package and that is so rare.

Usually, you have designers or technologists, not both.

I think they’re three to five years ahead of the industry in interior book design and See DESIGN, 7

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5

Jill Bamburg, President and Co-Founder of Pinchot University. Worked in adult education, high tech marketing, and community and environmental journalism.

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| Saturday, November 7, 2015 |

Advice for entrepreneurs

Know your strengths and weaknesses and be willing to do whatever it takes to find the right resource or individual to partner with.

Have a sense of purpose and be relentless and driven, and be 100 percent certain about what you’re trying to do.”

Mike Runion, right, and Travis Guterson don’t like to call themselves the owners of 7 Seas Brewing Co. — they say they work at the brewery, and they work just as hard, if not harder, than their employees.

PHOTO BY RODIKA TOLLEFSON

— Travis Guterson

Bootstrapping their brewery ■ 7 Seas founders are a young duo with relentless drive

By Rodika Tollefson KPBJ contributor

Despite being only six years old, 7 Seas Brewing Co. has become one of Gig Harbor’s most recognized businesses. Located downtown, the brewery’s taproom is a popular hangout — and during nice weather, the full and lively outdoor patio tells passersby this is definitelyahappeningplace.

The microbrewery is the brainchild — and the sweat and tears — of Mike Runion and Travis Guterson, who started the company at the unlikely age of 24.

The pair grew up on opposite sides of the Kitsap Peninsula — Runion is a graduate of Gig Harbor High School and Guterson of Bainbridge Island High

— and met in the middle, at Silver City Brewery.

Runion, who has a business degree in entrepreneurship, was doing an internship while Guterson was a production brewer at the time, back when Silver City’s production facility was in Silverdale.

What binds them is their passion for beer — and a shared drive to build a successful business.

“We were craft beer lovers from day one so we’ve always done things the way we wanted to see done. We didn’t have to worry about focus groups because we’re the consumer,” says Runion, who became interested in craft beer during his early college days.

A partnership, the two say, is like a marriage.

“We were honest about our relationship and how we’ll handle tense moments,” Runion says.

Guterson adds, “You have to have the maturity level to be able to handle those conversations.”

BREWING UP A SUCCESSFUL BUSINESS Guterson began home brewing while in high school and continued to develop that interest in college. After studying English at the University of Washington for a while (writing apparently runs in the family, as his father is author David Guterson), he decided to take two quarters off so he could work at a brewery in Portland.

He never returned to school. Instead, his travels took him to a new career.

When he met Runion, the two became friends. Soon, they were kicking around the idea of what it may be like to have a brewery without a restaurant attached.

As Runion tells the story, they were sitting at a table

during his senior year of college one day when they started writing down ideas for their business. He started the first draft of the business plan soon after — and he still has that original piece of scribbled paper.

“Anyone can dream and talk all day long, but if you take the idea and get the ball rolling, things progress over time,” Guterson says.

And that’s what sets entrepreneurs apart, Runion adds — they don’t just talk,

“Stay focused and motivated.

Even if you’re going against the grain, have a core belief in yourself. Be prepared for big sacrifices and risks. This is not a title — it’s about living it.”

— Mike Runion

See BREWERY, 13

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| Saturday, November 7,

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MEEGAN M. REID

Shiloh Schroeder of Fusion Creative Works in her home office in Poulsbo.

Design

Advice for entrepreneurs

from 5

e-book conversion.”

Fusion recently designed ethnicseattle.com,awebsite that focuses on internationalfood,eventsandbusinessesinthecity.Anotherrecent project was redesigning Silver City Brewery’s website. But Schroeder’s just as proud of helping start-up businesses in Poulsbo with branding, logos, business cards and websites.

“I love to see new businesses grow here and thrive here,” said Schroeder, who grew up in Poulsbo and is on the board of the Chamber of Commerce. “When you get to work with them from the beginning, it’s exciting to watch them grow.

That’s the really exciting part of what we do.”

Her field requires that she constantly be learning and changing, Schroeder said. The latest push in website design, for example, is to create responsive websites that can be viewed

You have to fight for what you want. You can’t expect that it will come to you. You have to work hard for it.”

— Shiloh Schroeder, Fusion Creative Works

More on this topic Read more about entrepreneurism from columnists Ken Sethney and John Powers. Page 40

as easily on mobile devices as on a computer.

As a result, Schroeder said, she builds fewer websites from scratch. Now, she’s more likely to customize themes from providers such as WordPress because it costs less, allows clients to easily make updates and automatically adapts to industry changes.

“Things move so quickly, you can’t stop to take a class. The client comes to you and it’s 90 percent something you know how to do and 10 percent something you don’t and you have to adapt,” she said.

“That’s some of the best way to learn — by doing.”

Schroeder considers Fusion a business that’s there for other businesses, no matter their size or budget.

She can do a website for as little as $250, although most cost between $500 and $1,500.

“I can work with any budget,” she said. “I don’t want to eliminate anybody from having an awesome website. I think good design should be affordable to everyone.”

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Teresa Bryant

Denette Chu, AAMS

Glenn Anderson, AAMS

Downtown Bremerton 360-373-1263

Port Orchard 360-876-4709

Poulsbo 360-779-7894

Debi Tanner

Todd Tidball

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Kingston 360-297-8677

Poulsbo 360-778-6123

Bremerton 360-373-6939

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Bremerton 360-475-0683

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Kingston 360-297-8664

Bainbridge Island 206-842-1255

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Silverdale 360-698-6092

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Manchester 360-871-0998

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Angela Sell, AAMS Silverdale 360-698-7408

Kristen Allen Silverdale 360-308-9514

Schelley Dyess Port Orchard 360-876-3835

www.KPBJ.com

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| Saturday, November 7, 2015 |

Creating good vibes downtown ■ Owners of Toro, Isella continue their investment in making Bremerton a happening place

By Tim Kelly

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

Spend some time talking with Carlos and Christina Jara, and the words “cool” and “unique” are sprinkled throughout the conversation.

Those are elements they like in places they visit, and try to create in their downtown Bremerton businesses — Isella Salon Spa and Toro Lounge.

He’s the owner and hands-on manager at Toro, and says they opened that business in 2011 because of “a desire to do something fun and unique in the community; we felt there was a certain type of environment and cuisine that was missing in Bremerton.

“We would go visit places in Silverdale, Poulsbo, Gig Harbor and whatever, and we enjoyed what they did, but more often than not we would see people from Bremerton there.”

They also did research of a sort while traveling outside Kitsap, finding concepts they could incorporate back home.

“We visited restaurant/bars that we felt were really cool and unique, throughout the Northwest,” Christina says, adding that they “just kind of cherry-picked what we liked about places and tried to create our own version of it.”

So Toro established a distinctive identity with its tapas menu and sidewalk café ambiance on

LARRY STEAGALL

Christina and Carlos Jara at Isella Salon Spa, which moved into a building they bought last year in downtown Bremerton. The couple, who also own Toro Lounge and Harborside Market downtown, are preparing to open a new store for the holiday season next to Isella in their building.

Pacific Avenue. It’s also, Carlos notes, the only local bar with wine on tap.

Christina has had her business, Isella Salon Spa, just around the corner on Fourth Street for nine years. The salon moved across the street in the summer of 2014 when the entrepreneurial couple bought their own building, which has a tenant space next to Isella.

Potential tenants that inquired about leasing the space weren’t a

good fit with the salon, so they’re preparing to open another shop there themselves.

The shop will be called Emilia — for their newborn daughter, just as the salon is named for their firstborn — but they haven’t come up with a pithy description of what it will be.

They don’t want to call it a kitchen store, because it won’t have pots and pans and cutlery, but Christina says it will be “a

great store for someone who likes to host parties and get-togethers.”

Or a place to shop for a gift for someone “when you want to find something cool and unique that you know they’re not going to already have.”

Start-up plans

Carlos Jara, 44, who spent a dozen years in corporate management at MCI/Verizon after college, already had the entrepre-

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neurial bug when he moved from Austin, Texas to Seattle and met his future wife.

“I moved to Seattle with the intent of starting a business,” he says. Ironically, his plan was to open an upholstery shop — though he’d left home to go to college because he didn’t want to take over his father’s upholstery business in his hometown of El Paso, Texas.

He had friends living in Bremerton and decided that would be a better place for his start-up. He switched his business plan, too, and in 2004 Jara opened a package shipping store in the newly opened Kitsap Transit Center by the ferry dock.

He candidly admits that wasn’t the best choice, because access to the business was nearly impossible when construction of the car tunnel into the ferry terminal began.

“We knew from day one when we opened up the shipping store that we opened the wrong business down there,” Jara says.

So to stay in business, he changed the place to a convenience store catering to walk-on ferry passengers, and the Harborside Market is still there today.

It’s a lesson in adaptability, he says, that’s essential for entrepreneurs.

There were no hurdles like that with Isella, although Christina — who was working as a paraeducator in special education when she met Carlos — describes

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herself as an unlikely entrepreneur. â&#x20AC;&#x153;I couldnâ&#x20AC;&#x2122;t even fathom doing what Iâ&#x20AC;&#x2122;m doing now when we met,â&#x20AC;? she says, even though she had made a career change before they moved to Bremerton, going back to school to become a licensed esthetician.

When they decided to open a salon as her business, she says, Carlos was her support system because he already had experience with â&#x20AC;&#x153;all those behindthe-scene details it takes to start a business and run a business.â&#x20AC;?

Although it seemed a â&#x20AC;&#x153;drastic choiceâ&#x20AC;? to go into business for herself, Christina says itâ&#x20AC;&#x2122;s worked out because â&#x20AC;&#x153;I started very small and I was very realistic about expectations of growth. â&#x20AC;&#x153;I feel like if I had grown too fast, I might have failed.

But because we grew at this nice, steady pace, I was able to keep up with it and learn as I go. â&#x20AC;Ś I would say thatâ&#x20AC;&#x2122;s been my saving grace is the nice slow, steady growth throughout the nine years.â&#x20AC;?

She plans to take the same approach with the new store, launching it more like a pop-up store for the holidays.

Buying in

The Jaras, whose second child was born this fall, believe buying the building that houses Isella is a good investment for their future, and shows their belief and commitment to downtown Bremerton. The salon and Toro Lounge both occupy buildings that previously had been vacant for at least two years. â&#x20AC;&#x153;We bought (the Isella building) from Bremer Trust, and at that point it was not for sale,â&#x20AC;? Carlos says. â&#x20AC;&#x153;We made them an unsolicited offer.â&#x20AC;?

They didnâ&#x20AC;&#x2122;t think theyâ&#x20AC;&#x2122;d be able to get ďŹ nancing for the purchase, but they found help locally, getting an SBA loan through Liberty Bay Bank.

As well as managing multiple businesses that

Advice for entrepreneurs

Develop a business plan, and get feedback on that business plan as opposed to just saying hey, Iâ&#x20AC;&#x2122;m going to do this and thatâ&#x20AC;&#x2122;s the way it is.

Sometimes even with a business plan you do have to adjust your course.â&#x20AC;? â&#x20AC;&#x201D; Carlos Jara

He cites the Kitsap Transit building, where Harborside Market is a tenant, as an example of that. â&#x20AC;&#x153;When they built it they had small suites â&#x20AC;Ś and itâ&#x20AC;&#x2122;s never been vacant,â&#x20AC;? Jara says. â&#x20AC;&#x153;And itâ&#x20AC;&#x2122;s higher rent down there. Yeah, itâ&#x20AC;&#x2122;s more foot traffic, but they were the perfect size. You do that up here, you take the Bremer Trust building on the corner, partition it and put ďŹ ve suites in there with a common area, it would rent out.â&#x20AC;?

He thinks offering some

form of tax abatement for property owners would be a good incentive to get them to subdivide their empty buildings and attract tenants. â&#x20AC;&#x153;We do that now as a city, with the tax abatement for the residential component, but we donâ&#x20AC;&#x2122;t have anything for commercial,â&#x20AC;? he says. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re the only area in Kitsap that has these giant buildings with 100 percent vacancy, because theyâ&#x20AC;&#x2122;re too big.â&#x20AC;?

Balancing work and family demands can be

difficult, but the Jaras like where they are and what theyâ&#x20AC;&#x2122;re doing. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s constant pressure on you to stay ahead, stay up on marketing, stay up on staff education,â&#x20AC;?

Christina notes. â&#x20AC;&#x153;But I canâ&#x20AC;&#x2122;t complain, because since I opened my doors nine years ago, I have increased our growth every year.â&#x20AC;? â&#x20AC;&#x153;When things are really running smoothly and business is doing great,â&#x20AC;? she adds, â&#x20AC;&#x153;you feel so grateful and excited to have created this from scratch.â&#x20AC;?

â&#x20AC;&#x153;You have to look at whatâ&#x20AC;&#x2122;s going to work for you â&#x20AC;&#x201D; can you get a loan ... or are you going to have to grow organically, and grow year after year?â&#x20AC;? â&#x20AC;&#x201D; Christina Jara

collectively employ more than 20 people, the Jaras also balance work and parenting. â&#x20AC;&#x153;Our intent was not to create all these businesses; it just happened,â&#x20AC;? Carlos says, â&#x20AC;&#x153;and weâ&#x20AC;&#x2122;re still trying to juggle that, I guess, with whatâ&#x20AC;&#x2122;s more important to us, which is our family.â&#x20AC;?

But they appreciate the opportunity theyâ&#x20AC;&#x2122;ve had to contribute, along with other entrepreneurs, to the revitalization of Bremertonâ&#x20AC;&#x2122;s downtown scene. â&#x20AC;&#x153;Entrepreneurs create something,â&#x20AC;? Carlos says, drawing a distinction with business owners who open a franchise. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m trying to see downtown become like a dining and entertainment district,â&#x20AC;? he adds. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re not going to be a retail district, weâ&#x20AC;&#x2122;re not.â&#x20AC;?

Downtown challenges

Jara, who made unsuccessful runs for City Council and mayor several years ago, is a board member and past president of the Bremerton Downtown Association. Heâ&#x20AC;&#x2122;d like to see more small businesses take root downtown, but sees a

major obstacle to that. â&#x20AC;&#x153;I think the challenge we have in downtown Bremerton is there are not spaces that are right-sized for small businesses. The spaces are just too big,â&#x20AC;? he says. â&#x20AC;&#x153;The buildings are not partitioned off for say 1,000 to 1,200 square feet, which is the perfect size for startups that are doing the typical things youâ&#x20AC;&#x2122;re looking at in a downtown community â&#x20AC;&#x201D; the bookstores, the shoe stores, the kitchen stores â&#x20AC;Śâ&#x20AC;?

The building they bought is 5,400 square feet, and Isella takes up less than half the space.

However, Jara does think downtown Bremerton is conducive to non-franchise businesses, citing the SeeFilm theater as a prime example. â&#x20AC;&#x153;You wonâ&#x20AC;&#x2122;t see stuff that opens up in Silverdale; those things donâ&#x20AC;&#x2122;t lend themselves well to downtown Bremerton,â&#x20AC;? he says. â&#x20AC;&#x153;So I think if we could get right-sized on the buildings downtown, and make them all partitioned off to 1,000 to 1,200 square feet, it would be a bastion of small business. It would be like a mecca for small business.â&#x20AC;?

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Creating an identity for Annapolis

■ Whiskey Gulch owners spark

revitalization of a waterfront scene away from downtown Port Orchard

By Tim Kelly

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

Kristi and Rob McGee didn’t plan to be the entrepreneurs running businesses in a stylishly

renovated two-story waterfront building in Port Orchard. But it’s not that surprising that the couple did just that, and are in their fourth year operating Annapolis Fitness and Whiskey Gulch Coffee Co.

LARRY STEAGALL

Whiskey Gulch Coffee Co. owners Rob and Kristi McGee have expanded the business, which is next to the Annapolis ferry dock in Port Orchard. Annapolis Fitness is on the second floor of the building.

“I don’t think either of us was cut out for desk jobs,” says Kristi, whose domain is the second-floor fitness studio. “I think that started a long time ago.”

“You either are entrepreneurial or you’re not,” says Rob, who

also owns a company that installs fire sprinkler systems. “You can’t teach that. You can teach business — how to manage and how to operate a business, but I think you have to have that entrepreneurial spirit kind of ingrained in you.

“It’s almost like some people can’t stand sales, but other people are just born salesmen.”

Still, they bought the building next to the Annapolis passenger ferry dock in 2011 as an investment, planning to lease the space to other businesses.

“We really had no intent of putting anything in there ourselves,” Rob says while sitting with his wife in their recently expanded café and bar. “But the economic climate was such that it wasn’t an easy task to get somebody to lease a waterfront building at the time.”

“Wasn’t easy to start a business in it, either,” Kristi chimes in.

They’ve persevered, though, and their businesses that originally occupied separate spaces on the building’s ground level now each have their own floor.

COMMUNITY INVOLVEMENT Just as meaningful to the McGees, who are both South Kitsap natives, is that they have built up their enterprises by helping create a sense of community in Annapolis, re-establishing an identity for a small, overlooked part of town that was part of the

Mosquito Fleet network of community docks a century ago on the Kitsap Peninsula.

Since prospects for leasing their building were dim a few years ago, Rob explains, “we just decided, let’s put something in here that adds value to the community.

“It was like we had this building and we can’t just let it sit there, so let’s do something with it.”

The Annapolis Fitness studio originally took up most of the ground floor, in an open space without the trappings of a typical gym but featuring large windows looking out on Sinclair Inlet. The Whiskey Gulch part of the operation started small, essentially an add-on in a room at the end of the building next to the ferry dock.

“I remember walking through here and there was just that little kitchen area,” Kristi says. “I think our café was only 16 feet wide when we decided to actually open a coffee shop.”

“The original thought,” Rob adds, “was just to put a little walkup coffee shack in that spot.”

Through two expansions that enlarged the kitchen and added a bar, Whiskey Gulch has become a popular gathering spot, featuring weekly trivia nights, open mic sessions, and local musicians performing on the weekends.

Although Kristi had some apprehension about taking

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| Saturday, November 7,

HUMAN RESOURCES | JULIE TAPPERO

Helping millennials rise as entrepreneurs

I

t’s common knowledge that small businesses are responsible for creating the majority of new jobs.

In fact in 2014, according to the Small Business Administration, small businesses were responsible for creating 67 percent of the 3 million new private-sector jobs. And they credit entrepreneurs and small businesses with creating the majority of new jobs that pulled our country out of the last recession. Another fact, from the SBA, is that the majority of small business owners are 50 or older.

So where will the entrepreneurs and small business owners of tomorrow come from?

According to the Kauffman Foundation, within 10 years millennials will represent 75 percent of the workforce in the United States. Clearly, millennials have the potential to be critical components in our entrepreneurial system to grow jobs in our economy.

The good news is that millennials as a generation appear to have a good foundation to be business owners. Many colleges already incorporate entrepreneur education into courses of study, and millennials as a whole have a higher level of education overall. Many studies have shown that this generation values flexibility, opportunity to take on new challenges, and the desire to do work that matches their values. All of these qualities are well suited for business ownership.

In fact, a study by Bentley University revealed that 67 percent of millennials hope to start their own business someday.

On the other hand, there are other recent studies that provide insights into

reasons millennials may not be ready to start businesses. This generation is saddled with high student loan debt. This, coupled with stagnant wages, has left them with less capital resources to start businesses. During the recession they saw small business failures firsthand, resulting in the restriction of their opportunities to grow their own careers.

All of this may well have dealt their entrepreneurial instincts a crippling blow.

We as business owners and managers, though, can take advantage of the entrepreneurial nature of our millennial employees, or of all employees for that matter. Creating an entrepreneurial work environment in our companies benefits our workers and our businesses as well.

The term “intrepreneur” has been coined to identify employees within an organization who are entrepreneurial by nature. The term is credited to Gifford Pinchot III who described them as “dreamers who do.

Those who take hands-on responsibility for creating innovation of any kind within a business.” The first step is to identify the intrepreneurial employees in your own company.

Not all employees have an entrepreneurial spirit, just as all business people are not cut out to start their own companies. It’s not a criticism of any of your employees. What’s important is to correctly challenge employees as individuals in order to help them achieve their best in their job.

Entrepreneurs are motivated by taking a concept from vision to reality. In your business, when you have a new venture or project to take on, it’s a great opportunity to utilize your entrepreneurial employee.

Bringing them in at the beginning to develop the vi-

sion, chart the path, manage the project, and be respon-

sible for the outcome will bring them great personal

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Tappero from 11

way you can reward your employee.

Tying the success of their project to financial compensation or a bonus will provide them with an opportunity for real financial reward. A really positive benefit of being an intrepreneur is the opportunity to risk failure in a project without risking complete failure of a business. Providing an intrepreneurial employee with mentoring and coaching while they take risks and explore their abilities can provide them with great personal rewards. Keep in mind that your prodigies also love the recognition of their accomplishments. Whether the end result is a total or partial win, recognizing to all of the organization that your employee took on a challenge, accepted great risk, and exhibited creativity and initiative will motivate this employee as well as others.

Entrepreneurs are also more likely to challenge the status quo and look for ways to improve and change the way things are.

As a manager, this type of employee can be viewed as more difficult to manage.

You can flip that concept on its head and view this employee as one with new ideas, who is motivated to solve problems and anxious to make an impact. The key is to

provide this type of employee with true opportunity.

With this type of employee, you want to provide them with general guidelines and be open to their suggestions. Don’t micromanage them or the process. Provide them with as much autonomy as makes sense in the situation. You have to ask yourself if you are capable of allowing them to take charge, make decisions, succeed or fail, and take the credit themselves. That is not to say you won’t provide guidance — just remind yourself that this is the time to develop their talent and enable them to see what they are capable of.

I often hear business owners say they wished they had employees who cared as much about their business as they do.

It takes some real thought and effort to create a work environment that gives employees true skin in the game and allow them to take risks and reap the rewards.

It’s definitely worth doing this, not only to benefit our own businesses, but to grow the entrepreneurs our economy needs for tomorrow.

• Julie Tappero is 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.

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| Saturday, November 7, 2015 | 13

Brewery

Godfather’s closes in Port Orchard, to be replaced by Westside Pizza

By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

Godfather’s Pizza in Port Orchard is closing but its space on Mile Hill Drive won’t be empty long.

Port Orchard Godfather’s owner Steve Runge plans to retire. A Westside Pizza franchisee is taking over the location.

The pizzeria shut down Oct. 24 and will remain closed about a month for renovation, said Westside Pizza franchise owner Teresa Mahoney. She plans to remove carpet, install hardwood floors, and hang new signs before reopening.

“Basically just update it,” she said. “Then it’s all about customer service, and who I can please.”

Mahoney said the new shop will offer discounts

for military personnel, first responders and teachers.

The Enumclaw resident is moving to Port Orchard to run the business.

Port Orchard will be the 28th location for Westside Pizza, a fast-growing West Coast chain. It was founded in Colville, Wash., and has shops on Bainbridge Island and in Bremerton, Kingston and Poulsbo.

Godfather’s has been a popular Port Orchard gathering place since opening in 1982. Runge took over in 1997. He said he’s excited for retirement but sad to close the restaurant.

“It’s always hard to give something up after 18 years,” Runge said. “And we’ve had great customers.”

Godfather’sPizza,soonto beWestsidePizza,islocated at 1700 SE Mile Hill Drive in the Towne Square mall.

from 6

they put their plan into action.

When Runion returned to his hometown after graduation, the two became serious. He was convinced a craft brewery — at the time still a novel idea — would do well in Gig Harbor. Guterson, who knew nothing of Gig Harbor, went along with the location choice.

Serendipitously, perhaps, a Seattle brewery that had the right type of equipment — an 8.5-barrel system — went out of business. With a bit of seed money from family and friends, they purchased the equipment but had to keep it in storage while raising money for everything else.

But it was 2008, when the financial markets crashed, and their wouldbe investors were no longer liquid. Undeterred, the two

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spent nearly a year talking to dozens of people, mostly friends, family and acquaintances. Call it oldfashioned crowdsourcing before online crowdsourcing became all the rage.

“We didn’t have a track record, so they were looking to invest in us as individuals,” Guterson says.

For someone in their early 20s, the two were seriously driven. And they learned as they went.

“Every time someone asked a question that wasn’t (addressed) in our business plan, we went back and revised the plan,” Runion says.

Luckily for Runion and Guterson, they didn’t have major commitments so they could pour themselves completely into the business. Broke and exhausted as they kept part-time jobs until the opening of 7 Seas, the two bootstrapped their way to a 1,500-square-foot location in the downtown area.

Just weeks away from starting production — and a day away from their inspection — a fire in the building destroyed just about everything they owned.

One thing the partners had going for them, besides sheer determination, was business acumen.

Guterson says from the beginning, they were seri-

ous about building a solid foundation. That included insurance, which helped them start again.

About six months after the fire, 7 Seas sold its first beer. Starting from scratch, the partners had rebuilt and opened at a new location, near Gig Harbor Inn. At 3,000 square feet, it was double the size — and only about six months after their July 2009 opening, the partners added a beer garden.

Another two years later, they took another major step. Thanks to an SBA loan through Heritage Bank, they expanded to a new location — back downtown. That gave them 10,000 square feet of space, including ample room for a taproom that has a sweeping view of the production area.

Now occupying 14,000 square feet, 7 Seas also has a food truck on site four days a week, a 50/50 partnership with Peterson Bros. of Tacoma.

Starting out with just the two of them (now they have 22 employees), 7 Seas produced 800 barrels the first year. This year, they’ll be close to 8,000 barrels.

Despite what seems like wild success in a short time, the 31-year-old entrepreneurs insist that their growth is meticulously controlled. Expanding into every new market

— which they currently limit to Western Washington — doesn’t happen until the previous market runs smoothly.

Runion and Guterson, who bounce off each other as they speak, say it was essential for them to know what they wanted to do from day one, where they wanted to be in five years, 10 years — and why. It’s one reason they haven’t ventured outside the region, or haven’t added TVs to their taproom, for that matter.

“Sometimes successful entrepreneurs — and I don’t consider us successful yet but we’re working on it — go against the common thinking,” Runion says.

“They’re risk-takers.”

What it takes to succeed, they say, is a strong work ethic, a belief in yourself, the attitude that you’ll get things done one way or another and an openness to learn. Guterson says they’re the first to admit they don’t know everything and they ask others for help while constantly learning.

Being a business owner is hard, Runion acknowledged, and says that the work could become a grind if not for one more important thing: passion.

“You have to love what you do if you’re going to be successful,” Guterson says. “If you don’t love it, you shouldn’t be doing it.”

14

| Saturday, November 7, 2015 |

FINANCIAL PLANNING | EDWARD JONES

When investing, put time on your side Article provided by Edward Jones for use by financial advisor Rachel Sutherland of Silverdale.

N

ow that we’re well into autumn, the days are getting noticeably shorter. The change in seasons reminds us that time is passing – and it’s important to use that time wisely. When used well, in fact, time can be your greatest gift in many walks of life – and that’s certainly true when you invest.

To illustrate the importance of time, let’s look at a scenario. Suppose you start saving for retirement when you are 25. If you invest $3,000 per year in a tax-deferred vehicle, such as a traditional IRA, and you hypothetically earn a 7 percent annual return, you will have accumulated more than $640,000 after 40 years, when you reach 65 and are ready to retire.

(Keep in mind that you will be taxed on withdrawals.)

Now, though, suppose you wait until you’re 55 before you start saving seriously for retirement. If you put that same $3,000 per year in that same IRA, earning that same hypothetical 7 percent return, you’d only end up with slightly more than $44,000 after 10 years, when you reach 65. And to accumulate the $640,000 you would have gotten after 40 years by contributing just $3,000 per year, you would have had to put in about $43,500 per year for the 10 years between ages 55 and 65.

Clearly, it’s a lot easier to come up with $3,000 per year than $43,500. So, to accumulate the resources you need for a comfortable retirement, you’ll help your cause greatly by saving and investing as early in your working life as possible – and then continue to save

and invest right up to, and even during, your retirement years.

The ability to potentially grow your portfolio sizably is the key benefit of using time when you invest – but it’s not the only benefit.

You can also use time as a target, or a way to frame a specific investment goal.

For example, suppose you have an 8-year-old child whom you want to send to college in 10 years.

When that day arrives, wouldn’t it be nice to know that you’ve been saving money for a decade? One popular college savings vehicle is a 529 plan, which has high contribution limits and allows tax-free withdrawals, provided the money is used only for qualified higher education expenses. (Withdrawals for other purposes will be taxed and may be subject to an additional penalty.)

You can also use time as a signal to adjust your in-

Will you be ready for retirement?

Article provided by Edward Jones for use by financial advisor Chris Renfro of Poulsbo.

N

ational Save for Retirement Week is observed Oct. 18–24 this year. And this week has some weight behind it, as it is recognized by the U.S. Senate for its importance in encouraging Americans to prepare themselves financially for retirement. Are you doing all you can?

Many of your peers aren’t. About a third of working adults have no retirement savings or pension, according to a survey by the Federal Reserve. And more than half of workers report that the total value of their household’s savings and invest-

ments, excluding the value of their primary home and any defined benefit plan (such as a traditional pension), is less than $25,000, according to the Employee Benefit Research Institute’s 2015 Retirement Confidence Survey.

Such figures help explain why many people are unsure if they’ll ever be able to retire. Nearly 40% of the respondents in the Federal Reserve’s study either have no intention to retire or plan to keep working for as long as possible.

Of course, if you enjoy your career, or just simply like to work, you may be in no hurry to retire. But you may want to put yourself in a position someday when work is optional – not mandatory. To reach that point,

consider taking these steps: • Estimate your cost of retirement. At what age do you plan to retire? When you do retire, will you stay home and pursue your hobbies, or will you travel the world? Will you do some consulting or other parttime paid work, or will you volunteer? By answering these and other questions, you can at least estimate your costs during your retirement years.

• Contribute to your 401(k). Contribute as much as you can afford each year to your employer-sponsored retirement plan, such as a 401(k). At a minimum, put in enough to earn your employer’s matching contribution, if one is offered.

See RETIREMENT, 26

vestment strategy. If you’re going to retire in, say, two or three years, you might want to shift some – but

certainly not all – of your assets from growth-oriented investments to income-producing ones. As you know, the market will always fluctuate, so you don’t want to be in a position where, once you retire, you need to start taking significant withdrawals – i.e.,

selling investments –when the market is down. Remember the time-honored rule of investing: “Buy low, sell high.”

When you invest, make the best possible use of time – remember, it’s the one asset that can’t be replenished.

Kitsap Event Schedule: We’re celebra�ng the en�re month!

TUES, NOV. 3RD 7:30 – 9:00 AM Kitsap Regional Library – Poulsbo; downstairs

POULSBO CHAMBER: BUSINESS U Small Business Finance Op�ons with Ruth Ann Halford, HomeStreet Bank. No Cost

WEDS, NOV. 4TH 7:30 – 9:00 AM KEDA, Bremerton

CONTRACTING COFFEE HOUR We answer your ques�ons on doing business with the government. No cost; coffee and doughnuts provided

TUES, NOV. 10TH 7:30 – 9:00 AM Clearwater Casino Resort, Suquamish

KITSAP BUSINESS FORUM Thriving in a Digital World (Panel presenta�on and discussion) No cost; con�nental breakfast provided by Clearwater Casino Resort

MON, NOV. 16TH 9:00 AM – 12:30 PM Norm Dicks Government Center – Council Chambers, Bremerton

CROWDFUNDING: WHAT TO KNOW BEFORE STARTING A CAMPAIGN

TUES, NOV. 17TH 7:30 - 9:00 AM Hop Jack’s, Silverdale

GOOD MORNING KITSAP A primer on small business loans presented by Kitsap Bank.

No cost

TUES, NOV. 17TH 5:30 – 8:30 PM Bremerton Elks Lodge, Bremerton

BE$T SHOWCASE Showcasing the products and services of over 40 BE$T clients.

No cost

WEDS, NOV. 18TH 9:00 – 10:30 AM KEDA, Bremerton

PTAC: SMALL BUSINESS PARTICIPATION PLANS The Source Selec�on Factor for providing a Small Business Par�cipa�on Plan may be a deciding factor in whether your firm or a large one wins the job. No cost

WEDS, NOV. 18TH 9:00 AM - 12:00 PM United Way of Kitsap County, Bremerton THURS, NOV. 19TH 10:30 AM – 1:00 PM Clearwater Casino Resort – Chief Kitsap Hall, Suquamish

Featuring Gregory Paley – 20+ years’ experience as advisor, entrepreneur and commercial a orney $35 registra�on includes 17 page work booklet

GROW YOUR BUSINESS WITH EMAIL+SOCIAL MEDIA Simple and powerful best prac�ces and considera�ons for the small business or nonprofit seeking more effec�ve newsle ers; No cost WSTA ANNUAL SUMMIT STEM, Educa�on and Workforce: Are We Doing Enough? $50 registra�on includes lunch

Visit kitsapeda.org/GEW for detailed informa�on and registra�on links Kitsap GEW is presented by the Kitsap Economic Development Alliance in partnership with: Bremerton Chamber of Commerce, Choose Washington, Greater Poulsbo Chamber of Commerce, Kitsap Business Forum, Kitsap Community Resources – BE$T, Silverdale Chamber of Commerce, WA PTAC, West Sound Technology Associa�on and WSU Extension - Kitsap

K I T S A P

More Opportunity. Spirited Community. The Best Place to Be.

Public Affairs Forum Thursdays, 7:30 AM November 5, 12, 19, 26

Notorious Networking Night Canceled due to the holiday.

Membership Luncheon Thursday, November 5th Speaker: Kamar Oyenuga

Business After Hours Wednesday, Nov. 18th 5:30 PM Host: U.S. Bank

Learn more at: www.gigharborchamber.net/calendar Connect With Us

At our Annual Awards Gala on December 5th, sponsored by U.S. Bank, we’ll once again celebrate those who inspire you and make Gig Harbor a great place to live, work and play—those special folks that enhance the vitality and spirit of our warm community.

Bravely raise your voice and nominate an individual that matters in one or more of these worthy categories: Non-Profit Community Service Organization

•

Business of the Year

•

Citizen of the Year

Submit your nomination, including a short paragraph on why your nominee should win, by November 1st to Jamie Taylor at jtaylor@gigharborchamber.com.

P A G E

•

C O M M E R C E

Nominate Someone That Inspires You

O F

“The $8,000 donation will help 80 students in need at every one of those schools to stay in school to graduate. The grateful kids who participate are expected to keep a minimum GPA and meet attendance requirements,” said CISP Director, Colleen Speers.

Other Upcoming Events

C H A M B E R

Communities in Schools is leading national dropout prevention organization. CISP serves our own community. In the last year alone CISP helped 3,304 Peninsula School District students overcome barriers to success. The sports scholarship fund covers sports program costs at 6 Peninsula middle and high schools serving poverty and income challenged areas.

Join us for an unforgettable evening at our Winter Wonderland Awards Gala on Saturday, December 5th featuring entertainment by Louis Ann Marler.

J O U R N A L

Fast forward. The shuttle service was a success and the Chamber voted to make a record $8,000 cash donation to the Communities in Schools of Peninsula (CISP) sports scholarship fund.

Dec. 5

B U S I N E S S

Thanks to its US Open shuttle service success the Gig Harbor Chamber of Commerce has funded sports program costs for kids in need at 6 Peninsula middle and high schools—the Chamber’s largest ever cash donation to a single organization.

It all began last spring when a Gig Harbor Chamber of Commerce committee was formed to explore US Open opportunities. The group decided to run an express shuttle from Gig Harbor to Chambers Bay. In line with the Chamber’s community focus they also resolved to earmark any net revenue to an area youth sports program.

WHAT’S HAPPENING NEXT?

P E N I N S U L A

Chamber Shuttle Funds Sporting Costs for Kids

16 | Saturday, November 7, 2015 |

Spa business buys foreclosed building for new location ■ Ole’s acquires part of bank-owned

Bethel Centre site in Port Orchard

By Tim Kelly

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

The owner of Ole’s Pool & Spa resisted the idea of being a hot tub retailer until a few years ago, but Ole Schow recently moved his business into a new location with a spacious showroom.

The spas are the big-ticket items but not the main source of revenue for his business, which is a reincarnation of one his father, Les, started in the 1970s. Schow built his business by offering

mobile repair service on swimming pools and spas, and selling chemicals and other supplies for maintaining them.

“That’s the whole key to our success; we’re not retail-driven,” Schow said on the day of his new store’s grand opening last month at 1521 SE Piperberry Way in Port Orchard. “We’re not a hot tub company that does service, we’re a service company that sells hot tubs. So the hot tub is an ancillary business stream to what we do and who we are.”

That’s why his business wasn’t

LARRY STEAGALL

Ole Schow, left, shows a Seahawks-themed hot tub to Sam Kerley of Wells Fargo SBA Lending at an open house at Ole’s Pool & Spa in Port Orchard on Oct. 23.

sunk by the recession, but in fact continued to grow.

However, since Ole’s started

Congratulations to Eric Behling!

Ted Brown Music is proud to celebrate the accomplishments of Eric as a young professional in our community. Eric’s efforts in serving people make us proud to have him be part of our team.

Congratulations Eric and all the honorees.

carrying Bullfrog Spas in 2011, hot tub sales have increased steadily and now account for nearly 25

percent of his business.

See OLE’S, 18

Beat the winter rush!

OIL • GAS • HEAT PUMPS • A/C

Duct Cleaning, Sealing, & Duct Repair, Electrical Panel Upgrades, & More!

Go Seahawks!!!

"Let us get your home cozy for football sundays!

Call today to schedule a home comfort consultation"

For more information on services we provide please visit us at: www.DanasHeating.com **Financing now available. See if you qualify today!**

TED BROWN MUSIC Your music is our passion!

3276 NW Plaza Rd. Silverdale, WA 98383 (360) 692-4030 tedbrownmusic.com

Family Owned and Operated Since 1997 Serving Kitsap County, the Kitsap Peninsula, including Gig Harbor & beyond!

360-876-7670 · 888-290-7670 • DanasHeating.com FREE Proposal on New Installs • Flat Rate Pricing • LIC# DANASHI000DZ

THANK YOU TO OUR SPONSORS! ďż˝ S

The Port Orchard Chamber of

CONTENT CREATION + PUBLISHING

EMAIL MARKETING

SOCIAL SHARING

SEARCH ENGINE OPTIMIZATION

All content published through $LN is optimized for mobile.

EVERYTHING YOUR BUSINESS NEEDS: Easy To Use Platform | Mobile Optimized Web Presence I Digital Marketing Training I Social Media Consulting I Bi-weekly Marketing Tips I Content Creation + Inspiration I Legendary Customer Support

PORT ORCHARD CHAMBER OF COMMERCE I 360-876-3505 1014 Bay St #3 Port Orchard, WA 98367 www.portorchard.com

S S

Peterson & Jake CPA Kitsap Sun Kitsap Bank Harrison Medical Center / CHI Franciscan Health

B S

My Prin ng Services Southard, Beckham Atwater & Berry CPA, PS Barry Doll Agency/ American Family Insurance

Need More?

360-876-3505

Get in the KNOW, www.portorchard.com 360.876.3505

P A R T N E R

The $LN platform allows you to enhance your digital footprint, create content, and share that content where it really matters: online, on social media, and through email marketing.

Business of the Year Award Peninsula Credit Union Small Business of the Year Award Peterson and Jake CPA Tourism/Hospitality Excellence Award Whiskey Gulch CoďŹ&#x20AC;ee Co. Professional Services Excellence Award Peninsula Credit Union Retail Excellence Award The Candy Shoppe Rising Star Business of the Year Award Port Orchard Auto Body Trade Services Excellence Award Air Masters Heaďż˝ng Young Professional Award Constance Blackburn Non ProďŹ t Service Award Elton Goodwin Memorial Foundaďż˝on

C O M M E R C E

Included in your benefit:

2015 Gully Award Winners

O F

Digital marketing is a challenge for every small business. It's our job to level the digital playing field. Chamber members now have exclusive access to $LN, a FREE member marketing benefit built to maximize online exposure, and increase sales.

Congratula ons

C H A M B E R

Commerce is proud to be teaming with Save Local Now to oďŹ&#x20AC;er Digital markeďż˝ng services to our members.

These services include Daily promo�ons and specials all distributed via the web and smart phone app!!!

K P B J

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Greater Kingston Chamber of Commerce & Visitor’s Informa�on Center

www.kingstonchamber.com 360-297-3813

DIANA KINGSLEY, ASID, IIDA, Realtor, John L Sco

PLEASE JOIN US FOR OUR SPECIAL SEAHAWKS/HOLIDAY LUNCHEON BUY TICKETS ONLINE AT

Diana is an outstanding member of our Chamber. She has served on our Board of Directors since 2013 and donates her �me and many talents to mul�ple community organiza�ons and events each year. As an Interior Designer and licensed Realtor, Diana is uniquely qualified to help you buy or sell your home. Staging? No problem, she’s an expert! Not sure the space is just right? Diana knows the reali�es of reworking or remodeling an exis�ng floor plan. As an added touch, Diana will provide you with an original sketch of your new home, for framing, postcards,

WWW.KINGSTONCHAMBER.COM

P A R T N E R

MEMBERS HELPING MEMBERS…. And then paying it forward...

September was a rough month for some of our local business owners. Sales were down for several of our retail shops, restaurants, coffee shops, etc. Stacy Patrick, owner of Lucky Star Clothing and Chamber Board Member, decided to take ma ers in hand and created the Kingston Cash � ack! Cash Mobs are flash mobs, but instead of singing and dancing we spend money as a group! We target local businesses to give the business owners an economic s�mulus. The first recipients of Kingston’s “flash cash mob” on Saturday, Oct. 16th, were the businesses of Cleo’s Landing that include Thistle Floral & Home, Sweet Life Cakery and D’Vine Wines. Shannon Cas�llo, owner of Thistle Floral & Home says “We saw a nice bump in sales and I really want to thank all the locals that turned out for the event . Next month, I will plant the a ack and we’re going to target Li le City Candy Co., so be ready!”. Follow Kingston Cash A ack on Facebook.

C O M M E R C E

This free family event is held on the first Saturday of December each year. Enjoy live music, free cookies and hot cocoa, sing-alongs and give-aways. Santa arrives via Fire Engine at 5pm, just in time to flip the switch that lights the beautiful tree and acres of brilliant light sculptures throughout Mike Wallace Park at the Port of Kingston. The bon-fires, Food Vendors and Beer/Wine Garden open at 4pm. Don’t miss it!

O F

Saturday, Dec. 5th 3:30pm—8pm

C H A M B E R

FUNDRAISER & FOOD DRIVE

K P B J

WELCOME NEW PATRON MEMBER!

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| Saturday, November 7, 2015 | 21

20 Under 40 Class of 2015

Eric Behling

Kevin Bernt

Josh Farley

Firefighter / Paramedic, EMS educator Central Kitsap Fire & Rescue

Multimedia journalist Kitsap Sun

Store manager Ted Brown Music Company

Troy Cloe Petty Officer 2nd Class U.S. Navy

On Wednesday, Nov. 4 the latest class of our “20 Under 40” business leaders were recognized at the Admiral Theatre in Bremerton during the Kitsap Sun and Kitsap Peninsula Business Journal’s

Angelina Connery Executive director Prestige Care, Inc., Olympic Alzheimer’s Residence

annual program to honor young leaders in the region. Sponsors were Kitsap Bank, CHI Franciscan Health, Western Washington University and Gene Juarez Salons and Spas.

About Our 20 Under 40 Sponsors Established in 1908, Kitsap Bank is headquartered in Port Orchard, WA, operating 20 locations throughout Western Washington. With over $1 Billion in assets, the bank provides a full range of financial services to commercial and individual customers. Kitsap Bank has been named a Preferred Lender by the U. S. Small Business Administration, a Top Corporate Philanthropist by the Puget Sound Business Journal, and has been awarded a 5-Star rating by BauerFinancial, Inc., the nation’s leading independent bank rating firm.

Harrison Medical Center is a nonprofit healthcare organization offering medical, surgical, and emergency services at five locations-Bremerton, Silverdale, Port Orchard, Belfair, and Poulsbo-to serve the Kitsap and Olympic peninsulas. We are part of the CHI Franciscan Health family of services. To learn about Harrison’s many healthcare services, call (866) 844-WELL or visit www.HarrisonMedical.org. To learn more about CHI Franciscan Health, visit www.CHIFranciscan.org.

Established in 2014 to address the need for 4-year degree programs in the West Sound region, Western Washington University on the Peninsulas (Poulsbo) offers the same high quality instruction and rigorous academic standards as on the WWU-Bellingham campus.

We currently offer five degree programs, we will add two more next year, and we will continue to increase the number of higher education options as we grow.

WWU is happy to be here!

Gene Juarez offers salon & spa services designed to enhance your beauty and well-being. Our award-winning team undergoes rigorous training and continuing education to stay on top of the latest cutting-edge techniques and trends, to offer you an unparalleled level of service and skill. You can be assured that you are receiving personal treatments with results as individual as you.

22 | Saturday, November 7, 2015 |

20 Under 40 Class of 2015

Sylvenus S. Harris II Daniel Fredrick

Andrew George

Director of community development The Coffee Oasis

Manager-in-training White Horse Golf Club

Jeromy Hicks

Robyn Michele Gross Aquatics manager, Morale, Welfare and Recreation Naval Base Kitsap

Judges Candace Merrill of Western Washington University, Kathleen Knuckey of the Silverdale Chamber of Commerce, Bob Guyt of Blue Architecture, Brian Johnson of The Admiral

Drummer, Ebenezer AME Church Electrician, Puget Sound Naval Shipyard and Intermediate Maintenance Facility

Fire prevention captain, paramedic North Mason Regional Fire Authority

Theatre and Brent Morris of the Kitsap Sun selected the honorees from a ďŹ eld of dozens of nominations for talented individuals making a difference.

Proud Sponsor of the 20 Under Forty Awards Congratulations to all the outstanding young executives who comprise the Class of 2015, including our own, Jennifer Ruckman!

Jennifer Ruckman Branch Manager East Bremerton

www.kitsapbank.com â&#x20AC;˘ 800-283-5537

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| Saturday, November 7, 2015 |

20 Under 40 Class of 2015

Mallory Morrison Assistant artistic director/ manager, Peninsula Dance Theatre Director/studio owner, Bremerton Dance Center

Alicia Nickerson

Brian J. Nolder

Jennifer Ruckman

KristiAnn Stecker

Owner Maxwell Salon

Departmental leading petty officer Navy

Branch manager Kitsap Bank

Branch manager First Federal Bank

All recipients are listed here, and congratulations to everyone who was selected. To read more about each individual and see the list of

nominees, pick up a special section that will be included in the Kitsap Sun edition of Thursday, Nov. 5, or visit www.kpbj.com/20under40.

Our best care.

Your best health.SM Harrison Medical Center Bremerton & Silverdale

Harrison HealthPartners Bainbridge Island Belfair Bremerton Forks Port Ludlow

Port Orchard Port Townsend Poulsbo Sequim Silverdale

To learn more about us, visit harrisonmedical.org or call (866) 844-WELL.

| Saturday, November 7, 2015 25

TECHNOLOGY | CHARLES KEATING

Summit will explore what’s needed in education

I

am a huge fan of technology.

That’s expected, or my business (and position as head of the West Sound Technology Association) would be an odd choice indeed. Amazing things have come to the market already or are coming soon in computers, info tech, transportation, medicine, energy.

Like a movie we know the general plot, but then there are unexpected twists and turns, thrills and more than a few scares. Our Western Washington Summit 2015 coming up on Nov. 19 — “STEM, Education, and Workforce: Are We Doing Enough?”

— is like that. The plot is about education system changes, but there are curves and twists you may not expect, things are moving faster than people expected, and the kicker is it’s not just about education but about all of us. We are all important characters in the evolving story.

Unlike a fictional plot, this journey to an innovation- and technology-driven economy is happening around us, and we have to make choices that have consequences personally and for our community. I recently attended the Washington Technology Industry Association’s (WTIA) FullConTech conference in Seattle, with 300 tech innovators and other leaders from the region and around the world. We were part of a dream team charged with discussing technology change and its impact on society and education, and the needs for supporting See KEATING, 33

PHOTOS BY MEEGAN M. REID/KITSAP SUN

Ian McFall talks about the building instructions that his company is following for the construction of the plane in his hangar at Apex Airpark.

LEARNING ON THE FLY

■ Silverdale company builds planes, teaches young workers

By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

The world headquarters of the Mac Aero airplane company takes up half of a hangar in a Silverdale backyard.

On a recent day in the shop, Mac Aero founder Ian McFall and employee Garrett Stanley were at work on the company’s latest project, a four-seat, 200 mph Van’s RV-10 kit plane. Plywood boxes the plane parts arrived in still leaned against the hangar walls.

“You start out with a lot of flat aluminum and a packet of rivets and turn it into an airplane,” McFall, 74, said.

Of course, it’s not quite as simple as that. McFall’s employees, four cadets in the Civil Air Patrol’s youth program, ages 16 to 18, have spent more than a year painstakingly

assembling the RV-10. They’ve sunk thousands of rivets, shaped f iberglass and composite components, fab ricated metal parts and wired in complex autopilot systems, all to exacting specifications.

The 24-footlong plane has gradually taken shape in the hangar. Its slender f u sel a ge awaited wings and a final jacket of aluminum Tuesday. In the Garrett Stanley cuts part of the engine cover. next few months the plane will be flight tested, McFall views his business disassembled and shipped to a as a training academy as much buyer in South Africa. as a moneymaking operation.

Mac Aero might be a tiny company, building a tiny plane, but the skills his young employees learn assembling the RV-10 can be applied on a far larger scale.

“Most of the things involved in building a full-sized airplane are involved in building this,” McFall said.

McFall had education in mind when he launched Mac Aero early last year at his home off Apex Airpark. The longtime pilot once was a cadet himself in the British equivalent of the Civil Air Patrol. He now serves as a glider instructor for local cadets.

McFall staffed his fledgling company with eager aviation students, hiring Garrett Stanley and fellow cadets Christian Stanley, Keenan Boudon and Joseph Buxton.

“The most exciting part is the young people we’ve gotten in here,” McFall said. “They’re all aviation enthusiasts. That’s the kind of people we want, the people who are driven to do this kind of thing.”

To begin with, all of Mac Aero’s finished airplanes will be exported to South Africa, where McFall has family. South African customers are hungry for small planes that can shorten travel times between the country’s far-flung cities or whisk tourists into the back country.

The speedy, efficient RV-10 “is an ideal plane for that,” McFall said.

The company’s employees started work on the plane in August 2014. Mac Aero already has an order for a two-seat RV-8 to start once the RV-10 is shipped.

McFall would like to expand Mac Aero into a full-fledged school, taking on more plane projects and more students. The program could become a jumping-off point for jobs in the state’s aerospace industry, he said.

“They’ll walk away with a skill and be ready to be hired by someone like Boeing or Alaska Air,” McFall said.

Garrett Stanley, who has reached the rank of cadet colonel in the Civil Air Patrol, has other plans. He’s pursuing a career as a military pilot.

“I do this because it pays me,” he said, taking a pause from his work. “I’d much rather fly them.”

| Saturday, November 7, 2015 26

Business Briefs Finalists named in bank’s small business competition Two Kitsap County businesses are among the five finalists announced in Kitsap Bank’s second annual edg3 Fund small business competition. These companies, chosen in part by a public vote, will move on to compete in the final phase of the competition, edg3 Fund Live, on Thursday, Nov. 12 at 5:30 p.m. at Kitsap Conference Center in Bremerton. The finalists will present their pitches before a live audience and an independent panel of judges, and the winner will be awarded $20,000.

“We were very impressed with the caliber of businesses represented in our semifinalist grouping, and their commitment to bettering their communities is truly inspirational,” Kitsap Bank president and chief operating officer Tony George said in a news release. “The five finalists selected represent diverse industries and back-

Event will showcase BE$T program entrepreneurs The Kitsap Business Education, Support and Training (BE$T) program will hold its annualshowcaseTuesday,Nov.17,featuring the products and services of 35 local companies.Theeventwillbefrom5:30-8:30p.m.at the Bremerton Elks Lodge, 4131 Pine Road.

Kitsap BE$T got its start in Bremerton 14 years ago as an extension of the Washington CASH (Community Alliance for Self Help) program in Seattle. Current and past graduates of the program will be showing their goods and services.

Now administered through Kitsap Community Resources, the BE$T program provides a proven eight-week business training program and peer-based support group to enterprising individuals so that they may gain self-sufficiency through small

Crowdfunding workshop offered for entrepreneurs Washington State University Extension and the Kitsap Economic Development Alliance have partnered for Global Entrepreneur Week to bring Gregory Paley to Bremerton on Nov. 16 to give a workshop on crowdfunding, an online method for raising capital, promoting products and services, and attracting new customers.

In a few short years, the amount of pledg-

grounds, ranging from renewable energy to a veteran-owned business that creates items in and from war-torn communities.”

Purpose Boutique in Bremerton and The Smithshyre farm in Poulsbo are the two finalists from Kitsap County. The other finalists are Combat Flip Flops of Bellevue, Community Supported Biocycling of Seattle, and OlyKraut of Olympia, which also was an edg3 Fund finalist in the inaugural competition last year.

The public is encouraged to attend the Nov. 12 event and support their favorite finalist. Tickets are available at edg3fund2015.brownpapertickets.com.

The judges for the final presentations will be David Giuliani, co-founder of Washington Business Alliance; John Eisenhauer, founder and CEO of Kombi Corp. on Bainbridge Island; and Jill Bamburg, president and co-founder of Pinchot University in Seattle.

The mission of edg3 Fund (rhymes with hedge fund) is to recognize entrepreneurs dedicated to growing their community in three ways: economically, socially, and environmentally. The bank received numerous applications from entrepreneurs throughout Western Washington representing industries ranging from food/ beverages and tourism to arts, education and agriculture. business ownership. Over the years, the program has helped over 1,000 graduates to realize their dreams.

Bremerton Mayor Patty Lent, a longtime supporter of the program, will speak at the graduation of the fall BE$T class, also held at the Nov. 17 event.

The businesses created by graduates of the program range from Texas-style barbeque to industrial powder coating. “The showcase is a great way to show Bremerton and the county the remarkable people who have created businesses serving and supporting our area,” said BE$T coach and mentor Beth Shea , who is also a graduate of the program and serves on the BE$T Friends citizens advisory group.

For more information about the holiday showcase and upcoming new class sessions, contact Kitsap BE$T at 360-473-2141 or www.kcr.org/best.htm. es and money raised through crowdfunding has surpassed the $2 billion mark in the United States and abroad. However, while a few high-profile crowdfunding projects have piqued the public’s interest, the reality is that a majority of crowdfunding projects never achieve their funding goals and in many cases leave project creators confused and disillusioned. So what separates the successful projects from those that have sent creators back to the drawing board?

In this workshop, Paley will introduce

business owners and entrepreneurs to the crowdfunding phenomenon and provide a road map for deciding if crowdfunding is right for their business or idea. The workshop should give participants a thorough understanding of how this strategic business and funding model has changed the way companies view their businesses, the competitive landscape and their customers.

Paley has more than 20 years’ experience as an adviser, author, founder and commercial lawyer, and he pioneered the

development of geo-domains and the creation of online communities. Since 2013, he has advised hundreds of entrepreneurs and early-stage companies and frequently speaks on entrepreneurship.

The workshop will be from 9 a.m. to 12:30 p.m. at the Norm Dicks Government Center, 345 Sixth Ave. More information about the event can be found at http:// ext100.wsu.edu/kitsap/event/crowdfunding-what-to-know-before-startinga-campaign/.

Retirement

$6,500, if you’re 50 or older – to an IRA. A traditional IRA offers tax-deferred earnings, while Roth IRA earnings can grow tax free, provided you don’t start taking withdrawals until you’re 59½ and you’ve had your account at least five years. Plus, you can fund your IRA with virtually any type of investment you choose. Try to “max out” your IRA every year.

• Control your debts. Control your debts as much as possible. Every dollar that doesn’t go into a debt payment could be invested for your retirement.

These aren’t the only steps that can help you move toward a comfortable retirement – but they can certainly help get you on the right path.

from 14

A 401(k) or similar plan is a great way to put money away for retirement, because your earnings can grow on a tax-deferred basis. And you may have a dozen or more investment vehicles within your 401(k), so you can build a portfolio that’s appropriate for your goals and risk tolerance. In 2015, you can contribute up to $18,000 to your 401(k), or $24,000 if you’re 50 or older.

• Fully fund your IRA. Even if you participate in a 401(k) or other employer-sponsored retirement plan, you’re probably still eligible to contribute to an IRA as well. In 2015, you can contribute up to $5,500 – or

LOOK WHO’S JOINED OUR TEAM

MARTHA LYDA (Settlement Agent/LPO) Bainbridge Island Office

AND

KELSEY COOPER (Escrow Assistant) Silverdale Office

Martha and Kelsey bring with them many years of experience in the escrow industry.

Their knowledge and talent in our trade makes them excellent additions to our team and we are thrilled that they are here.

Please join us in welcoming them to our Pacific Northwest Title family.

SILVERDALE OFFICE 360-692-4141 • 800-464-2823 2021 NW Myhre Road, Suite 300 Silverdale, WA 98383

BAINBRIDGE ISLAND OFFICE 206-842-2082 • 800-884-7636 921 NE Hildebrand Lane, Suite 200 Bainbridge Island, WA 98110 www.pnwtkitsap.com

Silverdale, the heartbeat of Kitsap Peninsula

K P B J O F

Debbie Gilman Photography Debbie Gilman, owner Seabeck, WA (360) 471-6036 debbiegilmanphotography@gmail.com Robin A. Morris—Jenny Craig, Silverdale Robin Morris, Manager 3299 NW Randall Way, Suite 105 Silverdale, WA 98383 (206) 228-0847 sirachaoneverything@yahoo.com

Clam Island Band, at a Christmas Tree Lighting in a year gone by...

Dana Post—Keller Williams West Sound Realty 4373 NW Hosman Circle Silverdale, WA 98383 (360) 990-0998 danapost@kw.com Swarner Communications Frank Portello 248 Wilkes Street Steilacoom, WA 98388 (360) 649-2715 fportello@northwestmilitary.com The Graphics Ranch Laurie Berg Seabeck, Wa 98380 (360) 830-4216 laurie@thegraphicsranch.com laurie@

C H A M B E R

Welcome to new members

November Chamber Events Comedy Night

General Membership Luncheon November 18, 11:30 am – 1 pm Join us while we honor our Innovator in Education, CK School District Superintendent David McVicker Kitsap Golf & Country Club 3885 NW Golf Club Hill Road Bremerton, WA 98312

Credit for all photos: Gary Bowlby Photography © 2015

Good Morning Kitsap 1st & 4th Tuesday Coffee Networking 7:30 – 9:00 am 3rd Tuesday, November 17 “A primer on small business loans presented by Kitsap Bank” 7:30 – 9:00 am Registration: (360) 692-6800 Hop Jacks, 3171 NW Bucklin Hill Road, Silverdale

Job Shadow Day November 20 Interested Silverdale businesses please call (360) 692-6800

Kitsap Business Forum 2nd Tuesday, November 10 7:30 – 9:00 am “Thriving in a Digital World” (panel presentation and discussion) Suquamish Clearwater Casino Resort

Silverdale Chamber of Commerce 2015 Auction & Dinner Gala November 7, 5:30 – 11:00 pm “Looking Back, Moving Forward” Suquamish Clearwater Casino Resort Tickets: www.Silverdalechamber.com or 360-692-6800

WSTA Annual Summit Thursday, November 19 10:30 a.m. – 1 p.m.

“STEM, Education and Workforce: Are We Doing Enough?”

Annual summit promoting innovation, education, and entrepreneurship.

Registration: www.westsoundtechnology.org Suquamish Clearwater Casino Resort, Chief Kitsap Hall

Silverdale Chamber of Commerce ~ 3100 NW Bucklin Hill Road, Suite 100, Silverdale, WA 98383 ~ (360) 692-6800 ~ www.SilverdaleChamber.com

P A R T N E R

November 20, 6 – 9 pm For tickets call (360) 692-6800 Cloverleaf Sports Bar & Grill

Member of the Month, Priority One Realty

C O M M E R C E

Good Morning Kitsap, Kitsap Rifle & Revolver Club Executive Director, Marcus Carter

| Saturday, November 7,

Alternative reality: Kitsap touted as affordable option ■ Panelists at KEDA event assess region’s real estate market

By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

Come to Kitsap, you stressed-out Seattleites.

Cross Puget Sound and you can save money on housing and spend less of your life trapped in traffic.

You might even use that mountainbikethat’scollecting cobwebs in your closet.

Bring your company with you ... and your employees, too. They’ll love it here. Trust us.

It’s a straightforward pitch, and one that could prove effective in marketing Kitsap County to its neighbors across the water, according to a panel of real estate professionals who spoke Oct. 22 in Suquamish during a Kitsap Economic Development Alliance forum.

“Maybe with a little bit of encouragement, they might see Kitsap for what it really has to offer,” said Teresa Osinski, executive vice president for the Home Builders Association of Kitsap County.

What Kitsap has to offer, the panelists said, is relatively affordable housing, a steady employment base, inexpensive development land and a steadily improving economy. All that might sound pretty good to King County residents feeling squeezed by rising prices and a ballooning population.

“We don’t compete with Seattle,” said Chris Rieland, CEO of Pacific Northwest Title. “We’re not a major metropolitan city. But we do offer an alternative.”

CHEAPER HOUSES Any sales pitch for Kitsap County can start with

WE DON’T COMPETE with Seattle.

We’re not a major metropolitan city. But we do offer an alternative.”

— Chris Rieland, CEO, Pacific Northwest Title

should eventually help free up more home listings in Kitsap. So should a glut of new homes being permitted.

As it stands, Kitsap has been a very active seller’s market in 2015, said Casey McGrath, managing broker with Windermere Pouls-

bo. Total home sales have soared past $1 billion this year, a threshold barely reached in 2014.

“Clearly the recovery is well underway,” McGrath said. “It’s fun to see it basically coming back to life.”

RISING RENTS Demand for homes is high in the region, but many families, and especially those restless Millenials, aren’t interested in tying themselves to a mortgage.

“We are becoming a renter nation,” said Wes Larson, whose Sound West Group is behind a number of prominent construction projects in Kitsap, including the Spyglass Hill apartments in Bremerton.

Prospective renters will find cheaper rates in Kitsap than on the east side of Puget Sound. Rents are rising in the county, however.

Larson expects the current of about $1.25 to $1.50 per square foot to trend up to $2 per square foot in the next few years.

A short supply of apartments is helping drive that trend. Kitsap has the lowest vacancy rates in the region and hasn’t begun to

28

match Seattle’s apartment building boom. Low supply and increasing rent should entice new development, Larson said.

“There’s just not enough product coming on fast enough,” Larson said. “Anybody who has kids out there looking for apartments knows it’s difficult.”

COMMERCIAL OPPORTUNITY Good deals in Kitsap aren’t limited to houses and apartments. Rent for office and retail space in Kitsap generally is significantly cheaper than in Seattle and the east side of Lake Washington, said Rick Cadwell with commercial real estate firm Cushman & Wakefield.

Cadwell said rents for industrial land in Kitsap may be comparable to King County, but industrial land is cheaper to buy on the peninsula. Combined with a lower cost of living, Kitsap can be an appealing package for employers, Cadwell said.

“If you have the fortitude to think you’re going to be here a long time, it makes See ALTERNATIVE, 42

LARRY STEAGALL

Construction on the 606 Apartments on Burwell Street in Bremerton.

prices.

Home prices are increasing in the county, but they’re increasing at a gradual pace. The median price for homes so far this year is up about 7.5 percent from 2014.

Houses and condominiums in Kitsap sold for a median price of about $250,000 in September, compared with $420,000 in King County. Osinski said newly built homes can be had on the peninsula for about $300,000.

“To anyone familiar with what’s going on on the other side of the pond, 300,000 sounds like a heck of a bar-

gain,” she said.

There are bargains to be had in Kitsap, provided a buyer can snag a home that suits them. The county real estate market still is hampered by a low supply of houses available for sale (fewer than 1,000 were on the market last month).

Rieland said negative equity remains a nagging issue. A significant number of Kitsap homeowners owe more on their mortgages than their homes are worth.

“There are still a lot of people underwater,” Rieland said. “We are still closing short sales.”

An improving economy

PROPERTY DEVELOPERS: Broadband cable is today’s must-have utility. And if you are building in Kitsap County, then you need to call Wave!

Wave is the official data transport service provider in Kitsap County.

Save yourself time and money—if the utility trench is not yet back-filled or the inside walls are not yet put up, then there’s still time to avoid a post-wire of coaxial/fiber cable.

CALL WAVE TODAY!

360-871-5618 ext. 1704 WaveBroadband.com

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

Thursday, November 5 Developers Council, 7:30am

Wednesday, November 11 HBA Office Closed Thank YOU Veterans!

Wednesday, November 18 HBA Remodelers Council, 4pm Special DATE!

Thursday, November 19 SPECIAL DATE Executive Comm. Mtg., 2:00pm Government Affairs Comm., 2:30pm Board of Directors 3:30pm Thursday, November 26 Friday, November 27 HBA Office Closed Enjoy your Thanksgiving Celebrations!

We are thankful to have such a great Association of members!

Enjoy!

MARK YOUR CALENDARS:

Tuesday, December 15 Build A Better Christmas Gift Wrapping Event & Social 3pm at the HBA Thursday, December 17 SPECIAL DATE Executive Comm. Mtg., 2:00pm Government Affairs Comm., 2:30pm Board of Directors 3:30pm Friday, January 8 Installation & Awards Banquet Kitsap Golf & Country Club, 6pm Register online today! www.kitsaphba.com

Membership and Housing Starts

By David Crowe, NAHB Chief Economist National Association of Home Builders Eye on Housing, October 7, 2015 Home building is coming back even if it is a slow return. The collapse was severe; likely equal to the 1930s if we had the same detailed data then that we do now. Both single-family and multifamily construction dropped rapidly during the period 2006 to 2009 but multifamily rebounded quicker and stronger and by 2014 outperform any recent year.

Single-family building fell from 1.7 million per year in 2005 to 430,000 in 2011, a 75% drop. Activity has struggled back up to the 700,000 range or about 60% better than the lowest year. Comparing the extremes to a longer term average, the peak in single-family construction was 70% higher than the 40 year average of just over 1 million units a year. Current levels are now 70% of the long term average.

The economy and potential home buyers are recovering and the modest housing revival is expected to continue and even speed up a bit. NAHB forecasts a total of 719,000 single-family starts in 2015 and 914,000 in 2016 or about a 200,000 unit increase in production.

Will we have enough builders and suppliers to handle this expansion? The housing industry lost capacity during the crash and some part of that capacity has not returned. The NAHB membership fell by almost half. Using the same metric as the single-family construction comparison above, the long term average level of builders and associates has been 182,400. At the peak, membership was 30% greater than the average and at the trough was and is 70% of the average.

This comparison demonstrates that the growth in membership was not as great as the growth in production, suggesting the average output per member increased.

Conversely, the drop in membership was not as severe as the drop in production, suggesting that home builders hung on even when production per company fell.

Both membership and single-family production are currently at about the same level relative to long term trends.

While a simple measure, the comparison suggests the industry has not grown any new companies because output is at about the right level for the number of companies. Another equally simple comparison makes the same point. Single-family production is about half the level it was in the early 2000s, perhaps the last time the housing market was close to a normal market. Likewise, NAHB membership, as a proxy for industry capacity, is about half way back to where it was before the boom and bust.

In addition to whether production levels are sufficient to entice more entrepreneurs into home building, the conditions for establishing a new company are more difficult. Supply costs are rising, debt and equity are more difficult to raise because of investors recent memory and the uncertainty about the future has risen. Basic profit motive will eventually induce more resources, more new companies and more capital as the industry continues on the expected course and more consumers emerge to buy their first or move-up home.

2016 HBA Installation & Awards BASH! Please join us on Friday, January 8, 2016, for the annual celebration of the HBA! All our members and friends are encouraged to register, and attend this important, annual celebration. We will welcome our new Officers and Directors, celebrate our members, and award the coveted “of the year” recognitions.

You can register on our website at www.kitsaphba.com by navigating to the HBA Events and News page. Using the calendar, just click on the January 8, 2016 event.

You can also phone the HBA (360-479-5778). Join us! We want to celebrate with you!

2002 Officers President.................................. David Smith 1st Vice President...............John Armstrong 2nd Vice President ................ Rick Courson Secretary .................................Dee Coppola Treasurer ....................... Randy Biegenwald Immediate Past President....Michael Brown

2002 BOARD OF DIRECTORS Builder................................Dale Armstrong Builder........................................ Kurt Craig Builder.................................... Jeff Davision Builder............................ Robert Lubowicki Builder.........................................Ken Orlob Associate ......................... Richard Bruskrud Associate .................................. Paul Eckley Associate ............................ Larry Elfendahl Associate ...............................Cheryl Gallup

2002 STATE DIRECTORS Dale Armstrong • John Armstrong Lary Coppola Gale Culbert • Cheryl Gallup Carolyn Frame • Michael Brown John Schoendorf Doug Woodside

LIFE STATE DIRECTORS Bill Parnell • Pat Wiles

2002 NATIONAL DIRECTORS Gale Culbert • Mike Brown • David Smith

LIFE DIRECTORS Bob Helm • Bill Parnell • John Schufreider Jim Smalley • Larry Ward • Pat Wiles

COUNCIL & COMMITTEE CHAIRS Remodelers Council...........Charlie Mackall Membership ............................ Gale Culbert Legislative Policy...............John Armstrong Past Presidents & Bylaws ...Michael Brown Peninsula Home & Garden Expo....Jim Coleman Parade of Homes ................. Carolyn Frame Golf Tournament ..........................................

Build A Better Kitsap .........Doug Woodside

HBA STAFF & SUPPORT SERVICES Executive Vice President ........... Art Castle acastle@KitsapHBA.com Government Affairs Director Alan Martin amartin@KitsapHBA.com Office Manager/Events Coordinator ................. Deb Heller info@KitsapHBA.com Membership Specialist ............... Fae Smith fsmith@KitsapHBA.com Office Assistant/Build A Better Kitsap Coord ...............Shanna Baird ................................ sbaird@KitsapHBA.com

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

www.KitsapHBA.com

Kevin Ryan Tim Ryan Construction

Teresa Osinski CGP

President, 2015 Executive Vice President Fall Back and Give Thanks As I write this article I am reminded that as we enter prepare to fall back for the annual time change it is a great time to give thanks. Whether it be the brisk construction market, inflation staying in check, low unemployment numbers, great employees, great HBA members and staff you name it.

We are all experiencing the surge in construction activity and for that we must be thankful. It was not long ago when I can remember driving around town and not seeing any new construction activity at all. The site of new plywood shimmering on the exterior of a building or the smell of fresh concrete are just a few of the things your senses react to when you have been brought up in the Construction Industry and you notice when business comes back around.

Last month the HBA held its annual Peninsula Home & Remodel Expo.

I want to personally thank all of those who worked so hard to make this show a success. This great event allows one on one access to numerous vendors and local contractors who are there to assist you with your next project. If you were not able to attend and have a project that you need direction on, please call the HBA or visit our website for a directory. The continued support of local businesses will help to grow your own business and continue to build a strong community where we live and work.

Many in our industry are avid outdoors enthusiasts and in our industry there are many who appreciate this time of year to go hunting prior to the Thanksgiving Break. Just this morning I had placed a call to one of our subcontractors and he called me back while sitting in his tree stand anticipating the sun rise and of course a glimpse of a black tail deer. I know of no other industry where the integrity of working man and woman is so proudly displayed on a daily basis. To care enough to call back and discuss a project at such a pivotal moment says a lot.

Give thanks to your subcontractors, suppliers, your employees, and family more often as they are the cornerstone of your business success.

Register Now for the Next International Builders Show!

The National Association of Home Builders (NAHB) will again be co-locating the International Builders Show with the National Kitchen & Bath Industry Show (KBIS) in Las Vegas from January 19- 21, 2016. This annual event will offer more than 400,000 net square feet of exhibits and 1,300 manufacturers and suppliers.

IBS combined with the KBIS will offer you the information about the most in-demand products and services on the market today. Over 125,000 builders, contractors, remodelers, designers and all other types of trades will gather in Las Vegas for this event.

Get all the registration information by visiting www.buildersshow.com or going to the HBA website (www.kitsaphba.com) and using the IBS link on our home page (lower right corner). Anyone in the industry, member or not, is encouraged to make this trip.

IBS is not to be missed!

The Home Builders Association of Kitsap County has a long and rich history supporting and advocating for construction companies, and the other trades that depend upon them. For 60 years, this Association has grown in membership and expanded its offerings and features of membership. Itâ&#x20AC;&#x2122;s a proud organization with a proud history. The longest memberships, members more than 40 years, belong to: Puget Sound Energy (49), Cascade Natural Gas (48), Evergreen Lumber (46), Land Title Company (45), and Armstrong Homes (44). These are incredible companies that have shown decades of support to the HBA and its members.

At the 2014 General Membership meeting the members in attendance voted unanimously to support a 2015 effort to consider the name of the Association.

That work has been ongoing since that meeting, and throughout the year I have reported the status in this newsletter and in other reports. It has been discussed at length by the HBA Board of Directors, and many members have been personally contacted by and participated in the process. At the recent 2015 General Membership Meeting the members present voted to change the name of the Association. With a quorum per the bylaws, the companies present voted on the question of the Associationâ&#x20AC;&#x2122;s name. The vote carried with a count as follows: 36 yes, 1 abstention, 5 no.

The next step will be to select an image/ brand/ logo to go with the newly chosen name. The roll out of the new name and look will be scheduled for some time in 2016. Watch for another General Membership Meeting to be announced. Also the chosen name must be approved by the National Association of Home Builders Board of Directors at an upcoming National Board Meeting. So there is still work to do in this process.

As a member of the HBA, please watch for opportunities to engage on this matter. Your input is valued and is essential to ensure the Association is able to continue to grow into the next 60 years. The new brand to go with the name should be strong, classic (not trendy), and represent a vibrant and dynamic organization. To grow we must bring along the younger company owners that may not fully understand why they need a trade association like this one. Many of the long standing members will tell you they are members because they want to support the industry, and do their part.

Younger company owners may not fully grasp that yet, but they can appreciate what the Association can do for them. For less than $1.50 per day, the features of membership are incredible. The opportunity for ROI is great.

An updated name that is more inclusive, with branding that includes images and color palettes more appealing to the new emerging market may help to attract those younger companies to the Association.

If you have questions about this process and how to get involved please call me. I am happy to update you on the activity to date and to connect you to the meetings to discuss this further.

With 60 years of building a beautiful Kitsap, the Association, regardless of what it is called, will continue to serve the construction industry and advocate for affordable housing. Together we are stronger, more influential, and more successful. Membership is optional but the rewards are there for the taking.

Do business with members! If you have subcontractors, or other service providers in your contacts list that arenâ&#x20AC;&#x2122;t members, please offer them the opportunity to join you as a proud member of the largest, most respected, construction trade association in Kitsap County.

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THANK YOU RENEWING MEMBERS 37 Years First American Title Ins. Co. 26 Years Arborview Construction Inc. 25 Years Joe Gates Construction Inc. 20 Years TEC Construction Inc. Over 15 Years Advanced Heating & Cooling Inc. (17) Stan Palmer Construction Inc. (17) Kitsap Lumber & Hardware Inc. (17) Port Orchard Glass LLC

Over 10 Years Coyote Hollow Woodworks Inc. (13) Heartstrings Construction Inc. Sunset Electric NW Inc. 10 Years Michael F Wneck PE PS Over 5 Years TN Miller Remodeling (9) Sierra Pacific Windows (9) Olympic Ridge Inc. Over 1 Year Kitsap Propane (3) Century Insurance Services, LLC (3) Davis Exteriors LLC (3) Rodgers Landscaping One Year Port of Allyn

MEMBERSHIP BUYING POWER Sound Media affiliated to member company, Sound Publishing is offering you an affordable media-based Business Development package!

HBA members only can access a terrific opportunity to purchase a Business Development package to include: A professionally designed logo; a branding style guide; a 5 page website to include hosting and 1-year maintenance agreement; branded social media set-up; and, limited black & white print advertising and online advertising. All this for just $4,500.

Getting set up with a comprehensive media campaign can be daunting, but Sound Media has a system developed to help you cover your bases and build brand awareness for your company quickly and affordably.

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Peninsula Home & Garden Expo 2016 It’s time to start thinking about the 2016 Peninsula Home & Garden Expo. If you’ve been a vendor in any of our previous fall or spring events you should receive a packet in the mail sometime before the end of November. If you haven’t been a vendor, or you don’t receive your packet, you can find all the documents on our website at www.kitsaphba.com by clicking on any Peninsula Home & Garden Expo icon. All the information is available on the site, but call the HBA office any time if you have questions (360-479-5778). We look forward to assisting you and helping you to register for this annual home & garden event!

The Peninsula Home & Garden Expo is an exciting event full of businesses from Kitsap and the Puget Sound region. We will be holding our 3rd annual Building Challenge for area children using Lego™ brand building blocks. Also back this year will be the visitor scavenger hunt. Vendors that choose to may pay an additional fee to have their company on the scavenger hunt card for visitors to locate, receive a stamp from, and then enter to win a daily prize.

We hope to bring back the Garden Art Walk and we have secured Ciscoe Morris for another informative and fun presentation and Q&A. All this and more are sure to bring in the public to meet you and learn all about the services your company offers.

The 2016 Peninsula Home & Garden Expo will be March 18-20 at the Kitsap County Fairgrounds. If you’re interested in being a vendor, please don’t hesitate to call the HBA with your questions (360-479-5778). We look forward to another terrific weekend getting Kitsap’s best companies in front of their new customers.

2016 Officers & Directors Elected at October Luncheon On October 8, the HBA held its annual General Membership Luncheon Meeting. We had a terrific turn-out and were particularly pleased to have both Commissioner Ed Wolfe, and Kitsap County Assessor Phil Cook.

As always the Kitsap Golf & Country Club made a wonderful lunch, at an affordable price that everyone enjoyed. If you are considering a large event for your office, a family wedding, or a club event, be sure to check out the Kitsap Golf & Country Club!

The essential work conducted at the Annual Meeting was done swiftly and unanimously; the election of the 2016 Officers and Directors. Please thank the following volunteer leaders of the HBA. These busy folks have been elected to serve on the HBA Board of Directors. OFFICERS: President: Kevin Ryan, Tim Ryan Construction; Immediate Past President: Judy Eagleson, Mentor Company; 1st Vice President: Miriam Villiard, Heritage Builders NW; 2nd Vice President: Berni Kenworthy, Team 4 Engineering; Secretary: Brent Marmon, Pacific Northwest Title Company; and Treasurer: Leslie Peterson, Liberty Bay Bank.

BUILDER MEMBERS: Ellen Ross-Cordoso, Royal Valley, LLC; Walter Galitzki, Sun Path Custom Construction; Shad Smallwood, Smallwood Design & Construction Inc; and Brendan McGeer, The Property Group (completing the last year of a vacated term). Completing the second year of a two year term are: Bill Broughton, Broughton Law Group and Jim Heins, Jennings-Heins & Associates Inc. ASSOCIATE MEMBERS: Chad Lyons, Lyons Painting; Stuart Hager, Hager House LLC; and Jo Pederson, Miles Yanick (completing the last year of a vacated term). Completing the second year of a two year term is Joe Hurtt, Kingston Lumber Supply Company. STATE DIRECTORS (not already listed in other positions above): Wayne Keffer, WRK Construction; Justin Ingalls, Kitsap Trident Homes; Robert Baglio, The BJC Group, Ron Perkerewicz, Inspection & Permit Services; Lary Coppola, Port of Allyn; Rick Cadwell, The Cadwell Group; Byron Harris, BDH Holdings; and Kevin Hancock, Evergreen Home Loans.

All other board members (not identified above): Shawnee Spencer, First Federal; Mike Brown, FPH Construction; and Jeff Coombe, JCM Property Management.

| Saturday, November 7, 2015 33

Closed Poulsbo pub will reopen as New Orleans-style jazz café The former Hare & Hounds pub in downtown Poulsbo closed in October, and the owners are remodeling the place to reopen in November as Café Jacamoe.

By Tim Kelly

aged the interior and added to the work needed to remodel the building.

The couple, who also own Tizley’s Europub

downtown, bought Hare & Hounds in 2010 from the original owners. Mattson said the time seemed right to create a new identity for

the pub with its outdoor courtyard on a corner of Front Street.

They opted for a New Orleans vibe because of their affinity for the culture of the city known as The Big Easy.

“The New Orleans cuisine is the base of Rob’s culinary history,” Mattson said of her chef husband.

Mattson, whose father was a jazz musician, said the music will be as integral to Café Jacamoe as the new menu.

“The jazz club concept is going to come to life a little

major universities, organizations like code.org and codeacademy.com and others is a never-ending, all-you-can-eat buffet of knowledge.

It’s daunting to know where to start, and students in groups do better and learn from each other. This is where programs like the West Sound CoderDojos come in. Experienced mentors assist students age 8-18 with all levels of tech experience in self-paced exercises. In this flipped classroom model, students learn and study and then come together once a week to share and solve problems.

This is an extremely costeffective and impactful way of inspiring early interest in STEM education. The CoderDojo movement requires all classes to be free, so sponsors and partners in educational and noneducational institutions are required, not to mention many volunteers and mentors. Another benefit from the model is that parents are required to attend with their children, so it becomes a family exercise and they can learn with their children.

To consider the title question is the why. Early pioneering tech in robots and 3D printers is going mainstream now and transforming manufactur-

ing. Factories are not chasing cheap labor overseas anymore, but now follow capital, energy, effective legal systems, and most importantly, highly skilled tech workforces.

Self-driving cars are coming and expected to be widespread in less than 10 years. Imagine for a moment a fleet self-driving electric vehicles operating in an urban environment.

No pollution, no parking (freeing up a lot of space!), a roving fleet of electric Johnny Cabs waiting to whisk you from place to place, all on call from an app in your phone. Do you wonder how Uber grew from nothing in 2009 to a $50 billion valuation this year, raising a billion in funding and now worth more than General Motors that has been around since 1908, and more than 80 percent of the S&P? Uber has hired self-driving car experts and security researchers studying

car hacking. Uber human drivers are a temporary fix. Cab companies could have written apps, but in a market defined by regulation and artificial scarcity, innovators had an opening and a vison of a fully autonomous transportation system. Couple that with a world where we don’t need nearly as many factory workers, and workplace skills are not just showing up on time, but how to apply and synthesize knowledge. That is the future we are preparing for.

This year’s summit is about these changes taking place in our region’s education, the partnerships between the public and private sectors and more that we need to build. There are many potential variations and considerations, and the experience in launching these initiatives should not to be underestimated. This will be a key element of the summit discussions. Right now most of our high-tech

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

The owners of Hare & Hounds closed their pub — a day earlier than planned due to heavy rain that washed into the downtown Poulsbo establishment on Oct. 10 — and are transforming the place into a NewOrleans-stylejazzcafé.

Proprietors Tammy Mattson and Rob DiFilippo hope to open Café Jacamoe by early November, but the date was uncertain because the recent flooding dam-

Keating from 25

talent and ecosystems.

Technology industries bring high wages and economic opportunities, but also changes that are not an unmitigated good. There is disruption and some people lose jobs. A rapidly expanding, high-wage tech workforce can cause housing inflation and traffic, and can drive down community diversity upon which innovators thrive. Still, tech is the future in all sectors, so to succeed we need to embrace change and balance it with sustainability and livability of an area. Many solutions and approaches were proposed, and all of us became co-authors of the WTIA FullConTech Playbook. It’s a worthy read of the impacts of technology and how we can manage the changes the next few years.

Every parent I meet at a West Sound CoderDojo event knows this organically. Their children are growing up in a world driven by technology. A fundamental understanding of programming and automation is as essential to their success as reading, math and science.

The veritable explosion of free online learning resources made available by

MEEGAN M. REID

bit,” she said.

There’s been a prelude to that at Hare & Hounds for the past year.

“We’ve been having a jazz trio every Wednesday for about year,” Mattson said, and the pub recently tried a jazz jam night on the Thursday before Hare & Hounds closed.

“It was a really good turnout,” she said, adding that Café Jacamoe will provide a needed venue for jazz and blues music in the community.

She and DiFilippo, who are both originally from

Southern California, have made numerous trips to New Orleans, and they’re looking forward to bringing a taste of Bourbon Street to Front Street. They’re already planning a Mardi Gras parade for February.

“We’ve been a part of Poulsbo for the last 10 years,” Mattson said. And it’s really exciting to us when we can bring new fun things to our guests and customers.”

Hare & Hounds had 12 employees, who will all remain on staff when the new place opens, Mattson said.

workforce commutes to the East Side, and if we want that to change, we have to change and there is a time limit before the changes start to impact our community.

I encourage you to come to the summit — register at www.westsoundtechnology.org. and commit yourself and your organizations to being a part of the solution before the future catches up with us.

• Charles Keating is president of Keating Consulting Service, Inc. (www.kcsco. com), an IT consulting firm serving global clients since 1983. He is also a partner in K2 Strategic Solutions (www.k2strategic.com) and Professional Options (www.professionaloptions. com), and current president and co-founding member of West Sound Technology Association (www.westsoundtechnology.org).

SUNDAY, NOVEMBER 29 @ 6 P.M. TICKETS START AT $15 360.373.6743 | admiraltheatre.org

34 | Saturday, November 7, 2015 |

Bremerton native’s specialty hosiery gets a cameo at Costco

By Tim Kelly tim.kelly@kitsapsun.com 360-792-3359

All manner of Seattle Seahawks apparel and accessories have been hot sellers during the team’s two Super Bowl seasons, and Bremerton native Shelby Mason is getting in on the action this year.

She designed a special line of her Bootights legwear — tights with a cushioned-sock foot — in Seahawks colors, and female fans who want a pair for their game-day outfit will find them at 10 Seattlearea Costco stores starting in December.

Mason started Bootights six years ago, though she

never planned to become an entrepreneur and did it primarily because she wanted to be comfortable walking in boots while wearing stylish tights.

Bootights — which got an early boost from exposure on Oprah Winfrey’s TV show — has become a successful company and retailers across the country sell the unique, patentpending tights Mason invented. The moisturewicking socks provide a snug, comfortable fit so a woman’s feet don’t slip inside her boots.

“Our product is a fun accessory for what you’re already wearing,” Mason said in a recent phone interview from her company

office in Chicago. “The cool thing about our product is it’s also really functional.

It’ll keep your feet warm and cozy when it’s cold and rainy out.”

Before coming up with the Bootights idea, Mason improvised by wearing men’s tube socks over her tights. It was embarrassing to have that unfashionable look revealed when she had to remove her boots going through airport security, so she hit on the idea to combine style and function.

She’s excited that her Bootights product will be part of what Costco calls “road show” promotions, which introduce specialty items on a temporary basis.

“I’ve always been a

Seahawk fan; I grew up watching them back before it was cool to be a ‘12’,” Mason said. “It’s exciting for me just to see my product back where my family and friends can buy it.”

She expects the Silverdale and Gig Harbor Costco stores will be among the ones carrying Bootights.

“Ifitdoeswell,we’llprobably do more game-day items,” she said.

Carolyn Friedman, whose title is Special Event Roadshow Buyer for Costco, couldn’t confirm which stores will be part of the promotion, but said this kind of sport-themed product is displayed longer than other road show items.

“Normally run our

Haggen prepares to close stores

By Tad Sooter tad.sooter@kitsapsun.com 360-475-3783

Haggen’s failed expansion experiment is nearing an end in Kitsap County.

The three Kitsap Haggen stores began liquidating inventory in late October, store managers said. Exact closing dates have not been announced. A spokeswomanfortheBellingham-based grocery chain said stores will close before Nov. 28.

Haggen is taking bids on many of its stores this fall as it continues a bankruptcy reorganization. There’s no word yet on whether outside companies are interested in Haggen’s Kitsap locations, which include former Albertsons stores in East Bremerton and Silverdale, and a former Safeway in Port Orchard.

Silverdale Haggen director Dwayne Chu said employees aren’t sure what to expect as Haggen retreats from the county.

“It’s been tough,” Chu said. “Just theuncertaintyof what’s going on day to day.”

The good news is many Haggen workers are finding jobs in the area. Port Orchard Haggen director Nick Waldbillig said Albertsons and Safeway have hired back many Haggen employees. He said all but about 10 employees at his Bethel Avenue store had found work at other stores.

Chu said Haggen employees at the Silverdale store also have had luck finding alternative employment, with surrounding retailers hiring many.

“The Silverdale community out here has been really good,” he said.

Employees abandoned Haggen stores in droves in recent months. Waldbillig said about 120 people worked at the former Safeway store in Port Orchard when Haggen took over in March. By last week, his staff numbered 35. Chu said the workforce at the Silverdale store shrank to 67 from more than 100.

The three Kitsap stores were among 146 Haggen acquired from Albertsons and Safeway this year, as

the two grocery giants finalized a titanic merger.

The Federal Trade Commission required Albertsons and Safeway to sell the stores to maintain

competition in certain markets. The Port Orchard and Silverdale stores converted to the Haggen brand in March, followed by the Bremerton store in June.

events run 10 days, but with our sports-licensed goods they’re usually on the floor about three weekends,” Friedman said. “The idea is that it’s an event that happens, not (a product) that’s expected to be there a long time.”

Mason said it’s a great way for a small vendor to start working with Costco, though there are risks involved as well.

“We have to produce a whole lot of products and there’s no guarantee,” she said. “If it doesn’t sell, it all comes back to me.

“It’s kind of a risky proposition, but if the Seahawks are winning we feel even better about it.”

On Sept. 1, Haggen sued Albertsons for $1 billion, claiming the larger grocer was sabotaging its store takeovers. A week later, Haggen filed for chapter 11 bankruptcy protection.

The company’s reorganization plan calls for the sale or closure of most of

SUBMITTED PHOTO

Bremerton native Shelby Mason is the owner of Bootights.

the stores it acquired in the past year, including at least 14 in Washington.

A bankruptcy court recently approved Haggen’s plan for auctioning its stores. The deadline for bids is Nov. 2. An auction will be held Nov. 9, according to a news release.

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November Chamber Events

Platinum Members Harrison Medical Center

By Chad Pearson, Shared Work Marketing Manager Employment Security Department It can happen to any business. Demand for your product or service slips.

Maybe the market goes in the tank. All you know is your business is in a fix, and you’ve got hard decisions to make. You don’t want to lay off your skilled employees, but what else can you do to cut costs?

Haselwood Auto Group

The Employment Security Department provides an alternative. It’s called Shared Work.

Kitsap Sun Land Title of Kitsap County Puget Sound Naval Shipyard & Intermediate Maintenance Facility Tim Ryan Construction, Inc.

Sterling Ramberg, co-owner of The Gear Works, had this to say about Shared Work: “We invested hundreds of thousands of dollars in our employees’ training and couldn’t afford to lose them. Shared Work helped us avoid that.”

The flexibility of the program also makes it attractive. Your business can enroll some or all of your employees. You use it only when needed, and you can vary each employee’s reduction anywhere from 10 to 50 percent per week.

To learn more, watch our Shared-Work video, visit www.esd.wa.gov/ shared-work or call 800-752-2500.

October Luncheon Guest Speaker: Robert Doane Acupuncture and Wellness Center, PS

David Schultz Market President, Peninsula Region Harrison Medical Center and St. Anthony Hospital Kitsap Conference Center, Marina Vista Room November 18 - 9:00 AM - Noon “Growing Your Business with Email and Social Media” United Way of Kitsap County, Conference Room

New Members Bremerton Masonic Temple Pacific Cannabis Company NW Passage Charters Tucker Distillery The Manette Clinic Bradley W. Orser, CPA, Inc.

P A R T N E R

Recent surveys show that Shared Work helps keep skilled workers, reduces payroll costs and improves employee morale. Employers who have used the program consistently recommend it to others.

Sponsored by Land Title of Kitsap County

C O M M E R C E

Under the program, businesses can reduce the hours of permanent employees, who can then collect partial unemployment benefits to replace a portion of their lost wages. This translates into immediate payroll savings and prevents the loss of skilled employees.

November 17 - 11:30 AM Membership Luncheon

O F

Gold Members

November 10 - 7:30 - 9:00 AM Kitsap Business Forum “Thriving in the Digital World” Suquamish Clearwater Casino Resort

C H A M B E R

Businesses can avoid layoffs with Shared Work

November 9 - 11:30 AM Armed Forces Festival Committee Meeting Cloverleaf Sports Bar & Grill

K P B J

November 5 - 11:30 AM Membership and Marketing Committee Meeting Arena Sports Bar & Grille

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38 | Saturday, November 7, 2015 |

BUSINESS STRATEGY | DAN WEEDIN

Don’t waste energy ‘chasing squirrels’

M

y dogs Captain Jack and Bella are both Jack Russell terriers. If you’re familiar with the breed you know that they are energetic, precocious and highly intelligent. They were also bred through the centuries to be hunters. Their goal in life is to chase down and catch varmints, critters and the occasional snake hiding in the juniper bush.

Captain Jack and Bella have a penchant for chasing squirrels.

Squirrels are also pretty smart.

They heckle and insult the dogs from our front yard. They stand beneath the lone tree and drive the dogs to hysteria and cause incessant barking through the window. On occasion, I will take the dogs individually out to do their duty in the front and they will dart after the squirrel, who in turn scampers up the tree. Captain Jack or Bella will jump at the base of the tree, howling at the rodents. The squirrel knows he’s safe, which only adds to his pleasure. The dogs, still in full chase mode, exert a lot of energy with

nothing to show for it.

We are all in the sales business.

It doesn’t matter what your product or service; without sales, there is no business. It’s been said that a good sales person will never be without a job because of their skill in sealing deals. The challenge (and ensuing problem for the business) often pops up when the people tasked with selling lose sight of the vision and start chasing squirrels.

I’ve worked with salespeople in a coaching and consulting capacity. Just because a sales professional has enjoyed success doesn’t mean they are proficient, or that their style is a blueprint for sustainability. Too many sales people are focused on “chasing money.” Just like chasing squirrels is the sole focus for Captain Jack and Bella, the target for the sales professional becomes the money. To that end, sales strategists have concocted methodology around concepts like “The Wedge,” and “The ABCs (Always Be Closing).” Unfortunately the prospective clients and customers see through that and the consequences are that the sales professional becomes viewed as a commodity rather than a valu-

Winslow

easements at the back of the property, he said.

“At that point I backed out,” he said, “and I knew there was (another interested buyer) right on my heels, so I figured let them get in there.”

Several weeks later, though, at the Fourth of July parade downtown, Lacko noticed the “For Sale” signs still up. So he checked with his broker, Bror Elmquist of Elmquist Commercial, and resumed negotiations with the seller, resulting in the pending sale after satisfactory resolution of the building issues.

“We were able to come to a price and here we are. It’s still more than I would like to do,” Lacko said. He prefers buying buildings that are occupied and well maintained, he said, although he has construction experience going back to working as a teenager on projects his father

from 36

Lacko’s company, JL Management, is buying the building for $1.725 million, and the sale is scheduled to close this month.

The 46-year-old developer — who works from home while his company office remains in Orange County, California — said he was the first potential buyer when the property was listed, but withdrew his original offer after finding too many problems with the building.

“We got into the building, and the headaches were too many.

The things that would need to happen to make it work were just too big at the time,” Lacko said.

The issues included asbestos that would have to be removed from the roof, and a survey showing encroachments and a lack of

able asset.

If you’re profession is directly in sales or you have a sales team in your company, you might be interested in a few sure-fire ways to avoid chasing your own squirrels and realize greater rewards: 1. Focus on your value. Tom Cruise made the line “Show me the money” famous in the movie “Jerry Maguire.” If your focus is solely on the money, you’re chasing it. The income attained by you is a byproduct of the proper mindset of being a value-provider. You’re seeking equitable compensation for the incredible value you provide. If you maintain a mindset that your value is unique, important and rich with return on investment for your prospective client, then that will show through and you will be rewarded with a new client and equitable compensation. Chasing the money is about desperation.

Being a valued asset is about a trusted partnership.

2.Slowdown. Too many sales people are impatient. While sales cycles are all different depending on the product or service, one factor is a commonality. Trust is critical in building a sustainable relationship. If you come across

I KNOW THERE’S AN ADVERSE look toward developers, but what I like is that I’m doing something that’s in-fill work, which is cleaning up an existing element.”

— Joseph Lacko

developed.

“I don’t like to get my hands too dirty because of the unknowns,”

as “pushy,” you will seem desperate or (worse) dishonest. The best way to accomplish this (because it’s easier said than done), is to be diligent about asking good questions, listening closely, and being in the moment. Sales conversations are not mortal combat; they are conversations. Don’t hurry the process.

3. Be a peer. Many times, sales professionals don’t see themselves as peers to their prospective clients. This is manifested in many ways – most obviously in obsequious language, lack of boldness and low confidence. If you believe yourself to be a “vendor,” then don’t worry about this one. However if you consider yourself a trusted adviser, valueprovider and/or irreplaceable as a business partner, then you must be a peer. Business people want to do business with peers.

Make sure your demeanor, your language and your boldness belie that.

4. Focus on your ideal prospect. Every sales professional has an ideal prospect. It always should be a person (e.g., CEO, senior VP, president), not an industry or company name. People buy from people. If you focus clearly on the individuals you want to work with rather then everyone in the world, you will be more likely to be more confident. While you will always have outliers that parachute into your world and

that you add as new clients, being focused on the people you want to most work keeps you from chasing every squirrel in the yard.

5. Have fun. Seems like a strange factor, doesn’t it? I emphatically tell you that sales professionals that roll out of bed every morning excited to go to work and ready to have fun are going to exponentially out-produce those that wake up burdened by anxiety, fear and skepticism. Sales is a tough business due to the amount of rejection that comes with it. You’d better find a way to genuinely stay positive and have fun through it all. Those who do rarely chase the money.

Bottom line — Stop barking up the wrong tree. My dogs will never catch squirrels in our yard no matter how hard they chase or how loudly they bark. Don’t waste your energy doing the same thing.

If you commit to ending the chase of the money and concentrate on the great value you bring to the table, you will reap more rewards than you ever imagined. And that is a lot to bark about!

he said. “The variables in these kinds of buildings can bite you,” but he decided to invest in the Winslow property.

“I just felt we have the means to do it, and it’s a piece of town that needs to be opened back up, so I’m excited about it.”

So is the community, Elmquist said.

“People consider it an important part of downtown, and having it shuttered was a detraction from the ambiance of the town,” he said.

Elmquist also handled Lacko’s purchase of a few other Kitsap County properties, and said “Joseph seemed like the perfect person” to invest in redeveloping the empty Winslow site.

“I believe he has the knowledge and experience to do a unique, interesting and exciting project,” he said.

Through JL Management,

Lacko oversees a family portfolio of commercial properties developed by his father that he and his four sisters own. He said their nine main properties in California and Nevada comprise nearly 1 million square feet in retail centers anchored by grocery stores.

The Bainbridge newcomer is aware of many islanders’ wariness of developers, but said he’s not the typical developer that evokes such reaction.

“I know there’s an adverse look toward developers, but what I like is that I’m doing something that’s in-fill work, which is cleaning up an existing element,” Lacko said.

“I am on the fence — I am a developer, but I don’t like seeing the trees come down. It’s an interesting fit.”

He hadn’t expected to add to his property portfolio in the new

• Dan Weedin is a strategist, speaker, author and executive coach. He helps business leaders and executives to become stronger leaders, grow their businesses, and enrich their lives. You can reach him at 360-697-1058; e-mail at dan@danweedin.com or visit his website at www.DanWeedin.com.

See WINSLOW, 40

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40 | Saturday, November 7,

SCORE MENTORING | KEN SETHNEY

Where can I get help to start or grow my business?

T

here are lots of people and organizations willing to help. All you have to do is ask.

Olympic College offers a small business certificate program that introduces basic business skills such as marketing, accounting, customer service and small business management.

The BE$T (Business Education Support Training) program offered by Kitsap Community Resources provides classroom training and ongoing support to first-time business owners, with significant discounts for those with limited financial resources.

Chambers of Commerce throughout Kitsap County offer workshops, discus-

sions and networking opportunities that can help you connect with existing business owners and professional service providers.

Interested in government contracting?

The Kitsap Economic Development Alliance (KEDA) offers services as part of the Washington State Procurement Technical Assistance Center (PTAC). They provide assistance and support to those who want to sell to federal, state and local government agencies and prime contractors.

Kitsap SCORE is the local branch of a nationwide organization. Each of our volunteer business mentors has a great deal of experience and is willing to share it with you. To find a mentor, visit our website at kitsapscore.org.

Our website also offers templates and tools, plus links to workshops and webi-

REGION’S ECONOMY | JOHN POWERS

nars. You will find news you can use, information about funding sources, and access to the Fast Launch Initiative for military vets.

That’s all well and good, but how can you sort through all these programs and online resources to find exactly what you need? Find a business mentor.

The perfect mentor for you might be a friend or a family member. If you decide to enroll in the BE$T program, they have an excellent support team.

Kitsap SCORE offers confidential, oneto-one meetings and online access to 11,000 volunteers nationwide. One or more of our mentors will have the answers you need, and our mentoring services are free.

Sometimes, experience is the best resource. For example, let’s say you want to start a restaurant. Any of the groups mentioned above can help with business planning, info about licensing, suggestions for working with landlords and suppliers, and ways to find the money you’ll need to start things up.

That’s all well and good, but as a business mentor who spent summers as a kid working in his father’s restaurants, I might ask about your personal experience and

motivation.

Have you worked in the restaurant business? If not, we should talk about ways you can learn the practical things you need to know to turn your passion into a successful restaurant. Maybe you need to get a job working for a successful restaurateur.

Of course, decisions about starting or growing your business are up to you. The resources I’ve mentioned above are available to help you get the information you need to make the best possible decisions.

Kitsap is home to a deep pool of entrepreneurial talent operating in a variety of industries (defense, advanced manufacturing, medical devices, health care, information communication technology and security, and e-commerce). Kitsap County is second only to King County in Washington state relative to the development of intellectual property — one of the key indicia of entrepreneurial strength.

Kitsap is known for its innovative and entrepreneurial culture in a region known around the globe for its innovation. Kitsap’s entrepreneurial economic garden is growing. Come join us as we celebrate our success and embrace our entrepreneurial economic future ... who knows, you just might bump into the next Bill Gates ... whose father Bill happens to hail from Kitsap.

On Kitsap!

“We hope to come out early next year with our permit and hit the ground running for putting the core together for the tenants,” he said. “It’s a tight schedule; hopefully the city embraces the project. I imagine they will since because it’s been empty for as long as it has.”

t’s often said, because it’s true: “Small businesses are the backbone of our economy.” And, I would add: “New business formation grows our local economic garden and strengthens the backbone of our economy.”

New businesses are born of entrepreneurial endeavors in which an individual undertakes risk in pursuing the creation of a new enterprise in response to a perceived unmet market need. Well-known entrepreneurs include

Thomas Edison, Henry Ford, Penny Streeter, Walt Disney, Larry Page, Mark Zuckerberg and Richard Branson.

Game changing entrepreneurs with roots in our region include Bill Boeing, Bill Hansen, Bill Gates, Jeff Bezos, John Eisenhauer, Clif McKenzie, Rick Flaherty, Rick Leenstra, Jim Nall, Julie Tappero, Chris Rieland and Rory Rawlings.

For the third year in a row, our Economic Development Alliance, in concert with the Washington State Department of Commerce, is partnering with our many local economic development partners to

celebrate Global Entrepreneurship Week (Nov. 16-20) and present a series of entrepreneurship programs at venues throughout Kitsap.

This year there are nine programs (spanning three weeks) aimed at supporting local entrepreneurship — the majority are free and open to the public.

Topics range from: developing small business participation plans; capital formation and funding; doing business with the government; social media marketing; and education and workforce challenges in a digital knowledge-based economy.

You may access a complete list of programs, as well as register, by going to our alliance’s website at www.kitsapeda.org.

I want to thank our partners participating in this year’s celebration of Global Entrepreneurship Week: local Chambers of Commerce, Kitsap Business Forum, PTAC, WSU Extension, BE$T, NAVFAC NW, WSTA, and KEDA.

Winslow

“Even when we searched where we wanted to be and found Bainbridge and moved up, I still didn’t understand what Kitsap County was. I only saw east.”

But as Lacko explored communities on the Peninsula, he bought two combination condo/business properties — one in Poulsbo with a hair salon, and one in Manchester leased by Insights, a company that provides corporate training for large Seattle-based companies.

He also saw the potential for growth in Silverdale with the Harrison Medical

Center expansion, and he bought 5 acres of undeveloped land west of Highway 3 for future residential development.

His investment in downtown Bainbridge feels a little different, and Lacko acknowleged a little apprehension about it.

“I thought here I am, I’ve been here a year, and I’m buying what a lot of people refer to as the heart of Winslow,” he said.

Lacko said he will submit plans for the building’s redevelopment to the city by mid-November, and is optimistic the new businesses could be in by May.

Growing our entrepreneurial economy from the ground up

I

from 38

community where he moved his family, but said that was because of his limited perceptions at first.

“Having never been to the Seattle area, I looked in Seattle and Tacoma, because that’s what I understood Seattle to be,” he said. “And the price of property was outrageous, so I didn’t think I would buy anything up here.

• For help starting or growing your small business, contact SCORE — Mentors to America’s Small Business. SCORE is a nonprofit organization with more than 12,000 volunteers who provide free, confidential business mentoring and training workshops to small business owners. To contact Kitsap SCORE, email kitsap@scorevolunteer.org, call 360-328-1380 or visit kitsapscore.org.

• Ken Sethney is a volunteer business mentor and branch manager with Kitsap SCORE. He is a former ad agency creative director and marketing coach who has worked with the owners of small to midsize companies throughout the U.S. Contact him at ken.sethney@scorevolunteer.org.

• John Powers is executive director of the Kitsap Economic Development Alliance.

www.KPBJ.com

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42 | Saturday, November 7, 2015 |

BUSINESS COMMENTARY | DON BRUNELL

Alternative from 28

Changes to Obamacare are coming

M

aybe there is finally something Democrats and Republicans can agree on — fixing the Affordable Care Act (ACA).

From the day it was signed into law in 2010, Republicans have tried unsuccessfully to repeal Obamacare, saying it is unworkable and unaffordable.

Until this year, Democrats have held the line for President Obama.

But not now.

After the President leaves office, change will come. The first is repeal of the so-called Cadillac Tax, the 40 percent excise tax on generous health care plans, which is scheduled to begin in 2018.

According to the President, the excise tax is one of the main revenue sources for the ACA, helps curb healthcare costs, and is a big deterrent to income inequality in healthcare. It is also a way to fill an $87 billion budget gap.

Repealing the Cadillac Tax is supported by key business groups that have been looking for ways to make the ACA more affordable.

Repeal is also supported by or-

ganized labor, which negotiated generous health care benefits as part of their union contracts.

The tax would hit taxpayers, as well, who pay for the health care benefits of government workers, teachers, firefighters and police.

According to a poll commissioned by the U.S. Chamber of Commerce and other national business organizations, 72 percent of Americans oppose the tax.

For Democrat presidential front-runner Hillary Clinton, opposing the President on his health care excise tax is low-risk because even her primary rival, Sen. Bernie Sanders of Vermont, agrees.

Clinton has lobbied for mandated health care coverage since 1992 when she was First Lady.

She thought she had the prototype when Democrats took control of the Washington Legislature in 1992 when our state’s new governor, Mike Lowry, a former Democrat congressman, jammed through a law that required employers — except those with union contracts — to provide standardized employee health care plans designed by the state.

The crack in the Washington law was it needed a waiver from

People in Business CHI Franciscan Health appoints new chief operating officer CHI Franciscan Health has hired Ian G. Worden as its new chief operating officer. Worden will be responsible for directing the operations of acute care services, coordinating and integrating services, and ensuring the Ian Worden delivery of costeffective care.

Most recently, Worden was executive vice president/chief operations officer for St. Vincent Health System, a 23-hospital system in Indiana. From 1995 to 2000, he was chief financial of-

ficer at PeaceHealth in Eugene, Oregon.

“I’m excited to have the opportunity to return to the Pacific Northwest and join CHI Franciscan Health,” Worden said in a news release. “I’m looking forward to working with all the exceptional physicians, leaders, and staff at CHI Franciscan as we embark on becoming the premier health care provider in the Pacific Northwest.”

Worden received his bachelor’s degree in psychology from Florida State University. He has a master’s in neuroscience, an MBA and a master’s in hospital administration from the University of Wisconsin, Madison. He joined CHI Franciscan Health on Oct. 19.

CHI Franciscan (www.chifranciscan.org) is a nonprofit

the federal ERISA law in order to mandate that Washington employers provide the stateapproved insurance coverage.

ERISA was put in place in 1972 to ensure that a company’s employee benefits were uniform from state to state.

When the ERISA waiver failed, Gov. Lowry signed legislation that allowed groups of small employers to band together in associations in order to offer health insurance. By forming large associations, small employers gained the same leverage as big corporations to negotiate lower employee health care premiums.

That law has worked, and today those associations provide affordable health coverage for more than a half million workers and their families.

Nationally, the U.S. Supreme Court decided the mandate issue in 2012. By a 5–4 margin, the court ruled that the ACA is constitutional and gave its blessing to the law’s most controversial component, known as the “individual mandate.”

The mandate requires all Americans to purchase health insurance or pay a “shared re-

sponsibility payment” to the government. In 2016, that fee is 2.5 percent of your annual income or $695 per person, whichever is higher.

The court held specifically the individual mandate is not a “penalty,” as the health-care law identified it, but a tax, and is therefore a constitutional application of Congress’s taxation power.

While the Supreme Court deflated attempts to bring down the Affordable Care Act, the Democrats’ most recent rebellion against key parts of Obamacare signals that both parties are now in the mood to figure out how to pay for the ACA and make health insurance affordable.

In a time when our federal deficit is soaring and will soon pass $19 trillion, taxpayers cannot afford to fork over another $1.2 trillion between now and 2025 to pay for Obamacare as we know it today.

health system based in Tacoma, with eight acute-care hospitals and more than 100 primary and specialty care clinics in Pierce, King and Kitsap counties, including Harrison Medical Center in Bremerton and Silverdale.

a person with affordable housing and financial management experience combined with a commitment to public service,” said Stuart Grogan, executive director of Housing Kitsap. “Wendy is all of that blended with a genuinely compassionate spirit and terrific sense of humor. We are very excited to have her join our team.”

Housing Kitsap hires chief financial officer Housing Kitsap announced that Wendy Dutenhoeffer has been hired as the nonprofit’s new chief financial officer.

Dutenhoeffer previously was finance director for Bonneville Wendy County, Idaho, Dutenhoeffer and she started her finance career in multi-family housing management “We were really hoping to find

• Don C. Brunell is a business analyst, writer and columnist. He retired as president of the Association of Washington Business, and he can be contacted at theBrunells@msn.com.

SAFE Boats adds consultant for foreign military sales SAFE Boats I n te r n a t i o n a l announced that Joseph Abeyta, president of Allwater Marine Group, LLC, has joined SBI to inJoseph Abeyta crease foreign military sales business develop-

sense to buy your (property),” he said. “It makes sense to have your employees live in apartments that are a little less expensive or buy houses that are quite a bit less than they are on the Seattle side.”

Cadwell believes the regulatory climate in Kitsap might be a main factor slowing development.

“We’ve got a reputation on the Seattle side of the water for being tough to get land use approved,” he said.

Other speakers at the forum picked up that call, urging the elected officials present to continue work on streamlining permitting across the county.

“Get those permits processed so we can get that housing built,” Larson said. “Because that’s the best way to get more affordable housing on the market.”

A fast-ferry system would certainly elevate Kitsap’s standing in the Puget Sound region, he said.

“I advocate for a return of the mosquito fleet,” Larson said. “I really hope we’re able to move in that direction.”

For information on KEDA events, go to www.kitsapeda.org.

ment growth efforts.

Abeyta is a recently retired 24-year Coast Guard veteran.

He brings an understanding of international and federal program requirements and what it takes to deliver and support high-performance watercraft to frontline operators.

“With Joe’s service and experience, he is a natural match for SBI and for our continued focus on growing our international partners,” said Robert Coveny, vice president of business development.

SAFE Boats International is an industry-leading aluminum boat manufacturer and a global provider of boat platform systems and solutions to defense, security and first-responder customers to accomplish their missions.

Allwater Marine Group provides consulting services to clients in maritime safety, security and response missions.

We’re as close as your own backyard KPS Health Plans, in business for over 65 years, offers health plans to residents across the state of Washington.

Our extensive provider network includes more than 47,000 providers—which ensures you will receive care through your choice of doctors without a referral.

• Wellness program • Comprehensive preventive care coverage • Tools to help manage your health and health care costs • Choice bundled with award winning customer service

Come see what KPS can offer you.

kpshealthplans.com | (360) 377-5576 | (800) 552-7114 15-KPS-1450_1

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