Bellingham Business Journal, June 02, 2014 by Sound Publishing

Vol. 22 No. 6

JUNE 2014 Online movie streaming clouds the future for remaining video rental shops [Page 11]

The Buzz

With more local projects in the works, Bellingham is seen as a construction

HOT SPOT STORY ON PAGE 17

City Council ponders health care provider tax breaks PeaceHealth leaders worried over potential costs of paying city’s business and occupation tax. HEALTH CARE, PAGE 4

First pot licenses issued for growers Lottery process reveals 27 applicants in line to recieve Bellingham’s first pot retail licenses. MARIJUANA, PAGE 6

Local retail growth slowed in fourth quarter last year

The Cornerstone Building, above, in Bellingham’s Barkley Village was one of the highest-valued building projects recently completed in town. The multiuse building features apartments and commercial tenant spaces. EVAN MARCZYNSKI PHOTO | THE BBJ

CONSTRUCTION

New hotels underway, more to come

Weather, financing hangups delay some new projects near Belllingham International Airport BY EVAN MARCZYNSKI The Bellingham Business Journal

everal new hotel developments have begun operations in Bellingham over the past year, and even more are in the process of construction or set to start soon. All total, Bellingham stands to gain close to 450 new hotel rooms by the end of 2015. The largest new development is a

Holiday Inn planned on about 3.77 acres of property on Mitchell Way, just south of the Pacific Cataract Laser Institute and across the street from the Bellingham International Airport’s commercial terminal. The property is owned by the Port of Bellingham. The Holiday Inn will feature 156 rooms, as well as a full restaurant with separate entrance, an indoor pool, underground and surface

parking, and about 7,000 square feet of conference rooms and meeting space. The three-member port commission approved the plans last year. Development costs are expected to be about $18.5 million. Construction was initially set to start in May of this year, but a need to restructure the project’s financing delayed the start date, said Dan Mitzel, chairman and managing member of Hotel Services Group

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But annual sales in Whatcom County totaled $3.4 billion in 2013, up 5.3 percent from the previous year. RETAIL NOTES, PAGE 3

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Business Toolkit

LLC of Mount Vernon, the project’s developer. Mitzel was out of the country while interviews were being completed for this article. He answered questions via email. Mitzel said the project was going to utilize the U.S. Small Business Administration’s 504 loan program to secure a portion of its perma-

Time to polish up your public-speaking skills The “Heartbleed” bug and Web password security TOOLKIT, PAGE 18

HOTELS, PAGE 17

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2 June 2014

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A proposed ordinance before the Bellingham City Council could repeal a business and occupation tax exemption for the PeaceHeatlh St. Joseph Medical Center and other nonprofit health care providers affiliated with religion. COURTESY PHOTO

Larry W. Evans Branch Manager 360-738-2376

[4] Tax break to end?

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PeaceHealth directors are urging Bellingham City Council members to consider a compromise to an ordinance repealing certain exemptions from local taxes.

Connect with us On Twitter @BBJToday

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[11] Trek’s closure

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End of long-running Bellingham movie rental store raises questions over viability of other businesses in the industry.

On Google+ Bellingham Business Journal

[7] Changes will be slow in Whidbey merger Customers probably won’t notice many differences immediately after Whidbey Island and Heritage banks’ merger.

Barry Weafer

Home Mortgage Consultant 360-676-4709

Brandon C. Mankle

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[8] Rule threatens brewer, farmer grain sharing

Reah Marie Dewell

The Food and Drug Administration wants craft beer brewers to dry their spent grain before giving it to farmers for animal feed.

Home Mortgage Consultant 360-384-4975

[9] The Book of Lists: Featured Lists [10] Market Indicators [18] Business Toolkit

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June 2014 3

The Bellingham Business Journal RETAIL NOTES

Q4 sales growth slows for Whatcom County retailers

Annual sales totaled $3.4 billion in 2013, up 5.3 percent from previous year BY EVAN MARCZYNSKI The Bellingham Business Journal Whatcom County’s retail industry sales increased in the fourth quarter of 2013, but not nearly at the same pace merchants and store owners have grown accustomed to in recent years. The county brought in more than $907 million in total retail sales between October and December last year, according to the Washington State Department of Revenue. That’s 1.84 percent greater than the total brought in during the same months in 2012. Whatcom County has generally seen stronger retail growth over the past couple of years, with quarterly increases typically between 6-8 percent. In the county’s retail trade sector—a subset that counts purchases of clothes, home furnishings, books, cars and general merchandise but excludes sales in industries such as manufacturing and construction—sales increased 1.36 percent to more than $467 million in the fourth quarter last year, compared to 2012. Bellingham’s retail sales grew 1.75 percent to more than $604 million. The city’s retail trade subset grew 0.54 percent to more than $357 million. The slowdown of retail growth in Whatcom County occurs as the Canadian dollar falls in value. The loonie’s monthly average value dropped from 96 cents to the U.S. dollar in October last year to 94 cents in December, according to the Bank of Canada. During the same quarter in 2012, the loonie’s monthly average was between $1 and $1.01 to the U.S. dollar. The loonie’s value has continued to decline since the end of last year. It was at 91 cents to the U.S. dollar at market close on Thursday, May 1, according to the Bank of Canada. The exchange rate’s monthly average in April was also at 91 cents. Canadian shoppers have been major contributors to retail growth in Whatcom County in recent years. But a weaker loonie has brought worries that the retail boost local businesses have come to depend on could diminish. General merchandise stores, including the large grocery and department stores Canadians tend to frequent in Bellingham, saw a 4.53 percent decline

in sales during the fourth quarter last year, compared to 2012. Sales activity among Whatcom County’s e-commerce and mail order retailers increased 18.58 percent during the same time period. Local new and used auto dealers also increased their fourthquarter sales by 12.97 percent. In Skagit County, which also sees a fair amount of Canadian shoppers, total retail sales grew 0.29 percent to more than $599 million in the fourth quarter of 2013, compared to last year. Skagit’s retail-trade subset decreased by 0.66 percent to more than $331 million. Retailers saw stronger sales growth further south in Snohomish County, which has a larger population and pulls shoppers from the Seattle area. Total retail there increased by 6.2 percent to more than $3 billion in the fourth quarter of 2013. Snohomish’s retail trade increased 6.47 percent. All total in Washington state, retail sales grew 5.8 percent to $31.1 billion, according to the Department of Revenue. Sales in the state’s retail-trade subset increased 4.9 percent to $14.7 billion.

By the numbers Retail sales, Q4 2013 Whatcom County Total retail sales—Q4 2013: $907,939,654; Q4 2012: $891,517,403 (1.84 percent increase). Retail trade subset—Q4 2013: $467,142,394; Q4 2012: $460,854,165 (1.36 percent increase). Bellingham Total retail sales—Q4 2013: $604,141,657; Q4 2012: $593,750,784 (1.75 percent increase). Retail trade subset—Q4 2013: $357,252,647; Q4 2012: $359,175,406 (0.54 percent decrease). Lynden Total retail sales—Q4 2013: $53,467,411; Q4 2012: $50,393,780 (6.1 percent increase). Retail trade subset—Q4 2013: $23,624,969; Q4 2012: $22,090,745 (6.95 percent increase). Ferndale Total retail sales—Q4 2013: $45,153,288; Q4 2012: $43,911,467 (2.83 percent increase). Retail trade subset—Q4 2013:

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$17,235,919; Q4 2012: $18,786,144 (8.25 percent decrease). Blaine Total retail sales—Q4 2013: $37,135,818; Q4 2012: $36,511,843 (1.71 percent increase). Retail sales subset—Q4 2013: 16,029,966; Q4 2012: $16,063,534 (0.21 percent decrease). Sumas Total retail sales—Q4 2013: $7,270,614; Q4 2012: $7,570,271 (3.96 percent decrease). Retail sales subset—Q4 2013: $4,558,756; Q4 2012: $4,247,674 (7.32 percent increase). Everson Total retail sales—Q4 2013: $6,008,557; Q4 2012: $5,311,440 (13.13 percent increase). Retail sales subset—Q4 2013: $2,283,317; Q4 2012: $2,098,317 (8.82 percent increase). Nooksack Total retail sales—Q4 2013: $1,904,801; Q4 2012: $1,694,935 (12.38 percent increase). Retail sales subset—Q4 2013: $908,752; Q4 2012: $828,479 (9.69 percent increase). Unincorporated county areas Total retail sales—Q4 2013: $152,857,504; Q4 2012: $152,372,880 (0.32 percent increase). Retail trade subset—Q4 2013: $45,248,065; Q4 2012: $37,563,922 (20.46 percent increase).

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Skagit County Total retail sales—Q4 2013, $599,570,604; Q4 2012, $597,831,825 (0.29 percent increase). Retail trade subset—Q4 2013, $331,127,954; Q4 2012: $333,321,155 (0.66 percent decrease).

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Snohomish County Tot a l ret ai l s a les—Q4 2013: $3,015,789,998; Q4 2014: $2,839,797,764 (6.2 percent increase). Retail trade subset—Q4 2013: $1,672,099,563; Q4 2012: $1,570,449,280 (6.47 percent increase)

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Source: Washington State Department of Revenue

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Evan Marczynski, associate editor of The Bellingham Business Journal, can be reached at 360647-8805, Ext. 5052, or evan@bbjtoday.com.

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4 June 2014

The Bellingham Business Journal

HEALTH CARE

City Council ponders health care tax breaks Leaders of PeaceHealth St. Joseph Medical Center concerned over cost of paying city’s business and occupation tax BY EVAN MARCZYNSKI The Bellingham Business Journal PeaceHealth directors, employees and supporters are urging the Bellingham City Council to consider a compromise to a proposed ordinance that would repeal an exemption of local business and occupation taxes for nonprofit health care providers affiliated with religion. The repeal could cost PeaceHealth’s St. Joseph Medical Center in Bellingham up to $1.2 million in new annual taxes, according to the nonprofit, Catholic-affiliated provider. St. Joseph’s leaders said the financial hit would force cuts to medical services and staff. It would also disrupt a longstanding relationship between the city and St. Joseph that has supported the hospital’s mission to provide community health care, said Nancy Tieman, regional vice president of strategy, innovation and development at St. Joseph. “I would ask that you not abandon this vital partnership,” Tieman said to council members. More than 100 people attended a May 19 public hearing on the matter. Council members voted, 7-0, to schedule a work session on the topic for June 9. Further council action is possible on that date. In addition to repealing the tax exemption for nonprofit, religious providers, the proposed ordinance would also adopt health care tax deductions and exemptions contained in Washington state’s business and occupation tax code. If the council approves the ordinance, St. Joseph would have its annual gross business receipts taxed at a rate of 0.44 percent, the same as registered businesses defined as “services and other activities” under the city’s tax code. St. Joseph is the only hospital in Whatcom County. It is also Bellingham’s major employer, with more than 2,700 employees. City Council has discussed the tax-exemption repeal and the adoption of state health care deductions during various meetings over the past year. The policy proposals are designed to bring equity to Bellingham’s nonprofit health care providers, regardless of whether they are affiliated with religion, according to city documents. Nonprofit providers not connect-

The PeaceHealth St. Joseph Medical Center in Bellingham has for decades been exempted from local business and occupation tax due to its nonprofit status and religious affiliation. But a proposed ordinance before the Bellingham City Council could repeal that exemption and require the hospital to pay city taxes. COURTESY PHOTO ed to religion currently pay city business and occupation taxes. Additionally, the city attorney’s office has raised questions over whether it’s appropriate for a city government to grant a tax exemption based on religion. After nearly two hours of public comment during the May 19 hearing, Councilman Jack Weiss said he wanted time to reflect on the comments made during the evening’s public hearing. Other council members agreed. “There’s a lot that we have to consider,” Councilman Terry Bornemann said. “There’s a lot that we have to look at.” Most who spoke during the public hearing opposed the proposed ordinance. Many favored an alternative taxation plan backed by Bellingham Mayor Kelli Linville and the city’s finance director, Brian Henshaw. That option would still tax PeaceHealth, but at a lower rate to allow the city to recoup annual tax revenue lost after the provider took over Madrona Medical Group in 2007 and North Cascade Cardiology in 2011, both of which paid city business taxes that officials estimate would today total about $350,000. PeaceHealth officials said they

“There’s a lot that we have to consider. There’s a lot that we have to look at.” TERRY BORNEMANN BELLINGHAM CITY COUNCILMAN

do not oppose paying money to the city, nor do they oppose striking the tax exemption for nonprofit providers tied to religion. But taxation should be managed with consideration of St. Joseph’s purpose and the benefits it provides to the community, said Barbara Lupo, who chairs the hospital’s governing board. “We ask only that the tax is fair,” Lupo said. With health care providers across the country seeing rising costs and falling revenues, a new annual tax bill of $1.2 million would almost certainly bring cuts to St. Joseph’s programs and services, said Dale Zender, the hospital’s chief administrator and the chief financial officer for PeaceHealth’s Northwest Network. Zender told City Council that St. Joseph has seen declining revenue for the past three years. He projects that when the hospital’s current fiscal year ends on June 30, it will have a $5 million shortfall, he said. Despite its nonprofit status, St. Joseph does aim to earn a profit margin of at least 8 percent annually, which for the hospital equals about $41 million, Zender said. That profit is necessary for the hospital to pay for capital expan-

sions and upgrades, which can be very expensive, Zender said. For example, St. Joseph recently spent money on new electronic medical record systems and two new CT scanners purchased at $2.4 million each, he said. “You need to have the margin if you’re going to invest in the organization and have the quality of care,” Zender said. Larry Thompson, executive director of Whatcom Alliance for Health Advancement, said he would prefer the City Council consider the alternative compromise, rather than the proposed ordinance. Thompson said he was particularly concerned with how potential cuts to St. Joseph could negatively impact a host of nonprofit health and service organizations that work closely with the hospital. He also said that putting hospital programs and services in jeopardy during a time of major health care uncertainty could have drastic effects locally. “I am concerned that the proposal to tax PeaceHealth at the $1.2 million level is not in the community’s best interest,” Thompson said. Rob Buchinski, executive director of Lighthouse Mission Ministries, said his organization’s ability to provide services is largely dependent on its relationship with St. Joseph, particularly when finding hospital care for people at the mission who deal with mental health issues. Lighthouse Mission provides food and shelter to people who are homeless or otherwise in need. Byron Manering, executive director of Brigid Collins Family Support Center, said PeaceHealth grant money is a major source of funding for his organization. Brigid Collins provides health care and case management support for survivors of child abuse, as well as family counseling and other services. “These core community services would not be possible without their support,” Manering said.

Evan Marczynski, associate editor of The Bellingham Business Journal, can be reached at 360-647-8805, Ext. 5052, or evan@bbjtoday. com.

Bellingham and Whatcom County business owners are eligible for free subscriptions to the BBJ. Call us at 360-647-8805 to sign up.

June 2014

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The Bellingham Business Journal

MARIJUANA

First marijuana grower licenses issued More licenses for commercial cannabis producers are sure to be issued in the weeks, months to come BY EVAN MARCZYNSKI The Bellingham Business Journal Six months after the Washington State Liquor Control Board opened a 30-day window to accept applications to legally grow, process and sell marijuana, Whatcom County’s first commercial pot producers have received licenses. The liquor board issued producer licenses to two businesses in Whatcom County on May 13, including one located in Bellingham’s Sunnyland Neighborhood. More are sure to be issued in the weeks to come. A company called Virtual Services, located at 2018 Iron St., Suite B, has been licensed as a “tier 1” producer, defined as one with less than 2,000 square feet of production space. Deepwater Botanicals, located at 5373 Guide Meridian Road, Suite D3, received a license to operate as a “tier 2”

Mike Burdick of Green Liberty in Bellingham inspects a crop of marijuana plants in early 2014. These plants are grown for medicinal users, which Green Liberty is licensed to supply. The company is among others in Whatcom County seeking to receive licenses to produce marijuana and supply retailers. EVAN MARCZYNSKI PHOTO | THE BBJ producer, one with production space between 2,000 and 10,000 square feet. Space limitations for pro-

ducers will actually be more restrictive, at least initially, after the liquor board decided in February to cap producers’

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capacity at 70 percent of the maximum allowed by their particular production tier. Bob Lipke, owner of Virtual Services, said his company will be a one-man show, focused on high-quality, “connoisseur” pot strains. The 60-year-old retiree said he will market his product under the brand name Oasis Organics. State law does not allow producers to sell directly to customers. They will sell only to licensed processors or retailers. Retail licenses are expected to be issued no later than the first week of July, according to the liquor board. Lipke said passing all of the license requirements set by the liquor board was a daunting process, but one he understood and appreciated. “It was a very thorough

process, and I’m glad that the state put in all the regulations to be successful,” he said. He still must complete local permitting with the City of Bellingham. He expects that can be done within weeks. Lipke said his business will require some capital improvements and expansions, and he’s currently looking for investors. He said his total output will likely be driven by demand. He estimated he can probably produce 50-150 pounds of pot in a year. His goal is to grow up to 40 different pot strains, including some “heirloom” varieties that gained popularity in the illicit market during the 1960s and 70s, prior to Washington state’s legalization of marijuana, he said. He decided to enter the industry due to the demand he sees for the product and the opportunity for him to use his business to supplement his retirement fund, Lipke said. He also said he has prior experience with tropical-plant cultivation. Describing himself as a “conservative, older man with an interest in horticulture,” Lipke said he probably doesn’t fit the stereotypical mold of someone involved in marijuana production. And although he plans to grow pot, he said he doesn’t actually use it. “I don’t have long hair, and I’m not a hipster,” he said, in jest. “It’s just a great business opportunity.”

Evan Marczynski, associate editor of The Bellingham Business Journal, can be reached at 360-647-8805, Ext. 5052, or evan@bbjtoday.com.

MARIJUANA

Lottery held for local pot retail spots BY EVAN MARCZYNSKI The Bellingham Business Journal Twenty-seven applicants are in the running to receive Bellingham’s first marijuana retail licenses from the Washington State Liquor Control Board. Regulators released results May 2 from an independent, double-blind lottery performed in April that will be used to determine who will be able to open pot stores across the state. In Whatcom County at large, 15 applicants are also included on the state’s lottery list. Lotteries were not held for Lynden or Ferndale, as the number of qualified applicants in those jurisdictions was less than or equal to total number licenses being allocated to each city. Officials with the liquor board announced last September that Whatcom County will be allocated 15 pot retail licenses. Six of those are slated for Bellingham, seven for the county at large, and one each for Lynden and Ferndale. Regulators will allow up to 334 pot retail outlets to be licensed statewide. Actual licenses have still not been issued by the liquor board. That’s expected to happen no later than the first week of July. Officials will now begin to work their way down the lottery list by order of rank, ensuring that applicants are

POT, PAGE 26

REAL ESTATE

Closings slow in local housing Owned by Upper Skagit Indian Tribe

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Sales of single-family homes and condos slowed in April across Whatcom County, according to the latest data from the Northwest Multiple Listing Service. There were 190 residential closings in Whatcom County last month, a 10.38 percent drop from the same month in 2013. The local median sale price was $243,150 last month. The average sale price was $290,186, up from $276,732 in April last year.

New residential listings increased by 17.45 percent, year-over-year, in April, while total listings were up 6.98 percent.

By the numbers Whatcom County housing sales, April 2014 Includes single-family houses and condominiums combined Closed sales Total units—April 2014: 190; April 2013: 212

HOUSING, PAGE 26

June 2014 7

The Bellingham Business Journal BANK MERGERS

Changes will be slow in Whidbey Bank merger Customers won’t see much difference until fall 2014 BY JIM DAVIS The (Everett) Herald Business Journal Customers probably won’t notice many changes immediately after Whidbey Island and Heritage banks merge. Shareholders for the banks overwhelmingly approved the deal in April at meetings in Oak Harbor and Olympia. The merger was to take place by May 1. “Two strong banks coming together and continuing to grow is a real strong aspect of the merger,” said Brian Vance, who is Heritage’s president and CEO and will retain the role of CEO of the combined bank. It will take several more months for the banks to combine their data processing systems. So the banking executives decided to keep things simple by having the Whidbey and Heritage branches operate separately for now. That means that customers of Whidbey Island will continue to receive the same banking statements and meet the same staff at their branches. Signs won’t change at the combined banks until fall. “The customers should not notice any difference until Oct. 4,” Vance said. The merger of two of Washington’s largest community banks was announced last October. The combined company will take the Heritage name and have $3.3 billion in assets, with 67 branches mainly along the I-5 corridor from Bellingham to Portland, Oregon. The combined bank will be based in Olympia and will use Heritage’s NASDAQ ticker symbol, HFWA. Shareholders of Whidbey Island stock are receiving 0.89 shares of Heritage common stock and $2.75 in cash for each share. It’s one of two mergers affecting banks with branches in Snohomish County. Last month, Umpqua Bank, based in Portland, and Sterling Financial Corp., based in Spokane, announced that they received regulatory approval to combine. That new bank will retain the Umpqua name. There are two Sterling branches in Snohomish County and one Umpqua branch. Whidbey Island Bank has 12 branches in the county and six in Island County. As part of the merger with Heritage, the branches on the island itself will keep the Whidbey Island Bank name. Since the announcement of the merger, Vance and Jeff Deuel, president and chief operating officer of the combined bank, have been visiting all Whidbey Island Bank branches to get to know staff and talk with them

about the “go-forward company,” Vance said. Whidbey Island Bank president Bryan McDonald has been traveling to meet staff at Heritage branches. His title in the new company will be executive vice president and chief lending officer. Jack Wagner, president and CEO of Washington Banking Co., Whidbey’s parent company, will be continue as a consultant. The new board of directors will include eight members from Heritage and seven from Whidbey Island. Tony Pickering, chair of Whidbey Island Bank, will be chair of the combined bank. The merger means that the combined banks will be able to offer some financial services as soon as this month that they hadn’t in the past. For instance, Heritage has approval from the Federal Deposit Insurance Corp. to manage trusts and endowments for families and nonprofits. With the merger, Heritage is extending that service to the Whidbey Island branches. The merger will likely mean that there will be some layoffs in the customer support areas of the banks, Vance said. They’re not sure how many positions will be eliminated. “We’re hoping that in the process between now and October, or maybe a little bit later, there will be positions created through attrition” to lessen the need for layoffs, Vance said. One of the advantages of the merger is that Whidbey Island Bank has almost all its branches north and Heritage Bank has almost all its branches south of King County. “With many mergers, you’ll have overlap and branch closings,” McDonald said. “In this particular case, we don’t have that.” With the footprint of the banks meeting in King County, they see that as an area to expand. “That’s one of the major benefits of the combination of the two companies in terms having the additional resources to expand into that market,” McDonald said. Snohomish County has been an important area for Whidbey Island Bank. And it will continue to be for the combined company, McDonald said. “We’re seeing very favorable business activity in Snohomish County,” McDonald said. “Our outlook for the bank and customer base in Snohomish County looks to be very favorable.”

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Jim Davis is the editor of The Herald Business Journal in Everett, Washington, a partner publication of The Bellingham Business Journal.

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8 June 2014

The Bellingham Business Journal CRAFT BREWERIES

Rule threatens brewer, farmer grain sharing

FDA wants brewers to dry spent grain before handing it over BY JERRY CORNFIELD The (Everett) Daily Herald What beer makers don’t want, farmers do. It’s those soggy used-up grains, a by-product of the brewing process, that farmers relish as feed for their livestock. Brewers give the grain away to those willing to pick it up. This practice, considered sustainable and environmentally responsible, has gone on for years without interference from government. But a federal agency is pondering changes in how animal feed is handled, and brewers, farmers and federal lawmakers are worried it could seriously crimp, or even end, the longstanding practice. As now written, the proposal drafted by the Food and Drug Administration implies that brewers and distillers would need to completely dry and package their spent grain before giving it to farmers. “If they pass this it will put a financial burden on a lot of people,” said Shawn Loring, owner of Lazy Boy Brewing in Everett. “It will add costs to the amount of beer that you make and it will have an immediate impact on the price.” Brewers would need to buy and install driers capable of handling the large volumes of grain used in the beer-making process. And that could force smaller brewers out of business because the equipment is expensive and the power to run them isn’t cheap. “I can say without hesitation it would be markedly detrimental to have to go the route they talked about,” said Pat Ringe, vice president of brewing operation for Diamond Knot Brewing Co. in Mukilteo. Brewers, farmers and their allies in Congress have been pushing back on the FDA proposal for several months — and it seems to have worked. In April, Michael R. Taylor, the FDA’s deputy commissioner for foods and veterinary medicine, said the agency never intended to target the spent grains in this manner and would issue revised language this summer. “We agree with those in industry and the sustainability community that the recycling

of human food by-products to animal feed contribute substantially to the efficiency and sustainability of our food system and is thus a good thing,” he wrote on the FDA blog April 24. “We have no intention to discourage or disrupt it. While Taylor’s comments were welcomed, no one will be convinced until they see the new language. “We’re monitoring it,” Ringe said. “Now that we’ve collectively screamed our heads off about it, we’ll see.” Farmer Forest Hughes of Granite Falls wants the FDA to make it clear the idea is a nonstarter. “They just need to take it off the table,” he said. “If the system isn’t broke, don’t try to fix it.” Hughes picks up barrels of spent grain from several brewers and distillers each week including Lazy Boy and Diamond Knot. “It’s a very good source of feed,” he said. What he doesn’t use for his livestock, he said he sells to other farmers in order to recoup what he spends making the circuit to pick up the spent grain. If the FDA doesn’t change course, he said, it will mean the loss of an affordable source of grain and a small income stream as well. Members of Congress are hopeful Taylor’s comments represent the FDA’s intentions. Yet 54 representatives, including Democratic Reps. Suzan DelBene and Rick Larsen of Washington, sent a letter to FDA Commissioner Margaret Hamburg on May 5 pressing the agency to make sure the revised language steers clear of the brewer-farmer relationship. “It is imperative that these rules remain focused in their scope and do not attempt to solve food safety problems that do not exist,” federal lawmakers wrote. DelBene said the letter reflects the concern of lawmakers. “The final rule isn’t out yet,” she said. “We want to be sure it is going in the right direction.”

Jerry Cornfield is a staff writer for The Daily Herald in Everett, Washington, a partner publication of The Bellingham Business Journal.

JOBS REPORT

Local unemployment under 6% BY EVAN MARCZYNSKI The Bellingham Business Journal

1057284

Whatcom County’s unemployment rate was initially estimated at 5.8 percent in April, the first time since 2008 the county’s jobless level has dipped below 6 percent, according to the latest report from the Washington State Employment Security Department. The 5.8 percent initial estimate is down from a 6.8 percent estimate from the same month last year. It is also down from a revised 7 percent estimate from March 2014, according to the report.

New job creation does not appear to be a major contributing factor to the county’s falling unemployment rate. Whatcom County added just 120 jobs in April 2014, compared to the same month the previous year. An estimated 96,630 county residents held jobs in April. Within the same time frame, the number of county residents counted as unemployed— meaning those who are out of jobs but actively seeking work—fell by 1,030, according to the Employment Security Department’s estimates.

JOBS, PAGE 26

June 2014 9

The Bellingham Business Journal

The Book of Lists: Featured Rankings

GENERAL CONTRACTORS Ranked by number of local employees

Rank

Company, address

Phone/fax/website

Employees

Top executive

Year Est.

Services/Projects of note

Matrix Service Inc. 3810 Bakerview Spur

685-2000/671-2973 matrixservice.com

350

Jim Ryan

1984

Industrial construction

Haskell Corp. 1001 Meador Ave.

734-1200/734-5538 haskellcorp.com

300

Fred Haskell

1890

Industrial/heavy commercial construction

Diamond B Constructors Inc. 3436 Airport Drive

734-3600/733-2849 dbnw.com

250

Paul Johansen

1909

Mechanical, plumbing, oilrefinery work, Providence Everett Medical Center, WWU Miller Hall

IMCO General Construction 2116 Buchanan Loop, Ferndale

671-3936/671-8808 imcoconstruction.com

150

Frank Imhof

1978

Wastewater treatment plants, utlities/truck-crossing improvments

Dawson Construction Inc. 405 32nd St., Suite 110

756-1000/756-1001 dawson.com

125

Peter C. Dawson

1967

Full-service general contractor, KeyBank rebuild, Walton Place One, 1835 Barkley Blvd.

Exxel Pacific 323 Telegraph Road

734-2872/671-7616 exxelpacific.com

120

Kevin DeVries, Bruce Eskeberg, Geoff Stodola

1989

Mixed-use, hotels, senior housing, churches, schools, 523 Broadway St., MercedesBenz of Lynnwood

Andgar Corporation 6920 Salashan Parkway, A-102, Ferndale

366-9900/366-5800 andgar.com

115

Todd Kunzman

1935

Heating, ventilating and air conditioning, plumbing, metal fabrication

Moncrieff Construction 8510 Guide Meridian, Lynden

354-7602/354-8160 moncrieffconstruction. com

100

Sam Moncrieff III

1990

Concrete construction, flatwork, Peace Arch Border Crossing expansion, Fountain Bistro flooring

Boss Construction 4945 Guide Meridian

398-2300/398-2302 bossconstruction.biz

Tim Hart

1992

Heavy civil construction

Strider Construction 4721 Northwest Drive

384-8097/380-3456 N/A

Jim Gebhardt

1988

Heavy civil underground, environmental

Razz Construction 4055 Hammer Drive

752-0011/752-0099 razzconstruction.com

Don Rasmussen

2005

General contractor, heavy civil construction, Monte Cristo Bridge, Brightwater Substation

Tiger Construction 6280 Everson Goshen Road, Everson

966-7252/966-2506 tigerconstruction.us

Ken Isenhart

1974

Heavy construction, site work, roadwork, utilities, subdivisions, grading

What is the Book of Lists? The Bellingham Business Journal’s Book of Lists is an annual report of Whatcom County business statistics useful for prospecting and fact-finding in the region’s key industries. It is published each February as a supplement to the BBJ, and select lists are featured in the journal each month. The full book contains more than two dozen listing categories, including fields such as real estate, manufacturing, financial and professional services,

technology, health care, hospitality, recreation, automotive and marine services, and large public and private sector employees. We hire a researcher to contact local businesses and organizations to ask for the information contained in the lists. Rankings are generated based on those responses, as well as additional research, where necessary. There is no charge to be included in the book, and we assume that information provided by companies

is accurate. Due to space constraints, the lists include only the highest ranking firms. Some firms choose not to be included, or do not return requests for information before the book’s annual deadline. Some of the lists featured in monthly editions on the BBJ will also be shortened, due to space constraints. These lists rely on research completed last year, and some items may have changed since then.

We make every attempt to provide accurate information. But if you notice an error or believe something important has been omitted, please contact us at 360-647-8805. Did you miss the last book? You can pick up a copy, or get extras for home or work, at our office, located at 1909 Cornwall Ave. Also check out our “green” edition, online at BBJToday.com.

10 June 2014

The Bellingham Business Journal

Market Indicators

Jobs: Local unemployment dips under 6 percent Unemployment Rate

Jobless benefit claims

April 2014: 5.8% April 2013: 6.8%

Includes non-seasonally adjusted figures in Whatcom County

10%

Bankruptcies

Year-to-date: 161 Annual change: �20.69%

April 2014: 2,538 April 2013: 2,477

Includes continued unemployment benefit claims in Whatcom County

4,000

Includes filings for Chapters 7, 11 and 13 in Whatcom County

3,000

2,000

30 20

1,000

2% J F 2013

J F 2014

SOURCE: WASHINGTON STATE EMPLOYMENT SECURITY DEPARTMENT

April 2014: 49

Chapters 11,13 Chapter 7

10 J F 2013

J F 2014

J F 2013

SOURCE: WASHINGTON STATE EMPLOYMENT SECURITY DEPARTMENT

J F 2014

SOURCE: U.S. BANKRUPTCY COURT, WESTERN DISTRICT OF WASHINGTON

Spending: Little change in monthly tax payout Sales-tax distribution Year-to-date: $6.47M Annual change: �1.09%

April 2014: $1.41M

J F 2013

Canadian dollar

Includes original registrations in Whatcom County

Includes monthly averages (Canada-to-U.S.) at market closing

April 2014: 1,130 April 2013: 1,198

Includes basic and optional local sales tax to Bellingham

$2.25M $2M $1.75M $1.5M $1.25M $1M $750K $500K $250

Motor-vehicle registrations

J F 2014

1,250

$1.05

1,000

$1.00

750

$0.95

500

$0.90

250

$0.85

SOURCE: WASHINGTON STATE DEPARTMENT OF REVENUE

April 2014: $0.91 April 2013: $0.98

J F 2013

J F 2014

SOURCE: WASHINGTON STATE DEPARTMENT OF LICENSING

$0.80

J F 2013

J F 2014

SOURCE: BANK OF CANADA

Housing: Single-family home, condo prices rise Housing sale prices

Housing sales

Includes sales of single-family houses and condos in Whatcom County

$350K $250K

Average price Median price

$150K $100K $50K J F 2013

J F 2014

SOURCE: NORTHWEST MULTIPLE LISTING SERVICE

4.5% 4% 3.5% 3% 2.5% 2% 1.5% 1% 0.5%

Includes sales of single-family houses and condos in Whatcom County

400 350 300 250 200 150 100 50

$300K $200K

Foreclosures & Delinquencies

Closed: Year-to-date: 706 Annual change: �3.22% Pending: Year-to-date: 1,110 Annual change: �3.90%

Average: April 2014: $290,186 April 2013: $276,733 Median: April 2014: $243,150 March 2013: $248,250

Pending: April 2014: 329

Pending sales Closed sales

J F 2013

Closed: April 2014: 190

J F 2014

SOURCE: NORTHWEST MULTIPLE LISTING SERVICE

Delinquency rate: February 2014: 2.93% February 2013: 4.02% Foreclosure rate: February 2014: 1.11% February 2013: 1.46%

Delinquency rate Foreclosure rate

J F 2013

J F 2014

SOURCE: CORELOGIC

Other factors: Anticipated drop seen at airport Airport traffic

Cruise terminal traffic

Year-to-date: 188,203 Annual change: �7.76%

Includes total enplanements at Bellingham International Airport

70K

Includes inbound and outbound passengers at Bellingham Cruise Terminal

4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500

April 2014: 46,882

60K 50K 40K 30K 20K 10K J F 2013

SOURCE: PORT OF BELLINGHAM

J F 2014

Building-permit values

Bellingham: Year-to-date: $51.96M Annual change: �19.70%

Year-to-date: 5,450 Annual change: �6.20%

$30M

April 2014: $9.11M

$25M

April 2014: 1,550

$20M $15M $10M $5M

J F 2013

SOURCE: PORT OF BELLINGHAM

J F 2014

J F 2013

SOURCE: CITY OF BELLINGHAM

Graphs include the most recent data available at press time. Annual changes show cumulative difference from the same time period during the previous year. Data include raw numbers only and are not adjusted to account for any seasonal factors.

J F 2014

June 2014 11

The Bellingham Business Journal BUSINESS CLOSING

Video rental shops see signs of industry’s fall

Trek Video closed in May, but Bellingham’s remaining two movie rental businesses survive despite rise of online competition BY EVAN MARCZYNSKI The Bellingham Business Journal At noon on a recent Tuesday, Rob Olason, as usual, opened Trek Video, his movie rental shop in Bellingham’s Fairhaven District. But when one of the day’s first customers asked Olason to stand out front and pose for a photograph, it was clear that this Tuesday would be different than any of the other hundreds he has spent in his store since it opened in 1990. Having struggled through the recent economic recession and rise of online movie streaming, Olason decided last month to close Trek Video, one of Bellingham’s last remaining movie rental shops. Trek’s final day was May 10. A liquidation sale will likely continue throughout June. “It’s not surprising. It’s sad,” said Jonathan Sodt, a former employee who’s now a graphic designer and cartoonist. “It’s been pretty clear to me that the industry has been changing. I’m impressed and proud that Rob has held on as long as he has.” Olason said Trek Video was doing well up until 2008. But the recession, coupled with the rise of online streaming services such as Netflix, created a double whammy of competition and challenge. As one of the most popular on-demand media streaming services, Netflix reported more than 33 million U.S. subscribers in 2013, with annual revenue of more than $4.3 billion. Olason said Trek survived previous business slumps, with rentals usually recovering after three or four down years. But since the last drop, business hasn’t returned. Although Olason said he believes rental stores still have intrinsic benefits to customers that streaming services cannot match, the turmoil has given him an uncertain view of his industry’s future. “It’s very likely that in five years there will be no more video stores in town,” Olason said. Trek’s closure leaves just two movie rental stores in Bellingham: Crazy Mike’s Video at 1066 Lakeway Drive, and Film Is Truth 24 Times A Second at 211 W. Holly St. That Bellingham can still

support two rental shops is somewhat of an anomaly, considering the downward trend of the industry, said Keith Carmack, store manager at Crazy Mike’s. After years of growth, business leveled off for Crazy Mike’s in 2011, Carmack said. But the store continues to rent enough movies and video games to sustain its operation. “We’re definitely making a profit still, which is odd considering the overall climate of the industry,” Carmack said. Crazy Mike’s found success in the past decade by buying up DVD box sets of popular television shows, such as ABC’s “Lost” and Fox’s “24,” Carmack said. Focusing on TV shows, which split up seasons into a series of DVDs, hooks customers and almost assures

Rob Olason, owner of Trek Video, restocks shelves as his rental shop in Bellingham’s Fairhaven District. Olason decided to close Trek in May. EVAN MARCZYNSKI PHOTO | THE BBJ

repeat rentals, he said. TV shows are also conducive to “binge viewing,” where fans watch an entire season, or even an entire series, in one sitting, he added. Netflix encourages the same style of viewing by releasing entire seasons of some of its most popular shows all at once, instead of drawing them out through weekly installments. Carmack’s business decisions are influenced heavily by Netflix, he said. He constantly monitors the films the service puts out on the Web, and tries to beat it on new releases. He later weeds out movies that prove less popular with renters, or ones become widely available online. John Saxer, a longtime

RENTALS, PAGE 12

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The Bellingham Business Journal

RENTALS, FROM 11 Crazy Mike’s employee, said rental stores face an uphill battle when trying to attract younger customers more apt to prefer computers and streaming services to DVDs and Blu-Ray Discs. “Everything is changing because of the technology,” Saxer said. Carmack said he was sad to hear of Rob Olason’s decision to close Trek Video. But it wasn’t hard for him to believe the news. “There are no surprises anymore,” he said. The same thing is true for Emily Marston and Karl Freske, who opened Film Is Truth in 1997. Marston said Film Is Truth has always focused on the number of movie titles they carry in the store, rather than the number of copies of a particular movie, a strategy used for decades by larger chain stores like Blockbuster, which closed its last companyowned locations earlier this year after filing for Chapter 11 bankruptcy protection in 2010. She and Freske have always considered Film Is Truth as a specialty purveyor of rentals, adding that their business is more comparable to a library than a retail store. They have already begun exploring new strategies to keep Film Is Truth afloat should online competition grow even more formidable, although Marston declined to go into

Trek Video focused on carrying foreign-language films, although owner Rob Olason also catered to customers seeking new releases. EVAN MARCZYNSKI PHOTO | THE BBJ greater detail. The store doesn’t generate huge returns, Marston said, but its business is sustainable. “We have been able to break even,” she said. Marston said Film Is Truth survives due to its supportive customers and a strong “buy local” ethic in Bellingham. Carmack at Crazy

Mike’s said the same about his store. Since opening Film Is Truth, Marston said she and Freske have stuck to several core business principles, including not taking on large amounts of debt and focusing on movie rentals instead of diversifying and offering other types of services to supplement the store’s income.

But the challenges they face today have been there since the beginning, she said. “We knew it was a dying industry when we opened the store,” Marston said. The U.S. DVD, game and video rental industry shrunk by 13.7 percent annually between 2008 and 2013, according to the market research firm IBISWorld. A little more than 4,200 movie rental businesses nationwide remain in operation today. Local stores that have survived have done so, in part, due to the communal and social nature of the movie renting process, said Patrick Dodds, a student filmmaker at The Documentary Center in Bellingham. “People can meet people, and they can feel like they’re going to a fun place,” Dodds said. “That’s something that streaming can’t do.” Dodds is currently working on a documentary about Bellingham’s movie rental shops. It’s called “Still Playing.” He hopes to have it finished within the next few months. For Dodds, the closure of Trek Video hit hard, emotionally, he said. The filmmaker, who has a disability (he asked that its specific nature not be included in this article), said trips to movie rental stores became regular rituals when he was younger, granting a reprieve from the less enjoyable aspects of daily life. “Video stores were kind of my sanctuary,” he said.

Logos plans new downtown office space BY EVAN MARCZYNSKI The Bellingham Business Journal Logos Bible Software plans to remodel a former music shop on Holly Street into new office space, which will eventually connect to the company’s building on Com-

mercial Street in downtown Bellingham. The company, which publishes electronic Bible study tools, has a building permit for the project currently pending with the City of Bellingham. City officials have estimated the valuation of the project at $175,000.

P R E M I E R

The space, at 204 W. Holly St., is the former home of Musician’s Center. It sits next door to the Wild Buffalo House of Music. Logos president and CEO Bob Pritchett said his company plans to eventually connect the new office space with its existing building on Com-

P R O G R A M S

•

mercial Street. “The plan at the moment is to make it habitable and then connect it,” Pritchett said. A construction timeline has not yet been set, nor has a decision been made on which department or component of Logos will move to the new space.

The expansion is to help accommodate Logos’ expanding workforce. Pritchett said the company, which moved to Bellingham from Oak Harbor in 2002, currently employs more than 400 people.

P R O V E N

V A L U E

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Little Tiger Toys closes downtown BY EVAN MARCZYNSKI The Bellingham Business Journal Little Tiger Toys in downtown Bellingham closed for good in May. Store manager Selah TaySong announced the decision in an email to customers on May 14. The store’s final day was Monday, May 26. “We deeply appreciate all of the community relationships and support,” Tay-Song said. “We have a lot of customers who care about what we do, but not enough customers to carry us in this space.” Tay-Song said Little Tiger Toys struggled to make a profit each year since moving to its current location at 112 Grand Ave., in May 2012. The store opened in 2008 at 1417 Railroad Ave., next to Casa Que Pasa. Calling 2014 a “make it or break it” year, Tay-Song said the goal was to grow Little Tiger Toys’ annual profit by 1-5 percent by the end of the year. But that goal now appears unattainable. She declined to say how much money Little Tiger Toys made in 2013. But she did say the store was profitable prior to its move to Grand Avenue. Tay-Song said Little Tiger

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TOYS, PAGE 26

The Bellingham Business Journal

June 2014

Member Engagement By Guy Occhiogrosso We have just passed my ﬁrst 90 days as your President & CEO of the Chamber. I want to thank all of you who have welcomed me and shared your successes and challenges. Please know I value your honesty and commitment to both your businesses and our business community. The future is bright for our Chamber, but we need your help. We need your engagement. As a member focused organization, we want to hear from you. Two speciﬁc opportunities are our Governmental Af-

fairs Committee and our Cross-Border Committee. These committees will be the Chamber’s sounding board for all political, governmental and border matters. In the past, we have tackled the issue of the Canadian sale tax exemption, quashed the proposal for a cross-border fee, and worked with the city of Bellingham on permitting issues our members were experiencing. Our involvement in the Western Hemisphere Travel Initiative produced the Enhanced Drivers License, and we coordinated the broader business community’s effort in responding to the need for a new power deal at Alcoa

Intalco Works. If this is something that is of interest to you, please let me know. We will use this committee to vet potential political actions of the Chamber and to stay informed of all local and regional issues. In fact at our April meeting, we were fortunate to have Congressman Larsen join us for a few minutes to discuss federal items with local concern. Don’t miss out on this great membership opportunity! And in general, please do not hesitate to contact me – my door is always open to you.

The Bellingham Business Journal

Members of the Week:

June 2014

Chamber Member MVPs:

The Chamber MVP is an honor given to a member or member organization that has gone above and beyond the call of duty. These members generously volunteer their time to help with Chamber events and programs and without whom we could not accomplish many of our core activities. March 31st - Torre Café

May 5th - Interfaith Community Health Center

April 7th - The Unity Group May 12th – McDonalds

March – Becky & Larry Raney of Print & Copy Factory

April 14th - Orphalee Smith, CPA

April – Danielle Rosellison and Kelsey Briscoe of Trail Blazin’ Productions May 19th - Data Link West April 21st - DVSAS (Domestic Violence Sexual Assault Services of Whatcom County)

New Members: 3Sixty Day Spa A 1 Septic Solution Abbotsford Heat Hockey ACN Arachane Investigations Bellingham Jazzercise BellinghamLocalSearch

May – Leena Kirschman of Neighborhood Mortgage The Chamber Member MVP is sponsored by RBC Wealth Management and Laserpoint Awards and Promotional Solutions.

April 28th - US Bank Best Version Media Boundary Bay Brewery Canadian Coupon Club CRE West Coast Debbie Cicchitti Accounting Dream Big Consulting E Fresh Design El Tapatio Restau-

rant Evergreen Christian School Gorman Publicity Healthy Living Center Hilton Home2 Suites Bellingham Icebug USA Iron Street Printing It Works Wraps Kucumber Skin

Lounge La Quinta Inn and Suites Laurie Satushek Real Estate Lifestyle Massage & Skin Care Lyoness MIND Development and Design Movement Mortgage Next Generation

Legal Services Nooksack Northwood Casino One Suite World Parker Corporate Services Powertek Praise 106.5 Proscapes Rock Works Striker Products The Goldsteins at

Windermere Real Estate The Leopold Trail Blazin’ Productions United Site Services Whatcom Humane Society WORC Senior Lifestyle Services

June 2014

B u s ine s s

The Bellingham Business Journal

Na m e

Newsletter Title Got Beer?

Chamber will partner summer,” stated Bellis Fair Mall to Chamber CEO Ocam beerB en-u s inwith e s s Oktoberfest Na m e host an chiogrosso. “We’re —and you ho you are—are celebration to coincide ripe for a new fall with Bellingham Beer event. Beer, wine, group. They Oktoberfest food, music and and Bak- goodgreat success.” rtsBy in Shelli all theJones Week. Parkway erview ex-part onRoad. Satur-The fun Occhiogrosso are an integral ws,Bellingham they homebeer will be held th enthusiasts—andday, you September outdoor festival pects to seeCounty’s at least 13 will of Whatcom d they knowthrow who you are— feature local brew6,000 beer lovers from 11am-9pm at Bel- culture, and I know me are10-day an active group. eries and wineries, attend the festival, this event will be a lis Fair Mall’s parking They are aﬁ cionaas well making it attracon for their success.” “And dos in all the locallot at the corner of as food greattive for vendors and beverage – Belbrews, they home vendors, sponsors. Sponsorwe’ve made it fun for Cordata Parkwaywill and partner Chamber ones summer,” stated Beer Week. brew and they Bakerview Road. music and ships and vendor the whole family by The Mall with Bellis Fair to Chamber CEO Octhrow an awesome live enterapplications are nnual Bellingm beer enadding a bouncy house outdoor festival will 10-dayruns celebration tainment. available through the r Week host an Oktoberfest “We’re kids, chiogrosso. face paintfor you their favorite feature local breweries “We’ve for the Chamber’s website – nd ptember 12 beverage – Bell- andcelebration made ing, bellingham.com. and lotsripe of kid-for a new fall wineries, as well toasitcoincide you are—are Sunday, Sepingham Beer fun for We’ll also friendly food!”have saida food vendors, music st with Bellingham Beer event. the whole crew from KISM Beer, wine, 1 Week. and isThey oproup. and entertainment. 3rd annual Bellfamily by adding a broadcasting live a The nonprofit, Week. Oktoberfest good food, music and in all the ingham Beer Week Kid Zone including a from Oktoberfest, “We are excited about ative effort of runs from September house for the which will makeare the an integral part willbouncy beevent held on Saturfun hosting an that ,tethey home members of 12 through Sunday, kids, face painting, event even more fun! willday, bring out the com-the13th So bring the September of whole Whatcom County’s beer commuSeptember 21st and and lots of food hey throw munity and allow us to is operated as a non-from kids11am-9pm will enjoy!” saidat Belfamily outculture, to experi- and I know linghamBeerem)proﬁ 10-day t, collaborative Occhiogrosso. ence Oktoberfest! showcase not only the effort of passionate “Weimproveare excited parking to lisnew Fair Mall’s this event will be a great for theirof the local members host an event that ingham/ ments property, of lottoatthethe great success.” “And beer community. bringcorner our comverage – Belm Chamber of but alsowill to welcome www.Belling- Cordata munity together and and Parkway we’ve made it fun for rce(See and Bellis eer Week. some of our new tenhamBeerWeek.com.) allow us to showcase l decided to The Bellingham/ local breweries and Bakerview Road. The the whole family by ants,” (we could state a n the bandWhatcom Chamber food establishments nual Bellingcouple?), said Mall outdoor festival adding a bouncy house of Commerce and including our newestwill nd join the Manager, Rene Morris. Week runs additions to Bellis feature local breweries for the kids, face painton!Bellis Fair Mall decided to “hops” on Fair… Buffalo Wild “We have Ski to Sea in mber 12 and andWings r CEO, Guy as well as ing, and lots of kidthe bandwagon Chipolte the springwineries, andand many join the celebration! said Mall Manager, unday, Seprosso anfood vendors, music friendly food!” said community celebraChamber CEO, Guy René Morris. t that the and is op- an-tions and fairs theto Sea Occhiogrosso “We haveinSki and entertainment. Jones

Got beer?

Got Beer?

nounced that the in the spring and nonprofit, Chamber will partner many community “We are excited about KISMof and Belvewith effort celebrations and fairs lis Fair Mall to host hosting in the summer,” an event that members of an Oktoberfest celstated Chamber bring out the comto coincide willCEO Occhiogrosso. eerebration commuwith Bellingham “We’reand ripe for a munity allow us to nghamBeerBeer Week. Oktonew fall event. Beer, will be held showcase wine, goodnot food,only the ) berfest on Saturday, Septemmusic and fun are new improveber 13th from 11am-great an integral part of gham/ 9pm at Bellis Fair ments Whatcom County’s to the property, Mall’s parking lot at culture, and I know Chamber of the corner of Cordatabutthis event be a also towill welcome and Bellis

The Bellingham Business Journal

June 2014

June 2014 17

The Bellingham Business Journal CONSTRUCTION

Bellingham seen as construction “hot spot” Number of local projects in planning and development outpaces those in other Washington state metro areas BY EVAN MARCZYNSKI The Bellingham Business Journal With a number of new building projects in the pipeline, Bellingham was recently placed on a list of U.S. cities where construction activity is expected to grow rapidly over the next 12 to 18 months. Bellingham is among 20 cities nationwide designated as “hot spots” of future building activity, according to Reed Construction Data, a company that provides business information to the U.S. construction industry. According to Reed, Bellingham has an expansion index value of 6.79. Cities with index values of 1.0 or greater are viewed to be expanding. Those with values of 5.0 or greater are seen as anticipating rapid growth over the next year. “The bigger the number, the better,” said Bernie Markstein, chief economist with Reed Construction Data. Some of the major local building projects influencing the data include the Marriott Towneplace Suites hotel development, Whatcom Community College’s Health Professions Education Center, Western Washington University’s planned renovation of Carver Gym, the Orleans Place Apartments in Bellingham, and activity in the Fairhaven Marine Industrial Park.

HOTELS, FROM 1 nent financing. But new limits set in April on the amount of money businesses can secure through the 504 program changed those plans. Hotel Services Group is currently developing a Marriott TownePlace Suites project in Marysville and is using its 504 loan capacity on that project instead of the Holiday Inn in Bellingham, Mitzel said. He said a significant portion of the Bellingham development’s costs are being covered through loan commitments with Columbia Bank, with additional money and capital being provided by development partners and outside investors. The delayed start date should not impact a Nov. 15, 2015, completion deadline, which is set by Hotel Services Group’s lease with the port. Mitzel told port commissioners last year that he hoped to have the Holiday Inn open before summer 2015, in time for the warmweather tourist season. But that plan appears unlikely now. City of Bellingham records indicate no building permit applications have yet been filed for the project, at least as of the Bellingham Business Journal’s last press deadline. The project’s builder will be M&H Contracting of Mount Vernon, said Lennart Bentsen, director of operations for Hotel Services Group. The Holiday Inn construction, once begun, is not expected to affect airport operations, said Daniel Zenk, the port’s aviation director. All of the city’s newest hotel developments are located in close proximity to the airport. At 805 Home Lane, just off of Northwest Avenue, construction has begun on four-story, 106-unit Hilton Home2 Suites.

The Cornerstone Building in Bellingham’s Barkley Village, in its final stages of construction in May. Building owners have already begun leasing apartments, and commercial tenants should open for business soon. evaN marczyNski pHOTO | THe BBJ Markstein said Reed’s expansion index assesses projects currently underway and projects in the design and planning stage, although projects still in development are given more weight in calculating the actual expansion value.

That value does not indicate that growth is guaranteed, Markstein said, only that there is more planned activity. The “hot spots” in Reed’s reports tend to

Dustan Williams, CEO of Erck Hotels of Missoula, Montana, the project’s developer, said inclement weather had briefly set back construction on the project, which was originally to begin last fall. His company is aiming to open between January and March of 2015. “We just want to open up some time in that first quarter [of 2015],” Williams said. Exxel Pacific Inc. of Bellingham is the Hilton development’s builder. The hotel will be about 56,000 square feet in size, and its plans include an indoor pool, fitness center, breakfast-service space and a game room. The project’s total valuation should be around $14 million. Williams said his planning to sell or lease about one-acre of the hotel’s property to a restaurant tenant, although the name of that tenant has not yet been revealed. Across the street, at 4050 Northwest Ave., a five-story, 83-room Marriott Towneplace Suites has also started construction. The project is an addition to an existing Marriott SpringHill Suites that opened last fall. The TownePlace Suites will feature a combination of studios, one-bedroom suites and two-bedroom suites, all with full kitchens. The two connected hotels will share some amenities, including the swimming pool, hot tub and fitness center currently in the SpringHill Suites. But he TownePlace hotel will run its own breakfast bar in its lobby. Dawson Construction Inc. of Bellingham is the project’s builder. The TownePlace Suites is expected to be complete in November of this year, said Shaiza Damji, managing director for 360 Hotel Group, the project’s developer. Over near Bellis Fair Mall, at 4051 Meridian St., a building permit was issued May 13 for

HOTELS, PAGE 26

be in smaller metro areas, like Bellingham, Markstein said. That’s due to the fact that just a handful of major projects can move the index higher in smaller cities, as opposed to larger ones like Seattle, where more activity regularly occurs. Several types of projects are driving the index up in and around Bellingham. Markstein noted new construction plans for the Bellingham and Ferndale school districts, several major roadwork projects, new mixeduse buildings, and also plans for additional sewage and water treatment plants. He said the hot-spot growth around the county is generally driven by each specific location’s main economic propellers, for example: energy in North Dakota, manufacturing in Wisconsin, and tourism in California. Broadly, hot-spot activity currently seen nationwide is driven by energy, manufacturing, tourism and hotels, he said. “Each area has its own little story, but at the same time there are some themes,” Markstein said.

Evan Marczynski, associate editor of The Bellingham Business Journal, can be reached at 360-647-8805, ext. 5052, or evan@bbjtoday.com.

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18 June 2014

The Bellingham Business Journal

Business Toolkit

Time to polish up your public-speaking skills “Hey, can you give a 45-minute presentation to our group next week?” That simple question can make otherwise poised and polished business professionals shake in their shoes. I can relate, because I have been one of those shoe-shakers. Does the thought speaking in front of a group of 50 people make you cringe? How do you feel about discussing your company’s products and services with a dozen people sitting around a conference table? How about those timed one-minute elevator speeches given at networking events? Do public presentations of any size make your palms sweat and your heart race? If so, it may be time to invest time and energy into polishing up your public speaking skills. Being able to confidently talk with others about your company, your products or services, and your industry is an important marketing tool. Solid public speaking and presentation skills can help increase sales and help build your personal brand. We’ve all seen that person—you know, the one who can stand up in front of a group and

effortlessly entertain and enlighten a crowd. They infuse their speeches with just the right amount of humor. They get their point across clearly, and they inspire us to take action. Many of us are in Patti awe of these people. We are humbled Rowlson and maybe even intimidated by On Social public-speaking Media & dynamos. How do they do Marketing it? In most cases, becoming a confident speaker starts with practice, education and coaching. One method people use to polish their speaking skills is Toastmasters International, because it’s an affordable and proven system. Toastmasters is an international communi-

cation and leadership development organization made up of more than 290,000 members from 14,350 clubs in 122 countries. Six of those clubs are located right here in Whatcom County. Their mission is “to provide a supportive and positive learning experience in which members are empowered to develop communication and leadership skills, resulting in greater self-confidence and personal growth.” The organization uses a unique learnby-doing method. Members practice their speaking and leadership skills in a no-pressure atmosphere where they are allowed to work through program curriculum at their own pace. A typical Toastmasters meeting has a set agenda that includes opening remarks and club news, time for member speeches, a “Table Topics” session (1-2 minute impromptu speeches by various members), evaluations, and closing remarks. Some folks assume Toastmasters is expensive, but that’s an incorrect assumption. Membership dues are very affordable (approximately $40 every 6 months). This includes two project workbooks (one for

leadership development and one for communication training) and several meetings per month. This year I set a personal goal of working on public speaking and presentation skills,and the Barkley Toastmasters group is helping me work toward that goal. I have three speeches under my belt and have been working on leadership activities within the group. I am definitely a work-inprogress, but the journey has been enjoyable so far. If you are interested in polishing up your public speaking and presentation skills as a marketing tool for your business, consider Toastmasters. You’ll find meeting locations in Lynden, Ferndale, Birch Bay and Bellingham. Guests are always welcome.

Patti Rowlson is a marketing consultant and social media manager at PR Consulting, Inc. She helps Whatcom County small businesses identify, implement and consistently maintain marketing-related programs. Learn more about small-business marketing by connecting with PR Consulting on social media sites or by visiting www.pattirowlson.com.

The “Heartbleed” bug and Web password security With recent news regarding the Internet security issue known as the “Heartbleed” bug, business owners should know how it might be impact them and what they should do to protect themselves. The Heartbleed bug relates to a security vulnerability in a component of recent versions of OpenSSL, a technology that a huge chunk of the Internet’s websites rely upon to secure the traffic, passwords and other sensitive information transmitted to and from users and visitors. Because the Heartbleed bug targets Web and email servers, there is not a lot that regular Internet users can do to fix the problem. But experts are urging people to change the passwords for their various accounts and online services to beef up their security. Since the vulnerability has been around for about two years and using it leaves no trace, assume that your accounts may be compromised. Even though most servers have patched the vulnerability, it is still highly recommended that you change your passwords to ensure your data will continue to be safe. You shouldn’t simply alter your existing passwords; instead, take this opportunity to ensure your online

security by downloading a password manager. Some examples of the more popular password managers are 1Password, LastPass and Dashlane. A quick G o ogle s earch should provide Mike you with informaSullivan tion about these services. On Tech Tips With a password manager, you need & Trends to remember only one master password, and then you can let the software remember all of your log-in information. When you use a password manager to log into a website, you will first visit that site normally. But instead of typing your password into the website, your password manager does the dirty work for you—you don’t have to think about what email address, username, and password you used for the site.

The best part of password managers is their ability to generate a secure, random password for you. Even if you already have an account within the site you’re visiting, you simply need to find the option to change your password, and let the password manager create that complex, secure, password for you. If you prefer the old fashioned way of just remembering your password, here are some tips from the Carnegie Mellon School of Computer Science to make more complex passwords yourself: ▶First, make up a sentence you can easily remember. Some examples: I have two kids: Jack and Jill; I like to eat Dave & Andy’s ice cream; No, the capital of Wisconsin isn’t Cheeseopolis! ▶Then take the first letter of every word in the sentence, and include the punctuation. You can throw in extra punctuation, or turn numbers into digits for variety. The above sentences would become: Ih2k:JaJ; IlteD&A’ic; N,tcoWi’C! As you can see, the passwords generated by this method can be fairly secure, but are easy to remember (as long as the sentence you

pick is one that is easy for you to remember). In cases where an application allows long passwords, you could possibly use the entire phrase as your password. Passwords are your first line of defense, not only for your online accounts, but also on your devices. Think about these facts if you’re reluctant to change your passwords: ▶Research shows that 90 percent of passwords are vulnerable to hacking. ▶The most common password is “123456,” and the second most common password is “password.” ▶One in five Internet users have had their email or social-networking accounts compromised or taken over without their permission. In the end, it’s your data and you can choose how safe you want that data to be.

Mike Sullivan is a network and systems administrator at Tech Help. He helps Whatcom County business owners manage their IT so they can focus on their businesses. Learn more about Sullivan and the Tech Help team by visiting www.gotechhelp.com. Reach him directly at mike@gotechhelp.com.

Bellingham and Whatcom County business owners are eligible for free subscriptions to the BBJ. Call us at 360-647-8805 to sign up.

June 2014 19

The Bellingham Business Journal

Public Records Business licenses Listings, which feature both new and renewed licenses in Bellingham, include business name, licensee name and the business’s physical address. Records are obtained from the City of Bellingham. A Happy Mediom, Sandy L. Farringer, 3719 Greenville St., Bellingham, WA 98226. Ace Kitchen & Bath, Ace Kitchen & Bath Inc., 4380 Tull Road, Bellingham, WA 98226. AH Trucking LLC, AH Trucking LLC 4272 Supreme Creek Lane, Bellingham, WA 98226. AJ Barse, AJ Barse, 3843 Welling Court, Bellingham, WA 98226. AK Motorsport, AK Motorsport LLC, 2005 Kentucky St. Bellingham, WA 98229. Alex Ryan Sailing, Alexander Edward Ryan, 4336 Cordero Drive, Bellingham, WA 98229. All Health, Michelle Lee Fry, 4115 Midwood Lane, Bellingham, WA 98229. All Lawns Bellingham, Grant Davis Johnson, 2110 Harris Ave., Bellingham, WA 98225. All The Sweetest Things, Alissa Jane Blume, 4260 Cordata Parkway, Suite 101, Bellingham, WA 98226. American Truck & Diesel Repair LLC, American Truck & Diesel Repair LLC, 564 Kelly Road, Bellingham, WA 98226. Aptus Counseling, Margo Davis, 1155 N. State St., Suite 311, Bellingham, WA 98225. Armstrong Family Autocare LLC, Armstrong Family Autocare LLC, 5499 Guide Meridian, Bellingham, WA 98226. Ashley’s Boat Works, Ashley Marie Lamm, 1001 C St #P-4, Bellingham, WA 98227. Ashton Concrete, John Moshe Ashton, 846 Woodbine Way, Bellingham, WA 98229. Beauty Salon, Hair Trends LLC, 2825 Meridian St., Bellingham, WA 98225. Bellinghair Styles, Lisa Warren, 1208 Dupont St., Bellingham, WA 98225. Bellingham Distance Project, Bellingham Distance Project, 504 Darby Drive, Unit 310, Bellingham, WA 98226. Bellwether Market, Bellwether Market Inc., 8 Bellwether Way, Bellingham, WA 98225. Benchmark, Benchmark, 2423 Yew St., Bellingham, WA 98229. Big Mountain Draftworks, Adam Daniel Tullis, 125 S. 42nd St., Bellingham, WA 98229. Birthroot Midwives And Birth Center, Birthroot Midwives And Birth Center LLC, 1600 Broadway St., Bellingham, WA 98225. Bisla Construction Inc., Bisla Construction Inc., 1604 Fruitland Drive, Bellingham, WA 98226. Buck Gully Investments LLC, Buck Gully Investments LLC, 1323 Lincoln St., Bellingham, WA 98229. Carmen L. Witte LEAMP/RDH, Carmen L. Witte, 851 Coho Way, Suite 306, Bellingham, WA 98225. Carter The Cabby, Carter James Church, 2415 F St., Bellingham, WA 98225. Claire E. Mannino Psychotherapy, Claire E. Mannino, 1155 N. State St., Suite 322, Bellingham, WA 98225. Collide, Collide, 4203 Academy St., Bellingham, WA 98226. Compassionate Care Case Management, Suzanne Elizabeth Black, 2950 Newmarket St. #101-312, Bellingham, WA 98226. DB Fabrication, Daniel Bos, 2055 Fraser St., Bellingham, WA 98229. Dental Virtual Billing Strategies Inc., Dental Virtual Billing Strategies Inc., 100 Pine St., Suite 201, Bellingham, WA 98225. Dr. Lisa M. Nelsen PLLC, Dr. Lisa M. Nelsen PLLC, 2029 James St., Bellingham, WA 98225. Driven Construction LLC, Driven Construction Company LLC, 1225 Roland St., Bellingham, WA 98229. E-J’s Welding LLC, E-J’s Welding LLC, 1717 Mount Baker Highway, Bellingham, WA 98226. Eclecdecor, Sandra Heinrich, 512 S. 39th St., Bellingham, WA 98229. Eclectic Brain Works, Daniel Ross Friedlander, 3010 Kulshan St., Bellingham, WA 98225. Entheos LLC, Entheos LLC, 1405 Undine St., Bellingham, WA 98229.

Enviroscapes, Enviroscapes, 607 E. Holly St., Bellingham, WA 98225. Erin Landscapes, Erin Landscaping & Masonry LLC, 1407 19th St., Bellingham, WA 98225. Essential Foot Care, William Wadkins, 3994 Roma Court, Bellingham, WA 98226. Evergreen Sampler, Toki Lidu LLC, 137 Windward Drive, Bellingham, WA 98229. EXP Realty International Corporation, EXP Realty International Corporation, 1325 Lincoln St., Suite 1, Bellingham, WA 98229. Fish In Floor Press, Fish In Floor Press LLC, 410 40th St., Bellingham, WA 98229. Flex Construction, Caroline S. Abbott, 3019 Walnut St., Bellingham, WA 98225. Garden Songs, Karol A. Stiegman, 405 Sudden Valley Drive, Bellingham, WA 98229. GM Office Systems, Georgia Mae Moerke, 1800 Texas St., Bellingham, WA 98229. Gracefully Spun, Kaylee Jean Wiebe, 2712 Humboldt St., Bellingham, WA 98225. Green Aerotek LLC, Green Aerotek LLC, 263 W. Bakerview Road, Unit 206, Bellingham, WA 98226. Harbor Integrative Medicine, Harbor Integrative Medicine LLC, 2418 Spruce St., Bellingham, WA 98225. Heating Green LLC, Heating Green LLC, 518 Ohio St., Bellingham, WA 98225. Hot Dawg Pet Care, Tamara Lee Pavesi, 2008 Larrabee Ave., Bellingham, WA 98225. Imports And Classics, Apex Auto Sales LLC, 6010 Guide Meridian, Bellingham, WA 98226. Integrity Carpentry Inc., Integrity Carpentry Inc., 3311 Carrington Way, Bellingham, WA 98226. J&J Jewelry Company, Jamie Anne Kaiser, 3837 Idaho St., Bellingham, WA 98229. Jackalope Tech Services, Nicholas Ray Gramstad, 1118 22nd St., Bellingham, WA 98225. Janet Fedorchuk, Janet Fedorchuk, 237 W. Kellogg Road, Bellingham, WA 98226. JBC Construction, Jordan Fredrick Barrett, 1913 Lake Louise Road, Bellingham, WA 98229. Jean K. Allard, Jean K. Allard, 335 Ohio St., Bellingham, WA 98225. Jessica Gwozdz Photography, Jessica L. Gwozdz, 1232 Sandstone Way, Bellingham, WA 98229. JK Cleaning, Jennifer Grace Kudijaroff, 2524 Woburn St., Bellingham, WA 98226. John Lipke IV, John Winston Lipke IV, 926 Indian St., Bellingham, WA 98225. Karen Christine Russell, Karen Christine Russell, 851 Coho Way, Suite 306, Bellingham, WA 98225. Kate&James, Kate&James, 2717 Kulshan St., Bellingham, WA 98225. Langstan Management LLC, Langstan Management LLC, 1305 Cornwall Ave., Bellingham, WA 98225. Leslie Jones LMP, Leslie Jones, 1229 Cornwall Ave., Suite 209, Bellingham, WA 98225. Let Me Shine, Niki Nita Thane, 1814 Texas St., Bellingham, WA 98229. Luna’s Bistro, Jalapenos, Inc., 3004 Cinema Pl., Bellingham, WA 98226. Marathon Cleaners, Michelle R. Foy, 1111 E. Beachview Pl., Bellingham, WA 98226. Margaret Wilder Band, Margaret Wilder Burke, 2718 Patton St., Bellingham, WA 98225. Margo Davis, Margo Davis, 1021 11th St., Bellingham, WA 98225. Mathew Dorsch DDS PLLC, Mathew Dorsch DDC PLLC. 3400 Squalicum Parkway, Suite 107, Bellingham, WA 98225. Mount Baker Blueberry Farm, American Cannabis Growers LLC, 564 Kelly Road, Bellingham, WA 98226. Nectar Nutrition LLC, Nectar Nutrition LLC, 2612 Erie St., Bellingham, WA 98226. No. 1 Tool Source, Jed Dupraw, 5005 Silver Beach Ave., Bellingham, WA 98226. Nok’s Thai Cuisine, Choice Enterprises Inc., 1213 Dupont St., Bellingham, WA 98225. Norogachi Construction Inc., Norogachi Construction Inc., 1 Bellis Fair Parkway, Suite 202, Bellingham, WA 98226. Northwest Service Management Inc., Northwest Service Management Inc., 2633 Goshen Road, Bellingham, WA 98226. One Bag Organizing, Marina A. Zinn, 3806 Fielding

Ave., Bellingham, WA 98229. Overall Paint, Abigail Buffington Brightman, 4811 Noon Road, Bellingham, WA 98226. PND, PNRD LLC, 6069 Guide Meridian, Bellingham, WA 98226. Pacific Medical Rehabilitation PLLC, Pacific Medical Rehabilitation PLLC, 4540 Cordata Parkway, Suite 101, Bellingham, WA 98226. Pacific Northwest Builders LLC, Pacific Northwest Builders LLC, 3336 Sussex Drive, Bellingham, WA 98226. Panael Corporation, Panael Corporation, 410 W. Bakerview Road, Suite 101, Bellingham, WA 98226. Pet Sitters By The Bay, Pet Sitters By The Bay LLC, 4225 Ridgewood Ave., Bellingham ,WA98229. Printfarm, Hugh Ryan Hudson, 1626 Iron St., Bellingham, WA 98225. Professor Koils Vaporium, Cloud 9 Enterprises LLC, 3765 Magrath Road, Bellingham, WA 98226. Ralph Havens Physical Therapy, Ralph Charles Havens, 2221 James St., Bellingham, WA 98225. Raymond Anthony Zapien, Raymond Anthony Zapien, 2626 Russell St., Bellingham, WA 98225. Ring Of Trees Farm, Fred Emil Gustafson, 790 W. Larson Road, Bellingham, WA 98226. Rob Dogs Exclusives, Robert Ab Dickison, 1506 22nd St., Bellingham, WA 98225. SO Design, Sarah Kimberly O’sell, 927 22nd St., Bellingham, WA 98225. Sand Box, Parth Panchal, 1183 Telegraph Road, Bellingham, WA 98226. Screamin Kitty Inc., Screamin Kitty Inc., 4949 Samish Way, Unit 2, Bellingham, WA 98229. Sears Protection Company, Sears Protection Company, 800 Horton Road, Bellingham, WA 98226. Silver Beach Grocery, Noor Corporation, 609 North Shore Drive, Bellingham, WA 98226. Simple Choice Nutrition, Adrienne Booth, 1601 H St., Bellingham, WA 98225. Social Alliance For A Vibrant Economy, Social Alliance For A Vibrant Economy, 1009 Kenoyer Drive, Bellingham, WA 98229. SPG International LLG, SPG International LLC, 2700 Roslyn Pl., Bellingham, WA 98226. Spice 4 Life, Andrew Clay Lainson, 1831 Racine St., Bellingham, WA 98229. Square 1 Design Studio, Jane Ellen Culleeny, 3111 Newmarket St., Unit 402, Bellingham, WA 98226. St. Paul’s Episcopal Church Of Bellingham St. Paul’s Episcopal Church Of Bellingham, 2117 Walnut St., Bellingham, WA 98225. Sterling Drive Church Of Christ, Sterling Drive Church Of Christ, 558 Sterling Drive, Bellingham, WA 98226. Susan Lynn Smith, Susan L. Smith, 3119 Cowgill Ave., Bellingham, WA 98225. Tapscott Transcription Services, Aaron Tapscott, 2211 Utter St., Bellingham, WA 98225. Tarot Card Project, Jonathan Rush Duncan, 2527 Iron St., Bellingham, WA 98225. Teresa M. Flinn, Teresa M. Flinn, 927 15th St., Bellingham, WA 98225. Tesla Logistics LLC, Tesla Logistics LLC, 4732 Bedford Ave., Bellingham, WA 98226. The Crap Shack, Shannon Marie Sturm, 2301 Wilson Ave., Bellingham, WA 98225. The National Scholar Association, The National Scholar Association, 1300 W. Holly St., Suite D4, Bellingham, WA 98225. The Nestled Bickler, Andreya Jasmine Williams, 1719 E. Maple St., Bellingham, WA 98229. The Sweet Wild, Julianna Albrecht, 1217 Indian St., Bellingham, WA 98225. The Wailing Goat Espresso, Megan Wilford, 929 N. State St., Bellingham, WA 98225. Thompson Consulting Services, Traci Thompson, 3005 Windtree Court, Bellingham, WA 98229. Three Chicks LLC, Three Chicks LLC, 3730 Canterbury Lane, Bellingham, Wa 98225. Tim Maguire dba L&H Painting Company, Tim Maguire, 2810 Utter St., Bellingham, WA 98225. True Dragon Brewing LLC, True Dragon Brewing LLC, 4128 Agate Road, Bellingham, WA 98226. Turtle Tasks, Axiom Cleaning Services LLC, 1807 Franklin St., Bellingham, WA 98225. Urbanecology, Debra Laureen Gear, 610 E. Magnolia

St., Bellingham, WA 98225. Wallace Alan Wilson, Wallace Alan Wilson, 1927 Rhododendron Way, Bellingham, WA 98229. Weddingdash.Com, Ecooper LLC, 4713 Hadley St., Bellingham, WA 98226. Wendy Michelle Hancock, Wendy Michelle Hancock, 4 Hawks Hill Pl., Bellingham, WA 98229. Wild Hare Drum School, Wild Hare Drum School LLC, 2401 Meridian St., Bellingham, WA 98225. Word Pouch, Ryan Lawrence Nelson, 1916 18th St., Bellingham, WA 98225. Wyldside, Wyldside LLC, 2423 F St., Bellingham, WA 98225.

Building permits Includes commercial building activity in Bellingham with an estimated valuation listed at $10,000 or more. Records are obtained from the City of Bellingham’s Permit Center. 5/14/13 TO 5/19/14 ISSUED PERMITS 4051 Meridian St., $9,405,999 for commercial: new five-story, 99-unit hotel: Oxford Suites. Permit No.: BLD2013-00581. 5/13/14. 4131 Meridian St., $2.3 million for tenant improvements: interior remodel, facade renovation and new entry vestibule: Burlington Coat Factory. Contractor: Kirtley-Cole Associates LLC. Permit No.: BLD2014-00133. 5/16/14. 1029 22nd St., $1,864,600 for new four-story, 16-unit multifamily building. Contractor: Puget West Corp. Permit No.: BLD2013-00389. 5/12/14. 516 High St. (WWU Buchanan Towers), $450,000 for commercial: replace and relocate mechanical equipment to improve maintenance access; provide enlarged doorways to improve maintenance access. Contractor: Diamond B Constructors Inc. Permit No.: BLD2014-00080. 5/14/14. 119 N. Commercial St. 165, $120,151 for commercial: addition of partially enclosed raised area within existing office suite: Bellingham Towers LLC. Contractor: RCI Construction. Permit No.: BLD201300220. 5/12/14. 516 High St. (WWU Old Main), $37,000 for commercial: modification of second-floor offices and cubicles. Permit No.: BLD2014-00134. 5/15/14. 3010 Lindbergh Ave., $12,500 for commercial: install suspended rails from ceiling to mount lighting in the main-floor conference room. Permit No.: BLD201400174. 5/13/14. 4173 Meridian St., $10,000 for commercial repair for tilt-up walls. Contractor: Pearson Construction Corp. Permit No.: BLD2014-00179. 5/13/14. 2200 Rimland Drive 104, $10,000 for tenant improvement: reconfigure existing office suite. Contractor: Scoboria Construction Inc. Permit No.: BLD2014-00164. 5/12/14. PENDING APPLICATIONS 6 Bellis Fair Parkway, $1.25 million for tenant improvement: new restaurant tenant; includes new storefront: Buffalo Wild Wings. Permit No.: BLD201400129. 5/15/14. 1251 Lincoln St., $832,276 for new 7,000-squarefoot commercial building. Permit No.: BLD2013-00599. 5/14/14. 4183 Meridian St., $650,000 for tenant improvement: remodel of existing bank. Contractor: Pearson Construction Corp. Permit No.: BLD2014-00186. 5/13/14. 1700 Carolina St., $451,543 for new commercial storage facility. Permit No.: BLD2013-00393. 5/14/14. 204 W. Holly St., $175,000 for tenant improvement: converting existing retail space to offices: Logos Bible Software. Permit No.: BLD2014-00191. 5/15/14. 119 N. Commercial St. (14th and 15th floors), $150,000 for commercial tenant improvement: remodel of old restaurant space into seven office suites; work to completed on portion of 14th floor and all of 15th floor; no change to exterior. Permit No.: BLD201400184. 5/12/14. 521 Kentucky St., $73,252 for commercial: 480-square-foot prep room and bathroom, and 128-square-foot covered breezeway to support existing restaurant: Home Skillet. Permit No.: BLD2014-00155. 5/14/14. 1 Bellis Fair Parkway K5518, $19,000 for commercial: install 10-foot by 12-foot kiosk in the mall. Permit No.: BLD2014-00190. 5/15/14.

5/5/14 TO 5/14/14 ISSUED PERMITS 3210 Orleans St., $546,000 for commercial alterations/repairs: maintenance repairs to existing 42-unit apartment and common areas; includes roof patch, repair siding, interior finishes, cabinet work, new mechanical WHV, new water heaters: Bellingham Housing Authority. Applicant: RMC Architects. Contractor: Dawson Construction Inc. Permit No.: BLD2013-00352. 5/5/14. 1505 G St., $384,000 for maintenance upgrades to existing apartment building: includes new includes roof patch, repair siding, interior finishes, cabinet work, new mechanical WHV, new water heaters, minor upgrades to accessory storage: Bellingham Housing Authority. Applicant: RMC Architects. Contractor: Dawson Construction Inc. Permit No.: BLD2013-00351. 5/5/14. 1 Bellis Fair Parkway 364, $316,000 for tenant improvement: interior remodel of retail space: Lane Bryant. Contractor: Russell-Filand Builders Inc. Permit No.: BLD2013-00592. 5/6/14. 714 Lakeway Drive, $250,000 for tenant improvement: remodel of hotel lobby and dining room/ coffee shop areas on main floor. Tenant: Best Western Lakeway Inn. Contractor: Credo Construction. Permit No.: BLD2014-00149. 5/6/14. PENDING APPLICATIONS 4131 Meridian St., $2.3 million for tenant improvement: interior remodel, facade renovation and new entry vestibule: Burlington Coat Factory. Permit No.: BLD2014-00133. 5/8/14. 3004 Cinema Pl., $400,000 for tenant improvement: remodel shell space for new restaurant: Luna‚Äôs Bistro. Tenant: Jalapenos Inc. Contractor: Scoboria Construction Inc. Permit No.: BLD2014-00114. 5/9/14. 1538 Kentucky St., $395,000 for tenant improvement: new brewery production and tasting room in existing warehouse building. Permit No.: BLD2014-00176. 5/7/14. 3114 Newmarket St., $75,000 for tenant improvement: finish space for new office use. Permit No.: BLD2014-00181. 5/9/14. 2202 Electric Ave., $18,170 for commercial: foundation only for new unheated storage building for Whatcom Rowing Association. Permit No.: BLD201300460. 5/9/14. 4/28/14 TO 5/5/14 ISSUED PERMITS 1610 J St., $1,728,560 for commercial: new 20-unit, mixed-use building. Contractor: PM Construction. Permit No.: BLD2013-00485. 4/30/14. 4545 Cordata Parkway, $100,000 for tenant improvement: interior, non-structural alterations for children‚Äôs neuro program (2,800-square-foot suite in basement level). Tenant: PeaceHealth Medical Group. Applicant: Ross Architecture NW. Contractor: To be determined. Permit No.: BLD2014-00110. 5/1/14. 316 E. McLeod Road 104-105, $20,000 for tenant improvement: interior remodel on upper floor to divide existing office space into two tenant spaces for office use. Contractor: To be determined. Permit No.: BLD201400159. 4/29/14. PENDING APPLICATIONS 4071 Home Road, $375,000 for multifamily: convert from church to motel units and apartments. Permit No.: BLD2014-00160. 4/29/14. 805 Home Lane, $80,000 for new hotel: construction of swimming pool and spa. Permit No.: BLD2014-00163. 4/30/14. 1500 Cornwall Ave. 201-203, $75,000 for new tenant improvement: second-floor interior changes for preparations of three new tenants; no change of use. Permit No.: BLD2014-00142. 4/29/14. 102 Samish Way 107, $58,000 for tenant improvement: interior alteration to walls, ceilings and finishes: AT&T Dealer Store. Permit No.: BLD201400138. 5/2/14. 1 Bellis Fair Parkway 520, $30,000 for tenant improvement: remodel tenant space to facilitate retail sales of takeout beverages, sandwiches and snacks: Big Orange. Permit No.: BLD2014-00161. 4/29/14. 2200 Rimland Drive 104, $10,000 for tenant improvement: reconfigure existing office suite. Contractor: Scorboria Construction Inc. Permit No.: BLD2014-00164. 5/2/14.

recOrds, pAge 20

20 June 2014

records, 19 Liquor/marijuana Licenses Records include license activity in Whatcom County. They are obtained from the Washington State Liquor Control Board. 4/30/14 to 5/14/14 New liceNse applicatioNs peace arch city cafe, Peace Arch City Cafe, a partnership; Kylie Lauren Bestul and John Steven Quimod applied to make changes to an existing license to sell beer/wine in a restaurant at 321 H St., Blaine, WA 98230. License No.: 414219. 5/8/14. Beach store cafe, West Shore Hospitality LLC; John D. Gibb, Diane E. Gibb and Blaine A. Wetzel applied to make changes to an existing license to be a directshipment receiver (in WA only), sell beer/wine/spirits in a restaurant lounge and for catering, sell wine for off-premises consumption and sell kegs to-go at 2200 N. Nugent Road, Lummi Island, WA 98262. License No.: 076795. 5/5/14. 13 Nails & salon co., 13 Nails & Salon Co.; Ralph T. Cuellar applied to sell beer/wine in a restaurant at 907 Harris Ave., Bellingham, WA 98225. License No.: 406348. 5/5/14. ReceNtly appRoved liceNses deepwater Botanicals, at 5373 Guide Meridian Road, Suite D3, Bellingham, WA 98226, received approval for a new license to operate as a tier 2 marijuana producer. License No.: 412154. 5/13/14. virtual services, at 2018 Iron St., Suite B, Bellingham, WA 98226, received approval for a new license to operate as a tier 1 marijuana producer. License No.: 412073. 5/13/14. strong spirits, at 2120 Grant St., Suite 6, Bellingham, WA 98225, received approval for a new license to distill and rectify spirits. License No.: 412094. 5/5/14. Bellwether Market, at 8 Bellwether Way, Bellingham, WA 98225, received approval for a new license to sell beer/wine in a grocery store. License No.: 417800. 5/1/14. the star, at 311 E. Holly St., Suite M101, Bellingham, WA 98225, received approval for a new license to operate as a direct-shipment receiver (in/out of WA). License No.: 408366. 4/24/14. discoNtiNued liceNses seabreeze coffee House, at 21 Bellwether Way, Suite 101, Bellingham, WA 98225, had a license to sell beer/wine in a restaurant discontinued. License No.: 406830. 5/13/14. 4/16/14 to 4/30/14 New liceNse applicatioNs luna’s Bistro, Jalapenos Inc.; Jesse J. Cantu and Alicia J. Cantu applied for a new license to serve beer/ wine/spirits in a restaurant lounge at 3004 Cinema Pl., Bellingham, WA 98226. License No.: 417934. 4/29/14.

The Bellingham Business Journal Beach store cafe, West Shore Hospitality LLC; John D. Gibb, Diane E. Gibb and Blaine A. Wetzel applied to make changes to an existing license to operate as a direct-shipment receiver (in/out of WA) at 2200 N. Nugent Road, Lummi Island, WA 98262. License No.: 076795. 4/28/14. Birch Bay Restaurant and lounge, Birch Bay Restaurant and Lounge LLC; Karen Louise Winborn applied for a new license to serve beer/wine/spirits in a restaurant lounge at 7876 Birch Bay Drive, Blaine, WA 98230. License No.: 358634. 4/24/14. B.p.o. elks Bellingham lodge 194, Bellingham Lodge No. 194 of the Benevolent and Protective Order of Elks; Robert Vernon Aronson and Gordon M. Ford applied for changes to an existing license to serve beer/wine/ spirits in a private club at 710 Samish Way, Bellingham, WA 98226. License No.: 359279. 4/23/14. Bay cafe @ Birch Bay, Bay Cafe @ Birch Bay LLC; David Bradley Bucknell and Tammy Kay Pearce applied to make changes to an existing license to sell beer/wine in a restaurant and for off-premises consumption, and also to operate as a direct-shipment receiver (in/out of WA) at 7608 Birch Bay Drive, Blaine, WA 98230. License No.: 407540. 4/23/14. colophon cafe, Mama Colophon Inc.; David Bryan Killian applied to make changes to an existing license to sell beer/wine/spirits in a restaurant service bar, sell wine for off-premises consumption and sell kegs to go at 1208 11th St., Bellingham, WA 98225. License No.: 077789. 4/22/14. denny’s 7048, Definitely Delicious Diners LLC; Yashna B. Asnani applied to make changes to an existing license to sell beer/wine/spirits in a restaurant lounge at 5720 Barrett Road, Ferndale, WA 98248. License No.: 080548. 4/22/14. silver Beach Grocery, Noor Corp.; Manpreet S. Sidhu applied to assume an existing license from Silver Beach Grocery, Gill NW Enterprise LLC, to sell beer/wine in a grocery store at 609 North Shore Drive, Bellingham, WA 98226. License No.: 352918. 4/22/14. ReceNtly appRoved liceNses little tokyo, at 2915 Newmarket St., Suite 101, Bellingham, WA 98226, received approval for a change of corporate officer on an existing license to sell beer/ wine in a restaurant. License No.: 080559. 4/22/14. chihuahua Family Mexican Restaurant, at 5694 3rd Ave., Ferndale, WA 98248, received approval for added fees on an existing license to sell beer/wine/ spirits in a restaurant lounge. License No.: 366006. 4/22/14. Milt’s pizza, at 5694 3rd Ave., Ferndale, WA 98248, received approval for an assumption of an existing license to sell beer/wine in a restaurant. License No.: 401224. 4/18/14. discoNtiNued liceNses Milt’s pizza, at 8122 Guide Meridian Road, Lynden, WA 98264, had a license to sell beer/wine in a restaurant discontinued. License No.: 401224. 4/24/14.

marijuana retaiL Lottery resuLts

These lists indicate the order in which the Washington State Liquor Control Board will consider a particular applicant’s license request. No actual licenses have been issued yet. Liquor board officials expect to issue licenses no later than the first week of July. Listings include an applicant’s rank, trade name, business address and application number. Information was obtained from the Washington State Liquor Control Board. Ferndale and Lynden were listed as jurisdictions in which no lotteries were held. The liquor board has allotted one license each for both cities, but the number of qualified applicants in those jurisdictions was less than or equal to the total license allocations. BelliNGHaM (allocated six liceNses) 1: cascade Herb company, 4459 Meridian St., 415094 2: 2020 solutions, 4326 Pacific Highway, 415470 3: Green vision, 218 N. Samish Way, Suite #103, 414871 4: Greenco limited liability company, 618 W. Bakerview Road, 413886 5: dancing Gypsies, 4370 Meridian St., 413529 6: top shelf cannabis, 3857 Hannegan Road, 414256 7: Good life cannabis, 1840 James St., 413677 8: citrus Group, 218 N. Samish Way, Suite 102, 414000 9: Green vision, 218 N. Samish Way, Suite 104, 414870 10: Hamsterdam, 2121 King St., 415223 11: Bellinghamsterdam, 4326 Pacific Highway, 413738 12: lR ventures & associates, 218 N. Samish Way, Suite 106, 414010 13: Jwc enterprises, 2119 Lincoln St., 413734 14: the Joint, 141 Samish Way, 413502 15: sunshine cannibis supply llc, 4370 Meridian St., 413670 16: Mandeep Kaur, 4564 Meridian St., 413772 17: the treehouse, 4208 Meridian St., 413769 18: Bellingham Marijuana Boutique, 4220 Meridian St., Suite 102, 414313 19: MlR investment Group, 218 N. Samish Way, Suite 108, 414821 20: lR ventures & associates, 218 N. Samish Way, Suite 105, 414009 21: purple Ridge Farm, 3705 Irongate Road, 415642 22: cascade Herb company, 4208 Meridian St, Suite B, 415093 23: citrus cleaners, 218 N. Samish Way, Suite 101, 413999 24: Greenco, 4220 Meridian St., Suite 102, 413885 25: oasis organics, 2018 Iron St., Suite A, 415657 26: Healthy living center, 2118 James St., 413702 27: MlR investment Group, 218 N. Samish Way, Suite 107, 414820

wHatcoM couNty at laRGe (allocated seveN liceNses) 1: Green stop, 7461 Mount Baker Highway, Suite 90, Maple Falls, 413801 2: w.c.w. enterprises, 5602 Guide Meridian, Suite A, Bellingham, 415445 3: Grateful Green, 1215 N. Lake Samish Drive, Unit B, Bellingham, 414918 4: whatcom Resin co. 1, 5309 Guide Meridian Road, Bellingham, 414539 5: the Green pot, 5655 Guide Meridian, Bellingham, 413314 6: Green smoke shop, 5309 Guide Meridian, Suite B, Bellingham, 417469 7: JJF, 2530 Peace Portal Drive, Suite B, Blaine, 415064 8: people of the Medicine, 1215 N. Lake Samish Drive, Bellingham, 414050 9: whatcom Resin co. 2, 7160 Guide Meridian Road, Lynden, 088015 10: tangletown Holdings, 4817 Alderson Road, Blaine, 415535 11: Koma Kulshan llc, 3703 Bennett Drive, Bellingham, 414708 12: chuckanut Recreational, 1215 N. Lake Samish Drive, Unit B, Bellingham, 413678 13: dakota land company, 1348 Gulf Road, Point Roberts, 413364 14: cascade Herb company, 4935 Guide Meridian, Bellingham, 415095 15: JRs enterprises, 4815 Alderson Road, Blaine, 415220

Bankruptcies Whatcom County business bankruptcies filed in the U.S. Bankruptcy Court, Western District of Washington. cHapteR 7 Straight bankruptcy; debtor gives up nonexempt property and debts are discharged. emily sarah Mallahan fdba Mayberry sporting Goods & Fountain llc, Assets: $100,001 to $500,000; Liabilities: $500,001 to $1 million; Major creditor: Chase, $332,079,40; Attorney: David E. Vis; Case No.: 14-13567KAO; Date filed: 5/7/14. No chapter 11 or chapter 13 filings reported.

FederaL tax Liens Liens of $5,000 or more issued by the Internal Revenue Service. Listings include business name, lien amount, document number and filing date. Records are obtained locally from the Whatcom County Auditor’s Office. left coast enterprises inc., La Fiamma, $51,421.08, 2140501050, 5/12/14. Main street Bar and Grill inc., $6,651.41, 2140501049, 5/12/14.

Big Fat Fish company inc., $20,329.44, 2140501047, 5/12/14. Hindman construction inc., $7,482.36, 2140500321, 5/5/14. premier packing llc, $471,237.81, 2140500320, 5/5/14.

reLeases oF FederaL tax Liens Liens that have been paid and lifted. advantage Factory of washington llc, $25,964.45, 2140501053, 5/12/14. Hillco contracting inc., $71,271.84, 2140501054, 5/12/14. More smiles learning center inc., $10,354.57, 2140402207, 4/25/14. HB Hansen construction inc., $32,801.65, 2140402210, 4/25/14.

state tax judgments Judgments of $5,000 or more issued by Washington state government agencies and filed locally in Whatcom County Superior Court. Listings include business name, judgment amount, the state agency filing the judgment, originating case number and filing date. Judgments can later be paid and lifted. Listings are only current as of their filing dates. Records are obtained from the Whatcom County Superior Court Clerk’s Office. dan’s automotive llc, $10,783.03, Revenue, 14-201155-1, 5/19/14. auction House llc, $5,005.52, Revenue, 14-201094-6, 5/14/14. Nw choice construction inc., $13,702.021, L&I, 14-2-01086-5, 5/13/14. Fraser sand and Gravel inc., $7,317.35, L&I, 14-201040-7, 5/7/13. BN Natural stone llc, $7,142.42, L&I, 14-2-010075, 5/1/14. cash corp., $6,040.38, Revenue, 14-2-00998-1, 5/1/14. champion drywall inc., $5,282.73, 14-2-00999-9, 5/1/14. Heritage Building company llc, $6,069.67, Revenue, 14-2-00979-4, 4/29/14. Main street Bar & Grill inc., $9,522.08, Revenue, 14-2-00981-6, 4/29/14. Blessings inc., $5,000.08, Revenue, 14-2-00959-0, 4/24/14. dystra construction services, $7,666.77, L&I, 14-200947-6, 4/23/14. Babe’s place inc., $9,370.44, Revenue, 14-2-009603, 4/24/14.

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June 2014 21

The Bellingham Business Journal BUSINESS TOOLKIT

Responsibility and compliance: Two sides of different coins For many years I have begun all my management development initiatives with the admonition to anyone in the room that their success as a manager would have an upper limit. That limit would be determined by the cumulative emotional intelligence of whatever group of employees they were charged with leading. But I am not writing about emotional intelligence today. I want to talk about responsibility. Responsibility is much harder to practice than it is to talk about, especially without setting up the right conditions. This is where emotional intelligence comes in. If you cannot handle a grown up relationship with your employees, or they with you, you’ve got very big problems.

When attempting to establish working relationships grounded in responsibility, it is best to step back and determine whether the group involved in the conversation has a shared understanding of the concept. H i s t o r i c a l l y, employers have assumed compliance from employees and called it r e s p o n s i b i l i t y. Moreover, and as

Mike Cook On Managers & Employees

an extension of the desirability of compliance, we have done a pretty good job of tying the concept directly to character, and have thereby locked it into the good/bad context that surrounds many of the ideas that have been turned into commodities. What is needed now, when many workplace problems are complex and do not yield to simple compliant behavior, is a new way for employers to relate to employees and a new way for employers to determine whether the people they employ are sufficiently grown up to provide the performance they require. If, from the employee’s perspective, we consider responsibility as more a matter of individual initiative—they are or are not responsible as a matter of choice, rather than history or upbringing—we get into the arena of gifts, and gifts cannot be assumed.

If, from the employer’s perspective, we consider responsibility to be more of an offer than a right, we get into the arena of tools, and tools have their uses in proper circumstances. Try this on: You are responsible if you say so and not if you don’t. Now, of course, I am speaking in terms of the workplace. Society at large has this “in the eyes of the law” notion, where responsibility is assigned. In the workplace, this concept has been interpreted as “in the eyes of the employer,” and most often looked upon as the right of employers to assign responsibility. From the employer’s perspective, employees are responsible if the employer says so. OK, but is there any power in that?

COOK, PAGE 26

Business Briefing Local solar builder the entire 32-home project recently joined the company. City Dogs is owned by Lee has lived and worked in Ann Kelly, who has more partners with Habitat expected within three years. She Bellingham for more than than two decades of experiGreenleaf moves to for Humanity eight years. ence as a dog groomer. Crown Plaza Itek Energy of BellingCity Dogs Grooming Silver Reef Hotel ham has partnered with Greenleaf Bookkeeping & opens cigar lounge Blue Frog Solar of Poulsbo Accounting has announced expands with selfto install rooftop solar-power it will relocate its office to service washing day Silver Reef Hotel Casino the Crown Plaza Building at 114 W. Magnolia St., in downtown Bellingham. The company expects to be in the new space by mid-June. Greenleaf also recently expanded its staff, and expects to make some additional hires over the next few months. Yin-Ho Lai is a new CPA at Greenleaf. He earned a bachelor’s degree in accounting and an MBA from Western Washington University. Caroline Rosenquist also

Spa will host a grand opening for The Cigar Lounge on Monday, May 26. The lounge, which is adjacent to Portage Bay Bar, offers more than 40 brands of cigars for sale. It features leather couches, wing-back chairs and a custom humidor with cigar lockers available for rent. A full-service bar also offers beer, wine and spirits.

City Dogs Grooming, a pet-grooming salon located at 711 E. Holly St., in Bellingham, plans to now open on Sundays from 10 a.m. to 4 p.m. to allow customers to wash their dogs themselves using the shop’s equipment. Appointments are not necessary, and assistance will be available for lifting large dogs and advising first-time dog washers. Prices for tub use and products vary depending on a dog’s size and needs.

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equipment on a Habitat for Humanity affordable housing project in Port Orchard. Each residential system in the project includes 265-watt photovoltaic modules by Itek energy, Blue Frog/APS YC500 microinverters, and Sunmodo racking. Installation is by Sunergy Systems of Seattle. Kelly Samson, itek energy vice president and founding principal, said the company is honored to have its solar panels included in a Habitat for Humanity project. The Harris Court homes are being constructed through a combination of homeowners’ sweat-equity and local volunteer labor. A range of designs is planned, f rom t h re e - b e d ro om , 1,100-square-foot “ramblers” to four- and five-bedroom, two-story homes with 1,600 square feet of living space. Roof slopes are oriented to the south to optimize solar potential. Even Harris Court’s yards and common spaces will be sustainable — more than 80 fruit trees are being planted to create an “edible neighborhood.” The first two homes should be ready for occupancy in November. Eight more homes will be framed and enclosed by fall, with buildout of

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22 June 2014

The Bellingham Business Journal

People On The Move Fredlund promoted to VP, compliance manager at Peoples Randy Fredlund has been promoted to vice president and compliance manager at Peoples Bank. Fredlund will oversee the bank’s regulatory compliance staff. He will also Randy Fredlund continue to facilitate the bank’s risk assessment committee and serve as its bank secrecy act officer. Fredlund had worked in banking for more than 20 years. He joined Peoples Bank as a deposit services manager in 2002. He is certified in regulatory compliance and has a leadership and management certification from the Leadership Institute of Seattle through Western Washington University.

Daughters promoted to executive VP at Peoples Bank Terry Daughters of Peoples Bank has been promoted to executive vice president and chief credit officer. Daughters was previously the bank’s commercial banking team leader for Whatcom County. He joined Peoples Bank in

1999 and has more than 35 years of banking experience. In h i s new posit ion, he will oversee portfolio underwriting and loan Terry Daughters portfolio risk management, working with executive vice president and chief lending officer, Charlie Guildner. Daughters holds a bachelor’s degree from the University of Washington and is also a graduate of the Pacific Coast Banking School.

ber ownership group. The transition is designed to give Tjoelker more opportunities to work directly with clients, particularly in the areas of business succession and financial planning, according to a company news release. Brown has been with Larson Gross since 2003. Prior to his promotion to CEO, he served as the company’s chief operating officer. He has also held positions of marketing director and operations director. Larson Gross has offices in Bellingham, Lynden and Burlington.

Bellingham-based accounting firm Larson Gross has made a top-level executive change. Aaron Brown has been promoted to CEO of the company, and previous Aaron Brown chief executive Marv Tjoelker is now chairman of the board and spokesman for Larson Gross’ Marv Tjoelker nine-mem-

named executive director for the Technology Alliance Group for Northwest Washington, or TAG, a Bellinghambased nonprofit that advocates for local technology businesses and professionals. We b e r Meg Weber previously served as human resources manager at Management Services Northwest, based in Ferndale. She has also held leadership positions at Western Washington University’s Center for Economic Vitality and Logos Bible Software.

Weber named TAG’s New top-level leader- new director ship at Larson Gross Meg Weber has been

She earned an MBA in 2008 from the University of Rochester. Weber also holds a bachelor’s degree from the University of Rochester, as well as a master’s degree from the University of Iowa. She takes over direction of TAG from Sommer Cronck, who stepped down from the position in April and now works as chief operating officer for Red Rokk in Bellingham.

Kenney named Washington Federal’s regional president Tom Kenney has been named Washington Federal’s northern Washington regional president and will be responsible for all of the bank’s operations throughout the region. Kenney has more Tom Kenney than 30 ye ars of experience in banking and finance. He also worked as the vice president of finance for Haggen Inc., prior to being hired at Washington Federal. Kenney has been a board member for several community and nonprofit organizations in Whatcom County, including the Whatcom Hospice Foundation, the Northwest Economic Council, the United Way of Whatcom

County and the Bellingham/ Whatcom Chamber of Commerce and Industry. He earned a bachelor’s degree from Colorado State University and an MBA from the University of Southern California.

Olsen elected president of credit union association chapter Ryan Olsen, the director of consumer lending at Industrial Credit Union, has been elected president of the Northwest Washington Chapter of the Northwest Credit Un i o n Association. Ryan Olsen T h e N WC UA serves as a trade group for more than 160 credit unions in the region. Several other local credit union employees serve on the board for the Northwest Washington Chapter, including Scott Segel of West Edge Credit Union, vice president; Susan Lanahan of North Coast Credit Union, secretary; and Reid Frederick of Whatcom Educational Credit Union, treasurer.

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Rob Camandona is the new president of the Whatcom Museum Foundation’s board of trustees. He succ e e d s immediate p ast president Christine ScheidZurline. Rob Camandona O t h e r members of the foundation’s board include Cindy Burman-Woods, first vice president; Kit Vonnegut, second vice president; Peter Border, treasurer; and Barbara Ryan, secretary. Camandona is an assistant vice president and relationship manager at U.S. Bank in Bellingham. He previously served as executive director for the Downtown Bellingham Partnership.

Hahn appointed to Whatcom County Library board June Hahn has been appointed to the Whatcom County Library System’s board of trustees to complete a recently vacated term that runs until Jan. 31, 2015. Hahn moved to Whatcom County in 2010 from O h i o , w h e r e she has a June Hahn 25-year career with Proctor & Gamble, including time spent as the company’s associate director of consumer and market knowledge. Hahn earned a doctorate in quantitative psychology, and has a background in data analysis and market research. The library system’s volunteer, five-member board is appointed by the Whatcom County Executive. It oversees the library’s budget and policy. The board holds meetings on the third Tuesday of each month.

Taft promoted to senior VP at Wells Fargo Advisors Toni L. Taft, a financial adviser at the Bellingham branch of Wells Fargo Advisors, has been named the branch’s senior vice president-investment office. Taft has worked for Wells Fargo Advisors for 14 years. She has 34 years of experience in the financial-services industry.

We are local. We are small business. We are the professionals. We live, work and play here in Whatcom County. Our member businesses provide thousands June 2014of local family wage jobs. Sponsored content by BIAWC Our combined economic impact strengthens neighborhoods throughout Whatcom County. Sponsored content by BIAWC

May 2014

A private, not-for-profit, trade organization of builders, remodelers and other businesses related to the home building and construction industry.

A-1 Welding Inc./Northwest Roller Systems, Abbott Construction Company Inc., Adelstein Sharpe & Serka, Aflac, Aggregates West Inc., Aiki Homes Inc., Al’s Electric & Plumbing Inc., Altimeter Studio, Alvord-Richardson Const. Co. Inc., Artino Advisory Group PS, Associated Project Consultants Inc. P.S., ATTA Boy Window & Gutter Cleaning, Audio Video Excellence, B & C Well Drilling & Pump Service Inc., Baker Septic Tank Pumping Inc., Bank of the Pacific, Banner Bank, Barker's Woodchipping Service, Barkley Company/Talbot Real Estate, Baron Telecommunications, Barron Heating & Air Conditioning Inc., Bayside Services, Belcher Swanson Law Firm PLLC, Bellingham Millwork Supply, Bellingham Whatcom County Tourism, Bellingham/Whatcom Chamber of Commerce & Industry, Bergen & Co. Embroidery Works Inc., Birch Equipment Rental & Sales, Blade Chevrolet, Blaine Insurance, Blythe Plumbing & Heating Inc., Bob Wallin Insurance Inc., Bode's Electric & Plumbing, Bode's Precast Inc., Borders & Son Quality Roofing Inc., BP Cherry Point Refinery, Builders Alliance, Building Design Services, Building Performance Center, Buyer's Market, C & J Constructors, Canyon Industries Inc., Cascade Drywall Inc., Cascade Engineering Group, Cascade Natural Gas Corp., CB Wholesale Inc., CCC Services, Ceilings Unlimited Inc., Charly Myers Real Estate (Coldwell Banker), Chicago Title, Chmelik Sitkin & Davis PS, Chuckanut Builders, Chuckanut Lighting, Clean Water Services LLC, Coast Construction, Coast Insulation LLC, Coast View Construction Inc., Coastline Equipment Inc., Colacurcio Brothers Construction Company Inc., Concrete Nor West, Country Glass and Door Inc., Cowden Gravel & Ready Mix, Crave Catering, Creative Construction & Remodel Inc., Cruisin Coffee, Culligan Northwest, Custom Closets & Bedrooms, David Simpson, Dawson Construction Inc., DeJong Heating & Refrigeration Inc., Dewaard & Bode: The Appliance & Mattress Giants, De-Watering Services LLC, Dirt Works Bellingham Inc., Duane Sala Construction LLC, Dykstra Construction Services LLC, Eagle Contracting & Steel Buildings Inc., Elite Electrical Contractors Inc., EMB Management Inc., Emerald Builders Inc., Environmental Pest Control & Insulation Inc., Equity Builders LLC, Ershigs Inc., Everkept Construction Inc, Excel Electric Inc., Express Electric Inc., Faber Construction Corp., Fastcap LLC, Favinger Plumbing Inc., Feller Heating & Air Conditioning Inc., Ferndale Ready Mix Gravel Inc., First Choice Building Inspection Services LLC, First Federal, G.K. Knutson Inc., G.R. Plume Company Inc., Gale Contractor Services, Gary's Plumbing & Heating LLC, Gateway Controls Inc., GDS Countertops Inc., Geyer & Associates Inc., Granite Precast & Concrete Inc., Great Floors, Greenbriar Construction Corp./Whatcom House Movers, Greggerson Painting Inc., Guardian Security, H & L Aluminum USA (listed with BIAW as Teibrob Corp.), Halvorson Losie Willner PLLC, Harbor Lands Co., Hardware Sales Inc., Haskell Corporation, HBHansen Construction Inc., Heeringa Excavating, Henifin Construction LLC, Hertco Kitchens LLC, Higher Plane Cabinetworks Inc., Highline Construction LLC, Hilltop Restaurant & Catering, Hindman Construction Inc., Home Front Services Inc., Homeward Designs Inc., Honcoop Trucking LLC, Hudson Remodeling, Hulford Electric Co. Inc., Hunnicutts Inc., Hydro Mechanical Inc., Industrial Design & Equipment Inc., Innovations for Quality Living, Interconnect Systems, Interior Doors & More, Iverson Earth Works LLC, Jansen Inc., JM Electric, Jones Engineers Inc. PS, Joostens Roofing Inc., Judd & Black, Justesen Industries, JVD Construction Inc., JWR Design Inc., K Engineers Inc., Kamps Painting Company Inc., Kaptein Construction, Kelly's O'Deli Inc., Kenoyer ContractA-1 and Welding Inc./Northwest Systems, Abbott Inc.,&Adelstein Sharpe & Serka, Aflac, Aggregates West Inc.,Real Aiki Homes Inc., Al’s Electric Plumbing Inc., Altimeter Studio, Alvord-Richardson Const. ing Design Inc., Kramer Roller Construction Inc., LandConstruction DevelopmentCompany Engineering Surveying Inc., Landmark Enterprises Inc, Landmark Estate Management LLC,&Langabeer & Traxler PS, Larry Brown Construction Inc., Co. Artino Advisory Group Associated Project Consultants P.S.,/ ATTA Boy Window & Gutter Cleaning, B &Gravel C Well Inc., Drilling & Pump Service Inc., Baker Septic Tank Inc., Bank of the LarryInc., Steele & Associates Inc., PS, Larson Gross PLLC, Legacy Kitchen Inc. & Bath Russell's Coverings, Leisure Audio Home Video & Spa,Excellence, Len Honcoop Lightning Electric Inc., Louis Auto Glass Inc.,Pumping Ludtke Pacific Trucking, Pacific, Bank, Barker's Woodchipping Service, Company/Talbot Real Estate, Baron Barron Heating & AirManagement Conditioning Services Inc., Bayside Services, Law Firm PLLC, Bellingham LyndaleBanner Glass Inc., Lynden Floor Design, Lynden SheetBarkley Metal Inc., Lynden Tribune & Print Co., M. C.Telecommunications, Smith Construction Inc., MAAX US Corp., NW Inc., Marr'sBelcher HeatingSwanson & Air Conditioning Inc., Marv's Millwork Bellingham Whatcom County Bellingham/Whatcom Chamber Commerce & Industry, Bergen & Co. Embroidery Works Inc.,Construction Birch Equipment Rental & Sales, Blade Chevrolet, Insurance, PlumbingSupply, Inc., Mason's Houseworks Inc., MatiaTourism, Contractors Inc., Merit Engineering Inc., of Metcalf Hodges PS, Meyer's Construction & Cabinets, Moceri Inc., Moncrieff Construction Inc., MooreBlaine and Company, Blythe Plumbing & Heating Bob Wallin Insurance Inc., Bode's Electric Precast Inc., Borders Son Quality Inc., BP Cherry Point Builders Alliance, Building Design Services, Building Commercial Brokers, MorseInc., Distribution Inc., Moss Adams LLP, Mowry Tile&&Plumbing, Stone Inc.,Bode's Mt. Baker Landscaping, Mt.&Baker RoofingRoofing Inc., Mt. Baker Silo Inc., NewRefinery, Whatcom Interiors, Nielsen Brothers Inc., Nolans Roofing Inc., Performance Center, Buyer's Market, & J Constructors, Industries Cascade DrywallConcrete Inc., Cascade Engineering Group, Cascade NaturalContracting Gas Corp., CB Inc.,Refrigeration CCC Services, Ceilings Unlimited Charly North Coast Credit Union, North CoastCElectric / Lighting, Canyon North County LawnInc., Care, North Pacific Pumping Inc., Northern Marine & General Inc.,Wholesale Northsound Inc., Northstar Stone Inc., & LandMyers Real Estate (Coldwell Banker), Title, Chmelik & Davis PS,Inc., Chuckanut Builders, Chuckanut Lighting, Water Services LLC,Northwest Coast Construction, Coast 1Insulation LLC, Coast View Construction Inc., scape Supply, Northwest Chip & GrindChicago Inc., Northwest EnergySitkin Systems of WA Northwest Fence Inc., Northwest HeavyClean Equipment Repair Inc., Liquid Transport Inc., Northwest Professional Services, Northwest Coastline Equipment Inc.,Sky Colacurcio Brothers Construction Company Inc., Concrete NorONeill West, Group Country Glass and Door Inc., Gravel & Ready Crave Catering, Creative Construction & Co., Remodel Inc., Cruisin Coffee, Propane LLC, Northwest Ferry, NW Safety Signs Inc., OASYS Inc, Oltman Insurance, Inc., Overhead Door Co.Cowden of Bellingham Inc., P & Mix, P Excavating LLC, Pacific International Grout Pacific Northwest RoofCulligan Northwest, CustomInc., Closets & Bedrooms, Simpson,Services DawsonInc, Construction Inc., DeJong Heating & Refrigeration Inc., Pederson Dewaard & Bode: The Appliance & Mattress Giants, Services LLC,Pioneer Dirt Works ing , Pacific Party Canopies Pacific Surveying David & Engineering Paint The Town, Pearson Construction Corporation, Bros. Inc., Peoples Bank, Perry Pallet, PFC De-Watering Corp., Phantom Screens, Post Bellingham Inc., DuanePlus SalaNorthwest, Construction Dykstra Construction Services LLC, Eagle Contracting & Steel Buildings Inc., Elite Electrical Inc., EMB Painting Management Inc., EmeraldTurf Builders Inc.,LLC, Environmental Pest Frame Inc., Plastering PM LLC, Northwest Inc., Pottle & Sons Construction Inc., Price & Visser Millwork Inc., Print & Copy Factory,Contractors ProBuild, Profection Inc., Professional Growers Profile ConstrucControl Insulation Inc., EquityQuality Builders LLC, Ershigs Inc., Everkept Inc, Excel Electric Inc., ExpressServices ElectricInc., Inc.,Ralph's Faber Construction Corp., Fastcap LLC, Favinger Plumbing Inc., Inc., Razz FellerConstruction Heating & AirInc., Conditioning tion Inc.,&Puget Sound Energy, Construction & Plumbing, R &Construction T Construction Inc., Rainshield Handyman Floors Inc., RAM Construction General Contractors RCI ConInc., Ferndale Ready Mix&Gravel Inc.,Services First Choice Inspection Services LLC, First Federal, G.K. Knutson Inc., G.R. Plume Company Inc., Gale Contractor Services, Gary's Plumbing Heating LLC, GatewayLand Controls struction Inc., Recycling Disposal Inc., Building Redden Marine Supply Inc., Reichhardt & Ebe Engineering Inc., Rice Insurance LLC, RMC Architects PLLC, Robinson Hardwood & Homes& LLC, Roger Almskaar, Use Inc., GDS Countertops Inc., Geyer & Associates Granite Precast & Construction Concrete Inc.,Inc., Great Floors, Greenbriar Construction Corp./Whatcom Movers, Greggerson Painting Inc., Guardian H &Inc., L Aluminum USA (listed Consultant, Ronald T Jepson Associates,Inc., Roosendaal-Honcoop Rose Construction Inc., S & S Concrete Const. Inc., SHouse & W Rock Products LLC, Sail Electric Inc., SanitarySecurity, Service Co. Schouten Construcwith BIAWSchramer as Teibrob Corp.), Halvorson Losie Willner PLLC, Harbor Lands Co.,Lock Hardware Inc., Haskell Corporation, HBHansen Inc.,Sherwin-Williams Heeringa Excavating, Henifin LLC,Plus Hertco tion LLC, Construction Co. Inc., Security Solutions NW/Bellingham & SafeSales Inc., ServiceMaster Clean by Roth, ServproConstruction of Bellingham, Co., Signs By Construction Tomorrow, Signs Inc.,Kitchens SilvaStarLLC, Forest Higher Plane Cabinetworks Highline Construction LLC, Hilltop Restaurant & Catering, Hindman Construction Inc., Home Services Inc., Glass Homeward Designs Inc.,Magnolia HoncoopInc., Trucking LLC, Hudson Hulford Products, Siper Quarry LLC, Inc., Skeers Construction Inc., Smith Mechanical, Snapper Shuler Kenner Insurance, Special-T Signs &Front Graphics, St John & Glazing, Steel Sterling Real EstateRemodeling, Group, Stremler Electric Co. Inc., Hunnicutts Inc., Hydro IndustrialCo. Design Equipment Inc., Innovations for Quality InterconnectIndustries, Systems, T.C. Interior Doors & More,Inc., Iverson Works LLC, Inc., JM Electric,Inc., Jones Gravel Inc., Strengholt Construction Co.Mechanical Inc., StriderInc., Construction Inc., & Sullivan Plumbing Inc., T & T Recovery Inc.Living, dba Lautenbach Trading Company TEKEarth Construction Inc.,Jansen Terpsma Construction Engineers Inc. PS, Joostens JuddInc., & Black, Justesen Industries, JVD Construction JWRInc., Design K Engineers Inc., The Kamps Company Inc., Insurance Kaptein Construction, Kelly's Inc., Kenoyer ContractThe Bellingham Herald, The Roofing ChimneyInc., Sweep The Color Pot Inc., The Final Touch Cleaning Inc., Service The Inc., Franklin Corporation, SignPainting Post, The Unity Group - a Division of HUB O'Deli International Northwest LLC, ing and Design Inc.,Ltd., Kramer Construction Inc., Land Development Engineering & Surveying Inc., Landmark Enterprises Inc, Landmark Real Estate Management LLC, Langabeer & Traxler Larry Brown Construction Inc., Tiger Construction T-Leasing Coin Laundry Rental & Sales, Topside Roofing, TPS Remodeling / Four Seasons Sunrooms, Triple S Construction Inc., Trus Joist / Weyerhaeuser, Valley PS, Plumbing & Electric Inc, Van Beek Larry Steele Associates Inc., Larson Gross PLLC, Legacy & Bath / Russell's Window Coverings, Leisure & Spa, Len Honcoop Gravel Inc., Lightning Inc., Louis Glass Inc., One Ludtke Pacific Trucking, Drywall Inc., & Van's Plumbing & Electric Inc., Velocity ElectricKitchen Corporation DBA VECOR, Viewpoint Group Inc., VillageHome Lighting, Vollara, Volonta Corporation, VossbeckElectric Construction Inc., Auto Walkers Carpet Floor & Home, WashLyndale Glass Inc., Lynden Floor Construction Design, Lynden Sheet Metal&Inc., TribuneLLC, & Print Co., M. C. Smith Construction Inc., MAAXInc., US Corp., Management ServicesInc., NW Inc., Marr's Heating & Air Conditioning Inc., Marv's ington Federal, WECU, Welcome Inc., Wellman ZuckLynden Construction West Coast Windows Inc., West Mechanical Western Concrete Pumping Western Forest Products, Western Refinery Services Plumbing Inc.,Roofing Mason'sCo. Houseworks Inc., Construction Matia Contractors Inc., Merit Engineering Inc., Metcalf Hodges PS, Meyer's Construction & Cabinets, Moceri Construction Inc., Title Moncrieff Construction Inc., Moore and Inc., Western Inc., West-Lind Management Inc., Westside Building Supply, Whatcom Builders Inc., Whatcom Construction Inc., Whatcom Land Co. Inc., Whatcom Landscapes Inc.,Company, Whatcom Commercial Brokers, Morse Distribution Inc.,Island Moss Bank, AdamsWiebe LLP, Mowry Tile & Stone Inc., Mt. Baker Landscaping, Baker Roofing Inc., Mt. Baker Silo Inc., Interiors, BrothersPlywood, Inc., Nolans Inc., Roofing, Whatcom-Skagit Housing, Whidbey Construction, Williamson Construction Company,Mt. Windermere Management by Ebright WightNew LLC,Whatcom Windermere Real Nielsen Estate, Windsor WiseRoofing Enterprises North Coast North Coast / Lighting, LLC, You BuyCredit It We Union, Install It Floors Inc.,Electric Z Construction Inc.North County Lawn Care, North Pacific Concrete Pumping Inc., Northern Marine & General Contracting Inc., Northsound Refrigeration Inc., Northstar Stone & Landscape Supply, Northwest Chip & Grind Inc., Northwest Energy Systems of WA Inc., Northwest Fence Inc., Northwest Heavy Equipment Repair Inc., Northwest Liquid Transport 1 Inc., Northwest Professional Services, Northwest Propane LLC, Northwest Sky Ferry, NW Safety Signs Inc., OASYS Inc, Oltman Insurance, ONeill Group Inc., Overhead Door Co. of Bellingham Inc., P & P Excavating LLC, Pacific International Grout Co., Pacific Northwest Roofing , Pacific Party Canopies Inc., Pacific Surveying & Engineering Services Inc, Paint The Town, Pearson Construction Corporation, Pederson Bros. Inc., Peoples Bank, Perry Pallet, PFC Corp., Phantom Screens, Pioneer Post Frame Inc., Plastering Plus Northwest, PM Northwest Inc., Pottle & Sons Construction Inc., Price & Visser Millwork Inc., Print & Copy Factory, ProBuild, Profection Painting Inc., Professional Turf Growers LLC, Profile Construction Inc., Puget Sound Energy, Quality Construction & Plumbing, R & T Construction Inc., Rainshield Handyman Services Inc., Ralph's Floors Inc., RAM Construction General Contractors Inc., Razz Construction Inc., RCI Construction Inc., Recycling & Disposal Services Inc., Redden Marine Supply Inc., Reichhardt & Ebe Engineering Inc., Rice Insurance LLC, RMC Architects PLLC, Robinson Hardwood & Homes LLC, Roger Almskaar, Land Use Consultant, Ronald T Jepson & Associates, Roosendaal-Honcoop Construction Inc., Rose Construction Inc., S & S Concrete Const. Inc., S & W Rock Products LLC, Sail Electric Inc., Sanitary Service Co. Inc., Schouten Construction LLC, Schramer Construction Co. Inc., Security Solutions NW/Bellingham Lock & Safe Inc., ServiceMaster Clean by Roth, Servpro of Bellingham, Sherwin-Williams Co., Signs By Tomorrow, Signs Plus Inc., SilvaStar Forest Products, Siper Quarry LLC, Skeers Construction Inc., Smith Mechanical, Snapper Shuler Kenner Insurance, Special-T Signs & Graphics, St John Glass & Glazing, Steel Magnolia Inc., Sterling Real Estate Group, Stremler Gravel Inc., Strengholt Construction Co. Inc., Strider Construction Co. Inc., Sullivan Plumbing Inc., T & T Recovery Inc. dba Lautenbach Industries, T.C. Trading Company Inc., TEK Construction Inc., Terpsma Construction Inc., The Bellingham Herald, The Chimney Sweep Inc., The Color Pot Inc., The Final Touch Cleaning Service Inc., The Franklin Corporation, The Sign Post, The Unity Group Insurance - a Division of HUB International Northwest LLC, Tiger Construction Ltd., T-Leasing Coin Laundry Rental & Sales, Topside Roofing, TPS Remodeling / Four Seasons Sunrooms, Triple S Construction Inc., Trus Joist / Weyerhaeuser, Valley Plumbing & Electric Inc, Van Beek Drywall Inc., Van's Plumbing & Electric Inc., Velocity Electric Corporation DBA VECOR, Viewpoint Group Inc., Village Lighting, Vollara, Volonta Corporation, Vossbeck Construction Inc., Walkers Carpet One Floor & Home, Washington Federal, WECU, Welcome Construction Inc., Wellman & Zuck Construction LLC, West Coast Windows Inc., West Mechanical Inc., Western Concrete Pumping Inc., Western Forest Products, Western Refinery Services Inc., Western Roofing Co. Inc., West-Lind Construction Management Inc., Westside Building Supply, Whatcom Builders Inc., Whatcom Construction Inc., Whatcom Land Title Co. Inc., Whatcom Landscapes Inc., Whatcom Roofing, Whatcom-Skagit Housing, Whidbey Island Bank, Wiebe Construction, Williamson Construction Company, Windermere Management by Ebright Wight LLC, Windermere Real Estate, Windsor Plywood, Wise Enterprises LLC, You Buy It We Install It Floors Inc., Z Construction Inc.

We are local. We are small business. We are the professionals. We live, work and play here in Whatcom County. Our member businesses provide thousands of local family wage jobs. Our combined economic impact strengthens neighborhoods throughout Whatcom County.

BIAWC has long believed and affirmed:

Homeownership can and should be within reach of every American family. American homes should be well designed, well constructed, and well located in attractive communities with educational, recreational, religious and shopping facilities accessible to all. American homes should be built under the American free enterprise system.

We support and encourage Smart Growth:

Make development decisions predictable, fair, and cost effective. Strengthen and direct development within existing communities. Create a range of housing opportunities and choices. Foster distinctive, attractive communities with a strong sense of place. Preserve open space, farmland, natural beauty, and critical environmental areas. Mix land uses. Utilize impact building design. Create walkable neighborhoods. Provide a variety of transportation choices.

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The Bellingham Business Journal

June 2014

PORT NEWS Plans Underway for New Bellingham Airport Hotel

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heConstruction will begin this summer on a new Holiday Inn at the Bellingham International Airport. Once completed, this $23 million dollar facility will be the only on-site airport hotel north of Everett. The Port of Bellingham has been working to site a hotel at the airport since 2012, after identifying strong interest in an on-site hotel. The Port is working with Bellingham HI LLC of Mount Vernon to build the facility on a 4.7 acre site just south of the Pacific Cataract Laser Institute. Airport travelers will soon

be able to check out of their room at the Holiday Inn and

easily walk to the airport terminal entrance – a distance of only a few hundred feet. “We believe travelers will enjoy the convenience of the new hotel’s location and amenities,” said Dan Mitzel,

company chairman. “The new Holiday Inn will have a

park and fly package so guests can leave their cars at the hotel and take a short stroll to the terminal and catch their flight.” The meeting and banquet space will accommodate up to 300 guests.

The facility will have around 153 guest rooms, a full-service restaurant, indoor pool and around 7,800 square feet of conference space. Approximately 50 people will work at the hotel, with another 40-50 employed in the restaurant. The facility will have a mix of surface and underground parking for hotel guests and park and fly patrons. The hotel will be managed by Hotel Services Group LLC, which is also based in Mount Vernon. The Bellingham International Airport Holiday Inn is expected to open in the fall of 2015.

PORT OF BELLINGHAM CONTACT: Port Administrative Offices 360-676-2500 info@portofbellingham.com www.portofbellingham.com

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ellingham Whatcom County Tourism held its Annual Meeting and Taste of Tourism on May 29th at the Bellingham Cruise Terminal. During the brief formal presentation we elect our board members and officers and provide an update of the prior year’s activities. We also present our two major recognition awards: The Chairman’s Award and The Destination Marketing Partnership Award. This year, outgoing Board Chair, Randi Axelsson, selected Lisa Karlberg of K&L Media as her award recipient. Randi indicated that “the dynamic creative whirlwind behind K&L Media epitomizes the entrepreneurial spirit that contributes to so many of the successful businesses throughout Whatcom County”. At a time when many national publications were merging or phasing out of print, Lisa determined that the Bellingham area was ripe for a premier lifestyle magazine and launched Bellingham Alive. In the few years since, the magazine has grown and serves as the founda-

tion for sister publications: NorthSound Life, Snohomish County, and Couture Weddings. K&L Media has also expanded to include direct mail, a 2-day Woman’s Show, and an in-room Guest Book for hotels in Snohomish, Skagit and Whatcom County. K&L Media recently reported that Amtrak has selected Bellingham Alive as its in-coach magazine on their Eugene, Oregon to Vancouver, BC trains. Congratulations to Lisa Karlberg, President of K&L Media as this year’s Chairman’s Award Recipient. The Destination Marketing Partnership award is selected by BWCT staff in recognition of the individuals, businesses, or activities that support community and tourism industry success through innovative marketing and collaboration. In other words, they help make our job easier. It’s always a difficult choice. We are a community of independent thinkers who inexplicably (based on examples in other parts of the world) find cooperation to be more

beneficial than competition. We’re good with that. Possibly the most independent minded business people in our region are brewers. Think about it. If they all thought the same way, we would have one beer that tasted the same way day-in and day out. Unacceptable. Instead, we have an ever-increasing array of beers that can quench the thirst of whomever can “belly up to the bar”. Even that phrase is obsolete given our choices of restaurants, pubs and

breweries as well as the option to grab a growler and enjoy a local brew at home. Bellingham’s growing reputation as a destination for beer lovers was

further enhanced with the debut of “Bellingham Beer Week”. This shining example of collaboration between brewers large and small had one goal – expose residents and visitors to the awardwinning locally crafted and inter-

nationally available beer you can find in and around Bellingham. And make sure they have fun doing it. That in itself should win a partnership award. But wait…there’s more. Each year, as your community “PR Firm” BWCT solicits media coverage and assists hundreds of journalists, travel writers, publishers, bloggers, online writers, TV and radio hosts, etc.

their search for new and exciting content. We also host a couple of invitation-only themed media tours. Last year, we chose Boots & Brews as our media tour theme. With the philosophy that hiking (the boots part) is best celebrated with a cold one (the brews part), we set about to create an itinerary that showcased each. Merging our media tour into the Bellingham Beer Week could be construed as “lazy” but we prefer “genius”. With so many great events and activities already in place, we were confident this media tour would raise the bar for the future. And it did.

Stories, pictures and blogs were produced by the minute – resulting in positive coverage that continues to this day. All was possible because our brewers were collaborators not competitors. There are dozens of people who work on Bellingham Beer Week to whom we owe our gratitude. Unfortunately, we could not give awards to them all. Instead we highlighted those who generously partnered not only with each other, but also with BWCT to integrate our media chaos into their already busy event. Aubrey Laurence – event ring-master -- and the venues who participated in our media tour: Boundary Bay Brewery, Chuckanut Brewery, Kulshan Brewery, Elizabeth Station, The Copper Hog, McKays Taphouse, and The Green Frog. With congratulations and appreciation to them all – Bellingham Beer Week is the 2014 Destination Marketing Partnership Award recipient!

26 June 2014

HOTELS, FROM 17 a five-story, 99-unit Oxford Suites hotel. A project manager for that development could not be reached for comment. Along with the new developments, Bellingham hotels already in operation are also planning renovations and remodels. The Best Western Plus Lakeway Inn and Conference Center, located at 714 Lakeway Drive, has started a multimillion-dollar series

The Bellingham Business Journal of renovations. The hotel’s lobby will add a new fireplace and gathering areas for group parties and small parties. The in-house breakfast restaurant, Oboe Cafe, is receiving an upgrade, as are the hotel’s guest rooms and meeting areas. Renovations include new design and technology elements, including a fiber-optic wireless upgrade to the property. Outside of Bellingham, the Semiahmoo Resort in Blaine,

which reopened under new leadership last year, is set to complete is resort-wide remodeling this summer. The Silver Reef Hotel Casino Spa in Ferndale is also building a new 100-room tower addition. That project is expected to finish by summer 2015.

Evan Marczynski, associate editor of The Bellingham Business Journal, can be reached at 360-647-8805, Ext. 5052, or evan@bbjtoday.com.

POT, FROM 6 able to pass the state’s licensing process. Successful applicants must meet several requirements in order to receive licenses, including passing a criminal background check and financial investigation, and ensuring that their businesses are not located within 1,000 feet of a school, park or other areas where children congregate, as specified by Initiative 502, the measure passed by Washington voters in 2012 that legalized recreational marijuana. Applicants unable to meet the requirements

HOUSING, FROM 6 (Annual change: 10.38 percent decrease); Year-to-date: 706 (Annual change: 3.22 percent increase). Average sale price—April 2014: $290,186; April 2013: $276,732. Median sale price—April 2014: $243,150; April 2013: $239,000. Pending sales Total units—April 2014: 329; April 2013: 330 (Annual change: 0.3 percent decrease); Yearto-date: 1,110 (Annual change: 3.9 percent decrease). Average list price—April 2014: $295,810; April 2013: $273,024. Median list price—April 2014: $249,700; April 2013: $240,000.

will be withdrawn from consideration. Across the state, 1,174 pot retail applicants were included in lotteries held in 75 jurisdictions. Ordered lists of applicants were produced between April 21-25 by the Social and Economic Sciences Research Center of Washington State University and Kraght-Snell, a Seattle based accounting firm that regularly works with Washington’s Lottery. Regulators are also processing and issuing licenses for producers and processors of recreational marijuana.

Active listings New listings—April 2014: 525; April 2013: 447 (Annual change: 17.45 percent increase); Year-to-date: 1,490 (Annual change: 2.49 percent decrease). Total listings—April 2014: 1,394; April 2013: 1,303 (Annual change: 6.98 percent increase). Average list price—April 2014: $375,702; April 2013: $383,243. Median list price—April 2014: $298,250; April 2013: $285,000. Average time on market—April 2014: 127 days; April 2013: 125 days. Source: Northwest Multiple Listing Service

A conceptual design of the proposed Holiday Inn at the Bellingham International Airport. Rick MullEn ARTWoRk | couRTEsy To THE BBJ

JOBS, FROM 8 The total count of unemployed people in Whatcom County was 5,960 in April. Still, a number of local industries reported year-over-year job gains. The total number of jobs recorded in the county’s private sector in April 2014 grew by 1,000, compared to April 2013. The leisure and hospitality sector added 600 jobs in April 2014, compared to the same month last year. Professional and business services added 500; retail and construction both added 300. In the public sector, both state and local government added 100 jobs each.

COOK, FROM 21 Consider this: If the game is rigged so the employer always wins—the employer has the say so and employees get only to respond “okey dokey” to all demands—then where is there any responsibility, if by responsibility we mean a willingness to respond when the going gets tough, or even simply when the boss is not around? Seems to me that there is mainly duty in this condition, and therein lies the problem. Where is the room for initiative, passion or creativity in that sort of relationship? Can

County-level unemployment rates across Washington state decreased in April. Out the state’s 39 counties, 22 had jobless rates at or below 7 percent. San Juan County had the lowest rate in northwest Washington in April, at 4.7 percent. Skagit County was at 6.6 percent. Island County was at 6.3 percent. The state’s lowest jobless rate was found in King County, at 4.3 percent. The highest rates were in Grays Harbor County and Ferry County, which were both at 9.9 percent.

all parties involved be counted on to stand for what was agreed to when the poop hits the cowcatcher? This is a very different relationship from the one that many still assume, whether employer or employee. A manager somewhat long in the tooth recently approached me a question. He asked, “Can you tell me what to do about these younger employees, they don’t always do what I tell them to?” I asked in response, “Do they say they are going to do what you told them to?” He was at first silent, then spoke, “Do they need to? I always just did whatever my boss

TOYS, FROM 12 Toys faced significant competition from online retailers. She said her staff would regularly overhear customers discussing how they had previously seen or purchased in-store merchandise through Amazon or other Webbased merchants. Along with additional competition from other local toy stores, Tay-Song said the business faced several other challenges, including a drop in foot traffic and available parking after the store moved locations downtown. In the end, business expenses simply overran sales, she said. Tay-Song said she and her staff have greatly asked me to do.” So I went on, “This is not your father’s workforce or workplace any longer. The newer generation of workers is no less energetic than you were, they just have different conditions under which they are willing to work. You need to get to know them at a more intimate level.” “They do not want their responsibility to be assumed, they want to be asked, they want to be given a choice, at least much of the time. If you don’t do that for them, I bet you will continue to be disappointed in the ‘sometimes they do and sometimes they don’t’ performance.”

appreciated all of the support customers gave the store. She noted how customers pulled through to help Little Tiger Toys weather a loss of sales from a temporary store closure last December after a burst pipe caused significant water damage. “People came out in a such a big way,” she said.

This was a shocking shift in reality for this manager, but he made the change and later reported that his employees had gotten a lot better once he began letting them know what he wanted them to do, and then confirming their willingness to do it. In my view what happened was he brought his management style up to speed with the people he had reporting to him.

Mike Cook is a management developer who lives in Anacortes, Wash. He publishes a weekly blog at www. heartofengagement.com.

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The Bellingham Business Journal

June 2014

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