Bellingham Business Journal, January 05, 2015 by Sound Publishing

Vol. 23 No. 1

JAN 2015 Boutique for breast cancer survivors [Page 3]

The number of Bellingham hotel rooms is doubling

The Buzz Turning salvaged wood into skis A new business makes skis from old-growth wood salvaged from barns, canneries and other building projects.

Who’s going to fill them?

PAGE 9

Gym owned by NFL pros will have grand opening Jan. 17

Page 5

Football pros Jake Locker and Michael Koenen will be at the opening celebration. PAGE 6

Business briefs The Fountain Bistro inundated with offers after closing, new city council member, Bellingham Technical College president retiring. PAGE 7

Business toolkit New changes coming to Facebook will affect marketing.

Marriot SpringHill Suites, at 4050 Northwest Ave., was the first of the new hotels to open in October 2013. OLIVER LAZENBY PHOTO | THE BBJ

Haggen buying 146 Safeway, Albertsons stores BY OLIVER LAZENBY The Bellingham Business Journal If the Federal Trade Commission says it’s OK, Haggen will acquire 146 former Safeway and Albertsons stores throughout Washington, Oregon, California, Nevada and Arizona.

The Bellingham-based grocery chain would go from having 18 stores to 164. The deal doesn’t include any locations in Whatcom County, and the Safeway opening next year in Sunset Square won’t become a Haggen. Safeway stores in Oak Harbor, Everett and Shoreline, would become Haggens.

Haggen headquarters will remain in Bellingham, said CEO Clougher said. The transaction should close in early 2015, and Haggen will convert all 146 stores to Haggenbrand stores during the first half of 2015. The store’s current employees will be have the opportunity to work at Haggen, and

Clougher said he plans to retain the current stores’ management teams. “We’re going to offer everyone who works at those stores a job. That’s our commitment,” Clougher said. Haggen will hire an addi-

PAGE 17 What will you give up to gain employee leadership? PAGE 19

Haggen, PAGE 13

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January 2015

Contents

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Skis with a wood veneer rest on the wall of the ski shop Alex Turner built in his parents’ garage.

Larry W. Evans

OLIVER LAZENBY PHOTO | THE BBJ

Branch Manager 360-738-2376

[9] Skis from salvaged old-growth

NMLSR ID 856141

Sky Pilot Custom skis, based in a garage off the Mount Baker Highway, turns reclaimed wood into custom skis.

[5] Bellingham’s hotel boom Two of six new hotels are already open and more are coming in 2015.

[3] Boutique for breast cancer survivors Allies boutique specializes in products for women who have had mastectomies.

Anndi D. Pena

Home Mortgage Consultant 360-738-2363

NMLSR ID 413608

Ross Schram von Haupt

Home Mortgage Consultant 360-746-4050

NMLSR ID 1026086

[8] Market Indicators [17] Business Toolkit

Ryan D. Martin

[13] Public Records

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Home Mortgage Consultant 360-293-1160

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The Bellingham Business Journal, BBJToday.com (ISSN 21620997) is published monthly by Sound Publishing Inc. at 1909 Cornwall Ave., Bellingham, WA 98225. Periodicals Postage Paid at Bellingham, WA, and at additional mailing offices. POSTMASTER: Send address changes to: BBJToday.com Circulation, PO Box 930, Everett, WA 98206.

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January 2015

The Bellingham Business Journal

New boutique helps women after mastectomies experience of buying an intimate undergarment as close as possible to the way it was before surgery. Woman can get fitted, get their products, and get out of the shop, while Dewitt and McCown take care of insurance paperwork. “To shop for a bra should be a Saturday errand, not an all day trek,” Dewitt said. “It’s really important to make it easy and comfortable. We want to make it a fun experience. When you

Allies specializes in fitting women for prosthetic breasts BY OLIVER LAZENBY The Bellingham Business Journal Bellingham resident Laura Dewitt had a double mastectomy in 2009 and began treatment for aggressive stage III breast cancer. Though she had a lifethreatening illness, she still wanted to wear her normal clothes. So, like many women who have mastectomies, she got breast forms — prosthetic breasts that fit inside a pocketed bra. “To wear something other than oversized sweatshirts or sweaters — it just helps bring some normalcy to your life in a time that can be very tumultuous,” Dewitt said. “It’s a very personal product and it’s an emotional product.” Breast forms aren’t something you just pick off the shelf of a store, Dewitt said. Breasts and chest walls come in all different shapes, sizes and weights. It takes a specialist to match people with the right breast form. Dewitt had two options for getting fitted for breast forms. She could drive to Seattle to get fitted in a boutique store that specializes in breast forms and post-mastectomy products, or go to Skagit County and get fitted at a store that also sells wheelchairs, crutches and other medical equipment. She chose to go to Seattle. “Breast forms really don’t fit in with that type of medical equipment,” Dewitt said. “You wear it on your body. It becomes a part of you.” For Dewitt, the 90-mile drive to Seattle wasn’t just time-consuming, it was a reminder of her illness, she said. A chore that used to be easy now required most of a day. The experience demonstrated the need for a closer option. So in November, Dewitt and business partner Sarah McCown opened a boutique in Bellingham for breast form fittings and other post-mastectomy products. Their store, called Allies, is at 1337 Lincoln Street. “The need for what they

come here you get to dress yourself up. You get to feel special. It’s a pampering thing.” Allies carries a range of products for women who have had mastectomies. That includes forms for tissue expansion, which expand skin and muscle tissue in preparation for reconstructive surgery, silicone and contact silicone

Allies, PAGE 6

Laura Dewitt, left, and Sarah McCown, outside their shop at 1337 Lincoln St., near Fred Meyer. OLIVER LAZENBY PHOTO | THE BELLINGHAM BUSINESS JOURNAL provide has been here forever,” said Carol Brumet, outreach coordinator for the Cancer Center at PeaceHealth’s St. Joseph Medical Center. “It’s one of those things that you won’t pay

attention to unless you need it, but if you are that person who needs it this is going to mean everything.” Dewitt and McCown want to do more than offer a local alternative to the

Seattle and Skagit shops. They want to make their customers feel sexy, rather than like they’re taking care of a medical need, they said. They hope to make the

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Local hotel capacity doubling, who’s going to fill the rooms?

Some see coming abundance of hotel rooms as an opportunity for more tourism in Bellingham BY OLIVER LAZENBY The Bellingham Business Journal A dramatic change is underway in Bellingham’s hotel market. Demand for hotel rooms in Bellingham has grown steadily during the last 15 years. But the number of available hotel rooms didn’t change until late 2013, when Marriot SpringHill Suites and La Quinta opened near the airport. With three more hotels scheduled to be completed in 2015 and another in 2016, the number of 3-star and above hotel rooms will soon be nearly double what it was in 2012, with 641 additional rooms. The change in available 3-star and above hotel rooms, from 671 to to 1312, has some hotel managers nervous. Bellingham Whatcom County Tourism and other local organizations see it as an opportunity. The Bellingham Public Development Authority, before it was dissolved by the city council in December, commissioned a study to determine the feasibility of building a hotel on city-owned property near the waterfront. The study, titled “Bellingham Army Street Project Market Analysis,” predicted an oversupply in rooms by 2016. “This pace of development is unprecedented, and represents a once-in-a-lifetime

The Oxford Suites, next to Bellis Fair Mall at 4051 Meridian St., is scheduled to open summer 2015. OLIVER LAZENBY PHOTO | THE BBJ

lurch from undersupply to oversupply of premium guestrooms in Bellingham,” said the study by Leland Consulting Group of Portland, Oregon. “In a market this size, and with the steady but not dramatic annual increases that are forecasted for population and job growth as well as Interstate 5 traffic and general tourism, we would expect that it will take approximately 10 years for this oversupply to be absorbed.” For the analysis, Leland Consulting Group analyzed hotel occupancy data from a study that they had commissioned by Smith Travel Research, a company that tracks hotel supply and demand. Leland Consulting Group also did their own analysis of hotels that don’t report to Smith Travel Research, according to the study. From 2002 to 2012, Bellingham hotels had a higher than average occupancy rate. In 2013, the occupancy rate at 3-star and above Bellingham hotels was 77.9 percent, while the state average was 66.5 percent, according to the study. Because of the high occupancy rate, hotel developers were eyeing Bellingham for years. After the recession, when developers could get money for new projects, six planned hotel projects popped up all at once. The Hampton Inn had little competition in early 2013, said general manager Alex

Nephew. At the end of the year, SpringHill Suites and La Quinta opened less than a mile away. Before the other hotels opened Hampton Inn had a nearly 80 percent occupancy rate, Nephew said. Despite the high occupancy rate it only filled up a few times a year, he said. “Ultimately, I think all the hoteliers agree that more rooms aren’t necessary other than two or three times a year,” he said. “Things like soccer tournaments, WWU graduation—those are the only times that many of us have felt it was necessary to have more rooms.” Nephew said the increase in hotels has already affected business at Hampton Inn. “We saw a significant drop in revenue when two hotels opened up near us,” Nephew said. “It’s a change and it’s a difficult change. The size of the pie doesn’t grow.” Tourism in high gear Loni Rahm sees it as her job to make the size of Bellingham’s tourist pie grow. Rahm, the president and CEO of Bellingham Whatcom County Tourism, thinks the hotel boom is an opportunity to attract

Hotels, PAGE 15

The Bellingham Business Journal

ALLIES, FROM 3

breast prostheses, pocketed bras, and postmastectomy camisoles, which are worn after surgery and have drains for removing extra fluid. DeWitt waited until now to open Allies because she wanted to be cancer-free for five years before starting her business. “Up until then you really feel on the edge,” Dewitt said. “After that it still can happen but your percentage gets better.” That timing worked well for Sarah

McCown of Mount Vernon, who started fitting clients for breast forms eight years ago in Skagit County. McCown quit her job in 2012 to spend more time with her young family. Her kids are 6, 4 and 2. McCown wanted to open a boutique store, but she didn’t want to do it on her own. Dewitt got her name from a mutual friend and called her about opening the shop together. Brumet, the outreach coordinator at PeaceHealth, said she had been trying to get McCown, to open a shop in Bellingham for years. The two met and realized they had a

RELATIONSHIPS THAT LAST A LIFETIME

similar vision for the store, McCown said. Their market research showed that the business is viable, but they’re prepared for a slow start, and they built that possibility into their business model, Dewitt said. McCown is a certified mastectomy fitter and Dewitt is working toward getting certified, which requires 500 hours of supervised fitting. So far Dewitt and McCown are accepting clients by appointment seven days a week, and working toward getting enough clients to become accredited with the American Board for Certification in Orthotics, Prosthetics and Pedorthics. Certification will streamline the process for dealing with insurance and medicare suppliers. Currently, clients have to pay upfront, and can be reimbursed by their insurance

1205140

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companies later, but that’s not guaranteed, Dewitt said. In four to six months, Dewitt and McCown hope to have regular hours while still offering appointments outside of normal hours. After her first few fittings back at work at Allies, McCown remembered why she loves the work. It helps women regain confidence in their bodies, she said. “To be able to give that to somebody is a really unique experience,” McCown said. “My favorite fitting I’ve ever done was for an 85-year-old lady. I put her form on and she hadn’t had a properly fitting bra or prosthesis and she looks in the mirror and she goes, ‘I’m sexy again.’ It just makes you smile.”

Ferndale Gym owned by NFL pros will have opening celebration Jan. 17. BY OLIVER LAZENBY The Bellingham Business Journal

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January 2015

Two professional football players from Whatcom County opened a gym in Ferndale in December. Tennessee Titans quarterback Jake Locker and Tampa Bay Buccaneers punter Michael Koenen, along with Wes Herman, owner of The Woods Coffee bought Thrive Community Fitness, next to Haggen at 1859 Main St. in Ferndale. They changed the name to the Locker Room, and opened on Dec. 1. The gym will have a grand opening celebration, with appearances by Locker and Koenen, on Jan. 17. Other than the name, not much has changed yet at the gym. Herman said the staff hasn’t changed and the experience for gym members is the same.

“We’re not here to make wholesale changes,” Herman said. “This is about systematic slow change that our members can weigh in on and be a part of.” The 10,000 square foot gym will be getting new equipment and programs, including NFL training programs for young football players. In their off-season from the NFL, Locker and Koenen will have a “limited but effective” involvement with the gym, Herman said. “We are really excited about the opportunity to impact the community through a facility that will provide physical support and encouragement along the way,” Locker said in a press release. Herman has known Locker and Koenen for years, and he called the gym a venture that works

for the three of them for different reasons. For Koenen and Locker, it’s an opportunity to diversify, Herman said. “I don’t think that either one of them are getting ready to hang it up,” Herman said. “The NFL is not like a corporate position where you work for 20 years. It has a limited shelf life and the idea to have something after football is great.” Herman opened his first The Woods Coffee shop in Lynden in 2002 and now owns 15 locations. He said he sees potential to open other Locker Room gyms in the future. “If we can perfect this current gym, maybe we can carry this out and have others,” he said. “If opportunities arise, we will take a serious look at each one of those opportunities.

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BUSINESS BRIEFS

Fountain Bistro closing, inundated with offers

Within 24 hours after announcing that she was selling the Fountain Bistro, at 1910 Broadway Street, owner Jill Holmes had 10 offers. She hopes to select someone to take over the business. She plans to lease the space as it is, and she’s not selling a single item in the restaurant — not the portrait of Colonel Sanders that hangs over the former KFC, or even a single spoon, she said. She was also inundated with customers after the announcement on Dec. 8. Thursday, Dec. 11 was the busiest day yet at The Fountain Bistro. The restaurant’s last day of operation was Dec. 13. Holmes is hopeful that if she finds the right person to buy the business — she’s looking for a local restauranteur — it could reopen in January and retain some of the current staff. Holmes said business at the restaurant was good since she opened it in 2009, and closing the restaurant was a personal decision. After taking a break, she will focus on several other projects, including her real estate appraisal business. “It exceeded a lot of my expectations,” Holmes said. “This was my first restaurant venture, and it takes a lot of your time and a lot of your life.”

Hammill appointed to vacant city council seat

The Bellingham City Council appointed Daniel Hammill to the vacant third-ward council seat on Wednesday, Dec. 17. He replaces Cathy Lehman, who announced in August that she would resign at the end of this year to take a voter education and outreach job in Seattle with the Washington Environmental Council and Washington Conservation Voters. She resigned on Dec. 15. Hammill has lived in Bellingham for 25 years. He has served as a chair for the City of Bellingham Community Development Advisory Board and as a trustee for the Kulshan Community Land Trust. He currently owns a business

The Bellingham Business Journal

called Make it Rain Media and Events, which raises money and produces video for nonprofit events. Hammill was also the program director for the Volunteer Center of Whatcom County for nine years and co-founder of Bellingham/Whatcom Project Homeless Connect and House 2 Home Network. The council voted unanimously for Hammill. “For me with Dan it’s been his involvement in a wide range of things over a long period of time in the city,” said council member Terry Bornemann. Hammill said he plans to seek public election for the position in 2015.

Bellingham trampoline facility opens Trampoline Zone, a Bellingham warehouse covered in trampolines, foam, and padding opened in late December. The18,000-square-foot trampoline facility at 4201 Meridian St., behind the Pro Golf Discount store, has about 75 trampolines total, said owner Rajiv Malhan. Trampolines are partitioned into several separate areas of the warehouse, including a section for trampoline dodgeball, a trampoline basketball area, a general jumping area, and an area with foam pits and a rope ladder. Before opening, Malhan saidan hour of jumping would cost $8 or $9 on weekdays and $11 on weekends. Children less than 46-inches tall will get a cheaper price. Malhan said one hour is about as much time as most people can handle in a trampoline park. “In one hour most people are totally exhausted,” he said. “Little kids, they’re not, but people in their 30s and 40s, that’s all they can take.” Malhan has opened trampoline facilities in Yakima, Kennewick, Salem, Oregon and Eugene, Oregon. Malhan said Trampoline Zone is similar to the other facilities in size.

Woods Coffee opens first Skagit County location The Woods Coffee opened its first coffee shop outside of Whatcom County on December 15.

The shop, at 1626 Freeway Drive, near the W. College Way exit on Interstate 5, will opened to customers at 4:30 a.m. on Monday. “I am thrilled to welcome The Wood’s Coffee to the City of Mount Vernon,” said Jill Boudreau, City of Mount Vernon mayor, in a press release. “We especially value locally owned businesses as part of a vibrant hometown character.” The company hired 13 new employees to accommodate its new coffee shop, including 11 from Skagit County, according to a press release. “It has taken more than a few years to find the right place to start our first store in Skagit County,” said Wes Herman, owner of Woods Coffee, said in the news release. “Working with the City of Mount Vernon has been a great experience.”

State Street Insurance and Wilson Motors win top chamber awards The Bellingham/Whatcom Chamber of Commerce and Industry chose State Street Insurance and Wilson Motors for their Small and Large Businesses of the Year. The chamber presented business awards at its 10th annual awards dinner on Thursday, Dec. 4 at the Best Western Lakeway Inn. The Tourism Business of the Year award went to Boundary Bay Brewery. The Green Business of the Year Award went to Western Washington University and the Whatcom Dispute Resolution Center won the Nonprofit Business of the Year award. The chamber presented Charles Self with the Man of the Year Award for his involvement in Bellingham. He has served on boards for the Whatcom Museum Society and the Bellingham Festival of Music. Self is a retired Walmart executive. Carole MacDonald won the Woman of the Year award. MacDonald and her husband owned and operate the Inn at Mount Baker, and she has been involved with the Mt. baker Foothills Chamber of Commerce. Whatcom Young Professionals voted Travis Rhone of Whatcom Land Title as the Young Professional of the Year award. He has been a member of the

instruction for 10 years. The college’s board of trustees will select a new president. “The board acknowledges and appreciates McKeown’s dedication and innovation in leading the college to create and deliver high-quality education to our community,” said board of trustees chair Jim Groves. McKeown is uncertain about her plans for retirement but knows they will include spending more time with family and friends, hobbies, traveling and finding ways to continue to contribute to helping others, she said in the press release.

Whatcom Young Professionals organization for two years and participates in organizing charity events, volunteering at his church, and he works on a committee for the Whatcom County Association of Realtors. The chamber’s brand new award, the Millie Deford Chamber Ambassador of the Year award — named for longtime chamber member Millie Deford, who founded the chamber’s monthly networking breakfast — went to Cale Luna of Advance Solutions Technology. Luna has served as the chamber’s lead ambassador for four years and volunteers at many events.

Bellingham Technical College president announces retirement

Davidson hired to lead WWU border research institute Western Washington University selected David Davidson to be the interim director of the college’s Border Policy Research Institute. Davidson was associate director of the institute from 2005 to July 2014. He is returning to take over after longtime director Don Alper retires from the university at the end of the year. “David has been a part of

Bellingham Technical College president Patricia McKeown announced her plans to retire at the end of June 2015. McKeown’s started at Bellingham Technical College in 1984. In her 30 years with the college, she worked with every program at the college, according to a press release. Before becoming president she was vice president of

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the Border Policy Research Institute from its beginnings and has been a large element in its success over its life,” said Brian Burton, associate vice president for Academic Affairs at Western, in a press release. “His experience both with the BPRI and outside Western, his connections, and his broad knowledge will help ensure the BPRI continues to fulfill its mission to the best extent possible.” In his 14 years with the research institute, Davidson has conducted field research with students, produced the Institute’s periodical – the Border Policy Brief, and administered day-to-day operations. Before working at Western, Davidson was the city administrator for Sumas a small border town. “The BPRI is a vital asset to the state of Washington, given the huge boost that Canada provides to the state’s economy. It’s crucial that the BPRI remain productive during this transition period that follows Don Alper’s departure, and I’m honored that Western has entrusted me to keep things moving forward,” Davidson said in the news release.

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January 2015

Market Indicators

Jobs: Unemployment rate up Bankruptcies

Chapters 11,13 Chapter 7

Includes non-seasonally adjusted figures for Washington State

70%

67.5%

65%

62.5%

J FMAM J J A S OND J FMAM J J A S ON

2014

2013

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

Includes non-seasonally adjusted figures in Whatcom County

20 10

October 2014: 6.1% October 2013: 6.1 %

November 2014: 63.6% November 2013: 63.1 %

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

Unemployment rate

Labor force participation rate

Year-to-date: 935 Annual change: �38.89%

2013

2014

SOURCE: UNITED STATES BUREAU OF LABOR STATISTICS

J FMAM J J A S OND J FMAM J J A S O

2013

2014

SOURCE: WASHINGTON STATE UNEMPLOYMENT SECURITY DEPARTMENT

Spending: Canadian dollar continues down Includes monthly averages (Canada-to-U.S.) at market closing

Includes basic and optional local sales tax to Bellingham

$1.2

$2M

$1.0

$1.5M

$0.8 $0.6

$1M

$0.4

0.5M 0

$0.2

J FMAM J J A S OND J FMAM J J A S ON

0.0

SOURCE: WASHINGTON STATE DEPARTMENT OF REVENUE

30M

25M

20M

15M

10M

0.5M

J FMAM J J A S OND J FMAM J J A S ON

2013

2014

2013

Bellingham: Year-to-date: $152.32M Annual Change: + 119.95%

November 2014: $0.88 November 2013: $0.95

Year-to-date: $18.41M Annual change: + 4.00%

$2.5M

Building-permit values

Canadian dollar

Sales-tax distribution

0S ON J FMAM J J A S OND J FMAM J J A J FMA 2013 2014 2013

2014

SOURCE: BANK OF CANADA

Bellin

SOURCE: CITY OF BELLINGHAM

Housing: Prices up, sales down 350K

Average price Median price

300K

Foreclosures & delinquencies

Housing sales

Housing sale prices

Delinquency rate: September 2014: 2.41% September 2013: 3.27% Foreclosure rate: September 2014: 0.86% September 2013: 1.12%

Closed: Year-to-date: 2,659 Annual change: -8.71% Pending: Year-to-date: 3,570 Annual change: +11.94%

Average: November 2014: $288,712 November 2013: $294,779 Median: November 2014: $265,000 November 2013: $260,000

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

500

Pending sales Closed sales

400

5% Delinquency rate

Foreclosure rate

300

250K

200

J FMAM J J A S OND J FMAM J J A S ON

2013

2014

SOURCE: NORTHWEST MULTIPLE LISTINGS SERVICE

100

J FMAM J J A S OND J FMAM J J A S ON

2013

2014

SOURCE: NORTHWEST MULTIPLE LISTINGS SERVICE

J F M A M J J A S O N D J F M A M J A S

2013

2014

SOURCE: CORELOGIC

Tourism traffic: Tourism down seasonally Airport traffic

Cruise terminal traffic

Year-to-date: 495560 Annual change: -5.98%

Border traffic

Year-to-date: 24,271 Annual change: - 24.3 %

November 2014: 545,964 Yearly change: �18.38% Monthly: �3.84%

Includes total enplanements at Bellingham International Airport

80K

Includes southbound passenger-vehicle crossings into Whatcom County

Includes inbound and outbound passengers at Bellingham Cruise Terminal

5,000

600K

60K

4,000

500K

50K

3,000

70K

40K

300K

2,000

30K 20K

200K

1,000

10K 0

400K

J FMAM J J A S OND J FMAM J J A S ON 2013

SOURCE: PORT OF BELLINGHAM

2014

100K

J FMAM J J A S OND J FMAM J J A S ON 2013

SOURCE: PORT OF BELLINGHAM

2014

J FMAM J J A S OND J FMAM J J A S ON

2013

2014

SOURCE: CASCADE GATEWAY DATA

Notes: 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.

January 2015

The Bellingham Business Journal

Salvaged old-growth wood finds new life in local skis Sky Pilot Custom skis uses reclaimed wood from barns, canneries and gym floors

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experimenting and building about 30 skis for friends, 25-year-old Turner started selling his skis this winter under the name Sky Pilot Custom. To start the business, Turner, a recent graduate of Quest College in Squamish, moved back to his parents house outside Bellingham and turned their garage into a ski shop. “If I was going to try to do it and make it into a business it just made sense to do it with as low overhead as I possibly could,” Turner said. Before moving back to Bellingham, demand was building for Sky Pilot skis in Squamish, Turner said. But his work visa was temporary, the business was outgrowing his one-car garage and industrial space in Squamish was prohibitively expensive, he said. Each ski is custom — when someone orders a pair of Sky Pilot skis, they choose the shape and size. Turner even makes custom snowboards. Turner may not be the only person building custom skis in the Pacific Northwest, but his skis’ cores laminated from strips of reclaimed old-growth are unique. The core, a layer of wood between the ski’s base and topsheet, gives the ski its strength Finished skis and a snowboard in the shop at Sky Pilot and determines how it flexes. The oldCustom’s headquarters. OLIVER LAZENBY PHOTO | THE BBJ growth wood Turner makes skis out of has tight grains and few knots, which Alex Turner, owner of Sky Pilot Custom skis, grinds a ski’s metal edge in makes for a strong ski, he preparation for pressing the ski together. OLIVER LAZENBY PHOTO | THE BBJ said. “The core is the heart BY OLIVER LAZENBY and soul of the ski,” Turner The Bellingham Business Journal said. “It’s one thing that I’m ARE YOU LOOKING TO confident is some of the The ancient trees that used to cover the Pacific Northbest that you can find.” ➤ Build your conﬁdence? west barely exist outside protected wilderness areas. The This year, Turner is selltight-grained lumber the behemoths produced, however, ➤ Grow as a leader? ing his custom skis for still stands on old buildings throughout the region. $550. That’s Less than half ➤ Improve your communication & build When a job as a carpenter and construction worker in the price of most custom speaking skills Squamish, B.C., gave Alex Turner a chance to harvest oldskis on the market. At that growth timber from renovation projects, he found a way price, he’s making money Visit a Toastmasters club - it will change your life. to give the ancient wood new life. off the skis but not much In his one-car garage surrounded by the Coast Moun20 local clubs to more than a McDonald’s For more info or to tains, Turner and a friend crafted skis from planks of fir employee. They will be choose from find a club near you, visit: and spruce reclaimed from canneries, homes, barns and morning • noon • evening gym floors. www.toastmaster.org Start your own club Skis, PAGE 13 The skis turned out well. After a year and a half of

The Bellingham Business Journal

January 2015

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parking above or secured underground. Guests can workout in the 24-hour Fitness Center, relax in our indoor pool and hot tub, take advantage of the complimentary self-serve laundry, Free high speed Wi-Fi, and a business center with PCs and printer. Beverages and other snacks are available around the clock in our Markets with nightly dining options in the Chuckanut Lobby Bar. Our ﬂagship hotel brands deliver the quality experience you expect, backed by the Marriott name you trust.

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in Bellingham, Washington is scheduled to open this winter. Located at 4050 Northwest Avenue, the TownePlace Suites Bellingham will operate as a Marriott franchise, owned and managed by affiliates of 360 Hotel Group of Lynnwood, Washington. The brand new extendedstay hotel connects to the 122-suite SpringHill Suites by Marriott hotel that opened in October 2013. Located north of downtown and two miles from Bellingham International Airport, the hotel offers guests convenient access to the Fairhaven Historical District, Bellis Fair Mall, Mt. Baker Ski Area and Vancouver, British Columbia. Rates vary depending on length of stay. Guests can enjoy a complimentary continental breakfast every morning in the lobby area, as well as 24-hour On Us® coffee service. For those who want a quick snack, guests can also select food and beverage items from the 24-hour In a Pinch® market. “We are pleased to introduce the TownePlace Suites brand to the Bellingham area,” said Loren Nalewanski, vice president and global brand manager, TownePlace Suites. “Providing an upscale residential atmosphere, this TownePlace Suites hotel offers an appealing alternative to more standard hotel rooms designed for shorter stays.” Ideal for travelers who need accommodations for longer stays, this property offers studio, one-bedroom and two-bedroom suites with fully equipped kitchens that have stainless steel appliances and granite countertops, as well as separate living/ working and sleeping areas. Guests can work and relax on their terms in modern suites that feature a fun, yet sophisticated sofa and task chair, a 42” flat panel television, as well as luxurious new bedding. All rooms also feature the Home OfficeTM Suite, designed to provide guests with plenty of storage and flexible space to spread out and make it their own. And guests will especially appreciate The Container Store’s elfa closet system and an in-room safe. TownePlace Suites by Marriott is an all-suite, extended-stay hotel brand in the moderate price range. Ranked highest in the Extended Stay category in the J.D. Power 2013 North America Hotel Guest Satisfaction Index StudySM, TownePlace Suites has also been #1 for mid-price extended stays in Business Travel News’ Hotel Chain Survey in 2011, 2012 and 2013. Ideal for travelers who need accommodations for longer stays, TownePlace Suites offer studio, one-bedroom and two-bedroom suites with fully equipped kitchens and separate living/working and sleeping areas. Launched in 1997, the brand currently has more than 200 locations in the United States and Canada. TownePlace Suites participates in the award-winning Marriott Rewards® frequent travel program that allows members to earn hotel points or airline miles for every dollar spent during each stay. For more information or reservations, contact the TownePlace Suites Bellingham directly at 360-714-9700, call the TownePlace Suites toll-free number at 800-257-3000, visit www.marriott.com/blits or become a fan at www.facebook.com/towneplacesuites.

Visit Marriott International, Inc. (NASDAQ: MAR) for company information. For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.

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January 2015

PORT NEWS Economic growth at Bellingham International Airport

Sponsored content provided by Port of Bellingham

For British Columbia businesses looking to expand into the United States, Whatcom County is an ideal gateway into one of the largest economies in the world. Cheap land, a close proximity to British Columbia’s population and economic centers, and an effective transportation network has helped create a strong local network of Canada-based manufacturers, importers, distributors, agents and other business professionals. Nature’s Path, a Richmond-based organic cereal and granola company built its first U.S. manufacturing facility in Blaine in 1999. With a high percentage of sales in the U.S., having facilities on both sides of the border allows the company to hedge against currency inflation. Nature’s Path now employs over 100 people at its Blaine facility and expansion into the U.S. market has helped the company grow to over $300 million in annual sales. For every Canadian business which successfully expands into Whatcom County, there are typically new job opportunities for local residents. For this reason the Port of Bellingaham is actively marketing Whatcom County at trade shows and expos in British Columbia. “An important part of my job is making connections with the business community in lower mainland BC,” said John Michener, economic development specialist with the Port of Bellingham. “The US market is highly sophisticated and there are a tremendous number of resources in

Tom Strohhacker, owner of North West Book, specializes in the production of magazines, textbooks and high quality boxes. For more information, visit www.northwestbook.com Whatcom County to support CanaVancouver-based supplier of juvenile dian companies who want to expand furniture, opened a distribution centheir business interests across the ter on Port property on Bellingham’s border. I typically provide information on tax incentives, worker visas, cross-border logistics, and U.S. banking and financial services.” ‘Location, location, location’ was the primary reason Stork Craft, a

waterfront. Whatcom County offers the best location for Canadian managers to operate a US distribution facility during the day and still get back home to BC to have dinner with their families at night. Tom Strohhacker relocated his successful BC manufacturing business, North West Book, to Whatcom County in January 2014 for several reasons. “The affordability of real estate was a big reason we looked south in the first place. Moving here has opened up a whole new market of customers for us and being just 20 minutes south of the border, just off the I-5 and close to the airport, hasn’t affected the business we continue to do with our Canadian customers” said Strohhacker. For more information on company relocation or expansion in Whatcom County, contact John Michener johnmi@portofbellingham.com or Dodd Snodgrass dodds@portofbellingham. com at the Port of Bellingham, 360676-2500.

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The Bellingham Business Journal

January 2015

Technology becomes more than convenient for travelers Sponsored content provided by Loni Rahm, and Bellingham Whatcom County Tourism.

Travel Research and Predictions Center on Technology and Personal Choice The travel industry is a reflection of how dependent we have become on technology. Travel trends and con-

sumer surveys indicate that the travel experience will continue to be initiated, dictated and managed through personal technology devices. A recent study conducted by Pho-

CusWright indicates that more than half of travelers between the ages of 25 and 44 use smartphones and/or tablets to shop for leisure travel. A survey of Android mobile users reported

that 61 percent made some kind of travel booking through their mobile device. Sixtyfive percent of men and 58 percent of women booked travel using their Android smartphone. Those aged 35-44 booked travel the most – 68% of this demographic reported they booked travel through their Android. In a new Switchfly survey, American travelers were asked what they expect out of travel by 2020. 5% of Americans admit they’re anticipating having space-traveled around low Earth orbit by 2020. 3% expect to have visited the International Space Station or Mars by that year. The more earth-bound travelers (14%) stated they anticipate being able to book travel by 2020 using technology that hasn’t been invented yet. The Switchfly survey also underscores the personal choice trend many successful attractions and travel suppliers have embraced in recent years. According to the survey,

nearly three-quarters of Americans expect travel to be personalized by 2020, including tailored offerings such as computers default booking your favorite place to sit in planes, along with your car and hotel preferences; making travel plans with only one click of your smart device, using facial recognition software during check-in, and computers placing you next to someone on a plane or train whose social or professional profile complements yours. Ironically, despite all the technological tools that propel travelers to a particular destination, the purpose of travel continues to be exploration, relaxation and family/friends interaction. TripAdvisor’s latest TripBarometer survey studied the psychology of travel and the emotions U.S. travelers feel throughout the booking, traveling and returning home process. For two-thirds of travelers, the most important goal for Americans is getting a unique and interesting

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experience. Enjoying special moments together with loved ones is the second most important goal. Both U.S. and foreign travelers see equal importance in living life to the fullest. The survey found travelers are most excited upon arriving at a destination, and the second highest level of excitement comes during the booking stage. Travelers are also most relaxed during a trip, and are expectedly most fulfilled upon departing from the destination. Likely feeling the effects of wanderlust, more than threequarters of U.S. travelers say “returning home from one vacation prompts them to plan another one.” The relaxation and fulfillment factor has spurred a 58% increase in spa and wellness tourism over the past six years. Research released by the Global Spa & Wellness Summit indicates that while European countries continue to lead the industry, North America is gaining momentum more rapidly -- generating $18.3 billion in 2013. Susie Ellis, chairman & CEO of Global Spa & Wellness cites factors contributing to this growth, “An aging population, widespread economic prosperity in emerging economies, the rise of “lifestyle” diseases associated with sedentary and stressful living, and conventional healthcare’s failure to prevent illness have all combined to form a “perfect storm” that’s behind the wellness movement.” My New Year’s resolution is to travel more in 2015. I need the relaxation and wellness. And I suspect you do too.

January 2015

The Bellingham Business Journal

SKIS, FROM 9 more expensive in the future, he said. “Step one is to make the nicest ski I can possibly make, and I’m feeling pretty good about where the skis are at,” Turner said. “I’m at that jumping off point where this is going beyond something I’m just doing in my garage and selling to friends. I’m ready to put it out there and get more feedback on it.” Turner’s confidence in the quality and durability of his skis is demonstrated by the way he rides them. Last fall, he took them to Patagonia, a region of glaciated mountains in Argentina and Chile, and skied tall peaks miles from remote trailheads, where a broken ski would be dangerous. Oliver Snow, Turner’s former roommate who helped set up the first incarnation of Turner’s ski shop in their Squamish house, called the skis the best he has ridden in a lifetime of skiing. “The skis I made and am riding right now were, I believe, the third or fourth pair we ever made, which means they were not without their flaws,” Snow said in an email. “I had previously been riding a pair of Salomon rocker 2s which had been the best skis I had ever ridden but my new homemade skis outperformed them.” In the ski shop half of Turner’s garage, next to piles of drying maple, skis in various stages of completion, and wooden boats he helped his dad build as a kid, is a stack of wooden surfboards Turner built. Turner is influenced by surfing’s culture of hand-shaped boards. In

surfing, he said, building and shaping a board is more about artistry than engineering. That’s what Turner is going for with his custom skis. He studied film and ecology in college and has no formal engineering training. “It’s not just some mundane household object, it’s something people are going to develop a relationship with and fall in love with,” said Keaton Brown, who is learning how to build skis from Turner. Turner has used a variety of materials for his skis’ topsheets — the top layer in the sandwich of materials that are pressed together to make a ski. But most often, his skis get a wood veneer topsheet to match their wood cores. The result is a simple looking ski that stands out in the ski resorts. “It’s cool when you’re out on the hill and every chairlift ride someone is like, ‘What are those? Where did they come from? How do I get them?’” Turner said. “They kind of sell themselves.” At first, Turner did almost every aspect of ski construction by hand. He built a pneumatic ski press, which squeezes the layers of plastic, wood, and metal together with an epoxy that he said isn’t exactly good for the environment, but “less bad” than what most of the ski industry uses. The press, like his skis, has a unique story, and includes parts of a firehose salvaged from the Squamish Fire Department. Turner said his skis rode well from the beginning, but modifications along the way fine-tuned their performance and streamlined the manufacturing process. Building a computer numerical control machine

for cutting ski material was one of the biggest time savers for the manufacturing process. “Running the CNC(computer numerical control machine) for the first time was almost as exciting as riding the skis for the first time,” Turner said. While building skis for Mount Baker’s deep snow and wearing a Boundary Bay Brewery sweatshirt, Turner said he’s glad to be back in Bellingham. He’s inspired by Bellingham’s locally focused culture and he plans to have local businesses mill his wood and tune finished skis. Turner is working on finding sources for salvaged wood near Bellingham. For now, he’s making skis from a bigleaf maple he felled in his yard. Finding a source for more salvaged wood is a priority. In the meantime, he’s using as much of the tree as he can for skis, and the shavings that he doesn’t use become bedding for the chickens in his yard. Turner isn’t making the jump to building skis full-time just yet. He plans to fish in Alaska next summer to support his skiing and ski building. “I’d love for it to work out to where it could be a full-time job,” he said. “I’m going to make as many skis as people want me to make. If it means I have to hire another employee then I will. If eventually we need to grow out of my parents garage, so be it, but I just don’t want to jump the gun too much.”

Oliver Lazenby, associate editor of The Bellingham Business Journal, can be reached at 360-647-8805, Ext. 5052, or olazenby@bbjtoday.com.

HAGGEN, FROM 1 tional 200 people, mostly in the Pacific Southwest region, Clougher said. After the deal, the company will be led by two co-CEOs. Clougher will be the Pacific Northwest region’s CEO, and Bill Shaner, former CEO Here Today discount retailer and Save-A-Lot foods, has been hired as CEO of the Pacific Southwest region. Haggen closed 10 stores in the past two years. When Clougher took over as CEO in October, he said sales numbers were up and that Haggen was ready to grow again. Cerberus Capital Management, the private investment firm that manages Safeway and Albertsons, came to Clougher with the opportunity to buy the stores a few months ago, he said. Shaner and Clougher have been working together for 120 days. “From my perspective it’s a great opportunity for Haggen and the businesses that support us,” Clougher said. “My goal is to grow Haggen and grow it in a healthy fashion.” Haggen does business differently than Safeway or Albertsons and has more emphasis on local products, Clougher said. The brand will take that into account while transitioning the stores. “Our basic strategy is when the brand changes to Haggen, we want to do everything we can to make sure the customer base of that store can still get the products that they want,” Clougher said. “Our process is to not disrupt the current experience, yet we do want to bring the Haggen experience by bringing in our private label and some of our great bakery products and food services. We’re looking to add, we’re not looking to take away.” Cerberus Capital Management, the private equity firm that owns Albertsons, is selling the stores to help gain regulatory approval from the Federal Trade Commission for their planned merger with Safeway. Albertsons and Safeway are selling 168 stores total. Associated Food Stores will purchase eight stores in Montana and Wyoming, associated Wholesale Grocers/Minyards will purchase 12 stores in Texas, and SuperValu will purchase two stores in Washington. The purchase agreements with the four buyers are all subject to approval by the Federal Trade Commission.

Public Records Business licenses Listings, which feature both new and renewed licenses, include business name, licensee name and the business’ physical address. Records are obtained from the City of Bellingham. 1st Choice Auto Glass Llc, 1st Choice Auto Glass Llc, 3532 Skylark Loop, Bellingham, WA 9822. Alchemical Solutions, Llc, Alchemical Solutions, Llc, 811 Yew St., Bellingham, WA 98229. Align Hypnotherapy, Jennifer Long, 1410 11th St., Bellingham, WA 98225. Allstar Gk Contractor, Luis Salazar, 2100 Alabama St., Bellingham, WA 98229. Apex Restaurants, Inc., Apex Restaurants, Inc., 1297 E Sunset Dr., Bellingham, WA 98226. Ashley Wallace, Ashley Wallace, 8 Sundew Ct., Bellingham, WA 98229. Aurum Health, Llc, Aurum Health, Llc, 1903 D St.,Bellingham, WA 98225. Auto Network, Keith Bryan Buchanan, 2000 Viewhaven Ln., Bellingham, WA 98229. Becca’s Embroidery And Custom Gifts, Rebecca Ann Moldenhauer, 911 S Hills Dr., Bellingham, WA 98229. Bellingham Paintball Supply, Jake Leavitt Smart, 3815 Bakerview Spur Ste 6, Bellingham, WA 98226. Bellingham Rental Properties Llc, Bellingham Rental Properties Llc, 2617 N Shore Rd, Bellingham, WA 98226. Bellingham Strength & Conditioning, Travis Anthony Janeway, 2418 Humboldt St., Bellingham, WA 98225.

Bellingham Urology Pllc, Bellingham Urology Pllc, 2659 Lake Whatcom Blvd, Bellingham, WA 98229. Bellingham’s Forte, Bellingham’s Forte, 2407 Pacific St., Bellingham, WA 98229 . Bells And Whistles, Whatcom Complete Autocare Inc., 2211 Rimland Dr., Ste 124, Bellingham, WA 98226. Bk Development, Bk Development, 2211 Rimland Dr., Ste 124, Bellingham, WA 98226. Brianfclark.Com, Brian Frederick Clark, 1691 Sapphire Trl, Bellingham, WA 98226. Bright Infinity, Tarik Abissi, 1 Bellis Fair Pkwy., Bellingham, WA 98226. Cascade Crest Construction, Cascade Crest Construction Llc, 2010 Jefferson Ave., Bellingham, WA 98229. Chipotle Mexican Grill, Inc., Chipotle Mexican Grill, 4 Bellis Fair Pkwy, Bellingham 98226. Clay Brannen Massage,Clayton Joshua Brannen, 1605 N State St., Bellingham, WA 98225. Clearwater Plumbing And Remodel, Clearwater Plumbing And Remodel Llc, 925 Newell St., Bellingham, WA 98225. Colson Research, Colson Research Llc, 1655 Skagit St., Bellingham, WA 98226. Composites Research Institute, Llc, Composites Research Institute, Llc, 1723 Woburn St., Unit A, Bellingham, WA 98229. Ct Welding, Chad Eric Terwisscha, 820 36th St., Bellingham, WA 98229. Curley’s Natural Health, Jayme Clise Curley, 1008 W Toledo St, Bellingham, WA 98225. D.T. Care, Danielle Thomas, 2259 E Hemmi Rd., Bellingham, WA 98225. Exp Realty, Llc, Exp Realty, Llc, 1106 Harris Ave., Ste

104, Bellingham, WA 98225. Fabric Creations, Kori Ann Thornton, 4300 Alice St., Bellingham WA 98226. Fermi Games, Simon Garth Farmer, 1540 E Maryland St., Bellingham, WA 98226. Firehouse Arts In Motion, Firehouse Arts In Motion, 2810 Lyle St., Bellingham, WA 98225. Franzy, Liliana Franz. 2636 Nome St., Bellingham, WA 98225. Furtado Communication, Kathleen L Furtado, 2612 Roslyn Pl, Bellingham, WA, 98226. Garner.N.Done, Matthew Daniel Garner, 615 N State St., Apt 102, Bellingham, WA 98225. Gateway Languages, Inc., Gateway Languages, Inc., 1117 Ellis St., Bellingham, WA 98225. Glory Naturals Inc., Glory Naturals Inc., 4152 Meridian St., Ste 105-337, Bellingham, WA 98226. Ground Up Inspection Service Llc, Ground Up Inspection Service Llc, 5050 Samish Way, Bellingham, WA 98229. Halleck Holistic Health Ps, Halleck Holistic Health, Ps, 208 Halleck St., Bellingham, WA 98225. Handy Helpers, Handy Helpers, 1901 Texas St., Bellingham, WA 98229. Harbor Motor Company, Harbor Motor Company, 1407 Iowa St., Bellingham, WA 98229. Healing From Home Remedies, Healing From Home Remedies, 491 Westerly Rd., Apt 204, Bellingham, WA 98226. Heather M. Geer, Heather Geer, 1213 N State St., Bellingham, WA 98225. Hemp Dwellings, Pamela Bosch, 1010 Highland Dr., Bellingham, WA 98225.

Holly Michelle Photography, Holly Michelle Smith, 617 Highland Dr., Bellingham, WA 98225. Inner Child Studio, Inner Child Studio, 3342 Forest Ct., Bellingham, WA 98225. Institute Of Automata Science, ianna J Zhang, 4580 Lost Creek Ln., Bellingham, WA 98229. Jb Cattle Company Llc, Jb Cattle Company Llc, 2429 Moore St., Bellingham, WA 98229. K & A Services, K & A Services, 1520 Fruitland Dr., Bellingham, WA 98226. Katherine Louise Petersen, Katherine Louise Petersen, 512 Darby Dr., Unit 110, Bellingham, WA 98226. Knight Inspections Llc, Knight Inspections, Llc, 1815 Lakeside Ave., Bellingham, WA 98229. Kulshan Commercial Investment Real Estate, Llc., Kulshan Commercial Investment Real Estate, Llc, 114 W Magnolia St., Ste 400-146, Bellingham, WA 98225. Kulshan Eye Care, Rhonda Swanson, 4420 Meridian St., Bellingham, WA 98226. Lgm Indoor Services, Benjamin Scott Sutherland, 3100 Ferry Ave., Bellingham, WA 98225. Little Tokyo, Shp Corp, 2915 Newmarket St Ste 101, Bellingham, WA 98226. Lori R. Nichols Consulting, Inc., Lori R. Nichols Consulting, Inc., 2918 Cherrywood Ave., Bellingham, WA 98225. Lutheran Campus Council, Lutheran Campus Ministry At WWU, 1720 Harris Ave., Bellingham, WA 98225. Lynn Wilson Consulting Llc, Lynn Wilson Consulting Llc, 3215 Sypglass Dr., Bellingham, WA 98226. M & T Nails, Van Thi Thu Le, 436 W Bakerview Rd., Ste

110, Bellingham, WA 98226. Melissa Ann Betz, Melissa Ann Betz,1105 Mckenzie Ave., Bellingham, WA 98225. Michael Daniel Powers, Michael Daniel Powers, 5081 Samish Way, Bellingham, WA 98225. Molly Simpson, Molly Ann Marie Simpson, 705 N State St., Bellingham, WA 98225. Motus Connect Inc., Motus Connect Inc., 1240 Chuckanut Dr., Bellingham, WA 98229. Mytrafficman Corporation, Mytrafficman Corporation, 1828 Franklin St., Ste D, Bellingham, WA 98225. Neighborhood Youth Centers, Neighborhood Youth Centers, 2100 Broadway St., Bellingham, WA 98225. Nw Cannabis Collective, Nw Cannabis Collective, 4165 Hannegan Rd., Bellingham, WA 98226. Ohana BBQ, Edward Grammer, 556 Lohink Pl., Bellingham, WA 98229. Opio, John Harrison Poor, 504 N State St., Bellingham, WA 98225. Perennial Painting Llc, Perennial Painting Llc, 5335 Belfern Dr., Bellingham, WA 98226. Pixie Dust Princess Parties, Chauncey Anne Trask, 2950 Newmarket St # 101-252, Bellingham, WA 98226. Powerhouse Designs, Powerhouse Designs, 702 Kentucky St # 339, Bellingham, WA 98225. Recipes For Change, Rob Atkinson, 3330 Northwest Ave., Bellingham, WA 98225. Richard Whitlock, Richard William Whitlock, 178 E Kellogg Rd., Bellingham, WA 98226.

RECORDS, PAGE 20

RECORDS, FROM 19 Rock’n Body Massage, Karly Joann Schenck, 1605 N State St., Bellingham, WA 98225. Ronda L Siler, Ronda L Siler, 621 32nd St., Bellingham, WA 98225. Safeway Growler Store, Safeway Inc., 1275 E Sunset Dr Ste B, Bellingham, WA 98228. Sawaya Studio Llp, Sawaya Studio Llp, 1317 Commercial St Ste 202, Bellingham, WA 98225. Segar Photography, Wesley George Segar, 5319 Belfern Dr., Bellingham, WA 98226. Sensebellum, Casey Jay Scalf, 310 Highland Dr., Bellingham, WA 98225. Shanni L Welsh, Shanni L Welsh, 1322 Sommerset Ct., Bellingham, WA 98226. Somatic Integrity Llc, Somatic Integrity Enterprises Inc., 1101 N State St., Ste 201, Bellingham, WA 98225. Stella Hutson, Stella Hutson, 1020 Railroad Ave., # 306, Bellingham, WA 98225. Sun Community Service, Sun Community Service, 515 E Chestnut St., Bellingham, WA 98225. Swansong Vintage, Patricia Anne Swanson, 1802 1/2 D St., Bellingham, WA 98225. Sympatico Massage, Tani Coxon, 1200 Old Fairhaven Pkwy., Bellingham, WA 98225. Tayloriginal Designs, Pamela Taylor, 614 Starflower Ct., Bellingham, WA 98226. Tc Construction, Tim Cobb, 950 E Bakerview Rd., Bellingham, WA 98226. The Aras Foundation, The Aras Foundation, 3125 Brandywine Ct Bellingham, WA 98226. The Still Point, Debra Jeannine Wibe, 1155 N State St., Ste 412, Bellingham, WA 98225. The T Shack, Custom Tacoma Llc, 1 Bellis Fair Pkwy., Bellingham, WA 98226. Tracy Niemier, Tracy Niemier, 4725 E Oregon St., Bellingham, WA 98226. Tracy Palmer, Tracy Palmer, 44 E Pacific View Dr., Bellingham, WA 98229. Tranquil Massage, Lisa Clement, 301 W Holly St., # D-27, Bellingham, WA 98225. Vanessa Story Designs, Vanessa Marie Story, 2411 Humboldt St., Bellingham, WA 98225. Whatcom County Amateur Hockey Association – W.C.A., Whatcom County Amateur Hockey Association – W.C.A.H.A., 1225 Civic Field Way, Bellingham, WA 98226. Whatcom County Democratic Party, Whatcom County Democratic Party, 215 W Holly St., Bellingham, WA 98225. William Ziels Professional Services, William Larry Ziels, 49 Strawberry Pt Ct, Bellingham, WA 98229. Wyn Distribution, Jason Wilhelm, 1255 Toledo St., Bellingham, WA 98229. Your Perfect Legging, Kelsey Michelle Barnwell, 5 Inglewood Pl.., Bellingham, WA 98229.

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. Status updates on permits are available on the city’s website at http:// pnw.cc/sVCen. 12/8/14 to 12/12/14 Issued permits 3000 Lindbergh Ave., $292,000 for commercial: remodel of a classroom into chemistry lab. Contractor: Tiger Construction LTD. Permit No.: BLD2014-00449. 12/10/14. 1905 N State St., $146,992 for commercial: 2592-square-foot, one-story pre-engineered steel addition for auto parts storage. Contractor: Com-Steel LLC. Permit No.: BLD2014-00543. 12/11/14. 202 E Holly St. 110, $30,000 for tenant improvement: interior modifications for new sushi restaurant: Jun Sushi and Bento. Permit No.: BLD201400445. 12/11/14. 794 Kentucky St., $10,000 for commercial: repair and replace siding and door damaged by vehicle impact. Contractor: Z Construction Inc. Permit No.: BLD2014-00569. 12/12/14. Pending applications 1148 10th St., $120,000 for tenant improvement: new restaurant in shell tenant space. Permit No.: BLD2014-00561. 12/8/14. 218 Unity St., $90,000 for tenant improvement:

The Bellingham Business Journal interior office renovations. BLD2014-00563. 12/9/14. 220 Unity St., $15,000 for tenant improvement: interior office renovations. BLD2014-00562. 12/9/14. 205 Prospect St., $39,000 for tenant improvement of main floor annex for new sculpture gallery. Permit No.: BLD2014-00564. 12/9/14. 665 Telegraph Road, $457,759 for new six-unit multifamily building. BLD2014-00568. 12/11/14. 1400 Cornwall Ave., $80,000 for commercial: replacement of canopy and repairs to entry facade and doorway. Permit No.: BLD2014-00570. 12/12/14. 3725 Irongate Road 109, $156,000 for tenant improvementL remodel to existing building for glass working business: Mothership Glass. Permit No.: BLD2014-00490. 12/12/14. Demolition permits No demolition permits were issued during this date range. 12/1/14 to 12/5/14 Issued permits 3821 Primrose Lane, $2,555,378 for new fourstory, 28-unit multifamily building. Contractor: Palakika2 LLC. Permit No.: BLD2014-00473. 12/2/14. Pending applications 2520 James St., $25,000 for commercial: enclose drive-thru area to create additional office space. Permit No.: BLD2014-00554. 12/3/14. 4341 Water Lily LP, $492,585 for new three-story multifamily building, Permit No.: BLD2014-00458. 12/3/14. 4335 Water Lily LP, $515,007 for new three-story multifamily building. Permit No.: BLD2014-00457. 12/3/14. 4345 Water Lily LP, $515,007 for new three-story multifamily building. BLD2014-00456. 12/3/14. 4349 Water Lily LP, $515,007 for new three-story multifamily building. BLD2014-00455. 12/3/14. 4343 Fuchsia Dr, $515,007 for new three-story multifamily building. BLD2014-00454. 12/3/14. 1112 11th St. 302, $10,000 for tenant improvement: alterations of non-bearing walls in office space to create new reception area. BLD201400555. 12/4/14. RK Western Washington University, $3,700,242 for commercial alteration: interior renovation of Ridgeway Kappa residence hall. BLD2014-00556. 12/4/14. 1730 N State St., $83,175 for commercial: roof over built up with new TPO membrane, replace plywood as needed. BLD2014-00559. 12/5/14. 714 Lakeway Drive, $69,000 for tenant improvement: convert specific existing rooms to ADA accessible rooms, and renovate existing fitness and office areas. No change in use. BLD2014-00557. 12/5/14. 3121 Squalicum Parkway, $1,300,000 for commercial: ten-unit, 3800-square-foot addition and interior renovation of an existing skilled nursing facility. Permit No.: BLD2014-00519. 12/5/14. 202 E Holly St., $30,000 for tenant improvement: interior modifications for new sushi restaurant: Jun Sushi and Bento. BLD2014-00445. 12/5/14. 600 Birchwood Ave., $35,000 for commercial: interior demolition to prepare for tenant improvement: remove wall partitions, floors, ceilings, flooring, plumbing fixtures, and casework. DEM201400600. 12/4/14. 11/24/14 to 11/28/14 Issued permits 2901 Squalicum Parkway, CN 2nd floor, $1,800,000 for commercial renovations to existing hospital for acute rehab unit (CN, 2nd floor); including a change from office to patient care: St. Joseph Hospital. Contractor: J E Dunn Construction Co. Permit No.: BLD2013-00566. 11/24/14. 3111 Newmarket St., 101, $17,000 for tenant improvement: rearrangement of interior walls of existing 2,134-square-foot suite. Contractor: Scoboria Construction, Inc. Permit No.: BLD2014-00535. 11/25/14. 4120 Bakerview Spur, $1,108,560 for commercial: new 12,000 square-foot dry cast building. Contractor: Ram Construction General Contractor Inc., Permit No.: BLD2014-00494. 11/26/14. Pending applications 203 E. Laurel St., $3,900,000 for new 60-unit multifamily building above parking garage. Contractor: Dawson Construction. Permit No.: BLD2014-00546. 11/24/14.

3000 Lindbergh Ave., $292,000 for commercial: remodel of classroom into chemistry lab. Permit No.: BLD2014-00449. 11/25/14. 3628 Meridian St., 2B, $175,000 for tenant improvement & addition to existing orthodontics clinic. Permit No.: BLD2014-00549. 11/25/14. 2901 Connelly Ave., B101, $150,000 for tenant improvement: remodel office and storage spaces on basement level for childcare center; includes new exterior accessible ramp and re-striped parking. Contractor: The Franklin Corporation. Permit No.: BLD2014-00516. 11/26/14. 750 Lakeway Drive, $35,000 for commercial: tire storage racking. Permit No.: BLD2014-00551. 11/26/14. 750 Lakeway Drive, $415,000 for tenant improvement: remodel of former video store for tire store. Permit No.: BLD2014-00550. 11/26/14. 925 N Forest St., $100,000 for tenant improvement: convert existing educational occupancy to 17 dorm room units with common shower rooms, laundry, kitchen area. Permit No.: BLD2014-00413. 11/26/14. Demolition permits 4120 Bakerview Spur, no estimated valuation given for demolition of existing 5,000 square foot building. Contractor: Ram Construction General Contracting Inc., Permit NO.: DEM2014-00053. 11/26/14. 11/17/14 to 11/21/14 Issued permits 212 N Samish Way, [no estimated value] for commercial: methamphetamine contamination remediation: remove/replace sheetrock and insulation in rooms 4, 5, 7, 25, 36, 40 and 42. Contractor: RotoRooter Plumbing Service, Permit No.: BLD2014-00539. 11/18/14. 1220 N State St., $10,000 for tenant improvement: create new opening between 1212 & 1220 N State St. to expand existing restaurant/bar; new restroom on mezzanine level. Contractor: Vintage Builders/ Whatcom County Inc. Permit No.: BLD2014-00534. 11/18/14. 4201 Meridian St. 107, $200,000 for tenant improvement: indoor trampoline park: Trampoline Zone Bellingham. Permit No.: BLD2014-00530. 11/21/14. Pending applications 104 W. Magnolia St., $2,200,000 for tenant improvement: renovation of first floor offices, basement improvements, and system upgrades to the Federal Building EF-0110. Permit No.: BLD201400485. 11/17/14. 224 36th St., $85,000 for tenant improvement: interior remodel for dental office: Gentle Dental. Permit No.: BLD2014-00541. 11/18/14. 1400 Kentucky St., $175,000 for tenant improvement: construct new second floor; improvements for urban agriculture. Permit No.: BLD2014-00540. 11/18/14. 1301 W. Bakerview Road 103, $30,000 for tenant improvement: new hair salon in an existing space previously a hair salon: Sports Clips. Permit No.: BLD2014-00542. 11/19/14. 4051 Meridian St., $80,000 for commercial: swimming pool and spa installation in hotel. Contractor: Rockard Custom Pools LLC. Permit No.: BLD2014-00532. 11/19/14. 4120 Bakerview Spur, $1,108,560 for commercial: new 12,000 square foot dry cast building. Contractor: Ram Construction General Contractor. Permit No.: BLD2014-00494. 11/19/14. 4355 Fuschia Drive, $385,816 for construction of community building for future multifamily building, includes site improvements for phase 1. Permit No.: BLD2014-00433. 11/19/14. 1905 N State St., $146,992 for commercial: 2592 square foot 1-story pre-engineered steel addition for auto parts storage. Permit No.: BLD2014-00543. 11/20/14. 1100 Lakeway Drive, $15,000 for commercial: provide new walk-up ATM & millwork enclosure. BLD2014-00544. 11/21/14. 600 Birchwood Ave., $35,000 for commercial: interior demolition to prepare for tenant improvement: remove wall partitions, doors, ceilings, floorings, plumbing fixtures, and casework. Permit No.: DEM2014-00060. 11/20/14.

LIQUOR AND MARIJUANA LICENSES Records include license activity in Whatcom County. They are obtained from the Washington State Liquor Control Board, online at www.liq.wa.gov.

January 2015 12/2/14 to 12/19/14 New license applications Kombucha Town, John C. McCoy, applied for a change of location to a license to operate as a microbrewery and do Farmers Market beer sales. Location changing from 1155 N State St., Suite 603, to 210 E Chestnut St., Bellingham, WA 98225. License No.: 408885. 12/15/14. Cascadia Distilling, Daniel N. Greenburg, applied for a new license to operate a craft distillery at 1600 Kentucky St., Suite C2, Bellingham, WA. License No.: 418684. 12/15/14. The Rustic Coffee Bar, Rustic Coffee Company, Denise C. Whitman and Scott H. Whitman applied for a new license to operate as a direct shipment receiver, and sell beer/wine in a restaurant and off premises at 1319 11th St., Bellingham, WA 98225. License No.: 408514. 12/12/14. Osaka Japanese Restaurant, Adam R. and Steve S. Kim applied for an addition/change of class/in lieu to a license to serve beer/wine in a restaurant and off premises at 3207 Northwest Ave., Bellingham, WA 98225. License No.: 083471. 12/11/14. Crazy Bob’s Pizza, Bhupinder Kumar and Mamta Kumari applied for a new license to operate as a direct shipment receiver and serve beer/wine in a restaurant at 4151 Meridian St., Suite 106, Bellingham, WA 98226. License No.: 074567. 12/9/14. Recently approved licenses The Real McCoy Home Bar & Kitchen, at 114 Prospect St, Bellingham, WA 98225, received approval on an addition/change of class/in lieu to a license to operate as a direct shipment receiver. License No.: 366515. 12/12/14. Perfectly Paired, at 1200 Old Fairhaven Parkway #101, Bellingham, WA 98225, received approval on a change of privilege to a license to serve beer/wine in a restaurant. License No.: 402048. 12/10/14. Safeway Store, at 1275 E. Sunset Drive, Bellingham, WA 98226, received approval on a new application to operate as a direct shipment receiver. License No.: 075092. 12/3/14. Recently discontinued licenses The Black Cat, at 1200 Harris Ave., Suite 103, Bellingham, WA, 98225, had a license to sell spirits/ beer/wine in a restaurant and lounge discontinued. License No.: 361140. 12/17/14. Extreme Sports Grill, at 1304 12th St., Bellingham, WA 98225, had a license to sell spirits/beer/wine in a restaurant lounge discontinued. License No.: 359135. 12/4/14. 11/18/14 to 12/2/14 New license applications The Real McCoy Home Bar & Kitchen, B Wicklund Inc; Brandon Wicklund, applied for an addition/ change of class/in lieu to a license to operate as a direct shipment receiver; sell spirits/beer/wine; sell wine off premises at 114 Prospect St., Bellingham, WA 98225. License No.: 366515. 11/26/14. Safeway Growler Store, Safeway Inc; Robert Lynn Edwards, Gregg Alan Maxwell, Robert A. Gordon, Donald Ray Johnson and Bradley Fox, applied for a new beer/wine specialty shop license at 1275 E. Sunset Drive, Suite B, Bellingham, WA 98226. License No.: 418853. 11/25/14. Taste of India, Gandham Enterprizes LLC; Davinder & Kewal Gandham, applied for a new license to serve spirits/beer/wine in a restaurant and service bar at 3930 Meridian St. Suite 107, Bellingham, WA 98226. License No.: 072758. 11/20/14. Recently approved licenses Stone Mountain, at 916 Kentucky St., Bellingham, WA 98225, received approval on a change of corporate officer to a license to operate as a tier 1 marijuana producer. License No.: 414200. 11/26/14. Green Liberty, at 5373 Guide Meridian, Suite F5, Bellingham, WA 98226, received approval on a new application to operate as a tier 2 marijuana producer. License No.: 412964. 11/24/14. Stone Mountain, at 916 Kentucky St., Bellingham, WA 98225, received approval on a change of corporate officer to a license to operate as a tier 1 marijuana producer. License No.: 414200. 11/24/14. Dylan’s Shipping Station, at 423 Tyee Dr., Point Roberts, WA 98281, received approval on an in lieu/ change of privilege to a license to operate as a beer/ wine specialty shop. License No.: 070662. 11/18/14. Soy House Restaurant, at 400 W. Holly St., Bellingham, WA 98225, received approval on an addition to a license to sell spirits/beer/wine in a restaurant and lounge. License No.: 369850. 11/18/14. Discontinued licenses No licenses were discontinued during this period.

BANKRUPTCIES

Whatcom County business bankruptcies filed in the U.S. Bankruptcy Court, Western District of Washington. Chapter 7 Corewerks Inc DBA Propriotek Inc, Assets: $0 to $50,000; Liabilities: $500,001 to $1 million; case no.: 14-18885-KAO date filed: 12/10/14. Chapter 9 and 11 No chapter 9 or 11 bankruptcies were filed in the last month.

FEDERAL TAX LIENS

Tax liens of $5,000 or more issued by the Internal Revenue Service. Listings include taxpayer name(s), lien amount, document number and filing date. Records are obtained locally from the Whatcom County Auditor’s Office. Samish Way Enterprises LLC, $9,613.08, 2141202110, 11/24/14. Edward Glaser, $43,313.05, 2141200884, 12/8/14. Diane Laster, $17,511.90, 2141200885, 12/8/14. Diller Construction Enterprises Inc., $21,768.51, 2141200886, 12/8/14. David Frear & Tracy Hansen, $322,587.48, 2141200891, 12/8/14. Laurel Tarasenko, $9,927.01,2141200892, 12/8/14. Parkway Chevron LLC, $15,375.21, 2141200893, 12/8/14. Pegasus Corporation, $15,707.96, 2141201550, 12/15/14. DNA Contractors Inc., $11,236.86, 2141201551, 12/15/14. Scott Schenk, $72,379.22, 2141201552, 12/15/14.

RELEASE OF FEDERAL TAX LIENS

Sturtz David, $14,680, 2141200095, 11/17/14. Catherine Kenworthy, $8,654.77, 2141200096, 12/1/14. Shane & Angela C Lewis, 42,925.78, 2141200097, 12/1/14. Reference Media Inc., $23,012.69, 2141201553, 12/15/14. Gregory Mumford, $7,582.39, 2141201554, 12/15/14. Augustus Contracting Inc., $15,152.07, 214120155, 12/15/14. HB Hansen Construction Inc., $28,088.01, 2141201556, 12/15/14. HB Hansen Construction Inc., $30,394.30, 2141201557, 12/15/14. Edward Devaney, $11,145.71, 2141201558, 12/15/14.

STATE TAX JUDGMENTS

Tax judgments of $5, 000 or more issued by Washington state government agencies and filed locally in Whatcom County Superior Court. Listings include taxpayer name(s), judgment amount, the state agency filing the judgment, originating case number and filing date. Judgments can later be lifted or paid; listings are only current as of their filing dates. Records are obtained from the Whatcom County Superior Court Clerk’s Office. Big Brothers, Big Sisters, $32,446.83, Employment Security Department, 14-2-02674-5. 12/15/14. Terry Bell, $26,367.13, Labor & Industries, 14-202475-1, 12/9/14. Pickard & Sons Plumbing LLC, $8,837.26, Department of Revenue, 14-2-02622-2, 12/4/14. Claassen Enterprices LLC, $8,416.11, Department of Revenue, 14-2-02620-6, 12/4/14. Mathers Enterprises, $7,254.02, Labor and Industries, 14-2-02601-0, 12/2/14. Copper Hog LLC, $7,184.65, Labor and Industries, 14-2-02605-2, 12/2/14. Kesslau Construction, $7,239.02, Labor and Industries, 14-2-02548-0, 11/20/14

January 2015

HOTELS, FROM 5 more people to Bellingham. In the past, she said the number of hotel rooms limited tourism efforts in Bellingham. “When someone decides the days they are going to come to Bellingham and they can’t get a room during those days, that’s hospitality death,” she said. “Getting them to come back will be 10 times harder than consummating that deal when they were first ready to purchase.” Rahm is working with a variety of groups who host events in town to attract more tourists. She sees promise in things like Bellingham Beer Week, a celebration of Bellingham’s local beer, she said. Because of high occupancy rates, the City of Bellingham has collected more lodging tax—which tourists pay as part of stays at hotels and motels in the city—than projected in the last few years. So for next year, the city is offering $75,000 to help fund a new signature event. One stated goal for the event is to fill hotel rooms during the tourism off-season from September to March. Bellingham Whatcom County Tourism is working with the city on the event. “What we’re trying to do is develop something new that will ultimately be synonymous with Bellingham, as is Ski to Sea,” Rahm said. “As a bonus it would be nice if it filled a lot of hotel rooms because we’ve got the inventory.” Rahm expects tourism to grow as new hotels open up she said. Bellingham Whatcom County Tourism is predicting that the amount of lodging tax collected in the city will grow by 7 percent next year.

The Bellingham Business Journal Rahm calls that prediction extremely conservative. “I think as the momentum builds I’m going to be ridiculed for how low I’m projecting our increases,” she said. Though Rahm sees the explosion of new hotel rooms as an opportunity, realizing the opportunity will take work, she said. “We have to sell an experience, not a bed,” she said. “The experience takes place outside the hotel just as much as it does inside the hotel room.” Renovations To stay competitive in the booming hotel industry, Nephew, the general manager of Hampton Inn, is looking into renovating his 23-year-old property in the next three to five years, he said. Best Western Lakeway Inn, at 714 Lakeway Drive, is finishing a renovation project that general manager Larry MacDonald said cost nearly $6 million. “Nothing is staying the same. It will be a brand new hotel,” he said. The remodel includes renovations to the ballroom, meeting space, and lobby, a coffee shop with four 65-inch televisions, new work areas with tables, improvements to the hotel’s safety system and a redesigned fitness center. All 132 rooms were remodeled with new beds, furniture and bathrooms, MacDonald said. Chinuk, a new restaurant serving local and seasonal food, will open early next year inside the hotel. The remodel should be finished in May, MacDonald said. “Staying competitive is the whole reason we’re doing it,” he said. “It’s been a pretty small market, but now there are many choices.” Hotels by the numbers

The first hotels of the current boom to open were Marriot SpringHill Suites and La Quinta, which opened in October and December 2013, respectively. Marriot SpringHill Suites, at 4040 Northwest Ave., has 122 rooms, a swimming pool, hot tub, fitness center and shuttle service to the Bellingham airport. La Quinta, a block away at 1063 W. Bakerview Road, has 81 rooms that general manager Tina Strode said attract a mix of corporate and leisure travelers. Strode expects demand for rooms to grow, she said. “I think in the summer there’s strong demand. There’s going to be good opportunity for all of us,” she said. “It really depends on how the industry grows in Bellingham. If it keeps going how it is I wouldn’t worry too much.” Marriot TownePlace Suites and Hilton Home2 Suites are both scheduled to open mid-February. TownePlace Suites, at 4040 Northwest Ave., will have 83 rooms. It’s connected to Marriot SpringHill Suites and will have much of the same amenities. The TownePlace Suites is designed for long-term stays, and has rooms with full kitchens. Hilton Home2 Suites is going up across the street from the Marriots at 805 Home Lane. The four-story, 106-room project is Hilton’s brand of extended-stay hotel, and rooms will have full kitchens. General manager Sara Holliday said the hotel will cater to business and leisure travelers. One reason that some of the new hotels in Bellingham are extended-stay hotels is the refineries at Cherry Point, which hire long-term temporary workers, Holliday said. The Oxford Suites hotel, next to Bellis

Fair Mall at 4051 Meridian St., will open next summer, said Roz Stelk, marketing director for the Oxford Hotel Group. The six-story, 99-room facility will feature an indoor pool, spa, sauna, steam room, and exercise facility, Stelk said. The hotel will also have nearly 2,000-square-feet of meeting space. The largest of the new hotel projects, the Holiday Inn next to the airport, should open in 2016, said Lennart Bentsen, president of Hotel Services Group LLC of Mount Vernon, the project’s developer. The Holiday Inn will be on land owned by the Port of Bellingham. Contractors should break ground on the 150-room project in spring 2015, Bentsen said. Construction was originally supposed to start in May 2014, but financing, permitting, and weather delays pushed the project back, Bentsen said. Outside of Bellingham, the Silver Reef Casino in Ferndale will break ground in March for a 100-room addition to their hotel, which previously had about a 90 percent occupancy rate, general manager Aaron Thomas said. After the addition, the Silver Reef Casino will have 205 rooms. Thomas said most visitors to Silver Reef come for gambling, but the hotel does fill up during Western Washington University’s graduation weekend, and during sports tournaments.

Oliver Lazenby, associate editor of The Bellingham Business Journal, can be reached at 360-647-8805, Ext. 5052, or olazenby@bbjtoday.com.

1205191

The Bellingham Business Journal

January 2015

Sponsored content by BIAWC

January 2015

Permits, fees take a bite out of home prices

By Linda Twitchell, BIAWC Government Affairs Director “Affordable” housing has been a big topic in Bellingham in recent years. The term is used two ways – when government says “affordable housing,” the term is used as a synonym for low-income or subsidized housing. In 2012, Bellingham City Council declared an emergency regarding lack of affordable housing. That fall, voters approved the Bellingham Home Fund levy. They are now paying roughly $3 million a year into that fund, to support subsidized and low-income housing projects. The housing industry and most homebuyers, however, use the term “affordable” to mean something entirely different. When we say “affordable housing,” we’re talking about homes that are affordable. Literally, housing the average family can afford. Housing that supports the local economy by helping attract desirable businesses to this area. Housing here, as anyone in the market for a home can attest, is not cheap. There’s a scarcity of land in Bellingham, which has driven up lot prices. Fees and permits add a sizeable chunk to the cost of building a home. National Home Builders Association research on the costs of housing shows that new single-family homes built in a typical metro area have an average price of $321,000 – which is the price of a starter home in Bellingham. NAHB research shows the average value of the raw land in a metro area is $40,000 – typical lots in Bellingham sell for $100,000 or more. NAHB also shows the builder and developer in a metro area will pay an average of $7,915 in impact, permit, and other fees to local governments – in Bellingham, these run $22,000$30,000, or more. Fees and permits can represent 10 percent of what you pay for a $320,000 home. This is just for permission to build – the costs required before a single nail goes in. To illustrate what these fees involve, let’s look at a 1,590 square foot singlefamily home being built by Everkept Construction in the Larrabee Springs development, in northern Bellingham. These figures are real. The house, on Grady Way, is a singlestory rambler with three bedrooms

biawc.com

Project Fee Sheet

City of Bellingham - Building Services Division Planning & Community Development Department City Hall - 210 Lottie Street - Bellingham, WA 98225 Phone: (360) 778-8300 Fax: (360) 778-8301 E-MAIL: permits@cob.org

*4-PRJ2014-01174* *4-PRJ2014-01174*

Fees Associated with Project #: PRJ2014-01174 Case No.

Fee Description

 CMB2014-00313

336 GRADY WAY

 PBW2014-00968

336 GRADY WAY

 STM2014-00479

336 GRADY WAY

PLAN CHCK DEPOSIT-CMB FIRE PLAN REVIEW FEE CR PLAN CHCK DEPOSIT-CMB PERMIT FEE-CMB ACTL PLAN CHCK -CMB PERMIT FEE-CMB - PLM PERMIT FEE-CMB - MEC STATE BLDG CODE FEE-CMB ACTL PLAN CHCK -CMB-PLA MNAL PARK IMPACT FEE

WTR/SWR PERMIT FEE 5/8" METER ONLY DMND-5/8" WTR-CITY DMND-RES SEWER - CITY TRANSPORTATION IMPACT FEE

STORM WATER PERMIT-STM SURFACE/STORM WATER FEE

Create Date 11/26/14 11/26/14 12/5/14 12/5/14 12/5/14 12/5/14 12/5/14 12/5/14 12/5/14 12/5/14

Created Trans. By Code KSB KSB KPD KPD KPD KPD KPD KPD RJN RJN

1924 1924 1924 1912 1924 1916 1918 1910 1924 3582

Revenue Account No. 475-3541000458300 475-3541000458300 475-3541000458300 475-3541000458300 475-3541000458300 475-3541000458300 475-3541000458300 475-3541000458300 475-3541000458300 475-3541000458300

12/2/14 12/2/14 12/2/14 12/2/14 12/2/14

HKH HKH HKH HKH HKH

1944 1952 1958 1954 1941

111-3661000221400 111-3661000221400 111-3661000221400 111-3661000221400 111-3661000221400

12/2/14 12/2/14

HKH HKH

1945 430-3636311229000 1962 430-3636311229000

Sub-total

Sub-total Proj Total

Bellingham City Council plans discussion early in 2015 of its Impact Fee program. Some Council members believe the fees on home construction should be higher. The building industry is concerned that fees and permits already cost far too much, and create a barrier to affordable housing. If the cost of fees for housing concerns you, call the City Council Office to learn when this discussion will take place. 12/5/2014 4:21:06PM

and two baths. It pre-sold before construction, for just shy of $320,000. The lot is 55 by 85 feet. Fees associated with this project total almost $23,000. In addition to the $21,928 in costs on the city’s Project Fee Sheet, the developer – and therefore homebuyer – is paying a $850 school impact fee to the Meridian District. (The Bellingham School District charges a $1,854 impact fee to build a singlefamily home.) For this house, fee and permit costs total $22,777.86. The highest fees are: • $7,637 residential sewer service charge (the cost of connecting to the sewer system). • $3,956 for water service system development charges (the cost of connecting to the city’s water sys-

Fee Amount

Amount Due

747.90 30.00 -747.90 1,150.61 747.90 109.00 225.00 4.50 53.50 4,808.35

0.00 0.00 -747.90 1,150.61 747.90 109.00 225.00 4.50 53.50 4,808.35

7,128.86

6,350.96

50.00 255.00 3,956.00 7,637.00 1,907.00

13,805.00

316.00 678.00

21,927.86

21,149.96

994.00

tem). • $1,150 for a permit to proceed with building plans. • $748 for the Plan Check – another combination fee, which pays city 1 of 1staff to consider the building, plumbing and mechanical plans. • $678 for a stormwater fee. “Impact fees” charged to this project: • $4,808 for the city’s Park Impact Fee. • $1,907 for the Transportation Impact Fee – which is additional and separate from the cost of building or improving roads required in and sometimes around the development. • Plus – not mentioned on the city’s Fee Sheet – an $850 School Impact Fee. This is levied by and paid to the school district involved, not city government. Bellingham City Council plans a discussion early in 2015 of its Impact Fee program, which some Council members believe should be charging more to cover the city’s transportation costs (public works projects that range from street safety improvements to bike lanes to pedestrian safety improvements). The BIAWC is concerned that fees and permits already cost too much, and are a factor raising home prices in a market where 54 percent of the residents already rent, and businesses like Faithlife (formerly Logos Software) say their new employees cannot afford to buy. Prj Fee Sheet v. 4/2010

1650 Baker Creek Place, Bellingham, WA 98226

Local governments are allowed by state law to charge impact fees for transportation, parks and schools. But the law clearly states these charges are to be imposed only for improvements reasonably related to the new developments they affect. And these aren’t a project’s only transportation or parkland expenses. Impact fees are charged in addition to the cost

of open space (future parkland or trails), streets and utilities that developers/homebuyers have to provide when building a house. Most streets in Bellingham are built and paid for by developers, not the city. Their cost is passed on to the homebuyer, based on the assumption that “newcomers” who buy houses need to pull their weight. Bellingham once depended on levies, approved by voters, to create that kind of infrastructure. But the levy system was replaced years ago by Impact Fees, which are now charged to all new developments. The fees are the same whether a house is big or small. City staff recently argued that fees are higher in the Seattle area, implying that the difference justifies higher fees here. But that’s one reason people choose a place like Bellingham over a big city. We’d suggest the “quality of life” Bellingham residents are so proud of shouldn’t have to include big-city fees. But it does need to include market-rate affordable housing. As the city updates its Comp Plan and looks at its fee structures in the coming year, BIAWC urges all residents to get involved. Let the Council know where you stand. If you think prices have gone high enough, tell them about it. Speak up for policies that will ensure everyone a better chance to own their own piece of the American Dream. We need lower fees and permit costs, and more buildable land, if we’re going to offer affordable housing here.

360-671-4247

January 2015

The Bellingham Business Journal

Business Toolkit

More changes on the way for Facebook marketers Pages that post promotional content will see their distribution fall significantly The classical Greek philosopher Socrates had a great quote about change: “The secret to change is to focus all of your energy, not on fighting the old, but on building the new.” Now that we’re all inspired and open to the idea of letting go of the past and focusing energies on today and the future, let’s talk about Facebook marketing in 2015 because it’s about to change again. If a business mainly posts promotional info like “Stop in today to buy our pink widget” or “All pink widgets are on sale today” or “Look at this photo of our pink widget,” they need to change the type of content being shared or invest in paid advertising on Facebook. If this important change is not made, Facebook is going to start hiding those posts from timelines. Here is an important statement directly from Facebook about how they are soon planning to handle all those promotional posts small businesses have been sending out: “Beginning in January 2015, people will see less of this type of content in their News Feeds. As we’ve said before, News Feed is already a competitive place – as more people and pages are posting content, competition

to appear in News Feed has increased. All of this means that pages that post promotional creative should expect their organic distribution to fall significantly over time.” This change will not increase the number of ads people see in their News Feeds. The idea is to increase the relevance and quality of the overall stories – Patti including page posts – people Rowlson see in their News Feeds. This change is about giving people the best Facebook experience On Social possible and being responsive to Media & what they have told us. Marketing While pages that post a lot of the content we mention above will see a significant decrease in distribution, the majority of pages will not be impacted by this change.” Companies across the nation are still reeling from the way Facebook marketing has evolved in the past year. Some have adjusted to the idea that Facebook is no longer free – they’ve embraced promoted posts and learned how to create paid ads so they can continue effectively tapping into the network of page followers they have built. Others have been stuck reminiscing about the way Facebook used to be. They continue trying to make it work like

it used to – posting the same type of content, seeing fewer results, but not changing anything. As stated in the quote above, it’s important to let go of the old and build on the new. Companies that want to continue using Facebook as a marketing tool in the future should budget for Facebook ads as a monthly marketing expense. They should educate themselves on Facebook’s current rules for promoting products and services or they should seek help from a social media pro. As Facebook advertising becomes more monetized there is more at stake now than in the past. In most cases the days of having a relative, friend or intern manage a business Facebook page are gone unless those people have access to specific information and ample time for on-going continuing education. The Wall Street Journal recently published an article titled, “New Facebook Rules Will Sting Entrepreneurs,” highlighting businesses that use Facebook as their main marketing tool and how they are making their strategies more effective. I highly encourage small business owners and marketers to check it out.

Patti Rowlson is a marketing consultant and social media manager at PR Consulting, Inc. Learn more about small-business marketing by visiting www. pattirowlson.com.

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The Bellingham Business Journal

January 2015

Bellingham / Whatcom Chamber of Commerce & Industry : Representing Businesses Across Whatcom County

Spring Business Showcase brings consumers and businesses together By Alex Peterson Get a massage. Drink a beer. Pet a camel. Eat some canapés. Buy a dress. Chat with a landscaper, a banker, an insurance agent, and a florist. Schedule a facial. Hire a maid. You can do all that and more at the Spring Business Showcase! The Spring Business Showcase is the Bellingham/Whatcom Chamber of Commerce & Industry’s annual business-to-consumer tradeshow designed to introduce consumers to local companies while creating awareness of local goods and services. “The Spring Business Showcase is sponsored by Silver Reef Hotel Casino Spa and is a great place to become familiar with the variety of products and services Whatcom County businesses provide,” Chamber President/CEO Guy Occhiogrosso said. “Showcase provides

Artist demonstrated the technique that is taught in the Uptown Art Studio classes.

Massage therapists from Massage Envy Spa give free 10-minute chair massages at the 2014 Spring Business Showcase.

Thursday, March 19 4:00—9:00 pm Events Center at Silver Reef Presented by:

an opportunity where the general public can meet local businesses directly and really get to know the people they are buying from.” This year’s Spring Business Showcase will be held from 4-9 p.m. Thursday, March 19, at the Event Center at Silver Reef, and includes free parking and free admission tickets. Vendors can register for a booth by contacting the Chamber at 360-734-1330 or at bellingham.com. Hundreds of consumers attend the Spring Business Showcase every year. Attendees can enjoy tasty samples from restaurants, breweries and wineries, pick up helpful promotional items, participate in a variety of contests, and meet dozens of businesses face-to-face. “I was impressed at the diversity of vendors and spread of snacks,” Chris Baisch of Barron Heating and Plumbing said after attending the 2014 tradeshow. Adult attendees can pay a fee for a sampling glass to try a variety of beer and wine from local breweries and wineries, and food vendors will serve up samples from their menu to give the public a taste of what their restaurants have to offer. The Showcase can help businesses reach potential customers who aren’t familiar with their company and its services. “We had a lot of people walk by that had never heard of Maurice’s and are really excited

Maurice’s women’s clothing display at the 2014 Spring Business Showcase. to know we are here,” Justin Wilson of Maurice’s said following the 2014 Showcase. Some companies also provide product demonstrations, like Massage Envy Spa’s complimentary 10-minute massages and Uptown Art Studio’s painting demos at the 2014 Spring Business Showcase. Camel Safari even brought Victoria the camel to meet patrons and introduce attendees to the Camel Safari farm and camel tours. Others businesses bring prize wheels, or have consumers play carnival-style games to win a prizes. Either way, attendees never leave empty-handed. Some businesses use Showcase as a launching pad to intrigue consumers with a new product or service. Last year, Bellingham Explorer launched its new website at Showcase. Business leaders also enjoy the oppor-

tunity to meet with other business professionals and network at the event. With more than 70 vendor booths, there are plenty of chances to make new connections. The venue also drew high praise at last year’s Showcase. The Events Center at Silver Reef was “comfortable and convenient,” a representative from Samson Estates Winery said. Vendor booths are available for a variety of budgets, giving more businesses the opportunity to show off their products and services. And vendors will get some extra publicity - Tracy Ellis of KGMI 790AM will be broadcasting live from the tradeshow. With all the exciting offerings of local businesses and the opportunity to meet new consumers faceto-face, no one will want to miss the 2015 Spring Business Showcase.

January 2015

The Bellingham Business Journal

What control will you give up to gain employee leadership? It must be very complex, leadership that is. It must be or why would Amazon currently carry nearly 382,000 titles containing the word leadership? A quick Google query on the word “leadership” gives a response of over 143,000,000 entries. I smell a rat and I have smelled a rat for several years now. Maybe we should be looking at the conditions that allow leadership to emerge. Maybe leadership is naturally occurring and we hold it back, either consciously or unconsciously in our organizations. In practice I have had occasion to have more than one senior leader say he or she was interested in seeing more leadership from the people in their organization. A typical response from me might be to ask, “Are you sure that’s what you want?” A provocative question like this better have a good follow up. If I am on my game this exchange can have the desired effect of creating a “teachable moment,” or at least one where I have an opportunity to think I am offering something infinitely wise. Charging into the awkward silence I might say, “I bet you have been taking responsibility for all of the critical decisions - and thus the critical thinking behind them. Your people feel alienated, with no sense of ownership, and you wonder why you can’t get them more engaged.” This exchange often has led to a visible shrug of recognition and a sheepish question

from the potential client, “It sounds like you are saying I am the problem?” So here the “teachable moment” presents itself. My response to the potential client will be, “First, Mike you are not the problem but you Cook are certainly part of the problem On and if you are Managers & willing to at least be part of the Employees solution we can make some progress.” It is occasions like these that are also moments of truth for those of us who fancy ourselves organizational catalysts. The conversations that follow determine whether this potential client becomes a client or we walk out the door hat in hand. From here the exchange might go something like this, “ To begin with when you have been saying you wanted more leadership I suspect that what you meant was more do-a-I-want-you-to-ship.” This is always hard because invariably this assertion produces a flash of recognition

coupled with awkward silence and the tension of embarrassment. But it passes fairly quickly! I then ask the by now fully engaged executive or manager another question, “What are you willing to give up?” This question inevitably leads to a conversation where the potential client sees their role in the problem they’ve described — a shortage of leadership. And I continue: “Accountability, the precondition for leadership, is a choice you can offer not a sentence you can hand down. If what you truly want is leadership then you need to be prepared to give up something and generally the give up you are least likely to want to give is the final say in at least some aspect of running the business. So where is leadership most missing in your business and how are you controlling the situation? This statement often brings up an authentic, “ I am not really comfortable with this!” My rejoinder to that might echo the words of Sue Tupling, founder of international PR and marketing firm Changeworks, “Feeling uncomfortable? So you should!” Tupling said exactly that when she described the emotional hurdles many senior leaders face when they first begin to confront the need to let go in order to get what they want. Personally, I have seen leaders knowingly choose control over business results

or staff development on more than one occasion, especially when they knew they could make their numbers without letting go. So when we get to this stage the conversation invariably turns solemn, like something bad is about to happen. Thankfully, at least on some occasions something really productive happens and the executive or manager sees that not letting go is going to constrain them to live with results similar to those they have already achieved. They begin to see that giving up control is the price of admission into a new realm of possibility. But the potential client does not always see the light and on those occasions the question might become, “If you can make your numbers without letting go what are you whining about? Unless of course your intuition is telling you there is something more to be had than just making the numbers. Or maybe you simply want someone to blame if things don’t work out?” Shortly after this I usually leave their office… with my hat! I am obviously needed elsewhere.

Mike Cook lives in Anacortes. His columns appear on BBJToday.com every other Tuesday. He publishes a semiweekly blog at www.heartofengagement.com and also facilitates a monthly business book reading group at Village Books.

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The Bellingham Business Journal

January 2015