Bellingham Business Journal, July 06, 2015 by Sound Publishing

Vol. 23 No. 7

July 2015 Pedal-powered party bus connects tourists to breweries [Page 14]

The Buzz WWU president to retire in 2016 President Bruce Shepard, who guided the university through the recession, says farewell. SHEPARD, 3

Downtown Bellingham Partnership hatches a plan for filling downtown vacancies The partnership’s new director, Nick Hartrich, is preparing a space for start-up entrepreneurs. HATCH, 10

A train rolls south through Boulevard Park. An increase in trains hauling coal to the proposed export terminal at Cherry Point could slow Whatcom County’s economy if it restricts access to natural amenities and harm’s Bellingham’s reputation as an outdoor recreation destination, according to a recent study. OLIVER LAZENBY PHOTO | THE BELLINGHAM BUSINESS JOURNAL

Could GPT export terminal be a net negative for economy? Study questions potential impacts to recreation economy and access to natural amenities BY OLIVER LAZENBY The Bellingham Business Journal The proposed Gateway Pacific Terminal would add hundreds of jobs to the county, but will it hurt some industries? And could it already be slowing the local economy and affecting real estate prices along the railway? A recent study on the proposed terminal

raises those questions. The study, by the PFM Group of Philadelphia, focused on trains and how the local economy would be affected by an increase in coal trains rolling through Whatcom County to Cherry Point, the proposed site a terminal that would export up to 54 million tons of coal and other dry bulk goods. CommunityWise Bellingham paid

Marine industry expands on Fairhaven waterfront The Port of Bellingham last month took steps toward allowing All American Marine and Fairhaven Shipyard to expand. WATERFRONT, 16

$48,000 to have PFM perform the study. This is the third study commissioned by the nonprofit, which formed four years ago to research impacts of the proposed export facility other than those that will be included in

Export, PAGE 9

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July 2015

Contents

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The Doc Maynard, a 250 passenger ferry, under construction at All American Marine’s warehouse in Fairhaven.

Larry W. Evans

OLIVER LAZENBY | THE BBJ

Branch Manager 360-738-2376

[16] Waterfront expansion

NMLSR ID 856141

All American Marine can’t build bigger boats without a bigger warehouse. The Port of Bellingham facilitated a deal that will allow the company to expand in Fairhaven.

Connect with us On Twitter @BBJToday

Anndi D. Pena

Home Mortgage Consultant 360-738-2363

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Ross Schram von Haupt

Home Mortgage Consultant 360-746-4050

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On Facebook facebook.com/ BBJToday

Ryan D. Martin Home Mortgage Consultant 360-293-1160

[8] Bellinghamwins

On Google+ Bellingham Business Journal

Why did Faithlife CEO Bob Pritchett start a website to show off Bellingham? Partly for fun and partly for recruiting talent.

NMLSR ID 404824

[14] Pedal Party NW A couple nearing retirement bought a pedal-powered bus and started offering tours of Bellingham’s breweries.

[6] Housing market is hot Barry Weafer

Home Mortgage Consultant 360-647-0897

Brandon C. Mankle

Reah Marie Dewell

NMLSR ID 634610

NMLSR ID 156730

Home Mortgage Consultant NMLSR ID 420701 360-738-2362

High rent makes ownership appealing for first-time home buyers, but that could change as abundant apartment projects in the pipeline get built. [3] People On The Move [5] Business Briefs [7] Market Indicators

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[18] Public Records [22] Business Toolkit

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.

July 2015

BUSINESS BRIEFS State average annual wage grew by biggest percentage since 2007 last year It may not be growing as fast as home prices, but Washington’s annual average wage grew by 4.2 percent in 2014 — the biggest percentage change since 2007, according to the state Employment Security Department. The state’s annual average wage increased to $54,829, and the average weekly wage went from $1,012 in 2013 to $1,054 in 2014. Those figures include only wages for workers covered by unemployment insurance — workers employed by firms that employ eight or more people at least 20 weeks a year. The average number of workers covered by unemployment insurance grew last year by 62,942 to 2.9 million. Industries with the largest average wage growth last year were the information sector, up 10.3 percent; arts, entertainment and recreation, up 6.5 percent; and retail trade, up 4.3 percent. Total earnings grew slower than wages, which could mean income inequality is increasing. Total earnings in the state grew by $9.7 billion in 2014 to $161.5 trillion, a 6.4 percent increase.

Bellingham foreclosure rate still trending down Foreclosure and delinquency rates in Bellingham were still dropping as of April 2015, according to new data from CoreLogic, a firm that collects and analyzes real estate data. The rate of Bellingham-area foreclosures among outstanding mortgage loans was 0.70 percent for April 2015, a decrease of 0.34 percentage points compared with April 2014 when the rate was 1.04 percent. The rate for March 2015 was 0.72 percent. April foreclosure activity in

The Bellingham Business Journal

Bellingham was lower than the national foreclosure rate, which was 1.33 percent, according to the data.

Jack’s Bicycle Center reopens after remodel Jack’s Bicycle Center, at 1907 Iowa St., hosted a grand reopening party on Saturday, June 27, after completing a remodel. The bike shop demolished some walls to expand its retail space, and created a new service area, according to a building permit issued last spring. Jack’s Bicycle Center was founded in 1969 by Jack Devries and is now operated by his children, Kent Devries and Rhonda Van Nus.

Samson named vendor of year by national company A national rope supplier honored Samson, Ferndale rope manufacturers, as its 2015 vendor of the year. SherillTree, of Greensboro, North Carolina, gave the award to Samson at its vendors summit. “Samson has been a SherrillTree vendor since the very first catalog was distributed,” said Christine Ricks, SherrillTree purchasing manager, in a press release. “In addition to extremely high quality products, Samson is very easy to work with.”

Master Auto Tech moved to bigger building near airport Master Auto Tech moved to a larger location at 3709 Bennett Drive, near the Bellingham International Airport. The new building is about twice as big as the old space on West Horton Road, co-owner Becki Taylor said, and it allows the company to service domestic as well as foreign vehicles. Previously, the company concentrated on foreign cars. The move should appeal to

WWU president to retire in 2016 BY OLIVER LAZENBY The Bellingham Business Journal Western Washington University President Bruce Shepard will retire next year, after leading the university since 2008. He’ll leave at the end of the 2015-2016 academic year, giving the university Board of Trustees time to conduct a national search for a new president. “Serving Western has been a richly rewarding privilege and so this has not been an easy decision,” Shepard said in a press release. “Yet, transitions always come and, after much reflection, I believe it is time for Western and for Cyndie and me. We are deeply grateful for having the opportunity to serve Western, look forward to an exciting final year, and know that, over the years that then follow, we will always proudly be Vikings.” Shepard is the 13th president of Western Washington University. Before coming to Western he served as chancellor of the University of Wisconsin-Green Bay from 2001 to 2008 and as provost at Eastern Oregon University from 1995 to 2001. Shepard’s tenure has been shaped in part by the recession and what he called “a deteriorating budget situation.” In his first year at Western, Shepard made the decision to end the university’s football program as costs for it and other athletic programs were climbing

[Photo courtesy of Western Washington University]

faster than revenues. In a 2009 press release, Shepard said “I have made this decision with a heavy heart as I am well aware of the profound consequences it has.” More recently, Shepard advocated for higher education funding and in 2014 refused to offer a proposal to the state Office of Financial Management for how the university would handle a 15 percent budget cut. Under Shepard’s leadership, Western had unprecedented success in gaining private financial support. The Western Stands for Washington fundraising campaign has raised $54 million since October 2014 and is on its way to exceeding a new goal of $60 million. Other achievements of Shepard’s presidency include expanding Western’s outreach by creat-

ing the Western Washington University Center at Olympic College in Poulsbo, and expanding partnerships with universities in China, South Korea and Mongolia. Shepard also sought to make the university more ethnically diverse, a topic he brought up in an opening convocation speech his first year on the job and every year after. “If we are as white in ten years as we are today, Western will have failed as a university,” he said. Shepard’s tenure at Western included changes to all university colleges. Notable examples include transitioning university engineering technology programs to full-fledged and accredited engineering programs and strengthening computer science to meet growing state needs in those fields, and creation of the university’s Institute for Energy Studies, which was conceived as an idea in 2010 and started offering an energy policy minor in 2012. The program now offers two bachelor’s degree programs. Shepard retiring, said Paul Cocke, Western Washington University communications director. Shepard’s wife Cyndie is also retiring from her position as director of the university’s Compass 2 Campus program, which encourages at-risk kids at local schools to stay in school and go on to higher education. She founded the program in 2009.

Corrections & Clarifications In the May Issue, eXp Realty CEO Glenn Sanford’s names was misspelled in the article titled “Real estate company’s bet on a virtual office pays off.” Sanford’s name was incorrectly written as Sanderson. Also in the May issue, in the list of state tax judgements, the amount owed to the Department of Revenue by Dickey’s Barbecue Pit in Ferndale was incorrect. At the time, Dickey’s Barbecue Pit owed $9,298.41, not 49,298.41 as appeared in print. Dickey’s Barbecue Pit in Ferndale no longer owes the Department of Revenue.

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July 2015

The Bellingham Business Journal

People On The Move

First Federal hires manager for new Bellingham branch

Bellingham Tech appoints Blue Sea Systems founder to board

First Federal announced that Troy Wills will be the market area manager for its new Bellingham branch. The new bank branch is scheduled to open winter 2015 at 1270 Barkley Boulevard, next to Banner Bank and Whatcom Educational Credit Union. Wills will serve as the branch manTroy Mills ager for the Bellingham branch and he will oversee any future growth or additional branches in the area, said Jeanine Lee, First Federal’s marketing manager. Most recently Wills was the vice president/branch manager at Peoples Bank in Bellingham. Before that, Wills worked at Horizon Bank and Washington Mutual in Bellingham, according to a press release from First Federal. First Federal, which is based in Port Angeles, has a lending center at 1313 E. Maple St. in Bellingham. The loan center will move into the new bank building when it opens, said Dwight Jeppson, commercial loan officer at the Bellingham loan center. Lee said the bank will feature an interactive teller machine in a vestibule at the new branch. Customers can use the machine after hours to interact with a live teller at the bank’s Port Angeles contact center. The interactive teller machine will allow the branch to have longer hours, as the Port Angeles contact center is open from 7 a.m. to 7 p.m., Lee said. Four to six employees will staff the bank, Lee said. First Federal has nine fullservice bank locations, most of which are in Clallam and Jefferson counties on the Olympic Peninsula.

The Bellingham Technical College Foundation appointed Scott Renne as its newest board member. Renne, founder of two Bellingham engineering and manufacturing businesses, will serve a threeyear term from 2015 to 2018, according to a press release Scott Renne from the college. Renne founded Terra Power Systems, which makes electrical systems for commercial vehicles; and Blue Sea Systems, which makes marine electrical systems. Renne retired last year after selling both businesses to larger corporations. “As a former employer of Bellingham Technical College graduates, I look forward to promoting the access to technical careers provided by BTC,” Renne said in the news release. “I believe the strong job market and excellent earning potential in these careers is underappreciated in our society.”

Pat White named executive director of The Leopold Pat White has been named executive director of The Leopold, a downtown retirement residence at 1224 Cornwall Ave. White has lived in Bellingham since 2005 and has more than 20 years Pat White of experience in health care management. She most recently worked with Merrill Gardens Retirement Communities. “I’m happy to come here

BTC’s new president has 17 years experience in higher ed. administration BY OLIVER LAZENBY The Bellingham Business Journal Bellingham Technical College’s Board of Trustees announced that Kimberly Perry will be college’s next president. Perry has more than 17 years of experience in higher education administration. She will take over on July 20, replacing Patricia McKeown, who announced last December that she would retire at the end of June 2015. McKeown has worked at the college for 30 years and served as president since December 2010. Perry has served as president of Butte-Glenn

Kimberly Perry [PHOTO COURTESY TO THE BBJ] because The Leopold is a unique and special residence for seniors in Whatcom County,” White said in a press release. She also cited The Leopold’s walkability as a feature that makes it unique. White is overseeing a busy schedule of activities at The Leopold, including a free monthly dance in its historic grand ballroom, free weekly tai chi and walking classes, speakers on current affairs, monthly art exhibits and coffee socials, the press release said. The Leopold is getting some building upgrades and recently got solar panels for the roof. Last year, the Leopold changed from being an assisted living community to an independent, 55 and older community, White said. It has studios, one-bedroom and two-bedroom units.

Wilson Engineering hires four for increased workload Wilson Engineering of Bellingham announced four new hires. Jennifer Ramsey, Brian Smith and Ryan Griggs Anthony Cavender joined the company’s team of civil engineers and Anthony Cavender joined as a permitting specialist. Ramsey, project engineer, has 12 years of experience in civil engineering with a focus on Brian Smith

Community College, sine July 2011. Before that, she was vice president of academic affairs at Los Angeles City College. Prior to that, Perry had several administrative positions at Reedley College in Reedley, California, including vice president of instruction. Perry began her career as a high school agriculture and natural resources instructor in Fremont, California. “I am extremely honored to have been selected to lead Bellingham Technical College,” Perry said in a press release from the college. “I believe that two-year colleges play a vital role in today’s society.”

stormwater treatment and sustainable stormwater management, according to an email from the company. Smith, a design engineer, has experience with municipal water resources Ryan Griggs civil engineering. His experience includes facilities design and infrastructure for drinking water, wastewater and stormwater. He previously worked Anthony Cavender for the City of

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July 2015

More jobs, but Whatcom County unemployment ticks up as more enter the workforce BY OLIVER LAZENBY The Bellingham Business Journal Whatcom County employers added jobs in May, but a growing workforce pushed the unemployment rate up slightly from April. Whatcom County’s estimated unemployment rate climbed to 5.8 percent last month, up from a corrected rate of 5.4 percent in April, according to the state Employment Security Department’s latest monthly employment report. The 5.8 percent unemployment rate is down from 6.6 percent in May 2014 and, after a drop in April, nearly back to 5.9 percent, the revised unemployment rate for March 2015. Whatcom County added an estimated 1,070 new jobs in May, but the number of unemployed residents — which the state counts as those who are unemployed but actively seeking work — grew from 5,550 to 6,020. A year ago, In May 2014, 6,730 county residents were unemployed. From May 2014 to May 2015, Whatcom County added an estimated 3,900 jobs. As estimated 98,610 county residents held jobs in May 2015, according to the report. The biggest job gains from May 2014 to May 2015 came in the mining, logging and construction; and the trade, transportation, and utilities sectors. The leisure and hospitality sector lost 300 jobs, making it the only industry in the report estimated to have fewer jobs this May than last. The federal govern-

ment is the only Unemployment rate other sector in Whatcom County: May 2015: 5.8 % May 2014: 6.6 % the county that Includes non-seasonally adjusted figures in Whatcom County and Washington didn’t grow in that time frame, 8% with no change Whatcom County in jobs from Washington May 2014 to 7% May 2015. The report uses the North 6% American Industry Classification System to sort jobs by 5% industry. Statewide, the unemployment 4% J F M A M J J A S O N D J F M A M rate also rose 2014 2015 slightly to 5.3 SOURCE: WASHINGTON STATE EMPLOYMENT SECURITY DEPARTMENT percent, up from 5.0 percent in 4.4 percent. April. Whatcom King County had the lowest jobless esticounty’s unemployment rate has been slightly mate in the state in May at 3.7 percent. Snohigher than the state rate all year, but it’s folhomish County trailed with 4 percent rate. lowing a similar trajectory. Ferry County in northeastern Washington Whatcom County’s unemployment rate compared favorably to other northwest Wash- had the state’s highest jobless rate, at 9.9 percent. ington counties. The Employment Security Department’s Skagit County’s unemployment rate was monthly reports don’t include wage informaestimated at 6.6 percent. Island County’s jobtion. less rate estimate was 6.1 percent. San Juan County outpaced all others in northwest Washington, with an unemployment rate of

Whatcom County housing prices climb as inventory declines High rent makes ownership appealing for first-time home buyers, but that could change as apartment projects in the pipeline get built BY OLIVER LAZENBY The Bellingham Business Journal The price and number of homes sold in Whatcom County climbed higher in May, outpacing numbers for last year and last month. At the same time, the amount of new listings on the market decreased. Those conditions have led to a seller’s market with declining inventory. Whatcom County’s housing market is down to 3.69 months of inventory. That number has been declining all year, and is down from 5.98 months of inventory in May 2014. The Northwest Multiple Listings Agency considers four-to-six months of inventory a balanced market. If that’s the case, then the local housing market has swung from a buyer’s market to a seller’s market in the last year. The number of sales that closed in May—325—is a 25 percent year-over-year increase from last May. The average and median sale prices for those homes were both up about 6 percent from

last May, according to the latest date from the Northwest Multiple Listings Service. “The lack of inventory and the amount of qualified buyers is creating a feeding frenzy out there,” local Windermere Real Estate broker Bliss Goldstein said about the market. Goldstein said buyers need to be more prepared than ever to make an offer. Properly priced homes in good condition are going quickly, and in some cases, for more than their asking price, she said. Goldstein said she’s even seen some buyers waive their inspection contingencies—the buyer’s window to have the home inspected. This is a risky move, but buyers are looking to make their deals sweeter, she said. “Inspection contingencies are one of the most important contingencies,” Goldstein said. “That’s not something we typically would recommend.” Goldstein and other local real estate brokers said they’ve seen an increase in first-time home buyers in the last year.

Goldstein attributes this in part to rising rental prices and low interest rates, which make mortgages compare favorably to rental prices. The comparison between rent and mortgage could change in the next few years as new apartment buildings pop up in Bellingham. Giovanni Isaksen, a Bellingham apartment analyst with Ashworth Partners is tracking 1,850 apartment units in Bellingham that were either already completed this year or are somewhere in the planning, permitting or construction stages. Those new apartments include a 154-unit project for seniors off Telegraph Road east of Meridian Street called Affinity at Bellingham, the Village at Baker Creek’s 122 units that are also near Telegraph Road, and CA Ventures plans for 230 units near Lincoln Street. The City of Bellingham estimates there are about 15,000 rental units in the city, so 1,850 more units would be a 12.3 percent increase in the number of units in Bellingham.

That kind of change could change the apartment vacancy rate and the rate of increase in rental prices, Isaksen said. Bellingham rentals currently have a vacancy rate of less than two percent, according to an estimate on the City of Bellingham’s website.

Whatcom County housing by the numbers, May 2015: Closed sales—Units: 325 (Annual change: 25.0 percent increase); Average sale price, May 2015: $317,706 (Annual change: 5.9 percent increase); Median sale price, May 2015: $277,000 (Annual change: 6.0 percent). Active listings—New: 520 (Annual change: 12.9 percent decrease); Total active: 1,198 (Annual change: 23.0 percent decrease); Months of inventory, May 2015: 3.69 percent (Annual change: Pending Sales—Units: 444 (Annual change: 10.5 percent increase)

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Tacoma. Griggs, also a design engineer, graduated from Washington State University in 2014 with a Bachelor of Science in civil engineering with a soil science minor. Cavender, permitting specialist, is experienced with environmental permitting and the permit application process. He has been a member of Lake Whatcom Interjurisdictional Coordinating Team for seven years. One hire is the result of an employee retiring after 38 years and the other three are in response increased workload in wastewater treatment, water treatment, stormwater design, AutoCAD and inspection needs, said Penny Rings, Wilson Engineering office manager.

Barron Heating promotes Thoren Rogers

Thoren Rogers, former home performance administrator at Barron Heating, has been promoted to project manager. In his new role, Rogers will manage the company’s partnerships with Home Depot, Costco, the Opportunity Council and Community Energy Challenge. Rogers will offer training to staff at these organizations on everything from building science to HVAC sales, according to an announcement from Barron Heating.

VSH CPAs promotes three to senior accountant

VSH CPAs promoted Stephanie Hermanutz, Kyle Powers and Trevor Sherwood to Senior Accountant. Hermanutz joined VSH in 2014 as an intern and was hired full-time after graduating from Western Washington University’s master’s in professional accounting program, according to an announcement from VSH. She works with the company’s international service group. Powers joined VSH in 2014 after graduating from Eastern Washington University’s accounting program. He also works with the international service group. Sherwood joined VSH in 2012 after graduating from Western Washington University with a master’s in business administration. He works in the financial reporting group at VSH where he manages audits, reviews and compilations for clients, according to the announcement.

Local financial advisor recognized as field leader

Rick Steele, a financial services professional in Bellingham, has been recognized as a Field Leader by HD Vest Financial Services, a national financial management firm . Steele qualified with 111 others for the 2015 Field Leader Conference, which was May 4-6 at Four Seasons Dallas at Las Colinas, Texas.

July 2015

The Bellingham Business Journal

Market Indicators

Jobs: Jobless rate ticks back up, still below 6% Bankruptcies

Unemployment rate May 2015: 5.8 % May 2014: 6.6 %

May 2015 total: 33 Annual change: � 28.26%

Includes non-seasonally adjusted figures in Whatcom County

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

8.0%

May 2015: 63.5% May 2014: 63.2 %

Includes non-seasonally adjusted figures for Washington state

Chapters 11,13 Chapter 7

35 30

7.0%

Labor force participation rate

67.5%

25 20

65.0%

6.0%

70.0%

62.5%

5.0%

J F M A M J J A S O N D J F M A M 2014

2015

F M A M J

J A S O N D J

2014

SOURCE: WASHINGTON STATE EMPLOYMENT SECURITY DEPARTMENT

F M A M

60.0%

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2013

2015

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

2015

2014

SOURCE: U.S. BUREAU OF LABOR STATISTICS

Spending: Canadian dollar up for 2nd month Sales-tax distribution �

May 2015: $1,688,294.5 Annual change:

2.5M

May 2015: $7,056,696 May 2014: $28,694,212

May 2015: $0.82 May 2014: $0.92

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

$30M

$1.2

2015

2014

Building-permit values

Canadian dollar

5.37%

Includes basic and optional local sales tax to Bellingham

1.5M

$1.0

$25M

$0.8

$20M

$0.6

$0.4

0.5M

$0.2

SOURCE: WASHINGTON STATE DEPARTMENT OF REVENUE

$15M $10M

$0.0

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM

2013

$5M

2015

2014

SOURCE: BANK OF CANADA

J F M A M J

2014

J A S O N D J F M A M 2015

SOURCE: CITY OF BELLINGHAM

Housing: Sellers market, foreclosures still down Housing sale prices

$350K

Foreclosures & delinquencies

Housing sales

Average: May 2015: $317,706 May 2014: $298,871 Median: May 2015: $277,000 May 2014: $260,500

Delinquency rate: April 2015: 1.96% April 2014: 2.71% Foreclosure rate: April 2015: 0.70% April 2014: 1.07%

Closed, May 2015: 325 Annual change: + 25.00 % Pending, May 2015: 444 Annual change: + 10.45 % Includes sales of single-family houses and condos in Whatcom County

500

Average price Median price

400

$300K

Pending sales Closed sales

Delinquency rate

Foreclosure rate

300 2%

$250K

200 $200K

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM

2013

2015

2014

SOURCE: NORTHWEST MULTIPLE LISTINGS SERVICE

100

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM

2013

2014

2015

SOURCE: NORTHWEST MULTIPLE LISTINGS SERVICE

J F MAM J J A S O N D J F MAM J A S O N D J F MA

2013

2014

2015

SOURCE: CORELOGIC

Other factors: Border traffic down from March Cruise terminal traffic

Airport traffic Includes total passengers flying from Bellingham International Airport

80K

April 2015: 1,077,501 Year-over-year: � 17.03%

Includes inbound and outbound passengers at Bellingham Cruise Terminal

2015

70K 60K 50K

Includes southbound passengers crossings into Whatcom County

5,000

2014

4,000

2013

3,000

40K

20K

SOURCE: PORT OF BELLINGHAM

2014

1.5M 1.25M 1M 0.75M

1,000

10K

2015

1.75M

2,000

30K

Border traffic

May 2015: 2,704 May 2014: 2,275

May 2015: 44,189 Annual change: -9.85%

0.5M 0.25M

J F MAM J J A S O N D J F MAM J J A S O N D J F MAM 2013

SOURCE: PORT OF BELLINGHAM

2014

2015

SOURCE: WWU BORDER POLICY RESEARCH INSTITUTE

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.

The Bellingham Business Journal

July 2015

Faithlife CEO Bob Pritchett’s tips for retaining millennials

Why did a top tech CEO start a news website? BY OLIVER LAZENBY The Bellingham Business Journal It’s not quite a news website, but Faithlife CEO Bob Pritchett’s newest project is a website all about Bellingham, with interviews of influential Bellingham residents conducted by Pritchett, stories about local events, things to do, and weekend itineraries for outof-town guests. The website, www.bellinghamwins.com, launched on June 9. So why is Pritchett, CEO of a company that employs 415 in downtown Bellingham and makes bible study software that’s sold around the world, putting his efforts into a website about Bellingham? Partly for fun, and partly to use as a tool for recruiting tech talent, he said. “I think it can be really useful for that. We recruit all over the country and Bellingham is a big part

of our recruiting,” he said. “Bellinghamwins will be a way that we can point people to something that showcases a lot of what’s great about the community.” Five or six people contribute to the website and it’s updated daily, Pritchett said. The website doesn’t generate revenue and Pritchett doesn’t have plans to advertise on it or make money with it in other ways. Right now, it’s just a contribution to the community and a marketing expense, he said. Pritchett faces some challenges in getting employees to relocate to Bellingham. He said the cost of housing is a big issue for people, who often think at first that they’ll save money by moving to Bellingham, and find out later that their cost of living will actually increase, he said. “That’s one of the big challenges that we have to

overcome in recruiting,” Pritchett said. Pritchett thinks downtown is the place to be. Since moving the companies headquarters to Bellingham from Oak Harbor in 2001, Pritchett said he has seen downtown get livelier and become a more interesting place. Pritchett is a part of that change — not only does he employ hundreds of people

downtown, he’s remodeling the upper floors of the Dahlquist Building on State Street - a historic building that’s currently home to Maikham thai restaurant. Pritchett plans to move into the building with his wife next spring, once the remodeling is done, he said. That way, he’ll be closer to many of the amenities that his new website focuses on.

▶ www.bellinghamwins.com, a website started by Faithlife CEO Bob Pritchett, launched on Tuesday, June 9. it features interviews with business owners and residents conducted by Pritchett, stories about local events and weekend itineraries for things to do with guests.

Millennials—national business publications are full of articles about how to attract them, work with them, manage them and retain them. Pritchett employs a lot of millennials and he recently ranked on a glassdoor.com list for being one of the top CEOs of a small- to medium-sized business, as voted by anonymous employees. Pritchett suspects millennials aren’t much different from other generations. “Fifteen years ago there were lots of articles about integrating Generation Xers into your company, now there’s lots of articles about integrating millennials,” he said. “Whatever they name the next generation,15 years from now there will be lots of articles on integrating those crazy people into your company.” There are generational differences, but often the stage someone is at in

their life matters more then their age, Pritchett said. For example, people who are parents often have different priorities than people who are not, regardless of what generation they are a part of. Pritchett has few rules at Faithlife—no smoking, no open flame and a few others that are required by law—and strives to give employees responsibility, autonomy and freedom, he said. Employees take sick time and vacation at their own discretion. “We treat people like adults,” he said. “ We look for people who will be good at their job and we give them the support, tools and training they need and we trust that they’ll do it well.”

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EXPORT, FROM 1 the project’s environmental review. The environmental review, called the draft environmental impact statement, won’t be finished until mid-2016. The study raises more questions than it answers, said David Eichenthal, one of its authors, in a presentation at the Leopold ballroom on June 16. It presents evidence that Whatcom County has what economists call a “second paycheck” effect — easy access to mountains, forests, bodies of water and other natural amenities provide a second paycheck to residents in the form of a high quality of life. “People here are willing to do certain things to, in effect, pay for quality of life that exists in Bellingham because of natural amenities,” said Eichenthal, who flew out from Tennessee for the presentation. Those things include accepting a lower paying job or spending time and money to commute outside of the county for higher paying work. That may change if the coal terminal is built, according to the study. Central to the research is the fact that job growth and population growth in Bellingham outpaced the state average from 2000 to 2010, even though the cost of living here was above the state average. “Population and economic growth in Whatcom County and Bellingham has been based in part on the perception of an area with robust natural amenities lending to a myriad of recreational opportunities,” the study says. Employment in the county grew three times faster than the statewide rate between 2001 to 2010, and 22.7 percent of that growth was in the leisure and hospitality sector and 10 percent was in retail trade - sectors that could be linked to natural amenities and outdoor recreation. Statewide, leisure and hospitality accounted for 7.9 percent of job growth and retail trade made up 10 percent of growth in that time period. From 2010 to 2013, the trends reversed, and jobs and population growth in Bellingham began to lag behind the state average. It’s impossible to know why that is, Eichenthal said, but SSA Marine’s 2011 announcement of plans to build a coal export terminal could be a factor. Even if the terminal doesn’t harm or restrict access to natural amenities, damage to Whatcom County’s reputation as an outdoor destination could harm sectors of the economy. “As the study said, it’s affected by the perception of the Gateway Pacific Terminal just as much as the actual affects of it,” he said. “There could be stigma, justified or not, attached to the increase in rail traffic due to transportation of coal and proximity to a large coal export facility that would make some individuals less likely to move to Whatcom County or more likely to leave.” Currently, nearly 15 trains a day roll through Whatcom County, the study said. If the export terminal is built, 18 extra trains per day — nine loaded trains headed north, and nine empty trains headed south — could chug along the water. Gateway Pacific spokesperson Craig Cole said PFM’s study is heavy on speculation but lacking hard facts. “This is the third time that PFM has been hired to say negative things about the project,” Cole said in an email. “Their work is in the nature of advocacy research and it is not objective.”

Cole didn’t dispute specific numbers or facts in the study, but he questioned the value of the recreation and tourist economy for working families, saying that the terminal would provide decent jobs for people who already live in Whatcom County. The sectors that grew between 2000 and 2010 don’t typically pay well. The week following the study’s release, a panel of export terminal proponents discussed lagging wages in Whatcom County. Hart Hodges, an economist with Western Washington University’s College of Economics and Business Research, was on that panel. Hodges questions whether the shift in the local economy in relation to the rest of the state has anything to do with the export terminal. He said that pattern of rural counties growing slower than the state average since 2010 is playing out in other areas and not unique to Whatcom County. But the idea that some residents accept a lower paycheck to live in Bellingham seems to hold, he said, and the question of how many people would choose not to live here or visit here is worth asking. “I think PFM plays the second paycheck card too heavily, but that’s not a big issue for me,” Hodges said in an email. “I think PFM is trying to raise questions and I think their questions are fine.”

“People here are willing to do certain things to, in effect, pay for quality of life that exists in Bellingham because of natural amenities.”

plausible given all the uncertainty at this point in the process. We should be talking about ranges of possible job impacts, not the number we like best,” He said in an email. “Studies of other bulk cargo facilities have lower estimates than what Martin offered for GPT. Moreover, the possibility of automation in different areas of the business invite questions.” Since the last study commissioned by Gateway Pacific Terminal, the project’s construction schedule changed from twophases to one. Cole said that won’t change the number of jobs during construction, as it’s still expected to take 8-9 million worker hours to build the terminal. As Eichenthal said during his presentation, PFM’s study didn’t reach any conclusions, but increased train traffic in the county in the last few years and its effect on the local economy could be a preview of what’s to come if SSA Marine does build an export terminal at Cherry Point.

DAVID EICHENTHAL MANAGING DIRECTOR PFM GROUP

Railway real estate values The PFM study pointed out one economic trend that Hodges said is likely caused by the Gateway Pacific Terminal announcement, or at least the increase in train traffic: From 2011 to 2013, the value of real estate near the railway declined while the value of real estate farther from the tracks increased. “I don’t know if a facility at Cherry Point means more trains or just a different destination for trains,” Hodges said in an email. “If it means more trains, then I think we can expect more impacts on housing prices for houses in the rail corridor.” Danne Neill, a Bellingham real estate broker with the Muljat Group, expressed concern for property values along the rail line, as well as new residential and commercial development along Bellingham’s downtown waterfront. She has clients who are interested in Whatcom County for its “second paycheck,” she said. “I see a lot of people here who are consultants who have been highly successful. They can go to Seattle or Vancouver and fly to China for work,” Neill said. “They’re here because of the quality of life.”

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

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Estimated number of jobs The Gateway Pacific Terminal website says terminal construction will create about 4,400 jobs and generate about 1,250 ongoing jobs once complete, including indirect and induced jobs. Those numbers were calculated by Martin Associates of Lancaster, Pennsylvania, using a jobs multiplier that’s higher than what the U.S. Bureau of Economic Analysis uses, according to the PFM study. Martin Associates used various multipliers of about 2.9. The Bureau of Economic Analysis indicates a multiplier as low as 1.8 is appropriate for Whatcom County. Both numbers could be plausible, Hodges said. “Different sets of assumptions can be

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July 2015

DOWNTOWN

Downtown Bellingham Partnership hatches plan for vacancies New partnership director envisions pop-up space for entrepreneurs starting this summer through a rent-free deal in a city-owned storefront BY OLIVER LAZENBY The Bellingham Business Journal

Imagine a downtown space that allows start-up retailers, dance and fitness instructors and other entrepreneurs to try their business ideas without the commitment and upfront cost of signing a lease. Now imagine that space moving from one vacant downtown storefront to the next, leaving behind new businesses with each move. That’s Nick Hartrich’s vision for filling downtown vacancies and, in the process, giving entrepreneurs a place to try out new ideas. Hartrich, director of the Downtown Bellingham Partnership, is starting this summer with a city-owned storefront at 1302 Commercial St., a challenging space hidden behind the Parkade ramp that has been vacant for three years. The space, called Hatch, would accommodate businesses of all kinds and provide a venue for lectures, concerts and educational discussions and presentations. “It’s a way for companies to start small,

Nick Hartrich, executive director of the Downtown Bellingham Partnership, is preparing to open a city-owned storefront at 1302 Commercial St. to start-up entrepreneurs. The city is letting the partnership use the space rent-free in hopes that the project will attract a paying tenant. OLIVER LAZENBY PHOTO | THE BELLINGHAM BUSINESS JOURNAL

selling their product in a storefront without the need to make enough to cover rent,” Hartrich said. “It’s a way for us to watch businesses either fail fast and cheap, or succeed.” He envisions a dynamic space with minimal infrastructure and mobile furniture that would allow Hatch to change and accommodate different businesses. A day at Hatch could start with a 6 a.m. yoga class. Small retailers could share the space in the late morning and afternoon, and in the evening musicians could play concerts. The walls could be a rotating art gallery. But it would all have to move if Hatch attracts a paying tenant, or if one of the business experiments that begins in the space wants to lease it long-term. “What if someone wants to come in and rent? That’s ideal,” he said. “If someone comes to rent it, whether or not we have something to do with it, that’s awesome.” When and if that happens, Hatch could pop up in another vacant downtown store-

Hatch, PAGE 12

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July 2015

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July 2015

PORT NEWS Waterfront Trail Scheduled to Open in July

Sponsored content provided by Port of Bellingham

The Port and City of Bellingham will celebrate the latest addition to Whatcom County’s spectacular recreational amenities this month with the opening of a new waterfront trail near Bellingham’s city center. Set for completion in mid-July, the new trail will extend south from Squalicum Harbor onto Georgia Pacific’s former Aeration Stabilization Basin (ASB) breakwater. “The ASB trail will offer some of the best views in town of the city and

transitioned into a vibrant, mixed-use neighborhood. The ASB trail will provide an exciting new public access opportunity and support the continued development of Whatcom County’s recreational economy. Whatcom County currently ranks 8th in the state for recreational expenditures and the new ASB trail will provide another reason for tourists to visit the area. Recreation Northwest, a local non-

recreation business jobs. “Outdoor recreation is an important part of why people choose to live in Whatcom County,” said Todd Elsworth, Executive Director for Recreation Northwest. “There is a strong demand for public access to the water and the new ASB trail will have a direct benefit to the local economy.”

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the bay,” said Mayor Kelli Linville. “I am happy the City and Port were able to work together to make this early waterfront access project a reality.” The ASB trail is the first public access project to be developed as part of the Port and City’s 237-acre redevelopment of Bellingham’s central waterfront. The Port has granted the City a temporary, interim license to locate the ASB trail on Port property with plans for a permanent trail after required environmental cleanup work in the ASB has been completed. In total, 33 acres of new parks and trails will be built over the next several decades along with residential, commercial and industrial uses as the city center waterfront is gradually

“People want clean air, open space and areas to recreate” said Gerald Craft, Consumer Marketing Director for McNett Corporation. “As an outdoor company based in an outdoor community we’re better able to connect with not only our customers but our neighbors as well. Trails simply make our neighborhoods a better place to live.”

profit with a mission to promote outdoor recreation, recently released a study funded by the Port, Whatcom County, City of Bellingham and Bellingham Whatcom Tourism which examined the economic contribution of outdoor recreation to Whatcom County. The study estimated $705 million is spent on outdoor recreation in the county each year supporting a total of 6,502 jobs (including both full-time and part-time jobs in sectors such as food and beverage services, retail, and general recreational services). Additionally, Whatcom County’s recreation industries (such as gear manufacturers and boat builders), account for over $389 million in business output and support 3,728

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HATCH, FROM 10 front. Hartrich is pitching the idea to major downtown property owners and leasing agents. He calls it a win-win, as the “hip, curated space” he has in mind will be more attractive to businesses than an empty space with a “for lease” sign in the window. “Our plan is to prove that this works in the public sector and take it to the private sector,” Hartrich said. “To be smart in this case we have to think our program is going to suc-

The Bellingham Business Journal ceed, and if that’s the case we have to have our eyes on the next prize.” Hatch’s first location on Commercial Street, in between Gary’s Mens and Womens Wear and the Downtown Bellingham Partnership’s office, has been empty since Stamp and Coin moved out in late 2012. The storefront is behind the ramp to the underground parking in the Parkade and hard to see from the street. “I think in general it’s just one of those things — some spots are more

difficult to fill than others and the right person hasn’t looked at that spot,” said Gary Lupo, owner of Gary’s. “Maybe the right business isn’t even aware of that spot.” On June 1, the Bellingham City Council unanimously approved a deal to allow the Downtown Bellingham Partnership to use the space on a month-tomonth basis rent-free. The partnership will pay utilities, provide insurance coverage, pay a $1,450 damage deposit and cover the city’s leasehold excise tax.

“It’s something that the city administration is supportive of simply because we have been trying to rent the space out for such a long time,” said Ted Carlson, city public works director, at a council meeting. “We’ve tried several things to activate it but I think this is unique because it will be more than just putting things in the store front, it will be bringing people down there.” If the partnership finds a one-year tenant for the space the city will reimburse up to six months

July 2015

“Our plan is to prove that this works in the public sector and take it to the private sector.”

NICK HARTRICH EXECUTIVE DIRECTOR DOWNTOWN BELLINGHAM PARTNERSHIP

worth of leasehold excise tax, which is a tax that public entities pay on leased properties instead of property tax. Details such as whether the businesses who use the space will pay the partnership are still being worked out, Hartrich said. For nearby business owners the vacant space is a break in the flow of downtown shopping. When customers walk out of Garys’ nothing pulls them down the street past the vacancy to the shops beyond. “Any vacancy creates a blip in the flow for shopping,” said Heather Baker, owner of Lulu, a clothing and accessories store on the same block as the Parkade. “If that space becomes activated, it could change the street dramatically.” Baker and other downtown business owners may be involved with Hatch as mentors. Baker is on the Downtown Bellingham Partnership’s board of directors. Western Washington University’s IDEA Institute — the InterDisciplinary Entrepreneurship in Action Institute — will also work with Hatch. Students will be involved in a way that will give them experience with startup businesses, though the details are still being worked out. Hartrich got keys to the Commercial Street space in early July. He plans to make a few improvements to it — pull up the carpet, paint the walls, a few lighting tweaks — and get something in the space by late July, he said. Since Hartrich took over as director of the Downtown Bellingham Partnership earlier this year, he’s already changed his block on Commercial Street. The self-described “lighting nerd” hung new lightbulbs from the unused fluorescent light fixtures hanging above his standing desk, organized a design contest that resulted in a new logo for the partnership, and had new windows installed that open and allow him to engage with people passing by his office. He has a clear goal for his street. “This is commercial street, so commerce should be happening here,” he said. “We’re going to see that happens to some degree.”

Oliver Lazenby, associate editor of The Bellingham Business Journal, can be reached at 360-647-8805, Ext. 5052, or olazenby@bbjtoday.com. 1350163

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The Bellingham Business Journal

Sponsored content provided by Loni Rahm, and Bellingham Whatcom County Tourism.

Community Assessment Will Spotlight 60 Key Elements

You probably won’t even notice that they are here, but a secret shopper/ assessment team from Roger Brooks International will be conducting a multi-day community assessment this month. The RBI team will review 60 key elements that may encourage or inadvertently discourage economic vitality -- including business mix, customer service, streetscapes, services and amenities, first impressions, entry points and more.

to identify community assets, motivates decisions, and welcomes travelers. Conversely, they will also present what inhibits or confuses travelers.

Utilizing a special projects grant funded by Whatcom County hotel/ motel lodging taxes, Bellingham Whatcom County Tourism has asked the Roger Brooks International team’s discovery report to help celebrate the welcoming assets of our collective county-wide community and also identify short and long term opportunities for improvement.

But many are first time visitors to our area who will make first-impression determinations about return visitation based upon their initial experience.

Renowned tourism expert, author and speaker Roger Brooks explains his team’s process: “One of the most powerful features of our community assessment program is its fresh, objective viewpoint – a thorough review of your community through the eyes of a first-time visitor.”

The second point of entry will focus on our border crossings. There is no dispute about the importance of crossborder commerce in Whatcom County. Even for those of us who cross routinely, borders can be an intimidating or frustrating process. This evaluation will include how we welcome and embrace these international visitors once they have arrived in our County.

Brooks’ multi-day assessment includes photographic review of 60 critical items – all of which play a role in making our collection of communities the destination of choice as a place to invest in, move to, establish a business in, and from the tourism bureau’s priority – a place to visit.

As Roger is quick to point out, “vibrant communities that offer great quality of life for their residents, a thriving business climate, and visitor appeal don’t just happen by themselves. They need careful planning based on an honest, objective foundation.”

The community assessment will be initiated with two primary access and community arrival points into and throughout Whatcom County. Starting about 10-20 miles away, the team will capture impressions of a first-time visitor in order to evaluate what helps

The first point of entry is I-5. Hundreds of thousands of vehicles travel I-5 daily. Some are residential commuters like me. Some are repeat visitors who already have a plan for where they are going and what they will do once they get there.

Countless others are “just passing through” on their way to somewhere else. How can we motivate them to pull off the freeway during this trip or on subsequent trips?

By the way, this is a very unique opportunity for the RBI team – the first multiple international border entryway in more than 700 plus community assessments. Fortunately, Roger Brooks and his team are extremely aware of state and federal guidelines which dictate what can and can’t be done along major thoroughfares, border crossings, interstates etc. Their findings will reflect proactive items and recommendations that can be done by municipalities, business and residential owners. I look forward to sharing the community assessment recommendations in the August BBJ. Have a great July! And if you see the secret shoppers…shhhhh….don’t tell anyone!

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July 2015

BUSINESS BIRTH

Pedal-powered party vehicle rolls out to local breweries at a time can dance in the aisle) and rolled out of the vehicle’s home in a warehouse behind Fanatik Bike Co. on State Street with Jimmy Buffet’s “Margaritaville” playing on the sound system. Amy and Tom Lawsons’ daughter talked them into starting the business. The three of them went for a tour on a similar pedal bus last year in Portland, Oregon, and loved it. “Why not?” Amy Lawson thought when her daughter suggested they start a pedal tour business in Bellingham. “Let’s take a chance. We’re moving on to our next slice of life.” Pedal party tours are popping up across the country. Seattle has the Cycle Saloon; Bend, Oregon, has Cycle Pub; Minneapolis and St. Paul, Minnesota, have the PedalPub; and Portland, Oregon, has BrewCycle and the Pedalounge. As the names suggest, most of these vehicles cruise from one watering hole to the next and participants sample beer along the way. Pedal Party NW plans to follow this model, but Tom Lawson said he can also work with clients to create custom tours.

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BY OLIVER LAZENBY The Bellingham Business Journal Tom and Amy Lawson were about to dive into the next chapter of their lives. After 40-year careers, Tom as a carpenter and Amy as a teacher, they bought an open-air, pedal-powered bus for double the price of most cars, and prepared it for tours of Bellingham’s breweries. Before their first paid tour on Thursday, June 11, they weren’t nervous. They had the proper permits — the City determined they needed a taxi license, among other things — and they had rehearsed by pedaling the one-ton, 15-seat rig on a few practice tours, including a spin through the Blossom Time Grand Parade on Memorial Day Weekend with the mayor and county executive on board. They were eager to try a tour with paying guests and eager to start making money after sinking so much into the business. When all the guests arrived for the first tour — a birthday ride to Kulshan Brewing, Wander Brewing, and Aslan Brewing — they heard the rules (no beer on board, only two people

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Though most cities with similar pedal-powered tours are bigger than Bellingham, Tom Lawson thinks he can find a market here. At the time of the first tour, he had about 10 others booked. “It’s been so well received,” he said. “Everyone says it’s perfect for Bellingham.” Despite the excitement, it will take a couple years to pay off the pedal bus, he said. Pedal Party NW can do 16 tours a week and has openings for tours everyday but Monday. Tours last about two hours and cost $25 per person. The pedal bus, which came from a Minneapolis factory with the name

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Above: After a 20-minute ride, Tom Lawson prepares to steer the pedal bus across James Street to Kulshan Brewing Co.

Right: Amy and Tom Lawson pose next to their pedal-powered vehicle, the “Moonshine Roadster,” before their first paid tour in June.

“Moonshine Roadster,” can accommodate groups of 15 people and needs at least 10 pedalers to make it go. The bus has six adjustable seats on each side of the vehicle — five pedaling seats and one with no pedals — and a “princess” bench in the back that can seat three people. For now, the Lawsons are only booking tours for whole groups, rather than selling them by the seat. The vehicle has an electric motor that kicks in to help the bus accelerate, climb hills and back up. It also has brakes, lights, a sound system and USB chargers for passengers to charge their cell phones. From the steering wheel at the front of the bus, Tom Lawson navigated his first group of paying custom-

ers to one of the more challenging spots in the triangle of breweries — a stop light on State Street. It took a while for the pedalers to roll the bus across State Street and onto Grant Street, but they made it before the light turned red. “Get ready,” he said, as cars on State Street stopped. The light turned green and the Moonshine Roadster crawled through the intersection, reaching the other side as the light turned yellow. The drivers behind just smiled and waved —Tom Lawson said he hasn’t had any drivers get upset with his slow rig yet. Once safely on Grant Street, the pedalers sweated up a slight incline toward Kulshan Brewing Co. at about five miles an hour,

faster than walking but slower than bicycling. “Our first impression was it was a little bit more heavy in biking muscles than the casual biker is used to,” said Tina Ruff, who was celebrating her birthday on the inaugural tour. “Once you find the rhythm it seemed easier. We had such a great time. You end up in your own little world on the bike.” And the workout made the beer all the more refreshing, she said.

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

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July 2015

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

Finding business-friendly programs is as easy as ESD By Chad Pearson, Shared Work Marketing Manager The Employment Security Department (ESD) isn’t just “the unemployment ofﬁce” anymore. A full suite of business programs is available to help employers be successful. Find your next employee of the month through our partnership with WorkSource. Dial the employer help line to ﬁnd information on your taxes and wages. Discover a wealth of labor market data on our Employment and Economic Information website. Sign up for the Shared Work Program to keep employees you thought you had to lay off. These and many more services are available through Employment Security and its partners. Take, for instance, the Shared Work Program. The business climate is improving and

unemployment is down in Washington. Yet, participation in the program is up 31 percent over last year because employers like you are learning about it. WorkSource offices around the state can help you recruit and interview prospective employees. Upgrades to the WorkSource website will soon bring a dynamic job-match system to help you recruit employees. Plus, many WorkSource locations are currently hiring Career Pathway Navigators to connect mid-career professionals and graduates to jobs and provide you with the talent you need. Make use of the employer help line (888836-1900) to find information on tax and wages. Get answers to questions or request forms with the touch of a button. On the Employment and Economic Information website, find data about current wages, benefits and other industry-specific information to help you plan for the future.

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The Bellingham Business Journal

July 2015

Marine industry expands on Fairhaven waterfront Port deal would allow All American Marine, Fairhaven Shipyard to expand, changing 7.66 acres of waterfront

BY OLIVER LAZENBY The Bellingham Business Journal The Port of Bellingham took steps at a June 16 commission meeting toward aiding the expansion of two Fairhaven marine businesses in a deal that would change 7.66 acres of Fairhaven industrial waterfront by July 2016. Under terms in a memorandum of understanding between the organizations, the Port plans to help All American Marine and Fairhaven Shipyard expand on industrial property at the end of Harris Avenue in Fairhaven. The main goals of the deal are to allow All American Marine to expand into a new warehouse that will be twice as big as its current facility and to replace a wooden pier that Fairhaven Shipyard currently uses for repairing public and private vessels with a new pier that will be able to handle heavier loads. The Port will also cleanup contaminated

sediment in the process. The project will require all parties involved to cooperate and dance around each other during construction. Fairhaven Shipyard will move into a separate waterfront warehouse while the Port of Bellingham prepares its current site for construction of All American Marine’s new, larger warehouse. Once the new building is finished, All American Marine will move in and Fairhaven Shipyard will move into All American Marine’s old space. At the same time, pier replacement and an estimated $14 million in cleanup of contaminated sediments will take place, half of which will be paid for by Model Toxic Control Act grants. “This was a very complicated transaction,” Port Executive Director Rob Fix said in a press release. All American Marine CEO Mark Mullett said he’s been interested in expanding for about four

All American Marine CEO Matt Mullett in his cramped boat building warehouse on Fairhaven’s waterfront. Mullett would like to bid on contracts to build on bigger boats, but they wouldn’t fit in his current warehouse. [OLIVER LAZENBY | THE

BELLINGHAM BUSINESS JOURNAL]

years. His company has had opportunities to bid

on contracts to build 400 passenger ferries, but those

boats wouldn’t fit into the company’s 20,000-squarefoot warehouse. The new warehouse will be 39,000 square feet and will allow them to build those bigger boats and eventually hire 25 to 30 more people. “When a contract comes along for a 350 to 400 passenger ferry, we just have to shrug our shoulders and say maybe in the future,” Mullett said. All American Marine specializes in aluminum catamarans that get used as ferries, cruise boats, and research vessels. Ferry districts and government entities are a top customer, as aluminum catamarans are fast and efficient as passenger-only ferries. Mullett expects the market for passenger-only ferries to grow, as car ferries are less efficient and operate with tight margins. “Right here in our own backyard, passenger ferries are terribly underutilized,” he said. “You go to other places like Hong Kong, Australia, New Zealand,

Scandinavian countries, and there are massive numbers of passenger ferry boats.” All American Marine is working on its second of two passenger boats for the King County Ferry District. The 105-foot-long, 250-passenger boat called the Doc Maynard will likely shuttle pedestrian passengers from the Colman Dock in downtown Seattle to West Seattle and Vashon Island. A couple years ago, the company built a passenger ferry for Kitsap Transit. Kitsap Transit was interested in a passenger-only ferry boat because it could cut commute time from Bremerton to Seattle in half, Mullett said. “We think there’s a huge possibility for a ferry going from Bellingham to Friday Harbor,” Mullett said. “Those are the kinds of the things that we see in the future and one of the driving influences of why we

Marine, PAGE 21

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July 2015

The Bellingham Business Journal

July 2015

By the Building Industry Association of Whatcom County

Careers in the Construction Trades – We need you!

8 MILLION Estimated New Job Openings by 2018

2.7 MILLION

Estimated New Jobs Requiring Post-Secondary Education by 2018

2+ MILLION Craft Professionals Needed by 2017

What the experts are saying: ■ Harvard Graduate School of Education “By 2018, fields like construction and manufacturing will provide nearly 8 million job openings, 2.7 million of which will require a post-secondary credential.” ■ Construction Labor Market Analyzer “…one-sixth of the workforce will leave the industry over the next decade… more than 2 million new craft professionals will be needed in our industry by 2017.” ■ Bureau of Labor Statistics (BLS) “Employment of

25%

Estimated Growth

321,000

Construction Jobs Added in 2014

construction laborers and helpers is projected to grow 25 percent from 2012 to 2022, much faster than the average for all occupations. Laborers and helpers work in all fields of construction, and demand for these workers will mirror the level of overall construction activity.” ■ Associated General Contractors of America “Construction employers added 29,000 jobs in February 2015 and 321,000 jobs over the past year, reaching the highest employment total in six years, as the sector’s unemployment rate fell to an eight year low of 10.6 percent.”

CARPENTRY

ELECTRICAL

MASONRY

Average National Wage

24% Growth Estimated by 2022

20% Growth Estimated by 2022

34% Growth Estimated by 2022

PAINTING

PLUMBING $54,620

HVAC

$46,880

Average National Wage

20% Growth Estimated by 2022

21% Growth Estimated by 2022

$45,590

$39,760

$54,520

$42,130

The Construction Careers Academy offered at Meridian High School provides students with an introduction to the trades, 3 high school credits, OSHA 10 and NCCER certification. This program is open to any junior or senior in Whatcom or Skagit Counties. Do you know a high school student that might be interested? Ask any high school counselor or visit www.nwtech.k12.wa.us for details.

The Bellingham Business Journal

July 2015

Public Records BUSINESS LICENSES Listings, which feature both new and renewed licenses in Bellingham, include business name, licensee name and the business’ physical address. Records are obtained from the City of Bellingham. 214 Commercial, Llc, 214 Commercial, Llc 214 N Commercial St., Bellingham, WA. 2020 Solutions Clothing Llc, 2020 Solutions Clothing Llc, 575 Montgomery Rd., Bellingham, WA. A New Pebble Counseling Inc, A New Pebble Counseling Inc, 1101 N. State St., Bellingham, WA. A Sacred Passing, A Sacred Passing, 115 Unity St. Ste 202, Bellingham, WA. A Taste Of Elegance, Finnmex Inc., 3600 Lakeway Dr., Bellingham, WA. Agate Bay Construction, Agate Bay Construction Llc, 2484 N Shore Rd., Bellingham, WA. Andrew A. Young, Andrew A. Young, 114 W Magnolia St., Bellingham, WA. Avenue Bakery, Llc, Avenue Bakery, Llc, 2020 Humboldt St., Bellingham, WA. Awespiring Artists Llc, Awespiring Artists Llc, Bellingham, WA. Bacon Construction and Landscaping Llc, Bacon Construction and Landscaping Llc, 1014 W. Smith Rd, Bellingham, WA. Baohoa Electronics, Bao Chau Tran, 421 E Maple St., Bellingham, WA. Bare Advanced Speed Waxing And Skincare Llc, Bare Advanced Speed Waxing And Skincare Llc, 1321 Railroad Ave. Ste 20, Bellingham, WA. Barely Salvageable Press, Barely Salvageable Press, 1400 Moore St., Bellingham, WA. Beauty Nails, New Beauty Nails Llc, 1 Bellis Fair Pkwy Ste. 706, Bellingham, WA. Bellingham Center For Healthy Motherhood Pllc, Bellingham Center For Healthy Motherhood Pllc, 1012 Dupont St., Bellingham, WA. Bellingham Smartphone Repair, Bellingham Smartphone Repair, 1240 E Maple St., Bellingham, WA. Bellingham Smile Care and Sleep Center, David A. Kavanagh, Dds, Ps, 1420 King St., Bellingham, WA. Bellingham Sports Cards, Robby Du Brey, 1703 Birchwood Ave., Bellingham, WA. Bennett Belka Photography, Ashley Rae Bennett, 2532 Ellis St., Bellingham, WA. Big Hare Studio, Joe Ryan Douglas, 1203 23rd St., Bellingham, WA. Bluegreen Vacations Unlimited, Inc., Bluegreen Vacations Unlimited, Inc., 1 Bellis Fair Pkwy, Bellingham, WA. C.O. Jones, Inc. C.O.Jones, Inc., 30 Rocky Ridge Dr., Bellingham, WA. Campus Factory, Campus Factory of Western Washington University, 516 High St., Bellingham, WA. Cantrell Counseling Incorporated, Cantrell Counseling Incorporated, 1000 Mckenzie Ave. Ste 26, Bellingham, WA. Classy Addict Entertainment, Austin William Smith, 1407 Sweetbay Dr., Bellingham, WA. Cloudy Day Solutions, Leroy Bradley Walters, 1320 Lakeway Dr., Bellingham, WA. Countertops For Less Llc, Countertops For Less Llc, Guide Meridian, Bellingham, WA. Craftedbyanna, Anna Riel, 3470 Deer Pointe Ct., Bellingham, WA. Cut Masters Mowing Service Llc, Cut Masters Mowing Service Llc, 3569 Skylark Loop, Bellingham, WA. D & H Dispatch, Tanya Andrushenko, 571 W Smith Rd, Bellingham, WA. Dayhoff Or thopunc ture Inc, Dayhoff Orthopuncture Inc, 1111 W Holly St., Bellingham, WA. Deena Rathkamp, Ph.D., Deena Haimovitz Rathkamp, 1140 10th St., Suite 216, Bellingham, WA. Don Anderson Appraisals, Donald Jay Anderson, 3610 Meridian St., Bellingham, WA. Duane Neufeld Photography, Duane Neufeld, 2616 Roslyn Pl, Bellingham, WA. Dung Tuan Nguyen, Dung Tuan Nguyen, 436 W. Bakerview Rd., Bellingham, WA. Ecoatm, Inc., Ecoatm, Inc., Bellingham, WA. F/V Home Shore, F/V Home Shore, L.L.C., 2817 Martin St., Bellingham, WA. First Line Marketing Inc, First Line Marketing Inc.,

114 W Magnolia St., Bellingham, WA. Flourish Food And Body, Sarah Richey, 1140 10th St., Bellingham, WA. For The Love Of Flowers, Nancy M Craig, 184 E Kellogg Rd. Apt E7, Bellingham, WA. Frozen Llc, Frozen Llc, 1727 Eagleridge Dr., Bellingham, WA. Frozen, Tiffany Smith, 1727 Eagleridge Dr., Bellingham, WA. Gale, Steve B Klein, Bellingham, WA. Gradlime Llc, Gradlime Llc, 2801 Orleans St., Bellingham, WA. Gruff Brewing Company, Gruff Brewing Company, Llc, 104 E Maple St., Bellingham, WA. Jadey Byers, Jadey Byers, 601 Linden Rd, Bellingham, WA. Jam’n Sup And Kayak, James Byron Seegers, 1532 Toledo Ct., Bellingham, WA. Jbv Consulting, Jay Vanmersbergen, 1311 Sara Ct., Bellingham, WA. Jct Contracting Services, Jeffrey Cameron Thames, 2006 Governor Rd., Bellingham, WA. Jeanette Cochrane, Jeanette Cochrane, 2828 Pullman St., Bellingham, WA. John Michael Leonard, C/O Nw Explorations, John Michael Leonard, 2623 S. Harbor Loop Dr., Bellingham, WA. Juan’s Landscaping, Juan Santiago Osorio Nolasco, 3303 Hollywood Ave., Bellingham, WA. K Hulett Photography, Kevin Andrew Hulett, 99 Sudden Valley Dr., Bellingham, WA. Kern Dogs Daycare And Training, Lucas Berthold Kern, 2911 Patton St., Bellingham, WA. Krista Nielsen, Krista Nielsen, 627 W. Bakerview Rd., Bellingham, WA. Kristen Coston, Lmhc, Llc, Kristen Coston, Lmhc, Llc, 2950 Newmarket St., Bellingham, WA. Kristina Lee Porter Lmp, Kristina Lee Porter, 2 Marigold Dr., Bellingham, WA. L.H. Foot Care & Massage, Lh Foot Care & Massage Llc, 1 Bellis Fair Pkwy, Bellingham, WA. Ld Consulting, James Steven Lengell, 2818 Eldridge Ave., Bellingham, WA. Lisa Michelle Mckelvey, Lisa Michelle Mckelvey, 314 E. Holly St., Bellingham, WA. Lizzy House Cleaning, Dalia Huerta, 4015 Eliza Ave., Bellingham, WA. Lulu’s Cleaning, Maria Mendez Rodriguez, 202 E Laurel St. Apt 201, Bellingham, WA. March Optics Usa, Inc, March Optics Usa, Inc, 1821 Valencia St., Bellingham, WA. Marta Shala Erlich, Marta Shala Erlich, 12 Bellwether Way, Ste 223, Bellingham, WA. Matthew Donna, Matthew Donna, 4484 Meridian St., Bellingham, WA. Misty Mountains Realty Llc, Misty Mountains Realty Llc, 2900 Meridian St., Bellingham, WA. Mortensens Collectables, Mortensens Collectables Llc, 3222 Bennett Dr., Bellingham, WA. Mountain Enterprises, Jack E Johnson, Bellingham, WA. My Dingalings, Lauren Walker, 1639 Humboldt St., Bellingham, WA. North Sound Studio, North Sound Studio Llc, 3100 Peabody St., Bellingham, WA. Northwest Zen Shiatsu, Northwest Zen Shiatsu Llc, 1012 Dupont St., Bellingham, WA. Nutritionist On The Run, Tanya Lynn Belrose, 1020 Railroad Ave. Apt. 108, Bellingham, WA. Oatmeal & Fox Dyeworks, Oatmeal & Fox Dyeworks, 3105 Alderwood Ave., Bellingham, WA. Odd Jobs Home Repair Llc., Odd Jobs Home Repair Llc, 3145 Bennett Dr., Bellingham, WA. Olympus Containers Llc, Olympus Containers Llc, 5124 Guide Meridian, Bellingham, WA. On Point Acupuncture, On Point Acupuncture Llc, 4204 Meridian St., Bellingham, WA. Onemain Financial Group, Llc, Onemain Financial Group, Llc, 4151 Meridian St Ste 114, Bellingham, WA. Pacific Northwest Housecleaning, Alma Alonso, 119 N Samish Way, Bellingham, WA. Paradisu, Janet Lynn Marino, 2401 Kulshan St., Bellingham, WA. Patricia Herlevi, Patricia Lynne Herlevi, Bellingham, WA.

Paula Forget, Paula Forget, 5115 E North St., Bellingham, WA. Pauli’s Playschool, Pauline Owen, 3856 Robby Ct., Bellingham, WA. Perlpop, Matt B Sauers, 1505 G St., Bellingham, WA. Permatees, Permatees, Llc, 336 36th St., Bellingham, WA. Quincey Ackerman, Quincey Marie Ackerman, Bellingham, WA. Ramona Jean Charters, Joseph G Menish, Bellingham, WA. Real Symple Solutions, Real Symple Solutions, 3003 Hayward Ct., Bellingham, WA. Redblock Industries, Llp, Redblock Industries, Llp, 2950 Newmarket St. Ste 101-191, Bellingham, WA. Regen Gardening Supply Inc., Regen Gardening Supply, Inc., 319 E Champion St., Bellingham, WA. Roma Management, Llc, Roma Management, Llc, 1552 Fruitland Dr., Bellingham, WA. S & L Financial L.L.C., S & L Financial L.L.C., 737 Northshore Dr., Bellingham, WA. Sage And September, Sage And September Events Llc, 3708 Morning Mist Way, Bellingham, WA. Sam’s Structural Integration, Samantha Brianne Dart, 1602 Carolina St. Ste. D12, Bellingham, WA. Sather Chiropractic Center, Pllc, Sather Chiropractic Center, Pllc, 1901 N State St. Ste C, Bellingham, WA. Scalpel And Stylus, Aidan Borer, 1010 Railroad Ave., Bellingham, WA. Serco, Inc., Serco, Inc., 4229 Mitchell Way, Bellingham, WA. Shameless Exposure Photography, Austin Haywood Simpkins, 2044 Ponderosa Ct, Bellingham, WA. Shelly James, Shelly Roseanne James, 11 Sanwick Point Ct, Bellingham, WA. Shine 4 U Cleaning Services, Shine 4 U Cleaning Services, Bellingham, WA. Skill Builder Books, Stacie Erfle, 121 S 42nd St., Bellingham, WA. Sounds Real Audio, James Douglas Riddell, 4915 Silver Beach Ave., Bellingham, WA. Sp Plus Corporation, Sp Plus Corporation, 4255 Mitchell Way Ste 14, Bellingham, WA. Structures Brewing, Structures Brewing Llc, 1420 N State St, Bellingham, WA. Suh Sports Camps Llc, Suh Sports Camps Llc, 2829 Patton St., Bellingham, WA. Super Chick Cleaning Service, Rachel Steiger, 1800 Alabama St. Apt 30, Bellingham, WA. Super Sweet Sales, Joel Nugent, 2005 Yew Street Rd., Bellingham, WA. Supreme Bean Coffee & Deli, Michael John Mulcahy, 3601 Consolidation Ave., Bellingham, WA. Thai Go & Noodle, Tg&Noodle Llc, 1 Bellis Fair Pkwy # 508, Bellingham, WA. The Jimney Sweep, James Robert Fusaro, 3962 Byron Ave Apt. 105, Bellingham, WA. The Sycamore Institute, The Sycamore Institute, 2106 B St., Bellingham, WA. The Wet Seal, Llc, #183, The Wet Seal, Llc, 1 Bellis Fair Pkwy Ste 404, Bellingham, WA. Tracy’s Cuts, Tracy Ann Grinspan, 1010 Harris Ave. Ste 103, Bellingham, WA. Treleonor Holdings Llc, Treleonor Holdings Llc, 520 Clover Ln., Bellingham, WA. Trulife, Inc., Trulife, Inc., Bellingham, WA. Victoria Charters Llc, Victoria Charters Llc, 623 S Harbor Loop Dr., Bellingham, WA. Wanida Thai Cuisine, Wanida Thai Llc, 1213 Dupont St., Bellingham, WA. Weeks Custom Carpentry Llc, Weeks Custom Carpentry Llc, 1315 Old Samish Rd., Bellingham, WA. Weichert Realtors Vanson Associates, Vanson Associates, Llc, 2900 Meridian St., Bellingham, WA. Whatcom Computer Solutions, Taylor Morse, 2618 Likely Dr., Bellingham, WA. Whatcom Symphony Orchestra, Whatcom Symphony Orchestra, 104 W Magnolia St Ste 315, Bellingham, WA. Wild Thicket, Wild Thicket Llc, 960 Lincoln St. Apt. 201, Bellingham, WA. Winton Farms, Vega Ventures, Llc, 2106 Pacific St., Bellingham, WA. Zach’s Landscape Supply Inc., Zach’s Landscape

Supply Inc., 4590 Meridian St., Bellingham, WA. Zmg Enterprises, Zachary Graham, 2625 Mt Baker Hwy, Bellingham, WA. Zytek Communications Corporation, Zytek Communications Corporation, 114 W Magnolia St. Ste 400-113, Bellingham, WA.

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. 5/18/15 to 5/22/15 Permits issued 1321 Dupont St., $15,000 For tenant improvement: finish shell commercial space in new mixed-use building for offices. Contractor PM Construction. Permit No.: BLD2015-00168. 5/19/15. 4060 Meridian St., $28,000 for tenant improvement: demo of non-bearing walls and change of occupancy from auto repair (S-1 & B) to retail. Contractor: Scoboria Construction Inc. Permit No.: BLD2015-00122. 5/19/15. 1030 Lakeway Drive, $400,000 for commercial: add new exterior entry vestibule, replace grocery store front and skylights. Contractor: The Franklin Corporation. Permit No.: BLD2015-00155. 5/20/15. 1701 Gladstone St., $95,000 for minor renovations to existing R1 residence and parking lot improvements. Contractor: Henifin Construction LLC. Permit No.: BLD2015-00069. 5/20/15. 4562 Meridian St., $563,808 for commercial: new 8,208-square-foot building for marijuana production and processing. Permit No.: BLD2015-00049. 5/20/15. 1015 Girard St., $50,000 for tenant improvement: repairs to existing building, renovate exterior, infill interior doorway between commercial space and residential unit and install new restrooms for future tenants. Permit No.: BLD2015-00147. 5/22/15. 1600 Kentucky St. C2, No calculated value listed for tenant improvement: establish occupancy for new distillery. Construction limited to plumbing/ mechanical/electrical. Permit No.: BLD2015-00029. 5/22/15. Pending applications 2900 Woburn St. 101, $120,000 for tenant improvement: interior alteration including new partitions, doors, casework and finishes: Alaska USA Federal Credit Union. Permit No.: BLD2015-00193. 5/18/15. 1111 Cornwall Ave., $40,000 for commercial: enclose open area in back of building. Permit No.: BLD2015-00202. 5/21/15. 915 Cornwall Ave., $132,000 for commercial: addition to de-mineralizer building to cover four water filters and provide freeze protection. Contractor: ComSteel LLC, Permit No.: BLD2015-00204. 5/21/15. AH Western Washington University, $10,000 for commercial: demo and rebuild portions of concrete floor and roof for access to install new transformer. Permit No.: BLD2015-00205. 5/22/15. Demolition permits 300 W. Laurel St., No value listed for demolition of chipper building at former GP site: Port of Bellingham. Permit No.: DEM2015-00020. 5/20/15. 300 W. Laurel St., No value listed for demolition of digester building. Permit No.: DEM2015-00019. 5/20/15. 5/25/15 to 5/29/15 Issued permits 1308 Northshore Drive, $80,000 for stormwater treatment facility including cast in place retaining walls for sand filters, (1) block retaining wall adjacent to access ramp & (1) concrete vault for filterra bioretention. Contractor: Razz Construction Inc. Permit No.: BLD2015-00101. 5/26/15. 205 Prospect St., $39,000 for shell improvement: interior and minor exterior improvements to prepare for future tenant. Includes new windows, doors, bathroom, electrical room, custodial room, and partitions. Contractor: Lookabill General Contracting Inc. Permit No.: BLD2015-00167. 5/28/15. 1 Bellis Fair Parkway 702, $75,000 for tenant improvement: remove and replace sales counters: Vitamin World. Contractor: Kuykendall Construction Services, Permit No.: BLD2015-00172. 5/29/15. 4120 Meridian St., $119,000 for tenant improvement: combine suites for new retail mattress

store. Contractor: Emerald Builders Inc. Permit No.: BLD2015-00140. 5/29/15. Pending applications 1 Bellis Fair Parkway 608, $100,000 for tenant improvement: retail store – Earthbound Trading Co. Permit No.: BLD2015-00206. 5/26/15. 1200 Lincoln St., $91,000 for commercial alteration: renovate clubhouse kitchen: Lakeway Mobile Estates. Contractor: Big Bison Builders Inc. Permit No.: BLD2015-00209. 5/27/15. 306 W Holly St., $90,000 for commercial: removal of existing roofing to roof deck. Install new plywood insulation and membrane roofing. Permit No.: BLD2015-00208. 5/27/15. 2101 Woburn St., $44,760 for commercial: racking installation in warehouse. Permit No.: BLD2015-00214. 5/29/15. 1155 N State St. 110, $12,000 for tenant improvement: add partition walls and kitchenette. Permit No.: BLD2015-00213. 1270 Barkley Boulevard, $532,741 for tenant improvement: new branch bank. Permit No.: BLD201500211. 5/29/15. Demolition permits None with a value of $10,000 or more for this date range. 6/1/15 to 6/5/15 Permits issued 2825 Roeder Ave., $29,578 for commercial: remove existing bur roofing assembly. Install R-30 rigid insulation over existing steel deck, install new TPO membrane roofing system. Contractor: Hytech Roofing Inc. Permit No.: BLD2015-00215. 6/1/15. 4355 Fuchsia Drive, $385,816 for construction of community building for future multifamily buildings, includes site improvements for phase 1. Contractor: Grandview North LLC. Permit No.: BLD2014-00433. 6/1/15. 2900 Woburn St. 101, $120,000 for tenant improvement: interior alteration including new partitions, doors, casework and finishes: Alaska USA Federal Credit Union. Contractor: HST Construction Inc. Permit No.: BLD2015-00193. 6/3/15. 2901 Squalicum Parkway Cn, $85,000 for tenant improvement: renovation of X-ray suite 3 on first floor. Contractor: The Franklin Corporation. permit No.: BLD2015-00067. 6/3/15. 600 S. State St., $160,000 for commercial: re-roof of existing condo building. Contractor: Esary Roofing & Siding Co. Inc. Permit No.: BLD2015-00226. 6/4/15. 2901 Squalicum Parkway NT, $219,754 for commercial: construct 10-foot tall by 20-foot diameter concrete emergency water reservoir (potable, not for fire flow); install new booster pump. Contractor: Tiger Construction LTD. Permit No.: BLD2015-00189. 6/4/15. 1400 12th St., $87,500 for new rooftop wireless communication facility: includes antennas within screen atop elevator penthouse and support equipment on proposed raised steel platform. Contractor: Sterling Telecom & Const. Inc. Permit No.: SGN2015-00073. 6/1/15. Pending applications 2517 Meridian St., $78,500 for commercial: new wireless communications facility: rooftop antenna array within 12” FRP shroud and equipment cabinets on ground within 8’6” wooden fence. Permit No.: BLD2015-00216. 6/1/15. 900 C St., $1,490,200 for commercial: install new Maple Street bulkhead as part of the Whatcom Waterway cleanup in phase 1 site areas remedial action. Contractor: American Construction. Permit No.: BLD2015-00218. 6/1/15. 110 Flora St., $25,000 for commercial: construct new service entry/exit off alley: First Baptist Church. Permit No.: BLD2015-00219. 6/2/15. 4333 Water Lily LP, $480,976 for new three-story multifamily building with three units. Permit No.: BLD2014-00510. 6/2/15. 4332 Water Lily LP, $673.790 for new three-story multifamily building with eight units. Permit No.: BLD2014-00503. 6/2/15. 4334 Water Lily LP, $673,790 for new three-story eight unit multifamily building. Permit No.: BLD201400502. 6/2/15. 4330 Water Lily LP, $673,790 for new three-story eight unit multifamily building. Permit No.: BLD201400501. 6/2/15.

RECORDS, PAGE 19

July 2015

RECORDS, FROM 18 4336 Water Lily LP, $661,119 for new three-story eight unit multifamily building. Permit No.: BLD201400500. 6/2/15. 4360 Fuchsia Drive, $580,469 for new three-story, four-unit multifamily building with attached garages. Permit No.: BLD2014-00469. 6/2/15. 4354 Fuchsia Drive, $580,469 for new three-story, four-unit multifamily building with attached garages. Permit No.: BLD2014-00468. 6/2/15. 4347 Fuchsia Drive, $640,924 for new three-story multifamily building: building 7. Permit No.: BLD201400461. 6/2/15. 104. E Maple St. 101, $26,000 for tenant improvement: new brewery production and tasting room in existing building: Gruff Brewery. Permit No.: BLD2015-00222. 6/3/15. 1616 Cornwall Ave. 111, $24,900 for tenant improvement: interior remodel of existing office. Permit No.: BLD2015-00229. 6/4/15. 100 W. Telegraph Road, $250,000 for tenant improvement: interior remodel of existing restaurant. Permit No.: BLD2015-00225. 6/4/15. 1 Bellis Fair Parkway 608, $10,000 for tenant improvement retail store: Earthbound Trading Co. Permit No.: BLD2015-00206. 6/5/15. 2005 Alpine Way 101, $85,000 for tenant improvement: new facility for growing and processing retail cannabis. Permit No.: BLD2015-00231. 6/5/15. 808 W. Bakerview Road, $2,540,968 for new fourstory multifamily building: building C. Permit No.: BLD2015-00150. 6/5/15. 812 W. Bakerview Road, $4,145,281 for new fourstory multifamily building: building B. Permit No.: BLD2015-00149. 6/5/15. 804 W. Bakerview Road, $2,350,733 for new fourstory mixed-use building: building A. Permit No.: BLD2015-00148. 6/5/15. 6/8/15 to 6/12/15 Permits issued 1 Bellis Fair Parkway, $45,000 for commercial alterations: interior demolition in preparation for new tenant and construction of new restroom. Contractor: Oracle Contracting Services. Permit No.: BLD201500236. 6/9/15. 1830 Cornwall Ave., $18,500 for commercial: remove wood shingles and replace with metal. Contractor: Rainshield Roofing Construction. Permit No.: BLD2015-00234. 6/9/15. 1111 Cornwall Ave., $40,000 for commercial: enclose open crawl space below office building. Permit No.: BLD2015-00202. 6/9/15. 1700 Carolina St., $451,543 for new commercial storage facility. Contractor: Pioneer Post Frame Inc., Permit No.: BLD2013-00393. 6/9/15. 2517 Meridian St., $78,500 for commercial: new wireless communication facility: rooftop antenna array within 12”FRP shroud and equipment cabinets on ground within 8’6” wooden fence. Contractor: Sterling Telecom and Const. Inc. Permit No.: BLD201500216. 6/12/15. 1155 N. State St. 110, $12,000 fort tenant improvement: add office partition walls and break room: WWU. Permit No.: BLD2015-00213. 6/12/15. 600 Birchwod Ave., $449,000 for tenant improvement: interior remodel of two-story office building for Walgreen’s infusion and respiratory services. Contractor: J E Dunn Construction Co. Permit No.: BLD2014-00579. 6/12/15. Pending applications OM Western Washington University, $25,000 for educational: add walls and doors to create two new offices at OM245. Permit No.: BLD2015-00232. 6/8/15. 2900 Yew St., $20,000 for educational: new portable classroom: Roosevelt Elementary. Permit No.: BLD2015-00239. 6/9/15.

The Bellingham Business Journal 110 Park Ridge Road, $20,000 for educational: new portable classroom: Fairhaven Middle School. Permit No.: BLD2015-00238. 6/9/15. 2713 Alderwood Ave., $20,000 for educational: new portable classroom: Shuksan Middle School. Permit No.: BLD2015-00237. 6/9/15. 1 Bellis Fair Parkway 504, $70,000 for tenant improvement: interior remodel for new restaurant in food court: Express Japan. Contractor: Precision Exhaust. permit No.: BLD2015-00223. 6/9/15. 4173 Meridian St., $20,000 for tenant improvement: minor renovation to coffee area, storage and removal of stage: Christ The King. Permit No.: BLD2015-00242. 6/10/15. 904 Potter St., $180,000 for tenant improvement: addition of second floor office and remodel of reception area and kitchen. Permit No.: BLD2015-00241. 6/10/15. 3033 Coolidge Drive, $2,500,000 for commercial: 5,882 square foot addition and remodel to existing elementary school. Permit No.: BLD2015-00164. 6/10/15, 800 Viking Circle, $2,734,041 for new clubhouse for student housing complex to include fitness center, offices, a model unit, lounges, reception, cafe and eight-unit apartment units (building type A). Permit No.: BLD2014-00273. 6/10/15. Cordata Park, $65,000 for installation of premanufactured bridge over a stream as part of new trail between Cordata Park and Cordata Elementary School. Permit No.: BLD2015-00145. 6/11/15. 870 Viking Circle, $2,377,074 for new 16-unit multifamily building (building type B). Permit No.: BLD2014-00240. 6/11/15. 860 Viking Circle, $2,377,074 for new 16-unit multifamily building (building type B). Permit No.: BLD2014-00239. 6/11/15. 830 Viking Circle, $2,377,074 for new 16-unit multifamily building (building type B). Permit No.: BLD2014-00238. 6/11/15. 820 Viking Circle, $2,377,074 for new 16-unit multifamily building (building type B). Permit No.: BLD2014-00237. 6/11/15. 810 Viking Circle, $2,377,074 for new 16-unit multifamily building (building type B). Permit No.: BLD2014-00234. 6/11/15. 865 Viking Circle, $4,307,747 for new 32-unit multifamily building (building type C) Permit No.: BLD2014-00233. 6/11/15. 855 Viking Circle, $4,307,747 for new 32-unit multifamily building (building type C) Permit No.: BLD2014-00232. 6/11/15. 807 Viking Circle, $4,307,747 for new 32-unit multifamily building (building type C) Permit No.: BLD2014-00229. 6/11/15. 1270 Barkley Boulevard, $72,288 for tenant improvement: new branch bank. Permit No.: BLD201500211. 6/12/15. 1420 N. State St., $115,000 for tenant improvement: establish new microbrewery and tap room in existing tenant space: State St. Brewery. Permit No.: BLD201500192. 6/12/15. 850 Viking Circle, $2,376,760 for new 16-unit multifamily building (building type B). Contractor: Dawson Construction Inc. Permit No.: BLD2015-00248. 6/12/15. Demolition permits 600 Birchwood Ave., $35,000 for commercial: interior demolition to prepare for tenant improvement: remove wall partitions, doors, ceilings, flooring, plumbing fixtures, and casework. Contractor: J E Dunn Construction Co. Permit No.: DEM2014-00060. 6/12/15.

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. Recently approved Clandestine Consulting, at 5410 Saxon Road Suite A, Acme, WA 98220, received approval on a new application to operate as a tier 2 marijuana producer. License No.: 414039. 6/18/15. Horseshoe Cafe, at 113 E. Holly St., Bellingham, WA 98225, received approval on an assumption to a license to be a direct shipment receiver (in WA only). License No.: 355757. 6/15/15. Perecan Farm, at 5357 Guide Meridian Road Suite C4, Bellingham, WA 98226, received approval on a tier 1 marijuana producer license. License No.: 413667. 6/4/15. WCCG Inc., at 5373 Guide Meridian Suite D-11, Bellingham, WA 98226, received approval on an assumption to a tier 2 marijuana producer license. License No.: 412567. 6/4/15. Sasquatch Cannabis Company, at 4911 EversonGoshen Road, Bellingham, WA 98226, received approval on a new license to operate as a tier 1 marijuana producer. License No.: 416561. 5/28/15. Taste of India, at 3930 Meridian St. Suite 107, Bellingham, WA 98226, received approval on a new license to serve beer/wine in a restaurant. License No.: 072758. 5/28/15. Steakhouse 9, at 115 E Homestead Boulevard Suite A, Lynden, WA 98264, received approval on a change of corporate officer to a license to serve spirits, beer and wine. License No.: 078517. 5/26/15. Mt. Baker Gardens, at 5497 Guide Meridian, Bellingham, WA 98226, received approval on additional fees to a license to operate as a tier 3 marijuana producer. License No.: 415917. 5/22/15. Pending applications Walgreens #16095, Walgreen Co.; Gregory D. Wasson, Mark A. Wagner, John A. Mann, Jason M. Dubinsky, applied for a new license to sell beer, wine and spirits at 125 Samish Way, Bellingham, WA 98225. License No.: 366155. 6/24/15. Renaissance Orchards, Cider Supply LLC; Christopher Rylands and Melinda L. Sweet applied for a new license to operate as a fruit and/or wine distillery at 5329 Olson Road, Ferndale, WA 98248. License No.: 419790, 6/24/15. The Everson Liquor Store, Dhamivd Enterprises LLC; Vardiner Singh Dhami; Dilprett Chhuhan, applied to assume a license from HVKA Sales LLC to sell beer and wine in a specialty shop at 103 W. Main St., 1B, Everson, WA 98295. License No.: 408971. 6/22/15. Mazatlan Sea Food and Grill, Lourdes A. Medina De Torres applied for a new license to sell beer and wine in a restaurant at 2012 Main St., Ferndale, WA 98248. License No.: 086085. 6/19/15. Structures Brewing, Structures Brewing LLC; James Alexander and Ryan Miller applied for a new license to operate a microbrewery at 1420 N. State St., Bellingham, WA 98225. License No.: 419642. 6/15/15. CHS Northwest, CHS Inc; Darin M. Ostendorf, Daniel Ostendorf, and Jay D. Debertin applied for a new license to operate as a direct shipment receiver (in WA only) and sell beer and wine in a grocery store at 102 Nooksack Ave., Nooksack, WA 98276. License No.: 362267. 6/12/15. CHS Northwest, CHS Inc; Darin M. Ostendorf, Daniel Ostendorf, and Jay D. Debertin applied for a new license to operate as a direct shipment receiver (in WA only) and sell beer and wine in a grocery store at 415 Depot Road, Lynden, WA 98264, License No.: 406184. 6/12/15. Gruff Brewing Company, Gruff Brewing Company LLC; Christopher Bierman, Jameson Longman, Eric Wight, applied for a new license to operate a microbrewery at 104 E. Maple St., Bellingham, WA 98225. License No.: 419679. 6/4/15. Ferndale Grocery Outlet, Grocery Outlet Inc; Eric J. Lindberg Jr., Steven Macgregor Read Jr., Michael James Ward and Charles Christian Bracher applied for a new

license to sell beer and wine and hold wine tastings at a grocery store at 1750 LaBounty Drive Suite A, Ferndale WA 98248. License No.: 361595. 6/3/15. CHS Northwest, CHS Inc.; Darin M. Hunhoff, Daniel R. Ostendorf, Jay D. Debertin, applied for a new license to sell beer/wine off premises and on at 102 Nooksack Ave., Nooksack, WA 98276. License No.: 362267. 6/3/15. CHS Northwest, CHS Inc.; Darin M. Hunhoff, Daniel R. Ostendorf, Jay D. Debertin, applied for a new license to sell beer/wine off premises and on at 415 Depot Road, Lynden, WA 98264. License No.: 406184. 6/3/15. Dana A. Driscoll, Dana Driscoll and Ross Charles Driscoll, applied for a new license to sell beer/wine off premises and on at 444 Front St., Lynden, WA 98264. License No.: 081117. 5/27/15. Recently discontinued licenses Samish Way Shell, at 125 Samish Way, Bellingham, WA 98225, had a license to sell beer and wine in a grocery store discontinued. License No.: 366155. 6/22/15. Ocean Grown Enterprises, at 6481 Portal Way Suite A, Ferndale, WA 98248, had a license to operate as a tier 2 marijuana producer discontinued. License No.: 413864. 5/30/15.

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. Michael J. Chapman, $12,358.36, 2150502940, 5/26/15. Michael A. Moberg, $132,396.64, 2150600087, 6/1/15. Schwiesow & Drilias Inc., $273,260.69, 2150600088, 6/1/15. Schwiesow & Drilias Inc., $210,517.27, 2150600089, 6/1/15. Schwiesow & Drilias Inc., $39,450.81, 2150600090, 6/1/15. Blaine Seafoods Inc., $5,287.33, 2150600092, 6/1/15. Arash Rabiee & Golnaz Barzegar, $127,468.98, 2150600941, 6/8/15. Border Tire LLC, $28,687.84, 2150601233, 6/9/15. Peter F. Wasley, $44,919.96, 2150601234, 6/9/15. Quality Gas LLC, $36,530.30, 2150601235, 6/9/15. Bryan W. Erickson, $22,767.53, 2150602147, 6/16/15. Christopher J. Walton, $27,271.55, 2150602148, 6/16/15. Hot Dogz and Kool Catz LLC, $9,324.57, 2150602410, 6/17/15. Parkway Chevron, $5,168.57, 2150602411, 6/17/15. Dyan M. Liden, $33,334.59, 2150602849, 6/22/15. George K. Tsiorvas, $439,169.65, 2150602850, 6/22/15. Kathy Miller, $10,682.53, 2150602851, 6/22/15. Daniel R. & Bryana N. White, $18,358.63, 2150603050, 6/23/15.

RELEASE OF FEDERAL TAX LIENS Kurt K. & Christina M. Stevens, $9,544.17, 2150502941, 5/26/15. Mike K. Decker, $164,353.07, 2150502942, 5/26/15. O’brien Resources USA Inc, $292,301.34, 2150502943, 5/26/15. Daniel W. Dubois, $18,122.84, 2150600093, 6/1/15. Robert D. Butler & Karen M. Hansey, $22,264.24, 2150600094, 6/1/15.

Nizar R. & Nazira Makan, $63,129.82, 2150600943, 6/8/15. Jones & Jones LLC, $24,396.76, 2150600944, 6/8/15. James S. & Carol J. Hagen, $14,760.09, 2150600945, 6/8/15. James S. Hagen, $27,258.49, 2150600946, 6/8/15. Reference Media Inc., $14,847.38, 2150602149, 6/16/15. Shahriar Bozorgzadeh & Kelly L. Evan, $199,626.78, 2150602150, 6/16/15. Pegasus Corporation, $15,707.96, 2150602852, 6/22/15. Pegasus Transportation Inc., $9,131.30, 2150602855, 6/22/15. Pegasus Corporation, $45,033.39, 2150602857, 6/22/15. Pegasus Transportation Inc., $19,321.50, 2150602860, 6/22/15. Pegasus Corporation, $25,639.55, 2150602861, 6/22/15.

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. Right Choice Carrier LLC, $8,428.72, Labor & Industries, 15-2-01126-6, 6/19/15. Kesslau Construction, $5,677.89, Labor & Industries, 15-2-01127-4, 6/19/15. Oso Valley Construction, $5,784.04, Labor & Industries, 15-2-01084-7, 6/12/15. Bellingham Autoworks, $7,304.83, Revenue, 15-201073-1, 6/11/15. Bakerview Lawn Care, $5,823.89, Revenue, 15-201059-6, 6/9/15. Copper Hog LLC, $6,467.72, Labor & Industries, 15-201053-7, 6/9/15. Cloud 9 Logistics, $9,123.67, Labor & Industries, 15-2-01054-5, 6/9/15. Freshlook Family Painting, $11,042.74, Revenue, 15-2-01056-1, 6/9/15. Blaine Marine Services 2000, $19,314.21, Revenue, 15-2-01057-0, 6/9/15. Rutledge Embroidery Corporation, $10,319.85, Revenue, 15-2-01058-8, 6/9/15. West Coast Pallets, $5,644.91, Labor & Industries, 15-2-01003-1, 5/28/15. West Coast Pallets, $10,116.06, Labor & Industries, 15-2-01001-4, 5/28/15. Cascade Natural Interiors, $15,713.96, Revenue, 15-2-00977-6, 5/27/15. K & B Lawn Care, $9,312.96, Revenue, 15-2-009407, 5/21/15.

BUSINESS BANKRUPTCIES

Whatcom County business bankruptcies filed in the U.S. Bankruptcy Court, Western District of Washington. Chapter 7 None reported Chapter 11 Dennis LeRoy Scheffer, estimated asset range: $1,000,001 to $10 million; estimated liabilities: $1,000,001 to $10 million; Case no.: 15-13327-MLB. Date filed: 5/29/15 Chapter 13 None reported

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MARINE, FROM 16

believe there’s a good market for our products.” Even the 105-foot boats for the King County Ferry District barely fit in All American Marine’s current warehouse. There’s just a few feet of space on each side of the boat between its hull and the building’s walls. All American Marine had to buy narrower scissor lifts to work on the boats. Neil Turney, CEO of Fairhaven Shipyard’s parent company Puglia Engineering, said in a press release that a new pier and improved site layout would allow Fairhaven Shipyard to expand it’s services and capabilities. To fund the project, The Port of Bellingham plans to apply for $1 million in Whatcom County Economic Development Investment Program grants, $2 million in county Economic Development Investment loans, and state Community Economic Revitalization Board grants. One of the county’s stated purposes for Economic Development Investment funds is to assist private sector business by making grants and low interest loans to Whatcom County public agencies. “We think it’s a good match and a good use for what those funds are intended for,” said Mike Hogan, public affairs administrator for the Port. If the Port doesn’t get the loan or grant money, a contingency in the memorandum of understanding allows it to walk away from the deal. Under the planned deal, the Port of Bellingham would pay for site preparation and demolition of a building on the site of the future All American Marine warehouse. All American Marine would pay for tenant improvements to the new warehouse, which will be a pre-engineered building. All American Marine would repay the cost of the building overtime through a 25-year lease with the Port. The deal is also contingent on Fairhaven Shipyard agreeing to vacate its current space. “There are a lot of contingencies and there are a lot of unknowns in this project,” said Shirley McFearin, Port of Bellingham’s director of real estate, at a port commission meeting.

The Bellingham Business Journal customers who want their cars serviced while they’re traveling out of the airport, Taylor said. Master Auto Tech is offering free parking and airport shuttle service for customers.

Bellingham wins governor’s Smart Vision award for downtown plan Gov. Jay Inslee announced that Bellingham is the recipient of the Governor’s 2015 Smart Vision Award for its comprehensive planning work for the Downtown Bellingham Plan. Judges said the Downtown Bellingham Plan was the broadest, most inclusive look at downtown issues they had seen, according to a press release from the city. The 52-page plan for downtown went into effect on September 22, 2014. The award will be presented on June 26, 2015 at the Association of Washington Cities annual conference in Wenatchee. The Governor’s Smart Community Award program recognizes achievements by local leaders who promote smart growth, planning and projects that

contribute to quality of life in Washington. The program is in it’s 10th year.

Holiday Inn breaks ground near airport Developers broke ground on a 153-room Holiday Inn across the street from the Bellingham International Airport last week. The new hotel will include more than 7,500 square feet of conference rooms, meeting space, a restaurant and bar, and surface and underground parking. The hotel is being built on about 3.8 acres owned by the Port of Bellingham on Mitchell Way, just south of the Pacific Cataract Laser Institute near the airport’s commercial terminal. Construction should take about 16 months and is valued at $20 million, according to a press release from the port. The Holiday Inn is the largest in a wave of new hotel projects in Bellingham that began with Marriot SpringHill Suites and La Quinta, which opened in late 2013. Dan Mitzel, co-managing member of Bellingham HI, the developer, and part owner of Hotel Services

Group, which will manage the hotel, said the hotel will pursue conference business. “We intend to create a market for inbound midsize group conference business that is not being pursued to any significant degree by the existing hotels that are located in Bellingham,” he said in a press release. “Bellingham needs to become a destination for out-of-area conference business.”

WCC signed on as a High School 21+ site because college leaders recognized a local need for the program. By 2019, two-thirds of all new jobs in Washington state will require at least one year of college. But about 10 percent of adults in Whatcom County and 12 percent of

adults in Skagit County– nearly 28,000 people–do not have high school diplomas, the press release said. Classes will begin in the fall and enrollment is open now. For more information or to enroll, contact WCC’s Transitional Learning Program at 360-383-3060.

WCC offers program for adults to earn high school diplomas Whatcom Community College is offering a new program for adults who didn’t graduate from high school but want to earn a diploma. WCC is one of 20 community colleges in the state to offer a program called High School 21+, which is a high school completion programs tailored for adult learners. The program has features such as recognition and credit for competencies gained through life experiences, $25 per quarter tuition, and convenient day, evening and online classes, according to a press release form the college.

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July 2015

Business Toolkit

Obstacles to engagement: everything counts Assuming that we are all in agreement that engaged employees are preferable to ones who are not, let’s take a brief look at actions we take as managers that actually discourage the engagement we say we want. If I have heard this once I have heard it a hundred times from a potential client in an initial meeting: “Mike, what I am looking for is more leadership from my people.” Notwithstanding that this statement is often made thoughtlessly the first time around, my standard response when I hear it is, “Then what we need to do is determine what you and your managers are doing to discourage leadership.” Silence follows. Once everyone starts breathing again we can begin a fruitful dialogue. The truth of my experience is that when senior managers strongly suggest they are interested in more leadership, they are muddling leadership with engage-

ment and their real interest is more engaged employees. If it is really more leadership they want, we’ll have a further conversation about how much control they are willing to give up. In either case the task becomes one of working with both senior and midlevel managers to distinguish how they may be unwittingly discouraging the very engagement they profess to be seeking. Much of what managers do to discourage engagement will have a reasonable explanation in the minds of the managers and will look like blatant chicanery in the eyes of employees. Some cases in point: • “Our manager says she wants us to speak our minds and offer ideas and suggestions. When she holds a meeting she tells us to hold our questions and comments to the end of her presentation. Then as she gathers her things to leave she asks if we have any questions.” • “Senior managers tell us we can contact them directly; when we do they ask our managers why we are bringing this matter to senior management attention

rather than handling it more locally.” • “The only way for me to make more money in my current position is to create opportunities for overtime. The easiest way to do that is to slow down so my work takes extra time and then I get labeled as a mediocre to poor performer.” • “I can easily complete my assignments most weeks in 30-35 hours; I am good at what I do. There’s no real incentive to perform at a higher rate because every time I finish early my manager adds work from some of the poorer performers.” • “I’ve offered five suggestions for improvement in the past year and not received a positive response on any of them. Managers promised they would get back in writing on all suggestions within 72 hours of receipt. I’d just be happy with that.” When confronted on this behavior, managers will often respond that it was a one-time occurrence, they were pushed for time, it made sense when they took the action, etc. Now hear this, all ye who would manage: The basic employ-

ment relationship is predicated on a mutually understood imbalance of power. Mike You have more Cook than they do. On The Managers & majority of Employees employees, no matter what the organization, are keenly attuned to this imbalance and are on constant alert for any sign that their status in the “royal household” is in jeopardy. This is to say that if you make a sudden move to scratch your head don’t be surprised when they duck. This underlying and unspoken unholy understanding is only made worse by our failure as managers to acknowledge the truth of it. In my experience as a manager

I have directly said to employees, “I seek your partnership. You are not worth much to me if our relationship is based in fear. Unless I can trust you to speak up when there is something to be said I will be essentially working alone. Whatever we need to do to work through whatever fear you have of me or managers in general I’ll do it. I am not prepared to hear after the fact that you knew something and didn’t express it.” Not everyone who received this offer accepted but everyone who accepted has not been disappointed. Nor have I. Take a look at the bulleted items above and examine yourself not just by reading the examples but by checking yourself against the spirit of the message. Can you come up with your own list of unconscious behaviors that may be a disincentive to engagement?

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

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