Tri-Cities Area Journal of Business -- January 2019 by Tri-Cities Area Journal of Business/Senior Times

January 2019

Volume 18 • Issue 1

Kennewick public hospital board shifts its focus BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

Health

Grace Clinic sees uptick in patient volume Page 11

Real Estate & Construction

Kennewick coffee roaster to expand Page 21

Legal & Taxes

Legal Aid honors attorneys Page 39

he Said It

“This is a homegrown thing. There’s nothing even close to this on the West Coast.” - Alex Tasama, co-owner iPlay Experience

Page 9

No longer tasked with operating a large hospital, leaders of the Kennewick Public Hospital District are focusing their sights on how best to serve the community going forward. “We will try to make the most impact we can with the money we have,” said Marvin Kinney, commissioner and board president for the Kennewick Public Hospital District. “And that’s going to mean partnering and being innovative.” The district collects about $1.3 million a year through property taxes, with about 80 percent of this going to the new owners of Trios Health. Tennessee-based RCCH HealthCare Partners bought Trios and Lourdes Health in Pasco last year, but it merged with another health care system called LifePoint Health months later in November and is now known by this name. After the payment to LifePoint what remains for the district totals about $260,000 a year. “The purpose of the district is to provide health care services for the citizens of the district, which is a large part of Benton County. Its mission has been that for 50 some odd years now, and that hasn’t changed,” said Leland Kerr, superintendent of the Kennewick Public Hospital District. “We’re done running a hospital but we still have a district,” Kinney said. The sale of the hospital system closed in August 2018 and since then, the board has been focusing on tying up loose ends. The process didn’t end neatly on the day of the sale, as the district had to unwind issues with pensions, workers’ compensation claims and indemnifications. “We have to redo our policies and take out everything that had to do with credentialing of doctors and procedure. It’s taken us quite a while to get to this point. There was a lot of unknowns and things that popped up that we didn’t expect would come out of the bankruptcy,” Kinney said. “We were kind of in limbo. But now we’re kind of winding to where we know everything and we can go forward.” uHOSPITAL, Page 16

The Tri-City housing market is beginning to stabilize into a more sustainable trend of incremental growth due to emerging market forces, said Jeff Losey, executive director of the Home Builders Association of Tri-Cities. However, this development off Gala Way in Richland near Badger Mountain is proof that housing projects haven’t dried up.

Hot Tri-City housing market showing signs of slowing down BY LAURA KOSTAD

for Tri-Cities Area Journal of Business

The Tri-Cities’ red-hot housing market is beginning to show signs of cooling. After a multi-year trend of rapidly appreciating home values, the construction labor force is stretched thin, interest rates are on the rise and building material prices are up due to new tariffs. But that’s not to say new housing projects have ground to a halt. The residential home market trend continues to point up. The number of single-family home permits issues in 2018 in Benton and Franklin counties increased 1.7 percent over the previous year to 1,466. The modest percentage increase mirrors the trend from four years ago when year-

over-year growth was 2 percent in 2014. The housing boom hit the area in 2016, with 23 percent growth over the previous year. The number of single-family home building permits issued (excluding manufactured homes) in 2018 in Benton and Franklin counties totaled more than $449 million in new construction, up from last year’s $421 million. An additional 133 manufactured homes permits were issued in 2018, valued at about $9 million. The building permit data comes from the Home Builders Association of TriCities, which tabulates the number of single-family home permits issued in the two counties. uHOUSING, Page 4

Contractors squeezed by higher costs while demand remains strong BY JENNIFER L. DREY

for Tri-Cities Area Journal of Business

Increased costs for materials and labor, coupled with national tariffs and state regulations are presenting challenges and squeezing margins for general contractors in the TriCities as demand for construction remains heavy, according to those in the industry. Nationally, the costs of all inputs to construction increased by 4.9 percent between November 2017 and November 2018, according to U.S. Bureau of Labor Statistics data. The figure refers to construction items included in every project, as well as materials consumed by contractors, such as diesel fuel, and services like trucking and equipment leasing. “People think we’re making more, but

more is going out,” said Dennis Poland, president of Kennewick-based Ray Poland & Sons. Prices on certain materials have moderated in recent weeks, but construction firms still are likely to pay higher prices on other materials in the coming year due to the 25 percent tariff on steel and 10 percent tariff on aluminum implemented earlier this year, according to Ken Simonson, chief economist at the Associated General Contractors of America. Steel and aluminum are both used heavily in construction. “It appears the tariffs imposed on steel, aluminum and thousands of Chinese imports are starting to effect the cost of many items used in construction,” Simonson said. uCONSTRUCTION, Page 30

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Tri-Cities Area Journal of Business • January 2019

Vintage video games on tap at Kennewick bar set to open in March Level Up to combine bar with arcade above Porter’s Real Barbecue

Richland and was an original owner of the yogurt shop Finnegan Frost before selling it to the owners of Ethos Bakery. In a true blast from the past, original This is Miller’s first partnership with video game machines from the ’80s and Gary and Julie Grant, who share ownership ’90s will soon be available at an arcade-bar of half of the business. Miller once worked in Kennewick. with Gary at Gesa Credit Union and “It hits over a lot of generations for play- approached him about securing financing ing these things. It’s a wide spectrum of for the project. people as far as who we can cater to,” said Miller said Gary offered to back the Michael Miller, one of the co-owners of project as a partner, and Level Up Arcade Level Up Arcade Bar, Bar was soon powered opening in early up. “We are so chain spring at 1021 N. “I grew up playing (restaurant)-driven Columbia Center video games and Blvd., Suite 210, in here, I’m hoping scrounging every Kennewick. quarter I could find to to change that The bar will fill the plug into our local culture.” empty space above arcade (in Moses Lake Porter’s Real it was a gas station) - Michael Miller, co-owner during the ’80s,” Gary Barbecue, once home Level Up Arcade Bar said. “I also put myself to Fire Artisan Pizza and, most recently, through college barFrankenBurger’s Fry tending and it was the Lab. It will share a parking lot with Proof most fun I have ever had at a job. Having Gastropub, which Miller also owns. an arcade bar is absolutely the best of both Level Up will be open late nights, serv- worlds for me. When Michael approached ing drinks and offering entertainment with me and said that he was thinking about 20 to 25 vintage games like “Ms. Pac- opening a barcade, I immediately said, Man,” “Frogger,” “Donkey Kong” and ‘Yes, I’m in! How much do you need?’ ” “Galaga.” These aren’t revamped versions The build-out of the bar is being done by of the originals; these machines are the the building’s owner and began in midoriginals. December. The 2,800-square-foot space “A guy we found on eBay provides has a targeted opening of mid-March. games for concepts like these,” Miller said. Level Up will feature a full bar, includ“He has about 150 games in his collection ing 24 beers, with rotating taps and wine. and he will deliver and set them up for Due to the tenant agreement with Porter’s, you.” Level Up cannot sell food but will allow it Level Up also will install games from to be brought in. the ’90s, with old-school favorites like This could mean scheduled deliveries “Mortal Kombat,” “X-Men,” “NBA Jam” across the parking lot from Proof and “NFL Blitz.” Gastropub, benefiting both businesses. The arcade-bar expects to hold a nightMiller also owns Stick+Stone in BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

Michael Miller, co-owner of the new Level Up Arcade Bar, which is visible outside the window above Porter’s Real Barbecue at 1021 N. Columbia Center Blvd. in Kennewick, said the new arcade-bar will feature vintage video games from the ’80s and ’90s. It’s expected to appeal to a wide range of generations when it opens in early spring. (Courtesy Level Up Arcade Bar)

club license for alcohol sales and will be a 21-and-over establishment most days, but owners hope to offer a family day Sunday afternoons to allow those of all ages to experience classic versions of games like “Teenage Mutant Ninja Turtles,” “Ivan Stewart’s Super Off Road” and “Tapper.” There also will be some newer games, pinball and skee ball available, but it’s not going to be like some national establishments that include rows and rows of video games. “Dave and Buster’s is more ticket-centered where you’re trying to win prizes, but this is more about the style of the era where you use a quarter or a token to play for fun,” Miller said. Owners have invested about $150,000 into the bar’s opening, including all the games. Miller expects to cross train some current Proof employees to work at Level Up, and figures seven to 10 people will be employed in all. The bar will be open from 4 p.m. to 2 a.m. weekends, and likely from 4 to 11

p.m. weekdays. Family days would be from noon to 4 p.m. Sundays only. The term “barcade” is trademarked and cannot be used to describe the Kennewick business, but the hope is that Level Up will provide more than a typical watering hole where the focus is on the drinks only. “This is kind of like, ‘Let’s go have a drink, but also have fun, be social, have a date night,’ ” Miller said. Level Up will feature décor highlighting ’80s and ’90s pop culture icons like Hulk Hogan, Mr. T and the Gremlins. Drinks will coincide with this theme as well.” Miller can see Level Up from his restaurant just south of the building and has big expectations for bringing a new concept to the Tri-Cities. “I’d been looking at that space since we opened, trying to figure out what could go there. It has great visibility. We are so chain (restaurant)-driven here, I’m hoping to change that culture,” he said.

Tri-Cities Area Journal of Business • January 2019

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UPCOMING February Focuses: • Manufacturing • Diversity March Focuses: • Hospitality • B2B

CORRECTION Tumbleweird patrons have pledged a total of about $300 to support the indie publication. The wrong information was printed in December on page 8. The Tri-Cities Area Journal of Business, a publication of TriComp Inc., is published monthly and delivered at no charge to identifiable businesses in Pasco, Richland, West Richland, Kennewick, Prosser and Benton City. Subscriptions are $27.10 per year, including tax, prepayment required, no refunds. Contents of this publication are the sole property of TriComp Inc. and can not be reproduced in any form without expressed written consent. Opinions expressed by contributors and advertisers do not necessarily reflect the opinions of staff, other contributors or other advertisers, nor do they imply endorsement by staff, contributors or advertisers. Every effort will be made to assure information published is correct; however, we are not liable for any errors or omissions made despite these efforts.

HOUSING, From page 1 “It was a positive year for 2018,” said Jeff Losey, HBA’s executive director. Pasco once again led the four cities with 480 single-family home permits issued in 2018, a 2.3 percent increase over the previous year. Many new lots continue to become available off Road 68 and Burden Boulevard, as well as Road 100, where Losey said the city of Pasco has “a lot of plans … in getting new properties inside the (Urban Growth Area) and developed.” Pasco continues to generally be the least expensive and easiest of the four cities to put in homes, owing to its soil being very workable, Losey said. He said there’s more river rock on the south side of the river to contend with. Kennewick recorded the biggest yearover-year growth in 2018 in home permits with a 51 percent increase over the previous year. That translates to 315 singlefamily home permits issued, with the majority of the new homes going up in the burgeoning Southridge area at the south end of the city. Now that much of Southridge’s critical commercial infrastructure is in place, housing has quickly followed, with plentiful development opportunities along the Bob Olson Parkway and beyond, Losey said. Richland recorded 323 single-family home permits last year, an uptick of 10 percent over the previous year. Losey said the major growth area for Richland will continue to be the developing Badger Mountain South community. West Richland was the only city of the four trending down in 2018, with 65 permits filed in 2018, versus 102 in 2017, a 36

2018 Single-family home permits Permits Issued

Percent Change

Housing Value

315 480 323 65

51% 2.3% 10% -36%

$100.4 million $127.5 million $101.6 million $22.9 million

1,466

1.7%

$449.4 million

Kennewick Pasco Richland West Richland Tri-City area total*

*Includes all city, county single-family home permits in Benton and Franklin counties

(Source: Home Builders Association of Tri-Cities)

percent decrease. The number of single-family home permits dipped in unincorporated areas. Franklin County saw an 8.6 percent decrease, while Benton County saw a 39 percent decrease. The general slowdown across the region compared to past years is due to multiple developing market pressures, Losey said. “Everything has started to cool down just a little bit as interest rates started going up over 2018,” he said. In addition, it’s become increasingly difficult for the construction sector to keep up with the relentless demand, Losey said. “We currently have a shortage of construction workers and an aging work force,” he said. The rising cost of land and building materials also have affected home prices across the Tri-Cities. “Whatever the national mood is, the national mood does tend to affect us to a

certain degree,” he said, adding that the rapid increase in Tri-City home values of the past few years was not a sustainable trend. “Demand has remained the same as prices continued to rise,” he said, which has had the negative repercussion of potentially pricing some buyers out of the market. “If you’re buying and selling in the same market, it’s not much of an advantage.” “The more homes that sell in hours rather than days and weeks makes the market too hot,” he said. Losey views the cooldown as a good thing, “so that home prices don’t appreciate too fast.” “Prices will still grow, but won’t grow at such a rate that will be unattainable for most people to keep up with those price increases,” he said. The average price of Tri-City homes sold in 2018 was $294,900, according to data from the Tri-City Association of Realtors, up from the previous year’s average of $265,100, an 11 percent increase. The median home sale price last year was $275,000, up from $246,600 the previous year. The total number of homes sold in 2018 totaled 4,427, up 23 homes from the previous year. Despite the new challenges creeping up in the market, Losey pointed out that the number of single-family home permits filed in 2018 still surpassed the number filed each year for the past five years — from 1,024 in 2013, to 1,466 in 2018, is a 43 percent increase. Looking ahead to 2019, Losey said he is “cautiously optimistic.” “We’re seeing that, starting out in 2019, it’s a little flatter,” he said of single-family home permit filings. He said based on the preliminary numbers, 2019 is starting off resembling 2017, which he explained might be another sign of the market leveling off. “There are a lot of question marks surrounding the world economy,” Losey said. “We’re still not sure what’s going to happen with interest rates and how many more times they’re going to raise over 2019. But if 2019 continues like it did in 2018, then there certainly could be more interest rate hikes.” Overall, though, Losey said he’s confident the market cooldown “should bode well for the entire Tri-Cities. With demand not exceeding supply, it will give the lots and the land the opportunity to catch up to what’s out there.”

Tri-Cities Area Journal of Business • January 2019 uBUSINESS BRIEFS 1,000 federal workers in state apply for benefits

The state’s Employment Security Department has received unemployment benefits applications from about 1,000 workers since the beginning of the partial government shutdown last month. The applications include furloughed workers and those who were laid off for other reasons. Federal workers furloughed due to the shutdown may apply for unemployment benefits while they wait to return to their jobs. “Washington stands ready to assist federal workers in our state,” said Employment Security Department Commissioner Suzi LeVine in a news release. “Just like other workers who are unemployed through no fault of their own, federal workers have the unemployment safety net to help them through this difficult time.” More than 73,000 federal employees worked in Washington as of the first quarter of 2018. Federal employees may apply for benefits at ESD.wa.gov or by phone at 800318-6022. The day they should call depends on the last digit of their Social Security number. Due to the shutdown, furloughed workers should be prepared to provide verification of their wages when requested because Employment Security Department may be unable to reach their employers to verify their wages. Valid documents could include copies of pay stubs or W-2 forms.

The agency has posted a web page with more information for federal employees affected by the shutdown. As required by law, workers who receive back pay should plan to repay any benefits received.

Hanford visitors center open during shutdown

The Hanford visitor center is remaining open to the public and will continue to provide visitor services during the federal government shutdown. The visitor center for the Manhattan Project National Historic Park at 2000 Logston Blvd. in Richland is operated through a Department of Energy contract. National Park Service social media and websites are not being monitored or updated and many NPS parks have been closed to the public during the shutdown.

Kennewick Sears store to close in March

The Kennewick Sears store steered clear of three national closure lists this year but its luck has run out. The most recent list of 80 store closures includes the Columbia Center mall’s Sears. The closure also affects Sears Auto Center, which will close in January, according to the company. All affected employees were notified Dec. 27. The stores will close in late March with liquidation sales beginning in about two weeks. The company filed for bankruptcy in Oct. 15. The closures aim “to accelerate (Sears’)

strategic transformation and facilitate its financial restructuring,” according to release from the company. The Kennewick store is the only Washington store included on the most recent list, though the closure list released in January included 39 stores, including Shoreline, Federal Way and Chehalis. An October closure list included 142 stores, including Puyallup. A November closure list including 40 stores didn’t name any Washington stores. The 132-year-old Sears opened in Minneapolis as the R.W. Sears Watch Co. when there were only 38 states and Grover Cleveland was president. In 1893, the corporate name of the firm became Sears, Roebuck and Co., according to Sears archives.

State unemployment down; Benton, Franklin increases

Washington nonfarm employment increased by 5,100 jobs in November, according to the federal Bureau of Labor Statistics. Private sector jobs increased by 6,400 while the public sector lost 1,300 jobs. Washington’s preliminary seasonally adjusted unemployment rate for November was 4.3 percent. That is just slightly less that 4.7 percent in November the previous year. Overall, for the same 12 months, 103,500 jobs were added statewide. Benton County had a 5 percent unemployment rate in November compared with 4.4 percent the month prior and 5.1 percent in November 2017. Franklin

County sat at 5.8 percent for November, compared with 4.6 percent in October and 6 percent for November 2017.

Revamped Playground of Dreams re-opens to kids

Children can now to return to play in a portion of the Playground of Dreams at Columbia Park in Kennewick, thanks to a $75,000 donation by the Tri-City Water Follies Association. The original nearly 20-year-old wood structure was torn down last fall to make way for a modern, safer and inclusive playground. The donation helped complete the first phase, which includes a hydroplane toy, and kicks off a capital campaign to raise $482,000 to complete the second half of the project. When complete, the new playground will include features representing iconic Tri-City landmarks such as the cable bridge, lighthouse and Lampson crane, in addition to a musical instrument, zip track and climbing features. Components will be connected by ramps and will accessible to children of all abilities, including those in wheelchairs. Individuals can support the rebuild by buying $10 wristbands, $100 commemorative lapel pins, and $250 “dream medals” that can be inscribed with a name or personal message and will be affixed to the pillars at the playground entrance. They are available at the Southridge Sports and Events Complex and Kennewick Community Center, and online soon at KennewickRecreation.com.

Tri-Cities Area Journal of Business • January 2019

DATEBOOK

VISIT TCJOURNAL.BIZ AND CLICK ON EVENT CALENDAR FOR MORE EVENTS

JAN. 17

• Ag Hall of Fame: 5:30 p.m., Red Lion Hotel, 2525 N. 20th Ave., Pasco. Tickets: 509-547-9755. • Community Lecture Series “Washington on Wheels: Odd and Innovative Transportation Ideas from the Evergreen State”: 7 p.m., Mid-Columbia Libraries, 1620 S. Union St., Kennewick.

JAN. 18 – 20

• Tri-Cities Sportsman Show: 1 – 7 p.m. Jan. 18; 10 a.m. – 6 p.m. Jan. 19; 10 a.m. – 5 p.m. Jan. 20, TRAC, 6600 Burden Blvd., Pasco. Visit: shuylerproductions.com/tricities.

JAN. 24

• Risk Management 101 for Small and Mid-Sized Farms: 1 – 5 p.m., Richland Public Library, 955 Northgate Drive, Richland. Register: seattletilth.org.

JAN. 29

• Prosser Chamber Member Luncheon: noon – 1 p.m., Jeremy’s 1896 Public House, 1232 Wine Country Road, Prosser. RSVP: 509-786-3177.

• Prosser Chamber Community Award Banquet: 5:30 – 9 p.m., Walter Clore Wine & Culinary Center, 2140 Wine Country Road, Prosser. Tickets: 509-786-3177.

FEB. 6

JAN. 30

• Women in Business Conference: 8 a.m. – 5 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Register: tricityregionalchamber.com. • Tri-City Regional Chamber ATHENA Awards Luncheon: noon – 1:30 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Register: 509736-0510.

FEB. 5

• Agricultural Safety Day: 8 a.m. – 5 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Register: gishab.org/events.

• West Richland Chamber Monthly Luncheon: 11:30 a.m. – 1 p.m., Sandberg Event Center, 331 S. 41st Ave., West Richland. RSVP: 509967-0521.

FEB. 11

FEB. 7

FEB. 11 – 14

• Innovation Pop-Up: 12:30 – 5 p.m., Fuse SPC, 723 The Parkway, Richland. Register: bit.ly/tcpopup.

FEB. 8

• The Mane Event: 6 – 9 p.m., Princess Theatre Green Room, 1226 Meade Ave., Prosser. Tickets: historicprosser.org.

FEB. 9

• The Best is Yet to

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Come fundraising gala, benefiting Mid-Columbia Arts: 7 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Tickets: mcaf2019.givesmart.com. • Pasco Chamber Membership Luncheon: 11:30 a.m. – 1 p.m., Red Lion Hotel, 2525 N. 20th Ave., Pasco. RSVP: 509547-9755.

• Ask the Experts “Sales/ Customer Service”: 3:30 – 5 p.m., Tri-Cities Business & Visitor Center, 7130 W. Grandridge Blvd., Kennewick. RSVP: 509-7360510. • Washington Wine Industry Foundation Party & Auction: 5:30 – 10 p.m., Toyota Center, 7000 W. Grandridge Blvd., Kennewick. Tickets: wawinegrowers.org.

FEB. 14

• Washington Winegrowers Convention & Trade Show: Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Tickets: wawinegrowers.org.

• Procurement Power Hour “Minority-Owned Businesses”: 8:30 – 9:30 a.m., Tri-Cities Business & Visitor Center, 7130 W. Grandridge Blvd., Kennewick. RSVP: 509-7360510.

FEB. 13

FEB. 19

• Tri-Cities Regional Economic Outlook: 7:30 a.m. – 1:30 p.m., TRAC, 6600 Burden Blvd., Pasco. Register: tridec.org.

• Tri-Cities Hispanic Chamber Networking Luncheon: 11:30 a.m. – 1 p.m., Red Lion Hotel, 2525 N. 20th Ave., Pasco. RSVP: 509-542-0933.

Tri-Cities Area Journal of Business • January 2019

Farm Bill could clear way for state’s industrial hemp growers State lawmakers expected to tackle how state regulates industry to improve options for farmers BY MICHELLE DUPLER

for Tri-Cities Area Journal of Business

A federal Farm Bill passed by Congress and signed by President Trump in December opens the door for legal industrial hemp farming nationwide, but it remains to be seen exactly how the crop will be regulated as a legal commodity in Washington state. The Washington State Department of Agriculture has said it will continue to allow industrial hemp farming under current limited regulations until the Legislature chooses to amend the law in light of federal action. “Federal law changed the way the federal government looks at hemp. It could open the door for hemp production in the state if the Legislature wants to move that way,” said Chris McGann, a spokesman for the Department of Agriculture. Like marijuana, industrial hemp is derived from the cannabis plant. The distinction is that industrial hemp by state and federal law must contain less than 0.3 percent THC — the main psychoactive ingredient in marijuana — by dry weight. Washington state law defines marijuana as all parts of the cannabis plant with a THC concentration greater than 0.3 percent, according to the Liquor and Cannabis Board. McGann noted that Washington doesn’t allow for a grower to produce

uBUSINESS BRIEF Kennewick schools to hold community meeting about $125 million bond

Kennewick School District will hold an informational meeting for community members to learn more about the $125 million school bond. The meeting is at 6:30 p.m. Jan. 16 at the Administration Center at 1000 W. Fourth Ave. in Kennewick. Superintendent Dave Bond will present information about the bond projects, tax rates and changes to school fund-

both industrial hemp and cannabis plants for legal marijuana sales. In fact, the state requires a buffer zone of four miles between the two types of crops to ensure no cross-pollination. Industrial hemp typically is grown for fiber and used in products like rope, cloth, paper, animal bedding and construction materials. Hemp oil also may be used in food and cosmetics, according to the Department of Agriculture. Federal law has included cannabis as a whole — including industrial hemp — on the class of Schedule I narcotics, making it illegal to produce. But federal and state policy toward industrial hemp have been evolving over the past several years, first with the 2014 Farm Bill, which authorized states to set up pilot programs to license growing of industrial hemp crops, according to a news release from Senate Majority Leader Mitch McConnell, R-Kentucky. After the 2014 federal legislation, Washington state started a pilot program allowing licenses to grow and process hemp to research the cultivation and marketing of the crop, according to the Department of Agriculture website. The pilot program was authorized by the Legislature in 2016 and currently licenses two farms that grow hemp; three combined growers, processors and marketers; and four additional growers and marketers.

ing. He also will be available to answer questions. The $125 million school bond consists of six school construction projects, including replacing Kennewick High, adding classrooms and making athletic improvements at Kamiakin and Southridge high schools, replacing Amistad Elementary, replacing or remodeling Ridge View Elementary, and adding a new elementary school. More information about the bond is available at www.ksd.org/bond. Ballots will be mailed to voters on Jan. 23. The election is Feb. 12.

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In April 2018, McConnell, along with Senators Rand Paul, R - K e n t u c k y, Ron Wyden, D-Oregon, and Jeff Merkley, D-Oregon, introRep. Brian Blake duced the bipartisan Hemp Farming Act of 2018 to remove industrial hemp from Schedule I and define it as an agricultural commodity. That legislation was included as a provision in the broader Farm Bill and passed as law last month. “So what exactly will this legislation do? The Farm Bill we passed … both legalizes hemp as an agricultural commodity and removes it from the controlled substances list,” McConnell said in a news release. “It gives states the opportunity to be the primary overseers of hemp production. It also allows hemp researchers to apply for competitive federal grants from the U.S. Department of Agriculture and made hemp eligible for crop insurance. Together, these features will encourage new opportunities for struggling farmers and their families. New products for use in construction, health care and manufacturing. And new jobs in a broad range of fields.” Rep. Brian Blake, D-Aberdeen, chairman of the Washington State House Agriculture & Natural Resources Committee, said he expects to see a bill in the 2019

legislative session tackling changes in how the state regulates industrial hemp and creating more opportunities for farmers. “I am hoping this state can move forward on industrial hemp,” Blake said. “I have been in discussion with some folks. I am hopeful we can move a bill this session that improves the conditions for hemp growers.” Although no bill regarding industrial hemp had been pre-filed, and Blake was uncertain whether it would be introduced first to his committee or the Commerce & Gaming Committee, some potential reforms he thought could be made included simplifying access to industrial hemp seed and reducing buffer requirements so that more crops could be grown. “There are some things we can do now that there’s been a breakthrough at the federal level to get more acres planted,” Blake said. Also in state cannabis-related policy, Gov. Jay Inslee announced the Marijuana Justice Initiative, a program to grant clemency for adults age 21 and over with one misdemeanor marijuana possession conviction on their criminal record. Convictions in Washington state between Jan. 1, 1998 and Dec. 5, 2012 — when marijuana possession became legal under Initiative 502 — will be pardoned under the announced program. An estimated 3,500 people may be eligible, according to a news release.

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Tri-Cities Area Journal of Business • January 2019

uBUSINESS BRIEFS Ecology approves Sandvik’s request to delist wastewater

The Department of Ecology recently approved Sandvik Special Metals LLC’s request to Ecology and the Environmental Protection Agency to handle its waste as solid waste instead of dangerous waste, or a process called delisting. This will allow the Kennewick metal tube manufacturing facility to dispose its wastewater treatment sludge, or filter cake, in a solid waste landfill. Sandvik collected data showing that its filter cake waste does not contain enough harmful chemicals to be considered dangerous. The approval of the petition for delisting includes specific requirements for maintaining the delisting exclusion, including

testing conditions for waste generated in the future.

CBC’s surgical tech students get high marks on national exam

Columbia Basin College’s surgical technology program has received the annual merit award from the National Board of Surgical Technology and Surgical Assisting for achieving a 90 percent pass rate on the certified surgical technologist, or CST, examination during the 2017-18 academic year. The national pass rate for the exam is about 78, according to the board. CBC’s one-year surgical technology program trains students in the skills necessary to assist in surgical care for patients. Each of CBC’s 2018 program gradu-

ates who sought employment landed fulltime surgical technology positions. For more information about the program, call 509-544-8300 or visit columbiabasin.edu/surgicaltechnology.

State receives high rankings for safety in the workplace

Washington ranks among the best states for workplace safety and health, reported the Federal Bureau of Labor Statistics. The state had the ninth-lowest occupational injury rate in the nation in 2017 with its workplace fatality rate about 30 percent below that national average. There were 84 workplace deaths in Washington in 2017, or 2.5 per 100,000 full-time workers, with 15 of those being in construction. Nationally, occupations with high ranking of having dangerous

workplaces include farming, fishing and forestry and transportation.

Richland radiology group finalizes merger

A longtime radiology group based in Richland that’s served as the provider for Kadlec Regional Medical Center in Richland for 36 years has merged with a Spokane-based company. Columbia Basin Imaging and Inland Imaging PS have combined, effective Jan. 1. The merger, first announced in March and expected to be completed in September, was delayed to the start of the year due to technical difficulties with information technology and accounting officials preferring a Jan. 1 start date for benefits, said Dr. Richard Nguyen, former president of Columbia Basin Imaging. The merged group will employ nearly 100 radiologists, making it one of the largest professional radiology practices in the western United States, according to a news release from Inland Imaging. The combined group will practice regionally under the Inland Imaging brand, with Kadlec Regional Medical Center serving as its primary location in the Columbia Basin area. “The joining of our two groups allows us to better connect clinically between eastern and southeast Washington,” said Dr. Jayson Brower, president of Inland Imaging, in a news release. “The synergy created by this combination enhances our ability to improve productivity and cost efficiency while delivering an enhanced level of patient care through hyper-subspecialization and standardization across a larger region.” Columbia Basin Imaging was the exclusive radiology provider for Kadlec Regional Medical Center since 1983. The busy practice interpreted about 300,000 studies, or imaging results, annually. The merger means expanded and coordinated radiology services for patients and health care providers while positioning the group for the ongoing evolution of the health care system, according to the news release. “By expanding our geographic footprint to more closely match that of our important health system partners, we are able to generate more effective new ways to deliver services,” said Inland Imaging CEO Steve Duvoisin. “It allows us to see the region’s health care resources in a more global and holistic way. That broader point of view helps us imagine new ways to raise our quality and efficiency while holding down costs by serving more patients around the region.” Inland Imaging has operated in Spokane since 1930. The practice’s radiologists serve outpatient imaging centers, urban and rural medical centers, hospitals, clinics and private practices in western, central and eastern Washington, northern Idaho and western Montana. In addition, the group’s radiologists own Nuvodia, a full service, 110-employee national IT company, and Inland Imaging Business Associates, a company that provides various business services to radiology and health care clients throughout the Northwest.

Tri-Cities Area Journal of Business • January 2019

Indoor playground slides into vacant Kennewick building

Local couple invests $800,000 in indoor play center next to Fiesta Restaurant in Kennewick BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

A three-story playground will be one of the highlights at the new iPlay Experience, an indoor play center under construction in Kennewick intended for year-round use, but especially during cold winter months or sweltering summer days. Standing 19 feet high and filling a large part of a 10,000-square-foot space, the indoor playground includes slides, tubes and other structures to crawl up, on and through. In addition, there will be a virtual reality experience for up to four people at a time. The owners say this attraction will be the first of its kind in the state, with four different themes available, targeted to kids, teens and adults. The immersive experience recently won an industry award for best in category at an expo. The idea for iPlay Experience, which is not a franchise, has been four years in the making, with an investment of $800,000 for remodeling work and play equipment. “I wanted a mixture of activities that keep kids active,” said Alex Tasama, who owns the business with his wife, Lorena Santa. “We also wanted to com-

bine it with new stuff, like art and sand tables. What we will offer is more interactive activities.” iPlay Experience will be at 8524 W. Gage Blvd., Suite. B-110, next door to Fiesta Mexican Restaurant in Kennewick, in a building most recently occupied by Ares Athletic, about a block west of Columbia Center mall. Tasama worked with the Tri-City Development Council, or TRIDEC, to create a business plan and get his dream off the ground. As a father and an engineer at Bechtel, Tasama said he saw the need for a place where children of all abilities would be able to move, play and be creative year-round. The business is described online as “an upscale alternative for recreation and education of the children emphasizing socialization and producing unforgettable experiences.” iPlay Experience will sell hot food and offer birthday parties that include pizza shaped like a cone, empanadas, desserts and beverages. Tasama expects the entertainment center to accommodate at least 100 people at one time, based on the maximum capacity allotted to the previous tenant. He also expects to hire about 15 people. Renovation work has been underway

A former Kennewick gym is being renovated into an indoor interactive playground, featuring a three-story play structure and virtual reality experiences. Called iPlay Experience, the locally-owned facility will be available for dropin visits and scheduled parties. (Courtesy iPlay Experience)

on the building since Dec. 1 with a targeted opening date in late January. The couple signed a five-year lease for the property but expect to be in it for the long haul, or unless they decide to build their own building. Tasama has been bolstered in his efforts to launch the business as a member of the International Association of Amusement Parks and Attractions. He says the nonprofit supports entrepreneurs and assists with getting a substantial investment like iPlay Experience off the ground. “This is a homegrown thing. There’s nothing even close to this on the West

Coast,” Tasama said. “None of this is put together the way it is in any other place. You might find something similar to the playground, but you won’t find that combined with the sand or the art, or the surprise attraction.” Admission will be based on the height of a child, targeting those 36 inches and above with one rate, and toddlers below 36 inches with a discounted rate. Two hours of play time Monday through Thursday will cost $20.99 for children and $14.99 for toddlers, and the price increases to $24.99 and $16.99 Friday to Sunday and holidays. uiPLAY, Page 13

Tri-Cities Area Journal of Business • January 2019

HEALTH

Tri-City’s only free medical clinic sees rise in patient volumes, visits BY ELSIE PUIG

for Tri-Cities Area Journal of Business

Grace Clinic — the only free medical clinic in the Tri-Cities — is seeing a greater volume of patients, pointing to a greater need for volunteers and services. In 2018, patient volume increased by 35 percent and there was a 25 percent increase in new patients over the previous year. Last year, the Kennewick clinic treated 1,200 to 1,300 patients, which accounted for about 7,000 patient visits. “If you don’t have insurance and you don’t have a means to pay out of pocket, there aren’t other options,” said Mark Brault, volunteer CEO for Grace Clinic. “There is the emergency room, and there’s us. Until the problem they’re experiencing becomes so severe, sometimes it gets addressed too late.” The most recent estimates from the Washington Insurance Commissioner indicate that there are 32,000 people in the Tri-City community without medical insurance. “If you look across business community, there is only a small percentage of retail, service and agriculture industry that provide health benefits,” Brault said. To qualify for treatment at Grace Clinic,

With an increase in patient volume from last year, Grace Clinic is seeing a greater need to expand its dental services. It hopes to adopt a new volunteer model to offer dental services more days of the week. (Courtesy Andrea Starr, PNNL)

patients must prove they have income at or below 200 percent of federal poverty level. That means a family of four must earn $4,183 in gross monthly income, or $50,200 in gross yearly income, to qualify. Grace Clinic opened its doors in 2002 for only a few hours every Saturday in the

basement of a Methodist church in downtown Pasco. In those 16 years, it has recorded 72,000 patients visits. The free clinic relies solely on the generosity of financial donors and volunteers. Apart from nine paid staff, the clinic is staffed and operated by volunteers. Its

annual budget is about $500,000. For medical services, the clinic offers everything from acute care to dental services to counseling. It also offers a food pantry for patients, should they need it. Grace Clinic does offer specialties like cardiology, audiology and gynecology services, depending on volunteer availability and if patients are referred by their primary care provider. “Having a specialist here is so hugely valuable,” said Avonte Jackson, clinic director. The clinic treats a high percentage of patients with diabetes, high blood pressure, asthma, sinus infections and the flu. It also performs a lot of emergency dental procedures, such as extractions. The clinic can help patients access prescription medication through Walmart’s $4 prescription program or through a pharmaceutical company’s patient assistance program, or PAP. “We have a PAP coordinator to help with that. There is about $300,000 worth of medication that comes through that program,” Brault said. “It’s not 100 percent satisfactory because there are limits in the PAP program but it meets the lion’s share of the need.” uGRACE CLINIC, Page 14

Tri-Cities Area Journal of Business • January 2019

Health

Tri-City health care sector ranks as region’s second largest work force BY D. Patrick Jones

for Tri-Cities Area Journal of Business

Despite recent challenges faced by local hospitals, health care here is acquiring all the features of a major medical center. Benton-Franklin Trends data makes this quite clear, tracking the share of the work force employed in the five highest-employing sectors. Health care is the second from the bottom in the graph. A visual inspection — or the pointer on your computer screen — will show a gain. In fact, the gain is the largest among the five. In 15 years, the health care work force has climbed from fifth to second place in Benton and Franklin counties. Or, from 8.2 percent to 11.5 percent of the total work force. Among the top five employing sectors, only agriculture also has increased its share. In terms of jobs, health care has added 6,700 over the past 15 years, far more than the second- and thirdfastest sectors of government and agriculture, respectively. What forces have driven this? What parts of health care have climbed the most? We first need to understand how economists track this sector. It is typically presented in four sub-sectors: ambulatory care, hospitals, nursing and residential care facilities, and social assistance organizations. Ambulatory care is the largest, encompassing many “industries.” Among them are offices of physicians, dentists, chiro-

practors, various therapists, optometrists, mental health practitioners, kidney dialysis, outpatient mental health and substance abuse counselors, medical labs, home D. Patrick Jones Eastern health services Washington and blood banks. University Nursing and residential care facilities include nursing homes but also those for the developmentally disabled, centers addressing mental health and substance abuse, as well as continuing care and assisted living. Social assistance organizations, strictly speaking, do not provide medical care. Yet, their work undergirds community health. Organizations counted in this subsector run the gamut, from child and youth services to community food and community housing services, and from vocational rehab to child care centers. So which of these have grown the most in the greater Tri-Cities? Unfortunately, data don’t allow for a clear conclusion due to the necessary protection of sub-sectors with few players. Counts from ambulatory care, undoubtedly the largest, are thankfully available starting in 2005. Here the gain of employees has been about 2,500, or a percentage change of more than 75 percent. This growth has been more than

(Courtesy Benton-Franklin Trends)

twice the rate observed in Washington state. For the other sub-sectors, we can only be guided by statewide numbers. If the experience in local health care has largely mirrored the state’s, headcounts in hospitals have grown but not as fast as those in social assistance organizations. Staff at nursing and residential care facilities have likely been the slowest to expand. Why do we care? Certainly one reason is that good health is a paramount desire of everyone. A reason that economists will advance lies in wages: many, but hardly all, of the occupations found in these industries pay well. Benton-Franklin Trends data reveals that the sector overall ranked third among the top five for annual wages. In 2017, the annual wage amounted to slightly more than $46,000. (Online readers can easily simplify the graph by

clicking off boxes of the legend.) This average actually lies below the average wage for all employed in the two counties. Yet, the sector shows great variation. Staff at social assistance organizations were paid a meager $22,500 in 2017. Local workers in ambulatory care, on the other hand, earned about $52,500 in Benton County and $57,000 in Franklin County. If the local distribution among the sub-sectors follows the state pattern, the average paid to hospital staff was higher yet. Another reason we should care lies with the local labor market: it is signaling that health care workers are in high demand. Thanks to a state survey compiled by the Department of Employment Security, we know the top 25 occupations in demand. uTRENDS, Page 15

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Tri-Cities Area Journal of Business • January 2019

Health

Prosser hospital district opens new clinic in Grandview BY TRI-CITIES AREA JOURNAL OF BUSINESS & SUNNYSIDE SUN

Prosser Memorial Health has opened a new clinic in Grandview. The clinic at 1003 Wallace Way, just south of Interstate 82, will be open daily to provide family medicine, pediatrics, women’s health and mental health services as well as urgent care. Walk-ins are also welcome. Prosser Memorial Health has been expanding its services to better serve patients in its coverage area, which stretches from Benton City to Sunnyside, according to hospital district officials. The Grandview Clinic follows last year’s opening of clinics in Prosser and Benton City. Primary care clinics have been needed throughout the region, and the new 9,700-square-foot facility was developed by a third party, said Shannon Hitchcock, spokeswoman for Prosser Memorial Health. Prosser Memorial Health is leasing the facility from Terry Barnes. She declined to comment on how much the public hospital district invested to open the clinic, saying “it is an ongoing investment and hard to put a total dollar value on at this time.” The clinic opened Jan. 7. Dr. Jose Santa-Cruz will provide physicals, general pediatric care, wellness exams and other primary care services. He is certified in advanced cardiac life support and advanced life support in obstetrics.

Prosser Memorial Health opened a new clinic in Grandview on Jan. 7. The clinic at 1003 Wallace Way will be open daily to provide family medicine, pediatrics, women’s and mental health services, and urgent care. (Courtesy Prosser Memorial Health)

Also serving the clinic are Erica Garza, an advanced practice registered nurse from the Prosser Clinic, and Steven Zirker, a physician assistant from the Benton City Clinic. Garza will handle women’s health issues, while Zirker will provide afterhours care. The three providers are bilingual. “We’re looking for another family physician,” said PMH Administrator Alana Pumphrey during a recent tour of the clinic. The facility boasts a full lab and imaging to provide on-site labs and X-rays, she said. “Patients won’t have to travel to a hospital or other clinic,” Hitchcock said.

The exam rooms and medical assistants will work within the same pod as the medical provider offices to provide patient and staff convenience, Pumphrey said. She said the lab and imaging services are available to patients of other area medical providers, as well. Additionally, there will be mental health services available at the clinic, Hitchcock said. The clinic will be open seven days a week from 8 a.m. to 8 p.m. with urgent care services. To schedule an appointment, call 509-203-1080.

iPLAY, From page 9 The virtual reality experience is an additional price, starting at $9.99 for those 48 inches and above, with discounts offered on combining admission with food or multiple admissions. Prices apply only to children and not to the adults who bring them, though adults are welcome to play alongside the kids. Annual family memberships cost $43.99 and will include a discount on regular admission and birthday parties. Discounts also will be offered to military service members. Caregivers will have the option of watching or dropping children off for supervised play for up to three hours at a time, including during afterschool hours. Renovation work has been completed by Western Restaurant Supply & Design of Kennewick and the marquee was created by Quality Signs of Kennewick. Artmil of Kennewick designed the graphics and webpage. iPlay Experience plans to be open seven days a week, from 11 a.m. to 9 p.m. Mondays, Wednesdays and Thursdays; from 4 to 9 p.m. Tuesdays; from 11 a.m. to 10 p.m. Fridays; from 10 a.m. to 10 p.m. Saturdays; and from 10 a.m. to 8 p.m. Sundays. Follow updates about the business’ opening date on its Facebook page.

Tri-Cities Area Journal of Business • January 2019

uBUSINESS BRIEFS Dental Health Services fined, sales suspended after violations

Washington Insurance Commissioner Mike Kreidler fined Dental Health Services $500,000 for a number of violations. The Seattle-based dental insurer was fined for failing to identify and process 23 policy holders’ appeals and 342 policyholders’ grievances; erroneously canceling policies; double-charging 492 policy holders; and failing to deliver enrollment materials to nearly 80 policy holders. In addition, Kreidler is prohibiting the company from selling any new policies for 12 months. The company can seek permission to sell policies again after the probation period if it completes compli-

ance and corrective action. Action was taken by the commissioner’s office previously in 2017 and 2018 as well.

Community invests more than $750,000 to impact local health care

Kadlec Foundation, which supports programs, equipment and capital projects at Kadlec Regional Medical Center in Richland, received more than $750,000 in donators and sponsor gifts in 2018. “Because of Kadlec’s unique status as the only not-for-profit hospital and health care system in the Tri-Cities, donors can be assured that Kadlec Foundation offers a great way to invest in the current and future health care needs of our community,” said Rebecca Thornton, philanthropy

Health officer, in a news release. The donations were used to: • Fund 37 grants for medical equipment, programs and services for the medical center and clinics totaling $576,735. • Provide free mammograms for 412 underinsured women. • Serve 119 Kadlec patients through the Good Samaritan Fund with hotels, gas, bus passes and medical equipment. • Provide 53 scholarships to local students pursuing degrees in health care programs. • Provide equipment and support to 21 schools participating in Kadlec Academy, an after-school health program for elementary age children To learn more, call 509-942-2661, visit kadlec.org/foundation, or send an email to foundation@kadlec.org.

More than 222,000 sign up for plans in state exchange

More than 222,000 customers signed up for a 2019 health plan through Washington Healthplanfinder, Washington’s Health Benefit Exchange. About 20,000 fewer people signed up, compared to 2018, by the Dec. 15 deadline, but the enrollment period for this year’s plan was a month less than the previous year. The last two days of the sixweek enrollment period had enrollment by 11,000 people.

Make a splash for a cause with Polar Plunge

Special Olympics Washington is inviting the public to take a jump in cold water during Polar Plunge fundraising events across the state. This year’s Tri-Cities Polar Plunge will be at noon Jan. 19 at Columbia Point Marina in Richland. Pre-registration and a $10 fee are required to reserve a spot. Event day registration begins at 9 a.m. For more information and to register, go to http://bit.ly/2Rc8veO.

GRACE CLINIC, From page 11 In July 2017, the clinic was able to add another day to its schedule. It is now open five days a week, thanks to a partnership with Kadlec Regional Medical Center in Richland and Trios Health in Kennewick. The hospitals send thirdyear medical residents to Grace Clinic for rotations — sometimes four weeks a time. Thanks to the partnership with Trios, which employs an osteopathic doctor, it was able to offer osteopathic manipulative treatments in early 2018. Brault said the partnership helped address some long-standing gaps in the schedule as retired physician volunteers have had to stop volunteering due to health problems. “Today, from a medical standpoint, we’re in a good position,” Brault said. “Today, the challenge is keeping up with the financial cost of operating. There is an increase in costs with substantially more patients. He also said that adding more dental volunteers is a priority and hopes to expand its dental capabilities. “Dental is the place where we have (the) greatest imbalance between demand and capacity. We’re working to expand that capacity (in 2019),” Brault said. “The issue we face is that the vast majority of our dentist volunteers are not retired. They’re actively practicing, so their availability is principally on Saturdays. Brault said he hopes to implement a new volunteer model where dentists commit to volunteering three days a year and are assigned those days 90 days in advance. “That way we can offer dental services more days of the week and help more people,” Brault said. Information about how to donate to the clinic is available on its website. Grace Clinic: 800 W. Canal Drive, Kennewick; gracecliniconline.org; 509735-2300.

Tri-Cities Area Journal of Business • January 2019

HEALTH

2019: The year of greens, grasshoppers and gut health BY MARILOU SHEA

for Tri-Cities Area Journal of Business

Unlike the Pantone color of the year that’s selected annually by a chosen few, the food trends I’m about to share — most falling into a “healthy” category — are ultimately based on the masses — yes, that’s you, me, us. As if you didn’t know, keto, kale and gluten-free diets were all the rage in 2018. So much so that some claim this trinity reached the pinnacle of popularity and will not falter from its holy perch. Their fan base will be happy to know that from everything I’m hearing and reading, it looks like they’ll continue to be popular, but whether they maintain their cult status in 2019 is debatable. According to executive chefs and culinary experts at Benchmark, a global hospitality company, along with the National Restaurant Association, there are a few surprises and a few continuums to wake your taste buds in 2019. Garden envy. Kale and cauliflower — the darlings of the past few years — have had their respective days in the sun. Wild weeds like sorrel, amaranth and dandelion greens will be in the spotlight in restaurants and could overshadow kale’s cult status. Also basking in the limelight will be root vegetables and distinctively flavored herbs, like lovage, chervil, lemon balm and papalo — all prepared with a unique and satisfying twist. Veggie-ism’s star is rising. Vegetarianism, once seen as “a finicky TRENDS, From page 12 For the most recently available month, September, the ranking was telling. In Benton County, nurses posted the highest number of openings. Other health care professions followed: physicians and surgeons placed sixth and 10th; family practitioners 11th; medical service managers 14th. The list wasn’t quite as long in Franklin County, but nurses placed second among the postings there. To return to an earlier question: what lies behind this growth in health care work force? An obvious cause rests in population growth. As Trends data reveals, the number in the two counties has shot up by a cumulative 42 percent since 2002, more than twice the rate of our robustly growing state and more than three times the rate of the U.S. A second reason lies in rising incomes. Health follows wealth, or we prefer to “consume” more health care as incomes rise. As Trends data maps out, nominal incomes per person have increased, cumulatively, more than 50 percent over the same interval. These two measures of the greater Tri-Cities show few signs of faltering. It seems safe to project that the health care work force will only continue to gain a larger share of all employment in the two counties. Patrick Jones is executive director for Eastern Washington University’s Institute for Public Policy & Economic Analysis.

customer preference” by servers and chefs is going mainstream, thanks to consumers becoming fixated on macro diets, which count Marilou Shea macronutrients Food Truck like grams of Academy protein, carbs and fats. No longer a sidekick to traditional forms of protein, menus soon will feature vegetarian entrees as the star of the show with proteins as the complement. At the very least, expect to see more menu real estate dedicated to vegetarian dishes. That’s due to consumer demand and culinary experts transforming that plump pumpkin into a pleasing and tasty dish appealing to all customer profiles, not just vegetarians. Go pro for probiotics. Kombucha, or fermented tea, has seen a massive resurrection from its original debut in the 1970s. It’s been bottled and has cool selfpour options available at grocery stores like Yoke’s. Its next chapter will see home-grown kombucha coming from boutique hotels and chef-driven eateries. Fermented products like tempeh, kefir, kimchi, pickles and sauerkraut also will see an uptick by these same businesses. As with the die-hard focus on getting as close to a food’s original source as possible, the goal here is to consume the leastprocessed food while upping the probiot-

ics to improve the immune system. Don’t bug me. For reasons unknown to me, I’ve got to ask how on Earth insects landed on the trend list? What were “you” thinking? Loathe to believe it, I dug deep and here’s what I found: chefs are looking for alternative sources of protein in response to rising costs of beef and poultry. They claim it’s sensible based on sheer volume and ability to source anywhere. Not to mention that insects are low in fat (ick) and possess three to four times the protein as beef (eek). Did you know that 80 percent of the world consumes insects? I didn’t and can’t say I’m the better for it, other than to culturally cringe internally and hope for the best. Farm to table, continued. You’ve heard of it, you’ve read it here (there and everywhere) and like me, you probably agree that we could do more of it. In a nod to its continuing evolution, farm to table’s next act will feature custom farming that’s all about planting specifically for menu development. Chef Tom Douglas of Seattle fame has such a garden in Prosser — the Tri-Cities Area Journal of Business wrote about it in June 2017. In ag circles this is often referred to as sustainable farming. It’s absolutely a good thing. Celebrity chefs and dieticians become BFFs. Duchess Dietician of Health meet Chef Al La Taste, Chef Al La Taste meet Duchess Dietician of Health. Foodies and culinary experts talk a lot about healthy eating but that’s not necessarily nutrition. Ahem. The science of food is grounded in, well, science, and is

the dietician’s territory. They are medically board-certified with a ton of educational expertise required to bear that lofty title. Seeing dieticians elevated to the status of chef is on the upswing as you, me, us, aspire to personalize our dining scenarios. The sweet spot of technology — with convenient access to calorie counts, portion controls and allergic reactions — will enable us to customize our dietary and subsequent dining options, whether in a restaurant or at a retail outlet. Personalized nutrition plans (or, diet plans — there, I said it) will soon be all the rage and then settle into a normal life as they become the norm. These plans will have a huge impact on diet and subsequently what’s offered at our favorite go-to eateries. Beef eaters rejoice. Not to be outdone by all the plants, weeds and seeds brouhaha, if you’re a carnivore, then welcome to the land of new cuts and flavor families, like shoulder tender, oyster steak, Vegas strip and merlot cut. Their grill qualities are top notch, too. This is an aha culinary moment where consumers’ palates are being awoken by a variety of old and new food sources, combined with creative techniques that have been sleepy in their response to a customized healthy palate. What’s not to love? Food Love columnist Marilou Shea is adjunct faculty for Columbia Basin College’s hospitality program and Food Truck Academy, as well as the creator of Food Truck Fridays.

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Tri-Cities Area Journal of Business • January 2019

HOSPITAL, From page 1 The district’s future could include any number of directions, as commissioners vet additional needs of the community that could benefit from the $260,000 a year, above and beyond what is provided by LifePoint. “We have all kinds of ideas that everyone’s thrown out, from helping Grace Clinic to mental health issues, to expanding adult day services,” Kinney said. “We held workshops, and we had every commissioner say what they think we should do and we put it all together. Or we could go the United Way route — that’s an avenue we could do, too. So, we’re looking at having a facilitator help with our mission and values.” The United Way is not limited to funding one program or community resource, which means the Kennewick Public Hospital District could consider funding multiple community-based programs. The district organized in 1948 when the process of building Kennewick General Hospital began. The health system was renamed Trios Health in 2013. The new hospital in the Southridge area was built in 2014. “They were caught between two pieces — the need and demand for more sophisticated hospital equipment and facilities, which resulted in the Southridge campus, and the downturn in regards to the economy, and the cost of, literally, doing business,” Kerr said. “And unfortunately, that came to kind of a head here in Kennewick. In order to maintain its continuing mission of providing health care services to the citizens of the district, it found the only

HEALTH

Marvin Kinney, president of the Kennewick Public Hospital District Board, is looking ahead to a new mission for the board, which handed off operations to Trios Health following the sale of the public hospital system last year.

way to do that was to sell the hospital.” Some consider the Southridge expansion to be the undoing of the hospital system’s solvency, but Kinney, a commissioner for the last 20 years, said he doesn’t regret the decision. “I think the Southridge hospital is an excellent location. It’s going to grow. We were ahead of our time. And we just couldn’t catch up. There’s going to be thousands of homes out there, and it’s going to be in a great spot. We just couldn’t hang on,” he said. Selling the hospital came in August 2018, more than a year after Trios Health filed for Chapter 9 bankruptcy protection. The sale pulled the hospital out of bankruptcy, with RCCH HealthCare providing indigent and charity care, which is the district’s responsibility. Since then, “not much has really

changed,” Kerr said. “The hospital continues to exist for primarily two purposes. One, is to provide a revenue source for those contracted public services, and the second is, it still considers itself a partner in the area for health care and wellness.” “We’ve had some criticism,” Kinney said. “People asking, ‘Why do you even exist? Why am I paying a property tax for the Kennewick Hospital District?’ And our answer is No. 1, if we didn’t collect the tax, there may not be a hospital here. And the No. 2 is, let’s see what impact we can make on some of the health issues that face the community,” Kinney said. Kerr described this new phase as the district “discovering its new mission and its new vision in regards to health care.” Kinney called the need for a new phase a culture shock, coinciding with the hospital’s sale date. “We had to start from

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scratch on Aug. 4. We had no staff, no direction. We got together and contracted with Lee Kerr to be our superintendent,” he said. This was a statutory requirement of the district and had always been filled by the chief executive officer of the hospital. Kerr’s father was one of the founding doctors of Kennewick General Hospital and he has a longtime personal and professional connection to the hospital. “One of my earliest recollections was when they were constructing the hospital, and going up and down in the only elevator in the Tri-Cities, which was at Kennewick General Hospital,” he said. In the early 1970s, Kerr was the hospital’s attorney while his father was chief of staff. Also an attorney in private practice, Kerr is now one of only two contracted employees of the district, compared to the 1,100 staff it once had. “The new budget is really, really different than the previous budgets where we were dealing with multimillion dollars because we had revenue sources from not only the taxes, which was a relatively small portion of it, but the operating revenue,” Kerr said. “So you take that part away and the only thing left, essentially, is the tax revenues.” The district tax levy is 13 cents per $1,000 of assessed property value. This means about $32 annually for a home worth $250,000. Kerr estimated another $35,000 is brought in annually through charitable donations.

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Health HOSPITAL, From page 16 “We’re using the tax revenues from (LifePoint) to fulfill that public hospital mission,” Kerr said. “Our primary concern is that they fulfill our public function: indigent and charity care. And the other portion is making sure that we still have the full range of medical services available to citizens. We are funding a portion of the services they provide that are specifically associated with our mission.” The commissioners have both literally and figuratively rolled up their sleeves to move forward with that mission, organizing a volunteer work party to clean up the outdated offices at 805 S. Auburn St., in Kennewick, on the former campus of the original Kennewick General Hospital. The offices allow for meeting space, file storage and a place to park a phone that can receive inquiries or public records requests. Kinney has hopes of doing more to improve the space in the future so it may be of more use to the district.

uBUSINESS BRIEFS Junior Achievement to hold volunteer training sessions

Junior Achievement is holding training sessions for those interested in volunteering in classrooms with students to offer students skills and knowledge for economic success. Information and training sessions will be from 9 to 11 a.m. Jan. 25 at the Richland Public Library, 955 Northgate Drive, and from 1 to 3 p.m. at PayneWest Insurance, 390 Bradley Blvd., Richland. For more information, call Elizabeth Jones at 509-783-7222 or go to jawashingtonsewa.org

IRS raises mileage rates for 2019

The standard mileage rates for the use of a car will be going up in the new year. The Internal Revenue Service has issued the 2019 optional standard mileage rates- which also apply to vans, pickups or panel trucks - used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, the rates are: • 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018. • 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018. • 14 cents per mile driven in service of charitable organizations. The charitable rate is set by statute and remains unchanged. The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs. Taxpayers also have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates. The IRS said taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.

“There are two heroes, as far as I’m concerned, in this,” Kerr said. “One is the board of commissioners, which has had a really rough couple of years. They identified as their primary goal, preservation of the hospital for the benefit of the district, no matter what it took to do so, which I think was a really tough one to accomplish. And RCCH is the second hero. They got into this thing with a lot of optimism and probably an underestimation of what it would take financially to turn the corner, and they have jumped in and taken on a lot of debt that they probably did not have to. They’ve done some things to better the hospital and medical services that were above and beyond what was required. I think both of them have really risen to the occasion under difficult circumstances.” Commissioners now meet two to three times a month, marking a significant drop in the amount of time required for the seven board members who often met up to 10 times a month to discuss various com-

Tri-City credit union adds art to Highway 395 corridor

A dynamic new sculpture at the corner of 19th Avenue and Highway 395 is a TriCity credit union’s gift to the community. Tri-CU (pronounced Tri-Q) recently unveiled “Ovation,” a 10-foot tall stainless steel and acrylic sculpture mounted on a pole to swing like a weathervane. The credit union, formerly known as Tri-Cities Community Federal Credit Union, worked with the Kennewick Arts Commission on the project. Tri-CU’s board of directors, management team and design consultant said the sculpture is meant to reflect a positive and modern feeling that celebrates local agriculture, wind, diversity and helping hands, the not-for-profit credit union’s mission. Tri-CU hired artist CJ Rench of CJR Design, who has completed other community artwork in Kennewick, particularly in roundabouts. Tri-CU, which has been serving the Kennewick community for 50 years, moved into its new headquarters at 3213 W. 19th Ave. in November. In addition to the sculpture, the new 8,300-square-foot credit union also offers a bike fix-it station and outdoor community water fountain with dog bowl attachment. Tri-CU, founded in 1969, serves about 5,600 members and has about $40 million in assets.

Washington to get $16M in deal with Wells Fargo

Washington is to receive $16 million from Wells Fargo as part of a deal with all 50 state attorneys general and the District of Columbia over issues regarding retail sales practices, auto collateral protection insurance, guaranteed asset/auto protection and mortgage interest rate lock matters. The company has been working with federal regulators and as part of the agreement it will pay a total of $575 million to resolve civil claims.

mittee functions. Board members include Kinney, Gary Long, Rick Reil, Wanda Briggs, Steve Bodgett, Leonard Dreisbach and Mike McWhorter. “My blood pressure’s gone way down. I recently had it checked and it’s the lowest blood pressure I’ve ever had,” Kinney said. Now, those meetings can focus on the new mission of fulfilling community needs, whether it’s programs to combat opioid addiction or supporting those suffering from mental health issues. The next board meeting is at 5 p.m. Jan. 31 at Adult Day Services, 10 N. Washington St., Kennewick. Kinney said the board intends to seek direction from LifePoint on potential health and wellness needs that aren’t cur-

rently being filled. As the district determines what it will specifically focus on in 2019, the board and its superintendent are approaching its renewed mission with optimism. “As we looked at closing the door on the RCCH transaction and opening the door on our new vision, a new light lit in our eyes. We got back to the idea with enthusiasm and interest,” Kerr said. “We’ve got a re-energized board. So I’m kind of expecting a lot from them.” To reach the hospital district, call 509579-4405 or email lkerr@kenkphd.com. This is a message phone only and replies can be expected within two to three business days. A website is expected to launch later this month.

Tri-Cities Area Journal of Business â&#x20AC;¢ January 2019

Tri-Cities Area Journal of Business • January 2019

Tri-City business backers oppose governor’s tax, dam removal proposals BY JOHN STANG

for Tri-Cities Area Journal of Business

Gov. Jay Inslee’s proposed capital gains tax has dominated the headlines. But his less-ballyhooed proposal to increase business-and-occupation taxes might have a bigger effect on the Tri-Cities, while having a greater impact on the state budget. These two tax proposals, plus a proposed study on removing the four lower Snake River dams, are the biggest items that the Washington Legislature could ponder in the 2019 session that could affect Tri-City businesses. The session began Jan. 14. The tax proposals come from Inslee wanting to spend about $54 billion in the 2019-20 budget biennium, while expecting about $50 billion from current revenue sources. The 2017-19 state operations budget was about $44 billion. This will be the first year that the state government must pay for all the improvements in state education that the Washington Supreme Court ordered in 2012, known as the McCleary ruling. The new spending requirements to improve basic education and to improve teacher-student ratios in classrooms account for more than the $4 billion shortfall. Inslee would like for $2.6 billion of that $4 billion shortfall to be filled by increasing the business-and-occupation tax on gross receipts of service business, such as attorneys and accountants. The capital gains tax would add $975 million. A series of smaller tax increases elsewhere would take care of

the rest. “We recognize the need to pay for the McCleary decision. We’ve eaten the meal. Now we have to pay the bill,” Inslee said. Inslee’s tax and spending proposals unveiled in December are merely the governor’s wish list with dollar figures attached. “My core belief is that we are doing pretty well with revenue in this state. When the state is doing well, additional taxation is not the answer,” said state Sen. Maureen Walsh, R-Walla Walla. While the Tri-City Regional Chamber of Commerce and the Tri-City Development Council, or TRIDEC, have not yet reached specific conclusions on Inslee’s proposals, their general legislative stances oppose increased taxes without any agreement that those hikes are justified. “It’s on our radar,” said Stephanie Swanberg, the chamber’s government and

regional affairs manager. The state’s real budget proposals will be unveiled in early March when Democrats in the House and Senate announce their budget proposals and work to reconcile them. Democrats have a significant advantage in both chambers — 28-21 in the Senate and 56-42 in the House. That means Tri-City-area legislators — all Republicans — can’t do much other than protest whatever the Democrats decide to do. Inslee selected service businesses for the B&O tax increase because they don’t charge their customers sales taxes, so the passed-on-to-customer taxes are less in the service industry. In addition to attorneys and accountants, service businesses include architects, beauticians and janitorial services. Their B&O tax rates would rise from the current 1.5 percent to 2.5 percent under Inslee’s proposal.

“This is clearly going to affect many businesses here,” Swanberg said. Walsh said the B&O tax proposal is regressive in that it would likely hurt smaller service businesses the most. TRIDEC President and CEO Carl Adrian is leery about Inslee’s proposal to increase any B&O taxes. He noted that in 2017, Inslee vetoed a bipartisan agreement to trim B&O taxes on manufacturers. “We were disappointed,” he said. The governor also proposes changes to the state real estate excise tax. Today, that tax is 1.28 percent of a property’s sale. Inslee wants that rate reduced to 0.75 percent for sales below $250,000, kept the same for sales $250,000 to $1 million, and increased to 2 percent sales more than $1 million. The Association of Washington Business, the state’s largest group representing small, medium and larger employers, said raising $3.7 billion in new taxes risks derailing the state’s strong economy. “Our focus should be on maintaining Washington’s robust economy, expanding it into the rural parts of the state that have been left out, creating opportunity for all Washingtonians, and making smart choices that prepare us for the next inevitable downturn, not looking for new ways to tax employers that are helping to fuel our growth,” said Kris Johnson, president of AWB in a statement. Meanwhile, the proposed capital gains tax likely will capture the most headlines during the session. uLEGISLATURE, Page 20

Tri-Cities Area Journal of Business • January 2019

LEGISLATURE, From page 19 That’s because Republicans paint a capital gains tax as an income tax. And both parties consider supporting income taxes as political suicide in Washington. But David Schumacher, director of the Washington Office of Financial Management, said a capital gains tax is a tax on a financial transaction — meaning it is an excise tax. Democrats will call this an excise tax during the upcoming session. For years, Olympia observers have believed there is a chance this definition could end up in litigation against any passed capital gains tax — meaning a judge would make the final call. “That whole proposal is ripe for litigation,” Adrian said. Forty-one states have capital gains taxes. Inslee is proposing a 9 percent capital gains tax applying to stock, bond or similar

sales of $25,000 for more for an individual, or $50,000 or more for a couple. Schumacher said a family would likely have an income of $660,000 or more — about 1.5 percent of the state’s population — to become liable for a capital gains tax. The tax would not be applied to the sale of any homes. Inslee described the capital gains tax as a way to combat Washington being the most regressive tax state in the nation — meaning the poor pay greater portions of their incomes in taxes than the wealthy do. “There is an increasing revulsion against the unfairness of our system. …. It’s a choice between a single mother working in a hospital with kids trying to make ends meet or someone making more than $660,000,” Inslee said. In the past, Republicans traditionally argued that a capital gains tax would hurt a

small business owner selling his or her company — essentially taking money from that person’s retirement nest egg. Schumacher said that would occur only once, and not annually. “A one-time sale is a one-time tax,” he said. Sen. John Braun, R-Chehalis, a GOP budget leader in the Senate, said: “Inslee is calling for a multibillion-dollar tax increase on employers and the state’s first-ever tax on personal income to finance a $10 billion spending increase.” The House’s GOP budget leader, Rep. Bruce Chandler, R-Granger, said: “This is unnecessary, unsustainable, unrealistic and unfair to the taxpayers of this state. … Despite record collections, the governor says we need to raise taxes. … He also wants a capital gains tax, which is very likely unconstitutional, and will most likely Paid Advertising

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lead to a state income tax, something voters have rejected time and time again.” Meanwhile troubles with Puget Sound’s orcas could mean removing the four lower Snake river dams, which will have major economic ripple effects on Eastern Washington. This could include losing barge traffic to Lewiston, which is the most inland port for the Pacific Ocean traffic and a major transportation center for Inland Northwest farm products. Irrigators would extend their water intakes both inward and downward toward a lower and narrower Snake River. The effects of losing four hydropower dams on the Northwest’s power grid would have to be studied. “We’re vehemently opposed to that. … It’s easy for the people of Western Washington to say screw over the people on the east side,” Adrian said. Swanberg echoed that sentiment. “What Seattle doesn’t know, it does affect them (in food prices and electricity costs),” she said. Walsh said dam removal is “a distraction issue,” routinely brought up by western Washingtonians that eventually goes nowhere in a way similar to a handful of Eastern Washington legislators periodically calling for the state to split into two at the Cascade Mountains. The highest-profile part of Inslee’s proposed budget is more than $1 billion for measures directly or peripherally related to orca recovery across the government’s operations, transportation and capital budgets. That means the measures will be split among numerous coffers and numerous revenue sources. Sen. Kevin Ranker, D-Orcas Island, the lead legislator on orca issues, said there are plenty of Democratic and Republican legislators willing to sponsor bills to put all of Inslee’s orca plans into action. These include a three-year moratorium on watching the resident orca whales. These are 74 animals that a state orca recovery task force wants to increase to 84 in 10 years. Other measures proposed by Inslee — and recommended by the state orca recovery task force — include keeping all vessels at least 400 yards from the whale pods. Boat speeds would not be able to exceed seven knots within a half-mile of these pods. Ranker noted that people can still watch transient orcas and humpback whales in Washington’s waters. Orcas thrive on Chinook salmon, and Inslee called for the state hatcheries to increase chinook production by 18.6 million smolts annually, which is expected to lead to 186,000 returning adults each year. How the Tri-Cities could be affected is Inslee proposing a bill to set up a study of the economic and social effects of removing the four lower Snake River dams and what mitigating measures should be taken if the dams are torn down. Dams impede smolts swimming to the ocean. The task force is supposed to have recommendations to Inslee by November, with the caveat that target date might be adjusted to fit in with a similar federal study on the same issue due to be completed at the end of 2019.

Tri-Cities Area Journal of Business • January 2019

REAL ESTATE & CONSTRUCTION

Kennewick coffee roaster to expand, open shop in Richland

Family business to move to Horn Rapids, decades after it began in a Kennewick garage BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

A massive coffee bean roaster will need to be disassembled and moved to a new building in north Richland when Treasure Valley Coffee of the Columbia Basin opens its new headquarters, along with a retail store, in the Horn Rapids Business Park this summer. The $1.9 million investment includes land bought from the city of Richland. The family-owned company is a licensee of Treasure Valley Coffee Co., based in Boise. The local operations was started by John Roskelley, whose sons are the current owners. Roskelley began running the company out of a Kennewick garage in 1997. Since then, it’s grown to include 10 distribution routes in Eastern Washington and northeastern Oregon and two routes in western Washington. The new building will be at 2009 Logston Blvd., just off the bypass highway and close to the B Reactor Museum. “We have had this dream for quite a

while,” said Chris Roskelley, who owns the business with his brother, Paul Roskelley. “It’s probably been about four years in the making.” The finished building will be about 17,000 square feet, with about 800 square feet dedicated to a retail shop named Roscoe’s Coffee, a nod to the nickname held by Chris, Paul and their father. “They’ll be able to come in and get any mixed drink, hot or cold, including our signature mixed drinks,” Chris said. “There will be a drive-thru and we’ll have about six to eight blends available so customers will be able to try coffee or try our blends before they buy it.” Work on the building began in midDecember and is scheduled to be completed in late summer. It will be a sizable expansion from its 11,000-square-foot building off Chemical Drive in east Kennewick. Chris said the decision to move and expand was not only to increase the size of the company’s operation, but also to increase their local name recognition. “We’ve been here for 20-something

A longtime coffee roaster and distributor is moving to Richland and expanding to offer retail sales beyond its current wholesale deliveries. Treasure Valley Coffee expects its 17,000-square-foot building to be finished in late summer.

years, and since 2010 we’ve been doing roasting,” he said. “As far as I know, we have probably the biggest roaster in the TriCities, and people don’t know what they have here. You say, ‘Treasure Valley’ and they’ve never heard of us, because we just deliver off of trucks right now. But if someone can drive by and drink Roscoe’s Coffee, then they’re going to know it’s local.” Paul Roskelley has taken on the roasting

role of the operation. “It’s a little bit art, but mostly science,” he said, as a huge roaster, equipped with a digital monitor, processes 150-pound sacks of raw, or “green,” coffee beans in 18 minutes. Beans are cooled from nearly 450 degrees to room temperature in just a couple of minutes, and then sorted and sent through another machine to be bagged into one pound and five-pound bags. uCOFFEE, Page 24

Tri-Cities Area Journal of Business • January 2019

REAL ESTATE & CONSTRUCTION

MUSSER BROS. INC. 3125 RICKENBACKER DRIVE• PASCO

Musser Bros. Inc. completed a 9,000-square-foot corporate office and hangar near the company’s auction facility near the Tri-Cities Airport on Dec. 1. Musser Bros. Inc. has been in the area since 1982 and its newest project at 3125 Rickenbacker Drive in Pasco represents the continuation of the real estate, equipment and automobile auctioneer company’s growth. The new facility is adjacent to Trucks & Auto Auctions, a Musser Bros. Inc. affiliate, that offers cars, trucks, SUVs, ATVs and RVs at auction to the

public and dealers. Since 1956, Musser Bros. has been serving Washington, Oregon, Idaho, Montana and Wyoming. Musser Bros. sold its old hangar, built in 2008. The new hangar will be used to house company air-

planes, which are used to travel between the Pasco and Idaho businesses, and to host real estate auctions. MH Construction of Kennewick was the general contractor, and Wave Design Group of Kennewick designed the new spaces.

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Tri-Cities Area Journal of Business • January 2019

RDO Equipment Co. to launch new store format in Kennewick

Geared to hobby farmers, DIYers, store to sell John Deere mowers, Gators, attachments

BY JEFF MORROW

for Tri-Cities Area Journal of Business

Homeowners, hobby farmers and doit-yourselfers will be able to shop for lawn mowers, compact tractors and utility vehicles at a new store in Kennewick this spring. The new RDO Equipment Co. concept store will open by April 1 on the south side of Kennewick Ranch Home off Columbia Center Boulevard. RDO’s new retail store format will be the second of its kind in the chain. The first one opened in Bismarck, North Dakota, last fall. The Kennewick store will feature a large demo area where customers can test machines and learn how to properly pair attachments, with lawn and land equipment experts ready to assist. “We’re very excited about this,” said Jarrod Bailey, manager for the RDO Equipment Co., store in Pasco. “It’s something that the company has planned to do before I even started here (10 years ago). Our Pasco store is located out here in east Pasco. And it’s tough sometimes for people to get to. But it’s going be huge, having the new one being in the center of the Tri-Cities. Being centralized will help a lot of customers, being close to the Columbia Center area.” Bailey said RDO does a lot of field service for lawn mowers, with one field service truck already serving the Pasco store. With the new Kennewick store opening, it’ll add a second truck. “The Kennewick store will have a front showroom and a shop in the back,” said Bailey, who is excited RDO and Ranch & Home could partner at this

location. “We have a similar customer base as those at Ranch & Home,” Bailey said. Lindsay Paulson, RDO public relations specialist, said the Kennewick store will be 5,800 square feet. “We’re still waiting on an estimate of cost,” Paulson said. With a tentative opening of April 1, it should take six to eight weeks of construction to complete the project. The new store will produce 10 to 15 new jobs, Paulson said. Bailey said the new store managers will come from the Pasco store. “RDO is big at promoting from within,” Bailey said. The Pasco store at 1797 E. James St. is staying put, Bailey said. It’ll continue to support large agriculture and construction equipment and other select consumer products. “This (Kennewick store) is just in addition to our Pasco store,” he said. The Pasco store, which has been open since at least the early 1990s, has 61 employees. Overall, there are 75 people working in the region for the company. “Pasco is a hub for the Northwest,” said Bailey, who said there are RDO stores in Wasco, Hermiston, Pendleton, Sunnyside and Othello. “The majority of our business out of Pasco is for large agricultural customers, like traditional farmers,” Bailey said. “Being a John Deere dealer, we have the benefits of very good quality equipment.” And while RDO Equipment sells John Deere machines, “parts and service is a big thing,” Bailey said. “Keeping the up time for customers going is one of the critical things we do. We want

RDO Equipment Co.’s new lawn and land store, which opened recently in Bismarck, North Dakota, will be similar in concept to the one scheduled to open in Kennewick this spring next door to Ranch & Home. (Courtesy RDO Equipment Co.)

their down time to be as little as possible. Keeping them up and running is important to us.” Bailey estimates that one-eighth of RDO’s business in the Tri-Cities deals with lawn and garden. “And a quarter of that is commercial lawn mowing services,” he said. Much of that should move to Kennewick, as should the corporate utility trailers. “Those are used by people who have five to 10 acres, and by people who have places as small as two acres will use them,” Bailey said. “It could be people building fences, or using them as

little loaders.” RDO Equipment Co. just celebrated its 50th year in business. It was started by a 26-year-old farmer named Ron Offutt in Moorhead, Minnesota, in 1968. Offutt was farming alongside his father at the time, using rented John Deere equipment from a local dealership in nearby Casselton, North Dakota. Later that year, Offutt bought the store and then grew it, with 75 stores now in nine states, and partnerships on three other continents.

Tri-Cities Area Journal of Business • January 2019

Real Estate & Construction

West Richland voters asked to consider paying for $12.5M police station BY TRI-CITIES AREA JOURNAL OF BUSINESS STAFF

West Richland voters will be asked in April to consider a $12.5 million bond to build a larger police station. The bond would add 42 cents per $1,000 of assessed value to property taxes. That means owners of a $200,000 home would pay $84 a year. The proposed 22,500-square-foot police building would have a secure armory and evidence room and a safer lobby for visitors and staff. There also would be more space for police and parole officers, who currently work four to a desk. Parole officers must now meet with offenders in hallways or parking lots due to lack of space at

the current facility. There also would be additional space for officer training, community meetings and an improved kennel for animal control, which community members have requested. “Police departments are being closely scrutinized,” said police Chief Ben Majetich in a news release. “A larger, secure facility will improve policing services and reduce liability for taxpayers.” The location for the station isn’t set in stone, but two properties are under consideration: a 2.5-acre Bureau of Land Management-owned lot just east of Bombing Range Road off Morab Street and a privately-owned, 2.5-acre lot off Mount Adams View Drive. Both properties are near the

Benton Fire District 4 station on Bombing Range Road. A four- to five-acre lot is recommended for the project, according to the Police Facility Assessment Committee’s report. Land acquisition is in the preliminary stages and cannot move forward until after a successful bond vote. Several issues would be resolved with a larger facility, according to the chief. Problems with the current 3,000-squarefoot police facility, which was built in 1976, were highlighted during a recent homicide investigation in the city. Officers tried to conduct interviews with the suspect in a secure space and process evidence without breaking the chain of custody. “It was a nightmare. We were having to

whisper so the suspect couldn’t hear us. At one point, we even thought that there might not be enough room to dry the evidence for processing,” Majetich said. But, Majetich said, they were lucky there was one suspect in the case. There have been instances when multiple people have been arrested and held in administrative offices or forced to remain in patrol vehicles with an officer because of lack of space. The West Richland City Council voted in December to place the bond issue before voters after more than a year of work. A group of West Richland citizens spent six months assessing the police facility’s needs and found the current station to be “wholly inadequate.” Its recommendations mirrored those of an architectural and engineering firm that developed the plans for a proposed new facility. The city and police department also held multiple town hall meetings and public hearings. “Policing is getting harder and we will rise to the challenge. Having an adequate, secure facility is just as important to public safety as police officers and patrol cars,” Majetich said. West Richland has seen a 30 percent growth in its population since 2010, with about 15,300 currently living in city limits, according to a 2018 state estimate. The bond requires 60 percent voter approval to pass. The special election is April 23. More information about the project can be found online at westrichland.org/ proposed-police-facility-information.

COFFEE, From page 21 At the Kennewick site, Treasure Valley Coffee roasts about 3,000 pounds of beans a week, usually in a couple days. It expects to increase that amount in Richland. The company is proud of its efforts to stay mindful of its environmental footprint, using a method during roasting to recapture heat after burning off carbon dioxide, allowing it to recirculate, using less fuel for the roasting process. Treasure Valley Coffee employs 26 people, with about half made up of the distribution drivers who run the wholesale delivery routes. Also on the payroll is the general contractor for the Richland project, a family friend who is a now Treasure Valley employee. In addition, the wives of both brothers run the front office and handle the books for the family company. Graphics are made in-house and it’s a company-wide effort to create the blends local to the Tri-Cities. Treasure Valley Coffee has about 40 blends available, using only grade one and two coffee beans, with about a dozen of those blends developed in Kennewick. The brothers get by on a minimum of three to four cups of coffee a day, but Chris says he’ll have a whole pot when he’s traveling. Coffee fuels the drive to keep building the family business. “If you’re not growing, you’re dying,” Chris said. Treasure Valley Coffee: 509-582-2683; tvcnorthwest.com; Facebook.

Real Estate & Construction

Tri-Cities Area Journal of Business • January 2019

Longtime builders move to Tri-Cities after 22 years in North Dakota BY ELSIE PUIG

for Tri-Cities Area Journal of Business

A longtime custom home-building company with a successful operation in North Dakota has moved to the TriCities. The father-and-son team of John and Stephen Worlund decided to move Anasazi Builders after almost 22 years to be closer to family. “We had to turn down 21 homes. We finished the last two homes in North Dakota. It was a huge process to relocate,” John said. John has five children, 15 grandkids and four great-grandkids, all in the TriCities. Steven’s wife’s family lives in the Tri-Cities as well. They moved to Boise, Idaho, in 1997 to build a youth ranch for their nondenominational church — Evening Light Tabernacle. In 2012, a friend with connections to local developers lured them to North Dakota. The state had recently lost 4,000 homes to the 2011 Souris River flood, yet economic opportunity abounded thanks to the oil drilling boom. That year, Anasazi Builders built five homes in seven months. It didn’t take long for the business to become sought after home-builders, slowly setting the design and building standards for custom homes in North Dakota. “We fit in the custom home market. We help build people’s dream home. We

have an architect and a designer. We give people a virtual tour through their home as it’s being designed,” John said. “We do so much of the work, too, like carpentry and cabinets, to make sure that everything is done to our standards.” The houses they built in North Dakota ranged anywhere from $300,000 to $650,000. “When you’re in the custom home market, you’re building what they want,” Steven said. “We try to figure out what’s key for them, what is your intent for the home, what’s your sacred space. Some people want to put thousands of dollars into their kitchen.” But the homes also often include a touch of Anasazi — their company name comes from ancient American Indian people of the southwestern United States known for the first cliff dwellings in stack rocks. Sometimes they’ll use accent stack rock walls for the exterior, in the fireplace or an island wall. Their home-building business helped subsidize their international missionary work through Worldwide Missionary Outreach which took them — especially John — to places like the Philippines, South Africa, and Peru. There, they built churches and funded livelihood projects like buying fishing boats and nets, bicycles, block-making machines, or sponsoring first-year seeds for farming communities, or teaching money management skills. But, skilled and reliable labor was get-

Stephen, left, and John Worlund of Anasazi Builders moved their business from North Dakota to the Tri-Cities in November. The father and son said they relocated to be closer to family and to tap into a bigger labor work force.

ting hard to come by in North Dakota, forcing John to hold back on some of the missionary work to fill in where needed. “When it’s your life, it’s your passion,” said John of the missionary work. “As I’m getting older, there are more calls to do mission field work.” “If you feel led to do something because of family and church, we couldn’t be effective doing missionary work. We have to come somewhere where we can get the help we need,” John said. “This is what we do to make our way overseas,” Steven said. “That left me shorthanded. There is such a shortage of manpower in North Dakota and there are less people going into the construction

trade. I have two brothers and one brother-in-law in construction. There is help here.” And the winters in North Dakota were long, the Worlunds said, averaging about eight months during the building season, sometimes less. They would build two homes in spring and two in the fall, finishing the interior when winter set in. They said the move to the Tri-Cities — although mainly motivated by being closer to family — would also allow them to tap into a bigger work force. They kept a close watch on the Tri-City custom home market before making the move and have already started making connections with subcontractors. uANASAZI, Page 26

Tri-Cities Area Journal of Business • January 2019

ANASAZI, From page 25 “The market here is really booming. The price of land has shot up, but that’s a given,” John said. “We’ve been watching the market here for about a year and it’s been quite a price jump. We’re going to take it slow and see what happens.” With all their licenses in place, they hope to start building homes at the beginning of this year. But they know it won’t be easy. “It is getting difficult to come by land that is already developed, and the prices are getting up there,” John said. But they remain optimistic — and they’re already getting inquiries from potential clients. “Tri-Cities has a lot of quality builders. There are really high standards here for manpower, and really good standards in terms of energy efficiency,” John said. Anasazi Builders: 701-720-1773; Facebook.

REAL ESTATE & CONSTRUCTION

uBUSINESS BRIEFS TRIDEC sets annual meeting for Feb. 13

The Tri-City Development Council is planning its 20th annual Tri-Cities Regional Economic Outlook meeting next month. The meeting will be from 7:30 a.m. to 1:30 p.m. Feb. 13 at TRAC, 6600 Burden Blvd., Pasco. The keynote speaker will be Richard Herbert, institutional portfolio manager at Franklin Templeton Investments. Guest speakers will include Roger Snyder for a Pacific Northwest National Laboratory outlook, Brian Vance for a Department of Energy update and Ajsa Suljic for a regional economic outlook.

Cost is $75 for the day, $25 for lunch only for TRIDEC members and $35 for others, or $540 for a group of eight. For more information and to register, go to http://bit.ly/2Ffpaa6.

Vit plant moves 4 buildings to startup, testing phase

The vit plant, or Hanford Tank Waste and Immobilization Plant, at the Hanford nuclear reservation north of Richland has moved four utility buildings from construction into a startup and testing phase that is scheduled for completion this year. The buildings are part of 56 systems that support the Department of Energy’s plan to treat tank waste at the Hanford site by 2023. The four buildings include:

• The anhydrous ammonia facility that will store liquid ammonia and transfer gaseous ammonia to the vitrification facilities to reduce nitrogen oxide in their off-gas streams. • The glass former storage facility that will house the glass-forming materials to be mixed with Hanford tank waste, allowing the liquid waste to be converted to glass. • The chiller compressor building that houses major equipment for plant and instrument service air, and chilled water, which all provide utility services to the vit plant. • The steam plant that will supply high-pressure steam to equipment in the vitrification facilities. It also will provide low-pressure steam for heating equipment throughout the vit plant.

KEEWAYDIN DISCOVERY CENTER 125 S. CONWAY PLACE• KENNEWICK

The Kennewick School District completed a four-classroom, single-story addition to the Keewaydin Discovery Center in December. The 4,080 square feet of additional classroom space at 125 S. Conway Place will serve the needs of the district’s Early Childhood Education

and Assistance Program, or ECEAP, and preschool special needs program, helping to prepare pre-kindergarten students from low-income families for success in their future schooling. Funding for the $1.5 million project came from a combination of state and district capital

project funds. Banlin Construction of Kennewick was as the general contractor. Design West Architects of Kennewick was the architect.

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REAL ESTATE & CONSTRUCTION uBUSINESS BRIEFS WSU holding fundraiser for Carson College of BusinesS

Washington State University TriCities is holding a fundraiser lunch to benefit the Carson College of Business at the Richland campus. The Point to Success lunch will be from 10 a.m. to 2 p.m. Feb. 9 at Anthony’s, 550 Columbia Point Drive, Richland. Tim Hanni, wine expert and author of “Why You Like the Wines You Like,” will be the featured speaker, and KNDU news anchor Tracci Dial will be the master of ceremonies. Tickets are $100 per person and include mimosas, food and a live auction. To register, go to

tricities.wsu.edu/ccbbrunch. For more information, contact Maria Luisa Rodriguez at 509-372-7132 or maria_rodrigues@wsu.edu.

STCU credit union warns consumers of fraud attempt

STCU credit union is warning consumers that it received information that scammers have been targeting individuals with official-looking, but fake, emails that ask consumers to log into their STCU account. The link provided in the phishing email takes them to a website that mimics STCU’s site. Emails can be forwarded to abuse@stcu.org to help the credit union track the fraud. Those who are interesting in learning more about preventing identify theft and

Thank you for choosing Sage Design Group and congratulations on your new building!

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Tri-Cities Area Journal of Business • January 2019 fraud may attend free STCU workshops from 6 to 7 p.m. March 28 at the Kennewick Community Center, 500 S. Auburn St., and from 6 to 7 p.m. April 18 at the Richland Public Library, 955 Northgate Drive.

Ben Franklin Transit begins temporary services

Ben Franklin Transit launched the first of three interim services, following the abrupt closure of the contractor TriCity Taxi that provided taxi feeder service, night service and Sunday taxi service. The interim service called Finley General Demand will offer prescheduled pickups at 33 designated stop locations. The service will utilize DialA-Ride vehicles and drivers, and

customers will then be transported to four connection points in Kennewick to access the bus system. Customers must by reservations at least one day in advance by calling 877646-4287 from 8 a.m. to 5 p.m. Monday through Friday. Service hours are 6 a.m. to 8 a.m. Monday through Friday and from 7 a.m. to 7 p.m. Saturdays. Cost will be $1 each way, or a BFT Freedom Pass, which costs $50 for unlimited use of BFT, also may be used. Until BFT finds a third-party contractor to restore services, it also will temporarily add expanded services in Kennewick, Pasco, Richland and West Richland in February and extended operating hours in March. For more information, go to bft.org.

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Tri-Cities Area Journal of Business • January 2019

Contractors are facing labor shortages and increased material costs as they work to meet the demand for both residential and commercial construction in the Tri-Cities. (Courtesy Elite Construction and Development)

REAL ESTATE & CONSTRUCTION CONSTRUCTION, From page 1 Locally, at MH Construction in Kennewick, Vice President Alex Linde said that while the price of construction materials may be rising, he sees the bigger increase in labor costs. As a general contractor, he said it can be difficult to determine whether price increases from subcontractors reflect higher material costs or higher labor costs, but given the extreme labor shortage in the Tri-Cities, he believes it to be the latter. “Materials may stay the same, but what I’m finding is that labor is the deciding factor. That’s where I’m seeing all of the price increases coming from,” Linde said. The labor shortage is being compounded by the unusually low unemployment rate and high demand for construction in

area, but Linde believes it has actually been building for more than a decade as schools have funneled teens toward college rather than jobs in the construction industry. Linde would like to see the construction industry presented to teenagers as an equally viable — if not better — option to college. He’d also like to see teenagers gain hands-on experience on construction sites prior to turning 18, but state regulations generally don’t allow it. “We allow kids at 16 to drive, yet we don’t allow them to work a Skilsaw, so we can’t employ 16- or 17-year-olds on the construction sites during the summer,” he said. “We don’t even allow them to touch the industry until after they’ve completed high school.” uCONSTRUCTION, Page 31

BLEYHL CO-OP

6705 CHAPEL HILL BLVD.• PASCO Bleyhl Co-Op opened the doors of its new 20,000-square-foot retail store at 6705 Chapel Hill Blvd. in Pasco on Dec. 14. The new $5 million store replaces its previous Pasco shop and features an expanded hardware section, thanks to a partnership with True Value Hardware. More space means Bleyhl can offer a self-service

pet wash, as well as meeting space for local 4-H and FFA clubs, educational classes, workshops and more. Bleyhl also leases an 1,800-square-foot adjoining building to Great Harvest Bread Co.’s bakery and café. Mike and Karri Stoker opened the franchise in fall 2012 at 8378 W. Grandridge Blvd., behind Costco. Mountain States Construction of Sunnyside served as the general contractor on the project, while

Collaborative Design Architects of Billings, Montana, assisted with final layout and design plans. Bleyhl, based out of Grandview, is a co-op is owned and governed by nearly 1,000 Columbia Basin growers and farmers. The new Pasco store can be reached at 509-5475577.

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Tri-Cities Area Journal of Business • January 2019

REAL ESTATE & CONSTRUCTION CONSTRUCTION, From page 30 State regulations also can drive up operational costs for general contractors, according to Poland, who cited state requirements for mandatory paid-familyleave time and ongoing state fuel taxes as costly state regulations. “These laws and regulations have consequences. It comes back to the fact that it’s a matter of price,” Poland said. Additionally, prices for mandatory equipment such as fuel trucks, excavators and even pickup trucks have skyrocketed in the past 10 years, he said. Angelo Ciulla, senior project manager at Elite Construction & Development in Pasco, said prices for certain materials used in construction hit an all-time high last spring and summer, as the newly implemented tariffs, along with natural disasters

such as wildfires and hurricanes, led to sudden price increases of as much as 50 percent. At that time, material costs were increasing so quickly that price proposals from suppliers that would have normally been good for 15 to 30 days were only being honored for 24 to 48 hours, he said. Despite the higher cost of materials and labor, the appetite for construction in the Tri-Cities has not waned, forcing general contractors to think carefully about when to pass along price increases to the customer and when to accept lower margins. With limited labor to go around, especially at the subcontractor level, general contractors also are being forced to be selective about which projects to take on, Linde said. As a general contractor, MH Construction relies heavily on subcontrac-

tor bids, where the shortage is most pronounced. Often, subcontractors simply aren’t bidding right now, he said. “We’ll put out an invitation to bid and we’re begging people sometimes to bid them because they’re being picky. It’s almost like we need to sell them the job,” Linde said. “Good jobs that anybody would be happy to bid, people just aren’t bidding them.” At Elite Construction, the labor shortage and increased pricing has led the company to approach projects differently than in the past, often doing work that may have been subcontracted before, Ciulla said. But while demand for construction remains strong, the natural ebb and flow of the local economy points to an eventual slowdown, which should help to correct the labor shortage, contractors said.

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Recent growth in the Tri-Cities has made the area home to a number of highdollar public projects, such as new public schools, that have brought excess work to the area, but many are once-in-a-generation-type projects, the scope of which will not been seen again for a long time, Linde said. For customers looking to complete projects now, he advises keeping an open schedule and understanding that what seems like a six-month project is more likely to take nine months to a year. He said customers should be prepared to choose one area for compromise — either price, quality or speed. “Assuming no one wants to compromise on quality, I think everyone’s just going to have to compromise on speed if they don’t want the prices to go way high,” he said.

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REAL ESTATE & CONSTRUCTION

BRANTINGHAM PHASE V 3035 TRAVEL PLAZA WAY• PASCO

CRF Metal Works of Pasco recently completed construction on the fifth phase of its Brantingham development at 3035 Travel Plaza Way in Pasco. CRF’s recent project off Highway 395 was built to suit the needs of new tenant, Ag Spray Equipment, a major supplier of liquid fertilizer, as well as dry and liquid fertilizer handling equipment. Based out of the Midwest, Ag Spray Equipment has 10 regional stores across the U.S. The local branch serves Washington, Oregon, Idaho, parts of Montana and British Columbia. The company decided in early November to move its operations to Pasco from its former site in Othello, where it had outgrown its facilities. The new 10,000-square-foot building on three acres enables Ag Spray Equipment to house all of its operations in one building, increasing efficiencies in the areas of manufacturing and assembly. Ag Spray Equipment can be reached at 800634-2026.

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Tri-Cities Area Journal of Business • January 2019

$3.4M Pasco hangar to house atmospheric radiation research aircraft BY TRI-CITIES AREA JOURNAL OF BUSINESS STAFF

Construction is underway on a new $3.4 million hangar for the Department of Energy’s Atmospheric Radiation Measurement aerial facility. The 18,240-square-foot, pre-engineered metal building will provide an operations base for the ARM aerial facility, operated for DOE by the Pacific Northwest National Laboratory. The facility has been based at the Tri-Cities Airport Industrial Park for more than three decades. The new building at the Tri-Cities Airport Business Center — at the corner of Argent Road and Morasch Lane in Pasco — will provide nearly 9,000 square feet of hangar space to house a new research aircraft, 6,740-square-feet of space for the aircraft maintenance and science support and 2,700 square feet of office area. Officials held a groundbreaking ceremony Dec. 19. The ARM aerial facility serves the global science community, focusing on providing airborne measurements of cloud microphysical properties and radiative properties of the atmosphere, as well as aerosols and trace gases. The information researchers collect is downloaded into the ARM Data Center allowing scientists worldwide to access the data for use in their research. A new aircraft to support the facility is being planned and will require a larger hangar space than the current Gulfstream-159, or G-1 aircraft, that PNNL has operated out of the Tri-Cities Airport since the 1960s. Congress allocated $17.7 million to DOE to buy a replacement aircraft and retrofit the aircraft as a “flying laboratory.” A new airplane has not been purchased but a request for proposal is expected to be issued this month for a Bombardier CRJ200 family regional jet. The new airplane will have more space, fly faster and higher than the G-1, enabling additional types of aerial sampling. It is expected the new airplane will fly its first ARM mission in fiscal year 2022. The new, larger hangar will be leased by Battelle, which operates PNNL for DOE. In addition to the aircraft, the ARM aerial facility’s sophisticated air sampling instruments and research equipment, including a large unmanned aerial system, will be housed in the new building. The hangar project funded with a $2 million loan/grant from the state Community Economic Revitalization Board, $350,000 from Franklin County’s economic development fund, $500,000 from the Port of Pasco, and $550,000 from DOE for tenant-customized improvements. The new hangar exemplifies the uniqueness of the Tri-Cities Airport Business Center, which allows companies private access to the commercial airfield on one side of the property while maintaining a public storefront on the business center side, according to the port. “This hangar not only allows us to con-

tinue to support ARM and PNNL as the top employer in the Tri-Cities, it highlights the role the Tri-Cities Airport plays in economic development. We believe this hangar will continue and encourage the growth of corporate aviation at the airport,” said Port of Pasco Commission President Jean Ryckman in a news release. “Franklin County is pleased to participate in this project and looks forward to the important economic and technological benefits it will generate here,” said Franklin County Commission Chair Brad Peck in a release. DGR Grant of Richland is the general contractor on the project, which is expected to be completed in about eight months. uHANGAR, Page 34

The G-1 aircraft stationed at the Pasco hangar returned from its final mission, an air sampling mission in Argentina, on Dec. 17. Over the past 30 years it has flown hundreds of thousands of miles as part of research campaigns throughout the U.S. as well as in South America, Europe and the Pacific. A new $17.7 million replacement aircraft, complete with a “flying laboratory,” will take its place at the new hangar. (Courtesy Andrea Starr, PNNL)

Tri-Cities Area Journal of Business • January 2019

HANGAR, From page 33 On Dec. 17, the G-1 aircraft stationed at the hangar returned to Pasco from its final mission, an air sampling mission in Argentina. Over the past 30 years it has flown hundreds of thousands of miles as part of research campaigns throughout the U.S. as well as in South America, Europe and the Pacific. The aircraft had to be retired after Gulfstream stopped supporting the mechanical structure in 2006 and it became difficult to get certified repair shops to work on certain systems.

REAL ESTATE & CONSTRUCTION

uBUSINESS BRIEFS Columbia reaches historical high for nuclear generation Columbia Generating Station north of Richland produced more clean, nuclear energy for the Northwest power grid in 2018 than any other year in its 34-year history. It sent more than 9.7 million megawatt-hours of electricity to the grid, surpassing the previous generation record set in 2016 (9.6 million MWhrs). Columbia has set new generation records five out of the last seven years. At a five-year average of 7.25 cents per kilowatt-hour, Washington state has the lowest cost of retail electricity in

the United States, according to the U.S. Energy Information Administration. Energy Northwest estimates Columbia’s cost of power will average 4.2 cents per kilowatt-hour during its 2018-19 fuel cycle, down from 6.3 cents, adjusted for inflation, during its 2010-11 cycle. Columbia refuels every two years, resulting in higher cost of power during refueling years and lower cost during non-refueling, full-run years. As a result, generation costs are measured in two-year averages.

Benton PUD giving away nightlights for donations

Benton PUD is offering LED nightlights to customers who make dona-

tions to the Benton PUD’s Helping Hands Program. Customers who pledge a recurring at least a monthly $1 donation, increase their currently monthly donation or make a one-time donation of $10 or more are eligible to receive the nightlight while supplies last. The lights must be picked up in person at Benton PUD offices at 2721 W. 10th Ave in Kennewick or 250 N. Gap Road in Prosser. The Helping Hands Program provides assistance to those meeting guidelines who need help on their bill and is distributed by Communication Action Connections.

CIBB PROPERTIES, BUILDING 2 5401 RIDGELINE DRIVE• KENNEWICK

Three of six suites are available in a new, multi-tenant building in Kennewick’s Southridge area. Recently completed by CIBB Properties LLC, the new building at 5401 Ridgeline Drive consists of a shell building with 7,743 square feet and a stucco and brick exterior.

Spaces are ready to be built to suit tenant needs. Rent ranges from $19 to $22 per square foot with a triple net lease. The lease rate depends on the tenant improvement allowance. Chris Bagley of Bagley Landscape Construction Inc. of Pasco was the general contractor.

Jason Archibald of Archibald & Co. Architects of Richland designed the building. For leasing information and showings, contact FDM Development’s Dean Maldonado at 360719-0276 or Jaimi Marden at 509-987-2334.

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Tri-Cities Area Journal of Business • January 2019

REAL ESTATE & CONSTRUCTION uBUSINESS BRIEFS Workshop to offers tools to market wine to millennials

Walla Walla Community College’s Institute for Enology and Viticulture is holding a workshop, “Marketing Wine to Millennials” from noon to 5 p.m. March 8 at 3020 E. Isaacs Ave., Walla Walla. Cost is $32, which includes a post-workshop reception. Topics and speakers include: • What’s a Millennial and Are They Different? Dawn Loeliger, marketing and co-owner of TruthTeller Winery and Laura Rose-Grabinski, club and marketing manager. • How to Reach Them: Tools and

Messaging, Jeremy Schubert, owner of Lunabean Media – Digital Marketing for Wineries. • Major Motivators: Experiences vs. Events, Shae Frichette, co-owner Fichette Winery • Wine Travel and Tourism for Millennials, Ron Williams, executive director of Visit Walla Walla. • Putting It All Together, Ashley Mahan, chief operating officer, Walla Walla Wine Alliance. Go to wwcc.edu/community to register. For more information, contact Marilyn Hawkins at 509-876-8202 or mhawkins@prhawk.com and Danielle Swan-Froese at 509-524-5170 or danielle.swan-froese@wwcc.edu.

Benton REA breaks tradition to hold annual meeting in West Richland

The Benton Rural Electric Association will be holding its annual meeting outside of Prosser for the first time since its inception in 1937. The annual members meeting will be July 13 at Enterprise Middle School in West Richland. About 60 percent of members live in or around West Richland — a significant historical change. The meeting will feature an appreciation lunch, children’s games and activities as well as tethered rides on a hot air balloon. More details will be released in June.

KID title transfer approved by House, moves to Senate

The U.S. House of Representatives passed legislation introduced by Rep. Dan Newhouse, R-Washington, to transfer title of U.S. Bureau of Reclamation related works and lands to the Kennewick Irrigation District. The legislation will transfer title of works beginning at KID’s head gate and extending 40 miles east to the Columbia River. The transfer includes the conveyance of land and project facilities and should be completed no later than two years after the enactment. H.R. 6652 must now be approved by the Senate.

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Tri-Cities Area Journal of Business • January 2019

uBUSINESS BRIEFS Inslee 1-1 in friendly wagers with rival governors

Thanks to an Alamo Bowl win by the Cougars, Olympia’s Thurston County Food Bank should be expecting a shipment of Iowa bacon and other pork products. Washington Gov. Jay Inslee and Iowa Gov. Kim Reynolds wagered as Washington State University and Iowa State University football teams faced off in the Alamo Bowl in December. The No. 1 apple grower in the U.S. also became the No. 1 team as the Cougars beat the Cyclones 28-26. Vande Rose Farms and Lynch Family

Foundation in Iowa will send the meat to the food bank for those in need. Had Iowa prevailed, Inslee pledged a feast of Ivar’s clam chowder to the Northeast Iowa Food Bank. Inslee didn’t stop there. He also made a friendly wager with North Dakota Gov. Doug Burgum over the North Dakota University Bison vs. Eastern Washington University Eagles rivalry in the NCAA Division I Championship game. After a 38-24 Bison win over the Eagles, a shipment of Washington treats including apples from Hansen Fruit and Fuji Apple, lavender soda from Dry Soda Company and candy from the home of Applets and Cotlets — Liberty Orchards — will be sent to North Dakota’s Great Plains Food Bank. Burgum’s pledge of

REAL ESTATE & CONSTRUCTION pretzels, honey and bison steaks will instead stay in their home state following the football team’s seventh title win in eight years.

State unemployment tax rates unchanged for 2019

Washington’s unemployment tax rates in 2019 will remain the same as in 2018, said the Employment Security Department. Rates in all 40 tax classes will remain the same. About 83 percent of employers will move into a lower rate class or stay the same. Employers will pay unemployment taxes on the first $49,800 of each employee’s earnings. For an employee earning $49,800 or more, the total tax for

the year will range from $64 to $2,849.

Minimum wage increases to $12 an hour for those over 16 The state’s minimum wage increased to $12 starting with the new year for workers 16 and older following the passage of Initiative 1433 in 2016. Employers can pay 85 percent of the minimum wage to those younger than 16. Washington law also does not allow tips to count toward a worker’s minimum wage. Next year, the minimum wage will increase to $13.50. Sea-Tac, Seattle and Tacoma all have their own minimum wages separate from the state rate.

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REAL ESTATE & CONSTRUCTION uBUSINESS BRIEFS Business plan competition set Jan. 17 in Prosser

Those interesting in boosting their startup company plans can participate in the Prosser Economic Development Association’s Mustang Business Plan Competition. The free event, which is open to the public, is at 5:30 p.m. Jan. 17 at the Walter Clore Wine & Culinary Center, 2140 Wine Country Road, Prosser. A panel of judges will score the presentations of start-up company business plans based upon concept, business model, marketing and financial analysis. Students will win prizes and learn how to start their

own business. The competition is open to individuals or teams. For more information, contact Doug Fassler at 509-786-1224 or doug.fassler@ prosserschools.org.

Nominations being sought for state volunteer awards

Serve Washington is seeking nominations for volunteers who stand out in communities throughout the state. Awards will honor individuals, groups and organizations that made a significant contribution to their communities in 2018. Honorees will be recognized at a ceremony on April 12 at the Governor’s mansion in Olympia. Nominations are being accepted until

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5 p.m. Feb. 8. For more information and to nominate a volunteer, go to servewashington.wa.gov.

IRS’ new Instagram aims to reach young adults

To reach more young adults the IRS decided to meet them on their own turf with the launch of its new Instagram account @irsnews. About a third of U.S. adults use Instagram and check their accounts at least once a day, according to the Pew Research Center. One of the IRS’s taxpayer-friendly posts features an animated gif of an iguana changing colors and then perching atop a sign directing them to read Publication

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Tri-Cities Area Journal of Business • January 2019

LEGAL & TAXES

Legal Aid group honors area attorneys’ contributions

BY LAURA KOSTAD

for Tri-Cities Area Journal of Business

Each year about 4,000 people reach out to the Benton-Franklin Legal Aid Society for legal assistance. And each year Tri-City area attorneys donate their time to help those they can. The nonprofit society recently held its annual awards luncheon to recognize attorneys who significantly contributed to the organization’s efforts to find pro bono legal representation for those who otherwise wouldn’t be able to afford it. About 100 attended the function, including attorneys and judges. “The Benton Franklin Bar Association is one of the best bars in the state. They really do go above and beyond the call of duty,” said Barbara Otte, executive director of Benton-Franklin Legal Aid Society. “They provide more full representation for low-income clients than a lot of other counties in the state and they support our program a lot with all of their volunteering.” In 2017, area attorneys collectively donated 1,790 hours, the equivalent of about $358,000 (assuming $200 per hour) in billable hours, Otte said. That’s up from $303,000, or 1,515

hours, in 2016. Otte said Legal Aid receives 300 to 400 walk-ins and calls per month from those reaching out for help. The majority are family law-related cases. Of those, 97 were assigned full representation last year, with 336 clients receiving some form of free legal counsel through the society. According to Otte, there are about 350 active attorneys in Tri-Cities, three quarters of whom comprise the network she turns to when seeking counsel for clients. Otte said having a legal community dedicated to her agency’s cause is the foundation of its success. The Benton-Franklin Legal Aid Society’s 2018 awards went to: • Edwardo “Eddie” Morfin of Morfin Law Firm in Kennewick received the Schuster Award. The late Gene Schuster was an attorney who had a hand in starting the legal aid proEdwardo Morfin gram, Otte said. The recipient is usually a younger attorney who’s gone

above and beyond by either having taken the most cases that year or helped out with the society’s free legal counsel clinics. • Mario Ledesma of Ledesma Law Offices in Richland received the Al Yencolpal Award. Yencolpal was a huge supporter of the Benton-Franklin Legal Aid Society and the award is given in his honor to a senior attorney who’s supported Legal Aid in one Mario Ledesma way or another, such as donating or helping with the society’s fundraising activities, Otte said. • Plaques were awarded to the following attorneys for taking on at least two pro bono cases this past year: Amy Crider of Defoe Pickett Law Office in Kennewick; Kolleen Ledgerwood of Ledgerwood Law Office in Kennewick; Tom Roach of Roach & Bishop Law Offices in Pasco; Katherine Sierra-Kelly of Gravis Law in Richland; Alan J. Tindell Attorney at Law of Kennewick; and Teresita Varela of Varela Legal in Yakima. • Two new awards also were given this

year to Kari Hayles-Davenport — a previous recipient of the Gene Schuster Award — who took on “a ton of cases,” Otte said. “We created (an award) just for her for going Kari Haylesabove and Davenport beyond. She takes many of her cases to trial,” she said. • Chvatal King Law of Richland was the recipient of the second new award for its ongoing support to the society. The firm’s Patricia Chvatal said Legal Aid is “a very important part of our legal communiPatricia Chvatal ty.” She has practiced since 1976 and was one of the first women to practice in the Tri-City area. uLEGAL AID, Page 45

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Tri-Cities Area Journal of Business • January 2019

Assessor anticipates decrease in property tax bills BY JESSICA HOEFER

for Tri-Cities Area Journal of Business

Despite a higher state school tax levy in 2018, families in Eastern Washington may see some relief on their property tax bill this year. That’s because the state collected more than it anticipated, and to alleviate the tax burden for 2019, the state rate of $2.70 per $1,000 of assessed property value will drop to $2.40-per-$1,000. The state rate is still higher than what taxpayers saw prior to 2018. However, Part 2 of House Bill 2242, which was passed by the state Legislature in 2017, reduces the collection of local maintenance and operations levies to $1.50 per $1,000 of assessed value. It goes into effect this year. School districts with voter-approved multi-year M&O levies will see a reduction on their tax bills starting in February. “The M&O (in Pasco) was $3.95, and it’s going to $1.50, so it’s a significant reduction,” said Peter McEnderfer, who became the newly elected Franklin County assessor when Steve Marks retired at the end of 2018. This year, M&O levies will be called enrichment levies, and in Kahlotus, for example, the school district will get $1.05-per-$1,000 to $1.10-per-$1,000, McEnderfer said. Capital facility levies will not be considered an enrichment levy. While on the surface it sounds like the reduction in Part 2 of the house bill will be

Franklin County Assessor Peter McEnderfer reviews levy calculations. He’s optimistic taxpayers will feel relief in their tax bill this year.

a financial loss for local schools, thanks to state dollars generated from areas such as King County, a revenue surplus will help smaller districts in Benton and Franklin counties, which is what the house bill was intended to do. “In general, the eastern rural side of the side benefited more,” McEnderfer said. “We’re anticipating most people will realize some kind of relief this year in their tax bill.” The Washington Policy Center, a nonprofit, independent think tank, noted that the greatest financial impact will be felt in the state’s most populous county. However, King County is closely followed by Snohomish and Pierce counties. Paul Guppy, the center’s vice president for

research, noted property taxes are increasing in King County by an average of 17 percent, adding about $800 in taxes on a median-value home estimated at $509,000. The higher tax burden in those counties will result in a cut in household income for nearly every family as lawmakers sought to address education spending. Washington’s constitution guarantees a child a fully funded basic K-12 education, but seven years ago the state’s Supreme Court determined Washington was not meeting its obligation and required the Legislature to produce a funding plan. This decision is known as the McCleary ruling. “Of course, elected politicians of both parties want to respond and say, ‘We’re providing resources for schools,’ ” Guppy

LEGAL & TAXES

said. “And that’s how the Legislature responded, by increasing state property taxes.” Guppy went on to note that the state added $4 billion to its budget to address the issue. There are almost 300 school districts in the state, and Washington’s budget is $18 billion for public education over a two-year cycle. That equates to about $13,000 per student on average per year. “Public officials are not sensitive on how the tax tends to hit individual people. The way they operate, they look at the top line numbers. They’re also trying to respond to pressures,” Guppy said. “They want to be able to signal, ‘We are funding schools.’ But unemployment is low and Washington in particular is having a tech boom. The Legislature is seeing a ton of money come in.” Guppy said voters have expressed concerns to politicians about property tax increases, and there could be a future ballot measure for a property tax cut. However, the Washington Policy Center said the government might propose a capital gains tax or a carbon tax combined with relief on property tax. School taxes equate to about 65 percent to 75 percent of a taxpayer’s property tax bill between state rate — Part 1 on a person’s bill— and Part 2’s enrichment levies. Property taxes also include dollars for fire districts, mosquito control, county tax, city tax, water control districts and libraries, for instance. uTAXES, Page 42

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Tri-Cities Area Journal of Business • January 2019

LEGAL & TAXES

Kennewick attorney fields frequently asked questions about DUIs BY ALEX JOHNSON

for Tri-Cities Area Journal of Business

As a DUI defense attorney here in the Tri-Cities, I often get questions about this area of law. Here are short answers to frequently asked questions about driving under the influence. 1. What is the “legal limit” for a DUI? When I’m asked this question, it is usually pertaining to alcohol-based DUIs. The legal limit for an alcoholbased DUI in Washington is 0.08 g/210L of breath. However, you do not have to be over the legal limit to be arrested, charged and convicted of DUI. A law enforcement officer can place you under arrest if he or she believes that your ability to drive is impaired by the alcohol that you have consumed. In addition, if a prosecutor can prove to a jury that your ability to drive was affected by the alcohol you have consumed, you can be convicted of DUI regardless of the result of your breath sample. With the legalization of marijuana a few years ago, our legislation was forced to adopt a legal limit for marijuana. The limit is 5 ng/mL of active THC. This does not include the residual THCcarboxy that remains in your system for several weeks after consuming marijuana. In Washington, marijuana can only be tested through a blood sample. A marijuana-based DUI is prosecuted similarly to an alcohol-based DUI in the sense that it can be prosecuted by showing you are over the legal limit or that your ability to drive was affected by the marijuana you consumed. It is worth noting that DUIs are not limited to alcohol or marijuana. You could be charged with DUI after consuming illicit drugs, abusing prescription drugs or even consuming prescription drugs within levels as prescribed by

a doctor. The bottom line is if your ability to drive is affected — regardless of the type and amount of substance consumed — you could find yourself charged Alex Johnson with a DUI. Johnson & 2. What will Johnson Law Firm a DUI cost? DUIs are expensive! Generally, the fines and costs imposed for a first-offense DUI will be anywhere between $1,250 and $2,500, but the maximum fine that could be imposed is $5,000. The total amount is usually dependent upon the law enforcement agency that arrested you and the particular facts of the case. Costs seem to come at you from every angle, including Department of Licensing fees, ignition interlock fees, increased insurance rates and alcohol classes. One of the major costs is the lawyer that you hire, which can be several thousands of dollars. It is not unusual for a first offense DUI to cost a total of $10,000. 3. Will my license by suspended? If convicted of a DUI, yes. Depending on the number of times you have been convicted of DUI, a license suspension can vary from 90 days to several years. Even if your DUI case is dismissed or amended to another charge in court, the Department of Licensing can still suspend your license. I always tell people that when they’re charged with DUI, they’ll have two cases — a criminal case and a DOL case. It is critical to address both matters. 4. Should I blow into the breath machine? There are two types of “breath sam-

ples” that may be requested during a DUI investigation. The first is a roadside breath test, or preliminary breath test, called the PBT. The second is an evidentiary breath test done at a jail or police station, the blood alcohol concentration, or BAC, test. The PBT test is completely voluntary and cannot be used as evidence of guilt. It is primarily used by the officer for probable cause to arrest. Therefore, I usually tell people to decline taking that test. The BAC test is very different. There are exceptions to every rule, but generally it is best to provide a breath sample at the jail after you are arrested. The reasons for this are two-fold. First, if you refuse to take a breath test, the law enforcement officer has the ability to call a judge, get a telephonic search warrant, and take you to the hospital to draw your blood. Since refusing the BAC test does not prevent law enforcement from obtaining a sample, it is usually more beneficial to blow into the BAC machine upon arrest. Second, your jail sentence, fines and costs, and license suspension are increased upon refusal of the BAC. 5. Should I do the field sobriety tests? Most people don’t know that field sobriety tests (roadside agility tests) are completely voluntary. I have always advised people to decline taking these tests. They are often administered late at night, on the side of a busy road or highway, and many times, in clothing

that is not suitable for agility testing. In addition, most people become extremely nervous when asked to step out of the car by an officer and may not perform at their best. This is almost always a recipe for disaster. To make things worse, scoring conducted on the tests doesn’t take into account your age, weight, health conditions, or natural coordination. In short, it is unlikely that taking these tests will benefit your case. Everyone feels a certain level of dread when they see the flashing lights of a police car behind them. If you are stopped after drinking alcohol or consuming marijuana, illegal substances, or even prescription drugs, you could find yourself under arrest and prosecuted for DUI. If this happens to you, the best thing to do is hire an attorney who specializes in DUI defense. DUIs are legally and scientifically complex. Being charged with a DUI can significantly impact your livelihood, reputation and career. Therefore, the best choice you can make is hiring an attorney who is well versed in the complexities of DUI defense. The right attorney can make all the difference. Alex Johnson, a partner/owner of the Johnson & Johnson Law Firm in Kennewick, has been a lawyer for 12 years and focuses his practice on representing people charged with driving under the influence.

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Tri-Cities Area Journal of Business • January 2019

Legal & Taxes TAXES, From page 40 “In a town with a port, there will be some kind of port tax,” Guppy said. “Most of those — called junior taxing districts — those are pennies per $1,000 of value.” Pasco’s 2018 tax rate is $1.75 per $1,000 of assessed property value. In Kennewick, it’s $2.17-per-$1,000, and in Richland it’s $2.98-per-$1,000, according to Benton County Assessor’s Office staff. Benton County Assessor Bill Spencer could not be reached for comment for this report. McEnderfer said, in general, the Washington State Association of County Assessors has a concern with the type of state rate-based property tax collection for schools initiated under this new legislation. “The way it currently works for most districts — like the fire district — is they give us the amount their budget requires, we check what limit they can collect, we know the values, that determines the rate. If the value goes up and the budget remains the same, the levy rate would go down. But with the rate-based system on Part 1, if the value goes down, the taxes go up. Most assessors don’t agree with a rate-based system,” said McEnderfer, who said in four years, the state school tax rate goes back to a budget-based system. School districts must obtain Office of Superintendent of Public Instruction approval for their expenditure plan prior to placing a new enrichment levy before voters for collection year 2020 and thereafter.

uGRANTS • Lav Khot, assistant professor at Washington State University’s Department of Biological Systems Engineering, has received a three-year $300,000 grant from the Foundation of Food and Agriculture Research to study reducing the use of broad-spectrum pesticides that leave residues on food. Khot is collaborating with WSU scientists Betsy Beer, Michelle Moyer. Gwen Hoheisel and Matthew Grieshop. • Benton-Franklin Workforce Development Council awarded a twoyear $477,894 grant to Goodwill Industries of the Columbia from the Families Forward Demonstration Project. The project will help 100 noncustodial parents to improve earnings and family stability through career counseling, training, placement and other support systems. • The Beverly J. Jewell Memorial Foundation gave $50,000 to Kadlec Regional Medical Center to assist in a $126,000 project to buy five infant beds at the hospital’s neonatal intensive care unit — the Tri-City area’s only Level 3 NICU facility. The specialized beds are critical for a preemie baby’s first 30 days of life.

uCERTIFICATION •Cory Briggs of Petersen Hastings in Kennewick passed the Certified Financial Planner Board of Standards examination.

Tri-Cities Area Journal of Business • January 2019

Legal & Taxes

Local CPAs optimistic most business owners will pay fewer taxes in 2018 BY JESSICA HOEFER

for Tri-Cities Area Journal of Business

Although business owners were anxious to see how the tax code overhaul affected their bottom line in 2018, many are scratching their heads as regulations fall into place. “I’ve put in enough hours at this point it feels as though I’m getting ready to take another CPA exam,” said Ty Schatz, a certified public accountant with Michels & Schilperoort P.S. in Sunnyside. The IRS still has several forms that are not finalized, said Schatz, who said he wouldn’t be surprised if there’s a delay in the ability to file tax returns this year, especially with the partial government shutdown. “We do not have court cases or final regulations as of yet to rely on, so our interpretations of the law have sparked a lot of conversations among professionals,” said Schatz, who noted for example that the mortgage insurance deduction was reinstated in late February, causing affected taxpayers to amend their already filed returns to reflect the change. “We could see similar things happen this year with so many changes taking effect.” Overall, he said, most of the tax adjustments have been beneficial to business owners. Chris Porter, a partner at Richland’s PorterKinney PC, agreed. “Almost all of us will pay less in taxes in 2018. While it’s true rich payers will pay lower taxes, across the board the vast

Chris Porter, a partner at Richland’s PorterKinney PC, said thanks to this year’s tax code overhaul “almost all of us will pay less in taxes in 2018. … It’s not political, it’s math.” Overall, most of the tax adjustments have been beneficial to business owners, according to two local certified public accountants. (Courtesy PorterKinney PC)

majority will pay less. It’s not political, it’s math,” Porter said. Personal exemptions have been eliminated, but a higher standard deduction has been put in its place. Businesses large and small also will see changes, as the tax code includes lowering the C-Corp tax rate for larger businesses from 35 percent to 21 percent. Small business owners, such as sole proprietorships, S-Corps and partnerships, will benefit from a passthrough deduction of 20 percent. “So, if a business owner makes $100,000 a year, they can basically deduct $20,000 and only pay taxes on $80,000,” Porter said.

One primary factor to determine if a small business qualifies is income. Highincome business owners will have limitations, Porter said. Single individuals, for instance, making $157,500 or less can generally take the deduction in full, while married couples making $315,000 can qualify. “There’s a complicated list of limitations that set in when income exceeds those thresholds,” Porter said. Among other changes, marginal tax rates were lowered for anyone who receives a W2, but they also apply to owners of pass-through businesses as that income is passed through to the owner’s

individual income and taxes. There are seven tax rates, and almost all of them have been cut. The 15 percent tax rate—which applies to married couples with annual taxable income of $19,050 to $77,400, has been reduced to 12 percent. A change that could provide a significant benefit for businesses is the increase in the threshold at which point businesses have to switch from the cash-basis accounting method for tax purposes to the accrual method. “For the most part now, companies can elect to utilize the cash basis method when it has average gross receipts under $25 million. This could allow many businesses to move back to the cash basis, which could provide some tax benefits,” Schatz said. “Additionally, with that threshold, companies holding inventory may have an opportunity to adjust how costs are applied to those inventories leading to the ability to be more aggressive in expensing items rather than having to inventory the cost and delay recognition of those expenses.” State and Local Tax, or SALT, deductions were without limitation in 2017, said Porter, but starting in 2018, the IRS imposed a $10,000 cap per tax return. Washington taxpayers typically don’t pay as much as higher-tax states such as California and Oregon. However, if taxpayers buy a vehicle or remodel a home, they might exceed the cap, in which case they will not realize the full value of the deduction as they would have in the past. uTAX CODE, Page 45

Tri-Cities Area Journal of Business • January 2019

Legal & Taxes

Tax code provides gift that doesn’t receive the appreciation it’s due BY BEAU RUFF

for Tri-Cities Area Journal of Business

At death, there is a little-known tax benefit that the federal government provides. It is an adjustment to tax basis and it can have a profound effect on the taxation of the assets owned at death. This column discusses two kinds of taxes that apply at death: the estate tax and the step-up in tax basis. Most Americans fear the estate tax. In reality, according to the UrbanBrookings Tax Policy Center, in 2013 less than 1 percent of people who died actually paid any federal estate tax. And since the Trump tax cuts which increased the threshold for people subject to the estate tax, the current figure is likely much lower. The savvy reader knows that in Washington state the federal estate tax is not the only game in town. Indeed, Washington is one of a few states that imposes its own estate tax. But, it only applies to estates valued at roughly $2.2 million. As one might imagine, the reality is that very few people die with that kind of money. And, for those “unfortunate” individuals who do need to pay either the Washington estate tax (by having more than $2.2 million) or the federal estate tax (by having more than about $11 million), you might find some solace in the knowledge that a good estate planning attorney can help to reduce or eliminate that tax burden. So, on the one hand, the reality is

that most people will pay no estate tax. On the other hand, the estate tax is still a feared and misunderstood tax. Oh, but the tax code does provide a gift that does not receive the appreciation it is due. Though most fear the estate tax (which is likely inapplicable to their estate), most don’t know about the huge tax benefit that applies to everyone: the step-up in tax basis. First, a primer on capital gains income tax. If a person buys a building for $100,000 and 10 years later sells the building for $300,000, then that person has $200,000 of taxable gains subject to the capital gains tax (about 15 percent but can be as high as 23.8 percent). The tax is assessed on the difference between the sale price (fair market value) and the basis (simplistically, the amount paid for the asset). The tax code provides a boon for individuals with capital assets (think stocks, land, buildings, real estate, etc.). That is, at death, the asset gets a new basis equal to its then current fair market value. Taking the above example of the building — if it is sold after death, it gets a new tax basis equal to the then current fair market value of $300,000. Accordingly, when it is sold for $300,000, the taxable gain is zero ($300,000 sale price minus the new $300,000 fair market value tax basis). This means there will be zero income tax assessed on the sale of the capital

asset after death. Notably, the step-up in tax basis does not apply to socalled income in respect of a decedent (for example, qualiBeau Ruff fied retirement Cornerstone accounts). Wealth Strategies A more robust example will provide further clarity. Let’s assume a woman owns a piece of land bought in 1980. It was purchased for $100,000. Today, it is worth $3 million. For simplicity, assume that is her only asset. If the individual sold the land before death, then she would pay almost $700,000 in income tax. Likewise, if she gifted the land to her children before death, they would take mom’s tax basis and would pay a similar tax upon sale. If instead she died with the asset, two important things would happen. First, she would have to pay estate tax (assuming she was not able to engage

in any estate tax planning). The approximate estate tax due would be $80,000. But, then, when the heirs sold the asset, the second important death tax issue is presented. The land would be granted a new tax basis equal to its then fair market value of $3 million. This means that there would be zero income tax assessed. So, even though the estate tax was paid, the net tax savings to the heirs (all other things being equal) would be about $600,000. This is one reason, among others, that the plan to gift assets during life to avoid the estate tax needs to be balanced against the loss of other potentially applicable tax benefits. As always, a professional estate planner is best suited to advise you on your particular situation. Attorney Beau Ruff works for Cornerstone Wealth Strategies, a fullservice independent investment management and financial planning firm in Kennewick.

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Tri-Cities Area Journal of Business • January 2019

LEGAL & TAXES LEGAL AID, From page 39 “(The Benton-Franklin Legal Aid Society) is a great conduit,” said Allison King of Chvatal King Law, a 14-year attorney. “Legal Aid screens and vets clients, which is helpful for us.” Without the assistance of a Allison King legal aid society, those in need of legal services are left to appeal to local law offices for free or reduced cost representation, often unsuccessfully. As a result, many choose to represent themselves. King said self-representation puts those individuals at a disadvantage since they lack the legal knowledge to adequately defend themselves. “Access to justice continues to be a place of real peril,” Chvatal said. “People in minimum wage jobs end up marginalized. So, how can we help justice occur? And that’s what it’s about: justice. Access to all and allowing that to happen.” The society doesn’t offer assistance on criminal matters (including traffic infractions), termination of parental rights or adoptions. Otte said many economically disadvantaged people often are put between a rock and a hard place because they can’t afford an attorney. “We are only probably touching 10 percent of the need that’s out there,” Otte said. Legal Aid may be able to provide assistance with cases related to family law, debtor-creditor, bankruptcy, Social Security/disability, wills/power of attorneys, guardianship, landlord-tenant, child support, immigration, or protection orders. Legal Aid asks those seeking legal representation who think they might qualify for aid to call the Coordinated Legal Education, Advice and Referral, or CLEAR, hotline first at 1-888-201-1014 to determine eligibility and to be directed to relevant services. “Unfortunately, many (who inquire) are over income or a criminal case we can’t take, or out-of-state cases,” Otte said, add-

ing that Legal Aid specifically works with clients at or below the federal poverty line. Other programs exist to help people living above the poverty level but unable to afford legal services, such as the Moderate Means Program through the Washington State Bar Association. “It’s hard to help all the people who need to be helped,” Otte said. In addition to helping to obtain legal representation for qualified clients, the society also offers a Family Law Class at 2 p.m. the third Tuesday of every month where participants can receive legal advice from volunteer attorneys. Registration forms can be found on the society’s website. The society also hosts a fall and spring legal clinic. Last year, 12 attorneys volunteered and assisted 51 attendees with various legal issues. Benton-Franklin Legal Aid also has a part-time staff attorney, Stefanie Valencia, who works Mondays to help clients with eviction issues. Otte runs a tight ship with a budget of less than $90,000 per year. Benton-Franklin Legal Aid Society receives about 50 percent of its funding from the Legal Foundation of Washington, which funds 17 legal aid offices throughout the state, with the remainder coming from fundraising efforts, such as silent auctions and an annual barbecue, as well as continuing education clinics for attorneys. “There are a lot of firms that can’t take cases because it’s not the type of work that they do. Some of those donate money or sponsor an event, such as our fundraisers,” Otte said. This year, Otte organized the society’s first breakfast at Meadow Springs Country Club in Richland, the goal was to reach out to community leaders and introduce them to the legal aid program. Otte said the event was extremely successful and she plans to organize another this year. Donations, support and new legal volunteers are always welcome. Benton-Franklin Legal Aid Society: 509-221-1824; bflegalaid.org.

TAX CODE, From page 43 But while SALT deductions were reduced, the amount of property a business can expense under section 179 increased from $500,000 to $1 million under the 2017 law. “When you buy a large piece of equipment — a track hoe for instance — you have to spread out the cost over a number of years because the equipment is going to continue to provide value for you year after year,” Porter said. “The government said, ‘How about you write that off over so many years, depending on the equipment. With the 179 deduction, the tax code allows you to write off 100 percent of the purchase if it qualifies in the first year. Under the new tax law, now you can write off 100 percent of the cost of $1 million worth of equipment if you qualify.” Starting in 2019, the health care tax penalty will be eliminated and the penalty will not be collected from 2020 returns. And while that might not apply to employees receiving health care through their employer, some unreimbursed employee expenses got the ax under the new tax code. Therefore, if people receiving a W2 drive their car for work or have travel expenses — which is common for sales people — those expenses would have been itemized deductions in the past. Under the new law, that’s not allowed. “People are panicking and I’m getting phone calls,” Porter said. “You can deduct those expenses if you’re a business owner, but not if you’re an employee. That may cause some people to want to be reclassified as an independent contractor because then they can still deduct. But an employee cannot. If you receive a 1099, keep clocking those miles.”

Porter said one of the strategies here is to move those deductions to the business owner’s side. If an employer has an employee incurring those kind of expenses, he suggests looking at moving those expenses to the company’s side to take advantage of the deduction. Because the tax code is constantly changing, Porter suggests business owners and individuals meet with their CPA regularly, especially toward the end of the year to maximize deductions and take advantage of tax benefits. “Even if you’re selling Mary Kay, it would likely benefit you to hire someone to do your taxes than to do them yourself,” said Porter, who added that tax preparation is a writeoff for business owners. “Now more than ever, hiring a competent tax accountant is important.” “I think it’s important to stay vigilant when it comes to tax planning and should be considered throughout the year, not just December,” added Schatz. “This provides the best opportunity to make good business decisions that will be in the benefit of the business, not just from a tax standpoint, but an economic and cash flow standpoint as well.” Porter suggests looking at professional credentials, such as CPA or enrolled agent. Secondly, read online reviews and research their experience. “People will buy a $30 purchase on Amazon and read reviews for an hour, but they’ll go to anyone for taxes,” Porter said. Many firms, including PorterKinney and Michels & Schilperoort, offer free consultations so potential clients can ask questions.

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Tri-Cities Area Journal of Business • January 2019

Farmers, ag advocates to be inducted into Mid-Columbia hall of fame Tickets on sale for annual dinner, ceremony on Jan. 17 at Pasco Red Lion BY TRI-CITIES AREA JOURNAL OF BUSINESS STAFF

Six longtime farmers and agriculture advocates will be inducted into the MidColumbia Agriculture Hall of Fame this year. They will be honored Jan. 17 at the Pasco Red Lion during an awards dinner and ceremony presented by the Pasco Chamber of Commerce and Port of Pasco. This is the 19th year Hall of Fame honors have been awarded to MidColumbia farmers, families and agribusiness leaders in Franklin County and neighboring Mid-Columbia counties. The new inductees are being recognized for their outstanding contributions to agriculture and agribusiness in five categories: The Mid-Columbia Ag Hall of Fame Pioneer Award honors individuals who have had a significant influence on the development of agriculture and unselfishly served their communities. This year’s inductee is Harold “Feathers” Thompson who hailed from Connell. Thompson was born on his father’s Connell ranch in 1923. He expanded the family’s wheat farm and cattle ranch after Harold Thompson recovering from serious injuries in a World War II crash as a tail gunner in an anti-submarine patrol plane. He later earned numerous recognition for his cattle breeding stock and methods. Thompson started the Junior Hereford Association in Washington state and was inducted to the National Horned Hereford Hall of Fame. He acted as the Connell Municipal Court judge from 1956-70 and served on the Connell City Council for eight years. He was the go-to man for financing, organizing and finishing community projects. The Rising Star Award honors a young person in the agriculture industry who demonstrates a commitment to community involvement with a dedication to enhance agriculture. This year the honor goes to Rob Davis of Connell. He started his agriculture journey in 1999, managing oversight of numerous row crops. Rob Davis He stepped up to manage the whole farm after a serious injury to farm owner Carl Noble. In 2006, Davis started RHD Farms. He was chairman of the U.S. Potato Board from 2013-14 and has tirelessly advocated for agriculture. He also is active in the Washington Cattle

Feeders Association Six D trucking, striving to improve the transportation component of the Beef Quality Assurance program. He is involved in numerous area FFAs and livestock shows, working with students and service clubs. The Agriculture Advisor Award is given to a person who has had a significant impact in ag advancement and educational programs and similar organizations influencing the industry through leadership, guidance and community involvement. This year Heidi Shattuck the honor goes to Heidi Shattuck of Pasco. She is the agriculture education teacher at Connell High School. She has been recognized as the Outstanding Teacher of the Year and Rookie of the Year by the Washington Association of Agriculture Teachers. She is recognized for guiding her students through their projects, as well as volunteering for numerous events and community service. The Stewardship Award is presented to those who have served the community and displayed leadership in agriculture

over a long period. Jeff and Vicki Gordon of Pasco will receive the honor this year. The Gordons, along with Jeff’s brother Bill, Jeff Gordon planted their first wine grapes in 1981 when there were only 19 wineries in the state. Their leadership in the growth of the Wa s h i n g t o n wine industry has focused on Vicki Gordon quality and access. Jeff was the second president of the Washington Wine Growers and served as the president of the Washington Wine Commission. The Gordons’ greatest contribution was their leadership in the formation of the Washington State University Wine Center on the Richland campus. The Visionary Award is a special honor conferred through a consensus of Ag Hall of Fame Committee members. Pete Taggares will be bestowed with the honor this year. He was at one time one of the largest and most influential farmers in the MidColumbia and the Northwest. In 1963,

he built the state’s largest french fry plant in Othello and farmed more than 50,000 acres in five states and built an additional plant in Minnesota. In 1978, he was Pete Taggares named one of the 10 most powerful men in the state by The Associated Press. The Agriculture Hall of Fame Gala starts with a social hour at 5 p.m. A fullcourse dinner will feature local produce and wines. Cost is $65 a person, or $500 for a table of eight. For reservations and information, call the Pasco Chamber at 509-547-9755, stop by the office at 1110 Osprey Pointe Blvd., Suite 101, in Pasco, or visit pascochamber.org.

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Tri-Cities Area Journal of Business • January 2019

Business Profile

Accounting firm strives to set up small business owners for success Richland’s Insight Accounting Solutions offers accounting, tax and business consulting services BY JEFF MORROW

for Tri-Cities Area Journal of Business

Barb Fangman and Scott Williams had seen how most accounting firms do business — and they wanted something different. And it’s been working. The owners of Insight Accounting Solutions have seen their Richland company — which Fangman started in 2012 — grow. “We are experiencing 50 to 70 percent growth a year,” said Williams, who joined the company in 2013 and became Fangman’s partner in 2015. In 2013, Insight Accounting Solutions worked out of a 2,700-square-foot office near Highway 395 and Clearwater Avenue in Kennewick. “We had two full-timers and two parttimers back then,” Williams said. Today, the company occupies 7,500 square feet at 110 W. Gage Blvd., Suite 100, in Richland. The additional space is necessary, as there are now 18 full-time and four parttime employees, with plans to add more, Williams said. Being pro-active has been a major reason for the company’s success. “The key to our growth is we take exceptional care with our clients,” said Fangman, who has 40 years of business

experience. “National surveys will tell you the No. 1 complaint is that accountants aren’t very responsive. They won’t return phone calls.” This doesn’t happen at Insight Accounting Solutions. “Our key is taking care of people,” Williams said. “It forces you to be proactive. So we help people strategize with their business.” Insight Accounting Solutions’ biggest component of its business is monthly bookkeeping, followed by business consulting and accounting services. And, of course, income taxes. The company says its ideal clients are business owners who are optimistic, full of integrity and entrepreneurial spirit; clients whose goals are to grow their business, save on taxes and provide for a financially secure future; and those with a good reputation who care about their product or service. Almost all the company’s clientele has come from referrals by current customers, or through business networking. Insight Accounting Solutions is selective about those it works with. “Either Scott or I need to meet with the new clients,” Fangman said. “My job is to ask them the hard questions. Sometimes they have the deer-in-the-headlights look. So many people start a business being good at their craft.”

Clients may not know much about the financial end of the b u s i n e s s , Williams said. “The reason I got into accounting was in my experience in commercial Barb Fangman insurance. When I got them their insurance, I’d ask them if they have a good business plan,” Williams said. “If they don’t understand how everything works, they need someone who does know.” Williams said if clients don’t understand the ins and outs of various state and federal taxes, “once you get too far into a (financial) hole, you can’t rescue yourself.” The relationships are a two-way street, Williams said. “We get to see a lot of lives and finance that other people don’t,” he said. “If we’re not going to have a good personality fit, then we can go our separate ways.” Based on the company’s growth, Williams and Fangman are confident clients will be happy with their services. “If people come to us in the beginning, we can get them to go down the right path,” Fangman said. “Our target market is basically business owners who are humble enough to take our advice. It’s our knowledge. I mean I wouldn’t do my own plumbing.” It was Fangman who developed the business plan when she launched the company. She wanted Insight to be proactive, calling clients and setting up meetings to focus on plans for their clients’ business success. She also had her current clients at the time in mind. “Seven, eight years ago, I was thinking forward to when I’d retire,” she said. “I was concerned my clients wouldn’t have some-

body to go to when I was gone. I’m retiring in five years. I wanted to create a process that everybody trusted.” She and Williams also wanted to take Scott Williams care of their employees. “We focus on having more balance in our employees’ lives,” Williams said. “During tax season, the maximum one of our employees can work is 55 hours a week.” Fangman is a big believer in this. “My first 18 years, I worked with other accountants. We’d work 80 hours a week during tax season,” she said. In addition, Insight Accounting Solutions allows remote working, and staff can flex their work hours. “We look at staff needs first,” Williams said. “In turn, they take care of our clients.” Because of that, Williams believes, “we have an extra low turnover rate. We maybe lose one to one and half employees a year.” Last May, the company added the Entrepreneurial Operating System program to help its clients clarify, simplify and achieve their vision. It starts with a 90-minute meeting to get to know each other and talk about the process. That’s followed by a focus day; a two-day vision building meeting; quarterly “pulsing” meetings; and an annual meeting. “It’s part of our business consulting,” Williams said. “It’s a (simpler) process to allow our clients to follow six things rather than 140 things they might need to follow. It’s something that is good for a business that is growing and trying to get to the next level.” uINSIGHT, Page 50

Tri-Cities Area Journal of Business • January 2019

Business Profile

Independent pharmacy’s prescription for success? Customer service RX Pharmacy offers free delivery, pill packaging for multiple prescriptions BY KEVIN ANTHONY

for Tri-Cities Area Journal of Business

Randy Johnson is big on challenges. It’s why the owner of RX Pharmacy on the Kadlec campus in Richland jumped right in as a pharmacist and store manager straight out of college. It’s why he went from working behind the counter for one of the biggest chains in the nation to opening up his own shop. And it’s a big Randy Johnson part of why his independent pharmacy has grown into a thriving business in four-and-a-half years. “Certainly you have those days where I wish that I could just clock out for the day and know I’m getting a full paycheck and not have to worry about that,” Johnson said. “But I think at the same time that’s not really in my nature. I’ve always been driven toward leadership and a challenge, and the business stuff interests me. “Granted, I lose a lot of sleep over it and it’s not the easiest, but I don’t think I’d want it any other way.” Competing in an industry dominated by big chains like Walgreens, Rite Aid, Walmart and CVS is not for the timid. Johnson’s secret? Service. RX Pharmacy is staffed up: three pharmacists in addition to Johnson, four technicians and three more assistants, plus three delivery drivers and another technician who also helps with deliveries. The staff of 15 makes for a pretty crowded work space in the 1,300-square-

foot pharmacy in the Corrado Building, but it also is why most prescriptions are filled in 10 minutes or less. Delivery drivers are another key service. Johnson estimated RX Pharmacy makes 70 to 80 deliveries a day. The free service isn’t reserved just for the infirmed who can’t leave their homes. It’s for people who are stuck at work, or anyone who can’t carve out the time to get to the pharmacy. “I’ve got a 4- and a 6-year-old,” he said, “and it’s not the easiest thing to go pack them in the car and just run to the store and grab something.” Delivery is a growing trend with pharmacies, much like with restaurant or grocery services. However, most stores use courier services. RX Pharmacy has its own drivers and three delivery cars. Other services — such as delivering outpatient prescriptions to Kadlec patients before they leave the hospital, or bubble packaging drugs for patients with multiple prescriptions (think pre-made pill boxes) — have helped the business grow from four employees when Johnson took over the location in July 2014. “We try to do the exact opposite of the big guys,” he said. “Up to this point, we’ve done very well.” Well enough that Johnson opened a second, non-retail store — RX Pharmacy LTC — last June to exclusively service longterm care facilities. Managed by Dawn Johnson, Randy’s wife, the business works with 29 agencies from Walla Walla to Yakima, up to Moses Lake, ranging in size from adult homes with three residents to assisted living facilities of 150. The second location brings the total number of employees to 23, including the Johnsons. This means Randy has to spend more time in management and human

RX Pharmacy technician Justin Hunter shows how many prescriptions often go into a bubble pack, which serve as pre-made pill boxes for patients. The service, along with free delivery, has helped the independent Richland pharmacy grow since opening in 2014.

resources than behind the counter. It’s a tough balancing act. “I never want to get away from being a pharmacist,” he said, “and I think also as an owner, it’s important for me to be up there filling prescriptions and in the workflow and seeing some issues that I’m not going to see if I’m sitting back here in the office.” Johnson credits his staff for the pharmacy’s success, calling them the “cream of the crop” and pointing to their familiarity with customers as a key to growing RX Pharmacy to the point where it fills about 8,000 prescriptions a month, about twice what the previous pharmacy was doing at the location. Johnson would know; he was the manager of that store — a Walgreens — before buying the operation in 2014. It was the conclusion of managing stores for other owners that started at the 14th Avenue Pharmacy in Pasco immediately after he graduated from the Washington State University School of Pharmacy in 2004.

The 14th Avenue store was purchased by Walgreens in 2009, and Johnson continued working there for two more years before moving to the store as his current location, then owned by Walgreens. “During that five-year period working and managing with Walgreens, I just saw a lot of things that Walgreens was doing from being such a large entity and corporately massive, that a lot of things were falling through the cracks,” he said. “And there was a lot of potential for different services and needs in the community and in the area” “Nothing against people who work for Walgreens, they’re just as good of pharmacists as I am and technicians and whatnot. But sometimes they’re just not given the flexibility and the staffing and the tools to be able to do some of those (services). And I had even tried to implement some of those as Walgreens in this location, and it just wasn’t working. uPHARMACY, Page 50

Tri-Cities Area Journal of Business • January 2019

INSIGHT, From page 48 And that’s why Fangman and Williams do what they do. “For me, it’s seeing our clients actually taking my advice and improve their business,” Fangman said. And in turn, their success has a positive impact on the region’s economy, she said. Williams agreed. “It’s about having a positive effect on people’s lives and helping businesses to succeed,” he said. “And I love the people I work with.” Insight Accounting Solutions: 110 W. Gage Blvd., Suite 100, Richland; insightaccountingsolutions.com; 509-943-1500; Facebook.

PHARMACY, From page 49 “I just decided that I see a need in the area, and specifically out of this location.” The site was dark for about a week before it was back up and running. “Our initial focus was, ‘OK, let’s try to get those people back into the store, as well as start to unveil some new programs.’ ” Johnson also implemented a few workplace policies to give the pharmacy a personal touch. “As a pharmacist (at a chain), you wear the tie, you wear the white coat. Everyone answers the phone the same way. Everyone is supposed to follow the script and that type of thing,” he said. “I feel like our patients and our customers coming through that door feel more

comfortable when me as the owner — I’m wearing jeans and a polo shirt and the staff are in scrubs or a ‘14th Avenue’ shirt and have more of that homey feel. “And what I’ve found is people are more likely to open up to you, ask you the difficult questions. I think sometimes in that white-coat setting, people clam up a little bit, don’t feel as comfortable. We try to keep it certainly professional, but have a little more laid-back feel to how we operate here. “And I think people love it.” RX Pharmacy is one of a handful of independent pharmacies in the Tri-Cities. Others include Malley’s Compounding Pharmacy in Richland, Fiesta Pharmacy in Pasco, and Reliance Pharmacy and the Medicine Shoppe in Kennewick. Independent pharmacies can remain

Take the growing pains out of business expansion

uDONATIONS

By Shaun Gordon, Banner Bank Businesses often pursue growth as a way to increase revenue and profit, and that’s admirable. Of course, it’s never quite as simple as doubling your size in order to double your profit. Companies that grow at breakneck speeds can be challenged to keep tabs on the details, maintain staffing to serve customers Shaun Gordon well and manage the financial aspects of the business. As a commercial banker serving the Tri-Cities, I’ve seen businesses struggle after expanding too quickly without the right supports in place. That’s why I advise businesses to manage growth for long-term success. Partner with experts you trust. Whatever stage of development your company is in, it’s essential to surround yourself with experts inside and outside of your business. You’ll benefit from a team of people you trust and feel comfortable consulting when making key decisions, especially when your company is evolving quickly. Expect knowledge and passion. The accountants, attorneys, bankers and other advisors serving your company should be as passionate about your success as your own management team. As someone who serves in that role for a diverse group of local companies, I feel strongly about the level of service you ought to expect from your banker. A true partner is available beyond nine to five, Monday through Friday. Seek robust, long-term relationships. Your financial partners should be in it for the long-haul, and that begins with taking time to get to know your business and industry. That, plus good two-way communication, allows us to help you maintain an edge and prepare for market fluctuations. I can’t emphasize enough the importance of talking with your banker before you decide to grow or change directions. The key is to be proactive, not reactive. If you’re contemplating expenditures, you’ll want a partner who understands all aspects of running a business. The goal is to make sure you have the credit facilities and structure in place to support your plans when you’re ready to act. And while your bank should offer resources and expertise to help qualified borrowers meet Paid Advertising

competitive by taking part in national buying groups. RX Pharmacy is in a group with 2,000-plus other pharmacies. Still, independent pharmacies are never going to beat the chains on the bottom line, which brings it all back to service. “Certainly I’m sacrificing some from the bottom line to be able to do those services and employ those people,” Johnson said. “But to me it’s worth it. And that’s been a big part of why the business has grown. “Taking care of people at the end of the day is why most of us got into the pharmacy world and the health care world.” RX Pharmacy: 800 Swift Blvd., Suite 140, Richland; 509-713-7444; tricitiesrx. com.

expanding opportunities and demand, your banker should do more than make loans. Here’s what to expect from a strong financial partner. Seven ways your banker can add value: 1. Understand your business and industry. You deserve a financial partner who listens and grasps your challenges. 2. Assist in reviewing financial forecasting and projections. Think of your banker as an expert to help you plan for expansion, while also preparing for economic downturns. 3. Provide independent cash flow analysis and tips to gain financial efficiencies. It may be as straightforward as determining where you can delay payments and accelerate receipts. A good analysis can also help make the most of solutions such as sweep accounts to leverage cash flow and interest rate swaps to mitigate interest rate risk on long-term loans. 4. Educate you on new issues and possible outcomes. An expert who’s informed on changing laws, economic forces and business trends can help you avoid hazards and benefit from opportunities. 5. Be a sounding board and provide ongoing advice. Your relationship manager should check in with you regularly and welcome your questions and ideas any time. 6. Offer a unique perspective and tailored solutions. A good partner will respectfully challenge you to consider new approaches supported by sound rationale with your profitability in mind. 7. Partner with other experts to serve you well. As your company grows, you’ll benefit the most when your banker collaborates with your other advisors to make recommendations in your best interest. As a knowledgeable, trusted member of your planning team, your banker can help you manage growth in an ever-changing economy. Given the importance of your business to the region’s economy, you deserve experts who will work hard to help you succeed. As a Banner Bank Senior Vice President and Senior Commercial Banking Relationship Manager, Shaun Gordon partners with businesses to support their financial goals. Reach Shaun at 509-735-8775 or Shaun.Gordon@bannerbank.com. Member FDIC

• Columbia Basin College collected 483 pounds of nonperishable food in addition to $700 for Second Harvest Tri-Cities through its annual Hawk Trot 5K run/walk on its campus. Participants donated cash or food in lieu of their entrance fee. The donation will provide more than 3,900 meals to people in need. • Columbia Center Rotary gave $2,170 to Kadlec Foundation in support of the Sparkle and Shine Pageant, a pageant for children with special needs. • Northwest Farm Credit Services donated $2,000 to the Kadlec Foundation to buy equipment for the Kadlec Academy, a program for firstthrough fifth-graders that once a week for a month teaches children the basics about their body systems, related physical activities, hands-on CPR and healthful snacks. • Hanford vit plant, or Waste Treatment and Immobilization Plant, workers teamed up with Bechtel and AECOM to raise more than $21,000 to give to the Marine Corps Reserve’s Toys for Tots program. In addition, a financial donation was given to the Local 598 pipefitters Bike for Tikes, where local pipefitters bought and assembled 350 bikes and helmets for Toys for Toys. Griggs/Ace Hardware supported the vit plant effort by providing transportation and bikes. In addition, employees donated $300,000 to United Way and $15,000 to Second Harvest, bringing donations for the year to more than $800,000, which included $450,00 in corporate donations. • Energy Northwest employees sponsored 15 Benton-Franklin Head Start parties as a part of an effort to distribute Christmas gifts of toys and clothing to 500 children from lowincome families. • Leidos and Centerra, parent companies of Mission Support Alliance, donated $3,500 to Mid-Columbia Meals on Wheels. MSA and its employees also donated $32,000 to nine organizations in December and purchased 7,000 pounds of turkeys to contribute to the Hanford Community Food Drive.

Tri-Cities Area Journal of Business • January 2019 uNEW HIRES • Tiffany Lundstrom of Richland has joined the Tri-Cities Area Journal of Business, Focus magazines and Senior Times as advertising director. She worked for 20 years at KNDU-TV and SWX as an Tiffany Lundstrom account manager and for a year at the Tri-City Herald in accounts receivable. Lundstrom is active in the BNI Gunners and Linkup2us networking groups, and has served for 18 years as a board member of the Salvation Army Mid-Columbia. She earned a bachelor’s in business administration from Washington State University. • Ashley Hite has joined Cougar Digital Marketing & Design of West Richland as a search engine marketing strategist and designer. She has 10 years of experience as a communications professional, most recently as marketing director of the Ashley Hite American Academy of Oral Systemic Health. She has a bachelor of science degree in technical writ-

ing and Spanish from Missouri State University. • Nick Kellogg has been hired as a financial analyst for Piton Wealth in Kennewick. He previously worked as a vice president Nick Kellogg for institution equity at Dougherty and Co. in Minneapolis. • Lawyer David Hevel joined Smart Law Offices in Kennewick. He has been a longtime Tri-City attorney and has practiced in Kennewick David Hevel since 1975. • The American Red Cross Pacific Northwest Blood Services Region hired Dr. Randall Covin as medical director. Covin’s region includes the Tri-Cities, and he is based in Portland. Dr. Randall Covin Covin most recently was the medical director for the Blood Bank of Hawaii in Honolulu.

uGRADUATION • The Tri-City Regional Fire Training Recruit Academy’s inaugural class graduated in December. Here’s the list of graduates: Kennewick Fire Department: Jess Koistinen, Joshua LaPlante, Joshua Lopez, Eric Love, Robert Nielsen and Chandra Walker; Pasco Fire Department: Fred Carlson and Pedro Loera; Richland Fire Department: Collin McCabe; Benton Fire District 1: Jaret Maynard.

uBOARDS • Matthew Petersen, chief compliance officer for Petersen Hastings in Kennewick, has become the company’s sixth shareholder. Petersen joined the investment company in 2013 as the third generation member of the Petersen family to be in the company his grandfather, Jim Petersen, started in 1962. He also works with his father, Jeff Petersen.

uHONORS • Skone Irrigation of Pasco was named one of Reinke’s top five highest-selling dealers in the Northwest territory, as well as a top five parts dealer in the U.S. and Canada. In addition, the dealer received a Diamond Reinke Pride award that notes superior achievement levels. • Bin Yang, an associate professor of biological systems engineering at

Washington State University Tri-Cities in Richland, recently was selected for the Fulbright Distinguished Chair Award, Bin Yang the most prestigious appointment in the Fulbright Scholar Program. Fulbright awards about 8,000 grants annually. Of those, 40 are selected for the this award. Yang marks the first professor in WSU history to be selected for the Fulbright Distinguished Chair in Energy and Sustainable Use of Natural Resources Award. Beginning in August, he will serve for six months through the Fulbright program at Aalto University in Finland, while on sabbatical leave from WSU. While in Finland, he will teach and conduct research. In addition, he will continue to manage his research team at WSU. His research at Aalto University will focus on the development of novel lignin-based compounds that do not resemble an existing petroleum-derived compound in structure. Lignin is a material comprised in the cell wall of plants and is one of the largest waste products in the bioproducts industry because it is so hard to break down and process.

Tri-Cities Area Journal of Business • January 2019

Bridging the divide between Washington state and D.C. BY KRIS JOHNSON

for Tri-Cities Area Journal of Business

On a map, the distance from our Washington to the “other” Washington looks so far away. But, policies being made and debated there hit us here in Washington state. Take trade policies, for example. As one of the most trade-driven states in the nation, what happens with trade agreements has a direct impact on Washington state’s economy. A recent report found that Washington farmers and other export-dependent producers saw their foreign sales drop by as much as 28 percent during the six months after the United States began imposing tariffs on trading partners. That’s one reason why the Association of Washington Business and its members have become more engaged than ever on the national front. In fact, AWB staff and 25 business owners and leaders recently returned from the association’s fifth D.C. Fly-in. Along with visits with members of Washington’s congressional delegation and top staff from their offices, it also included a meeting at the Canadian Embassy with David MacNaughton, Canada’s ambassador to the United States, and Guillermo Malpica Soto, head of trade for the Mexican Embassy. U.S. Sen. Maria Cantwell also was on hand for the meeting. With trade being integral to the success of Washington’s economy, it was a great opportunity to have a candid discussion on the details of the recently signed tri-lateral United States-MexicoCanada Agreement, which will update the North American Free Trade Agreement, or NAFTA, if ratified by Congress. The three-day trip also covered ground on the ongoing efforts to protect the Columbia-Snake river hydroelectric dam system that is an important part of our low-carbon energy projection and the need for Congress to act on infrastructure investment. After lack of movement on an anticipated federal infrastructure investment package last year, we heard directly

uHONORS • Connell attorney Toni Meacham was recognized by the American Institute of Legal Counsel as 2018’s 10 Best Legal Counsel for Client Toni Meacham Satisfaction. Meacham graduated from law school at University of Idaho and is a Connell native. • Ed Brost, retired Franklin PUD

from our congressional delegation that discussions on a new proposal may be in the works. That’s good news as we work to shore up not just the Kris Johnson Association of roads, bridges Washington and highways Business that move people and commerce across the state and the globe, but also upgrade water lines, expand broadband and other infrastructure critical to a growing economy and Washington’s diverse industry sector. A 2017 report AWB collaborated on with associations that represent the state’s cities, ports and counties, estimates $190 billion is needed to upgrade Washington’s infrastructure. And, with the passage of the 2015 Connecting Washington transportation funding and reform package, Washington state is ready to leverage any federal funding that comes our way. It was also a somber and historic time in the nation’s Capitol. Our trip to D.C. coincided with the state funeral for President George H.W. Bush. As we paid respects to the 41st president, we reflected on this truth: There is more that unites us than divides us. We can tackle the challenges of our time, however difficult or complex, if we work together to find solutions that work to promote economic freedom and support those in need. As business leaders and residents in one of the most beautiful places in the nation, if not the world, we’re all advocates for good policies that make our industries and the economy strong to create jobs that support families and make our communities livable. Kris Johnson is the president of the Association of Washington Business, the state’s chamber of commerce and designated manufacturing association.

general manager, received a Lifetime Achievement award from Washington PUD Association for his extensive Ed Brost work during his more than 30 years in the industry. Brost started his career in 1984 at the Bonneville Power Administration and worked with the Franklin PUD from 2006 until his retirement in 2015.

Tri-Cities Area Journal of Business • January 2019

PUBLIC RECORD uBANKRUPTCIES Bankruptcies are filed under the following chapter headings: Chapter 7 — Straight Bankruptcy: debtor gives up non-exempt property and debt is charged. Chapter 11 — Allows companies and individuals to restructure debts to repay them. Chapter 12 — Allows family farmers or fishermen to restructure finances to avoid liquidation for foreclosure. Chapter 13 — Plan is devised by the individual to pay a percentage of debt based on ability to pay. All disposable income must be used to pay debts. Information provided by the U.S. Bankruptcy Court in Spokane.

CHAPTER 7 Anthony C. Farmer, 4112 W. Okanogan Ave., Kennewick. William Davenport, 402 Ninth St., Benton City. Johana C. Alvarez, 5501 W. Hildebrand Blvd., Kennewick. Mitchell C. R. Working, 93703 E. 89th PRSE, Kennewick. Jonathan T. and Jennifer D. Leslie, 8402 W. Grand Ronde Place, Kennewick. Michael D. and Nereida D. Lohmann, 1105 Cedar St., Benton City. Stacy Graham, 1204 Van Giesen St., Richland. Andrew J. Garvin, 4509 W. Fourth Place, Kennewick. Eric L. Duncan, 211 S. Quicy St., Kennewick. Chrisellda Arellano, 1122 West Park St., Pasco. Miguel A. T. Virgen, 939 N. Owen, Pasco. Gene and Leonida S. Giemza, 700 N. Road 32, Pasco. Santos and Guillermina Jimenez, 404 N. Sycamore, Pasco. Guillermina Martinez, 1905 Riverview Drive, Pasco.

Daniel Sepulveda and Elida Zuniga, 226 N. 23rd, Pasco. Andres and Josefina Garcia, 1007 N. 26th Ave., Pasco. Joshua A. and Natalie D. Hoefer, 1304 Sanford Ave., Richland. Ryne J. Jones, 120 E. Fifth Ave., Kennewick. Joel R. and Amy A. Meredith, 1001 Warren Court, Richland. Charles E. Mitchell, 1524 N. 17th Ave., Pasco. Bianca L. Rodriguez and David J. Pano, 1409 Symons St., Richland. Jose L. Gomez, 5031 W. Clearwater Ave., Kennewick. Derek Taylor, 118 W. 21st Ave., Kennewick. Maria A. Bueno, 925 N. Elm Ave., Pasco. Amanda Thavone, 3914 Charleston Ln, Pasco. Jamey C. Leisle, 7701 W. Fourth Ave., Kennewick. Victor Bermudez, 209 S. Benton St., Kennewick. Leroy D. Lindgren, 3 Daffodil Court, Pasco. Toni Marvin, 34703 N. 140 PRNW, Benton City. Mikayla M. L. Hempstead, 3922 S. Morain Loop, Kennewick. Timothy A. and Stephanie A. Dorko, 5017 Avion Drive, Pasco. Gabriela Mercado, 731 W. Jay St., Pasco. Douglas L. Anderson Jr., PO Box 5391, West Richland. Eric W. Weismantle and Brittney D. Senn, 200802 E. Game Farm Road, Kennewick. CHAPTER 13 Charles A. Kubik, 108 N. Fourth, Pasco. John D. and Debbie Lang, 8203 Langara Drive, Pasco. Kenneth Burkhart, 1409 S. Date Pl., Kennewick. Steve E. and Johanna Mansfield, 82647 E. Riata Road, Kennewick. Peggy Elatico, 11617 N. Missimer Rd, Prosser.

Tonya J. Smith, 823 Madrona Ave., Pasco. Larissa R. Iracheta, 310 S. Anderson St., Kennewick. Jacob S. Torres, 825 W. Henry St. Pasco.

uTOP PROPERTIES

Top property values listed start at $500,000 and have been rounded to the nearest hundred figure.

BENTON COUNTY Wild Canyon Way, Richland, 6 lots of undeveloped land. Price: $537,500. Buyer: P&R Construction. Seller: undisclosed. 85405 E. Wallowa Road, Kennewick, 0.57 acres of undeveloped land. Price: $574,500. Buyer: Randy and Jodie Loyd. Seller: Prodigy Homes. 96102 E. Holly Road, Kennewick, 1.25 acres of undeveloped land. Price: $550,900. Buyer: Lance and Shelbey Sawyer. Seller: Matson Construction. Undisclosed location, 43.76 acres of agricultural land. Price: $650,000. Buyer: Richard Shaw and Wendy West. Seller: Albert Vargas. 3500 W. Deschutes, Kennewick, 7,500-square-foot, commercial building on 0.83 acres. Price: $695,000. Buyer: MK Property Management. Seller: House of Restoration. 1765 Milan Lane, Richland, 1 lot of undeveloped land. Price: $651,200. Buyer: Wade and Jessica Whitman. Seller: Prodigy Homes. Undisclosed location, 19.3 acres of commercial land. Price: $1,650,000. Buyer: Alfred Roller. Seller: Clarence Bumgardner. 910 W. Seventh Place, Kennewick, 2.46 acres of undeveloped land. Price: $4,591,400. Buyer: The Boys and Girls Club of Benton and Franklin Counties. Seller: KB & G Club. 73403 E. Grand Bluff Loop, Kennewick, 1,806-square-foot, residential home on 1.56

acres. Price: $750,000. Buyer: Greg and Joann Powers. Seller: Todd and Kim Jones. 4704 Vineyard Estate Lane, Richland, 3,396-square-foot, residential home. Price: $550,000. Buyer: Wesley Brown and Yen Thi Binh. Seller: New Tradition Homes. Undisclosed location, West Richland, 12.34 acres of undeveloped land. Price: $800,000. Buyer: CB Group. Seller: Allied Activities. 92003 W. McCreadie Road, Prosser, 1 lot of undeveloped land. Price: $530,000. Buyer: John and Karen Standerfer. Seller: Don Pratt Construction. 1629 Genoa Lane, Richland, 2,724-squarefoot, residential home. Price: $675,000. Buyer: Jerry and Jackie Arslanian. Seller: Prodigy Homes. 8639 W. 11th Ave., Kennewick, 1 lot of undeveloped land. Price: $532,500. Buyer: Daniel and Beth Doyle. Seller: Titan Homes. FRANKLIN COUNTY Undisclosed location, 30 acres of agricultural land. Price: $1,268,400. Buyer: 7HA Pasco. Seller: 7HA Family. 6900 Lamb Court, Pasco, 1 lot of undeveloped land. Price: $520,200. Buyer: Lawrence & Vanessa Andros. Seller: Zeigler Construction Company. Undisclosed location, 0.67 acres of undeveloped land. Price: $796,000. Buyer: PK Villard. Seller: Hogback Sandifur. 2311 Scooteney Road, Connell, 2,483-squarefoot, residential home on 9.9 acres. Price: $565,000. Buyer: Curtis and Lareasa Mastre. Seller: Jeremy and Sheryl Mastre. Undisclosed location, 190 acres of agricultural land. Price: $2,520,000. Buyer: Desert River Farms. Seller: Alford Farms.

uPUBLIC RECORD, Page 54

Tri-Cities Area Journal of Business • January 2019

PUBLIC RECORD, From page 53

Pasco, $12,900 for commercial addition. Contractor: Circle K Enterprises.

uBUILDING PERMITS

KENNEWICK

Building permit values have been rounded to the nearest hundred figure.

BENTON COUNTY KS Vineyard, 38175 N. Demoss Road, $200,000 for commercial addition. Contractor: owner. Department of Natural Resources, undisclosed location, $50,000 for miscellaneous expenses. Contractor: Betacom Inc. Ste. Michelle Estates, 50207 Antinori Road, $831,500 for HVAC. Contractor: Campbell & Co. Agriserves, 187710 S. Plymouth Road, $150,000 for new commercial construction. Contractor: CRF Metal Works. FRANKLIN COUNTY Diamondback Farms, 4550 Columbia River Road, Pasco, $276,800 for commercial addition. Contractor: Teton West of Washington. Oakdell Egg Farms, 7401 Glade North Road,

Cynergy Enterprises, 4309 W. 27th Place, $8,000 for mechanical. Contractor: Western Equipment Sales. Kishore Varada, 220 W. Kennewick Ave., $15,000 for tenant improvements. Contractor: Thornworks. Washington Securities, 8901 W. Tucannon Ave., $40,000 for tenant improvements, $5,000 for HVAC and $8,500 for plumbing. Contractors: LCR Construction, Bob Rhodes Heating & Air and Tri-City Plumbing & Mechanical. Benton County, 7122 W. Okanogan Place, $38,600 for commercial remodel and $14,600 for HVAC. Contractor: Western Mechanical Contractors. Southridge Investment, 3703 Plaza Way, $7,400 for a sign. Contractor: Quality Signs. Vista Field Industrial, 6416 W. Hood Place, $340,000 for commercial remodel, $7,500 for HVAC and $17,700 for plumbing. Contractors: O’Brien Construction, Chinook Heating & Air and Progressive Plumbing Design.

Dorato Investment, 6416 W. Okanogan Ave., $13,000 for a sign. Contractor: Mustang Sign Group. Kennewick Association, 7411 W. Canal Drive, $5,900 for a sign. Contractor: Quality Signs. Craig Eerkes, 10799 Ridgeline Drive, $14,000 for a sign. Contractor: Quality Signs. Duzan’s Land Management, 902 S. Washington St., $13,000 for a sign. Contractor: YESCO. Goodwill Industries, 345 S. Columbia Center Blvd., $15,500 for a sign. Contractor: Quality Signs. Desert Pines, 345 S. Columbia Center Blvd., $20,000 for a sign. Contractor: Quality Signs. Yellowstone North, 8524 W. Gage Blvd., $5,900 for a sign. Contractor: Quality Signs. Craig Eerkes, 10799 Ridgeline Drive, $25,000 for a sign. Contractor: Quality Signs. Wyo-Wash Corp, 404 N. Columbia Center Blvd., $24,900 for commercial reroof. Contractor: Nations Roof Northwest. MM Properties Vineyards, 701 Vineyard Drive, $12,000 for commercial reroof. Contractor: Palmer Roofing. City of Kennewick, 414 E. 10th Ave. $13,000 for mechanical. Contractor: Northstar Clean Concepts.

PASCO Lakeshore Investments, 1123 W. Court St., $39,300 for tenant improvements. Contractor: Pacific Northwest Construction. Port of Pasco, 3210 Swallow Ave., $9,000 for HVAC. Contractor: Bruce Heating & Air. Port of Pasco, 1705 W. Argent Road, $64,000 for commercial addition. Contractor: Equipment Sales Company. Robertson Real Estate, 928 N. 28th Ave., $23,000 for commercial addition. Contractor: Columbia Basin Landscaping. Grigg Enterprises, 801 W. Columbia St., $23,600 for HVAC. Contractor: Campbell & Co. Elliott Bay Healthcare, 6835 Burden Blvd., Suite A, $45,400 for tenant improvements. Contractor: Chervenell Construction. Bleyhl Farm Services, 6705 Chapel Hill Blvd., $15,000 for commercial addition. Contractor: Engineered Products. Port of Pasco, 3125 Rickenbacker Drive, $5,500 for fire alarm system. Contractor: Advanced Protection Services. Circle K Stores, 4823 Broadmoor Blvd., $5,700 for a sign. Contractor: A-1 Illuminated Sign Co. 3JM Enterprises, 1510 N. Commercial Ave. $167,200 for tenant improvements. Contractor: owner. PROSSER Milne Fruit Production, 2200 SR 221, $63,500 for commercial addition, $39,600 for fence/brick/ retaining wall and $179,600 for mechanical. Contractors: Puterbaugh Construction, BCS Construction Services and Permacold Engineering. RICHLAND Roscoeboyz, 2009 Longston Blvd., $1,556,200 for new commercial construction. Contractor: BR Building Co. Interstate Nuclear Services, 2424 Robertson Drive, $10,000 for new commercial construction. Contractor: Interstate Nuclear Services. Energy Northwest, 350 Hills St., $200,000 for mechanical. Contractor: Apollo Sheet Metal. West Side United Protestant, 603 Wright Ave., $40,000 for tenant improvements. Contractor: owner. WEST RICHLAND CJ Lee, 5413 W. Van Giesen St., $30,000 for tenant improvements. Contractor: owner.

uBUSINESS LICENSES

Business Licenses can be found online at http://bit.ly/TCPublicRecord

uJUDGMENTS The state can file lawsuits against people or businesses that do not pay taxes and then get a judgment against property that person or business owns. Judgments are filed in Benton-Franklin Superior Court. The following is from the Franklin County Superior Court Clerk’s Office.

Rene Cardoza, unpaid Department of Revenue taxes, filed Dec. 3. Isaac Cruz, unpaid Department of Revenue taxes, filed Dec. 3. Kim S. Knight, unpaid Department of Revenue taxes, filed Dec. 3. Daniel Alvarez, unpaid Department of Revenue taxes, filed Dec. 3. Adrian Haro, unpaid Department of Revenue taxes, filed Dec. 3. Mark A. Bennett, unpaid Department of Labor and Industries taxes, filed Dec. 4. Raymundo Soto Sanchez, unpaid Employment Security Department taxes, filed Dec. 5. Hector B. Torres, unpaid Employment Security Department taxes, filed Dec. 5. Rafael Villafan, unpaid Employment Security Department taxes, filed Dec. 5. Joe Elanzo, unpaid Employment Security Department taxes, filed Dec. 5. Amie R. Castillo, unpaid Employment Security Department taxes, filed Dec. 5. Diana E. Gonzalez, unpaid Employment Security Department taxes, filed Dec. 5. Leonard O’Banion, unpaid Employment Security Department taxes, filed Dec. 5. Joel Jimenez, unpaid Employment Security Department taxes, filed Dec. 5. 3 Cities Landscaping, unpaid Department of Labor and Industries taxes, filed Dec. 5. Subway #64737, unpaid Department of Revenue taxes, filed Dec. 7.

uPUBLIC RECORD, Page 55

Tri-Cities Area Journal of Business • January 2019 PUBLIC RECORD, From page 54 Juan M. Garza, unpaid Department of Licensing taxes, filed Dec. 21. Arturo G. Mendoza, unpaid Employment Security Department taxes, filed Dec. 26. Jacqueline Alaniz, unpaid Employment Security Department taxes, filed Dec. 26. Jackson R. Hammons, unpaid Employment Security Department taxes, filed Dec. 26. William Park, unpaid Employment Security Department taxes, filed Dec. 26. Christopher Blackmore, unpaid Employment Security Department taxes, filed Dec. 26. David Estrada, unpaid Employment Security Department taxes, filed Dec. 26. Jacob Borrego, unpaid Employment Security Department taxes, filed Dec. 26. Robert J. Hernandez, unpaid Employment Security Department taxes, filed Dec. 26. Felix James, unpaid Employment Security Department taxes, filed Dec. 26. Danny L. Amaya, unpaid Employment Security Department taxes, filed Dec. 26. Theuang Vorabouth, unpaid Employment Security Department taxes, filed Dec. 26. Alex I. F. Rodriguez, unpaid Employment Security Department taxes, filed Dec. 26. Austin L. Perry, unpaid Employment Security Department taxes, filed Dec. 26. Miguel Vargas, unpaid Employment Security Department taxes, filed Dec. 26. Esther Cortez, unpaid Employment Security Department taxes, filed Dec. 26. Shane L. Charron, unpaid Employment Security Department taxes, filed Dec. 26. Francisco R. Heredia, unpaid Employment Security Department taxes, filed Dec. 26. Cory Close, unpaid Employment Security Department taxes, filed Dec. 26. Tamara A. Madsen, unpaid Employment Security Department taxes, filed Dec. 26. Franklin M. Parada, unpaid Employment Security Department taxes, filed Dec. 26. Rebecca L. Percifield, unpaid Employment Security Department taxes, filed Dec. 26. Eric G. Johnson, unpaid Employment Security Department taxes, filed Dec. 26. Adrian Sifuentez Jr., unpaid Employment Security Department taxes, filed Dec. 26. Zachery J. Sifuentez, unpaid Employment Security Department taxes, filed Dec. 26. Lorena P. Lopez, unpaid Employment Security Department taxes, filed Dec. 26. Roque Arriaga, unpaid Employment Security Department taxes, filed Dec. 26. Alexandria C. Zavaleta, unpaid Employment Security Department taxes, filed Dec. 26. David R. Olsen, unpaid Employment Security Department taxes, filed Dec. 26. Guadalupe Cervantes, unpaid Employment Security Department taxes, filed Dec. 26. Carniceria Los Toreros, unpaid Department of Revenue taxes, filed Dec. 26. Edgar G. Gonzalez, unpaid Department of Revenue taxes, filed Dec. 26. MoodyLogic, unpaid Department of Revenue taxes, filed Dec. 26. Paw Spa, unpaid Department of Revenue taxes, filed Dec. 26. Jose M. Landa, unpaid Department of Revenue taxes, filed Dec. 26. Eastern WA Construction, unpaid Department of Revenue taxes, filed Dec. 26. CM Curbing, unpaid Department of Labor and Industries taxes, filed Dec. 26. Gotchacar, unpaid Department of Labor and Industries taxes, filed Dec. 27.

uLiquor Licenses

Information provided by the Washington State Liquor and Cannabis Board.

BENTON COUNTY NEW APPLICATIONS Level Up Arcade Bar, 1022 N. Columbia Center Blvd., Suite 210, Kennewick. License type: direct shipment receiver in Washington only; nightclub. Application type: new. Restaurante el Asadero, 127 Gage Blvd., Richland. License type: beer/wine restaurant. Application type: new. Osaka Sushi & Teriyaki, 4101 W. 27th Place, Kennewick. License type: beer/wine restaurant. Application type: assumption. Dan’s Market, 424 Gum St., Kennewick. License type: grocery store beer/wine. Application type: new. APPROVED Kendall Farms, 57705-B W. Old Inland Empire Highway, Benton City. License type: domestic winery <250,000 liters. Application type: change of location. Koko’s Bartini, 4309 W. 27th Place, Suite 100, Kennewick. License type: spirits/beer/wine restaurant lounge. Application type: new. Richland Dugout, 99 Lee Blvd., Richland. License type: direct shipment receiver in Washington only. License type: new. Su Karne Meat Market and Deli, 402 N. Ely St., Kennewick. License type: grocery store beer/wine. Application type: change of corporate officer. Tacos y Mariscos el Tequilas, 109 W. Kennewick Ave., Kennewick. License type: spirits/beer/wine restaurant lounge. Application type: in lieu. Sushi Ichiban, 1321 Columbia Center Blvd., Suite 907, Kennewick. License type: spirits/beer/ wine restaurant lounge. Application type: added/ change of tradename. Refresco, 10 E. Bruneau Ave., Suite 2, Kennewick. License type: domestic winery <250,000. Application type: assumption. Shiki Hibachi Sushi, 1408 N. Louisiana St., Kennewick. License type: direct shipment receiver in Washington only. Application type: new. DISCONTINUED 360 Cellars, 2701 S. Sherman Road, Kennewick.

License type: direct shipment receiver in Washington only. FRANKLIN COUNTY NEW APPLICATIONS Court Street Mini Mart, 37620 W. Court St., Pasco. License type: grocery store beer/wine. Application type: assumption. APPROVED Pizza Station, 238 N. Columbia, Connell. License type: beer/wine restaurant. Application type: added/change of class. Kahlua’s Lounge Bar, 1901 N. Fourth Ave., Pasco. License type: spirits/beer/wine restaurant. Application type: change of corporate officer. DISCONTINUED Andy’s Coffee Break Restaurant, 3330-A W. Court St., Pasco. License type: beer/wine restaurant.

uMARIJUANA Licenses

Information provided by the Washington State Liquor and Cannabis Board.

BENTON COUNTY APPROVED Tumbleweed Farm, 47504 N. 108 PRNW, Benton City. License type: marijuana producer tier 2. Application type: change of corporate officer. Green Point, 32408 W. Kelley Road, Suite A, Benton City. License type: marijuana producer tier 3. Application type: added fees. Craft Cannabis, 41305 N. Griffin Road, Suite D, Grandview. License type: marijuana producer tier 3. Application type: change of corporate name. RMNP, 57406 N. Thomas Road, Suite B, Benton City. License type: marijuana producer tier 2. Application type: added fees.

ubusiness UPDATES NEW BUSINESSES

Kennewick. The business offers dentistry services for all ages, braces and orthodontics, dentures, oral surgery, endodontics and more. Hours: 8 a.m. to 5 p.m. Monday and Friday, 10 a.m. to 7 p.m. Tuesday and Wednesday and 9 a.m. to 6 p.m. Thursday. Contact: 509-378-3530, brightnow.com. Kabob House Mediterranean Grill has opened at 2762 Duportail St., Richland. The restaurant serves Mediterranean style entrees, sandwiches, salads and appetizers for dine-in, take-out or catering. Hours: 11 a.m. to 9 p.m. Monday through Saturday and 11 a.m. to 7 p.m. Sunday. Contact: mykabobhouse.net, Facebook. Picture Yourself has opened at 627 The Parkway in Richland. The business offers studio space for photographers of all skill levels. The studio includes backdrops, sets, lighting and baby outfits. Hours: 10 a.m. to 5 p.m. Tuesday through Saturday. Contact: 509-578-1610, Facebook. Sweet Life Health Coaching has opened at 7105 W. Hood Place, Suite A102 in Kennewick. The business specializes in holistic health and wellness services, functional nutrition for pain, digestive issues, reproductive issues and other health concerns. Hours: by appointment only 9 a.m. to 6 p.m. Monday through Friday. Contact: 509-438-5861, healthcoachtavia.com, Facebook. Sweet Salt Modest Clothing has opened at 8901 W. Tucannon Ave., Suite 135 in Kennewick. The store sells fashionable, modest and affordable clothing for women. Hours: 10 a.m. to 6 p.m. Monday, 10 a.m. to 7 p.m. Tuesday through Saturday. Contact: 509-735-1402, sweetsaltclothing.com, Facebook. MOVED Fountain Books has moved to 8901 W. Tucannon Ave., Suite 130 in Kennewick. Contact: 509-735-1402, shopfountainbooks.com, Facebook. CLOSED Aaron’s at 2715 W. Court Street in Pasco has closed. The location at 5020 W. Clearwater Ave. in Kennewick remains open. Euphoria Salon & Spa at 1001 Wright Ave. in Richland has closed.

Bright Now! Dental has opened at 1220 N. Columbia Center Blvd., Suite A105, in

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Tri-Cities Area Journal of Business â&#x20AC;¢ January 2019