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

March 2019

Volume 18 • Issue 3

Rezone would pave way for Richland housing, school BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

Hospitality

Hospitality industry employment could get boost Page 11

Real Estate & Construction

Boiada Brazilian Steakhouse coming to Kennewick Page 21

Business to Business

Tri-Cities Local Business Association builds relationships Page 33

he Said It

“The people you work for make the difference. I owe it to my team to be the best director I can be.” -Tim Krantz, director of operations for Olive Garden’s Northwest division Page 13

Hundreds of acres north of the Queensgate Drive shopping area are poised to be rezoned by the city of Richland to pave the way for future development and a new school. The 314-acre parcel, which has been owned by Washington since its statehood, is currently zoned agricultural. The state Department of Natural Resources requested the rezone to allow for low-, medium- and high-density residential housing, as well as earmarking some land for public use. A decision could come by April. The city’s hearing examiner held a public hearing on the matter March 11 and will make a recommendation to the Richland City Council in about six weeks. “The proposal is so consistent with the Comprehensive Plan, it’s very unlikely it would not be approved,” said Shane O’Neill, senior planner for the city of Richland. Once the process is complete, the DNR said it will keep the commercial-zoned parcels, totaling about 55 acres, but sell all the residential-zoned parcels at auction. The residential zoning would cover about 200 acres, with nearly three-fourths of that zoned as low-density. “Rezoning this property is a win-win for Richland and our children,” said Hilary Franz, the state’s Commissioner of Public Lands. “New development will lead to more jobs, amenities and homes. And because this is state trust land, new development also means millions of additional dollars for public school construction.” Two parcels totaling about 45 acres are set to be zoned for public use or open space. The DNR said the larger parcel, comprising 40 acres, is intended to be transferred to the Richland School District, with the remaining acreage either intended for the school district, or to be developed as open space. “We do not yet own the parcel and there’s no official decision on what it would be used for. Its size indicates it would likely be a uLAND REZONE, Page 4

A retail complex overlooking the Columbia River is under contract after being listed for $6.4 million. (Courtesy AGM Real Estate)

Sale pending for prime Richland commercial development BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

A sale is pending for a sizable commercial property adjacent to the Columbia River at the north end of Columbia Center Boulevard, within Richland’s city limits. Two tenants vacated the 101,000-square-foot Rivers Edge Plaza in the last year, including anchor tenant Chuck E. Cheese and All-American Gymnastics. Neither space has been filled in the complex at 2600 N. Columbia Center Blvd. It is zoned C-2 for retail businesses but was being marketed to buyers for possible re-development with the opportunity for mixed-use/multi-family hous-

ing. If a new building was to go up on the site, it could be multi-storied with expansive river views. Total land available is 8.82 acres. The property is owned and listed by AGM Real Estate for $6.4 million and has been home to a number of businesses over the years, including Roy’s Western Smorgy restaurant, Brutzman’s Office Solutions and Chuck E. Cheese. Roy’s closed and its space was at occupied times with a billiards store and the gymnastics studio, but has been vacant for nearly a year. Both Brutzman’s and Chuck E. Cheese relocated to their own new buildings, with Brutzman’s just across the street on Columbia Center Boulevard. Neither of the available uCOMMERCIAL, Page 29

Independent contracting issue remains hot button at state level BY ARIELLE DREHER

for Tri-Cities Area Journal of Business

Hairstylists and salon owners around the state got Washington legislators’ attention this session when they turned out in massive numbers to oppose measures that targeted booth rentals, as well as independent contracting. In the Washington state Senate and House, Democratic lawmakers introduced bills to change and tighten the definition of an independent contractor in state law. Hairstylists and salon owners, who often work as independent contractors or own salons that independent contractors work in, were concerned about how such measures could affect their business models. Tina Taylor of Kennewick, who has worked as a hairstylist for 18 years, said the experience has taught her to pay better attention to what’s happening in the state Legislature. She

contracts a booth at Haven Hair Studio & Spa in Kennewick where she pays rent for her booth space, her own business license, liability and health insurance and her own taxes. “They’re trying to make it harder for people to make a living as a small business for some reason, but some of us love being a businesswoman and doing these things,” Taylor said. Two Moses Lake-based stylists and salon owners Heather Kerekffy and Jenny Treutle spoke with House lawmakers during a Jan. 28 public hearing on House Bill 1515. Both raised concerns about the part of the bill that would require an independent contractor’s services be “outside the usual course of business for which the service is performed,” which could present problems for salons that hire stylists as independent contractors, potentially. uCONTRACTING, Page 34

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Tri-Cities Area Journal of Business • March 2019

Small businesses unite to promote ‘Shop not Snow’ campaign BY KRIStINA LORD editor@tcjournal.biz

Snow puns decorate two dozen sugar cookies at Tsp Bakeshop in West Richland. (Courtesy Tsp Bakeshop)

It’s snow joke: West Richland bakery finds way to poke fun at weather BY KRIStINA LORD editor@tcjournal.biz

With snow on the ground and spring days away, a West Richland bakery has found a way to shovel out the wintertime blues. Tsp Bakeshop whipped up a couple dozen of sugar cookies featuring puns poking fun at the snow in royal icing with messages such as: “Ice ice baby,” “Black ice isn’t the only thing I’m falling for,” “Let it stop, Let it stop, Let it stop,” and “Every day I’m shovelin.’ ” Head baker Jacee Jamison isn’t a fan of the white stuff and thought it would be a way to channel her weather angst. “I actually hate this weather immensely. And it just keeps coming. What better way to get over it than to make fun of it,” she said. Bakeshop owner Melissa Nissen said the “punny” cookies were a good project after the creative burnout that follows Valentine’s Day. “I’m tired of looking and seeing snowflakes,” she said. “We’ve had a lot of good feedback as far as customers laughing about it and

finding it funny,” Jamison said. Tsp Bakeshop posted a photo of the cookies on social media and it resonated with the community, Jamison said. “It’s one of our biggest and most shared posts so far,” she said. The bakery, which has a staff of four, offers a range of buttery and flaky pastries in the French style, as well as custom work, cakes, sugar cookies, macrons and other treats. Customers also can find Tsp Bakeshop items at Caterpillar Café and Roasters, both in Richland. Nissen has owned the shop for two years. It has been at its current location for five years and has been open for 10 years. “It’s been a labor of love, but owning a business is not for the faint of heart,” Nissen said. The snow affected small businesses across the Tri-Cities in February, Nissen’s included. “It was definitely slower than we’re used to that week, but we didn’t have to keep our doors closed,” she said, explaining that they did open late a couple of days. Tsp Bakeshop’s hours are from 7 a.m. to 5 p.m. Tuesday through Friday and from 7 a.m. to 2 p.m. Saturday. The bakery is at 4850 Paradise Way, Suite 202.

A Kennewick business owner wasn’t too surprised when 60 Tri-City businesses stepped up to participate in a grassroots “shop local’ initiative prompted by Mother Nature’s snowfall. “I think it’s something that I have seen so many times here — these instances of camaraderie among small businesses,” said Olivia Berg, owner of BlankSpace, a Kennewick event venue. “I’m always so impressed.” The February blizzard forced the closure of schools, offices and businesses, and it was devastating to many small businesses’ bottom lines, Berg said. Many Tri-City shops suffered from a “huge drop in sales and foot traffic,” while also being slapped with extra expenses for utilities and snow remov-

al, Berg said. So she hatched a plan to drum up support for them by launching a weeklong challenge to shop local, called “Shop Not Snow.” Businesses could sign up for free to participate, but had to agree to donate a $20 gift certificate as a prize for one lucky shopper. Here’s how it works: Shoppers can pick up a Shop Not Snow card — BlankSpace printed 2,000 of them — and must visit five different participating businesses. No purchase is required, but it is strongly encouraged, Berg said. Visitors must then collect a signature from the businesses to enter the drawing for $1,200 in gift cards. Pick up the campaign cards at The Local, a coffee shop inside BlankSpace at 5453 Ridgeline Drive, Suite 140, and at 8530 W. Gage Blvd., Suite E, both in Kennewick. uSNOW, Page 8

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Tri-Cities Area Journal of Business • March 2019 LAND REZONE, From page 1

509-737-8778 8919 W. Grandridge Blvd., Ste. A1 Kennewick, WA 99336 tcjournal.biz

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Kristina Lord

Editor 509-737-8778 ext. 3 editor@tcjournal.biz

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Creative Director 509-737-8778 ext. 4 creative@tcjournal.biz

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UPCOMING April Focuses: • Environment • Transportation May Focuses: • Hanford • Arts & Culture

CORRECTION The Tri-Cities Airport’s new cellphone parking lot is northwest of the main terminal. The location was incorrect on page 17 in the February issue.

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.

school site if, at some time in the future, the district determines a school is needed in that area. The five-acre parcel would likely be open space, such as for a city park,” said Ty Beaver, Richland School District spokesman. The DNR would transfer the land directly to the school district, which would reimburse the Common School Trust for the value of the property. Any sale proceeds would go into a land replacement account for the Common School Trust, which reinvests the money by buying other revenue-producing property elsewhere in the state. The entire 314-acre lot has an assessed value from Benton County of $2.8 million and is north of Vintner Square, with Kennedy Road as its southern border, the city limits of West Richland on its western border, Truman Avenue on the east end and unincorporated Benton County to the north. The land is set to be re-valued this summer in time for the 2020 tax year. The plot known as “Richland 16” has been leased by Chiawana Orchards LLC since 1992 but that lease will expire Jan. 1, 2021. Current revenue from the lease benefits the Common School Trust, which supports the construction costs of public schools across Washington. In documents filed by the state, the DNR stated the lease will not be renewed and the request to rezone the property was so that it can be “eventually segregated, then sold and/or leased for a variety of compatible developments in the future, consistent with the city of Richland’s land use and zoning regulations.”

Agricultural land north of the Richland Target is set to be rezoned for housing, commercial development and public use, which could include the site of a future school. (Courtesy city of Richland)

Those regulations are in line with Richland’s recently revised Comprehensive Land Use Plan and the rezoning expected more than a year ago. The city is required to update its plan every decade as a means of guiding decisions on future growth. “The Growth Management Act requires all zoning aligned with the Comprehensive Plan, which was updated two years ago, and this rezoning proposal aligns with that,” O’Neill said. The land is classified as “urban reserve” by the city of Richland, which means it is

set aside for future development. City council members were previously updated on potential land use, which could include an expansion of Vintner Square or the site of a future school. If the city had any interest in the land, “(Richland) would need to lease/purchase areas as would any other developer,” said Richland’s Planning Manager Mike Stevens. The lease for Richland 16 includes revenue based on the annual crop yield of Chiawana Orchards, which averaged $165,000 annually for the Common School Trust in recent years.

Tri-Cities Area Journal of Business • March 2019 uBUSINESS BRIEFS TRAC gets new name in $1M naming rights deal

Franklin County’s TRAC facility will now be called The HAPO Center. Franklin County announced March 12 that it has entered into an agreement with HAPO Community Credit Union for the naming rights of the facility. The agreement runs for a 10-year period and is valued at $1 million. “Franklin County is pleased to partner with HAPO in this endeavor as they are making a substantial investment in the community. This is a significant contribution to the financial success of the facility, thus reducing the burden on county taxpayers,” said Keith Johnson, administrator for Franklin County, in a press release. The facility formerly known as TRAC, which stood for Trade, Recreation and Agricultural Center, opened in 1995. The complex at 6600 Burden Blvd. features a 38,184-square-foot exposition hall, 39,200-square-foot indoor dirt floor arena, atrium and three conference rooms, totaling more than 84,000 square feet of exhibit space. The HAPO Center will continue to be owned by Franklin County, with operating support from the city of Pasco, and it will continue its mission of providing space for trade, recreation, agriculture and commerce events, Johnson said.

Kennewick job fair planned for March 21

WorkSource Columbia Basin, Goodwill Employment Connections Center and Opportunities Industrialization Center Pasco will have a job fair March 21. Multiple employers from various industries will participate. Job preparation classes will be offered at Goodwill and WorkSource to better prepare job seekers. The event is from 10 a.m. to 1 p.m. at WorkSource, 815 N. Kellogg St., Suite D, Kennewick.

Leadership Tri-Cities applications due April 30

Applications are being accepted for the next Leadership Tri-Cities class. The program includes 10 sessions focusing on various sectors and industries in the Tri-Cities. The sessions give class members unique access to key facilities throughout the Tri-Cities and provide dialogue and interaction with prominent local and state leaders in the region. The class meets over 10 months for a full day each month, learning about regional issues, digging deeper with

Send us your business news info@tcjournal.biz

peers, exploring diverse perspectives and building relationships. To learn more about the program, attend an informational open house from 5:30 to 7:30 p.m. March 28 at the TriCity Development Council, 7130 W. Grandridge Blvd., Kennewick. RSVPs are not required. Tuition for the 2019-20 is $1,400 per person, which covers all fees, meals, session transportation and lodging. Applications will be accepted until 5 p.m. April 30. For more information, go to leadershiptricities.com.

Tri-Cities follows state’s surging retail sales trend

Strong sales in construction and new and used automobiles continued to boost the state’s taxable retail sales in third

quarter 2018, including in Benton and Franklin counties. Statewide, the taxable retail sales increased by 8.3 percent in the third quarter of 2018 during the same period in 2017, reaching $44.7 billion. In Benton County, taxable retails sales increase 6.2 percent in the third quarter of 2018 over a year ago, reaching $1.08 billion. In Franklin County, for the same period, the sales increased 8.7 percent, reaching $435 million. Across the Tri-Cities, here’s how much the taxable retail sales increased, year over year, for the third quarter: Kennewick, 8.4 percent; Richland, 4.7 percent; Pasco, 9.9 percent; and West Richland, 10.4 percent. Statewide, construction rose 11.6 percent to $9.5 billion and taxable retail sales

reported by new and used auto dealers increased 4.9 percent to $3.7 billion. Retail trade, a subset of all taxable retail sales in the state, also increased by 6.9 percent to a total of $18.6 billion, statewide. Retail trade includes sales of items such as clothing, furniture and automobiles, but excludes other industries, such as services and construction. Taxable retail sales are transactions subject to the retail sales tax, including sales by retailers, the construction industry, manufacturing and other sectors. These figures are part of a quarterly report released in February by the state Department of Revenue. The taxable retail sales figures compare the same quarter year-over-year to equalize any seasonal effects that would influence consumer and business spending.

Tri-Cities Area Journal of Business • March 2019

DATEBOOK

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

MARCH 19

• Cancer Crushing Breakfast, benefiting TriCities Cancer Center: 7:30 a.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. RSVP: 509-737-3373. • tourism tune Up: 9 a.m. – 2:30 p.m., Walter Clore Wine and Culinary Center, 2140 Wine Country Road, Prosser. Register: theclorecenter.org.

MARCH 21

• Digital Marketing 101: 5:30 – 7 p.m., Fuse, 723 The Parkway, Richland. Register: https://ti.to/fuse/digitalmarketing-101

MARCH 23

• the Best is Yet to Come gala, benefiting arts in the Mid-Columbia: 6 – 11 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Tickets: mcaf2019.givesmart. com.

MARCH 27

• tri-City Regional Chamber’s annual Meeting and Awards Luncheon: 11 a.m. – 1:30 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. RSVP: 509-7360510.

MARCH 28

• Safe Harbor’s annual Spring Breakfast: 7:30 – 8:30 a.m., Meadow Springs Country Club, 700 Country Club Road, Richland. RSVP: 509-783-5734. • tri-Cities Regional Economic Outlook and Annual Meeting: 7:30 a.m. – 1:30 p.m., TRAC, 6600 Burden Blvd., Pasco. Register: tridec.org. • Leadership tri-Cities Information Session: 5:30 – 7:30 p.m., Tri-Cities Business & Visitor Center, 7130 W. Grandridge Blvd., Kennewick.

APRIL 2

APRIL 8

APRIL 3

APRIL 9

• Prosser Chamber Member Meeting: noon – 1 p.m., Jeremy’s 1896 Public House, 1232 Wine Country Road, Prosser. RSVP: 509786-3177. • West Richland Chamber Luncheon: 11:30 a.m. – 1 p.m., Sunset Gardens, 915 Bypass Highway, Richland. RSVP: 509-967-0521. • Legislative Lunchbox: noon – 1 p.m., Home Builders Association of TriCities, 10001 W. Clearwater Ave., Kennewick. Tickets: Washingtonpolicy.org.

APRIL 4

• DOE Millennial Nuclear Caucus: 12:30 – 6 p.m., Pacific Northwest National Laboratory, Discovery Hall, 650 Horn Rapids Road, Richland. Register: pnnl. cvent.com/MillennialNuclear Caucus2019

• Pasco Chamber Membership Luncheon: 11:30 a.m. – 1 p.m., Red Lion Hotel, 2525 N. 20th Ave., Pasco. RSVP: 509547-9755. • Foundation for the Future Breakfast, benefiting Boys & Girls Clubs of Benton and Franklin Counties: 7:30 – 8:30 a.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. RSVP: 509-543-9980.

APRIL 10

• Ask the Experts: 3:30 – 5 p.m., Tri-Cities Business & Visitor Center, 7130 W. Grandridge Blvd., Kennewick. Register: 509-736-0510.

APRIL 11

• Procurement Power Hour: 8:30 – 9:30 a.m., TriCities Business & Visitor Center, 7130 W. Grandridge Blvd., Kennewick. Register: 509-736-0510.

APRIL 12

• Una Noche de Éxitos – A Night of Achievements Gala Dinner: 6 – 9 p.m., Red Lion Hotel, 2525 N. 20th Ave., Pasco. Tickets: 509-542-0933.

APRIL 13

• there’s No Place Like Home Fundraiser, benefiting Rebuilding Mid-Columbia: 5 – 9 p.m., M Hotel, 1515 George Washington Way, Richland. RSVP: 509-4204854. • Sock Hop & Mystery Party, benefiting Historic Downtown Prosser Association: 6:30 – 10:30 p.m., Princess Theatre Green Room, 1226 Meade Ave., Prosser. Tickets: historicprosser.com.

APRIL 18

• Downtowner Banquet: 6 – 9 p.m., Clover Island Inn, 435 N. Clover Island Drive, Kennewick. Tickets: historickennewick.org.

Tri-Cities Area Journal of Business • March 2019

Canadian investment fund buys Broetje Orchards Sale of company changes name to FirstFruit Farms BY ROBIN WOJtANIK

for Tri-Cities Area Journal of Business

The quiet sale of one of the state’s largest apple companies means Broetje Orchards has a new name: FirstFruit Farms. The sale closed at the end of 2018 and the business now operates under three entities: FirstFruits Farms LLC, FirstFruits Marketing LLC and FirstFruits Community LLC. Financial terms of the sale were not disclosed. A real estate excise tax affidavit filed with the state Department of Revenue lists the gross selling price of the real estate portion of the sale at $288 million. Formerly one of Washington’s largest family-owned and operated apple companies, the Prescott-based operation, about 30 miles northeast of the Tri-Cities in Walla Walla County, is now owned by the Ontario Teachers’ Pension Plan, based in Toronto, Ontario. Broetje Orchards was originally founded by Ralph and Cheryl Broetje more than 35 years ago. The philanthropic couple still are involved in the nonprofit Center for Sharing. Cheryl said it was too soon after the sale to comment publicly on the topic. Ontario Teachers’ also declined to comment on details about the offer and whether it was solicited by Broetje Orchards. A release from FirstFruits said the new owners are “committed to making the transaction as seamless as possible to avoid any disruption for employees and customers, and will continue the operations of several of the employee-support

programs established by Broetje Orchards.” Over the years, Broetje added seasonal housing, a day care and permanent housing for employees. “Our acquisition of Broetje Orchards is a strong strategic fit for our natural resources portfolio, providing a largescale asset with direct exposure to a staple component of the food basket. Broetje has a strong operational track record and fits our strategy of investing in permanent crops that deliver stable cash flows, strong risk-adjusted returns and inflation protection for the members of our pension plan,” said Dale Burgess, managing director and head of Ontario Teachers’ infrastructure and natural resources department. Ontario Teachers’ manages the pensions for about 323,000 active and retired elementary and high school teachers in Ontario, Canada. It is the nation’s largest single-profession plan with net assets totaling $193.9 billion in mid-2018. The organization already has agriculture investments in the United States and elsewhere in the world, covering crops like almonds, avocados and dates. The transaction did not include any staff reductions or change in leadership staff as Broetje Orchards transitioned to FirstFruits Farms LLC. “We are very pleased with the current employee base and management team led by Jim Hazen, the former Broetje Orchards business manager and newlyappointed president and CEO of the company,” Burgess said. “We look forward to being a member of this community and working with the company and its uORCHARDS, Page 8

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Walla Walla County’s largest employer, Broetje Orchards, is operating under a new name after its sale to a Canadian investment fund. (Courtesy FirstFruits Farms LLC)

Tri-Cities Area Journal of Business • March 2019

SNOW, From page 3 “I hope people will really support this movement and patronize these participating businesses,” Berg said. “Someone is going to win over $1,000 in gift cards from local businesses, which is awesome.” Kurt Stone, manager of Hi-Land Garage in Kennewick, said his auto repair shop is offering a free oil change, valued at $40. “I thought it was a cool idea. One, I like to support other small businesses in our area, and two, I just think it’s a great way to get free stuff out to people,” he said. “It’s just a good way of advertising, too.” The snow did affect Hi-Land because people didn’t want to drive in the snow

and had to cancel appointments, Stone said. The snow also “slows us down” as employees have to de-ice cars before they can be worked on and maintain the parking lot and driveways. “It was a lot more work with not as much volume of stuff coming through. I worked half days, from 6 a.m. to 6 p.m.,” Stone laughed. Stone is a fan of supporting local small businesses, too, saying $10 spent in town helps put braces on someone’s kid instead of going into a corporate CEO’s pocket. Berg said there’s a great diversity of participating businesses in the Shop Not Snow campaign, from clothing stores to restaurants and coffee shops, to wineries. “The whole purpose is to generate

revenue and some fun exposure for those businesses,” she said. Berg said the snowfall didn’t negatively affect her business, as her customers book the BlankSpace venue months in advance. But it did mean additional expenses, like extra snow removal costs. “Our snow removal bill is hundreds and hundreds of dollars in months we have snow like this,” she said. She said two years ago, it was $800. She hasn’t received February’s bill yet. “For a small business, it’s a big chunk of change,” she said. All Shop Not Snow cards must be turned into either location of The Local by March 20 for the prize drawing. For a list of participating businesses, go to shopnotsnow.com/tc.

uBUSINESS BRIEF Kennewick Man and Woman of Year named

A retired educator with a heart for hockey and a longtime board member and proponent for Grace Clinic have been named the 2018 Kennewick Man and Woman of the Year. Receiving the honors were Jenny Olson, a teacher in the Kennewick School District for 30 years, and Mark Brault, president of Grace Clinic, a Kennewick health care clinic providing free services to those in need in Benton and Franklin counties. The winners were announced Feb. 28 at the Three Rivers Convention Center in Kennewick. Olson was a teacher in the Kennewick School District for 30 years and Kennewick Elementary School Teacher of the Year in 2005. She active in the Philanthropic Education Organization, Tri-Cities Industry Kiwanis Club and DKG, a teachers’ sorority. Olson has been education advisor for the Tri-City Americans hockey team since 2013 and her home has served as a billet for Tri-City America players since 1995. Bault has served for 12 years on the board of Grace Clinic, formerly as treasurer and now as president. He was instrumental in convincing the Benton-Franklin Health District to allow its old building to be used by Grace Clinic in exchange for in-kind services. He’s also generous with his knowledge of business finance and has helped set several small businesses and individuals on a path to success.

ORCHARDS, From page 7 employees to build on its many successes in the years ahead.” Hazen declined to comment beyond the news release announcing the company’s sale. “We are looking forward to maintaining the legacy established by the Broetjes to focus on growing quality apples and investing in our people,” he said in a written statement. FirstFruits Farms said it grows, packs and ships nearly seven million boxes of apples a year, totaling about 500 million apples. These include its proprietary Opal variety, marketed as a “lunchbox hero” for being naturally non-browning. The company remains headquartered at 1111 Fishhook Park Road in Prescott, where it holds 1.1 million square feet of warehouse and packing facilities. FirstFruits Farms said it has one of the largest contiguous orchards in the United States, with more than 4,300 acres covering almost 10 miles along the Snake River. It also has orchards in Benton City and Wallula where, together, more than 15 varieties of apples and cherries are grown. FirstFruits Farms employs 2,800 people at harvest, making it the largest employer in Walla Walla County.

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

Tri-Cities Area Journal of Business • March 2019

Small businesses unite to promote ‘Shop not Snow’ campaign BY KRISTINA LORD editor@tcjournal.biz

Snow puns decorate two dozen sugar cookies at Tsp Bakeshop in West Richland. (Courtesy Tsp Bakeshop)

It’s snow joke: West Richland bakery finds way to poke fun at weather BY KRISTINA LORD editor@tcjournal.biz

Now Open in Southridge Bringing Hospitality and healing to the Tri-Cities through speciﬁc neurologically based chiropractic care.

509-579-5992 • designedlifechiropractic.com 2909 S. Quillan St., Suite 158 • Kennewick

Tri-Cities Area Journal of Business • March 2019 LAND REZONE, From page 1

509-737-8778 8919 W. Grandridge Blvd., Ste. A1 Kennewick, WA 99336 tcjournal.biz

Subscriptions http://bit.ly/TCAJOBsubscribe Submit Business News http://bit.ly/TCAJOBsubmit Submit an Event http://bit.ly/TCAJOBcalendar

STAFF Melanie Hair

Publisher 509-737-8778 ext. 5 melanie@tcjournal.biz

Kristina Lord

Editor 509-737-8778 ext. 3 editor@tcjournal.biz

Tiffany Lundstrom

Advertising Director 509-737-8778 ext. 2 tiffany@tcjournal.biz

Allison R. Stormo

Creative Director 509-737-8778 ext. 4 creative@tcjournal.biz

Chad Utecht

Advertising Account Manager 509-737-8778 ext. 1 chad@tcjournal.biz

UPCOMING April Focuses: • Environment • Transportation May Focuses: • Hanford • Arts & Culture

CORRECTION The Tri-Cities Airport’s new cellphone parking lot is northwest of the main terminal. The location was incorrect on page 17 in the February issue.

Agricultural land north of the Richland Target is set to be rezoned for housing, commercial development and public use, which could include the site of a future school. (Courtesy city of Richland)

Tri-Cities Area Journal of Business • March 2019 uBUSINESS BRIEFS TRAC gets new name in $1M naming rights deal

Kennewick job fair planned for March 21

Leadership Tri-Cities applications due April 30

Send us your business news info@tcjournal.biz

Tri-Cities follows state’s surging retail sales trend

Strong sales in construction and new and used automobiles continued to boost the state’s taxable retail sales in third

Tri-Cities Area Journal of Business • March 2019

DATEBOOK

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

MARCH 19

• Cancer Crushing Breakfast, benefiting TriCities Cancer Center: 7:30 a.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. RSVP: 509-737-3373. • Tourism Tune Up: 9 a.m. – 2:30 p.m., Walter Clore Wine and Culinary Center, 2140 Wine Country Road, Prosser. Register: theclorecenter.org.

MARCH 21

• Digital Marketing 101: 5:30 – 7 p.m., Fuse, 723 The Parkway, Richland. Register: https://ti.to/fuse/digitalmarketing-101

MARCH 23

• The Best is Yet to Come gala, benefiting arts in the Mid-Columbia: 6 – 11 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. Tickets: mcaf2019.givesmart. com.

MARCH 27

• Tri-City Regional Chamber’s annual Meeting and Awards Luncheon: 11 a.m. – 1:30 p.m., Three Rivers Convention Center, 7016 W. Grandridge Blvd., Kennewick. RSVP: 509-7360510.

MARCH 28

• Safe Harbor’s annual Spring Breakfast: 7:30 – 8:30 a.m., Meadow Springs Country Club, 700 Country Club Road, Richland. RSVP: 509-783-5734. • Tri-Cities Regional Economic Outlook and Annual Meeting: 7:30 a.m. – 1:30 p.m., TRAC, 6600 Burden Blvd., Pasco. Register: tridec.org. • Leadership Tri-Cities Information Session: 5:30 – 7:30 p.m., Tri-Cities Business & Visitor Center, 7130 W. Grandridge Blvd., Kennewick.

APRIL 2

APRIL 8

APRIL 3

APRIL 9

APRIL 4

• DOE Millennial Nuclear Caucus: 12:30 – 6 p.m., Pacific Northwest National Laboratory, Discovery Hall, 650 Horn Rapids Road, Richland. Register: pnnl. cvent.com/MillennialNuclear Caucus2019

APRIL 10

• Ask the Experts: 3:30 – 5 p.m., Tri-Cities Business & Visitor Center, 7130 W. Grandridge Blvd., Kennewick. Register: 509-736-0510.

APRIL 11

• Procurement Power Hour: 8:30 – 9:30 a.m., TriCities Business & Visitor Center, 7130 W. Grandridge Blvd., Kennewick. Register: 509-736-0510.

APRIL 12

• Una Noche de Éxitos – A Night of Achievements Gala Dinner: 6 – 9 p.m., Red Lion Hotel, 2525 N. 20th Ave., Pasco. Tickets: 509-542-0933.

APRIL 13

• There’s No Place Like Home Fundraiser, benefiting Rebuilding Mid-Columbia: 5 – 9 p.m., M Hotel, 1515 George Washington Way, Richland. RSVP: 509-4204854. • Sock Hop & Mystery Party, benefiting Historic Downtown Prosser Association: 6:30 – 10:30 p.m., Princess Theatre Green Room, 1226 Meade Ave., Prosser. Tickets: historicprosser.com.

APRIL 18

• Downtowner Banquet: 6 – 9 p.m., Clover Island Inn, 435 N. Clover Island Drive, Kennewick. Tickets: historickennewick.org.

Tri-Cities Area Journal of Business • March 2019

Canadian investment fund buys Broetje Orchards Sale of company changes name to FirstFruit Farms BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

Call 509-460-5500 www.checkmycolon.com 8819 W. Victoria Ave., Kennewick

Walla Walla County’s largest employer, Broetje Orchards, is operating under a new name after its sale to a Canadian investment fund. (Courtesy FirstFruits Farms LLC)

Tri-Cities Area Journal of Business • March 2019

uBUSINESS BRIEF Kennewick Man and Woman of Year named

Tri-Cities Area Journal of Business • March 2019

Wineries try six-pack approach to reach younger wine drinkers BY ANDY PERDUE

for Tri-Cities Area Journal of Business

More than any winery in Washington, Richland’s Barnard Griffin has a wellearned reputation as a leader in the Northwest’s burgeoning rosé wine market. Now the longtime winery is testing a new kind of innovative packaging: putting wine in an aluminum can. Along the West Coast and in the Northwest, more wineries are putting wine in cans, partially in an effort to reach a younger demographic of wine drinkers, as well as for consumer convenience. According to a recent Gallup poll, as many Americans prefer wine to beer as their choice of adult beverage, so a move to a can, which takes no special tool or skill to open, makes greater sense. Retailers are beginning to put canned wine in the beer aisle, which delights winery owners who look for ways to penetrate that demographic. Barnard Griffin made 16,000 cases of rosé from the 2018 vintage, and is putting the equivalent of 4,000 cases in cans. Each can holds 12 ounces — equivalent to a half-bottle of wine (a standard wine bottle is 750 milliliters, or 25 ounces). The canned version probably will retail for $6.99, while a bottle will cost $14 The winery also put some of its Chardonnay and Sauvignon Blanc in cans. The canned versions of the wines will be in distribution only, including grocery and specialty stores, rather than at the winery. In January, Barnard Griffin’s 2018 Rosé of Sangiovese won a unanimous double gold medal at the San Francisco Chronicle Wine Competition in California’s Sonoma County. The wine has won a gold medal or better 13 times in 14 years at the largest judging in America. The wine that goes into cans is identical to what is in the bottle, said assistant winemaker Megan Hughes, daughter of founders Rob Griffin and Debra Barnard. Hughes, 30, sees the new package as a way to appeal to younger wine drinkers. “We’re aware that it’s millennials who mainly are buying cans, but honestly, cans are a good package for a lot of different people,” Hughes said. “Some people like the fact that it’s recyclable. A lot of other people enjoy that when they go out with

their buddies that you can have a serving of wine while everybody else is drinking a different thing, whether it’s a cocktail or a beer.” Cans work well in many situations. It’s easy to throw a few cans of wine into a cooler. It takes no special tool (such as a corkscrew) to open, you don’t have to worry about a glass bottle. Barnard Griffin is not alone in jumping into canned wine. Goose Ridge Vineyards in Richland has two canned wines under its Cascadian Outfitters label. Milbrandt Vineyards, which used a Cabernet Sauvignon to make Wine Spectator’s Top 100 list for 2018, recently unveiled three canned wines. Precept Wines in Seattle (the state’s second-largest wine producer) has cans for its House Wine label. In July, it’s releasing three wines from Waterbrook Winery in Walla Walla. And two of its Idaho wineries, Ste. Chapelle and Sawtooth, will have wines coming out in cans. In Sherwood, Oregon, Union Wine Co. has been at the forefront of the Northwest canned wine movement under its Underwood label. Newcomers include Stoller Wine Group in Dayton with its Canned Oregon and Dobbes Family Estate’s Joe To Go in Dundee. Ron Penner-Ash is part of the Portland-based group behind Free Public Wines, and those wines are canned in Prosser by Four Feathers Wine Estates. Because consumers are seeing canned wines from California and elsewhere from the world of wine, Barnard Griffin seems

Winemaker Megan Hughes holds up a six-pack of Barnard Griffin wine along with a bottle of rosé. The Richland winery joins a growing list of others which are putting their wines in aluminum cans.

to be a fit for the canned wine scene. Pink and white wines are perfect styles for cans. They are meant to be consumed quickly versus aging. A can of wine also is easy to chill on ice while grilling food under the Columbia Valley summer skies. Barnard Griffin produces 20 wines in addition to its reserve tier, but Hughes said don’t expect any of their red wines to go into cans anytime soon. “I don’t think we’re going to do any red wines in cans,” Hughes said. “It’s a fastmoving market that seems geared toward

white wine drinkers. But we’re open to anything, so never say never.” The process of getting the three wines into cans took about a year after she pitched the idea to her dad, who has been making Washington wine for 43 years since coming to the Tri-Cities from his native California in the mid-70s. “We’ve put wine in glass for a number of years with our own equipment and knowing all of the variables,” Hughes uWINE, Page 10

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Tri-Cities Area Journal of Business • March 2019

Washington state bill would give small wineries tax break BY JOHN STANG

for Tri-Cities Area Journal of Business

A proposed tax break for small wineries is working its way through the Washington Legislature. The bill by Sen. Judy Warnick, R-Moses Lake, addresses wineries producing 50,000 gallons or less a year — exempting them from paying the state wine tax on their first 20,000 gallons. “I’m for the little guy,” Warnick said. Owners of small wineries had approached Warnick to push for a tax break. She tried to get a tax break through in the past, but changed it this session to cover the first 20,000 gallons, which Warnick believes will convince enough

Democrats to vote for it. Democrats had troubles with this break taking money from the coffers of the State Liquor & Cannabis Control Board. “Overall, wineries have a pretty high tax burden,” said Josh McDonald, executive director of the Washington Wine Institute. In Feb. 12 testimony before the Senate Labor & Commerce Committee, Senate Bill 5406 supporters contended that 300 to 350 of Washington’s 971 wineries did not make any wine in 2018, with many having to choose between paying the wine tax or buying grapes. They also noted that taxes have already been lowered for craft distilleries, microbreweries and cider producers. McDonald did not know how many of the 300-plus non-producing wineries in

2018 decided to to make wine due to taxes. However, Wade Wolfe of Thurston Wolfe Winery in Prosser thinks the legislation “is very divisive for the industry with who pays taxes and who doesn’t pay taxes.” He prefers to see the proposed tax break go to all wineries — regardless of size. Wolf does not see the state excise tax as a major burden when considering that wineries also pay a federal excise tax on their preparation, a state business-and-occupation tax on their gross receipts, a federal income tax on their businesses and any additional state taxes when they sell their wine outside of Washington. Wolfe Thurston pays about $4,000 a year in state excise taxes.

The federal excise tax system provides tax breaks up to the first 750,000 gallons of production. Washington’s wine tax rates are $0.2292 per liter for table wines, $0.4536 per liter for fortified wines and $.0814 per liter for cider. If this tax break is approved, the Washington Liquor & Cannabis Control Board would lose $4.2 million in fiscal 2019-21, according to state figures. In other wine-related legislation: • Washington House Bill 1563 by Rep. Bill Jenkin, R-Prosser, passed 89-6, allowing students younger than 21 to taste wine if they are enrolled in wine-related course in post-secondary education. The course or field trip must have a special permit from the state Liquor & Cannabis Control Board. The bill is now going through the Senate. Testimony before the House Commerce & Gaming Committee contended students enrolled in wine-related courses tend to be young and this will help them get hands-on experience in wine-making. • The House also unanimously passed House Bill 1672 by Rep. Mike Steele, R-Chelan, that would allow someone at a winery or tasting room to drink some wine out of a bottle, have it recorked or recapped and take it away from the premises. That bill is now going through the Senate. Testimony before the House commerce committee says this will help prevent people in wineries and tasting rooms from guzzling the remaining wine in a bottle before they leave.

WINE, From page 9 said. “But this is a totally new package launch, so we brought somebody in and he had all of the equipment that allowed us to put it in the can.” They contracted with a company called Tinman Mobile Canning based in Clackamas, Oregon. ••• Wine Press Northwest magazine in Kennewick has named Palencia Wine Co. its 2019 Pacific Northwest Winery of the Year. Owner Victor Palencia operates Palencia and his Vino la Monarcha brands out of downtown Kennewick. ••• The Washington Winegrowers Association handed out the following awards at its annual convention in February: Lifetime Achievement Award: Ted Baseler, retired CEO of Ste. Michelle Wine Estates; Industry Service Award to Rick Hamman of Hogue Ranches; Grand Vin Award to Charlie Hoppes of Fidelitas Wines on Red Mountain; Grower of the Year went to Jim McFerran of Wahluke Wine Co. in Mattawa. ••• Milbrandt Vineyards was named Wine Press Northwest magazine’s 2019 Washington Winery of the Year. Butch Milbrandt and his son, Buck, operate tasting rooms in Prosser, Woodinville and Leavenworth. Andy Perdue, editor and publisher of Great Northwest Wine and founding editor of Wine Press Northwest magazine, is the wine columnist for The Seattle Times.

Tri-Cities Area Journal of Business • March 2019

HOSPITALITY State hospitality group aims to boost industry employment BY JENNIFER L. DREY

for Tri-Cities Area Journal of Business

The Washington Hospitality Association is hoping to see more job seekers land work in the hospitality industry this year through a proposed bill in the state Legislature. The bill would provide $150,000 for the association’s nonprofit educational wing to use to hold career fairs focused on on-the-job-learning opportunities, said David Faro, director of the association’s Education Foundation. House Bill 1556, which would establish the Opportunities for Employment in Hospitality Grant, targets underserved groups, including those experiencing homelessness, those re-entering the workforce after an extended absence, veterans and spouses of veterans. A companion Senate Bill 5808, also has been introduced in the state Senate. Of the funding, $120,000 would go to the foundation to be used to hold four career fairs in four geographic regions of the state. The other $30,000 would be used to offer wrap-around services, such as child care, transportation, job coaching and networking, in partnership with the Washington Employment Security

An applicant fills out paperwork at a May career fair hosted by the Washington Hospitality Association Education Foundation. More than 100 job seekers and 17 employers participated in the event. (Courtesy Washington Hospitality Association)

Department. “Our state should use every tool available to increase employment, and doubly so for those who are too often excluded from the job market,” said Rep. Jared Mead, D-Mill Creek, who sponsored the House bill. For restaurant and hotel operators, the grant has the potential to provide much

needed relief from an ongoing labor shortage that has worsened in recent years. In a 2018 survey, 41 percent of the Washington Hospitality Association’s restaurant members reported finding and keeping employees as their greatest business challenge, a figure that was more than double from the 20 percent that reported labor as a top challenge when

surveyed in 2016. Hotel owners experienced a similar trend. In 2018, 37 percent of the association’s hotel members said finding and keeping employees was their top business challenge, up from 23 percent who reported it as the top challenge two years earlier. At the same time, the restaurant and lodging industries in Benton and Franklin counties continue to grow. Restaurant sales increased by 25 percent in Benton County between 2014-17 and by 31 percent in Franklin County during that time. Hotel sales figures jumped by 29 percent in Benton County and by 19 percent in Franklin County between 2014-17, according to data provided by the association. At Hops n Drops, formerly Hop Jacks, which has restaurants in Richland and Kennewick, director of operations Jeff Morgan said the local labor market is as tight as the company has seen since coming to the area in 2013. Hops n Drops has 19 locations in Washington, Oregon and Colorado and employs more than 1,000 employees companywide. “Tri-Cities is not as tough as Seattle, uHOSPITALITY, Page 14

Tri-Cities Area Journal of Business • March 2019

Hospitality

Tri-Cities Area Journal of Business • March 2019

Hospitality

Olive Garden manager earns national award for ‘exceptional’ service BY JEFF MORROW

for Tri-Cities Area Journal of Business

When he was young, Tim Krantz wanted to be a doctor so he could take care of people. But that dream never came true for the Richland man. Instead, Krantz has spent the last 22 years working in the restaurant industry, taking care of his employees and customers. As the director of operations for eight Olive Garden restaurants in the Northwest, Krantz’s bosses also noticed last fall how well he took care of everyone. His territory includes restaurants in Kennewick, Yakima, Spokane, East Wenatchee, Bend, Boise, Coeur d’Alene and Nampa. Krantz earned a Diamond Club award last September. It’s one of the top honors presented at parent company Darden Restaurants. He was one of five directors of operations selected from more than 100 Olive Garden regions in the country. Krantz was recognized for his commitment to delivering guest experiences at the highest level, while making a difference in the lives of guests and team members, as well as in his community, according to Darden. This was the first time Krantz received the honor. “You know, the award just reflects all of my team,” he said. “On our team, we treat everyone in the business as family.” Darden Restaurants is a huge company. It operates eight restaurant chains, includ-

ing Olive Garden, under its umbrella. It runs more than 1,500 restaurants and employs more than 150,000 people, making it the world’s largest full-service restaurant company. As of May 2018, there were 892 Olive Gardens around the world, with an annual revenue of $3.8 billion, well over half of all Darden Restaurant revenues. Krantz doesn’t think about those numbers, though. He thinks about the people. It’s why he loves the hospitality industry. “It’s a combination of things,” Krantz said. “For one, you get to go to work and change people’s lives on a daily basis. No. 2 is the guests. I absolutely love taking care of people. Which is why I wanted to be a doctor. “You have to have (the passion) in your heart. And you have to be able to anticipate needs. You have to access what those needs are. People will always come for the food. But they come back more frequently for the service. It is value you are creating.” Krantz has impressed his bosses. “Tim is a dedicated and enthusiastic leader, who embodies our core values,” said Dan Kiernan, president of Olive Garden, in a news release. “His passion is running great restaurants and developing stellar restaurant leaders makes him an exceptional director within the Olive Garden family.” Krantz grew up in the Tri-Cities, working at Red Lobster while earning his associate of arts degree at Columbia

Richland’s Tim Krantz, center, holds the Diamond Club award he recently received from Darden Restaurants for his leadership and professional development of his team members. Krantz is director of operations for eight Olive Garden restaurants in the Northwest. Darden CEO Gene Lee, left, and Darden President Dan Kiernan, right, stand beside him. (Courtesy Tim Krantz)

Basin College in Pasco. “My hosting job at Red Lobster was my first real restaurant job,” Krantz said. “I put myself through school. My family couldn’t afford to help me. I had paid my own way through school with tips. I was working at Red Lobster, Red Robin and going to school full time.” Then Krantz decided to take some time away from school. It was then he realized where his heart was. “I loved the hospitality business so much that I went into management at an

early age,” he said. “I loved it. I have always loved it.” He worked his way up at Red Lobster to managing a restaurant in California. He was with Red Lobster for 16 years and said he was very loyal to the company. “But I had been trying for 10 years to get home to Washington from the California store I was running,” he said. “I wanted to be close to my family. Everybody who knew me knew that.” uOLIVE GARDEN, Page 14

Tri-Cities Area Journal of Business • March 2019

HOSPITALITY, From page 11 but it’s as tough as I’ve ever seen it,” said Morgan, who also serves on the board of the Washington Hospitality Association Education Foundation. Morgan and Faro both believe that the proposed funding is important because it would provide another way for employers to connect with prospective employees in a competitive market. “We know the need in our industry, and to call it ‘massive’ would be an understatement,” Faro said. “There are people who can’t open new stores right now. They could — the market is there and the business is there — they just can’t find the employees right now.” Having hosted career fairs in 2017 and 2018 that averaged 110 job placements per event, Faro said the Education

Foundation already has the know-how to host successful career fair events, but it currently lacks the funding. The money that supported the foundation’s prior career fairs dried up due to changes in funding cycles and other factors but not before placing nearly 500 people into jobs in the hospitality industry. The foundation believes it could double or even triple that amount of job placements with the money that would be provided by Opportunities for Employment in Hospitality Grant because of its focus on additional underserved groups, Faro said. “We’re looking to do this again because the number of jobs we brought to the table was in the thousands,” he said. “At any one of these hiring events, had every job that we brought been filled, we would

Hospitality have filled over 1,000 jobs.” The foundation has not yet hosted a career fair in the Tri-Cities but hopes to do so this year or next. In Pierce County, where the foundation held career fairs in 2017 and 2018, Tom Pavlik, general manager Hotel Murano in Tacoma, said he hired 12 of the hotel’s 200 employees between the two events. He found the career fairs to be a welcome alternative to using online advertising and other more traditional routes to try to find employees. “Everyone that shows up is willing and able. They’re looking for new opportunities, so it was successful from that standpoint,” Pavlik said. “There’s a number of associates we hired at the event over two years ago who are still with us today.” If the funding from the hospitality

grant does come through, the foundation will put an added focus on connecting attendees at its future career fairs with opportunities for career-connected learning, a statewide trend across all industries that promotes apprenticeship as a means of gaining experience. The hospitality industry is already well versed in the idea of career-connected learning, at least on an informal level, but the foundation is working to formalize more apprenticeships and find them a spot in community colleges and other teaching venues. Based on current feedback, the Washington Hospitality Association anticipates that even if the Opportunities for Employment in Hospitality Grant fails to pass as a bill, the funding would still be made available through a fiscal note in the state budget, Faro said. The association also has been keeping a close eye on other legislation affecting the hospitality industry, including: • Panic buttons: The association supports legislation (Senate Bill 5258) to protect workers by requiring every hospitality employer to adopt a sexual harassment policy, provide mandatory sexual harassment prevention training to all employees, provide a list of resources for employees and provide a panic button to isolated workers. The Senate bill was passed in February and has been referred to the House Labor & Workplace Standards Committee. • Restrictive scheduling: The association was opposed to proposed legislation that would have implemented restrictive scheduling requirements for hospitality employees across Washington. The Senate bill failed to make it out of committee, but the association will continue to monitor the issue and look to be involved if it resurfaces in the future. OLIVE GARDEN, From page 13 The move to Olive Garden happened almost six years ago. “For years, when I worked at Red Lobster, my wife was working at Olive Garden,” Krantz said. “We couldn’t work in the same restaurant.” (At that time, Red Lobster was also owned by Darden, but has since been sold to another company). Krantz said he would come in and eat at Olive Garden when his wife was working, and he saw the interaction of the employees with the customers. He was impressed. Then a mentor he admired joined Olive Garden. He followed her. “She helped to create a way for me to get home to my family,” he said. “An opening occurred in Tacoma. It was a godsend. I was only thee and a half hours from my family. I could do that. We accepted that offer and I was ready to be in Tacoma.” Then things changed again. And he gets emotional telling the story. “But then they came back at me and said, ‘Tim, how about if we put you back in Richland?’ ” That was 2013. Krantz accepted the position. “My dream job has always been to be a director of operations,” he said.

Tri-Cities Area Journal of Business • March 2019

Hospitality

Pulse of Tri-City travel and tourism industry beats strong BY D. PATRICK JONES

for Tri-Cities Area Journal of Business

Nearly all communities want to be popular with visitors. The sentiment has sound economics behind it since visitors bring new dollars into the local economy. Their visits catalyze economic transactions that wouldn’t have happened otherwise. There are, of course, other, non-monetary reasons to embrace visitors, such as introducing the outside world to the place we call home. But measuring the effects of visitors is complicated. Ideally, we would like to know how big a contribution they make to the local economy. And whether their economic influence is growing or diminishing. A problem: there are no turnstiles at county lines asking for visitor status. To begin, what do mean by tourism? Following federal standards, the official term is “travel and tourism.” This definition covers visitors for both business and leisure reasons. The sectors typically included in travel and tourism are, ranked by size nationally: non-air transportation, accommodations, air travel, shopping, food and beverage services, and recreation and entertainment. Thanks to the U.S. Department of Commerce, we have a sense of the size of travel and tourism at the national level. Its measurement is relatively new since these activities have never been recognized as a unique sector, such as manufacturing or agriculture. Instead, for the past 20 years the commerce

department has produced a satellite account. This approach pulls effects such as spending or employment from the regular sectors of our D. Patrick Jones economic Eastern accounting via Washington assumptions University about what constitutes resident or visitor activity. What’s a visitor? According to the feds, someone from 50 or more miles away. As a satellite calculation, the totals are not used in producing national aggregates such as GDP. For 2016, the most recently analyzed year, the Department of Commerce calculated that 3.6 percent of the U.S. workforce was engaged in travel and tourism. Further, 2.8 percent of the national GDP was accounted for by visitor spending. These are direct effects, and do not include the impact of any multiplier calculations. How much do visitors spend in Benton and Franklin counties? Nothing is available from the commerce department for states, metro areas and counties. If we applied national ratios to the Benton-Franklin metro economy, we’d arrive at nearly $330 million in “visitor GDP” in 2016 — or about 5,200 jobs, full- or part-time. But that assumes that travel and tourism in the two counties

(Courtesy Benton-Franklin Trends)

mirrors national averages. What is the true effect annually? The short answer is, we don’t know with great accuracy. Benton-Franklin Trends data, however, contains at least two indicators that point to the size and growth of travel and tourism. The first comes from a Portland research organization, Dean Runyan & Associates. Much like the Department of Commerce does nationally, this firm analyzes the visitor economy at the state and local levels. The methodology, while complicated, is similar to that of the feds. At the core is an estimate of visitor

spending. Spending has two elements: the volume of visitors and spending per visitor. Both components are not easy to estimate, with spending per visitor dependent on a set of surveys that are then applied broadly. Visitor count estimates largely follow from hotel/motel occupancy reports, although the growing popularity of private rental homes has complicated those calculations. Once visitor spending is estimated by sector, other direct effects, such as employment, can be calculated. uTOURISM, Page 18

Tri-Cities Area Journal of Business • March 2019

Hospitality

Tri-Cities Area Journal of Business • March 2019

Hospitality

Improve customer satisfaction, sales with beverage, wine list BY ROBERT HARRINGTON

for Tri-Cities Area Journal of Business

A cohesive and well-researched strategy for a wine and beverage list is a key component of a successful restaurant, bar or tasting room. This approach entails defining and assessing competitors, identifying targeted customers and what sort of menu approach is likely to be most successful. Once these aspects are identified, better decisions can be made to determine list size, variety, organization, layout, etc. The first step in this part of the process is to define the criteria for identifying direct competitors. Three main criteria that I usually use are location (those similar to us in a relatively close proximity), same type of business or industry segment and those with similar prices and offerings. In terms of location, the distance that will define a competitor may vary by type of establishment (for instance, the distance for a competitor in the limited service segment will be narrower than if you compete in fine-dining segment, as customers are more willing to travel longer distances). Once you have identified your logical direct competitors, assess the following: • Who is coming to the restaurant/ bar? • Was the restaurant/bar full? • Is the menu interesting? • Is the food and beverage quality excellent? • How do the menu/wine menu prices compare? • What does this place do well and what are the main deficiencies? • What are their hours of operation, number of seats, menu prices, menu type/size, menu presentation and menu variety? After this step, you will have a better idea of the strengths/weaknesses of your competitions’ beverage offerings; menu pricing practices; the types of consumers they attract; types of beverages likely to be must-haves; and the types of beverages will create uniqueness for your establishment to drive traffic and profits. A second aspect to determine before developing a beverage list/menu is defining your primary, secondary and tertiary markets. This can be done in several ways, such as traditional demographics (age, gender, income, education, etc.), lifestyle characteristics (for example, a recent study defined wine groups into six categories — given that the majority of consumers drink wine, beer and spirits, these descriptors are likely to apply), or by consumption patterns/preferences for beverages, as well as visit purpose (business, leisure, special occasion, events, etc.). If using the following six wine group categories (or other groupings), you will want to determine if your primary focus is on a small number of these groups or do you want to try to have enough options to meet the needs of all six

groups. Or do you run the risk of being “stuck in the middle” and not fully meeting the needs of any one group? Here are the six categoRobert Harrington ries: Washington State • Engaged University Tri-Cities Explorers: younger population, frequent wine drinkers and highest spenders who enjoy broad repertoire of wine styles/regions and new wine experiences. • Premium Brand Suburbans: frequent wine drinkers but mid/older age who are the lowest spenders per bottle, stick to the wines they know but have high wine knowledge. • Contented Treaters: mid/older aged; affluent drinkers and high spenders, but less frequent drinkers. They’re knowledgeable and involved, enjoy broad range and influenced by wine origin. • Social Newbies: youngest segment; drink wine about twice a week, midspenders with wine not integrated into their lifestyle. Limited knowledge; rely on recommendations. • Senior Bargain Hunters: least frequent/oldest segments; relatively strong knowledge but purchase narrow repertoire/value driven. • Kitchen Casuals: oldest/infrequent drinkers, few consuming wine on premise; limited interest in the wine category, sticking to narrow range of wines they know. (Source: Perrett 2018. Wine Consumer Segmentation Portraits. Wine Intelligence.) Once you have completed the process of articulating your target audience and have identified competitors, the beverage menu development team will be better able to articulate what beverage selections should be included? How does this appeal to our targeted consumers? How will the beverage list make us unique compared to competitors? And, what beverage trends need to be considered when formulating our list? This initial thought process should assist in defining type of menu, size, pricing strategy within the confines of your establishment’s reputation and creating a fit with its reputation and resources (staff capabilities, space available, etc.) and the competitive environment in which you operate. Robert Harrington is academic director for the Carson College of Business and professor in School of Hospitality Business Management at Washington State University Tri-Cities in Richland. He is the author of the book, “Food and Wine Pairing: A Sensory Experience” and a frequent author of research in the areas of hospitality and wine business.

Tri-Cities Area Journal of Business • March 2019

TOURISM, From page 15 What does the Trends indicator on direct visitor spending reveal about travel and tourism in the two counties? For the most recently estimated year, 2017, total expenditures summed to nearly $625 million. That represents more than a doubling since 2000. In terms of a growth rate, expenditures have climbed 4.8 percent, compounded annually. This contrasts to a 2.7 percent growth rate throughout Washington state for nearly the same period, 2000-16. What does the lodging tax tell us? A less ambitious but accurate measure of travel and tourism can be found in state taxes levied on the accommodations industry. By definition, the bulk of activity of hotels is putting “heads in beds.”

And it’s unlikely that many of those heads are local ones. Some of the state collection is returned to the communities for visitor promotion. The Trends indicator on lodging tax redistributions tracks spending at hotels and motels, using the “state shared” rate (the general sales tax rate). This component of redistributed lodging taxes is based on a largely a constant rate, enabling year-to-year comparisons within the accommodation sector. This approach also enables comparisons to other counties in the state because their general sales tax rates do not vary much either. Many communities levy additional taxes on visitors, but this measure excludes them. What does the lodging tax redistribu-

Hospitality tion indicator tell us about the growth of accommodation revenue in the greater Tri-Cities? Strong growth over the interval, 2004-17: 5.2 percent per year compounded annually. The reflects a near doubling of accommodation revenues in the past 14 years. The graph shows the experience of the accommodation industry in all of Washington to be about the same, with a compounded growth rate at 5.8 percent. Despite the difficulties in measurement, it certainly appears that the greater Tri-Cities is showing a strong pulse in travel and tourism. D. Patrick Jones is executive director for Eastern Washington University’s Institute for Public Policy & Economic Analysis.

uBUSINESS BRIEF Prosser legislator back at work after heart attack

Rep. Bill Jenkin, R-Prosser, has returned to Olympia following a heart attack Jan. 25. “Having a heart attack was a life-changing event. But let me tell you, it sure is nice to be back to work here in Olympia, proudly representing the people of the 16th District,” Jenkin said in a news release. Jenkin has resumed his leadership role as the ranking Republican on the House Housing, Community Development and Veterans Committee. He also resumes service on the House Capital Budget and Commerce and Gaming committees. The Legislature is scheduled to adjourn the 105-day session April 28.

Brief background about your hotel: The late Tom Drumheller, with Escape Lodging of Cannon Beach, Oregon, worked on the Lodge at Columbia Point hotel project for more than 12 years. He finally broke ground on his dream in September 2015. He grew up in Walla Walla and had the vision for a boutique winery-themed hotel. The Tri-Cities was ready for a hotel that would take it to the next level, and the timing was right. To raise the bar in the Tri-Cities, you needed the caliber of hotel like The Lodge at Columbia Point. The Lodge helps promote and market this area as a destination, not just a pass-through location. Number of employees you oversee: 48 Your hospitality experience: Being the child of missionaries, I learned hospitality at an early age. I started out loving kids in my day care, and then moved on to serving in restaurants. The past 20 years I have worked in hotels, managing and helping open several properties. This is the third hotel I have opened with Escape Lodging. The Inn at Cannon Beach and The Ocean Lodge were the other two. How did you land your current role? When Tom was working on the project, he asked if I would ever consider moving to the Tri-Cities. I have family in the area and needed to be closer to help with my parents, so the opportunity was right. How long have you been in it? For more than 30 years.

Q&A

Tri-Cities Area Journal of Business • March 2019

WENDY HIGGINS

General Manager, The Lodge at Columbia Point How did you decide to pursue the career that you are working in today? Many people go looking for their passion to make a career. My passion found me and it turned into a career. Why should the Tri-Cities care about the hospitality industry? With the growth of the wine industry, sports and addition of the Manhattan project, this area is becoming a destination to travel to. The economic effect is substantial as it provides job creation in many areas. Biggest challenge facing/managers in the hospitality sector today? Finding good people is the biggest challenge. Another area I see as a challenge is what our industry is fighting at the state level. Restrictive scheduling being one. Advice for someone going into a leadership position for the first time? Don’t think you have achieved anything yet, leadership must be earned. Don’t expect anyone to do something you aren’t willing to do yourself.

What is one characteristic that you believe every leader should possess? Humility Who are your role models or mentors? Tom Drumheller and Patrick Nofield have been amazing mentors in hotels. My mom and dad had the gift of hospitality. Their home was always open to everyone. They were involved in ministry wherever my dad was stationed in the military. Later, they became missionaries and pastored a servicemen’s church. Relationships were built around the table. John Maxwell is my favorite when it comes to mentoring me as a leader. How do you measure success in your workplace? When you see your employees going the “second mile” with no expectations in return, that is a success to me. Another success is seeing people I have planted seeds of leadership in now managing other hotels. How do you keep your employees (or team members) motivated? I am passionate about leadership. If you

Wendy Higgins (Courtesy Crowerks)

invest in people and raise the bar on leadership, you raise the bar on hospitality. It’s all about taking care of people. Before we can take care of guests, you have to take care of staff. It overflows on to everything you do. What do you consider your leadership style to be? Servant leadership How do you balance work and family life? When I am off, I very rarely check emails or check in at work. I am accessible if they need me, but we all need a time of rest. I work long hours when I am there. uQ&A, Page 20

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Tri-Cities Area Journal of Business • March 2019

uBUSINESS BRIEFS Carson College of Business fundraiser rescheduled

A blizzard prompted the rescheduling of the third annual Point to Success Brunch to benefit the Carson College of Business at Washington State University Tri-Cities. The event will be at 10 a.m. March 30 at Anthony’s Restaurant in Richland. It was originally scheduled Feb. 9. Those who have already registered are good to go. If not, registration is reopened at tricities.wsu.edu/ccbbrunch. Cost is $100 per person. The master of ceremonies will be KNDU Television news anchor Tracci Dial and the featured speaker will be Tim Hanni, an internationally known

expert in wine and the wine business, and the first person in the U.S. to earn the Master of Wine credential. He is author of “Why you like the Wines you Like.” The brunch will include a live auction, a $25 wine grab and $10 game of heads-or-tails. Anthony’s is donating the venue, food and champagne, so almost all of the money raised goes to the Carson College of Business at WSU Tri-Cities.

SBA offers free small business training program

For the fourth consecutive year, the U.S. Small Business Administration Spokane Branch Office – part of the SBA Seattle District – is offering the Emerging Leaders training program for

small businesses in the Inland Northwest on the brink of growth. The program provides free entrepreneurship education and training for executives of small, poised-for-growth companies that are potential job creators. This entrepreneurship series includes nearly 100 hours of classroom time and provides opportunities for small business owners to work with experienced coaches and mentors, attend workshops and develop connections with peers, local leaders and the financial community. Past graduates include small-business owners from north Idaho, the Tri-Cities, Walla Walla, Colville and Spokane. Since its inception in 2008, the SBA Emerging Leaders Initiative has trained more 5,000 small business owners across the country. The program has grown to

be offered in 60 cities across the U.S. this year. Basic eligibility requirements to participate include: having business annual revenues between $250,000 and $10 million; been in business for at least three years; have at least one employee, other than self; and demonstrate the business is on the brink of growth or transition. The program is free to small-business owners, but space is limited. There are 20 available seats. The SBA Spokane Branch Office is accepting online applications at www. sba.gov/EmergingLeaders through March 24. The program will run from May through October. For more information about the program, contact Joel Nania at joel.nania@ sba.gov or 509-353-2810.

Fuse offers eight-week small business startup series

A local workshop series aimed at small businesses called Launch Startup kicks off April 9 at Fuse in Richland. The weekly series runs from 6:30 to 8:30 p.m. every Tuesday through June 4. Entrepreneurs who already have started their company and are now looking to deepen their business knowledge and develop a plan for improvement are ideal candidates for the course. Weekly topics include financial growth and control, sales and marketing, product solutions, team building, building a customer service culture and financial growth and control. Instructors are seasoned business owners willing to share their experiences of success and challenges in growing a small business. The class is $297 for Fuse members, or $397 for others. Non-members receive free coworking at Fuse for the duration of the eight-week series. For more information, go to fusespc. com/fuse-launch-startup.

Q&A, From page 19 What do you like to do when you are not at work? I love to spend time with my family and grandchildren. Our favorite hang out is Barnes and Noble; we love books. What’s your best time management strategy? I spend a lot of time loving on people, but when I close my office door, I get more done. Meeting with my team leaders in our daily line up every morning keeps us on track. What’s your favorite podcast? Most-used app? GLSnext (from the Global Leadership Summit) and right now Media @ Work. Best tip to relieve stress? I am usually up at 5 a.m. for my quiet time. It’s my spiritual time, I read, pray and journal. It’s where I get my balance and peace. Best tip for a great hotel stay? Take time to unplug, unwind and enjoy a nice glass of wine. Cheers!

Tri-Cities Area Journal of Business • March 2019

REAL ESTATE & CONSTRUCTION

Get a bite of Brazil at steakhouse coming to Kennewick Steakhouse to feature traditional dishes from owners’ native country BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

It’s hard to contain the excitement and enthusiasm shared by two families planning to open what’s thought to be the Tri-Cities’ first traditional Brazilian steakhouse. “We want to bring the music, the culture, the happiness. Brazilians are happy people,” Thea Dicenzo said. “We want people who come to our restaurant to feel good.” Boiada Brazilian Steakhouse will be at 8418 W. Gage Blvd. in Kennewick, tucked behind Summit Funding and close to Uncle Sam’s Saloon, in a building once occupied by nightclubs and a casino. The owners are native to Brazil. “We had a lot of people comment on the Facebook and say, ‘Oh, I hope the owners are Brazilian,’ and we are,” said Hisadora Ferriera, who is managing the hiring of new employees. “Boiada translates to ‘cattle,’ but for

us, in Portuguese, it really is like a pack of bulls,” said Hisadora, who has worked at a Utah Brazilian steakhouse chain with her father, Adalberto Ferreira, for the past few years. The family moved to the Tri-Cities to open the restaurant with their longtime family friends, Dallas and Thea Dicenzo, who live in Benton City. “We were thinking of opening something in the food industry area before, maybe franchising, and then they came with this idea and we embraced it,” Thea said. Adalberto has worked in the restaurant industry for nearly 20 years, in Brazil and most recently at Tucanos Brazilian Grill, which has its nearest location in Boise. He will be the “meat expert,” using his experience to focus on marinating and cutting the 17 kinds of meats and cuts that will be offered. Known in Portuguese as a churrascaria, a Brazilian steakhouse is unique in the way it serves meals. Meat servers will rotate through the restaurant with large skewers filled with various types and cuts of charcoal-grilled uBRAZIL, Page 22

Head meat server, Michael Dicenzo, poses in gaucho attire with Ferdinand the bull inside Boiada Brazilian Steakhouse, which is scheduled to open in May. Two families are remodeling a former nightclub to launch their traditional Brazilian steakhouse, which will feature charcoal-grilled meat served from large skewers. (Courtesy Boiada Brazilian Steakhouse)

Tri-Cities Area Journal of Business • March 2019

BRAZIL, From page 21 meat and honey-glazed pineapple. Diners place a card on the end of their table indicating “green” as a request for more meat, or “red” if they are satisfied. Dallas said most people consume two pounds of meat, on average, during a Brazilian steakhouse meal. About a dozen skewer choices will be available at lunch with the full 17 options for dinner. These will include sirloin steak, beef tenderloin, chicken, pork, seafood, lamb and chicken hearts. The options don’t end there, as side dishes and salads will be offered in a custom-built station topped with a lifesized metal bull named Ferdinand, which was crafted by a Brazilian artist. Calling it a “salad festival,” there will

be both cold and hot, sweet and savory salads, along with traditional Brazilian side dishes like black beans and pork, stroganoff, deep-fried bananas and Brazilian cheese bread, all made by Adalberto’s wife, Graziella, and her sous chefs. The meal and sides include unlimited servings for a flat price. The owners are still finalizing their menu rates but expect to charge around $26 for lunch and $36 for dinner. There will be discounts for children under 12 and senior citizens. Traditional Brazilian appetizers and desserts will be available as a separate purchase, and Boiada will offer a full bar with traditional Brazilian drinks, including one served in a pineapple, and the national drink of Brazil, a caipir-

Real Estate & Construction inha, made with cachaça, sugar and lime. Non-alcoholic drinks will include Brazil’s most popular soft drink, Guarana, and seven Brazilian lemonades, which are made with lime, and served with bottomless refills, like the meat. The families expect to hire about 50 employees who will wear authentic south Brazilian attire, including meat servers dressed as a gaucho, known as a Brazilian cowboy. The 6,000-squarefoot restaurant can hold up to 182 people and will include a banquet room, and eventually outdoor seating as well as live music. Despite moving to the United States from Brazil decades ago, both families are passionate about introducing their heritage to the Tri-Cities.

“We want to bring the experience to the Tri-Cities from Brazil where people can come up and say, ‘Wow, this is amazing,’ because this business is everywhere in Brazil,” Dallas said. “We have about 650 million head of beef there, so we eat a lot of meat. We want people to leave here and say, ‘This thing was the best.’ ” The families signed a five-year lease and are investing more than $200,000 into the project, in what they hope is the first of more locations for Boiada. “I got a passion for this immediately. I think it’s because of the parents I have, and I just want to do this for the rest of my life,” Hisadora said. The restaurant is targeted to open in late May. Boiada Brazilian Steakhouse: 8418 W. Gage Blvd., Kennewick; Facebook.

uBUSINESS BRIEFS Annual spring breakfast raises money for 2 nonprofits

A fundraiser breakfast to support Safe Harbor Support Center and My Friends’ Place is planned March 28. The local nonprofits are committed to the prevention of child abuse and neglect by providing a safe and nurturing environment for children and teens when there are no alternatives. The annual Spring Breakfast is from 7:30 to 8:30 a.m. March 28 at Meadow Springs Country Club in Richland. This event will include a full, plated breakfast and a presentation from Executive Director Karen Kirk-Brockman. Additionally, guests will have an opportunity to learn more about programs from Safe Harbor, Parent for Parents, My Friends’ Place. For reservations to this free annual event or to become a table sponsor, go to safeharborsupportcenter.org or call 509783-5734.

WSU Tri-Cities connects professionals to students

Washington State University Tri-Cities is launching a new program geared toward supporting students in their future careers. Through the program, Partners in Career Development, professionals will be connected with students in their industry where they will have the opportunity to discuss real world career skills; experiences and credentials students should be seeking to be an ideal candidate; and future opportunities at their company and in the industry Partners also will be able to help students with résumés and cover letters, or help with interview prep. Employers and professionals will be able to dictate the time commitment they are willing to contribute and the type of mentorship opportunities they would like to offer. Volunteer commitments can range from a one time commitment, to once a week, to a few times a month or more. The program officially launches March 18. Employers and professionals are encouraged to call 509-372-7433 or email jordyn.creighton@wsu.edu.

REAL ESTATE & CONSTRUCTION

Tri-Cities Area Journal of Business • March 2019

Kennewick retirement community to undergo $1M in renovations

BY JESSICA HOEFER

for Tri-Cities Area Journal of Business

As long as Mother Nature cooperates, renovations will begin in April at Hawthorne Court, a senior living facility in Kennewick. The retirement community at 524 N. Ely St. is home to more than 100 residents, and has a mix of apartments for independent and assisted living. It’s managed by Leisure Care, which has retirement communities across the country. About a year ago, a team of managers, designers and construction specialists assessed the need to update the Kennewick facility’s common spaces and look for ways to improve operational efficiencies. “We asked, ‘Are our furniture pieces correct? Can we make our lights brighter?’ ” said Nick Trujillo, construction management specialist with One Eighty Twist, the umbrella company that oversees Leisure Care. “We go through every detail as much as possible to see where we need to update certain areas.” The most noticeable issue at Hawthorne Court was in the walk-through common areas, especially the lobbies and dining rooms, which sees a lot of wear and tear because of heavy traffic, Trujillo said. One Eighty Twist hired Oregon-based ReKreate Hospitality Services LLC for the $1 million remodeling project. The plan is to update the main entries and add a bistro. “We’re going to change it up with flooring transitions, and we’ll be updating the public restrooms right inside the entry. The pool area we’ll be touching up. A lot of paint, flooring and furniture in those spaces,” Trujillo said. “Our goal is to walk through the building and discuss what we would like to update. Then, we budget and allocate dollars to the areas that have the most positive impact.”

The common spaces are used for activities such as costume parties, dances and fitness classes as well as socializing. Hawthorne Court will add a bistro to its main lobby after industry feedback over the past several years has pointed to the benefits, said Moya Grubbs, general manager. “Residents can get a sandwich and have happy hour or coffee service. There will be chairs and tables and they can read the paper or watch the news. They don’t have to stay in their room, they can come out and be social with their community,” Grubbs said. One Eight Twist welcomed input from residents, but the design team has the final say when it comes to color selection for the remodel, said Trujillo, adding that the company’s design team works specifically in senior housing and hospitality to better understand the needs of retirement community clients. The general contractor is receiving proposals from subcontractors and construction is set to begin—pending the weather—this spring, with a completion date expected within eight to 10 weeks after work begins. Grubbs said residents will barely feel the impact of construction because Hawthorne Court was a standalone apartment complex before being bought by Lytle Enterprises a few decades ago. The unique design means the retirement community has two dining kitchens, two dining rooms and two lobbies. In addition, independent living residents also have access to kitchens in their apartments if they want to avoid the remodeling project altogether. “They can go shopping, buy groceries and cook at home so they don’t have to deal with the construction,” Grubbs said. Hawthorne Court will continue to offer a variety of food options for all residents to ensure they have access to the food

Kennewick’s Hawthorne Court plans $1 million in renovations to its common areas, such as dining rooms and lobbies, to better serve more than 100 residents. Common areas are used for eating, visiting, as well as social activities. (Courtesy Hawthorne Court)

service they’re accustomed to, the company said. And while the common living areas are undergoing a facelift, Trujillo said apartment updates haven’t been forgotten. They’re being improved too, just at a slower rate as not to displace residents. When tenants vacate apartments, Hawthorne Court updates cabinetry, fixtures and finishes, among other features. He said this will continue for at least a couple of years until all the apartments are refreshed. About 60 apartments at Hawthorne Court are used by assisted living residents. Grubbs said the studio apartment is 384 square feet, while the

one-bedroom is 524 square feet. Residents living independently can take advantage of the complex’s apartment space, Grubbs said. “Our two-bedrooms are almost 1,650 square feet, and our one-bedrooms are anywhere between 700 and 900 square feet,” she said. The retirement community welcomes seniors 62 and older, and the average age of residents is about 84 years. Hawthorne Court provides three meals a day and covers residents’ utilities bills. Phone and cable are not included. For information on activities, tenant availability or a tour, go to leisurecare. com/our-communities/hawthorne-court.

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Real Estate & Construction

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Tri-Cities Area Journal of Business • March 2019

REAL ESTATE & CONSTRUCTION

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project are Loren and Teri Sharp, Tri-City-based business owners and property developers for more than 45 years. The Sharps plan to lease the upscale space to professional office users, which will complement the neighboring businesses. Bruce Baker of N2K Design in Richland was the architect. Prospective tenants are asked to contact Scott Sautell of SVN Retter & Co. at 509-430-8986 for leasing information.

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Tri-Cities Area Journal of Business • March 2019

Real Estate & Construction

Boise-based trailer dealership rolling into Pasco this spring BY TRI-CITIES AREA JOURNAL OF BUSINESS STAFF

A Boise-based belt trailer manufacturer plans to open a sales and service center this spring in Pasco. Trinity Trailer Mfg. Inc. will offer new and used trailers at 1907 E. James St. in Pasco. Trinity plans to renovate the existing 8,800-square-foot building and property. The location also will be home to a parts and service center allowing customers to have their trailers serviced by the same company that builds them. Initially, there will be five to seven employees, with additional staff hired as the business grows. Trinity has specialized in building selfunloading belt trailers for more than 40 years, with many of those years spent selling trailers to drivers and haulers in Washington and the U.S. “The best service comes from meeting people where they are,” said Cameron Eisenman, president of Trinity. “We’re already supporting many customers in this region, and we wanted to offer them even more convenience.” For an agricultural hub like Pasco, the new sales and service center will mean more jobs, more business and more support to the city’s largest industries, according to a news release from the company. “We built our business on serving the needs of local farmers, drivers and haul-

uBUSINESS BRIEF Expert women explore burden of Hanford cleanup

In celebration of Women’s History Month, Northwest News Network’s Anna King will present her award-winning public radio project Daughters of Hanford at Washington State University Tri-Cities. Afterward, King will moderate a panel discussion with three of the experts. The event starts at 5 p.m. March 21 in WSU Tri-Cities’ East Auditorium. Daughters of Hanford is oral histories, portraits and personal archives of women who changed the World War II plutonium production site, and women who were changed by it. The evening’s panel discussion will feature three Daughters of Hanford: retired Washington State Ecology geologist Zelma Maine Jackson, Pacific Northwest National Laboratory’s Frannie Smith and retired head of Washington State Ecology’s Hanford program, Jane Hedges. Daughters of Hanford was created in partnership with WSU Tri-Cities, The Reach museum and Northwest Public Broadcasting. The college, WSU WiSTEM and the Women Chemist Committee of the American Chemical Society, Richland Section, are presenting the program together. Daughters of Hanford is an award-winning series, a museum installation and a radio documentary. Listen to the audio stories and explore the full project and photography at daughtersofhanford.org.

ers,” Eisenman said. “Opening our Pasco sales and service center will help us continue that legacy, bringing us even closer to all the people we serve across the Northwest.” The company originally designed its trailers to withstand the demands of the agricultural industry. Trinity Trailer Mfg. Inc. has been designing and building self-unloading belt trailers since 1975. The company engineered two kinds of frameless, stainless steel trailers to meet the demands of the agriculture, commodity hauling, mining and recycling industries. Postings for jobs at the Pasco center can be found at trinitytrailer.com.

Trinity Trailer Mfg. Inc. plans to renovate a building at 1907 E. James St. in Pasco to house a sales and service center. The Boise-based company builds and services self-unloading belt trailers typically used in the agriculture and commodity-hauling industry. (Courtesy Trinity Trailer)

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Tri-Cities Area Journal of Business • March 2019

uBUSINESS BRIEFS Health and Safety Expo set April 16-17 in Pasco

This year marks the 25th anniversary of the Health and Safety Expo. The annual event is from 7 a.m. to 7 p.m. April 16- 17 at the TRAC facility in Pasco. This year’s theme on transportation safety will include specialized displays, distracted driving and vehicle accident demonstrations, bicycle rodeos and free fitted helmets for children. The expo will feature a variety of booths, displays and demonstrations to promote a proper work-life balance, improve organizational safety culture, expand safety awareness, inspire inno-

vation and apply science to the topic of safety. There also will be breakout sessions on topics that include cyber education, the opioid crisis and proper use of car seats. Admission and parking are free. The Health and Safety Expo is supported by the Department of Energy, Hanford contractors and the Hanford unions. For more information, go to hanford.gov/page.cfm/ HealthSafetyExpo or find on Facebook.

Richland Rotary completes Howard Amon beach project

The Richland Rotary Club recently completed a yearlong project to improve a public beach area at Howard Amon Park.

REAL ESTATE & CONSTRUCTION The new Richland Rotary Beach provides access to the water along a section of the community park shoreline. The club collaborated with the city of Richland to plan and execute the stabilization of the shoreline to prevent further erosion of the beach area. The club’s legacy project marks the 70th anniversary of Richland Rotary, which was founded in 1949. Richland Rotarians in bright neon “Rotarian At Work” T-shirts gathered Jan. 29 with Richland City Manager Cindy Reents and Director of Parks and Public Facilities Joe Schiessl for a brief ceremony to unveil the beach reclamation project and sign. The basalt column sign, which features sand-blasted letters, was installed

near the Lee Boulevard dock to complement Richland Rotary’s Centennial Plaza gazebo project on the north end of Howard Amon Park. Rotary work crew volunteers included Roy Keck, Dick Richter, President Bob Tibbatts, Mike Sinclair, Jon Putz, Larry Lowry, Tim Lewis, Gary Scofield, Janet Griffin, Pat Hollick and Phil Lemley.

Public feedback requested on Hanford Lifecycle Report The U.S. Department of Energy Richland Operations Office and the Office of River Protection have released the 2019 Hanford Lifecycle Scope, Schedule and Cost Report, known as the Lifecycle Report. It reflects the cleanup work that must be completed under the Tri-Party Agreement and other environmental obligations. The report is available at https://go. usa.gov/xENz8. DOE is collecting written feedback on the report through April 15. For more information, go to the Hanford events calendar at hanford.gov.

Send us your business news info@tcjournal.biz

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Real Estate & Construction COMMERCIAL, From page 1 spaces have been filled and the manager at Ted Brown Music said the move by Chuck E. Cheese has most affected his walk-in customers. “It’s been a good location and easy to get to,” said Ted Brown Music manager Todd Peery. “But there hasn’t been a lot of pull for incidental foot traffic since Chuck E. Cheese left. You have to really want to be here to be here.” Peery estimated Ted Brown has been at its current Richland location since 2002, after originally opening nearby on Fowler Street in the mid-1980s, where Sherwin-Williams is now. The music store’s lease is up at the end of the year and Peery said the current plan is to move into a built-to-suit location on Canal Drive, near Wendy’s and Hobby Lobby. Still, Peery and the three other tenants were caught by surprise to hear the building was under contract. The plaza also houses World Relief Tri-Cities, Zain Medical Research and Pool Care Products. None of the other tenants wanted to comment about their future plans if the site is developed. Original development at Rivers Edge Plaza began in the late 1960s and the building has expanded over the years to its current square footage, and is appraised by Benton County at $5.3 million. “We owned the property for 10 to 12 years, and attempted to do what I think the buyers are now considering when purchasing this property. Over our years

of ownership, we had a few successes and a few failures and concluded recently the property was going to need a much more hands-on approach, and we were not the in the position to facilitate this effort, so it is time to sell. The current buyer has a reasonable due diligence and assuming they like what they see, will close fairly promptly afterwards,” said Troy Gessel, president of AGM Real Estate. A timeline wasn’t disclosed. A separate building in the parking lot at 2588 N. Columbia Center Blvd. once held a movie theater, nightclub and Pasta Mama’s, but has now been the location for New Vintage Church. Gessel said the church bought its building about a year ago and it is not part of the sale or potential redevelopment. AGM Real Estate also has listed for sale the Kennewick complex that holds Get Air Trampoline Park, Planet Fitness and Mid-Columbia Wine and Spirits. The property at 731 N. Columbia Center Blvd. is advertised for $10.2 million. It was purchased in 2007 by Columbia Summit LLC for just over $8 million. Columbia Summit shares a Bellevue street address with AGM Real Estate. Gessel said the majority of buyers interested in 2600 N. Columbia Center Blvd. were local. “Each has been evaluating a renovation to the existing structure to some larger development, as you would probably expect,” he said. “The current buyer is doing the same, I’m sure, but I don’t know what their specific plans are as of now.”

Tri-Cities Area Journal of Business • March 2019

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

Tri-Cities Area Journal of Business • March 2019

Community visioning project MyTri2030 begins to take shape BY LAURA KOSTAD

for Tri-Cities Area Journal of Business

Six key areas emerged when 4,500 TriCitians shared their priorities for the region’s future. The top focus areas — education, prosperity, inclusion, agriculture, thriving life and energy — were unveiled last month after nearly a year of working to better understand what citizens want to see develop in Tri-Cities over the next decade. Dubbed MyTri2030, the visioning project’s survey results were unveiled Feb. 27 during a Tri-City Regional Chamber of Commerce luncheon at the Pasco Red Lion Hotel and Convention Center. Paula Linnen, chair of the Regional Affairs Committee, said the MyTri2030 team noticed two central themes: immense pride in the region’s achievements over the past decade and a noticeable fever from community members and leaders to define new goals and opportunities for regional collaboration. “With a better understanding of our region’s strengths, challenges and desires, the MyTri2030 team is proud to present a set of six opportunity areas that will serve as a framework for the next phase of our journey. It’s a journey we will continue to inform and implement together,” Linnen said. Here’s a closer look at the six big opportunity areas: • Education: improving continuity between primary, secondary and higher education, providing more resources for students and encouraging them and their families to want to stay in the community. • Prosperity: cultivating and promoting career opportunities to link employer needs with talent already within the community, including youths newly entering the workforce. • Inclusion: drawing on the Tri-Cities’ uniquely diverse population to unify the community via common values such as these six opportunity areas to open the door to building more authentic connections between community members. • Agriculture: continuing to integrate the abundant agricultural resources that first established the region into the economic and social fabric of the region’s future and empower the growers who cultivate them. • Thriving life: overall enhancing the quality of life of citizens, which will

Hundreds of Tri-City community members and civic and business leaders attended the MyTri2030 Regional Vision Project’s big reveal. The group unveiled six opportunity areas to take action on by the end of this year: education, prosperity, inclusion, agriculture, thriving life and energy.

encourage them to want to remain a part of the Tri-City community and continue to contribute to it and help it grow. • Energy: capitalizing on the plethora of alternative energy sources available in the region and drawing on the flourishing technologic, scientific and higher education research communities to develop those sources to build a firm foundation for an evolving energy future. These opportunity areas were finalized after more than 100 hours of research, which included the review of successful community visioning exercises conducted in similar communities across the country, as well as past regional development reports, strategic plans and global and national trends.

More than 4,500 responses were reviewed from the bilingual, online survey launched last March. They were individually reviewed, analyzed and discussed. Following the survey period, one-onone interviews were conducted with about 30 community leaders by NewEdge Consulting, a Richland-based firm that has assisted in the project, as it has with Fortune 500 companies across the nation who have reinvented themselves by identifying specific opportunity areas to target for advancement. After that, organizers convened a twoday “big vision workshop” with more than 40 community stakeholders to specifically identify and hone the opportunity list. One big theme that seemed to underlie

the six areas was the desire to keep Tri-City youths in the community and attract more young people and families to the area by improving and fine-tuning existing amenities and infrastructure. As many of the community experts who spoke at the event noted, if people can’t find what they need and want in their current community, they will look for it elsewhere and eventually move on. Linnen said about a quarter of the survey respondents were youths, which emphasized the necessity of making this concern a consideration in all action plans. Rather than be intimidated by the task before them, the Regional Affairs Committee has embraced the challenge of helping set in motion what will shape Tri-Cities’ next 10 years and beyond. “I love a big, hairy audacious goal,” Linnen said. “I love something that is bold and compelling, that creates a little bit of tension, a little bit of angst. Something that is big. Something that is transformational. I think that it has motivated people around the world.” Mike Schwenk, former chair of the Three Rivers Community Roundtable, added that there are a lot of things that have occurred in our community because we chose for them to occur. Seeming to reinforce the words of these community leaders, the event included a performance by Tri-City Youth Choir’s Forte! group. They sang Pink’s “A Million Dreams,” from “The Greatest Showman” movie. uMYTRI2030, Page 32

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Tri-Cities Area Journal of Business • March 2019

uBUSINESS BRIEFS Tri-Cities ranks No. 3 best city for electricians

The Tri-Cities was ranked the No. 3 best city for electricians nationwide, according to a study by Advisor Smith. The business insurance advisor company’s study cites Pacific Northwest National Laboratory and cold-storage and nuclear power plant facilities for creating plentiful jobs for electricians. “This area has more electricians than the average city in our study and has a cost of living that is about average,” the report said. The average electrician salary in the Tri-City area was $82,000, which was the third-highest salary in the study among cities in the U.S.

Topping the list of best cities for electricians was Decatur, Illinois, followed by St. Joseph, Missouri.  The study analyzed cities based on electrician salaries, cost of living and the availability of jobs for electricians.

Nuclear industry holding millennial caucus April 4

Researchers and leaders — especially those early in their careers, including college students — from the region’s nuclear industry are invited to learn, network and join the discussion about “Nuclear Energy and its Contribution to Future Sustainability.” The Millennial Nuclear Caucus on April 4 is presented by the U.S. Department of Energy’s Office of Nuclear Energy, in partnership with Pacific

Northwest National Laboratory and the region’s nuclear industry, including Bechtel, Flibe Energy and NuScale Power. Topics represent the full spectrum of the nuclear field: supporting the existing fleet, designing small modular and advanced reactors, managing spent fuel and advocating for a thriving nuclear future. The event expo opens at 12:30 p.m. with flash talks, industry representatives, career advice, demonstrations, research posters and tours (space is limited, register in advance). The 4 p.m. keynote, “Rebalancing The HumanityEnvironment Equation Through Technology,” by Kemal Pasamehmetoglu, executive director of the Versatile Test Reactor at Idaho National Laboratory. His talk is followed

by a panel discussion and a networking reception. Attendance is free but registration is required at pnnl.cvent.com/ MillennialNuclearCaucus2019. The event is at PNNL’s Discovery Hall, 650 Horn Rapids Road, Richland. For more information, email Kelly.McIntosh@pnnl.gov or call 509-375-3880.

CITC open house set April 11 at new Pasco training center

The new Construction Industry Training Council of Washington training center in Pasco is celebrating its opening with an open house from 3:30 to 5:30 p.m. April 11 at 5804 Road 90, Suite K in Pasco. The center opened its doors Nov. 2 to more than 70 students who are taking part in the four-year “electrical: commercial wireman” cohort. It is the fifth of CITC’s training facilities in Washington, joining others in Marysville, Vancouver, Spokane and Bellevue. The 9,600-square-foot building, designed by Rhodes Architecture + Light of Seattle, and built by Elite Construction & Development of Pasco, includes three laboratories – two dedicated to the electrical trades and one to the sheet metal apprenticeship – and four classrooms. Absolute Power, Inc. of Pasco was the job’s electrical contractor and Jacob & Rhodes of Kennewick performed mechanical work on the project. The “meet and greet” open house includes facility tours and light refreshments. To RSVP, contact Ken Hill, CITC’s Eastern Washington apprenticeship and facility manager, at 509-919-2029 or ken. hill@citcwa.org.

MYTRI2030, From page 31 The next step for MyTri2030? “The next phase is getting to a greater level of specificity,” Linnen said. To get there, the MyTri2030 project has reopened its survey, this time seeking help from Tri-Citians to identify local people, organizations and projects currently underway that fall under the six key opportunity areas. “It is critical that we get the right people in the room to decide, then prioritize specific initiatives for the future,” said Stephanie Swanberg, government and regional affairs director for the Tri-City Regional Chamber of Commerce. The online survey can be completed at mytri2030.com/survey and will be open for about a month and a half. Additionally, those who couldn’t make it to the luncheon may attend one of three MyTri2030 public information sessions in March. Here’s the schedule: • March 16: 11 a.m. to noon at MidColumbia Libraries’ Pasco branch. • March 21: 7 to 8 p.m. at Mid-Columbia Libraries’ Keewaydin branch. • March 28: 7 to 8 p.m. at the Richland Public Library. By the end of 2019, the Regional Affairs Committee aims to have a final vision plan fully outlined and ready to be share with the public. MyTri2030 Regional Vision Project: mytri2030.com; Facebook.

Tri-Cities Area Journal of Business • March 2019

BUSINESS TO BUSINESS

Association works to encourage hiring of small, local businesses BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

The Tri-Cities Local Business Association is growing its membership by focusing on building a strong relationship with Hanford contractors, and keeping its lens on the future of the site, rather than its past. Most members of the nonprofit are second-tier subcontractors focused on the cleanup of the U.S. Department of Energy site in Richland. “Many of our members are trying to diversify, and that’s what we’re trying to help substantiate, given the experience of the work activities on site, to leverage that expertise in other areas, outside of DOE and Hanford,” said Steve Anderson, president of TCLBA. The nonprofit was founded in 2003 with the goal of encouraging DOE and its prime contractors to use smaller Tri-City-based businesses for portions of larger contracts. “The idea was to help ensure that the prime contracting that came out had language to use small and local businesses, leveraging the talent we have in the TriCities versus out of town,” Anderson said. “We’ve got a commitment to the companies here, to our community, since we live

Members of the Tri-Cities Local Business Association hold monthly meetings, which includes rotating speakers and the opportunity to network with other small-business owners and employees. (Courtesy TCLBA)

here and work here.” TCLBA member and president of Meier Architecture-Engineering Paul Giever added, “Local business owners really drive the economy and will stay here long after the ‘primes’ (prime contractors) leave.” The organization includes about three dozen large and small businesses, as well as unions. Members include Babcock Services, Lampson International and the International Brotherhood of Electrical

Workers (IBEW) Local Union 112. “There are portions of these contracts that can be given to smaller businesses, something of a civil engineering nature or environmental effort, whereby monitoring wells, so that contracts could go out specifically to small businesses and give them greater credibility for what they do, that could be taken elsewhere,” Anderson said. The TCLBA said it has a personal interest in seeing the DOE and Hanford suc-

ceed, including the transition to a new, long-term mission as cleanup of the former nuclear site winds down. This includes support for the Department of Energy’s effort to reclassifying high-level waste. “We think that’s an important element for many reasons, including excessive costs for site cleanup,” Anderson said. “If they would go ahead and classify it based on the constituents, as opposed to the reason or the process, which was, in the past, why it was considered high-level, it would make it a lot easier for us to clean up and dispose of in a more timely fashion and, we think, accelerate cleanup.” Members of the TCLBA meet monthly to listen to a speaker and have the opportunity for networking, which could help its members develop partnerships for future collaborative work. This is the portion of the membership that Giever sees as the most beneficial. “You need to go to the meetings to get the benefit. You can see what opportunities are coming out, network with other businesses, and see how your skills can be combined with others to make a run at proposals,” Giever said. “This is an association of businesses that all have the need to grow their own area of uTCLBA, Page 35

Tri-Cities Area Journal of Business • March 2019

CONTRACTING, From page 1 Kerekffy told lawmakers she does not make money off the stylists she hires to work in her salon. She told lawmakers in January that if the definition of an independent contractor changed, “I (would) have to either close my salon or put those ladies out on the street,” she said in a public hearing. “That is not fair, and I think whoever brings these bills forward and is sponsoring these bills needs to (look) at the bigger picture. I live in a small community. I do not have the resources or the means to go work for another huge corporation or company,” she said. Treutle pointed to a much-needed truth in the debate over employment classification this year at the Legislature. “We simply need clarification on this,”

she told House members in January. Ultimately, the strong turnout from salon owners on several measures around booth rentals and Rep. Marcus Riccelli employee classification killed all measures except House Bill 1515, which changed drastically from when Rep. Marcus Riccelli, D-Spokane, first introduced it. Initially designed to change the definition or test for what makes an independent contractor truly independent, Riccelli amended the measure to create a working group to study the issue instead of changing the definition.

B2B “I heard loud and clear that the bill that was introduced was not workable, and I think that’s what’s great about the process,” he said. “I think we need more investigation and more dialogue around this issue, which is where we pivoted to this other language.” The bill had to clear the Rules Committee to the House floor by March 13 to continue through the legislative process this year. Results from this committee meeting weren’t available at press time. Regardless of what happens to the bill, Taylor said she plans to keep watch on what’s happening at the state level. “It’s great our voices are heard and people are paying attention but we need to stay vigilant,” she said. “I don’t read proposed legislation every day. They tried to slip it in so quietly and make it intimidat-

ing to read so you don’t even know what it means. I’ve heard a lot of people say they want to keep pushing this in some way, shape or form and to do this to small businesses — they are just creating havoc. I don’t know what the point is.” To keep the conversation going, Taylor’s husband, Sean Taylor, designed a T-shirt for hairstylists featuring the word “unity” spelled out with hairdressers’ tools on the front and this phrase on the back: “Hope always involves rights. Standing together yields lasting, impactful strong team support.” The first letter in each of the words spells out, “hairstylists.” Sean owns his own small business, Art by Sean Taylor, which offers custom art design work. Mutant Printing & Promotions of Kennewick printed the shirts. Tina said 65 people pre-ordered one and she hopes more stylists across the state buy one so they can serve as “walking billboards” about the independent contractor issues. Advocates who favor the legislation, including the Washington State Labor Council, say the legislation will not affect stylists or many other sectors. Lawyers who spoke during the public hearing on House Bill 1515 in January said that independent contractors currently under state law are not protected by worker’s compensation, therefore having to spend their own money or at times the state’s money (through Medicaid) if they are injured on the job. Riccelli said that House Bill 1515 would have leveled the playing field for businesses that are currently misclassifying their employees with those that are not. “I absolutely think that there are some issues where it’s unclear. I also think there are some areas where people are knowingly not following the laws (by) treating folks as independent contractors, when they should be treated as employees, therefore not paying them benefits, and for me it’s all about an issue of control,” Riccelli said. “So, if you’re telling someone where to be, when to be there, what to wear potentially, maybe what products to use, then they don’t have control of their own schedule.” Riccelli said particularly in construction and custodial industries this practice can be seen, if construction contractors are consistently told where to be and when to be there or when custodial workers are told they must buy certain cleaning products to do their work. On the other hand, business organizations are concerned about how changing the independent contractor “test” in state law will impact small businesses in the state. Bob Battles, the government affairs director at the Association of Washington Business, spoke against the bill in January, saying it would all but eliminate independent contracting in the state. “It destroys the process, and while it may be an ‘ABC’ test, it’s so onerous, the results are (that) very few are going to do it,” he said in the public hearing on House Bill 1515. Ultimately, AWB believes that if measures like House Bill 1515 become law, the tax burden shifts will hurt entrepreneurship and small businesses in the state. “Passing such laws would mean higher taxes and business costs for employers, uCONTRACTING, Page 35

Tri-Cities Area Journal of Business • March 2019

B2B CONTRACTING, From page 34 less flexibility for independent contractors, fewer options for people who want to work for themselves and possibly fewer jobs overall since many employers could not afford to hire contractors as new employees,” Kris Johnson, president of AWB, wrote in his monthly column. As stylists like Kerekffy and Treutle pointed out in January, depending on how the definition of independent contractor changes, their salons (and their livelihoods) could be at risk for closure. Ultimately, there are a lot of unknowns about independent contracting in the state. Last year, the state Legislature passed Senate Bill 6032, commissioning a study of independent contracting through the state’s Department of Commerce. That study includes surveys, which will begin this month, and the study should be completed by June. Ideally, this study will help answer some of the fundamental questions about how independent contracting operates in the state — but it will not suggest policies. When advocates and lawmakers were asked about how many independent contractors the proposed bills would impact, no numbers were given — largely because they are not readily known. Much like it was not clear during public hearings and debate who exactly will be affected or carved out of such a law, Washington is working to learn currently what the state of independent contracting is right now. Sen. Rebecca Saldaña, D-Seattle, who introduced matching legislation to Riccelli’s bill on the Senate side this year, said the issue for her is far from moot for

the coming years. Saldaña said that for her, “worker classification” means thinking of workers who historically have not been in positions of political power, including women and immigrants or newer Americans. “I do believe our laws in Washington state favor larger businesses, favor businesses where there is more historically work done by men or industries that are done by men, so that is something that as a legislator I will continue to dig in on,” she said. Riccelli said with the changing economy, and more American workers piecemealing together wages, who is and who is not an independent contractor will continue to be an important issue for lawmakers to address. “We have more and more people who are doing multiple jobs, and that’s great, we want that and need to have room for that. We just want to make sure that those who are truly being treated as employees are receiving the benefits and that the companies are doing the right thing, and we’re not creating an unlevel playing field for our workers or our businesses,” he said. If House Bill 1515 becomes law, it will create a working group composed of two senators, two representatives and five members appointed by the state Labor Council (which supports the legislation) and the Association of Washington Businesses (which does not). Riccelli said he expects the two groups to pick stakeholders from different industries as representatives on the task force, if it comes to fruition.

TCLBA, From page 33 expertise, but become a stronger voice as a community of businesses to help negotiate language in contracts or requests to hear from some of the prime contractors as to what type of workload may be coming and how they see the timing and sequencing of those activities so that support industries are aligned with those needs and are recognized with that expertise,” Anderson said. The TCLBA has provided a forum for developing programs that enhance the overall economy of the region. Meetings also give members the opportunity to hear from local, regional and federal politicians on matters related to work in the Tri-Cities. State lawmakers and U.S. Congressman Dan Newhouse have spoken to the group in the past, as well as DOE leaders.

The TCLBA has just a few people on the payroll, including an executive director. Membership dues are scaled based on the size of the business, ranging from $50 a month for organizations with fewer than five employees, to $200 a month for those with 26 employees or more. Anderson said the nonprofit has generally hovered around 30 to 40 members, but there’s room for growth. “The whole idea is to help breed sustainable support for our companies and our community as Hanford slowly winds down,” Anderson said. “The idea is that we are cleaning things up, things are advancing. We think there’s definite value in what we bring and in bringing people together.” Tri-Cities Local Business Association: tricitieslba.com; Facebook.

Tri-Cities Area Journal of Business â&#x20AC;˘ March 2019

B2B

Tri-Cities Area Journal of Business • March 2019

B2B

Best way to shine at a trade show? Provide an experience, make eye contact BY ELSIE PUIG

for Tri-Cities Area Journal of Business

When it comes to standing out in a crowded marketplace — online or otherwise — strategy is important. For companies, B2B trade shows and expos are no different. (B2B is short for business-tobusiness.) In fact, pop-up banners and black tablecloths are not cutting it anymore. “There are lot of opportunities to reach your audience, but what’s most important is that you need something catchy, a giveaway or a game, you can’t just have information or a flag, you need something to draw them in,” said Heather Breymeyer, director of sales at the Three River Convention Center in Kennewick. Josh Kandle, director of marketing at Cougar Digital Marketing & Design, agreed: “When you walk in to a trade show, you are there to see something, do something or take something. You need to provide all those experiences at your booth. You want some kind of engagement, which creates muscle memory and elicits an action.” Cougar Digital recently launched Crimson Vine Marketing, a marketing agency specializing in wineries and winerelated businesses, at the Washington Winegrowers Association annual convention and trade show in February at the Three Rivers Convention Center. The West Richland-based company had a two-pronged approach: give away 20 wine barrel staves with custom hand lettering to those who agreed to share an anecdote — aptly called “Washington Wine Stories” — which were recorded and shared across social media sites. “It allowed them to have an experience at our booth, while in turn we’re providing something of value to our booth visitors — visibility,” Kandle said. Kandle said trade shows provide also a great opportunity to generate content like

videos, online reviews and social media engagements. Games also offer an interactive component to help potential customers engage in a way that feels natural. They also can be great conversation starters. “From guessing how much of something is in a container, to putt putt golf, to Wheel of Fortune, you can try different things to make your visitors engage with and have a positive experience,” Breymeyer said. Brandon Lange, recreation, facility & marketing supervisor at the city of Kennewick, said the city’s Parks and Recreation Department’s s’mores-making station at the January Tri-City Family Expo was popular with children and their parents. Promotional items and expo swag are important, but they have to be unique and useful to your audience — pens and mousepads won’t cut it anymore, Breymeyer said. But how do you get people to know where you are in a crowded show floor? Social media campaigns work, but Cougar Digital took it a step further by using geofencing to serve up ads using the Google Display Network and Facebook to people around the convention center. Breymeyer said business’ behavior in the booth is just as important as how nice the booth looks. It’s important to always maintain eye contact, she said, and suggests putting down the phone. “Make eye contact, stand in front of your booth, and walk out toward people in the aisle, be inviting,” she said. “If you don’t look at them, they’re going walk on by.” Lange said the post-show follow-up is just as important as what happens during the trade show and sometimes it pays to be craftier than email. “There is a change in marketing. More than ever, people don’t want to be sold to, they want to be the ones making the deci-

Rick’s Custom Fencing & Decking in Kennewick earned an award for its exhibit display at February’s Home & Garden Show. (Courtesy Home Builders Association of Tri-Cities)

sion,” Lange said. “An email is easy but impersonal. A personal follow-up is going to be better because it shows you’ve taken the time. If you’re trying to drive revenue, a call would be better, especially if it’s a big sale.” Lange suggested asking leads and booth visitors to sign up for the email list as a way to receive information, so they feel they have control. But, there’s an even bigger shift happening when it comes to acquiring new business after a trade show. “There’s a new tactic we’re seeing that if you want to work with someone or get somebody’s business, follow them on social media and engage with them,” Lange said. Thomas Dickinson, store manager for Rick’s Custom Fencing & Decking in

Kennewick, a winner at the Home & Garden Show, advises against trying to display everything at your booth. Instead, he recommends creating a simple booth that displays a vision for what your ideal customer wants. The strategy worked: the company’s booth won an award for best multi-space arena exhibit at the event. “Last year, we were trying to show and display everything we did,” he said. “This year, we built a cedar deck pergola trying to make it easier for them to envision what a project would look like at their home.” And it was a hit. It didn’t hurt that they also were giving away a Traeger, he said. But he agreed, follow up is important. “Making sure that everybody that you talk to with is given a proper follow-up,” he said. “Everybody was called by Monday.”

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Tri-Cities Area Journal of Business • March 2019

B2B

Employee or independent contractor? Businesses ought to do their homework BY BEAU RUFF

for Tri-Cities Area Journal of Business

An individual or a business can engage (i.e., contract) with another as an employee or an independent contractor. The business owner is usually better served if he or she can categorize a worker as an independent contractor rather than an employee. In fact, most business owners would probably prefer all independent contractors rather than employees. If properly categorized as an independent contractor, the business owner need not fear liability for the contractor or the contractor’s work. The business owner need not pay employment taxes or with-

hold federal income taxes. The business owner need not pay unemployment taxes or into the Labor and Industries insurance funds. But, the decision to treat new or existing hires as employees or independent contractors can have serious consequences for your business. And, the misapplication of the classification (as either an independent contractor or employee) can lead to liability for the business and the business owner. Though the business owner may prefer the independent contractor relationship, the law requires an analysis of the relationship and the precise application of the status. What is an employee? An employee is

an “agent employed by (an employer) to perform service in his affairs whose physical conduct in the performance of the service is controlled Beau Ruff or is subject to Cornerstone the right to conWealth Strategies trol by the (employer).” Kamla v. Space Needle Corporation, (2002). Employers are liable for the harm caused by employees through the theory of respondeat superior, a Latin phrase

meaning loosely, “let the master answer for his servant.” This legal action allows an injured party to directly sue the business for all harm caused by the employee as if the business itself caused the harm. Typical employees include restaurant workers, flight attendants, paralegals, factory workers and teachers. All employees receive income reported on the IRS form W-2. What is an independent contractor? An independent contractor is a worker who “contracts with another to do something for him but who is not controlled by the other nor subject to the other’s right to control with respect to his physical conduct in the performance of the undertaking.” The readily apparent examples of an independent contactor include the plumber you call to fix your sink, the lawn care provider that tends to your grass, and the driver you hire to take you to the airport. For each example, the person hiring the independent contractor expects to rely upon the skill and judgement of the contractor to complete the task. Further, the hiring individual does not dictate many things about the engagement, like: how the task will be performed, who will perform the task, the clothing or appearance of the worker, the time it will take to perform the task, the tools necessary for the task, etc. More precisely, the employer hiring the person inspects only the results of the work and not the means whereby it is to be accomplished. As the hiring individual has no control, the law provides that the hiring individual bears no responsibility (read: liability) for any harm caused by the independent contractor. For example, if I hire a lawn care service and the lawn care truck causes an accident while getting materials for my lawn, I am not liable to the third party that was injured. An independent contractor receives income reported on the IRS form 1099. The question of status hinges on whether the hiring party has control. More precisely, the question is whether the hiring party retains the “right to direct the manner in which the work is performed, not simply whether there is an actual exercise of control over the manner in which the work is performed.” The IRS looks to evidence of the degree of control by looking into three categories: behavioral (does the hiring person have the right to control the manner in which the worker completes the job); financial (are the business aspects of the job controlled by the hiring person); and the type of relationship (written contracts, length of relationship, and benefits). A host of issues can beset a business owner that misclassifies the worker. On the legal liability side, the employer would be liable for acts of the employee, but if the employer treated the employee as an independent contractor, the business owner may not have appropriate insurance coverage but still the full liability. The employer also may be held responsible for back taxes (for both federal withholding and employment taxes that should have been paid). A business owner may also run afoul of sick time claims uRUFF, Page 39

Tri-Cities Area Journal of Business • March 2019 uELECTIONS • The National Association of Conservation Districts elected its 2019 leadership team, including Richland ranch manager Michael Crowder as first vice president. Crowder has an extensive backMichael Crowder ground in conservation, agriculture and service, and has taught westland restoration, wildlife science and ecology at Washington State University Tri-Cities. He manages farm operations in Indiana and Washington, including Barker Ranch in West Richland. He has served on the Benton Conversation District for many years. The association’s board of directors selects conservation policy priorities, which are used to develop and RUFF, From page 38 and overtime claims when an independent contractor is appropriately deemed to be an employee. An independent contractor properly classified as an employee may not qualify for labor and industry insurance and may then also hold the employer liable for the damages incurred. And, on a practical level, the misapplication can create conflicting employment expectations inherent in the separate expecta-

review environmental and natural resources legislation and to secure federal funding for natural resources conservation programs. • Chris Meiers, Washington State University TriCities vice chancellor of student affairs, was recently elected as the regional director for the Northwest region of the National Chris Meiers Association of Student Personnel Administrators, or NASPA. He will lead region 5, which encompasses Alaska, British Columbia, Montana, Oregon, Washington, Alberta, Idaho and Nevada. His duties will consist of representing the region on the national board and leading the regional board of directors in professional activities and services. He has been involved with NASPA tions of an independent contractor and employee. Talk to your accountant and attorney to ensure you are properly classifying your employees. Attorney Beau Ruff works for Cornerstone Wealth Strategies, a fullservice independent investment management and financial planning firm in Kennewick.

for more than 20 years in various regional and national appointments.

uCERTIFICATION • Elisabeth Holt, member development director at the Tri-City Regional Chamber of Commerce, was among the 30 chamber executives to graduate from Academy, a professional development program preElisabeth Holt sented by the Western Association of Chamber Executives, the largest state or regional association of

chamber of commerce executives in the United States. Academy is an interactive three-year training program on chamber management essentials designed for today’s chamber executives and staff professionals.

uMILITARY • Navy Fire Controlman 3rd Class Trevor Michner of Prosser is serving aboard the guided-missile destroyer USS Spruance. He participated in a replenishment-at-sea with the dry cargo and ammunition ship USNS Matthew Perry in the Pacific Ocean on Feb. 6. The Spruance is deployed to the U.S. 7th Fleet area of operations in support of security and stability in the Indo-Pacific region.

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Tri-Cities Area Journal of Business • March 2019

Business Profile

Small business keeps Tri-City carpets clean for 40 years BY JESSICA HOEFER

for Tri-Cities Area Journal of Business

Guarantee System Carpet Cleaning & Dye Co. is celebrating 40 years of serving the Tri-Cities. Owners Garry and Tracie Lamberson said though they moved to Kennewick before the economic downturn of the 1980s, phones were ringing off the hook right after opening. “Business was good from the start,” Tracie said. Before moving to Eastern Washington, Tracie and her husband were struggling to make ends meet in Texas, where they owned a Guarantee System Carpet Cleaning & Dye Co. franchise with a family member. Garry’s brother owned a similar carpet cleaning franchise in Spokane. After driving through the Tri-Cities on the way back to his hometown, he called Garry. “He thought this would be a good place for a franchise and said it looked like it was booming. Of course, that was when Hanford starting laying off,” Garry chuckled. But the layoffs didn’t affect their business when they sold their Texas business and moved to the area to start their own franchise in February 1979. At first, they did mostly residential work: upholstery cleaning, color corrections on carpets with stains or discolorations, as well as general carpet cleaning and dying carpets different colors. “If you had a beige carpet and couldn’t

keep it clean, we’d color it brown,” Garry said. Today, most of their work is carpet cleaning and repair. The couple’s son, Nash, also has joined the family business. He noted that because carpet manufacturers have changed up the fibers and the stain blockers, carpets don’t respond to dye the way they used to. The company still does a lot of red stain removal from carpets, but much of its work has shifted from residential to commercial. Today, nearly 60 percent of its clients are commercial properties. “(We service) a lot of Hanford buildings and medical buildings,” Tracie said. “Anymore, environmentally, you’ve got to keep your buildings clean, healthy and safe.” About seven years ago, Guarantee System Carpet Cleaning & Dye Co. added tile cleaning to its repertoire. “It’s mostly ceramic tile,” Tracie said. “We don’t really mess with natural stone,” Nash said. “Porcelain and ceramic we can (work on). The chemistry is a lot different.” Most of the time, Nash said the product they use depends on the type of carpet they’re working on and if odors need to be removed as well. They work with a wide network of cleaning distributors. Carpets should be cleaned on average about every 12 month to 18 months, the owners said. If you have pets and children, six months should be deducted from the timeline. “Clean it before it gets dirty,” Tracie

Nash, from left, Garry and Tracie Lamberson are celebrating 40 years of serving the Tri-Cities with their carpet cleaning business Guarantee System Carpet Cleaning & Dye Co. Garry and Tracie started the company in 1979 and now work with their son, Nash.

said. “The dirt breaks down the carpet fibers.” Springtime is one of the company’s busiest times of year for residential work as people look to prepare their homes to sell. Because Guarantee System Carpet Cleaning & Dye Co. doesn’t do full restoration work, customers with fire, smoke and mold damage are referred to Northwest Restoration of Richland, the owners said, adding that it’s a great business-to-business relationship. “They also call us to do a lot of their leather, fabric cleaning and carpet clean-

ing,” she said. While the Lambersons originally had to buy into the company when they started it in the ’70s, the franchise dissolved in 1986, eliminating the fees associated with it. The couple decided to keep the company name but have no plans to add more branches. However, they have considered adding a shop next to their home and would like to have a rug cleaning plant someday. “We have a warehouse, but we don’t have our office there,” said Tracie, explaining that they operate their business out of their home and their warehouse is south of Deschutes Avenue in the Kennewick industrial area. “It holds the trucks and cleaning equipment.” Customers can either call the company or visit their website to request a free estimate. Cost is by the foot, but price varies depending on the type of carpet, if a customer needs pet treatment, as well as the frequency of cleaning required. Along with their son, the owners have a full-time technician to help meet customers’ needs. For especially large jobs, extra help is hired — typically family members. Residential and commercial work primarily takes place in the Tri-Cities, with an occasional job in Connell, Walla Walla or Yakima. The Lamberson family said they are thrilled to have served the community for 40 years and plan to celebrate with giveaways and drawings through the company’s Facebook page. They also said they plan to retire in the future, allowing for Nash to carry on as the owner. Guarantee System Carpet Cleaning & Dye Co.: guaranteecarpetcleaningtricities. com; 509-735-7400; Facebook.

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Tri-Cities Area Journal of Business • March 2019

Business Profile

Franchise owner plans to open more CBD stores in Tri-Cities BY JEFF MORROW

for Tri-Cities Area Journal of Business

If you let him, Donnie Lewis will talk your ears off about hemp and the virtues of CBD oil. He isn’t alone in his enthusiasm. Many people are turning to CBD to help with a variety of ailments, ranging from lack of sleep, anxiety and depression to pain relief. That’s why Lewis opened a CBD American Shaman franchise store in October at 6821 W. Clearwater Ave., Suite A, in Kennewick. “On a scale of 1 to 10 (10 being most successful), it’s a 10,” Lewis said. “I still pinch myself every day.” CBD stands for cannabidiol, an active ingredient of the cannabis plant. Yes, that controversial plant. The one that produces marijuana. But most CBD comes from the hemp plant, a relative of the marijuana plant. And while a marijuana plant has a higher percentage of THC, the ingredient that provides a high, CBD from the hemp plant has less than 1 percent of THC. The health benefits of CBD and marijuana have long been controversial. CBD may relieve pain from multiple sclerosis and rheumatoid arthritis; relieve anxiety, depression and cancer-related side effects; reduce acne; provide neuroprotective properties; and benefit heart health, according to Healthline.com. But the website also cautions against

Franchise owner Donnie Lewis said he plans to open three CBD American Shaman stores in the Tri-Cities within the next six months. His Kennewick store opened in October.

possible side effects, including tiredness, diarrhea and changes in appetite. According to the Harvard Medical Research website, CBD shouldn’t take the place of diagnosis, treatment, cure or prevention of any disease. Lewis will be the first to say that CBD should complement traditional medications. “CBD deals with the inflammation in our bodies,” he said. “People are starting to realize that CBD oil can be used right along with their pharmaceuticals, and it makes the medication more effective with the body. And maybe then people can go to their doctor and say, ‘Can maybe we get rid

of the medications that work the least?’ ” This isn’t Lewis’ first foray into CBD American Shaman, which opened in 2014 in the Midwest. “I’ve been doing this close to two years now,” Lewis said. “I was involved in another CBD American Shaman store in Oklahoma. Me and my buddies started the first store in Tulsa in 2017. In Tulsa, 90 days after we opened, we did $92,000 of business in a month.” CBD is becoming big business around the country. The CBD American Shaman has 130 franchise stores around the country, according to its website.

“But there are going to be over 300 stores, with many of them getting their paperwork completed, around the country soon,” Lewis said. The cost to open a franchise ranges from $25,000 to $45,000, depending upon the market area, according to the American Shaman website. When the U.S. Farm Bill passed in December, it ensured that any cannabinoid derived from hemp will be legal, if the hemp is produced in a manner consistent with the Farm Bill, associated federal regulations, state regulations, and by a licensed grower, according to The Brookings Institution, a nonprofit public policy organization. The CBD market is expected to grow to more than $22 billion by 2022, according to The Brightfield group, a cannabis industry analyst group. Lewis moved last August from Oklahoma to the Tri-Cities to be near his mother. But he also has plans to expand the franchise. “Within six months, there will be three stores in the Tri-Cities,” he said. “One in each city.” He said he has more than 20 different products in his store. They vary from water solubles to creams, to candies and popcorn. There are even pet products to ease cat or dog anxieties. uCBD, Page 42

Tri-Cities Area Journal of Business • March 2019

uPROMOTIONS • Kennewick’s Focal Point Marketing & Multimedia has promoted Alma Carrillo from account executive to media buyer. She is a Alma Carrillo Columbia Basin College graduate. • Jodi Henderson of Benton PUD has been promoted to manager of communications and governmental relations. Henderson joined Benton PUD in 2010 and has been a part of the communication and government relations team for seven years. She graduated from Western

Washington State University with a degree in political science and participated in Leadership Tri-Cities Class 21. She replaces Karen Miller, who retired after 20 years with the PUD on Feb. 28. Jenny Sparks of Benton PUD has been promoted to manager of key accounts and Prosser customer service. Sparks was originally hired as a marketing specialist in 2005 and has held several positions, including business analyst of customer programs and manager of customer service at the Prosser branch. She completed the American Public Power Association Key Accounts Certification Program in 2014. She is a graduate of Central Washington University. • Nicole Anderson will be the next principal of River’s Edge High School in Richland. Anderson, who is an assistant

principal at Richland High School, was one of several candidates considered for the role. Anderson taught at Richland High for seven years Nicole Anderson before becoming the assistant principal at Christ the King School in 2007. She eventually became Christ the King’s principal before returning to Richland High as an administrator in 2014. She earned a bachelor’s degree in education from Eastern Washington University and a master’s degree in educational leadership from Washington State University. Her administrative certification is from Seattle

Pacific University. She will replace Principal Dan Chubb who will retire at the end of the 2018-19 school year.

uAPPOINTMENTS • Dennis Gisi of John L. Scott Real Estate has been appointed to serve on two committees of the Washington State Association of Realtors: the Finance Committee and Legislative Steering Committee. Both are two-year terms. Gisi is a Dennis Gisi broker and coowner of John L. Scott Real Estate in the Columbia Basin region with Washington offices in Pasco and Walla Walla, and Oregon offices in Milton-Freewater and Hermiston. • Urszula Kobiesa, an independent health insurance agent in the TriCities, has been selected by UnitedHealthcare to serve a twoyear term on the AARP Services Inc. Agent Advisory Council, a forum Urszula Kobiesa established to gather information to help enhance the products and services that benefit AARP members. Kobiesa is one of 12 health insurance agents nationwide selected to serve on this volunteer council. She was selected for her commitment to serving AARP members and knowledge of Medicare and the Tri-City community. CBD, From page 41 “Our top sellers are the water solubles and the anti-inflammatory creams,” Lewis said. And on the company’s website, customers can find lab reports on each product. “In another month, it’ll be 35 products here,” Lewis said. “I’d like to eventually bring in hemp clothing. As we see more and more people come along, you’ll see a lot more than CBD.” Lewis said he also feels the need to educate people about hemp. “In Oklahoma, people know the difference between hemp and marijuana,” he said. “But in Washington, a lot of people believe hemp and marijuana are no different.” Lewis says he’s on a mission, and that’s why he came to the Tri-Cities. “I had three goals in coming here,” he said. “No. 1, be close to my mom. Two, get the agriculture side of the business going. And three, get the industry side going.” The agricultural component involves encouraging farmers to grow hemp. “In this part of Washington, we never thought at one time it would be such a Mecca for hops,” Lewis said. “Or how wine has been produced here. Hemp could be the same exact thing.” CBD American Shaman: 6821 W. Clearwater Ave., Suite A, Kennewick; 509405-2365; cbdamericanshaman.com; Facebook.

Tri-Cities Area Journal of Business • March 2019 uAWARDS & HONORS • Brett Spooner, the founder, chief executive of officer and managing partner of Gravis Law PLLC, a national law firm with headquarters in Richland, received the Brett Spooner Sam Volpentest Entrepreneurial Leadership Award from the Richland Rotary Club’s 23rd annual Entrepreneurial Awards program Feb. 26. The Sammy Award was presented by Sam R. Volpentest, son of Sam Volpentest. Spooner dedicates free time to the growth and expansion of small businesses and entrepreneurial ecosystems in the Tri-Cities. Gravis Law is a full-service law office with specialties in business, family law, wills and estates, and criminal law. The event spotlights businesses that are not fully mature, but show promise for the future. Typically, they are at a late stage of product development, about to receive a patent or just launched a business in a niche market. Other award nominees were: Humming Hemp, Digital Images TriCities, Boost Builds, Molecule Works Inc., Red Mountain Kitchen, Magnolia Music Studios and Cougar Marketing and Design. • The Las Vegas Market named

Prosser-based Chukar Cherries’ original assortment food gift as best in category for gourmet food gift Jan. 31. It features an array of chocolate-covered dried cherries, nuts and berries including Northwest-grown dried Bing and Rainier cherries in dark and milk chocolate. It was the first gourmet food gift to win since the category was added this year. It was selected based on aesthetics, user benefits, innovation and marketability. • The Government Finance Officers Association awarded Benton County with a Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Annual Financial Report for the 15th consecutive year Feb 5. This is the highest honor in the field of governmental and financial reporting and represents a significant accomplishment, according to a news release from the county. • FASTSIGNS of Kennewick, a sign and visual graphics provider, was recognized Feb. 28 as a top performing center at the 2019 FASTSIGNS Convention in Orlando, Florida. Owned by Jeff and Jared Lembcke, FASTSIGNS of Kennewick received a Mentor Recognition Award, which recognizes a seasoned franchisee who serves as mentor to a new FASTSIGNS franchisee for the first six months of operation. FASTSIGNS of Kennewick has been serving the area since 1991, and the Lembckes bought the center in 1995. • Jerry Bosley, deputy vice president of Mission Support Alliance’s Site Services and Interface Management organization, received the 2018 Kathryn

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A. Wheeler Safety Leadership award. He has been committed to safety for the 30 years he worked at the Hanford site. The annual award recognizes a member of the MSA workforce who demonstrates support of safety through worker engagement and activities that are collaborative, cooperative and proactive. • Superintendent Carl D. Thompson of Columbia Point Golf Course in Richland received a Natural Resource Conservation Award for his work in water conservation and management, pollution prevention, energy conservation and wildlife and habitat management. The 2018 Environmental Leaders in Golf Awards are presented annually by the Golf Course Superintendents of America, or GCSAA, and Golf Digest. The award recognizes superintendents of golf courses around the world for their commitment to environment stewardship since 1993. CourseCo, a golf course management company with properties in the TriCities, received the 2019 President’s Award for Environmental Stewardship by the board of Golf Course Superintendents of America, or GCSAA. The award was presented Feb. 6 during the 2019 Golf Industry Show in San Diego. CourseCo manages Columbia Point Golf Course, Columbia Park Golf Links in Kennewick and Sun Willows Golf Course in Pasco. • Hanford High School music teacher Chris Newbury was selected to share his percussion expertise with music educators from across the Northwest. Newbury presented “Drum Set

Troubleshooting” at the National Association for Music Education AllNorthwest Conference in Portland from Feb. 14-17. The workshop is aimed at giving teachers insight and advice on how to help students of all levels and abilities overcome challenges when playing a drum set. • Financial services firm Edward Jones ranks among the Fortune 500 for the sixth year in a row. Fortune magazine ranks the largest U.S. companies by revenue. Edward Jones moved up 27 spots to No. 376 on the list with nearly $7.6 billion in revenue for 2017. The company has several offices in the Tri-Cities.

uAUDITS • Benton Fire District 1 passed its independent financial and accountability audits conducted by the Washington State Auditor’s office. The audits, which cover financial and operational practices for 2015-17, came back with no findings.

uDONATION • Fred Meyer has donated $63,265 to Second Harvest Food Bank to be used toward hunger relief efforts through its Hunger Round-Up program, which launched mid-2018. The program allows customers to round-up their store purchase to the nearest dollar, with all the money going to the food bank partner. The contribution will provide 316,325 meals for those in need through Second Harvest’s network of 250 food banks and meal programs feeding 55,000 people each week.

Tri-Cities Area Journal of Business • March 2019

uNEW HIRES • The Franklin PUD Board of Commissioners has selected Scott R. Rhees as the next general manager of the utility. The appointment will be effective April 1. Franklin Scott R. Rhees PUD received 58 applications from candidates across the region. A native of Utah, Rhees has 40 years of experience, with most as vice president of transmission and utility relations with Cyrq Energy in Salt Lake City. Much of his experience has been with

investor-owned utilities, including PacifiCorp. Rhees has served on various economic development boards and chamber of commerce boards. He and his wife currently serve on the Heber Valley Cowboy Poetry and Music Festival Board. They have three children and two grandchildren. • Amanda Young has been hired as a graphic designer at United Way of Benton and Franklin Counties in Kennewick. She is responsible for developing print and digital materials as well Amanda Young

Put Together a Professional Team to Help Reach Goals

as other marketing and communication functions. She has a background in graphic design, marketing and small business development, and holds a bachelor’s degree in digital technology from Washington State University Tri-Cities, and a master’s degree in strategic communications from the Edward R. Murrow College of Communications at Washington State University. • The Construction Industry Training Council of Washington has hired Cordaro “Cord” Galvan as apprenticeCordaro Galvan ship and facility Member SIPC

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As you work toward achieving your goals in life, you will need to make moves that contain financial, tax and legal elements, so you may want to get some help – from more than one source. Specifically, you might want to put together a team comprised of your financial advisor, your CPA or other tax professional, and your attorney. Together, this team can help you with many types of financial/tax/legal con-

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recommendation of your financial advisor, to sell some investments and use the proceeds to buy others that may

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uBOARDS

held the investments for more than a year before selling, your gain will likely be considered long-term and taxed at the lower, long-term capital gains rate, which can be 0%, 15% or 20%, or a combination of those rates. On the other hand, if you sell an investment and realize a capital loss, you may

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so, when?” “If I take some losses, how much will they benefit me at tax time?” – may also be of importance to your tax advisor, who will need to account for sales in your overall tax picture. As such, it’s a good idea for your tax and financial advisors to communicate about any investment sales you make. Your tax and financial advisors also may want to be in touch on other issues, such as your contributions to a retirement plan. For example, if you are selfemployed or own a small business, and you contribute to a SEP-IRA – which is funded with pre-tax dollars, so the more you contribute, the lower your taxable income – your financial advisor can report to your tax advisor (with your permission) how much you’ve contributed at given points in a year, and your tax advisor can then let you know how much more you might need to add to move into a lower tax

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bracket, or at least avoid being bumped up to a higher one. Your financial advisor will be the one to recommend the investments you use to fund your SEP-IRA. Your financial advisor can also help you choose the investment or insurance vehicles that can fund an estate-planning arrangement, such as an irrevocable living trust. But to establish that trust in the first place, and to make sure it conforms to all applicable laws, you will want to work with an attorney experienced in planning estates. Your tax professional may also need to be brought in. Again, communication between your various advisors is essential. These are but a few of the instances in which your financial, tax and legal professionals should talk to each other. So, do what you can to open these lines of communication – because you’ll be one who ultimately benefits from this teamwork. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

coordinator at the Pasco training center, which opened in the fall. Galvan is new to the Pasco facility, but not to CITC. He was previously the apprenticeship and craft training program assistant at CITC’s Bellevue location. In his new role, Galvan will assist apprentices with classes and schedules, serve as a contact for employers, attend job fairs and monitor job sites. • Jeff Cummings of West Richland has been hired as a physician assistant at the Tri-Cities Cancer Center in Kennewick. He earned his master’s of physician assistant studies from Idaho State University in Pocatello, Idaho. Cummings, who Jeff Cummings is fluent in English and Spanish, had been working in primary care at the Miramar Clinic in Pasco, which is part of the Yakima Valley Farm Workers Clinic. • Focal Point Marketing & Multimedia new digital marketing specialist is Jessica Schumacher. She helps implement comprehensive audience personas, manages, and optimizes digital campaigns to best use client advertising dollars while performing organic Jessica Schumacher and paid SEO strategies to boost clients’ brands. Focal Point is based in Kennewick.

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• The Kadlec Foundation has three new Foundation Board of Trustees members: Alma Feil, vice president of business development with HAPO Community Credit Union, Kristin Sweezea, regional sales director with New Home Star WA LLC, and Roy Wu, owner of Home Instead Senior Care. • Six people have joined the Board of Directors at United Way of Benton & Franklin Counties: Joni Grindstaff is the director of the mission integration office for DOE’s Office of River Protection; Randy Hayden is the executive director at the Port of Pasco where he has worked for the past 19 years; Sandra Haynes became the chancellor of Washington State University Tri-Cities in March 2018; Gail Johnsen is the pastor of staff at Faith Tri-Cities in Pasco and a certified life and leadership coach; Charles Simpson is a manager at Washington River Protection Services; and Rebecca Weber is an international trade specialist for the state Department of Agriculture’s International Marketing Program.

Tri-Cities Area Journal of Business • March 2019

PUBLIC RECORD uBANKRUPTCIES

CHAPTER 11

Information provided by the U.S. Bankruptcy Court in Spokane. 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.

Gray Land & Livestock, PO Box 1525, Prosser.

CHAPTER 7 Guadalupe Sanchez, 1123 Lincoln Drive, Pasco. Don Gerhard, 1720 Road 52, Pasco. Patrick D. & Jenny S. Jones, 205414 E. SR 397, Kennewick. Thomas Saxton, 3240 Anvalusian St., West Richland. Atala R. Villegas, 5320 Dundas Lane, Pasco. Nicholas & Jocelyn Toney, 1007 Smith Ave., Richland. Damian & Jenna Garcia, 5218 W. Metaline Ave., Kennewick. Victor & Sarah M. Ramirez, 23601 N. Willard Ave., Benton City. Leonardo & Janice J. Rodriguez, 235705 E. Lechelt Road, Kennewick. Deanne Reid, 4212 Laredo Drive, Pasco. Consuelo Ayala, 3315 W. First Pl., Kennewick. Russell A. & Edna M. Wallace, Sr., 6510 Haag St., West Richland. Gerald W. & Marie E. Skotland, 2106 W. Fifth Ave., Kennewick. Mike Davis, 1511 N. Montana Court, Kennewick. Jerry C. & Alyssa H. E. Jackson, 320 W. 36th Ave., Kennewick. Raul A. & Sarah Gallo, PO Box 569, Connell.

CHAPTER 13 Robert C. & Pamela J. Ponce, 1409 S. Underwood St., Kennewick. Larry Menter, 3404 S. Burmuda Road, Kennewick. Steve D. Arbogast, 81006 Elk Trail Lane, Heppner, Oregon. Scott & Amber Davis, 3571 W. 11th Pl., Kennewick. Louis R. & Karin I. Garcia, 1226 Hillcrest Drive, Prosser. Zachary D. & Mersadie A. Montgomery, 6009 Pimlico Drive, Pasco.

uTOP PROPERTIES

Top property values listed start at $500,000 and have been rounded to the nearest hundred figure. BENTON COUNTY 2104 W. 51st Ave., Kennewick, 2,472-squarefoot, residential home. Price: $715,000. Buyer: Christine & Charles Batayloa. Seller: Conor & Sarah Jordan. 316 Clovernook St., Richland, 2,908-squarefoot, residential home. Price: $560,000. Buyer: Sara & Brett Hudson. Seller: Christopher & Louise Herndobler Trustees. 8113 W. 10th Ave., Kennewick, 2,326-squarefoot, residential home on 0.62 acres. Price: $570,000. Buyer: Frank Roth & Michaela Dimas. Seller: Milo & Hilary Thurber. 14805 S. Toure PRSE, Kennewick, 2.54 acres of undeveloped land. Price: $895,000. Buyer: Kuldip Singh & Inderjit Kaur. Seller: Janae & Jason Cornett. 44114 S. Nine Canyon Road, Kennewick, 2,254-square-foot, residential home on 6.29 acres. Price: $570,000. Buyer: Oscar & Zoila

Perez. Seller: Kenneth & Marcia Matson. 7104 Coulee Vista Drive, Kennewick, 2,572-square-foot, residential home on 1.2 acres. Price: $505,000. Buyer: Dustin & Kaitlin Richman. Seller: Matthew & Tara Laub. 1423 White Bluffs St., Richland, 1 lot of undeveloped land. Price: $525,000. Buyer: Ken Snider. Seller: Elegant Residences Construction. 2126 Legacy Lane, Richland, 1 lot of undeveloped land. Price: $510,000. Buyer: Daniel & Samantha Ward. Seller: Pahlisch Homes. 4103 N. Levi St., Kennewick, lot of undeveloped land. Price: $680,600. Buyer: Leonard & Paula Wu. Seller: Matson Construction. 1992 Saint St., Richland, 20,280-square-foot, commercial building. Price: $997,700. Buyer: Polo & Valerie Garza. Seller: LKZ LLC. 19711 S. Clodfelter Road, Kennewick, 3,898-square-foot, residential home on 1.9 acres. Price: $599,900. Buyer: Brian & Clora Harp. Seller: Maurice & Rhonda Black. 3340 Mt. Adams View Drive, West Richland, 2,679-square-foot, residential home on 2.5 acres. Price: $6099,900. Buyer: Geoff & Michelle Bouchey. Seller: Timothy & Amanda Bush. Wishkah Drive, Richland, 6 lots of undeveloped land. Price: $549,000. Buyer: Hayden Homes. Seller: Richland 132 LLC. 88817 E. Reata Road, Kennewick, 2,322-square-foot, residential home on 2.43 acres. Price: $500,000. Buyer: Lisa Gerber. Seller: Brian & Kathy Williamson. 1749 Milan Lane, Richland, lot of undeveloped land. Price: $644,900. Buyer: John & Laurie Montero. Seller: Pahlish Homes. 4942 Smitty Drive, Richland, lot of undeveloped land. Price: $549,000. Buyer: Christopher and Smith & Jay Swope. Seller: New Tradition Homes. 1329 Lee Blvd., Richland, 17,493-square-foot, commercial building. Price: $4,900,000. Buyer: Hemmat Family LLC. Seller: The Richland Property. 1201 Adair Drive, Richland, 4,237-square-foot, residential home. Price: $567,500. Buyer: Robert & Susan Marple. Seller: L.P. & Stephanie

Diediker Trustees. Undisclosed location, Benton City, 9,375-square-foot, commercial building on 2.4 acres. Price: $3,520,000. Buyer: Susslin Investments. Seller: BCPC LLC. FRANKLIN COUNTY 2604 W. Court St.; 2705 & 2607 W. Brown St., Pasco, 8,032-square-foot, commercial building and undeveloped land. Price: $899,800. Buyer: Render Holdings. Seller: Jan Tidrick. 2001 Amy Loop, Pasco, 2,862-square-foot, residential home. Price: $543,900. Buyer: William & Lindsey Best. Seller: P&R Construction. 7716 W. Dradie St., Pasco, 3,200-square-foot, residential home. Price: $615,000. Buyer: Michael Lambel. Seller: Steven & Terry Cree.

uBUILDING PERMITS KENNEWICK G&C Rawlings, 6250 W. Clearwater Ave., $56,000 for tenant improvements. Contractor: 2M’s Construction. Columbia Mall Partnership, 1321 N. Columbia Center Blvd., $790,000 for commercial remodel, $150,000 for HVAC and $10,000 for plumbing. Contractors: Reconn Construction, Bruce Heating & Air and Riggle Plumbing. Kennewick Baptist, 2425 W. Albany Ave., $9,100 for HVAC. Contractor: Campbell & Company. Kennewick Real Estate, 1508 W. Seventh Ave., $14,800 for commercial remodel. Contractor: Thornworks. Washington Securities, 8418 W. Gage Blvd., $5,000 for demolition. Contractor: One Stop Construction. Tri-Cities Development, 3122 S. Wilson St., $6,000 for new commercial construction.

uPUBLIC RECORD, Page 47

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

Tri-Cities Area Journal of Business • March 2019 PUBLIC RECORD, From page 45 Contractor: Western Modern Arts. Bubbar Holdings, 5601 W. Clearwater Ave., $108,000 for commercial remodel. Contractor: Living Stone Homes. Ratneshwar Motel, 2600 S. Quillan Place, $5,500 for a sign. Contractor: Quality Signs. The Fiore Group, 4101 W. 27th Place, $9,000 for a sign. Contractor: Quality Signs. PASCO Ramiro Torres, 220 W. Lewis St., $103,400 for commercial addition. Contractor: AE Consulting. McCurley Subaru, 3302 W. Marie St., $20,000 for an antenna. Contractor: to be determined. Yesmar Properties, 8425 Chapel Hill Blvd., $39,500 for tenant improvements. Contractor: W McKay Construction. Lakeshore Investments, 1123 W. Court St., $15,600 for tenant improvements and $7,600 for HVAC. Contractors: KNERR Construction and Campbell & Company. Wilbur-Ellis Co, 150 Burlington St., $28,600 for commercial addition. Contractor: Northwest Handling Systems. Bryan Schutz, 6415 Burden Blvd., $60,300 for tenant improvements. Contractor: owner. Jay Brantingham, 3121 Travel Plaza Way, $5,000 for a sign. Contractor: CRF Metal Works. Franklin County PUD, 1411 W. Clark St., $45,000 for a fire alarm system. Contractor: Cascade Fire Protection. Bergevin Properties, 820 S. Chestnut Ave., $56,600 for commercial addition. Contractor: Circle K Enterprises. Thomas Matheson, 616 S. Road 40, $34,500 for tenant improvements. Contractor: Romm Construction. RICHLAND Richland Investments, 1515 George Washington Way, $25,000 for an antenna/tower. Contractor: Ethos Distributed Solutions. City of Richland, 3003 Kingsgate Way, $163,600 for grading. Contractor: Fisher Construction. Richland Church of Nazarene, 2451 Jericho Road, $9,000 for a sign. Contractor: Quality Signs. Petbo Properties, 79 Aaron Drive, $45,000 for commercial reroof. Contractor: Elite Construction & Development. Roasters Coffee, 496 George Washington Way,

$98,000 for tenant improvements. Contractor: O’Brien Construction. Weyerhauser Apartments, 250 Battelle Blvd., $12,100 for grading. Contractor: Ttap Construction. WEST RICHLAND Benton Rural Electric Association, 6102 W. Van Giesen St., $79,000 for solar. Contractor: Hot Solar Solutions.

uLIQUOR LICENSES BENTON COUNTY NEW APPLICATIONS Kennewick Hilton Garden Inn, 701 N. Young St., Kennewick. License type: hotel. Application type: added/change of class. 3 Farmers Tasting Room, 590 Merlot Drive, Suite, A Prosser. License type: domestic winery <250,000 liters. Application type: new. Inca Mexican Restaurant, 201 N. Edison St., Suite 248, Kennewick. License type: spirits/beer/ wine restaurant bar lounge. Application type: new. Moonshot Brewing, 8804 W. Victoria Ave., Suite 130 and 140, Kennewick. License type: microbrewery. Application type: new. The Dive, 2000 Logston Blvd., Suite 122, Richland. License type: direct shipment receiver in/ out of Washington; spirits/beer/wine restaurant lounge. Application type: new. Smasne Cellars, 590 Merlot Drive, Suite A, Prosser. License type: domestic winery <250,000 liters. Application type: new. APPROVED Shooters Sports Bar, 214711 E. SR 397, Kennewick. License type: spirits/beer/wine restaurant lounge. Application type: new. The Folded Pizza Pie, 421 Wellsian Way, Richland. License type: direct shipment receiver in Washington only. Application type: new. Lazy River Taphouse, 4033 W. Van Giesen St., Suite E, West Richland. License type: tavern-beer/ wine. Application type: assumption. Juliana’s Meat Market, 5413 W. Van Giesen St., West Richland. License type: grocery store-beer/ wine. Application type: new. Restaurante El Asadero, 127 Gage Blvd., Richland. License type: beer/wine restaurant. Application type: new.

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Airfield Estates Winery, 560 Merlot Drive, Prosser. License type: domestic winery<250,000 liters. Application type: alcohol permit. Osaka Sushi & Teriyaki, 4101 W. 27th Place, Kennewick. License type: beer/wine restaurant. Application type: assumption. Aquilini Brands USA, 23205 E. Limestone Road, Benton City. License type: domestic winery >249,999 liters. Application type: change of class. The Wet Palette, 1001 Wright Ave., Richland. License type: beer/wine restaurant. Application type: new.

Road NE, Suite A, Benton City. License type: marijuana producer tier 3. Application type: change of location. Pure Tran, 233757 E. SR 397, Kennewick. License type: marijuana producer tier 3; marijuana processor. Application type: assumption. Wonder West Group, 15505 N. Webber Canyon Road NE, Suite E, Benton City. License type: marijuana producer tier 3; marijuana processor. Application type: change of location.

FRANKLIN COUNTY APPROVED

Altitude, 260 Merlot Drive, Prosser. License type: marijuana retailer. Application type: added fees.

Supermex El Pueblo Market, 720 N. 20th Ave., Pasco. License type: direct shipment receiver in/out of Washington. Application type: change of class.

uMARIJUANA LICENSES BENTON COUNTY NEW APPLICATIONS Highland Nursery, 15505 N. Webber Canyon

APPROVED

uJUDGMENTS AND BUSINESS LICENSES

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

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