Tri-Cities Area Journal of Business -- July 2017

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July 2017

Volume 16 • Issue 7

Trios Health expects to clear bankruptcy in one to three years BY KRISTINA LORD editor@tcjournal.biz

Nonprofits

Service groups continually seeking new members Page 11

Real Estate & Construction

Patience, planning required when building new pools Page 21

Banking & Finance

Numerica set to open two new branches this year page 49

he Said It “Washington state is the toughest state in the country for small businesses. … It’ll be a burden in an already tough state.” - Sen. Michael Baumgartner, R-Spokane, on family leave law Page 3

The Kennewick Public Hospital District has filed for bankruptcy protection as it works to reorganize $221 million in debt. Trios Health, which operates two hospitals and multiple outpatient care centers throughout Kennewick, will continue to operate as normal as it works to regain financial footing. The district has reported losses over the past three years and its cash is depleted. “We have arrived to a point that we must restructure our debt so that we can sustain our operations and services to the Tri-Cities,” said Marv Kinney, president of the hospital district board, in a statement. “We have endeavored to avoid this process by working with our creditors. Unfortunately, a few are not amenable to negotiation so we needed to file so patient care can continue unhindered.” The public hospital district board voted unanimously June 29 to file for Chapter 9 bankruptcy with the U.S. Bankruptcy Court for the Eastern Division of Washington. Documents were filed with the court June 30. The process provides for the reorganization of municipalities, providing time to propose a plan for the adjustment of the hospital district’s debts to third parties. The next step in the process is to file a plan of adjustment and disclosure statement with the court outlining Trios Health’s plan for repayments. The court will then assign a date for presentation of this plan. Depending on the judge’s decision, the next steps in the process can vary. Trios Health expects to emerge from bankruptcy within one to three years. Trios Health CEO Craig Cudworth said the details of the debt reorganization plan are not finalized but Trios will continue to take deliberate steps to return to financial health as soon as possible. The administrative team and leadership are following the recommendations presented by Quorum Health Resources, a management consultant firm hired by the hospital board last year. uTRIOS, Page 46

A Walmart associate helps a customer sign for a grocery pickup order. Tri-City Fred Meyer and Walmart stores expect to offer grocery service pickup services before the end of the year. (Courtesy Walmart)

Order groceries online, then pick up curbside BY ROBIN WOJTANIK

for Tri-Cities Area Journal of Business

Whether it’s back-to-school lunch supplies or a Thanksgiving turkey, grocery shopping will get more convenient as stores begin to offer curbside pickup. Tri-City Fred Meyer and some Walmart stores expect to offer their version of the service before the end of the year. The Richland Fred Meyer will begin its ClickList service in conjunction with a regrand opening celebration. The store’s extensive $12.4 million remodel is expected to be complete at the end of next month. Shortly after, work will begin on the

Kennewick Fred Meyer store to ready it to provide the same curbside grocery pickup by late October. Online Grocery is also expected to be available at Tri-City Walmart locations before the end of the year. The retail giant was unable to confirm which Tri-Cities locations will offer the service currently available in five locations in Washington — three in Spokane and two in Vancouver. Building permits were requested for $120,000 in grocery remodeling at each of the three Tri-City Walmarts, with a specific mention of online grocery service at the Richland and Kennewick stores. uGROCERY, Page 38

Iced, blended or hot: new coffeeshops ready to brew Tri-Citians’ favorites BY JEFF MORROW

for Tri-Cities Area Journal of Business

Brianna Cervantes wanted to be a photographer when she was a little kid. Then at the age of 15, she found coffee, and her life changed. “I worked at Dutch Brothers for a year and a half,” she said. “I actually wanted to be a franchisee at Dutch Brothers. I tried three times.” Cervantes, who also worked at the local Roasters Coffee, never got that franchise. So at the age of 19, she started her own coffee shop, NorthWest Coffee, which opened up in early July at 2465 Stevens Center Place in north Richland amid a complex of office buildings near Mission Support Alliance, Washington River Protections Solutions and Bechtel National. “I just have always loved coffee,” said

Cervantes. “It’s a fun thing. You get to talk to people. I think it’s a way to get to know people. And that’s my goal: to make people connect.” Tri-Citians love their coffee, judging from the burgeoning growth of the coffeehouse industry, which includes the opening of several more: • Dutch Brothers is building two new stores: 3918 West Clearwater Ave. in Kennewick and at 924 George Washington Way in Richland. • Wes Heyden is finishing his ninth Roasters Coffee at Clearwater and Highway 395 at 300 N. Ely St. in Kennewick. It celebrated its grand opening with drink specials on July 14. He’s opening his tenth location before the holidays in south Richland near Keene and Kennedy roads. uCOFFEE, Page 3

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