bellingham business journal, may 06, 2013

By Evan [email protected]

A fter announcing a joint ven-ture last summer to combine their operations in the Pacif-

ic Northwest and create a new regional health care system, lead-ers of PeaceHealth and Catholic Health Initiatives knew the nego-tiations would be complicated.

But nine months into a due diligence process before the part-nership was expected to begin in July, talks were suspended as the organizations said they had hit

an impasse over how to integrate their services.

The partnership was driven by a desire to cut costs, handle more financial risk in caring for Med-icaid and Medicare patients and streamline operations as elements of federal health care reform took effect. But the scale of the deal presented too many complexities for either group to meet agreeable terms, executives from Peace-Health and CHI, both of which are nonprofit Catholic health care systems, said.

“It is the fragmentation that

lives within health care across all the providers that makes that so difficult,” Peter Adler, a senior vice president and chief strategist for PeaceHealth, said. “We need to keep working on that.”

With the health care industry anticipating significant change over the next decade, syn-ergy among hospital operators is thought to be a key element in achieving more efficient service—and in the end, better outcomes for patients currently facing

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PeaceHealth St. Joseph Medical Center in Bellingham, which is Whatcom County’s sole hospital and largest employer, was set to become part of the new regional health care system. PHOTO COURTESY OF PEACEHEALTH

CALLED OFF

PEACEHEALTH | PAgE 23

PeaceHealth, Catholic Health Initiatives cite discord among shared services in suspending talks to create new health care system

Skill gap seen in applicants for jobs in high-tech fields


A fter making a lap around the conference room in Fox Hall at Bellingham’s Hampton

Inn, Will Hobbs takes a short break from mingling with dozens of potential employers, almost all with jobs to offer.

Hobbs is at the Bellingham TechExpo and Job Fair, hosted by the nonprofit Technology Alli-ance Group for Northwest Wash-ington, to scope out jobs available from local technology employers. The 41-year-old, who works a graveyard shift doing security at Silver Reef Casino in Ferndale, said he has about eight months left before finishing an informa-tion technology degree program at the local branch of Charter College.

He said he is interested in a career in network security, and he

thinks he will likely start out at a small company. But right now, it’s difficult for him to narrow down the options.

“It’s so hard to really decide on what I want to do,” Hobbs said.

Once he’s completed school, Hobbs will enter an industry with employers who say it is getting harder to find skilled and quali-fied applicants to fill job vacan-cies.

A 2012 survey completed by the state Workforce Training and Education Coordinating Board, the results of which were released in January, found that out of an estimated 60,000 Washington employers who hired new work-ers last year, one in five had diffi-culty finding qualified applicants.

While unemployment has dropped from recession-level highs in much of Washington,

Survey shows half of Washington’s technology employers report difficulty filling positions

SKILL GAP | PAgE 22

INSIDE THIS ISSUETech entreprenuer center opens downtown | PaGE 13

Questions & answers with corrinne sande | PaGE 12

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$1STAY & FLY | PAGE 8

PROPOSAL FOR HOLIDAY INN AT AIRPORT WILL MOVE AHEAD

Alliance between digital firms, nonprofits and com-mercial real estate agents has created a new entrepre-neurship center, devoted to getting new tech companies off the ground in downtown Bellingham.

Computer security expert and educator has helped garner national acclaim for the Com-puter Information Systems program at What-com Community College.

FrEE TO SHrEDBob Wallin Insurance will host a free document shredding event from noon to 2 p.m. on Friday,

May 10, at its Bellingham office, 1844 Iron St. Sound Recycling will

be handling disposal of shredded material. All metal clips, binders and staples need to be removed from documents to be shredded.Bob Wallin Insurance can be reached at 360-734-5204 for more information

GLuTEn-FrEE FOOD FAIrThe Bellingham Public Market, Terra Organica, and the Bellingham Gluten Intolerance Group plan to host a Gluten-

Free Food Fair to celebrate National Celiac Awareness Month, which takes place in

May. The event is scheduled from 1 p.m. to 4 p.m. on Saturday, May 11, at the Bellingham Public Market, 1530 Cornwall Ave. At the Gluten Free Food Fair, visitors will be able to learn more about celiac disease and gluten sensitivity. There will be many gluten free foods to sample and resources to help people live a healthy life without gluten. Author and naturopathic physician Dr. Jean Layton will answer questions and sign copies of her book “Gluten Free Baking for Dummies,” and massage therapist Janet Kingsley will be available to discuss the benefits of abdominal massage. There will also be door prizes and goodie bags (while supplies last).

unDErSTAnDInG COnFLICT EVEnTSThe nonprofit Whatcom Dispute Resolution Center is offering a six-hour

Understanding Conflict Workshop over two sessions from 1 p.m. to 4 p.m. on May 14 and May 16. The interactive workshop is designed to develop

participants’ awareness of their own approaches to

conflict, and to increase their skills and capacity to better manage conflict as it arises at home, in the community and at work.The workshop costs $75 and pre-registration is required. Classes will be held at the Whatcom Dispute Resolution Center, located at 13 Prospect St., Suite 201, Bellingham. For more information, call 360-676-0122 or visit www.whatcomdrc.org.

HAbITAT’S AnnuAL AuCTIOnHabitat for Humanity’s Annual Raise the Roof Auction debuts casual, mid-week format.

Habitat for Humanity in Whatcom County’s 2013 Raise the Roof Auction will

be held at 5:30 p.m. on Thursday, May 16, at the Hotel Bellwether in Bellingham.The auction is the primary fundraising event for the local low-income housing ministry. This year, instead of a sit-down banquet, the auction will be a casual, after-work event with cocktails, appetizers and desserts.Silent and live auctions will offer a wide variety of local and regional items, services, dining and lodging. Some highlights include: A weekend Porsche rental from Roger Jobs Motors, a week’s stay in Whistler,

British Columbia, private party space for 40 at Fireside Martini & Wine Bar and more. The event will also include a raffle, prizes and competitions.Tickets are $50 per person, and can be purchased at Habitat for Humanity in Whatcom County’s website: www.hfhwhatcom.org, by calling Habitat’s office at 360-715-9170 or by visiting the Habitat for Humanity Store at 1385 Admiral Place in Ferndale.

DISASTEr rECOVEry In THE “CLOuD” The nonprofit Technology Alliance Group for Northwest Washington

hosts Chris FitzGerald of FiberCloud to discuss ways business owners can

quickly recover from an unexpected power outage, IT hardware malfunction, a network failure and problems. He will also talk about ways use “Colocation” and cloud solutions to protect mission-critical data and ensure business continuity.The event is scheduled from 11:30 a.m. to 1:15 p.m. on Friday, May 17, at NorthWood Hall in Bellingham, 3240 Northwest Ave. Registration costs $15 for TAG members, and $25 for nonmembers. More information is online

2 BBJToday.com May 2013

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Peoples bank announces new president, top-level changes

Peoples Bank in Lynden has announced a series of top-level personnel changes, including the appointment of its chief operating officer, Russ Lee, to bank presi-dent.

Bank CEO Charles LeCocq, who has been the company’s president since 1987, has been promoted to chairman of its board of directors. LeCocq will continue as CEO at Peoples Bank.

In addition to his new position of presi-dent, Lee will also continue as the bank’s chief operating officer, according to a com-pany announcement.

The bank also announced that Irwin LeCocq, Jr., Charles LeCocq’s father, who has served as Peoples Bank’s board chair, will now serve as vice chairman of the board and chairman emeritus.

Peoples Bank reports more than $1.24 billion in assets. The bank operates 23 branches and three loan production offices in seven counties. It employs 398 people, is the tenth largest bank headquartered in Washington state.

Feder joins Mount baker Theatre as development director

Larry Feder has joined the staff of the Mount Baker Theatre as its development director.

Feder has more than 25 years of fundraising and development experience, as well as a background in theater.

He has worked with major organizations around the country, including City of Hope National Medical Center, and 12 years as vice presi-

dent with Fred Hutchinson Cancer Center in Seattle.

McCormack joins Lakeway Inn as director of outlets

Bill McCormack has been appointed as director of outlets at the Best Western PLUS Lakeway Inn & Conference Center in Bellingham

McCormack, who has more than 30 years of experience in the hospitality industry, is overseeing all operational aspects of the newly renovated Poppe’s 360 Neighborhood Pub and The Oboe Café.

McCormack, a lifelong Bellingham resi-dent, has so far introduced a new breakfast menu in the cafe, as well as new menu and happy-hour prices that are competitive for the local market.

Surmi joins ACME Farms + Kitchen as culinary director

ACME Farms + Kitchen in downtown Bellingham has hired Travis Surmi as its new culinary director.

With Surmi joining the company, ACME plans to begin offering new “Sunday sup-pers,” boxed lunches and catering services.

Surmi was one of the founders of the now-closed Cheese Meat(s) Beer restau-rant. He attended Le Cordon Bleu College of Culinary Arts in Portland, Ore.

“I am very excited for the opportunity to

work with ACME Farms + Kitchen,” Surmi said. “I find my inspiration through all the different local and seasonal products avail-able and being able to tell a story with my food.”

WWu picks new dean for Fairhaven College

John “Jack” Herring has been appointed to serve as dean of Fairhaven College of Interdisciplinary Studies at Western Washington University, according to an announcement from the school’s provost, Catherine Riordan.

Herring, now dean for the campus-based undergraduate program at Prescott College in Prescott, Ariz., will begin at WWU in August. Her-ring was selected follow-ing a national search and will succeed Fairhaven College Dean Roger Gil-man, who is retiring.

As dean at Prescott College, Herring super-

vises more than 60 faculty and staff and is responsible for delivery of 300 courses a year, enrollment projections, research and planning.

He has been at Prescott College since 1998, where he has served as a faculty member in the Environmental Studies Pro-gram, and as an associate dean and dean in the Resident Degree Program. Prior to that, he was a research associate in the Department of Meteorology at the Univer-sity of Maryland, a Congressional Science Fellow and Legislative Aide in the U.S. House of Representatives, a post-doctoral research associate at the University of Alas-ka Fairbanks Geophysical Institute, and an environmental chemist for the Alaska Department of Environmental Conserva-tion.

His scholarly background is in the area of atmospheric chemistry. He has a doctor-ate in atmospheric sciences from the Uni-versity of Washington.

Arlynn promoted at Chrysalis Inn and Spa

The Chrysalis Inn and Spa has appointed Daysha Arlynn as its new lead esthetician.

Arlynn will now oversee the spa’s esthet-ics department. She has worked as an esthetician for eight years, and has spent the past four at the Chrysalis.

Feyen, Johnson-Cicchitti join rE/MAX Whatcom County

RE/MAX Whatcom County has hired Josh Feyen as a new agent and Christine Johnson-Cicchitti as a new associate in the company’s Bellingham office.

Feyen, a 2001 graduate of Western Washington University, has resided in Whatcom County for 15 years. Prior to earning his real estate license, he worked in the construction and building industry for 12 years, six of which as a general contrac-tor.

At RE/MAX, Feyen will focus on resi-dential sales and first-time home buyers.

Johnson-Cicchitti, a resident of Whatcom County for 38 years, specializes in residential, commercial and new construction. Prior to earning her real-estate license, Cicchitti man-aged the U.S. Bank in Edmonds, Wash., where she practiced sales on a daily basis.

Once licensed in 2005, Cicchitti spent seven years as an associate broker before joining RE/MAX Whatcom County.

Cicchitti currently serves as secretary/trea-surer on the Whatcom County Association of

Realtors’ Board of Directors, has earned the Internet Marketing Specialist Desig-nation and is e-Pro certified through the National Association of Realtors.

Gabbard promoted at neighborhood Mortgage

Heather Gabbard has been promoted to manager of the processing department at Whatcom County’s Neighborhood Mort-gage.

Gabbard has been in the lending indus-try for more than 15 years, and has been a member of the Neighborhood Mort-gage team since July 2005. Neighborhood Mortgage is a locally owned and operated, full-service mortgage broker based in Bell-ingham.

Local lean-management professional earns prize for book

Chris Ortiz, president of Kaizen Assem-bly in Bellingham, has earned the Shingo Prize Research and Professional Publica-tion Award for his book, “The Psychology of Lean Improvements: Why Organizations Must Overcome Resistance and Change Culture.”

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BBJPEOPLEWho’s news in Bellingham & Whatcom business

Larry Feder

Jack Herring

Daysha Arlynn

Christine Johnson-Cicchitti

Josh Feyen

PEOPLE | PAgE 5


at www.tagnw.org.

SKI TO SEA WEEKEnD The next annual installment of the popular Sea to Ski race kicks off

with a block party at 5 p.m. on Friday, May 24, at Boundary Bay Brewery on Railroad

Avenue in downtown Bellingham. The event will include live music, a beer garden and Boundary Bay Brewery food. The 93rd annual Ski to Sea Grand Parade will be held from 10 a.m. to 4 p.m. on Saturday, May 25. The parade route begins at Cornwall Avenue and Alabama Street and ends at york and State streets. The race itself begins

in the early morning of Sunday, May 26, on the slopes of Mount Baker. The seven-leg, 93.5 mile relay race will take competitors of the mountain, through Whatcom County and to the finish at Marine Park in Bellingham’s Fairhaven District. More information is online at www.skitosea.com.

HISTOrIC FAIrHAVEn FESTIVAL The 2013 Historic Fairhaven Festival will be held Sunday, May 26. The

all-day, multi-street party will feature live music on two stages, food, arts and crafts

vendors, as well as special exhibits.

The Historic Beer Garden located at 11th Street and McKenzie Avenue opens at noon. Tickets are $4. More information on the event can be found at www.facebook.com/historicfairhavenfestivals or www.fairhaven.com. The festival is produced by the Historic Fairhaven Association.

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Whatcom County’s jobless rate has dropped below 8

percent for the first time in 2013, as the Washington State Employment Security Department’s initial job-less estimate for March put local unemployment at 7.9 percent.

That is down from a revised rate of 8.4 percent in February of this year, and also down from an 8.1 percent jobless estimate from March 2012.

The number of people with jobs in Whatcom County increased by more 2,500 between February and March of this year. No industry sectors showed job losses in those month-to-month figures.

But between March 2012 and March 2013, the county lost about 1,700 jobs overall, according to Employment Security Department estimates. The county’s total labor force also shrunk by more than 2,100 between March 2012 and March 2013.

While job losses look concerning on paper, Anneliese Vance-Sherman, a regional labor economist, said the drop between March 2012 and March 2013 seems so far off recent trends that she expects a different picture to emerge as estimates are revised. Vance-Sherman said that over the past two years, Whatcom County has shown consistent job

Construction sector sees major job changes; economist cites volatilty of the building industry

JObLESS rATE GETS bELOW 8 PErCEnT In WHATCOM

JObS | PAgE 7

“If we take a longer view and look at the trends, it really is a positive and upward trend.” —Anneliese Vance-Sherman, regional labor economist


The Shingo prize recognizes and pro-motes research and writing regarding new knowledge and understanding of lean and operational excellence. It is among the highest honors in research and professional in the lean-management field.

Ortiz is one of the youngest winners of the Shingo prize. He has been practicing and teaching lean-management principles for 15 years.

Launching Success hires new community relations team

Launching Success Learning Store has hired three new community relations directors—Jodi Boon, Amy Blackwood and Sherri Willand—to focus on sharing the store’s educational materials, toys, games and other services with local schools, busi-nesses, organizations and consumers.

Boon earned her bachelor’s in elemen-tary education from Western Washington University and taught kindergarten and

first grade for eight years.Blackwood has been a writer and editor

for more than 15 years. She has extensive experience in community relations and public relations, including three years as a communications specialist at a school dis-trict in St. Louis, Mo.

Willand brings six years of volunteer experience with school districts and par-ent-teacher organizations, including serv-ing as volunteer coordinator for Ferndale Holiday Giving Store.

Fairhaven Veterinary Hospital manager earns industry certification

Michael Bellis, manager of the Fairhaven Veterinary Hospital, has earned the Certi-fied Veterinary Practice Manager distinc-tion from the Veterinary Hospital Manag-ers Association.

The certification is VHMA’s highest professional distinction. Bellis has man-aged multiple veterinary hospitals over 16 years in the industry. He is also a licensed

veterinary technician and graduate of the Pennsylvania State University.

The Fairhaven Veterinary Hospital has served the Bellingham since 1979. The hospital currently employs five doctors and 12 support staff members.

Martin hired at beacon Insurance Group in Lynden

Bobbie Martin has been hired as a new licensed agent by Beacon Insurance Group of Lynden, an independent agency offering auto, home, farm, commercial and business insurance.

Martin, who has 12 years of business experience in Lynden, recently completed insurance training and passed a state examination.

Striker, brown join Sterling real Estate Group

Sterling Real Estate Group has hired Karen Striker and Dan Brown to its Bell-ingham office. Sterling Real Estate Group specializes in residential, commercial, new

construction and “Built Green” properties in Whatcom and Skagit counties. In addi-tion to its office in Bellingham, it has an additional location in Ferndale.

Foley hired at 3D Corp. in bellingham

Randy Foley has joined the network administration team at 3D Corp., a Bell-ingham-based network management firm.

As network administrator, Foley’s responsibilities will include providing cli-ents with remote and on-site network assis-tance and will eventually evolve into pro-viding project management and emergency network problem resolution services.

Foley graduated from Bellingham Tech-nical College with a degree in computer network technology.

His certifications include CompTIA A+, Security+, Network+. He is also a Micro-soft Certified Professional.

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Ken Oplinger, who has served as president and CEO of the Bellingham/Whatcom Chamber of Commerce & Industry since October 2003, has announced he plans to leave the organization at the end of May to take over as the president and CEO of the Santa Barbara Region Chamber of Commerce in Santa Barbara, Calif.Oplinger’s final day will be May 29, which will allow him to lead the Chamber thorough the upcoming Blossomtime Grand Parade, the Junior Ski to Sea Race and the Junior Ski to Sea Parade.In addition to his role at the Chamber, Oplinger has also served for six years on the Planning Commission in Blaine, and was elected to the Blaine City Council in 2011.Oplinger will continue to host his Sunday morning KGMI radio show, “The Whatcom Report,” until his departure. The Chamber and KGMI are in discussions over the future of the show.In an annoucement of his departure, the Chamber highlighted Oplinger’s contributions to the organization, including his role in the creation of new events such as the Annual Awards Banquet and the Spring Business Showcase.During his time at the helm of the Chamber, Oplinger has supported a variety of initiatives to bolster cross-border commerce between Whatcom County and British Columbia. In the past couple of years, he has also been among the local advocates who

favor the proposed Gateway Pacific Terminal at Cherry Point.The Chamber has not yet indicated if plans are in place to find a successor as president and CEO.“We have a great staff to carry on the important work of the Chamber as Ken moves to his new position,” said Peter Cutbill of Whidbey Island Bank, the treasurer of the Chamber’s board. ”Our board will develop a transition plan in the next few weeks to make sure our programs and events go on as planned. We want to express our appreciation for all that Ken has done over these many years and know that he will bring great benefit to his new community.”

PEOPLE | FROM 3

Chamber president Ken Oplinger to step down after accepting similar position in California

Our staff has learned that a company, called American Registry, is apparently contacting local firms listed in the 2013 edition of our Book of Lists and trying to sell them expensive wall plaques under the impression they have won a special award or recognition from The Bellingham Business Journal.The Bellingham Business Journal is in no way connected to this company. We will not solicit you in order to sell you a plaque.Please contact our office at 360-647-8805 if you have additional concerns.

A nOTE TO Our rEADErS rEGArDInG SOLICITATIOnS



With growth that has outpaced other sectors in the American economy, the salon and spa industry can be a strong lure for entrepreneurs seeking new ventures.

But licensed intradermal cosmetic technician Heather Gauf-Perrin, who in January opened Bella Body & Sol, a tan-ning salon and spa on Harris Avenue in Fairhaven, said it’s the connections made with clients that truly matter for those in the business.

“I love how rewarding it is,” Gauf-Perrin said. “People really appreciate what you do.”

Even as the economic recession has forced many people to tighten their bud-gets and cut back on all but the bare essen-tials, the nearly $40 billion salon and spa industry has maintained steady growth over the past decade.

Gauf-Perrin offers an array of services in her 1,100-square-foot shop, including tan-ning, massage, facials, permanent makeup, eyelash extensions and waxing. Bella Body & Sol also carries a variety of natural, organic cosmetic and body products.

A health-centered approach to beauty care is among the more unique aspects to her business, Gauf-Perrin said. Along with that, she emphasizes custom services for clients.

Bella Body & Sol is staffed mainly by independent contractors who provide beauty and personal-appearance services. The contractors pay rent to Gauf-Perrin for the facility and for access to products needed to offer their own specialties.

Loyal customers bring salesIndependant contractors, those who

operate on their own without paid employ-ees, have enjoyed the strongest gains in the salon and spa business in the past 10 years.

The number of salon and spa establish-ments run by independent contractors has increased 78 percent in the past decade, and their sales have increased 99 percent, according to recent figures compiled by the

Professional Beauty Association and the National Cosmetology Association.

Salons and spas with paid employees have also seen growth, though on a smaller scale. They’ve increased 15 percent over the past decade, with sales rising 47 per-cent.

Job growth in the sector has also out-paced overall employment growth in the U.S. economy, and salon and spa industry experts project that trend will continue. Since 2000, the sector has increased its total employment by more than 18 percent, adding nearly 75,000 new jobs, according to the federal Bureau of Labor Statistics.

Brad Masterson, communications man-ager for the Professional Beauty Associa-tion, which is based in Scottsdale, Ariz., said salons and spas are able to maintain strong business due to a loyal customer base and the fact that they provide a ser-vice that customers see as necessary in their lives.

Even when money is tight, people still want to get their hair styled or receive other beauty services, Masterson said. This is particularly true when more people are out looking for work and need to maintain their personal appearance for job inter-views, he added.

“The salon business is relatively reces-sion-proof,” Masterson said.

Focusing on the retail side of the salon and spa business, by offering products along with services, will help owners retain customers and grow their shops, Master-son said.

For Gauf-Perrin, business at Bella Body & Sol will rely heavily on her tanning ser-vices.

Scrutiny on indoor tanningControversy, along with increased taxes

and regulation, has hurt revenue in the U.S. tanning industry in recent years. But indoor-tanning businesses are estimated to generate nearly $5 billion in annual rev-enue.

The industry could enjoy slightly sun-nier times in the future. The research firm IBISWorld reports indoor-tanning will see

a 1 percent annual revenue increase over the next five years.

Indoor tanning’s success depends largely on its customers’ disposable income, and market analsyts expect sales to pick up as the national unemployment rate continues its slow decline.

Gauf-Perrin said she believes the indus-try will be healthy in the future.

“People think tanning salons are going out, but even with the negativity form-ing around the tanning industry, it is still growing,” she said.

That negativity centers on concerns from health experts who say the regular use of tanning beds can greatly increase the risk of skin cancer, including melanoma. The American Academy of Dermatology Association supports an outright ban on the production and sale of indoor tanning equipment for commercial and cosmetic purposes.

Other anti-tanning groups push for stricter government regulation of the industry. In the U.S., 33 states have some

form restriction on tanning-bed use, according to information compiled by the National Conference of State Legislatures. The laws vary. States either require users to be 16 years old—some set the age limit at 18—or they require parent permission for younger users.

Washington does not currently enforce such an age limit, although within the past few years several state lawmakers have introduced bills to prohibit teen tanning.

Gauf-Perrin doesn’t deny some of the dangers associated with tanning. But she said at Bella Body & Sol, practitioners try to minimize risks by closely controlling their tanning sessions.

That includes setting a 10-minute maxi-mum tanning time limit for clients—Gauf-Perrin said most people probably only need 6-7 minutes—and also customizing the length of sessions based on clients’ skin types.

Gauf-Perrin said with a little control and common sense, the risk of skin cancer can be minimized.

rECESSIOn PrOOFBrisk business helping salon and spa industry

at a time when other services struggle

Sam Malich of Chazz-zam Signs & Graphics installs window graphics on the front window of Bella Body & Sol tanning salon and spa in Janu-ary 2013. The business is located in Fairhaven’s Harris Square at 960 Harris Ave., Suite 104B. (Right) One of the mas-sage rooms at the Bella Body & Sol tanning salon and spa. EVAN MARCZYNSKI PHOTOS | THE BELL-INgHAM BUSINESS JOURNAL

Bellingham’s gains in first-quarter home sales and prices outpaced those seen across Whatcom County as a whole, while market activity in several smaller communities slowed.

First-quarter home sales in Bellingham rose 21.4 percent to 176 from last year, and the median price of sales rose 8.2 percent to $272,636, according to data from real-estate agent Lylene Johnson of The Muljat Group.

While sales were mixed in the county’s small cities and rural areas, the entire county still experienced increases of 8.5 percent in homes sold (410) and 7.5 per-cent in median price ($246,750). in com-parison to 2012.

An improving economy and low interest rates were factors in the higher number of sales, Johnson said, while sales at higher price points and a declining number of houses for sale were contributing to higher median prices. Johnson noted that Belling-ham had 516 homes for sale in mid-March 2010, but only 295 for sale in the same week this year.

“While inventory should increase some-what as prices strengthen, there are still many homeowners who cannot afford to sell due to their debt level, so those homes won’t come into the inventory pool,” John-son said. “The number of short sales and bank-owned properties has been declining. While we are seeing more new construc-

tion, spec construction financing for build-ers is still tight and tends to limit the num-ber of small builders who can contribute to the new home inventory.”

Despite low interest rates, Johnson said buyers still may experience difficulty in getting bank loans. Lenders are requiring more documentation than ever, and low appraisals are a real concern, she said.

Johnson also said that sellers must be realistic and buyers should be prepared if they are entering Whatcom County’s hous-ing market.

“Owners must realize that the houses that sell are the ones that look the best, smell the best, are in the best locations and are priced to beat the competition,” she

said. “Buyers must do their homework so they can quickly act when they find the best house. Have your financing set up before you even start to look; sellers with choices don’t take offers from unqualified buyers. Face the fact that if it is the best house in the market, you will probably need to pay full price or very close to it.”

Johnson analyzed data from the North-west Multiple Listing Service to calculate comprehensive statistics for local commu-nities.

View comprehensive statistics for What-com County communities online at: pnw.cc/kzy7C.

—BBJ Staff Reports

Bellingham out front in Q1 home sales; county’s overall market mixed


growth when numbers from each month are compared with the previous year.

“If we take a longer view and look at the trends, it really is a positive and upward trend,” Vance-Sherman said.

The county’s construction sec-tor, which the Employment Secu-rity Department combines with mining and logging industries in its regular reports, is showing notable variation in employment, according to the March figures. While the industry gained an estimated 400 jobs in March compared to the previous month, which puts its current job-count estimate at around 5,500, state economists believe Whatcom’s construction field has shed more than 15 percent of the workforce it supported one year ago.

Yet Vance-Sherman said that

since construction work is heav-ily seasonal and contract-based, the industry’s volatility can make it difficult to establish definite employment trends.

Around northwest Washington, San Juan County had the lowest initial unemployment estimate in March, at 7.5 percent. Island County posted 8.3 percent, and Skagit County had a 9.3 percent jobless rate.

King County, the state’s popu-lation center, continues to hold Washington’s lowest unemploy-ment rate, at 5.1 percent, followed by Snohomish County at 5.7

percent. Ferry County in the north-

eastern part of the state had the highest unemployment estimate at 14.2 percent. The total job-less estimate in March for all of Washington, 7.3 percent, was at its lowest level since December 2008, according to the Employ-ment Security Department.

Since statewide estimates are adjusted to account for sea-sonal factors, economists say they should not be directly compared to county-level estimates, which are not adjusted due to their smaller sample sizes.

JObS | FROM 4

Initial job losses from 2012 likely to be revised downward


The co-lead agencies tasked to prepare an environmental impact statement for the proposed Gate-way Pacific Terminal at Cherry Point have issued a summary of close to 125,000 public comments gathered regarding the scope of impacts to be studied.

Whatcom County, the Wash-ington Department of Ecology and the U.S. Army Corps of Engi-neers collected comments online and in a series of public meetings during the 121-day scoping pro-

cess between last September and January.

In a nearly 140-page report, the agencies have split their sum-mary into sections covering the outcomes of the seven public meetings held around the region during the comment-gathering period, the comments themselves organized into 20 different areas of concern, comments collected from tribal and government agencies, as well as from inter-est groups or business groups, and comments covering possible alternative actions.

The summary report and addi-

tional appendices can be viewed here: pnw.cc/kzooV.

One important note to make is that the comments summarized in the report are portrayed as they were provided to the co-lead agencies, meaning they might not have yet been fully vetted for fac-tual accuracy. Not all comments in the summary will actually be part of the final EIS.

Gateway Pacific Terminal, proposed by Pacific International Terminals, a subsidiary of SSA Marine Inc. of Seattle., is expected to eventually be able to store and export up to 54 million tons of

dry bulk commodities annually, including coal, grain, iron ore, salts and aluminum. Coal will likely be its main commodity, and has been a driving source of controversy over the terminal’s construction.

After considering the com-ments, the co-lead agencies will decide what should be studied. The EIS is expected to evalu-ate alternatives to the terminal’s construction proposal, poten-tially affected resources, possible adverse impacts of various alter-natives, as well as potential means to avoid, minimize and mitigate

effects of the proposals, according to a press release from the co-lead agencies.

The “scoping” process will not address whether the terminal should receive various permits needed for construction. Those decisions will be made by a number of different government agencies, including the Whatcom County Council, after the EIS has been completed, which is expect-ed to take at least one year.

The co-lead agencies will seek another round of public com-ments once a draft of the EIS has been completed.

Gateway terminal scoping officials release comment summary

WATERFRONT | Cost of toxic mercury cleanup rising

A cleanup crew with the Washington Department of Ecology uses a small, specialized vacuum to suck up large beads of mercury found underground on Bellingham’s central waterfront. Most of the toxic-tainted soil is actually sucked up with a high-powered vacuum truck. Originally, the project was expected to cost approximately $1.8 million. The Port of Bellingham is now estimating it might cost up to $3.2 million, because of the increased digging and mercury treatment. The work should be completed by summer. PHOTO COURTESY OF THE WASHINgTON DEPARTMENT OF ECOLOgY

When Western Washington University hosted two simultane-ous college basketball tourna-ments from the NCAA Division II West Regional, the events provided an estimated $1 million boost to Bellingham’s economy, according to university athletic officials and the local tourism board.

WWU hosted games for both the men’s and women’s tourna-ments at the school’s Carver Gym. More than 11,000 people packed the facility for the events, including fans from opponent schools such as Chaminade (Honolulu, Hawaii) and Grand Canyon University (Phoenix, Ariz.). The tournaments brought nearly 250 coaches and athletes to Bellingham, along with an estimated 2,000 to 3,000 fans and supporters.

The $1 million estimate came from tallying the estimated num-ber of visitors over the course of the tournaments, and then factor-ing a per-diem eating and dining expense for each of those visitors. It did not, however, factor in the potential additional boost to local retail businesses, meaning the final impact is likely greater.

“I can’t remember any Division II school hosting both men’s and women’s regionals the way we did, but it was a testament to not only the teams and coaches, but our staff and the city of Belling-ham as well,” Western Washing-ton University Athletic Director Lynda Goodrich said.

Both the men’s and women’s team advanced into the Elite Eight bracket in the Division II tournament, the men reach-ing the national semifinals. The women’s team reached No. 5 in the NCAA national rankings by the end of its season.


Hosting nCAA tourney games fed $1M to local economy, WWu officials say



bellingham already has several hotels with quality rooms and conference facilities, but the developer selected

to build a new Holiday Inn next door to the Bellingham International Airport thinks there is room for more.

“There is still a need and I think that need will be met within this facility,” Dan Mitzel, chairman and managing member of Hotel Services Group LLC, a Mount Vernon-based company, said. “I think that the bar is being raised in the quality of rooms in the Bellingham market, and we want to raise it even further.”

The Holiday Inn proposal is mov-ing ahead after the Port of Bellingham Commission voted, 2-1, in early April to approve a preliminary letter of intent from the project’s developer.

Hotel Services Group plans to build the hotel on about 3.77 acres of port-owned property on Mitchell Way, just south of the Pacific Cataract Laser Institute and across the street from the airport’s commercial terminal. The 156-room hotel will include a full restaurant with its own separate entrance, an indoor pool, underground and surface parking, as well as about 7,000 square feet of conference rooms and

meeting space, which will range from smaller board rooms up to a full-scale ballroom capable of hosting larger events, Mitzel said.

The construction cost will be about $18.5 million. Once operational, the hotel and connected restaurant could employ up to 100 people, according to Shirley McFearin, the port’s real estate director.

Commissioner Michael McAuley cast the dissenting vote on the proposal’s approval. McAuley said he supported the hotel development, but just not at the site that was chosen as its future location. He said he would prefer to leave the currently vacant land on the east side of Mitchell Way empty to serve as a “visual buffer” between the airport and the freeway, in part to help minimize negative impacts of the airport’s recent growth that has been reported by some res-idents who live in nearby neighborhoods.

Yet the location was a deciding factor for Hotel Services Group, Mitzel said. The property will allow hotel guests to walk directly to the airport’s terminal instead of having to take a shuttle, as is the case with many other airport-adjacent hotels, he added.

The site also allows for good visibility from southbound traffic on Interstate 5,

Mitzel said.Both Ken Oplinger, president of the Bell-

ingham/Whatcom Chamber of Commerce and Industry, and Loni Rahm, president and CEO of Bellingham Whatcom County Tourism, spoke during the public com-ment portion of the April 2 meeting and urged the port commission to approve the plan, saying the Holiday Inn would bring tremendous benefits to local business and

tourism.“The airport is a very strong economic

engine for the community,” Oplinger said. “I think this is another great piece to that.”

Now that the letter of intent has been approved, the port and Hotel Services Group will determine the final leasing terms for the development. The port com-

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A preliminary conceptual design of the proposed Holiday Inn at the Bellingham International Airport. Final design parameters must be approved by the Port of Bellingham Commission before construction begins. ARTWORK BY RICK MULLEN | COURTESY OF THE PORT OF BELLINgHAM

Mount Vernon-based developer proposes 156-room Holiday Inn within walking distance of airport terminal. Port Commission to vote on final lease approval in June.

HOTEL PLAn MOVES FOrWArD

HOTEL | PAgE 9


Allegiant Air has announced plans to reintroduce nonstop service between Bell-ingham and Reno, beginning June 6.

The new flights, between Bellingham International Airport and Reno-Tahoe International Airport, will operate twice weekly, according to the airline. Introduc-tory one-way fares are expected to start at $69.99.

“We are pleased to bring another afford-able and convenient travel option to the residents of Bellingham,” said Andrew C. Levy, president of Allegiant Travel Com-

pany, the owner of Allegiant Air. “We are confident the Bellingham community will appreciate the convenience of flying nonstop to Reno-Tahoe and the value of bundling their air, hotel and car rental res-ervation together.”

The airline has previously offered twice weekly Bellingham-Reno flights, but dropped the route in April 2009. More information on flight times and reserva-tions can be found online at www.allegiant.com. —BBJ Staff Reports

mission is expected to vote on a final agreement in early June.

The port has been in search of a hotel developer for the Mitchell Way site since last fall. After sending out a “request for qualifications and vision,” the agency said it received four written proposals from national-brand affiliated hotels.

In addition to the proposal from Hotel Services Group, Shirley McFearin said pro-posals were also submitted by Erck Hotels Corp. of Missoula, Montana, for a Hilton Garden Inn, a local developer represented by Dave Ebenal for a Cambria Suites hotel, and a company called Architecturally Dis-tinct Solutions of Kelowna, British Colum-bia, for a Wyndham-brand Wingate Hotel.

A selection team reviewed the four pro-posals and interviewed the respondents before selecting Hotel Services Group, which currently operates eight national-brand hotels in western Washington, including InterContinental Hotels Group, Hilton and Best Western.

Port Commission President Jim Jorgens-en supported the proposed location for the planned Holiday Inn.

“I’m excited about the location along the freeway,” Jorgensen said. I think it’s good exposure for the airport and the hotel.”

Commissioner Scott Walker said he thought that Hotel Services Group’s plan to include underground parking in its development set it apart from the other proposals.

Mitzel said the new Holiday Inn will likely include some type of “stay-and-park” service, where hotel guests can park their cars for extended stays prior to flying out of the airport.

Al Reingold, the corporate director of brand management for Holiday Inn Brands, said the high volume of leisure passengers at the Bellingham International Airport makes the site a prime location for a Holiday Inn.

Reingold added that he expects the new hotel will have a high volume of Canadian guests. The significant increase in passen-ger levels at the Bellingham airport since 2004 has been fueled largely by Canadians.

Ed Shaw, a regional director for Inter-Continental Hotels Group, said his com-pany has wanted to build a Holiday Inn in Bellingham for several years. Bellingham already has a Holiday Inn Express, one of 11 brands InterContinental manages, cur-rently located on Meridian Street.

He added that among the company’s various markets, hotels adjacent to airports consistently outperform those in other locations.

As the hotel development plan moves forward, a $38 million renovation and expansion on the commercial terminal at the Bellingham International Airport con-tinues. An expanded baggage claim area and a new baggage carrousel are expected to open before summer begins.

Hotel Services Group will be respon-sible for completing all improvements at the hotel site, including surface and sub-surface parking, at its own expense. Construction at the site would start by May 2014 and improvements would need to be completed within 18 months, according to the agreement.

The agreement also states that the hotel’s final design must be approved by the port prior to any construction.

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HOTEL | FROM 8

If approved, $18.5 million development could be completed by fall 2015

Scotty Browns Airport Restaurant, which opened last year in the Bellingham International Airport, plans to add 526 square feet to the restaurant itself and another 576 square feet at the airport for office and storage space.

The Port of Bellingham’s Board of Com-missioners recently approved the restau-rant’s lease modification.

“We are expanding due to the enormous success of the restaurant in the terminal,” said Scotty Browns Manager Jason Cooper. “The airport has been a great addition to our restaurant brand, and has been well received by the Canadian public due to our association with Browns Restaurant Group.”

The restaurant is located in the secure waiting area of the airport’s terminal. The restaurant expansion is expected to be completed by the end of April.

With the expansion, Scotty Browns will occupy nearly 2,000 square feet in the airport, not including the new office and

storage area. It currently seats about 80 people, but will be able to seat more after the expansion.

Scotty Browns employs about 30 workers and spent more than $1 million in building its facilities.

Because restaurant expansion construc-tion is occurring behind a new wall in the terminal, customers will not see the new space until it is complete, and construction will not impact daily operations, Cooper said.

The airport is currently undergoing a $38 million terminal expansion, which includes work to add additional restaurant space.

Scotty Browns also has a location in Bellingham’s Barkley Village, which opened in 2009.

The Vancouver, British Columbia-based Browns Restaurant Group, which operates

Scotty Browns, runs 14 restaurants in Can-ada, as well as the locations in Bellingham.


Scotty Browns Restaurant expands in Bellingham airport terminalCanadian restaurant brand has seen

success at airport since opening in 2012

An Allegiant Air jet at the Bellingham International Airport in April 2012. The airline is re-starting direct flights between Reno and Bellingham. EVAN MARCZYNSKI PHOTO | THE BELLINgHAM BUSINESS JOURNAL

Bellingham-Reno flights returning

keep up-to-date on developments at the Bellingham international airport at BBJToday.com


Sargento Foods will begin bellingham layoffs in May

Sargento Foods Inc. plans to begin lay-offs on May 3 for at least 34 employees at its soon-to-close facility on Bellingham’s waterfront, according to a notice filed with the Washington State Employment Secu-rity Department.

The company announced the closure of its 65,000-square-foot Bellingham facility late last month. Operations at the facility are expected to end within the next 9-16 months, and a final closing date should be announced later this spring, according to Sargento.

Ultimately, up to 54 local jobs are expected to be lost through the closure.

Sargento has said the decision to close the facility was due to several factors, one being the Bellingham plant’s primary customer not renewing its contract with

Sargento, which expires at the end of the year. The company said it has developed a transition and training program to help its employees find other work in the Belling-ham area.

Sargento was founded in 1953. Its head-quarters are in Plymouth, Wis. The food producer is best known for its line of pack-aged cheeses.

recent WWu grads having more luck finding first jobs

The job market for recent Western Washington University graduates is improving, according to the school’s annu-al employment-survey report, the latest version of which was recently released by WWU’s Career Services Center.

Eighty percent of bachelor’s degree recipients from the WWU class of 2011-2012 reported finding jobs within six

months of graduation, compared with 75 percent from the previous year. Field-relat-ed employment increased from 47 percent to 51 percent.

Average starting salaries for recent WWU graduates jumped 17 percent to $38,741, in the latest survey.

Top employers of recent WWU bach-elor’s degree graduates include: Boeing, Amazon, Microsoft, AmeriCorps, Nord-strom, Target, Costco, Ernst and Young, Starbucks and the Bellingham School District.

The value of internship experience was again supported by this year’s survey results. Graduates with internship experi-ence were 23 percent more likely to be employed within their field of study, were 7 percent more likely to have a job within three months of graduation, and had a 5 percent higher starting salary, according to the report.

St. John Glass purchased by longtime employee

St. John Glass in Bellingham has been bought by sales manager Newton Bouma, who has been with the company since 2003.

The business, which is located at 804 Dupont St., offers residential glass and window replacement, custom glass design, auto glass replacement and rock-chip repair, along with other services. It has been locally owned and operated since 1945.

Bouma purchased St. John Glass in Feb-ruary, according to a press release, after the company’s former owner chose to retire.

TEDx event coming to bellingham in november

A local version of the popular TED con-ference will be held in Bellingham on Nov. 12.

TEDxBellingham’s inaugural event, titled “Here by Choice,” will be held from 10 a.m. to 5 p.m. at a yet-to-be-determined loca-tion.

Event organizer David Wiggs is cur-rently seeking sponsors, speakers, perform-ers and volunteers. Ticket information for the invitation-only event will soon be announced.

Wiggs said he is bringing the TEDx event to Bellingham to share with the world the local community’s version of “ideas worth spreading,” which is the slo-gan for the global TED conferences.

“We are fortunate to live in a very special place, with incredibly talented people, and I look forward to seeing, hearing and feel-ing how each speaker interprets our “Here by Choice” theme,” Wiggs said.

TED, which stands for technology, enter-tainment and design, was first held nearly three decades ago. The now-annual con-ference has been held each year in Long Beach, Calif., although organizers plan to celebrate the event’s 30th anniversary in 2014 by holding the conference in Vancou-ver, British Columbia.

While TEDx events receive general guid-ance from the TED organization, a non-profit group that organizes the annual TED conference and also awards the TED Prize, they are independently organized.

Firehall Cafe in Lynden hosts grand opening

The Firehall Cafe, located in the Jansen Art Center in Lynden, celebrated its grand opening during the first weekend of May.

The Firehall Cafe specializes in gourmet breakfast sandwiches, grilled panini sand-wiches, soups, salads, wraps and appetiz-

ers, with vegetarian and gluten-free options available. Beverages include a full line of espresso drinks featuring Bellingham-based Tony’s Coffee, craft beers on tap from Bellingham’s Kulshan Brewery and a variety of Washington wines.

“We’re emphasizing local products whenever possible, including berries from Enfield Farms of Lynden,” Sean Beanblos-som, cafe manager, said. “We’re also the only restaurant in downtown Lynden with an outdoor deck that has views of Mount Baker, which people are enjoying as the weather improves.”

Beanblossom, a lifelong Lynden resi-dent, completed the culinary program at Edmonds Community College and has worked in various restaurants across the county.

The Firehall Cafe, located at at 321 Front St., is open from 8 a.m. to 5 p.m. Mondays through Wednesdays, 8 a.m. to 8 p.m. Thursdays through Saturdays, and 11 a.m. to 5 p.m. on Sundays.

Local Data Doctors franchise spins off into new company

A Bellingham-based Data Doctors computer service business has reached an agreement with the national franchise to become a new independently owned com-pany under the name Ovation Technical Services.

The company, which was previously known as MJK Services Inc., is located at 1019 Iowa St., and has been in business since 2006. It provides a full range of com-puter technology-related services for busi-ness and residential customers, including computer repair, networking, data backup and protection, security and monitoring.

Under its agreement with Data Doctors Franchise Systems Inc., which is effective immediately, Ovation will be able to offer its services to customers in Whatcom and Skagit counties.

“We are very pleased with this develop-ment. We are now in our seventh year of operation in Bellingham, and have established a solid reputation as a reliable provider of quality, affordable computer services—one of the largest in the region,” Mark Knittel, the company’s owner, said. “Over time our focus has shifted more toward business customers, and the major-ity of our growth has come from that area.”

Ovation Technical Services can be reached at its new phone number: 360-306-5261.

Ferndale biorefining firm earns $4.6 million federal grant

A Ferndale company has been awarded a $4.6 million grant by the U.S. Department of Energy to develop an innovative pilot-scale biorefinery that will test renewable biofuels as a domestic alternative to power cars, trucks and planes that meet military specifications for jet fuel.

Mercurius Biorefining Inc. of Ferndale will build and operate a pilot plant that will convert cellulosic biomass, including mate-rials such as wood chips, into biofuels.

The Mercurius Biofuels plant is part of an $18 million investment by federal energy officials for four projects across the country that will demonstrate technologies to cost-effectively convert biomass into advanced drop-in biofuels and assist these organizations to scale up the processes to commercial levels.

Karl Seck, the company’s president and CEO, told The Bellingham Herald that the biorefinery plant for the project will be

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built in Indiana, although the company’s headquarters will remain in Ferndale. Mercurius is joined by several partner organizations, including Purdue University, Pacific Northwest National Laboratory and Incitor.

U.S. Energy Secretary Steven Chu said, in a statement, that advanced biofuels are a key component to the Obama Administra-tion’s strategy to reduce American depen-dence on foreign oil, improve energy secu-rity and protect the nation’s air and water.

“The innovative biorefinery projects announced [April 22] mark an important step toward producing fuels for our Ameri-can military and the civil aviation industry from renewable resources found right here in the United States.” Chu said.

Democratic U.S. Sen. Patty Mur-ray of Washington state also praised the announcement in a press statement.

“Creating a biofuels industry that will mean jobs for our state and energy inde-pendence for our nation requires us to bring innovators together, and this critical investment will continue that process,” Murray said.

State lawmakers target “zapper” tax-cheat software

A new bill recently passed by both the state House and Senate will target retailers who use illegal “zapper” software to erase cash sales from cash registers, and the state Department of Revenue says the law will mean bad news for tax cheats.

The House unanimously passed Senate Bill 5715, which makes it a class C felony to commit tax fraud using automated sales suppression software, commonly known as “zappers.” The Senate earlier unanimously passed the bill, which now goes to Gov. Jay Inslee for his signature.

Under the legislation, persons convicted of selling, installing, or designing zappers will be subject to an additional mandatory fine that is the greater of either $10,000 or

the amount of tax that the retailer didn’t pay. It also gives the Department of Rev-enue the authority to revoke the business licenses of any business found using such devices and not reinstate a business unless it agrees to five years of electronic moni-toring.

Zapper use has spread across the coun-try and Canada, according to revenue offi-cials. The software alters cash transactions from electronic cash registers and point of sale systems so that the reduced sales can’t be tracked later using traditional audit methods.

Businesses found to be using zapper software typically have been restaurants and other small businesses that are pre-dominantly paid in cash. They collect sales tax from customers but keep it rather than remitting it to the state as required by law.

Revenue Director Carol K. Nelson said this legislation raises the stakes for busi-nesses that keep sales tax they collect from customers and understate their gross income so they pay less business and occu-pation tax.

“Customers have the right to expect the sales tax they pay to be returned to them in the form of state and local services such as schools and law enforcement,” Nelson said.

State Rep. Ed Orcutt, a Republican from Kalama, who was prime sponsor of a House version of the zapper legislation, said the zappers simply have no legitimate use.

“They are used solely to defraud the state of Washington and the U.S. Govern-ment, and this bill will hold them account-able and help deter this illegal activity” Orcutt said, in a statement. “In doing so, we’re making sure the businesses that are collecting sales tax from customers are remitting that to the state, and that in turn protects taxpayers.”

Thirteen other states have passed legisla-tion targeted at sales suppression software.

Timeline released for legal pot sales’ implementation

The Washington State Liquor Control

Board has released its timeline for imple-menting Initiative 502, the ballot measure passed last year that legalizes recreational use of marijuana and allows licensed stores to sell pot to adults 21 years or older.

Directors with the agency said they are on track to have rules regarding I-502

written by a Dec. 1 deadline, which is man-dated by the new law.

Liquor board spokesperson Brain Smith told The Associated Press that the agency plans to issue licenses for marijuana grow-

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The Darigold processing plant in Lynden completed installation of its new milk powder dryer, after a fire in February 2012 damaged the old one. The new dryer measures 22 feet in diameter and is 108 feet tall, and is enclosed by concrete walls and insulated metal panels that measure up to 130 feet. It will be able to produce 16,800 pounds of powder per hour, approximately 6 percent more powder annually than the dryer it replaced. It will also not only be able to produce condensed milk powders, such as non-fat dry milk powder and skim milk powder, but will be also be able to produce whole milk powder for domestic and export markets.The added capacity an output of the new dryer is expected to boost business for local and regional dairy farmers. “We will now begin the process of initial start-up runs through the new dryer,” Jim Wegner, Darigold’s president and CEO. “During this process, we will be fine tuning

the equipment and completing our employee training. As a dairy cooperative focused on its members and providing high quality dairy products for our consumers, we at Darigold are thrilled to bring this much needed capacity back online, continuing to create a secure market for our owners’ milk.”

new and improved milk powder dryer in Lynden expect to boost business for dairy farmers



H igh-profile cyber attacks, includ-ing recent ones that have targeted Google, allegedly destroyed nuclear

centrifuges in Iran and brought down the websites of major financial firms JP Mor-gan Chase and American Express, have led more people to realize what security experts have been saying for years: In the digital era, cyberspace is a battlefield.

Attackers’ impact on the companies and governments targeted can be costly, many times involving the loss of sensitive intel-lectual property.

Few people likely understand the stakes better than Corrinne Sande, coordinator for the Computer Information Systems program at Whatcom Community College in Bellingham.

Since joining the college in 1999, Sande has built the school’s CIS program in one that regularly earns national recognition and has expanded its educational offer-ings. In August 2012, WCC was given a $500,000 grant from the National Science Foundation to help develop a new two-year “information assurance” degree, with West-ern Washington University and the Univer-sity of Washington developing similar four-

year degrees in tandem. Sande said the CIS pro-

gram is a vital component in training future professionals to secure sensitive informa-tion in cyberspace.

There is an increased demand for IT security professionals in a variety of industries. What do think is causing that?

Since everything is now connected and there’s a lot more commerce done on the Internet, there’s more demand to secure the net-works that are connected. For most companies, their most important asset is their data, and there’s a lot of criminals out there who would like to steal that data.

In addition, it’s actually a national secu-rity issue in that cyberspace is considered a fifth domain of warfare. We have air, sea, land, we have outer space, and we have the Internet.

All those things combined, along with our critical infrastructure like refineries, electricity and so on, they need to be pro-

tected. So there’s multiple reasons that we need these people that have these skills.

When it comes to IT security risks for pri-vate companies, what do you think should be among the biggest concerns?

In this age now, the most important thing that the companies own is their information—so their recipes, formulas, databases, customers, credit cards and things like that. At a minimum, any IT person they have at their company should have some security training.

There’s also this idea that an IT team itself is solely responsible for the security of a network, but the fact of the matter is you need the entire company. All employees need to be invested in this. One of easiest ways to break into a network is through social engineering, and that’s done through using an employee who doesn’t understand security.

Also, a lot of attacks are insider attacks. So for example, even if you have a very secure network, if you have an employee who wants revenge, then you’ve got anoth-er problem. One common thing that has happened is an employee is terminated but their network access is not, so that employ-

ee will then be able to later log in from home. You’ll also have situations where a company doesn’t even have a security policy, or they have a security policy and they don’t enforce it.

How important is it for a company to hire talented and well-trained IT security pro-fessionals?

It’s really important. An IT person typi-cally, like a network manager, has total access to all of the information about the employees and the database. You have to make sure that not only do they have the training, but also make sure that they are someone you can count on for that. It’s a sensitive position.

And a lot of things that happen [within a computer network] are not because someone intentionally did something, it’s because they didn’t know any better. That’s where the training comes in.

I think that the biggest mistake people make is assuming that an IT team is secur-ing their networks, because it’s really every-body in a company that should have some kind of involvement.

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A long-empty section of a historic building in downtown Bellingham could soon develop into a center for

digital startups and entrepreneurs.Digial marketing firm Red Rokk Inter-

active and the BIG Idea Lab, along with partners Pacific Continental Realty and the nonprofit Technology Alliance Group for Northwest Washington, announced in March the opening of a new collaborative office space designed to support high-tech companies.

Creators of the 4,000-square-foot space, located on the top floor of the Crown Plaza building at 114 W. Magnolia St., will initially combine the shared space with other groups, including the Bellingham Angels investment group, a longtime sup-porter of local technology startups.

Tyler Byrd, president and CEO of Red Rokk Interactive, said the idea was orgin-ally developed after his company saw a need to expand. Red Rokk is the lease holder on the space, which is managed by Pacific Continental Realty.

“We needed a bigger space as a group, so this fits our needs really well,” Byrd said.

Byrd and Shawn Kemp, a tech entre-prenuer who leads the BIG Idea Lab, envi-sion the office, which has space for about 40 people, to be the starting point for what they hope will morph into Belling-ham’s central entrepreneurship base—one that provides a collective environment for new technology companies to get off the ground and a new local coworking space.

Kemp said the idea was to support, with both physical office space and the opportunity for collaboration with other startups, companies with scalable busi-

ness models, ones that can quickly grow revenue without increasing their overhead costs.

A desk in the office’s coworking area rents for $150 per month. The flex-seating arrangement allows a member to come in and use any one of the open desks, which include computer and Internet access, along with other shared amenities.

Dedicated offices, most of which ring around the center floor area, start at rents of $550 per month.

The coworking model is slowly catch-ing on locally.

In addition to a coworking space, called The Pond, on Duport Street in Belling-ham, the co-founders of local screen-printing company INNATE have plans to open a coworking office at their facility on State Street.

Outside Bellingham and Whatcom County, the collaborative workplace model is gaining popularity in larger met-ropolitan areas.

A 2012 survey by Deskmag, an online magazine that covers the coworking movement, estimated that five new coworking offices open worldwide every business day.

Byrd said he thinks demand for coworking space in Bellingham is largely driven by the degree of awareness one has that such spaces exist. Building that awareness is the most difficult part of creating centers to support local entrepre-neurship, he added.

Kemp said he thinks coworking has great value as a transitory model, where professionals just starting their companies can have a space to work through the initial phases of growing their businesses before becoming more established.

Ed Munro, a marketing and communications consultant for Red Rokk Interactive, works at his desk in the new entrepreneurship center in downtown Bellingham. EVAN MARCZYNSKI PHOTO | THE BELLINgHAM BUSINESS JOURNAL

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ers and processors on Dec. 1, instead of in summer and fall as a prior implementation timeline had indicated. With that, legal marijuana sales in Washington will prob-ably not begin until at least spring 2014.

The board will send draft rules on the new law’s implementation to stakeholders for comment in mid-May. Should the draft rules need substantial changes after com-ments are submitted, the license issuance date could be pushed to later in December, according to the board.

I-502 timeline

Mid-May: Send draft rules to stakeholders for comment

Mid-June: CR102 (draft rules) filed for the Producer, Processor and Retailer Licenses. The CR102 allows the WSLCB to seek pub-lic comment on draft rule language devel-oped with input from the public during the initial comment period. Small Business Economic Impact Statement issued with CR 102.

Late July: Public hearing(s) on rules for the Producer, Processor and Retailer Licenses allowing the public to comment on the draft rule language. Rules adopted.

Late-August: Rules become effective.

September: WSLCB begin accepting Pro-ducer, Processor and Retail License appli-cations.

Dec. 1: Rules are complete (as mandated

by law). WSLCB begins issuing Producer, Processor and Retail licenses to qualified applicants.

bornstein Seafoods gives $100K to bTC’s new fishery building

Bornstein Seafoods has donated $100,000 to Bellingham Technical College’s Fisheries and Aquaculture Sciences pro-gram’s new building campaign, according to BTC’s Foundation.

The hatchery portion of the new build-ing in Bellingham’s Maritime Heritage Park, called the Perry Center for Fisheries and Aquaculture Sciences, will be named in the company’s honor as The Bornstein Hatchery dedicated to Myer J. Bornstein.

“Naming the hatchery of this building for Bornstein Seafoods honors the Born-stein family and specifically Jay’s significant contributions to Bellingham’s waterfront and fishing industry, and to the national seafood business,” Patricia McKeown, BTC’s president, said. “BTC is very appre-ciative of the Bornstein’s generous gift and proud to have a permanent reflection of the Bornstein’s involvement with our col-lege and programs at the Perry Center.”

BTC’s Fisheries and Aquaculture Scienc-es program has operated successfully for 34 years in Maritime Heritage Park, providing an educational path for students with an interest in becoming stewards of the envi-ronment, enhancing and protecting fisher-ies and aquaculture resources, and learning and applying science to the field.

Due to severe structural issues, the building that housed the Fisheries and Aquaculture Sciences program was no longer operational, so BTC launched a capital campaign to raise funds to build a

new building in the existing location. In addition to a $2 million matching state allocation, funding has also come from contributions from local businesses, indi-viduals, civic groups, BTC staff, and public/private foundations and college funds.

The new building should be completed and ready for classes by September.

Bornstein Seafoods has been processing seafood for more than 79 years on the shores of Bellingham Bay. Myer J. Bornstein took the helm of the company in 1980 from his father, who founded the firm in 1934. He expanded Bornstein Seafoods further into Washington, Oregon, northern California and Canada.

Today, the company is run by Myer J. Bornstein’s three sons, Kyle, Colin and Andrew Bornstein.

Columbia banking System acquires West Coast bancorp

Columbia Banking System Inc., which operates Columbia State Bank, has com-pleted an acquisition of West Coast Ban-corp, parent company of West Coast Bank.

Columbia operates 157 branches in 38 counties in Washington and Oregon. Its Bellingham location, at 211 E. Holly St., serves as a commercial lending base for Whatcom and Skagit counties.

With the merger, Columbia’s total assets now exceed $7 billion, according to the company.

“We are delighted to welcome the cus-tomers, employees and shareholders of West Coast to Columbia,” said Melanie J. Dressel, president and CEO. “The merg-ing of Columbia and West Coast moves us significantly toward our stated objective of being the leading Pacific Northwest region-al community bank. The complementary aspects of the companies’ businesses, including customer focus, geographic coverage, business orientation and compat-ibility of management and operating styles,

makes the merger a natural fit.”Columbia also appointed David A.

Dietzler, a former director of West Coast, to serve on the boards of directors for the Columbia company and Columbia Bank.

Tax refunds help state recoup thousands in overpaid jobless benefits

The state’s Employment Security Depart-ment is saying the federal tax-filing season is turning into debt-repayment season for Washington residents who owe the depart-ment money.

The first two weeks of IRS disburse-ments netted $446,380 to the state agency from the Internal Revenue Service under the federal Treasury Offset Program, or TOP.

The program allows Employment Secu-rity to cross-match its computer files with IRS files and flag individuals who are delinquent in paying back benefit overpay-ments. The department can claim any tax refunds they have coming, after the IRS, delinquent child support and other federal debts are paid.

Additional disbursements will be issued each week.

“While this represents only a small dent in the total benefits debt, it sends a signal about the importance we place on running a fair and solvent unemployment-insur-ance system,” said Employment Security Commissioner Dale Peinecke, in a press

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Northwest Indian College plans to begin construction on its 12,710-square-foot Coast Salish Institute Building in May, while work continues on a nearly $3 million library and technology building that broke ground in February.The library will be the eighth building constructed on NWIC’s main campus as a result of the college’s $44 million capital campaign, which began in 2005.The building is scheduled to be completed by January 2014. The Coast Salish Institute Building is expected to be finished by June 2014.In the almost 11,000-square-foot library and technology facility, which was designed by Zervas Group Architects, the northern section of the building will house the college’s IT department, staff work rooms, labs and offices. The southern portion will house traditional library spaces, teens’ and children’s rooms, special collections, study areas and a large open space with books and

magazine stacks.Valerie McBeth, NWIC’s library director, said that while she will miss aspects of her current space, which was built around 1930, she and her staff are excited for the new building.“Things will be a lot more convenient,” McBeth said, in a press release. “The layout is going to be much nicer and we will again be located back in the center of campus activity. With so much having moved to the new campus, we are now on the periphery.”In the new building, the library will be brought under a single story and will have more space. NWIC’s library occupies less than 5,000 square feet now, and will fill 6,500 square feet in the new building.Funding for the building came from contributions by the U.S. Department of Education, Lummi Indian Business Council, and the U.S. Department of Housing and Urban Development’s Tribal Colleges and Universities Program.

northwest Indian College’s new campus library on track for completion by January 2014


release. “It’s a good start, and we expect to recoup even more through TOP in the months ahead.”

In December, Employ-ment Security notified 25,000 people that their 2012 income-tax refunds might be intercepted to repay benefits they shouldn’t have received. At that time, they owed a total of $61.7 million in delin-quent debt.

Many people being tar-geted through TOP claimed unemployment benefits fraudulently. Federal law also allows states to use TOP to recover benefits from people who didn’t dis-close earnings they received while claiming benefits.

Haskell Corp. earns safety award from Corps of Engineers

The U.S. Army Corps of Engineers-Alaska District has selected Haskell Corp. in Bellingham as its Con-tractor of the Year.

Haskell was named dur-ing the Army Corps’ 14th annual Celebrate Safety ceremony in March. The Bellingham company was among 10 contractors and two individuals honored for safety performance in 2012 during the event.

The safety-achievement award is for contractors who demonstrated excel-lence in safety for a project in Alaska during 2012 cal-endar year. Haskell took the top award for phases one and two of a $53 million design and build project to replace two coal fired boil-ers and handling systems at Eielson Air Force Base.

The scope of work included the demolition of the existing boilers, instal-lation of new boilers and all auxiliary equipment to support boiler operation, extensions of the plant controls, electrical systems, glycol and steam systems, emission control equip-ment and new environmen-tal control elements.

Anticipating move, Heritage Flight Museum buys hangar in Skagit

After announcing last December that it planned to leave its home as the Bellingham International Airport, the Heritage Flight Museum says it has now purchased a large hangar at Skagit Regional Airport, several miles west of Burl-ington.

“We had been look-ing at Skagit Regional as

an option for relocation” the museum’s Executive Director Greg Anders said. “This facility came on the market and was seeing a lot of interest. In order to preserve the option to get into a ready-made building that meets all of our space and operational needs, the board of directors decided to take action and not lose the opportunity.”

Museum directors have cited unfavorable lease terms with the Port of Bell-ingham for a new aviation museum that was planned to be built just north of the runway at the Bellingham International Airport. For the past decade, the Heri-tage museum has operated out of a hangar owned by Apogree LLC, a firm owned by the nonprofit museum’s founder, Wil-liam Anders, who is Greg Anders’ father.

According to a state-ment from the museum, it is continuing its reloca-tion search, but anticipates holding Warbird Weekend in June at the museum’s current facilities in Belling-ham.

Heritage Flight Museum is online at www.heritage-flight.org.

How has WCC’s Computer Informa-tion Systems program managed to be so successful?

Probably the main thing is that I’ve always looked at this program as not just a little program at Whatcom Community College, we’re actually part of this nationwide strategy to secure cyberspace. It’s our responsibil-ity to turn out people that are highly skilled.

Also, our program is not just a series of classes that people take. The students in our program have a lot of different opportunities.

We run a free help desk where they fix computers for people. Students can participate in a national collegiate cyber-defense competition. We also have a grant for high school cyber camps, and our Whatcom students serve as mentors.

The main thing is that our focus is not on just this program, but it’s on national initiatives and how we can participate in those. And also that we’re making sure our program is rec-ognized by outside sources as being valuable; that we’re teaching the stu-dents the right things to succeed.

For someone who might have an interest in a career in IT security, what is the best way to get started?

I do tell students when they come in and they’re trying to figure it out that they have to remember that this is a way of life. Working in IT is not a 9-to-5 job. You’re always having to

learn new things. If a person really wants to pursue

this field, in order to do the security for IT, you have to understand how everything works. So I would suggest they take classes in networking, oper-ating systems and hardware, and learn how to secure those things.

In our program we have veterans, and we have people coming back to school to get re-trained because they’ve lost their jobs. So, it’s not a field just for people right out of high school.

For business people without much technical training in IT security, are there some basic tips or lessons that can help keep personal or proprietary digital information safe?

At the very least, don’t click on a link in an email from someone you don’t recognize. You have to just be aware that there are people trying to get into your network and they are using various means.

They can social engineer their way in. So, you might get an email or a phone call from someone saying they need to reset your password, but they need your old one to do it. That’s an oldie, but a goodie.

Then, you can also have phishing attacks, where someone will send you an email [in order to break into your network].

But a lot of things happen just because somebody isn’t aware of everything that could happen. I think it’s important to just increase your understanding of what could happen to your machine and your network.

At the very least you should be

running an antivirus and a firewall on your computers. At our help desk, the majority of machines that come in are infected with something. Either somebody downloaded something from a bad site, they browsed to a bad site or they installed a program from somewhere they didn’t recognize, and they’ve infected their machine.

In a business, there’s simple things that everyone should have, such as an acceptable-use policy for their employ-ees and a security policy. Then they should also enforce those policies.

I’ve seen situations where compa-nies do have policies, but they are never enforced. So for example, pass-words should be changed at certain intervals, and passwords shouldn’t be posted on a sticky note.

Another thing, especially for pri-vate companies, is that they should be careful about what they are putting on their websites.

Because really, when an attacker is doing re-con, the first place they’ll go is to your website to find out about your company.

What information is risky to put on a website?

It’s not so much risky, it’s just that the more information that’s available, the more an attacker can use.

So, an employee directory, for instance, or information about your vendors. It depends on the nature of your business, but if you’re using a particular type of device in your network and you put your vendor on your website, then you giving infor-mation to an attacker.

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I recently spent some time with my mom and noticed that she worries a lot about her growing

forgetfulness. And yet, when reminiscing about trips and vacations over the years, her memory is crystal clear.I can relate. I vividly

remember each time my parents loaded up the car, plopped us kids in the back seat or even in the pick up truck bed (seat belts were optional then) and headed out for a camping trip, a jeep club rendezvous (this is when 4-wheel drive first became the rage), or a family reunion. Two of my earliest

childhood memories are attending the Seattle “World’s Fair” in 1962…and fighting with my sister over pretty much everything on a long and hot drive to Disneyland the following year. I didn’t truly appreciate the necessary

“patience quotient” of a road warrior parent until I was wrestling with my own kids – trying to make up car games to prevent the inevitable “are we almost there?” before finally acquiescing to the temporary but incredibly welcome silence of personal CD players. (The silence lasted until one or both would sing along to their favorite music…at full volume).

This isn’t intended to discourage you from family travel. On the contrary: The U.S. Travel Association (USTA) completed a study which indicates “few memories are better than those

from family vacations.” The study went on to show

that nearly every child surveyed (93%) agreed

that on vacations “I get to spend quality time with my parents.” And the majority of children (53%) “strongly agree” that “vacations bring my family closer together.”Even teenagers,

who often give the impression

they would rather be ANYWHERE but

traveling with their parents strongly agreed

that on family vacations they get to “see and do new things that

I’ll remember for a long time” (64%) and that some of their “best memories are of things that I did during a family vacation.” (49%)Travel experiences also create shared

family memories that sometimes result in wildly differing perspectives. My telling of the time we ended up driving down a narrow alley (barely clearing the parked cars on either side) in Krakow, Poland only to arrive at a newly walled in dead end, is far funnier than my husband’s. Of course he had to attempt to drive out of the same tight alley backwards…

all the while I was defending my map reading skills which certainly did NOT indicate the road would abruptly end two blocks before our hotel. Our daughters alternated between hysteric laughter and foreign language traffic control. Or there’s the time we turned too

soon and ended up driving down a train track in Bratislava. Also not one of my better navigational moments – but the story (and accompanying pictures) has become a favorite family “legend”.Not surprisingly, the same USTA

research shows that family vacations give parents an opportunity to share their own childhood. More than half of the adults surveyed reported that “I have fond memories of vacations that I took as a child, and I want to create similar experiences for my family.”With busy schedules crammed full of

activities, a solid majority of parents reported that “family vacations are one of the few things that families do together.”Three-quarters (76%) of parents

surveyed believe that family vacations are worth the time and money because they “give my child experiences that they will remember years from now.” The role of Bellingham Whatcom

County Tourism is to encourage visitors to come to our region because of the crucial economic benefits and job creation tourism generates. But since May 4-12 is National

Travel & Tourism Week (and the month of May is the unofficial “kick off” of family travel season), it seems like a great time to remind us all about the value of travel.

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May 1 • 10:00 am Toddler Art • 10:30 am Free Concerts Bellingham Music ClubMay 2 • 12:30 pm Brown Bag: Bellingham Sings: Allegra May 3 • 8:30 am Gateway to your 5 star life May 4 • 2:00 pm” Lilly’s Purple Plastic Purse”, presented by The Neighborhood Playhouse • 11:00 am Finn River Cider TastingMay 5 • 8:00 am Community Breakfast • 8:00 & 10:00 pm Improv Comedy - Upfront Theatre May 7 • 6:00 am Dine Out for Maple Alley InnMay 8 • 6:00 pm Tree of Life Sanctuary Colleague ConnectionMay 9 • 6:30 pm AHA! After Hours ArtMay 10 • 8:00 & 10:00 pm Improv Comedy - Upfront Theatre May 11 • 10:00 am 2013 Springfest Mother’s DayIntroduction to the Qabalistic Tree of Life • 12:00 pm Acro Yoga Immersion WeekendMay 12 • 8:00 am Community Breakfast • 11:00 am PFC’s Opera in Cinema Series: Nabucco (Royal Opera House)May 14 • 8:00 am Monthly Brew Workshop: Protecting Your Business from Cyber Threats • 1:00 pm Understanding Conflict WorkshopMay 16 • 7:00 pm Boynton Poetry Contest Awards Ceremony • 8:00 & 10:00 pm Improv Comedy - Upfront Theatre May 17 • 1:00 pm Docent Tours • 8:00 pm EvermoreMay 18 • 8:00 & 10:00 pm Improv Comedy - Upfront Theatre May 19 • 8:00 am Community BreakfastSAE Baja 2013 • 11:00 am PFC’s Ballet in Cinema Series: Giselle (Royal Ballet)May 22 10:00 am Toddler Art • 2:00 pm FIG Art Club WorkshopMay 25 • 9:00 am The Roadmap to Becoming a Life CoachMay 26 7:45 amS ki to Sea • 8:00 am Community Breakfast May 30 • 1:00 pmDocent Tours • 8:00 & 10:00 pm Improv Comedy - Upfront Theatre May 31 • 10:00 am Toddler Art 1:00 pm Docent Tours • 8:00 & 10:00 pm Improv Comedy - Upfront Theatre

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For nearly a decade the Port of Bellingham has been preparing the old Georgia Pacific Mill site for re-development. The Port has removed over a hundred old industrial struc-tures, completed some early-action environmental cleanups, and under-taken a huge communitywide plan-ning effort.

All of this has been done, in coor-dination with the City of Bellingham and the State Department of Ecology, to transform a vacant in-dustrial site into a new and thriving area. Over the long term, they are envisioning thousands of new jobs, new housing, six new community parks and an extensive waterfront trail network.

The city’s Planning Commission is reviewing the draft planning doc-uments and agreements before making recommendations to the City Council. The City Council and Port Commission likely will vote on these documents by the end of the year.

Port officials believe this is the right time to find a developer, or de-velopers, for the first available par-cels. This month the Port is issuing a Request for Proposals (RFP) for Waterfront District property located in the Downtown section of the site

that will be developed in a mixed-use, urban style. The Downtown portion of the Waterfront District is 37-acres, including parks and roads.

“We are seeking someone now because we want a developer at the table as the final details of the plan-ning documents are determined,” said Port Executive Director Rob Fix. “We have learned from oth-er Northwest public/private devel-opments that the very best projects come from close collaboration.”

The RFP is hitting the streets in early May, with a mid-July response deadline and it includes three development options: a “master developer” for the 10.8 acre site, a developer for adaptive reuse of the old Granary Building, or a devel-

oper for a specific project within the 10.8 acres. The entire Waterfront District, including the former treatment lagoon is 237 acres.

“We have been reaching out to the regional develop-ment community for nearly a year to make sure they are

aware of our project and are ready for responding to this opportunity,” said Port Business Development Director Lydia Bennett. “We are hopeful that we will get responses from qualified developers.”

Development proposals will be ranked based on the capability of the developer; the development concept and the proposed transaction. The Port is seeking developments that generate jobs; work well with sur-rounding neighborhoods; and have a high level of sustainability.

Port staff will review proposals and will make recommendations to the Port’s Board of Commissioners, which will make the final determi-nation in selecting developers. The goal is to select a developer by the end of 2013.

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meetings:3 p.m. on the 1st and 3rd Tuesdays of the month. Agendas are on the Port website.

tHe Port oPerates: Bellingham International Airport Bellingham Cruise TerminalSqualicum HarborBlaine Harbor Fairhaven Marine Industrial Park Bellwether on the Bay Shipping TerminalAirport Industrial ParkSumas Industrial Park


buSInESS LICEnSES13 Nails & Salon Company, 13 Nails & Salon Company, 907 Harris Ave., Bellingham, WA 98225.2907 Mt. Baker Hwy. LLC, 2907 Mt. Baker Hwy. LLC, 2907 Mount Baker Highway, Bellingham, WA 98226.360 Fabrication, Jordan Michael Yoder, 5141 Guide Meridian, Bellingham, WA 98226. Advanced Cleaning Products LLC, Advanced Cleaning Products LLC, 2812 St. Paul St., Bellingham, WA 98226. Afloat, Afloat LLC, 112 Ohio St., Suite 111, Bellingham, WA 98225. Albertson’s #416, Albertson’s LLC, 1650 Birchwood Ave., Bellingham, WA 98225. Alexandra Knezo Licsw, Alexandra M. Knezo, 3031 Orleans St., Suite 101, Bellingham, WA 98226. ALM, Andrea Lynn McKechnie, 2415 Kelly Road, Bellingham, WA 98226. Amy’s Alterations, Amy N. Nguyen, 2829 Meridian St., Bellingham, WA 98225. Ashley N. West, Ashley N. West, 2609 W. Maplewood Ave., Apt. 113, Bellingham, WA 98225. B&S Drywall Construction LLC, B&S Drywall Construction LLC, 2638 Humboldt St., Bellingham, WA 98225. Bay 3 Designs LLC, Bay 3 Designs LLC, 806 Marine Drive, Bellingham, WA 98225. Bayview Home and Yard Services, Debbie Lee Schlichemeyer, 374 Sudden Valley Drive, Bellingham, WA 98229. Be Prepared Training, Russell Nolan Dzialo, 1112 E. Maryland St., Bellingham, WA 98226. Big Fresh Media, Big Fresh Inc., 1344 King St., Suite 202, Bellingham, WA 98229. Black Diamond Construction, Osiel Mazaru Gonzalez-Matar, 2719 James St., Bellingham, WA 98225. Black Pearl, Lailas Black Pearl Restaurants Inc., 1317 W. Bakerview Road, Suite 102, Bellingham, WA 98226. Black Raven Salon, Tamar Cargill, 4000 Flynn St., Spc. 6, Bellingham, WA 98229. Blair Smith, Blair David Smith, 4709 Parkhurst Drive, Bellingham, WA 98229. Boatman Tile, Brent Stuart Boatman, 3 Jubilee Lane, Bellingham, WA 98229. Bundle LLC, Bundle LLC, 907 W. Connecticut St., Bellingham, WA 98225. Canadian Friendly Business, Janet Lee Defield, 1313 E. Maple St., Suite 306, Bellingham, WA 98225. Carmen Som LMP, Carmen Andrea Som, 4152 Meridian St., Suite 105 Unit 373, Bellingham, WA 98226. Cathy C. Hedford dba Reiki Healing Portal, Cathy C. Hedford, 1116 Key St., Suite 103, Bellingham, WA 98225. Cedarside Maintenance Services, James C. Curlett, 3322 Cedarside Court, Bellingham, WA 98226. Chris 4 Math, Christine A. Elzea, 1120 St. Paul St., Bellingham, WA 98229. CK Design Divaz Home Staging, Candyce Lisa Kirbyson, 2657 N. Shore Road, Bellingham, WA 98226. College Pro Painters of Skagit, Igor Alex Samoylenko, 5019 Northwest Drive, Bellingham, WA 98226. College Pro Painters of South Bellingham, Geneva Dane Olson, 2300 Bill McDonald Parkway, Apt. 209, Bellingham, WA 98225. Convergent.io Technologies Inc., Convergent.io Technologies Inc., 5725 Schickler Lane, Bellingham, WA 98226. Creations, Jennifer Eileen Mayville, 3918 Tamarack Road, Bellingham, WA 98226. Cuc Thi Nguyen, Cuc Thi Nguyen, 410 Bakerview Road, Suite 108, Bellingham, WA 98226. Culinary Creations, Colman Management Company LLC, 1210 11th St., Bellingham, WA 98225. D&K Audio Specialties, Douglas Kenneth Ash, 624 Trout Lake Drive, Bellingham, WA 98226. Design By Kerry, Kerry Nickle Thompson, 1706 40th St., Bellingham, WA 98229. Dollar Plus Smoke Shop, Ekam LLC, 4151 Meridian St., Suite 108, Bellingham, WA 98226. Elisabeth K. Kenoyer LLC, Elisabeth K. Kenoyer LLC, 820 11th St., Bellingham, WA 98225. Enrich, Keri Colleen Ridenour, 262 E. Bakerview Road, Apt. 103, Bellingham, WA 98226.

Europa Foods, Europa Foods Inc., 3908 Meridian St., Suite 112, Bellingham, WA 98226. Evergreen Lawns, Alex John Vandergriend, 2401 Elm St., Apt. 10, Bellingham, WA 98225. Evergreen Outdoor Supply, Galen Francis Cobbs, 2317 St. Clair St., Bellingham, WA 98229. Expanding Pathways to Health LLC, Expanding Pathways to Health LLC, 2114 James St., Bellingham, WA 98225. EZ Business Solutions, Siv Kristin Spain, 2014 Julia Ave., Bellingham, WA 98225. Faulkner Investment Services LLC, Faulkner Investment Services LLC, 1010 Harris Ave., Suite 203, Bellingham, WA 98225. Fernando Design, Fernando Green Olvera, 1229 Birch Falls Drive, Bellingham, WA 98229. Francesca’s, Francesca’s Collections Inc., 1 Bellis Fair Parkway, Suite 326, Bellingham, WA 98226. Freehub Magazine, Freehub Media LLC, 501 Meador Ave., Suite 104, Bellingham, WA 98225. G2G Engineering, Gerald Evan Guidroz, 1032 Kenoyer Drive, Bellingham, WA 98299. Garden Green Retirement Development LLC, Garden Green Retirement Development LLC, 1210 10th St., Suite 204, Bellingham, WA 98225. Grand Illusion Floral Corporation, Grand Illusion Floral Corporation, 3634 Home Road, Bellingham, WA 98225. Gwozdz & Hanna, Richard Bernard Gwozdz, 4610 Quinn Court, Bellingham, WA 98226. H&H Acres Farm and Pet, Justin Wayne Hammer, 2764 Mount Baker Highway, Bellingham, WA98226. Hair By Charleen, Charleen L. Hess, 1322 Commercial St., Bellingham, WA 98225. Half-Full Distributing, Half-Full Distributing, 107 Carter Drive, Bellingham, WA 98225.Harbor Bay LLC, Harbor Bay LLC, 514 N. State St. #101, Bellingham, WA 98225. Hard Washington, Hard Washington Cider LLC, 2726 Douglas Ave., Bellingham, WA 98225. Henderson Lawn Care, Douglas Edward Henderson, 1688 Sapphire Trail, Bellingham, WA 98226. Hogen & Associates, Michael Warren Hogen, 3019 Barkley Meadows Circle, Bellingham, WA 98226. Homestudies Northwest, Kristin Mail Barber, 2306 Henry St., Bellingham, WA 98225. Hoppis Real Estate LLC, Hoppis Real Estate LLC, 112 E. Maple St., Suite 102, Bellingham, WA 98225. Horne Consulting, Peter Horne, 1900 Madison St., Bellingham, WA 98225. Inspiring Events, Emily Kristine Norton, 1011 E. McLeod Raod, Bellingham, WA 98226. Intek LLC, Intek LLC, 925 17th St., Bellingham, WA 98225. Irena Rose Lambrou, Irena Rose Lambrou, 1224 Harris Ave., Suite 106, Bellingham, WA 98225. JC/DC Specialties, Judith Ann Crnich, 1025 Kelly Road, Bellingham, WA 98226. Jewell Electric, Scott Ernest Jewell Jr., 18 Green Hill Road, Bellingham, WA 98229. Jonathan Charles Norell, Jonathan Charles Norell, 826 Queen St., 98229. Junior Flooring & Construction, Jury J. Galeas Melendez, 2008 E. Illinois St., Bellingham, WA 98226. Justin Lee Ver Burg, Justin Lee Ver Burg, 5005 E. North St., Bellingham, WA 98226. Justin M. Woodum, Justin Michael Woodum, 1721 Iron St., Bellingham, WA 98225. Kara’s Beauty Barn, Kara’s Beauty Barn LLC, 1711 Pence Ave., Bellingham, WA 98226. Katherine Alena Laspina, Katherine Alena Laspina, 405 14th St., Bellingham, WA 98225. Kathryn G. Polselli, Kathryn G. Polselli, 1016 38th St., Bellingham, WA 98229. KDLR Enterprises LLC, KDLR Enterprises LLC, 1710 Grant St., Bellingham, WA 98225. Kulshan Computer Services, Kulshan Computer Services LLC, 1708 McKenzie Ave., Bellingham, WA 98225. Lambert Garden Creations, Sheri Maureen Lambert, 373 W. Hemmi Road, Bellingham, WA 98226.

Law Office of Edward S. Alexander, Edward S. Alexander, 1501 Eldridge Ave., Bellingham, WA 98225. Lembcke Insulation LLC, Lembcke Insulation LLC, 3440 E. Smith Road, Bellingham, WA 98226. LGM Outdoor Services, Benjamin Scott Sutherland, 3100 Ferry Ave., Apt. B-107, Bellingham, WA 98225. Ling Incorporated, Ling Consulting Inc., 1900 Mill Ave., Bellingham, WA 98225. LJ Shepherd Photography, Leah July Shepherd, 902 N. Shore Drive, Bellingham, WA 98226. Looking Glass Salon, Looking Glass East LLC, 118 E. Magnolia St., Bellingham, WA 98225. M2M Contracting, M2M Steel Systems LLC, 1329 N. State St., Suite 204, Bellingham, WA 98225. ManPowerGroup US Inc., ManPowerGroup US Inc., 216 W. Champion St., Bellingham, WA 98225. McEathron Partnership, McEathron Partners, 910 E. Maple St., Bellingham, WA 98225. Mearns Law Group, Matthew Shelley Mearns, 4310 Columbus Ave., Bellingham, WA 98229. Megan Lynn Lee, Megan Lynn Lee, 444 S. State St., Apt. 410, Bellingham, WA 98225. Melanie Paloma Aceves, Melanie Paloma Aceves, 1415 E. Victor St., Bellingham, WA 98225. Mindoptimal, Elizabeth Ann Anderson, 3120 Squalicum Parkway, Suite 2, Bellingham, WA 98225. Misfit Pastry, Misfit Pastry LLC, 250 Flora St., Bellingham, WA 98225. Moon and Hare, Barbara Jean Simler, 1212 Old Fairhaven Parkway #D202, Bellingham, WA 98225. Moss Bags, Julie Ann Simon, 12 Clear Lake Court, Bellingham, WA 98229. Mount Baker Distillery, Mount Bakery Distillery LLC, 1305 Fraser St. #102, Bellingham, WA 98229. Never Enough Thyme Professional Gardenkeeper, Meilani Ruth Obra, 311 Cedar St., Bellingham, WA 98225. New Dawn Fashions, Christopher Ryan Schwitter, 2400 Huron St., Bellingham, WA 98229. New Worc (IV) Development and Management LLC, New Worc (IV) Development and Management LLC, 1210 10th St., Suite 204, Bellingham, WA 98225. No Code Productions, Sean Patrick Burke, 53 Sudden Valley Drive, Bellingham, WA 98229. North Liberty LLC, North Liberty LLC, 1521 23rd St., Bellingham, WA 98225. Northwest Grip, Northwest Grip LLC, 2502 Kentucky S., Bellingham, WA 98229. NVNTD Inc., NVNTD Inc., 1344 King St., Suite 202, Bellingham, WA 98229. On Point Entertainment, Tyler Shuck, 1034 24th St., Apt. 5, Bellingham, WA 98225. Orozco’s Home Remodeling LLC, Orozco’s Home Remodeling LLC, 2310 Yew Street Road, Bellingham, WA 98229. Pacific Nerdwest, Pacific Nerdwest, 207 1/2 E. Holly St., Bellingham, WA 98225. Pebble Equity LLC, Pebble Equity LLC, 4641 Celia Way Unit 102, Bellingham, WA 98226. Pedaling Home, Pedaling Home LLC, 510 Lakeway Drive, Bellingham, WA 98225. Play By The Bay Inc., Play By The Bay Inc., 1201 11th St., Suite 200-B, Bellingham, WA 98225. Polished, Joann Joy Latham, 1344 King St., Bellingham, WA 98229. Pro Draft League, Pro Draft League Inc., 1313 E. Maple St., Suite 201 #587, Bellingham, WA 98225. Rainmaker Products LLC, Rainmaker Products LLC, 3917 Silver Beach Ave., Bellingham, WA 98226. Rebecca Cairelli, Rebecca Cairelli, 3909 Silver Beach Ave., Bellingham, WA 98226. Rebecque Asher, Rebecque Therese Asher, 2412 West St., Bellingham, WA 98225. Reclamation Art and Design, Recreation Northwest, 3026 Lynn St., Bellingham, WA 98225. Red Door Catering Company, Steven James Engels, 1815 H St., Bellingham, WA 98225. Redstone Ridge Construction, Mark Aplin Wharton, 2807 Cottonwood Ave., Bellingham, WA 98225. Richard Sprague LICSW DCSW, Richard Roy Sprague, 103 E. Holly St., Suite 411, Bellingham, WA 98225. Rockin Locks, Linda Marie Thurber, 2846 Undine St., Bellingham, WA 98226. Sally R. Lange Family LLLP, Sally R. Lange Family LLLP, 2515 Cherry Ste., Bellingham, WA 98225. Samish Marine Services, Samish Marine Services LLC, 639 Manley Road, Bellingham, WA 98229. Sassy Eents & Entertainment LLC, Sassy Eents & Entertainment LLC, 415 N. State St., Apt. 305, Bellingham, WA 98225. Seattle Digitalize For Marketing, Ammar Al-Jaghlit, 4152 Meridian St., Suite 105, Bellingham, WA 98226. Second Wind Massage, Jacqueline Theresa Griffith, 4611 Coast Way, Bellingham, WA 98226.

Seifert & Jones Wine Merchants, Seifert & Jones Wine Merchants LLC, 19 Prospect St., Bellingham, WA 98225. Sew!, Jennifer L. Wall, 3137 Cottonwood Ave., Bellingham, WA 98225. Shepherdson LLC, Shepherdson LLC, 3707 Alabama St., Bellingham, WA 98226. Shiner Distillery, Shine Distillery LLC, 2200 Queens St., Suite 16, Bellingham, WA 98229. Sole Graphics, Matthew Lawrence Bain, 12 Bellwether Way, Suite 232, Bellingham, WA 98225. Spectrum Plumbing and Heating LLC, Spectrum Plumbing and Heating LLC, 753 E. Smith Road, Bellingham, WA 98226. Starr Pest Solutions, Starr Pest Solutions LLC, 5129 Sand Road, Bellingham, WA 98226. Stephana Campion, Stephana Campion, 1344 King St., Suite 102, Bellingham, WA 98229. Steph’s Cleaning, Stephanie Cher Fehr, 667 Andy Court, 98226. Still Water Gifts LLC, Still Water Gifts LLC, 3960 Hoff Road, Bellingham, WA 98225. Tamar Lieb, Naturopathic Physician and Licensed Midwife PLLC, Tamar Lieb, Naturopathic Physician and Licensed Midwife PLLC, 2011 H St., Bellingham, WA 98225. TDS Construction Inc., TDS Construction Inc., 3960 Meridian St., Bellingham, WA 98226. The Autohaus, Executive Autohaus LLC, 1828 Franklin St., Bellingham, WA 98225. The Great Eco Fishery, The Great Eco Fishery LLC, 401 Harris Ave., Suite 202, Bellingham, WA 98225. The Kleman Agency LLC, The Kleman Agency LLC, 204 N. Commercial ST., Bellingham, WA 98225. The Natural Health Clinic, Dr. Emily Sharpe ND PLLC, 1707 F St., Bellingham, WA 98225. The Rustic Bird Chalet, David James Clayton, 200 Sudden Valley Drive, Bellingham, WA 98229. The Sisterhood, Olivia B. Hanson-Hostetter, 1215 Kelly Road, Bellingham, WA 98226. The Union Coffee House, Vanepps Incorporated, 114 W. Magnolia St., Suite 101, Bellingham, WA 98225. The Wild Goose LLC, The Wild Goose LLC, 3912 Britton Road, Bellingham, WA 98226. Therapeutic Lifestyle Change Inc., Therapeutic Lifestyle Change Inc., 3511 Chuckanut Ave., Bellingham, WA 98229. Torilynn’s Styles, Tori Lynn Salinas, 4260 Cordata Parkway, Suite 102, Bellingham, WA 98226. Tracell LLC, Tracell LLC, 1732 Iowa St., Bellingham, WA 98229. Tribeka LLC, Tribeka LLC, 424 W. Bakerview Road #105-322, Bellingham, WA 98226. Two Dreamers, Two Dreamers, 301 W. Holly St., Suite D14, Bellingham, WA 98225. Veracity Construction & Business Consulting LLC, Veracity Construction & Business Consulting LLC, 1971 Midway Lane, Suite L, Bellingham, WA 98226. West Coast Mobile Detailing, Jordan Wesley Nielsen, 334 E. Axton Road, Bellingham, WA 98226. Whatcom Information Technology Services, Whatcom Information Technology Services, 3409 Donovan Ave., Bellingham, WA 98229. Whitewater Rescue Institute, Whitewater Rescue Institute, 336 36th St. #225, Bellingham, WA 98225. Wiebe Insurance Inc., Wiebe Insurance Inc., 647 Old Samish Road, Bellingham, WA 98229. WWS Boardshop, WWS Boardshop LLC, 501 Harris Ave., Bellingham, WA 98225. Zephyr Painting Company LLP, Zephyr Painting Company LLP, 1422 Lincoln St., Bellingham, WA 98229.

buILDInG PErMITSISSUED PERMITS516 High St. (WWU Ridgeway Alpha), $1,086,982 for commercial improvements to existing residential dormatory: interior upgrades and addition of sprinkler system and alarms. Applicant: King Architecture. Contractor: Faber Construction Corp. Permit No.: BLD2012-00485. Issued April 19. 1301 W. Bakerview Road 106, $80,000 for tenant improvement: remodel former office space to frozen yogurt shop: Menchie’s. Contractor: Moceri Construction Inc. Permit No.: BLD2013-00066. Issued April 15.1 Bellis Fair Parkway 316, $40,000 for commercial tenant improvement: remodel existing styling salon: Master Cuts. Contractor: GM Northrup Corp. Permit No.: BLD2013-00101. Issued April 15.1 Bellis Fair Parkway 605, $15,489 for tenant improvement: remodel retail tenant in mall: Activate Cellular. Contractor: Carpita. Permit No.: BLD2013-00045. Issued April 19.1030 Lakeway Drive, $10,000 for tenant improvement: construct new room in center of store for food prep demonstration area: The Market at Lakeway. Permit No.: BLD2013-00140. Issued April 16.3011 Cinema Place 101, $290,000 for tenant improvement: finish space for new frozen yogurt restaurant. Contractor: Sustainable Tenant Improvements LLC. Permit No.: BLD2013-00059. Issued April 1.1421 N. State St., $258,000 for commercial tenant improvement

BBJDATARecently filed public record information

Public record information is obtained from a variety of sources. Business licenses and building permits are from the city of Bellingham. Liquor licenses are from the Washington State Liquor Control Board. Bankruptcies are from the U.S.bankruptcy court in Seattle. Tax liens are from the Whatcom County Auditor. Judgments are from

the Whatcom County Superior Court. Listings are subject to change and are only current as of their filing dates. Due to space constraints, some public records might be omitted in print. All public records can also be found online at BBJToday.com. Building permits appear weekly, usually on Tuesdays. Liquor licenses appear every other week,

usually on Thursdays. All other records appear monthly. For more information, please email [email protected].

DATA | PAgE 19


to create climbing gym. Applicant: Vital Climbing LLC. Permit No.: BLD2013-00080. Issued April 2.810 Alabama St., $175,000 for tenant improvement: remodel office space into self-serve laundromat: Northwest Laundry Company. Contractor: The Franklin Corp. Permit No.: BLD2013-00028. Issued April 1.140 E. Bellis Fair Parkway, $125,233 for new commercial unheated storage building, accessory storage for credit union office building: WECU. Contractor: Alvord & Richardson Construction Co. Permit No.: BLD2012-00479. Issued April 2.2501 James St., $100,000 for commercial: replace exterior dryvit wainscot with new cultured stone cladding, overframe and replace metal roofing on entry only. Applicant and contractor: Pearson Construction Corp. Permit No.: BLD2013-00135. Issued April 4.3028 Lindbergh Ave., $75,000 for commercial interior remodel: reconfigure spaces to create additional classrooms: Bellingham Technical College. Applicant: RMC Architects. Contractor: Berschauer Phillips. Permit No.: BLD2013-00107. Issued April 11.119 N. Commercial St., $53,301 for commercial: re-cover existing one-layer roof with one new layer 60 MIL TPO roof membrane on 15th floor and portions of fourth and fifth floors. Contractor: Hytech Roofing Inc. Permit No.: BLD2013-00132. Issued April 2.1 Bellis Fair Parkway, $20,000 for commercial alteration: raise soffits approximately two feet at 26 locations throughout mall: Bellis Fair Mall. Contractor: Culp Construction Company. Permit No.: BLD2013-00121. Issued April 5.114 W. Magnolia St. 102, $20,000 for tenant improvement: expand existing cafe space into adjacent suite (previously retail), no exterior modifications: Daisy Cafe. Contractor: Clark Construction. Permit No.: BLD2013-00095. Issued April 5.800 Lakeway Drive, $4 million for commercial alteration: remodel of existing retail store: Fred Meyer. Permit No.: BLD2012-00360. Issued March 25.RECENTLY ACCEPTED PERMIT APPLICATIONS20 Bellis Fair Parkway, $750,000 for commercial tenant improvement for new sports retail store: Sports Authority. Contractor: James E. John Construction Co. Inc. Permit No.: BLD2013-00034. Accepted April 18.1 Bellis Fair Parkway, $420,000 for commercial alterations: remodel common areas of mall including two entrances, new flooring, column wrap and ceiling modifications, food court bulkhead modifications: General Growth Corp.-Bellis Fair Mall. Permit No.: BLD2013-00148. Accepted April 16.2938 Lindbergh Ave., $305,000 for commercial re-roof, remove two existing roof layers, replace with new TPO roof. Applicant: RMC Architects. Contractor: Berschauer Phillips. Permit No.: BLD2013-00153. Accepted April 19.516 High St. (WWU Haggard Hall), $67,500 for interior remodel: juice bar converted to copy center. Contractor: Western Washington University. Permit No.: BLD2013-00150. Accepted April 16.4029 Northwest Ave. 202, $65,000 for tenant improvement: interior remodel of office space. Permit No.: BLD2013-00155. Accepted April 19.193 Telegraph Road, $50,000 for commercial alteration: relocate demising wall between tenants 189 and 193, update toilet rooms. No tenant. Applicant and contractor: Oracle Contracting Services. Permit No.: BLD2013-00152. Accepted April 17.4173 Meridian St., $37,000 for commercial alerations: interior remodel to convert janitor’s closet to children’s restroom; remodel group area for classroom and check-in area: Christ The King Church. Permit No.: BLD2013-00151. Accepted April 16.

LIQuOr LICEnSESNEWLICENSE APPLICATIONSJeckyl & Hyde Deli and Ale House, Burning Applewood Inc.; James D. Skinner and Richard Kenneth Van Dommelen applied for a license change to sell beer/wine in a restaurant and operate a microbrewery at 709 W. Orchard Drive #1 & #2, Bellingham, WA 98225. Filed April 15. The Big Fat Fish, The Big Fat Fish Company Inc.; Brian Andrew Tines applied for a license change to sell beer/wine/spirits in a restaurant lounge and for catering purposes, as well as make to-go sales of kegs at 1304 12th St., Bellingham, WA 98225. Filed April 12. BelleWood Distilling, BelleWood Acres Inc.; Dorene Martell Belisle and John Lynn Belisle applied for a license change to operate a craft distillery, sell beer/wine/spirits in a restaurant lounge, make wine sales for off-premises consumption, as well as make to-go sales of kegs at 6140 Guide Meridian Road, Lynden, WA 98264. Filed April 10. Fat Pie Pizza, Fat Pie Pizza LLC; Steve Rex Brinn, Kirsten D. Barron, Christine A. Carlin and Don Richard Carlin applied to sell beer/wine/spirits in a restaurant lounge at 1015 Harris Ave., Bellingham, WA 98225. Filed April 10. The Loft at Latitude 48.5, Latitude Restaurants Bellingham Inc.; Jeffrey P. Holmes and Stefan Alexander Kolbeins applied to sell beer/wine/spirits in a restaurant lounge and be a direct-shipment receiver (in WA only) at 1801 Roeder Ave., Suite 120, Bellingham, WA 98225. Filed April 5. Alexa’s Market; Emilio Colin and Alberta Gonzales applied to sell beer/wine in a grocery store at 102 Jackson St., Nooksack, WA 98276. Filed April 4. JJ’s In And Out, Sajjan Inc.; Sanjay Chanan and Nirmal Chanan applied for a license to sell beer/wine and growlers in a specialty

shop at 2019 Harris Ave., Bellingham, WA 98225. Filed April 2. Good Burger, Good Burger LLC; Matthew Trott, Kristen L. Trott, David B. Trott and Miriam S. Trott applied for a license to sell beer/wine in a restaurant at 5687 3rd Ave., Ferndale, WA 98248. Filed April 2. Birch Bay Mini Mart; Mandeep Kaur applied for a license to sell beer/wine in a grocery store at 8101 Blaine Road, Blaine, WA 98230. Filed April 2.Fat Pie Pizza, Fat Pie Pizza LLC; Steve Rex Brinn, Kirsten D. Barron, Don Richard Carlin and Christine A. Carlin applied for a license to sell beer/wine/spirits in a restaurant lounge at 1212 11th St., Bellingham, WA 98225. Filed March 29.Pho & More, JS Gold Monkey, Inc.; Jim Won Soung applied to assume a license from Sang Ton Yi and Sun Mi Yi to sell beer/wine in a restaurant at 4285 Meridian St., Suite 102D, Bellingham, WA 98226. Filed March 28. Maple Falls Cafe, Maple Fall Inc.; Tiago Hassan applied to assume a license from Slide Mountain Bar & Grill, Timothy Scott Moore, to sell beer/wine/spirits in a restaurant lounge at 7471 Mount Baker Highway, Deming, WA 98226. Filed March 27.Homestead Golf & Country Club, Stephan Golf Inc.; Bradley Arthur Stephan Jr. and Kimberly Rae Stephan applied to assume a license from The Homestead Club Inc., to sell alcohol in a snack bar at 115 E. Homestead Blvd., Suite C, Lynden, WA 98264. Filed March 26.Hannegan Speedway, Mount Baker Motorcycle Club Inc.; Justin Bode, Brian Larcom, Michael Hurlbert and Katie Mount applied for a license change to sell alcohol in a sports entertainment facility at 4212 Hannegan Road, Bellingham, WA 98226. Filed March 22.RECENTLY APPROVED LICENSESEuropa Foods at 3908 Meridian St., Suite 112, Bellingham, WA 98226, was approved to assume a license to sell beer/wine in a grocery store. Filed April 17. Vinostrology Wine Lounge & Merchant at 120 W. Holly St., Suite H, Bellingham, WA 98225, was approved to be a direct-shipment receiver (in WA only). Filed April 16. El Nopal Family Mexican Restaurant at 625 Cherry St., Sumas, WA 98295, was approved to sell beer/wine/spirits in a restaurant lounge. Filed April 9. Bellingham Bells Baseball Club at 1220 Orleans St., Bellingham, WA 98229, was approved for a license with added fees to sell alcohol in a sports entertainment facility. Filed April 8. Fred Meyer #667 at 1225 W. Bakerview Road, Bellingham, WA, 98226, was approved for a license change to be a direct-shipment receiver (in/out of WA). Filed April 5. Starvin’ Sam’s #5 at 2604 Meridian St., Bellingham, WA 98225, was approved for a license assumption to sell beer/wine in a grocery store. Filed March 25.DISCONTINUED LICENSESLightcatcher Cafe at 202 Grand Ave. #B, Bellingham, WA 98225, had a license to sell beer/wine in a restaurant discontinued. Filed March 26.

bAnKruPTCIES CHAPTER 7David John Blauvelt, case no. 13-13849-KAO. Filed April 26. Heather Kathleen Waterhouse and Brian Allen Waterhouse, case no. 13-13845-KAO. Filed April 26. Champlin R. Gaylord and Marie Gaylord, case no. 13-13834-KAO. Filed April 26. Donna Mary Anderson, case no. 13-13828-KAO. Filed April 26. Victoria Lynette Leigh, case no. 12-13740-KAO. Filed April 24. Scott Christopher Smith and Kate Dewey Smith, case no. 13-13716-KAO. Filed April 24. David William Sovey, case no. 13-13721-KAO. Filed April 24. Natalie Lynn Berry, case no. 13-13699-KAO. Filed April 23. Robert Allen Parkerson, case no. 13-13697-KAO. Filed April 23.Summer LeAnne Giles, case no. 13-13694-KAO. Filed April 23. Michael David Fahey and Rachel Michelle Fahey, case no. 13-13692-KAO. Filed April 23.Fay Marie Brockoff, case no. 13-13690-KAO. Filed April 23.Sheryl Lynn Ulrich, case no. 13-13686-KAO. Filed April 23. Isidro Flores-Hernandez and Juana Flores, case no. 13-13633-KAO. Filed April 22. Michael Reed Torfin and Judith Marie Torfin, case no. 13-13617-KAO. Filed April 19.Jose David Gonzalez, case no. 13-13608-KAO. Filed April 19.Eric Ryan Peterson, case no. 13-13589-KAO. Filed April 19. David Wayne Purkiss, case no. 13-13577-KAO. Filed April 19.Bryndel Marzan Callejo and Denise Ann Callejo, case no. 13-13569-KAO. Filed April 18. Kimberly Dawn Benjestorf, case no. 13-13527-KAO. Filed April 18.Paul Clifford Roberts and Dana Georgene Roberts, case no. 13-13526-KAO. Filed April 18.William Alexander Robertson and Janet Catherine Robertson, case no. 13-13523-KAO. Filed April 18.Danielle Rene Blackburn, case no. 13-13522-KAO. Filed April 18.Gail Carmichael, case no. 13-13490-KAO. Filed April 17.Tresa Leann Rogers, case no. 13-13479-KAO. Filed April 16. Holly J. Reed, case no. 13-13478-KAO. Filed April 16. Nathaniel Wray Dufour and Nalene Deanne Dufour, case no.

13-13466-KAO. Filed April 16. James Allen Brady, case no. 13-13464-KAO. Filed April 16. Debra Joi Echols, case no. 13-13462-KAO. Filed April 16. William Pettie Joyner Jr. and Anita Irene Joyner, case no. 13-13450-KAO. Filed April 16. Isela Medina, case no. 13-13438-KAO. Filed April 15. Haley Kristine Woods, case no. 13-13434-KAO. Filed April 15. Irene Madhulesh Ayala and Ricardo Angulo Ayala, case no. 13-13429-KAO. Filed April 15. Mariah Christine Fulbright, case no. 13-13336-KAO. Filed April 11.Margaret Beryl Cagle, case no. 13-13331-KAO. Filed April 11. Jessica Christine Kelton and William Robert Kelton Jr., case no. 13-13279-KAO. Filed April 10. Alexander David Travis, case no. 13-13269-KAO. Filed April 10. Andrew Marshall Cox and Myriah Cox, case no. 13-13267-KAO. Filed April 10. Courtney Alexander Hepworth and Sandra Renee Hepworth, case no. 13-13249-KAO. Filed April 9. Lynda Jean Pettit, case no. 13-13243-KAO. Filed April 9. Nicole Danielle Senter, case no. 13-13230-KAO. Filed April 9. Robert Wayne Fields and Nancy Lee Fields, case no. 13-13216-KAO. Filed April 9. Jessi Jean Warren, case no. 13-13198-KAO. Filed April 8.Ann Michele Lindquist, case no. 13-13192-KAO. Filed April 8. Amy Marie Myers, case no. 13-13106-KAO. Filed April 5. Betty Joyce Torgerson, case no. 13-13099-KAO. Filed April 5. Royce Ryan Ednalino, case no. 13-13087-KAO. Filed April 4. Patricia Ann Watson, case no. 13-13045-KAO. Filed April 3. Tamara Dawn Winkley, case no. 13-13044-KAO. Filed April 3. Derrick J. Watson and Jennifer J. Watson, case no. 13-13034-KAO. Filed April 3. Kelly O’Brien Miller, case no. 13-12992-KAO. Filed April 1. Michael John Owen, case no. 13-12982-KAO. Filed April 1. Elvin Rudolph DeShazer and Judith Lynn DeShazer, case no. 13-12971-KAO. Filed April 1. Rodney Gregg Anstett and Cory Janel Anstett, case no. 13-12969-KAO. Filed April 1. Jacob Daniel Webster, case no. 13-12880-KAO. Filed March 29. Nancy P. Stager, case no. 13-12851-KAO. Filed March 29. William Waldie Bowen and Danielle Rae Bowen, case no. 13-12812-KAO. Filed March 28.Ray John Gould and Sidsel Madaline Gould, case no. 13-12806-KAO. Filed March 28. Jesus Alejandro Hurtado, case no. 13-12798-KAO. Filed March 28.CHAPTER 11No cases reported.CHAPTER 13Daniel Aaron Bennett and Carolyne Michele Ingram-Bennett, case no. 13-13746-KAO. Filed April 24.Monte Lyn Nieuwendrop, case no. 13-13499-KAO. Filed April 17.Marlyn Z. Runge and Mary Linda Runge, case no. 13-13460-KAO. Filed April 16.Kenneth Lee Kirkey, case no. 13-13347-KAO. Filed April 12.Debra Hahnel, case no. 13-13126-KAO. Filed April 5.Nancy Russell, case no. 13-13125-KAO. Filed April 5. Irina Vladimirovna Chernomorets, case no. 13-13057-KAO. Filed April 4.Gerrit Anker and Rosemary Alice Anker, case no. 13-12929-KAO. Filed March 30. Trevor Waith Cary, case no. 13-12773-KAO. Filed March 28. John Joseph Damon II and Thelma Elaine Damon, case no. 13-12771-KAO. Filed March 28.

TAX LIEnSVan Zanten & Son LLC, Gary Van Zanten MBR, $5,457.05 in unpaid IRS taxes. Filed April 3.Peter P. Logrande, $3,816.93 in unpaid IRS taxes. Filed April 3. Robert L. Eastman and Luz E. Eastman, $11,539.59 in unpaid IRS taxes. Filed April 3.Century Mining U.S. Corp., $3,072.54 in unpaid IRS taxes. Filed March 29.Eric A. Weston and Tina Weston, $25,207.15 in unpaid IRS taxes. Filed March 29.Northwest Pro Concrete, $22,277.48 in unpaid IRS taxes. Filed March 29.Janice Vilkin Kessel and David B. Kessel, $8,498.63 in unpaid IRS taxes. Filed March 29.Direct Data Products, $8,897.98 in unpaid IRS taxes. Filed March 29.Scott R. Lemon, $1,225.74 in unpaid IRS taxes. Filed March 27.Dennis R. Wagner and Nancy Wagner, $18,882.91 in unpaid IRS taxes. Filed March 27.Michael L. Elmer, $104,451.19 in unpaid IRS taxes. Filed March 27.

Ken R. Shelley, $192.84 in unpaid IRS taxes. Filed March 20.Teresa M. Cruz, $4,193.10 in unpaid IRS taxes. Filed March 20.HB Hansen Construction, $30,394.30 in unpaid IRS taxes. Filed March 12.William S. Cummins, $61,856.10 in unpaid IRS taxes. Filed March 12.Hillco Contracting Inc., $760.40 in unpaid IRS taxes. Filed March 12.Bellingham Whatcom Radiator & Battery Inc., $17,677 in unpaid IRS taxes. Filed March 12.Harkness Contracting Inc., $944.57 in unpaid IRS taxes. Filed March 12.

JuDGMEnTSEufemio Rexcarl Colinares, $8,760.50 in unpaid Department of Revenue taxes. Filed April 24. Frederick E. Knutzen, $344.53 in unpaid Department of Labor & Industries taxes. Filed April 23.La Cantina Birch Bay LLC, $6,502.78 in unpaid Department of Labor & Industries taxes. Filed April 23. Rutledge Embroidery Corp., $9,534.50 in unpaid Department of Revenue taxes. Filed April 22. J&J Custom Construction LLC, $82,392.52 in unpaid Department of Revenue taxes. Filed April 22. Cheese Meats Beer, $850.84 in unpaid Department of Labor & Industries taxes. Filed April 22.Tiam Pies Inc., $3,547.73 in unpaid Department of Labor & Industries taxes. Filed April 22.Kelly A. Sullivan, $1,108.36 in unpaid Department of Labor & Industries taxes. Filed April 22.Forever Fit LLC, $1,852.24 in unpaid Department of Revenue taxes. Filed April 19. Everett M. Denton, $23,975.87 in unpaid Employment Security Department taxes. Filed April 19. Sandra Barbero, $8,004.32 in unpaid Employment Security Department taxes. Filed April 18.Don Eidemiller, $6,629.20 in unpaid Employment Security Department taxes. Filed April 18.William L. Vanwingerden, $7,072 in unpaid Employment Security Department taxes. Filed April 18.K. Gretchen Woody, $390.20 in unpaid Department of Labor & Industries taxes. Filed April 11. Pioneer Trucking Co., $1,887.83 in unpaid Department of Labor & Industries taxes. Filed April 11. Milt’s Pizza Place LLC, $1,572.77 in unpaid Department of Labor & Industries taxes. Filed April 11. Jason R. Pealatere, $1,402.90 in unpaid Department of Revenue taxes. Filed April 11. Alliance Properties 2000 LLC, $949 in unpaid Department of Labor & Industries taxes. Filed April 10. Laventure Group LLC, $1,070 in unpaid Department of Labor & Industries taxes. Filed April 10. Kalab Robert Aswegan, $1,070 in unpaid Department of Labor & Industries taxes. Filed April 10. Anatoly F. Kolesnikov, $555 in unpaid Department of Labor & Industries taxes. Filed April 10. Gabe 5 LLC dba Parkway Chevron LLC, $3,217.85 in unpaid Department of Labor & Industries taxes. Filed April 10. JKJ Inc., $528.54 in unpaid Department of Labor & Industries taxes. Filed April 10. Custom Concrete by Dave Johnson dba Custom Concrete Contracting, $3,418.15 in unpaid Department of Labor & Industries taxes. Filed April 10. B&B Paint Co. Inc., $10,300.47 in unpaid Department of Labor & Industries taxes. Filed April 10. Raindance Roofing Inc., $1,927.64 in unpaid Department of Labor & Industries taxes. Filed April 10. Cicchitti’s Pizza Inc., $2,218.22 in unpaid Department of Labor & Industries taxes. Filed April 10. Mark A. Astengo, $909.37 in unpaid Department of Revenue taxes. Filed April 10. Captain Jack Jr.’s Family Entertainment Center, $5,659.82 in unpaid Department of Revenue taxes. Filed April 10.K2B LLC, $1,696.03 in unpaid Department of Revenue taxes. Filed April 10.Newbatts Fashion LLC, $929.32 in unpaid Department of Revenue taxes. Filed April 10.Namaste Ventures Inc., $2,056.36 in unpaid Department of Revenue taxes. Filed April 10.Lincoln Green Nursery LLC, $2,364.29 in unpaid Department of Revenue taxes. Filed April 3. Bellingham Whatcom Radiator & Battery Repair, $1,601.76 in unpaid Department of Revenue taxes. Filed April 3. Stauffer Stains LLC, $1,065.36 in unpaid Department of Revenue taxes. Filed April 3. Cash Corp., $6,061.33 in unpaid Department of Revenue taxes. Filed April 3. Dee’s Country Diner LLC, $22,041.20 in unpaid Department of Revenue taxes. Filed April 3.

DATA | FROM 19


To answer this question, the Red Rokk team reached out to a local business with an e-commerce website to dis-

cover its keys to success. We chose Hard-ware Sales, a family-owned retail outlet began as a dynamite supplier in 1962, and has grown to become one of Whatcom County’s most successful retailers.

Through customer loyalty and diversify-ing their offerings into rentals and office furniture, the McClellan family’s Hardware Sales retail outlets prospered and success-fully competed when The Home Depot and Lowe’s arrived on the scene by focus-ing on reliable and knowledgeable cus-tomer service, as well as stocking the right selection of products.

By late 2008, when the economy went into recession, Hardware Sales remained in good shape because of its business diver-sification and because of its ongoing com-mitment to superior service.

Today, the e-commerce business for Hardware Sales resides in a big warehouse tucked away in Ferndale, north of its Bell-ingham retail location. Steve Douge has managed Hardware Sales online sales as its e-commerce director since 2007 (in fact, it was his online hardware business the McClellan family bought out). He runs a 13-person operation that expertly manages, tracks and fulfills all the online orders.

Meeting “big-box” competition online

Douge credited his online success to his

team’s quick turnaround and the ability to offer products across three online plat-forms that include hardwaresales.com as well as e-Bay and Amazon.com.

“We’ve found that customers have cer-tain website preferences when shopping for tools and hardware items, so the ability to offer a wide selection of our products on sites like Amazon and e-Bay in addition to our own website has been a big part of our success,” Douge said.

Although they may never admit it, the big box retailers actually have little incen-tive to sell products online. The reason, as reported in Marketwatch, is that “beyond generating additional sales, the company (The Home Depot) also wants to use the Internet as a marketing medium to help build customer loyalty and feed store sales.”

Also, many customers now use their smartphones to go out “showrooming,” where they will view products on store shelves, then cross-reference them with online competitor’s prices before making a purchase.

Making checkouts fast and easyFor any e-commerce website to generate

consistent traffic that converts to sales, cer-tain elements are required.

From a layout and functionality perspec-tive, customers expect an e-commerce website to include easy navigation with high-resolution product pictures (ones that can increase in size and be seen from dif-ferent angles). They also want to be able to find all product-related information with an easy-to-read shopping cart button.

Overall, providing a fast and convenient checkout process involving the fewest clicks possible while always displaying the total price is crucial.

Other keys to successThe design and ease-of-flow across an

e-commerce website is just as important as search engine optimization, also known as SEO, that makes sure people find the site.

In addition, many e-marketers are now able to see who is visiting their websites, where they can spot abandoned shopping carts and quickly follow-up with a friendly email.

The ability to track and view how cus-tomers use a website actually works. Stud-ies show that more customers return and complete their sale when reminded by a reminder email.

Being prepared for sales growth is cru-cial for every e-commerce marketer. The importance of being able to fulfill orders in a timely manner cannot be understated.

In fact it’s the other half of Douge’s oper-ation, and probably the area that sets Hard-wareSales.com apart from its competitors. Inside the 33,000 square-foot warehouse, there are 10 long aisles with 26-foot-high racks holding more than 8,000 items at any given time.

“The key to our ongoing success is the Lean program which has increased our overall productivity tremendously,” Douge said.

The importance of “Lean”Lean is the increasingly popular effi-

ciency program that streamlines how people organize their workspace, whether it’s a warehouse, manufacturing floor or an office space.

Saving time and being well-organized—by using what’s known as the “5S program,” sorting, straightening, cleaning (sweeping), standardizing and sustaining the process—

increases efficiency dramatically when the system is implemented and maintained correctly.

It’s also about staff members embracing a new mentality where the idea of constantly focusing on ways to improve becomes the norm.

Listen to your employeesWhile touring the warehouse amidst a

swirl of activity, Douge pointed to a pair of pallets used for stacking outgoing pack-ages.

“In addition to our Lean program, we have often found that it’s the little things that can have the biggest impact,” he said. “For instance, by simply color-coding these two pallets (purple for FedEx and yellow for DHL) we have saved time and reduced human error by a significant margin. And the beauty of it is, this idea came from one of our staff members.”

The takeaway: Always be open to listen-ing to what employees have to say. Their ideas count!

In addition to Lean procedures in the warehouse, Douge’s team has also phased in the same program for the front office by arranging desks to save space, foster-ing collaboration and cutting out a lot of physical movement.

When added together, these kinds of changes under the Lean program improve Hardware Sales’ ability to serve its custom-ers and effectively compete against any online or brick-and-mortar competitor.

Red Rokk Interactive, a digital-marketing firm based in Bellingham, is online at www.redrokk.com.

ask red rokk: Do you have a good example of a local small business that is effectively competing against national online and “big box” retailers?

Red Rokk InteractiveED MUNRO

Guest coMMeNtARY bY

sTay cOnnEcTED OnLinE WiTH THE BELLinGHaM BUsinEss JOUrnaL

visit BBJToday.com and sign up for our free daily email to have the latest business news sent to your inbox every morning.

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Networking at business events can be a fun and effective way for local companies to build their brand. Connecting with others in-person can educate consumers, build trusting relationships and even generate referrals. Those are all good things, right?

The flip side is that network-ing can make some people feel nervous, anxious and stressed. Those feelings are not so good. This month’s article focuses on tips and best practices that com-panies (or individuals) can use to improve their networking success.

First and foremost, the goal of networking is to build mutually beneficial relationships over time, so start by making sure the right person is selected as a company representative. Choose someone who will be with the company for an extended period of time; try to avoid using transitional employ-ees in high turnover positions.

Business owners and key mem-bers of the management team can be great networkers if they are friendly, somewhat confident people. These people will have the knowledge necessary to talk about products and services, and they are often passionate about what the company offers.

If owners happen to be shy and introverted by nature, then in-person networking will be a chal-lenge. Choose a more extroverted company representative or focus marketing efforts in other areas.

Next, consider what type of networking groups to participate in based on target audiences. There are industry-related groups made up of many businesses sup-porting one industry (such as the Building Industry Association

of Whatcom County, which pro-motes construction), and there are networking groups made up of a variety of businesses (such as the Bellingham/Whatcom Cham-ber of Commerce and Industry).

Choose groups to participate in based on target markets. If a com-pany builds widgets that are use-ful to people in the construction industry, then networking at the BIAWC should be considered.

Personal networking styles should also be considered as a way to ease networking anxiet-ies. There are large, structured events such as monthly network-ing breakfasts, and there are also casual, no-host meet-ups at bars, restaurants and coffee shops.

If the company representative loves large groups and the idea of sharing business news via a one-minute “elevator speech,” then give structured events a try. If the rep is more comfy with less for-mal conversation at smaller group gatherings, try casual meet-ups.

Once a networking represen-tative is selected and the right events are identified, it’s time to attend a few meetings. Make sure the basics are covered like hav-ing a professional name tag and plenty of business cards on hand. Then keep these five networking tips and best practices in mind:

1. On the day of the event, mentally prepare by identifying three things: a product or ser-vice to promote, an area of the business that is doing well, and an answer to the “What are you working on today?” question that many people ask as an ice break-er. Planning ahead in these areas will greatly ease anxieties.

2. Ditch old-school networking tactics that project a “What’s in it for me?” vibe. People catch on quickly when someone is just net-working for a quick sale. Refrain from using hard sell methods.

Instead, use new-school methods that project a “How can I help you?” attitude. Listen to people’s needs, provide information and work to build a relationship; be a solution provider.

3. Smile and stay positive. Networking events are not the place for “Debbie Downers.” Refrain from complaining about the economy, lack of business or coworkers. Smile often and keep conversations light and positive.

4. Find one person to “rescue.” Look for a person that is standing or sitting alone and be the person that rescues them. Start a conver-sation, invite them into a group or introduce them to others. It feels great to help others be suc-cessful at networking.

5. Value everyone. The beauty of networking is that people never know when or where they will meet someone who will influence their business (or personal life). Sincerely valuing everyone, from high level CEOs to entry-level employees, is important.

Lastly, here’s a word about communicating and following up with people after a networking event: Adding new contacts to a company’s newsletter or email distribution list without permis-sion is spam. Even though the info being shared is believed to be really cool and totally valuable to everyone who will ever read it, it is still spam if permission is not given first.

Instead, use the information found on business cards to con-nect and engage with companies on social media sites like Linke-dIn, Facebook and Twitter. Use those tools to keep conversations going—until the next time you meet at a networking event.

Visit Patti Rowlson online at www.pattirowlson.com.

Tips and best practices to reduce “networking anxieties”

PR Consulting ServicesPATTI ROWLSONGuest coMMeNtARY bY

MInD THE TrAPSWhen estate tax crosses the border

Guest commentary by Stephanie Hathaway International Tax Partner, Moss Adams LLPThe estate tax in the United States is well known, but it’s complex, making it difficult for some individuals to know whether, and to what degree, it might apply to them. This is particularly true when international factors are involved.Over certain thresholds, the estate tax is applicable to U.S. citizens, regardless of residency; U.S. residents, regardless of citizenship; and foreign individuals who own “U.S. situs” assets (see below). Many states, including Washington, also have separate estate-tax regimes.So how does this break down? The gross value of worldwide assets owned or controlled by a U.S. citizen or resident (a U.S. estate) is subject to estate-tax reporting if the value exceeds $5.25 million (for 2013). Administrators of estates in Washington must also file a state estate-tax return if gross assets exceed $2 million.A U.S. estate is allowed deductions and exclusions that may reduce or eliminate the estate-tax liability. These are for items such as legal and accounting fees, estate administration expenses, costs to maintain estate assets, funeral and burial expenses, debts and mortgages, losses during estate administration, bequests to qualified charitable organizations and transfers to a spouse who is a U.S. citizen. If the spouse is not a citizen, tax-free transfers are limited under both federal and state laws, making proper planning even more important.Non-U.S. estates that include more than $60,000 of U.S. situs assets are required to file an estate tax return. However, there are tax treaties that may provide relief for estates subject to tax in more than one country. For example, smaller Canadian estates—those with worldwide gross assets of $1.2 million (U.S.) or less—are exempt as long as the U.S. assets are neither real property nor business property. To qualify for the exemption, the estate must file a U.S. estate-tax return and claim the treaty benefit.Executors of non-U.S. estates with U.S. situs assets are sometimes surprised to learn that a U.S. estate-tax return is required. This requirement is often discovered after the due date for filing the return, at which point additional interest and penalties may be imposed and the estate may no longer be eligible to make certain advantageous tax elections.While determining situs for specific trust or partnership assets and debt obligations requires a detailed fact pattern analysis, the most common U.S. situs assets include:- Real estate in the United States- Shares of stock issued by U.S. corporations- Tangible personal property, including checks and cash, physically located in the United States- Debt obligations issued by a U.S. entity or individual- U.S. bank accounts, if connected to a U.S. trade or business- Interest in some partnerships, including some LLCs, if the partnership owns U.S. real property or business property- Most U.S. retirement plans and benefits- U.S. assets held by a non-U.S. corporation, if the ultimate non-U.S. shareholder previously transferred the assets to the corporation or fails to respect the corporation’s separate dominion and control over the assets- Assets owned by trusts, if the assets were U.S. situs either at the decedent’s date of death or when they were originally contributed to the trust (even if those assets were later sold and replaced with non-U.S. assets)- Estate tax rules in the United States are complex, particularly for individuals with international situa-tions. With proactive planning, these individuals can quantify their U.S. estate-tax exposure, identify and implement strategies to reduce that exposure, and structure future activities with tax efficiency in mind.Stephanie Hathaway can be contacted at 360-676-1920 or [email protected].

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finding work remains a problem for many people. Whatcom County’s most recent estimate from the state Employment Secu-rity Department put its jobless rate at 7.9 percent.

Employers in the high-tech industry, a growing sector in Whatcom County, reported the highest difficulty compared to other industries. In the high-tech field, 51 percent of employers surveyed across the state reported difficulty filling vacant posi-tions at their companies.

Workforce and labor analysts say a continuing “skill gap” between employers’ needs and workers’ skills poses a threat to the state’s business climate and economy. It also makes it more difficult for people out of work, or those preparing to enter or re-enter the workforce, to find good-paying jobs.

This skill gap is apparent in the technol-ogy field in Whatcom County, said Mark Knittel, chair of the board of directors for the Technology Alliance Group, which is more commonly known by its acronym, TAG. But local tech employers’ difficulties finding good hires aren’t based entirely on

a dearth of qualified applicants, he added.“There is a general shortage across the

board that isn’t localized to here,” said Knittel, who also owns a local computer service company called Ovation Technical Services (previously a Data Doctors fran-chise).

Whatcom County’s smaller market size, when compared with larger metro areas with strong tech sectors such as Seattle or Vancouver, British Columbia, also plays a role in mak-ing it more challenging to recruit skilled workers, Knittel said.

Educators in Belling-ham and Whatcom County have plans to address a projected lack of college graduates in science, technology, engineering and math, a conglomeration of subjects referred to as “STEM,” which is in high demand in the technology field. These plans include new initiatives to engage students at a younger age and encourage them to pursue STEM-related interests and education.

Analysts predict that by 2018, Washing-ton could have the third largest demand for STEM-related jobs in the entire nation, according to a 2012 annual report from Whatcom Community College.

A skilled labor pool will be necessary if Whatcom County is to continue its devel-opment over the past decade into a strong hub for tech business.

Whatcom has the seventh highest num-ber of technology-related jobs in Washing-ton state, according to TAG. Three What-com County tech firms, Toolhouse Design Company, Ryzex and Logos Bible Software, have ranked among the fastest-growing private firms in the country.

Bob Pritchett, president and CEO of Logos Bible Software, Belling-ham’s larg-est software developer in terms of employees,

said it is challenging for his company to find qualified workers. Expanding his team of software developers has been particu-larly challenging, Pritchett said.

Logos, an electronic publisher of biblical references and scholarly works, is ready to bring on a significant number of new hires. The firm has dozens of open positions listed on its website. Along with jobs in software development, there are openings in marketing, sales, graphic design and video, along with additional openings in Logos’ internship program.

The company has grown rapidly since

relocated to Bellingham in 2002 from Oak Harbor, Wash., with around 40 employ-ees. Today, Logo employs more than 300 people.

Pritchett said Logos looks for the job applicants who can prove they have the skills needed to be a successful addition to the firm.

While credentials and education are important, occupation-specific skills are generally given more weight, he said.

“We’ll look at your resume, but it really doesn’t matter,” Pritchett said. “We care about proven and demonstrable skills that are related to the job.”

For other companies, it can also be dif-ficult to find applicants with the right atti-tude toward work.

Back at the job fair in Fox Hall, Tim Dyck, a developer and team lead at DIS Corp. in Bellingham, was advertising two job openings on the company’s mobile-technologies development team.

Dyck said he sees a lot of applicants—including many fresh out of college—who lack a strong work ethic and critical-think-ing skills necessary to make them effective employees.

He added that at times, there’s almost a sense that younger applicants feel as if they are “owed” a job.

“For the younger people we’ve been interviewing, there’s this kind of indebted-ness,” Dyck said.

Still, he added, for skilled applicants looking for work in the area, there are jobs available.

SKILL GAP | FROM 1

Demand for science and technology education expected to increase

We’ll look at your resume, but it really doesn’t matter. We care about proven and demonstratable skills that are related to the job.” —Bob Pritchett, president and CEO of Logos Bible Software

THE FuTurE OF buSInESS

(Clockwise from top right) Whatcom County Executive Jack Louws, center, speaking during a local government leaders panel at the conference’s opening reception. Louws spoke briefly about county government’s use of lean-management practices. With Louws is Derek Long, Sustainable Connec-tions’ executive director, left, and Rob Fix, executive director for the Port of Bellingham. Bellingham Mayor Kelli Linville was also scheduled to appear but couldn’t attend due to ill-ness. Bill Taylor, owner of Taylor Shellfish Farms, gave the confer-ence’s opening keynote speech. The Future of Business conference’s opening reception was held in the Depot Market Square in downtown Bellingham.Derek Long speaking during the local government leaders panel. EVAN MARCZYNSKI PHOTOS | THE BELLINgHAM BUSINESS JOURNAL

The 2013 Future of Business Conference, an annual event organized by the nonprofit Sustainable Connections, focused this year on local companies that have managed to hold strong through a difficult economy while still mainta-ing sustainable business practices. Guest speakers included Scott Jenkins, vice president of operations for the Seattle Mariners, and A-P Hurd, vice president of Touchstone Corp. The Bellingham Business Journal was a media spon-sor for the event.


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increasingly expensive health care bills. Yet at PeaceHealth, developing such strategic partnerships, at least on a grand scale, is proving difficult.

The integrated system would have combined seven CHI hospitals with nine belonging to PeaceHealth and would have included nearly 26,000 employees, about 950 doctors and a variety of other health care facilities and operations in Washing-ton, Oregon and Alaska. It was expected to generate nearly $4 billion in annual revenue.

PeaceHealth operates St. Joseph Medical Center in Bellingham, which is Whatcom County’s only hospital, and is the area’s dominant health care provider. The orga-nization is also the county’s largest employer, with more than 2,700 employees.

In suspending the dis-cussions rather than end-ing them, PeaceHealth and CHI, an Englewood, Colo.-based provider that operates 55 hospitals in 17 states, left open the possi-bility of future partnership. Both will “remain actively engaged in exploring other opportunities to work together and strengthen their respective ministries in the Pacific Northwest,” according to a joint press release issued on April 3.

The negotiations stalled over disagreements on how the organizations would share a wide array of administrative services, Michael Romano, a CHI spokesperson, said via email.

One sticking point involved the integrated sys-tem’s combined purchasing power.

The agreement would have created a 50-50 joint venture between all of the facilities and ser-vices run by PeaceHealth and CHI’s opera-tions in the Pacific Northwest—CHI runs the Franciscan Health System in Tacoma and has affiliations with two additional medical centers in the Puget Sound area.

Fearing the loss of bulk purchasing power from its facilities in the region—which make up about 20 percent of CHI’s total operations—CHI executives sought to take the lead purchasing role in the joint venture in order to protect supply prices at its other hospitals around the country. But an agreement with PeaceHealth in that regard could not be reached.

Both organizations also struggled to meld their information technology systems and their revenue cycles. Romano said neither group felt it could develop an inte-grated model that would provide desired benefits and serve the best interest of its physicians, employees and patients.

Adler said the negotiation process revealed that while PeaceHealth and CHI share similar values and care directives, the joint-venture presented more compli-cations than either organization initially

anticipated.“We were unable to create a model with-

in that framework that was simple enough that would end up delivering that level of integration and level of efficiencies and services,” Adler said. “[But] what we found in this process, among many things, is that PeaceHealth and CHI are very compatible organizations.”

The joint venture had its critics.The American Civil Liberties Union in

Washington state challenged the affiliation between PeaceHealth and CHI, expressing concern that the partnership between the religiously-affiliated organizations could restrict legal access to reproductive care, birth control and abortion services, and certain end-of-life care options.

Other detractors also feared that patients’ freedom of choice could suffer depending on how the two organizations aligned their adherence to the Ethical and Religious Directives for Catholic Health Care Services. CHI was perceived by some opponents of the joint venture as being more restrictive than PeaceHealth regard-ing reproductive and end-of-life services.

PeaceHealth spokesper-son Jenny Ulum said reli-gious values played no role in the decision to suspend joint venture talks. Adler said the same, adding that the bulk of the negotia-tions centered on business matters, not philosophical ones.

The partnership between PeaceHealth and CHI is stalled for now.

But Adler said Peace-Health will continue seek-ing ways to integrate its health care financing and delivery systems.

While the developments with PeaceHealth and CHI provide a window into the complexities of major restructuring within the health care world, industry experts said the failure of the joint venture does not mean that such partner-ships are impossible.

Larry Thompson, execu-tive director of the non-profit Whatcom Alliance for Health Advancement, said all signs in the indus-

try point toward more integration, not less, among providers.

“I would by no means take it as a sign that these kinds of large consolidations are infeasible,” he said.

Thompson said PeaceHealth will likely have other opportunities to gain the size and scale it sought by combining with CHI, including forming partnerships and new operating agreements with smaller providers around the region.

Such plans are already forming at the St. Joseph Medical Center, with new agree-ments between PeaceHealth and public hospital districts in San Juan and Skagit counties.

PeaceHealth could also have the option of restructuring the facilities it already manages, said Thompson, who has spent more than three decades in the health care and medical world.

That might include creating a “hub and spoke” model where administrative func-tions are concentrated into larger regional facilities, which are placed at the center of networks surrounded by smaller medical offices, he added.

PEACEHEALTH | FROM 1

PeaceHealth, CHI remain committed to exploring future health partnerships

“I would by no means take it as a sign that these kinds of large consolidations are infeasible.” —Larry Thompson, executive director of the Whatcom Alliance for Health Advancement

“It is the fragmentation that lives within health care across all the providers that makes this so difficult.” —Peter Adler, chief strategist for PeaceHealth

PeaceHealth St. Joseph Medical Center and United General Hospital in Sedro-Woolley have agreed to extend the date in which PeaceHealth will take over leasing and operation of the Skagit County medi-cal center.

Both parties have agreed to implement a 30-year operating agreement no later than July 1, 2014. A previous agreement set the deadline for July 1 of this year.

The extended deadline was necessary due to procedural delays with state-level regulators and the need for more time to fully integrate the operations of the two organizations, according to PeaceHealth.

United General and PeaceHealth are currently working together under an interim-services agreement that will be expanded as of July 1, 2013.

The long-term deal was approved by commissioners of the Public Hospital District 304 in Skagit County last fall. The United General facility, which would still be owned by the Public Hospital District, would be renamed the PeaceHealth United General Medical Center.

“We have made enormous strides towards this alliance and we will continue to do so,” Greg Reed, CEO of United Gen-eral Hospital. “Leaders of both organiza-tions are committed to a seamless and successful transition. We simply need more

time to minimize any disruption to our services.”

PeaceHealth St. Joseph CEO Nancy Steiger also said, in a statement, that the relationship between both organizations remains strong.


PeaceHealth delays takeover of Skagit’s United General Hospital30-year operating agreement with Sedro-Woolley

hospital now set to begin July 1, 2014

Family Care network plans affiliation in Mt. Vernon

Family Care Network, the larg-est provider of primary care medical services in Whatcom County, has reached a preliminary agreement with North Cascade Family Physicians in Mount Vernon for a new affiliation that could be complete by the end of the year.

Both organizations are now work-ing to harmonize their systems for medical record keeping, clinical care, contracting and billing, according to a press release.

When the alliance is completed, owner physicians at North Cascade Family Physicians will become physi-cian partners with FCN, and part of the shared governance of Family Care Network.


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bellingham business journal, may 06, 2013

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