bellingham business journal, september 01, 2014

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o. X

Knobby tires roll through town: Mountain bike tourists effect on local businesses [Page 8}

The BuzzInvesting in marijuanaLocal pharmacist Ward Nelson talks about how he got involved as an investor with a local retail marijuana store.

MARIJUANA, PAGE 6

With customers coming from all over the Puget Sound, Julian Friedman’s Crystal Reef Aquatics has a niche in saltwater aquariums.

SALTWATER, PAGE 4

Electro Mechanical Technology students setting up a manufacturing process at Bellingham Technical College. Over the summer, the college developed new programs to train students for careers in aerospace engineering with the help of $860,000 in grant money. Photo courtesy of Bellingham Technical College

Aerospace programs take off at BTCGrants fund new machining, manufacacturing and engineering programs that start this fall

Last November, as part of a deal to per-suade Boeing to build its 777X airplane in Washington, the state Senate approved a bill to create 1,000 positions for students in aero-

space programs at community and technical colleges.

Bellingham Technical College received $860,000 in funding, enough for 77 new aerospace students. They got the grant last May after submitting a proposal to add two new programs, Bellingham Technical College

President Patricia McKeown said. “This is a major change of emphasis for the

college,” Bellingham Technical College Presi-dent Patricia McKeown said. “It’s more than just one little program.”

BY OLIVER LAZENBYThe Bellingham Business Journal

AEROSPACE, PAGE 6

An aquarium hobbyist turns his passion into a business

Business briefing

New Bellingham business Bellingham Beer Trail plans to bolster beer tourism with maps and bicycle tours.

BUSINESS BREIFS, PAGE 20

Business toolkit

Increase engagement by making work more like a game.

BUSINESS TOOLKIT, PAGE 16

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Bellingham Technical College put together new aerospace programs over the summer with grant money they received in June.

[6] BTC unveils aerospace classes

Village Books owner Chuck Robinson is concerned about Amazon’s treatment of publishers.

[23] Book pledge

Despite small improvements, a gap in wages between male and female aerospace workers persists, and the amount of female workers is still low.

[6] Lingering gender gap in aerospace careers

Contents

Bellingham Technical College instructor Jason Kefover working with a student on setting up a manufacturing process. OLIVER LAZENBY PHOTO | THE BBJ

The Bellingham Business Journal

Local heating and air conditioning companies report selling more air conditioning units and other cooling technology than usual.

[8] Hot summer = business for AC installers

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[7] Market Indicators[16] Business Toolkit

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2 The Bellingham Business Journal September 2014

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The next dot-com boom: Local pharmacist on the risks and rewards of investing in retail marijuana

A 2012 study by the Substance Abuse and Mental Health Services Administration found that 10.2 percent of Washington residents had used marijuana in the past month. Perhaps not since 1933, when prohibition ended in the United States, has a product with such a large existing market become legal to sell for the first time in years.

Despite a short supply of legally grown marijuana, local investors and entrepreneurs are turning a profit with retail marijuana and other cannabis-related busi-nesses in Washington State.

Ward Nelson, Bellingham pharmacist, former What-com County Council member, and investor at Top Shelf Cannabis, said despite the risks he couldn’t pass up the chance to invest in a local retail store.

BBJ: Is the retail marijuana business the next gold rush or the next dot-com boom?

I don’t think there’s a startup business you can go into that has such a fast return on its investment. Although, I haven’t seen that yet because we’re rolling return on investment into more products, more lines and more expansion.

BBJ: Is it a risky investment?It’s a schedule 1 drug, of course it’s risky. The only

things protecting us is an agreement between the Jus-tice Department and the State Attorney General, and Congress just recently stating that it would not fund the Justice Department in any actions against people par-ticipating in legal operations in Colorado or Washing-ton. Also, you can’t get bank loans. You put your whole livelihood into investment.

BBJ: How did the opportunity to invest with Top Shelf Cannabis come about?

The guy who got the permit is friends with my wife’s cousin. He and I have had discussions in the past about possible business ventures so he knew I was interested in doing something different. He knew I also knew something about business, government, politics and all that.

He was bugging me so much I said why don’t we sit down and talk. I met with them and they wanted me to go in on the business. When I looked at the numbers I thought I’d be kind of stupid not to go in on it.

BBJ: How has Top Shelf Cannabis handled supply challenges?

Without revealing a lot of marketing strategy, what we’re trying to do is grow our business. What we want to do is make sure we capitalize on the return of our investment, but also make sure we’re not overpricing our product so we can keep a consumer base. We’re looking at long-term gains not short-term financial benefit.

BBJ: Is dealing with pharmaceuticals similar to deal-ing with marijuana for the states’ seed-to-sale inven-tory tracking?

That’s another reason I’m involved -- it is similar to pharmaceuticals. You have to track everything. I under-stand the tracking and I understand the monitoring and making sure the controlled substances are accounted for.

BBJ: Top Shelf Cannabis was one of the first retailers to open and one of the first to sell edibles. What do you attribute that success to?

Well, all the partners are hard driving, committed to making it a successful business, and doing it right. All those things make for a successful businesses.

We were helped somewhat by the city of Bellingham. It took a little extra coaxing but I think the City of Bell-ingham wanted to help us out as much as they could. There were a lot of difficulties initially trying to get our permits simply because it was new to them as well as to us. The state was proactive in the regard that they wanted to see at least 20-some retailers and processors, at least initially, to be open so they could say they at least got it started.

BBJ: Will it get easier for Top Shelf Cannabis keep marijuana in stock anytime soon?

I think by October or November we’re going to see some consistent supplies depending on how many more stores open up. That’s dependent not only on the state, it’s also dependent on people getting financing.

BBJ: What have been some of the challenges so far?The stigma. I told the staff if we’re going to be suc-

cessful in this business you can’t call it dope, reefers, or whatever. You have to call it what it is, it’s a marijuana product. Don’t call it by slang terms because those are the slang terms that have grown with us ever since the ‘30s when it was declared illegal.

BBJ: With a background as a conservative politician, do you have a hard time dealing with that stigma?

I think most people in this community know that I’m a straight shooter. I’m going tell you what I know works or what I think will work, take it or leave it. there’s peo-ple who agree with me and there’s people who disagree, but by and large everyone knows I’m going to be honest with you.

BBJ: Did you support legalization?No. See how honest I am? There’s several reasons. I’m

averse to government saying it’s legal and then killing it with taxes. But it’s legal, and I’ll live with the way it was done.

BBJ: So you didn’t support legalization because of the tax structure?

Primarily.

BBJ: Do you see it as a conflict that you didn’t sup-port legalization and then you turned around and

invested in legal marijuana?The reason I didn’t support it had nothing to do with

a moral issue. When I ran for the senate they asked me if I smoked marijuana, I said, “Yeah, didn’t everybody in the ‘70s?” I tell people the honest truth. So I have no problem with people who smoke marijuana. I have a problem with how government runs things sometimes.


MARIJUANA, PAGE 6

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Crystal Reef AquaticsNEW BUSINESS

Enterpreneur with passion for saltwater finds market for high-end aquariums

Aquariums and fish tanks are notoriously difficult to maintain. Julian Friedman, owner of Crystal Reef Aquat-ics, said technology is making it easier.

Inside the front door of the warehouse-like space he shares with Northern Lights Gardening at 4159 Hannegan Road, a row of tanks blooming with colorful coral and other invertebrates fills a shelf.

The 8-gallon tanks rely on water movement to keep their marine ecosystems in balance.

“What we have here is a glass box with a pump in it and a sponge filter,” Friedman said. “I have these to show people that you don’t necessarily need to have all the fanci-est gear.”

The fanciest gear is just around the corner. An 8-foot-wide tank that serves as Friedman’s portfolio to potential customers houses multiple varieties of coral and bright fish and crustaceans with names like firefish goby, arrow crab, and astrea snail.

A computer system controls the tanks’ lights, feed-ers, pumps, and cameras, which all connect to the cloud through the shop’s Wi-Fi signal. When Friedman isn’t at the shop, he can monitor his aquarium tank through the cloud. It’s the latest in aquarium technology, and popular with serious hobbyists.

“It’s an additional fail safe. You can give it a succession of parameters and what you want the system to do to

mediate problems,” Friedman said. “People are more likely to succeed in this day and age with technology.”

Friedman, a former fish tank hobbyist with a garage full of aquarium equipment, serves a market of high-end, saltwater aquarium enthusiasts. His specialization draws customers from as far as Bellevue and Seattle, he said.

“Bellingham itself isn’t a big enough market yet,” he said. “But I’m such a niche thing that people travel. My big-gest market outside of Bellingham is actually Oak Harbor, which is well over an hour away.”

Eight to 10 other shops in the state focus on saltwater, Friedman said. A saltwater-focused shop is rare compared to a coffee stand, he points out, but not so rare that he doesn’t have to strive to be better than his competitors. One way Friedman sets himself apart is with his ethics.

The marine life in Crystal Reef Aquatics comes from all over the planet. Mostly, Friedman buys from a distributor in Los Angeles that he said has a short supply chain. Most creatures in the shop are wild-caught, and Friedman tries to buy sustainably caught or aqua-cultured fish, he said.

Before opening the shop Friedman and a former busi-ness partner, whom he bought out in June (Friedman is currently the sole-employee at Crystal Reef Aquatics), went to Los Angeles to meet potential distributors and tour facilities.

He wanted to meet people face-to-face before starting a long-term business relationship. Some of the distribu-tion centers they toured were “big buildings with dead fish everywhere,” Friedman said.

Friedman prides himself on his process for quarantining fish before selling them. The back of his shop has about a dozen tanks with new fish. They stay in the quarantine tanks for three weeks to a month and a half, depending on what kind of treatment they need, before Friedman sells them to customers or adds them to an aquarium in his shop.

This process reduces the chance of spreading disease. An advanced hobbyist may have $700 dollars worth of fish in their tank at home.

“Let’s say a $60 fish comes into your aquarium with a parasite that infects the rest of your fish, and over the next couple months they all die,” Friedman said. “Well, then that $60 fish actually cost you $760.”

The quarantine process is expensive and requires Crys-tal Reef Aquatic’s prices to be higher than other stores.

Retail is the majority of Crystal Reef Aquatic’s business, but Friedman also designs, installs and services aquariums.

“I have to be a vet, plumber, electrician, systems design-er--this is a really challenging job in all regards,” Friedman said. “I’m passion-driven at this point and this is some-thing I love to do.”

BY OLIVER LAZENBY The Bellingham Business Journal

Oliver Lazenby, associate editor of The Bellingham Business Journal, can be reached at 360-647-8805, Ext. 5052, or [email protected].


(Above) Fish in a one of the simpler tanks at Crystal Reef Aquatics. (Left) Julian Friedman, owner of Crystal Reef Aquatics, cleans the outside of a display tank. A computer controlling the tank is connected to wireless internet, allowing Friedman to check on water temperature, salinity, and other variables using cloud computing. PHOTOS BY OLIVER LAZENBY | THE BELLINGHAM BUSINESS JOURNAL

Crystal Reef Aquatics finds niche in saltwater aquariumsSeptember 2014 The Bellingham Business Journal 5

The percentage of women working in the aerospace industry in Washington has remained stagnant for more than 20 years, according to a state labor market economist.

Women account for one in four jobs in aerospace and that has changed little since the 1990s, said Anneliese Vance-Sherman, an Employment Security Department economist based in Everett.

“I try not to go in with too many preconceived ideas when looking at the data,” Vance-Sherman said. “I knew it was going to be a male-dominated industry, but I thought there was going to be some change.”

That snapshot is for the entire industry, from accoun-tants and receptionists to machinists and CEOs.

The percentage is even lower when focusing on engineers and management.“It’s far fewer,” said Sue Chodakewitz, chair of Women

in Aerospace, a nonprofit in Washington, D.C., dedicated to expanding opportunities for women in the industry. “It’s not just CEOs. It’s senior managers and executives.”

On the positive side, women who work in aerospace in Washington make far more than men and women in other professions.

And while there’s a wage gap between the genders with-in aerospace, it’s been narrowing slowly and surely.

The numbers aren’t surprising for people who work within the industry, said Melanie Jordan, the chief operat-ing officer for Pacific Northwest Aerospace Alliance.

But Jordan said she’s seen changes within the industry during her career. She now sees women in every niche of the aerospace industry.

“What we need to do is encourage our young people and young women, to ... engage them in math and science in everyday life,” Jordan said.

Vance-Sherman did her research when she was asked to give a talk at a Women in Aerospace luncheon hosted by the PNAA this summer. The focus of the conference was the changing demographics of the aerospace workforce.

The first thing that Vance-Sherman did was take a look at a U.S. Census database that combines federal and state numbers to get a picture of employers and employees.

What she found was consistent under-representation of women in the aerospace workforce since 1991, the oldest available data, Vance-Sherman said.

“I found that overall, when we’re talking about gender, the aerospace workforce is, give or take since the early 1990s, about 25 percent of the workforce,” she said.

When looking at wages, Vance-Sherman found that there’s a wage gap between men and women who work in aerospace.

Men who work in aerospace made on average $89,943 a year compared to $77,016 a year for women, according to Census data from 2012, the most recent available data.

Women in aerospace make far more than men and women in other professions in the state.

The average wage for men in Washington is $65,463 a year. Women in the aerospace industry in Washington make almost double the $40,932 for women in other jobs.

And the wage gap between genders in aerospace is nar-rowing, while it’s not doing so as quickly in other indus-tries.

In the early 1990s, women in the aerospace industry made about 60 cents for every dollar that men made. That’s increased to more than 80 cents on the dollar. In other professions, women made about 60 cents for every dollar that men made in the early 1990s.

And that has stayed the same over the years.The data has limitations since it lumps all jobs together

within the industry. The wage gap probably becomes closer when comparing

like jobs, said Jordan, adding she’s been in the chair mak-ing decisions on hiring.

“For the most part, you have a salary in mind,” Jordan said. “Whether it’s a man or a woman, you’re not going to change that number.”

But she said it’s a simple fact that there aren’t as many women who are engineers or aerospace executives as men.

Aviation Week takes an annual look at demographic data for the aerospace and defense industry each year. In numbers released last month, the publication found that just 15 percent of engineers are women. And that just 11 percent of women occupy senior engineering executive positions.

The gender gap is an issue that troubles academics, said Carole Rickard Hedden, executive editorial director for Aviation Week.

Engineering schools also see low numbers of women students.

“They are flummoxed,” she said. “If they can’t move their needle, the companies can’t move theirs.”

There are probably all sorts of reasons for the gender gap, said Chodakewitz of the nonprofit Women in Aero-space.

She said it’s a bit like the construction industry, which is thought to be such a traditionally male domain that women gravitate away from it as a career choice. She notes that just 5 percent of pilots are women.

And that becomes a self-fulfilling prophecy, she said.“I don’t think there’s anything inherent in the aerospace

industry that would be a roadblock for any competent engineer of either gender,” Chodakewitz said. “There may not be the models in place for young women who are deciding what path to choose in their career.”

There’s an opportunity for change to happen quickly, said Jordan of PNAA.

The Baby Boomer generation is reaching retirement age. As they leave the workforce, there will be more opportu-

nities for women in younger generations.“When you look around you see a lot of women in

aerospace,” Jordan said. “They may not be engineers and they may not be in the executive suites, but there are more opportunities to do that.”

What needs to happen is for young women and girls to take the science, technology, engineering and math cours-es — the STEM courses, Jordan said.

Women within the industry need to mentor young women to keep them inspired to stay on the course from very early ages through college, she said.

For her part, Vance-Sherman hopes that the research will lead people to ask further questions.

“It’s not really my place to answer those questions,” Vance-Sherman said. “My

role is providing information to help industry leaders and help people throughout out state make well informed decisions.”

Women in AerospaceBY JIM DAVIS

The(Everett) Herald Business Journal

The school created programs in precision machining with room for 27 students. A separate track called engineering pathways will allow 50 students to get trained in three main areas: mechanical engineering, manu-facturing technology, and composites manufacturing.

McKeown said the programs are “high-demand, high-cost programs” with expensive equipment and small classes. One piece of machining equipment can cost $400,000, she said.

To support the new programs, the college hired two new full-time faculty, several part-time faculty, and expanded advising, recruiting, and support services.

The programs will debut this fall. School administrators and faculty began working before they received the grant to have the programs ready in time. They knew they could get some grant money, and administrators were already focused on expanding the school’s aerospace and manufac-turing curriculum, McKeown said.

“We actually had the precision machining faculty position posted before we got the money,” she said.

“We were confident that we would get some resources and we knew we had this really short timeline. We were ready to go and we had these people hired in early July.”

Will students find work?Boeing currently makes 42 737s,

one of its primary planes, every month at its assembly plant in Renton. By 2017, Boeing plans to build 47 737s a month, the highest rate ever, accord-ing to an October 2013 press release.

But Boeing’s number of employees isn’t expected to change. On Aug. 25, the company announced 70 layoffs.

Boeing spokesperson Peter Pedraza said the company is thinking about potential workforce shortages and preparing for them through its intern-ship program, and investments into programs that inspire students to con-sider a technical career.

He said the company doesn’t expect to have problems with an aging work-force retiring in great numbers. The company’s retirement rate among employees who are qualified to retire is 2.2 percent, he said.

“There’s no doubt that Baby Boom-ers are getting ready to retire, but we also have younger people coming in,” Pedraza said. “Characterizing it as this mass exodus wouldn’t be completely

accurate.”Several Bellingham companies

manufacture parts for Boeing. Zodiac Aerospace laid off more than 50 work-ers from its Bellingham manufactur-ing facility in January, according to a Bellingham Herald article. At that time, Zodiac general manager Derek Neumann said the layoffs were “a short-term hiccup,” and that the com-pany’s long-term outlook is strong.

According to the state Workforce Training and Education Coordinat-ing Board’s annual aerospace manu-facturing skills report, 81 percent of surveyed firms reported hiring new employees in the last 12 months.

Demand for a few specific occupa-tions including composites manufac-turers, manufacturing engineers, and several other positions, is expected to grow due to retirements, the survey found.

McKeown said that even if students in the college’s new programs don’t find jobs in aerospace, manufactur-ing programs will train students for a variety of different work.

“These programs lead into a lot of other fields,” she said. “The state has made a huge investment to keep Boe-ing here. Who knows what’s going to happen in 10 years, but I think Boeing is strong.”

AEROSPACE, FROM 1

If you’re going to legalize alcohol then you might as well legalize marijuana. Let’s keep our prisons from get-ting overcrowded with unnecessary arrests. Let’s keep people from being tormented unnecessarily because they want to use a substance that helps them in their health.

BBJ: Has anything surprised you about how legaliza-tion process has worked so far?

The supply of the product itself has been a challenge and a surprise. I thought the state probably would have thought about what’s necessary for the amount of stores being opened.

Site locations is a big challenge that can be very hard to deal with. Banking was an extreme challenge that we’re still working on. I think eventually that will be ironed out. I told everyone we’ll take one step forward and then find out what our next two steps back will be.

BBJ: What does the future look like for retail mari-juana investment?

I think right now this is the tip of a wave. I think the whole thing could change. I think there’s going to be changes in the White House and Congress that are going to have effects on this.

I think as more states roll towards legalization we’re going to see a lot more movement towards federal legal-ization. Eventually, you could see changes in whether tobacco companies or some other entities decide wheth-er they want to be involved.

MARIJUANA, FROM 3

Aerospace demographic slowly changing, but wage gap and lack of women persist


Market Indicators

3%

6%

9%

JJMAMFJDNOSAJJMAMFJ2013 2014

Unemployment rateJuly 2014: 5.3% July 2013: 6.8 %

Includes non-seasonally adjusted �gures in Whatcom County

62.5%

65%

67.5%

70%

JJMAMFJDNOSAJJMAMFJ

Labor force participation rateJuly 2014: 63.5% July 2013: 64 %

Includes non-seasonally adjusted �gures for Washington State

2013 2014

SOURCE: WASHINGTON STATE EMPLOYMENTSECURITY DEPARTMENT SOURCE: UNITED STATES BUREAU OF LABOR STATISTICS SOURCE: U.S. BANKRUPTCY COURT, WESTERN DISTRICT OF WASHINGTON

0

10

20

30

40

50

60

JJMAMFJDNOSAJJMAMFJ

Chapters 11,13Chapter 7

BankruptciesYear-to-date: 806 Annual change: �20.69%

Includes �lings for Chapters 7, 11 and 13 in Whatcom County

2013 2014

Jobs: Sinking unemployment rate plateaus

$500K

$1M

$1.5

$2M

$2.5M

JJMAMFJDNOSAJJMAMFJ

Sales-tax distributionYear-to-date: $11.23M Annual change: -1.22%

Includes basic and optional local sales tax to Bellingham

2013 2014

300

600

900

1200

1500

JJMAMFJDNOSAJJMAMFJ

Motor-vehicle registrationsJuly 2014: 1,324 July 2013: 11,202

Includes original registrations in Whatcom County

2013 2014

SOURCE: WASHINGTON STATE DEPARTMENT OF REVENUE SOURCE: WASHINGTON STATE DEPARTMENT OF LICENSING SOURCE: BANK OF CANADA

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

JJMAMFJDNOSAJJMAMFJ

Canadian dollarJuly 2014: $0.93 April 2013: $0.96

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

2013 2014

Spending: Motor vehicle registrations stay high

Housing sale pricesAverage: July 2014: $295,193 July 2013: $280,667

Median: July 2014: $265,000 March 2013: $252,000

200k

250k

300k

350k

JJMAMFJDNOSAJJMAMFJ2013 2014

Average price

Median price

200

300

400

500

JJMAMFJDNOSAJJMAMFJ

Housing salesClosed: Year-to-date: 1,561 Annual change: -5.57%

Pending: Year-to-date: 2,265 Annual change: +2.92%Includes sales of single-family houses and condos in Whatcom County

Closed salesPending sales

2013 2014

SOURCE: NORTHWEST MULTIPLE LISTING SERVICE SOURCE: NORTHWEST MULTIPLE LISTING SERVICE SOURCE: CORELOGIC

1%

2%

3%

4%

5%

JMAMFJDNOSAJJMAMFJ

Foreclosures & DelinquenciesDelinquency rate: June 2014: 2.63% June 2013: 3.62%Foreclosure rate: June 2014: 1.03% June 2013: 1.37%

Foreclosure rate

Delinquency rate

2013 2014

Housing: Prices down, closed sales up

10k

20k

30k

40k

50k

60k

70k

JJMAMFJDNOSAJJMAMFJ

Airport tra�cYear-to-date: 329,842 Annual change: -16.90%

Includes total enplanements at Bellingham International Airport

2013 2014

1,000

2,000

3,000

4,000

5,000

JJMAMFJDNOSAJJMAMFJ2013 2 0 1 4

Cruise terminal tra�cYear-to-date: 14,546 Annual change: - 1.40%

Includes inbound and outbound passengers at Bellingham Cruise Terminal

SOURCE: PORT OF BELLINGHAM SOURCE: PORT OF BELLINGHAM SOURCE: CITY OF BELLINGHAM

0

$5M

$10M

$15M

$20M

$25M

$30M

JJMAMFJDNOSAJJMAMFJ

Building-permit valuesBellingham: Year-to-date: $113.51M Annual Change: + 93.33%

2013 2014

Other factors: Seasonal rise for air travel

Notes: Graphs include the most recent data available at press time. Annual changes show cumulative difference from the same time period during the previous year. Data include raw numbers only and are not adjusted to account for any seasonal factors.


1102905

Mountain bike tourism: A boon to Bellingham economy?

TOURISM

Advocacy group’s survey details cyclists spending habits

Eric Brown calls Bellingham’s culture “bike-centric.” He’s sitting on a bench out-side Kulshan Brewery, beneath a Whatcom Smart Trips sign that says “Ride your bike.”

Trucks carrying mountain bikes drive by on James Street. Their drivers honk and wave at Brown, who is the trail director at Whatcom Mountain Bike Coalition, a nonprofit trail advocacy group. In an hour at the brewery, Brown encounters several mountain biking friends, some who came from as far as Gig Harbor to ride Belling-ham’s trails.

Brown said that mountain bike tourism is common in Bellingham, and most out-of-town bicyclists spend money in town.During a 10-week period between Jan. 30 and April 18, Brown conducted an online survey of local trail users. The survey was done using SurveyMonkey software and publicized through the group’s social media.

“Folks are coming to town to ride, and they’re usually taking advantage of some sort of spending opportunities,” he said.

In total, 749 mountain bikers completed Brown’s survey. Of those, 31.5 percent came from outside Whatcom County. Two-thirds of out-of-town cyclists make more than $70,000 a year, and more than half reported spending a minimum of $40 each time they visited at breweries, restau-rants, hotels, gas stations, bike shops, and grocery stores.

“Mountain bikers are an affluent crowd,” Brown said. “They’re not the dirtbag hip-py-type everyone thinks they are.”

Seventy-two percent of nonlocal survey responders said they visit Bellingham at least quarterly to ride trails, with 25 per-cent coming monthly. About half of those out-of-town mountain bikers come from the Seattle-area, and 20 percent from Van-couver, B.C.

Dave Vitt, owner of Kulshan Brew-

ery is a mountain biker himself. He said mountain bike tourism makes up enough of his business that he’d notice it if people stopped coming from out of town to mountain bike in Bellingham.

Kirsten Henderson drove from Seattle to Bellingham regularly to mountain bike before she moved to town for a job as operations manager at Fanatik Bike Co., on N. State St.

“Our first stop would always be Haggen to get some food for the trail,” she said. “Then after we’d always go to a restaurant and grab a beer and some food. I think that’s true for most people.”

Fanatik Bike Co. carries maps of local trails which Henderson said are especially popular with mountain bike tourists. In the last year they’ve sold more than 500.

What brings all those mountain bikers to Bellingham?

Brown said it’s the trails. Most of the local trails traverse a 3,000-acre privately owned forest known to mountain bikers as Galbraith Mountain. The trails, which are just east of Bellingham between Lake Pad-den and Lake Whatcom, are closer to an urban center than most popular mountain biking destinations in Western Washing-ton, Brown said.

They’re also a big network, with about 50 miles of trails on Galbraith Mountain that connect to other riding areas near Lake Whatcom.

“I think at the end of the day it’s the type of trails and the variety,” Brown said. “We have technical single-track; flowy, jumpy trails; true cross-country loops; we have a little of everything.”

Galbraith Mountain drains well because of underlying sandstone and dirt that local riders rave about (one bike company employee called it “the best dirt in the world”). That makes it rideable year-round, Brown said.

What businesses do out-of-town cyclists frequent?

Statistics are from an online survey of local trail users conducted by the Whatcom Mountain Bike Alliance. In total, 749 cyclists repsonded to the survey, and 222 from outside of Whatcom County answered this question. Source | Whatom Mountain Bike Alliance

MOUNTAIN BIKING, PAGE 20

BY OLIVER LAZENBY The Bellingham Business Journal


September may signal the official end of summer and the beginning of another school year, but that cer-tainly doesn’t translate to a decreased participation in outdoor events and activities in Bellingham and through-out Whatcom County. In fact, I count myself among the many who feel Sep-tember is the absolute best month to enjoy the great outdoors.

I have always appreciated autumn’s contrast of warm days and cool nights. Sep-tember is one of the driest months of the year, averag-ing just above 1” of precipi-tation. The summer sun has warmed the lakes and bays to a temperature I refer to as “brisk” rather than “frigid”. And most years, the final stretch of the Mt. Baker Sce-nic Highway – the road to Artist Point is still open.

September is also a good time for whale watching excursions, sunset cruises on the bay, paddle board-ing or kayaking, kite flying, or hiking on high elevation trails that may have just shed their final vestige of snow. The fury of spring run-off has dissipated into a more genteel opportunity for river rafting or canoeing.

Farmer’s markets and produce stands throughout the county are overflow-ing with fresh fruits and vegetables. It’s still warm enough to dine outside, but cool enough to order the soup du jour.

If all that isn’t enough to convince you to take some time for yourself this month, consider this report from the U.S. Travel Association: Overwhelmed America: Why Don’t We Use Our Paid Time Off?

According to the report, nearly three-quarters of American workers say they are stressed at work, with one-in-four reporting they are either “very” or

“extremely” stressed. Yet, despite study after study which recognizes the health benefits and increased productivity resulting from taking time off, 41% of

American workers surveyed indicate they routinely plan to leave some of their PTO unused.

How’s this for a new plan?Use it. Take a trip…

across the country or around the world. I admit,

that’s not very realistic but here’s something extremely cost effective you can do: explore your own back-yard. Schedule time off this month to experience

autumn in Whatcom Coun-ty and you will return to the job happier and healthier.

This isn’t just my personal recommendation. Senior business leaders surveyed by USTA agree that time off from work delivers benefits to their employees and com-panies. 91 percent believe employees return from PTO recharged and renewed – and ready to work more effectively.

Workers themselves (96%) recognize the impor-tance of time off – to relax (90%); do what they enjoy (88%) which makes them happier (85%). And don’t worry about “vacation head” when you return to work. 65% of American work-ers say their concentration and productivity improve with PTO, and 61% report greater satisfaction at work afterwards.

If you need ideas about places to go and things to do with these days off, we invite you to let us help you.

Bellingham Whatcom County Tourism has maps and apps, brochures and guidebooks full of informa-tion about our area. You can browse through our website, bellingham.org, and

download our visitors guide or our mobile app. Check out our calendar of events to see if there’s something in particular you want to watch or participate in.

Armed with all this online information, we encourage you to stop by

our Information Center in the Lighthouse Building (904 Potter Street – just off Lakeway) or downtown Bellingham (1306 Com-mercial Street). Our knowl-edgeable staff and volun-teers will help you plan the perfect way to spend your

PTO.We wouldn’t want any-

one to think you are being selfish – so why not invite some out of town friends and family members to join you. They probably need to recharge as well.

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

Take Time to Enjoy September

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BY OLIVER LAZENBYIThe Bellingham Business Journal

A long, hot summer kept local air-conditioning installers busy. Marr’s Heating and Air Condition-ing installed about twice as many air conditioning and cooling units this summer compared to last summer.

“You could pretty safely say it’s been the biggest year for cooling units in the last 10 years,” said Ken Marr, owner of Marr’s Heating. “I can tell you anec-dotally it’s got to be at least double or more for air conditioners compared to the year before.”

Cooling units includes more than just air condi-tioners. Marr also installs heat pumps, which can both heat and cool. They’re popular in buildings that aren’t connected to natural gas because they heat more efficiently than electric heaters. In the summer, a reversing valve allows them to cool air.

Heat pumps cost $600 to $1,000 more than air conditioners, but Marr is selling more of them than air conditioners, he said.

Marr’s father started the company, and Ken Marr began installing duct work at age 12. Since his days crawling around under houses with his dad, Marr has seen other hot summers. When summer starts early, like it did this year, Marr sells more cooling units.

“The earlier your house gets hot in the season, the more you’re inclined to do something about it,” he said.

July started with 90-degree highs and a 10-day heat wave in western Washington. In late August, temperatures at Sea-Tac airport were on track to break the record for hottest July and August ever.

Heat isn’t the only factor for how many people install cooling units in their homes. The slightly improved economy is also a factor, Marr said.

Houses heat up mainly through their windows - especially east and west facing windows, which let in sunlight at the beginning and end of the day when the sun is low. Window size and location is one of the biggest factors Marr uses to calculate the size of air conditioner to install.

Newer houses tend to have bigger windows. Marr also suspects that people spend more time at home

during the summer than they used to. “You probably have cooling in your car and at work,

everywhere but in your house,” Marr said. “Without air conditioning, you’re going to come to where you spend

most of your time and be uncomfortable.” Barron Heating and Air Conditioning, with offices in

Mount Vernon and Ferndale, is a bigger company than Marr’s Heating and Air Conditioning. They haven’t had

as dramatic an increase in cooling unit installation, said sales manager Chris Baisch.

Baisch said Barron’s hasn’t had as dramatic an increase in installations as Marr’s, but he called the season “fantastic,” and lon-ger than usual.

“Barron is one of those companies that’s going to get a high volume of calls. Ringing off the hook is an adequate analogy,” he said. “It might well be over 50 percent more than last year.”

Like Marr’s, Barron also installs more heat pumps than air conditioning units, Baisch said. Sometimes people buy a heat pump for more efficient heating, but end up using it to cool their home also, he said.

“What happens is people are investing in heat pumps from the energy efficiency standpoint,” Baisch said. “I think they realize how often the heat pump is running in the summer. It’s way more than the five nights a year where you can’t sleep.”

Hot summer means business for AC installers

Wayne Barisic of Marr’s Heating and Air Conditioning prepares to braze refrigerant pipe. Marr’s has installed about twice as many cooling units this summer compared to last summer. OLIVER LAZENBY PHOTO | THE BBJ


United Way of Whatcom County unitedwaywhatcom.org

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With every donation to our Community Impact Fund we are increasing c a p s & g o w n s , ensuring a place to call home, and supporting sa fe and hea l thy l i f e s t y l e s f o r a l l .

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By Alex Peterson and Shelli Jones

Their motto is “Building trust since 1935,” but Andgar Corporation does so much more than build trust. They build architectural metals for iconic buildings, food processing equipment and renewable energy specialty construction.

It’s about relationships and reputation. Providing quality products and excellent customer service is the key to their success. And helping customers make greener decisions bene� ts the customer and the planet. That makes each project more ful� lling and establishes the trust and con� dence customers feel toward Andgar.

Andgar Corporation, located in Ferndale, started out as Vans Sheet Metal in 1935. In those days, heating, ventilation and air conditioning (HVAC), sheet metal work and metal fabrication for livestock stalls was their primary business. In 1973, Vans was purchased by Andy Mellema and Gary VanLoo who rebranded the company as Andgar — the � rst three letters of their � rst names.

What started out as a metal fabrication and residential/commercial HVAC company quickly grew to include plumbing, architectural metals, food processing equipment and renewable energy. It’s hard to put a label on them because they do so many things: they manufacture, they build, they service and they invent. But ask them and their answer is clear — they are Design-Build Contractors. What does that mean in layman’s terms? They listen to the customer to design and fabricate exactly what the customer needs — anything mechanical, architectural, plumbing, structural or aesthetic as long as it’s made of metal, all while providing exceptional customer service.

Every time you look at the Bellingham skyline, you see the work of Andgar on

iconic buildings like the red roof of the Old City Hall building (now the Whatcom Museum) and the metal roof of the Depot Market Square building, which houses the Bellingham Farmers Market. Their metal fabrication department had the opportunity to work on the structural, stainless steel, stairs and railings, and specialty fabrication at both buildings.

You’ll see their work at Barkley Village and at Western Washington University’s Miller Hall, Wade King Recreation Center and the Communications building. They’ve also worked at the Peace Arch and Truck Crossing at the U.S.-Canada border.

They have expanded their service and installation territory to six counties including Whatcom, Skagit, Island, San Juan, Snohomish and King and have added a location in Snohomish County to better serve their southern customers. In addition, they provide equipment and service to customers throughout the U.S. and Canada.

ANDGAR: STRONG AND GROWING

Andgar is not only expanding its territory, it is expanding its staff as well. In 2014, they have added 33 additional employees and their workforce continues to grow. (See job openings on page 3).

Andgar currently has 140 employees whose longevity proves that they are happy in their jobs. They have very little employee turnover. Ten percent of their employees have been with the company for more than 20 years and 23 percent for more than 10 years.

“Andgar really cares about their employees; we’re all family,” said Home Comfort Specialist Erin Pedack.

One way Andgar helps to build employee morale and bonding is “hot lunch Friday.” Employees take turns providing lunch for the

staff every Friday. It gives everyone a chance to catch up with one another and encourages the team environment.

There isn’t a lot of employee turnover, so there is a lot of cohesiveness and teamwork within and between departments. Many members of the team are cross-trained in different skills so that when there is ebb or � ow between seasons, there are enough workers for the jobs. The company also focuses on the upward mobility of their employees. Most managers and supervisors

Chamber member pro� le –Andgar Corporation: Building trust and so much more

Photos: Two iconic Bellingham buildings featuring work by Andgar - Depot Market Square (above) and Whatcom Museum (below). Copyright Tore Ofteness, Tore Ofteness Photography.”


workers for the jobs. The company also focuses on the upward mobility of their employees. Most managers and supervisors started in entry-level positions and worked their way up through the company.

LOCAL HERO

One former employee they are proud to call one of their own is Joe Moser. Moser worked for Andgar for more than 30 years. His quiet, unassuming manner never hinted to his coworkers what he endured during WWII.

His fellow employees were surprised to learn that Moser was a fighter pilot in WWII and was captured by Nazi forces in 1944. Moser didn’t speak of his harrowing experiences to anyone he worked with. They didn’t learn of it until Moser’s autobiography about his experience was published in 2009. The book, entitled “A Fighter Pilot in Buchenwald: The Joe Moser Story” tells his story of being shot down, hiding out with the French Resistance, being captured by Nazis, being sent to the Buchenwald Concentration Camp then sent to Stalag Laft III and barely surviving a death march to yet another camp.

Moser received the Distinguished Flying Cross for his heroism.

Moser was also honored by the Seattle Seahawks when he was asked to raise the 12th man flag at the Seahawks game on Veterans’ Day, November 11, 2012.

REPUTATION IS EVERYTHING

Referrals are key. Andgar relies solely on providing quality work that speaks for itself — referral-driven opportunity is the goal. They are all about relationships. As HVAC manager Kevin Pike says they are about “helping clients find solutions and developing collaborative partnerships.” Pedack says that she sees her job as helping people make green decisions within their budget, decisions that help improve one’s life. Pedack quotes the old adage – “It’s about farming, not hunting. We cultivate customers and that leads to growth.”

AWARD-WINNING SAFETY

Full-time Safety Representative Rod Visser’s job is providing the best possible safety program the construction industry has to offer. He is proud that Andgar’s safety

record continues to be one of the best in the construction industry as it’s an integral piece to who they are and how they work.

Their dedication to employee safety was acknowledged when Andgar received the Associated General Contractors of Washington Safety Excellence Award in 2011 and 2012. They are also Tier 1 members of Puget Sound Energy’s Contractor Alliance Network, which is based on superior customer satisfaction and employee training.

COMMUNITY INVOLVEMENT

Andgar also works with Sustainable Connections’ Community Energy Program which provides homeowners and businesses with a full energy assessment and action plan including cost-effective alternatives, rebates and reliable contractors. They also work with Northwest Corner Affordable Housing Partners on Housing & Urban Development (HUD) renovations and are a Trade Ally with Cascade Natural Gas and a Tier 1 Contractor Alliance Member with Puget Sound Energy.

In addition to being a family-oriented, they also care about the community. Besides providing 140 family-wage jobs, they generously contribute to Relay for Life, 4-H, FFA, Bethany Christian Services, Whatcom Farm Friends, the Bellingham and Ferndale Food Banks and local schools to name a few.

Andgar also works closely with Bellingham Technical College (BTC). Andgar employees teach courses related to metal fabrication and drafting. They also encourage student interns, many who become Andgar employees. They donate decommissioned and new equipment to BTC for the students to work on which gives the students experience on the type of equipment they will work on in their future careers.

INNOVATION

Andgar innovation has gone into building a variety of food processing equipment. For instance, the carrots that are shaped like dinosaurs and served in Bellingham School District elementary schools are produced by Andgar equipment.

Andgar also developed a number of processing systems designed for the blueberry industry from destemming equipment to automated systems that fill blueberry boxes. They also manufacture a variety of food-grade conveyors, sizing equipment,

dewatering systems and foreign material removal systems for berry processing.

Their dedication to helping the farming community become more efficient and profitable is evident in the newest venture - anaerobic digesters.

Andgar has partnered with DVO, Inc. and call this partnership “Regenis.” Regenis develops, builds and services anaerobic digesters in Washington, Oregon, California and Idaho. If you’re unfamiliar with anaerobic digesters, it is a biogas recovery system in which manure is converted into biofuel and other reusable products. Anaerobic digesters accelerate a natural bacterial process in an enclosed facility to break down organic material waste, releasing methane gas. The methane fuels a generator that produces green electricity.

Farm Power Lynden takes both cow manure and pre-consumed food waste to generate electricity. This “farm power” produces enough energy to operate the farm and heat the neighboring farm’s greenhouses. The digester also produces a clean, odorless solid product that is used in the cows’ bedding and a liquid that is nutrient-rich and used as fertilizer.

Regenis has developed, built and maintained a dozen digesters along the West Coast.

The company is dedicated to helping farmers and landowners through every

Andgar

Photo: Edaleen Cow Power LLC, Lynden, WA produces up to 750 kWh. Photo courtesy of Andgar Corp

Photo: Edaleen digester engine and generator. Photo courtesy of Andgar Corp.


stage of the process. “We help with grant writing, project management, operation and maintenance. The digester is pretty low maintenance, but the engines require more specialized labor. We can help train them if they want to do it on their own, but we do stick around to help out in one way or another,” said Andgar Project Development Coordinator Eric Powell.

Their dedication to quality customer service is undeniable, as is their passion for innovation and efficiency.

As they grow and continue to build their company, and expand their territory and workforce, Andgar will always be a local Ferndale company—building trust and so much more.

For more information about Andgar, please visit their website at www.andgar.com.

Job Openings at Andgar:

• Certified Service Technicians (King & Snohomish Counties)

• Operation & Maintenance Technician for Regenis (Idaho)

• Sheet Metal Installers

• Architectural Metals- Construction Installer (Whatcom)

For more information on current job openings or to apply, go to www.andgar.com or call 360-366-9900.

By Alex Peterson

The Bellingham/Whatcom Chamber of Commerce & Industry is accepting nominations for the 2014 Annual Awards, which will be presented Thursday, Dec. 4, at the Lakeway Inn and Conference Center. The categories open for nomination are Large Business of the Year (21 or more full-time employees), Small Business of the Year (20 or less full-time employees), Green Business of the Year and Nonprofit of the Year.

Nominations can be made on the Chamber’s website at www.bellingham.com. Nomination forms are also available at the Chamber office at 119 N. Commercial St., Suite 110, Bellingham.

Anyone can nominate a business; however nominees must be a Chamber member. A directory of Chamber members can be found on the chamber’s website (link to bellingham.com/annual-awards-dinner-nomination-form).

Winners are selected based on criteria including: quality of company management, community service and contribution exceeding the scope of the company’s mission, company growth, educational opportunities and opportunities for advancement, and economic stability.

The 2013 Annual Awards winners were Haggen, Inc. (Large Business of the Year), Bellingham Wedding and Event Rentals (Small Business of the Year), Barron Heating and Air Conditioning (Green Business of the Year), and Interfaith Community Health Center (Nonprofit of the Year).

The Chamber of Commerce’s Annual Awards Dinner is the perfect time to celebrate deserving member businesses and our business community. Join us for a night of food, fun, networking and, of course, awards.

More than 400 business leaders and guests attend the Annual Awards Dinner each year. The 2014 Annual Awards Dinner will feature a formal dinner and musical entertainment. The silent auction will not be included in this year’s festivities. Proceeds from the dinner will benefit the Chamber Foundation. Tickets are available online at bellingham.com.

The cost to attend is $65 for Chamber members and $75 for non-members. Chamber members can purchase a table sponsorship for $600, which includes a table for eight, the company name on the table and a sponsor listing in the event program. Additional sponsorships of awards, food, wine and other event activities are available. For more information, contact Marvin Riggs at 360-734-1330.

Photo: 2013 Young Professional of the Year Matt Despain-Tonjes of SERVPRO of Bellingham (right) receives his award from Red Rokk Interactive’s Tyler Byrd (left). Copyright Genaro Photography.

Chamber 10th Annual Awards Dinner


The Port of Bellingham wel-comes a new marine trades tenant to the Bellingham

waterfront. UK Sailmakers NW will relocate their Anacortes ser-vice loft to 712 Coho Way, in the Marina Square building on Bellingham’s waterfront later this month. This full service loft will be able to repair, recut and modify all sizes and brands of sails, as well as build new sails.

“We were attracted to the central location of our new space,” said owner Stuart Dahlgren. “We plan to get involved with the local yacht clubs, and have already embraced the local boating scene as sponsors of the 2014 PITCH Regatta.”

UK Sailmakers is a leading sail loft company with over 50 lofts inter-nationally. All lofts are indepen-dently owned and operated. The northwest location is committed to North American-made sails, with 99 percent of their sails made in their local shop or in a sister location in Sidney, Canada. The 2,000 square foot Bellingham loft will be managed by returning local sailmaker Dave O’Connor, who started his career in Bellingham with John Staaf of Staaf Sails in the 1980’s.

Around 60 marine trades busi-

nesses operate on Port of Bell-ingham property. This includes Squalicum Harbor, as well as Blaine Harbor, the Bellingham Cruise Terminal and shipyards in Fairhaven. These businesses offer a diverse range of services to both businesses and consumers, everything from fishermen and fish processors to marine electri-cal repair, engine service work, charter boat operators, and larger operations like shipyards that work on large vessels for the US Coast Guard.

All boaters benefit from the array of maritime services available in our area, and spending on these services contributes significantly to our local economy. Combined, tenant operations in marine sup-

plies, sales and services bring in more than $13 million in revenue through local business purchases

and support 471 total jobs The Port is pleased to bring UK Sail-makers to Squalicum Harbor, and is committed to seeking out and placing new marine trades busi-nesses in Whatcom County, as well as supporting our existing marine trades businesses.

The Bellingham Business Journal

Port welcomes new tenant to the waterfrontPORTPORTPORT NEWSNEWSNEWS

September 2014

PORT OF BELLINGHAMCONTACT:Port Administrative Offices360-676-2500

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Business Toolkit

There’s a spirited conversation on LinkedIn about how users decide whether to accept a connection request or not.

The question that started the conversation was: How do you feel about receiving “I’d like to add you to my profes-sional network” notifications?

One group of respondents said they appreciate receiving any invitations to connect, even the non-personal, auto-matically generated ones mentioned above, because new connections help expand their network.

Some shared that they typically accept all connection requests, but if any LinkedIn contacts start spamming them with sales messages they are quick to disconnect with them.

Another few said they dislike receiving any invitations from people they have not met in real life. They either ignore the requests or they reply to ask why the invitation was sent.

Those are some pretty interesting insights into the world of LinkedIn users, right?

It’s about personal choice and comfort level.Reading through the conversation thread it’s clear to

see there are solid opinions on the topic. LinkedIn use is a personal choice and, like any other social media platform, each user has to feel comfortable with why and how they are using the tool.

For those that are on the fence or even unclear about what to do when connection requests are received, I’ll share a few thoughts on why I personally choose to accept nearly every one - even the ones that arrive via an “I’d like

to add you to my professional network” notification.

• I once heard an analogy that compared ignoring LinkedIn connection requests to walking into a networking event and ignoring anyone you didn’t already know. That analogy stuck with me. It’s my personal goal to be open and accessible, and to consistently prac-tice positive networking – accepting connection requests from people I don’t already know is one way to achieve those goals.

• When a connection is made on LinkedIn, both people will start seeing info about each other’s busi-ness on their timeline. That means if you post a status update about projects you’re working on, or services available at your company, the other per-son has a chance to see that info. When done prop-erly (without pushy sales tactics), this type of subtle marketing can be very effective in raising awareness of a company and your personal brand.

• People can switch careers and change employers on a regular basis. While the person sending the invi-tation may not be a solid networking contact today, they (or you) may land someplace interesting in the future…you never know what’s ahead. LinkedIn serves as a virtual Rolodex so current contact infor-mation is always at hand.

• Most of us have been through career transitions; many of us have watched friends or our own kids take the first step down their career path. During those times we’ve all hoped someone would be nice along the way. Sometimes the simple act of accept-ing a LinkedIn connection request can make a dif-ference to someone just starting out. It’s free and easy good karma.

It’s time to continue the conversation; let’s hear from you. What are your thoughts about LinkedIn and receiving connection requests from people you don’t know in real life? Have you had positive or negative experiences? Do you mind receiving impersonal requests or do you prefer a personalized approach? Share your thoughts in the com-ment section of the online version of this column.

Should you accept all LinkedIn Connection requests?

Patti Rowlson

On Social Media &

Marketing

Patti Rowlson is a marketing consultant and social media manager at PR Consulting, Inc. She helps Whatcom County small businesses identify, implement and consistently maintain marketing-related programs. Learn more about small-business marketing by connecting with PR Consulting on social media sites or by visiting www.pattirowlson.com.

Creating a game at work invites engagementSometimes when I use the term “game”

in the same sentence with “business,” the response I get goes something like this,“You can’t make a game out of busi-ness; business is serious.” After we talk about it for a while most people usually recognize that my idea of business being a game does make some sense. Business is a game grown-ups play for real money. There’s winning, losing, prizes and sur-prises just like any good game.

So if business is a game, albeit a seri-ous one, why don’t we do more to bring out the game-like qualities in the work-place? After all most of us do enjoy play-ing games of many types and we can get pretty invested while we are playing. The average North American workplace is currently operating with about 30 percent of the workforce reporting being fully engaged; hardly what you’d expect from a great game.

Last week I had an opportunity to visit a medical device manufacturing facility located in my area. A good friend recently took on the position of Chief Operating Officer there and he wanted me to see the work he had done with the workforce to reduce the errors in the production of the custom devices they make and sell. He’d been bugging me about it and even though my primary interests lie more with employee engagement I decided

that maybe I had something to learn from his quality initiatives.

I have to admit, I had not made a connection between quality initiatives and employee engage-ment. When I arrived he took me out on the production floor to watch the pro-cess he had been using for about four months. I mentioned earlier that this company

produces custom products and they are complex and expensive for both manufac-turers and users. Because of the complex-ity, the opportunities for error are many. Errors are costly both in terms of money and time to delivery. Historically, errors at the company had taken a toll on their competitiveness in an industry that has become global.

Out on the production floor I saw charts indicating that significant progress had been made in error reduction even

MikeCook

On Managers & Employees

COOK, PAGE 19


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Building Fore TomorrowThe Building Industry Association of Whatcom County’s

Annual Golf Classic Benefits the BIAWC Construction Scholarship Fund and the Construction Careers Academy

The BIAWC holds an annual Golf Classic to benefit the BIAWC Construction Scholarship Fund and the Construction Careers Academy. The Construction Careers Academy is an interdistrict program offered to Whatcom County high school students. It is designed to prepare students for careers in the construction industry through hands-on projects, presentations, job shadowing and worksite tours. The funds raised help provide needed support materials for this program. The BIAWC Scholar-ship Fund provides scholarships toemployees and family of BIAWC members. This years scholarship recipients are Paige Hauter, Taryn Knutson, Makalee Latta, Holly McKinley, Jessie Pemble, and Leslie Siebring. The 2014 BIAWC Golf Classic will take place on August 22nd at Shuksan Golf Course. This 2014 tournament is sponsored by Nolans Roofing and Peoples Bank. To sign up please contact us for more information at (360) 672-4247 or visit us at our website www.biawc.com.

Building Industry Association of Whatcom County

1650 Baker Creek Place Bellingham, WA 98226360-671-4247 www.biawc.com

Sponsored content by BIAWC

biawc.com 1650 Baker Creek Place, Bellingham, WA 98226 360-671-4247

Ferndale is stepping up as a leader in providing residential housing in Whatcom County. On Aug. 4, the Ferndale City Council approved

a measure allowing “lot averaging” throughout the city’s residential zones, action that’s bound to help prospective homeowners. In many cases, land in Whatcom County involves criti-cal areas – wetlands or streams, primarily, that require building setbacks. These setbacks can prevent construc-tion within 50 to 100 feet or more of a critical area, seriously limiting the use of land zoned for residential (or any other) construction. Another physical constraint may be steep slopes, where construction, if it is possible, can be expensive. Lot averaging lets a landowner work around such limitations, subdividing a parcel so that, while the lots average out to given square footages, the size and shape of individual lots can vary. In a nod to market prefer-ences, Ferndale also allows lot averaging that isn’t tied to critical area concerns. It can be used simply do a bet-ter job of meeting homeowners’ needs. The family with three kids may want a large yard, for instance, while the grandparents next door may want virtually no yard at all. Ferndale isn’t the first city in Whatcom County to do this. Lynden adopted lot-averaging as a standard method of subdividing 10 years ago, reports Lynden Planning Director Amy Harskell. Lynden, Ferndale and Blaine often compare notes, she said, picking up ideas that work for their neighbors. This one is a useful tool. Averaging lets a landowner produce a variety of lot sizes instead of having to create identical, cookie-cutter parcels. Used as a routine subdivision method, this gives a community flexibility to use available land to best advantage, provides consumer choice, helps work around environmental concerns, and helps land supply meet demand. Lot averaging doesn’t create more parcels. If 10 lots are allowed in a given area, two could be large – encom-passing critical areas or creating more expansive and

Ferndale sets bar with ‘lot averaging’Subdivision tool makes best use of land, helps homebuyers

To see Ferndale’s lot-averaging ordinance and staff report, go to the City Council’s Aug. 4, 2014, agenda item posted at

https://ferndale.civicweb.net/Documents/DocumentList.aspx?ID=6426

expensive view properties. Smaller lots could still accom-modate another eight homes. Ferndale’s new ordinance does reduce lot sizes in the city – dropping the “standard” size in each of three residential zones, from 6,500 square feet to 6,000, 8,500 sf to 8,000, and 10,500 sf to 10,000. There’s also a new, overall “minimum lot size” of 3,500 sf that applies in all three zones. Setback requirements also change, from 20 feet in front of homes, 15 feet in back of a house, and 8 feet on the sides, to 20 feet in front (unchanged), 10 feet in back and 5 feet on the sides. The new figures are comparable to what’s allowed in most Bellingham neighborhoods. This ordinance also stipulates that at least 20 percent of each lot must be devoted to open space – landscaping, natu-ral vegetation or recreational use. Common open space areas are allowed. An allowance for “reserve tracts” will enable phased development. For a variety of reasons, property owners may not want to, or have financing to, develop an entire property at once. To avoid throwing off the average for lots that are built in the foreseeable future, land placed into reserve tracts will not be included in lot averaging calculations. The city has approved these changes to comply with the state Growth Management Act, which encourages higher density in urban centers in an attempt to prevent sprawl outside their boundaries. Rather than increasing density, per se, this ordinance will help Ferndale achieve the den-sities zoning already specifies – by encouraging full use of land that’s set aside for homes. In essence, lot averag-ing lets more officially “buildable” land be built upon. Staff notes this isn’t far removed from what’s already been happening in Planned Unit Developments, where lot averaging is allowed through a process of negotiation rather than as standard practice. There, too, the density limit doesn’t necessarily rise, but it’s easier to achieve the densities that zoning does allow. More homes may be built in Ferndale’s three single-family residential zones as land is more efficiently used

in this way, but they will remain single-family houses. And, as staff notes, while “a smaller lot may be more affordable, it does not automatically result in a lower-quality product or a drag on surrounding property val-ues.” Subdivisions with clustered homes or single-family houses with varying yard sizes can be attractive and offer a needed mix of housing styles and prices. Ferndale’s relatively low land costs combined with full urban services have for some time provided the best of both worlds to property owners who want elbow room – potential for a large yard and available city services. This is a city that’s used to typical suburban-style settings. The new ordinance doesn’t prevent creation of large lots or ample yards, but it does offer an alternative to subdivi-sions that consist of only large lots. As Whatcom County grows, we need to consider whatchanges we’re willing to accept, to provide flexibility in using the land that’s left in our urban centers. Market research for the national Realtors and Home-builders associations tells us that about 76 percent of the populace wants a home with a yard, of some kind. We cannot force people into condos or apartments. And we can’t forbid newcomers from moving here – although a city can, sometimes inadvertently, preclude middle- or lower-income residents from buying homes in an area where lots are scarce and that scarcity pushes up home prices. Affordable housing (homes that are affordable) is a very real concern for most of us. Where, and how, are we going to accommodate the people who are expected to move here in the next 20 years, while keeping single-family homes within most residents’ financial reach? Making good and flexible use of the land we have is one very practical way to accommodate growth. Ferndale, by approving lot averaging, has set the bar in terms of pro-viding flexibility and welcoming expected growth. Here’s one city that is going beyond rhetoric to embrace change in a way that helps us meet the future. Our hats are off to Ferndale’s leaders and residents. Mark Schramer, BIAWC Govt. Affairs Chair Linda Twitchell, BIAWC Govt. Affairs Director

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September 2014 17

Public RecordsBUSINESS LICENSESListings, which feature both new and renewed licenses in Bellingham, include business name, licensee name and the business’ physical address. Records are obtained from the City of Bellingham. One Path Design, Timothy Parks, 1101 Undine St, Bellingham, WA 98229.Moon Boy Music, David Howard Lanz, 1511 J St., Bellingham, WA 98225.Pacific Vascular Incorporated, Pacific Vascular Incorporated, 3104 Squalicum Parkway Suite 101, Bellingham, WA 98225.North Coast Financial Services, North Coast Credit Union, 1100 Dupont St., Bellingham, WA 98225.Southlake Construction, Charles F Reynolds, 1144 Lake Samish Road, Bellingham, WA 98229.Wiley Stewart Finishes, Wiley Stanley Stewart, 2419 Huron St., Bellingham, WA 98229.Yun’s Painting, Tae K. Yun, 575 Whitecap Road, Bellingham, WA 98229.Smidges Fur Hut, Ivy Margaret Little 2610 W Maplewood Ave., Bellingham, WA 98225.MCR Services, Orvin Mike Renfro, 5374 E 18th Ave., Bellingham, WA 98226.James M Thompson, James Montgomer y Thompson, 2106 Old Lakeway Drive, Bellingham, WA 98229.Rice Insurance, L.L.C., Rice Insurance, L.L.C., 1400 Broadway St., Bellingham, WA 98225.Left Coast Enterprises, Inc. Left Coast Enterprises, Inc. 1101 N. State St., Bellingham, WA 98225.The Teamwork Group, Inc., The Teamwork Group, Inc., 2215 Midway Lane Suite 201, Bellingham, WA 98226.Flat Floors, Johnny Andrew Murdock, 2513 King St., Bellingham, WA 98225.Whatcom County Ems/Tc Council, Emergency Medical Services Council Of Whatcom County, 1212 Indian St., Bellingham, WA 98225.Connie J. Clement, Connie J. Clement, 2416 Victor St., Bellingham, WA 98225.Dragonwood Designs, Sheri Clark, 2525 Cherry St., Bellingham, WA 98225.Upcycled Artist, Wendelin Ann Dunlap, 301 W. Holly St. Suite U8,Bellingham, WA 98225.Naked Clothing Co., Naked Clothing Co., 126 W. Holly St., Bellingham, WA 98225.Hummingbirds Alley-A Chocolate Drive Thru, Laura L. Kay 2514 Kulshan St., Bellingham, WA 98225.Molly Masland, Molly Allison Masland, 1440 10th St., Unit 217, Bellingham, WA 98225.Angle Advocates Process Service, Richard William Townsend, 2900 Orleans St., Bellingham, WA 98226.Indigo Jones Designs, Matia Indigo Jones, 505 N. Garden St. Apt. 3c, Bellingham, WA 98225.Honey Bee Home Services, Ellyn Joan Lee, 2501 Franklin St., Bellingham, WA 98225.Woo Woo Wonders, Ariel Divina Libre, 2610 Likely Court, Bellingham, WA 98229.Redbox Automated Retail LLC, Redbox Automated Retail LLC, 1225 E. Sunset Drive, Bellingham, WA 98226.Linda Jean Woods, Linda Woods, Licensed Massage Practitioner, 1457 Grant St., Bellingham, WA 98225.Zipcar Inc., Zipcar Inc., 516 High St., Bellingham, WA 98225.Blackline HHP Products LLC., Blackline HHP Products L.L.C., 1325 Marietta Ave., Bellingham, WA 98226.Bellingham Bay Upholstery, Kathleen Duvall Smith, 2736 S. Park Drive, Bellingham, WA 98225.Retail Solutions Northwest, Mark David Whitney, 1723 Sapphire Trail, Bellingham, WA 98226.William O’dea Schenken, William O’dea Schenken, 1125 37th St., Bellingham, WA 98229.D & M Design, D & M Design, 1709 St. Paul Lane, Bellingham, WA 98229.Morgan Stanley Smith Barney LLC, Morgan Stanley Smith Barney LLC, 2200 Rimland Drive, Bellingham, WA 98226.Harley Interiors LLC, Harley Interiors LLC, 2430 St. Clair St., Bellingham, WA 98229.Yacht Sales International, Richard D Johnson, 718 Coho Way, Bellingham, WA 98225.Kulshan Commercial Investment Real Estate Company, Allen Stockbridge, 3366 Southbend Place

Apt. 102, Bellingham, WA 98226.Buffalo Wild Wings, Blazin Wings Inc., 1 Bellis Fair Pkwy Suite 15, Bellingham, WA 98226.The Burkland Law Office, Olivia J. Burkland, 1117 Franklin St., Bellingham, WA 98225.Anchor Society, Jamie Michelle Shannon, 21 Bellwether Way Suite 107, Bellingham, WA 98225.Sunshine Painters, Javier Garcia, 3005 Haxton Way, Bellingham, WA 98226.Select Outpatient Services, Select Outpatient Services, Inc., 4415 Columbine Drive, Bellingham, WA, 98226.Deborah Callender ND, PLLC, Deborah Callender ND PLLC, 1810 Broadway St., Bellingham, WA 98225.Spruce Stationery & Design, Spruce Stationery and Design Co., 1422 Cornwall Ave., Bellingham, WA 98225.Sivvy Taxi, Sivan A. Steffens, 2430 Yew Street Rd., Bellingham, WA 98229.Sanctuary Publishing, Naturae, Inc., 1320 Cornwall Ave., Bellingham, WA 98225.Nails By Dongru, Dongru Chorvat, 2201 James St., Bellingham, WA 98225.Climagrow, Eci Contracting Inc., 1019 Iowa St., Suite 102, Bellingham, WA 98229Verdelux Chocolates, Verdelux Chocolates LLC, 924 Kentucky St., Bellingham, WA 98225.American Scaffold Inc., American Scaffold DBA, 201 Harris Ave., Bellingham, WA 98225.Slow Build Studio LLC, Slow Build Studio LLC 2039 Moore St., Bellingham, WA 98229.TJL PC Repair, Timothy John Loynd, 4760 Parker St., Bellingham WA 98226.JBC Grow, JBC Grow LLC, 2121 Lincoln St., Bellingham, WA 98225.Whatcom County Cannabis Gardens, Kolby Michael Cain, 5373 Guide Meridian Suite D-11, Bellingham, WA, 98226.Lorenzo Hill Studios, LLC, Lorenzo Hill Studios, LLC, 3741 Tree Farm Lane, Bellingham, WA 98226.Eden Home Health, Empres Home Health Of Bellingham, LLC, 316 E. Mcleod Road Suite 108, Bellingham, WA 98226.N W Construction, Vitaliy Y. Yefremov, 1601 Texas St., Apt 1, Bellingham, WA 98229.Freshlook Family Painting ILC, Shawn Scott Willis, 1844 Valencia St., Bellingham, WA 98229.Howard Lusk Construction, Howard Lusk, 680 Old Samish Road, Bellingham, WA 98229.Simrat Transportation LLC, Simrat Transportation LLC, 5583 Guide Meridian, Bellingham, WA 98226.Align Build LLC, Align Build LLC, 1310 10th St., Unit 407, Bellingham, WA 98225.Holman Insurance LLC, Holman Insurance LLC, 4061 Eliza Ave., Bellingham, WA 98226.Oxford Suites Bellingham, OSB, LLC, 4051 Meridian St., Bellingham, WA, 98226.Sign Me Up! Whatcom LLC, Sign Me Up! Whatcom LLC, 2310 Yew Street Rd # B, Bellingham, WA, 98229Skippered Yacht Services, Inc., Skippered Yacht Services, Inc., 1006 Lone Tree Court, Bellingham, WA 98229Divine Flow, Divine Flow, LLC, 1155 N. State St., Bellingham, WA 98225.Specified Fittings, SFI Acquisition LLC, 164 W. Smith Road, Bellingham, WA 98226.Washington Technology Institute, LLC, WAshington Technology Institute, LLC, 1305 Fraser St., Suite D6, Bellingham, WA 98229.Remote Power & Supply, LLC, Remote Power & Supply LLC, 3850 Mustang Way, Bellingham, WA, 98226Lindsay, Lindsay, LLC, 3860 Lindsay Ave., Bellingham, WA, 98229.Audiocomics, LLC, Audiocomics, LLC, 16 Little Strawberry Lane # B, Bellingham, WA 98229.Through Life Stages: Professional Counseling Services, Isabel E Kaufman, 1805 Lakeside Ave., Bellingham, WA 98229.The Bellingham Woodwright, Christian B. Muenscher, 3620 Irongate Road Suite 105, Bellingham, WA98226.Mad Cat Salsa, Mad Cat Salsa Inc, 1 Granite Cir, Bellingham, WA 98229.DS Worlwide Services Llc, DS Worlwide Services Llc, 1501 St. Paul St.,Bellingham, WA 98229.Diamonds From The Rough, Inc, Diamonds

From The Rough, Inc, 1600 Kentucky St., Ste C # 3-4 Bellingham, WA 98229.Squalicum Valley Craftsman Llc, Squalicum Valley Craftsman Llc, 4310 Squalicum Lake, Bellingham, WA 98226.NWRE Investments, Inc., NWRE Investments, Inc., 515 W. Bakerview Road, Bellingham, WA 98226.Benn Design, Llc, Benn Design, Llc, 2106 22nd St., Bellingham, WA 98225.Raney’s, Raney J. Poirier, 2920 Cedarwood Ave., Bellingham, WA 98225.Alderwood Park Health And Rehabilitation, Empres At Alderwood, Llc, 2726 Alderwood Ave., Bellingham, WA, 98225.Highland Health And Rehabilitation, Empres Highland Care, Llc, 2400 Samish Way., Bellingham, WA 98229.Thoughtful Cleaning, Melanie Marcia Schramer, 221 S. Ashley St., Bellingham, WA 98229.Nw Network Techs Llc, Nw Network Techs Llc, 2234 Valencia St. Apt .2, Bellingham, WA 98229.Healing Eats, Healing Eats Llc, 456 Manley Road, Bellingham WA 98229.Ladybuggs L.L.C. Ladybuggs L.L.C., 3060 Northwest Ave., Bellingham, WA 98225.Raining Brains Design, Bryan Shepard, 1003 34th St., Bellingham, WA 98229.Magnetic Legal Marketing, Ingrid Anya Taylor, 2458 Yew Street Road, Bellingham, WA 98229.Essential Lactation, Essential Lactation Pllc, 2332 Lindsay Ave., Bellingham, WA 98225.DLK Exports, Daryl Lee Kaiser, 4717 Parkhurst Drive, Bellingham, WA 98229.Anthony Teer, Anthony Teer, 2620 Sunset Drive, Bellingham, WA 98225.Mt. Baker Blueberry Farm Llc, Mt. Baker Blueberry Farm Llc, 564 Kelly Road, Bellingham, WA 98226.Tarot Of Empowerment, Tarot Of Empowerment, 1202 Kenoyer Drive, Bellingham, WA 98229.DB Sales, Daniel C. Young, 2230 Cornerstone Lane # 214, Bellingham, WA 98226.Juliet Ann Kerr, Juliet Ann Kerr, 1155 N. State St., Ste 520, Bellingham, WA 98225.Lauren Beyer DBA, The Sandwich Odyssey Lauren D Beyer, 2001 Cornwall Ave., Bellingham, WA 98225.Land Of Wisdom Llc, Land Of Wisdom Llc, 4258 Spring Creek Lane, Bellingham, WA 98226.Uncomplicated.Net, Scott Shultis 1414 Electric Ave., Bellingham, WA 98229.Electric Beet Juice Co., Electric Juice, Llc, 1530 Cornwall Ave., Bellingham, WA 98225.Shuksan Overseas Llc, Shuksan Overseas Llc, 356 Viewcrest Road, Bellingham, WA 98229.Crystal Garcia Photography, Crystal Ann Garcia, 2514 Eldridge Ave., Bellingham, WA 98225.Shadow Company I.T. Services, Patrick Martin, 1512 I St., Apt 102, Bellingham, WA 98225.Jessica Anne Tholmer, Jessica Anne Tholmer, 510 E. Chestnut St., Bellingham, WA 98225.Funkrock Designs, Sarah Rosina Guenther, 1208 Dupont St., Bellingham, WA 98225.Dobson Enterprises L.L.C., Dobson Enterprises L.L.C. 301 E. Laurel Road, Bellingham, WA 98226.Aztech Properties Llc, Aztech Properties Llc, 714 Fieldston Road, Bellingham, WA 98225.Ted Ardans Horticultural Consulting, Theodore Michael Ardans, 1725 James St., Bellingham, WA 98225.Megan Cooper, Megan Cooper, 1155 N. State St. Ste 520., Bellingham, WA 98225.K Consulting Llc, K Consulting Llc, 2149 N. Shore Road, Bellingham, WA 98226.2319 King Street, Llc 2319 King Street, Llc, 2319 King St., Bellingham, WA 98225.Boardworks Tech Shop, Johnny Lee Lupo, 909 Squalicum Way # 103, Bellingham, WA 98225.Creative Source Studios, Llc Creative Source Studios, Llc, 3480 Agate Bay Ln., Bellingham, WA 98226.Opus Performing Arts Llc, Opus Performing Arts Llc, 114 W. Holly St., Bellingham, WA 98225.The Language Of Work, Johnilee B. Whiteside, 2120 Young St., Bellingham, WA 98225.Poole Holdings, Llc, Poole Holdings, Llc, 2124 James St., Bellingham, WA 98225.Enderle Property Services, Enderle Property

Services Llc, 4826 Lookout Ave., Bellingham, WA 98229.Living Well, Holley J Dumond, 3609 Lemon Grove Dr., Bellingham, WA 98226.Karma Krane, Karma Krane, 3900 Deemer Rd Apt 303, Bellingham WA 98226.Eco Stylish Baby, Dash V, Llc 2880 Stormus Way, Bellingham WA 98226.I & Wife Thai Cuisine, Weravich Rongprasertkul, 1200 Cornwall Ave.,Bellingham, WA 98225.Corbin Anderson,Corbin Reid Anderson, 1721 Akron Ct, Bellingham, WA 98226.Graham Meltzer, Graham Stewart Meltzer, 2220 C St., Bellingham, WA 98225.Maleauxx, Maleauxx Llc, 505 Larrabee Ave., Bellingham, WA 98229.Iaj Multimedia, Iaj Multimedia, 4614 Celia Way Unit 301, Bellingham, WA 98226.Big Picture, Long Term, Llc Big Picture, Long Term, Llc, 2425 West St., Bellingham, WA 98225.Kettmed, Kettmed Llc, 4430 Fremont St., Bellingham, WA 98229.Campaign For America, Methuselahein Gadfly Llc , 1015 Otis St., Bellingham, WA 98225.Jenai Alexander Llc, Jenai Alexander Llc, 3426 Pinehurst Ct, Bellingham, WA 98226.Nw Door Pro, Northwest Door Pro Llc, 2010 Huron St., Bellingham, WA 98229.Baraa Woodworking Llc, Baraa Woodworking Llc,1428 Ellis St., Bellingham, WA 98225.Mason Harwell, Mason Harwell, 2217 Sweetbay Dr, Bellingham, WA 98229.Jm Works, Juliette Machado, 527 N. Forest St., Bellingham, WA 98225.Miss Emma’s Classic Shaving, Llc Miss Emma’s Classic Shaving, Llc, 1316 St. Paul St., Bellingham, WA 98229.Ambiance Hair Studio Llc, Ambiance Hair Studio, 5 Green Hill Rd, Bellingham, WA 98229.Cascadia Field Moss, Edward Murry, 2024 Iron St., Bellingham, WA 98225.Green Pants Lawn Care, Ryan Boyd, 1708 E. Sunset Dr Apt 4, Bellingham, WA 98226.Hygentech, Christopher David Moser, 680 32nd St. Apt 212, Bellingham, WA 98225.123 Holdings Llc, 123 Holdings Llc, 1153 N. State St., Bellingham, WA 98225.Baja Bath & Body. Baja Bath & Body Llc, 11 Horizon Hill Ln Unit 7, Bellingham, WA 98229.Your Cab Company Llc, Your Cab Company Llc, 2226 Donovan Ave., Bellingham, WA 98225.Evergreen Creative, Evergreen Creative, 2651 E Crestline Dr., Bellingham, WA 98226.San Juans And Beyond, San Juans And Beyond Llc , 2615 S. Harbor Loop Dr., Bellingham, WA 98225.

BUILDING PERMITSIncludes commercial building activity in Bellingham with an estimated valuation listed at $10,000 or more. Records are obtained from the City of Bellingham’s Permit Center. Status updates on permits are available on the city’s website at http://pnw.cc/sVCen.7/21/14 to 7/25/14Issued permits909 Squalicum Way 120, $30,000 for tenant improvement to shell of existing space, includes construction of accessible toilet room, and sheet-rocking faces of existing framing: suite 120. Permit No.: BLD2014-00278. 7/21/14.1189 E. Sunset Drive, $36,767 for commercial: construct stormwater detention vault, Contractor: Joe Hall Construction Inc. Permit No.: BLD2014-00195. 7/21/14.1189 E. Sunset Drive, $390,142 for commercial: construct new fuel center including 697-square-foot sales kiosk building, 5,245-square-foot canopy and associated site improvements. Contractor: Joe Hall Construction Inc. Permit No.: BLD2014-00127. 7/22/14.4167 Hannegan Road, $100,000 for tenant improvement: New indoor growing facility. Permit No.: BLD2014-00280. 7/22/14.4051 Meridian St, $75,000 for construction of 30-foot-long by 20-foot-wide bottomless arch culvert over the West Fork of Spring Creek. Contractor: Colarcurcio Bros Inc. Permit No.: BLD2014-00245.

7/22/14.1500 Cornwall Ave 201-203, $75,000 for tenant improvement: Second floor interior changes for preparation of three new tenants. No change of use. Permit No.: BLD2014-00142. 7/23/14.114 W. Holly St, $60,000 for tenant improvement: Interior alterations, including addition of restrooms on first floor to convert retail space into dance studios. Tenant and contractor: Opus Performing Arts. Permit No.: BLD2014-00361. 7/24/14.4131 Meridian St, $52,000 for racking permit: Shelving for home and accessories departments. Shelving on the sales floor under 6 feet and perimeter shelving under 8 feet.: Burlington Coat Factory. Permit No. BLD2014-00217. 7/24/14.1538 Kentucky St, $251,687 for tenant improvement: New brewery production and tasting room in existing warehouse building: Kulshan Brewery. Contractor: Rader Construction Inc. Permit No.: BLD2014-00176. 7/24/14.Pending applications3715 Irongate Road, $175,000 for tenant improvement: interior remodel of existing building: Mount Baker Vapor. BLD2014-00360. 7.21.14.920 Lakeway Drive, $486,916 for commercial: expansion of Fred Meyer fuel center. Permit No.: BLD2014-00358. 7/21/14.1 Bellis Fair Parkway 410, $60,000 for tenant improvement: remodel of existing retail store: Hot Topic. Permit No.: BLD2014-00362. 7/22/14.710 Birchwood Ave. 103, $600,000 for tenant improvement: for new ambulatory surgery center with new emergency back-up generator that includes concrete pad and fence. No change in use. Existing MRI suite to get smaller. Permit No.: BLD2014-00294, 7/22/14205 W. Holly St, $175,000 for tenant improvement: Converting existing retail space to offices: Logos software. Permit No.: BLD2014-00191. 7/22/14.1600 Carolina St, $1,106,978 for commercial: new 16,178-square-foot two story office and warehouse building: Transition bikes. Permit No.: BLD2014-00363. 7/22/2014.300 Harris Ave, $45,000 for commercial: Install reinforcing columns at the exterior joints along the south and west walls. Permit No.: BLD2014-00367. 7/23/14.525 Harris Ave, $25,000 for commercial: refurbish Fairhaven boat launch restrooms with new siding and doors. Permit No.: BLD2014-00366. 7/23/14.3863 Hannegan Road 106, $40,000 for tenant improvement: construct mezzanine and complete vacant space for new tenant, marijuana grow operation: Fine Detail Greenway, Permit No.: BLD2014-00247. 7/23/14.1009 Larrabee Ave, $55,3000 for remodel of existing garage and house for brewery. Permit No.: BLD2014-00373. 7/24/14.3773 E. Mcleod Road (Squalicum High School), $400,000 for educational: replacement of existing skyroof translucent panels; new flashing and sheet metal work: installation of new structural x-bracing and purlins. Permit No.: BLD2014-00375. 7/25/14.800 Viking Circle, $164,000 for construction of bridge. Permit No.: BLD2014-00374. 7/25/14.7/28/14 to 8/1/14Issued permits2410-2420 James St., $48,000 for commercial alteration: divide space at 2420 for expansion of tenant in 2410: Trader Joe’s. Construct new toilet room in 2410. Contractor: The Franklin Corporation. Permit No.: BLD2014-00338. 7/29/14.916 Kentucky St., $40,000 for tenant improvement: shell improvement for future marijuana processing and production. Install interior wall to fill in existing overhead door. Permit No.: BLD2014-00172. 7/29/14.1501 N. State St., $100,000 for tenant improvement: complete retail shell space for first tenant: self-service canine wash and retail. Contractor: Moceri Construction Inc. Permit No.: BLD2014-00265. 7/30/14.924 Kentucky St., $35,000 for tenant improvement: shell improvement for future marijuana processing and production. Permit No.: BLD2014-00173. 7/30/14.2979 Squalicum Parkway 303, $350,000 for tenant improvement: remodel of existing medical office. Contractor: Fisher & Sons Inc. Permit No.: BLD2014-00323. 7/31/14.204 W. Holly St., $175,000 for tenant improvement:

RECORDS, PAGE 19


converting existing retail space to offices: Logos software. Contractor: The Franklin Corporation. Permit No.: BLD2014-00191. 7/31/14.355 Harris Ave., $232,000 for commercial: repair/replace steel and hoisting components to the passenger ramp and repair concrete counter weight on vehicle ramp: Bellingham Ferry Terminal. Contractor: Neptune Marine LLC. Permit No.: BLD2014-00352. 8/1/14.3863 Hannegan Rd. 106, $40,000 for tenant improvement: construct mezzanine and complete vacant space for new tenant, marijuana grow operation: Fine Detail Greenway. Permit No.: BLD2014-00247. 8/1/14.Pending applications3930 Affinity Lane, $94,188 for new construction: site grading and preparation, cast in place and block retaining walls for development. Contractor: Inland Washington LLC. Permit No.: BLD2014-00285. 7/28/14.2020 Humboldt St., $32,089 for commercial addition: 576-square-foot one-story storage addition to bakery facility. Permit No.: BLD2014-00318. 7/30/14.4071 Home Rd., $375,000 for multifamily: convert from church to motel units and apartments. Permit No.: BLD2014-00160. 7/30/2014.2901 Squalicum Parkway, $344,000 for tenant improvement: remodel of non-patient support services: Heath Hospital Services. Permit No.: BLD2014-00379. 8/1/14. 8/14/14 to 8/8/14Issued permits1815 Ellis St., $87,451 for demolishing an existing structure and installing a new pre-fabricated bridge and chain link fence. Contractor: Faber Construction Corp., Permit No.: BLD2014-00154. 8/5/14.3963 Primrose Lane, $1,445,119 for a new three-story 15-unit apartment building including all site utilities and pacing (construction of fire apparatus, access road under separate fire construction permit). Contractor: Palakika2 LLC. Permit No.: BLD2014-00236. 8/4/14.4 Bellis Fair Parkway, $350,000 for tenant improvement: renovation to provide for a Chipotle Mexican Grill restaurant. Contractor: Kirtley-Cole Associates LLC. Permit No.: BLD2014-00069. 8/4/14.2202 Electric Avenue, $185,101 for commercial: New unheated storage building for Whatcom Rowing Association. Contractor: Wellman and Zuck Construction LLC. Permit No.: BLD2013-00460. 8/4/14.1406 Commercial St., $190,000 for tenant improvement: remodel of second floor interior for ADA upgrades and space modifications for additional offices. Permit No.: BLD2014-00356. 8/7/14.

3110 Newmarket St., $215,000 for tenant improvement: build out space for new dental office. Contractor: Scoboria Construction Inc. Permit No.: BLD2014-00141. 8/814.Pending applications405 32nd St. 305, $225,000 for tenant improvement: Interior renovations to office space. Permit No.: BLD2014-00384. 8/4/14.3815 Primrose Lane, $1,752,369 for a new three-story multifamily building. Permit No.: BLD2014-00383. 8/4/14.2124 James St., $25,000 for tenant improvement: interior remodel to existing salon for new tenant: Kaur Lounge. Permit No.: BLD2014-00386. 8/6/14.522 W. Bakerview Road, $765,000 for commercial: new 5,108 square-foot dental clinic and parking lot. Permit No.: BLD2014-00388. 8/6/14.310 E. Magnolia St., $624,240 for new two story office building to replace existing one story building. Permit No.: BLD2014-00387. 8/6/14.2020 Humboldt St., $32,089 for commercial addition: 576 square-foot one-story storage addition to bakery facility. Permit No.: BLD2014-00318. 8/7/14.

LIQUOR AND MARIJUANA LICENSESRecords include license activity in Whatcom County. They are obtained from the Washington State Liquor Control Board, online at www.liq.wa.gov.NewNew license applications7/16/14 to 8/7/14Silver Beach Grocery, Noor Corporation; Manpreet S. Sidhu applied for an addition/change of class to an existing license to sell beer/wine. 609 North Shore Drive Suite B, Bellingham WA 98226. License No.: 352918. 8/6/14.Oxford Suites Bellingham, OSB LLC; Curtis Baney and Robin Jean Baney applied for a new license to serve beer/wine/spirits at a hotel for on-premises consumption. 4051 Meridian St., Bellingham WA 98226. License No.: 418367. 7/30/14.I & Wife Thai Cuisine, Weravich Rongprasertkul and Passu Natanyapat applied for a new license to serve beer/wine in a restaurant. 1200 Cornwall Ave., Bellingham, WA 98225. License No.: 084811, 7/25/14,Uptown Art Studio, Phoenix Linin Inc; Robert Mishkin applied for a new license to serve beer/wine in a restaurant. 23 Bellweather Way #101, Bellingham, WA 98225. 7/25/14.Buffalo Wild Wings, Blazen Wings Inc; Matthew K. Brokl, Emily Clark Decker, Michael James Schmidt, Mary Jane Twinem and Sally Jeanne Wold applied for a new license to serve spirits/beer/wine in a restaurant and lounge. 1 Bellis Fair Parkway Suite 15, Bellingham,

WA 98226. License No.: 418343. 7/24/14.Mi Rancho Meat Market, Luis Eduardo Casillas-Garcia and Nora Casillas-Rodriguez applied for a new license to sell beer and wine in a grocery store. 3092 Northwest Ave., Bellingham, WA 98225. 7/22/14.Recently approved licensesSalish Sativas, 5373 Guide Meridian St., Suite D1, Bellingham, WA 98226, received approval for a new tier 2 marijuana producer license. License No.: 415914, 8/7/14.Ocean Grown Enterprises, 6481 Portal Way Suite A, Ferndale, WA 98248, received approval for a new tier 2 marijuana producer license. License No.: 413864. 8/1/14.Sasquatch Greenhouses, 3171 Unick Road Suite B, Ferndale, WA 98248, received approval for a new tier 3 marijuana producer license. License No.: 412208. 8/1/2014.Hard Washington, 409 Robinson St., Everson, WA 98247, was approved for an addition/change in class to a domestic winery license. License No.: 411763. 7/30/14.Green Stop, 7466 Mt. Baker Highway, Maple Falls, WA 98266, received approval on a new application to operate as a marijuana retailer. License No.: 413801. 7/29/14.Pho & More, 4285 Meridian St., Suite 102D, Bellingham, WA 98226, received approval on a new application to serve beer/wine in a restaurant. License No.: 404311. 7/28/14.Cascade Herb Company, 1240 E. Maple St. Suite 103, Bellingham, WA 98225, received approval on a new application to operate as a marijuana retailer. License No.: 415094. 7/25/14.Infusion Cuisine, 6912 Hannegan Road Suite 101, Lynden WA 98264, received approval on a new application to sell beer/wine in a restaurant. License No.: 410044. 7/25/14.Jalapenos Mexican Grill & Cantina, 501 W. Holly st., Bellingham, WA 98225, received approval for a change of corporate officer application for an existing license to serve spirits/beer/wine in a restaurant and lounge. License No.: 361013. 7/22/14.Walton Beverage Co., 1350 Pacific Place, Ferndale, WA 98248, received approval for an addition/change in class to a beer distribution license. License No.: 409303. 7/17/14.Discontinued licensesIndian Flavors, 3930 Meridian St., Suite 107, Bellingham, WA 98226, had a license to sell beer/wine in a restaurant with taproom discontinued. License No.: 072758. 7/31/14.Infusion Cuisine, 6912 Hannegan Road Suite 101, Lynden, WA 98264, had a license to serve beer and wine in a restaurant discontinued. License No.: 410044. 7/28/14.Pho & More, 4285 Meridian St., Suite 102D,

Bellingham, WA 98226, had a license to serve beer/wine in a restaurant discontinued. License No.: 404311. 7/28/14.8/8/14 to 8/20/14New license applicationsecigExpress, ECX LLC, Timothy Furre applied for a snack bar license to sell beer for on-premises consumption by open bottle or can at 1321 Cornwall Avenue, Bellingham WA 98225. License No.: 418458. 8/20/14.The Koi Cafe, Kings Bakery and Brew LLC, Andrew Ward applied for a new license to serve beer/wine in a restaurant at 1203 N. State St., Bellingham, WA 98225. License No.: 418467. 8/20/14.Coconut Kenny’s, Coconut Tan Bros Inc., Chunly Tan applied for an addition to a license to serve beer and wine in a restaurant at 2220 James St., Bellingham, WA 98225. License No.: 079605. 8/13/14.Recently approved licensesFanatic Bike Co., at 1812 N. State St., Bellingham, WA 98225, received approval on a new liquor license to operate as a direct shipment receiver. License No.: 418199. 8/15/14.Super Buffet, at 4151 Meridian St. suite 100, Bellingham, WA 98226, received approval on a new license to serve beer/wine in a restaurant. License No.: 085649. 8/15/14.Trail Blazin’ Productions, at 2005 Division St., Bellingham, WA 98226, received approval on a new application to be a tier 2 (2,000 to 10,000 square feet of plant space) marijuana producer. License No.: 412082. 8/14/14.Denny’s 7048, at 5720 Barrett Road, Ferndale, WA 98248, received approval on a change of privilege to an existing license to serve spirits/beer/wine in a restaurant and lounge. License No.: 080548. 8/13/14.Green Leaf, at 4220 Meridian St., suite 102, Bellingham, WA 98226, received approval to sell marijuana in a retail store. License No.: 413886. 8/8/2014.SubX, at 1419 Whitehorn St., Ferndale, WA 98248, received approval to grow marijuana as a tier 2 (2,000 to 10,000 square feet of plant space) producer. License No.: 412111. 8/8/14.Discontinued licensesSuper Buffet, 4151 Meridian St. suite 100, Bellingham, WA 98226, has a license to sell beer/wine in a restaurant discontinued. License No. :085649. 8/15/14.Goji Bistro, 4260 Cordata Parkway #105, Bellingham, WA 98226, had a license to sell beer/wine in a restaurant discontinued. License No.: 407420. 8/12/14.

BANKRUPTCIESNo business bankruptcies from Whatcom County were reported last month.

FEDERAL TAX LIENSTax liens of $5,000 or more issued by the Internal Revenue Service. Listings include taxpayer name(s), lien amount, document number and filing date. Records are obtained locally from the Whatcom County Auditor’s Office.Glen A. Friedl, $24,908.83, 2140700522, 7/7/14.Pavlovsky Accounting Services Inc, $9,403.84, 2140700743, 7/9/14.Christopher A. Daniels, $33,666.14, 2140700744, 7/9/14.Marlene M. Waters, $39,156.93, 2140701265, 7/15/14.David E. Moody, $74,848.67, 7/15/14.James P. Peterson, $121,113.55, 2140701910, 7/21/14.Ronald A. Raymond, $23,863.00, 2140701911, 7/21/14.Arlis’s Restaurant, $26,287.05, 2140701912, 7/21/14.Premier Packing LLC, $11,152.33, 2140701919, 7/21/14.

RELEASES OF FEDERAL TAX LIENSThere were no releases of federal tax liens of $5,000 or more.

STATE TAX JUDGMENTSTax judgments of $5,000 or more issued by Washington state government agencies and filed locally in Whatcom County Superior Court. Listings include taxpayer name(s), judgment amount, the state agency filing the judgment, originating case number and filing date. Judgments can later be lifted or paid; listings are only current as of their filing dates. Records are obtained from the Whatcom County Superior Court Clerk’s Office.NY Holdings LLC, $26,533.86, L&I, 14-9-02116-1, 8/20/14.WC Refrigeration Engineering, $6,924.27, Employment Security Department, 14-9-02043-2, 8/5/14.Ebenel General Special Projects, $206,386.65, Revenue, 14-0-02039-4, 8/4/14.

View more public records online at BBJToday.com.

RECORDS, FROM 18

BRIEFING, PAGE 20

in the short time my friend has been there. The statistics were certainly impressive but my educational experience began with the next step.

A few years back Mike Rother, teacher and researcher at the University of Michigan, translated the legendary Toyota manufacturing process into language and con-cepts that can be applied to virtually any industry and any type of workforce. Rother has a book, of course, but he also operates the Toyota Kata Website, which I would encourage you to visit. My friend has become well-acquainted with the methods developed by Rother and his primary attraction to the approach is the impact it has on employee engagement.

After our review of the charts we visited the actual Kata process. The term “Kata” is Japanese and means form. From what I witnessed, I’d say the real meaning is Eureka!

What I saw was production workers from a variety of backgrounds -- Vietnamese, South American, Russian as well as American -- working together in an atmosphere of mutual respect to bring about improvements in the various stages of the production process. These were folks with a variety of educational, language and cultural differences who were coming together in an atmosphere of mutual respect to work collaboratively on what they had in common -- the day to day working experience.

Within moments of the Kata process getting underway it was obvious, these people were playing a game! They

were involved, they were passionate, they exhibited ini-tiative and creativity, all while listening intently to what their colleagues had to share. What I found so attractive about the process was that it gave these production work-ers the chance to solve their own problems. Solutions began as experiments, were tested, then evaluated and implemented all in the midst of the production process. This aspect of the work has historically been reserved for engineers and supervisors and the workers merely reported the problems and then stood back. The people in the Kata process were encouraged to experiment and when there experiments didn’t work out they were applauded for what they had learned. Imagine, employ-ees encouraged to take risks?

Of course, the process is not without flaws. There is still a lot of learning going on but the level of enthusiasm for playing the game was undeniable. Was there 100% engagement? No, but there was a heck of a lot more than 30%.

So how about your place of work? Do you have to adopt the full-blown Toyota system? Start with small steps first, when employees report problems ask them to propose solutions and try them and report their findings. You may be surprised to find they’ve been waiting for you to ask.

COOK, FROM 16

Mike Cook is a management developer who lives in Anacortes, Wash. His columns appear on BBJToday.com every other Tuesday. He also publishes a weekly blog at www.heartofengagement.com.

Business Briefing

New business to launch treasure map for local beer

A new business plans to make Bellingham’s bur-geoning brewing industry easier for tourists to navi-gate. The company, called the Bellingham Tap Trail, is creating a map of local breweries and other beer-centric businesses.

Brian Seales, one of four Bellingham Tap Trail founders said they hope to produce the map in time for Bellingham Beer Week, which starts Sept. 12. By summer 2015, they plan to guide brewery tours by bike and van.

Seales said the company is inspired by similar busi-nesses in Bend Ore. Bend’s population is about 80,000 – roughly the same as Bell-

ingham’s – and it is home to 26 breweries.

“I think we have an opportunity here in Bell-ingham to achieve a simi-lar beer culture to Bend,” Seales said. “I think the growing trend of brewer-ies is enough to warrant a map.”

Seales said he has insider information on new brew-eries in the works, and he thinks Bellingham will have at least nine brewer-ies by 2015. Bellingham is becoming known for its abundance of craft beer, and attracting tourists who come solely for beer, he said.

Seales said they have some unique ideas for beer tours.

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Brown and other mountain bike advocates are quick to point out that local trails are built and maintained entirely by volunteers at no cost to taxpayers.

“Galbraith is amazing and it’s really only impressive because of the volunteers who have worked to make it that way,” said Kathy Salisbury, owner of Fanatik Bike Co. Her shop is in charge of maintaining a trail called SST, through the Whatcom Mountain Bike Coalition’s trail adoption program for local businesses. Currently, 21 businesses are signed up to take care of trails on Galbraith.

Mountain biking, like kayaking, skiing and other local recreation activities, attracts educated and skilled workers to Bellingham, Brown said.

“My wife and I are shining examples of people who make more than $100,000 a year and could live anywhere,” Brown said. “We sold our house and moved up here because of that.”

Canfield Brothers, a downhill-specific mountain bike company, moved to Bellingham in 2012. Chris Canfield, co-owner, said he thinks it’s the best possible home base in the country for a mountain bike company.

Kona Bikes and Transition Bikes--internationally dis-tributed mountain bike brands--are both based in Fern-dale.

“We ended up moving to Bellingham to be close to Whistler and because the local riding scene is great,” Can-field said. “It really couldn’t be more ideal.”

If Bellingham is a regional hub for mountain biking, Whistler’s mountain bike park in British Columbia is a world-class destination, Brown said. Some of the mountain bike tourism in Bellingham comes from people stopping by on their way to Whistler from all over the West Coast.

Canfield considered cities and towns all over the coun-try before deciding on Bellingham. He said one difference between Bellingham and other mountain bike meccas is that access to Bellingham’s trails isn’t secure. Other areas he looked into had more trails on public land and more support from local government, he said.

Polygon Financial owns Galbraith Mountain and man-ages it as a working forest. They allow recreation on their land, and even keep it open during logging operations. Across the state, bigger landowners and managers like Weyerhaeuser and Hancock Forest Management sell permits for recreational access, or block public access all together.

“The funny thing about Bellingham is it’s not promoted as a mountain bike town,” Canfield said. “There’s so much biking here that it’s kinda shocking that it’s not promoted that way.”

How much do out-of-town mountain bikers spend in Bellingham per visit?

MOUNTAIN BIKING, CONTINUED FROM PAGE 8

(Left) Statistics are from an online survey of local trail users conducted by the Whatcom Mountain Bike Alliance. In total, 749 cyclists repsonded to the survey, and 225 from outside of Whatcom County answered this question. Source | Whatom Mountain Bike Alliance


ingham Tap Trail at www.bellinghamtaptrail.com

Bellingham Marina completes dock for $7.5 million Florida project

Bellingham Marina recently completed work on a city-owned marina in Dania Beach, Fla., just south of Fort Lauderdale. The Bellingham-based company built a dock sys-tem for the $7.5 million project that they call the first dock system of its type.

The floating concrete dock has 120 dock slips for boats up to 50 feet long, according to Bellingham Marina’s website. Floating sections of concrete dock are connected by plastic beams called walers, which run the length of the dock. Fiberglass rods connect the beams to the concrete sec-tions of dock.

Dania Beach Mayor Walter Duke said in a press release, “We’re just thrilled to have the opportunity to create a highly efficient, well located and beautiful new marina that will be an asset for residents and visi-tors alike.”

BRIEFING, FROM 19

The jaws of a multi-ton harvester, operated by Paul Rogge, close around the base of a Douglas fir. It takes Rogge 10 seconds to sever the tree from the ground, de-limb it while feeding the trunk through the harvesters head, and stack it on a pile with other logs.

The multi ton machine with six-foot-tall tires could do a lot of damage to the ribbon of trail snaking through the forest just feet away.

Rogge and his employer, Janicki Logging, strive to minimize damage to the trails on Galbraith Mountain east of Bellingham. While many logging companies and forest managers in Western Washington are restricting recreational access, Janicki Logging and Polygon Financial, which owns the land, are working with user groups to allow access and avoid damaging trails.

“It costs us a little bit more to preserve the trails, but it’s just not that big a deal,” said Rob Janicki, whose family started the company in 1957. “I mean, how much does it cost you in time to hold the door for an old lady?”

Janicki said the nonprofit Whatcom Mountain Bike Coalition’s help reduces the expense of preserving trails. Members of the mountain bike group mark trails with pink flagging tape in areas slated to be thinned or cut to help loggers identify and avoid them.

Another factor that makes the cooperation possible is the company’s philosophy of sustainable forestry, Janicki said.

Other companies would log Galbraith in clear-cuts on a 30-year rotation, Janicki said. Previously, the mountain was clearcut in 500- to 1,000-acre sections. Janicki Logging clear-cuts 50 acres a year and thins about 150 acres. At that rate, it will take 50 years to harvest the whole forest.

Not only does this slower rotation spread out impact to the trails, it also maximizes profit for Janicki Logging. By thinning trees and letting them grow for longer, Janicki gets more yield long-term.

“We’ll generate more yield per acre, per year than the big companies,” Janicki said. “But you don’t see it next quarter. It takes multiple generations to see that value.”

Patrick Janicki, right, and a Janicki Logging employee discuss a flat tire on one of their harvesters. Janicki Logging works with mountain bikers to avoid damaging trails on Galbraith Mountain, east of Bellingham. OLIVER LAZENBY PHOTO | THE BBJ

Janicki Logging works with bikers to keep Galbraith Mountain trails intact



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Amazon VS Hachette

In July, best-selling author James Patter-son awarded Village Books with a $7,500 grant as part of his pledge to give $1 mil-lion to small booksellers. Patterson made the pledge after a dispute started between Amazon and his publisher, Hachette, one of the world’s largest publishing companies with authors including J.K. Rowling and Malcolm Gladwell.

The two companies are quibbling over contract negotiations, with e-book prices being a point of contention. Amazon sells 65 percent of all e-books according to a recent New Yorker article. They want the power to set prices on Hachette’s e-books.

In May, Amazon stopped selling some Hachette books and delayed shipment of others.

Chuck Robinson, owner of Village Books and former president of the Ameri-can Booksellers Association weighs in on the dispute and its affect on local book stores.

BBJ: Has Village Books been affected by the dispute between Hachette and Ama-zon?

We deal with Hachette all the time. What we’ve seen is more awareness on the part of our customers. I think particularly what’s been impressive to our customers is the position that a lot of authors have taken by speaking out against Amazon.

BBJ: What concerns you about the dis-pute?

One of the biggest concerns I have as a bookseller and someone who cares about who controls ideas out there is the seem-ingly insatiable way that Amazon has to be in control of everything. I think Jeff Bezos has been fairly open about that. I think that’s a concern for anyone who cares about democracy.

People tend to forget that a monopoly has never been good for consumers. It’s a situation where individuals use the same short term thinking as corporations--they

get what’s cheaper now. In the long run, you don’t think e-book

prices are going to stay low, do you? If Amazon controls 90 percent of the mar-ket they’ll charge whatever they want for e-books.

Now Disney’s movies are going through the same thing. That’s not going to be the last of it. It would be missing the point a little bit to think that it’s all about e-books.

BBJ: How does your one-book pledge work?

We swiped the idea from a friend of ours at Bookshop Santa Cruz. Customers sign a pledge, either in the store or online, to buy one more book from us and one less from somebody else. (800 people have signed up since it started in 2011.)

In our quarterly magazine there’s an article in each issue about someone who is a one-book pledger. It’s sort of a profile of them.

BBJ: Do you think there will be a place for brick-and-mortar stores in the future?

I do. We’re now in the fourth year that there has been a net increase in indepen-dent bookstores that are members of the American Booksellers Association. So more stores have opened than have closed in the last three or four years.

BBJ: How does the challenge of compet-ing with Amazon and other online retail-ers compare to competing with big-box stores in the early 1990s?

We were on a sort of a level playing field with the big-box stores. The only thing that was un-level was the amount of capi-tal they had, and that’s sometimes a good thing and sometimes a bad thing. Small businesses can react faster. There are some advantages to being in one place and being able to make a decision about something and implement it the next day. It allows some nimbleness.

I think the way that Amazon has chosen to do business is much much different than the way that Barnes & Noble, for instance, ever did business.

Village Books owner and former American Booksellsers Association president weighs in on dispute be-tween Amazon and a top publishing company



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bellingham business journal, september 01, 2014

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