Elections feature high profile seats, initiatives
Business-related issues loom large

Whatcom County Council At-Large candidate Gary
Lysne, his incumbent opponent Seth Fleetwood, and
Ferndale City Councilman Ron Wilson pay close
attention as Whatcom County Auditor Shirley Forslof
explains the all mail-in voting system. Lysne,
Fleetwood and Wilson were the first three Whatcom
candidates to file for the November election.

It’s that time again. With the excitement from last year’s national and state elections still lingering, a full range of high profile positions and controversial initiatives – many of which could affect local businesses – have filled up the fall ballot.
Although 70 percent of Whatcom County positions have only one candidate, much of the remaining high profile races revolve around familiar divisive issues such as Lake Whatcom protection, growth management, budgeting strains, and Emergency Medical Services.
Several races that could affect local businesses will be put through the rigors of this month’s primary. Port of Bellingham Commissioner Scott Walker faces former City Council member Tip Johnson, as well as Western Washington University student Ryan Hashagen. Along with city council, the port commission will be making decisions on the major redevelopment of Bellingham’s waterfront.
In Skagit County, four candidates are vying to be mayor of Anacortes, where growth planning and economic development issues sit at the forefront of city politics. Tire slashing, campaign sign burning, obscene phone calls and bomb threats took place during Anacortes’ 2001 election season. Candidates hope to avoid a repeat.
Mount Vernon’s school board elections have also garnered attention with Latino and construction issues defining candidates.
On a state level, voters will decide on a gas tax repeal, performance auditing of government departments, and a smoking ban for restaurants and bars.
Whatcom, Skagit and San Juan counties have switched to all mail-in ballots for the upcoming elections. Island County residents will be able to visit polling places for the general election, but will have to use mail-in ballots for the September primary.

-John Kinmonth

NAS Whidbey to gain
new tech planes
Decision adds stability to Whidbey economy

The Navy recently decided to station its new breed of electronic attack planes at Naval Air Station Whidbey. Replacing its four-seat, 30-year-old Prowler aircraft, the Navy plans to utilize a variant of the two-seat F/A-18F Super Hornet airframe called the EA-18G.
While many other bases around the country are scheduled for closure, 57 EA-18Gs will replace the base’s current 68-plane Prowler inventory beginning in 2008. The transition is scheduled for completion by 2013.
Although the base is projected to lose about 1,100 personnel during the switch, officials say other new missions could be sited at Whidbey as well. In June, U.S. Rep. Rick Larsen, D-Lake Stevens, announced that a reconnaissance squadron would be relocated to Whidbey Island from Rota, Spain, bringing approximately 500 personnel and $33.8 million to the base’s payroll.
Along with the addition of Navy personnel, some 500 spouses and children are expected to join Whidbey Island communities. The Oak Harbor Chamber of Commerce and the Oak Harbor School District have held meetings in order to plan for the additional influx of children to the local schools.
“As of now, housing doesn’t seem to be the big problem,” said Sharon Hart, executive director of the Economic Development Association of Skagit County. “The schools and daycare are the main issues.”
Sixty-nine school aged children are expected to be living in the area by the time of the upcoming school year from the relocation, said Joe Hunt, communications director for Oak Harbor School District.
“However, we don’t know how many of those children will actually go to Oak Harbor,” he said. “We estimate about 50.”
The district recently sent two principals to Rota to give parents and children a quick orientation of the area school system, Hunt said.
“There is a big difference in school districts. Especially from here to Rota, Spain,” Hunt said. “We had to teach them about stuff here, like what WASLs are.”
Many hope the recent decisions will further solidify the future of the base, which is the largest employer in the area.
According to the State Office of Financial Management’s 2003 report, the base has an estimated net-direct impact of $500 million in Island County, and nearly 88 percent of Island County’s economy has been directly or indirectly attributed to the base.

-Jelena Washington

Illegal border commerce reaches new lows
Three Surrey, B.C., men were arrested after building a tunnel across the border using shovels, rebar and more than 1,000 2-by-6’s. Complete with ventilation and electricity, the 360-foot-long tunnel started in an empty metal shed near Aldergrove, B.C., and ended in the living room of a home just north of Lynden.
According to federal officials, the tunnel was under construction for more than a year and was big enough for a person to walk through. The entrances were 6 feet by 6 feet and the tunnel was reinforced with rebar and wood, according to the U.S. Attorney’s Office report.
Secretly monitoring the tunnel’s construction since February, U.S. law enforcement officials arrested the suspects after observing them smuggle marijuana several times through the tunnel using hockey and garbage bags. Two U.S. citizens were also arrested in connection with the tunnel.
According to officials, this is the first tunnel discovered along the Canadian border, but one of 34 discovered going into the United States along the southern border, mostly in California and Arizona.
The cost to build the tunnel was estimated at $1.1 million including land purchases.

Emerald Bay Events joins the club(s)
In a frenzy of recent networking activity, Emerald Bay Events out of Bellingham recently joined the Oak Harbor, Lynden, and Ferndale chambers of commerce.
While the full-service celebrations company has already served much of Whatcom and Skagit counties for the past 10 years, new ownership has made an effort to further expand Emerald Bay’s operations into both Island County and north Whatcom communities.
Emerald Bay provides a variety of event services including cuisine, décor, entertainment, venues and event planning.

New mayor’s salaries approved in Anacortes and Ferndale
Anacortes City Council recently approved a new salary schedule for the mayor and new stipends for city council members.
The new salary for the mayor will start at $73,000 per year, increasing annually up to $88,000 for the eighth year in office. The salary stops increasing after the eighth year.
The council’s new stipend will be $850 per month next year and will increase $50 each year until 2012.
Ferndale City Council also recently approved changes in pay rates for the mayor and council members. The new ordinance will increase the mayor’s salary to $18,000 beginning in January – a $6,000 increase. City Council members also approved a $50 per meeting stipend on top of their $200 per month salary, with a $500 monthly limit. The stipend changes will be phased in over the next two years.

Government audits make statewide ballot
Local and state governments could be subject to annual performance audits by the State Auditor if voters pass Initiative 900 this November. Secretary of State Sam Reed verified that Tim Eyman and other I-900 supporters submitted a total of 311,858 petitions, nearly 90,000 more than necessary to qualify for the ballot. Reed said that a random sample showed more than enough valid signatures for I-900 to land on the ballot.
According to the ballot summary, “the audits would include reviews of the economy, efficiency, and effectiveness of each agency’s policies, management, fiscal affairs and operations.” The audits would be paid out from a portion of the state sales tax.
Critics question the increase in the powers of the State Auditor’s Office, as well as the staff increases to carry out the full powers of the initiative.
For more information:
I-900: www.voterswantmorechoices.com
Critics: www.permanentdefense.org
Initiatives: www.secstate.wa.gov

Home prices continue to skyrocket
The average sales price of homes in Whatcom County’s largest communities continued to soar in the first half of 2005, according to Lylene Johnson of The Muljat Group.
Using data compiled by the Bellingham Whatcom County Multiple listing service, Johnson points out that the average sales price of a home in Bellingham was $306,033 – 20 percent higher than the first half of 2004 and 38 percent higher than two years ago.
Home price percentage increases were even higher in other Whatcom County communities such as Lynden, Ferndale, Blaine/Birch Bay, and Sudden Valley. Lynden had an average home price of $312,562 for the first half of this year.
“The factors that have fueled this amazing run in housing prices remain in place: low interest rates, a growing economy, and increased awareness of what a wonderful area we have,” Johnson said. “Relative to other areas, they don’t see our housing prices or traffic as major problems.”

Oak Harbor tattoo businesses no longer taboo
Looking for some permanent ink in Oak Harbor? The Oak Harbor City Council recently lifted a ban on tattoo businesses within city limits.
Largely driven by practitioners of permanent cosmetics – a popular form of cosmetic tattooing also called permanent makeup – council ended the 10-year tattoo prohibition that stemmed from a lack of state regulations governing the industry in the past.
Priscilla Heistad, executive director of the Oak Harbor Chamber of Commerce, said she doesn’t expect much change downtown as a result of the new ordinance.
“The market drives all business,” she said. “And quite honestly, I don’t see that a downtown location would be profitable.”
“In the daytime it’s antique stores, restaurants, craft stores – it’s not businesses typically catering to young people,” she said. Heistad added that there’s already a tattoo shop outside city limits near Naval Air Station Whidbey Island.
“If there was a market for more tattoo parlors they’d be out there,” she said.

The Bellingham Herald changes hands
After owning Bellingham’s daily paper since 1971, Gannett Co. Inc., the nation’s largest newspaper publisher, recently traded The Bellingham Herald to Knight Ridder Inc., the nation’s second largest newspaper publisher.
The deal came as part of four-newspaper trade where Knight Ridder acquired the Olympian in Olympia, the Idaho Statesman in Boise, and The Herald, while Gannett gains the Tallahassee Democrat and an undisclosed amount of cash.
Both the Olympian and the Idaho Statesman were recognized in the “Best of Gannett 2004.”
Christine Chin, former Herald president and publisher, has joined the staff at Gannett’s The Arizona Republic, and is replaced by Glen Nardi, senior vice president of operations at Knight Ridder’s award-winning San Jose Mercury News.Knight Ridder Chairman and CEO Tony Ridder said in a recent news release, “As we continue to review our portfolio of newspapers, other print products, Internet sites and investments, we are constantly impressed by the performance of our mid-sized and smaller newspapers – especially those in growth areas. This exchange gives us the opportunity to add three newspapers in robust western markets.”
The Bellingham Herald has a reported circulation of 23,928 daily and 30,230 Sunday.

Good Guys logs out
Good Guys electronic stores recently closed its Bellingham location near Bellis Fair mall. The move came as part of a national strategy that has 17 stores closing throughout the nation, as well as four in Washington state. The CompUSA/Good Guys Megastore in Puyallup is the only location remaining in the state.
CompUSA bought Good Guys in December 2003

Keeping up with the Joneses
Want to know more about a property in Island County? The Island County Assessor’s website now includes an online property search function that allows the user to find out the assessed value of a specific property. The site also lists a sales history of the parcel, as well as who owns it and the listed size. Furthermore, an interactive map option allows the user view a property via satellite photo.
For more information, go to www.islandcounty.net.

La Fiamma’s quick bid wins downtown building
After operating their wood-fired pizza business at 200 E. Chestnut St. since 1998, La Fiamma owners Ken and Dan Bothman recently bought the property from the city of Bellingham – for $60,000 more than they intended.
Although city officials had initially agreed on selling the property for $490,000, City Council further discussed the purchase after developer David Ebenal, via his attorney Frank Chmelik, offered $515,000 for the property. During the council’s deliberations, Dan Bothman raised his offering price to $550,000, which council approved 4-2.
State law did not require the city to seek competitive bids for the property.

Tesoro Corporation publishes 64-page book
In recognition of the 50th anniversary of its Anacortes refinery, Tesoro Corporation published a 64-page book titled “A Family Affair.” The book, by Steve Berentson of Berentson Public Relations, features refinery history and more than 200 photographs dating from 1953 to present. Governor Christine Gregoire, Skagit County Commissioner Don Munks, Anacortes Mayor Dean Maxwell and Economic Development Association of Skagit County Director Don Wick, all wrote letters acknowledging the anniversary.
Copies of the book were distributed to employees at Tesoro’s annual employee picnic.

Nooksack Valley Disposal begins automated collection
Nooksack Valley Disposal recently doubled its lifting capacity by adding two automated collection trucks for routes in Lynden, Everson, Nooksack and Sumas. Each truck is equipped with a mechanical arm that lifts 68-gallon carts overhead and deposits waste into the truck. The new automated service will eliminate the physical strain and related back injuries for the drivers.
The new trucks are also expected to be more efficient and capable of serving 750 to 800 residences in an eight-hour shift.

New Skagit sawmill could bring 200 jobs
Sierra Pacific Industries of Redding, Calif. could be building a $100 million high-tech lumber mill in a new industrial park near Burlington.
Using wood waste as fuel, the mill would include a co-generation plant for drying lumber and creating electricity. Sierra Pacific has a mill in Aberdeen, as well as 18 plants in California. The company employs nearly 4,000 workers with an average wage of $18 an hour.
The proposed 80-acre site is already zoned for heavy industrial use, and is located north of Highway 20 and west of Higgins Airport Way. Fredonia Business Park is owned by Wallace Ventures LLC, and is near the Wallace family’s potato farm.

PRWeb goes 24/7
PRWeb, a worldwide online newswire operation based in Ferndale, is now open around the clock, seven days a week.
The new 24/7 editorial services is the result of increased demand for premium services and for immediate and next-day distribution of press releases, according to a company news release.
“With a staff of highly trained editors, PRWeb is ready to provide the service that companies and organizations need 24 hours a day, 7 days a week,” said David McInnis, PRWeb founder and CEO. “Our editorial desk and help desk are now staffed around the clock because PRWeb is committed to maintaining the highest quality service of any newswire.”
Specializing in small- and medium-sized businesses, PRWeb’s distribution includes more than 100,000 media distribution points, 17,000 direct RSS and mRSS feeds, Yahoo News!, Google News, eMediawire and a host of other media outlets and search engines.

Airport celebrates Sin City milestone
Allegiant Air, LLC recently celebrated its one-year anniversary of nonstop, jet-service from Bellingham to Las Vegas. According to a recent news release, the flights have served more than 50,000 customers in the past year.
“The port is pleased with Allegiant’s success in Bellingham,” said Port of Bellingham Commissioner Scott Walker. “Direct flights to Las Vegas not only connect our community with an amazing vacation destination, but also with a large hub airport offering connecting flights all over the world.”
Utilizing a full-size, 150-seat MD-80 jet, Allegiant currently maintains scheduled service four days a week.

The Bank of the Pacific aims for Anacortes
The Pacific Financial Corporation proposed adding a new The Bank of the Pacific branch in Anacortes. The branch, one of 17 for the Aberdeen-based bank, is expected to be complete this January.
“Recent developments gave us the opportunity to locate in Anacortes,” said John Van Dijk, president of The Bank of the Pacific. “We are very excited and look forward to being part of the local community and serving the businesses and residents of the Anacortes area.”
The proposed branch will be located at 801 Commercial Ave., and will provide full-service banking with drive-up service and an ATM. Mike Trafton, long-time Anacortes resident and vice president with the Bank, will manage the new facility.

WorkFirst Bridge Project surpasses expectations
The Economic Development Association of Skagit County recently reported that the Skagit County WorkFirst Bridge Project exceeded expectations set for the six-month pilot project.
The program serves the needs of both businesses and low-income parents – the focus of Workfirst, a state welfare program – by providing training based on examining behaviors around employment goals, internal motivation, perseverance and the desire to succeed.
According to an EDASC news release, 52 percent of the welfare participants in the region moved from job search to employment within 90 days. The state average is 40 percent. Furthermore, participant wages are up by 10 cents an hour over last year, and the employment rate of WorkFirst recipients is 10 percent higher than last year.
“Workforce development is key to sustaining economic growth in Skagit County,” EDASC Executive Director Don Wick said. “The real achievements of the Bridge Project are more than impressive statistics. The success lies in people finding living wage jobs and businesses enhancing their bottom line.”

Whatcom home sales dip while state’s soars
Single-family housing markets are hot. Home sales in Washington set a new record of 52,140 single-family homes sold in the second quarter of 2005, according to statistics released by the Washington Center for Real Estate Research at Washington State University. This data represents the first time that more than 50,000 homes have been sold in a single three-month period.
“Despite media attention on a potential housing bubble, the market has maintained red hot with 6.3 percent more homes sold than this time last year and with price increases well above the inflation rate. Unfortunately, prices are now so high that it is especially difficult for someone who does not already own a home to buy one in most urban areas,” said Glenn Crellin, director of the WCRER.
While many counties reported significant increases, the WCRER reports that sales in Whatcom County were 6.6 percent below the second quarter of 2004.
On a state level, the median price for an existing home jumped to a record $254,900, with the highest local median at $449,500 in San Juan County.
“Despite the declining affordability, conditions are typical of strong housing markets for the last 20 years,” Crellin said. “A more pressing problem is the inability of current renters to afford starter homes.” The first-time buyer affordability index for the second quarter stood at 61.9, its lowest level since the WCRER began calculating the measure in 1994.
Relocation of Chamber office
The San Juan Island Chamber of Commerce and Visitor Information Center has moved from 1 Front Street to 135 Spring Street in Friday Harbor. The new site is more visible and accessible than the previous location, which was hidden down a walkway and up a flight of stairs.“It’s great to be not only on the street level, but also disability friendly. We feel we can better serve our members and our visitors in our new location,” said Executive Director Debbie Pigman.
Through July 2005, the Visitor Information Center staff has greeted 10,158 people compared to 3,881 during the same period for 2004.
WPN speaker addresses startup pitfalls
The Women’s Professional Network has enlisted experienced entrepreneur Peg Larson to speak on “Starting a Business – Pitfalls to Avoid and Suggestions for Success” at its monthly meeting Sept. 22.
Larson currently serves as president and CEO of Sonotech, Inc. of Bellingham, a manufacturer of industrial and medical ultrasound coupling media. She is also a co-owner of HybriMetrics, Inc., a Pennsylvania-based medical market research firm that she cofounded in 1997. Larson has participated in the founding of five businesses, two of which she started independently. She has also held executive positions in Johnson and Johnson and General Electric.
The WPN hosts its monthly meeting on the fourth Thursday of every month from 7 a.m. to 9 a.m. at Sapphire Cove, 2625 Harbor Loop Dr, Bellingham. Breakfast is $10 for first time guests with reservations, $12 for members with reservations, and $15 for members without reservations and other guests. For more information about the WPN or to RSVP for the breakfast meeting, please call 360-650-0426, email info@wpnbellingham.org, or visit www.wpnbellingham.org.

Fairhaven nutritionist moves office
After 15 years in practice, Jan Templeton CNC, CCAP, of Templeton Health, Inc, in Fairhaven has moved to a larger office at the medical building at 1000 McKenzie Avenue, Suite 10 and hired new office staff.Templeton has the only Whatcom County clinic utilizing Electro-Dermal Screening, a painless method that utilizes acupuncture points on the hand without skin penetration. The machine screens for the types of body imbalances that can affect weight, sleep, mood, health and much more. Upon test completion, the EDS test indicates which nutritional, detoxification, bio-identical hormones, homeopathy, therapeutic grade essential oils, or vitamins will help, along with foods to avoid.
“We are doing so much Electro-Dermal Screening now for hormonal imbalances, allergies, weight issues, and vitamin and mineral imbalances, that we had to move,” said Templeton. “People have come to realize that this screening coupled with natural hormone treatment can make a huge difference in their health.”
Templeton is a nutritionist, natural hormone specialist and clinical aromatherapist. For more information, call (360) 647~7667 or go to her website at www.jantempleton.com.

Net Solutions moves to Bellingham
Net Solutions North America (NSNA), an Internet and eCommerce software development company, has moved its headquarters to downtown Bellingham.
Net Solutions offers web design and development and eCommerce solutions based on client needs. Net Solutions also provides a wide variety of pre-developed base, and add-on applications for extremely affordable web solutions, as well as complete custom development of Internet applications designed to fit specific business requirements.
“We are excited to be back in Bellingham and look forward to working with the business community here,” said owner Patrice Valentine. Reach Net Solutions on the Web at www.netsolutionsna.com or call 360-737-8188.

Skylarks obtains liquor license
Colorful liquor bottles now decorate the handcrafted wooden bar at Skylark’s Hidden Cafe and Wine Parlour, as the recently expanded restaurant has received a state liquor license. The 1890’s high-style bordello saloon has already become a watering hole for locals and tourists alike, according to owner Don White. With more seating available, the restaurant’s breakfast business has increased, as well. White plans to add more dinner items to the menu. “We’re celebrating our 10th anniversary with new drinks and menu items, without changing the comfort level we’ve already established in the restaurant,” said White. “It’s still Skylark’s. People like our low-key atmosphere and the ease of being able to carry on a conversation without yelling.” Skylark’s is open 7 days a week at 7:00 am with dine-in or Take-out orders for breakfast, lunch and dinner. The cafe is located at 1308 11th Street, bordering both the street in front and the cobblestone walkway behind.

Station Pub loses liquor license
The Station Pub in downtown Bellingham recently lost its ability to serve liquor after repeat violations of over-serving people, according to the Washington State Liquor Control Board.
The bar, located at 1309 Railroad Ave., received four violations between October 2003 and December 2004, the Liquor Control Board moved to cancel its license. The board upheld the decision after holding several hearings and reviews.
The Station Pub attracted the board’s attention after nearby businesses, citizens, and law enforcement officials filed complaints in 2003.
Under state law, it’s illegal for businesses to serve alcohol to someone who appears intoxicated.

Airporter offers direct festival access
Taking a break from its usual commute, Airporter Shuttle/ Bellair Charters is offering round-trip transportation to and from the popular Bumbershoot arts festival at Seattle Center Sept. 3 and Sept. 4.
Bumbershoot, now in its 35th year, will feature four days of more than 2,500 artists representing music, film, comedy, spoken word, dance, visual arts, and literary arts.
Round-trip fare is $25 per person and 24-hour advance reservations are required. Pickups will be in Mount Vernon and Bellingham. Call 360-380-8800 for more info.
Bellingham goes sky-high
Two developers from Idaho have proposed a plan that would include two buildings at 14 and 11 stories in the 4000 block of Northwest Avenue, near Bakerview Road.
Charter Builders Inc. of Meridian, Idaho and D’LaShaye LLC, of Nampa Idaho plan to implement a mix of stores, offices and condos.
Bellingham’s current tallest building is the 75-year-old, 15-story Bellingham Towers, at 119 N. Commercial St.
Birch Bay Waterslides to be under new ownership
Homestead Northwest Development Co. has inked out an agreement to buy the 14.5-acre site of Birch Bay Waterslides at 4874 Birch Bay-Lynden Road. Although the sale isn’t scheduled until Oct. 1, after the summer waterslide season, owner Bren Richardson has agreed to sell the property for $4.5 million.
Homestead plans to build an upscale retail center, a fitness center, condos, and a possible resort hotel on the site.
With approximately 80,000 people visiting the park in the 90-day season, Homestead plans to keep the slides, but possibly reorient them to make room for development.

Airport tree blunder results in mitigation plan
The Port of Anacortes and its contractor Ebenal General Inc. of Bellingham are trying to make amends through a mitigation plan after a subcontractor mistakenly cut down 51 trees near the Anacortes Airport.
The damage: 44 trees that were supposed to stay as part of a buffer around the airport, and seven trees on adjacent private property.
The tree cutting was required by Federal Aviation Administration regulations that control the height of trees around airports. The port and the City of Anacortes had passed a long-term plan for the airport last April, and the trees were cut down on the first day of work on a long-awaited tree felling and fencing project at the airport.

Blaine Planning Commission
says no to 20-year-old plan
The Blaine Planning Commission is opposing a controversial development plan to build a 22-acre, 72-unit project on the Semiahmoo spit. Trillium Corporation had included the project in a 1985 development plan, but the commission is not satisfied with the developer’s latest proposal due to density issues.
Numerous Blaine residents, who have enjoyed decades of unmitigated public access to the spit, are speaking out against the project.
Trillium is working to modify its proposal.