Safeway pulls out of Sedro-Woolley development

Sedro Woolley will have a wait a bit longer to see what major retailer will move into the 11-acre retail development on the west side of town. But, for now, it won’t be Safeway.

The project being developed by Janicki Logging and Construction Co. on State Route 20 already has attracted a new McDonald’s restaurant and a Union 76 gas station with a convenience store. But it appears that Safeway Inc.’s growing financial woes have put a hold on new store development in Sedro Woolley and elsewhere in the country.

The food retailing giant, operating 1,700 stores in the U.S. and Canada, reported a steep decline in first quarter earnings last May 1, at .44 cents per share, down from .66 cents a share a year ago. The company’s stock price has been on a slide since April of last year, when it hit a 52-week high of $45.14 per share. It closed yesterday at $20.17. Some analysts believe the company has become overextended through some of its acquisitions while suffering falling sales along with the food retailing industry as a whole during the recession.

But the threat of a new Safeway landing in Sedro Woolley might have spurred the upgrading, redesign and renaming of the former Thrifty store, which is now known as the Food Pavilion. The store is in the mall at the intersection of state routes 20 and 9. The floor space at the store was redesigned and reconfigured, displays were improved and services added. That store is still owned by Brown & Cole, operator of a number of food stores in the region.

Rob Janicki, who is heading the project that Safeway, at least for now, backed out of says he is “very confident in the property; it’s one of the best commercial sites in the valley.”

Janicki said the local Safeway people liked the sight very much and may still have a chance to be part of the mix at the location.

“The site was ready to go,” said Janicki. “All the infrastructure is in. We have permits on 87,000 square feet of buildings.”

He said the financing of the project is structured favorably for the investors, thanks, in part to lower interest rates.

“We have the staying power to see this thru,” he said.

 

Womens’ business group seeks nominees

Skagit Women’s Alliance and Network is seeking nominees for the professional and businesswoman of the year award. SWAN recognizes one Skagit business woman each year for excellence, professionalism and contribution to “…women, business and, Skagit County.”

Nominations are due by Aug. 15. For a copy of the nominating form or for more information, contact Carrie Tisinger at (360) 299-3007.

Businesswoman of the year will be announced at a banquet at Skagit Valley College during National Business Woman’s Week in October.

 

Port sells Ship Harbor property

Ship Harbor in Anacortes was finally sold to a developer in June.

Clayton’s Classics, an Arizona-based development company, agreed to purchase 28 acres and plans to turn the area into an upscale waterfront residential development. Some lots will also be available for custom home development. As part of the agreement, Clayton’s Classic retains the option to lease the harbor area in front of Ship Harbor as well.

According the Kathy Pittis, spokesperson for the Port of Anacortes, the port is trying not to celebrate prematurely.

“It’s like selling a house,” she said. “It’s easy to enter into purchase and sale agreements, but closing is the hard part.”

Given the history of many abortive attempts to sell the property, Pitts said the port will delay their happiness until closing is complete.

 

Sedro-Woolley Thrifty remodeled

Sedro-Woolley Thrifty grocery store opened with a fresh face in July, along with a new name - Food Pavilion. Owner Brown and Cole remodeled the store’s interior, without increasing the overall square footage of the location. Among the new features is a larger deli, Asian take-out, and expanded bakery, produce and bulk foods departments.

 

Skagit farmers featured at summit

Skagit farmers will have a presence at the first Washington State Family Farm Summit this October in Wenatchee. Anne Schwartz will participate on a panel addressing ways the current crisis in family-based agriculture and rural communities is affecting current farming operations.

The family farm summit is designed to explore changes needed to ensure family-based farming has a future, by understanding how rural development has progressed through history to the current situation. Conference attendees will contribute to an action plan and to a white paper, designed to be a resource for future family farm policy.

Skagitonians to Preserve Farmland is a conference co-sponsor.

For information on the conference, contact Kent Mullinix at (509) 682-6625 or kmullinix@wvc.edu.

 

State passes sweeping unemployment changes

Under pressure from Boeing and several business interest groups, the state house passed major changes to Washington’s unemployment insurance program. Changes will take effect January 1, 2004.

The new system will likely save Washington business about $100 million per year.

Highlights of the changes include:

A freeze of maximum jobless benefits at $496/week until that figure falls to between 63 and 70 percent of the state’s average weekly wage, likely in about five to eight years.

Cutting the maximum duration of benefits from 30 weeks to 26 weeks when the state’s unemployment rate falls under 6.8 percent.

Determining benefits based on a worker’s average wage over the past year. Previously, benefits were calculated on an employee’s two highest earning quarters from the previous year.

Change the business tax collection system so businesses pay almost as much as they contribute to the system. Boeing and other employers objected to the current system because they often subsidize unemployment benefits for high-turnover sectors, such as construction.

Critics objected to the new system because it will cut benefits drastically for seasonal workers, such as farm labor and fishers.

This unemployment insurance reform bill comes on the heels of a scuttled agreement last year. Boeing negotiated changes with Gov. Gary Locke, but those changes were challenged by a referendum sponsored by the Building Industry Association of Washington, who claimed last year’s agreement shifted too much of the system’s burden on them and other high turnover industries.

State business groups celebrated the new law.

“Small businesses can feel much better about keeping their business in Washington,” said Carolyn Logue, Washington State director of the National Federation of Independent Business. Combined with a state budget that held the line on taxes and a bill designed to reduce the cost of hearing loss claims to the Workers’ Compensation system, Logue said small business hit a triple in the recent legislative session.

The Evergreen Freedom Foundation reminded legislators that the lobbyists they entertained during the fight over unemployment insurance represent only those businesses that can afford to send representatives to Olympia.

“The faces they may not see are the owners and employees of the mom-and-pop market around the corner, or the dry-cleaning company with three employees,” said the organization, in a release. “Whether Boeing leaves or stays, these small businesses will still need a healthy and competitive environment.”

 

State average pay up

Washington’s average annual wage grew by almost 2 percent last year, to just over $38,552 in 2002. On a weekly basis, the average Washingtonian took home $729 last year.

For now, the average annual wage is used to calculate weekly unemployment benefits for jobless workers. Under a new agreement on unemployment insurance reached during the recent special “Boeing” legislative session, maximum weekly benefits have been capped at $496 and, in future, will no longer automatically increase annually until that figure falls to within 63 and 70 percent of the state’s average weekly wage.

 

Cats like lasers, too

Feline guests at the Cat Nap Inn can now supplement their catnip with a meow activated laser show. With each meow, the colors and patterns change, offering psychedelic kitty diversion.

“We continually try to find ways to amuse our feline guests while they vacation with us,” said Kolleen Fox, owner of the Cap Nap Inn. The guesthouse for cats offers a variety of amenities, including a garden view, an aquarium, and catnip hour. Diabetic cats can be accommodated and the Inn offers massage sessions for cats.

 

Mobile tanning comes to Skagit

Island Airbrush Tanning is a new mobile tanning service covering Skagit County. Airbrush tanning uses a compound called DHA, a derivative from sugar cane or sugar beets. DHA interacts with protein in the skin to produce a tan without the sun. A researcher in the 1950s discovered DHA’s tanning properties when children taking it in glucose intolerance studies spilled some on themselves. Where they did not wipe the spills, their skin darkened.

Airbrush tanning relies on a technician painting the solution on the tanner’s body. The skin will darken in roughly eight hours.

 

Carpet company changes hands

Deb Graham bought A-1 Carpet Care. The company has been a presence in the Skagit business community for a long time. Despite the change of ownership, the company will continue to use environmentally friendly cleaning products.

 

WorkFirst graduates fourteen

Fourteen students woke up to a brighter day, when they graduated with skills for hospitality and lodging careers.

The students completed a 13-week comprehensive training course through WorkFirst and offered at Skagit Valley College during this past spring quarter. A graduation ceremony was held at the college’s Mount Vernon Campus.

Participants were drawn from a pool of people receiving state assistance. WorkFirst offers training so people can learn skills needed to launch a career.

Skagit Valley College’s program teaches specific skills needed to operate in hotels, restaurant and similar workplaces, in addition to life skills, soft skills, job search, work and life management. Each graduate received a food handler’s permit, an alcohol server’s permit, and a ServSafe certificate.

 

Shredder earns designation

Alldata Shredding, an Anacortes-based paper shredder, was awarded a designation as a certified information destruction contractor. The award is the result of a comprehensive audit according to rules established by the National Association for Information Destruction.

The audit looked at employment requirements, policies and procedures, plant and client security, and confidentiality.

Alldata is one of three NAID certified shredders in the state and the only one north of Seattle.

 

College dedicates new building

Oak Hall is the newest instructional building at Skagit Valley College on the Whidbey Island Campus. The 38,000-square foot structure is designed to help with expansion in technical programs, university transfer, and general education programs.

Specifically, the building includes a health and fitness lab, faculty space for both Skagit Valley College instructors and for Western Washington University extended programs, computer labs, classroom space, and a conference room.

Funding for the building came from the state and amounted to $9.9 million. It was designed by the Henry Klein Partnership in Mount Vernon and was built by Bayley Construction.

 

Drivers license checks available online

Business owners can now check drivers license validity online. The Department of Licensing set up the service to expedite license checks for businesses that need to check whether potential new hires have a valid license and what endorsements, if any, they carry.

According to a department news release, the site doesn’t provide personal information. It simply returns a yes or no answer to whether a person’s license, endorsement, instruction, permit or identification card is valid.

Access the new Web site at http://www.dol.wa.gov.

 

Taxes due date changes

Monthly state tax returns are now due on the 20th of the month, beginning with the July return, which is due on August 20th. Tax returns had been due on the 25th.

In addition, penalties have increased to 5 percent on bills sent out because of taxpayer error. Increased penalties are designed to counteract what the department calls a high rate of errors on paper returns and encourage businesses to try their electronic filing system.

 

MacGregor hosts all-county meet

MacGregor Publishing will host an all-county chamber after hours event on July 31. The social is sponsored by the Skagit County Chamber Executive Directors Association, which includes all chambers of commerce in the county.

Hors d’oeuvres and refreshments will be available.

Attendees should RSVP to MacGregor Publishing at (360) 336-6171.

 

Skagit Public Works certified

Skagit County Public Works received a certificate of good practice from the Skagit County Board of Commissioners. Steve Flude, assistant county engineer, picked up the award on behalf of the department.

The County Road Administration Board gave the certificate for complying with laws related to road maintenance. Skagit County maintains 798 miles of roads and has the lowest maintenance expense per mile in the region.

 

Retail sales flat between 2000 and 2002

Taxable retail sales were up by 0.5 percent statewide in 2002 over 2001, according to the Washington State Department of Revenue annual business review. Added to the 0.8 percent rise between 2000 and 2001, state analysts see sales as essentially flat in the early stages of the 21st century.

Retail trade, a subset containing only activity at retail outlets and excluding changeable sectors like contracting, was by 3.5 percent in 2002.

In Skagit County, retail sales were up by 1.4 percent in 2002 and retail trade increased by 4.9 percent.

 

Hopper Park property sells

A piece of the George Hopper Road Business Park recently sold to a developer intending to put in an office complex. The Port of Skagit County put the property on the market late last year. While much port-controlled land is used to foster industrial jobs, the George Hopper road site was not developing.

Tim White of Mount Vernon purchased the six-acre plot and is working to design and develop the office park.

 

Glacier Helicopter announces college affiliation

Glacier Helicopter, a flight-training program at the Skagit-Bayview Airport, is now affiliated with Utah Valley State College. Students can now complete a college degree along with their flight training.

“There is a window of opportunity in the next five or six years for helicopter pilots,” said Mike Thielen, president of Glacier Helicopter. In the post-Sept. 11 world of aviation, helicopter pilots still have plenty of opportunity.

Glacier’s commercial pilot training program takes anywhere from nine to twelve months to complete.

 

Carpenter Creek brings wine to Skagit

Carpenter Creek Winery opened its doors in Mount Vernon last month. Jeff Hammer, winemaker, has been producing wines in the Burgundian tradition since 2001, using Eastern Washington grapes. While they started producing only red wines, this year they expanded into a series of white wines, including chardonnay.

Through October, the winery will be open on Fridays and Saturdays for tastings and wine sales.

 

Anacortes digital journal now online

AnacortesToday is a new, Internet-based photographic journal of life in Anacortes. Steve Berentson, a fourth generation Skagitonian, edits the Web site. He left in 1960, but was thrilled to return just over 20 years ago.

“I finally reclaimed an Anacortes address in 1980, and I have been in constant celebration of my return since that time,” he said.

He hopes the site will celebrate the physical environment of Fidalgo Island.

“Among (the natural assets) are rugged beaches, pristine lakes, thousands of acres of forestland and awesome views of the Skagit Valley and surrounding islands,” Berentson said.

Kevin Lint of How it Works designed the Web site. It’s not intended as a news source. Rather, it will informally present photos and community information.

Visit Anacortes Today at http://www.anacortestoday.com.

 

Burlington annexation delayed

Burlington City Council decided to withhold a decision on annexing farmland around the city. Instead, council will form a task force to set growth boundaries.

The annexation fight is creating conflict between some agricultural landowners, who see selling their land as their only viable way to generate retirement income, and farmers and conservation groups, who want to preserve the county’s agricultural land base.

 

Vintage boat show coming to La Conner

The La Conner Classic, a show featuring steam-powered boats and wooden runabouts, is set for this September. William Finefrock, retired editor, publisher and co-owner of Auto Week magazine is organizing the event.

In addition to the boats, there will be a classic car show.

Most of the yachts were built in the 1920s and 1930s although some come from as far back as 1906.

The La Conner Classic is set for Sept. 13-14.

 

Unemployment slightly down in May

Skagit County’s unemployment rate dipped very slightly in May to 7.6 percent, from 7.7 percent in April. It was also marginally higher than last year’s rate of 7.5 percent.

Statewide, unemployment remained unchanged in May at 7.8 percent. In real numbers, that means an increase in just over 24,000 in nonagricultural wage and salary employment.

“This pause in the unemployment rate’s climb may be a signal that the weakness in the first quarter was due in large part to geopolitical concerns,” said Sylvia P. Mundy, Washington’s employment security commissioner. “Even if the economy is now poised for a gradual recovery, the labor market is likely to react slowly and the unemployment rate probably won’t improve appreciably until late this year.”

By sector, manufacturing employment was weak, with gains in nondurable manufacturing, like food processing, offset by declines in aerospace. Construction employment was up sharply, while retail trade, professional and business services, leisure and hospitality, and local government also showed strength.