Last Frontier KPBM March 2015

March 2015 Vol. 28 No. 3 Est. 1988 An edition of the Kitsap Sun
Last Frontier
A national bank’s recession failure sent local companies
scrambling as foreclosures came down
Page 3
Regional director’s tips
for SBA loans | Page 5
PRSRT STD
U.S. POSTAGE
PAID
Kent, WA
PERMIT NO. 71
The Kitsap Peninsula Business Journal
Post Office Box 259
Bremerton, WA 98337
Bank branches changing,
but not going away | Page 6

2 |MARCH 2015 WWW.KPBJ.COM
Business Calendar
March 3, 24 and 31
Good Morning
Kitsap County
Talk with a new business
professional every week
and network with local
businesses.
Where: Hop Jack’s,
Silverdale
When: 7:30-9 a.m.
Info: silverdalechamber.
com
March 4
Contracting Coffee Hour
An open forum for
businesses with questions
about contracting with the
government on the first
Wednesday of each month.
Where: KEDA, 4312 Kitsap
Way #103, Bremerton
When: 7:30-9 a.m.
Info: kitsapeda.org
March 4, 6, 9, 12 and 18
Farm Machinery and
Safety Workshop
This class is open to all
4-H and FFA youth, new
and beginning farmers,
and individuals of all ages
and experience wanting
to make their tractor
experience and farm safer.
Where: Kitsap County
Fairgrounds
When: 6:30-8:30 p.m.
Cost: $85
Info: 360-337-7162,
Shannon.harkness@wsu.
edu
March 10
Kitsap Business Forum
“Planes, Trains and
Automobiles: We Are
All in the Transportation
Business” is this month’s
topic. John Powers will
lead a panel of local
transportation experts
and political influencers to
discuss current plans and
proposals affecting the
moved of your product
throughout Kitsap. Please
RSVP.
Where: Kitsap Conference
Center, Bremerton
When: 7:30-9 a.m.
Info: kitsapbusinessforum.
com
March 13
Brown Bag Lunch
Lecture Series: John van
Den Meerendonk
Bainbridge Island Land
Trust board member will
share his knowledge of
unique plant life in the
Pacific Northwest.
Where: Bainbridge
Waterfront Community
Center, Bainbridge Island
When: 11:30 a.m.-12:30
p.m.
Cost: $2 donation
When: 5:24-8:03 p.m.
March 19
KEDA Annual Meeting
and Luncheon
The meeting will be
to provide members
with the 2014 report of
performance and financial
condition, present the
2015 KEDA Priorities and
Work Plan, and elect new
directors to the board.
KEDA will also honor
this year’s Economic
Development Champions.
Please register.
Where: Kitsap Conference
Center, Bremerton
When: 11:30 a.m.-1 p.m.
Info: kitsapeda.org
March 20
Women in Welding
Workshop
For women interested
in learning if a career
in trades is what they
want. Participants will try
their hand at welding,
and the registration fee
includes lunch. Registration
deadline is March 6.
Where: Welding Shop
108, Olympic College,
Bremerton
When: 9 a.m.-2 p.m.
Info: 360-475-7480,
careercenter@olympic.edu
March 13, 14 and 15
Peninsula Home and
Garden Expo
Hundreds of vendors,
free seminars, landscape
displays and food.
Where: Kitsap Pavilion,
1200 Fairgrounds Road,
Bremerton
When: 2-8 p.m.
Info: kitsaphba.com
March 17
Good Morning
Kitsap County
Meet Commissioner Ed
Wolfe at this special
edition of this event. RSVP
for this event.
Where: Hop Jack’s,
Silverdale
When: 7:30-9 a.m.
Info: silverdalechamber.
com
March 18
Silverdale Greendrinks
Wear green, bring your
own glass and network
with other business and
local community members.
Please RSVP by March 16.
Where: Martha and Mary,
19160 Front St. NE, Poulsbo
March 25
Edward Jones
Coffee Club
Donald Logan, a local
Edward Jones financial
advisor, will be hosting a
coffee club every fourth
Wednesday.
Where: 2416 NW Myhre
Road Suite 102, Silverdale
When: 8:15 a.m.
Info: 360-698-7408
March 31
Grant Seeking Basics
Workshop
An introduction and
overview of the funding
research process for
nonprofit organizations
seeking grants from
private grantmakers. Topics
covered include: getting
ready to seek funds, the
world of grantmakers,
research strategies and
Foundation Center tools
and resources. Registration
required.
Where: TBA
When: 1-3:30 p.m.
Info: 360-779-2915, krl.org

WWW.KPBJ.COM
MARCH 2015 | 3
Also in this issue
• Is Port Orchard market
delivering on the hype? 23
• Form, function of bank
branch of the future, 6
• Coffee-hour crew shares
advice on contracting, 9
• Tech columnist
Charles Keating reviews
net neutrality issues, 23
The Kitsap Peninsula Business Journal is
published by the Kitsap Sun the first week of
every month, and distributed to business
addresses through Kitsap County, North Mason
and Gig Harbor.
Brent Morris, Publisher
brent.morris@kitsapsun.com
David Nelson, Editorial Director
david.nelson@kitsapsun.com
Tim Kelly, Managing Editor
tim.kelly@kitsapsun.com
editor@kpbj.com
Mike Stevens, Marketing Director
mstevens@kitsapsun.com
Jeremy Judd, Digital Director
jeremy.judd@kitsapsun.com
For inquires to receive the Kitsap Peninsula
Business Journal at your business, contact Circulation
Sales Director Hugh Hirata at 360-792-
5247 or hugh.hirata@kitsapsun.com.
To advertise in the Kitsap Peninsula Business
Journal, contact Michael Stevens at 360-792-
3350.
TO SUBMIT NEWS:
Tim Kelly, Managing Editor
tim.kelly@kitsapsun.com
360.377-3711, ext. 5359
Standard mail postage to be paid at Bremerton, WA
POSTMASTER: Send address changes to Kitsap Sun, PO
Box 259,
Bremerton, WA 98337-1413
© 2015 Kitsap Peninsula Business Journal / Kitsap Sun
ISSN 1050-3692 VOLUME 28, NO. 3
introduction
| david nelson
End of one era, continuing the next
The Kitsap Peninsula Business Journal
you are holding may not immediately
look much different than
what you’ve seen from us
over the past 10 months.
But the path it took to get
into the community was
new, and that explanation
illustrates a business decision
made here that will
make a difference into the
future for the publication that brings you
local business news, columns, announcements
and advertising.
The night of Sunday, Feb.
22 was the final press run
for the 1973 Harris 1650
offset press in the basement
of the Kitsap Sun office
in downtown Bremerton.
There was certainly
an amount of nostalgia associated
with that night. I
sat there watching, as impressed
and mystified as
always when I would see
the old machine rumble to
print the Sun or one of our
other publications. A printing
press is a remarkable
piece of machinery, and
through the eras of print
journalism the Kitsap
Sun’s basement has always
been a place where change
occurred. So first I’ll share
some history.
More than seven decades
ago the paper started with
a flatbed press, two typesetting
machines, handme-down
engravers from
a Tacoma paper. During
World War II a two-unit tubular
press was installed
that could produce up to 32
pages, and there were five
typesetters. In the 1960s
we upgraded to an 80-page
rotary press, which could accommodate
color, and expanded the composing room
and what was then known as the stereotyping
facility. A little more than a decade
later, in 1973, the state-of-the-art Harris
1650 was installed and that, with some
technological upgrades over the years, is
what we’ve printed on ever since.
This edition of the Kitsap Peninsula
Business Journal was printed outside of
our building on Fifth Street. That’s the
difference you don’t see — but you should
know about.
The KPBJ, along with our daily edition,
other weekly community newspapers, special
advertising sections and quarterly
magazine publications, will now be printed
off-site at a large Puget Sound printing
facility, and trucked to our loading docks
each evening. This shifts us away from a
unique task that’s gone on every night in
our building for decades. But it’s a shift
that benefits readers because of print quality,
offers more choices to advertisers in
terms of format and options to connect
with customers, and helps our bottom line.
Our current presses have limitations in
capacity, color and quality. Our skilled
pressmen work diligently to make the paper
look its best each day, but the machinery
is outdated and limited in some aspects.
The opportunity is here for us to
produce a more appealing paper for readers
and advertisers, and could foretell
The press at the Kitsap Sun after running for the last time in Bremerton.
some format changes or opportunities
with the Kitsap Peninsula Business Journal.
That means we do lose employees
from our pressroom and packaging center
in the process, which is never an easy decision.
Some of you in the business community
know those difficult economic
choices all too well.
But journalism, like many of the industries
you readers work in, is a changing
world. That’s what my history lesson
above serves to illustrate. We’re acutely
aware of that fact now as we expand our
digital services and readership on websites
and social media, and as we continue
dealing with a changing market for print
products. We’re simply able to offer more
choices in our printed product in the current
environment, whether in color, size
and format of the paper, or special advertising
products, and in certain terms at a
higher quality than what our presses were
capable of.
While this move changes our workflow
to build each month’s Business Journal, it
does not change our focus on journalism
for this community and advertising services
for local businesses.
The Sun has gone through several eras
during our nearly 80 years of printing a
daily paper, in terms of our products, journalism,
business strategy and even our
physical home in downtown Bremerton.
In fact, acquiring the Kitsap Peninsula
MEEGAN M. REID / KITSAP SUN
Business Journal was a landmark change
in that vein, when we added a type of publication
that the company had never produced
in its history. This announcement
about our production shifting is a significant
one, and the latest step in our ongoing
evolution as a local news company.
The issue you’re holding is a sign of our
continued commitment to readers and the
business community, and the backstory
on its production should serve notice of
our intention to continue into the future
as a print and digital company, and do
so in the most efficient and effective way
possible. Thank you for your continued
readership and support.
• David Nelson is the editorial director
of the Kitsap Peninsula Business Journal
and editor of the Kitsap Sun. Contact him
at dnelson@kitsapsun.com.

4 |MARCH 2015 WWW.KPBJ.COM
banking and finance
The fallout from Frontier Bank failure
Loans made in Kitsap County by a major bank
that went belly up have been bought and sold since,
leaving a mix of vacancies and potential for development.
By Tad Sooter
For Kitsap Peninsula
Business Journal
Heavy machinery sits idle
at a gravel quarry off Werner
Road in Bremerton,
waiting to be sold or scrapped.
Buyers pick their way through
the once-bustling yard, hunting
for equipment they can use.
On Poulsbo’s Viking Way, businesses
are gradually filling the
spacious buildings and sprawling
parking lots once home to
an auto empire. In South Kitsap,
more than 600 homes are slated
for construction on the site
of two formerly stalled developments.
And back in Bremerton, a
small marina near the foot of the
Warren Avenue Bridge is enjoying
calmer seas under new ownership.
Scattered across the county,
these properties share a common
bond: a connection to failed
Frontier Bank. Five years after
regulators shuttered the Everett
institution, the repercussions of
its failure are felt seemingly everywhere
in Kitsap.
Union Bank took over Frontier’s
assets in April 2010. In an
effort to collect on Frontier’s defaulted
loans, the San Franciscobased
bank forced sales of many
high-profile Kitsap properties,
often recouping a small fraction
of the amount originally owed
by borrowers, according to court
documents.
Union Bank currently owns
several properties in the county
acquired through forced sales,
including parcels home to Money
Tree and Los Cabos on Wheaton
Way, and the Wyatt Way Courtyards
office building on Bainbridge
Island.
A recent dropoff in judicial
foreclosure filings suggests
Union Bank may be wrapping up
its interest in defaulted Frontier
loans. A Union Bank representative
declined to say how many
commercial loans the bank had
taken on in Kitsap County, and
how many remained outstanding.
What is clear is Union Bank is
withdrawing its physical presence
from West Sound. The
bank closed seven former Frontier
branches on the Kitsap and
Olympic peninsulas in February,
leaving only a Bainbridge Island
location open.
A Union Bank spokesman told
Kitsap Peninsula Business Journal
the move was necessary “in
order to remain competitive in a
tough environment.”
The last physical reminders
here of Frontier Bank are being
closed by Union Bank. But other
properties touched by the failed
bank are in various stages of
changing hands, illustrating how
pre-recession lending affected
some ambitious plans for business
growth.
RISKY REAL ESTATE
A glut of risky commercial real
estate and construction loans,
coupled with weak board management,
toppled Frontier bank,
according to a 2010 Federal Deposit
Insurance Corporation review.
In 2006, before the real estate
bubble burst, Frontier had accumulated
the largest concentration
of commercial real estate
loans of any major Washington
bank. Despite being considered
“well capitalized” as late
as March 2009, the bank’s capital
growth hadn’t kept up with
the growing risk associated with
its real estate and development
loans, according to the review.
LARRY STEAGALL
The Wyatt Way Courtyards office building on Bainbridge Island is
one of numerous Kitsap County properties originally finananced by
Frontier Bank, which failed in 2010, and now owned by Union Bank
after foreclosure sales.
Frontier became one of 18
Washington banks shut down
by regulators between 2009 and
2013. Its faiure cost the Deposit
Insurance Fund $1.3 billion.
Frontier’s list of borrowers included
some infamous names
from Puget Sound’s development
boom and bust. They included
Michael Mastro, a Seattle
real estate magnate who filed for
bankruptcy in 2009. Mastro later
disappeared to France where
for years he successfully avoided
extradition back to the United
States on fraud and money laundering
charges.
According to court documents,
Mastro took out a $4 million
loan from Frontier Bank in 2007,
using condominiums in the troubled
Meridian complex on Bainbridge
Island as collateral.
The court appointed a receiver
on the
cover
Stephen Taylor,
a geologist
from Lacey,
takes photos
of the rock
piles at the Ace
Paving quarry
in Bremerton.
LARRY
STEAGALL
Idled equipment
at the Ace Paving
quarry at the end
of Werner Road
in Bremerton,along
with other assets
and real estate, are
for sale after the
company went into
receivership.
LARRY STEAGALL
for the units in 2011, at the request
of Union Bank.
The eight units sold last year,
netting $1.34 million for the
bank.
In 2006, Frontier made large
loans to subsidiaries of Bellevue-based
Centurion Financial
Group, LLC, which was involved
in two residential developments
— Bayside and Sinclair Ridge
SEE FRonTIER | 7

WWW.KPBJ.COM
MARCH 2015 | 5
small business
Ask any entrepreneur
what their biggest
holdup to launching
or growing their business
is, and the
answer will
come quick
and sure:
Money.
There is
little doubt
that finding
capital
to finance a business venture
is the most basic and
important of all business
activities. It also can be
the most frustrating one
if you don’t know where to
look and how to navigate
the process. Finding capital
can be a smooth, rewarding
experience provided
you study diligently
and plan effectively.
Putting together the
necessary documents is a
time-consuming process;
once gathered, though,
the process will go more
smoothly for you. Information
a lender will want
to review before making a
decision about a loan includes
credit factors, financial
needs assessment
and a business checklist.
Credit FaCtors
Equity Investment —
Business loan applicants
must have a reasonable
amount invested in their
business. This ensures
that, when combined with
borrowed funds, the business
can operate on a
sound basis.
Earnings Requirements
— Financial obligations
are paid with cash, not “on
paper” profits. When cash
outflow exceeds cash inflow
for an extended period
of time, a business cannot
continue to operate.
Working Capital —
Working capital is defined
as the difference between
current assets and current
liabilities. Current assets
are the most liquid of your
assets.
Collateral — Collateral
is an additional form of
security that can be used
to assure a lender that you
have a second source of
loan repayment.
Resource Management
| calvin goings
Tips for getting an SBA loan
— Resource management
is how you handle the dayto-day
affairs of your business,
including how you
pay your debts, collect on
debts, deliver services or
products to customers and
manage inventory.
FinanCial needs
assessment
Whenever possible, it’s
better to anticipate your
needs rather than looking
for money under pressure.
It is harder to gain
approval for a loan when
your company is already in
trouble, so plan ahead and
secure financing well in
advance of a crisis. Before
you seek financial assistance,
thoroughly assessing
your current financial
situation is critical and includes
asking the following
questions:
• Do you need more capital
or can you manage the
existing cash flow?
• If you are having trouble
paying your obligations
on time, you may need an
infusion of working capital.
What is the nature of
your need?
• Do you need money
to start or expand your
business or as a cushion
against risk? How urgent
is your need?
• All businesses carry
risk, and the degree of risk
will affect both the cost of
the loan and available financing
alternatives. How
great are your risks?
• Needs are generally
more critical during transitional
stages — start-up
and expansion being two of
the most urgent and costly.
In what state of development
is your business?
• The lender will need to
know your specific intentions
for the money, to assure
that your business
will thrive and that repayment
is assured. For what
purposes will the capital
be used?
• Whether your industry
is depressed, stable, or
quickly-growing will have
a distinct effect on your
search for funding sources.
Businesses that prosper in
tough economic times will
generally receive better
funding terms. What is the
state of your industry?
• Seasonal needs for funding
are generally short term,
and consist of smaller loans
with a quicker maturation.
Loans advanced for cyclical
industries, such as construction,
are designed to
support a business through
depressed periods — these
industries are sometimes
known as “feast and famine”
businesses as the cash
flow is often erratic and unpredictable.
Is your business
seasonal or cyclical?
• Effective management
is an important element
of business. Your lender
will be looking for a strong
managerial presence. How
strong is your management
team?
Business loan
CheCklist
Before you start applying
for loans, assemble some
basic documentation. The
following are typical items
that will be required for
any small business loan
application:
• Personal Background
— Either as part of the loan
application or as a separate
document, gather your personal
background information,
including previous addresses,
names used, criminal
record, educational
background, etc.
• Resumés — Some lenders
require evidence of
management or business
experience, particularly for
loans that are intended to
be used to start a new business;
polish your resumé.
• Business Plan — All
loan programs require a
sound business plan to be
submitted with the loan
sEE sBa loan | 8

6 |MARCH 2015 WWW.KPBJ.COM
By Rodika Tollefson
KPBJ contributor
When Union Bank announced
the closure of
all its Kitsap Peninsula
branches — and a total of
20 out of 40-plus around
the state — the bank said
it would continue to serve
local customers through
mobile and online options.
The move surprised
many in the financial sector.
But it seemed like a
sign of the times, considering
the steady growth of
mobile banking.
A Federal Reserve System
report last year estimated
that 51 percent
of U.S. smartphone owners
banked online in 2013,
compared with 42 percent
in 2011 — and the number
of smartphone owners has
been growing at the same
time.
Even the smaller, community-based
banks are
trying to keep pace with
the technology, seeing mobile
banking not as a perk
but an option expected by
customers.
“(Lack of it) could be a
reason someone doesn’t
bank with you, so we want
to make sure we stay on
top of technology,” says
Rhonda Morris, senior
vice president of operations
at Poulsbo’s Liberty
Bay Bank, which plans to
launch a mobile app in the
next six months. “Everyone
is going so fast, they don’t
have time to go to the bank
and make a deposit.”
The retail branch may
appear to lose its relevance,
especially as younger
generations prefer to do
their banking on the fly.
New options like online
chatting, virtual tellers
and mobile deposit capture
are reducing the need
for face-to-face human interaction
— so it’s not surprising
that nationwide
trends show a decline in
branch traffic.
But local financial institution
leaders say the
brick-and-mortar branch is
here to stay. Perhaps reinvented,
smaller, more conversational
— but a physical
presence all the same.
banking and finance
Branch of the future: Smaller,
more high-tech, but here to stay
LARRY STEAGALL
Branch manager KristiAnn Stecker demonstrates how the automated teller functions at
the First Federal branch in Silverdale.
Fewer routines,
more conversations
“People are gravitating
to mobile as they’re getting
more comfortable
but they still want physical
contact,” says David
Devine, senior vice president
and marketing director
for Tacoma-based Columbia
Bank, which offers
online chatting and was
getting ready to launch
mobile deposit capture at
the end of February.
That desire for physical
contact is reflected in
trends in brick-and-mortar
banking over decades.
A study recently released
by the Federal Deposit
Insurance Corp. showed
that while the number of
branches have contracted
during certain periods
such as economic or banking
crises, far more bank
offices were added during
expansions than offices
closed during contractions.
The FDIC found that “between
1970 and 2014, the
total number of banking
offices grew nearly twice
as fast as the U.S. population,
and as of 2014 the
density of banking offices
per capita was higher than
it had been at any point
prior to 1977.” While fewer
transactions are being
conducted at the branches,
customers still value a
physical location as part of
the available options, the
FDIC report says.
“What we see is a shift
toward the type of banking
customers would like
to conduct in a branch,”
Devine says.
The type of business
customers are conducting
at the branch is less transactional
and more expertise-driven,
says Leah Olson,
vice president of marketing
at Kitsap Credit
Union.
“Our members love the
convenience to be able
to access us at the access
point of their choice
— they like having that
choice,” she says.
Kitsap Credit Union updated
its computer core
last year so new products
and services can be added
— services like mobile deposit
capture, which will
be launched later this year,
and online loans, thanks
to the ability to sign documents
virtually.
“The idea is that more
routine transactions will
go through the website
and the focal point (of the
branch) is to engage the
membership,” says Jeff
Wells, Kitsap CU e-business
manager. “You can’t
do that electronically.
When you sit across from
someone, you get a better
sense of their need.”
smaller Footprint,
more eFFiciency
As remote transactions
are becoming more convenient,
in-person transactions
are getting faster.
Cash recyclers — machines
that count and dispense
cash, similar to
those at many grocery
stores — are becoming a
common sight.
Kitsap Bank has cash recyclers
at its two Bremerton
branches, along with
teller-capture technology,
which reads checks electronically.
This means
transactions are much
faster and require fewer
employees, says Tony
George, Kitsap Bank president
and chief operating
officer.
“The technology has
freed up employees to provide
more one-on-one help
and spend more time with
customers,” he says.
The new East Bremerton
branch, which was built
last year, has one notable
difference from the old
building. It is about half
the size.
The changes in consumer
habits along with the
new technology are allowing
banks to function in a
much smaller footprint,
more efficient spaces that
cost less to operate.
One feature of Kitsap
Bank’s new space won’t
be unveiled for a while
longer: a virtual teller. A
space by the common teller
area has been designed
to accommodate the feature,
which is expected
to launch within a year or
so. The virtual teller will
be able to perform typical
transactions such as deposits,
check cashing and
dispensing cash and coins.
“We designed the branch
with the future in mind,”
George says. “We knew at
some point the technology
will be available that allows
customers to do 90
percent of transactions
(without human help).
the branch
oF the Future
So what will the branch
of the future look like? Local
financial institution
leaders have similar visions.
Smaller footprint.
More self-serve options
see BRanch | 7

WWW.KPBJ.COM
MARCH 2015 | 7
frontiEr | from 4
— off Anderson Hill Road just south of
Gorst.
The principals of Centurion were later
embroiled in lawsuits and investigated
by state and federal regulators for questionable
investment practices, according
to reporting by the Puget Sound Business
Journal.
By the time Union Bank sought receivership
for the development properties in July
2011, the Centurion companies owed the
bank more than $39 million in unpaid loan
principle, interest, fees and property taxes.
A receiver’s sale of the 56-acre Bayside
property, slated for 294 homes, netted the
bank about $1.5 million in 2012.
Union Bank saw an even smaller return
on the 200-acre Sinclair Ridge property.
According to documents filed by the receiver,
potential buyers felt the 800 lots
originally planned for the property were
too small to be feasible for most builders.
The land sold in June 2012 for $800,000,
netting Union Bank $740,000.
Between the two land sales, Union Bank
recouped about $2.2 million, less than 6
percent of money owed on the defaulted
loans.
Both stalled residential developments
are now moving again. Bayside plans were
revived by Freestone Cos. of Fife, which
began work on new homes there last year.
The sprawling Sinclair Ridge property
is now owned by Northview Ridge, LLC of
Suquamish, which submitted plans for a
more modest, 300-home subdivision.
PaVED oVEr
While some of Frontier’s biggest borrowers
were regional players, others were
well known Kitsap companies.
One was Ace Paving, a venerable
Bremerton construction company that
suffered a work slowdown during the recession.
Ace and its related corporations owed
on several Frontier loans when the bank
failed.
Union Bank tried to force the company’s
properties into foreclosure in 2011, but later
sold its interest in the loans to a third-party
corporation called Copper Leaf, LLC.
Ace Paving finally entered receivership
sEE frontiEr | 8
branch | from 6
including virtual tellers and iPads. Universal bankers.
Perhaps concierge service.
Liberty Bay Bank, among a few others, has already
applied some of those concepts. It doesn’t have tellers
but rather professional bankers who canhandle any transaction
or question, and they can even visit a customer’s
business site to sign them up for new products.
“We’re a relationship bank and most relationship customers
like that hands-on style,” Morris says.
In the future, George sees spaces similar to the Apple
retail stores, an open design concept with individual help
desks. And more consumers embracing the self-serve options,
much like they did with airline check-in.
“Because of technology, you can do a lot of things
through a machine and as people get used to that, you’ll
see more of them migrating,” he says.
For the Silverdale branch of First Federal, headquartered
in Port Angeles, that future has arrived. The
branch, which opened last June as First Federal expanded
onto the Kitsap Peninsula, has an interactive teller
machine and teller “pods” with universal bankers trained
to handle any need. A tech bar with iPads gives customers
virtual information and options, and video conferencing
is available at the branch with financial advisers.
The virtual teller looks like an ordinary ATM but when
a customer touches the screen, a teller from the Port Angeles
main office pops up on the screen. The human teller
performs the transaction on the back end, while the machine
takes the deposits or dispenses dollars and coins.
“Customers enjoy it because they don’t have to be experts
in the technology,” says Kelly Liske, executive vice
president and chief banking officer at First Federal.
Liske says the machines have been available for some
time and are popular on the East Coast and in the Midwest,
but slower to be adopted on the West Coast. First
Federal is the only bank currently to offer them on the
Olympic Peninsula and possibly in the entire Puget
Sound area (the bank has a virtual teller at a Port Angeles
branch too, and more on the way at other locations).
One teller located at the central office can service three
of these machines, and once more are in place, there are
efficiencies because of economies of scale, Liske says.
The Silverdale branch is only 2,300 square feet because
it doesn’t need as many tellers. Traditionally, branches
are 2,500-4,000 square feet, according to Liske.
Despite the technology available at First Federal, Liske
says the number of physical transactions hasn’t dropped
dramatically. Still, she expects to see changes as consumers
no longer have to leave home to pay bills or deposit
checks. “I think you’ll see consolidation in the industry due
to the fact that the same transactions that were offered in
a branch setting can be done anywhere,” she says.
Kitsap Bank’s George says community banks will always
play a local role while expanding their capabilities
thanks to technology.
“We’re going to a cashless society but I don’t see banks
going away from facilitating transactions,” he says. “People
want to know their money is safe and invested in the
local community.”

8 |MARCH 2015 WWW.KPBJ.COM
frontIEr | from 7
this winter, with Copper Leaf looking to
recoup nearly $7 million in debt.
Court-appointed receiver Gary Hunter
said sales of machinery and vehicles are
already under way at former Ace paving
yards, including those on Werner Road.
About $10 million worth of real estate will
be listed, he said.
While some of Frontier’s
biggest borrowers were
regional players, others
were well known Kitsap
companies.
VIKInG rEVVInG UP
On Poulsbo’s Viking Way, activity is finally
returning to the former lots of Courtesy
Auto Group, another Kitsap institution
that saw the bottom fall out of its industry.
The recession hit Viking Way vehicle
dealers hard. Even Poulsbo RV abandoned
its namesake location in 2009.
John and Terri Hern, owners of Courtesy
Auto, held on. According to court documents,
the Herns took out a $10.3 million
loan from Frontier Bank in January 2009.
The influx of cash wasn’t enough to keep
Courtesy Auto rolling.
The Herns shut down Courtesy Ford in
August 2011. By November, Union Bank
had successfully petitioned a court to
place the Herns’ nine Viking Way parcels
in receivership.
The Herns’ auto empire was sold off in
pieces in the following years, fetching
roughly $5 million. One property became
a Washington Tractor outlet. Another became
home to an auto body shop, while
Hudson Auto Center moved into Courtesy’s
former used car lot.
The final, crowning property, the Courtesy
Ford showroom, sold in January. The
buyer was another Viking Way business
family, the owners of American Building
and Roofing. They’ll relocate their business
up the street to the 40,000-square foot
building. Hudson Auto Center will also
sEE frontIEr | 9
sba loan | from 5
application and should
include a complete set of
financial statements, profit
and loss statements,
cash flow and a balance
sheet.
• Personal Credit Report
— Obtain a credit report
from all three major consumer
credit rating agencies
before submitting a
loan application to the lender.
Inaccuracies and blemishes
on your credit report
can hurt your chances of
getting a loan approved.
It’s critical to clear these up
before beginning the application
process.
• Business Credit Report
— If you are already in
business, be prepared to
submit a credit report for
your business. As with the
personal credit report, it is
important to review your
business credit report before
beginning the application
process.
• Income Tax Returns
— Most loan programs require
applicants to submit
personal and business income
tax returns for the
previous three years.
• Financial Statements
— Many loan programs require
owners, with more
than a 20 percent stake
in the business, to submit
signed personal financial
statements. It is a good idea
to have these prepared and
ready, in case a loan program
for which you are applying
requires these to be
submitted individually.
• Bank Statements —
Many loan programs require
one year of personal
and business bank statements.
• Collateral — Collateral
requirements vary greatly.
Some loan programs
do not require collateral.
Loans involving higher
risk factors for default require
substantial collateral.
Strong business plans
and financial statements
can help you avoid putting
up collateral. In any case,
it is a good idea to prepare
a collateral document that
describes cost/value of
personal or business property
that will be used to
secure a loan.
• Legal Documents
Depending on a loan’s
specific requirements, your
lender may require you to
submit one or more legal
documents. Make sure you
have the following items in
order, if applicable: business
licenses and registrations
required to conduct
business; Articles of Incorporation;
copies of contracts
with any third parties;
franchise agreements;
commercial leases.
The U.S. Small Business
Administration (SBA) has
resources and partner organizations
available to
assist with this process:
• SCORE www.score.
org, for Kitsap Score, go to
www.kitsapscore.org
• SBDC www.wsbdc.org
for Kitsap SBDC, go to
kevin.hoult@wsbdc.org
• WBC www.sba.gov/
women, for Kitsap WBC,
go to www.wcwb.org
Don’t let money hold up
your small business plans.
Once you have completed
the business loan checklist,
contact one of SBA’s
resource partners. After
a careful review of your
documents, they’ll let you
know that it’s time to contact
a lender. And remember,
SBA is always willing
to help you too. If you have
further questions, contact
our staff in the Seattle District
Office at 206-553-7310.
• Calvin Goings is regional
administrator of the
Small Business Administration’s
Seattle office that covers
the Pacific Northwest.

WWW.KPBJ.COM
Kitsap ptac
Contracting with the federal
government is a vastly different,
and generally more
complex, experience
than vendors
and service providers
encounter
when contracting
with private
business organizations.
Ironically,
the extensive
regulations and policies that can
make this process so cumbersome
to small businesses were
actually established to benefit,
guide and protect them.
Small and disadvantaged firms
are afforded the widest opportunity
to develop and grow through
contracting opportunities with
the government. All they have to
do is comply with over 600 Federal
Acquisition Regulations (FAR)
provisions and clauses (and
equally as many follow-on clauses
and provisions established by
each agency). It is definitely not
for the faint of heart. If you are
| mONa carlsON
Coffee Hour offers help in complex
world of government contracting
old school and prefer a hard copy
of the FAR, you will have to comb
through over 2,100 pages of regulations.
Thankfully, today search
engines and, yes, YouTube videos
make it easier to find the information
that pertains to your contract
more quickly.
That is assuming you know
what you don’t know.
The government will identify in
each solicitation or contract the
applicable provisions and clauses
for that action, but in a construction
contract that could equate
to over 200 clauses. However, in
the event that the RFP (Request
for Proposal) or contract omits a
clause that is required by law, it is
included by default and must be
complied with.
To further complicate matters,
those new to working with the
government often find it difficult
to access help and guidance. Local
contracting personnel are bound
by even stricter standards and
must maintain the highest level
of ethics and cannot risk showing
prejudice between contractors by
assisting individual contractors
during the RFP process.
The burning question for both
new and experienced contractors
is “Where can I go for help?”
Fortunately there is help. The
Washington State Procurement
Technical Assistance Center receives
funding from the Department
of Defense, and PTACs
employ counselors and staff to
help bridge the gap and provide
businesses with technical expertise
needed to achieve success in
the arena of doing business with
the government. PTACs provide
free and confidential business
assistance and support to regional
businesses in marketing
and selling to federal, state and
local government agencies and
prime contractors. PTACs also
assist agencies, departments and
primes in their efforts to comply
with federal and state procurement
diversity goals.
Here in Kitsap, the Kitsap Economic
Development Alliance
MARCH 2015 | 9
(KEDA) is your local Washington
PTAC sub-center with a service
area covering Kitsap, Clallam,
Grays Harbor, Jefferson and Mason
counties. In addition to oneon-one
support and procurement
training classes and seminars,
KEDA recently established an
open forum the first Wednesday
of every month where businesses
can receive help on just about
anything related to contracting
with the government.
The informal atmosphere also
provides an opportunity to network
with other contractors; discuss
current issues; identify upcoming
solicitations or subcontracting
opportunities; and receive
instruction on specifics
such as how to register in Wide
Area Workflow or resolve SAM
(System for Award Management)
issues. And it is a great platform
to find answers to questions that
you didn’t even know you needed
to ask.
The Contracting Coffee Hour
(sorry, no drive-through) is hosted
by KEDA and facilitated by
Mary Jo Juarez and Mona Carlson,
both retired government
contracting officers. Sessions
take place at KEDA (4312 Kitsap
Way #103 in Bremerton) from
7:30 a.m. until the questions run
out. In recent sessions, Chugach,
the new Base Operating Services
Contractor, provided guidance
on how to get established in their
subcontracting program. There
was also an impromptu session
on marketing to government that
included evaluating and updating
capability statements, line cards
and business cards.
Another benefit of the coffee
hour sessions is that KEDA
has been able to identify problem
areas and expand and target
their training to be responsive to
the issues contractors are facing.
KEDA’s PTAC training schedule
and resources are available online
at www.kitsapeda.org/ptac.
So, if you haven’t managed to
read all of the FAR’s 2,100 pages,
(even if you have and you just
have questions) call 360-377-
9499 or stop by the KEDA office
the first Wednesday of each
month for coffee and an answer.
• Mona Carlson has over 30
years’ experience in government
contracting, recently working
as a supervisory contracting
officer for NAVFAC NW (Naval
Facilities Engineering Command,
NW). In addition to being
a PTAC counselor, she also works
as a government contracting
consultant with Blue Ink Consultants.
To learn about the PTAC
program, contact Kathy Cocus at
KEDA at cocus@kitsapeda.org.
expand into the showroom, bringing the former dealership
property full circle. (See story, page 34)
Poulsbo City Councilman Ed Stern said the time the
real estate spent tied up in legal limbo hurt commerce
along Viking Way. Getting the property reopened for business
will be a shot in the arm for the corridor, he said.
“The whole thing is in movement now,” Stern said. “And
after years of being frozen, that’s important.”
SMOOTHER SAILING
After years of uncertainty, the former Port Washington
Marina in West Bremerton is also back on the right
course.
The marina, tucked inside the narrows just west of the
Warren Avenue Bridge, slipped into receivership after the
previous owner, Seven JS Investments, defaulted on a $1.5
million Frontier loan.
Partners in the Port Orchard Railway Marina bought
the foundering marina on Thompson Drive from a receiver
a year ago for $460,000. The new owners switched the
name from Port Washington to Bridgeview Marina, and
are gradually catching up on neglected maintenance.
“I think there was a lot of Band-Aid sort of repair work
being done,” Bridgeview Marina Inc. president Jeremy
McNeil said. “We want to make more permanent repairs.”
The partners hope to make the marina a more permanent
success as well. Fewer than half of the 80 slips are
occupied. They hope upgrades to the facilities and competitive
prices will help draw boaters back.
The view of the narrows and bridge certainly doesn’t
hurt.
“The beauty of it is really one of the appeals,” McNeil
said.

10 |MARCH 2015 WWW.KPBJ.COM
Gig Harbor waterfront rezone plan stirs controversy
This view looking southeast along
Harborview Drive shows Susanne’s Bakery
and Deli on the left. Susanne’s is at one end
of the Millville waterfront area that would be
affected under a proposed zoning amendment.
RIC HALLoCK
“We will not gain seating or space, but we do gain a
world class view,” Doherty wrote.
State law prohibits spot zoning for specific properties.
The proposed amendment would encompass the waterfront
side of Harborview Drive between Rosedale Street
and just past the Dorotich Street intersection. The affected
area has two Restaurant 1 buildings, Netshed and Susanne’s
Bakery and Deli.
Should the amendment be passed, a restaurant could
not be established in the new zone without a conditional
use permit. The existing restaurant, Susanne’s, would
also need a new conditional use permit should it want to
change the type of use. Any application for restaurant
2 or 3 would require a public hearing and a review by a
hearing examiner.
Proposed change would
expand types of restaurants
allowed in Millville district
By Rodika Tollefson
KPBJ contributor
A proposal to rezone a portion of Gig Harbor’s waterfront
to allow a certain type of restaurants has caused
controversy among local residents. The proposed amendment
to the city code would allow class 2 and 3 restaurant
uses in a portion of Millville.
Millville currently is zoned for restaurant 1 use via conditional-use
permit — allowing a maximum size of 3,000
square feet, plus beer and wine for establishments under
1,200 square feet, but no grill or deep-fat fryer. Restaurant
2 would allow a grill and deep-fat fryer. Restaurant 3
would allow alcoholic beverages.
The Gig Harbor Planning Commission voted to recommend
denial of the proposal last November. But the commission
rescinded the motion at a following meeting, citing
“substantial and unexpected” absences during the
previous vote. A subsequent motion to recommend approval
passed.
The move surprised local residents such as Carol Davis,
who has been urging the commission to deny the amendment,
writing letters to the editor and testifying at public
hearings. Most of the concerns are centered on negative
impacts on traffic, nearby residents and the quaint character
of the neighborhood.
“It’s a big step that will totally transform the area,” said
Davis, who was on the planning commission in the late
’90s.
Plans for new restaurant
The proposed amendment was submitted last year by
Gig Harbor Marina Inc., which owns Arabella’s Landing
Marina as well as several other buildings in the area, including
one that houses the Netshed No. 9 restaurant and
the Ship to Shore retail shop.
Two new buildings are planned for Ship to Shore on the
same property, leaving its current building vacant.
John Moist, marina manager who submitted the application
on behalf of property owner Stanley Stearns, said
he was approached by Netshed owners Thad Lyman and
his wife, Katie Doherty. The couple was interested in
moving their other restaurant, Brix 25, to the future vacant
building from their location on Pioneer Drive.
“They came to us with a plan and we thought it was a
good business plan,” Moist said.
Lyman and Doherty said via email that they would like
to relocate Brix so they can open a third restaurant at its
current location.

WWW.KPBJ.COM
“I thought everyone would love
the idea of a nice restaurant in
the neighborhood.”
EMOTIONS STIRRED
The city of Gig Harbor created
the historic Millville district
in 1991 with the intent of
providing “an intensity and
scale weighted toward a residential-recreational
use” and
protecting existing residences
while still allowing some
development options.
The city changed restaurant 1 uses for Millville in 2011
to allow alcoholic beverages for establishments up to
1,200 square feet, as well as to extend permitted closing
time to 9 p.m. from 7.
That amendment was requested by Moist on behalf of
Stearns and his wife. It also brought opposition from residents
at the time — but, noted Gig Harbor City Councilman
Paul Kadzik, “has been a non-issue” since then.
Kadzik, a former planning commission member, was involved
with the Millville zoning as a resident in the early
’90s. He said Millville would have been zoned as residential
on one side and commercial on the other, so residents
petitioned the city for a buffer zone.
He said the nature of residential Millville has changed
since then. At the time, most homes were rentals and “for
the most part, in a pretty sad state of repair.” The Kadziks,
as well as many of their neighbors, had children in school.
“Now we know it’s a good, solid residential neighborhood,”
he said, adding that with all those kids now grown,
most residents are empty nesters.
“I like the amenities and being able to walk to them
downtown,” he said. “But I understand people who want
a residential feel.”
Carol Davis, a former Millville resident who lived for
18 years across from what is now Netshed No. 9, is one
of those who expressed concerns for the residential feel
of the neighborhood as well as other nuisances like increased
traffic, noise and odors.
“I think the city has the mistaken belief that more business
will create economic vitality and perhaps produce
more tax revenue,” she says. “One or two restaurants will
not support Millville because you’d need people shopping
there on a regular basis.”
Much of the opposition has come from an activist group
called Citizens for the Preservation of Gig Harbor, whose
major concern is that the city is allowing the downtown
to lose its character. The group expressed the same concerns
in 2013 when the city changed the downtown business
district height restrictions to allow taller buildings
in hopes to foster more economic development.
Jeni Woock, a spokesperson for the group, wrote in a recent
guest column that the change in zoning would allow
fast-food restaurants to come to downtown, and even create
a row with as many as 10 restaurants.
City planners have disputed that notion, pointing out
that fast-food restaurants have been allowed elsewhere
downtown since 1990 but none have expressed interest.
The downtown design standards, size and other regulations
have been among the deterrents.
A visioning process several years ago sought public input
on future uses of downtown. The second-highest
need identified by the 120 people who attended the town
hall meeting was restaurants, second only to groceries.
Moist said he didn’t expect to see the public outcry over
his proposed amendment.
“I thought everyone would love the idea of a nice restaurant
in the neighborhood,” he said.
Following the public hearing in November, he submitted
changes that included a smaller affected area as well
John Moist, property manager
for area of requested zoning amendment
as a closing time of 11 p.m.
The city’s planning director,
Jennifer Kester, said she
has only identified five properties
that would allow for
restaurants in that area, and
those sites include Netshed
and Suzanne’s.
MARCH 2015 | 11
IN COUNCIL’S HANDS
The city council had a public hearing on the proposed
amendment on Feb. 23. Of the 28 people who testified, 13
were opposed, 12 were in favor, and three had ideas for
the council’s consideration.
Instead of holding a second reading, the council decided
to have a study session to discuss issues and potential
changes to the planning commission’s proposal. Some
of the questions include whether there should be limits
for deep-fat fryers, the bar area and delivery times, and
whether the hours recommended by the planning commissioners
— 6 a.m. to 11 p.m. — are appropriate.
If the council decides to modify the planning commission’s
recommendations, it must hold another public
hearing. A decision will likely not be made until the end
of April or early May in that case.
Moist said he expects the new Ship to Shore buildings
to break ground by May and be finished by the end of the
year. Provided the city approves the zoning amendment
and later a conditional use permit, Brix could move in
around early 2016 at the soonest.
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Business Journal on
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12 |MARCH 2015 WWW.KPBJ.COM
retirement planning
Planning for retirement is important,
and here are eight critical retirement
planning mistakes to avoid.
1. Not having a cashflow
plan: Retirement is
all about cash flow, not
your net worth. Your income
will determine your
lifestyle in retirement.
Now that you are retiring,
what you have accumulated
needs to provide for your income needs
for the remainder of your life. Spending
too much in the early years or experiencing
significant losses in the early years
could result in running out of money before
you run out of time.
2. Not having a budget. Many high net
worth/high-income earners have never
lived on a budget. Because their wages
are high, they have just lived comfortably
and been able to save along the way.
When you retire you no longer have earned
income, so what you have saved needs to
provide for you. To create a good cash-flow
plan in retirement you need to have a good
handle on how much money you spend every
month and year. Underestimating your
budget could throw off all the calculations
you make when creating a retirement plan.
The more accurate your budget, the better
your cash-flow plan. I’ve used and recommend
mint.com as a tool to help track
where your money is going. Benjamin
Franklin once wrote, “A small leak will
sink a great ship.” Create a budget before
you retire and practice sticking to it.
3. Not maximizing Social Security.
For many people Social Security will represent
40 percent or more of their guaranteed
retirement income. Social Security is
tax-advantaged income, inflation-adjusted
and has spousal and survivor benefits
that need to be considered. A poor choice
when starting Social Security could result
in $100,000 or more of lost benefits and
could be the difference between having
enough money to last the rest of your life
or running out too soon.
4. Having debt. If you envision retirement
as a time of freedom, travel, spending
time with loved ones and service to
others, then having debt may hinder your
dreams and your sense of confidence. I’ve
found the most successful retirees pay
cash when buying used cars; pay off credit
cards every month and only justify using
them at all as a means of accumulating
travel rewards; and, in the best-case
situations, have paid off their mortgages.
| Jason parker
Eight mistakes to avoid in a long-range plan
5. Assuming unrealistic stock market
rates of return. Since 1926 the stock market,
as measured by the S&P 500, has averaged
annualized returns a little more
than 10 percent. The key to these returns
is time. Over shorter periods of time, the
stock market can trade sideways or negative.
Assuming constant rates of returns
of 7-10 percent may make your retirement
numbers look good, but may not be realistic
given your retirement time horizon.
If you are thinking of buying stocks today,
then you should take into consideration
that the S&P 500 looks expensive
relative to history when using priceto-earnings
on a cyclically adjusted basis.
Robert Shiller is a Nobel prize-winning
economist well known for the CAPE
ratio. This fundamental, inflation-adjusted
means of valuing the stock market has
the S&P 500 with a CAPE higher than 27
while the median over the past 130 years
has been closer to 16. There have only
been three times in the last 130 years
when stocks have been more expensive.
With yields on 10-year treasuries yielding
less than 2 percent, I’d say bonds are also
looking expensive on a historical basis.
When making assumptions about future
rates of return, I like to say, “Let’s
hope for the best, but plan for the worst.”
To be safe, I’d recommend only assuming
a 4 percent rate of return on your at-risk
assets when constructing your retirement
plan.
6. Not planning for long-term health
care costs. Most people will be eligible
for Medicare when they turn 65 and
many will choose to purchase a supplemental
policy to cover the 20 percent of
health care costs Medicare does not cover.
However, according to Steve Brown, a
local long-term care insurance agent, fewer
than 9 percent of people have insurance
for long-term care health costs that
are not covered by Medicare or supplemental
plans.
These are the types of health care events
that result in the need for assistance for
an extended period of time. They can be
brought on by stroke, heart attack, cancer,
dementia, Alzheimer’s, Parkinson’s, MS
and the list goes on. According to Genworth’s
website, a recent study shows that
70 percent of people over 65 will need some
type of support. In Washington state, the
average monthly cost for a private nursing
home room is $8,500 per month. Many
people I’ve met with don’t want to believe
that any of these things could ever happen
to them. They point to their good eating
habits, healthy lifestyle choices, family
history and argue that they will never
end up needing assistance. While no one
wants to think about possibly losing our
independence due to health problems, not
planning for this type of expense could
significantly strain, if not completely wipe
out, a retirement plan. Worse, it may lead
to adult children having to consider becoming
caregivers. There is an old saying
that says, “One mamma can take care of
eight babies, but eight babies can’t take
care of one mamma.”
7. Not planning for inflation. Ask anyone
who retired with a fixed pension 20
years ago about inflation, and you will get
an earful. During the last 100 years, inflation
has averaged 3.3 percent as measured
by CPI and during the past 10 years
has averaged 2.3 percent. The Federal Reserve
has an inflation target of 2 percent
over the medium term. When planning
for future income needs, be sure to consider
the fact that your dollars will purchase
less in the future than they do today.
Create a plan that assumes you will
need more money to maintain your lifestyle
needs in future years.
8. Not having a plan for when one
spouse dies. Oftentimes with married
couples, one person manages the household
and one person manages the finances.
Unfortunately when the spouse who
manages the finances passes away or experiences
a significant health event, the
other spouse can be left in a fog of uncertainty
about what they should do, where
things are and what should happen next.
Not only do you need to make sure the
surviving spouse will have enough income
to maintain his or her lifestyle, but
also the surviving spouse needs to be able
to have the confidence to be able to carry
out the plan that was originally created.
• Jason Parker is president of Parker Financial
LLC, a fee-based registered investment
advisory firm working primarily in
wealth management for retirees. His office
is in Silverdale. Follow Jason’s blog at
www.soundretirementplanning.com.
Links used for researching this article:
• www.multpl.com/shiller-pe/
• www.rwjf.org/content/dam/farm/
reports/issue_briefs/2014/rwjf410654
• www.genworth.com/corporate/
about-genworth/industry-expertise/
cost-of-care.html
• financeandinvestments.blogspot.
com/2015/01/historical-annual-returnsfor-s-500.html
• data.bls.gov/pdq/SurveyOutput
Servlet
• www.federalreserve.gov/faqs/
economy_14400.htm
Like us here? Like us there.

WWW.KPBJ.COM
MARCH 2015 | 13
Women may face extra
challenges in seeking
financial security
Article provided by Edward
Jones for use by financial advisor
David Hawley Jr. of Belfair.
On March 8, we observe International
Women’s Day.
On this occasion, thousands
of events across the world
will honor the cultural, political
and social achievements of women.
Of course, in many countries,
women still face significant economic
challenges. And even here
in the United States, women encounter
more obstacles than men
in the pursuit of financial security,
particularly in seeking a comfortable
retirement lifestyle. So
if you are a woman — regardless
of your marital status — you will
need to be aware of these challenges
and take steps to overcome
them.
Let’s consider a few of these
challenges and some possible solutions:
financial focus
Challenge: Women spend more
time out of the workforce and accumulate
less money in 401(k)
plans.
Women spend an average of 12
years out of the workforce caring
for children or elderly parents,
compared with less than
two years for men, according to
the Social Security Administration.
This time away from work
can translate into less money in
retirement plans — in fact, women’s
average 401(k) balance is
only about two-thirds as large
as men’s, according to a study by
Fidelity Investments.
Potential solution: Take full
advantage of your 401(k) and
IRA.
Your care-giving obligations
are an issue to be decided by
you, your spouse and perhaps
other family members. But while
you are working, contribute as
much as you possibly can to your
401(k) or similar employer-sponsored
plan. Also, try to fully fund
your IRA each year.
Challenge: Women typically
live more years in retirement
and depend more heavily on Social
Security.
Women reaching age 65 are expected
to live, on average, an additional
21.6 years, compared
with 19.3 years for men, according
to the Social Security Administration,
which also reports
that the average annual Social
Security income received by
women 65 years and older was
about $12,500. Furthermore, Social
Security comprises about 50
percent of the total income for
unmarried women age 65 and
older, compared with just 36 percent
for elderly men.
Potential solution: To become
less dependent on Social Security,
create a sustainable withdrawal
strategy for your investment
portfolio.
Social Security was designed to
supplement one’s retirement income,
not replace it. Consequently,
it’s essential that you make
full use of your other sources of
income, such as your 401(k), IRA
and other investment accounts.
To make this money last, you’ll
| edward jones
Look through this
‘LENS’ when making
Social Security decisions
Article provided by Edward
Jones for use by financial advisor
Todd Tidball of Poulsbo.
the bigger checks will be worth
the delay?
In weighing this decision, consider
the acronym LENS, which
Your Social Security benefits
can be an important ployment, Need and Spouse.
stands for Life expectancy, Em-
part of your retirement income
Let’s look at each component:
strategy. But when should Life expectancy — If your fam-
you start taking these paymentsily
has a history of longevity, and
You can begin accepting Social
Security as early as 62, but your
monthly checks will be much
smaller than if you wait until
your “full retirement age,” which
will likely be between 66 or 67.
if you are in excellent health, it
may make sense for you to take
Social Security later, when your
monthly benefits will be higher.
You’ll also want to consider your
spouse’s life expectancy.
Employment — If you want to
And these monthly payments keep working in your “retirement
will get even bigger if you wait
until age 70, at which point they
“max out.” So, should you take
your Social Security as early as
possible and hope that the smaller
monthly payments will be justified
by the extra years of receiving
them, or should you wait
years,” be aware that your
earnings could affect your Social
Security payments. Specifically,
if you take Social Security early
— that is, before your full retirement
age — your benefits will
be withheld by $1 for every $2 in
earned income above a certain
see women | 14 until you are older and hope that
see lens | 14

14 |MARCH 2015 WWW.KPBJ.COM
business openings
CKFR medic offers local option for safety training
By Tim Kelly
KPBJ editor
A Central Kitsap firefighter and EMT
has started a business for teaching first
aid and CPR classes to Kitsap and Mason
County residents.
Kevin Bernt opened Compressions for
Life, an American Heart Association
training facility, at 701 Pacific Ave. in
downtown Bremerton.
The mission of Bernt’s operation is “to
train our neighbors and community to be
efficient and confident in an emergency.”
He will incorporate his real-world experiences
dealing with emergencies as a firefighter
and paramedic into the training he
provides at Compressions for Life.
Certification is offered in CPR, First
Aid and Automated External Defibrillator
(AED). The classes are geared toward
people whose jobs require them to have
such training, but the classes are open to
anyone would like to be trained.
“The more people that know CPR, the
safer our community becomes,” Bernt
said.
In addition to working for Central Kitsap
Fire & Rescue, Bernt has been teaching
various pre-hospital medical classes
for the past 10 years, including as a senior
EMT instructor for Kitsap County Emergency
Medical Services.
Education has been a priority and passion
for him, and he has a master’s degree
from Arizona State University in Science
in Public and Fire Administration.
Bernt, who’s originally from Portland
Kevin Bernt, left,
a paramedic for
Central Kitsap
Fire & Rescue,
teaches a cardiopulmonary
resuscitation
class. He is the
lead instructor
at Compressions
for Life, a new
business in
downtown
Bremerton that
provides CPR,
First Aid and
other safety
training.
LARRY STEAGALL
and has worked at CKFR for seven years,
began offering classes in Bremerton in
December and said he’s gotten a good response
in trying to get the word out.
“It’s been pretty positive,” he said. “I
just did the (Kitsap Business) Expo. I felt
like people here who have the need have
been going to Tacoma or Seattle, because
there’s not a class based here.
“It provides a place to go and get trained,
and it’s cheaper than Seattle or Tacoma.”
Bernt also will schedule presentations
at workplaces. “You don’t get certified but
you get training,” he said.
Certification for training completed at
Compressions for Life is through Inland
Northwest Health Service.
For now Bernt is the only instructor for
the classes, which can accommodate up
to 12 people. The different classes are offered
a few times a month with the schedule
posted online, and classes are either
Wednesday or Thursday evening or Saturday
morning. This summer he hopes to
offer advanced cardiac life-support classes.
Bernt hopes the Compressions for Life
class fees will cover the operating expenses
for his business, which will have an official
ribbon-cutting with the city and
Chamber of Commerce in June.
“I don’t see it as huge profitable venture;
it’s not that kind of business,” he said. “I’m
just kind of doing it to provide a service to
the public.”
For more information about classes, call
360-731-2507 or visit the website www.
compressions4life.com.
womeN | from 3
need to create a sustainable
withdrawal strategy early in
your retirement — and stick
to it.
Challenge: Women are far
more likely than men to need
some type of long-term care.
More than two-thirds of
nursing home residents are
women, according to the
National Center for Health
Statistics. And the average
cost for a private room in a
nursing home is more than
$87,000 per year, according
to the 2014 Cost of Care Survey
produced by Genworth,
a financial services company.
Typically, Medicare covers
only a small percentage
of these costs.
Potential solution: Prepare
in advance for long-term care
expenses.
Long-term care costs can
be enormous, but you do have
some protection-related options
for meeting these costs.
Check with your financial advisor
to learn which of these
choices might be most appropriate
for your situation.
These aren’t the only financial
issues facing women, but
they do give you a good idea
of what you may be facing.
So, be proactive in meeting
these challenges — because
there’s actually a lot you can
do.
leNS | from 3
amount ($15,720 in 2015). During
the year in which you reach
your full retirement age, this withholding
changes to $1 for every $3
in earnings over the annual limit
($41,880 in 2015). The withheld
amounts could also affect spousal
benefits. However, beginning the
month you attain your full retirement
age, benefits will no long longer
be withheld based on how much
you earn.
Also, Social Security will recalculate
your benefits at full retirement
age to account for the benefits that
were withheld. In any case, if you
do plan to continue working, and
you think you could have significant
income, you’ll need to understand
the effect that earnings will
have on your annual benefits.
Need — In deciding when to take
Social Security, here’s a key question:
Do you need the money? If you
can support your lifestyle for several
years with alternative sources
of income (such as a pension) and
modest withdrawals from your investments,
you may be able to delay
Social Security, thereby increasing
the size of your monthly payments.
Be careful, though, because relying
too heavily on your investment
portfolio can shorten its own “life
expectancy.” It’s essential that you
maintain a reasonable withdrawal
rate for your investments throughout
your retirement.
Spouse — Your decision of when
to take Social Security will affect
your spouse’s survivor benefit. Surviving
spouses can receive their
own benefit or 100 percent of their
deceased spouse’s benefit, whichever
is greater. So, if you were to take
your Social Security early, when the
payments are smaller, your spouse’s
survivor benefits will also be permanently
reduced.
If you are older than your spouse,
or otherwise expect your spouse to
outlive you, it might be a good idea
to delay taking Social Security to
maximize the survivor benefits.
As you think about when to take
Social Security, look at your decision
through the LENS described
above. It could help clarify your options.

WWW.KPBJ.COM
MARCH 2015 | 15

16 |MARCH 2015 WWW.KPBJ.COM
BUSINESS OPENINGS
Rural lifestyle retailer opening
Port Orchard store at vacant site
By Tim Kelly
KPBJ editor
For the second time in the last few
months, a national company has announced
plans to expand into Kitsap
County and will move into a large
commercial space that’s been sitting
empty.
Tractor Supply Co., which bills itself
as “the largest rural lifestyle retail
store chain in the United States,”
will open a store in May at the former
site of Saar’s Market Place in
Port Orchard.
A temporary sign along Mile Hill
Drive in Port Orchard notifies
passersby of the Tractor Supply Co.
store that will be opening in May.
The store will go in the vacant
shopping center at the corner of
Mill Hill Drive and Olney Avenue
where Saar’s Market Place was
until its closure last year.
TIM KELLY PHOTO
Based in Brentwood, Tenn., Tractor
Supply has 1,400 stores, including
one in Puyallup. All stores are company-owned,
not franchises.
“As a growth-minded company,
Tractor Supply Co. is always looking
for potential new store locations
that are a good fit as far as the target
market is concerned,” company
spokesman Rob Hoskins said in an
email to the Kitsap Peninsula Business
Journal. “Concerning the location
in Port Orchard, this is especially
true in that the area was attractive
due to the part-time and hobby farmers,
and horse owners in the area.”
The stores carry lawn and garden
supplies, animal care products,
workwear, power tools, riding lawnmowers
and equipment such as welders
and generators.
Hoskins said the Port Orchard
store will have 12 to 17 employees,
and a “soft opening” is tentatively
scheduled for May 9, with a grand
opening a week later.
The 42,000 square-foot building
has been empty since Saar’s closed
last May. It is located at the corner of
Mile Hill Drive and Olney Avenue, in
a mostly empty shopping center that
also includes a long-vacant former
Kmart store.
In Bremerton, a new tenant is moving
in this spring to part of the empty
big-box site on Wheaton Way. Fitness
Evolution announced in December
that it will renovate the building once
occupied by an Albertson’s store for a
new 23,000-square-foot fitness center.
Saar’s still owns the former grocery
store building that Tractor Supply
is leasing in Port Orchard, but
the rest of that center is owned by a
California-based management company
that said it has no prospective
tenants at this time.
WWW.KPBJ.COM
Check it out!
Visit Kitsap Peninsula annual meeting
will review tourism growth, outlook
Visit Kitsap Peninsula will
host its annual meeting on
Thursday, March 12, at the
Best Western Plus Silverdale
Beach Hotel. The event
will present “The Route to
Success & Opportunities”
and review record economic
growth in Kitsap’s tourism
sector, major construction
projects, trends, and opportunities
to collaborate with
regional partners in Olympia
and Pierce and Mason counties. VKP
will also unveil its new website.
The Silverdale Chamber of Commerce
and Central Kitsap Community Council’s
Economic Development/Tourism Committee
will join the VKP to welcome the
newest Kitsap County commissioner, Ed
Wolfe, who represents Central Kitsap District
3. Wolfe will share his vision for the
county and its tourism industry.
Due to the significant increase in tourism-related
construction and major events
in the past several years, the VKP invited
Commissioner Charlotte Garrido to share
details about Kitsap County’s 2035 Comprehensive
Plan. Staff at the Department
of Community Development (DCD) is taking
a pro-active approach
and actively reaching out to
the community and industry
leaders to solicit input
that will shape the region
for the next 20 years.
The previous Kitsap County
comp plan has few references
to Kitsap’s tourism
industry and this is a historic
opportunity for tourism
stakeholders to provide
input. The comp plan update
will impact Kitsap’s tourism industry
today and in the future. DCD has been
working with stakeholders for the past
year and is in the process of integrating
Kitsap’s first agri-tourism program and
policies into the county’s comprehensive
plan.
Other activities at the annual meeting
include a mini-business expo that will feature
displays and information about Kitsap’s
event venues and services. Representatives
from Kitsap County Public Works
will also be on hand to share information
about the Bucklin Hill Bridge Project.
Tickets for the buffet luncheon are
$20 and may be purchased online at
www.VisitKitsap.com/AnnualMeeting.

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MARCH 2015 | 17

18 |MARCH 2015 WWW.KPBJ.COM
julie tappero
There’s a dark cloud on the horizon
that may be threatening your company’s
ability to function. If you’re
like two-thirds of the other companies in
the United States, you are
happily ignoring this dark
cloud and doing nothing to
prepare your business.
What could this awful
impending crisis be? Take
a look at the faces of your
co-workers. Do you see Baby
Boomers? Ten thousand
of them are retiring every day! And
when they do, they take with them a lifetime
of knowledge and soft skills that can
be harder to find in the workforce today.
What’s your company doing to prepare for
their departure?
During the Great Recession, we know
that many Baby Boomers delayed retirement
or even rejoined the workforce to
rebuild their savings. But now that the
economy is recovering, they once again
have some options. As someone who
spends time in workforce development
and economic development, I constantly
hear from employers that younger people
entering the workforce often lack soft
| human resources
Businesses should prepare
for Baby Boomers’ departure
skills, such as teamwork, commitment,
ethics and communication, which mature
workers bring to the table. Before we
let our mature workers walk away, how
do we transfer
it’s beneficial
to retain your
current older
employees
while you
create a
system for
them to
transfer their
knowledge to
your workers.
their technical
knowledge and
soft skills to new
workers?
A great place
for your business
to start is with
AARP’s free online
Workforce
Assessment Tool.
This brief screening
tool allows
you to enter specific
information
about your workforce,
provides
a personalized
analysis of how
retiring workers
will affect your
company, and addresses what skill shortages
you may face.
A study by the Society for Human Resource
Management revealed that the impact
will hit some industries more than
others. Particularly hard hit will be government
agencies, utilities, health care, social
assistance, finance, insurance, real estate,
and organizations that are grantmaking,
civic, religious and professional, etc.
Once you have an idea of the impact your
company is facing, you can take some steps
to prepare.
First of all, it’s beneficial to retain your
current older employees while you create
a system for them to transfer their knowledge
to your workers. In order to do that,
you may need to change some of your
workplace policies.
The Society for Human Resource Management
report revealed some of the key
benefits that attract and retain older workers.
At the top of the list was flexibility in
work location. I know many Washingtonians
who go to Arizona in the winter. Perhaps
if they could take their work with
them, they wouldn’t have retired quite so
soon. Second was career flexibility, such
as reduced responsibilities, and third was
work hour flexibility, such as job sharing or
phased retirement. I kept a bookkeeper on
staff for a couple extra years by reducing
his duties and letting him work from home,
where he could take care of an ill spouse.
In other words, recognizing the older
workers’ changing priorities and bringing
flexibility to the table may help delay the
abrupt loss of a valued employee.
As we all know, when someone does a
job for many years, they end up with institutional
knowledge in their heads, and oftentimes
it’s not written down anywhere.
Now that you’ve retained your older worker,
the next step is to promulgate some
transfer of their knowledge to others in
the workplace.
One way to facilitate this is to create a
formal cross-training program in the business,
making sure that there is more than
one person capable of performing the essential
functions of the job. If your older
worker starts to work a more flexible
schedule, the cross-trained employee can
step in for them periodically to ensure the
person is fully capable in the position.
Pairing an older worker as a mentor to
a younger worker has many advantages
in the workplace. Much has been written
about the challenges of having a multigenerational
workplace. Encouraging baby
boomers to work intimately with millennials
can break down those barriers.
But it has the added advantage of helping
younger workers see soft skills in action
and to learn from their mentor why those
skills have been important in the growth
and success of the mentor’s career. A mentor
is someone who models positive behavior
through trust, so creating mentorships
can effect change and create better
relationships between co-workers.
One note of caution. The Age Discrimination
in Employment Act protects anyone
over the age of 40 against age discrimination.
If you ask a 64-year-old person
what his or her retirement plans are,
and then you take some adverse action
against the person shortly after that, you
may very well find yourself with an age
see boomers | 23

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MARCH 2015 | 19

20 |MARCH 2015 WWW.KPBJ.COM

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MARCH 2015 | 21

22 |MARCH 2015 WWW.KPBJ.COM

WWW.KPBJ.COM
MARCH 2015 | 23
Market: Delivering the goods, or oversold?
meat science from Texas A&M University,
was doing consulting work in the Seattlearea
food industry when he heard about
the planned Port Orchard butcher shop
just over a year ago. Since he was looking
for other opportunities at the time, he
decided to explore one in the community
that was the longtime home of his wife’s
parents.
“We came on out, and I just got presented
the slickest, smoothest opportunity
that there was out there,” Brozovic recalled,
adding with a laugh, “It was truly a
used car salesman at work.”
Ryan started as a car salesman in 1989
at Quisenberry Bay Ford (now Titus Ford)
in Port Orchard, and he’s long run his own
used car lot, currently located on the unpaved
property on Sedgwick Road where
he also lives and rents space to a taco
truck. His other business ventures include
a hair salon, rental properties, and the 110
Lounge in Poulsbo (the 110 in downtown
Port Orchard closed in January, but a revival
may be inthe works.) Another venture
see marKeT | 27
LARRY STEAGALL FILE
Brian Brozovic is shown in February 2014 as he works to get the Bay Street Meat Co. ready
to open in the new Port Orchard Public Market.
Developer of Port Orchard’s much-hyped market
still spins ambitious vision for downtown, but former
partner says he got burned after slick sales pitch
by Tim Kelly
KPbJ editor
Last year began with the enticing prospect
of starting a butcher shop as a family
business in his pregnant wife’s hometown,
and Brian Brozovic went all in. But by December
he was out of the Bay Street Meat
Co. — forced out, he says, by the guy who
first pitched the golden opportunity at the
Port Orchard Public Market. After spending
much of the year working to help get
developer Don Ryan’s hyped market venture
off the ground, Brozovic bottomed out
and wound up going to the local food bank
to get a Christmas basket for his family.
The butcher shop, a seafood vendor and
Ryan’s own Central Dock restaurant and
bar were touted as anchors for the new
market, which opened last spring after
property owner Mansour Samadpour invested
nearly $1 million in the redevelopment
project at a long-vacant site in downtown
Port Orchard.
Although Ryan puts a positive spin on
operations at the market — pointing to
two businesses that have expanded, and
a weekend vendor that plans to become a
full-time tenant — both Bay Street Meat
Co. and Northwest Seafood & Wine are
struggling to survive. The seafood shop,
operated by the owners of Mason County-based
A&K Shellfish Co., has been listed
for sale on commercial real estate websites
and craigslist with an option to take
over the lease.
The market that originally was supposed
to have 20 or more vendors and employ
50 to 60 people has only seven fulltime
vendors, and there aren’t many employees
other than the small business
owners themselves.
Some vendors point to a need for better
marketing for the destination, including
a plea for better support from the property’s
owner, Samadpour, and there are
questions about where the venue fits in
an overall vision for his downtown holdings.
And Ryan, the biggest cheerleader
but also at times a controversial figure in
business dealings on Bay Street, says that
community support will ultimately determine
whether the venture will last.
High hopes in adopted home
Brozovic, a Texas native with a degree in
boomers | from 18
discrimination lawsuit on your hands.
However, you do have the right to ask
all employees what their long-term goals
are with the company. Doing this as part
of their annual performance process, and
hopefully with a good relationship and
communication process, your retirementage
employees will feel free to let you
know their future plans. Then you can
start a succession planning process and
let them know what their own options are.
By working together, offering your employees
the flexibility to phase into their
retirement, and acknowledging their value
to the business by asking them to transfer
their knowledge to others, change will
happen without negative impact on the
organization.
• Julie Tappero is president and owner of
West Sound Workforce, a professional staffing
and recruiting company based in Poulsbo
and Gig Harbor. She can be reached at
julie@westsoundworkforce.com.

24 |MARCH 2015 WWW.KPBJ.COM
federal contracting
| steve shapro
Kitsap home businesses establish
themselves as parts suppliers to Navy
With the Navy presence in our area, it’s not surprising
there are business opportunities for local
firms to furnish supplies and services the Navy
needs to accomplish its mission. It then should come as
no surprise that two local small businesses
were established to supply parts, or that
they were awarded a total of about $9 million
in contracts over the past three years.
What is surprising? They are both homebased
businesses.
Government contracting offices typically
don’t comment publicly regarding the
performance of contractors, but the fact
that these two small businesses have received hundreds
of purchase orders attests to a strong performance record.
A few years ago, Keith and Lydia were looking for an
idea for a home business that would permit Lydia to spend
some time at home and supplement their incomes. They’d
heard from friends — one a retired government buyer, another
who worked with a parts supplier — about the Navy’s
appetite for parts and supplies to support ships and
installations. They established a small business and navigated
through the maze of federal contracting regulations
to establish themselves as parts suppliers.
During the first few months, Keith says they were excited
when they received one or two orders a month. Now,
operating from their East Bremerton home, they fill as
many as 10 to 20 orders per day and had over $1.5 million
in sales to the government during the last fiscal year
alone.
In addition to sourcing parts and supplies for local
ships and installations, including the Puget Sound Naval
Shipyard and Intermediate Maintenance Facility, they also
send parts to Navy activities in Japan and on the island
of Diego Garcia in the Indian Ocean. Along the way,
they’ve expanded their business to include many commercial
customers outside the government.
Keith and Lydia’s company is awarded contracts for a
wide range of parts and supplies, items including filters,
seal rings, gauges, packing, gaskets, hose assemblies,
screws, electronic components, and wire rope that have
applications on ships and in Navy facilities. They don’t
manufacture any of these items or carry an inventory. Instead,
they specialize in sourcing the parts and supplies
from large distributors and equipment manufacturers.
When asked why he thought the Navy went to them
when soliciting quotations, instead of going directly to
large distributors or manufacturers, Keith said he believed
many buyers preferred sourcing parts and supplies
from a small business that was responsive and customer-focused.
“We move more quickly than a large company,” he observed,
“and we make sure the parts get to where they
are needed, on time.”
Keith pointed out that as a home business, they have
low overhead and can remain competitive in their pricing.
He said they are often successful tracking down hard-toidentify
parts for older and obsolescent equipment, some
manufactured by companies no longer in business, before
larger companies are able to respond.
“Buyers are appreciative of prompt and reliable customer
service, so they’ll be more likely to request us to provide
pricing on future Navy requirements,” he said.
Keith also pointed out that since they are a small business,
the government gets credit towards meeting congressionally
mandated small business contracting goals.
Their company makes a conscious effort to keep business
local, in Kitsap County.
“We’ll often source a part to a local distributor even if
the price is a little higher to keep the business local,” he
said. “Sometimes getting the part quickly from the local
distributor is what allows us to be successful meeting our
customers’ demanding delivery dates.”
Across Dye’s Inlet, Steve and Elayne Burton run EHB
Supply from their home in Silverdale. The couple initially
owned a business that developed, marketed and distributed
an extensive inventory of shareware software applications.
In the late 1990s, the spread of Internet connectivity
and online access to software programs threatened
the viability of their business model.
Fortuitously, they were approached by a Navy project
manager seeking a specialized software program for one
of the aircraft carriers in the shipyard. He’d run out of options
and had resorted to calling software firms listed in
the Yellow Pages. While Steve and Elayne were successful
in locating the needed software and sourcing it for the
project manager, their most important lesson was learning
the ropes selling to the Navy and getting paid for their
work.
Fast-forward 16 years to their current business, EHB
Supply. Last year they were awarded $2.6 million in contracts
for selling everything from electrical components
to mechanical hardware to the Defense Department.
Their customer base not only includes local ships, bases
and the shipyard, but also Navy activities in Japan
and Defense Logistics Agency buying offices on the East
Coast.
Elayne pointed out they had some help along the way
figuring out how to work in the complicated federal contracting
system. “We often heard how hard it was to do
overcome the high barriers to entry and how much had
to be learned to do business with the government, but
it can be learned,” she observed. They received invaluable
assistance from a Defense Department-funded office
called the Electronic Commerce Resource Center
(ECRC), which was then housed in Kitsap Economic Development
Alliance’s offices in Bremerton. “They provided
us a great deal of help figuring out the contracting process,”
Elayne said.
While the ECRC no longer exists, a successor organization,
the Washington Procurement Technical Assistance
Center (www.washingtonptac.org), provides assistance
to small businesses seeking government contracting opportunities.
After their initial success and armed with information
from organizations such as the ECRC, Steve began calling
local buying offices. He convinced some of the purchasing
agents to solicit quotes from EHB Supply, especially
for parts that were hard to find. They were successful
in sourcing the items, reliably and consistently getting
them to where they were needed on time. They developed
a strong reputation among buyers as being able to identify
and source the most difficult parts, including ones that
had become obsolescent and non-standard.
“We sometimes get lists of over a hundred parts at a single
time. We research each item and source it to the distributor
or manufacturer who can provide the best price
so we can get the best overall deal for the government,”
Elayne said.
She said the work of being a supplier is often challenging
and the variety makes it interesting. Knowing that
U.S. servicemen and women depend on the parts and supplies,
the work is also rewarding: “We take the job very
seriously and understand that we can’t afford to make a
mistakes because of who we support.”
These two businesses did not become successful overnight.
It took hard work to learn the government contracting
system and the inner workings of the Defense
Department supply system. By being persistent and providing
outstanding customer service, these two Kitsap
small businesses, operating from their homes, successfully
created a niche sourcing parts and supplies for the
Navy and Defense Logistics Agency.
• Steve Shapro is a former Navy Supply Corps Captain,
and after retiring from the service he worked for the Navy
in a civilian role as chief of a regional contracting office
and as the Deputy for Small Business. He recently founded
Seabeck Research, a consulting firm providing information
and analysis to companies interested in government
contracting work. His website is www.seabeckresearch.
com.

WWW.KPBJ.COM
MARCH 2015 | 25

26 |MARCH 2015 WWW.KPBJ.COM
market | from 23
that he hasn’t publicized is G4 Partners,
which he set up in a bid for a license for a
retail marijuana shop. G4 wasn’t selected
in a lottery for allocating licenses to Kitsap
County applicants.
In 2012, the same year he began promoting
and originally hoped to open the
downtown market, Ryan said he was going
to build a microbrewery and restaurant
on his Sedgwick Road property.
“We believe by building this, we’re going
to have quite a venue for keeping people
in our town, and we’re going to have a
destination that will draw people from out
of town,” Ryan said in a Kitsap Sun article
at the time.
The brewery project fizzled because he
couldn’t get financing, but it illustrates
Ryan’s penchant for promoting his ambitious
“destination” ideas. That’s a pitch
Brozovic says he became all too familiar
with.
When Ryan first showed him the downtown
building being renovated for the
market, “it was like, ‘here’s your butcher
shop,’” Brozovic said. The developer laid
out his vision of a “big, booming market”
that would see “60,000 visitors coming
though every summer.”
With the market opening on the horizon,
Ryan needed a quick answer. Brozovic
talked it over with his wife, said yes, and
they sold their home in Fife and moved to
Port Orchard.
“My dream was always to open a butcher
shop,” Brozovic said. Even though he’s
only 32, “That’s what I envisioned for my
retirement.”
Brozovic said he accepted Ryan’s offer
— even though it meant taking a 50 percent
pay cut from his previous job — because
he was told it would include a 9 percent
ownership stake in the Bay Street
Meat Co. That was supposed to increase
to an equal one-third share with Ryan and
his investing partner, Paul Demoret, once
their initial investment was repaid.
Dedication dashed
There was a lot of work to do before Brozovic
sliced any steaks, though.
“They were looking for somebody to
jump in there right then and help finish
this building out, because of how long this
had taken to develop,” he said.
He was working 8 to 10 hours a day at
the market, helping on much more than
the meat shop. “I’m painting floors, I’m
sealing floors, I’m hanging doors — I’m
like one of the contractors,” he said.
He recalled working one weekend after
heaters were installed in the building.
“I was in there all day breathing epoxy
fumes,” he said, because the interior had
to be kept warm enough to seal the concrete
floors, and it was too cold outside to
roll up the front door for venting.
“That’s how dedicated I was to the market,”
Brozovic said. “I did everything I
could to get this market open so I could
get my business going.”
When asked about Brozovic’s involvement
in the market, during a recent interview,
Ryan didn’t want to say much about
Brozovic’s departure. Ryan insisted the
butcher was never a partner in the business.
Brozovic confirmed he never had the
ownership stake offer in writing or any
signed agreement for the promised stake.
“He had the ability to be a partner,” Ryan
said. “He was never, ever an owner, at all.”
Brozovic’s name was not listed on business
registration records with the state,
but numerous articles in the media and
online business listings for Bay Street
Meat Co. at the time referred to him as a
partner, co-owner or co-founder. Brozovic
also noted that he signed the shop’s
lease with the market, as well as the federal
form business owners have to sign to
accept EBT payments (food stamps).
Ryan acknowledged that “we had some
Don Ryan,
developer and
manager of the
Port Orchard
Public Market, is
shown in February
2014 speaking
to the crowd at a
benefit held for the
downtown market
before it opened.
MEEGAN M. REID FILE
financial issues in the
first year of this market,
and we made Brian
an offer to stay on;
he chose not to. So we parted ways.”
Brozovic’s version is that he never received
a slight pay raise he was promised
when the shop opened; that sales during
the summer tourism season were less
than anticipated and then dropped sharply
through the fall; and that the last straw
came in early December, when Ryan told
him his pay would be reduced even though
the business was going to cut two parttime
workers (one of them Ryan’s teenage
son) from the payroll.
Drawing people downtown
In an article last August published in
the Port Orchard Independent newspaper,
Ryan boasted that downtown had
seen “an abundance of increased foot and
shopping traffic” in 2014 because of the
market’s opening. He mentioned a neighboring
business as a prime example.
“Lallie Mae’s — next to the market —
has seen their foot traffic almost triple
this past year because of the sheer volume
of people coming back downtown,” Ryan
was quoted saying at the time.
By year’s end, however, Lallie Mae’s became
a casualty of Ryan’s financial patron
taking over the whole block, even though
the boutique’s owners had been big supporters
of the market project.
“We worked hard there, and we felt we
deserved to be there,” co-owner Jody
Grutzeck said, noting that her shop (now
relocated across Bay Street in a former
restaurant space) was once the only fulltime
business on that block, after Morningside
Bakery closed and before development
of the market began.
“We were the biggest cheerleaders for
(the market),” she said. “For like two years
we told everybody — I mean everybody, to
come back, because Don Ryan, he’s awesome,
he’s doing this …
“Little did we know that within a year
after it opened, we would be booted out.”
Ryan disputes that too, saying that after
Samadpour purchased the building, the
shop owners chose not to accept a new
lease they were offered — a more expensive
“triple net lease,” in which the tenant
pays property taxes, insurance, and maintenance
and repair costs for the building.
“She was given every opportunity to
stay,” Ryan said.
Grutzeck said Samadpour’s planned remodeling
for the building would have required
them to move out within six months

WWW.KPBJ.COM
MARCH 2015 | 27
anyway. But she did agree that the market
was bringing more people downtown.
“And you know what? I really felt that we
helped the market, because we were established
there, and the bakery too,” she said,
referring to a new bakery that opened in
the former Morningside building (also
owned by Samadpour) a few months before
the market did last year. “The bakery
brings a lot of people down too.”
Asked if the space Lallie Mae’s vacated
next to the market could be where his 110
Lounge reopens in the future, Ryan would
only say that he’s working on “some new
branding ideas” for the bar and that “we
may have the opportunity to bring the
110 back to Port Orchard. And we’re also
looking at other options; it’s still for sale.”
Who’s marketing the market?
Brozovic said there were some good
business days for the new market during
the summer, especially days the Port Orchard
farmers market was set up nearby
on the waterfront. But when things slowed
way down after summer, the shared frustration
of the tenants was a lack of marketing
for the whole operation, and their
unfulfilled expectation that their landlord
should spend some money on that.
“We started noticing that this was not
what we had been sold on,” he said. “Now
we need to be having people walking
through the door … because it’s past summertime,
and things are going downhill
and going downhill quick.”
Brozovic said he went to Ryan and
asked why Samadpour wouldn’t want to
do some marketing — not for individual
businesses, but to promote the overall
place as a destination, similar to advertising
that a mall would do.
Ryan said Samadpour wants to see the
market succeed, but that business owners
people in business
Annie
Fitzpatrick
puts cheeses in
a display cooler
at Northwest
Seafood &
Wine. She and
her husband
own the shop
in the Port
Orchard Public
Market, but
they have their
business listed
for sale.
MEEGAN M. REID
typically pay for their own advertising. He
did point to one television commercial for
the market that he said aired on Wave Cable
stations recently.
Ryan has asked others for help, however.
In October he approached Visit Kitsap
Peninsula, the organization that does
tourism marketing and promotion for the
entire region, asking for something to give
the market a boost. That could be interpreted
as ironic, because the Visit Kitsap
budget is provided by a portion of lodging
tax revenue from each city in the county.
Port Orchard is one of the cities that’s reduced
the allocation of those taxes it sends
to Visit Kitsap in recent years. Ryan influenced
that decision by pushing for the city
to spend a chunk of lodging tax funds to
help Kitsap Transit run passenger ferries
on weekend evenings between Port Orchard
and Bremerton. Also, the Port Orchard
Bay Street Association (POBSA), of
which Ryan was president until the end of
2014, gets a larger share of the city’s lodging
tax money than Visit Kitsap does.
Still, the market developer is also critical
of what he perceives as a lack of promotion
for city tourism in general.
“In my opinion, the real responsibility
lies on the city of Port Orchard to
start promoting its own town,” he said.
“The city of Port Orchard, in my opinion,
doesn’t promote its own tourism.”
Ryan was ecstatic about a recent article
describing Port Orchard’s food scene,
including the new market, in the online
magazine realfoodtraveler.com. The piece
was written by a Portland-based travel
writer who was invited and toured the area
last September as a guest of Visit Kitsap
Peninsula.
Ryan regards himself as someone making
a difference in his community. “I have
spent three years as president of POBSA,
in total dedicated volunteer work for this
town, I will say that,” he said. “And what
has come out of that I think is positive.”
He’s also a businessman who ordered
100 poinsettias (but later canceled half
his order) from South Kitsap Helpline’s
nursery, at a price of $6.50 each, then sold
them during the holidays for $9.99 in the
market with a sign that said the proceeds
benefitted Helpline’s food bank.
That’s the food bank that helped Brozovic’s
family at Christmas.
Vision for property unknown
Samadpour’s lack of direct involvement
in the market — the owner directs
all questions through Ryan — raises the
question about the vision for downtown.
Samadpour is a renowned microbiologist
who owns IEH Laboratories and Consulting
Group, a global company based in
the Seattle area. Abadan Holdings LLC is
the company that manages his Port Orchard
properties that include much of
downtown. He invested $1 million in the
market property, but Brozovic said he
doubts whether the owner cares about the
market’s success, given the hints that major
redevelopment is a long-range goal.
“What his grander scheme of things is,
the market’s going to have to be torn down
anyway,” Brozovic said, pointing to Samadpour’s
other holdings on Bay Street,
from the boarded-up Myhre’s building to
the Port Orchard Pavilion.
Ryan denied that Samadpour — who he
describes as a generous person — is uninterested
in the market’s success. He
did confirm that Samadpour’s long-term
plans include condos on Bay Street, which
he acknowledged could mean “rebuilding
these buildings.” Samadpour declined to
comment, referring all questions to Ryan.
“Yes, he would like to see an adult-living
condominium center down here,” Ryan
said. “But it takes six, seven, eight stories
to do that.”
Two City Council members in Port Orchard
said neither Ryan nor anyone else
associated with Samadpour’s operation
has ever asked the council to consider a
see market | 37
letters to the editor
Business consultant completes Certified
Exit Planning credential
Soundpoint Consulting founder and president
Kelly Deis has completed the process to earn
the Certified Exit Planning Advisor (CEPA)
credential from the Exit Planning Institute.
Soundpoint’s current offerings
include business valuations and
value-driven strategy and operations
consulting services for
privately held companies in the
Puget Sound region. With the
CEPA designation, services will
expand to more fully assist owners
to grow, preserve and transition
business wealth during an
ownership transition.
Kelly Deis
The CEPA program includes a five-day executive-style
MBA program at the University of
Chicago Booth School of Business.
Deis also is a Certified Valuation Analyst
(CVA) through the National Association of Certified
Valuators and Analysts, and holds an
MBA from The Wharton School of the University
of Pennsylvania and a bachelor’s in mechanical
engineering from Duke University.
For more information about Soundpoint Consulting,
contact Deis at 206-842-4922 or kelly@soundpointbusinessconsulting.com,
or visit
www.soundpointbusinessconsulting.com.
Stafford Suites in Port Orchard hires
outreach coordinator
Konnie
Strom
Stafford Suites of Port Orchard has added
Konnie Strom to its staff as community outreach
coordinator for the assisted-living center.
Strom, who has a master’s
in social gerontology, moved
to Kitsap in 2013 from Independence,
Missouri, where she
worked in assisted living and
long-term care for 18 years.
She is looking forward to being
active in the South Kitsap
community and representing
Stafford Suites, and providing
an additional resource for seniors and their
families. Strom is currently enrolled in the
Leadership Kitsap class of 2015.
For more information on Stafford Suites or to
schedule a tour, call 360-874-1212.
Why rezone historic
Gig Harbor neighborhood
for restaurants?
During the public hearing on Monday
(Feb. 23), a petition of Waterfront
Millville residents and map of
signatures was presented.
Five residents of Waterfront Millville
were in favor of Mr. Stearns’
private request zoning amendment.
Folks were concerned about horrific
traffic, noise and no parking. These
restaurants would be open from 6
a.m. to 11 p.m., in addition to setup,
closing and delivery times. Millville
is a neighborhood of families, no
sidewalks, kids playing in the street
with little ‘kids at play’ signs.
The only folks who spoke in favor
of more restaurants were folks who
did not live in Waterfront Millville,
whose homes and family life were
not going to be affected.
Do you believe you have the right
to determine your neighborhood, especially
if it is a change to what you
have now?
Only two blocks, on the other side
of Skansie Park, all these restaurants
would be allowed without any
special zoning requirements? Fastfood
restaurants, restaurants with
full bar, open extended hours are already
allowed, just two blocks away.
Why is there no conversation about
putting these vitality producing restaurants
in waterfront commercial
that could use a little vitality and
parking is already available?
Isn’t a better solution putting these
restaurants in an area permitted for
them before making an “experiment”
in the “soul” of Gig Harbor’s historic
neighborhood?
Why is the only area under consideration
this historic, residential
neighborhood?
Why is any one person more important
than our entire community?
Why?
— Jeni Woock, Citizens for
the Preservation of Gig Harbor

28 |MARCH 2015 WWW.KPBJ.COM
Business name change reflects shift to add IT service
Olympic Technology Resources
built its business providing
remanufactured printer cartridges
By Tim Kelly
KPBJ editor
In the ever-shifting landscape of new technologies, Jeff
Petersen’s business is adapting because customers are
doing less printing.
At the same time, those customers are relying more
and more on technology in their business operations,
and that’s why Olympic Printer Resources — which supplies
remanufactured printer cartridges as a cost-saving
option for its customers — changed its name in 2015 to
Olympic Technology Resources.
“We have added services to support all of our client’s office
technology needs,” Petersen said. “We have hired experienced
staff to provide expert business information
technology (IT) services.”
Those include computer maintenance and repair, installation
of software and network security systems,
cloud migration, network setup and administration (including
wireless solutions), remote system monitoring
and more.
“For 20-plus years, the hallmark of our business has
been remanufacturing cartridges,” Petersen said during
a recent interview at Olympic’s office and small warehouse,
located in Arbor Business Park off Bond Road between
Kingston and Poulsbo.
The company still sells about 600-800 rebuilt toner cartridges
a month and provides printer service and repairs,
and the appeal of their products hasn’t changed. The remanufactured
cartridges provide “the same quality, the
LARRY STEAGALL PHOTO
From left: Gary Welch, office solutions advisor, Jeff Petersen, company president, and
Erik Petersen, VP of operations, at the warehouse of Olympic Technology Resources
in Kingston, which was formerly Olmpic Printer Resources. The company’s new name
reflects the IT services it offers now, in addition to remanufactured printer cartridges
that have been its primary product since the business started two decades ago.
BusIness BrIefs
same output and are 20 to
50 percent cheaper than a
brand new one,” he said.
The operation’s environmental
focus is intact as
well. Petersen said it takes
three quarts of oil to manufacture
a new printer cartridge,
and he said Olympic
kept 56 tons of cartridges
from going to landfills in
2013.
The challenge to Olympic’s
business model is simply
that customers aren’t
needing replacement cartridges
as frequently.
“The problem is people
are printing less; on average
it’s 8 percent a year,”
he said. “Nowadays everything
is scanned and
emailed.”
Many kinds of documents
that once had to be provided
in paper form — everything
from bank statements
to real estate documents
to HIPAA privacy
forms at medical offices
— now are routinely processed
in electronic records systems.
It’s not that Petersen, who bought a stake in the business
see name change | 34
Transportation issues will be topic
at Kitsap Business Forum
At the next Kitsap Business Forum on March 10, the topic
for discussion will be “Planes Trains & Automobiles —
We are in all in the in the Transportation Business.”
Kitsap is not known for its efficient and cost-effective
transportation. Bottlenecks, rising tolls, and congested
ferry services makes it difficult for any business to
get their products and services to customers in Kitsap
and beyond. The West Sound Alliance, a collaboration of
government, business and civic leaders, has taken these
challenges head-on. This year, a comprehensive plan is in
Olympia to alleviate the transportation stress on Kitsap
— and significant action is expected this year.
John Powers, executive director of Kitsap Economic
Development, will facilitate a panel discussion at the forum
on the area’s transportation issues. Elected officials
and community leaders from the West Sound Alliance
will discuss these issues:
• Growth that’s increasing the need for improvements
• Key road and bridge improvements, including tolls
• Ferry and other public transportation improvements
• $470 million in proposed improvements and their prioritization
The Kitsap Business Forum events are free, and those
planning to attend are asked to RSVP at KitsapBusiness-
Forum.com. The forum will be held from 7:30-9 a.m. in
the third-floor meeting room at Kitsap Conference Center
in Bremerton. Parking is free for the event.
Brown Bear closing Chevrons on SR 305
Drivers will have two fewer fuel options along State
Route 305 this spring.
Brown Bear Car Wash of Seattle plans to shut down two
Chevron stations on the highway in the next six weeks.
Its location off Hostmark Street in Poulsbo was scheduled
to close Feb. 26. The Chevron off Hildebrand Lane
on Bainbridge Island will close March 31, according to
Brown Bear regional manager Larae Giuseffi.
Giuseffi declined to discuss the reason behind the closures.
Brown Bear also owns a station at Highway 305 and High
School Road, across the street from its Hildebrand location.
Giuseffi said the company will keep that station open.
The closure of Brown Bear’s Hildebrand location will
leave Bainbridge with two gas stations (a 76 station operates
in Island Center).
Fuel stations on the island and in Poulsbo compete with
tribal-owned stations in Suquamish, which work under a
different taxing agreement than private sellers and can
generally offer cheaper prices.
A Safeway store and gas station opened near Highway
305 and Lincoln Road last June, adding 10 pumps to the
thoroughfare.

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30 |MARCH 2015 WWW.KPBJ.COM

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32 |MARCH 2015 WWW.KPBJ.COM
technology | charles keating
Net neutrality debate part of
new evolution of the Internet
Since last May when I covered this topic,
much has transpired. On its face,
net neutrality is about whether carriers
can prioritize traffic or charge premiums
for faster service, but
it’s also about competition
in broadband and the future
of the Internet.
The most recent dustup
came when cable firms,
which operate most of the
broadband connections
to end users, wanted to
charge video providers for “excess” bandwidth.
End users already pay for Internet
connections, usually at a fixed price with
terms of service assuming most of the
time the pipes are not fully utilized. As
more people stream video and use cloud
services, total bandwidth needs are increasing
and providers wanted to recoup
costs to upgrade their networks to handle
the digital traffic jams.
The prospect of paying extra for fast Internet
lanes — controlled by a few firms
and presumably affordable only to established
major providers — was anathema
to the vast majority of users and raised
the specter of a slippery slope. Which services
would be prioritized or discriminated
against? The FCC accepted the practice
in principle on a case-by-case basis
and held out the consideration of regulating
Internet services under Title II of the
Telecommunications Act if abuses were
perceived. That decision was up for ruling
on Feb. 28, so by the time you read this
we will be likely be moving into new waters.
The issue matters not just to providers
and carriers, but also to entrepreneurs
creating new cloud products, governments,
open Internet advocates and
everyone between.
The history of our telecommunications
networks, the Internet and how things
have evolved provides background on
how this came to be. Prior to the breakup
of AT&T (or Ma Bell), there was only one
provider of telecommunications services
in the U.S. You rented your phone and
calling was expensive, especially long-distance
and even more for overseas. Taxes
were a source of revenue for governments,
and fees such as the universal service fund
(USF) were used to extend this network
to rural users. With development of fiber
optics in the 1970s, new networks were developed
that could carry vast quantities of
all types data.
While the United States undeniably had
the best analog communications network
in the world, over time countries starting
with later-generation technologies would
leapfrog ahead. Greater innovation and
competition were needed, and the breakup
of the phone monopoly spun off hundreds
of companies offering competition
in services, often over the same legacy
connections to end users. It was messy
but it worked and prices fell. At the same
time cable TV, mobile and satellite networks
developed and then early Internet
came to households via dial-up modems.
As non-critical “information services,”
cable TV and Internet were deemed less
critical infrastructure than the regulated
phone services that connected users to
9-1-1. The efficient, packet-switched Internet
quickly grew and as millions of users
went online, it quickly morphed into the
common universal network. Regulators
could have changed the classification of
the Internet then to reflect its growing importance,
but not wanting to cause harm
or add taxes to this new, rapidly innovating
market, regulators deliberately took a
wait-and-see approach. Broadband, once
defined as 200Kbps when most users were
on dial-up modems, was in January updated
to 25 Mbps downstream and 4 Mbps
upstream bandwidth. The new standard
reflects growing uses, and while nearly 80
percent of homes can receive this level of
service, a significant portion cannot and
more importantly, most have only a single
Internet provider choice at this speed and
therefore lack true competition.
Worldwide the importance of broadband
is recognized, and other countries
have approached broadband with national
goals to lower costs and promote deployment.
There have been many approaches;
some leverage competition and
many have provided faster speeds at lower
prices. Partly this is due to our having
a legacy infrastructure that served us well
for many years, but the future is a combination
of fiber and high-capacity wireless
and mobile networks.
Given the nearly universal reliance on
the Internet, its current classification as a
non-essential information service is truly
at odds with its current application. The
reclassification seems likely and would
be on par with regulation in other countries.
Like analog TV signals before them,
the legacy last-mile network is being supplanted
by cable and fiber networks, and
regulations preserving the remnants of
the old network need to be replaced. Already
40 percent of homes have already
dropped their legacy landline phones in
favor of VoIP services or mobile phones.
Similarly, more “cord-cutting” users are
dropping cable and satellite TV packages
in favor of unbundled Internet or relying
on mobile connections, with the effect
of driving cable companies to seek consolidation
to negotiate with content providers,
raising monopoly concerns over the
last-mile connections.
As online cloud-only networks grow and
compete with the established networks,
and the Internet of things moves from
concept to reality, all these innovations require
low-cost, reliable and secure broadband
access to end users. Reclassification
does not necessarily mean taxes will immediately
soar and innovation die, but it
is likely regulators want to move forward
with a light touch and will seek ways to
promote competition. We are ready to enter
a new evolution of the Internet.
• Charles Keating is president of Keating
Consulting Service, Inc. (www.kcsco.com),
an IT consulting firm serving global clients
since 1983. He is also a partner in K2
Strategic Solutions (www.k2strategic.com)
and Professional Options (www.professionaloptions.com),
and current president
and co-founding member of West Sound
Technology Association (www.westsoundtechnology.org).
PeoPle in business
Kitsap Bank picks two
for employee awards
Kitsap Bank announced that Marni
White, branch manager at the Pioneer
Way branch in Gig Harbor, has been
named the bank’s 2014 Volunteer
of the Year.
Volunteering nearly 250
hours throughout the year,
White is committed to
making a difference in the
community.
Marni White
Jackie Smith
She joined Kitsap Bank
in 2011 and has been the Pioneer
branch manager since December
2013. She is an active member in the Rotary
Club of Gig Harbor-North and The Gig
Harbor Chamber, along with helping out
with numerous fundraising events and activities.
“Marni has done a tremendous job giving
back,” Kitsap Bank CEO Steve Politakis
said. “Her dedication, commitment
and capacity to contribute not only makes
Marni a great asset to Kitsap Bank, but
also to her community.”
Kitsap Bank also named Jackie Smith,
who works at the South Park Village
Branch in Port Orchard, as named Employee
of the Quarter for
the fourth quarter of 2014.
Smith joined Kitsap
Bank in March 2011 as a
client service representative
at the West Bremerton
Branch, and was promoted
last year to her current
position as a financial service
specialist. She was selected for this
award for her leadership example in representing
Kitsap Bank at bank-sponsored
events, her contributions to the Social Media
committee, and for going above and
beyond in assisting her clients and supporting
her co-workers.

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34 |MARCH 2015 WWW.KPBJ.COM
business openings
Hudson Motors expanding onto more of Poulsbo site
By Tim Kelly
KPBJ editor
More pieces are fitting into
place at the former Courtesy
Auto Group site on Poulsbo’s
Viking Avenue.
Hudson Motors is expanding
its used car lot that opened
last year when owner Darren
Hudson bought an acre on the
south end of the property for
his business, which also includes
two lots in Bremerton.
The Morgan family that
owns American Building and
Roofing recently purchased
the last available section of
the Viking Avenue complex, a
3.4-acre parcel that includes
the 40,000-square-foot building
that was Courtesy Ford’s showroom
and service building.
Hudson Motors is leasing
about half the showroom/service
building and part of the lot
adjacent to its current space.
That will allow the business to
start offering auto repair and
maintenance service, something
it has not had the space
for at its Bremerton or Poulsbo
locations.
“It’ll take us a few months to
get that part going,” Darren
Hudson said, because they’ll
have to bring in all the needed
equipment for the service
bays.
“It’s a big jump, but it makes sense to
do it,” he added. “It’ll be good for us, and
good for the community.”
Hudson said he’ll hire a service manager
and several technicians to launch the service
operation.
The sales side in Poulsbo will expand
right away.
“We want to have the new sales office
open and cars on the upper lot by March
1,” he said, and he’s hired a general sales
manager, a position he’s always handled
himself.
Hudson already has moved all the cars
Hudson Auto Center opened a lot
in Poulsbo (above) last year on part
of the former Courtesy Auto Group
site on Viking Avenue. Owner
Darren Hudson is expanding
his operation onto the upper lot
and will take over part of the
former Courtesy showroom (left)
and service facility. Hudson is
leasing the additional space from
American Building & Roofing,
which recently bought the 3.4-acre
parcel that includes the buildings.
ABR plans to move its wholesale
building supplies business to the
site later this year.
from his Callow
Avenue lot in Bremerton to the larger
Poulsbo site, but he said his other
Bremerton lot on Loxie Eagans Boulevard
will continue to operate.
Hudson plans to repurpose
the empty Callow site eventually,
by building up an inventory
there of trade-in vehicles
they get that are older and less
expensive than the range of
used cars at the Poulsbo lot.
Another part of the expansion
will be adding RVs and
travel trailers, a market segment
that Hudson said is picking
up again as the recovery
from the recession continues.
American Building and Roofing,
a building supplies wholesaler
with seven Washington
stores, will move its Poulsbo
operation to the former car
dealership site over the next
few months. Property manager
Dave Pruitte said ABR will use
the back section of the main
building for warehouse space
and will store additional roofing
and building materials on
the back of the lot.
Pruitte said that still leaves
approximately 15,000 square
feet of space that will be leased
in the building.
“We’re in the process of talking
to a number of potential
tenants right now, and we
hope to have that done in the
next two or three weeks,” he
said.
He said a hair salon is interested
in the main floor space,
and that the upstairs spaces are suitable
for medical or professional offices. Anyone
interested in leasing information
should call Pruitte at 360-710-7996.
name change | from 28
in 1999, didn’t see this coming. When he
bought out company founder Pete DeBoer
a couple years ago, he brought in another
partner who did IT work.
“We decided we needed to go back and
really diversify more,” Petersen said. “The
printer now is a computer. So it seems like
(expanding into IT services) was a natural
extension of what we were doing.”
Olympic began offering a “Flex IT” program,
an option that allows businesses
to pay for a set number of hours of computer
service each month, which can be
used when needed. That gives customers
the flexibility of utilizing whatever kind of
service they need, Petersen said, whether
it’s computer repairs or system upgrades.
While the standard charge for regular
computer work is $75 an hour, on the Flex
IT plan it’s $55, and $50 for customers who
sign up for autopay.
“We’re also hoping that by switching to
providing IT services, we’ll get more customers
that need printer cartridges,” Petersen
said.
The company also has resumed the service
of picking up electronic waste for recycling.
“There are numerous electronic items
that are not covered by the Washington
State free E-Cycle program,” said Erik
Petersen, Jeff’s son who is vice president
of operations at Olympic Technology Resources.
The company charges a nominal fee for
picking up these items for processing.
“We are firm in our commitment to being
a green sustainable business,” Erik
Petersen said.

WWW.KPBJ.COM
MARCH 2015 | 35

36 |MARCH 2015 WWW.KPBJ.COM
business strategy
Cheeseburgers get a
bum rap in my estimation.
They are
easily viewed as being
common, ordinary, or one
shade. Too
many people
have a
frame of
reference of
a thin patty
with a feeble
excuse
for cheese
pressed between two pale,
uninteresting buns. No
foreplay here.
I can still hear the late
John Belushi screaming
out “Cheeseburger,
cheeseburger, cheeseburger
... Pepsi no Coke,” on the
famous “Saturday Night
Live” skit of the 1970s. I
would argue that there
are more shades of cheeseburgers
than meet the eye.
There may be some that
will titillate your senses.
If you venture outside
of a fast-food joint, you
may just be blissfully surprised.
Cheeseburgers can
be unique based on the
cheese. The 99-cent option
at the drive-thru window
is undoubtedly offering
some faux cheese “product.”
I’ve dined at many a
restaurant (some pretty
hole-in-the-wall hangouts)
where the cheese is cool
and classy — be it bleu,
Muenster, cheddar, Swiss,
| dan weedin
Fifty shades of cheeseburgers
or my personal favorite,
pepperjack.
The buns are always important
(just as in the
movie I am parodying,
I’m sure). Instead of some
flimsy white processed
bread that probably came
out of a plastic wrapper,
consider your delight in
nibbling on a Kaiser, sourdough,
multi-grain, artisan
roll, or even glutenfree!
Heck, I even add some
bourbon and honey to my
cheeseburgers to pump up
the taste. Alcohol always
helps in setting the mood,
don’t you think?
Hungry yet?
Here’s the deal. Cheeseburgers
can seem ordinary
and uninspiring to people
unless they are dressed up
a little bit. So can you and
your business. If you don’t
dress up your value to others
(be it for individuals
or companies), then you’ll
be as unappealing as that
fast-food cheeseburger for
99 cents.
Here’s how you add some
pizzazz to your brand and
business…
Become an object of interest
by being well read
and well versed in the issues
surrounding business.
That means reading
the national and local papers
for insight into what’s
happening in the world.
You don’t need to be an expert,
but you do need to be
conversational. The more
you know about the world
you live in and how it affects
others (namely your
clients and potential clients),
the more attractive
you will be to them.
Improve your vocabulary
and delivery of your
message to incite emotion,
rather than logic. Emotion
makes people move and
take action; logic merely
makes people think.
Thinking can often lead to
wasted time and opportunity.
Being influential in
the end is good for your
clients and good for you.
You are influential when
you can deliver an honest,
straightforward and value-laden
message in your
marketing and personal
communication. For a second
consider movie titles.
How important are they
to even get you to read the
review or watch the trailer?
How enticing are your
“titles?”
Develop singular and exclusive
intellectual property
that jumps out at people
like a sizzling bacon
cheeseburger coming off
the grill. Intellectual property
is the manifestation of
your expertise, experience,
opinions and smarts. It’s
delivered through books,
columns, articles, speeches,
webinars, workshops,
podcasts, videos and visual
processes scribbled on
the back of cocktail napkins.
The more of an intellectual
property empire
you build, the more alluring
you become.
Get away from your computer
and interact with
people. You will learn how
to best help them and that
will make you valuable.
I’ve observed that an increasing
number of business
leaders and professionals
are defaulting to
technology, rather than
“old school” face-to-face
communications. People
are hired, fired, promoted,
prospected and communicated
with through text
and email. While these
platforms have their uses,
they should be more about
information, not relationships.
If you want to stand
out in a crowd, maybe you
should get up on the shoulders
of the masses so you
can be seen.
Final thought: Not only
does straying from looking
and tasting like an ordinary
cheeseburger work
for your individual success,
it also helps you recruit
and hire interesting
and talented people.
That’s similar to adding a
little bourbon and honey
to your cheeseburger mix
... it keeps everyone coming
back for more. Talented
people have more opportunities
than ever before
to seek jobs and careers
that interest and
inspire them. Plain old
cheeseburger companies
might be like working at
the drive-thru window
when the skill sets more
mirror the boardroom.
Get that burger out of its
dingy little cardboard box
and onto a snazzy colored
dish with steak fries on the
side. The more compelling
you are to smart people,
the more smart people you
will bring in to your organization
and that always is
a recipe for prosperity.
Why don’t you try adding
a few shades to your
business and your burgers?
Start slow, but start.
Stop worrying about what
others might think because
waiting will lose you
time and opportunity like
was stated earlier. The results
you gain may just be
highly stimulating!
• Dan Weedin is a strategist,
speaker, author and
executive coach. He helps
business leaders and executives
to become stronger
leaders, grow their
businesses, and enrich
their lives. You can reach
him at 360-697-1058; e-
mail at dan@danweedin.
com or visit his website at
www.DanWeedin.com.
Museums, local cultural
organizations in need
letter to the editor
To the Editor:
What does it take to make a strong
community? And how can you help
make a difference?
Did you know that communities
with vibrant cultural organizations
are more competitive for high-paying
jobs and high-quality workers, and
enjoy greater economic prosperity?
Kitsap is hopefully poised on the
verge of emerging out of the economic
doldrums. Hopefully that improved
prosperity will include our
cultural organizations as well.
Studies have shown that students
who are engaged in cultural activities
excel in school and are more
comfortable working in diverse communities.
Science, heritage and arts
experiences help advance education
and enhance the economy, as well as
enrich our quality of life.
Yet here in Bremerton we are faced
with a serious dilemma of having
a number of important cultural resources
such as the Puget Sound Naval
Shipyard Museum, the Kitsap
Historical Society Museum, the Valentinetti
Puppet Museum, the theater
and music organizations and
others that are struggling to pay
their expenses and rent. These organizations
are important to the business,
cultural and educational life of
the entire county and West Sound,
not just the city of Bremerton.
Little public attention has been paid
to the fact that Bremerton has a huge
low-income population, unlike the
rest of the county. This is especially
noticeable in the statistics of the free
and reduced-fee meal program in the
Bremerton School District, where approximately
65 percent participate in
the program. Some individual schools
reach as high as 80 percent.
Are we to assume that Bremerton
school children and families are not
worthy of having access to these facilities
and that these facilities are
therefore expendable to the overall
economic and cultural future of the
county? I would hope not. Hopefully
there are civic-minded individuals
and organizations that are willing to
lend their support and expertise to
ensure their futures as an important
part of Kitsap’s vision.
—Stanley W. Hess, museum curator
Valentinetti Puppet Museum,
Bremerton

WWW.KPBJ.COM
regional economy | john powers
Confluence of attributes creates economic future
From the strategic confluence of four
primary community attributes (population,
land use, transportation and commerce)
springs a community’s
economic future.
Last October I wrote
about how communities
across Kitsap are in the
process of shaping Kitsap’s
economic future as
they update their longrange
comprehensive plans
(www.kitsapsun.com/kpbj/areas-compplan-udates).
I talked about the purpose
of community comprehensive planning in
order to anticipate and effectively manage
growth; and, how to assess, align and
aim community resources at a targeted
future.
I also shared my perspective on the importance
of garnering meaningful input
from all the various community stakeholders;
in particular, the business community
as ongoing investors in our collective
economic future. Over the past six
months, a great deal has already occurred
in the process of updating our comprehensive
plans, and much more will follow
in the next fifteen.
Last fall our Alliance provided market
data regarding our local economy at a series
of town-hall meetings hosted by the
county throughout Kitsap. In October our
Decision Makers II event focused on the
economic development aspects of projected
growth in the unincorporated urban
growth area of Silverdale. At our December
board meeting in Port Orchard, we
MARCH 2015 | 37
captured valuable input from many of the
largest private-sector employers in Kitsap
as to their future needs involving transportation,
infrastructure, workforce, zoning
and building permits, and maintaining
an overall vibrant business climate.
And, at our Alliance’s annual economic
forecast conference in January, we conducted
a web-based “instant survey” in
which scores of attendees provided direct
and instantaneous input on a variety of
questions pertaining to planning for Kitsap’s
economic future.
This survey yielded some predictable
and not-so-predictable responses. The
majority of respondents deemed the overall
business climate in Kitsap as average
to good (less than 5 percent ranked it as
poor). Most employers anticipated growing
and hiring more FTE’s this year —
matching the overall perception that Kitsap’s
economy is growing. And when it
came to identifying priorities in advancing
business opportunities, one out of
three identified “skilled workforce” as
their top priority.
On the not-so-predictable inputs, the following
selections surprised many as they
gleaned the immediate inputs: technology
see future | 38
market | from 27
zoning change that would allow buildings
of that height along Bay Street.
“What he really wants to see,” Ryan
said, “is he wants the market to succeed,
he wants the retail to succeed — he wants
the first one to two levels of every building
to be retail. And maybe a level of professional
(offices), and the rest of them
adult-living condos.
“People who want to be in a downtown
core, who want to be near the marinas,
who want to have views, and have the
money to do it. And those are the people
who are going to support the market.”
Will the market make it?
Brozovic said he suggested ways to generate
more sales at Bay Street Meat Co.,
such as adding a smoker at the shop, doing
barbecue outside in the vacant lot
next to the market and setting up an offsite
game processing operation. But nothing
came of the ideas.
Ryan said city codes won’t allow a smoker
in the market, though he recently spent
almost $10,000 on “a custom-built smoker/
rotisserie/grill, on a custom-made trailer,”
which will be used off-site since there’s
currently not space for it at the market.
It could be used as part of Hogfest, a barbecue
cook-off that Ryan envisions as a
countywide event and a big promotion for
the market in 2015.
Weekend special events held in recent
months to draw people to the market have
been organized by Katie King, who’s part
of the family-run seafood business. One
event was a chowder cook-off that Northwest
Seafood & Wine planned to host in
February, but it was canceled.
The seafood shop owners would not
comment on the status of their business
or whether they plan to stay at the market,
but some of the smaller vendors remain
optimistic that the market can thrive.
Though he’s no longer part of it, Brozovic
hopes that will happen.
“I wish them all the success,” he said.
“I would love to see that market actually
make it.”
As for Ryan, he remains enthused about
the market venture, and prospects for future
development downtown. Ryan said
after the recent news of Tommy C’s having
to move out of its site off Bethel Road,
he talked to owner Tommy Cash about relocating
his restaurant and bar into the
Myhre’s building.
That wasn’t feasible, but Ryan said he
and Samadpour are looking for a tenant
there and plan to improve the building’s
exterior appearance. That includes connecting
the roof of Myhre’s to the market
building to cover the vacant lot in between,
which Ryan said could allow for a
possible expansion of the market.
“The thing is, what I will give Don, he
is a dreamer,” Brozovic said. “And he is a
guy that can look at something and go …
what can I do here?”
Brozovic is back on his feet again, and
has returned to doing consulting work.
He’s actually working on a project being
built in Everett, a six-story apartment/retail/farmers
market development called
Potala Market Place that’s similar to what
Samadpour would like to develop in Port
Orchard.
The future in Port Orchard may or may
not include condo developments that
change the physical landscape. It’s unknown
whether Ryan can recruit other
small businesses to fill the current market
vacancies. And the question remains
on whether a marketing effort to attract
wider interest can be implemented as
the market’s second tourist season draws
near.
But according to Ryan, ever the pitchman
for business ideas, the viability for
his project beyond its challenging first
year depends on community support.
“If the local community doesn’t feel like
this is a good enough attraction for them
to come to, “ Ryan said, “we’re not going
to get enough support to keep it alive.”

38 |MARCH 2015 WWW.KPBJ.COM
car review
By Lary Coppola
For KPBJ
| 2015 fOrD fusiOn
Sedan’s Titanium version
offers midsize luxury,
European-inspired design
FUTUre | From 37
The 2015 Ford Fusion, like everything
else in this market segment,
is your basic five-passenger, fourdoor
midsize sedan. And just as the jelly
bean-shaped Ford Taurus redefined basic
sedan design upon its debut in 1985,
the Ford Fusion has redefined the modern
midsize family sedan.
Debuting in 2005 as a 2006 model, the
Fusion was restyled for the 2010 model
year and again for 2013. Except for the inevitable
evolutionary upgrades, the 2015
Fusion remains relatively unchanged,
while offering attractive styling, a variety
of sophisticated electronic audio and communication
choices, and a sporty character
more often associated with German
sport sedans than Detroit iron.
We had the opportunity to drive the topof-the-line,
all-wheel-drive 2015 Titanium
model of this attractive sedan while on
a recent jaunt to South Florida. While the
Fusion’s eye-pleasing sleek lines and wide
range of available powertrains — including
gas, hybrid, and plug-in — make it appealing
to a variety of buyers, this review will
focus primarily on the Titanium version.
Walkaround: The exterior of the 2015
Fusion is basically unchanged, but is still
very striking, combining German-type
luxury styling with wraparound headlights
and aggressive front-end design cues obviously
influenced by Aston Martin — which
was once part of Ford. While the Fusion
is classified as midsize, it looks, feels and
drives larger, although its overall measurements
very closely mirror those of the Honda
Accord and Nissan Altima.
The styling changes for 2015 are minimal
— new original wheel designs, and
four new exterior colors — Bronze Fire
Tinted Clearcoat Metallic, Guard, Tectonic,
and Magnetic.
Interior: The Fusion Titanium comes
standard with leather upholstery, leather-wrapped
steering wheel, heated front
sport seats, dual-zone automatic climate
control, keyless ignition/entry, pushbutton
start, aluminum pedals, auto-dimming
mirrors, rear parking sensors, rearview
camera, a 12-speaker Sony audio system
with HD radio, a sport-tuned suspension
and 18-inch wheels.
Our test model included the all-new Terracotta
package, which is only available
on the 2015 Fusion SE and Titanium models.
It features Terracotta-colored leathertrimmed
seats and door inserts. Our test
vehicle also featured the standard 10-way
driver’s seat with memory, and 4-way passenger
seat, as well as the optional heated
and cooled versions of those seats.
The rear seats are comfortable, with adequate
leg, knee and headroom for passengers
up to about 6 feet tall. The adjustable
headrests are comfortable for passengers,
but can interfere with rear visibility.
Instrumentation is modern and attractive,
with an illuminated blue needle on
the speedometer. An optional dual LCD
display allows drivers to toggle through
a variety of functions. One cool feature is
the overhead interior lighting, which you
work with the swipe of your finger.
The steering wheel is home to buttons
should be a top priority for expansion in
the coming year; demand for technical certificates
trumps bachelor’s degrees ... but
not by much; commuting times are critically
important to employees; and, broadband
telecommunication infrastructure is
as important to our economy as roads.
A complete report on the “Instant Survey”
results can be found on our website:
kitsapeda.org/2015/02/2015-economicforecast/
— or link via our main website
at www.kitsapeda.org .
KEDA intends to continue to use this
“instant survey” tool to assist us and our
public partners as we work together to
plan for our economic future. Please contact
us if your organization or business is
interested in participating in this unique
opportunity.
We will continue the communities comp
plan conversation (with a focus on transportation)
at KEDA’s annual meeting on
March 19 at the Kitsap Conference Center.
The meeting is open to the public,
with registration at www.kitsapeda.org.
You may also continue to follow the
comp plan update process by logging onto
local government websites for a list of
meetings and other ways you can participate
in sharing your thoughts and ideas
about Kitsap’s future. Here’s the list:
www.compplan.kitsapgov.com
www.planning@cityofportorchard.us
www.ci.bremerton.wa.us/compplan/
doc/schedule.pdf
www.cityofpoulsbo.com/planning
www.ci.bainbridge.gov/615/navigatebainbridge
Planning together, growing together,
prospering together — for generations.
On Kitsap!
• John Powers is executive director of the
Kitsap Economic Development Alliance.
2015 Ford Fusion
controlling audio input and volume, cruise
control, hands-free phone operation, vehicle
information and settings, and voice activation.
Technology includes Ford’s Sync voice
recognition and the MyFord Touch interface.
Like most Microsoft products, both
have their idiosyncrasies and can be frustrating
at best, however, there have been
recent improvements — and unlike the
last Fusion we drove, we experienced no
problems using the system.
Safety features on all Fusion models include
front seat side airbags, front knee
airbags and side curtain airbags, anti-lock
disc brakes, traction control, electronic
stability control.
Optional technology included on our
test model were blind-spot monitoring,
cross-traffic alert, lane departure warning,
lane-keeping assist, rearview camera
and inflatable rear seatbelts. Advanced
optional safety features include adaptive
cruise control, blind-spot detection, lanekeeping
assist, and the Active Park Assist
option, which automatically measures
and maneuvers the Fusion into a parallel
parking space — a feature normally reserved
for higher-end luxury cars.
The Fusion offers 16 cubic feet of cargo
space — slightly more than its Camry
and Altima competitors, which each offer
15.4 cubic feet, while the Accord measures
15.8.
Under The Hood: The Fusion Titanium
is available with front-wheel drive or allwheel
drive, which is how our test model
was equipped. It’s powered by a turbocharged,
DOHC 2.0-liter EcoBoost inline
four-banger, that puts 240 ponies to the
pavement, with 270 lb. ft. of torque. The
aluminum block powerplant boasts four
valves per cylinder and twin independent
variable camshaft timing. It’s married to
a smooth 6-speed automatic transmission
that shifts in all the right places, and features
paddle shifters. EPA fuel mileage
ratings are 22/city, 31/highway for a combined
25 mpg.
Behind The Wheel: As noted earlier,
the 2015 Fusion feels and drives larger
than it is. While it doesn’t feel as nimble
as some European and Asian midsize
see FUsIon | 39

WWW.KPBJ.COM
car review
By Lary Coppola
KPBJ contributor
There’s more than one reason the
2015 VW Golf is the North American
Car of the Year — not to mention
earning a few other honors as well since
its debut late in 2014. The seventh generation
of the most successful European car
of all time was completely redesigned for
2015, and the Volkswagen Golf lineup has
become one of the most extensive vehicle
families of compact hatchbacks, featuring
both three and five-door body styles and
multiple powertrain combinations.
I’ve had occasion to drive them all — including
the all-electric eGolf, as well as the
diesel version — which were showcased at
a recent press event. I drove another version
in my regular weekly rotation, and yet
another as a courtesy loan during a personal
business trip to Atlanta.
The 2015 Golf lineup features the gasoline-powered
Golf TSI and energetic GTI
models, in two, and four-door hatchback
configurations. Also available is the fourdoor,
diesel-powered Golf TDI, and the
aforementioned all-electric e-Golf. Also,
VW just recently debuted the roomy 2015
Golf SportWagen. It seems there’s a Golf
for just about every driver’s needs — except
the hot rodder. Until now… Enter the
high-performance Golf R, which is a rocket,
pure and simple.
The only hatchback competition for
the 2015 Golf R is its more expensive colleague,
the Audi S3. However, look for a
new, hotter Ford Focus in the 2016 model
year.
Safety equipment on all Golf models includes
dual front airbags, front seat-mounted
side impact airbags, side air curtain airbags,
antilock brakes, electronic brakeforce
distribution, brake assist, electronic
stability control and hill-hold assist.
Walkaround: The Golf is VW’s first use
of its versatile MQB platform in the U.S.
| 2015 vw Golf
Volkswagen Golf-R:
A wolf in sheep’s clothing
2015 Volkswagen Golf
The evolutionary styling leaves it easily
identifiable as a Golf, in spite of a slightly
longer wheelbase, longer hood with short
overhangs, a wider track and lower roof
than the previous model. The Golf’s familiar
shape is crisper yet more rounded,
and aggressive looking.
The distinctions between the rest of the
Golf lineup and the R are subtle, with the
most noticeable being black finish side
mirror backs, four tailpipes, and R logos
on the front fenders. The most significant
change is the front fascia, which features
standard Bi-Xenon headlights with
U-shaped LEDs flowing into a slimmer
grille with larger air intakes. LED running
lights are standard, as are 18-inch, R-
specific design alloy wheels, with 19-inchers
optional.
Interior: While all 2015 Golf models get
comfortable seats, a stylish interior with
thoughtfully placed controls, plus a new
standard color touchscreen and plenty of
space for people and cargo — the Golf R
features heated leather seating surfaces,
power driver’s seat, and automatic climate
controls as standard equipment.
Controls are angled slightly toward the
driver, and the instrumentation features
classic, easy to read, white-on-black numbering.
An information screen sits between
the tach and odometer and allows drivers
to easily see various functions by toggling
a steering wheel-mounted control.
A premium audio system by Fender —
of guitar fame — is optional. All 2015 VW
Golf models come standard with iPhone
connectivity using Apple’s newest Lightning
plug. With our iPhone 6 plugged in,
we were disappointed the phone’s navigation
audio commands didn’t come through
the car’s speakers, as they do with Nissan,
Hyundai, and most luxury brands. However,
the Golf’s built-in navigation works
just fine.
There’s ample headroom and adult-sized
legroom front and back. Cargo space measures
22.8 cubic feet, and the Golf’s boxier
shape allows stuff to be stacked nearly all
the way to the roof.
Under The Hood: The Golf R features
a 2.0-liter turbocharged, direct injection
TSI 4-cylinder powerplant. It boasts
variable valve timing with two-stage exhaust
valve lift, and delivers 292 horses
and 280 lb.-ft. of torque — 36 more horses,
and 37 lb.-ft. more torque than the previous
R model. It’s EPA rated at 23/30 mpg
City/Highway — an improvement of three
miles per gallon over the previous-generation
Golf R, which originally debuted as a
2012 model.
The engine is married to either a 6-speed
manual or VW’s DSG automatic transmission.
All Wheel Drive is standard.
Behind The Wheel: Simply put, the Golf
R is a blast to drive. VW says it does the
0-60 drill in 4.9 seconds, but it feels faster
than that. Our test drive took us from Pacific
Beach just north of San Diego, across
the hills to Julian and back. The route featured
a lot of winding, hilly, 2-lane blacktop,
and in the R, it was an E-Ticket ride.
Handling on the Golf R is tight and certain,
thanks to all-wheel drive, lightning
shifts — up and down — delivered by the
DSG paddle shifters, and the DCC option
package, which includes a sophisticated
adaptive damping system, bigger brakes,
19-inch wheels, more aggressive tires, and
MARCH 2015 | 39
navigation. We easily handled corners
marked 35 at double that speed. Side bolsters
in the comfortable front seats held
us firmly in place around those corners
while the firmer suspension all but eliminates
body roll, inspiring driver confidence.
Braking is formidable and we never
experienced a hint of fade, no matter
how hard or often we hit them.
Volkswagen says the Golf R is the fastest
car it’s ever brought to the U.S. After
a day behind the wheel of this missile, we
don’t doubt it. Top speed is limited to 155
mph, and while hitting three digits a number
of times, we didn’t get near that, but
felt like we could — and pretty quick.
Whines: For some reason, Volkswagen
has declined to put a USB port in the Golf,
but the iPhone connection does fit the latest
version. If you like your music loud,
the optional Fender system delivers, but
at low to moderate volumes leaves something
to be desired.
Bottom Line: The new 2015 Volkswagen
Golf R is sophisticated machinery with
European road manners. The fact this car
is so much fun to drive — and yet still affordable
at just over $39,000 — is perhaps
its best quality of all.
• For more vehicle reviews, visit www.
autoreviewers.com.
fUsIon | from 38
sports sedans, it accelerates much quicker
than you expect a four-banger to in a car
this size. Driving from Fort Lauderdale to
Lake Okeechobee, and then back through
Palm Beach, the Fusion proved to handle
solidly, with a quiet, comfortable ride,
strong braking, and steering that fit our
driving style pretty well.
Since Florida is so flat, there were no
hills to conquer, but the Fusion acquitted
itself well over a variety of road surfaces
on the winding two-lane blacktop around
the massive lake, as well as on the freeways.
On the all but deserted four-lane
Highway 27, between what used to be Andytown
and South Bay, we had difficulty
keeping it under 85 — because of the quiet,
comfortable ride, it just didn’t feel we
were moving that fast. On I-95, where the
70 mph speed limit is a mere suggestion,
keeping up with high-speed traffic was effortless.
Whines: Making a U-turn requires plenty
of space — but less than a Honda Accord.
Bottom Line: In a segment cluttered
with choices, the sleek, eye-catching, European-inspired
design and surprisingly
potent powertrain make the 2015 Ford
Fusion Titanium an attractive choice
that makes a bold fashion statement. At
$39,125 as tested, it’s a good value for this
segment as well.

40 |MARCH 2015 WWW.KPBJ.COM