QWhat - Association of Washington Business

March/April 2008
WASHINGTONBUSINESS MAGAZINE
Volume 7 | Issue 2
24
Cover Story
20
Q&A with Don Welsh, President and CEO
22
Workforce
30
Vancouver’s Winter Olympics
35
Policy
36
Industry Profile
38
Tourism
40
Made in Washington
42
Travel Washington
46
Tourism
50
Member Profile
53
Profile
Experiencing Washington
State offers adventure and opportunity for many
by Danielle Rhéaume
5
From the Publisher
6
Feedback
8
Ulcer Gulch
10
Inside Washington
by Don C. Brunell
Letters to the President
A different look at politics
Seattle Convention and Visitors Bureau
Washington faces shortage of workers
by Mike Luis
Less than 2 until 2010:
When will Washington get into the game?
by Danielle Rhéaume
Enhanced ID: Coming to a border crossing near you
by Paul Schlienz
Washington’s convention industry
growing by leaps and bounds
by Paul Schlienz
Mount Rainier National Park:
Washington’s national treasure recovers from disaster
by Daniel Brunell
Learning from disaster
by Daniel Brunell
Darrington’s bluegrass thrives in Evergreen State
by Richard S. Davis
News from around the state
14
Chair’s Corner
16
Policy and Politics
18
Points of View
by Brad Carlson
by Richard S. Davis
A worker’s right to privacy
by Rep. Cary Condotta, R-Wenatchee
and Rep. Steve Conway, D-Tacoma
4 WASHINGTONBUSINESS
Washington wine touring coming of age
by Steve Roberts
Ye Olde Curiosity Shop
by Danielle Rhéaume
Sen. Paull Shin
by Daniel Brunell
From the Publisher
Costs are critical to health care reform
I
n some ways, the current debate over health care
gives me a sense of déjà vu. Remember Yogi Berra’s
famous saying: “It’s like déjà vu all over again!”
If you remember, in 1992, President Bill Clinton
was going to make his wife, Hillary, the “health care
czar.” She was going to totally overhaul the nation’s
health care system and require all employers to provide health insurance for their workers. The effort
was a disaster, and died a quick death.
Now that Sen. Hillary Clinton is running for president, she has dusted off the old playbook and is once
again pushing universal health care.
In 1993, Washington Gov. Mike Lowry and
Democrat legislators mandated that all employers
provide a uniform universal insurance plan to all
workers in the state, except those in unions. Union
leaders figured out that the rank and file was better
off with the health insurance they negotiated, so they
told Lowry and legislators, “Thanks, but no thanks.”
Lowry’s feat earned him an overnight stay in the
White House. He was to be the harbinger of what
was to come, but there was one tiny glitch. Congress
needed to grant Washington an ERISA waiver to
impose the “employer mandate.”
No ERISA waiver for Washington
Congress passed the Employee Retirement Income
Security Act in 1974 to ensure that private sector
employee benefits were uniform for multi-state
employers. Washington’s health care mandate would
be different, and other states would not be required
to follow it. Therefore, without a waiver, our state
could not require employers to provide their workers
with the state-designed health care plan.
Congress did not grant the waiver, despite some
heavy lobbying by then-Congressman Mike Kreidler,
our state’s current insurance commissioner.
Fast forward to 2008.
While Sen. Clinton is calling for national universal coverage, Sen. Karen Keiser, D-Des Moines, chair
of the Health Care Committee, is enamored with a
proposal that nearly passed in Wisconsin. It provides
universal health care and it’s funded by up to a 17percent payroll tax. Employers would pay two-thirds
of the premium.
On the House side, Rep. Eileen Cody, D-West
Seattle, chair of the Health Care Committee, wants
to pass a plan similar to the one in Massachusetts
where individuals are mandated to buy health
insurance and the government connects them to
the coverage.
The Massachusetts plan is the only model that
has been put into operation, so let’s look at how it’s
faring.
In the Massachusetts plan, the state heavily subsidizes people making less than $30,000 a year and a
family of four making under $60,000. That insurance is selling like hotcakes. Massachusetts reports
that 133,000 of the estimated 207,000 people eligible for the heavily subsidized coverage are enrolled.
But that portion of the program has already busted
the budget by $150 million.
Don C. Brunell
AWB President
Massachusetts plan over budget
According to Grace-Marie Turner, president of the
Galen Institute, the state’s plan isn’t nearly as popular
among folks who aren’t eligible for government subsidies. In fact, only about 10,000 of the more than
215,000 uninsured in Massachusetts have
signed up.
So, how’s it working so far for those
“While we will hear
who have signed up? According to Turner,
because of the costs involved,
much about universal
Massachusetts’ insurers expect to raise
rates by 10 to 12 percent in 2008, twice
health care during the
the national average. And people who
presidential campaign,
have signed up for the plan are finding it
hard to find doctors who will see them.
remember: There’s no
While we will hear much about univerfree lunch when it
sal health care during the presidential
campaign, remember: There’s no free
comes to health care.”
lunch when it comes to health care.
Somebody has to pay. It’s in the public
interest to ensure that, as we talk about
health care, we carefully calculate the costs to see if
we are really better off under a whole new system.
Regardless of how difficult those costs are to determine, it is essential that we have accurate information
about the costs of universal care as we work to
increase access and improve patient care.
MARCH/APRIL 2008 5
Send your letters to the Association of Washington Business, P.O. Box 658, Olympia, WA 98507-0658, or e-mail them to [email protected].
AWB’s generosity much appreciated
First, I would like to thank the Association
of Washington Business for the generous
$1,000 check you gave our fire department
association to assist families at Christmas.
This year, with all the flooding and stormrelated damage in Lewis and Grays Harbor
counties, our association decided to assist families of volunteer firefighters who suffered so
greatly from the disaster.
Our search led us to Lewis County Fire
District 16, which serves the areas of Doty,
Dryad, and Meskill. According to Fire Chief
Chip Elliot, he had up to six volunteer firefighters who were no longer able to live in
their homes until major repairs could be completed. With two bridges and many roads
washed out, the communities desperately need
all their firefighters.
The $1,000 donation your association provided was personally handed to Fire Chief
Chip Elliot on Dec. 18 with the request that
he assist those firefighters’ families so they
could continue to provide the emergency services that are so desperately needed.
Please share our appreciation with your
members for making this money available.
Melvin D. Low, Fire Chief
East Olympia Fire District, District 6
We would like to take this opportunity to
formally thank you for your association’s continued generosity in helping us share
Christmas with the less fortunate citizens of
our community. The financial assistance you
provided, coupled with efforts by the South
Bay Volunteer Firefighters and South Bay
Elementary School, provided the opportunity
to bring Christmas to two very needy families
this season.
The first family is composed of a single par-
6 WASHINGTONBUSINESS
ent with a son in the second grade and a
daughter in the first grade. The other family
has a single parent with seven children and
dependents ranging in age from preschool to
their 20s. They had requests varying from
essentials to desirable items for the children.
We were able to provide basic necessities such
as clothing, shoes, groceries, pots and pans,
and other household items for both families,
as well as requests from each of the children
for toys and games. In each child’s case, a “special” toy was requested, and we were able to fill
the order!
These families reside in our fire district, and
were very appreciative of the Christmas that
may have not have otherwise had. We were
able to help make all their wishes come true
because of your association’s thoughtful generosity. Thank you again for your continued
interest in helping us help our local community’s needy families.
Brian VanCamp, Fire Chief
South Bay Fire Department, District 8
Sean Murphy, President
South Bay Firefighters’ Association
Intensivists idea is pie in the sky
This letter is in response to Don Brunell’s
column on telemedicine published in early
January in The Columbian (Vancouver, Wash.).
Having just read your very interesting column,
hope you don’t mind a voice from earth.
I am a retired clinical lab director and international logistics expert with about 47 years of
computer-telecommunications and medicine
experience in a wide variety of venues. I proudly possess bachelor’s and master’s degrees from
great institutions. I have written software,
developed and manufactured both computer
and telecommunications equipment within
large global-class companies and had the good
fortune to implement one of the very first clinical computing systems on the West Coast. It
was a very big deal indeed, at the time.
Now retired, I often spot pie-in-the-sky ideas
and strive, assiduously, to poke holes in them.
First, our current medical care system is like a
sub-prime mortgage in a rising interest rate
world: IT’S UPSIDE DOWN. We continue to
focus on treating acute cases and neglect the idea
of getting people well and keeping them there.
The “intensivist” vision is way, way into the
future and the only people who will benefit
from it are those on the edge of human system
failure; really critical yet perhaps still ambulatory people. Why should the “government”
subsidize a physician or medical facility in
implementing such systems before we achieve
a predominance of “wellness”?
The only answer that I can see is that acute
care of whatever type permits doctors and
emergency rooms to charge a fee for monitoring people who could just as well monitor
themselves after a little training.
I advocate a program similar to one offered
by Healthways, a growing and very successful
company that provides disease management to
HMOs and private companies. This outfit gets
results by focusing on the top 10 diseases,
including diabetes and heart, lung and kidney
failure, the problems that really cost the nation
piles of cash by using trained nurses to coordinate care with the person’s physician and the
patients. They have had a very successful program with Blue Cross of New York and can
document huge savings through avoidance of
hospitalization. This, I strongly believe, is the
way of the future. I hope we never see the idea
of “intensivists” developed; it is just too
darned impersonal and hardware dependent.
Claude Foutch
Vancouver, Wash.
Washington Business
Editorial Staff
Publisher. . . . . . . . . . . . . . . . . . . . Don C. Brunell
Executive Editor . . . . . . . . . . . . . Richard S. Davis
Editor/Art Director . . . . . . . . . . . . Kim A. Fowler
Managing Editor . . . . . . . . . . . . . . . Paul Schlienz
Photo Editor . . . . . . . . . . . . . . . . . Daniel Brunell
Staff Writer . . . . . . . . . . . . . Danielle R. Rhéaume
Association of
Washington Business
P.O. Box 658, Olympia, WA 98507-0658
Tel: (360) 943-1600 Fax: (360) 943-5811
www.awb.org
STATE CHAMBER
with Distinction
The Association of
Washington Business
is accredited, with
distinction, by the
United States Chamber
of Commerce.
AWB Officers
Brad Carlson. . . . . . . . . . . . . . . Chair of the Board
Evergreen Memorial Gardens, Vancouver
Jack McRae . . . . . . . . . . . . . . . . . . . . . Vice Chair
Premera Blue Cross, Mountlake Terrace
Dave Brukardt . . . . . . . . . . . . . Secretary/Treasurer
Sterling Savings Bank, Spokane
Kirk Nelson. . . . . . . . . . . . . Immediate Past Chair
Qwest, Seattle
Don C. Brunell. . . . . . . . . . . . . . . . . . . . President
The late C. David Gordon . . . Honorary President
AWB Senior Staff
Don C. Brunell. . . . . . . . . . . . . . . . . . . . President
Gary Chandler . . . . . . . . VP Governmental Affairs
Debra Brown . . . . . . . . . . Sr. VP Member Services
Richard S. Davis. . . . . . . . . . VP Communications
Dick Walter . . . . . . . . . . . . . . . . . . VP Operations
G
G
G
G
Editorial Disclaimers
Letters are welcomed, but must be signed to be considered for
publication. Please include contact information for verification.
Reproduction of articles appearing in Washington Business magazine is
authorized for personal use only, with credit given to Washington
Business magazine and/or the Association of Washington Business.
Articles written by outside authors do not necessarily reflect the views or
positions of AWB, its officers, staff or members.
Products and services advertised in Washington Business magazine are
not necessarily endorsed by AWB, and do not necessarily reflect the
opinions of AWB, its officers, staff or members.
Washington Business magazine is the official bi-monthly publication of
the Association of Washington Business. The annual subscription rate is
$24.00, and individual copies may be purchased for $3.95. For
subscription requests and magazine purchases, please contact the
Association of Washington Business, P.O. Box 658, Olympia, WA 98507.
Advertising inquiries may be directed to:
The Silver Agency
109 North Tower, Suite 200
Centralia, WA 98531
Tel: (360) 736-8065 Fax: (360) 330-7960
www.silveragency.com
MARCH/APRIL 2008 7
Ulcer Gulch
Washington tops another Forbes list
Seattle is the third-greediest city in America. It’s also
fourth when it comes to lust and jealousy. That’s the
result of a new study by Forbes magazine, which ranks
the top cities in the nation when it comes to the seven
deadly sins: lust, gluttony, avarice, sloth, wrath, envy
and pride. In the words of the magazine, “No wonder
this city gave rise to the $4 latte. Trickle-down wealth
goes to coffee, coffee, and more coffee.”
Travis Pittman, KING5.com
Feb. 25, 2008
Sonic ambivalence
“If the Sonics leave Seattle, the
city’s economy won’t suffer and
most people won’t care.
That’s not the tirade of some antiarena activist; it’s the Sonics’ latest
legal argument to try to get out of
its Key Arena lease. And it’s exactly
the opposite of what the Sonics
have claimed when asking for taxpayer help to build a new arena.”
The Seattle Times
Jan. 18, 2008
8 WASHINGTONBUSINESS
Bottomed-out ferry system
looking to bounce back
“No man’s
“Don’t it always seem to go that you
don’t know what you got ‘til it’s gone ... ”
safe while the
“Joni Mitchell was singing about
paving over a Hawaiian paradise in 1970,
but the lyric could just as well illustrate
today’s Washington State Ferries travails.
Riders probably didn’t realize in 1999
that they were enjoying the ferry system’s zenith, and that in less than a
decade it would crumble around them.”
in session.”
Ed Friedrich, Kitsap Sun
Feb. 17, 2008
life, liberty, or
property are
Legislature is
– Mark Twain
One of the joys of the legislative session is
reading the bills the Evergreen Freedom Foundation puts on their Liberty Live blog. They call
them “stupid bills.” We call them fascinating bills.
SB 6299
Concerning tax exemptions for
beekeepers.
SB 6232
Requiring a specialized forestproducts permit to sell raw or
unprocessed huckleberries.
HB 2534
Restricting light pollution.
SB 6351
Providing that certain popcorn
mixtures are not prepared food
for sales-and-use tax purposes.
HB 3091
Protecting privacy rights regarding animal identification.
HB 3215
Studying the environmental
impact of plastic grocery bags.
HB 3310
Licensing music therapists.
HB 3313
Designating coffee as the state
beverage.
HB 3325
Authorizing the establishment of
qualified shopping-cart recovery
programs by cities and towns.
SB 6918
Designating the cougar as the
official state mammal.
HB 2456
Regarding the management of
the geoduck.
Inside Washington
Photo courtesy of Boeing Co.
Boeing beats Airbus in orders but delays 787; tanker deal under appeal
CHICAGO—According to the Associated Press, rivals Airbus and Boeing Co. garnered a record 2,754
orders in 2007. Boeing sold more planes, but Airbus delivered more aircraft to its customers. Boeing also
stated it would push back the much-anticipated 787 inaugural flight by up to three months. This means a
delay of the 787’s test flight to the end of the second quarter due to problems in Boeing’s supply chain and
slow progress on the assembly line. While Boeing originally planned to deliver the 787 in late 2008, delivery of the airplane will not occur until 2009 under the new schedule. In a disappointing move for Boeing,
the Pentagon recently awarded the $40-billion aerial refueling aircraft contract to Airbus and NorthropGrumman Corp. If Boeing had won the bid, the military would have replaced its aging fleet of Boeingbuilt KC-135s with Boeing KC-767s, which are already in service in the Italian and Japanese air forces.
Now, the U.S. Air Force’s primary aerial tanker aircraft will be the KC-45A, a design derived from the
civilian Airbus A330-200.
Schweitzer Engineering Labs to hire more than 300 employees in 2008
PULLMAN—Schweitzer Engineering Laboratories, Inc. will hire more than 300 new employees this year
as the company continues its worldwide expansion. Many of the new employees will work at the
company’s Pullman headquarters. Positions include software, hardware, and research engineers; integration
and automation engineers; manufacturing and mechanical engineers; market managers for metals, mining
and the petrochemical industry; supplier quality, power, and protection engineers; flight department, manufacturing, administrative, and SEL University personnel; technicians; and internships. The company is
expanding in response to worldwide growth in utility sales, especially in certain industrial sectors like the
petroleum industry.
AWB recognizes 25 companies for providing the best places to work
Photo by Daniel Brunell/AWB
OLYMPIA—AWB presented 25 members
with its annual Better Workplace Awards
on Feb. 6 at its 2008 Legislative Day held at
St. Martin’s University in Lacey. The award
honors AWB member companies that
demonstrate innovation in the areas of
workplace safety, job training and advancement, and benefit and compensation
programs.
Overall Winner
Damar Machine Co., Monroe
Damar Machine Company’s John Gevaert and Thom Kroon (center) receive the AWB Better
Workplace Award from AWB Chair Brad Carlson (left) and Gov. Chris Gregoire (right).
Workplace Safety
CH2M HILL, Richland
Goodwill Industries of the Inland
Northwest, Spokane
Honeywell, Redmond
Kinross Gold, Republic
Max J. Kuney Co., Spokane
McKinstry Co., Seattle
Nucor Steel, Seattle
Pacific Power, Yakima
Sakuma Brothers, Burlington
Sonoco Products, Sumner
10 WASHINGTONBUSINESS
Job Training and Advancement
Brown & Caldwell, Seattle
Burgerville, Vancouver
Columbia Bank, Tacoma
Kinross Gold, Republic
Nob Hill Water Association, Yakima
Innovative Benefit and
Compensation Programs
Acme Concrete Paving Inc., Spokane
Brown & Caldwell, Seattle
Burgerville, Vancouver
Gibbs & Olson, Inc., Longview
Harris Group, Seattle
Inland Northwest Health Services,
Spokane
Kinross Gold, Republic
Landau Associates, Edmonds
NRG::Seattle, Seattle
Skils’kin, Spokane
Sound Options, Tacoma
The Rants Group, Olympia
Inside Washington
Centenarian buildings become living history
SEQUIM—From the Peninsula Daily News: Two historic buildings have a new home at the SequimDungeness Valley Museum and Arts Center. The buildings are the 116-year-old Washington Harbor
schoolhouse and the 133-year-old Captain Morris House, once owned by a sea captain who sailed from
the East Coast around Cape Horn, at the southern tip of South America, to the Northwest. Both of the
structures were formerly located 1.2 miles away at the intersection of Sequim-Dungeness Way and Medsker
Road. An auction for the museum funded the $13,500 move. Once restored, the schoolhouse and the
Morris residence will become living history exhibits.
Wanapum Dam fish bypass wins civil engineering award
BEVERLY—The Grant County Public Utility District’s $30-million fish bypass project at Wanapum
Dam, six miles south of Vantage on the Columbia River, received Northwest Construction magazine’s Best
Civil Engineering Award for 2007. The Future Unit Fish Bypass consists of a 290-foot-long chute with
an opening of 18.5 feet and an exit width of 90 feet. The chute will carry a bypass flow of 20,000 cubic
feet per second. Combined with the ongoing installation of new fish-friendly generating turbines, the
PUD’s goal is to achieve a 95-percent survival rate for juvenile salmon and steelhead migrating to the
Pacific Ocean.
Vancouver high school wins BPA’s 2008 Regional Science Bowl
PORTLAND—Mountain View High School of Vancouver, Wash., won first place in the Bonneville
Power Administration’s Regional Science Bowl at the University of Portland recently, after battling
through a full day of competition to best 63 other teams. The Science Bowl is a quiz-show-style, roundrobin competition aimed at raising and encouraging students’ interest in math, science and technology.
Fifteen colleges and universities offer scholarships to members of the top three teams. The winning high
school teams will compete at the national championships in Washington, D.C., later this spring.
T-Mobile leases space at new data center in East Wenatchee
EAST WENATCHEE—T-Mobile will lease 200,000 square feet of space at Intergate.Columbia, a Sabey
Corp. data center project in East Wenatchee, Wash. T-Mobile is the first tenant of the Sabey facility, projected to cost more than $100 million. Sabey plans to build two data centers, totaling approximately
380,000 square feet of space, by 2009. Douglas County PUD recently completed a electrical substation to
supply power to the new data center. Sabey has arranged for up to 30 megawatts of electricity from the
PUD and will pay for about 80 percent of the substation’s $7.9-million cost, according to PUD officials.
Gates Foundation donates $1 million to premature birth research
SEATTLE—From the Seattle Post-Intelligencer: The Bill and Melinda Gates Foundation donated $1 million to Seattle Children’s Hospital Research Institute for research on the prevention of premature and stillbirths worldwide. The donation will fund studies at the hospital’s new Office for Prevention of Prematurity
and Stillbirth. This office is partnering with researchers and investigators worldwide to gather information
on premature births and stillbirths. The researchers will examine information from birth registries, vital statistics databases and medical literature and present their findings in Seattle in 2009. More than 1 million
babies worldwide die of complications resulting from premature birth.
Lufthansa inaugurates new nonstop route from Seattle to Frankfurt
SEA-TAC—A new air route is coming to Sea-Tac International Airport. Germany’s Lufthansa Airlines will
offer daily, nonstop service between Seattle and Frankfurt beginning March 30. The new flight will not
only connect Seattle to Germany, but will also allow Lufthansa passengers to make connections to 135 destinations in Europe, Asia, the Middle East, Russia, Africa and India. The addition of Lufthansa will bring
the total number of European service routes at Sea-Tac to five: British Airways to London, Northwest
Airlines to Amsterdam, SAS to Copenhagen, Air France to Paris, and Lufthansa to Frankfurt.
MARCH/APRIL 2008 11
Inside Washington
Port of Tacoma contractors complete second phase of restoration project
TACOMA—Port of Tacoma contractors breached the Puyallup River levee to create another off-channel
site for salmon along the river. They followed the tide out with excavation equipment, then led the tide
back in by laying rock along the now-shallow shore. The new channel will fill with water at high tide, providing a rich feeding and resting place for juvenile salmon before they head out to Puget Sound. The local
Puyallup tribe welcomed the salmon back to the river with a traditional Northwest Indian celebration at
the beginning of the fish migration season. The port will soon plant native vegetation.
Wheat stocks dwindle as prices rise in worldwide grain shortage
SPOKANE—From the Tri-City Herald: Washington’s wheat growers are feeling the pain of a worldwide
grain shortage. According to the Washington Grain Alliance, supply dwindled due to droughts in Australia
and other regions. As worldwide stocks dwindled to their lowest point in 30 years, importers bought 90
percent to 95 percent of what they needed and trading slowed down in anticipation of a dip in prices. In
2007, overall winter wheat plantings were up by approximately 4 percent in Washington. Nevertheless,
many wheat farmers do not plan to grow extra acreage in 2008.
Downtown Walla Walla loses about 150 trees in severe windstorm
WALLA WALLA—From the Walla Walla Union-Bulletin: A Jan. 4 windstorm hit Walla Walla where it
really hurts. The city, well known for its beautiful and extensive tree canopy, lost around 150 trees as a
result of the storm. After the winds died down, nearly 1,600 residents brought 622 tons of downed trees
and debris to the local landfill. The City of Walla Walla paid more than $43,000 to employees, in addition
to $39,000 to private contractors, to clear streets and parks of debris. Sadly, the storm tore out 105 park
trees. Approximately 45 other park trees face removal due to storm damage.
Seven counties buck downward trend in statewide housing sales
PULLMAN—From the Associated Press: During the last three months of 2007, Whatcom, Chelan,
Douglas, Adams, Walla Walla and Columbia counties all defied a statewide downturn in housing sales.
According to a report from the Washington Center for Real Estate Research at Washington State
University, statewide fourth-quarter sales were 99,120, down 25.6 percent in comparison sales of 133,220
homes during the same time frame in 2006. The rates receive seasonal adjustments. While Washington’s
decline in housing sales decline mirrors national averages, other western states, including California,
Arizona and Nevada, California experienced even steeper declines.
Pangborn Memorial Airport slated for $1 million remodel
EAST WENATCHEE—The Wenatchee World reports: Pangborn Memorial Airport is in line for a $1 million remodel in preparation for more passengers when Horizon Air—the airport’s only regularly scheduled
commercial passenger carrier—switches from the smaller Bombardier Dash 8, 37-seat Q-200 aircraft, to
the larger 76-seat Q400 aircraft this spring. Currently, the Port of Chelan County plans on renovating the
passenger security holding area, modifying sections of the heating and air conditioning system, and
installing more seating in the airport. The Federal Aviation Administration is funding the majority of the
improvements through a grant program.
Port Townsend donates carousel to town hard hit by Katrina
WAVELAND, MISS.—The Peninsula Daily News reports: A carousel designed and built in Port
Townsend, starting in 1991, by a fifth generation carousel maker and woodworking students at Port
Townsend High School, is now in Waveland, Mississippi – a town badly damaged by Hurricane Katrina.
The carousel, which never found a permanent home in Port Townsend, was in storage for years. The connection between Port Townsend and Waveland was forged through Port Townsend’s sister city relationship
with Bay St. Louis, another Mississippi town that was badly damaged by Katrina. Waveland is now designing a pavilion to house the 20 foot carousel.
12 WASHINGTONBUSINESS
Inside Washington
New county office planned for Camano Island
OAK HARBOR—From the Oak Harbor Herald: Camano Island, with its steady population growth, needs
a new county office building, according to Island County officials. Planners want a facility big enough to hold
sheriff, health and planning services through 2023, at a minimum. Currently, county services on Camano are
in cramped quarters in a group of buildings on East Camano Drive. The new building would bring these
departments under one roof and would be more convenient and user friendly, according to county planners.
An advantage in a new building would be a new multipurpose room usable for community meetings.
Sweet Onion Festival moves to downtown Walla Walla
WALLA WALLA—From the Walla Walla Union-Bulletin: Walla Walla’s popular Sweet Onion Festival is
on the move. For the first time, the 24-year-old event will take place in downtown Walla Walla on July 19
and 20. Downtown is the third location for the festival. Initially, the event was held at Fort Walla Walla
Park. In 2004, organizers moved the festival to Walla Walla’s fairgrounds due to its easier access and more
extensive parking facilities. This year, the festivities will center around Main Street, which allows the festival closer proximity to the Farmer’s Market.
Wenatchee on track for new multi-purpose center
WENATCHEE—According to the Columbia Basin Herald, construction of the Greater Wenatchee
Regional Events Center is moving along smoothly toward a September opening for the building. “There
will be two sheets of ice that will be under the same roof, but also it's multi-purpose, so it can accommodate concerts, rodeo, graduations, trade shows—you name it, we can just about do it," said Linda
Haglund, the center’s director of sales and marketing. Haglund hopes the center will bring people to
Wenatchee during the winter, historically the slowest time of the year from an economic standpoint.
MARCH/APRIL 2008 13
Chair’s Corner
Member involvement is the key
to AWB’s endorsement process
H
Brad Carlson
Chair
Board of Directors
Brad Carlson owns
Evergreen Memorial
Gardens in Vancouver.
He served on the
board of his local
chapter of the
American Cancer
Society and is active in
the Washington State
Funeral Directors
Association. He is
active with the
Vancouver Executives
Association and serves
on the board of
Legacy Hospital.
Carlson is a loyal
Washington State
University grad,
donating both time
and money to his
alma mater.
14 WASHINGTONBUSINESS
ow many of you remember your high school
civics teacher lecturing about the need for you
to be involved in our political process and to vote?
How many of you then went on to college, joined the
military, or went to work and ignored your teacher’s
advice?
Until this year, voter registration and turnout at
the polls was dismal, but not now. On Feb. 9, when
Washington held its presidential caucuses, people
jammed the caucus sites and went toe-to-toe over the
candidates they support. It wasn’t just a Democrat
thing with Barack Obama and Hillary Clinton slugging it out. It was a Republican happening, as well,
with John McCain and Mike Huckabee running so
close that Huckabee wanted a recount in our state.
All this renewed interest in the political process is
invigorating for our country. So, how do we, as small
and large business owners on Main Street, be part of
it and make our voices heard?
Get involved, be informed
First, we need to get involved, know the candidates, and support those we believe best represent us.
Part of getting to know the candidates is to look at
their voting record with the Association of
Washington Business, chambers of commerce, trade
associations, and other organizations such as the
unions, environmental organizations and trial
lawyers. Examine the votes and see if they support or
oppose your priorities.
AWB’s voting record will be updated right after
the legislative session adjourns, so look for that in
mid-March. Meanwhile, get the current AWB voting
record with information from the last legislative session and use it as a starter. It’s available on our Web
site at www.awb.org.
Second, participate in AWB’s candidate interviews. Right after the filing deadline in early June,
AWB is scheduling a series of interviews with candidates for statewide office and the Legislature. We’ve
already scheduled a series of regional board meetings
and candidate interview sessions with our members
around the state in early September, so you, our
members, can make your recommendations known
to our Governmental Affairs Council and board of
directors. These are hands-on meetings with you asking the questions.
Board endorsements
The AWB board, consisting of 180 members from
all parts of the state and representing all sizes and
types of businesses, will consider those recommendations and vote on our endorsements on Sept. 26 at
the AWB Policy Summit.
It’s important to understand that each member on
the board has an equal vote. Therefore, as the owner
of a small cemetery and funeral home in Vancouver,
I have the same vote as Weyerhaeuser’s Kristen
Sawin. It’s the AWB board—those of us representing
you, our 6,600 members—who make those endorsements, not AWB’s staff. So, it’s important that we
know how you feel.
AWB is sponsoring a series of debates at the Policy
Summit. Every four years, AWB hosts the first of the
gubernatorial debates, which is televised statewide. If
you can’t make it to the Policy Summit, watch the
debates on TVW.
Your involvement is critical
I can’t encourage you enough to get involved early.
As you remember from the 2000 presidential election
in Florida and our gubernatorial contest in 2004,
every single vote counts.
As the employers of people in Washington and the
very fabric of our local communities, we can’t afford
to sit this election out. We will have disagreements
within AWB over which candidates to support. The
decision will be made only after much discussion,
consideration and debate. That’s healthy and it’s what
our system of government is all about. In the end,
some people may object to a candidate AWB endorses—or perhaps chooses not to endorse—but that’s
what a vibrant, thriving organization is all about.
Please get to know the candidates and get active
with those you choose to support. Meanwhile,
remember that candidates are people just like you
and me, who have sacrificed their time to run for
office to represent us. While we can fight the hard
fight, remember that our differences are political, not
personal.
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Policy and Politics
Economy took center stage in 2008
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VP Communications
16 WASHINGTONBUSINESS
match revenues. Instead, the Legislature adopted a
aking his final revenue forecast Feb. 15, Dr.
budget that boosted spending by about 15 percent,
ChangMook Sohn had two messages to deliver.
while revenues were growing at about 7.5 percent.
In a less somber context, he might have been tempted
When you spend money at twice the rate you take it in,
to begin the press conference with the clichéd crutch of
reserves quickly disappear.
a stand-up comic: “I’ve got good news and bad news.
Even before Sohn added to lawmakers’ February
The good news is that the economy is strong. The bad
gloom, the state’s fiscal future looked dark. A nonpartinews is I’m reducing my estimate of state revenues by
san budget projection by the Senate Ways and Means
$425 million.”
committee identified a potential shortfall of $2.5 bilSo what does that say about weak economies? Well,
lion by 2013. And that was using revenue estimates
all you have to do is look around a bit. The liberal
that have turned out to be too rosy. Of course, the state
Center on Budget and Policy Priorities reports that at
will not—it cannot—spend into a hole that size.
least 25 states face significant budget shortfalls going
Assumptions can be shaky. Budget adjustments will be
into the next fiscal year. The National Conference of
made as necessary. Spending will be trimmed. Taxes
State Legislatures last December wrote that weakening
may be increased.
revenues threatened many state budgets.
As the old saw goes, “Forecasting is awful difficult,
Pleading for federal assistance in the stimulus packparticularly about the future.” Given the current ecoage, the National Governors Association said, “Despite
nomic volatility, it’s especially difficult now. But there’s
the fact that it is the beginning of the economic downutility in looking ahead, if only
turn, 18 states already face
to get an idea of where current
budget shortfalls totaling $14
patterns would take you.
billion in 2008 and 17 states
You needn’t look as far out as
project shortfalls totaling more
“As the old saw goes,
2013 to identify major probthan $31 billion in 2009.”
lems with the state budget. The
Then they say they expect it to
‘Forecasting is awful
Ways and Means forecast said
get worse.
it would cost about $34.1 bilBut here Sohn says, “The
difficult, particularly
lion to maintain current prooutlook for the state economy
grams through the next budget
is significantly brighter than
about the future.’
cycle, the 2009-2011 biennifor the U.S.” He adds, though,
um. Sohn’s February forecast
that we’ll feel the effects of the
Given the current
put revenues at $31.9 billion.
national slowdown and our
economic volatility,
The gap: $2.2 billion. With
own woeful housing market.
less than $1 billion in reserves,
So the good news is that
it’s especially
lawmakers come back in
others have it worse.
January looking at a major
There’s more to it. Even
difficult now.”
budget problem.
with the February cut, lawFamously, a sign hung in the
makers still have $200 million
1992 campaign war room of
more than they thought they’d
candidate Bill Clinton. Placed
have when the passed the bienthere by political whiz James Carville, it carried three
nial budget in 2007. And Sohn figures that revenues
simple messages: “Change Versus More of the Same;
for the 2009-2011 budget period will be 8.3 percent
It’s the Economy, Stupid; And Don’t Forget Health
higher than for the current biennium.
Care.”
Simply put, Washington’s more than just well off relIn 2008, politics looks much the same, with this
ative to other states. The economy, while not acceleratexception: In our state, even a relatively healthy econoing at the hyperactive pace of the past couple of years,
my provides inadequate buoyancy to keep the state
has calmed down to take a breather. But lawmakers
budget from sinking into the red. Here, the right mescontinue to spend breathlessly.
sage is: “It’s not the Economy—It’s the Spending.”
Last year, AWB urged lawmakers to trim spending to
Points of View
Locked out: House Bill 2769
H
Rep. Steve
Conway
D-Tacoma
ouse Bill 2769, sponsored by Rep. Sharon
Nelson, D-Vashon Island, attempts to
rectify an inequity in current law that allows
some employees to receive unemployment benefits when locked out or on strike, but not others. Currently, employees who are locked out
qualify for benefits unless the employer is part
of a multi-employer bargaining unit.
Some argue that such lockouts are merely
defensive—that in such cases, the lockouts are
caused by a strike against a member of a multiemployer bargaining group. But the fact is,
these multi-employer lockouts, especially in the
grocery industry, are becoming much more
aggressive, with a goal to reduce wages and
health care costs.
The strongest evidence of this is the 2004
grocer lockout in California that lasted 144
days and caused major losses for both employers and workers. The lockout ended only after
the employees conceded to major cuts in wages
for entry-level employees and a two-tier heath
care system with greatly reduced benefits for
new employees. When it comes to sitting down
at the bargaining table with the grocery industry, multi-employer groups are fond of saying,
“If you go on strike, we won’t see you for two
months.”
This aggressive posture reflects an imbalance
in power between large corporate employers
and their workforce, and is not healthy for
working families in our community. On the
other hand, grocery unions must also be reasonable. I am therefore open to an amendment
that would allow benefits only when the multiemployer bargaining group’s last and final offer
seeks major cuts in wages and benefits.
I’m hopeful this bill will help restore economic balance in this industry, promote better
labor relations and healthier communities, and
end the erosion of wages and benefits.
A Worker’s right to privacy: HB 2383
House Bill 2383, sponsored by Rep. Mike
Sells, D-Everett, addresses some important constitutional issues: Do the civil rights of employees end at the employer’s door? Does an
employer have the right to force employees to
attend meetings where the subject is a discussion of political choice, religious choice, or bargaining choice? Does this not conflict with our
freedom of speech and religion, which are foundations of our American democracy?
Nothing in this proposal restricts the right of
an employer to hold such meetings. It only protects the rights of an employee to be excused if
they so choose. These are civil rights, but apparently, they can be withheld at the workplace.
While many employers in our state respect
these rights, we are seeing more “forced” meetings hiding behind the veil of company property, as if it’s not on American soil. Our civil liberties are precious in our nation. Should they
remain unprotected in the workplace?
“Do the civil rights of employees end at the
employer’s door? Does an employer have the
right to force employees to attend meetings
where the subject is a discussion of political
choice, religious choice, or bargaining choice?”
18 WASHINGTONBUSINESS
Points of View
We can always change the rules
I
n the real world, most products have a lifespan. Most teams have a game plan. When
either one loses its appeal or fails to accomplish
its mission, that plan or product must be
improved to fit the current scenario or it will go
by the wayside as a historical example of failure.
The problem for today’s major labor unions,
with the possible exception of one, is that the
same old product or game plan is no longer a
winner. In fact, it has proven to be a major loser
in today’s marketplace.
Panic is setting in as unions are losing members and finding it difficult to move forward.
Over the past few years, attempts to organize
major groups and companies have consistently
failed. A recent example would be the Toyota
plant in Kentucky. When workers were provided with information from both union and nonunion proponents, employees chose not to
organize. This was the third attempt to unionize these workers. The company proved beyond
a shadow of a doubt that they provided better
wages, benefits and working conditions than
would any unionized competitor.
These losses are not confined to our domestic unions. Most European unions find themselves looking at concessions for the first time in
years. This is the result of Europe’s struggling
domestic economies, which are hamstrung by
overreaching union rules and regulations. There
are other examples, but the fact is that our
unions do not have a product or a game plan
that is attractive in today’s marketplace. They
have become nothing more than political
machines dedicated to their own agenda rather
than that of the modern labor force.
Labor neutrality or gag order?
So, what to do? Change the game plan?
Improve the product? Not these masters of
innovation. Instead, they want to change the
rules so the other side can’t play. It would be
like handcuffing the other team in a game of
football. It’s called the Labor Neutrality Bill.
Labor calls it, ironically, a freedom act. Business
calls it, more correctly, a gag order. The bill is
intended to keep business from communicating
with its own employees—not just in the arena
of union issues, but also with respect to religious and political views. There is very little
“freedom” in this approach. In effect, it shifts
the balance of power strongly toward the
unions.
In an issue closer to home, what if you are
winning? Our grocery stores have some of the
best wages and benefits in the nation. They
have agreed to these provisions under collective
bargaining and haven’t had a major strike in
nearly 20 years. So, why have the unions decided to push a bill to provide unemployment
compensation during a strike? At the committee hearing on this bill, I asked that question
and received an unusually honest answer. It was
clearly stated that this would allow them to
have more leverage to hold out for even more
lucrative contracts in the future. The irony is
that this would come at great cost to the
employer, since they
provide and pay the
unemployment costs
based on benefits
paid. This is unbelievable at best, and
downright ridiculous
at worst. Especially in
a state that already has
a very expensive and
liberal unemployment
program.
The bottom line is
that in an enlightened
world, unions have
become, for the most
part, unnecessary and
unproductive. There
are a few exceptions,
but that will have to
wait for another editorial. In the meantime,
keep your eye on the ball. It’s really hard to
catch when you’re wearing handcuffs.
Rep. Cary
Condotta
R-Wenatchee
“[Unions] have become
nothing more than
political machines
dedicated to their own
agenda rather than that
of the modern
labor force.”
MARCH/APRIL 2008 19
Q&A
Don
Welsh
President and CEO
Seattle Convention
and Visitors Bureau
Convention center major
draw for tourism dollars
Q
What does the Seattle Convention and
Visitors Bureau do?
A
We are the economic engine for bringing
conventions and domestic and international
tourists to the area. We work closely with the
major hotels to bring in meetings and
conventions. We are—for the first time—
recognized as a true, legitimate economic
development agency. This past year we
brought in $4.75 billion in revenue and about
$420 million in taxes. Based on the latest
sampling, we represent about 62,000 jobs.
The numbers continue to grow and Seattle
continues to evolve and really become a tierone, class-A city.
Q
Where are the conventioneers and tourists
coming from?
A
Don Welsh is president and CEO of
the Seattle Convention and Visitors
Bureau. He began his career in
1980 with United Airlines in
Chicago. Later, he entered the
hospitality industry where he
spent many years working with
major hotels, including Westin, Ritz
Carlton and the MGM Grand in Las
Vegas. Before joining the Seattle
Convention and Visitors Bureau
five years ago, Welsh ran the
Continental Basketball Association,
the former minor league for the
National Basketball Association.
20 WASHINGTONBUSINESS
If you break down the convention
business, we have always enjoyed an excellent
reputation, particularly with the great
convention center that’s located downtown.
It’s always been one of the real attractions. It is
literally steps from many of the major anchor
hotels. Convention planners love that. It
doesn’t require buses or the logistics of moving
people over distances.
We’ve always done well with the technology,
education, and research and scientific sectors.
We do very well with highly educated, higherprofile groups.
If you look at the individual, leisure side of
the business, a lot of that business during the
off-season is more regional. During the offseason, we’ll get a lot of business from
California, Oregon and British Columbia—
particularly now with the strength of the
Canadian dollar. We’ve seen a tremendous
increase in Canadian visitors in the last six
months to a year. When we get into the peak
summer months, that’s when business really
explodes for us, both internationally and
domestically.
One of our real strengths is that we have
Alaska Airlines — our hometown airline —
with the amount of nonstop flights they have
to Mexico and all through the United States.
I do think we’re going to be able to continue to attract some more Asian airlines in the
months and years to come as a result of the
third-runway investment at Sea-Tac. We’ll be
introducing a new nonstop flight to Beijing in
June on Hainan Airlines. It’s nice that we don’t
need to go to Vancouver now or down to San
Francisco or Los Angeles to catch a long-haul
flight.
In the past five years, we’ve added a lot more
capacity out of Europe. We have a nonstop
daily flight out of Paris that started last year.
We have a new nonstop from Seattle to
Frankfurt that’s starting in two months. We
have Northwest to Amsterdam, SAS to
Copenhagen and British Airways to London.
The London market is so important that
Northwest Airlines is going to be adding services starting in June, as well. So we’ll be having
17 nonstops a week to London out of Seattle.
Q
What would attract a conventioneer or a
tourist to Seattle?
A
If you think about companies in the
technology sector, it’s wonderful having
Microsoft’s headquarters in Redmond and the
reputation we have in technology. Microsoft
brings in three waves of people per year. In
aviation and aerospace, too, we benefit with
the Boeing impact here. If you think about
education, the Northwest has a great
reputation. For education, we have the
University of Washington. In biotech and
biomedical, we have South Lake Union.
One thing we see in Seattle is that, while a
lot of these people come from all over the
country, a high percentage comes from the
East Coast. When groups come in for a convention in Seattle, they’ll add on a day before
their convention begins or a day after, which
allows them to tag on a two-day trip up to
Vancouver or to go on the Victoria Clipper. If
they’re skiers, this time of the year is a perfect
opportunity. We see a lot of people during the
winter and off-peak months. In the summertime, we see a lot of people bring their families
with them. While the conventioneers are in
session for two or three days, their families are
out exploring the Seattle area. In many cases,
they’ll head up to B.C. they’ll go down to
Oregon or over to eastern Washington.
The cruise industry has become really
important for us here. This summer, we’ll have
more than 200 departures to Alaska. That’s
about 430,000 people in each direction. A lot
of the groups will buy 50 or 60 cabins. Before
their convention starts or after it’s over, they’ll
tag on a trip up to Alaska. People say, “I may
not be back here for another three to five to
seven years, so I’ll tag on a trip.”
On the international side, a lot of people
from France, Germany, or the U.K. will start
in Seattle and go all throughout the area. They
average between 14 and 17 nights of stay when
they come into our part of the country. There
are so many things to do.
Once people go to a Disneyland or some
place that’s a little more fabricated, they want
a real experience. They want a real city. They
want to go to the Pike Place Market, they
want to go over and see the wine region, they
want to be near the water, or they want to
take in some good sports. Our stadiums and
our arts and entertainment community are
drawing cards for us. Seattle is now this highly creative area where musicals and theater
come together.
Q
What plans exist to capitalize on the 2010
Winter Olympics in Vancouver?
A
The good news is that we have begun
exchanges with the board of the convention
bureau up in Vancouver. We were fortunate to
hear John Furlong, the CEO and person
responsible for the Olympics in Vancouver,
speak to our group a year ago. Then, we
brought their board down here and hosted
them. The whole idea was to begin a crosspollenization of ideas to see what we can do. A
lot of the advertisers they’ll target are in and
around the Seattle/King County area. Clearly,
having the relationship with our board didn’t
hurt.
We’d like to see a little more focus toward
when people are up in Vancouver, Victoria and
other parts of B.C. during that period of time.
Is there going to be enough for them to do
here in and around Seattle to get them to
come across the border? We’re working on
that, as well. On the federal side, we’re trying
to make sure that those who arrive in Seattle or
depart out of Seattle have an easier movement
through the border.
Q
What is the importance of the convention
industry and tourism statewide?
A
Clearly, tourism has always been a very,
very important source of business for our state.
Unfortunately, we’ve never invested too well in
it until Gov. Gregoire recently started helping
us fix that. The first thing she did was to create
a state tourism commission, of which I’m one
of 19 members. We meet six to eight times a
year. We’ve taken our budget from $3.6
million to over $10 million this year to help
promote the state.
From a creative standpoint, we’re doing
some really tangible things just to get the message out—including print, Web sites, and
partnerships—and in some cases we partner
with the B.C. government or Oregon. When
people travel, particularly internationally, they
don’t just come to see Seattle. They want to see
the wine country around Walla Walla, they
want to go down and see Mount St. Helens, or
they want to get up to Everett and see the
Boeing factory. So there’s a lot of synergy that
takes place.
Seattle and Spokane have always been the
anchors on either side of the state and we
understand the need to make sure we are
cross-selling one another to increase the collective marketing effort. I think we’ve been
very successful in doing that over the last couple of years.
MARCH/APRIL 2008 21
Workforce
Washington faces shortage of workers
by Mike Luis
Editor’s Note: This is the first installment of a three-part series by Mike Luis
covering workforce issues in Washington.
A
s human resources professionals already know, and as businesses
across the state are finding out, we are entering uncharted territory
when it comes to the state’s workforce.
For as long as anyone can remember, the battle cry of economic development in Washington has been “jobs, jobs, jobs.” First, employment in
the state’s timber, fishing and mining industries shrank; then aerospace
began to shrink permanently, and it seemed like there would always be a
large pool of unemployed people that needed work. But that pool is now
reduced to a shallow puddle.
In the early 1980s, the state had 28 consecutive months of double-digit
unemployment. The next two recessions, however, produced unemployment rates that maxed out briefly at just 7.5 percent. And with economic storm clouds now on the horizon, the state still has an unemployment
rate below 5 percent, and fewer than 4 percent in the Wenatchee,
Bellingham and the Puget Sound regions.
Does that mean we can relax and suspend longstanding job creation
efforts around the state? No. But the game has changed in two important
ways. First, we increasingly have the luxury of emphasizing the quality of
jobs and not just the quantity of jobs. Second, while we have always
worked to find jobs for people, we must now spend as much or more
effort finding people for jobs.
ed. This imbalance will only get worse, since births dropped from over 15
children per 1,000 population in the 1980s to under 14 per 1,000 in the
1990s. A smaller cohort enters the workforce just in time for the massive
wave of Baby Boomer retirements.
So how does Washington grow its job base by up to 3 percent per year
while “natural” workforce growth—graduates minus retirees—grows at
around 1 percent? Migration, of course: those hoards of footloose
Americans from California, Oregon, Alaska and elsewhere, plus a substantial number of immigrants from overseas. Over the long term, about
half of the state’s population growth comes from “in-migration”—those
moving here minus those departing—but that climbs to three-quarters
of all growth during boom years.
Washington’s attractiveness for jobs and lifestyles allows it to have robust
growth even if the maternity wards were not bursting at the seams a generation ago. The importance of migration goes beyond just bodies, however.
Washington is in the paradoxical position of having one of the most highly
educated workforces in the country and, at the same time, one of the smallest four-year college systems. That means that Washington imports college
degrees at a high rate. Of the people who moved to the state in 2006, 42
percent had a college degree, versus 30 percent for the overall population.
Migration also acts as a moderating factor in the business cycle. When
the economy is booming, in-migration picks up, as people in the rest of the
country see opportunity. But as the economy slows down, so does migration, as was seen in 2002, when net in-migration slowed to a trickle.
More jobs than babies
Where the jobs are in 2008
The 18- to 22-year-olds now entering the job market were born in the
mid-1980s, during the “Baby Boom Echo,” a cohort that averaged
around 70,000 per year. But the state added 106,000 jobs in 2007, so
even if no one retired, those new workers could not fill all the jobs creat-
The problem with relying on in-migration to meet our workforce
needs is that those migrants do not always match the available jobs.
Several areas of employment still have persistent shortages of workers that
in-migration will not remedy. According to the Washington State
22 WASHINGTONBUSINESS
Department of Employment Security, the occupations with the most job
openings are:
Healthcare. The shortage of healthcare personnel, nurses in particular,
is a well-known national problem. Not only do nursing schools not produce enough graduates, but the turnover in the profession is very high.
Many nurses, after a few years of intense, emotionally draining work,
move to part-time status or leave the profession entirely. And the profession remains heavily part-time, with many nurses’ decisions about where
to work tied to family considerations, making it unlikely that we can
address nursing shortages with in-migration.
Administrative and technical. While software firms may be able to
recruit talent nationally and internationally, other management and technical fields must rely on the local or regional labor pool. The competition
for technical talent weighs particularly heavily on smaller firms that cannot offer the benefits and career tracks of larger firms. These niche players may attract talent right out of college, but will lose their best employees to bigger firms once they have gone to the effort of training them.
Retail. A recent stroll through the Bellevue Square mall revealed 46
signs in store windows inviting people to “Join Our Team.” That nearly
one-third of the retailers at this mall had openings during the post-holiday slump shows just what a struggle retailers have finding employees.
The regular survey of vacancies by DES found more than 12,000 openings in retail around the state. With a median wage of $8.00 per hour and
two-thirds of openings part-time, retailers can only expect to absorb the
surplus labor in their local area, and right now there just is not much
slack in the labor supply in most of the state.
The need for homegrown talent
These three examples point to the downside of relying on in-migration
for our state’s workforce needs: people do not uproot themselves for just
any job. National recruiting is limited to high-skill professions, and the
daunting cost of housing makes it challenging for even medium-skilled
people to drift into the state and take whatever employment comes their
way. Washington needs to do a better job of growing its own pool of talent.
That begins with expansion of the state’s four-year-degree granting universities, so fewer of the state’s best and brightest leave at age 18 and never
come back. It does not speak well of our state that we send our own children
away only to replace them with young talent from around the country.
Moving the limited workforce we have to the places with the most job
openings requires something that is now in very short supply: affordable
housing. The DES employment report shows 33,000 job openings in
King County at a median wage of just $11.00 per hour. A full-time worker at that wage would spend more than half his earnings on a basic apartment in most areas of King County. No wonder Bellevue Square stores
can’t find employees.
A century ago the Klondike Gold Rush brought tens of thousands of
people to the young state of Washington, causing the population of
Seattle to jump from 43,000 in 1890 to 237,000 by 1910. The state has
always been a place where smart, talented, ambitious people come to
build their lives, and we have benefited from that enormously.
But we cannot meet all our workforce needs by flashing pictures of
Mount Rainier and apples around the world. A major economic development challenge for our state’s future will be to fit the available workforce to the opportunities that sit unfilled.
MARCH/APRIL 2008 23
Cover Story
by Danielle Rhéaume
Mount Rainier National Park
Photo by Argus Frischmuth
State offers adventure and opportunity for many
L
et’s face it—we’re spoiled. Washingtonians are accustomed to beautiful and diverse natural landscapes, cosmopolitan cities, folk and high
art, scores of activities, world-class wine and delectable cuisine. It’s impossible to sell Washington’s tourism and travel opportunities under a single
advertising campaign or sum up its attractions in one guidebook.
Unfortunately, persistent misconceptions about Washington still exist.
Even the world-famous Frommer’s travel guide addresses this by reassuring readers in its introduction, “Despite what you may have heard to the
contrary, there is more to Washington state than lattes, rain and
Microsoft. It is actually such a diverse state that it could have served as a
model for the song ‘America the Beautiful.’”
Frommer’s begs readers to stretch their minds and think beyond beverages, precipitation and technology. If readers own the guide, they’ll likely turn the page. However, if they’re like many of us, they’ll probably leave
the guide at the bookstore, go home and log on to the Internet. From the
comfort of their home, they can explore our state online and make plans
— as Washington’s official marketing campaign now advises — to
“Experience Washington.”
24 WASHINGTONBUSINESS
Growing revenue and opportunities
Last year, travelers experiencing Washington spent $14.8 billion on
lodging, food services, recreation, transportation, and retail purchases—
what is considered “total direct travel spending.” This spending contributed more than $975 million to local and state tax revenues. While
visitors from outside the state contributed about $250 in taxes for each
Washington household, residents traveling within the state contributed
around $140—a combined benefit of $390. If statistical projections hold
true these amounts will continue to grow, as the steady growth of travel
spending in Washington has exceeded the national average since 2002.
As tourism increases, so do statewide business and employment
opportunities. While half of the 149,800 jobs supported by travel spending are in urban areas, many significant opportunities extend into nonurban counties where there are a greater number of travel-generated jobs
in relation to total employment. In fact, while jobs in the urban counties
of Washington account for only slightly more than 3 percent of total
employment, travel-related jobs in some non-urban counties—like
Skamania, Pacific, San Juan, Grays Harbor, Jefferson and Chelan—
account for an impressive 10 percent of
employment supported by travel spending.
Tourism is also great for small businesses
with less than 50 employees. These businesses,
which are often unique to their region (like
Seattle’s Ye Olde Curiosity Shop) depend
almost entirely on tourists as customers.
Likewise, tourists experiencing Washington
depend heavily on them. Small businesses
serving anything from culinary experiences to
river-rafting tours constitute about 85 percent
of all businesses serving tourists in the state.
Without both parties—the small businesses and the tourists—tourism as Washington
knows it would cease to exist. This would have
devastating consequences for Washington’s
ambitious proprietors, who account for one in
eight travel industry workers.
Compared to other major Washington
industries like manufacturing and software,
the tourism industry also employs an unusually large number of women—especially in the
areas of accommodations, food and beverage
service, retail trade and travel arrangement—
where women constitute more than half of the
employees. In those and other areas, minorities make up a remarkable 29 percent of the
overall labor force.
Don’t forget that first summer job. Another
benefit of the tourism industry is that it
employs many young and inexperienced workers in part-time, entry-level and seasonal jobs.
This gives many the opportunity to work
around school schedules and gain on-the-job
experience that brings long-term benefits to
them and, in a larger sense, Washington’s
workforce.
Legislative support
Recognizing the benefits of the tourism
industry, Democratic Gov. Chris Gregoire
revealed a plan in early 2007 for the reformation of the Tourism Development Advisory
Committee. She also recommended increased
funding for the Tourism Division of the
Washington State Department of Community,
Trade and Economic Development, which had
a near rock-bottom budget of around $3.6 million from 2006-2007. Only Iowa, North
Dakota, Delaware and Rhode Island had lower
budgets in that period. While it’s normal for
budget differences to exist between states—for
instance, Hawaii’s budget is more than $70
million while Rhode Island’s is a paltry $1.5
million—Washington’s program was seriously
underfunded.
Gregoire recommended leveraging additional regional spending by working in concert
with Montana, Idaho, Oregon and British
Columbia on tourism promotion.
She also emphasized making a special effort
to promote eco- and geo-tourism.
“Washington’s abundant environmental assets
Museum of Glass, Tacoma
MARCH/APRIL 2008 25
Seattle Space Needle
are a significant pull for tourists from other
states and other countries,” Gregoire said. She
advised that the state’s tourism strategy “make
the most of our unique cultures, geography,
agriculture, wildlife and wild water.” Her final
recommendation related to capitalizing on the
opportunities presented by the proximity of the
2010 Winter Olympics in Vancouver, B.C.
Ground-breaking legislation
Gregoire’s recommendations preceded passage of SHB 1276, the governor-sponsored
“Tourism Bill,” in April 2007. This bill was
“ground-breaking,” according to the new managing director of the Washington Tourism
Division, Marsha Massey, who speculates that
tourism legislation like this wasn’t passed earlier because previous administration didn’t see
the value of tourism to the degree that they do
now. This wasn’t due to lack of appreciation for
the state, but quite the opposite, according to
Massey. In fact, some people even thought,
“Washington is so great that we don’t need to
market it!” she said.
Once enacted, the Tourism Bill eliminated
rather than reformed TDAC and created the
Washington Tourism Commission. This 19member commission includes four legislators,
one from each of the major legislative caucuses, as well as 15 governor-appointed members.
Since their first meeting in September, the
commission has met a number of times and
embarked on several efforts mandated in the
Tourism Bill, including a biennial marketing
plan and six-year strategic plan that should be
finished early this year. In the meantime, they
have contracted with private research and marketing organizations and hired several new staff
members, including Massey, who served as
interim director though most of 2007. When
she started there, her background was “100
percent travel and 0 percent state government,”
said Massey. Over the years, she has worked for
the Seattle Convention and Visitor’s Bureau,
Westin Hotels and Travelclick, an international business-to-business consulting firm.
As managing director, Massey openly recognizes that businesses look to the state for direction on how to attract tourism dollars. “That
was missing in the past,” she said. However,
through recent legislation—including statewide strategic planning input sessions by CTED
and the cohesive, grassroots efforts of many—
Massey sees the face of Washington tourism
changing already. Rallying on the local level has
increased as destination marketing organizations, or DMOs, are “no longer working in isolation and communities are advocating the
entire state, not just their corner,” she said.
Customer service is vital
One of the main incentives for increased
regional efforts in Washington is preparation
26 WASHINGTONBUSINESS
for the upcoming 2010 Winter Olympics and
Paralympics in Vancouver, B.C. These events
up the ante for destinations along the I-5 corridor close to the United States-Canada border.
But efforts by DMOs certainly don’t stop there.
Many other areas are actively developing and
enhancing their markets—some are even working in concert with those preparing for 2010.
While it may be easy to overlook the necessity of “soft skills,” exceptional customer service is a fundamental part of tourism. Chris
Erickson, director of tourism services for Walla
Walla Tourism, said, “It’s like the old saying
goes: If people have a great experience, they’ll
tell 10 people. If they have a bad experience,
they’ll tell 20.” Naturally, Walla Walla and
other areas would rather acquire 10 new
tourists than turn away 20—especially since
their area is seeing a steady increase in finedining establishments and tasting rooms that
cater to wine connoisseurs. “You can have a
great product—serve great food—but if your
customer service is lacking it colors everything,” said WWT’s president and CEO
Michael Davidson. “As tourism grows, we
need to think about how we treat people,
because that’s what people remember.”
With that in mind, WWT sought out
SuperHost—a rigorous customer service program that was originally designed and administered by Tourism British Columbia for Expo
‘86. Over the years, its popularity and reputation have caught the attention of states like
Montana and other countries, like New
Zealand, who have adapted it to their tourism
programs. By time WWT found it, the
SuperHost program was already under consideration by the Snohomish County Tourism and
Visitor’s Bureau, whose efforts to prepare for
2010 have proved to be way ahead of the game.
Soon, the two DMOs began working together
to bring SuperHost to Washington. “Because
SuperHost is not only excellent, but right at our
front door—up in B.C.—we felt it was the
right program for us,” Erickson said.
SuperHost can only be licensed through a
government agency, so after reviewing a few
different options, the pair reached out to the
State Board of Community and Technical
Colleges. This led to a collaborative effort
involving both of the DMOs as well as Walla
Walla Community College and Everett
Community College, where customer service
classes began last month. Davidson anticipates
that, over time, many other DMOs and community colleges will get involved in the program. “We’ve already seen a lot of interest
from around the state,” he said.
Davidson’s 20-plus years of tourism experience was largely informed by his time working
for DMOs on the East Coast, where he claims
to have learned “about 95 percent” of what he
knows about tourism from the state-run “I
MARCH/APRIL 2008 27
Washington Wine Country
Love New York” program. Not only did that program provide excellent
customer service training for people in the tourism industry, but it also
understood the importance of working well with DMOs. “That is the key
component,” said Davidson, who sees tourism as a pyramid with the state
at the top and the different areas, destinations, hotels and restaurants following respectively. “The state has to realize that we—the DMOs—are
their key clients, not the individual tourists.” In other words, it’s the
state’s job to get the people to the DMOs and then the DMOs will take
it to the next level. “We don’t need the state to do everything—we just
need them to do what they do well.”
Moving in the right direction
Over the past year, the Washington State Tourism Division has pulled
together a library of shared photos shot all over the state during all four seasons. This collection of images is not only a valuable resource, but also “tangible evidence of Washington’s communities working together,” according
to Massey. The tourism office has also worked with media partners to offer
a cooperative print advertising program for spring 2008, which allows businesses involved in the Washington tourism industry to purchase reducedrate ads alongside the “Experience Washington” brand advertisements in
magazines like Sunset or National Geographic Adventure.
The first four colorful advertisements, which premiered early this year,
feature Mount St. Helens, The Museum of Flight, Tacoma’s Museum of
Glass, and Washington’s Wine Country. While CTED isn’t yet revealing
what the next marketing effort will be, chances are that it will include
watchable wildlife or eco-tourism, subjects aimed squarely at so-called
28 WASHINGTONBUSINESS
“urban naturalists.” Though they might sound downright silly at first,
these buzzwords describe Washington’s unique attractions and their
appeal to those who enjoy both the great indoors and the great outdoors.
The Tourism Division has also developed the Washington State
Tourism WebLink Program, which provides all tourism-related businesses the opportunity to be linked on the state tourism Web site,
www.experiencewa.com. Subscribers can choose between regular and
premium memberships, or even add different marketing features to their
Web pages. Over time, the Tourism Division plans to do more in the
way of developing competitive grants, defining the private match, and
tightening relations with more DMOs, nonprofit entities and Native
American tribes, according to Massey. Once their marketing and strategic plans are ready, she anticipates that the tourism office will know
more about how to proceed.
“People often don’t realize it, but Washington is competing globally
now. Costa Rica is our greatest competition for rainforest tourism,”
Massey said. “So when someone in another state is online trying to chose
between Washington or South America, we must have a strong enough
presence to bring them our way.”
Thanks to advances in technology, legislation and the cohesive efforts
of many, Washington tourism is changing and growing. While the 113year-old lyrics to “America the Beautiful” still apply to our state, the
words “challenging” and “opportunity” must be applied to the business of
tourism. Fortunately, with the diversity of our cities and landscape and
the ambitions of many, Washington’s tourism industry can look forward
to endless possibilities.
MARCH/APRIL 2008 29
Tourism
Less
than
2
until
2010
When will Washington get into the game?
by Danielle Rhéaume
Photo by Brad Kasselman/CoastPhoto.com
I
n less than two years, the world will watch a celebrated Canadian light the Olympic Cauldron.
Nobody knows yet who the torchbearer will be. It could be Canada’s favorite environmentalist,
David Suzuki. It might even be the mother of cancer survivor and amputee Terry Fox, who led the
Marathon of Hope across Canada on a prosthetic leg in 1980. It’s still too soon to tell.
It is time however, for Washington’s business owners to determine is how they will feel in that
moment. Will the torch ignite excitement over lucrative dreams realized, or create heartburn for
those who let opportunities pass them by?
Instead of reaching for the antacids now, businesses of all sizes should look to examples set by
public and private leaders for insight, opportunities and guidelines. By doing so, business owners
stand to make educated decisions leading to wise investments and an Olympic-sized legacy that
boosts Washington’s economy for years to come.
Vancouver wins the bid
Back in 2002, when Vancouver won the bid for the 2010 Olympic and Paralympic Winter Games,
former Democratic Gov. Gary Locke issued a press release calling it a “win-win” for Vancouver and
for Washington. He predicted that trade, tourism and economic development opportunities associated with 2010 would be far-reaching and that the large influx of visitors traveling through
Washington en route to the games would create major impacts in security, transportation and other
infrastructure. The following year, he launched the six-member 2010 Task Force—co-chaired by U.S.
Rep. Rick Larsen and former transportation secretary and congressman Sid Morrison—through the
Washington State Department of Community, Trade and Economic Development.
30 WASHINGTONBUSINESS
Following her inauguration in 2005,
Democratic Gov. Chris Gregoire continued
support for the task force, describing the 2010
Olympics as “a platform for ongoing dialogue
with our Canadian neighbors on issues of
mutual interest, including border crossing and
security, transportation, international trade,
and workforce development.” CTED started a
newsletter designed to connect businesses and
communities with 2010 opportunities. The
publication listed special events, workshops and
news about preparations for the Olympics and
doing business in Canada. They also launched a
2010 Olympics Web site, which featured related news and links to important resources.
“There was very mixed interest from the
business community at that time,” said Mary
Rose, who was program manager for CTED’s
2010 effort at that time. “Some were very
excited about the opportunities around 2010,
while some never believed they existed.”
Only a few seek 2010 deals
As Washington’s “ongoing-dialogue” with
our Canadian neighbors continued into 2006,
business insiders wondered when Washington
would start investing in 2010-related opportunities. That February, the Puget Sound Business
Journal even published an article titled “Only
a few seek 2010 deals.” This article revealed
how, even though The 2010 Commerce
Centre—a business opportunity Web site created by the BC Olympic and Paralympic
Winter Games Secretariat—had already posted nearly 340 business opportunities over the
past year, few of the opportunities were pursued by Washington’s businesses. This was
happening even though the Commerce
Centre, which was facing shortages in labor
and materials, had encouraged them to apply.
In a guest editorial for the Snohomish County
Business Journal a month later, AWB President
Don Brunell urged businesses of all sizes to get
involved, while also asking state officials to
help businesses identify opportunities and connect with Canadian partners. Though he
acknowledged CTED’s efforts in the article, he
emphasized that more needed to be done “to
provide specific and timely information to
interested business owners here in our state.”
That June—about three years into their mission—the 2010 Task Force released a 10-page
impact study echoing many of Brunell’s recommendations. This report also noted the
importance of providing training, outreach and
education programs to businesses and commercial interests throughout the state while
also assisting communities in attracting teams
for training, and integrating 2010 opportunities into all tourism promotion plans. They
also underscored the importance of relating
business opportunities through e-mails and the
state’s “2010 information clearinghouse.”
AWB
Legislative Day
& Reception 2008
Thank you to event sponsors who helped make
our annual Legislative Day & Reception a
resounding success:
Diamond
Alcoa Primary Metals
AWB Agency Services
Baldwin Resource Group Inc.
Bluwater Consulting
BP
Columbia Vista Corp.
Coors Brewing Co.
Lane Powell PC
Medco Health Solutions
Microsoft
Premera Blue Cross
Regence BlueShield
Risk Finance & Investment Corp.
Silicon & Solar LLC
Sterling Savings Bank
The Boeing Co.
TransAlta US Operations
Tupper Mack Brower PLLC
Union Pacific Railroad Co.
Wal-Mart
Western States Petroleum Association
Kinross Gold USA Inc.
Monsanto Co.
Northwest Food Processors Association
PacifiCorp
Puget Sound Energy
Qwest
Recreational Gaming Association of WA
SAFECO Corp.
SCS Refrigerated SVS
Simpson Investment Co.
Sprint-Nextel
State Farm Insurance Co.
WA Forest Protection Association
WA Realtors
Washington Manufacturing Services
Weyerhaeuser Co.
Independent Colleges of Washington
PEMCO Financial Services
Sakuma Bros Holding Co.
WA Health Care Association
WashingtonVotes.org
Evergreen Memorial Garden Cemetery
Hobart Machined Products Inc.
Millennia Public Affairs Inc.
Mountain View Funeral Home
NuChem Industries
Patrick & Susan Dunn
Saint Martin’s University
Skils’kin
The Acme Service Group
Venture Bank
Gold
Anheuser Busch
Carney Badley Spellman PS
CenturyTel
Christopher K. Robinson PC
Costco Wholesale
EMBARQ
GM Nameplate Inc.
Institute for Workforce Development
Silver
AAA Washington
ConocoPhillips Co.
Gano & Associates
Bronze
Acme Concrete Paving
Aldercreek Vineyards
Bethlehem Construction Inc.
Bogard & Johnson LLC
Buse Timber & Sales Inc.
Dick’s Drive-Ins Ltd. LP
We also thank Gov. Gregoire and the following legislative panelists who took
time out of their busy schedules to speak with members on important issues,
including health care, transportation, land use and paid family leave:
Rep. Doug Ericksen
Rep. Judy Clibborn
Rep. Deborah Eddy
Rep. Lynn Schindler
Rep. Bill Hinkle
Rep. Eileen Cody
Rep. Cary Condotta
Rep. Steve Conway
Sen. Mary Margaret Haugen
Sen. Cheryl Pflug
Sen. Karen Keiser
Sen. Janéa Holmquist
MARCH/APRIL 2008 31
IOC President Jacques Rogge and other
Canadian Olympic officials tour the speed
skating oval at the University of British
Columbia hockey arena in late February.
Photo by Kim Stallknecht
and reach people we can’t reach—it’s their job to push the introduction.”
These recommendations were likely influenced by a survey conducted
said one DMO director.
by The Gallatin Group, a major public relations firm hired by CTED.
On Sept. 28, 2007, the 2010 Task Force forwarded a letter to the govThe results of this survey—which were deleted from the 2010 Task
ernor recognizing their accomplishments over the past four years and outForce’s final report—revealed that 82 percent of the Washington comlining how four subcommittees had been formed to work on key areas for
munity and business leaders surveyed by Gallatin “were not aware of the
2010. They were tourism (which
2010 Commerce Centre Web site listappears to have only been active for a
ing all contracting opportunities conshort time in 2006), economic developnected with the games.”
ment, transportation and security. The
Also deleted from the report was a
letter then mentioned other ongoing
key summary stating, “There are two
efforts and stated that the task force
major impediments to Washington
would remain on call but would no
state business taking advantage of the
longer meet regularly.
contracting and subcontracting opporBy this time, legislation had already
tunities presented by the 2010 Winter
Idaho’s plan included developing and marketing
passed that almost doubled Washington’s
Games: First and foremost, lack of
Olympic training sites; staging events and exhibitourism budget, raising it to $6.8 milawareness of the opportunities themtions; marketing the “scenic route” to and from the
lion. The increase took Washington
selves. Second, lack of experience or
games through Idaho; acquiring corporate sponfrom near rock-bottom in the nation to
knowledge in doing business across the
sorship; promoting Idaho as a base camp for the
around the national average in spending
United States-Canada border.”
games; promoting Idaho to international tour
on tourism promotion. It also led to a
Even though it was time to sound an
operators; attracting Utah residents fleeing the
public-private partnership model and a
alarm to awaken Washington businesses,
chaos of the games; raising awareness of Idaho
governor-appointed tourism commiscommunications efforts only lasted
through media hosting and press releases; develsion. The Tourism Division was then
about a year before halting completely
oping a travel information center in Salt Lake City;
able to secure Marsha Massey as their
when Rose’s temporary program managand developing a “Buy Idaho” campaign.
managing director. They also hired comer position ended and she departed for
munications professional Kristin
another job. Due to limited funding and
Jacobson, a much-needed new public
other staff changes, the tourism division
relations and special projects manager, to
was “in a state of flux at that time,”
serve as the point person for tourism efforts around the Olympics.
according to Marsha Massey, then-interim director. This state of flux cre“We want businesses to know how to take advantage of the 2010
ated a hardship for many of Washington’s destination-marketing organigames being so close,” said Jacobsen. “We hate the thought of businesses
zations (DMOs) that depend on the state to create opportunities they can’t
missing out on important opportunities.”
create on their own. “They can afford to go to markets that we can’t afford
seizing the
opportunities
32 WASHINGTONBUSINESS
Key players moving forward
2010 winter olympics
connecting online
SnoGold 2010
www1.co.snohomish.wa.us/County_Services/SnoGold2010
Pacific Northwest Economic Region
www.pnwer.org
Washington State Tourism
www.experiencewa.com
2010 Commerce Centre
www.2010commercecentre.com
TerraNW: 2010 In Sight
www.terranw.org
Photo by D. McColm/VANOC
When Salt Lake City won the bid for the
2002 Winter Olympics in 1995, neighboring
Idaho jumped to leverage Olympic opportunities. “Idaho’s efforts began early and moved
quickly. They launched a plan within five years
of the games and created a committee (which
met quarterly),”according to a Dean Runyan
report distributed to CTED in August 2006.
Idaho saw the Olympics in Salt Lake City as
“the most significant media event to occur in
the Pacific Northwest in our lifetime,” according to Carl Wilgus, who was Idaho’s
Department of Commerce administrator at
that time. It was an opportunity for 3.5 million people to “learn something about Idaho,”
he said.
Idaho’s successful 10-point strategic plan—
a plan that many of Washington’s business and
community leaders have now adopted for their
efforts around 2010—led to a reported $100million economic benefit to the state.
It’s important to note that Idaho had a
modest tourism budget of only $3,751,804
the year Utah won the bid.
According to IDC Tourism Director Karen
Ballard (who worked for IDC in a different
position at that time), “Synergies that we never
could have anticipated happened around the
2002 Olympics.” These synergies, according to
Ballard, drove their efforts as they implemented their strategic plan, which is still guiding
them today. In fact, if Washington doesn’t step
up their efforts to bring Olympic teams to the
state for training, Idaho could easily give
Washington a run for their money in the race
for Olympic opportunities and media exposure
leading up to 2010. And so could Oregon.
Earlier this year, the governors of both
Idaho and Oregon sent letters to international
winter sports federations inviting teams to
train in their states for the 2010 Olympics,
according to Ian Burkheimer, the 2010
tourism program manager for PNWER. So
far, Washington has not. Idaho brought in 16
teams to train prior to the 2002 Winter
Games. Their success was highlighted in the
Dean Runyan report delivered to CTED back
in 2006.
Burkheimer, who has already been in touch
with more than 40 international teams about
training and acclimatizing in the Pacific
Northwest, estimates that teams may spend
between $20,000 and $100,000 on hotels,
food, lift tickets and other expenses for a twoweek visit. In addition, Washington could
generate even more revenue from the increased
media exposure.
As a public-private partnership, PNWER’s
2010 Olympics/Tourism Division is dedicated
to increasing regional economic development
around the games. Their geographic scope
includes British Columbia, Alberta, Yukon,
A bobsleigh performs a test run at the Whistler Sliding Center as preparations for the
2010 Winter Olympic Games continue.
MARCH/APRIL 2008 33
Photo by D. McColm/VANOC
Olympic officials walk the bobsleigh run at the Whistler Sliding Center.
34 WASHINGTONBUSINESS
Alaska, Washington, Oregon, Idaho and
Montana, where they act as an information
conduit and procurement coordinator
between the states and provinces, as well as relevant community and business organizations.
Because of their unique insight and experience, they are in an ideal position to provide
resources to businesses interested in procurement opportunities in British Columbia—one
of Washington’s strongest and most overlooked trade allies.
PNWER also oversees TerraNW: 2010 In
Sight. This program connects “national teams
and elite athletes with sustainable training,
competition and marketing opportunities”
within the Pacific Northwest. In order to further their efforts, TerraNW launched an interactive and detailed directory of training venues in this region. This online directory is
destined to become an invaluable resource for
sports federations, as well as business owners
and media representatives leading up to and
following 2010.
Another ambitious effort within Washington
is SnoGold, the communications hub for 2010
information in Snohomish County. This grassroots effort, shaped by Idaho’s strategic plan and
initiated by County Executive Aaron Reardon,
is already marketing Snohomish County as the
“Gateway to the Games.” Their far-reaching
and impressive efforts include connecting with
national and international 2010 travel-related
companies, marketing their area to Canadian
residents hoping to flee B.C. during the games,
arranging for an Olympic torch visit and
improving local customer service.
As other regions and businesses slowly awaken to 2010 related opportunities, SnoGold will
have already met one of their impressive goals
this October when the 2008 Skate America
Championships come to Everett, bringing an
estimated $2.6 million to their county. “We
want television viewers to see our area and say,
‘Hey, I want to go there!’ or, “That’s a great
venue—I should stage an event there,’” said
Amy Spain, executive director of the Snohomish
County Tourism and Visitors Bureau. With 4.3
million people watching, Snohomish County
couldn’t ask for a better opportunity to make a
lasting, positive and welcoming first impression.
If business and destination marketing
toward 2010 were an Olympic competition,
SnoGold and some other key players certainly
would have a head start on winning the gold
medal. Even so, there is still plenty of room for
the rest of Washington’s business owners to get
in the race and seize the far-reaching opportunities that only an event of this magnitude can
present. If they do, there is no doubt that
Washington’s business owners will join the rest
of the world and feel nothing but sheer excitement in 2010 when the cauldron is lit and the
games begin.
Policy
Enhanced ID:
Coming to a border
crossing near you
T
hose planning a two-nation vacation
between the United States and Canada
should take note: The Washington State
Department of Licensing is now offering an
“enhanced driver’s license,” which serves as
both a driver’s license and a travel document
that will get you across the border.
The United States-Canada border has not
been the same since 9/11. Long lines and more
thorough ID checks replaced an easygoing
atmosphere where oral declarations of citizenship and non-photo documents like voter registration cards were sufficient for travelers to
cross the line that separates Washington from
its neighbor to the north.
In 2004, Congress passed the voluminous
Intelligence Reform and Terrorism Prevention
Act in response to recommendations from the
9/11 Commission. One section of the bill,
known as the Western Hemisphere Travel
Initiative, required U.S. and Canadian citizens
to carry passports or other documents deemed
secure by the U.S. Department of Homeland
Security no later than Dec. 31, 2007.
That deadline has come and gone, and passports are still not needed to cross the United
States-Canada land border, though they are
required to fly between the two countries.
Currently, Americans can cross the border with
a valid U.S. driver’s license plus an official birth
certificate, but the days when these documents
will get you to into Canada and back are numbered. Homeland Security still plans to enforce
the law requiring passports or other secure documents for border crossing as early as 2009.
Washington and other states on the northern border, who always enjoyed close ties and
trade links with Canada, reacted to the new
law with dismay and alarm. About one-third
of all Americans, and only slightly more
Canadians, carry passports. Officials feared
that if passports were required for border
crossings the number of short, spur-of-themoment trips that characterized much of the
cross-border traffic would greatly decrease.
Trade and tourism concerns
“In 2006, Gov. Gregoire met with British
Columbia Premier Gordon Campbell,” said
DOL spokesperson Gigi Zenk. “They were
talking about the upcoming 2010 Vancouver
Olympics and how the Western Hemisphere
Travel Initiative might affect trade and
tourism across the border.”
The idea for a driver’s license that would also
serve as a citizenship document for border crossing was born out of the discussions between
Campbell and Gregoire at this meeting.
In 2007, Homeland Security approved the
idea, first as a pilot project and later as fullscale program. The Legislature quickly
responded by passing a bill to allow DOL to
produce the enhanced driver’s license, which
finally made its debut in January 2008.
The license is unlike any other driver’s
license ever seen in the United States.
Embedded in the card is a radio frequency
identification chip, as required by Homeland
Security.
“There is no personal information on the
chip,” Zenk said. “It is not constantly booming out any kind of information. What it does
is transmit a unique number when you
approach the border and a reader remotely
accesses it. Your picture and other information
then appear on the border guard’s computer
screen after the number keys the computer system to retrieve the information from our database. The border patrol will then compare you
to your picture before letting you in. It’s a
quicker way to expedite people through the
border.”
Combat identity theft
Zenk believes the licenses will help combat
identity theft—a major problem in Washington
state —because they are more difficult to reproduce than standard licenses. Additionally, DOL
uses a biometric matching system, which measures physical characteristics, when registering
enhanced driver’s license applicants.
by Paul Schlienz
“We want to make sure there isn’t anyone
out there using your name,” said Zenk. “We’ll
run your picture against our database of digital pictures, using facial recognition biometric
technology in a one-to-many search to make
sure there’s only one record for you.”
Those who are interested in an enhanced
driver’s license need to make an appointment
at one of 11 DOL offices equipped to handle
applications for this new document.
“The reason we have only 11 offices is
because we started out as a pilot, but we hope
to expand as demand increases,” said Zenk.
Enhanced drivers license applicants must
show proof of U.S. citizenship with a passport
or official birth certificate. In addition, they
must demonstrate residency in Washington,
which can be established by showing evidence
like utility bills.
The enhanced driver’s license costs $45—
more than a standard driver’s license, but considerably less than a U.S. passport.
According to Zenk, Arizona, New York and
Vermont, following Washington’s lead, are
planning their own enhanced driver’s license
programs. In the meantime, British Columbia
is issuing a similarly enhanced driver’s license
through a much smaller pilot project.
“We’re thrilled with the reception we’ve gotten for this license,” Zenk concluded. “We
have approximately 10,000 appointments on
the books right now. The license is cost effective, it’s convenient, and—unlike a passport
—it fits in your wallet. It gives you a lot in one
document.”
For the location of the nearest
Department of Licensing office equipped
to handle applications for the enhanced
driver’s license, call (866) 520-4365 or
visit www.dol.wa.gov/driverslicense and
click on Enhanced Driver License.
MARCH/APRIL 2008 35
Industry Profile
Washington’s convention industr
by Paul Schlienz
C
onventions are big business in Washington. Throughout the state,
communities large and small are discovering the many advantages of
encouraging this growing industry.
The statistics are impressive. In Seattle alone, conventions pumped
$4.75 billion in revenue and about $420 million in taxes into the local
economy—supporting 62,000 jobs in the process—during 2007.
Seattle, however, is not Washington’s only player in the convention game.
Across the state, the convention industry brought around $739 million
in revenues and $55 million in taxes to Spokane. Meanwhile, other communities including Tacoma, Vancouver, Bellevue, Lynnwood, Everett,
Yakima and the Tri-Cities, have invested in convention facilities and are
reaping the benefits.
“There is a great spirit of camaraderie and partnership among
Washington’s convention and visitor bureaus,” said Harry Sladich, president and CEO of the Spokane Convention and Visitors Bureau. “Each
city has its own niche, and we all want each other to win. If we can’t get
a convention in Spokane, but it goes to the Tri-Cities or Yakima or Seattle
or Tacoma, then great! If we can’t get it, we want them to get it. Why let
a convention go someplace else when it can come to Washington?”
Seattle attracts the largest groups of conventioneers. Its close proximity to Boeing, Microsoft, the biotech industry, and the University of
Washington makes it attractive to visitors from throughout the United
States and from foreign countries. An excellent convention center, an
abundance of hotel rooms and the far-reaching transportation connections of Sea-Tac International Airport sweeten the deal.
36 WASHINGTONBUSINESS
Tri-Cities draws from Puget Sound
In contrast to Seattle, the Tri-Cities, which boasts two highly rated
venues—Kennewick’s Three Rivers Convention Center and Pasco’s
Trade, Recreation and Agricultural Center—tends to attract conventions
from in-state groups, including Kiwanis and Rotary, and many agricultural organizations ranging from asparagus growers to zucchini farmers,
whose members are primarily located in eastern Washington. Due to the
presence of Pacific Northwest National Laboratories, the Tri-Cities also
attracts scientific groups.
Puget Sound, however, is the region from which the Tri-Cities get its
largest number of conventions and tourists.
“Puget Sound is the area where we place TV advertising,” said Kris
Watkins, president and CEO of the Tri-Cities Convention and Visitors
Bureau. “It’s a three-and-a-half hour drive from Seattle to the Tri-Cities.
You don’t have to deal with the hassles of airplanes and airports. When it
might be a little rainy on the west side of the mountains, we’ve got 300
days of sunshine going for us.”
In addition, the Tri-Cities’ central location within Washington’s wine
region provides unique opportunities for conventions since some of the
larger wineries can handle opening night receptions before the main business meetings.
“Once we bring in convention planners to the Tri-Cities for a familiarization tour, about nine out of 10 times they’ll book their conventions
with us,” said Watkins.
Much like the Tri-Cities, Spokane also has a history of attracting
regional groups like the Washington Association of School Principals and
the Washington School Nutrition Association.
ry growing by leaps and bounds
The nation comes to Spokane
Two years ago, however, Spokane expanded its convention center and is
now attracting national groups, like the American Congress of Surveying
and Mapping and the National Collegiate Athletic Association.
Conventions, according to Sladich, are a great way to bring in visitors.
“Spokane is not as well known as a destination as some other places,”
said Sladich. “It’s somewhat of risk for taking a vacation, but people are
curious about Spokane and will certainly come here for a conference.
When they get here, it blows them away. We get a lot of word of mouth,
a lot of repeat business and a lot of goodwill when people get here and
say ‘Wow! What a beautiful area!’”
Although it’s on the other side of the state, Spokane benefits greatly
from Seattle’s success as a convention site and tourist destination.
“We’re very pleased that our friends in Seattle have gotten direct flights
from British Airways, Air France and Lufthansa,” said Sladich. “It’s a 45minute hop to Spokane from Seattle by air. We’re being added to a lot of
itineraries because the Europeans are finding that Spokane is a great value
and it’s a part of the country that they’re curious about.”
Convention centers boost downtowns
Another benefit of the convention industry is the positive affect that
convention facilities can have in the revitalization of the cities where they
are located. A case in point is Vancouver’s Hilton Vancouver Convention
Center, which is now one of the focal points of Vancouver’s rapidly
improving downtown area.
The Tri-Cities have also experienced positive changes since the Three
Rivers Convention Center opened.
“The convention center profoundly affected the real estate around it,”
Watkins said. “You take a look at the restaurants and retailers that have
come into the Tri-Cities region. They’re all within a couple of miles radius
from the convention center. It definitely has encouraged businesses that
raise the quality of life to come into our community.”
The Everett Events Center brings new entertainment and recreation
opportunities to local residents in addition to hosting conventions and
helping with the effort to revitalize the city’s downtown area
“The Everett Events Center is a multi-purpose building where you can
not only hold conventions and meetings, but also sports events and entertainment,” observed Don Welsh, president and CEO of the Seattle
Convention and Visitors Bureau. “I think there’s probably enough
demand for quite a few cities to make a facility like that one work.”
“You can’t lose with the convention industry,” said Sladich. “It’s a very
clean industry where you bring in people for a conference who spend huge
sums of money for their lodging and their dining and whatnot. Conventions
have the immediate impact of delegates spending dollars, but it also exposes individuals who might not have been to your city to the potential of them
really liking it and returning, either for another trip or as a future resident.”
Sladich compliments the state for establishing a tourism commission
and placing more emphasis and money into attracting visitors.
“It’s critical for the state to recognize tourism,” Sladich concluded. “The
governor added about $4 million to our budget, but we’re still 40th in the
nation for spending on marketing for tourism. Still, it really helps when
I’m going to approach a customer about coming to Spokane and the state’s
already been pounding Washington into their heads through advertising.
If there’s none of that, it’s doubly hard to penetrate a market.”
MARCH/APRIL 2008 37
Tourism
Mount Rainier National Park
by Daniel Brunell
I
t was really no surprise that an image of Mount Rainier was chosen for
the back of the United States Mint’s series of 50 state quarters. As an
iconic symbol of Washington state, it has no equal.
The Space Needle, apples, salmon, overpriced coffee; all have come to
be associated with our state, but the big majestic mountain is all you really need to know you’re here. Even when hidden by clouds or distance,
you’re still reminded of the 14,410-foot behemoth by countless posters,
screen saver, magazine covers, nightly local news backdrops, and your
best friend’s hiking photos. In addition to its symbolism and good looks,
Mount Rainier brings something more to the state: Money.
Mount Rainier and the national park that bears its name bring millions
of dollars into the local and state economies.
According to a Michigan State University study, more than 6.5 million
people visited Washington’s 11 national parks, monuments and historical
sites in 2006. These visitors spent an estimated $207 million in and
around the national parks in Washington, creating about 5,300 jobs and
$133 million in wages. Not bad.
Mount Rainier National Park is responsible for a big chunk of that.
Every year, 2 million people visit the park. According to a recent economic study that focused exclusively on Mount Rainier National Park,
in a single year visitors spent $29.8 million within a 30-mile radius of
the park. For communities like Ashford, Elbe, Eatonville, and
Enumclaw, tourism dollars are life. To get a slice of the tourism pie, these
communities are constantly looking for new ways to bring tourists into
their towns.
38 WASHINGTONBUSINESS
“Between the park in the summertime and Crystal Mountain in the
winter, it really is a jewel in our backyard,” said Cathy Rigg, executive
director of the Enumclaw Chamber of Commerce. “One of the keys is
drawing people to stop in town. One of the ways we’re doing this is by
opening a new welcome and interpretation center in 2009,” she said.
“With these and our many service and support businesses, we hope to
continue to be the gateway to the mountain.”
The importance of the park to these nearby communities would
become even more apparent after a winter storm in 2006.
The winter storm of 2006
On Nov. 6, 2006, a Pacific storm rolled into Mount Rainier National
Park, dumping 18 inches of rain in 36 hours. The inundation devastated
the park, turning streams and rivers into raging torrents. As the rainsoaked ground began to move, massive landslides of mud and rock were
triggered. The damage to the park and its infrastructure was immense.
Nearly every road into the park was severely damaged. Sunshine Point
Campground lost more than five acres, carried away in the swollen
Nisqually River. The road to the Ipsut Campground was severely damaged
and may never reopen. More than 28 remote footbridges were knocked
out, along with miles of trails that are now impassible because of landslides.
Critical infrastructure was disrupted at Longmire, the park’s administrative headquarters, when Kautz Creek moved 60 feet, nearly knocking out
the emergency operations center. More than a year later, the park is still
recovering from the disaster. Nature did what nobody thought possible:
close the park for six months of heavy maintenance and repairs.
Sustaining economies and rebuilding the park
The damage done by the storm was shocking to many, but the community and government responded quickly. One of the first to take
action was Congressman Norm Dicks, D-Wash. As chairman of the
House Appropriations Subcommittee on Interior, Environment and
Related Agencies, he made it a top priority to get emergency funding and
resources to the park. When Rep. Dicks and National Park Service
Director Mary Bomar went on an inspection tour of the park, they saw
massive destruction. Government resources poured into the park and the
repairs started within days.
It wasn’t just the government that took action to bring back Mount
Rainier National Park. In response to the disaster, a herd of businesses
and groups of every kind began organizing volunteers and donations to
get the park up and running. Businesses like Starbucks, Boeing, and
Wal-Mart sent work teams and financial support for the recovery effort
at Mount Rainier. Businesses from all over the state , along with student
and conservation groups, came to the park week after week to clean up
and rebuild.
They kept coming even after the park reopened. By the end of
September 2007, the numbers were staggering: More than 1,700 volunteers had donated more than 84,000 hours. The estimated value of this
volunteer effort was more than $1.5 million—nearly a 90-percent
increase over the previous year’s volunteerism!
“The outpouring from the community was amazing,” said Dave
Uberuaga, superintendent of Mount Rainier National Park. “We actually had to put someone on staff full-time to manage all of the volunteers
and donations that were coming into the park. The effort from a wide
variety of people was nothing like I’d seen before.”
While this effort was going on, people in the communities surrounding the park were nervous, to say the least. The park was their lifeblood
and they didn’t know what was going to happen next. To ease some of
these fears, the park’s administrators developed an outreach program to
keep the local residents up to date on the latest activities. They also
worked with these communities, especially Elbe and Ashford, to develop
alternative attractions to keep the tourists coming. This included guided
tours into the park to show the damage and a wide variety of festivals to
attract people to the region.
So, on May 5, 2007, there were a lot of deep breaths when Rep. Dicks
opened the gates to the renewed park. Though there was still much to be
done, the park was back in business.
A park for the next century
Even before the 2006 storm slammed into the park, things were changing at Mount Rainier National Park. The summer before, the long-awaited renovation of the 89-year-old Paradise Inn was unveiled to the public.
Across the parking lot, the new Henry M. Jackson Visitor Center is being
built to replace old one.
“It is a little-known fact that Mount Rainier National Park was the first
park whose long-term development was guided by a master plan,” said
Uberuaga. “The park has stuck to that plan to preserve the historic significance of the park itself. The reconstruction of the lodge and the
Henry M. Jackson Visitor Center are just part of this process.”
The Paradise Lodge is scheduled to reopen in May 2008, with the new
visitor center opening in the fall. Much-needed repairs, restorations and
upgrades are also being made at Sunrise, on the other side of the park.
These are just a few of the many projects underway, all designed to take
Mount Rainier National Park into the 21st century.
On March 2, 1898, Mount Rainier became the country’s fifth
national park. Despite storms, snow and floods, it continues as a testament to wonders of nature. With some elbow grease and TLC from
park employees and volunteers, it will continue to inspire awe for
generations to come.
MARCH/APRIL 2008 39
Made in Washington
LEARNING FROM
DISASTER
by Daniel Brunell
Lewis County farmland lies underwater in the aftermath of the December 2007 storm that caused the Chehalis River to rise nearly 30 feet.
O
n Dec. 3, 2007, a stormed careened into the Pacific Northwest.
Wind gusts exceeding 90 mph smashed into the coast for almost 36
hours. Almost a foot of rain drenched the region, causing massive flooding. Hardest hit was Lewis County, just south of Olympia, prompting
President Bush to issue a federal disaster declaration on Dec. 10.
Flooding in this area of the state is not uncommon. However, this
storm was worse than most. The Chehalis River rose nearly 30 feet, the
same level as the 1996 floods. In 1996, the floodwater rose gradually. This
time, it came in a surge, causing massive devastation. Now, nearly four
months later, residents of the area are still trying to put their lives back
together.
The agriculture industry was particularly hard hit. In Lewis, Grays
Harbor, and Pacific counties, more than 140 agricultural producers
reported losses or damage. Dairy and cattle herds were decimated, along
with other livestock. More than 1,000 head were reported lost.
In the aftermath of the storm, the agricultural community acted quickly. Land and equipment were covered in a thick layer of mud and debris
from the flood. Feedstocks were wiped out, so neighbors, government
officials and total strangers pulled together to feed livestock, mend fences
and buildings, and rescue surviving animals.
“The outpouring of support—not only from the state but the whole
of Washington’s agricultural community—is something that really makes
you feel good about this state,” said Valoria Loveland, director of the
Washington State Department of Agriculture. “The number of volunteers we have to help people and the donations to help people get back
on their feet is amazing.”
Hard road lies ahead
Despite all that’s been done to help Lewis County agriculture recover, many obstacles still lie ahead. The sheer mass of silt and downed
timber that was deposited in the open fields was something not seen
before in that area.
40 WASHINGTONBUSINESS
Brick-and-mortar businesses also suffered. Gas stations, drug stores,
supermarkets—even the local Wal-Mart—are still trying to recover. For
some, the odds are not good. Despite a cornucopia of federal assistance
and loan programs, experience shows that about 40 percent of small businesses that close due to a disaster will never re-open.
“What we are seeing most is the amount of paperwork and time it
takes to get the state and federal applications and loans filed,” said Jodi
Baker, vice president and director of communication for CentraliaChehalis Chamber of Commerce, in reference to complaints about the
federal assistance program. “Where people are getting frustrated is with
the amount of time it takes.”
Businesses come together and help
Among all the grief and misery are some amazing success stories. In the
wake of such an event, businesses and individuals forget rivalries and
come together to help those in need. Whether it’s helping dig out the
mud in a warehouse, providing generators to a business that needs it, or
providing a temporary home to a family who lost everything, these
uncommon stories of compassion become commonplace when a community pulls together in time of need.
The Wal-Mart store in Chehalis was one of the fortunate businesses that
were able to quickly recover quickly. Instead of breathing a sigh of relief and
sitting back, they sprang into action to help their employees and the crippled community. The morning after the flood, store manager Tom
McReynolds and the employees who could make it to the store set up a satellite office to coordinate community assistance efforts and bring the store
back online. The first phone calls were to the National Guard, opening the
store to them to take whatever they needed for rescue and recovery efforts.
Meanwhile, store employees were trying to establish contact with their
colleagues to see if everyone was all right. Unfortunately, 23 Wal-Mart
employees had lost everything in the floods. The company immediately
stepped in, making sure that all of the employees received their full pay
area to determine how business preparedness,
size and sector characteristics may have helped
reduce the effects of the disaster.
Also, later this year AWB and the
Emergency Management Division will host a
series of business-resiliency workshops aimed
at preparing businesses to work with local
emergency management authorities and making their businesses more disaster-proof. In
addition, the Emergency Management
Division has launched a Web site that will
walk you through the process of preparing
your business or organization for disasters.
Check it out at the link shown below.
Finally, AWB has designated staff who are
receiving specialized training that will enable
them to work in the state emergency management center to assist in the coordination business efforts during a disaster or other emergency. This capability makes AWB unique
among business organizations and better prepared to help our members and the greater
business community during emergencies. All
of this is an effort to make sure that businesses are better prepared for the next disaster that
hits Washington.
http://emd.wa.gov/preparedness/prep_business.shtml
Photos courtesy of Washington State Farm Bureau
for all of the time missed because of the floods.
They provided food and clothing, and coordinated the delivery of donations from the public donations. Wal-Mart also provided counselors to help their employees deal with the
pain and grief that always comes in the wake
of disasters.
Store employees voted to take the money
they had saved for their Christmas party and
other events and divide it among all the
employees who had lost everything. They also
put together more than 680 gift baskets, delivering them to families affected by the floods.
“It’s amazing how shocking and how much
disarray an event like this is. It makes you really focus on the basic needs,” said McReynolds.
“It is amazing to see the power of the company and how our associates banded together to
help each other and their community.”
Planning for the future
With the goal of learning from this and
other disasters, AWB and the Washington
State Emergency Management Division are
joining hands to help educate businesses about
how to prepare for future catastrophes and
how to assist when disaster strikes.
“Hurricane Katrina illustrated that government is ill-equipped to handle a major catastrophe,” said AWB President Don Brunell. “When
all of the finger-pointing was over, we found that
we needed to better organize all of the resources
and include the private sector in the planning.”
“A lot of the lessons learned from Katrina
were applied to the massive flooding last
December in western Washington,” said
Brunell. “If you look at the way the business
community immediately pitched in to help
with the evacuation, relief and recovery effort,
it’s an example of why it’s important to ensure
that we’re included.”
“Government can only do what a vibrant,
sustainable, resilient economy will allow it to
do,” said Maj. Gen. Timothy Lowenberg,
Washington state adjutant general and head of
the Washington State Emergency Management
Division. “About 85 to 90 percent of what is
truly critical infrastructure for sustaining life
and economic activities are owned by the private sector and not by the government… By
actually bringing the businesses community
into the planning, preparation, and recovery
phases we can be more effective at rebuilding
people’s lives and our state’s economy.”
Looking ahead, a study is underway that will
examine what happened to businesses and the
economy in Lewis County in the months after
the flood. The Institute for Global and
Community Resilience at Western Washington
University has received a Quick Response Grant
to fund the study. By the summer of 2008, they
will have gathered enough data on business disruption and recovery in the Centralia-Chehalis
Lewis County farmers discuss what to do next after storm water ravaged their land,
above, leaving behind ruined equipment, dead livestock and collapsed buildings, below.
MARCH/APRIL 2008 41
Travel Washington
The bluegrass band Open Road entertains the crowd at the Darrington Bluegrass Festival.
Photos by David White
Darrington’s bluegrass thrives
in Evergreen State
N
by Richard S. Davis
o business plan. No marketing strategy. No structured financing.
The event began simply enough: Just a desire to make good bluegrass music with friends and neighbors. Today, the Darrington Bluegrass
Festival has become one of the Northwest’s signature summer musical
celebrations and a tribute to the energy and vision of a small group of
volunteers.
Its bluegrass roots stretch from Washington’s North Cascades to the
Great Smoky Mountains of North Carolina. From them stems the flourishing festival that each July brings thousands of visitors to this small
Snohomish County timber town.
Darrington’s Carolina connection reaches back to the 1880s. Scott
Philyaw, a Western Carolina University historian, says the earliest
migrant from North Carolina shows up as a missionary on the state’s
1888 territorial census. Others followed, coming to Washington as dairy
farmers, business owners, and laborers. In 1904, a North Carolina newspaper proclaimed, “Our Best People are Leaving.”
42 WASHINGTONBUSINESS
The Carolinians stuck together. “As early as 1908, they were organizing what they called ‘Tarheel picnics’ in Darrington,” Philyaw said.
Appalachian migration
With the decline of Appalachian logging in the 1930s, hundreds of
people left western North Carolina in search of work.
Roy Morgan, a retired logger and one of the festival’s founders, came
to Darrington in 1958 at 19. “I knew some people here, and the country’s about the same in western North Carolina as it is here,” he said.
Their cultural and musical traditions accompanied them, and they
wrote home to friends and relatives they’d left behind. “It’s an adaptable
and transportable culture,” said Philyaw. “But it also holds onto things.”
Ernest Queen came to Sedro Woolley from Sylva, N.C. in 1955, having heard from others who’d made the move that he could double his paycheck in Washington.
Now an active 75, Queen still plays rhythm guitar and sings with his
After a while, Morgan says, “we
overrun Grover’s house and there were
people all over the trailer park.”
The Joneses came from the same
North Carolina community as Earnest
Queen: Grover at 9 in 1938 and
Earnestine in 1947 at 15.
Earnestine also grew up with music,
mostly Southern gospel.
—Bill Monroe
“My first memories were of music
with my family [and] of people coming
to my house and singing,” she says.
“I’ve been singing all my life.”
band, Queens Bluegrass, which has performed at the Darrington festival
The Saturday night sessions moved to the schoolhouse, finally ending
about a dozen times. With a grandfather who played banjo at Carolina
up at the community center for a jam and Tarheel dinner on the second
barn dances, he grew up with mountain music.
Sunday of the month.
Dan Hays, the executive director of the Nashville-based International
Bluegrass Music Association, calls bluegrass a “music born out of migraBluegrass capitol of the Northwest
tion.” The people who left the mountains knew well the Scots-Irish fidBy this time, Darrington had established itself as the bluegrass capdle tunes, southern blues, and gospel music from which Bill Monroe creital of the Northwest, as proclaimed on a sign that used to stand at the
ated the distinctive bluegrass sound in the late 1940s.
city limits. Prominent performers would often play at small town
The sounds of Appalachia found sympathetic echoes in the evergreen
gatherings.
forests that welcomed the transplanted Tarheels.
Bill Monroe himself once showed up to play a freebie at one of the regular Darrington sessions. Although he wasn’t paid for the gig, Monroe
Overgrown jam session
didn’t leave empty-handed.
“We just started having jam sessions over at Grover’s,” says Morgan, a
Morgan’s band, the White Horse Mountaineers had written an instrubanjo player. Grover is Grover Jones, who owns a trailer park in
mental tune they called White Horse Breakdown.”
Darrington where Roy and Diana live.
“I’m sure we played it the day he was up here,” Morgan says. “It must
Soon the sessions were drawing folks from Bellingham to Seattle, 80
have hit him a little bit, because he put it on record and it was pretty close
miles to the southwest. Jones’s wife, Earnestine, says there were times
to what we were doing.” He still laughs about his contribution to the
when they had 53 people making music at the house.
Monroe repertoire.
“It’s got a hard drive to it. It’s Scotch bagpipes and
old-time fiddlin’. It’s Methodist and Holiness and
Baptist. It’s blues and jazz and it has a high lonesome
sound. It’s plain music that tells a story. It’s played
from my heart to your heart, and it will touch you.”
The festival amphitheater, with White Horse Mountain rising in the background, offers a spectacular venue for both musicians and audience.
MARCH/APRIL 2008 43
Photo by Richard S. Davis/AWB
Photo courtesy of Bertha Nations
As the gatherings grew, so did the aspirations.
In 1976 the Darrington Bluegrass and Country
Music Maker Association put on its first festival
at the rodeo grounds outside of town.
“We decided to try to have a festival,” Roy
Morgan said. “And so we did.”
Another of the festival’s founders, Bertha
Stations Whiteside, said, “We did it for the
enjoyment of the music.” Her band, The
Combinations, continues to perform regularly
at Darrington and other Northwest venues.
First festival
Top: Roy and Diana Morgan display promotional flyers for the Darrington Bluegrass Festival.
Above: Bertha Nations, a festival founder (center), with members of her bluegrass band, The
Combinations.
44 WASHINGTONBUSINESS
The first festival featured local bands, many
of the folks who played in the weekly sessions.
With word-of-mouth publicity and a few flyers the event drew only about 150 people. But
like the jam sessions, the festival flourished.
When the state patrol began complaining
about the cars parked on both sides of the
highway, it was time to move.
By then, the group had raised some cash.
From the beginning, they’d split ticket sales
with the bands. By 1984, they were able to
buy 40 acres near Darrington for $90,000.
After a lot of hard work, all by volunteers, they created a spectacular
amphitheater with a stage facing towering White Horse Mountain.
Festival attendance continued to grow. In the mid-1990s, revenues had
reached the point where it became possible to bring in nationally recognized artists.
Diana Morgan, Roy’s wife, handles bookings for the festival. She’s been
astonishingly successful in bringing some of bluegrass music’s top performers to Darrington, including Rhonda Vincent, Larry Sparks,
Cherryholmes, IIIrd Tyme Out, and Doyle Lawson. Morgan says most of
them comment on the unparalleled beauty of the venue.
Despite the large attendance, the festival retains the comfortable, friendly feeling of those old Tarheel picnics. That’s no accident. To encourage family attendance, they keep the prices low. This year, a pre-purchased three-day
ticket will cost $45. Camping, whether for a day or a week, goes for $20.
Tourism boost
The IBMA’s Hays has seen tremendous growth in what he calls the
bluegrass festival movement. Darrington got in at the front end of a
national trend.
“Over the last 15 to 20 years, we’ve seen more communities hosting
these events. A bluegrass festival can be a signature event for an area.”
And, he notes, their footprint is fairly light.
Amy Spain, executive director of the Snohomish County Convention
and Visitors Bureau, estimated that the festival generates between
$760,000 and $1.4 million for Snohomish County. Typically, the campground is filled 500 RVs and is 80-percent occupied by the Wednesday
before the festival opens.
The IBMA’s Hays reports that “the number of people who indicate
they like and listen to bluegrass music has doubled in the last decade,”
reaching 15.3 million listeners in 2007. The Internet, satellite radio, and
the festival movement have all expanded the fan base.
Three generations
“Artistically, we’re at one of the most interesting times for any art form,”
he says. Three generations of bluegrass musicians are carrying the music
forward: The pioneers who began the music with Bill Monroe in the 1940s,
the now-mature artists who grew up with them, and the young players who
are grafting their own brand of music onto the roots of tradition.
As the music evolves the forms and sounds change, much as early bluegrass itself marked a fusion of cultures and eras. Today’s bluegrass will
often incorporate elements of jazz, swing, contemporary country, Celtic,
and rock, as well as old-time mountain music. Fans, musicians and critics disagree, sometimes heatedly, about how far the boundaries can be
pushed and still be defined as bluegrass.
Hays puts such disputes into careful perspective.
“If it’s not worth arguing about,” he says, “then I guess it’s dead.”
To see just how alive bluegrass is in Washington, come to Darrington
this summer. The tradition lives.
Researchers at Western Carolina University continue to seek information
about the North Carolina Societies active in Skagit and Snohomish counties
in the early 20th Century. Please contact Richard Davis if you have any
material on these groups.
Bluegrass Festivals
in Washington
March 28-30
Long Beach Bluegrass Festival, Chautauqua Lodge, Long Beach
March 29
Pend Oreille Valley Bluegrass Festival Fund Raiser Concert,
Newport High School, Newport
April 4-6
Shelton Old-Time Fiddlers’ Fest, Shelton High School
Auditorium
May 2-4
Moses Lake Bluegrass Camp ‘n Jam, Grant County
Fairgrounds, Moses Lake
May 9-11
4th Annual Bluegrass from the Forest Festival, Shelton
June 6-9
Winlock Pickersfest, Winolequa Park, Winlock
June 13-15
Sacajawea Bluegrass Festival/Dutch Oven Rendezvous,
Sacajawea State Park, Pasco
June 20-22
Wenatchee River Bluegrass Festival, Chelan County Expo
Center, Cashmere
June 20-22
Second Annual Amboy Bluegrass and Old Time Music Festival,
Amboy
July 4-6
Red, White & Bluegrass Family Pickin’ Party, Stevens County
Fair & Expo Center, Colville
July 18-20
Darrington Bluegrass Festival, Darrington Bluegrass Music
Park, Darrington
July 25-27
Adventure Bluegrass, Columbia Gorge Bluegrass Festival,
Stevenson
July 26-28
Goose Creek Opry Bluegrass Festival, Wilbur City Park,
Wilbur
August 8-10
Mt. St. Helens Bluegrass Festival, Toledo High School, Toledo
August 14-17
4th Annual Grays Harbor Bluegrass Festival, Olympic
Stadium, Hoquiam
For details and a complete listing of Washington bluegrass festivals, camps, and concerts, visit the Washington Bluegrass
Association’s Web site, www.washingtonbluegrassassociation.org.
MARCH/APRIL 2008 45
Tourism
Washington
wine touring
coming of age
O
by Steve Roberts
n a visit to a Napa Valley, Calif., winery in 2006, a friend and I
community. “The experience of visiting Washington’s wineries is unique.
were greeted by a smiling concierge who ushered us into a room
It’s more authentic than other wine regions of the world,” said Robin
filled with other would-be wine tasters. After we paid a hefty $15 tasting
Pollard, executive director of the Washington Wine Commission. “The
wineries are typically small family-owned ven-
rooms. Everyone had serious looks on their faces
tures, and you’re likely to visit with the wine-
Photos courtesy of Steve Roberts
fee, we were herded to one of three tasting
as they swirled their glasses and stuck their noses
in for a big whiff. After 10 minutes of this we
were led to a gift shop where we could purchase
wine and sporty logo wear.
I left feeling empty and alienated. Maybe I
maker who gets double duty in the tasting room.
The experience is up-close and personal.”
$3 billion industry
In February 2008 the Washington Wine
Commission and the Washington Association of
just didn’t get it.
Later, we visited a number of other wineries
Wine Grape Growers released a study showing
where the atmosphere was more relaxed, but I
that the Washington wine industry contributes
found myself wondering if Washington wine
$3 billion to the state economy and employs
touring would evolve into the commercialized
almost 19,000 people. More than 350 grape
experience I’d had in California. Now, two years
growers nurture 31,000 acres of wine grapes,
later and having personally visited more than
mostly in the hot, arid climate east of the
200 Washington wineries, I can answer that
Cascade Range. Washington is the second-largest
question with a resounding “No!”
premium wine-producing state in the nation,
The success of Washington’s wine industry is
rooted in Washington’s farming heritage, geography, and the friendly nature of the winemaking
46 WASHINGTONBUSINESS
Two of the offerings from Nefarious
Cellars in Chelan, one of Washington’s
premium wine-producing regions.
after California. But the most startling figure is
the overall growth of the industry, which saw
fewer than 20 wineries in 1981 growing to more
than 500 today. Wine-related tourism expenditures increased 1,157 per-
is one of the quirky things about Washington’s wine industry. Most
cent over 1999, reaching $237.6 million for 2006—a 165.3-percent
wineries import their grapes from the grape-growing areas of the
increase per year. The number of wine-related tourists in Washington
Columbia Valley.
increased from 350,000 in 1999 to 1.7 million in 2006. The bottom line:
We’ve been discovered.
Cynthia Daste, executive director of Woodinville Wine Country,
noted, “Eight hundred thousand visitors a year experience
The numbers are staggering, but they don’t begin to paint the whole
Woodinville’s Chateau Ste. Michelle, and a large number of wine
picture. Vineyard weddings, destination resorts, spas, fine dining, winery-
tourists are surprised to discover 30 more wineries tucked away in busi-
sponsored summer concert series, and festivals that draw thousands of
ness parks.” Despite the fact that Woodinville’s population is less than
visitors every year to taste premium wine—they all add up to make
10,000, Daste remarked, “There’s no lacking of amenities. We’re
Washington’s wine industry a force to be reckoned with.
blessed with restaurants such as the Barking Frog and the Herb Farm
A wine tourist’s biggest challenge is deciding which region to visit.
With names like Leavenworth, Lake Chelan, Yakima Valley, Walla Walla,
and the renowned Willows Lodge for overnight stays. Visitors can
immerse themselves in a wonderful time.”
Puget Sound, Woodinville and the Columbia River Gorge, wine tourists
The future is bright for Woodinville wine country with the emergence
are left dizzy trying to decide whether they should sample the red wine
of Woodinville Village and the continued popularity of events like
and chocolate in the Yakima Valley or experience the spring release in
Passport to Woodinville (first weekend in April) and St. Nick’s Open
Walla Walla. It might help to look at a snapshot of a few select wine-
House (first weekend in December). Also hugely popular is the summer
country regions in Washington: Woodinville, Walla Walla, Lake Chelan
concert series on the Chateau Ste. Michelle grounds.
and Prosser.
Walla Walla Valley
Woodinville
In 2005, Walla Walla received Sunset magazine’s Wine Destination of
When it comes to winemaking in Washington, Woodinville first comes
the Year award. With more than 100 wineries, a half-dozen fine restau-
to mind for many due to its close proximity to Seattle, world-class winer-
rants, a number of quaint country inns, bed-and-breakfasts and hotels,
ies, and upscale amenities. The fact that there aren’t any vineyards there
wine trekkers won’t have any problem mixing wine with the finer things
Visitors sample the wine in Vashon Winery’s informal tasting
room. Rows of grapes ripen in the sun (facing page) at the
Benson Vineyards Estate Winery in Manson.
MARCH/APRIL 2008 47
in life. But don’t make the mistake of calling Walla Walla the “Napa
Valley of the north.” Although this may sound complimentary, the members of the Walla Walla Valley Wine Alliance have a different opinion.
They want visitors to have a unique experience, Walla Walla-style. Here
you can easily park your car, take a leisurely self-guided tour of the historic downtown, and sample a dozen wineries within a four-block radius.
Lake Chelan
Lake Chelan is another growing wine country region where visitors can
take away memories of Tuscan-style architecture, groomed vineyards, and
elegant wines. With an abundance of resort-style accommodations and a
host of restaurants, the wineries tap into an existing well of visitors that
return year after year. “We want visitors to feel they have had more than
the generic tasting room experience,” said Lee Lewis, general manager of
Tsillan Cellars. “We work very hard to educate our staff and hire only
friendly people. Our guests should feel their experience was “tailor-made”
for them. Whether they want to know the finer details of how our wine
is made, and all the scientific techie data that that involves, or just want
a friendly person to make them laugh, we want to be able to provide that
element.”
Above: Outdoor music is part of the wine-tasting experience at the
Tsillian Cellars Winery, which overlooks the shores of Lake Chelan.
Left: Snoqualmie Winery is located in the hot and dry Columbia
Valley, the perfect climate for growing world-class wine grapes.
48 WASHINGTONBUSINESS
The region’s wineries are still waiting for the much-anticipated desig-
making regions are many and varied, but one thing holds constant: They
nation of their Columbia Cascade American Viticultural Area. Once
all offer an authentic Washington experience you won’t find anywhere else.
approved as an official AVA, the Columbia Cascade Winery Association
Visitors are often surprised to discover that a visit to a winery housed in a
can kick their marketing engine into high gear.
double-wide or an old barn is just as enjoyable as a trip to a magnificent
chateau. Why? It gets back to that authentic point that Pollard noted. You
Prosser
In addition to the established wine country regions, perhaps the
can smell the wine barrels, see the passion in the winemaker’s eyes and—
more often than not—see the purple stains on his hands.
biggest news is what’s happening in Prosser. There, visitors will find 30
nearby wineries to explore, little to no tasting room fees, welcoming
Steve Roberts, author of WineTrails of Washington, is founder of
locals, zero traffic jams, and stunning views of Rattlesnake Mountain and
WineTrails Northwest (www.winetrailsnw.com). When he’s not writing
the Horse Heaven Hills. It’s also the birthplace of Washington’s wine
about wine touring, Roberts is the owner and president of Orca Bay
industry thanks to the pioneering work of Washington State University’s
Benefits, an independent health insurance agency that services AWB
Dr. Walter J. Clore, who showed that European grape varietals could
HealthChoice clients.
thrive in central Washington.
According to Deb Heintz, executive director of the Prosser Economic
Development Association, “Prosser is already discovered by wine enthusiasts and we will enjoy the kind of tourist traffic we see in
Leavenworth, Chelan and Walla Walla. But Prosser will have its own
unique feel and give visitors a different experience.” However, she notes
that Prosser is in that “chicken and egg” phase where they already have
wine tourists but it could be a lot better. What’s needed is a critical mass
of tour-related services such as European-style bistros, elegant day spas,
and destination B&Bs.
But the final piece of the wine tourist puzzle for Prosser is the development of the 22-acre Walter Clore Wine and Culinary Center, a publicprivate sector vision to establish a center to educate and promote the
state’s agriculture industry, including wine production and culinary practices. It has been on the drawing board for several years, it now appears
the necessary funds are available to begin construction.
From rural Walla Walla to suburban Woodinville, Washington’s wine-
Above: The rustic-looking tasting room at Cascade Cliffs Winery
seems right at home in its Columbia River Gorge surroundings.
Below: The staff of Chatter Creek Winery, is always ready to welcome visitors to their Woodinville tasting room.
MARCH/APRIL 2008 49
Member Profile
Ye Olde Curiosity Shop at its current location on Pier 54 in Seattle.
by Danielle Rhéaume
Ye Olde Curiosity Shop:
More than a century of business as (un)usual
S
tepping into Ye Olde Curiosity Shop on Seattle’s Pier 54, visitors are
transported to a sort of wonderland. It’s a place where the eccentric,
entrepreneurial spirit of the shop’s founder, Joe “Daddy” Standley, still
teaches—through shrunken heads, totem poles, mummies and old photographs—the history of business in Washington.
Daddy Standley
When Daddy Standley opened Ye Olde Curiosity Shop around the
turn of the 20th century, “Seattle’s economic diversity, its location, and
its increasing transportation connections created a climate ripe for the
sort of business Standley would establish,” wrote Kate Duncan, historian
and author of “1001 Curious Things: Ye Olde Curiosity Shop and Native
American Art.” Souvenirs and knickknacks from far-off places were common on Seattle’s piers, where miners departed for the Klondike Gold
Rush and soldiers sailed into Elliot Bay aboard ships bound for the
Spanish-American War. Traders from all over the Pacific Rim brought
curios from distant places, including Native American and Eskimo
objects that Standley could sell in his shop.
Around that time Seattle’s population exploded, growing from just
3,500 to more than 80,000 in 20 years. The streets were full of people
from the Midwest and the East Coast, as well as immigrants from
Canada, Sweden, Norway, Great Britain, Germany, Japan, Italy and
Russia. It was a rough, wide-open city with a wild reputation, full of gambling and prostitution. There was little entertainment for families or children. Soon, however, Ye Olde Curiosity Shop would help change that.
Daddy Standley was from Steubenville, Ohio. As a young boy, he worked
alongside his father supplying riverboats on the Ohio River with fresh food
and other items during the Civil War. This exposed him to all kinds of people and a wide range of trade practices. Around that time, Standley received
a children’s book about the wonders of nature. “Since I read that book, I’ve
thought about nothing else,” he later reported. “I set about collecting things
50 WASHINGTONBUSINESS
then.” These experiences, coupled with his curiosity and driven nature, foreshadowed the legend he would later become as a businessman.
Not long after establishing his shop near the Seattle waterfront,
“Standley cultivated a reputation as an astute, if slightly eccentric, businessman; a regional booster and a passionate purveyor of curios,” according to Duncan. He also handed out and mailed homemade postcards
extolling the virtues of Seattle, calling it “The New York of the West
Coast” or the “Queen City of the Puget Sound.” He regularly wrote letters to newspaper editors, recommending how to further develop the city
and increase tourism. He also joined the Seattle Chamber of Commerce,
where he regularly weighed in on issues and openly lamented civic apathy.
Years later, his grandson, Joe James, would carry on Standley’s commitment to civic involvement through membership in AWB because of his
concerns about “health care, taxes and business regulations,” according to
Joe’s son, Andy James, the current president of Ye Olde Curiosity Shop.
Within a few years of arriving in Seattle, Standley carved out his niche,
selling seashells and Native American relics, like totem poles and masks,
as well as “coins, souvenir spoons, rare marine animals and other items,”
according to Duncan. Standley was unusual in many ways, especially in
his appreciation of Native American culture, art and artifacts. He often
visited Native Americans living on the tidal flats north of Spokane Street,
buying goods directly from them.
Because of Standley’s high regard for Native Americans and his good
working relationship with them, no other curio shop could rival his
indigenous art selection. Ye Olde Curiosity Shop quickly became a mustsee destination, frequented by locals seeking entertainment and travelers
who had heard about the place by word-of-mouth. The shop came to be
known as a “free museum”—a label it still carries today.
Although the shop moved several times during the ensuing century, it
has been on Pier 54, next to Ivar’s restaurant, since 1988. And while a
number of Standley’s Native American relics were donated to museums
over the years (including a totem pole sent to the British Museum in
London), the shop is still overflowing with spectacular oddities. They
have a woven cedar-bark hat that was worn by Chief Seattle and a collection of shrunken heads from the South Pacific. They have so many fascinating pieces of Seattle history that it’s impossible to see them all in one
visit. Their most famous resident, an arsenic-embalmed cowboy mummy
named Sylvester, has been featured in National Geographic and on several
television programs over the years.
According to Andy James and his wife, Tammy, Ye Olde Curiosity
Shop’s modern customers still come from all points of the compass, just
as they did when Daddy Standley and Joe James ran the shop. Like many
waterfront stores, the James family depends heavily on tourism.
Canadians and visitors arriving on cruise ships are in the shop every day,
and many school groups and locals bring visitors to the legendary Seattle
landmark. “The shop appeals to a broad market,” said James. “Customers
can spend anywhere from 25 cents to several thousand dollars here.”
Like Daddy Standley, who had to move his shop many times over the
years (once because of the massive Denny Regrade project), the Jameses
face challenges related to their waterfront location. Just last year, they had
to close their second shop, “Ye Olde Curiosity Shop Too,” also on Pier
54, due to an unmanageable rent increase. There’s also a long-running
controversy about the repair, replacement or removal of the traffic-congested Alaskan Way Viaduct, which runs directly in front of them. The
structure was severely damaged in the 2001 Nisqually earthquake, and,
while the Jameses understand that it isn’t viable for the viaduct to stay the
way it is, they are naturally in favor of whatever option has the least negative impact on their business. “We definitely don’t want the rebuild that
takes seven years,” Andy said.
Instead, they support a deep-bore tunnel, which would allow the viaduct
to be used until the tunnel is finished. So far, no decision has been made,
but whatever is done will directly affect their business and the businesses
around them. Knowing that, they have expanded and diversified their business to include a new fair trade store in Seattle’s Ballard neighborhood.
Blurring the lines
The concept behind the store was largely influenced by a trip that the
Jameses took to Thailand with their two teenage sons in 2006. During the
trip, they traveled to a remote hilltop village and spent about $500 on goods
made by the local residents. Their original plan was to sell the items at Ye
Olde Curiosity Shop, but when Tammy and Andy heard from the villagers
that revenue from their purchases would pay for 50 children to attend school
for an entire year, the Jameses were touched and inspired. After returning
home, Tammy immediately began researching fair trade. On Nov. 8, 2007,
the family purchased a 2,500-square-foot building on Ballard’s Market
Street and, on the day after Thanksgiving, after a whirlwind of paperwork
and preparations, they opened it as Market Street Traders.
According to FINE, an informal association of four leading fair trade
networks, “Fair trade is a trading partnership, based on dialogue, transparency and respect, which seeks greater equity in international trade.”
Those involved in the fair trade movement are most concerned with creating opportunities for under-represented workers in third-world countries. In recent years, the media has covered this movement by highlighting the work of people like Bono and his wife, Ali Hewson, who started
a designer fair trade clothing line called Edun. While their high-profile
work is important to note, it is only a small reflection of the growing
“philanthropreneur” movement that blurs the line between philanthropy
Photo courtesy of Kate Duncan/University of Washington Press
Joe “Daddy” Standley with some of his curios at Ye Olde Curiosity Shop in the early 20th century.
MARCH/APRIL 2008 51
Photo by Daniel Brunell/AWB
Andy and Tammy James stand in front of their newest shop,
Market Street Traders, in Seattle’s Ballard neighborhood.
52 WASHINGTONBUSINESS
and business. Other businesses, such as eBay and Google have also
become involved. These businesses operate with a double bottom line of
fiscal performance and positive social impact, meaning that their desire to
make positive changes in the world relies heavily on the speed and efficiency of capitalism.
Whether the merchandise is silk scarves made by Indian women, handcarved Kenyan soapstone figures, or telephone-wire bracelets made by
Zulu men, there is a story behind everything sold at Market Street
Traders. And, like Daddy Standley, the Jameses still buy directly from
Native American and other artists to stock Ye Olde Curiosity Shop.
Market Street Traders also sells delectable fair trade items like homemade fudge and coffee in their new in-store café, which reinvests a portion of their profit as microloans. They also hope to open a nonprofit center on the vacant floor above them. Although still in the conceptual
phase, Tammy is hoping to collaborate with her best friend, a school principle in Sitka, Alaska, on developing a global education venture. This
would include reaching out to local high schools and teaching students
economics by managing microloans to underprivileged individuals and
communities. “That way, kids can learn how to invest and really see their
money at work as they help other people,” Tammy said.
Tammy is passionate and hopeful about the possibilities the new venture presents. Her customers are enthusiastic, too. “A lot of people have
stopped by the new store to say, ‘Thank you. We needed a place like
this,’” Tammy said.
As the James family looks toward their future, they are acutely aware
of their connection to the adventurous spirit of Daddy Standley—the
curious businessman who started it all. “I think that he’d be proud of us,”
Tammy said, as she adjusted the position of a hand-carved, olivewood
nativity scene from Bethlehem. “With our new store, we’ve stayed true to
his character by giving back.”
Profile
Photo courtesy of Senate Photography
Sen.
Paull
Shin
State Senator, District 21
Senate vice president pro tem
Chair, Higher Education Committee
by Daniel Brunell
S
en. Paull Shin is a name you don’t hear much around Olympia. As a
legislator, he doesn’t speak very much on the floor of the Senate, but
when he does it’s with a calm and assured demeanor. Never inflammatory, he’s rarely mentioned in the press.
Nevertheless, Sen. Shin is one of the strongest
voices in Olympia.
Sen. Shin’s journey from his native Korea to the
halls of government is one of the most unlikely
and amazing stories in Washington state history.
A childhood none of us could imagine
Shin was born in Japanese-occupied Korea in
1935. His mother died when he was four years
old; shortly afterward, his father abandoned him
in the streets. With the brutality of the occupation and the world at war all around him, Shin
grew up in conditions that even Charles Dickens
couldn’t imagine. Eating spoiled food and wearing filthy clothing, he had no relatives and no
friends. Shin survived in the open elements
through Korea’s sweltering summers and frigid
winters. Just surviving until the next day was
often a struggle.
“I remember at night, crouching down in the
street and looking up at the stars,” said Shin. I
would start tearing up and crying for my mother.”
When he tried to go to school in Korea to improve
his situation, they kicked him out on first sight.
In 1950, communist North Korea invaded
South Korea. Under a United Nations directive,
the United States led an international coalition
to defend South Korea. Many residents of Seoul
fled south to Pusan after U.N. forces were able
to secure the area on the southern tip of the Korean Peninsula. Shin
joined the exodus. He was almost halfway there when news arrived that
Gen. Douglas MacArthur had captured Seoul. Shin headed back to the
capital city.
In their hasty retreat, both the U.N. forces and
the Korean People’s Army had knocked out all
the bridges crossing the major rivers. Walking
north, Shin came upon a United Nations pontoon bridge crossing the Han River. Unable to
cross (soldiers guarding the bridge gave priority
to military vehicles), Shin begged the passing soldiers for food. Finally, one day an officer grabbed
him and put him in his truck. The officer was
part of a U.S. Army medical unit. The soldiers
instantly took a liking to Shin, offering him a job
at their base and making him a houseboy for the
officers. For the first time in his life, Shin was
able to bathe, wear clean clothes, and eat on a
regular basis.
Even at the base, Shin felt alone in the world.
Like before, there was no one he could talk to or
be friends with. At night, he would sneak outside
and look up at the stars, crying, thinking of his
mother. One night, one of the officers from the
base came upon Shin.
“I looked up at this man who was looking at
me,” said Shin. “The next thing I know, he was
hugging me with his big, powerful arms. That
was the beginning of my new life.” The officer
was a dentist named Ray Paull. Through the
remainder of the war, Shin and Paull developed a
close, father-and-son relationship. When the war
ended, Paull adopted Shin.
“I looked up at
this man who
was looking at
me. The next
thing I know, he
was hugging me
with his big,
powerful arms.
That was the
beginning of my
new life.”
MARCH/APRIL 2008 53
Coming to America
It took nearly a year for the adoption
paperwork to go through the system before
Shin could start his new life in the United
States. In 1954, he met his new family at their
home in Salt Lake City. In honor of the man
who gave him a new life, Shin changed his
first name to Paull. Once Shin was here, he
didn’t waste much time. He had always
dreamed of getting an education, and now he
had the opportunity.
At an age when most American children
were finishing their primary education, Paull
Shin was just beginning his. There were a few
problems starting out. All of the schools in the
area rejected Shin because of his age, his lack
of previous education and his lack of English
skills. However, this didn’t deter Shin. With
the help of his new family, Shin started a GED
program.
“I remember only getting three hours a
sleep a night while I was studying, trying to
memorize the English dictionary,” said Shin.
“My new father and family were there supporting and believing in me.”
In less than 18 months, Shin finished his
GED. He then went on to earn a bachelor’s
degree in political science from Brigham
Young University. After a brief spell in the
U.S. Army, he went on to get his master’s
degree in public and international affairs from
the University of Pittsburgh, and another master’s and a doctorate from the University of
Washington.
While at the University of Washington in
the Korean Studies Program, Shin rediscovered himself. “I had terrible feelings. I felt
rejected by Korea,” he said. “When another
Korean person would come up to me, I felt
embarrassed because I didn’t know how to
speak and read Korean.” Through the Korean
Studies Program at UW, Shin was able to
rediscover the country of his birth—something he has always been grateful for. Many
years later, when the program faced the budget-cutter’s axe, Shin led the effort to not only
fund it, but also set up a permanent endowment so the program could continue as a vital
link between the two countries.
After teaching in Hawaii for a few years,
Shin decided to move back to the Pacific
Northwest. In 1969, he took a job at Shoreline
Community College as a professor of history
and East Asian civilization. He taught there
for more than 26 years.
Into state politics
Paull Shin got involved in politics when, in
1976, Gov. Dan Evans called on Shin to help
him increase trade with Korea and Japan.
Through many changes of administration in
the governor’s office, Shin served as a trade
ambassador to the state, a role in which he
continues to this day. By 1987, both parties
were actively recruiting him to run for office.
Secretary of State Ralph Munro tried to get
him to run as a Republican, while Gov. Booth
Gardner tried to get him to run as a
Democrat. Gardner won out.
Since joining the Legislature, Shin has
been one of its strongest advocates for education and trade. He is currently vice president
pro tem of the Senate, chair of the Higher
Education Committee, and past chair of the
Economic Development, Trade, and
Management Committee. Representing the
21st district (comprising Edmonds, Mukilteo,
Woodway and portions of Lynnwood and
Mountlake Terrace), Shin was elected to the
Washington State House of Representatives in
1992. In 1994 he ran for the U.S. House of
Representatives and in 1996 he ran for lieutenant governor, losing both bids by slim
margins. In 1998 he made the step up to the
Washington State Senate, where he still serves
today.
One of his proudest accomplishments,
according to Shin, was the passage of SB 5166
during the 2007 Legislative session. This was a
bill establishing Jan. 13 as Korean American
Day, making Washington the first state in the
nation to recognize Korean Americans in an
honorary state holiday. The date is significant:
on Jan. 13, 1903, the first Korean immigrants
arrived in Honolulu, Hawaii. Now, native
Koreans and Korean Americans comprise
Washington’s third-largest ethnic population.
The holiday not only celebrates the contributions made by Korean Americans, but also
honors veterans of the Korean War.
Keeping active
Outside politics, Shin has remained active
since retiring from Shoreline Community
College. He serves on the board of the
Edmonds Community College Foundation.
He and his wife, Donna, have two children
— both of whom are adoptees — and five
grandsons. Now in his 70s, Shin remains
engaged and committed. He flies around the
world, mostly to South Korea and Japan, to
teach and give lectures, sharing his inspirational story with adoptees and people of
Korean descent.
On a rainy-sunny-rainy January day in
Olympia, there’s not an inch to be found on
the steps and landings inside the Capitol
Rotunda. A diverse crowd of dancers, bands,
Korean War veterans, and Korean American
families spanning generations are there to celebrate Washington’s first Korean American
Day. Among the crowd is Sen. Paull Shin,
looking around in joy and astonishment. For
someone from such inauspicious beginnings,
it’s a happy place to be.
MARCH/APRIL 2008 55