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updated 2:54 PM CDT, Jul 28, 2018

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Baird enjoying growing fuss over his STOCK Act

Brian Baird spent half of his 12 years in Congress in a frustrated, and futile, effort to gather support for his legislation to make it illegal for lawmakers to engage in the kind of financial transactions that those in the real world know as Insider Trading and for which they can be sent to jail. He and one or two supporters offered it each session but couldn’t even get a committee hearing.

But Baird was able to look on with satisfaction when, a year after he decided to focus on family and not run for re-election, a late-2011 program on CBS' "60 Minutes" brought national attention to his idea and coined the phrase "Honest graft," meaning it was graft but it wasn't illegal. The program exposed how members of Congress and their staff traded stocks based on nonpublic information to which they had exclusive access.

Lawmakers by the dozens scurried like frightened rats to get aboard as supporters amid the public outcry the news program sparked and so in April of 2012, the measure titled the STOCK Act (Stop Trading on Congressional Knowledge) was passed to finally bar members of Congress from doing stock transactions in areas they regulate.

Now Baird is watching with some amusement because, since Republican congressional leaders went out of their way in 2012 to quickly pass legislation extending the law to the president and vice president and those who worked for them, President-elect Donald Trump would be covered by the law. So he and his minions are seeking to exempt him from the law.

Newt Gingrich, explaining why ethics laws shouldn’t apply to Trump, even offered the view: "We've never seen this kind of wealth in the White House, and so traditional rules don't work…We're going to have to think up a whole new approach." He suggested that Congress change ethics laws so Trump can avoid any conflicts of interest that his global business empire may pose.

And Trump himself has said he is not subject to laws relating to conflict of interest.

Maybe so. But maybe not, since the Republicans who now control both houses of Congress may not wish to take early action on something that would allow critics the opportunity to point to the GOP lawmakers as being the lap dogs of the President. In other words, if they rolled over on command on the issue of ethics, what commands could they object to?

And Walter Shaub, director of the federal Office of Government Ethics (OGE), has issued a memo providing official guidance to Congress on the issue. His letter explained: “The Stock Act bars the President, the Vice President, and all executive branch employees from: using nonpublic information for private profit; engaging in insider trading; or intentionally influencing an employment decision or practice of a private entity solely on the basis of partisan political affiliation.”

But the President names the OGE director so once Trump moves into the Oval Office, it might be a good bet that Shaub will be replaced and that his successor will offer a quite different view.

Baird served six terms from Washington’s Third Congressional District before deciding in 2010 that his young family (he and his wife, Rachel Nugent’s, twin boys were 4 years old at the time), was more important than his battles in Congress. There was talk of his being targeted by the GOP if he had sought re-election, even though in his last four re-elections, none of his opponents could muster even 40 percent of the vote.

He says that while his family was the key reason he decided not to run again in 2010, other reasons included frustration over “the growing extremism and intransigence of many in the Republican party” and the “Democratic leadership showing little if any understanding of the concerns for centrist members from swing districts.”

Baird, who gained a doctorate in clinical psychology at the University of Wyoming after graduating from the University of Utah, says of the emerging focus on the STOCK Act and its relevance to Trump:  “I'm just glad people are standing up for the bill now and trying to make sure it has the desired impact.”

But he finds it humorous that the growing attention to the law has brought a number of representatives and Senators who are being quoted about the brewing controversy as Trump’s inauguration nears and describing themselves as author of the law.

“As they say, success has many parents, even if they were nowhere near the conception,” Baird mused in an email to me.

The interviews by CBS reporter Steve Croft with then-House Speaker John Boehner and former Speaker Nancy Pelosi, his unexpected questions making Boehner look like someone hiding from the truth and Pelosi like someone too incompetent to even come across as thinking, should be part of every high school government class. The topic of the lecture in which the You Tube interviews were featured could be titled: “Who elects these people?”

The interviews are now difficult to find on You Tube because you have to subscribe to “60 Minutes.” Too bad.

The controversy over the STOCK Act and the soon-to-be Trump Administration isn’t currently getting a major focus from the media.

But a budding controversy could become a political brouhaha once a new president takes an action that would be illegal under the act.

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Hutch Award merits broader support, including MLB

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The award honoring the memory of the Major League Baseball star and manager for whom the Fred Hutchinson Cancer Research Center is named has been presented for more than half century, but it has yet to gain the visibility traction that would put it on the prestige pedestal that it’s supporters think it merits.

To students of baseball lore, the name Fred Hutchinson brings to mind a Seattle kid who became a star pitcher for the Detroit Tigers, went on to manage three big league teams, including guiding the Cincinnati Reds to the 1961 World Series, but succumbed to cancer in 1964 at the age of 45.

But to those afflicted by the disease that claimed his life, his name on the renowned Fred Hutchinson Cancer Research Center, created in 1975 by his brother, Dr. William Hutchinson, to honor his memory, has conveyed hope.

A year after Hutch’s death, three Midwest sports media admirers who saw him in action created an award to honor his memory, and ever since then The Hutch Award has been presented to a Major League Baseball player who exemplified the fighting spirit and competitive desire of Fred Hutchinson.

For years the award was given out annually in New York, starting with a flourish as the first honorees were New York Yankee legend Mickey Mantle and Dodger pitching great Sandy Koufax. But it was an event far from Seattle and wasn’t a fund raiser until, in 1999, it was brought back to Seattle and was moved to Safeco Field a year later.

But despite the fact the Seattle Mariners are a sponsor and, for the past 16 years, have hosted the annual luncheon where the award is presented at Safeco Field, attracting about 1,000 attendees and raising about a half-million dollars a year for The Hutch, it has not yet achieved the success its supporters think it could and should.

The missing link to bring the award to a visibility level equal to the prestige of The Hutch itself is viewed as active support from Major League Baseball.

And a new push to achieve higher visibility and broader support, including from Major League Baseball, is under way by officials of The Hutch as well as those who have long been involved in this event.

“We hope to take this prestigious award onto a national stage to increase the support and awareness around our world-class science at the Fred Hutch,” said Justin R. Marquart Deputy Director of Development at The Hutch. He was quick to note that local sponsors like the Mariners and Alaska Airlines have provided key support but that what direct involvement from Major League Baseball would mean is national sponsors.

Organized effort to gain visibility for what it is and what it does has not been part of the strategy for The Hutch as an institution until the last year or so, which is part of the explanation for the fact that this event hasn’t received a lot of media visibility, even locally.

Certainly the achievements of The Hutch’s “stars” have gained attention over the years. Those range from the Nobel Prizes in physiology or medicine that have gone to Donnall Thomas in 1990, Dr. Lee Hartwell in 2001 and Dr. Linda Buck in 2004, as well as the major awards across the medical industry to individual researchers. Perhaps the most compelling of advances for which The Hutch is known is the life-changing research of Thomas into bone marrow transplantation.

But research into cancer and related diseases has come to require huge amounts of money and the quest to attract those dollars from grants, individuals and events has come to require a visibility strategy and focus matching the research itself at the institutions where research and treatment are carried on.

“It is our goal to eliminate cancer as a cause of human suffering and death through prevention and curative treatments accessible to all patients,” as Marquart put it. And that “accessibility to all” is a major cost driver. Among those is the Hutch School, where patients and family members of those living temporarily in Seattle while being treated at The Hutch have classes, from kindergarten through high school.

The success the award has achieved since returning to Seattle is due to a large extent to the involvement of Jody Lentz, regional sales manager for Mass Mutual, who set up and chaired a committee to oversee planning for the event.

“We had about 25 to 30 people at the event at the hotel the first year and I thought ‘we should make this a fund raiser,’” she recalls.

Her plan included getting a hall of fame player as keynoter each year, and the event has generated attendance of between 1,000 and 1,400 and about $500,000 a year for The Hutch.

Her commitment to the event has stemmed from the fact that both cancer and baseball are part of her life. Husband, Mike, was the highest pick in the baseball draft ever from this state, being the second overall pick as the first choice of the San Diego Padres in 1975.

Her sons Ryan, Richie and Andy were all baseball All-Americans at the University of Washington and Ryan and Richie had careers that included high minor league play and time on the roster of the Major League teams that drafted them.

And she has suffered two cancers, the latest, thyroid, hit her in 2008, as that year’s event was in planning, after she had chaired and overseen the event the previous eight years.

“I just never got involved again,” she told me as we talked about her sense of frustration over the fact “I guess I figured it was time for others to have a chance to guide this event. But I do believe this event could be so much more as a source of funding for The Hutch.”

It was that 2008 event where John Lester, a native of Puyallup and most recently on the mound for the Chicago Cubs in this year’s World Series, was honored after being successfully treated at The Hutch for anaplastic large cell lymphoma.

Lentz is convinced that a lack of local visibility for the event is a reason that major local sponsors have not stepped up in major fashion to add value to the funds raised for The Hutch.

The 2017 event, an 11:30 to 1:30 luncheon, will be January 25 at Safeco with Boston Red Sox star Jim Rice as the Hall of Fame keynote speaker. The honoree for 2017 will be announced in the next few days.

Honorees are chosen by a vote of each Major League team to determine which player on the team meets the criteria and those chosen represent the finalists from which the winner is selected. Jamie Moyer is the only Mariner to be selected.

Last year’s honoree was Adam Wainwright of the Cardinals as the event raised just under $550,000, which The Hutch put toward faculty fellowships.

 

 

 

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Munro offers Rotarians path to political healing

As a deeply divided nation ponders the painful post-election path to healing, former secretary of state Ralph Munro, one of the state's most respected elected officials for two decades, offered the thought that the past outreach to other nations needs to become an outreach within our nation.

 
Ralph Munro
"Here in Seattle, a thriving world-trade community, we have rightly developed sister-cities, sister ports and friendly relations with places like Singapore, Hong Kong and Shanghai," offered Munro, who in five terms as secretary of state espoused close ties to those places, as well as Russia and even North Korea.

But in comments the day after election to Seattle Rotary, Munro noted. "Those are all well and good, but perhaps it's time we reached out to places like Gary, Indiana, flint , Michigan and Youngstown, Ohio, places where people haven't had decent jobs in the last decade."

"Those are places that have been totally left behind in our quest for cheaper manufacturing and world trade," he added. "What can we do to help them find their place in this new economy."

"There is no question that if our country is going to prosper and grow, we must build friendships and relationships across the aisle, across the bridge, across the lake, across the mountains and across the county," Munro offered. "Isolating ourselves in a cacoon of similar beliefs will only make matters worse."

As an aside, I have to interject that Munro obviously agrees with my belief that communities that are entirely red or entirely blue do indeed represent ideological cacoons where "true believers" despise discourse.

Munro, a moderate Republican who said he "did not vote for either of the leading candidates,"
told the Rotarians: "As the old saying goes, to the victor go the spoils. But I am not sure what spoils will be left when we still have a deeply divided country and two major political parties that are each split down the middle in philosophy and belief."

But he added: "in 72 days we will inaugurate the ultimate unconventional candidate. We pray for his success."

Munro, in closing his comments to the Rotarians, posed the question: "So what can we do as Rotarians as we move into the next era of American politics? We need to serve as the forum for civil discourse in every community across the land...we must remain totally nonpartisan but our microphones should be open to public debate on the issues se face as a nation."

A commitment to the same future step needs to be made by every organization that hopes healing replaces discord in the political process.

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Scott Jarvis recalls Great Recession ups, downs

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 Few people had a more important role than Scott Jarvis in overseeing how Washington’s financial institutions weathered the twists and turns of the disruptions the Great Recession brought to the economy and the financial industry.

As director of the state Department of Financial Institutions (DFI) from 2005 until his retirement this week, it was the role of Jarvis and his team to closely monitor the financial health of the state’s banks and thrifts during that economic crisis. And on 20 or more occasions, they had to pull the plug when critically inadequate capital or severe loan losses threatened continued solvency.

Jarvis, appointed by Gov. Christine Gregoire to the DFI director role in 2005 and reappointed in 2013 by Gov. Jay Inslee, reflected on that crisis during an interview that amounted to a revisiting of the bumpy ride on which the financial downturn took financial institutions in this state, and the role his agency had in each of the “bumps.”

But the most high-visibility failure, the seizure of Washington Mutual in September of 2008 by the Federal Deposit Insurance Corp. and the sale of the assets of what was by then one of the nation’s largest banks to J.P. Morgan Chase, was without consultation with the state regulators.

And the closure that was perhaps the most painful for Jarvis and his staff, that of Frontier Financial Corp. in April of 2010, was unavoidable after the feds turned down what both the bank board and state regulators viewed as a satisfactory buyout plan.

“If I had to name a ‘down’ moment, it was the circumstances associated with the closing of Frontier Bank,” Jarvis said. “Willing and adequate capital was available for infusion but the Fed was unwilling to sanction the transaction.”

A key bright spot for the regulators was the successful emergence of Sterling Savings Bank from under threat of closure. The once high-flying Spokane-based institution had been placed under a cease and desist order in early October of 2009 and its chairman-founder and the CEO ousted.

Agreements Sterling secured to raise $730 million in new capital under new CEO Greg Seibly and a reconstituted board allowed both DFI and the FDIC to terminate the order and allow Sterling to proceed back on the road to healthy operation and growth, and eventual acquisition by Umpqua Bank.

In fact, Jarvis said of Sterling’s re-emergence: “Sterling’s success is proof that a cease and desist order is not a death-knell for Washington’s banks, but rather a call to action. When a financial institution’s leaders take aggressive, well-planned, corrective action, success can be found at the end in safe and sound business practices – and in strong community and employee support.”

The financial crisis had actually paved the way for Oregon-based Umpqua to move into Washington since the Bank of Clark County, closed by DFI in January of 2009 as the first closure in this state, reopened under Umpqua ownership. And a year later, when DFI took action against Seattle-based Evergreen Bank and Rainier Pacific Savings Bank, they wound under the Umpqua banner.

And Jarvis may well have had Umpqua, among others, in mind when he said: No matter how dark the financial or investment environment might seem at any given moment, there are always individuals and organizations who see opportunities for success that benefit our economy and move us forward.”  

Of the circumstances that forced DFI to close the 18 banks and at least two thrifts that the department had to act on, Jarvis observed: “as a pituitary giant will tell you, sometimes there is a problem with too much growth.”

Jarvis, a New York native who graduated from Allegheny College and got his law degree from University of Puget Sound (now Seattle University), first joined DFI in 1997 after serving as an insurance regulator for the state Insurance Commissioner and General Counsel to the State Treasurer.  

In discussing the relations between state financial regulators and their big-brother counterparts at the federal level, Jarvis admitted that “overall, state regulators are concerned with the feds pre-empting powers of state regulators,” evidencing an unsaid sense that in some areas, the local regulators have a better sense of market needs.

A key area where that is important, he feels, is in failure of the feds to understand the need to right-size regulations for small institutions, where “the risk and exposure are dramatically different for small banks.”

“I think the number of small commercial banks will shrink further and small towns need these kinds of institutions,” Jarvis said.

Of the WAMU takeover by the Fed, Jarvis’ banking chief, Rick Riccobono, has been outspoken in his view that the Fed’s action and its sale of assets to J.P. Morgan Chase for what many viewed as a bargain-basement price didn’t need to have happened. Jarvis has routinely scolded Riccobono for making those statements to various groups, but intriguingly, hasn’t said he disagreed with the comments.

Under his leadership, DFI became a nationally-recognized leader in state financial regulation, which helped move the state from 17th in the nation to 10th on Washington's Corporation for Enterprise Development Scorecard Ranking in "Financial Assets & Income.” In 2012-13 he chaired the legislative committee for the Conference of State Bank Supervisors.

An area where Jarvis was obviously pleased to see the states step in when a void was being left at the federal level was in creation of local legislation to make it easier for start-up entrepreneurs to raise capital from local investors, basically a state version of the JOBS Act passed by Congress in April of 2012.

It was clear after Congress passed the legislation and told the Securities & Exchange Commission to enact rules to put the law into effect, that the SEC’s then chair, Mary Shapiro, didn’t think easing investor protections to enhance entrepreneurial opportunities was a good idea, so she foot dragged for several years.

Eventually a number of states, including Washington, decided they could do it better locally anyway, so they enacted JOBS Act-like crowd-funding legislation, strongly supported by Jarvis and his agency. He told me once that his role was to balance protection for investors with opportunity for entrepreneurial startups and that the balance wasn’t that difficult a challenge.

He was careful how the process of putting the crowd-funding into effect was carried out, with hearings, testimony and staff evalutions, though there have only been four companies that have filed to raise money under the state legislation.

In thanking Jarvis for his years of contribution, the governor named Gloria Papiez, who had served as Jarvis’ deputy for more than a decade, to replace him.

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CTI's Bianco: Controversial and complex CEO

Dr. James (Jim) Bianco, M.D., was an up-from-poverty son of Italian immigrants, just out of medical school in New York, when he was recruited by E. Donnall Thomas to come to the Fred Hutchinson Cancer Research Center to join its pioneering bone marrow transplantation team. The work of the team would bring Thomas a Nobel Prize for Medicine and launch some team members, including Bianco, on careers pursuing cures for cancer. Bianco has resigned suddenly from the company he founded in 1991 to find a cure for blood-related cancers. During more than a quarter century as chairman and CEO of what is now CTI Biopharma, he became one of the area's most intriguing CEOs, a complex and controversial leader praised by those who experienced his moral and philanthropic support and criticized by others who focused on his high-spending ways. Bianco has just turned 60 and whether he or his board decided it was time for him to leave isn't certain, and really doesn't matter except as fodder for cocktail conversation for those who knew of him, or knew him. Among the latter there's a conviction, summed up by one mutual friend: "He'll be doing something interesting within a year and his interests are so broad, it won't necessarily be in medicine." Bianco's challenges in seeking to find new cancer-fighting innovations and his confrontations with regulators over those drug-focused efforts were well documented over time by local media and wrapped up in a Seattle Times article following his sudden departure on October 2. The headline over The Times' story, "CEO Bianco retires after 25 years running profitless CTI Biopharma," was, for those aware of the long adversarial relationship that existed between him and the media, an amusing final putdown. But the person behind the controversies is always more intriguing to me. So it has been with Bianco, with whom I visited frequently over the years, usually while planning for columns exploring various aspects of Bianco and his involvements, including but beyond his company's business performance. Bianco, who received his B.S. in biology and physics from New York University and his M.D. from Mount Sinai School of Medicine, was high visibility in his business and also highly visible in fund-raising efforts for his special causes, though not in a way to designed to attract personal credit. Those personal causes included the Hope Heart Institute, where he and his wife, Sue, won the Wings of Hope award in 2002 and where he's helped revamp the key fund-raising event, and Gilda's Club, the cancer-support organization whose continued existence was largely due to Bianco's personal support. In addition he was long closely involved in the annual Celebrity Waiter event during the years that the Leukemia Society was the beneficiary of the most successful event of its kind in the country. He was long involved with Gilda's Club, named for the late comedian Gilda Radner, and when I once asked him about that involvement, he explained "Gilda's provides that other kind of Medicine, the kind you can't get in hospitals or clinics but that place where family, kids, friends etc have support. It's a great cause, but because they don't do research they're not sexy so funding in these times is tough. That's why I stay involved. It's in our (CTI's) DNA." Bianco's struggles with media coverage, usually over some aspect of the fact that CTI raised and went through about $1.8 billion without turning a profit in its quest for a successful cancer drug undoubtedly played a role in the wild ride investors went on. The stock price peaked in the mid $80s but spent most of the past decade bouncing between a few dollars a share and a few dimes. As one Bianco supporter put it, "let's just say the media and Jim Bianco don't like each other very much," the tension possibly due in part to the fact Bianco enjoys the perks go with the CEO role and is a competitive kind of guy who doesn't shrink from a fight. The latter isn't surprising given his Bronx upbringing as a second-generation Italian kid in a household shared by up to 20 relatives at a time in an environment where "you were okay as long as you didn't leave the few square blocks of our neighborhood." Then he smiled as he recalled that his bus to high school made its closest stop 10 blocks from his home. "Every day I sprinted to the bus because if you couldn't get there faster than anyone else, you were a statistic." He admits he didn't do very well academically in high school, but by the time he found himself at NYU, he recalls that a major disappointment was the lone "B" he received among his "A's." Bianco had a love of the arts from a young age, an involvement that actually brought him into life-saving contact with his most famous patient and ultimately one of his closest friends. As I wrote in a column a few years ago, the first meeting between Jose Carreras and the young physician who would have a key role in the life-saving treatment for his rare form of leukemia turned out to be a bonding moment for the opera singer and a fan "blown away" at being his doctor. "I was a fellow at The Hutch working with Doctor Thomas when they told me a singer from West Side Story, the opera, was coming in for a transplant and since I was from New York, they thought I might know him," recalled Bianco. "Since I had been a season ticket holder at the Met, I immediately identified him and was blown away that I was going to have the privilege of being his doc," said Bianco. "When he met me he observed 'you're not from here, you dress different!' When I told him I saw him at the Met and I loved his performance of Carmen, we hit it off." That first meeting almost 30 years ago was likely on the minds of both Bianco and Carreras when the famed creator of "The Three Tenors" came to Seattle for a special event at Benaroya Hall. The event, billed as "A celebration of life and friendship," was to celebrate both the 25th anniversary of Carrera's victory over cancer and the 90th birthday of Dottie Thomas, wife of the Nobel-prize-winning doctor. The "private performance" recital for about 500 invitees who paid $250 each to support a research fellowship benefiting the Jose Carreras Research Institute and The Hutch, was sponsored by Bianco's company. "When I learned Dottie was turning 90, coupled with the fact that September, 1987, was the month I admitted Jose to the Hutch for his transplant, there was no better tribute to both of these milestones than to bring Jose back to the U.S. for a celebration," Bianco said.
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Forman's quarter-century focus on rural development

 

 

Washington has been more attuned than most states to the reality that creating successful economies in rural communities results from helping them grow and nurture what they have rather than merely trying to attract businesses from elsewhere to relocate.

    Maury Forman
Now as Maury Forman, the man who built this state's image of focusing on rural economic development for nearly 26 years, passes the baton, a new program aimed at attracting successful urban entrepreneurs to mentor rural business people is seen by his successor as a "priority program" for the future.

Recruitment and retention, generally in that order, have been the key words that guided the programs of economic development organizations in smaller communities across the country for years, usually with marginal success. But retention has been a generally amorphous patchwork.

But for a quarter century as senior manager in the Washington State Department of Commerce and head of the Office of Economic Development and Competitiveness, Forman has kept his focus on enhancing the success of rural communities by emphasizing the words nurture and growth.
Forman, who has served under five governors, a similar number of department heads and in an agency that has occasionally changed names to connote sometimes different emphasis, is retiring from the role he stepped into in 1991 and soon thereafter began crafting a rural-support image for the state.

And his vision for rural enhancement has grown over the years, coming to emphasize the importance of entrepreneurs and more recently the importance of young people to their communities.
He once shared with me the view that if programs are to enhance local economic development they "must nurture the belief that young people who grow up in rural communities can be guided to start businesses in their own community rather than moving to urban centers."
"Just as young people are looking at new ways to enter the work force other than working for someone else, so too are communities looking for ways other than recruitment of businesses from elsewhere to grow their economies," Forman told me in an interview last year.
Anne Nelson      
Now Forman is turning over the role of guiding rural communities on successful economic development paths to Anne Nelson, who has started several businesses and worked as a community and economic developer before becoming an instructor at Walla Walla Community College in business, entrepreneurship and marketing.
In an example of Forman's typical sense of humor, he says "she will essentially be serving those rural areas as Executive Innovator and Enlightener of Ideas Officer (or EIEIO as we say on the farm)."
In fact, Nelson shared with me an incident in the Eastern Washington community of Dayton that she thinks may serve as a model for what she hopes will emerge as urban-rural mentoring.

Seems a much-loved bakery in Dayton was closing because the owner was retiring. Nelson heard discussion about it at a local restaurant, was aware of a young woman who was hoping to someday own a restaurant and created a contact with retired Seattle restaurant owner Paul MacKay. The founder of El Gaucho and a chain of other restaurants had retired with his wife a few years ago to Walla Walla to a 100-acre spread to grow wheat and grapes.

But once he learned of the Dayton bakery situation, MacKay soon got the young woman set up as owner manager of the bakery.
"I see the support for that young, aspiring bakery owner from Paul MacKay as a model we can see more and more of across this state," Nelson said. "The key is that rural entrepreneurs are clear about their sense that mentoring is even more important than capital."

The program, called Startup365, has been running for about a year under the management of Greater Spokane Inc., the region's chamber of commerce, aimed at connecting Spokane area business people as mentors for entrepreneurs and small businesses in Asotin and Whitman counties.

But Nelson says Startup 365, created by the legislature, is aimed at retaining the intellectual wealth and economic vitality of rural areas by focusing on entrepreneurship and small business growth. "That will help communities flourish organically and will be a priority program that I can spend more time on, functioning a large part of my time in Walla Walla."

"I do believe that urban-rural mentorship will be a key piece in building rural businesses, especially as I see the urban entrepreneurs being more in touch with the technologies and tools that help businesses be successful," said Nelson.

One of those technology tools, Skype, she hopes will be employed at least once a week in connecting rural entrepreneurs with their urban mentors. The Spokane program is being supported by Avista, the Spokane-based utility that has a long track record of supporting business development in the region.

But before Nelson gets to focus on developing the urban-rural mentorship idea, her first order of business will be overseeing in November the fifth annual Global Entrepreneurship Week activities in all 39 counties.

Although in Washington, the annual celebration of innovators and job creators involving 88 countries last year became Global Entrepreneurship Month. Nowhere is GEW, or GEM in this state, treated as a bigger deal than what Forman put in place in Washington, which is the only state with events in all counties.

Jack Schultz, whose focus on assisting rural economic growth helped him come to be known as the guru of rural economic development as keynoter at more than 400 conferences around the country and author of "Boomtown USA: The 7 ½ Keys to Big Success in Small Towns," credits entrepreneurial support as a key to rural success.

Schultz, of Effingham, IL., whose Agracel Inc. is the largest industrial development company focused on developing projects and creating jobs in rural towns, told me he had not heard of a mentorship program like Startup 365.

But Schultz, who said he has long been an admirer of Forman's, said "I think it makes a lot of sense and is something very innovative."

Referring to findings from his visits to hundreds of small towns to gather information for his book, Schultz said in an email: "Embracing entrepreneurism in communities was a key factor which differentiated great communities from also-rans.  Increasingly, we are seeing those great communities taking it a step up by tying their local entrepreneurs up with their young people, educating them on both entrepreneurship and also the great things happening in the private sector of their towns."
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Wireless icons Stanton, Thomsen focus on baseball

John Stanton and Mikal Thomsen were in their late 20s when they teamed up at McCaw Cellular to become part of the birthing of a fledgling communications technology whose growth globally they helped guide through several major companies over the next 20 years, becoming iconic figures in the wireless industry.

Now just into their 60s, both have parlayed their business success into owning and guiding professional baseball teams, what they might well agree is a passion that rivals their business focus.

A business focus remains, however, as they continue to manage their Bellevue-based wireless venture and investment firm, Trilogy Equity Partners, formed by a collection of long-time wireless partners after the sale of their Western Wireless to Alltel Corp. in 2005.

Thomsen once told me that the opportunity six years ago to create the ownership team that bought the Tacoma Rainiers was like his “dream come true.” He would be owning his hometown team that he had grown up rooting for from the time his dad took him to his first game at age three. That was the year that the then-Tacoma Giants returned after a 55-year absence.

Stanton, who will soon assume the role of CEO of the Seattle Mariners after the ownership group he leads completes its purchase of the team from Nintendo of America, also recalls attending the games of his hometown team with his father. That was in 1969 when, as a teenager he became a fan of the Seattle Pilots in their first and only year of existence and recalls crying when they left town for Milwaukee.

Thomsen would undoubtedly echo Stanton’s “I am first and foremost a baseball fan” comment  that he made to the media gathering at Safeco Field when he was introduced as the leader of a 17 member local group that would become 90 percent owner of the team and he become the CEO, once Major League Baseball owners bless the deal.

Thomsen and his wife, Lynn, and Stanton and his wife, Terry Gillespie, are all alums of McCaw Cellular in the ‘80s and are now on the team of co-owners of the Tacoma Rainiers, though the oversight of the franchise, including attending many games and spending about 10 hours a week in the office during the season, falls to Thomsen.

The owners are fortunate that the baseball team acquisition included Aaron Artman as club president, a former Microsoft executive who oversaw the $30 million renovation of Cheney Stadium and remained with the new owners in the role of president.

Stanton’s and Thomsen’s baseball involvement extends across the state and all the way down to the West Coast League, an amateur collegiate summer league, where they are among owners of both the Walla Sweets and the Yakima Valley Pippins.

But it was when Thomsen had the opportunity to put together the purchase of the Tacoma Rainiers in 2011 that he turned to Stanton and his wife, an avid baseball fan herself, to become part of the ownership group.

Thomsen has immersed himself in his hometown baseball team and has enthusiastically committed to its increasing success, despite being the smallest market in far-flung Pacific Coast League and being the closest Triple-A team to a major league city.

In fact, the Seattle Mariners and the Rainiers are not only geographically close, which Thomsen admits may sometimes cost the Rainiers attendance of fans heading for Seattle, but close in that the Rainiers are the Mariners’ triple-A farm team.

As Thomsen puts it: “Most of the Rainiers fans are Mariners fans who enjoy keeping up with both teams and hearing about the players they saw in Tacoma performing with the major league club. I think the nearness of the M’s cuts both ways.”

In addition, the relationship is good for the Rainiers’ bottomline since the Tacoma roster is determined by and players’ salaries paid by the Mariners.

A lot of the changes brought about since Thomson’s group bought the team relate to community things, but he is pleased about what has happened in the stands and on the field.

At this point, atop PCL pack, the Rainiers seem headed for their first playoff appearance since Thomsen’s group bought the team, though Thomsen cautions that “it’s a long way from certain. We are only three games up on Fresno.” Plus the team appear on the way to another franchise attendance record, though beating the 352,000 attendance mark of last season is well behind the nearly 680,000 of the Sacramento River Cats.

In addition, Thomsen notes that the decision by the ownership group three years ago to build a new set of stands in left field “has been a stunning success,” adding that he celebrated his 60th birthday there in early May this year “with a couple hundred friends.”

He says the change of the team’s logo two years ago to “the now somewhat iconic ‘R’” has helped drive merchandise sales “through the roof.”

In terms of community involvement, he says the Rainiers “teamed this past off season with Tacoma Parks, the Cheney Foundation and Mary Bridge Hospital to add a playground behind the right field berm that includes a whiffle ball stadium,

“It is packed for most games and open as a public park when games are not going on in the stadium,” he adds.

“The community views this as a partnership and we go out of our way to be great partners,” Thomsen says with obvious pride.

 

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Alaska Airlines begins wooing process for Virgin America fans

Alaska Airlines’ goal of winning friends and influencing people in the Bay Area, whose hometown airline is about to be absorbed by the Seattle-based carrier, began in earnest Tuesday night in San Francisco as Alaska executives and board members hosted a gathering for local leaders.

Some 250 business, political and community leaders were on hand at the Four Seasons Hotel in San Francisco for an event whose theme was “Flying Better Together.” The goal of the gathering of Bay Area who’s who was for them to meet and begin to get to know the leadership of the airline that is buying Virgin America, the Richard Branson-founded carrier that began service as San Francisco’s hometown low-cost airline nine years ago this month.

During that nearly a decade of service, Virgin built what many in the Bay Area have described as “almost a cult following,”with many regular flyers enthusing that they “love Virgin.”

Aware of that challenge, Alaska CEO Brad Tilden and his executive team have sought to express sensitivity to the cultural issues and the initial backlash from Virgin fans. That awareness was pointed up a few weeks ago when Tilden told the Wings Club, a group of aviation professionals in New York, that he was thinking of running the Alaska and Virgin as separate airlines within Alaska Air Group.

Such an outcome may or may not still be a possibility, but when I asked Joseph Sprague, Alaska senior vice president, after the Tuesday event, about Virgin continuing to function as a third carrier, he said: “ Initially it will be a third airline but by 2018 it will be merged into Alaska.”

But Alaska leadership is playing up a cultural fit they see existing between Alaska and Virgin, rather than addressing the different styles.

Sprague said “a lot of the integration pre-planning work has revealed an encouraging number of similarities from which we can build.” 

He noted that Tilden, in his comments to the group Tuesday, pointed out three such similarities: “both have an obsessive focus on the customer, we both want companies that are employee-driven and we both have a strong leaning towards innovation around the customer experience.”

Alaska’s San Francisco community gathering came exactly s week after shareholders of Virgin America approved the acquisition by Alaska Air Group, with Virgin’s chairman announcing the voting results at a brief shareholders meeting on July 26.

That Virgin shareholder approval was the next-to-last major hurdle for the takeover, with the remaining step being U.S. Justice Department approval. Closing by October is expected for the $4 billion deal ($2.6 billion in cash and the rest in assumed debt and other costs) that Alaska had to put together to beat out Jet Blue.

It’s quite possible that the shadow of Delta Airlines’ seeming predator pursuit of Alaska that left key Alaska supporters concerned Delta was seeking to force a takeover played a role in Alaska’s decision to acquire Virgin America for a very large premium.

But in addition to likely ending concern about Delta coveting a takeover, Alaska also gets Virgin’s lucrative California routes as well as keeping Jet Blue, the losing suitor in the Virgin bidding contest, from acquiring the routes.

In fact, it’s perhaps amusing to consider the community response if Delta, after a hostile takeover of Alaska, held a reach-out event with the theme “get to know us.” They’d have faced a ferociously hostile audience in Seattle.

But obviously Alaska, which has been successfully serving the Bay Area from three airport for years, isn’t perceived as a bad guy, more just a carrier that locals don’t know a lot about other than it has an excellent record in all the areas airlines get rated.

In fact, as Phyllis Campbell, Alaska board member and Pacific Northwest chairman of JP Morgan Chase, put it after the event: ‘I think it is emblematic of Alaska Airlines to reach out to the community in a spirit of collaboration and collegiality. Having dinners like this send the message that we want to be the best airline going forward for the Region and also the best citizen in terms of community partnership.”

In fact, the event was apparently successful enough from Alaska’s perspective that Sprague said “we will likely do additional events, both of our own and sponsoring others.”

Still there are Virgin supporters whose love affair with the airline was partly due to the fact it was the Bay Area’s hometown airline. And the takeover will mean not just the end of Virgin’s “hometown” ties, but also that California will no longer have an airline based in a state that has served as home to a variety of important carriers over the years.

As Mary Huss, publisher of Puget Sound Business Times, summed up when I asked her about it: “I think people were very proud that Virgin chose to locate and start up here when it did.”

But while Jet Blue lost the bidding to Alaska, it is seeking to woo Virgin fans away before Alaska can convert them by looking for ways to exploit what it senses as uncertainty of flyers about the transition. It has been touting giveaway deals to potential frequent users of Jet Blue’s longhaul service from New York to San Francisco and Los Angeles, including its tongue-in-cheek wooing of Jet Blue “virgins,” those who haven’t previously tried Jet Blue.

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Stephen Vella: turns around airlines, creates flying mansions

Stephen Vella, a congenial Brit who spent his career building airlines before turning his attention to creating flying mansions for the global elite, is the man whose Kestrel Aviation Management oversaw creation of the first VIP interior on a 787-8 Dreamliner.

The first VVIP outfitted BBJ, as its officially referred to, has gotten global visibility for those who partnered with Vella’s company, which had turnkey responsibility for the project from purchase of the plane to planning and design of the special interior to meet the requirements of the Asian client who will operate the aircraft. The partners included Greenpoint Technologies of Kirkland and Pierrejean Design Studio of Paris.

The specially outfitted Dreamliner is back in Moses Lake, where the work to install the unique interior was done, as it awaits final signoff by the FAA and final closing of the sale to an undisclosed owner.

“Undisclosed owner” is the usual description of individuals, countries or companies who decide they wish to own a castle in the sky and contract with Vella and Kestrel to manage the purchase, design and delivery of the aircraft. Nohl Martin, Vella’s vice president for business development and communications, says outfitting the special interiors can cost as much as the airplane itself with the finished product, once the widebody is aloft, sometimes described by buyers as airborne oases of peace.

But these are oases that are reserved for the elite, both in stature and resources, and the fact they seek out Vella has made him a valued relationship for Boeing, but also for Airbus, since the contract for design and implementation of one of these widebody interiors begins with the purchase of the plane itself.

I had an opportunity recently to interview Vella while he his partner Martin, a longtime friend of mine, were on a visit to Kirkland, where she has family.

The Dreamliner, representing the first conversion of a composite and nearly all-electric aircraft to incorporate a high-end cabin and thus requiring virtually the entire focus of the Kestrel team for the past two years, is the 11th widebody conversion that Vella’s team has managed from purchase through entry into service. The company has also done 10 narrowbody VVIP cabin conversions.

But as communications vice president Martin points out: “Sadly it is a sector that rarely allows us to publicize our work -- until this 787 project.”

Visibility was not a problem for Vella when he was turning around airlines, particularly the nearly 15 years he spent helping turn Qatar Airways from a struggling, five-plane regional airline into one of the handful of the world’s Five Star airlines.

When Akbar Al Baker, Qatar’s group chief executive, was tapped by the Qatar government in  1997 to take over the failing airline, he contracted with Vella, who functioned for the next 15 years as basically the airline’s COO, doing the long-term planning, fleet management, overseeing brand development as well as mergers and acquisitions.

By early this decade, Qatar Airways was operating 150 planes with another 200 on order, producing billions of dollars in sales for Boeing, but also for Airbus since the fleet, Vella estimates, is about half from each manufacturer.

Vella, 62, is a native of Gibraltar, the British Overseas Territory at the southern end of the Iberian Peninsula, and he explains that, despite being a citizen of the United Kingdom, Spanish is his first language.

His upbringing in Gibraltar and his fluency in Spanish, along with a healthy dose of self confidence, allowed him to build his reputation in the airline-turnaround business early.

He recalls that he was still in college when he took time off to visit with an official the prime minister back in Gibraltar and convinced him to grant Vella a Masters scholarship in return for assisting the City architect in redesigning the airport terminal.

After graduation, he approached executives of British Caledonia and pitched that the fact he was bilingual would allow him to launch the airline’s Latin America routes.

He recalled with a chuckle that the pitch allowed him to land a job at a time when there were no jobs to be had and while he worked for peanuts, he was able to see the world.

By his early 30s he had become general manager of British Caledonia’s fleet management division, but at that point left to start his aviation consulting firm and early on helped Richard Branson acquire his first 747.

Vella has turned around eight airlines, including Qatar and the Spanish airline Air Nostrum, a Iberia affiliate, which is now the largest regional carrier in Europe, and started several airplane leasing companies, including one for Rupert Murdoch.

I asked Vella to give me a sense of what he thinks the future holds for the industry and he offered a couple of predictions. One, Asia is a fertile field for new airlines to come into existence. And he suggests that in this county we’ll see consolidation bring the industry down to four large airlines. He declined to name those he thinks will compose the final field of four.

 

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Oregon ballot measure would dramatically boost business taxes

Just as the races for state and national offices in the November General Election may demonstrate that anger can trump reason, voters in Oregon will be faced with deciding a ballot measure that will test whether anger at big business over things like soaring executive compensation exceeds logic.

At issue is IP28 (Initiative Petition), which targets Oregon's biggest corporations — roughly 1,000 by the state's estimates, or about 4 percent of businesses. Those with $25 million in Oregon sales would pay a minimum $30,000 tax, plus 2.5 percent on anything above that threshold.

In essence, it would be a tax on gross receipts, like Washington’s business & occupation tax, generating an estimated $6 billion in new revenue. Except in Oregon it would be in addition to the tax on personal and corporate income and would boost corporate tax collections more than five-fold.

As my friend Don Brunell put it in his latest column, which alerted me to the fact the measure had been cleared for the November ballot by collecting the required 130,000 signatures, “Washington’s next economic development plan may be written by Oregon voters next November.”

His point was that “Oregon voters need to remember that Washington and California have heavy concentrations of large businesses and stand to benefit from passage of IP28 and that while all parts of Washington would gain, the corridor between Vancouver and Longview could be the biggest winner.”

Brunell, retired president of Association of Washington Business, in his more than a quarter century at the helm of the state’s largest business association saw all the off-the-wall ideas for taxing business. But it’s as a longtime observer that he shakes his head at this proposal, noting the tax scheme “would transform Oregon from one of the nation’s lowest business-tax-burden states to one of the nation’s highest.”

Organizations that purchase products and services from those major businesses would undoubtedly see their costs increase and thus would need to increase their price for items resold to Oregon consumers. In response to this, businesses purchasing goods in Oregon may opt to leave the state or relocate some or all of their facilities to avoid the increased cost of doing business in that state.

IP28 is sponsored by Better Oregon, a labor union coalition led by the Oregon Education Association, and targets “big business”.  Proponents claim it would tap a tiny portion of Oregon businesses while bringing a huge revenue boost to cash-strapped public education, health care and senior services.

The non-partisan Legislative Revenue Office, in evaluating similar proposals to IP28, has forecast job losses should a gross receipt tax pass.

Former Washington Gov. Mike Lowry, who despite being perhaps Washington’s most liberal governor carried an understanding of the importance of nurturing big businesses as the creators of better-paying jobs, offered his classic belly laugh when I called him for his thoughts on the initiative.

“We always looked to Oregon for progressive ideas but this would represent the total opposite,” Lowry said. “The gross-receipts tax is about the worst tax there is.”

Amusingly, Lowry understood how to use the tax as a whip. In his first year in office he sought to have the Democrat-controlled legislature extend Washington’s sales tax to service businesses like law and accounting firms, which used their lobbying clout to beat back the effort.

But they paid a price by having the lawmakers impose the highest b&o tax rate on services, a payback in the form of a 2.5 percent rate, which though now reduced to 1.5 percent remains the state’s highest rate, reserved for service businesses and professional gambling.

Most gross receipts tax rates around the country are relatively low when compared with the Oregon proposal’s 2.5 percent rate. In Washington, it ranges from 0.138 percent to the aforementioned 1.5 percent. Thus if the measure were to pass, the tax burden of operating in Oregon would increase dramatically when compared with other states.

Proponents argue that “IP28 would modestly raise the effective tax rate of large corporations and use the added revenue to fund Oregon's crippled public school system, provide services to seniors, and extend health care coverage to 18,000-plus children.”

Problem is if it comes to be marketed to voters as “the big-business tax,” the result could be that anger overrides common sense for voters, among whom would be many that would face loss of their jobs if the analysis of business reaction proves true.

The ballot proposal comes as raising taxes on wealthy individuals and large corporations is at the forefront of a national debate — especially among Democratic progressives, including much of Oregon's electorate— about how to close the gap of economic disparities between rich and poor in the post-Great Recession era.

And if there is a doubt that anger at big business underlies the measure, and leaves concern about the logic voters will bring when they mark their ballots, supporters point to the current difference between growth in corporate profits vs. growth in family income in Oregon. They say it’s time big business takes on its fair share of the tax burden to help pay for education and social services.

Business people in Southwest Washington are not only looking to gain business if the measure is approved, they are having some amusement thinking about it.

When I talked with longtime Vancouver businessman Michael Worthy about it, he chuckled and offered that the two-state effort to agree on financing a new I-5 bridge across the Columbia could be solved by letting firms that would want to move operations out of Oregon might want to pay for improved transportation they’d need.

And when I asked Brunell why he thinks intelligent voters would go for a tax that would likely impact them, and perhaps their jobs, he replied: “I suspect, knowing Oregon a little better by living down here in Vancouver, there is a reason for the bumper sticker: ‘Keep Portland Weird.’” 

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Seattle investor friends focus on 'The Holy Grail of Energy' train project

The six-year-long commitment by two successful Seattle-area businessmen to sustain the alternative-energy breakthrough technology that one of them describes as "the holy grail of energy" is close to paying off. The story of their commitment to develop the technology owned by their company named Advanced Rail Energy Storage LLC (ARES) is as intriguing as that of the business itself.

ARES' launch project is a rock-laden train of special electric cars that would run up and down a long hill in the Nevada desert near Pahrump, 60 miles west of Las Vegas, to demonstrate on-demand delivery of electricity. The $55 million, 50 megawatt project is gathering interest from utilities across the county as it moves into final funding phase, fulfilling the vision of investor friends Art Harrigan, a respected attorney, and Spike Anderson, successful businessman who describes himself as a serial investor.

The two have partnered since 2010 to provide the majority of the funding for planning and preparation for ARES and its ARES Nevada project's launch, which is planned for spring of 2017 with completion expected by spring or early summer of 2018.

Now they are in the final fund-raising push for the last $15 million of equity and $15 million of debt necessary to cap the $25 million already committed and begin construction on a six-mile long track with 7.5 percent grade on 43 leased acres of BLM land

ARES Nevada will be the prototype for future projects elsewhere in the country. The Nevada project is smaller (able to fully discharge for a period of 15 minutes at 50 megawatts) than future projects are likely to be, though William Peitzke, the company's director of technology development, notes it will be "the largest energy regulation management project ever in the West."

As word of the planned Nevada project has spread, a number of utilities have reached out to the leaders of ARES, who invited about 30 representatives of utilities and the Electric Power Research Institute (EPRI) to a March 1 demonstration of a functioning scale model.

The gathering at the quarter-scale, proof-of-concept project in Tehachapi, in the mountains east of Bakersfield, CA. prompted EPRI representatives to announce to the assembled utilities people that they would develop an EPRI demonstration project and seek funding from member companies.

Since then, the ARES project has attracted media attention from the likes of Forbes and Fortune and, in recent days, from a newspaper in Finland.

Part of the interest generated in ARES, which is a company headquartered in Santa Barbara with its initial project incorporated as ARES Nevada, is due partly to the quality of the management team Anderson and Harrigan have attracted. The CEO is James Kelly, who for almost four decades was a key executive at Southern California Edison, and the executive vice president is Steve Sullivan, who worked with Kelly at Southern Cal Edison and guided many of his projects there.

But given that the two principal funders of ARES have not sought to put themselves in the limelight on this project, despite the fact they were largely responsible for generating the $15 million necessary to reach this point and attract this management team, ARES has not gotten the extended visibility it might need for the closing rush to funding.

But that will likely change as media, both nationally and locally in Washington State, begin to focus on the principal investors because their past successes in business amount, in the minds of many potential investors, to an imprimatur of likely success of their projects.

I've written recently about Harrigan, who is chairman of the ARES board, relating to his legal involvement setting the stage for Seattle's two major league sports teams to be saved and brought under local ownership. But he was also closely involved with Craig McCaw's Eagle River, formed after the sale of McCaw Cellular to AT&T. And he provided the legal guidance that gave birth to Nextel Partners, one of the nation/s largest cellular companies in the late 1990s, was involved in setting up Nextel's IPO and served on its board.

Anderson, whose career in sales and marketing included building one of the most successful reps firms on the West Coast then co-owning and eventually merging his firm, by then Anderson-Daymon, and building Costco's largest supplier of goods and services. Recently he founded, is funding and acting aa CEO for Clean Global Energy, a Bakersfield-based firm developing a process its website describes as "redefining oil separation in a better, cleaner way."

Part of the emerging visibility for Harrigan and Anderson was a letter Anderson recently sent to prospective investors explaining the project in detail and soliciting investors for the final $15 million of equity needed to get ARES Nevada project underway.

Anderson explained, in the extensive narrative on the project to the audience of more-than-qualified investors, that he would take the investing lead in the project with $10 million of the amount needed to complete it.

"We believe we can raise $15 million in debt, and will offer the remaining balance on the exact terms of my personal investment," Anderson explained, adding that "we believe that we can achieve close to a 25 per cent return on equity with ARES Nevada over the next few years "

"By running a train up and down a hill, ARES can help utilities add and subtract power from their grid on demand," Anderson explained in his letter. "A 19th century solution for a 21st century problem, assisted by that abundant natural resource called gravity."

And inevitably, the image of a train loaded with boulders running up a hill has spurred the metaphor of Sisyphus, the king from Greek mythology who was punished by the gods by being forced to roll an immense boulder up a hill, only to watch it roll back down, repeating this action for eternity.

Of course the Sisyphus image is flawed because the boulder being forced back downhill highlighted Sisyphus's forever failure whereas the trains loaded with boulders imbedded in sand rolling down the hill will exemplify the success of the ARES project.

Anderson explained that Shuttle trains, referred to as modules that are each made up of two electric locomotives and multiple weighted cars, will go up or down the track to either take electricity off the grid on the ascent or supply electricity to the grid by descending.

An example of the fact the Nevada project is on the small side of possible ARES projects, Harrigan and Anderson note that ARES can scale up to 3,000 megawatt, which would be a project as big as some hydroelectric projects. And Anderson noted that "the scope of the Nevada permit also allows for construction of a much larger system for an energy storage facility as well, essentially expanding the 50 MW system to add a 300 MW storage."

Said Anderson is his letter to prospective investors: The real problem we are addressing is providing an answer to the question of how do we generate more power since we can't build more dams, states are not permitting for fossil-fuel power generation and nuclear is enormously expensive."

Kelly suggests that a large part of the likely ARES appeal to investors and potential utility customers is that "ARES can be deployed at around half the cost of other available storage technologies and produces no emissions, burns no fuel, requires no water, does not use environmentally troubling materials. And it sits lightly on the land."

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Stuart Anderson, cowboy-country icon, dies at 93

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Stuart Anderson, with his 2,400-acre cattle ranch abutting the freeway in Central Washington and his signature mustache and cowboy hat, was the icon of cowboy country as he built what was regarded, in the 1980s, as the nation's most successful chain of affordable steakhouses. (It was actually dinner house chains but probably doesn't matter.)

Anderson, 93, passed away peacefully Monday at his Rancho Mirage home., surrounded by his family, including his beloved wife Helen, who was his partner for more than 40 years. He had been a diabetic for years but it was lung cancer that caused his death, though he had quit smoking in 1980.

Stuart Anderson founded his Black Angus/Cattle Company Restaurants chain in Seattle in the 1960s and from its corporate headquarters there he grew it into a chain of 122 restaurants spread across 19 states, with more than 10,000 employees and $230 million in annual revenue.

I felt compelled to come and talk to Stuart about his knowing he was in the final stages of life and that he was reconciled to that fact because he had led such a special life. It was filled with family, success, travel and, as Helen said, "lots of love." He had agreed to have me come down on Saturday to his home and work on his obituary together but that was not to be.

That became clear with the email Monday from Helen: "My wonderful, sweet, best friend Stuart has gone to that Mansion in the sky. He will be missed more than words can tell. He was larger than life and loved by so many. He was so pleased with the 93 wonderful years he had but said he was ready to go. Thanks for all the prayers and good wishes."

I first met Stuart four years ago when Betsy and I were vacationing in the desert. I had contracted with the Coachella Valley Economic Partnership to arrange a wine-and-cheese gathering of Northwest snowbirds to learn some business facts about their second home. The local Palm Springs Desert Sun publicized the event and as people visited, someone pointed out to me "there's Stuart Anderson," to which I responded: "I don't think so. I thought he was long gone."

So I went over to introduce myself to Stuart and Helen and learned that the guy with a weathered face and wearing a cowboy hat was much alive and provided an enjoyable get-to-know visit.

A couple of days later, I learned that he was actually going back into the restaurant business, reopening one of his first Black Angus restaurants, located in Rancho Mirage, (that had been forced to close and go out of business during the downturn) This is not really true. Someone came along to buy our lease which we gladly sold because of the downturn of the economy at that time. We were not forced to close.

So I produced a column about Helen and Stuart re-opening and running the restaurant, both of them visiting with customers and making the rounds each day for a number of months before it became clear that the challenge was too much for a man then nearly 90 who had been out of the business too long so gladly sold the lease.

I visited again four months ago with the Andersons at their Rancho Mirage condo, and found Stuart, who was speaking softly and slowly but retained the firm gaze he usually offered from beneath his cowboy hat. He wanted to talk about the book and the challenge of selling copies, compared to his first book. It is the story of how he built the restaurant empire that became a best-recognized national company. The book actually has a longer official title: "Corporate Cowboy. Stuart Anderson: How a maverick entrepreneur built Black Angus, America's #1 restaurant chain of the 1980s."

He first tried his hand as an author when in 1997 he produced "Here's the Beef! My Story of Beef," a book he described to me as "fun and informative," but most importantly to him, thousands of copies were sold in the Black Angus restaurants. The book was meant to be an answer to the highly popular Wendy's commercial of the time in which an elderly lady asks: "Where's the Beef?"

At that point it had been a decade since he had retired after five consecutive years of his restaurants being named the top steakhouse chain in the nation by USA Today in a poll by industry publication Restaurants & Institutions. He admitted candidly, in an interview we did a few years ago, that he decided to retire because the new owners took the fun out of his job.

At the time of his first book, he was still well-remembered, in Washington State in particular. He was often seen as a spokesperson for a series of television commercials he did in the Seattle area for a senior housing organization.

After retiring, he and Helen enjoyed their (You mentioned this in the 1st paragraph: 2,400 acre) ranch sprawled along Interstate 90 west of Ellensburg. He had bought the ranch in 1966 with the intent of raising the Black Angus cattle that would be served at his restaurants. But it turned out to be too great a challenge, for various reasons, so he continued to raise the cattle while buying his beef elsewhere, until he sold the ranch to Taiwanese interests, though to many travelers going past, it remains the Stuart Anderson ranch.

A private family gathering is being planned in Seattle but the celebration of life will be held in Rancho Mirage in November, which would have been his 94th birthday.

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Entrepreneur of the Year event has become community entrepreneurship celebration

In the quarter century since national accounting firm Ernst & Young (now rebranded as EY) brought its Entrepreneur of the Year event to Seattle and the Northwest, the annual black tie gala has represented a community celebration of entrepreneurship. And with that has come a growing awareness of the importance of recognition for those struggling to build businesses and create jobs.

That increased awareness of the role visibility plays has brought with it an array of events, created by firms, organizations and media entities who want to own a piece of visibility value of their own for creating visibility for and thus developing relationships with young companies and the entrepreneurs who guide them.

Indeed all of those other recognition events have brought value to the startup and entrepreneurial ecosystem by allowing individual firms to attract the attention of potential investors and potential new talent.

But the EY event has remained the most prestigious gathering for entrepreneurs, as this year's select group of honorees preparing for the June 17 event at the Sheraton Hotel are coming to learn. Among other things, Northwest winner get to move forward to compete for recognition at the EoY national and world events later in the year with winning entrepreneurs from the 145 cities and 60 countries in which the EoY event is held.

As Dan Smith, managing partner of the Seattle EY office, put it:"We've recognized many remarkable leaders who have disrupted industries, created new product categories, and successfully brought new innovation and technology to traditional industries."

In fact three winners in the local event have gone on to win at the national level. They are David Giuliani, who as founder and CEO of Optiva, won in the manufacturing category in 1997; Zillow Group CEO Spencer Rascoff, who won in the "services" category in 2013, and Zulily CEO Darrell Cavens, who won in the "emerging" category in 2014.

Smith notes that this year's finalists include 21 entrepreneurs from the life sciences, retail and technology industries, adding "we've definitely seen a lot of growth in these sectors compared to 30 years ago when the program started."

This annual Entrepreneur of the Year event has held a special attraction for me because of personal involvement, both before and since the event came to Seattle five years after Ernst & Young launched it in 1986 in Milwaukee.

Part of my regard for the event is having close connection to entrepreneurial honorees for this special recognition. The first was Kathryn Kelly, the president of a young Seattle firm ­­­called Environmental Toxicology, who was among those honored as finalists at the second event in Seattle in 1992.

Then came Pete Chase, CEO of Spokane-based Purcell Systems, who won in the communications category in 2006 and became a judge in the following three years, before guiding the sale or his company and launching a new company, Columbia International Finance, for whom I am doing some consulting.

And Leen Kawas, Ph.D., president and CEO of the promising young life science company M3 Biotechnology Inc., is a 30-year-old Jordanian woman who is among this year's honorees and whom I tout as changing the face of life sciences in this state. I have had the satisfaction of being an investor and providing introductions and visibility since she arrived at the helm of the fast-growing company in January of 2014.

The impact of the honor on the entrepreneurs nominated was evidenced by Kelly's reaction back then when I expressed my regret, having nominated her, for the fact she had been one of three finalists but had not won in her category.

"You have to be kidding! Just being here (including the video vignettes of each finalist shown before the envelope is opened and the winner disclosed) was the satisfaction of a lifetime," she said.

There is also a bit of amusement for me when I think of the Entrepreneur of the Year event in that as publisher of the Business Journal I was involved in two entrepreneur of the year events before Ernst & Young brought its event to Seattle.

That came about because Woody Howse, then a partner in the venture capital firm Cable & Howse Ventures, approached me about partnering in an event we named Entrepreneur of the Year, which we promoted and held in the mid-'80s to honor a single entrepreneur each year. It would be hard to top either of our honorees.

The first was W. Hunter Simpson, who had taken over defibrillator-manufacturer Physio-Control 20 years earlier and guided it into a global-leadership role in its industry. The next year we honored Microsoft founder and CEO Bill Gates, whose company was just then gathering momentum, having gone public a year earlier.

Cable & Howse, then the area's premier vemture capital, had a vested interest in creating visibility for entrepreneurs, as did the Business Journal. We were among many organizations then casting about to determine how best to serve those individuals who held the keys to our future.

In fact, some edginess on the part of the Ernst & Young Seattle leadership would have been appropriate at our having pre-empted Simpson and Gates as the two most impressive names in the local entrepreneur community at the time.

PSBJ and Cable & Howse partnered for several years thereafter with another accounting firm to stage a High Tech Entrepreneur of the Year event, before Ernst & Young Managing Partner Karl Guelich called me to let me know our party was over because the real thing was coming to Seattle.

Guelich had allowed us to go ahead without comment with a Seattle event using the E&Y copyrighted name, partly out of friendship and partly because he likely figured, as it turned out accurately, that our event might even lay visibility groundwork for the arrival of the official awards event of that name.

For perhaps a decade, the Business Journal was part of a process that represented a win for the firm, for the newspaper, and for the entrepreneurs as well. Ermst & Young always scheduled its event for a Thursday evening and provided all the advance detail needed for PSBJ to produce a special supplement with stories on the event and all the honorees, passed out to all attendees as a keepsake as they left the event and then it was inserted in the PSBJ copies that arrived in subscribers' mail the following day.

Since then some of the biggest names among regional entrepreneurs have been in the winners' limelight at the Northwest EoY. They included Mark Britton of Avvo, Jim Weber of Brooks Sports, Inc., Dara Khosrowshahi of Expedia, Inc., Gertrude and Timothy P. Boyle of Columbia Sportswear Company, Jeffrey P. Bezos of Amazon.com, Inc. and Howard Schultz of Starbucks Coffee Company.

So perhaps I'm prejudiced, but it seems clear that EY Managing partner Smith is accurate in suggesting that "the award has acquired a great deal of prestige, and is recognized around the world as an emblem of entrepreneurial success."

text here .

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Art Harrigan played legal role that helped save Seattle Mariners, Seahawks

..

The community thank you last week to former Sen. Slade Gorton for his instrumental role in saving major league baseball in Seattle was an appropriate reminder of his signal accomplishment for the community. But without detracting from Gorton's role, it may also be appropriate at some point to recognize the Seattle attorney whose legal victory set the stage for the search for a local owner.

That would seem particularly appropriate since the Seattle attorney, Arthur Harrigan Jr., had key legal roles in saving two of the Seattle professional sports franchises

Art Harrigan not only succeeded in forcing Mariners owner Jeff Smulyan to give business and community leaders four months to find a local buyer, but five years later he paved the way for a local sale of the Seattle Seahawks by preventing owner Ken Behring from moving the team to Los Angeles.

The legal confrontations with the owners of two of Seattle's professional sports teams came about because Harrigan's law firm, Calfo Harrigan Leyh & Eakes, long represented King County on an array of issues. And both owners came into conflict with the county because they sought to abandon the county-owned Kingdome and their leases there.

The venue for resolving the future of the Seattle Mariners franchise was what amounted to an arbitration hearing before Arthur Andersen, the national accounting firm agreed to by both sides to decide some key issues relating to the lease.

Since it wasn't a court process, which would have gotten large visibility for the battle between attorneys, Harrigan's maneuvering over the meaning of wording in Smulyan's contract regarding an attendance clause that was key to the final outcome was little noted, thus little remembered.

Harrigan's argued interpretation of the lease-requirement wording was accepted by the Andersen firm, so Smulyan was required to give an opportunity for a local buyer to be sought.

Of perhaps equal importance, Harrigan successfully argued that there should be a local value lower than the open-market value. The accounting firm agreed and set a "stay-in-Seattle" valuation at $100 million, rather than the national open-market value of $135 million that it had determined.

That created the opportunity for Gorton and others leading the effort to keep the team in Seattle to find a local buyer for $100 million, rather than $135 million, within four months.

No one knows if, at $135 million, Ninetendo's owner would have opted to pick up the cost of saving the Mariners for Seattle.

With respect to the effort to block the Seahawks' move, King County hired Harrigan's firm to keep Behring from fulfilling his widely publicized intent in the winter of 1996 to leave Seattle and move the team to Los Angeles.

Behring made the argument, after some tiles had fallen from the Kingdome roof, that he had concerns about seismic security of the facility as he announced that he was moving the team to Los Angeles.

Harrigan recalled the February meeting at the Woodmark Hotel at Carillon point at which he, King County Executive Gary Locke, Gary Locke, his assistant, and chief civil deputy Dick Holmquist with Behring's attorney, Ron Olson (who he noted was also Warren Buffet's attorney).

"Olson read from a yellow pad, explaining that the team, fearing earthquakes might impact the Kingdome, had to be moved to the comparative safety of Southern California and the Rose Bowl," Harrigan said. "Holmqust and I were trying not to laugh."

"We were poised to file a temporary restraining order the moment the trucks began rolling up to the team's offices in Kirkland," Harrigan said.

"So when Behring and Olson left the room, I made the call and the restraining order was filed," he added. "Had that not happened, we would have had to go to California and ask a California judge to send them back."

Behring had quickly, after the restraining order, filed suit in Kittitas County, so as part of the legal process, Harrigan also had to get the state Supreme Court to toss out that suit.

A few weeks later he and Behring attorneys met with NFL owners who were considering whether to allow the team to move, in the event Behring could escape the Kingdome lease, and made their presentations.

"I had brought Jon Magnusson and two other renowned structural engineers with West Coast seismic design expertise who explained that the idea that Southern California was safer than the Kingdome in case of earthquake was ludicrous," Harrigan said.

The legal maneuvering all came to an end when it was announced that Paul Allen had purchased the Seahawks.

While Harrigan, 72, is ranked as Seattle's top commercial trial lawyer by Chambers & Partners, which ranks the world's best lawyers and law firms, his legal activities have ranged well beyond the courtroom.

He worked with Craig McCaw in his early Eagle River Investments days, helped create the wireless company Nextel, which became a $7 billion public company, is a member of the boards of several public companies. His is chair, and was a principal fund raiser, for an interesting new company that will generate energy by storing electricity on trains.

Harrigan, a Harvard graduate with his law degree from Columbia, served as Senior Counsel to the U.S. Senate Select Committee on Intelligence, worked on an investigation of CIA intelligence activities related to Vietnam.

Most intriguingly, and perhaps as important as his later pro sports involvements in Seattle, he headed the committee's investigation of IRS intelligence operations, discovering that the agency was giving individuals' tax returns, under the claim of national security, to other intelligence agencies who were then misusing the information in sting operations.

.

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Attracting investors to Montana's Big Sky Country and its entrepreneurs

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Those who have watched or experienced Liz Marchi's commitment to provide funding for Montana entrepreneurs and startups for a decade might suggest that the term "angel investor" was coined specifically to describe her.

It was 2003 that Marchi, who had arrived in Montana with three daughters and her then husband and settled in the Flathead Valley, decided to create the state's first angel fund, Frontier Angel Fund I. The fund closed in 2006 at $1.7 million, $300,000 more than she had hoped.

She eventually guided the Kalispell-based fund, which had attracted investors from around the country who were either fans of or summer residents in the Big Sky Country, to lead three deals and gather a total of 12 active investments and was soon also overseeing angel groups that had sprung up in Missoula and Bozeman.

Because she successfully syndicated her deals with a number of other angel groups outside the state, she jokes that she has become "the grandmother of crowd funding." She's not referring to the formal definition of crowd funding but rather the syndication efforts she initiated that attracted a crowd of angels from numerous groups making small investments.

Now Marchi, who grew up near Jackson Hole, WY, but who had never been to Montana when she arrived here in 2000, says she is looking forward to making the investor-leader handoff to Will Price, whose roots in the state brought him back from Silicon Valley to create Next Frontier Capital, at $20 million the largest venture fund ever raised in the state.

Price, on the board of or a key executive with a number of Bay Area tech companies, did his due diligence on the attitudes of national venture and mergers & acquisitions firms toward Montana before making the move to Bozeman.

Price's fund, which closed last April a year following his decision to bring his family to the state where his father, Kent Price, is well known as Montana's first Rhodes Scholar and University of Montana board member, has already made two investments.

I've kidded Liz and her husband, Jon, who in 1978 founded Glacier Venture fund as the first venture fund in Montana and presided over it for 29 years, about being "Mr. and Mrs. Montana Money." To which she once responded: "We are more like Mr. and Mrs. Montana risk capital since we share a very high risk tolerance...and often share the consequences."

Although Marchi talks about making a handoff to Price, as well as "the next generation of angels, including some members of Fund II in their '30s, who slay me in terms of their abilities," she was completing the formation in August of $2.7 million Frontier Fund II, which has already invested $900,000 with syndication adding $300,000 for a total of $1.2 million already invested.

"We have 48 investors in 10 states and meet physically in Bozeman and the Flathead, alternating with a WebEx option," Marchi said, noting that investors met in Bozeman today, with investors from two continents and four states, including Montana investors from Bozeman and Kalispell to review three Bozeman companies.

That sounds less like "handing off" for the 62-year-old Marchi than welcoming the potential follow-on investment opportunity that venture capital can represent for angel. And she hopes Price's fund will provide.

She says she does have an agreement with Fund II to be the key administrator only for the next two years, but could opt to remain longer. And she is down to business cards representing her current five involvements.

But Marchi is genuinely pleased at the implications of the arrival in Montana of Price, who did his homework before deciding a venture fund could work in Montana.

Price shared with me the research he did with and his thoughts about how "changing values" will benefit Montana's ability to attract capital.

Montana was often dismissed as a "fly-over" state, meaning that the most viable potential investors on the east and west coasts usually just fly over on their way to the other coast.

But Price's SurveyMonkey sampling of both venture and merger & acquisitions firms and found that the appeal of the big sky to many increasingly disenchanted with urban challenges was strong but that direct air access is a challenge Montana must come to grips with.

Fully 70 percent of responding M&A firms said they would consider buying a company in Montana, even though 80 percent said they had never been to the state. And a third of the venture firms said they would consider doing a deal in Montana, although 47 percent said they had never been there.

The import of improved air access to a state that has no direct flights currently to the major markets was dramatically indicated with the response of M&A firms, 90 percent of whom said it was "important" or "Moderately important" to have direct air access to the market of their investment.

"That's something the state is going to have to address," Price said. "But I think it will be addressed."

Among venture firms, almost two thirds sad the quality of the local syndicate partner would determine their involvement.

Although Marchi herself has attracted investors from around the country, she observes that "Being away from the noise of the coasts keeps us grounded in an important way.

"The entire conversation and perception needs to move about rural America, what is going on here and its role in making our economy and our country work better," she said, expressing the principle that has guided her commitment to Montana entrepreneurs.

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Montana's 'angel' investor sees changing values boosting state's investor appeal

Those who have watched or experienced Liz Marchi's commitment to provide funding for Montana entrepreneurs and startups for a decade might suggest that the term "angel investor" was coined specifically to describe her.

Liz Marchi
Liz Marchi 
It was 2003 that Marchi, who had arrived in Montana with three daughters and her then husband and settled in the Flathead Valley, decided to create the state's first angel fund, Frontier Angel Fund I. The fund closed in 2006 at $1.7 million, $300,000 more than she had hoped.   
     
She eventually guided the Kalispell-based fund, which had attracted investors from around the country who were either fans of or summer residents in the Big Sky Country, to lead three deals and gather a total of 12 active investments and was soon also overseeing angel groups that had sprung up in Missoula and Bozeman.

Because she successfully syndicated her deals with a number of other angel groups outside the state, she jokes that she has become "the grandmother of crowd funding." She's not referring to the formal definition of crowd funding but rather the syndication efforts she initiated that attracted a crowd of angels from numerous groups making small investments.

Now Marchi, who grew up near Jackson Hole, WY, but who had never been to Montana when she arrived here in 2000, says she is looking forward to making the investor-leader handoff to Will Price, whose roots in the state brought him back from Silicon Valley to create Next Frontier Capital, at $20 million the largest venture fund ever raised in the state.

Price, on the board of or a key executive with a number of Bay Area tech companies, did his due diligence on the attitudes of national venture and mergers & acquisitions firms toward Montana before making the move to Bozeman.

Price's fund, which closed last April a year following his decision to bring his family to the state where his father, Kent Price, is well known as Montana's first Rhodes Scholar and University of Montana board member, has already made two investments.

I've kidded Liz and her husband, Jon, who in 1978 founded Glacier Venture fund as the first venture fund in Montana and presided over it for 29 years, about being "Mr. and Mrs. Montana Money." To which she once responded: "We are more like Mr. and Mrs. Montana risk capital since we share a very high risk tolerance...and often share the consequences."

Although Marchi talks about making a handoff to Price, as well as "the next generation of angels, including some members of Fund II in their '30s, who slay me in terms of their abilities," she was completing the formation in August of $2.7 million Frontier Fund II, which has already invested $900,000 with syndication adding $300,000 for a total of $1.2 million already invested.

"We have 48 investors in 10 states and meet physically in Bozeman and the Flathead, alternating with a WebEx option," Marchi said, noting that investors met in Bozeman today, with investors from two continents and four states, including Montana investors from Bozeman and Kalispell to review three Bozeman companies.

That sounds less like "handing off" for the 62-year-old Marchi than welcoming the potential follow-on investment opportunity that venture capital can represent for angel. And she hopes Price's fund will provide.

She says she does have an agreement with Fund II to be the key administrator only for the next two years, but could opt to remain longer. And she is down to business cards representing her current five involvements.

But Marchi is genuinely pleased at the implications of the arrival in Montana of Price, who did his homework before deciding a venture fund could work in Montana.
Price shared with me the research he did with and his thoughts about how "changing values" will benefit Montana's ability to attract capital.

Montana was often dismissed as a "fly-over" state, meaning that the most viable potential investors on the east and west coasts usually just fly over on their way to the other coast.

But Price's SurveyMonkey sampling of both venture and merger & acquisitions firms and found that the appeal of the big sky to many increasingly disenchanted with urban challenges was strong but that direct air access is a challenge Montana must come to grips with.

Fully 70 percent of responding M&A firms said they would consider buying a company in Montana, even though 80 percent said they had never been to the state. And a third of the venture firms said they would consider doing a deal in Montana, although 47 percent said they had never been there.

The import of improved air access to a state that has no direct flights currently to the major markets was dramatically indicated with the response of M&A firms, 90 percent of whom said it was "important" or "Moderately important" to have direct air access to the market of their investment.

"That's something the state is going to have to address," Price said. "But I think it will be addressed."

Among venture firms, almost two thirds sad the quality of the local syndicate partner would determine their involvement.

Although Marchi herself has attracted investors from around the country, she observes that "Being away from the noise of the coasts keeps us grounded in an important way.

"The entire conversation and perception needs to move about rural America, what is going on here and its role in making our economy and our country work better," she said, expressing the principle that has guided her commitment to Montana entrepreneurs.
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Gil Folleher, who built strong business-leader support for JA, remembered for his legacy

Junior Achievement, as an organization focused on enhancing young people's understanding of business and finances, has had a natural appeal to business executives and their companies. But Gil Folleher, who died over the weekend at the Eisenhower Medical Center in Palm Springs at the age of 75, brought business-leader support for JA in the Seattle area to a near-evangelical level over his years guiding JA locally.

folleher
Gil Folleher 
Most importantly, perhaps, in the words of PEMCO CEO Stan McNaughton, he "left a legacy of footprints that will be followed for a long time. He was a king-maker-and the kids were the kings (and queens)."

The JA footprints in Washington state have left larger marks than the organization's impact in other states and that has been due to Folleher guiding involvement by executives at the highest levels of their companies.

In fact, he set a model for other non-profits to aspire to with a pattern from the late '80s through his retirement in 1998 of presidents or CEOs chairing, and being actively involved on, JA's board.

There are many important non-profit causes in this region, ranging from the needs of children or the sick or elderly to arts groups and causes to advance the community. And the most successful ones are blessed to have business executives supporting with time and dollars to help point them in successful directions.

And this is a time of the year when business people and others of means should pause to remember the cause or causes that are fortunate enough to have their attention and even affection.

But few organizations have been more successful over the years than JA in keeping focused on its cause: helping guide the understanding of the free enterprise system among young people and, recently even more vital in the view of many JA supporters, teach the importance of financial literacy.

Folleher, who moved from his Seattle leadership position to a role with the national JA organization in 1998 before retiring to Palm Springs, is being remembered by both active and retired business leaders who were closely involved with JA and who thus knew him best for the value he brought to the economic education of young people.

Folleher's strategy of creating close relationships among his board members included the Puget Sound JA chapter sending the largest delegation each year to the National Business Hall of Fame, an experience that he understood would contribute to the bonding strategy. Thus he made the trips an important part of each year's JA activities.

During his second tenure with JA in Seattle the number of students impacted by JA programs quadrupled to more than 60,000, deficits became surpluses and the annual budget grew to more than $2.4 million.

And in the manner of the best of non-profit executives, he groomed his successor well and thus David Moore, JA President for what has grown to be JA oversight for all of Washington state, says of Folleher, "he was my mentor, friend and inspiration." 

Under Moore, who spent a decade as Folleher's marketing director before succeeding him in 1998, JA programs have grown and come to reach a dramatically expanding number of students around the state each year. 
 
It was through involvement with JA as publisher of Puget Sound Business Journal to create a local Business Hall of Fame in a partnership between the newspaper and his organization that I came to be close friends with Folleher and eventually served as chair of the JA board.

Ken Kirkpatrick, retired president of U.S. Bank of Washington, knew Folleher the longest because it was Kirkpatrick, along with his future wife SaSa, who met Folleher at the airport when he arrived in Seattle in 1972 for for his first stint guiding JA's Seattle operations.

Kirkpatrick recalls that he was only 17 at the time, but was serving as JA's temporary executive director, "along with my janitor job there. He treated me like a king and he gave me my first ever Christmas gift from an employer-a very fancy shoeshine kit that I used just last week."

Woody Howse, then guiding Cable & Howse Ventures and now described as "the grandfather of Seattle's venture-capital community" was incoming board chair when Folleher arrived in 1987, returning to Seattle after serving as JA's Senior Vice President in charge of programs and marketing nationally. 

"Folleher's network through all of JA was unparalleled and as a result we got the benefit in Seattle of a world-class sponger of Best Practices," Howse said.

Lasting friendships was true for me, and this column is an unabashed good-memories reflection on a man who not only became a good friend, but who was responsible for many of my closest friendships formed over the mutual connection to JA and the work we all did together to build and promote the organization and its cause.
 
Scott Harrison, retired president of Barclay-Dean Interiors, who also served a term as JA board chair, praised Folleher for guiding board members to "embrace the vision that Gil and his team had for JA."

And John Fluke, of Fluke Venture Partners (another top executive who took his turn as JA board chair) and the son of the man described as "The Father of JA" in this region, said "I know Gil would want all of us to do our part to advance JA's mission to bring economic and personal financial literacy to all K-12 students."

Rather than merely recall Folleher after his death, friends from around the country were able to be on hand in Palm Springs last January for his 75th birthday celebration where, as Moore recalls with a smile, "we partied for three days."

Now those who were close to Folleher will gather again, despite his insisting there be no service or memorial, for a toast and sharing of memories January 13 at 5:30 p.m. at the Waterfront Marriott.
 
In what amounted to an appropriate summing up, Moore noted: "I have always said we are warming by a fire we did not build since what JA is today is a legacy for Folleher's passion and leadership."'
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A rural economic development strategy focused on entrepreneurs

 

If Global Entrepreneurship Week, the annual worldwide celebration of innovators and job creators, had been a competition among nations, states and regions, Washington State could have laid claim to being the hands-down winner. And that would be appropriate recognition for the man who has guided much of this state's effort to advance entrepreneurship, particularly in rural areas and particularly with young people, for 25 years.

 

 

 

 

Maury Forman, senior manager for the Washington State Department of Commerce, is proud of the fact that in this state, GEW 2015 was actually Global Entrepreneurship Month and extended to every corner of the state with activities in all 39 counties. Four years ago, when Forman plugged the state into GEW activities, three counties participated.Forman says "we are changing the way communities look at economic development." That's an outgrowth of his effort, over much of his quarter century overseeing key economic-development sectors, to develop a culture of entrepreneurism in rural areas.

Global Entrepreneurship week was founded in 2008 by the Kauffman Foundation, the Kansas City-based 501c3 that is the nation's pre-eminent entrepreneur-focused organization, to create an annual celebration of innovators and job creators who launch the start-ups that drive economic growth.

 

Forman, who joined what was then the Department of Trade and Economic Development in 1991 in a career transition from healthcare at the age of 40, says "No other state can claim that every part of the state had at least one event that celebrated entrepreneurship."

 

 

"One of the exciting aspects of this year's celebration of entrepreneurship was the number of high school programs being held throughout the state," Forman said. "In many cases, college isn't the natural next step it was once for high school students so these programs expose them to the idea of starting their own business once they graduate. Or if they do go on to college, they can focus their education on skills that will allow them to start a business in the years to come."

 

 

Forman says he has kept his primary focus on rural economies because "they need the assistance much more than urban communities," as well as because he has become convinced that the strategies for growth of many rural areas that has been focused on recruiting companies from out of state is outdated.

 

 

"That has to change if rural communities are to survive," Forman said. "Communities have to be shingle ready and not just shovel ready."  

 

 

In a recent article in Governing, a national magazine covering state and local government news, Forman wrote about Washington's three-year-old program called Startup Washington that focuses on building local economies "organically" by serving the needs of local startups and entrepreneurs.  

 

 

Forman is likely among the national leaders in the conviction that programs to enhance local economic development "must nurture the belief that young people who grow up in rural communities can be guided to start businesses in their own community rather than moving to urban centers."

 

 

"Just as young people are looking at new ways to enter the work force other than working for someone else, so too are communities looking for ways other than recruitment of businesses from elsewhere to grow their economies," Forman said.

 

 

One of the ways he is seeking to do that "is by matching those students that are serious about being entrepreneurs with mentors, especially in rural communities."

 

 

Indeed matching students who hope to be entrepreneurs with mentors is becoming the model for successful communities, particularly rural ones, to pursue.

 

 

Some communities have long been employing that model, as chronicled in the oft-quoted book written by Jack Schultz, founder and CEO of Agracel, a firm based in Effingham, IL, that specializes in industrial development in small towns.

 

 

It was in pondering why some small towns succeed where others fail that Schultz set out on the backroads to rural America to find out as he became the nation's guru of rural economic development and wrote of his travels in Boomtown USA: the 7 ½ keys to Big Success in Small Towns.

 

 

I emailed Schultz about entrepreneurism's role in small town success and a possibly emerging role for mentor programs.

 

 

"Embracing entrepreneurism in communities has been a key factor that differentiated great communities from also-rans," he emailed back. "Increasingly, we are seeing those great communities taking it a step up by tying their local entrepreneurs up with their young people, educating them on both entrepreneurship and also the great things happening in the private sector of their towns."

 

 

Schultz' successes in believing in small-town entrepreneurs and small-business lending is partly responsible for the fact the Effingham-based bank he helped found and now chairs the board, has grown eight fold to $2.9 billion in assets and gone public.

 

 

"At Midland States Bank, we have very much focused on small business lending and it has been a major factor in our growth over the last several years," Schultz said.

 

 

In an unusual and innovative commitment to the dozens of communities it serves, the bank has funded a not-for-profit institute to expand an entrepreneurship class that was started in Effingham eight years ago and has now expanded to 27 other towns.

 

 

Forman seemed intrigued by the details Schultz provided:  The class meets each day during the school year from 7:30 to 9 am; meets in local businesses; is totally funded by local businesses with a maximum contribution of $1,000 per business or individual.  Each class has a business and each student must also start a business.  

 

 

Meanwhile, Forman approaches his 25th anniversary with the department on January 1 having collected numerous regional and national awards for his work and successes. Those include last year winning the international Economic Development Leadership Award and recognitionby the Teens in Public Service Foundation with the Unsung Hero Award for his work with at risk kids.   

 

 

He has authored 14 books related to economic development, and has also designed and developed creative "game show' learning tools, including Economic Development Jeopardy, Economic Development Feud and two board games for the profession.

 

 

Forman credits the directors who have guided the department over his time there for allowing him "to be intrapreneurial," meaning behaving like an entrepreneur while working in a large organization, noting "not many government agencies allow the freedom to take risks in an effort to solve a given problem."

 

 

 

 

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Rural economic development and young people

 

If Global Entrepreneurship Week, the annual worldwide celebration of innovators and job creators, had been a competition among nations, states and regions, Washington State could have laid claim to being the hands-down winner. And that would be appropriate recognition for the man who has guided much of this state's effort to advance entrepreneurship, particularly in rural areas and particularly with young people, for 25 years.

https://mlsvc01-prod.s3.amazonaws.com/f9d31d49001/30a3ef8d-4001-4795-971c-0da1ede61b9e.jpg

Maury Forman

Maury Forman, senior manager for the Washington State Department of Commerce, is proud of the fact that in this state, GEW 2015 was actually Global Entrepreneurship Month and extended to every corner of the state with activities in all 39 counties. Four years ago, when Forman plugged the state into GEW activities, three counties participated.

Forman says "we are changing the way communities look at economic development." That's an outgrowth of his effort, over much of his quarter century overseeing key economic-development sectors, to develop a culture of entrepreneurism in rural areas.

Global Entrepreneurship week was founded in 2008 by the Kauffman Foundation, the Kansas City-based 501c3 that is the nation's pre-eminent entrepreneur-focused organization, to create an annual celebration of innovators and job creators who launch the start-ups that drive economic growth.

Forman, who joined what was then the Department of Trade and Economic Development in 1991 in a career transition from healthcare at the age of 40, says "No other state can claim that every part of the state had at least one event that celebrated entrepreneurship."

"One of the exciting aspects of this year's celebration of entrepreneurship was the number of high school programs being held throughout the state," Forman said. "In many cases, college isn't the natural next step it was once for high school students so these programs expose them to the idea of starting their own business once they graduate. Or if they do go on to college, they can focus their education on skills that will allow them to start a business in the years to come."

Forman says he has kept his primary focus on rural economies because "they need the assistance much more than urban communities," as well as because he has become convinced that the strategies for growth of many rural areas that has been focused on recruiting companies from out of state is outdated.

"That has to change if rural communities are to survive," Forman said. "Communities have to be shingle ready and not just shovel ready."  

In a recent article in Governing, a national magazine covering state and local government news, Forman wrote about Washington's three-year-old program called Startup Washington that focuses on building local economies "organically" by serving the needs of local startups and entrepreneurs.  

Forman is likely among the national leaders in the conviction that programs to enhance local economic development "must nurture the belief that young people who grow up in rural communities can be guided to start businesses in their own community rather than moving to urban centers."

"Just as young people are looking at new ways to enter the work force other than working for someone else, so too are communities looking for ways other than recruitment of businesses from elsewhere to grow their economies," Forman said.

One of the ways he is seeking to do that "is by matching those students that are serious about being entrepreneurs with mentors, especially in rural communities."

Indeed matching students who hope to be entrepreneurs with mentors is becoming the model for successful communities, particularly rural ones, to pursue.

Some communities have long been employing that model, as chronicled in the oft-quoted book written by Jack Schultz, founder and CEO of Agracel, a firm based in Effingham, IL, that specializes in industrial development in small towns.

It was in pondering why some small towns succeed where others fail that Schultz set out on the backroads to rural America to find out as he became the nation's guru of rural economic development and wrote of his travels in Boomtown USA: the 7 ½ keys to Big Success in Small Towns.

I emailed Schultz about entrepreneurism's role in small town success and a possibly emerging role for mentor programs.

"Embracing entrepreneurism in communities has been a key factor that differentiated great communities from also-rans," he emailed back. "Increasingly, we are seeing those great communities taking it a step up by tying their local entrepreneurs up with their young people, educating them on both entrepreneurship and also the great things happening in the private sector of their towns."

Schultz' successes in believing in small-town entrepreneurs and small-business lending is partly responsible for the fact the Effingham-based bank he helped found and now chairs the board, has grown eight fold to $2.9 billion in assets and gone public.

"At Midland States Bank, we have very much focused on small business lending and it has been a major factor in our growth over the last several years," Schultz said.

In an unusual and innovative commitment to the dozens of communities it serves, the bank has funded a not-for-profit institute to expand an entrepreneurship class that was started in Effingham eight years ago and has now expanded to 27 other towns.

Forman seemed intrigued by the details Schultz provided:  The class meets each day during the school year from 7:30 to 9 am; meets in local businesses; is totally funded by local businesses with a maximum contribution of $1,000 per business or individual.  Each class has a business and each student must also start a business.  

Meanwhile, Forman approaches his 25th anniversary with the department on January 1 having collected numerous regional and national awards for his work and successes. Those include last year winning the international Economic Development Leadership Award and recognitionby the Teens in Public Service Foundation with the Unsung Hero Award for his work with at risk kids.   

He has authored 14 books related to economic development, and has also designed and developed creative "game show' learning tools, including Economic Development Jeopardy, Economic Development Feud and two board games for the profession.

Forman credits the directors who have guided the department over his time there for allowing him "to be intrapreneurial," meaning behaving like an entrepreneur while working in a large organization, noting "not many government agencies allow the freedom to take risks in an effort to solve a given problem."

 

 

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Rural economic development and young people

 

If Global Entrepreneurship Week, the annual worldwide celebration of innovators and job creators, had been a competition among nations, states and regions, Washington State could have laid claim to being the hands-down winner. And that would be appropriate recognition for the man who has guided much of this state's effort to advance entrepreneurship, particularly in rural areas and particularly with young people, for 25 years.


Maury Forman 

Maury Forman, senior manager for the Washington State Department of Commerce, is proud of the fact that in this state, GEW 2015 was actually Global Entrepreneurship Month and extended to every corner of the state with activities in all 39 counties. Four years ago, when Forman plugged the state into GEW activities, three counties participated.

Forman says "we are changing the way communities look at economic development." That's an outgrowth of his effort, over much of his quarter century overseeing key economic-development sectors, to develop a culture of entrepreneurism in rural areas.

Global Entrepreneurship week was founded in 2008 by the Kauffman Foundation, the Kansas City-based 501c3 that is the nation's pre-eminent entrepreneur-focused organization, to create an annual celebration of innovators and job creators who launch the start-ups that drive economic growth.

Forman, who joined what was then the Department of Trade and Economic Development in 1991 in a career transition from healthcare at the age of 40, says "No other state can claim that every part of the state had at least one event that celebrated entrepreneurship."

"One of the exciting aspects of this year's celebration of entrepreneurship was the number of high school programs being held throughout the state," Forman said. "In many cases, college isn't the natural next step it was once for high school students so these programs expose them to the idea of starting their own business once they graduate. Or if they do go on to college, they can focus their education on skills that will allow them to start a business in the years to come."

Forman says he has kept his primary focus on rural economies because "they need the assistance much more than urban communities," as well as because he has become convinced that the strategies for growth of many rural areas that has been focused on recruiting companies from out of state is outdated.

"That has to change if rural communities are to survive," Forman said. "Communities have to be shingle ready and not just shovel ready."  

In a recent article in Governing, a national magazine covering state and local government news, Forman wrote about Washington's three-year-old program called Startup Washington that focuses on building local economies "organically" by serving the needs of local startups and entrepreneurs.  

Forman is likely among the national leaders in the conviction that programs to enhance local economic development "must nurture the belief that young people who grow up in rural communities can be guided to start businesses in their own community rather than moving to urban centers."

"Just as young people are looking at new ways to enter the work force other than working for someone else, so too are communities looking for ways other than recruitment of businesses from elsewhere to grow their economies," Forman said.

One of the ways he is seeking to do that "is by matching those students that are serious about being entrepreneurs with mentors, especially in rural communities."

Indeed matching students who hope to be entrepreneurs with mentors is becoming the model for successful communities, particularly rural ones, to pursue.

Some communities have long been employing that model, as chronicled in the oft-quoted book written by Jack Schultz, founder and CEO of Agracel, a firm based in Effingham, IL, that specializes in industrial development in small towns.

It was in pondering why some small towns succeed where others fail that Schultz set out on the backroads to rural America to find out as he became the nation's guru of rural economic development and wrote of his travels in Boomtown USA: the 7 ½ keys to Big Success in Small Towns.

 

I emailed Schultz about entrepreneurism's role in small town success and a possibly emerging role for mentor programs.

"Embracing entrepreneurism in communities has been a key factor that differentiated great communities from also-rans," he emailed back. "Increasingly, we are seeing those great communities taking it a step up by tying their local entrepreneurs up with their young people, educating them on both entrepreneurship and also the great things happening in the private sector of their towns."

Schultz' successes in believing in small-town entrepreneurs and small-business lending is partly responsible for the fact the Effingham-based bank he helped found and now chairs the board, has grown eight fold to $2.9 billion in assets and gone public.

"At Midland States Bank, we have very much focused on small business lending and it has been a major factor in our growth over the last several years," Schultz said.

In an unusual and innovative commitment to the dozens of communities it serves, the bank has funded a not-for-profit institute to expand an entrepreneurship class that was started in Effingham eight years ago and has now expanded to 27 other towns.

Forman seemed intrigued by the details Schultz provided:  The class meets each day during the school year from 7:30 to 9 am; meets in local businesses; is totally funded by local businesses with a maximum contribution of $1,000 per business or individual.  Each class has a business and each student must also start a business.  

Meanwhile, Forman approaches his 25th anniversary with the department on January 1 having collected numerous regional and national awards for his work and successes. Those include last year winning the international Economic Development Leadership Award and recognitionby the Teens in Public Service Foundation with the Unsung Hero Award for his work with at risk kids.   

 

He has authored 14 books related to economic development, and has also designed and developed creative "game show' learning tools, including Economic Development Jeopardy, Economic Development Feud and two board games for the profession.

Forman credits the directors who have guided the department over his time there for allowing him "to be intrapreneurial," meaning behaving like an entrepreneur while working in a large organization, noting "not many government agencies allow the freedom to take risks in an effort to solve a given problem."

 

 

 

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