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updated 2:54 PM CDT, Jul 28, 2018

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While Dems have had lock on governor's office, GOP has longer hold on Sec. of State

The GOP lament in Washington State about the fact it's been 32 years since a Republican was elected governor pales somewhat compared to how long Democrats in the state have watched a string of Republicans hold the post of secretary of state.

 

For Rob McKenna, the two-term state attorney general who is the Republican nominee in the governor's race, the long Democratic tenure in the governor's mansion, longest rule in the nation by either party, has provided the opportunity to tell voters "we haven't refreshed this place in a generation." 

 

sam reed
Sam Reed

But in the race for secretary of state, the post from which Sam Reed is retiring after three terms, Democrats will be seeking to reverse their almost half-century absence from the office that oversees state and local elections, corporate and non-profit filings and records and is supervisor of the State Archives.

 

A Republican has held the post since A. Ludlow Kramer, a young Seattle city councilman, ousted incumbent Victor A. Meyers in 1964. So it's been 52 years since Meyer's 1960 victory as the last Democrat elected to the position. The secretary of state is second, behind the lieutenant governor, in the line of succession to the office of governor.

 

It was in 1964 that Dan Evans defeated Democratic incumbent Albert D. Rosellini, who was seeking a third term. The two Seattle Republicans, Evans and Kramer, thus both beat incumbent Democrats despite the fact that Lyndon Johnson carried the state overwhelmingly in the presidential vote, suggesting that Washington voters can sometimes make independent judgements about state and national races.

 

Washington's history with secretaries of state is in marked contrast to the background of the office in Oregon, where it has long been viewed as a stepping stone to the governor's office.

 

In Washington State, it's been the office of attorney general that has been seen as the stepping stone, with the last three, including outgoing Gov. Christine Gregoire and now-GOP candidate McKenna, looking to occupy the governor's mansion.

 

Two of Oregon's best-known and respected political figures made stops at the secretary of state post en route to larger roles. Mark Hatfield was elected to the position in 1956 and two years later won the governor's race while Tom McCall was elected in 1964 and two years later won the first of his two terms as governor. Hatfield went on to the U.S. Senate, where he served for 30 years and was even briefly considered for the vice presidential spot with Richard Nixon in 1968.

 

If the Democrats in Washington think they've been shut out of the secretary of state post for a long time, consider that Barbara Roberts, in 1991, became not only the first woman to hold the position in Oregon but also the first Democrat elected to the post in more than 100 years.

 

Six of the last eight Oregon secretaries of state ran for governor, with Hatfield, McCall and Roberts being elected and three others losing in the general election.

 

I asked Reed why he thought the Washington secretary of state position hadn't also produced gubernatorial aspirants.

 

He admitted that he had been urged to run for governor in 2004 as the GOP sought a candidate to oppose then-Atty. Gen. Christine Gregoire in seeking the position being vacated by Gary Locke, who decided against seeking a third term. State Sen. Dino Rossi eventually was the GOP candidate, losing by a handful of votes.

 

"I thought seriously about it but decided that I enjoyed the responsibilities of secretary of state, so I passed," he said. "It was a matter of thinking, 'why let the ego trip of running for governor interfere with doing what you like to do.'"

 

So he ran and was re-elected twice more to the office he had actually prepped for over a period of decades, working first with Kramer in the late '60s and with Bruce Chapman, who held the office in the late '70s. Then he spent 20 years as Thurston County auditor, a local-level version of the responsibilities handled by the secretary of state at the state level. He was elected to the county post in1980 and re-elected four times.

 

And Ralph Munro, Reed's predecessor who served five terms as secretary of state, said having worked in the governor's office for a number of years under Evans left him with "no desire to be governor."

 

He admitted to me that he had been lobbied to run but that "I never saw the office as a stepping stone. I really enjoyed being secretary of state."

 

Republican candidate Kim Wyman, who followed Reed into the Thurston County auditor's office in 2000, faces former state Sen. Kathleen Drew, a Democrat to see who replaces Reed. Thus no matter which one wins next month, the next secretary of state will be a woman.

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Jose Carreras to celebrate anniversary of leukemia victory and a special birthday

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 (Fred Hutchinson Cancer Research Center in Seattle), working with Dr. (Donnall) 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," recalls Dr. James 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, now CEO of Cell Therapeutics (CTI). "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 a quarter century ago may well be on the minds of both Bianco and Carreras when the famed creator of "The Three Tenors" will be on hand in Seattle next Tuesday for a special event at Benaroya Hall.

 

The event, billed as "A celebration of life and friendship," will 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 who pioneered the leukemia treatment that saved him.

 

The "private performance" recital for about 500 invitees who will pay $250 each to support a research fellowship benefiting the Jose Carreras Research Institute and The Hutch is being sponsored by Bianco's company, which is focused on development of new cancer-fighting therapies.

 

"When I learned Dottie was turning 90 on September 18th, 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.

 

Bianco was a young associate at The Hutch who had been recruited by Thomas to come to Seattle from New York City as Thomas assembled a team to assist with his new bone marrow transplantation process that would win him a Nobel Prize in 1990.

 

I asked Bianco, who was the "fellow" in charge of Carreras' medical care, day and night, under an attending physician who provided supervisory oversight, to share some details of Carreras' treatment.

 

He recalled that the singer was assigned to an "an experimental treatment protocol" in which he would have to have his own bone marrow treated to remove leukemia cells because there was no match with the marrow of his siblings.

 

"His leukemia was usually uniformly fatal in adults," Bianco noted. "He would receive the highest amount of total body irradiation and chemo that the center ever utilized."

 

Bianco explained that there was concern over whether Carerras' body would be so damaged by the extreme radiation that his stored bone marrow wouldn't be able to regrow and make normal blood cells. So because of that concern, as well as that the high radiation levels would be potentially fatal to his lungs, liver and GI tract, he was put in an ultra-clean bubble environment.

 

Carreras spent approximately 60 days in that isolation environment from start of transplant until his bone marrow recovered normal blood cell-making ability and was infection free.

 

"That day for Jose was on December 23rd 1987," Bianco said. "I remember because that day I didn't gown up but rather just walked into his isolation room and he freaked out that I wasn't 'clean'"

 

"I opened the barrier to the room and told him he was well enough to go out to his apartment with his family," Bianco recalled. "It was a really memorable and special moment for me and for him. That was a really special Christmas."

 

It was three years later that Carreras went on to world fame when he convinced fellow Spanish tenor Placido Domingo and Italian singer Luciano Pavarotti to perform as "The Three Tenors," with the first event at the Roman Colosseum. The performance resulted in the best-selling classical CD in history, some 16 million copies. Mass concerts by the three continued for more than a decade.

 

After he was discharged to return home from Seattle, Carreras established the Jose Carreras Leukemia Research Foundation and invited Bianco to be a board member.

 

"I have participated on the board ever since," Bianco said. And as part of their continuing friendship, when CTI had its 20th anniversary last year, Carerras did a video tribute to the company's research and efforts to improve cancer treatment.

 

Donnall Thomas is now frail and "not doing well," according to Bianco, who describes his mentor as "inspiring, a pioneer, sweet, honest, compassionate visionary who touched the lives of everyone he trained and treated worldwide."

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Seattle's Irish-banker trio reflects on what happened to industry, and risks emerging

They're not a band of brothers because, while the Seattle area's three long-respected senior Irish bankers are friends, they are also competitors. But Dineen, Fahey and Patrick, all first named Patrick, are a breed of bankers who have always gauged success by how they did business, rather than how much business they did. As Scott Jarvis, director of the banking-oversight state Department of Financial Institutions, put it: "If we had more folks in the industry like them, we would have less to talk about when it comes to troubled institutions." Reflecting on what happened in their industry as real-estate lending activities began to unravel five years ago and climaxed with the crash that occurred four years ago next month, they collectively shake their heads. The three recall thinking, as they watched the sub-prime mortgage fiasco heating up from their respective vantage points, that "something was really wrong. All agree that, as the banking industry and the economy recover, they have concern that what Patrick Patrick points to as "the fatal inclination that you have to grow," coupled with greed, could lead to history repeating itself. Pat Fahey and Patrick, both now 70, were in retirement at that time after careers building successful banks and turning around troubled ones while Pat Dineen, 71, was a couple of years into the successful launch of Puget Sound Bank, where he was chairman, following his retirement as U.S. Bank's president for Washington. But those memories of retirement are now fading for both Fahey and Patrick as they are immersed in troubled-bank turnaround efforts, Patrick presiding as president and CEO over the comeback of Seattle Bank, where he has brought a $50 million local-investor capital infusion, and Fahey as CEO of First Sound Bank. Both Patrick and Fahey, called from retirement in 2008 as the crisis hit home, found frustration in their first comeback involvements. Patrick took the president/CEO role at deeply troubled Towne Bank in Mesa, AZ, and sank a lot of his own money into the project, only to find it was too far gone to save. And Fahey, then a board member of Frontier Bank in Everett, was pressed by its board as the bank's bad-loan portfolio swelled to oversee the effort to turn it around. But ineptitude (not his words) on the part of regulators scuttled what would have been a successful private-equity capital infusion. Fahey and Dineen were both key statewide executives of Spokane-based Old National Bank before it was acquired by U.S. Bank in the late 1980s. And after his retirement from U.S. Bank, Dineen was succeeded by still another Irishman, Ken Kirkpatrick, who had spent his entire career with the bank. Fahey and Dineen offered some surprisingly candid observations that the aggressive lending of Fannie Mae and Freddie Mac, and basically pressure from certain members of Congress on the two government-sponsored enterprises whose job it was to own or guarantee mortgage obligations, were key parts of the problem. "I think it's fair to say that political and Congressional pressure certainly 'encouraged' Fannie and Freddie to fuel the flood of unconscionable loans that were securitized and sold into the secondary markets, causing further fueling of the 'housing bubble,'" Fahey said. "I have seen video of President Bush and Senator McCain calling for a reigning-in of Fannie and Freddie, and then-Chairman Barney Frank of the House Committee on Financial Services rejecting that notion, asserting that they were doing a fine job," he added. Dineen's view from afar at the time was that "Fannie and Freddie spent an inordinate amount of time lobbying congress. They were in the big time themselves while common sense lenders like Wells Fargo and others trying to slow the growth of Fannie and Freddie, were thwarted by Congress and by the two financial entities who had no interest in slowing down." Patrick also suggested that the seizure of ill-fated Washington Mutual in September of 2008 and is fire sale to JPMorgan Chase were the result of the FDIC deciding to "make an example of someone." "Needless to say they (WAMU) had more than their share of problems and issues - but scapegoats were needed as the 'face' of the problems," Patrick added. " Unfortunately Lehman and WAMU had their photos taken for the necessary posters." Patrick has been doing turnarounds for almost 30 years, starting with Seattle-based Prudential Savings during the savings & Loan crisis of the early '80s, then Seattle's Metropolitan Savings in 1990. As far as concerns about "could it happen again," Patrick suggests that "not only could it happen again, but it's happening now in spades, with pricing again irrational in terms of institutions making term loans at rates that are inappropriate and too much is being lent against some projects, especially multi-family." "That market is almost out of control, from my perspective," Patrick adds. "One thing is for sure: de ja vu must be exciting for some." Fahey agrees, saying "the raging boom in apartment construction and lending may well be a looming problem." "Added to that is the burden of over-reactive legislation and regulation that will very likely stifle lending that could and should be done, as well as cause increased costs that will be passed on to borrowers and consumers of financial services," Fahey adds. "Aggressive banks are looking for growth opportunities and there is only so much real growth potential out there,"Dineen said. "Growing strictly by taking business from your competitors generally indicates that you are doing something a little more aggressive." "Bankers and lenders have short-term memories," Dineen chuckled.
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Proposed facility in old K2 Vashon Island plant could be national model for towns

Richard Sontgerath is hoping to parlay his years as a developer specializing in older and historic buildings into a sprawling non-profit health and wellness facility on Vashon Island that he thinks could become a national model for smaller communities. But first he needs $40 million. Sontgerath has the background, enthusiasm and the vision to bring about K2COMMONS, which he touts as a multi-faceted community center that would occupy the 160,000-square-foot facility that was once the K2 ski-manufacturing plant. What he needs is "a $1 million baby" to provide the rest of the $2 million necessary to fund the two-year runway he figures will be required to raise the total of $40 million to make the project a reality. The "reality" of Sontgerath's dream would be "a Wellness Center, including many of the activities that increase wellness in a community," in the old facility that the ski manufacturer abandoned five years ago to move its operations off the island. Sontgerath, 62, and his then-partner Truman O'Brien (now a member of the 501C3 board) originally had a purchase-and-sale agreement with the K2 owners when they began putting their K2COMMONS plan together about five years ago as a for-profit entity. But that agreement expired almost four years ago and they've operated in the facility since then without an agreement. Songerath is hopeful he can convince the firm to donate the building and its18-acre site, which K2 has been unable to sell or lease, to what has become a non-profit ownership that will operate in much the manner of a public development authority. Who will want to put money into the project? Sontgerath is convinced that "social investors" will be attracted and suggests "if you look at the list of foundations, as in the PSBJ Book of Lists, there may be only one or two of the top 25 who would not be candidates for a pitch." "K2COMMONS will raise the quality of life for an entire community and the list of foundation descriptions, you see health, wellness, community building, at-risk youth, families, nonprofits, arts and environment over and over," he adds. Two of Sontgerath's board members have put up part of the initial $1 million. At first, the plan drew a mix of support and opposition from residents of Vashon, an island about the size of Manhattan that's reachable only by boat, a 22-minute ferry ride from Seattle. Some of the island's 10,000 residents viewed Sontgerath's dream as a benefit in terms of possible job creation while others feared it would take jobs away from Vashon's business district. But converting the ownership from private to non-profit reduced many of the community concerns, Sontgerath says. Plus K2 had the property rezoned from manufacturing to community business. Sontgerath believes that K2COMMONS can be a national model for community centers in many towns around the country where manufacturing buildings have been left abandoned as jobs and companies disappeared. And because of the considerations about a "model" that could be implemented elsewhere, Sontgerath says the project will utilize state-of-the-art energy and water systems to achieve a 'zero impact' community center. Sontgerath, president of Heritage Group Ltd., a real estate development firm which specializes in older- and historic-property restorations and urban revitalization and affordable housing projects, has the right background for the project. Since 1980, his firm has guided three major Seattle renovation projects in the Pioneer Square area, as well as doing conversion of historic buildings in Omaha, NE, and Des Moines, IA, into affordable housing As Sontgerath leans over the drawings where details of the vision take shape, he points to a possible 20-room boutique hotel (called oHTEL), a k2 museum, a suite of one-person offices, bowling center and café, a winery, business incubator, daycare center staffed by senior volunteers, tennis courts, conference center and a healthcare facility. Opting for the conservative side, he projects that the center would provide "at least 70 good-paying jobs" on the island, for which the loss of K2 and the loss of Seattle's Best Coffee roasting operations, closed after SBC's purchase by Starbucks, have been economic blows in recent years. He figures another 70 jobs would be created over the two years of construction and build-out. Other than the retail businesses in Vashon's town center, the island is home to more than a dozen small family farms, praised in a New York Times article earlier this year as "the kind that in most places were swallowed up by big agribusiness decades ago." The Times article called Vashon "a rural throwback," just fine to the many prominent residents, particularly artists, who make their homes there. But most residents need jobs. Sontgerath says design architect for K2COMMONS will be Bohlin Cywinski Jackson at the direction of Peter Bohlin, 2010 AIA Gold Medalist. He describes it as "a collaboration really of the original Architect, along with Peter Bohlin, and students from the UW School of the Built Environment." The detailed financials that Sontgerath has put together would create a modest enough square-foot cost that he says "we can create a rent-revenue ratio that basically guarantees success for any tenant." Meanwhile, K2COMMONS would provide "between $500,000 to $1,000,000 per year to be reinvested back into the community."
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Spokane deserves a role in Washington Redskins' look back on key anniversary

The Washington Redskins kicked off the celebration of the 80th anniversary of their NFL franchise this summer with a two-month Thank You Tour that brought players, coaches, cheerleaders and personnel to pre-season pep rallies across Redskins' fans land. Spokane obviously wasn't one of the stops on the tour, but somehow the Inland Northwest's unique tie to the Redskins should be remembered. In fact, it's a bit amusing that the Redskins owners are celebrating the birth of the franchise 80 years ago - in Boston -- when it was 75 years ago, the Diamond Jubilee, that the franchise re-located to Washington, D.C. It was with that move to the Nation's Capital that the Spokane chapter in Redskins history began when owner George Preston Marshall hired Ray Flaherty, then ending his playing career as a star end for the New York Giants, as the new team's new coach. The Giants had drafted Flaherty more than a decade earlier after his college career at Gonzaga, a virtually unknown little Jesuit school in Spokane. Flaherty launched his coaching career in style for that 1937 season, bringing the Redskins and their new city the franchise's first NFL title as they defeated George Halas' Chicago Bears on a frozen field, 28-21. Over the next six years, until World War II interrupted his coaching career and he joined the Navy, Flaherty was perhaps the most successful NFL coach of his time, winning two national titles and making it to the title game on two other occasions, posting a 56-23-3 record. Only Halas, whose Bears' 73-0 victory over the Redskins in the 1940 title game was the worst championship-game drubbing in NFL history, might have been viewed as Flaherty's equal. The prestige and power of being a prominent professional football coach never made Flaherty forget his Spokane roots as he returned home each off season to visit with and be lobbied by old friends about the latest Gonzaga football star. Thus each year, Flaherty drafted the top Gonzaga backfield star, creating the improbable result that a world championship pro football team (the 1942 Redskins squad) would have three of its backs from a little college in Spokane, including brothers Ray and Cecil Hare. On occasion, the Hares were starters. And Flaherty even brought the entire team West in 1939 in what was likely the first coast-to-coast training trip as the redskins held their training camp at what was then Eastern State Normal School (now Eastern Washington University) in Cheney, just southwest of Spokane. Gonzaga itself, which was among a host of tiny private colleges that in the '20s and '30s nursed the illusion of being the next Notre Dame, discontinued college football with the outbreak of World War II. Thus things like the Redskins-Flaherty connection are the kinds of memories important to keep alive for a lot of Bulldog fans, aware that before there was basketball at Gonzaga, there was a degree of prominence on the football field. But it wasn't just the Gonzaga connection that is a part of the Inland Northwest's tie to Washington Redskins, for 50 years after Flaherty arrived in Washington, the Redskins drafted a Washington State University quarterback named Mark Ripien. Ripien, who was born in Calgary but grew up in Spokane, starred for the Cougars in Pullman. But in the pro ranks he became one of the NFL's most feared quarterbacks and guided the Redskins to a 37-24 Super Bowl victory over Buffalo in 1991, being named the game's Most Valuable Player after passing for 292 yards and two touchdowns. Both Flaherty and Ripien are in the Redskins' Hall of Fame. In an interview with Flaherty in 1968, I asked how it was that the player generally regarded as the best to come out of Gonzaga, Tony Canadeo, eluded Flaherty to become a Green Bay Packer. Canadeo, who earned the nickname "The Gray Ghost of Gonzaga" because of his prematurely gray hair, became the first Packer to rush for more than 1,000 yards (1,052) in 1949, only the third player in the NFL to that time to achieve that mark. Flaherty recalled that he intended to have Canadeo on the Redskins' roster, but figured as a player from a tiny school in Spokane, that Canadeo would still be available in later rounds of the draft and he could use his early picks for other players. "I tried my darndest to talk the Packers out of Canadeo," Flaherty recalled in the interview. "But they seemed pretty suspicious about why I was so anxious to have him so decided to keep him. I had a lot of trouble with the Spokane folks over the fact I failed to get him." Descendants of Flaherty and the Hare brothers, as well as others whose ancestors were part of Gonzaga football, and Ripien and his family and a whole cadre of WSU football fans, would be more than enthusiastic participants if the Redskins should come up with an event to recognize the franchise's Spokane tie.
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For futurist Christopher Kent, the future isn't tomorrow, but maybe decades out

Although he grew up in a household in which his newspaper-editor father kept the focus on current and past events, Christopher Kent has built a career looking ahead at events that could happen. He's a futurist, meaning he peers sometimes decades into tomorrow to advise clients on things that might occur and how they could possibly affect the outcome of those events. Kent, 42, who was born in Olympia and spent some of his early years in Yakima where his father was the editor of the daily newspaper for a time, is one of a group of seven friends who formed the Washington, DC based Foresight Alliance in 2009 after being downsized at about the same time a year earlier. They are among an estimated 100 or so professional futurists around the Beltway and about 2,000 to 4,000 around the world. Because when people find out he is a futurist they usually want to ask about a specific event or outcome, like who'll win the presidential election in November or what the market will do next week, Kent is quick to make it clear that he doesn't predict the future. "While we don't predict the future," says Kent, a graduate of Marquette University who did graduate studies in Toronto. "We help clients understand the range of futures they face and what they can do to achieve the most beneficial and successful future." But sometimes clients may not want to look into the future, as when he had a client in the housing business near the beginning of the economic crisis. "We said we need to talk about the housing bubble and they told us they didn't want to have that in any discussion or planning." "Some clients are just superstitious that if they talk about something, it might happen, so they don't want to discuss it," Kent says. "So if we know there's something the client doesn't want to deal with, we try to find ways to circle back to the topic." "For too many people, the future is the next quarter," says Kent, "but we try to force our clients to look out five to 10 years and present them with four or five alternative scenarios. That forces you to look past the trees to the forest." Kent says that when people learn he is a futurist, they usually want to know the outcome of something specific, like an election. Adding "that's not what the future is; there is no single outcome to foresee." An example of how far ahead Kent and his cohorts can be called upon to explore the possible futures was the Food 2040 in-depth look at the future of agriculture, food and consumers in East Asia, using Japan's emerging economy as an indicator for emerging economies. He sent me an e-mail a few weeks ago to see if I was interested in that recent Foresight Alliance project, which stirred my curiosity because of possible implications for the agriculture industry and economy of this country. Food 2040 was described as "an in-depth look at the future of agriculture, food, and consumers in East Asia, using Japan's mature economy as an indicator for the emerging economies of East Asia, especially China." Results of Foresight Alliance's year-long study under the sponsorship of the U.S. Grains Council were presented to the Japan Business Foundation, offering what Kent emphasized were insights "not meant as predictions, but rather as plausible futures. They were designed to help stakeholders uncover new opportunities for food and agriculture." Although the findings related to and were presented in Japan, they offered some interesting information of potential value to agricultural interests and consumer businesses in this country. Two I found particularly interesting. One, under the heading "Whatever China Wants," suggested that by 2040, Chinese preferences will heavily shape the global food and agriculture market. The other, headlined "Asia Without Kitchens," could well have relevance to this country as well. The report suggested that in 2040 "more than 70 percent of food expenditures in Japan could be for food prepared outside the home." "Consumers will rely on trusted brands, stores, and food-service outlets for most of their food, a majority of which will be processed or pre-prepared," the report noted. "This trend will spread across other parts of urban East Asia as well, especially the cities in China, Taiwan, and South Korea." Kent, who presented key parts of the report, emphasized the trend will be toward pre-prepared foods, not fast food. "It will be fast on convenience, not fast preparation." I was also interested in whether their look at the food future took into account the apparently growing global backlash on genetic alteration of food, but Kent said their research shows that, in a number of countries, the concern is diminishing. "Our research is showing that the case is starting to be made that none of the doom and gloom collapse of genetically modified (GM) foods has come about, and the next generation of GM crops is starting to have traits that are beneficial to consumers." As a one-time political writer and ever-since political watcher, I couldn't help but go back to politics and possibly spur him to predict the outcome of this year's elections. "Who might win the White House in November is not our thing," he replied. "But the political feeling and will of the country reflected in a election are our thing in looking at the future because who controls the country is important long term."
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A business organization focused on 'public policy that transcends partisan politics'

David Giuliani, the Seattle-area entrepreneur who launched two companies that became new-innovation success stories, has co-founded a statewide business organization named Washington Business Alliance that he hopes can help bring a new innovation to the way government makes decisions. It might be said that Giuliani, who launched and built Optiva and Clarisonic into hugely successful companies that revolutionized teeth cleaning and skin cleansing, has set his sights on building a business organization that would cleanse government of the need for ideology in its decision-making. Basically, his Washington Business Alliance is focused on bringing "a reasoned, collaborative approach to public policy that transcends partisan politics." Optiva, of course, was the maker of SoniCare, the first electronic toothbrush. After Giuliani guided Optiva into the hands of Philips Electronics, he created Pacific Bioscience Laboratories and produced the first electronic skin-cleansing device, Clarisonic, and sold it last fall to cosmetics giant L'Oréal USA. Giuliani stayed on as Clarisonic CEO, though he made clear in an interview that he will be stepping down from that role this fall to devote full-time attention to the task of chairing Washington Business Alliance, which he co-founded last year with Howard Behar. Behar's credentials are about as impressive as Giuliani's. He spent the last 21 years with Starbucks, which included serving as President of North America and as founding president of Starbucks International. Giuliani says the organization, which is seeking business members rather than individuals and has a dues structure ranging from $500 to $15,000 per year, is "committed to developing effective solutions that are not constrained by political expediency or ideology, with an emphasis on data-based solutions for long-term results." That phrase, "not constrained by political expediency or ideology," is a stop-and-reread phrase because what has struck me about the organization, and the leadership composed of successful entrepreneurs, is that it is truly seeking to look past the political to arrive at solutions in a process beyond the ideological spectrum. It seems to me that for business people who wish to depart from the process of having to first vet ideas by placing them on the ideological spectrum before we can discuss them, that focus alone merits a conversation and moves the organization's goal from the Quixotic to the possible. And Giuliani and Behar have attracted other business leaders to their leadership ranks, including Norm Levy, who has served as corporate strategy counsel for almost three decades to companies like Starbucks, Boeing and John Fluke Manufacturing, and long-time Boeing executive Debbie Gavin. With a background as financial vice president of several Boeing units, Gavin will be the association's treasurer. "The idea isn't for business to disengage from government, but to engage differently," says Roz Solomon, who was plucked from the legal consulting business with a background that includes having been an administrative law judge for Washington State, to be executive director of the organization. "Our goal is to ferret out those things that government is doing well and reinforce them," Solomon adds. "There are a lot of parts of government that are intractable, but there are also a lot that aren't." Giuliani, 66, who was Ernst & Young's manufacturing Entrepreneur of the Year nationally in 1997, explains "we're focusing on a non-political methodology, seeking to attract business people who realize that solutions to problems don't necessarily happen through political means." I asked Giuliani and Solomon during an interview whether seeking members for a non-political organization at a time of the political intensity of an election year was really a good decision. "It's important to use the political cycle as an opportunity," Giuliani replied. "There are a lot of people who are writing checks for candidates and asking themselves 'should I really be writing this check? Then why is it so dissatisfying?'" "The election process tends to intensify the frustration people feel about politics, causing many to wonder - what can I do to fix it?" Giuliani added. "There are likely to be a lot opportunities for post-election messaging for Washington Business Alliance that will resonate with the voters." And while the focus of the new organization is the state races for now, Giuliani notes that there's what he describes as "a national movement to create this type of organization in other states," which in the future could lead to initiatives relating to influence on decision making at the national level. Giuliani says his group has already had a lot of interaction with the Oregon Business Association, a group, similar in focus that has been in existence for several years. "There are a lot of people dissatisfied with what they view as a dysfunctional, polarized system," Solomon added. "It's people left with those sorts of questions about politics that we want to engage for the future."
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Growing focus on handicapped-parking abuse in Seattle needs firmer legal steps

Dick Thorsen is dying of Lou Gehrig's Disease and now  wheel-chair bound, though he's still able to drive in his ramp-enabled van. But he's getting increasingly angry at "non-thinking social morons," drivers with no apparent handicaps who hog handicapped-parking spots in downtown Seattle.

 

"A lot of good my handicapped placard does me since nine times out of 10 times, I can't find an unoccupied handicapped-parking spot," says Thorsen. "And when I hang around waiting for someone to leave, I see obviously non-handicapped persons get in their cars and drive away."

 

Thorsen promises to start a campaign, in the time he has remaining, "to marshal volunteer forces to shame these scofflaws. I'm smart enough to mount a statewide enforcement strategy to curtail these selfish actions."

 

There is a growing irritation at what is seen as "as tremendous amount of abuse" of handicapped placards issued by the state and the sense that the increasing cost of parking in downtown Seattle is leading to illegal use of the placards.

 

Thorsen sent me an email last week after running across a column on the Internet that I did in early 2011 that was aimed at highlighting what actions have been taken, and what hasn't been done, to address the placard-abuse problem..

 

I noted in the column that Seattle parking officials observed that "the tremendous amount of abuse of these placards limits access to legitimate placard holders and other parkers." Not to mention lost dollars for the City of Seattle

 

And reaction of those like Thorsen, as well as ordinary citizens who are merely irritated on behalf of the handicapped, has led to efforts on the part of the City of Seattle to consider seeking action by the Legislature. As yet the City Council hasn't been able to reach accord with various stakeholders on what form the suggested legislation should take.

 

But a key step toward agreement on a proposal to the Legislature may come Monday when Seattle City Council representatives meet with the head of the Governor's Commission on Disability Issues and Employment, an entity Seattle officials view as an essential partner in any effort to get tougher legislation.

 

Toby Olson, executive secretary of the commission, says he began meetings with Seattle officials earlier this year on finding solutions to reduce the abuse of disability parking placards and strengthen enforcement for disability parking violations.

 

Seattle officials say they are confident about an agreement that will lead to a bill in the 2013 legislature, but that any proposal must take cognizance of state budget constraints.

.

Disabled citizens are entitled to park at not only parking spots reserved for the handicapped, but also city-operated paid parking spots without charge. City officials estimate that 40 percent of downtown and First Hill parking spaces are occupied by vehicles displaying handicapped-parking placards.

 

"The police department and state transportation people "estimate that as many as 50 percent of the placards are being illegally used," City Councilman Tim Burgess told me for the 2011 column, noting that amounts to 20 percent of the total parking spots in those areas.

 

State law makes it illegal for anyone but the person to whom the state permit and placard are issued to use placard, tabs, or license plates if the disabled person is not in the vehicle. "You can't let your friends or family borrow them for their own use," advises the state website.

 

Over the past year, the Seattle Department of Transportation has been working with stakeholders, including the Seattle Commission for People with DisAbilities, on putting together a plan that could be submitted to the 2013 Legislature for action.

 

SDOT and the DisAbilities Commission agree on most steps to address the problem, though the commission disagrees with shortening to four hours the time a vehicle using a handicapped placard can park downtown.

 

Interestingly, one of the issues both the city agency and the commission agree on is that the law needs to be more strict with physicians who issue the placards.

 

The Seattle Police Department says that many physicians distribute parking placards "for reasons that may not comply with state criteria" and a key suggestion is adding the name of the issuing physician on each placard.

 

Another person who ran across my column on the Internet sent me an email some months ago saying he did a test with his own doctor following knee surgery from which he explained he is "now walking without discomfort."

 

"I asked my doctor if I could get one of those permits for disability parking. She smiled wryly and said 'well..hmmmm...I suppose you qualify'. WHAT! I can walk without trouble and it is that easy to get a permit for phantom knee pain that was corrected months ago?"

 

City of Seattle, in fact, is apparently asking the King County Medical Association to admonish members about the integrity role in issuing handicapped permits.

 

Interestingly, ala Dick Thorsen's suggestion of mustering volunteers, the use of volunteers to patrol downtown areas in search of handicapped-parking abusers is already legal as a result of legislation a few years ago. Cities in nearly two dozen other states have already adopted a version of using volunteers to help address the problem.

 

In some places, trained volunteers are authorized to issue citations for infractions. But the commission also suggested the volunteers could record the license plate numbers of cars displaying expired placards, or operated by obviously non-handicapped drivers.

 

The idea of using volunteers and authorizing them to issue citations for illegal use of handicapped placards was discussed last fall, but City Council representatives were advised by the city's legal department that further legislation would first be necessary. 

 

For sure the commission and City Department of Transportation agree increased enforcement and higher penalties are essential to curbing abuse, and imposition of harsher penalties, particularly for those caught using a placard issued to someone who has since died.

 

Noting that Seattle police report that finding placards being used that are registered to a person who is deceased is "one of the top methods of abuse," the commission says unequivocally the cars of such drivers should be impounded.

 

The Seattle City Council obviously has much on its plate, including budget issues and things like the proposed new Sodo arena. But the issue of stealing handicapped-parking spots, which is of course what cheaters are doing, deserves to be looked at long enough to frame a legislative proposal since the legislators will only act if they think it's important enough for Seattle to ask.

 

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Seattle start-up sees underwear sales to big guys as start of large online opportunity

Dave Smith's"aha moment" about the unmet need for big-men's clothing came at a Microsoft shareholders meeting at Safeco Field a few years ago when all attendees were given embroidered shirts to mark the occasion. But there wasn't one that would fit Microsoft CEO Steve Ballmer's 3X size, Smith recalls, adding "It wasn't pretty."

 

Smith, who at the time worked for a company that provided promotional products for firms, including Microsoft, recalls that "we always had trouble finding 2X and larger products for customers."

 

Thus was born an idea for Smith, but it couldn't come to fruition until he met Doug Hill, who was making a presentation to Smith's boss at Staples Promotion and Smith recalls thinking: "this guy's a born salesman."

 

Conversations soon guided them, about four years ago, to go into the clothing business, where they both had long experience, and discussions led them to agree "big and tall (which they refer to as B and T) was wide open so we just started with it."

 

After a false start with a big-and-tall retail outlet in Seattle's Georgetown neighborhood, they launched Bentley BT, a Seattle-based online start-up that promotes its Bentley Performance Underwear with the tagline "we can CYA up to 8X."

 

Bentley BT is an 18-month-old company specializing in the design, production, and distribution of fashion underwear for big and tall consumers, a market they contend is ignored by most retailers who don't want big and talls "jamming into their dressing rooms or crowding up their aisles. So it's a big deal to these guys to be treated as something special."

 

It wasn't on a lark or for a laugh that they decided underwear would be the first product for Bentley BT, according to Hill, but rather on the basis of some market research that showed "underwear is a big problem for the big guy."

 

As for the general clothing market among big and talls, Smith says: "All you have to do is look at the statistics showing that over the past 20 years, people in the U.S. and other countries are getting bigger and taller to understand why we view this niche market as opportunity. And it's one with enormous growth and profit potential."

 

The domestic big-and-tall men's apparel business is estimated to be $16-$18 billion, and growing, with them men's underwear portion of that market estimated at more than $4.5 billion.

 

"Our target is to capture one-half of one percent of that market, which would be $24 million in sales," says Smith.

 

"We really think that we make the world's greatest underwear for our consumer so the next step would be to go right into t-shirts," Smith says. "Once we've developed trust on the part of this audience, we can do all kinds of clothing."

 

Hill started as a clothing salesman, moved to regional sales for a women's sportswear line and eventually joined what was then Seattle-based Brittania Jeans as Midwest region manager. When ex-Britannia execs started Generra Sportswear, he joined them in Los Angeles to start their West Coast Women's Division.

 

Smith and Hill first produced warmups "in very large sizes" for basketball players who were NIKE athletes and when other big-and-tall guys saw the warmups, "we were urged to offer them to a broader market," Smith recalls. "So we decided there was a niche play in providing fashion to that consumer audience."

 

In the short time they've been in business, they have distribution in about 30 specialty stores and their product has been featured on Amazon.com in the big-and-tall category. Plus Smith says they are in initial conversations with major retailers.

 

But they emphasize the importance of web sales by noting that 50 percent of all big-and-tall business is conducted on line and, says Hill, "50 percent of that is women buying for men."

 

Their average online transaction is for about $150, "so we have good margins," says Smith, who adds that "a lot of people who discover our site are afraid we won't be there next time so they order up to a dozen items."

 

And Smith, who has a 34-inch waist and says Hill has a 32 waist, emphasizes that whatever the size, from 32 to 70, "the price for the underwear is the same."

 

At this point Bentley BT is in its start-up phase, although they're already booking orders in the hundreds online.

 

Their underwear is made in China, but Smith says "we have the fabric and the sourcing to do them in Los Angeles."

 

While they'd like to zero in on athletes, they've already begun to target firemen, ," says Smith, recalling they once met a group of firemen in Chicago sitting in the summer heat as a lightning storm was going on and "once we told them we make underwear that could really help them in high heat situations, they were hooked."

"Our next offering will be to the troops," he adds. "My son was a spec ops medic and he knows firsthand what bad underwear can do when you are in the field."

 

As far as exit strategy, Smith says their marketing is aimed at "the disenfranchised customer, retailing's forgotten guy. Some company is going to say 'let's fold these guys into our operation.'"

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Reading an old Dan Evans speech stirs a sense that change isn't always improvement

Occasionally we run across something from yesterday that causes a sense that change isn't necessarily always for the better. And perhaps nowhere is that more true than in the political realm.

 

That thought occurred to me a few days ago when I had the opportunity to read a speech by former Governor and U.S. Senator Dan Evans to the January 1995 Economic Forecast conference in Seattle.

 

It was the day after Republicans, as a result of the transformational election of 1994, assumed control of both houses of Congress for the first time in 40 years and, with three dozen new GOP legislators, the state House in Olympia.

 

Evans, who himself had bucked a Democratic landslide in 1964 to win the first of his three terms as governor, referred, at the opening of that speech, to "day two of a new era," then joked, "Or is it the Newt era?" That was a reference, of course, to the new House Speaker Newt Gingrich, who had orchestrated the overwhelming takeover of the House of Representatives by Republicans.

 

I got a copy of the speech from Neil McReynolds, then a top executive at the old Puget Sound Power & Light Co., and chair of the board of the Economic Development Council of Seattle and King County, which put on the event at which Evans was keynoter.

 

McReynolds, who had been Evans' press secretary in Olympia when he and I met in the late '60s, is constantly running across decades-old documents in his files and, finding this one while we were visiting, he thought I might find the speech interesting.

 

Politics has provided several swings since that Evans' speech when Republicans were coming to power halfway through Bill Clinton's first term. But maybe the swings, either to the left or right, haven't always made things better.

 

What I found most interesting in reading Evans' talk was the reminder of him as an elected official who was impossible to pigeonhole ideologically. As governor and later as U.S. senator, he avoided ideological rigidity and found good ideas might sometimes spring from the Democrat side of the political aisle. And that dumb ideas could sometimes be offered by his fellow Republicans.

 

Thus at a time when polarized political positions characterize decision-making, reflecting on Evans, and actually many who were like him, including Washington's late Democratic Sen. Henry M. Jackson, make it obvious that politics doesn't have to require ideological polarization.

 

Before outlining in that speech a series of ideas "to propel Seattle and King County into world-class economic status," Evans blasted "talk show hosts screeching about waste in government," proponents of term limits and a balanced-budget amendment, environmental extremists, and excessive regulations that stymie growth.

 

And he also took to task the nature of campaigning. So in what could be a comment about the unfolding 2012 election rather than a reflection on 1994, Evans noted "We have just concluded the nastiest election in my memory. Virtually all campaign advertising was enormously distorted and negative."

 

"By constantly trashing our political leaders, we also breed disrespect for our own system, of government," Evans said. "The result is a new political landscape dotted with constitutional amendments and initiatives designed to protect citizens from 'evil' politicians."

 

Of two ideas whose proponents have continued to seek traction since that "new era" that Evans referred to as dawning, he told that 1995 business audience: "The balanced budget amendment is a loony idea that is meaningless until we decide how to keep a national standard set of books so we can measure balance."

 

And of the idea of term limits, Evans offered: "As a voter I am outraged by those sanctimonious term limiters who would steal from me the freedom of my vote."

 

But in addition to hitting "those talk show hosts who cater to the base emotion of people," he took to task "the politicians who blithely promise what they know they cannot deliver," and "those rigid environmentalists who will see you in court if they don't get all they seek."

 

Thus he has always been a leader in what I and many feel is an unfortunately disappearing breed, those who view ideas on their merits rather than insisting that any new idea must be vetted based on where it fits ideologically.

 

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Buller, Elway tout a future that brings social media to essential role in decisions

John Buller and H. Stuart Elway, long-time players in the old top-down process of decision-making in Seattle and Washington State, are embarked on separate initiatives whose basic message is that things won't work that way in the future.

 

Both hope to spark new forms of civic engagement aimed at broader inclusion in charting the region's next chapter, but that "broader inclusion" may come in fits and starts, and face challenges before broad acceptance.

 

Buller, a business and civic leader for the past 30 years, summarizes it as "The Seattle Way has to be replaced by a recognition that social media has made the world flat rather than top-down so we have to make discussions about our future much more broad-based."

 
 

Or as Elway puts it, :the whole social media thing has the potential to bring us full circle to the original way Democracy got started."

But both would agree that bringing social media integrally into decision making in a manner that doesn't permit a few strident bloggers or vested-interest Internet sites to drown out the crowd ironically requires some strategy and structure.

 
 

 

Elway, whose Elway Research Inc. with its interactive polling and opinion-tracking has been a key initiator in helping shape business, policy and governmental decisions since 1975, is seeking to attract interest in what he refers to as "The Next Northwest," though his focus has really become "The Next Washington."

Buller, a member of the board of the Washington Athletic Club and the incoming chair of Seattle Seafair, is one of the Next 50 Ambassadors, a group of civic leaders seeking to promote a series of events to celebrate the 50th anniversary of the six-month run of the Seattle World's Fair.

 

But he's carried the idea into an appeal to dramatically embrace social media to gather an array of visions for the region's future, not merely input from established groups.

While Buller is focused specifically on Seattle 50 years hence and Elway's focus is geographically broader, they are both seeking to not just stir interest in discussing the future but in igniting a desire for broad-based involvement in shaping that future.

 

And both agree that social media is the factor that will negate reliance on the old top-down way of making decisions and that, in a sense, a matured social media can represent a return to the way Democracy itself was born - with all having an equal voice in the decisions.

 

Buller is a Nebraska native who came to the University of Washington in 1965 to play basketball, but injuries and illness shortened his career after he led the freshman team in scoring. He wound up as a graduate-assistant coach while he got his MBA.

 

Among his leadership positions, Buller served as senior vice president of marketing at The Bon Marche/Macy's, vice president of alumni relations at UW, head of the local organizing committee for the 1995 NCAA Final Four and CEO at Tully's Coffee.

 

Elway launched his company soon after getting his doctorate in communications from the University of Washington in 1975. His Elway Poll is the only independent, non-partisan, on-going analysis of public opinion trends in Washington state and the Northwest.

 

Buller and Elway have appeared in recent months before various town-hall and organization meetings to tout the need for the region to focus on mapping a plan for the future, each focusing on his ideas for defining the future. But both concede there hasn't been a rush to seize the initiatives they are offering.

 

Both lament the current state of discourse and suggest that the absence of broad involvement in the conversation is a key reason.

 

"We're having this great debate about the role of government and it's being conducted in the most partisan atmosphere imaginable," notes Elway, most of whose research and focus has been on policy matters and government.

 

What he is seeking to achieve with his "Next Northwest" is having a "systematic, statewide conversation about changing expectations for government and institution." Social media would ideally have a large role in those conversations.

 

Buller is even more forceful. "Journalism has turned into spinism. People tend to find the medium that supports their version of the world and they don't need to talk to anyone who disagrees."

 

"We aren't really discussing Seattle's next 50 years," Buller says, suggesting that current debate about the proposed new arena and its possible impact on the Port of Seattle's future are perfect examples of sound-bite decision-making for the near-term without extending to "long-term, do we want to be a global city or a regional city."

 

Buller, has created both a concept document and creative brief to help guide groups, formal or online, wishing to initiate discussions on "The Next 50 - Changing the Way Seattle Looks at the Future."

 

Buller's and Elway's shared vision of the need for a vision, or visions, merits broader attention, particularly in the social-media arena that they understand will be vital to any meaningful discussion.

 

That attention has thus far proved elusive. Or as Elway quipped ruefully, "I can't find the financial support to carry this out so I guess I'll have to win the Powerball to complete it."

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State wine industry's signal charitable event reaches 25 with memorable gathering slated

Bob Betz, who as one of the state's most respected winemakers is co-chairing the 25th Auction of Washington Wines, recalls with a smile the first auction. "I bought two bottles for $60, and it was the live auction. And they were bottles of Oregon wine."

 

Much has transpired for both Betz, then already an established executive with Chateau Ste. Michelle winery, and the industry itself since that launch event. What was initially, and for the first 10 years, called the Auction of Northwest Wines because it was held in partnership with the equally young Oregon wine industry, now sees live-auction items bring in an average of $10,000.

 

Betz' co-chair for the 2012 event is Stein Kruse, president and CEO of Holland America Line, whose cruise ships take Washington wines to ports of call around the world. So as Betz has perhaps the longest-term perspective on the industry he became a part of in 1976 when he joined Chateau Ste. Michelle as director of marketing, it might well be said of Kruse that his company gives Washington wines their most far-flung exposure.

 
 

Sherri Swingle, Auction of Washington Wines' executive director, says that first auction   raised $20,000 and had 47 wineries participating. By last year, the auction raised $1.55 million, swelling the total the event has raised over the years to $26 million, with uncompensated care at Seattle Children's Hospital being the key beneficiary.

 

The auction organization came into existence in 1987, the same year as the Washington Wine Commission, the state agency created by the legislature to provide a voice for both wineries and grape growers in the state. The first wine auction was held the following year.

 

In a sense, the accomplishments of both the industry organization and the auction will be highlighted and honored at the August celebration when the three days of what is billed as the state's most prestigious charity wine event, for which Swingle is now finalizing details, unfold.

 

Swingle says more than 1,700 attendees are expected to be on hand for the auction gala on August 18 with about 500 at 10 winemaker dinners around the region the previous evening and about 1,000 at the picnic and barrel auction of limited-release wines on August 15.

 

But the role and contributions of what is now Chateau Ste. Michelle Wine Estates will be especially highlighted at what has traditionally been an annual award to a vintner and a grower each year. This year the awards are being combined, at the insistence of CEO Ted Baseler, who originally had been intended for an individual honor.

 

Baseler made it clear that the honor could not single him out, but needed to honor the Chateau Ste. Michelle team, both past and present.

 

Nevertheless, Baseler's role in not just the success of Chateau Ste. Michelle, but also the industry that he has made equal in importance to the success of his own company, are bound to be noted as the company he has presided over since 2001 is honored.

 

Baseler's involvement with the industry stretches back almost as far as Betz'. He joined Chateau Ste. Michelle in 1982 but had already spent several years as an account executive for the advertising agency that handled the winery's account.

 

Today the business, acclaimed twice in the past year as "Winery of the Year," has international relationships and is among the largest and fastest-growing wine companies in the country.

 

Betz spent 28 years with Chateau Ste. Michelle in a variety of positions in communications, sales and operations, eventually as vice president for winemaking research, remaining as Baseler's right-hand man until 2003, even though he and his wife, Cathy, had opened their own winery in 1997.

 

Betz, his wife and daughters had built the Betz Family Winery over 15 years, until its sale last year, into one of the state's most successful and respected wineries. He prefers to call it a partnership with the new owners, rather than a sale, since he remains as winemaker and he and his wife will remain as part of the management team while finally having "the one thing that has eluded us - time."

 

Event co-chair Kruse says he has "a small wine collection" but added "we buy wine in large quantities for our ships around the world and feature Washington wines in the Pinnacle Grill on 15 of our ships."

 

"The growth of the industry in this state, both in the quality and value of the wines, has been amazing to watch," he said.

 

That growth Kruse refers to was pointed up in the results of an economic impact study from the Washington Wine Commission this spring, which was described as "the most comprehensive such report ever produced," that showed dramatic growth in the value of the industry since 2007 despite the woes of the economy.

 

The report indicated the value of the industry to the state has leaped from $3 billion five years ago to $8.6 billion now and that the value nationally has gone from $4.7 billion to $14.9 billion.

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Recent success for often-maligned CTI and its CEO stir global interest

Cell Therapeutics Inc., the Seattle biotech firm that has alternately raised and dashed investor hopes over the past 20 years, has scored a triple play in recent weeks, gaining European approval for a new drug, buying a phase-three cancer drug at deep discount and finding a major new investor.

 

The spate of recent news, while drawing little attention from Seattle area media, has left influential national bloggers and websites musing over why CTI's developments haven't attracted more investor interest and movement in its stock price. The stock has stayed under $1 for some weeks and is down 40 percent from a year ago.

 

Attention for CTI has peaked following late May word that the company's cancer drug Pixantrone, with the brand name Pixuvri, has received conditional marketing approval from the European Commission, following February approval from the European Medicines Agency.

 

 
 

National websites have enthused about CTI's recent successes, with the influential market blog "Seeking Alpha" a few days ago offering the intriguing headline, both promising and pointed: "Cell Therapeutics' Pixantrone - Is Hope Coming For Patients And Patient Shareholders?"

 

And the respected "24/7 Wall St. Wire" asked, in a column noting the recent successes, "Can a European Approval of Pixantrone Save Cell Therapeutics?"

 

The Pixantrone approval will allow CTI to produce revenue from the drug in a market about equal in size to the U.S. market, and will also mean that it can accumulate additional data toward FDA approval from the use of Pixantrone in patients with a rare form of non-Hodgkin lymphoma.

 

Just this week, CTI announced that it has completed the acquisition, first announced in April, of Pacritinib, a Phase III-ready drug that's part of a new class of targeting agents, known as JAK inhibitors, for treating myelofibrosis, a type of leukemia that affects bone marrow.

 

The Pacritinib purchase price of $15 million in cash and another $15 million in convertible stock was described by one national blogger as "a near steal" because, despite four competitors, CTI will be going after a piece of what the company views as a $7 billion market in the U.S. alone.

 

Finally, CTI announced a $40 million investment from New York-based Socius Capital, which analysts suggest paid about 10 percent above the CTI stock price for its passive-investment stake of just under 10 percent. That reflected, according to an analyst, "a high level of confidence" in the commercialization of Pixuvri and clinical development of Pacritinib.

 

But it's the Pixantrone success, enhancing the Pacritinib acquisition and spurring the cash infusion, that is most intriguing, particularly, since there are several sub-plots that come into play with the European announcement. Those include the politics surrounding FDA's handling of the pipeline for new potentially life-saving drugs, as well as the emerging controversy over high-priced drugs that offer only a few months of life expectancy for patients.

 

Then there's the on-going dynamic tension between CTI CEO  Dr.James Bianco and Seattle-area media, which have frequently targeted the company and Bianco for the $1.74 billion he's raised and spent without much benefit to shareholders and the wide swings in the stock price over the years, as high as $72 and as low as 88-cents. Bianco's defenders brush aside media criticisms, contending that the only reason CTI is still alive after 20 years is because of Bianco's creativity and leadership.

 

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 that 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 remembered 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."

 

Medical school, internship and residency in New York led to Seattle and an opportunity at the Fred Hutchinson Cancer Institute, and eventually to the founding of CTI.

 

In addition to being high visibility in his business, he's also highly visible in fund-raising efforts for his special causes, including 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, for whom he is planning the first capital campaign.

 

He's been involved with Gilda's Club for a dozen years, explaining that it "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."

 

The manner in which the European Medicine agency's approach brought conditional approval for Pixontrone while the FDA dallied, eventually causing CTI to withdraw its application, represents another log on the fire of controversy that swirls around getting new drugs through the FDA to patients.

 

In Europe, 25 member states and five independent experts represent the review panel for an application and two-third of the 32 must give their okay. Critics of the FDA process of an office with a single final decision maker in each therapeutic category, from oncology to cardiovascular and rheumatologic, etc. call the European approach a more balanced review.

 

The critics contend that people are losing their lives while the FDA is holding things up and urge that Congress and the administration press for conditional approval as a more certain part of the FDA review process. For obvious political reasons, Bianco declines to join those criticisms, particularly since a new application to the FDA for Pixontrone is planned in a few months.

 

And since Pixontrone will cost, once the pricing is worked out with each of the European countries, somewhere between $33,000 and $38,000 to extend the lives of the target patients by less than a year, it will come to be part of the growing debate over end-of-life costs vs. benefit.

 

But over the longer term, it will be interesting to see how the developments of the past few weeks play out for Bianco and CTI, and to what extent the prediction of one of the national bloggers proves accurate: "It has been a long road for investors of CTIC, but it now looks as though the future is bright."

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Rushworth's portraits of the prominent present career-transition success story

As then-Gov. Gary Locke's staff was weighing which artist to hire to paint his official portrait, he was on hand at Safeco Field for the unveiling of the retirement portrait of Seattle Mariner great Edgar Martinez in the fall of 2004. After Mariner CEO Howard Lincoln unveiled the portrait on the field before 40,000 appreciative fans, Locke contacted his staff and basically said "I want that artist."

 

The artist who painted Edgar was Michele Rushworth and Locke, whose eight-year tenure as governor was nearing conclusion, thus became the first public commission for the Sammamish, WA, artist. It was a noteworthy step for a woman who, with little formal training in that medium, had decided a few years earlier to make portrait painting her career.


 
The portrait of Locke, completed several months later, opened important and extensive new doors for Rushworth with governors in other states, as well as high-ranking officials, contracting with her to do their portraits.

It was in the late 1990s that Rushworth, with two toddlers she and husband, Tim Jones, had adopted from China a couple of years earlier, decided to give up her career as an office-products sales executive and turn to portrait painting fulltime.

 

When I asked her about formal training, she admitted that her art-college schooling some 20 years earlier was "avant garde video production, performance art and scrap metal welding. Not much drawing or painting at all."

 

"I've taken a few week-long workshops since then, but that was about it," she added.

 

It was really more of a "eureka moment" for Rushworth, who recalls having done portraits "rather informally" in high school and college, as she thought about what line of work to go into after the kids started full time in school.

 

She says she found a website she describes as "like a portal site for portrait artists. I remember thinking, I could do this, and saying out loud, 'this is it!'"

 

From the late '90s until the breakthrough with the Martinez portrait, much of what she did was "dozens of private family portraits, mostly children," including daughters Rachel and Emily.

 

How competitive is her business?

 

Well, it's not like Michelango or Renior lounging about waiting for a summons from the Pope or the monarch. Rather there's an entrepreneurism and business savvy that come into play to be successful, and she says her sales years "were actually a big help in knowing how to run a business and work in a professional way with people in all sorts of fields."  

 

"The business of doing portraits is very competitive," she told me. "There are probably 50 to 100 artists in the United States who do what I do and we all know each other."

 

As to how decisions are made on who to hire to do a portrait, she says "whenever someone needs a portrait done they may have a favorite artist in mind or they may look at dozens of portfolios. Quite often they'll have seen a portrait they liked and want to work with that same artist."

 

So it was with the charge to do portraits of two Nevada governors after the Nevada Arts Council saw the Locke portrait.

 

And the Nevada commission led to an unusual assignment to do several Wyoming governors after that state's legislature decided to "fill in the blanks" of 12 former governors who had never had portraits painted, and hired three artists to do the work.

 

"Some were recent governors and some were from a hundred years ago," says Rushworth, who actually did five of the 12. "For the posthumous ones I worked with archive photos, history books, family records, etc. In cases where the former governors were still living I went to meet them."

 

Rushworth recently completed official portraits of two high-ranking military officers in Washington D.C: retired Commandant of the U.S. Coast Guard, Admiral Thad Allen, and Air Force Chief of Staff General Norton Schwartz at the Pentagon.

 

Now she is engaged in a couple of special assignments, one is to do Locke's successor, Washington Gov. Christine Gregoire, whom Rushworth describes as "delightful to work with," for a portrait that will be completed near year-end as Gregoire's eight years as governor come to a close. Gregoire's portrait will then hang next to Locke's in the gallery of paintings of the former state chief executives.

 

Then there is the second portrait of Locke, contracted for by the U.S. Department of Commerce, which Locke headed before becoming ambassador to China. That portrait will be unveiled in the fall, she expects.

 

Working with the man who is now ambassador to China on the portrait may serve as reminder for Rushworth of the memories of the country to which she and Tim, at the time vice president of sales for Puget Sound Business Journal, twice traveled to adopt their daughters.

 
 

She's fond of recalling how the portrait of Martinez that really opened the door to her success could have ended in amusement rather than applause from the thousands of fans. As she put the final finishing touches on the portrait, showing Martinez at home plate in his classic batter's stance, she recalls thinking that she was finished. Then she realized that she had left out home plate from the portrait. "I quickly fixed the oversight."

 

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For Egil Krogh, memory of Watergate break-in is a reminder of integrity lost

Reflections on the 40th anniversary of Watergate will, for many, merely be a pause to recall a bungled break-in that began the most tragic chapter in the history of the presidency. But for Egil (Bud) Krogh, an up-and-coming young Seattle attorney who became a key part of Richard Nixon's White House team, the lessons from the fall of a president echo down the years less as a bitter memory than as a reminder of integrity lost.

 
 

To Krogh, it's important that the events of 1972 that led inexorably to the resignation of Richard Nixon two years later be kept ever in the minds of elected officials and those who work for them. Thus he maintains a busy speaking schedule sharing his thoughts on integrity and the perspective of power before corporate and legal groups, academic assemblies and gatherings of young people on the importance of integrity-based decision making.

 

His 2007 book, "Integrity: Good People, Bad Choices and Life Lessons from the White House," had a second run last month, Krogh told me as I caught up with him by phone as he was en route toward a Pennsylvania speaking engagement. "It's selling better now than at the beginning. The issue of government integrity seems more relevant to people today."

 

He's also developed and is sharing a decision-making model he calls The Integrity Zone, which is designed to help people make integrity-based choices in their professional and personal lives. He suggests that the lessons from Watergate and its aftermath have become more relevant to people because of recent political and business scandals.

 

Krogh recalls that even though he had moved from the White House to be Undersecretary of Transportation by then, when he picked up the Washington Post that June morning in 1972 to read of the arrest of those who had been caught breaking into Democratic headquarters at the Watergate, he recalls one thought: "My God, that's my fault."

 

The reason for that reaction was that as co-director of the White House special investigations unit called the "Plumbers," Krogh had a year earlier approved a covert operation as part of a national security investigation into the leak of the Top Secret Pentagon Papers to the New York Times.

 

The covert operation was a break-in at the office of Lewis Fielding, the psychiatrist for Daniel Ellsburg, who had released the Pentagon Papers. Krogh hired G. Gordon Liddy and H. Howard Hunt to do that break-in, the same men who were arrested at the Watergate break-in.

 

Krogh assumed the blame for it all because he was convinced that the break-in at Fielding's office had created the sense that breaking the law on behalf of the president was acceptable, thus setting the stage for Watergate.

 

It's that conviction about his personal responsibility for what became Watergate, even though he knew nothing about the break-in before reading about it that morning, that has guided his thinking and involvements through the four decades as a sort of personal quest for redemption.

 

The dedication in his book, written with the help of his son, is a telling reflection of that lifelong campaign: "To those who deserved better, this book is offered as an apology, an explanation, and a way to keep integrity in the forefront of decision-making."

 

.The book itself details the lessons of Krogh's lifelong effort to make amends for what he describes as a "meltdown of personal integrity" in the face of issues of loyalty to the president and to the power of the office.

 

Krogh eventually went to prison for almost five months after pleading guilty to criminal conspiracy for engineering the break-in at Fielding's office.

 

Krogh has recalled in several of our discussions over the years how, after Nixon's resignation, his personal path toward reconciliation involved a visit with Fielding to apologize to him for what Krogh told him was "an unacceptable violation of the rights of a genuinely decent human being."

 

Then followed a visit with Nixon in California in which Krogh recalls basically saying: "Mr. President, I apologize to you because everything that's happened was really my fault."

 

Krogh and Ellsburg subsequently became friends with Ellsburg writing the forward comments for Krogh's book.

 

In our recent telephone conversation, Krogh noted that even the famous meeting between Nixon and Elvis Presley, who wanted to help the President tackle the nation's drug problem, had an outcome that simply lacked integrity.

 

"Elvis asked if the president could get him a special badge from the bureau of narcotics and, even though he wasn't entitled to that kind of a badge, I told the president I'd get one," recalls Krogh, who had actually arranged the Elvis meeting. "Elvis not only got a badge, but he carried it for seven years and he simply shouldn't have had that badge."

 

A historical note is that of all the requests made each year to the National Archives for reproductions of photographs and documents, the one that is requested more than any other is the photograph of Elvis and Nixon shaking hands at that December, 1970, visit. More requests than for copies of the Constitution or the Bill of Rights.

 

Krogh left Seattle and his law practice three years ago to join the Center for the Study of the Presidency and Congress as a Senior Fellow on Leadership, Ethics, and Integrity.

 

His current focus, however, is zeroing in on the School for Ethics and Global Leadership, which attracts high school students, and it's in that environment of sharing his philosophy with young people that he is honing his Integrity Zone concept.

 

And he is increasingly seeking to promote the concept of the Integrity Zone, which is based on a couple of fundamental considerations. The first challenges the process of thinking that precedes decisions, basically: "have I thought through all the implications?" while the second part is ethical considerations: "Is it right? Is this decision in alignment with basic values like fairness and respect?"

 

"We never asked any of those questions in the Nixon White House," Krogh said. "And most of what we see in Congress today fails those tests. Instead we see a focus on loyalty and feilty to party. You simply can't check your personal integrity at the door."

    

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'Do today' mantra guided decision to compete after cancer surgery

It was my new mantra of "do today what yesterday you might have put off until tomorrow" that guided my decision to compete in the 2011 Huntsman World Senior Games last October, four months after colon-cancer surgery.

 

The goal wasn't merely to prove that a 71-year-old guy can come back from major surgery and resume normal activity, even if the activity seems like a stretch to the sedentary of any age. It was also to acknowlege successful recovery from cancer while various friends are battling the Big-C, or have lost their battles.

 

There's a prescribed two-month "no strenuous exercise" recovery period following the kind of major surgery that was required for me last week of May last year.

 

I walked as much as possible during the weeks following surgery, but chafed at the fact my regular workouts on the treadmill and track, particularly the sprint portions, were on hold until the last week of July.

 

Just before the exercise-restraint period ended, I visited with my primary-care physician, Patrizia Showell, at Seattle's Polyclinic and asked: "So are you okay with my now working my tail off so I can run the 100 meters in the senior games first week of October?"

 

I could see the lady I refer to as my "super doc" mentally calculating the calendar before replying: "Go for it."

 

Putting on my workout shoes for the first time in two months brought an adrenalin rush but I knew I was going to have to be uncharacteristically cautious with my leg muscles, particularly the hamstrings that had always caused me trouble. The worst thing I could imagine at that point was that I would press too hard and pull or strain a hamstring and that would be the end of the goal.

 

The 2011 Huntsman World Senior Games had a special appeal to me because it was the 25th anniversary of the two-week event created by Jon Huntsman Sr., in 1986. What could make the competitive comeback more special than it being for a special milestone for the games themselves?

 

Jon Huntsman Sr.'s vision was that an event called the World Senior Games, even if held in a remote corner of Southwest Utah, would eventually draw thousands of what others might dismiss as "the elderly" for the chance to play and compete with their peers.

 

So it is that 25 years after their founding, the 2011 games attracted about 6,000 seniors who, over the two-week period, competed in everything from track and field to badminton, pickelball, lawn bowling, volleyball, square dancing and even bridge. Some of the competitors were in their 90s.

 

I've been drawn to the games because of the "world" name since I first heard of them in 2003 and made up my mind to compete in the 100 and 200 meters in my age group once I learned that you didn't have to be a "world class" athlete. That means some competitors really were world class while others like me, who weren't, could still compete, and that's always been the magic draw.

 

In that 2003 competition, I managed to finish sixth in both the 100 and 200 out of fields of 24 in each event. But the reality was that those at the front of the pack in both events were, in fact, world class and thus it was satisfying just to be in the same race in which I could see them in the distance.

 

Huntsman, 73, founded and was longtime CEO, now executive chairman, of what has become the publicly traded (as of 2005) $9 billion world's largest chemicals company with 12,000 employees. He and his wife, Karen, still open each year's Senior Games, where the participants now number in the thousands each October.

 

Huntsman, father of the former Utah governor, China ambassador and briefly a Republican presidential hopeful, Jon Huntsman Jr., evidenced his ultimate commitment to community following prostate cancer surgery 15 years ago.

 

He set out to establish a world-class cancer research and treatment center, a dream he's pleased to say is now realized with the Huntsman Cancer Institute and Hospital in Salt Lake City.

 

The Huntsman family continues to serve as principal benefactors and fundraisers for the Huntsman Cancer Institute with what he describes as "the ultimate goal" of eradicating the most challenging forms of cancer.

 

And it's on that final note about the Huntsmans' commitment to community and overcoming as great a challenge as cancer that I sense a common thread in their commitments and the commitments of those who travel to St. George each year to participate and compete.

 

The producer of a recent movie on the senior games said: "What drew us to the senior games was the positivity. These people have an unparalleled zeal for life. When you're 90 and 100 years old and have endured life's challenges and still have such a positive attitude, it's beyond impressive. We felt it was worth a film."

 

In a sense the producer summed up in his way what's become my view: Life is a race to be appreciated for the joy of participation and whether world class -- or a bit slower --making in to the finish line ahead of cancer, or any other physical or mental obstacle, is really the sweetest race to win.

 

So in recent days a year-later clean bill of health on last year's cancer sets the stage for my few-days-hence prostate cancer surgery, as Jon Huntsman Sr. underwent those years ago. Then I can begin to tick off the "no strenuous exercise" weeks, which my surgeon tells me will be a shorter wait this time, before I can begin getting back into condition for the 2012 games.

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Story book debut for U of Idaho tech transfer's Anderson and her potato pitch

When Gaylene Anderson decided on an entrepreneurial coming-out party from her tech-transfer role at the University of Idaho, she chose the biggest business-plan competition stage in the country and picked the quintessential symbol of Idaho to tout her fledgling company.

 

The result was a storybook debut in which she wowed the audience and the judges and is now gaining national attention for herself and Solanux Inc., whose academia-developed process turns the potato into a health food.

 

 
 

The next chapter in Anderson's emergence from the relative obscurity of her university technology transfer role of the last 10 years to a once-in-a-lifetime experience as triple honoree at the Rice University Business Plan Competition will be inclusion in a special section in Fortune magazine's May issue.

 

In the space of three days last month, she won the Rice competition's 60-second elevator pitch, was honored by a national women's entrepreneur organization, and her team took fifth in the competition.

 

"The 42 finalists from among 1,600 business-plan applicants included schools like MIT, Harvard, Johns Hopkins, Northwestern, Purdue...and Idaho," she said with a smile. "When we said we were from Idaho, people kind of chuckled. I think they thought of us as cute, but not likely to be competitive, but the opinions changed after our first presentation."

 

By the time the competition ended two days later, the Idaho team had won $25,000, which included $1,000 for Anderson's winning 60-second pitch, $4,000 for the team's fifth-place finish and $20,000 for the Courageous Women Entrepreneur Award.

 

That award came from a national women's investment group called nCourage, which Anderson says has now offered to help raise the rest of the money for the Solanux start-up.

 

In addition, she has been advised by the Texas Angel network that they want her to present to one of their groups in July

 

Most of the initial funding of about $1.5 million has come from J.R. Simplot, the Boise-based potato-products giant. And while the goal of the initial fund-raising effort has been $2.5 million, she confides that the target is now likely to double.

 

"We'll likely be looking now to raise $5 million because Simplot wants to expand the pilot testing phase and we want to produce a potato chip with this process, go after our own product," she said.

 

Her first visibility following the Rice event was in early April on CNN Money's website, where the 60-second elevator pitches by Anderson and others were featured (and which you can see on YouTube, as she talks holding up the potato, which she says she "carried everywhere" in Houston).

 

It hadn't been Anderson's intent to steal the show, but rather to use the competition to take a key step toward attracting investor attention for Solanux, which uses enzymes and chemicals to turn dehydrated potatoes into a healthy food product rather than starch.

 

"Enzymes and chemicals are used to stabilize the cell walls around potato starch, which slows digesting of the starch and increases the fiber in potatoes," Anderson said in explaining the process. "The process is used when raw potatoes are being converted to dehydrated potato flakes, granules or flour and the dried ingredients have increased health benefits, like lowering glycemic response, aiding with weight reduction and acting like a natural probiotic."

 

"These products will benefit diabetics, people that have allergies to corn or wheat starch products (Solanux products will be gluten free), and people that simply want more healthy (and more variety) potato products," she added.

 

When the product was brought to Anderson's attention in the university's tech-transfer office, she put a team together that named the product ("Solanum is Latin for potato, but I figured if we substituted an 'x' for the 'm,' it would sound techie," she explained in an interview) and has been guiding its progress.

 

The process was perfected by U of I food scientist Kerry Huber, who is part of the Solanux team, as is Jacob Pierson, a third-year law student with a master's in bioinformatics, whom she credits with much of the success at the Rice competition.

 

Anderson will be staying with the company in a key-executive capacity as future progress develops under the watchful eyes of Simplot executives. Going along with Anderson will be her husband, currently the U of I swim coach, and their teen-age sons.

 

It was the swimming focus of her family (her 15 and 17-year-old sons are competitive swimmers) that actually guided Anderson's first entrepreneurial venture, a learn-to-swim video called Waterproof Kids, a CD available at Wal-Mart and through Amazon. Asked if they provide her an income, she said "A little, but not enough to quit my day job."

 

Anderson admits that Solanux is the first tech-transfer product that ever tempted her to leave academia for the private sector. But she says when she saw U of I president N. Dwayne Nellis at an event two weekends ago and advised him of her decision to leave, he convinced her to instead take a two-year entrepreneurial leave.

 

In what may be the makings of a marketing pitch for products that are eventually created from the Solanux process, Anderson enthuses: "This may be our best hope for eating French fries without self-hate."

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End of state's liquor role will bring major competition for Wine World

When David LeClaire conceived and launched Wine World Warehouse in late 2010, his vision was to be the "big dog on the block" of wine stores in the Northwest. But 16 months later, he's hoping to map a strategy to keep his wine superstore successful in the face of the pending arrival of the 900-pounds gorillas of the business.

 
 

The "gorillas" are the two $1 billion players for whom Washington State held no interest because the state controlled the business of selling liquor, which is a key source of revenue for the multi-state operations of Total Wine & More, and BevMo!

 

That lack of interest by the biggest players was part of the impetus when LeClaire decided a couple of years ago to pursue his longtime goal of a wine superstore in Seattle and gathered a team of investors.

 

But the competitive world changed, of course, with overwhelming voter approval last November of Initiative 1183, which puts the state out of the liquor business on June 1. Grocery stores and others with over 10,000 square feet of space will begin legally selling spirits for the first time since the start of Prohibition.

 

The websites of  both Concord, CA-based Total Wine and Connecticut-based BevMo! now tout that Washington residents will soon be able to take advantage of their discount prices of hundreds of brands of wine, beer and spirits.

 

LeClaire's Wine World is no small player, boasting more than 500 wines from Northwest wineries and over 6000 wines from all over the world in its 23,000 square feet of space in a location adjacent to and highly visible from I-5 just north of downtown.

 

And because of its size, it will be one of the few facilities other than grocery stores that will be permitted to sell liquor, as LeClaire intends to do come June 1. The facility will be devoting the back end of the store to a selection of premium and local spirits.

 

But Wine World's size is David vs. Total Wine's Goliath, with each of its stores carrying about 8,000 different types of wine, 3,000 types of spirits and 2,500 different beers. BevMo! Is slightly smaller but similar in its array of offerings.

 

LeClaire had spent more than a decade doing wine-related events around the county and building relationships in the industry with his Wine Events & Promotions company, as well as creating the two largest wine clubs in the Northwest, Seattle Uncorked and Portland Uncorked.

 

But LeClaire seems optimistic that his long-term relationships, as well as new-found ones generated by the type of events he's created, as well as the fact the giants have been suburban-based operations, will put him in a position to continue to have a successful niche.

 

"People in the suburbs are very chain friendly," LeClaire said, "But there's a lot of pushback from the inner cities, where no one really wants a Walmart. Neither has really ever cracked the inner city." In fact, residents of Santa Barbara, CA, put up such a fuss against a plan by Total Wine to locate there that the company cancelled that plan.

 

"We know that both have already signed three leases each with both being in South Center with other locations set for Silverdale, Tacoma, Bellevue and Spokane," LeClaire said.

 

"The challenge these big guys represent is that they will have large campaigns and they'll grind down the competition on price," he added. "We're not going to be able to compete on price. We'll have to continue to do events that make it fun to come to our store," noting that their wine club now has about 3,000 members.

 

"We get a lot of trade groups from around the country and the world," LeClaire said. "We had a collection of wineries from Argentina and have 30 winemakers from Italy next month."

 

He said the visiting wine groups use Wine World as a venue to display their wares for restaurants and other customers.

 

So how has business gone since the December, 2010, opening? "We had a huge surge at first but then things slowed a bit and we underperformed the first year vs. our plan," he said. "But then things started kicking in in October and people came in, and many told their friends about us."

 

So innovative events that attract wine lovers will become increasingly important for LeClaire and his business as the competition begins to heat up. And what kind of innovative new events are in the works?

 

"We have a dog food tasting event next month," he explained. "So while the owners are tasting wine, their dogs will be tasting various doggie offerings."

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Ellis reflects on the dramatic events that saved Mariner franchise 20 years ago

John Ellis, who was a reluctant CEO looking forward to retirement when he was called on 20 years ago to help find local owners to save the Seattle Mariners' franchise, admits that he wasn't even a baseball fan when he undertook the almost-lost cause of saving baseball for Seattle      

              __________________  

 

        Then-Gov. Mike Lowry recalls  

        legislative solution to fund what

               became Safeco Field 

                         (See sidebar below)  

               ___________________ 

 

 

"I didn't know much about baseball and wasn't really a baseball guy," Ellis admits, reflecting back on the events of late '91, early 1992. And he didn't really understand how deeply

 
 

embroiled he would become when he undertook the role that Seattle Mayor Norm Rice, and subsequently other business leaders, urged on him, a role in which he soon found how challenging saving the franchise would be.

 

 "I'm not sure if, to this day, anyone really knows how close we were to losing this franchise," says Ellis, who eventually served as chief executive officer of the Seattle Mariners and remains, 13 years after retirement, the team's primary representative to major league baseball.

 

It's a tale that deserves to be retold at a time when, rather than preparing a celebratory anniversary event for the Mariners to applaud what was achieved two decades ago, community leaders and baseball fans seem intent on railing against the Mariners for a variety of  perceived shortcomings.

 

It was in the midst of last week's outcry over the Mariners' push back on the idea of a new arena that they legitimately pointed out could bring a couple hundred more traffic-generating events a year to the Sodo neighborhood that I visited with Ellis over lunch. It was a visit scheduled several weeks ago so the controversy itself wasn't the topic of conversation, other than a brief, frustrated reference to it by Ellis.

 

I wanted his reflections on those tense days in late 1991, early '92, when an unlikely alliance of a dramatically wealthy Japanese businessman, a group of wealthy young local tech executives and a couple of senior community leaders was cobbled together to keep major league baseball in Seattle.

 

Ellis, as CEO of Bellevue-based Puget Sound Power & Light Co., had agreed to serve as an advisory board member to Mariner owner George Argyros, then to succeeding owner Jeff Smulyan, both commitments made as a community leader rather than baseball devotee. Thus he was logical member of a special advisory group Seattle's mayor turned to when it became clear Smulyan intended to sell the team.

 

"Norm's idea was for us to go out and find someone to buy the team, which at that point was appraised at $100 million," Ellis recalled. "After poking around for awhile looking for a possible buyer, we finally told the mayor we couldn't find anyone crazy enough to put up $100 million to buy a baseball team."

 

At that point, Ellis figured he could go ahead with his plan to retire as CEO of the  region's largest investor-owned utility, get on his boat and set out on a leisurely cruise to Alaska, as he had long planned to do.

 

But over that late December of '91, Sen. Slade Gorton's own efforts on behalf of saving the Mariners uncovered, to his astonishment, in a visit with Nintendo of America President Minoru Arakawa, an interest by his father in law, Haricho Yamauchi, purported then to be the third richest man in Japan, to buy the Mariners.

 

Ellis was quickly sucked into a furious effort to figure out how to get major league baseball, whose antipathy to any foreign ownership but Japanese ownership most of all, to even consider Yamauchi's offer while averting a sale to someone else that would render meaningless any Seattle effort.

 

After an aborted effort by "a totally naïve local group, led by the most naïve guy of all (referring to himself)" to meet with commissioner of baseball, Ellis found himself summoned to a what he describes as "a secret meeting," a "cloak-and-dagger"-like, assumed-name visit in St. Petersburg, FL, with unnamed major league owners.

 

Ellis arrived at the designated hotel and checked in for a meeting that never occurred with a small group of owners whose identity he never learned. But what did occur told him how close Seattle was to having the team leave before the efforts to save the franchise could even gain traction.

 

"I looked at the hotel shop across from the front desk and saw they were selling Tampa Bay Mariners shirts and hats," he said. "That experience and a couple of others that followed made it clear that the deal to move the team to Tampa Bay was already in the works.

 

"the simple fact is that if we hadn't put this together when we did, beating Smulyan's contractual deadline to get out of his Kingdome lease, the team would have been gone," Ellis said.

 

So as the Seattle-ownership deal began to gain traction, both the group of owners who had been brought together to join Yamauchi and Arakawa, and later, major league baseball executives as their opposition eased, insisted that Ellis be a part of the leadership of the team.

 

"At the June meeting of the owners, after all their conditions for our ownership group had finally been met, they told me they had two remaining conditions," Ellis recalls. "First they said they wanted me to serve as the team's rep to major league baseball, the person each team has who is empowered to act without anyone else's approval.

 

"The other condition floored me," he said with a smile. "They said they expected the owners' rep to have a significant financial interest in the team. I replied 'can you tell me what you mean by significant?' and they all broke out laughing because they had gotten to know me and knew the extent to which I could be involved. My financial role ended up being not very substantial."

 

But his involvement as CEO, between then and his retirement at the age of 71 at the end of the '99 season, was extensive and, as he recalls, every time he thought he'd be able to hand over the reins and head out on that boat trip to Alaska, a new challenge emerged.

 

First task was finding a new manager who would represent a statement. So after convincing Chuck Armstrong to come aboard as president and retaining Woody Woodward as general manager, he asked the two of them who should be the new manager "The guy atop both their lists was Lou Pinella."

 

The events that unfolded between then and his retirement included the Kingdome roof collapsing, the players strike, the memorable end-of-season race to the league championship series in 1995, the struggle to get voter approval for a new stadium, legislative alternative when the vote failed.

 

Although he retired in 1999, the stage had been set with the players and team executives who would two years later set the American League record for victories in a season at 116.

 

Since 2000 he has been the franchise's chairman emeritus, but has remained on the executive committee of major league baseball and has continued to be the Mariners' representative to MLB and on the ownership committee.

 

He remains a one-of-a-kind in major league baseball: as the team's retired top executive who never had more than a tiny piece of ownership but who is still viewed by the other teams' owners as the most important voice of Seattle baseball.

 
             -----------------------------------------


Mike Lowry recalls '95 legislative pact that

cemented franchise with stadium funding 

 

While John Ellis gets legitimate credit for his role in saving the Seattle Mariner franchise in 1992, of equal importance was Gov. Mike Lowry's role three years later when he brought the franchise back from the edge by getting the Legislature to agree on a new-stadium funding package.


A 1995 ballot measure to impose a sales-tax increase to fund construction of a new stadium was pushed from hopeless to near passage by the miraculous late-season dramatics of the Mariners that included a memorable victory over the New York Yankees before a championship-series loss to Cleveland.
 

 

"After that sales-tax ballot issue failed by the razor-thin margin of about one-tenth of a percent, I remember Ellis calling a news conference to say the team would be put up for sale because it was losing a lot of money in the Kingdome," Lowry told me Tuesday in an e-mail exchange.

 

Lowry recalled that he was approached by his longtime friends, public-relations executive Bob Gogerty and Boeing's chief of governmental affairs, Bud Coffey, as well as the mayor and county executive, asking him to call a special legislative session to find a stadium-funding solution.

 

"I frankly wanted to do that," Lowry said, "because they had run a great campaign in their narrow sales-tax ballot loss. It was a media campaign that featured tremendous commercials that had young kids who were playing baseball morphing into the actual Mariner players, like Ken Griffey with a tag line that I think went like 'Heroes need a place to grow and become real.'"

 

Lowry says he called Ellis to ask if the owners could hold off on seeking to sell the team until he had a chance to see if he could get the lawmakers to agree to a brief special session limited to the Mariners' issue.

 

"I frankly got a positive reaction from the legislative leaders," Lowry noted. "I guess they didn't want to lose the Mariners either."

 

Thus in something that could probably have only happened in the political environment of yesterday, Lowry was able to work out a deal with key Democrats and Republicans from both houses on what he remembers as "a totally new funding package that was importantly different from the sale-tax measure."

 

"It was composed of taxes that were mostly on the users and beneficiaries of the new stadium, like admission taxes and sports bar taxes," he said. "As I recall, the only new tax in the package that was a stretch to say it was a beneficiary of the stadium was on rental cars."

 

In recalling his feelings in undertaking the legislative initiative, Lowry said "I simply did not want Seattle and the state to have the image of losing that major sports franchise. That struck me as Rust Belt."

 

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Supporters of crowd funding for startups must await SEC rule-making process

Now that the so-called crowd-funding measure has whipped through Congress with a speed and level of bipartisan support unheard of in recent years, the effort to make it fulfill its promise of creating new companies and jobs begins. And that may prove more challenging than its passage.

 

Before any entrepreneur with a can't-fail idea rushes to the Internet in hope of attracting a crowd of investors, the Securities and Exchange Commission must first set the rules on how provisions of the law will be permitted to play out. The agency has 180 days to fulfill those duties.

 

The legislation, called the Jumpstart Our Business Startups Act (JOBS) will dramatically expand the way new companies can raise money and the reduce the oversight for smaller companies doing initial public offerings.

  

After quick congressional approval last week, President Obama, who admits he first learned about the proposal in early March, will be signing the bill Thursday.  

 

Supporters view it as a major breakthrough for funding entrepreneurial startups and thus eventually creating jobs. Critics are convinced it is a funding disaster in the making. Both will have to wait to see what the SEC comes up with.

 
 

That process that will draw its own critics as it unfolds and the fact it's now in the SEC's hands will likely create some apprehension for friends and opponents alike.

 

More than a few cynics have suggested that the bill's acronym, JOBS,  is a key reason few in Congress dared oppose it despite a lot of whispered reservations.

 

What the bill seeks to achieve is the opportunity for people (crowds) to organize via internet websites to fund companies. Using the internet to raise money is a process that's long been utilized for charitable and entertainment purposes.

 

 The crowd funding approach would open the way for people to invest as little as $500 and up to $10,000 in startups, eliminating the long-time steep financial requirement for investors, other than what's known as "friends and family" investors.

 

The kind of hype that has marked the rapid progress of this legislation through Congress is nowhere better displayed than on the website of Crowdfunding Offerings, which pitches its ability to provide an investment platform for "the crowd."

 

So here's the firm's pitch:

"Crowdfunding investing will allow start-ups and existing businesses to raise funds for their companies directly from the public who will invest small amounts of money in return for shares in the company. Americans will finally have the opportunity to invest in ways that have historically been reserved only for the wealthy. Together, America's entrepreneurs and investors will launch the next great ideas of our time!"

 

When I write occasionally about angel-investing issues, I turn to friends from Montana to California who are leaders among angel investors, with an occasional venture capitalist thrown in. Their collective insights inevitably create a better understanding of the issues, but disagreements among them frequently abound. And so it was with the crowd-funding measure.

 

The most vocal and opinionated among my angel friends on this issue is Bill Payne, who summers in the Flathead Valley of Montana and winters in the Las Vegas area. Payne, who gets to a conviction about his views because of the respect he receives from angel investors across the West and beyond, describes the bill as "a train wreck waiting to happen."

 

"Lots of investors will get scammed," Payne suggests. "Just give it a couple of years and Congress will be asking the SEC how they ever let this happen!".

 

Mike Elconin, San Diego-based leader of the major Southern California angel-investor organization Tech Coast Angels, sums up a concern that even some proponents share.

 

"The danger is that this new law will engender an expansion of boiler rooms in which slick sales people convince unsophisticated investors to put money into companies at highly inflated valuations," says Elconin. "Whether you think this is a problem for government to prevent, or a matter of buyer beware, depends on your political philosophy."

 

Dan Rosen, a respected Seattle attorney-investor and a policy director for the Angel Capital Association (ACA), is among those who supported the legislation and helped author an ACA internet post to help inform angels on the bill

 

Rosen, at the invitation of the White House, will be on hand at the bill signing Thursday. 

 

Liz Marchi, who presides over the Kalispell-based Frontier Angel Network, frames why many supporters have looked beyond those concerns at what many perceive as the underlying importance of the legislation.

 

"While there will inevitably be some hiccups in the execution of crowd-funding, I think it's a major breakthrough for early stage seed capital," she said.  "Congress has certainly allowed some risk with this bill, but it drives private capital down the food chain where it is desperately needed to seed innovation."

 

Tom Simpson, former venture-capital leader who now heads the Spokane Angel Alliance, sees the new law as "not perfect, but a step in the right direction."

 

"But I agree with Payne that the more investors a new company has, the more the likelihood for problems," he added.

 

Republican Sen. Scott Brown of Massachusetts, who conceived the measure, offers perhaps the most compelling argument in favor of it.

 

He explained that the long-time practice of people funding their new businesses by mortgaging their homes is basically no longer possible. So a new source of start-up capital was necessary, particularly in the face of the disappearing hope of bank financing.

 

My own sense is that the typical congressional supporters of the bill went through the following conversation with themselves:

 

"Job creation is so politically important today that if it costs investors a few thousand dollars each down the road, it's worth it. Somebody has to pick up the tab for creating jobs and we certainly can't. Poor people buy lottery tickets all the time taking risk far greater than investing in a start-up company. So let's get on with it."

 

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