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SEC's struggle with rules for start-up fundraising troubles some angel investors

The federal JOBS Act aimed at opening the door for entrepreneurs to reach out to crowds of potential investors on the internet appears, ironically, to be hung up at the Securities and Exchange Commission (SEC) on the issue of tighter restrictions on entrepreneurs who seek more sophisticated investors.

 

In fact, angel-investor leaders are concerned that the SEC's deliberations may produce rules that make it harder for entrepreneurs to raise money from those wealthier individuals, referred to as "accredited" investors. 

 

Liz Marchi
Liz Marchi

The reason is that Congress decided that entrepreneurs would have to validate investor accreditation, rather than being able to take the word of investors that they were "accredited," as has been the case until now. But the lawmakers left it to the SEC to figure out how to impose rules for such "validation."

 

"I don't think anyone in Congress was thinking about the actual impact the change would have on accredited-investor rules," said Liz Marchi, whose Frontier Angel Fund, Montana's first angel fund, has become one of the nation's most successful angel-investor groups. "That's why I think you see basically nothing being done at the SEC."

 

The legislation, officially the Jumpstart Our Business Startups Act, was passed by Congress in April and was designed to be a job creator by making it easier for entrepreneurs to raise capital and thus launch companies and create jobs. The first part of the bill would ease raising start-up capital through "crowdfunding" on the Internet and the second part to eliminate the prohibition against advertising and soliciting traditional "accredited" investors.

 

The SEC was given until yearend to determine the rules that would govern operation of crowd-funding efforts. But the portion dealing with accredited investors called for the SEC to figure out by July 4 how to implement rules to eliminate the prohibition against general solicitation and advertising in securities offerings.

 

The regulatory body missed that deadline but SEC chairman Mary Shapiro told Congress the agency would have the rules in place by end of summer. That target has now become year end, and the betting is that it'll be sometime in the new year before the rules are put forth.

 

The Angel Capital Association and angel investors like Seattle's Dan Rosen, who are closely involved in following the SEC deliberations and seeking to influence them, are hoping to get final SEC rules simple enough that entrepreneurs "don't have to jump through enormous hoops to prove investor accreditation."

 

The phrase angel leaders are using to indicate what's needed for those entrepreneurs seeking accredited investors is "safe harbor," meaning a safeguard for entrepreneurs that they have actually done some due diligence on the investors.

 

Rosen, a leader of Seattle's Alliance of Angels, says "we've been working with the SEC to come up with a compromise that will ensure there is a safe harbor. But if they come out with a rule that is not acceptable, we will go back to Congress and seek changes there."

 

What's causing much of the teeth-gnashing for entrepreneurs and those like ACA and Rosen looking out for their interests is the apparent difficulty the SEC is having figuring out just what are the "reasonable steps," that will be required of entrepreneurs.

 

The irony of, in essence, tightening the screws on entrepreneurs seeking funds from qualified investors is that those entrepreneurs, rather than the ones seeking limited amounts of money from crowds of small investors, are the ones most likely to be job creators.

 

Bill Payne, viewed by many as the dean of angel investors and a member of Marchi's Kalispell-based Frontier Angels, is critical of how Congress packaged the JOBS Act.

 

"The legislation does not appear to have been well thought-out and seems to be our Congress simply finding something upon which they could agree," said Payne, who was Entrepreneur in Residence at the Kauffman Foundation and was named angel investor of the year in both the U.S. and New Zealand.

 

In fact, the JOBS Act brought the best example of bipartisan support evidenced by Congress in the past four years.

 

"Congress was motivated on this legislation because the lawmakers finally figured out that entrepreneurs are at the heart of this country's future and there were few tools by which Congress could feel like it was playing a role in the country's economic future," said Marchi.

 

Marchi's angel fund has been proving recently that angel investing can be profitable for the angels as well as important for jobs and the economy.

 

Two of the fund's investments, Coeur d'Alene-based Pacinian, a maker of wafer-thin keyboards, and Bozeman-based LigoCyte Pharmateuticals Inc., were acquired by major companies in the past few months. Frontier had substantial stakes in both and thus got substantial rewards.

 

Pacinian, which represented 10 percent of Frontier's total fund, was sold to Silicon Valley tech firm Synaptics this summer for an initial $15 million plus a substantial additional amount in the future based on various factors.

 

And a substantial bridge-round investment Frontier made about four years ago in LigoCyte Pharmateuticals Inc. paid off big last month with the announcement that Japan's Takeda Pharmaceuticals' wholly-owned U. S. subsidiary was buying the Montana vaccine maker. The agreement provided for an upfront payment of $60 million and "future contingent considerations" for LigoCyte, whose lead product, a vaccine to prevent norovirus gastroenteritis, is in clinical development.

 

Marchi declined to discuss specifics of Frontier's multiples from the two sales. But she noted that the two exits will have returned the original investment capital to her members, "and perhaps even some profit. So every one of our other 10 investments can produce profits."

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Recalling a home's 40 years of memories

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For four decades, it was the place where three children grew to adulthood and where their laughter and tears, and those of eight grandchildren, echoed from walls and windows that were always decorated by Betsy (mom and grandma) for the appropriate holidays.

But the big old four-bedroom colonial in Seattle's desirable Mount Baker neighborhood had become too large for a now-aging couple, so the time to find a retirement apartment had arrived.

The attraction of moving into inviting new downtown-view quarters at Horizon House, one of Seattle's more sought-after facilities for retirees (and those not yet retired), eased the challenges of the move, particularly since familiar faces from Seattle's business community appeared around each corner.

But with the unfolding challenge of rapidly, and not easily, downsizing to take 40 years of accumulated items from 2,500 square feet plus basement into a place half that size, the memories surrounding the rooms, and many of the items, hung in the air.

In one bedroom, there was the bitter-sweet memory of the arrival of the daughter, born a year after our arrival back in Seattle from the Los Angeles area, who too briefly slept in her crib there.

Sarah Elizabeth, born four days before Christmas in 1973, gave a special meaning to that holiday season. Her brother and sister would sit on the couch and push as close as possible, looking on with smiling fascination while mom held or fed the baby.

Two months to the day later, we found Sarah dead in her crib, a victim of Sudden Infant Death Syndrome (SIDS). In an effort to bring meaning from her death, Betsy and I became involved in the state SIDS organization, first taking support in our pain, then eventually giving back by supporting other SIDS parents who needed help coming to grips with their loss. We learned you take, give back, then move on, once the realization comes that painful memory is replaced by loving memory.

The pain of Sarah's loss found a counterpoint two years later with the excitement of the arrival of Eileen, who bore the burden of being the "subsequent child," a description hung by psychologists on children born following the death of a sibling.

I made a point of being the one to check the sleeping Eileen each night as she lay in the same crib, though different bedroom, so that if she too had died, I'd be the one to discover it this time. As she passed the "at-risk" first year, the fatherly fears passed. But she retained, as the years passed, a special place in the family.

An enduring image for me was of the nightly routine we had when the children were young, of my singing them songs after they had been tucked into bed. I can still hear: "One more song please, daddy!" and Betsy admonishing: "You're being taken advantage of."

Those songs of childhood became part of our family culture, particularly when Michael grew into a young man and learned to play the guitar. As he would be sitting in the living room, in the final years before he married and began raising his own family, he'd be playing and singing to himself and dad would walk in and say: "play me a song, Michael."

Inevitably, it would be one of those songs I sang to Meagan, Eileen and him.

But sometimes it was Dan Fogelberg's "Leader of the Band," which Michael had learned to sing and play. And since it was one of his father's favorite songs, we'd sing it together. And again.

Then there was the room where Meagan and her Brownie troop gathered for their Monday afternoon activities under the guidance of her father, who turned out to have been the first male Brownie leader in the state.

That came about because when Meagan and a couple of friends found there were no Brownie groups they could join, her father said "let's see if this equal opportunity thing flows both ways. Is a man acceptable to lead a troop of girls?"

When I volunteered, the Brownie moms, to Betsy's amusement, called my bluff, welcomed me to the Brownie leaders' team, gave me the largest group of girls. But the moms were constantly supportive and available for questions from the rookie leader who was frequently panicked about creating projects and keeping a dozen second-grade girls focused. And Michael became a member of the group, possibly the first male Brownie in the state.

The empty spot by the front French doors after movers had cleared the area made it harder to picture the Christmas tree that occupied the spot each holiday season, to be surrounded by excited children, or grandchildren and their parents. And the absence of the sofa and chairs made it difficult to recall the candy-filled plastic Easter eggs that were inevitably hidden in and around them.

As we returned in recent days to check out the now-empty house, with its unfamiliar echoes as we moved through each room, an important reality for us, and for all those making large life changes, became clear. The memories don't remain behind in the place where they were made. Rather they travel with us, an essential part of the experiences we gather and carry through the years. Memories to be recalled and savored. Forever young.

 

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Reflections on memories made, but not left behind, in family home of four decades

 

For four decades, it was the place where three children grew to adulthood and where their laughter and tears, and those of eight grandchildren, echoed from walls and windows that were always decorated by Betsy (mom and grandma) for the appropriate holidays.

 

But the big old four-bedroom colonial in Seattle's desirable Mount Baker neighborhood had become too large for a now-aging couple, so the time to find a retirement apartment had arrived.

 

The attraction of moving into inviting new downtown-view quarters at Horizon House, one of Seattle's more sought-after facilities for retirees (and those not yet retired), eased the challenges of the move, particularly since familiar faces from Seattle's business community appeared around each corner.

 

But with the unfolding challenge of rapidly, and not easily, downsizing to take 40 years of accumulated items from 2,500 square feet plus basement into a place half that size, the memories surrounding the rooms, and many of the items, hung in the air.

 

In one bedroom, there was the bitter-sweet memory of the arrival of the daughter, born a year after our arrival back in Seattle from the Los Angeles area, who too briefly slept in her crib there.

 

Sarah Elizabeth, born four days before Christmas in 1973, gave a special meaning to that holiday season. Her brother and sister would sit on the couch and push as close as possible, looking on with smiling fascination while mom held or fed the baby.

 

Two months to the day later, we found Sarah dead in her crib, a victim of Sudden Infant Death Syndrome (SIDS). In an effort to bring meaning from her death, Betsy and I became involved in the state SIDS organization, first taking support in our pain, then eventually giving back by supporting other SIDS parents who needed help coming to grips with their loss. We learned you take, give back, then move on, once the realization comes that painful memory is replaced by loving memory.

 

The pain of Sarah's loss found a counterpoint two years later with the excitement of the arrival of Eileen, who bore the burden of being the "subsequent child," a description hung by psychologists on children born following the death of a sibling.

 

I made a point of being the one to check the sleeping Eileen each night as she lay in the same crib, though different bedroom, so that if she too had died, I'd be the one to discover it this time. As she passed the "at-risk" first year, the fatherly fears passed. But she retained, as the years passed, a special place in the family.

 

An enduring image for me was of the nightly routine we had when the children were young, of my singing them songs after they had been tucked into bed. I can still hear: "One more song please, daddy!" and Betsy admonishing: "You're being taken advantage of."

 

Those songs of childhood became part of our family culture, particularly when Michael grew into a young man and learned to play the guitar. As he would be sitting in the living room, in the final years before he married and began raising his own family, he'd be playing and singing to himself and dad would walk in and say: "play me a song, Michael."

 

Inevitably, it would be one of those songs I sang to Meagan, Eileen and him.

 

But sometimes it was Dan Fogelberg's "Leader of the Band," which Michael had learned to sing and play. And since it was one of his father's favorite songs, we'd sing it together. And again.

 

Then there was the room where Meagan and her Brownie troop gathered for their Monday afternoon activities under the guidance of her father, who turned out to have been the first male Brownie leader in the state.

 

That came about because when Meagan and a couple of friends found there were no Brownie groups they could join, her father said "let's see if this equal opportunity thing flows both ways. Is a man acceptable to lead a troop of girls?"

 

When I volunteered, the Brownie moms, to Betsy's amusement, called my bluff, welcomed me to the Brownie leaders' team, gave me the largest group of girls. But the moms were constantly supportive and available for questions from the rookie leader who was frequently panicked about creating projects and keeping a dozen second-grade girls focused. And Michael became a member of the group, possibly the first male Brownie in the state.

 

The empty spot by the front French doors after movers had cleared the area made it harder to picture the Christmas tree that occupied the spot each holiday season, to be surrounded by excited children, or grandchildren and their parents. And the absence of the sofa and chairs made it difficult to recall the candy-filled plastic Easter eggs that were inevitably hidden in and around them.

 

As we returned in recent days to check out the now-empty house, with its unfamiliar echoes as we moved through each room, an important reality for us, and for all those making large life changes, became clear. The memories don't remain behind in the place where they were made. Rather they travel with us, an essential part of the experiences we gather and carry through the years. Memories to be recalled and savored. Forever young.

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For fourth-generation Stanton, stewardship trumps profits at Washington Trust Bank

"When something has been in your family for four generations, stewardship becomes more important than a focus on profits," says Peter F. Stanton, chairman and CEO of Spokane-based Washington Trust Bank, in explaining how his company escaped most of the banking turmoil of the past four years.

 

Peter F. Stanton
Peter F. Stanton

"That doesn't mean we spend our time looking in the rearview mirror," added Stanton, who was named president in 1990 to become the fourth-generation head of the bank that is now the oldest and largest privately owned commercial bank in the Northwest.

 

"We're focused on the future, but securing that future has always led us to have concentration limits on our lending," adds Stanton, whose great grandfather bought the bank, founded in 1902, in 1919.

 

Pete Stanton was 34 when he assumed the role of president, second youngest bank president ever in Spokane, second only to his father, Philip Stanton, who had become president of the bank in 1962 at age 31. As Phil Stanton turned the reins over to his son, he remained as chairman for most of the decade of the '90s.

 

It was that limit on "concentration" that allowed Washington Trust to avoid the disastrous rush into real estate and construction lending that felled a large number of banks, including three of its locally based competitors, although Stanton's bank found itself eating some bad loans.

 

At their worst, Washington Trust's non-performing assets "were in the high 4's," concedes Stanton, almost four times the current level of 1.24 percent. "But at its worst, we were about half of what most of our competitors were."

 

It was the soaring number of non-performing loans from zealous construction and real estate lending that brought competitors to their knees.

 

Sterling Savings Bank, publicly traded and about twice the size of Washington Trust, was faced with staggering totals of soured loans and was forced by the FDIC and state regulators to oust its top two executives, bring in new leadership and raise $300 million. It accomplished that and more and emerged from under the thumb of regulators to begin anew under aggressive and acquisition-minded fresh leadership.

 

American West, about half WTB's size, actually sought bankruptcy protection to avoid a takeover by regulators and re-emerged under the new ownership of SKBHC Holdings, LLC, a bank holding company backed by private equity groups.

 

And Bank of Whitman, although headquartered in Colfax and with assets of only about $580 million, but with a major presence in Spokane, became one of the state's failed banks when it was closed by state regulators in August of 2011. Its deposits and liabilities were assumed by Tacoma-based Columbia Bank.

 

Washington Trust actually took advantage of the turmoil other banks found themselves in when, in February of 2009, it acquired tiny Pinnacle Bank of Beaverton, which had been closed by Oregon bank regulators, to expand the Spokane bank's role in the Portland area.

 

Despite the re-emergence of its pre-crisis competitors under new leadership and financing, Washington Trust has held its own, seeing its net income, loan volume and lending in targeted sectors advance dramatically in the past two years.

 

And Stanton enthuses that "2012 is going to be a great year for us," noting that net income after two quarters was $11.9 million, compared with $16 million for all of 2011, which was up dramatically from the $9.1 million in all of 2010.

 

Yet caution remains the watchword for the bank, which boasts $4 billion in assets and a $3 billion loan portfolio generated from 40 offices and financial centers spread across parts of three states.

 

Stanton points out that "our loan loss reserve, compared to nonperforming loans, is 200 percent, while most banks have a reserve level under 100 percent."

 

"That's another of those things that comes about when you're private." He adds. "You have more interest in a fortress balance sheet than trying to bring everything possible to the bottom line."

 

"My dad was fond of saying that telling a bank it has too much capital is a little like telling a pilot he has too much runway," Joked Stanton.

 

I asked Stanton if Washington Trust was likely to be an acquirer as consolidation occurs, or become an acquisition.

 

"There for certain will be consolidation because of overcapacity," he replied. "And I think we're likely to be on the acquiring side of that for several reasons. One is because we've decided we wouldn't make very good hired help."

 

In fact, an acquisition binge wouldn't be the first time that has happened for Washington Trust, since in the '80s and '90s, its expansion came about largely through acquisition of successful banks in Central Washington and Northern Idaho. Plus Stanton created a private banking and commercial loan presence in Western Washington, where about a third of the bank's business is now done.

 

I asked him if there's a fifth generation waiting in the wings and he replied: "We have a couple of fifth generation kids working at the bank, but in a large complicated business there are no promises."

 

"We have never said that as a family we need to have a family member at the top, he said, adding, "There has been several times when we have had a non-family member running things," including current president and COO Jack Heath. But a Stanton has always been the chairman.

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Two years on, Leiweke remains admirer of Seattle sports teams and their fans

Although it's been more than two years since Tod Leiweke was lured to Tampa to turn around that city's hockey fortunes the way he restored the luster of the Seattle Seahawks, he remains an ardent admirer of the Seattle sports scene and its fans. He also sings the praises of his current community-minded owner, Jeff Vinik, the way he touted the community focus of his Seattle boss, Paul Allen.

 

While now far distant in terms of miles, he remains an up-close booster of the Seahawks, whose fortunes he turned around, and the MLS Seattle Sounders, whose franchise he helped create, during the seven years he set down roots in the Seattle area.

 

Tod Leiweke
Tod Leiweke

"I love the idea of the Sounders playing before more than 60,000 fans," Leiweke enthused about the MLS team's recent contest. "But think about the fact that in the space of five days, the Seattle area turned out 170,000 fans for the Sounders, Seahawks and the (University of Washington) Huskies. That's unbelievable for any region."

 

But Leiweke, a self-described "eternal optimist," declined to involve himself in the controversy over the proposed new sports arena in Seattle's SoDo District south of downtown, other than to praise Seattle-raised investor Chris Hansen who wants to build the facility on land he now owns.

 

I asked him, in a recent telephone conversation, whether Hansen's dream of attracting both NHL and NBA franchises for Seattle to play in his planned but not-yet-approved arena, was realistic.

 

"It could work, yes," he replied. "But for the market to absorb two teams won't be easy."

 

Almost from the day in early 2010 that Boston financier Jeffrey Vinik bought the NHL Tampa Bay Lightning and the sports and entertainment facility since renamed the Tampa Bay Times Forum and moved his family to Tampa, he went Leiweke hunting. He was rebuffed at first in his efforts to have Leiweke forsake Seattle and come to Florida as CEO the team and the entertainment arena.

 

But by the time Leiweke announced in July of 2010 that he had accepted the position as CEO of Vinik's Tampa Bay Sports & Entertainment, as well as its subsidiaries the Lightning and what was then the St. Pete Times Forum, he acknowledged that an ownership stake in the parent company had closed the deal.

 

The Lightning needed to rebuild a brand battered by three years without a postseason appearance and two years of mismanagement by the previous owners.

 

Coming to Tampa and the Lightning was a return for Leiweke to his first love, hockey. He had been president of the Minnesota Wild, which he built into a major NHL success, and before that was with the Vancouver Canucks, prior to his hiring to turn around the Seahawks.

 

When Allen had coaxed Leiweke then 50, to Seattle to turn around the fortunes of a once-proud franchise, the team was believed losing money, but in fact, no one knew for sure because until Leiweke arrived to bring business acumen and marketing savvy, there apparently were no budgets. As Leiweke once confided, "when they ran out of funds they just asked Paul for more."

 

When Leiweke arrived in Seattle in 2003, the season-ticket total was 30,000 and his first game as CEO wasn't a sellout. But by the time the Seahawks reached their only Super Bowl two seasons later, every game was a sellout and season-ticket holders now top 60,000.

 

This year was to bring two big visibility opportunities for Tampa Bay Sports & Entertainment. But storm clouds threatened both. A major renovation of Tampa Bay Times Forum was carried out to make it ready to host the Republican National Convention, which was threatened with cancellation but in the end was only delayed by Hurricane Isaac.

 

But since the bulk of convention week took place, the facility, ranked the nation's fourth busiest, got good visibility as backdrop for the political gathering.

 

"The arena wasn't ready when the new ownership arrived and so we funded a $50 million renovation of a publicly owned building," Leiweke said. "The building looks almost new now."

 

The other big visibility opportunity was for the Lightning, plans to mark the franchise's 20th anniversary, described by one observer this way: :The 2012-13 season was supposed to be marketing gold, with the celebration of Tampa Bay's 20th to be the thread that tied together an expected on-resurgence."

 

"This has to be frustrating, even for a self-described 'eternal optimist,'" I suggested to Leiweke.

 

"I don't really feel that way," he replied. "If you look up Jeff Vinik, you see a guy who is committed world class and getting a right-sized collective bargaining agreement is part of us getting that done."

"I have always believed that no one follows a pessimist," he added. "Optimistic leadership is the key to leading."

 

"We have all the stuff for the 20th planned," Leiweke said. "If we have to compress it, we will. The best thing we can do for this franchise is put it on a trajectory for the next 20 years."

 

In talking about Vinik's role in community, Leiweke is overboard in his enthusiasm for a unique charitable program the owner put in place for the Lightning. Vinik and his  wife honored a Community Hero at each of the Lightning's 41 regular season games, and awarded a $50,000 check to a non-profit charity of his or her choice, a total of more than $2 million year.  

 

"Even though we're in a work stoppage, he announced he's going to make the same $50,000 donations," Leiweke said. "I've been lucky to work for two pretty good owners."

 

Our first telephone conversation took place just after Leiweke had returned from a 90-minute outing on his paddleboard off Anna Maria Island, where the Leiweke family has a retreat about 60 miles from Tampa.

 

"I love it out there," Leiweke said of his paddleboarding, a sport he fell in love with after moving to Tampa Bay. "But something big was just surfacing and I told myself 'time to get home.'" That's the kind of challenge that doesn't occur when he pursues his other entertainment of "beer-league" hockey. 

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Mike Luis' book offers perspectives on Seattle's global role today, and tomorrow

Michael Luis, then in his early 30s and a vice president with the Greater Seattle Chamber of Commerce, recalls two incidents in the early 1990s that brought home to him that Seattle's star was rising rapidly on the national business stage.

.

The first was 20 years ago this month when he walked past the office of legendary Chamber President George Duff and saw a "huge blow-up of a Fortune magazine cover with the headline 'Best Cities for Business.'"

 

Mike Luis
Mike Luis

There was the Seattle skyline behind Boeing CEO Frank Shrontz, Microsoft CEO Bill Gates and Minoru Arakawa of Ninetendo of America, all pictured with then-Mayor Norm Rice. "I had glimpsed the holy grail for a public affairs staffer at a chamber of commerce," as Luis characterized it in is just-published Century 21 City.

 

The second incident, which he describes as "the only time in my life I felt like a rock star," was at a 1994 gathering of chambers of commerce staff members in Ft. Worth when "colleagues from around the country knew all about Seattle and more than a few of them asked me if I could find them a job there."

 

It's long past being news that, as the 20th Century wound down and this century began to unfold, Seattle had become a place where entrepreneurial success and innovation had put the region's stamp on the economy of not just the nation, but also the world.

 

But Luis, with his background of long-time involvement in public-policy from government to housing issues, has written a book that puts some interesting perspective on the evolution of the Seattle area's image. He delves into issues like why has Seattle been successful and what questions that haven't been asked might be important as the 21st century goes forward.

 

And in describing Seattle's evolution, he provides a detailed look at the larger question of how metropolitan areas turn themselves into the essential building blocks of the global economy.

 

Luis, a third-generation Seattle resident who resides with his wife and three children in the same Medina home where he and his father both grew up, has been involved for the past 25 years with the issues and leadership efforts that have impacted the growth and development of the Seattle area economy.

 

Elected this year to the Medina city council and now serving as Medina mayor, Luis has also been involved in projects with other cities in this country and Europe and has engaged in economic research involving regions around the world.

 

There's no shortage of books about Seattle since nearly two dozen titles relating to the city can be found on Amazon's site. They range from Bill Speidel's irreverent look at Seattle's founding wealth, Sons of the Profits, to Murray Morgan's Skid Road, Emmett Watsons' Digressions of a Native Son and Walt Crowley's look at Seattle in the '60s,Rites of Passage to works on architecture, hikes and history and trees and parks.

 

But Luis' focus on how Seattle became home to world-leading companies and a magnet for talent from every continent, along with a future spin on what that means, presents an economic look at Seattle's rise and emergence as a global city.

 

Luis, in a visit over lattes at his neighborhood coffee shop, suggested that this region needs to develop some data on why some smart people come here and stay, but also why some opt not to come here.

 

"Although we grow some of our own smart people for the global companies here, the hiring for those companies is global," he notes. "So getting people to want to come here in the future is a key and we are missing any notion of why people stay here."

 

"And we don't know why some who were sought by these global companies decided either not to come here, or not to stay here once they did come, and learning those things could be important to this region's continued competition against other superstar cities," he added. "A successful business will have a strategy to learn by contacting former customers to ask why they left and some similar concern about star talent that we either failed to get, or lost, might well be of value."

 

Luis argues in his book, as he has in policy studies and other discussions, that "in-migration of highly skilled people from elsewhere in the U.S. and abroad constitutes the single most important factor that will determine the future success of the Seattle economy."

 

Luis has allowed himself the luxury of wandering across a wide array of growth, globalization and why-here discussion points. But perhaps his most interesting discussion centered on the economic implications of climate change.

 

In noting that coastal areas, like Seattle, Portland and the Bay Area, "offer a climate-friendly alternative" with lower individual carbon footprint because of mild weather in both summer and winter, Luis sets the stage for some interesting future discussions.

 

"If West Coast metropolitan areas begin absorbing a larger share of the nation's growth, more Americans could lower their household carbon footprint while minimizing the impact on their lifestyles," Luis writes.

 

"I realize I will not win friends by suggesting that Seattle should invite more development and growth, but the truth is the Pacific Coast does offer a climate-friendly alternative" for future growth and development, adds Luis, who for 10 years ran The Housing Partnership, a think tank that explored market-rate housing affordability. "Yet West Coast areas have among the nation's most restrictive policies on housing development."

 

Offering a thought over latte that both of us realized isn't likely to find much traction in national political policies, Luis observed "Nationally, we should be encouraging people to live on the West Coast rather than the Sun Belt. To pat ourselves on the back about all our environmental virtues but, at the same time, restrict growth and push it to the Sun Belt smacks of hypocrisy."

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Washington lieutenant governor post once seen as an easy road into statewide office

The fact that the role of lieutenant governor in Washington was basically envisioned in the state constitution as a part-time position made it historically a job coveted by those who first made a name outside of politics, then sought an easy road into statewide office.

 

William Jennings (Wee) Coyle, a former football star and decorated war hero, started it all in 1920 when he parlayed his name familiarity into a landslide victory in the race for the state's second-highest elective office, hoping to become governor four years later.

 

Coyle was only 32, a handsome former UW star quarterback just back from the World War I battlefields when he strategized to use the lieutenant governor role to position himself to run for governor, a race he ran in 1924, but lost.

 

For most of the next seven decades, the office was held by those who had first risen to prominence beyond the political sphere.

 

That's now merely a part of political history in Washington since current Lt. Gov. Brad Owen, a Democrat and former state legislator from Shelton, has brought importance to the position beyond the constitutional ones of filling in for the governor and serving as presiding officer of the State Senate.

 

During the four terms since he was elected in 1996, Owen, who is running for re-election this year, has created for the office the role of a goodwill ambassador for the state in international trade and promotion of Washington products overseas. Plus he has led trade missions in parts of the world where the title "lieutenant governor" opens doors.

 

But the history of the position, next in line for the state's top elective office if anything happens to the governor, has provided some interesting political lore.

 

The fact the lieutenant governor is often described as "a heartbeat away from the governor's chair" has seemed to hold little importance for Washington voters, despite the fact that three of the first six lieutenant governors rose to the top state office because of the deaths of the governors.

 

Colorful Victor A. Meyers, a mustachioed maestro who earned a reputation as a big-name band leader, decided to seek the office as a Democrat in 1932. He won and was re-elected four times before being defeated in 1952 by Emmett Anderson, who had gained fame as the "Grand Exalted Ruler" of the Elks.

 

But Anderson made an unsuccessful run for governor in 1956 and John A. Cherberg, a failed football coach at the University of Washington, ran for the job as a Democrat and won, commencing a 32-year stand in the job that made him the longest tenured lieutenant governor ever in the nation.

 

The most interesting effort to boost a non-politician into the job came in 1968 when then-Gov. Dan Evans and his state Republican chairman, C. Montgomery (Gummie) Johnson, hatched a plan to oust Cherberg from the office, which by then he had held for 12 years.

 

They were seeking to boost the fortunes of Art Fletcher, a black city councilman from Pasco who had gathered some national prominence for development of a self-help program in the East Pasco ghetto.

 

Johnson knew that if a candidate like Fletcher, the state's first African-American to be touted for statewide office, was to have a chance, he had to first prove that he could beat a name candidate.

 

So Johnson talked popular and prominent hydroplane driver Bill Muncey into running for the post, once confiding off the record that Muncey had wanted to know what a lieutenant governor did. "Not a lot," Johnson had replied, with some honesty.

 

The political ploy worked to the extent that Fletcher, who a year later would earn a position in the Nixon Administration, won the GOP primary, but failed to dislodge Cherberg in the general election.

 

By the time he retired in 1988, Cherberg had built a reputation for integrity and even-handedness in his role as the State Senate's presiding officer. And with the election of Joel Pritchard, a respected Republican congressman and former legislator, the job took on a legitimacy and importance that Owen has continued to build on during his 16 years in the office.

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Clean-energy angel leader sees greater challenges ahead for cleantech investing

As the California Clean Energy Angel Fund that she launched five years ago winds down, Susan Preston's analysis of the opportunity to create a second "cleantech" fund has guided her to conclude "the bloom is off the rose of clean-energy investing."

 

"We have done a great deal of analysis into raising a second fund, and unfortunately, market timing is quite bad," said Preston, the former Seattle attorney who formed the first-of-its-kind angel fund for seed and start-up stage clean energy companies in August of 2007 and became its general partner. "The public and private markets are down on clean energy and the venture model itself is being questioned."

sue preston
Susan Preston CalCEF 

Byron McCann, co-chairman of the Northwest Energy Angels, agrees with Preston's assessment to the extent that "there isn't the excitement in the market that there was. All the fervor and bluster have faded to the point where we do deals that make sense on their own."

 

But McCann, whose angel group focuses on young "cleantech" companies in the Pacific Northwest, disagrees to the extent that he says he has seen "a robust deal flow, increased membership and angels interested in the clean-tech space."

Byron McCann
Byron McCann
Energy Angels 

In fact, his angel group, formed in 2006, had its best first half this year, by July investing more than $1 million in six companies, with the investments focused on energy efficiency, green-building technology and biomass power

 

Preston and McCann will be together on a panel Friday in Seattle at the Northwest Energy Angels Leadership Breakfast, where the topic of discussion will be Portland author Ron Pernick's new book, "Clean Tech Nation."

 

Pernick indicated his sense that "without a concerted energy policy, pieces of the energy puzzle may be in trouble," but added "states and cities are pushing for" clean-energy initiatives.

 

Pernick, Preston and McCann all agreed, in separate telephone conversations, that the erosion of venture-capital interest in clean-tech investments this year has brought challenges to the angel side of investing in the sector. Statistics indicate that venture funding in the clean-tech sector is off about 30 percent this year.

 

"Venture's turn off means venture funding no longer represents second-round financing for young companies, and IPOs are not likely, so that limits the exits and that limits the interest," Pernick said.

 

"Venture interest is down, but hasn't disappeared," said McCann. "A venture investment usually takes more money than investors anticipated and that's even more of a challenge in clean tech, which takes more money and more time, making it more complicated than what a lot of us are used to."

 

"So it's a challenge for angels, who have to decide what kind of a deal is this? Am I bridging to a venture round or is this an angel deal where we're going to grow the company," McCann said.

 

Preston, in her typically direct fashion, said "a lot of the cleantech companies were walking dead and VC's kept putting money into the walking dead. We all have these walking dead or zombies that we keep piling money into looking for some turnaround and instead the outcome is a turnoff."

 

Early this year, I had Preston keynote a gathering at the Coachella Valley Economic Partnership in Palm Desert and she was bullish about the sector and about the prospects for a new fund.

 

But what she found in the months that followed was the erosion of venture-capital interest and waning interest on the part of major institutional investors.

 

"All the individual investors wanted to do another fund and we had positive feedback from all the limited partners," Preston explained. "But the institutional investors were going to funds focused on later-stage investing and fewer were looking at cleantech."

 

I asked her if there was any cleantech area for which she was still bullish and she said "I see a lot of opportunity in energy efficiency," noting that one company in which her fund invested is Berkeley-based Alphabet Energy, which captures waste heat and turns it into energy.

 

Preston helped form the Seattle women's angel network, Seraph, in the late '90s and was a Kauffman Foundation entrepreneur in residence in Seattle. She was retained by the non-profit California Clean Energy Fund (CalCEF) six years ago to develop the model for a seed-stage clean energy fund.

 

She moved to the Bay Area to manage the $11 million boutique fund, in which the non-profit CalCEF was the key funding source, supported by a group of individual investors.

 

Preston, McCann and Pernick all agreed that the predictability that attracts investors requires a national energy policy.

 

"This country has a choice to make relating to energy and right now clean-energy has been villanized by partisan politics," said Pernick. "All energy industries from oil, coal and nuclear to renewable and clean require government support, both regulatory and financial."

 

McCann scored "the vaguery of energy policies" and Preston suggested that "what would really help is a clean-energy act," noting that "regulation is essential in our industry." But she added, "My hope of federal legislation is very low."

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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.

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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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