Log in
updated 2:54 PM CDT, Jul 28, 2018

FlynnsHarp logo 042016

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

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

 
 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

    

Continue reading
  1467 Hits
  0 Comments
1467 Hits
0 Comments

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

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

Continue reading
  1504 Hits
  0 Comments
1504 Hits
0 Comments

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

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

 

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

 

 
 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

Continue reading
  1435 Hits
  0 Comments
1435 Hits
0 Comments

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

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

 
 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

Continue reading
  1167 Hits
  0 Comments
1167 Hits
0 Comments

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

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

              __________________  

 

        Then-Gov. Mike Lowry recalls  

        legislative solution to fund what

               became Safeco Field 

                         (See sidebar below)  

               ___________________ 

 

 

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

 
 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

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


Mike Lowry recalls '95 legislative pact that

cemented franchise with stadium funding 

 

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


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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Continue reading
  1255 Hits
  0 Comments
1255 Hits
0 Comments

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

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

 

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

 

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

  

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

 

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

 
 

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

 

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

 

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

 

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

 

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

 

So here's the firm's pitch:

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Continue reading
  1181 Hits
  0 Comments
1181 Hits
0 Comments

Reflections on a quarter century of Business Hall of Fame selections

When the Puget Sound Business Hall of Fame was created 25 years ago to recognize business leaders from the past who had contributed to the economic growth of the region, some quietly expressed concern that the event might soon run out of past leaders to honor.

 

A quarter century on, as Junior Achievement of Washington and Puget Sound Business Journal prepare to induct four new laureates into the Hall of Fame, it's become clear that the region had no shortage of business leaders to celebrate.

 

In fact, while the event retains the name "Puget Sound," it has grown in the past couple of years to include Eastern Washington business leaders among those eligible for selection.

 

Thus at a time when the quest for heroes in business is perhaps more important than it has ever been, the number of business leaders chosen over the years to be honored at this unique annual event passes 100 Thursday evening when the following four laureates are inducted:

 

 Jim Douglas, who created Northgate as the nation's first shopping center designed as a mall, helped launch Seafair as part of the celebration of Seattle's 100th anniversary and and became the "pitchman" for the vision that became the Space Needle, symbol of Century 21.

 

Edie Hilliard, A radio pioneer as one of the first female general managers of a major market station, who then built one of the nation's largest independent radio networks.

 

Budd Gould, founder and principal owner, and still president, of Anthony's Restaurants, who brought the essence of waterfront dining to communities from Bellingham to Spokane and Richland to Bend.

 

William Ruckelshaus, perhaps the nation's leading environmental figure of the past half century. who served two presidents as administrator of the EPA and also fashioned a career in the private sector as CEO of Browning Ferris Industries and senior vice president of Weyerhaeuser Co. He now is strategic director at Madrona Venture Group.

 

It was the late Jack Ehrig, Seattle ad-agency head and a key supporter of Junior Achievement, who in 1986 approached me, as publisher of PSBJ, about creating a local event that would parallel the national Business Hall of Fame event for which FORTUNE Magazine was the partner of JA.

 

FORTUNE chose the laureates for JA to honor in those years, producing a special insert in the magazine to introduce them to its readers and JA honored the national laureates at a prestigious annual banquet that cities competed for because it attracted some of the biggest names in business nationally.

 

In a similar manner, laureate selection became the role for PSBJ and JA produced the first banquet to honor those selected in 1987.

 

FORTUNE's rule was that honorees had to be retired from day-to-day involvement with the companies where they had built their reputations. That sounded to me like a good way to ensure there wouldn't be any lobbying on behalf of a currently active CEO so that became our rule as well. That also has changed a few years ago with the induction of Eastside business leader and developer Kemper Freeman, still very much active in his business.

 

From the outset, I populated the selection committee with people who were not only business icons in their own right, but also understood far more about business history than I did. Thus each annual selection gathering became a lesson in local business lore.

 

And it was the insight of those members of the selection committee, including from the outset longtime community and business leader Jim Ellis, who personally knew more than half a century worth of the prospects, that brought forward well-known and not-so-well-known names from the past.

 

Because of the prominence of JA Seattle in the national organization, particularly because we had built what many viewed as the best local hall of fame program in JA, it became logical for the Seattle JA leadership to seek to have the national event in Seattle.

 

That finally occurred in 1992, which happened to be the year that Steve Jobs, then between jobs since he had been edged out of Apple a few years earlier, was a laureate. But Jobs, with typical unpredictability, apparently decided he didn't care to head up to Seattle from Silicon Valley for the event and the word spread the day of the banquet that he wouldn't be there.

 

But by late afternoon, to the relief of all, it was learned that Jobs had changed his mind and would, in fact, be on hand to accept his award. Only a few insiders were aware that FORTUNE publisher Jim Hayes, a high-visibility figure at the national banquet, had telephone Jobs to advise him that if he failed to show up, his name would never again appear in the magazine.

 

The business leaders of JA Washington in 2008, led by longtime venture capital executive Woody Howse and wine-industry leader Michael Towers, began building a case for the return of the national event to Seattle.

 

But it soon became clear, as the Great Recession got its grip on the nation's financial throat, that the world had changed. National gatherings of business leaders for something like a Hall of Fame banquet, and the significant corporate financial support necessary to carry it off, soon seemed unrealistic. None has been held since then.

 

But the JA Puget Sound Business Hall of Fame remains a viable and important reminder each year of the role successful business leaders can play in representing role models for the business leaders of today and the young people of JA who will be the business leaders of tomorrow.

 

Continue reading
  1173 Hits
  0 Comments
1173 Hits
0 Comments

A look back over presidential primaries suggests some benefits in long campaigns

Concern among Republicans that the prolonged battle for their party's presidential nomination could have a lasting negative impact on the eventual nominee is intriguing given how struggles for the nominations of both parties used to unfold.

 

There is some understandable hand-wringing among GOP leaders who would like to see a wrap on the nomination battle so a presumptive nominee can begin to focus on campaigning against the president. But a look back would suggest it's the nature rather than the length of nomination battles in either party that wears on the voters.

 

And a student of history might reflect that something has been missing in recent presidential-election years. The process of presidential-preference primaries, born in Oregon in 1910 and originally viewed as empowering the people to choose their parties' candidates, has become a boring march to the inevitable for the past generation.

 

But 2012 may provide a revisiting of those campaigns in which the trail to the nomination led through Oregon in late May and on to the primaries' climax in California in early June.

 

It's the first time in 20 years that a June date in California and the quest for its huge pot of delegate gold has been possible. In 1996 California decided that its primary had become anti-climactic and moved it ahead to March so it could catch the heat of action.

 

Last summer, pronouncing that the experiment for California to compete for election dollars, high profile candidate appearances and perhaps also an increase in political clout had failed, Gov. Jerry Brown signed legislation to restore the state's primary to June.

 

So ironically, the decision may have put California and its 172 delegates back in the eye of the campaign hurricane, a week after Texas bestows its 155 delegates, and the two, plus Oregon and a handful of other states in late May, could explain why all of the four candidates insist they are staying in the race.

 

An ironic reflection on past presidential-nomination contests is provided by the one in which Mitt Romney's father was a vital early figure. I haven't seen as much recollection as I thought there might be on the fact that Gov. George Romney wasn't only a hopeful for the 1968 GOP nomination, but had been viewed as almost the pre-emptive favorite heading into that year.

 

And had he not made the disastrous slip of explaining his change of heart to become an opponent of the Vietnam War as having been "brainwashed on Vietnam," Mitt Romney might now be running as part of a family political dynasty, ala the names Kennedy or Bush. And it might have been a campaign in which the issue of a Mormon in the White House had long ago been resolved.

 

The '68 campaign was also one in which, as I reflected several years ago, prominent figures from Washington state played key roles, a campaign that, as a young political writer, I had the opportunity to cover.

 

There were still three nomination hopefuls in the Democratic-nomination race by the time of that '68 Oregon Primary. And there would still have been three by the disastrous Democratic convention in Chicago had Robert Kennedy not been assassinated a week after Oregon, moments after acknowledging victory in the California primary.

 

Everest-conqueror Jim Whittaker of Seattle was an ever-present figure by Kennedy's side until the fateful moment in a hallway of the Ambassador Hotel in Los Angeles when Sirhan Sirhan shot Kennedy.

 

Washington's former governor and U.S. Senator Dan Evans still well remembers the GOP convention in Miami and his role as the keynote speaker whose support was sought by both eventual nominee Richard Nixon and New York Gov. Nelson Rockefeller, who still had a chance at convention time. Nixon even suggested the vice presidency might accompany an endorsement from Evans, who chose instead to endorse Rockefeller.

 

The Republican primary effort that year, despite enduring up to the convention, as did the Democrats', was a much more gentlemanly affair than the bitterly divisive, Vietnam-fueled Democratic struggle. And most students of history would suggest that campaign  bitterness had an influence on the fact Richard Nixon won in November.

 

Four years later, the decision about the Democratic nominee also stretched to the Oregon and California primaries. Eventual Democratic nominee Sen. George McGovern beat former Vice President Hubert Humphrey by 44 percent to 39 percent in California to assure himself the nomination.

 

Washington Sen. Henry M. Jackson was a distant third in '72 but didn't drop out until early May. And he was a more serious challenger in'76 in what was still a four-man race for the Democratic nomination when he dropped out May 1 after losing the Pennsylvania primary to eventual nominee, then president, Jimmy Carter.

 

As those and other campaigns make clear, there's nothing inherently undesirable about a prolonged primary campaign that exposes the candidates to an electorate that deserves the opportunity to get to know as much as possible about the person who could wind up as their president.

 

If the candidates' comments and pronouncements make their shortcomings as presidential timber obvious, that's beneficial to the voters, if not necessarily to their party. It's only when the unending barrage of negativity from opponents paints a picture of shortcomings that may not even exist that a prolonged campaign does damage to the political process.

 

Continue reading
  1322 Hits
  0 Comments
1322 Hits
0 Comments

Veteran real estate exec John Torrance unveils arena, convention center plan

John Torrance, whose vision for a retractable-roof stadium in Seattle led to the eventual construction of Safeco Field, has come up with a detailed plan for construction of a new arena and convention center on the Seattle waterfront.

 

Torrance, a senior vice president for CBRE, the commercial real estate giant, has guided creation of a plan that would turn 88 acres of Port of Seattle's Terminal 46 into a convention center and an arena, with provisions for a new cruiseship terminal and waterfront park.  The arena could house the NBA and NHL teams that Seattle covets and the convention center would be designed to catapult Seattle up the list of convention cities.

 

Torrance is unveiling his idea as an advisory panel prepares to deliver a report to Seattle City Council and King County Council on a plan by Chris Hansen, San Francisco hedge-fund manager and former Seattleite, to build an arena on property he has acquired south of Safeco Field.

 

 
 

And it also comes in the wake of word last week that the port is suffering a major loss of business to Port of Tacoma in July when three shipping lines, representing 20 percent of Port of Seattle business, relocate south.

 

Torrance suggests that the shift of major port business may help make the case that development rather than maritime represents the Seattle waterfront activity of the future. He hasn't yet discussed that with port officials or commissioners, on whom pressures to maintain the maritime focus come from longshoremen who would face the loss of jobs and traditionalists who wish to retain the working-waterfront character.

 

While Torrance's plan may seem like an eleventh-hour idea given the discussions of recent weeks about the proposal Hansen recently unveiled and has been vetting,  it's actually something he began investigating about two years ago, he says. And he's worked with architects and planners to put together detailed drawings in recent months.

 

He's already had early discussions with city and county officials and port representatives

and hopes to make contact with Hansen as well to outline the plan and seek to gather support.

 

"The Seattle area has twin needs to help ensure its long-term economic vitality. One is an arena that has the capacity to attract NBA and NHL franchises and the other is a convention center with the capacity to boost Seattle into major-league convention ranks," Torrance offered.

 

"Hansen deserves credit for coming up with a possible plan to address the arena issue but what we're hoping to do is address both arena and convention center on a potentially world-class site, without any risk of taxpayer obligation.

 

Ironically, the plan details he will be unveiling for the first time late this month before Seattle's 101 Club comes as the city prepares to celebrate the 50th anniversary of the Seattle World's Fair whose U.S. Pavilion became the arena that his father intended would be the venue to lure an NHL franchise.

 

His father, the late Torchy Torrance, knew the NHL required a 15,000-seat arena for any hoped-for franchise, and thought the new arena that would be left after Century 21 concluded would meet that requirement. But to the horror of the senior Torrance and NHL proponents, the completed facility seated 12,200.

 

It was the younger Torrance, a longtime leader in the commercial real estate industry, who first proposed a retractable-roof stadium for Seattle in the early '90s after visiting Toronto and conferring with officials there about that city's Skydome.

 

I remember when he first mentioned to me back in 1993 the idea of the retractable-roof stadium to replace the enclosed Kingdome, I was among those who muttered a quiet "good luck."

 

But Torrance is a dreamer with follow through and influence. He soon came up with the name "StarDome" for the retractable-roof concept and that helped provide a vision and thus momentum, and believers. Those included owners of the Seattle Mariners, who by the mid-90s realized the Kingdome would not be sufficient as a baseball facility into the future and began pressing elected officials for the new stadium..

 

Torrance's Terminal 46 plan may catch the interest of Seattle and King County elected officials edgy about any assurances from Hansen of taxpayer safeguards into the future. The one certainty for those public officials is that taxpayers in the county have made it clear they don't want to pay for an arena or a convention center so elected officials know not to go there.

 

While Torrance's idea for the project and in-depth discussions in Vancouver, Boston and San Diego were at his own initiative, he would undoubtedly have the resources of CBRE, a national player that is the largest commercial real estate firm in the state, to support his efforts.

 

"We hope we'd attract financing and CBE has access to a lot of clients who could wind up involved in a program to develop the site," Torrance adds.

 

Development that could create thousands of jobs and bring in millions of dollars in tourism revenue, plus open the door to two major league sports franchises, rather than continued maritime use of the pier, should be a preferred option, Torrance says.

 

While the idea for the project and in-depth discussions in Vancouver, Boston and San Diego were at his own initiative, Torrance would undoubtedly have the resources of CBRE, a national player that is the largest commercial real estate firm in the state, to support his efforts.

 

"We hope we'd attract financing and CBE has access to a lot of clients who could wind up involved in a program to develop the site," Torrance adds.

 

He says he's seeking to have conversations with Hansen, who has already invested in the site he's proposing for an arena, in the hope of "moving him over to the site we're proposing, since our development idea would add enough value to the property he's buying to allow him to recover his investment."

 

Torrance estimates that the port could generate up to $25 million annually from leasing activity and hotel developments, based on what's generated for the Port of San Diego. "That's about 10 times what the container business generates," he says.

 

As his original retractable-roof idea and the stadium that came about saved major league baseball for Seattle, his newest concept patterned after developments in Vancouver, San Diego and Boston could turn out to be the most workable plan for new hockey and basketball franchises. And along with that a dramatic new major convention facility.

 

Continue reading
  1604 Hits
  0 Comments
1604 Hits
0 Comments

Early lessons helped shape Ayer's style in guiding Alaska's through turbulent times

If a company deserve to be judged by the leader it keeps and leaders by the companies they build, then Alaska Air Group and its chairman and CEO Bill Ayer should be judged well.

 

Ayer, 57, who steered the company for the past decade through an increasingly successful flight while for the rest of the "legacy" airlines the 10 years proved an image-scaring and scary ride, has announced that he is officially turning over the CEO reins to Alaska president Brad Tilden.

 
 

Ayer, who has spent more than 30 years in the industry since launching his own little start-up airline in his mid-20s, offered some reflections this week on his career from entrepreneur through leadership of the nation's seventh largest airline. And those reflections by its leader, shared in an e-mail exchange of questions and answers, indicate why Alaska has remained a favorite of investors, its customers and its communities.

 

Two of Ayer's convictions are that you learn from, rather than make fun of, your competitors and that a small-company feel makes it easier for employees to work together and be open to change, no matter how big the company.

 

The former is perhaps best exemplified by an email exchange we had several years ago after Ryanair CEO Michael O'Leary suggested his lowest-cost Irish airline (frequently also referred to as the cheapest airline) might consider charging for use of airborne restrooms.

 

I suggested to Ayer that it might be time to revive the amusing television ads from years ago that showed the travails of a passenger who needs a 25-cent fee for entry to his plane's restroom and proceeds to try to obtain the quarter for an increasingly high price from passengers on the plane.

 

"You never want to make fun of competitors' actions because you never know what steps you might be required to take yourself," he e-mailed back.

 

I asked him this week about that exchange and his reluctance to criticize competitors.

 

"Sometimes what seems like a lousy idea from a competitor turns out to be pretty

Smart," he replied. "If we have a 'we're better than you' attitude, we won't take the time to evaluate it.

 

"Our focus has been on controlling what we can control and not simply hoping that something bad happens to a competitor to improve our situation," Ayer added. "We were surprised at how controllable our business was once we started to really focus on what we could do differently."

 

The fact that Ayer was an entrepreneur, then executive of a fast-growing start-up airline before joining Alaska in 1995 as vice president of marketing and planning has undoubtedly guided his belief in the need to retain a small-company feel.

 

He was in his mid-20s, a regional manager for Piper Aircraft Co., when he launched Air Olympia, a small commuter serving several Washington cities that operated for two years.

 

He jokes that "we didn't go broke, but probably would have if we had stuck with it."

 

Instead, he was lured to close up his little carrier and join the late Milt Kuolt and his team at the fledgling Horizon in 1982, the relationship that eventually led to Ayer's role atop the parent company of both airlines. Alaska acquired Horizon in 1987, along with Ayer.

 

Bruce McCaw, a Kuolt confidante and one of his key advisors, recalls that "Milt was quite impressed with Ayer, even though he was very young at the time. He knew Bill was smart and had a lot of good ideas."

 

"I liked Bill from the moment we met and we worked well together," McCaw recalled.

 

Ayer remembers Air Olympia as "a great place to start, although it felt like a leap into the

deep end of the pool. That experience convinced me that I had a passion for

this business which I should pursue."

 

He recalls the days with Horizon as "difficult. We were always worried about having enough cash to make payroll. But (it) shaped our conservative approach."

 

The shaping of that financially conservative approach undoubtedly helped guide Ayer's decisions as he steered Alaska basically unscathed through a decade of airline-industry turbulence that saw all of its legacy competitors go through bankruptcy.

 

So now Ayer turns the reins over to Tilden, expressing the conviction that "a CEO can overstay his or her welcome" and "there should be different leaders for different times."

 

He and the Alaska board, which Ayer says he's had involved over the past couple of years in the planning of the transition to Tilden, view him as "exactly the right leader to take us to the next level." The skills that Ayer and others see in Tilden may indicate that a company is also judged by the leadership-successor it picks.

Continue reading
  1260 Hits
  0 Comments
1260 Hits
0 Comments

Healthcare uncertainties retard efforts to expand cancer 'compassionate care'

The uncertain future course of national health care is retarding fledgling efforts to expand what's known as "compassionate care" for cancer patients as hospitals in Seattle and elsewhere are proving reluctant to launch new cancer programs that drain rather than enhance revenue.

 

Matt Loscalzo, who helped develop the concept of "psychosocial" programs as the underpinning of "compassionate care" for cancer patients and their families, laments that major hospitals around the country have been reluctant to incorporate it into their treatment programs.

 

But Loscalzo. executive director of the Department of Supportive Care Medicine at the respected City of Hope in Duarte, east of Los Angeles, is careful not to criticize the major hospitals, including those with highly touted cancer-care programs, for failing to move toward psychosocial treatment programs.

 

"All hospitals and institutions are holding their collective breath over the challenges they face," Loscalzo says. "These hospitals represent a lot of good people under a lot of stress. First they have to keep the lights on, then attract good people, then meet a tremendous amount of regulation, insurance challenges and Medicare cutbacks."

 

Loscalzo is a pioneer nationally in the development of  psychosocial programs and he has guided development of a touchscreen tablet that allows cancer patients to deal with the mental and emotional issues beyond their medical problems.

 

The device, called SupportScreen, is a cornerstone of City of Hope's leading-edge focus on compassionate care. The device, which is programmed specifically for each patient, is designed to electronically record distress levels, through answers on touchpads, by asking cancer patients to identify and rate their practical, social and emotional problems along with medical information.

 

Patients reveal concerns that might otherwise go unrecognized, such as mental health imbalances, stresses over personal finances or insurance coverage concerns, or suicidal thoughts.  The information, which the patient knows will be shared with the entire healthcare team, allows that team to immediately provide integrated treatments and crises interventions.

 

And because of the efforts of a philanthropic couple who maintain residences in both Los Angeles and Seattle, visibility for SupportScreen will be coming to Seattle and, with it, a heightened awareness of what compassionate care actually means to cancer patients' outcomes.

 

Loscalzo's other role at City of Hope is as administrative director of the Sheri and Les Biller Patient and Family Resource Center, created nearly four years ago through the vision and financial support of the Billers to create an international model of compassionate care. His psychosocial program, including, the touchscreen tablet, is a major part of the Biller Center's unique offerings.

 

The reach and influence of the Billers has given Loscalzo's efforts a major boost. Sheri is chair of the City of Hope board and Les is retired vice chair of Wells Fargo and current board chair for Spokane-based Sterling Savings.

 

Loscalzo's goal is to move the psychosocial program concept, complete with the SupportScreen, into the mainstream of cancer care, expanding its reach well beyond the handful of cancer hospitals where the program is now being introduced. The only other one in the West, in addition to the City of Hope, is the Huntsman Cancer Institute in Salt Lake City, which Loscalzo describes as "a fairly new center that is really trying to get is program up and running."

 

"The number of cancer survivors nationally is nearing 12 million and for them, psychosocial is going to be a part of the rest of their lives," Loscalzo says. "There are humanistic and financial costs for ignoring the psychosocial needs of patients and their families, as well as of cancer survivors."

 

In the nearly four years since their philanthropy allowed the Biller Center to open, the Billers have made the City of Hope's focus on compassionate care, including the SupportScreen, their cause.

 

It was because of a friendship with the Billers and a personal interest in the cancer initiatives there that I was able to get a first-hand look late last year at the programs of City of Hope and its almost unique focus on compassionate care. thus I had a chance to meet key players there, including Dr. Michael Friedman, who is president an CEO, and Loscalzo.

 

Because the Billers are givers, they share the willingness of all practiced philanthropists to also be askers, tapping friends, colleagues and associates to support their cause with personal involvement and financial support.

 

For three years, Sheri Biller's "ask" has been on behalf of a team of what she calls "Resource Racers" in an all-women's half marathon in New York City to raise money to augment the basic support for the Biller Center at City of Hope that's provided by the Biller Family Foundation.

 

This year, the call has gone out from both Sheri and Les Biller for "generous" contributions to her Resource Racers, including men as participants for the first time, for the Rock 'n Roll Marathon/Half Marathon in Seattle in late June. The donations this year will go specifically to expand the use and the number of SupportScreens available to City of Hope's cancer patients.

 

That may well bring visibility for the first time to cancer-care supporters in the Northwest, who may legitimately ask "why not here," given the cancer-care reputations of major hospitals in Seattle and Portland.

 

Meanwhile, Loscalzo's vision is to develop a touchscreen specifically aimed at children suffering from cancer. But that may be a ways off.

 

"We want to incorporate things like animation into the software of the SupportScreens we develop for youngsters," Loscalzo says. "A rough estimate is that we'll need about $1 million for development of those children's screens."

Continue reading
  1237 Hits
  0 Comments
1237 Hits
0 Comments

Key expansion steps planned by Social Venture Partners this year

Social Venture Partners (SVP), the Seattle-based organization that describes itself as the world's largest network of engaged philanthropists, approaches its 15th anniversary with a couple of major initiatives about to unfold. One will extend the organization's international footprint and the other will enhance its impact nationally. 

 

First is an expansion into India next fall and second is creation of a "mezzanine fund" that will offer more philanthropic cooperation among member cities, allowing them to function much the way angel investors do in syndicating deals. Beneficiaries of that fund will be philanthropic organizations "with great models" who will be able to expand their reach into multiple cities.

 
 

Paul Shoemaker, who has guided SVP since 1998 when founder Paul Brainard convinced him to leave his position at Microsoft as group manager for worldwide operations to become SVP's first president, says the organization is coming off its best year for new members since its expansion year of 2000.

 

Shoemaker, now referred to on his business card and SVP website simply as Executive Connector, might suggest that the initiatives to be undertaken this year could expand the numbers dramatically.

 

The move into India, which will launch in Bangalore later this year, is driven both by the fact that "there are some basic forms of philanthropy there already" as well as by the large number of citizens from India who are drawn to the high-tech companies located in the Seattle area. Many could be attracted to SVP membership by the India initiative.

 

"There are so many connections between India and Seattle," Shoemaker observed. "And we're confident we've found the leaders there to make us confident of success, even if SVP will look different than it does here.

 

"It will undoubtedly be a different monetary level for members," he said, "and the social system in India is different but we'll bring the same core principles."

 

With respect to SVP's creation of its mezzanine fund, it will operate somewhat like syndication so that SVP cities into which a non-profit would expand will participate in the financial and personal support for that non-profit.

 

"What we are creating is a fund from cities across the system evaluating the strongest local grantees that have the interest and the best opportunity to expand into multiple cities," says Shoemaker. He explained it as "helping nonprofits with great models replicate and reach next level funding opportunities."

 

"They might now be operating in one or two cities and want to grow into three or five cities," he said.

 

The applicants for support from the mezzanine fund are currently being evaluated and those selected as grantees for the new program will be announced in the next month or so, Shoemaker said.

 

Shoemaker, who was named last August as one of the "Top 50 Most Influential People in the Non-Profit Sector" by The NonProfit Times, recalls that expansion into other cities helped spur the initial growth to what is now about 2,100 members around the country, plus Canada and Japan.

 

It was in 2000 that SVP, then only beginning to expand beyond Seattle, had its first surge of young partners. Many of them were successful techies, answering Brainard's and Shoemaker's call to get involved in a new model for philanthropic focus on creating a better non-profit sector.

 

Each agreed to donate $5,000 a year to SVP and become personally involved with one or more non-profits. The amount is now $6,000 a year.

 

The first cities into which SVP expanded were Phoenix, Vancouver and Dallas. Since then, the organization has expanded only into cities that sought to become SVP locations, but that is another thing that's changing this year.

 

"Up to this point we've been reactive, waiting until someone from a community contacted us to express interest in forming a group," Shoemaker said. "Now we're actively pursuing cities where we should be represented and most likely locations this year, in addition to Bangalore, are Austin and Raleigh/Durham."

 

There are currently 25 venture-partner cities in which SVP operates in the U.S., Canada and Japan. As of last January, the SVP network had contributed nearly $41 million in grant investments to 500 nonprofit organizations and provided tens of thousands of volunteer hours in service and counsel.

 

One of the more interesting developments in the evolution of SVP is the number of partners forsaking the private sector and stepping into leadership roles in the social and public sectors. In a large sense they are following the model established by founder and desktop publishing creator Paul Brainard and Shoemaker himself.

 

They include:

 

-- Lisa Chin, a former Amazon executive who stepped out of the private sector to become the first executive director of Year Up Seattle - helping urban young adults reach their full professional potential.

 

--Tim Schottman, who two years ago left behind a 17-year career guiding Starbucks international development to become chief global officer at Sightlife, building a network of eye banks to support corneal transplants with the lofty goal of eliminating blindness for 10 million people in the developing world.

 

--Peter Bladin, formerly of Microsoft, who headed up Grameen Foundation's technology Center for 10 years.

 

Shoemaker says "this is definitely a trend we are fostering, hopefully leading it, because it is significant for bringing people with key organization-building skills from the private sector into the non-profit world."

Continue reading
  1192 Hits
  0 Comments
1192 Hits
0 Comments

Role as Harlequin heroine won't be career step for Helen McGovern

Helen McGovern, who three years ago put asidea career as elected official and prominent real estate executive to become the head of a non-profit engaged in fighting hunger in Pierce County, chuckles at the idea that a third career as Harlequin Heroine might await her.

 

While it may not actually turn into a "career" with the publishing house best known for its pervasive romance novels, McGovern and her role as what Harlequin describes as "making a positive difference in the lives of others" will be the inspiration for an ebook fictional short story.

 
 

McGovern received word a few days ago that she was one of three women voted winners in an online and Facebook competition to determine recipients of Harlequin's "More Than Words" award.

 

Seems that Harlequin, as one of the world's leading publishers of books for women, turns out more than romance novels. And the Toronto-based publishing house has as an aspect of its social corporate responsibility an annual award aimed at "celebrating the lives of women who make a positive difference in the lives of others."

 

McGovern, a woman from Ohio and another from Toronto were voted winners by Harlequin readers, 111,000 participating online and 7,800 via Facebook, and each will receive $15,000 for their cause and be "the inspiration for three fictional short stories," according to Harlequin. It was the first time in the eight years of the event that readers, rather than staff members, did the selecting.

 

The short stories on the three, written by Harlequin authors who are donating their time to talk with the women and gain inspiration to create stories based on their experiences and contributions, will be available in 2013 in ebook format and can be downloaded then at no cost.

 

As a Harlequin spokeswoman explained, when I called her in Toronto, the contest and awards "are to publicize to the women who read our books the causes of women worthy of being publicized."

 

Forsaking the corporate world and elective office for the dramatically more modest trappings as executive director of Pierce County's Emergency Food Network was a move McGovern had long anticipated as a focus on "a more purposeful life" when she made the move in April of 2009.

 

As a result of a column I did on her a year ago, McGovern was invited to speak before Seattle Rotary, which she did last week. And leading into her comments about guiding the nonprofit that distributes 1.3 million pounds of food each year to Pierce County food banks, she disclosed, with a chuckle, that she had received the Harlequin honor

 

But the jokes about being a romance-novel heroine, which is possible but not really the likely outcome of the short story she'll have written, didn't change the fact of this being an important recognition, following one a year ago with a Second Half Champions award.

 

That's was statewide award presented each year by Wells Fargo Advisors, along with ArtsFund and Seattle Community Colleges, to individuals who have "completely repurposed the second half of their lives to make significant contributions" after the age of 50.

 

It was after finishing her "most financially successful year ever" at Colliers and with her decision not to seek re-election after eight years on the Lakewood city council, including two years as deputy mayor there, that she decided the time had come for her move to a non-profit career.

 

So she learned of the opening at Emergency Food Network, set up a meeting with the board, and when she was asked if there was anything she would like them to know about her, she calls saying: "Yes. This was meant to be. I was meant to have this job."

 

And the manner in which she's fulfilling the nonprofit role she sought is obviously drawing considerable recognition.

Continue reading
  1148 Hits
  0 Comments
1148 Hits
0 Comments

Stuart Anderson admits challenges in his comeback effort at age 89

Stuart Anderson, successful cattle rancher, restaurateur, author, television personality and entrepreneur, is finding that a comeback at the age of 89 is turning out to be more challenging than he had expected. It's not because of age so much as it is the economy and changes in the restaurant business.

 

The man who built Stuart Anderson's Black Angus from a single location near downtown Seattle in 1964 into a chain of 110 steakhouse restaurants across 19 states before selling the chain in the late 1980s was lured out of retirement by a shuttered Black Angus in Rancho Mirage, CA.

 

The appeal of reopening and rebranding a restaurant that he had originally opened in 1980 when his California expansion of Black Angus/Cattle Company restaurants was in full swing proved too much of a temptation, despite the protestations of his wife, Helen, who recalls saying: "Over my dead body."

 
 

 

"It was tough to see that restaurant go away, along with a crew we had come to know," Anderson says of his reaction when he learned in early 2009 that the restaurant he and his wife frequented had closed

 

"We thought we could help the economy by creating some jobs there," Anderson says. "And I thought Helen and I had the experience needed to reopen the restaurant."

 

But he concedes it has been more difficult than they had anticipated, originally convinced that "with my 60 years of experience, I felt we could overcome all the difficulties posed by this economy. But it's amazing how much you forget at the age of 89."

 

Helen, who has been Anderson's partner and spouse for almost 40 years and describes his comeback from a stroke three years ago as "miraculous," admits "we knew it would be costly, but it has been more of a financial drain than we thought it would be."

 

Anderson says "the restaurant business is more competitive and demanding than it used to be, with government regulations and additional costs we were unfamiliar with. It has been challenging," he admitted.

 

Many of those rooting for him to succeed again will be those from his home state. Not just Seattle, where the chain was headquartered as one of the most respected in America,  but also Spokane, where Black Angus number three became the most successful in the chain, and Ellensburg where his 2,400-acre ranch sprawled along Interstate 90. It was the ranch with its black angus herd, as well as the signature mustache and cowboy hat, that  made him the icon of cowboy country.

 

Over the course of nearly a quarter century, Anderson created a restaurant company with 10,000 employees and annual revenue of $260 million.

 

Shortly before Anderson's retirement in the late '80s with the sale of the company, industry publication Restaurants & Institutions, in a national survey, judged his chain the nation's best full-service restaurants three years out of four. And USA Today judged the chain best in the nation in the category of casual dinner.

 

He tried his hand as an author when he produced Here's the Beef! My Story of Beef, a book he describes as "fun and informative" that sold thousands of copies in the Black Angus restaurants. The book was a follow on to the highly popular McDonald's commercial in which an elderly lady asks: "Where's the Beef?"

 

And his stint as a television personality was as spokesperson for Seattle's Senior Housing Assistance Group's low-income senior housing developments.

 

Part of Anderson's concern for the amount of time and effort he and Helen are having to invest in their restaurateur entrepreneurial encore is that she doesn't have as much time as she'd like for her commitment to Umbrella Ministries. The Palm Springs-based national 501c3 is focused on helping mothers who have lost children.

 

The two spend "three or four nights a week" greeting customers and making the rounds of the restaurant, Anderson says. 

 

"I've seen tough times before and some of my restaurants didn't make it," says Anderson, noting the failures included the Tacoma restaurant that opened following Seattle.  

 

 

While noting his conviction that "the general economy has to change around here" and "there are too many restaurants," Anderson insists he and Helen will make Stuart's Steakhouse a success.

Continue reading
  1143 Hits
  0 Comments
1143 Hits
0 Comments

Nickels' likely entry will enliven race for open Secretary of State post

Former Seattle Mayor Greg Nickels' likely decision to seek the Democratic nomination for Washington Secretary of State may represent a sobering reality to the three Democrats already announced and campaigning. But it's also a bit of cold water on the hopes of those who figured he'd seek to regain the city's top elected position next year from "the accidental mayor."

 

While Nickels has given himself until Valentine's Day to make up his mind about a race that he says he didn't really begin to contemplate until "over the Holidays," it was clear during a telephone interview that he's already thinking about what he would seek to accomplish in the office. The chances that he will decide not to run are remote.

 

"I think this office, where all businesses documents have to be filed, can be a place for someone to act as an ombudsman for small businesses all across the state," said Nickels, who would be seeking, along with the other Democrats, to be the first from their party to win the Secretary of State job in this state in 50 years.

 

The other Democrats include Kathleen Drew, a one-time State Senator who now works for Gov. Christine Gregoire and who is the only woman seeking the Democratic nomination. She has already received some important endorsements. Those include former King County executive Ron Sims, who recently returned from a stint in an Obama-Administration post, and King County Assessor Lloyd Hara, who is holding a fund-raiser for her next month.

 

The two Democratic legislators who have filed are Jim Kastama, a state senator from Puyallup who chairs the Economic Development, Trade and Innovation Committee (EDTI), and Rep. Zack Hudgins, a former employee of both Amazon and Microsoft.

 

The lone Republican in the race, and the first of any of the hopefuls to announce, is Kim Wyman, protégé of outgoing Secretary of State Sam Reed for a decade in the Thurston County assessor's office before being elected to replace him eight years ago when Reed decided to seek the state office.

 

Wyman notes that she has "already demonstrated the ability to perform the functions of the Secretary of State's position, like elections supervision and business filings, at the county level." She, of course, has the endorsement from Reed to replace him.

 

If the others of both parties hoping to succeed Reed were taken aback by the prospect of campaigning against Nickels, many Seattleites who were hoping he would seek to reclaim the mayor's job in 2013 were surprised and disappointed.

 

There was a sense on the part of business leaders and others that Nickels, who actually finished third in the 2009 primary, was merely supposed to be getting a signal from many who wished to send him a message about a perceived arrogance, not oust him from the job.

 

For those, who had no interest in having Mike McGinn as mayor but didn't care for businessman Joe Mallahan, it was an interesting lesson in not wasting your vote to send messages. So as McGinn's relations with the City Council, the governor and the business community have soured, many took to referring to him as "the accidental mayor" and were awaiting Nickels' effort to win back the office.

 

Nickels, 56, admitted in our telephone conversation that "in the back of my mind there is a sense of some unfinished business" for the job he held for two terms. "But it's time for me and for the city to move on."

 

Since being rejected by the voters, which Nickels describes as "a very humbling experience that gives you a different perspective on things," he has had a teaching fellowship at Harvard, served as a public delegate to the United Nations and traveled to the Ukraine to advise mayors there.

 

He describes those experiences as "two years of experimenting" to determine what he'd do next. Now, he says, the role of Secretary of State would be "a logical continuation" of his 35-year love affair with public service.

 

Wyman, who says she expects a number of other candidates to emerge before the filing period begins in June, has already visited 15 counties around the state and is "starting to build" a strong campaign team. She has so far raised about $25,000, noting that "as you get into races down the ballot, it's much harder to raise money."

 

Drew became the first Democrat in memory to be elected to her east King County seat in 1992, unseating eventual GOP gubernatorial candidate Dino Rossi before losing to him four years later. She has since been involved in higher education at the UW Bothell campus, wrote the state's ethics law, worked closely with tribes and been involved in governmental reforms efforts.

 

Drew offers frankly: "I think I will have a lot of support from women."

 

The two Democratic legislators, Kastama and Hudgins, would have expected to draw from a traditional base of financial support for Democrats in a down-ballot contest that stands to draw less attention than the high-visibility race for the open gubernatorial seat, for president, U.S. Senate and congressional races.

 

Nickels, whose entry will change that fund-raising dynamic, addresses in advance what's likely to be a key political shot others take at him, saying "I'm not looking at this as a stepping stone to any other office."

 

Continue reading
  1306 Hits
  0 Comments
1306 Hits
0 Comments

Achievements of deceased astronaut focus of program for at-risk kids

Nine years on from Michael P. Anderson's death on the ill-fated space shuttle Columbia, the fund-raising effort to ensure continuation of the annual program at Seattle's Museum of Flight aimed at inspiring at-risk children of color to dream big dreams is nearing its final stage.

 

In fact, the effort launched for a hometown hero by Spokane business leaders following the Feb. 1, 2003, shuttle disaster, along with the major assist from African-American pilots of Alaska Airlines and a financial commitment from the airline itself represents fulfillment of a big dream in its own right.

  

 
 

 

As the Museum of Flight prepares to host the third annual Michael P. Anderson Memorial Aerospace Program on February 4, final selection is in progress for the group of 10-to-14 year olds who will receive support from a special fund to attend the day-long session.

 

The goal of the program has been to create an enduring memory of Anderson and to make his achievements an object of aspiration and inspiration for young people, particularly the African-American students who would seek to emulate him. It's intended to help inspire an interest in science, technology, engineering and math (STEM) education and careers.

 

Avista Corp. CEO Scott Morris, motivated in part by the fact Anderson's father was an Avista employee, assigned the firm's director of community development, Anne Marie Axworthy, and communications manager Jessie Wuerst lead roles in the project, with a goal of  raising funds for a statue of Anderson in his hometown. That was soon after the shuttle disaster. But with completion of the larger-than-life bronze statue in Spokane in 2005, the vision expanded.

That meant doing something on the west side of the state and that led to a focus on a second statue at Seattle's Museum of Flight, which was dedicated in June of 2009, as well as a program to bring African-American children an awareness of Anderson and his accomplishments. That led to the creation of the Michael Anderson Memorial Aerospace Scholarship for Children of Color, which is administered by the Museum of Flight.

 

The campaign to raise the final $50,000 to ensure that the Museum of Flight program and the scholarships continue will also get a boost next month when the person credited with being the key figure in making the Seattle portion of the program a reality retires from the Air Force and returns to Seattle.

 

Maj. Gen. Harold L. "Mitch" Mitchell, Deputy Inspector General of the Air Force in the Office of the Secretary of the Air Force, retires this month after two years on active duty and will resume his role as an Alaska Airlines pilot, which is what he was doing when he was first approached about involvement.

 

"The goal has been to do more than merely put up a statue," Mitchell explained in an e-mail exchange this week. "It's important to leverage Anderson's legacy to help students have a chance to do similar things."

 

In an effort to put together a group to focus on the goal, Mitchell turned to other African-American pilots at Alaska, then realized "we needed some funding to make this happen so we thought it was an idea worthy of sharing with the company."

 

He says they didn't expect Alaska to be as supportive as it was, but the airline agreed to put up $100,000 as matching funds over four years.

 

"To be honest, we've struggled on our side of the match, but they have been outstanding," Mitchell said.

 

Wuerst of Avista said the campaign has raised $190,000 thus far and needs to raise a final  $25,000 to get the last $25,000 of the Alaska match.

 

Anderson was 43 when he and the other six crew members of the Colujmbia crew perished as the shuttle broke apart on re-entry.

 

But in an interview from space earlier in the 16-day  mission, Anderson expressed a thought that became the quote on the plaque on each statue: "This is what I wanted to do since I was a little kid.  If you apply yourself, work hard to be persistent, and don't give up, you can achieve anything you want to achieve." 

 

It's that commitment that supporters of the Museum of Flight program hope to bring to a growing number of children of color from all parts of Washington State.

 

Continue reading
  1278 Hits
  0 Comments
1278 Hits
0 Comments

Pollard predicts "bright future" for Washington Wine industry as she departs top-executive role

As Robin Pollard steps down from her role as the key executive overseeing Washington's fast-growing wine industry, she can reflect on a five-year tenure during which the size and influence of the industry have grown dramatically. And because the growth of wine has come with little of the economic downturn experienced in other markets and other sectors, she describes the future as "very bright."

 

Part of that bright future will be an expanded focus on national and international visibility in 2012 as the Washington Wine Commission marks its 25th anniversary and the Taste Washington event, designed to create a national destination attraction, will become a two-day gathering in Seattle.

 

And the commission figures it will take three or four months to find a replacement for Pollard. 

 

As executive director of the Washington Wine Commission, a state agency whose operations are funded almost entirely by the industry itself, Pollard helped guide the organization to become what she describes as "a significant marketing source" for the $4-billion-plus industry. The marketing has become increasingly important as the number of wineries has grown from about 300 when she arrived in 2004 to more than 750, a number swelled by the emergence of numerous small, boutique wineries.

 

During her time working with the 12-member commission, a large part of the focus was on the nurturing of those boutique wineries. And apparently part of the outgrowth of that close involvement was the igniting of her desire to get back to her agricultural roots.

 

Pollard, an Iowa farm girl who got her master's degree in agriculture from the University of Missouri before beginning a 30-year career in state government with the international marketing division of that state's agriculture department, is focused now on finding some acreage to create her own vineyard.

 

That acreage will most likely be in the Yakima Valley or Wahluke area. And the kinds of grapes that most appeal to her? "I love bordeaux, merlot, cab and cabernet franc."

 

Pollard  brought a nearly 20-year career in various state-government positions, initially related to assisting small business, when she accepted what she described to me then as "my dream job" with the wine commission.

 

In addition to her small-business roles, starting in 1987 with oversight of the then-new Small Business Improvement Council, Pollard served in two positions with major state impact. First she was director of the state Tourism Department.

Then Pollard was assigned by state economic-development director Martha Choe to oversee proper execution of the contract the state entered into with Boeing following passage of a legislative package of tax benefits and workforce and infrastructure elements that sealed final assembly of the 7E7 in Washington state.

 

It's the kind of attention to detail that she had to bring to the Boeing-contract oversight that has Pollard expressing her only note of caution about the boutique wineries' future,

 

The concern relates to the passage of Initiative 1183, by which voters said the state must get out of the liquor business and let larger retailers carry hard-liquor on store shelves.

 

"I honestly don't know the impact, but there's only so much shelf space in retail outlets and the product of the smaller wineries is most likely to be where the risk is as shelf-space is created for hard liquor by trimming the amount of wine on store shelves," she said.

 

The wine-industry publication Wine Spectator touts the keys to success of Washington wines as "high quality and low price." That's a benefit in the global wine competition that Pollard points to in an interview in her final week on the job.

"We've proven that we can grow extremely good grapes and have a huge base of talented wine makers to turn out world class wines and do it at a competition-winning price point," she said. "We have the ability and the acreage to produce large volumes of wine at lower prices than competitors, whether it's producing an $8 bottle or a $150 bottle.

So Pollard sets out now on an entrepreneurial encore, seeking to become, if she can find the right piece of land, part of the fast-growing industry for which she helped provide direction over the past five years.  

 

  

 

 

Revenge wine
'Revenge' in a bottle
'

'Revenge' is sweet when it  

comes in a wine bottle

 

It might be called the occasion when Washington Wine Commission Executive Director Robin Pollard learned that the sweet taste of Revenge is actually fruity, like grapes, or more specifically like cabernet sauvignon grapes.

 

It's a story that began when members of Pollard's Wine Commission staff successfully bid on a ton of cabernet sauvignon grapes from the highly regarded Champoux Vineyards at a charitable auction in 2009.

 

"We thought it would be a fun team project," Pollard explained in an interview a coiple of days before her retirement from the position she had held for the past five years. "While we all had some knowledge about the wine industry, we wanted to understand all the decision points to being a winemaker to give us a fuller appreciation for all the challenges of being in the wine business."

 

"We had crushed the grapes and filled the barrels when we learned that Paul Champoux had been bitten by a mosquito in his vineyard and contracted West Nile Virus," Pollard said. "He was in critical condition for a time and almost died.

 

To celebrate the fact he did survive, Pollard explained, "and to pay homage to the Champoux family, we bottled the wine and created a "Revenge" label, complete with a dead mosquito.".

 

As the label reads: "'Revenge' is an homage to the Champoux family and to Paul's incredible recovery. Special thanks to Chris Camarda of Andrew Will Winery, who served as wine consultant on the project."

 

With only 45 cases produced and distributed among team members, bottles of the special production, complete with the dead mosquito, may prove to be a valuable item at future wine auctions.

Continue reading
  1211 Hits
  0 Comments
1211 Hits
0 Comments

Veteran auctioneer Kip Toner says benefit auctions ever more vital for charities

To those who think that benefit auctions for charitable causes may be losing their appeal, Kip Toner, who for more than three decades has been in the business of getting folks to raise their paddles, has news for you.

 

Toner, who's KTBA, Inc. (Kip Toner Benefit Auctions) is 20 years old this year, says auctions have become an increasingly important part of charitable organizations' annual fund raising efforts. And he predicts that the importance and the number of auctions will continue to grow for those non-profits, perhaps even because of the current economic challenges.

 

"Because of what's happened in the economy over the past four years, auctions have become increasingly important for charities because other sources of revenue have declined significantly," Toner observed. "A number of those charities have come to us and said they simply need to have their auctions produce more than in the past."

 

It was in 1991, after 15 years learning all aspects of the auction business with the James G. Murphy Co., that Toner launched his own company in Seattle and proceeded to grow the enterprise into an auction company that does business across the country.

 

Toner sees two trends that he expects will dramatically increase the importance of benefit  auctions in the future. One is the growing use of handheld devices for bidding. The other is the increasing presence of what he calls "consignment items" -- items for which the donor and the charitable organization  split the amount of the winning bid.

 

Referring to the advent of bidding with handheld devices, Toner says: "The trend will increase the bidder pool against a fixed number of items and that will certainly increase the price for each item."

 

The emergence of handheld devices for bidding is part of what Toner sees as "the challenge auctions have in front of them to update their appeal to a new generation." He adds that the way handheld bidding fits into a more fun environment is that attendees don't have to pay as close attention to the front-of-the-room action when they can track bidding on their device.

 

Despite the challenges, the number of auctions is actually growing rather than declining, Toner notes.

 

"Some organizations have stopped doing auctions," he says. "But for every one that is dropped 10 emerge. There is almost an unlimited supply of items for auctions and coming up with new and unusual ones is merely a matter of creativity."

 

Toner's company did 105 auctions last year, with he doing at least one a weekend at auctions extending from New York and Washington, D.C., to Hawaii.

 

Asked about how much money his auctions generate for various charities, Toner said the last year they tried to calculate the total charity take was 2007 when "the auction revenue the charities actually took in was $16 million," he said. "That was the amount actually earned at the auctions from the live and silent segments, fund an item and other sales such as raffles."

 

As a result of the expected growth in auction numbers, Toner says more and more people are seeking to get into the auctioneer game. That has prompted the national auctioneers association to create a recognition of the formal title Benefit Auctioneer Specialist and ask Toner to write the curriculum and teach the classes for those who want to qualify for that ranking.

 

Toner credits the late Dick Friel, who with wife, Sharon, were the beloved team at many Seattle-area auctions, with bringing humor to the auctions.

 

"Dick was great because he taught us all about the importance of  humor in the auction, he showed us how to be entertainers as auctioneers," Toner added.

 

Two items that Toner says are growing in popularity are parties at the local fire station and small-plane flights put up by the owners of the planes.

 

"Firefighters love to have people come to the station both because they inevitably get a few minutes to do a fire-safety talk and because those attending the party usually bring the food, and leave the leftovers behind," Toner said with a smile.

 

"The private-plane trips are frequently bought by people who want to take out-of-town guests up because it's a great way to see the Northwest in all its glory," He adds.

 

Asked about what makes a successful auctioneer, Toner emphasized: "you have to make it about the attendees, not about the auctioneer, and that includes thanking people by name.That isn't really difficult since I have a sheet with a name after each bid number," Toner pointed out.

 

He recalled doing a recent art auction in New York where all the attendees were Spanish, adding that he spent advance time learning how to pronounce each name. "I'm not positive I got each name right, but they appreciated the effort."

 

What's the largest pricetag he recalls for an item? Toner says it was likely the $650,000 paid by an auto dealer who outbid several other challengers for the opportunity take his customers on trip aboard the cruiser of a well-to-do North Idaho business person.

 

"In the end, the winning bidder decided instead to take all the competing bidders," Toner chuckled.

 

When the 68-year-old Toner was asked how long he might continue at his current pace, given continued good health and energy, he said he's done 23 years of auctions for Georgetown Prep in Washington, D.C., and 20 for Pilchuck Glass. "I'd like to reach 25 with each before I think about retiring."

Continue reading
  1209 Hits
  0 Comments
1209 Hits
0 Comments

Clean-energy leader Sue Preston dismisses criticisms of loan-guarantee as 'political'

Susan Preston, whose image as a leader in clean-energy investment has grown in her years overseeing the nation's first angel fund for seed and start-up clean energy companies, has reason to look toward 2012 with optimism. And she dismisses the criticism of those who would deter federal efforts to spur such investments as "purely political."

 

Preston, general partner in the nearly four-year-old California Clean Energy Angel Fund (CalCEF), acknowledges the high-profile bankruptcy of solar-power start-up Solyndra may suggest improvements are needed in federal energy-loan guarantee programs..

 
 

"But you don't throw the baby out with the bath water just because some politicians are using the bankruptcy to make political hay," Preston said.

 

"Overall, the government will show a nice profit on the loan-guarantee program," she says, moving on during an interview to things she'd rather talk about, like the successes of CalCEF and the likelihood that she'll focus next year on raising a new clean-energy fund.

 

And she enthuses about the possible resurrection of a tax-break for start-up investors that she conceived and that was gathering support in Congress before the economy went flat.

  

That "political hay" that Preston calls "purely political" has been made over the last couple of months by Congressional Republicans over the bankruptcy of Solyndra, a Fremont, CA, solar-panel maker. It was treated  by the Obama Administration, including a visit by the President himself, as the poster child for investment in renewable energy.

  

Solyndra was the first beneficiary of the federal loan program and, as a company with new technology and support from a group of venture-capital firms, it seemed to be an ideal candidate for visibility.

  

Thus when the company went bankrupt this past September, defaulting on a $528 million federal loan, Republicans seized the opportunity to make it the poster child for what they viewed as excessive Obama enthusiasm for alternative energy.

  

 "The loan guarantee program from which Solyndra received money has a number of other companies in the program, the vast majority of which are involved with project financing of large, utility-scale facilities with 20 to 25 year power purchase agreements," Preston said.    

 

In fact. the U.S. Department of Energy web site indicates the federal agency has made $35 billion in loans and created almost 65,000 jobs as a result.  

  

"If you want to talk about wasted money, let's look at the billions and billions of dollars spent on defense technology which completely fails," she added.

  

Preston, while a partner in a major Seattle law firm, helped guide the launch of the nation's first women's angel group, Seraph Capital, in Seattle in the late '90s. And in a six-year stint as Entrepreneur-in-Residence for the entrepreneur-focused Kauffman Foundation, she became a widely recognized expert on angel financing, including authoring numerous articles, white papers and books on the topic.

  

It was that angel-financing expertise that resulted in her invitation in 2008 to guide the launch of the CalCEF Clean Energy Angel Fund, for which she proceeded to raise $11 million to invest in early-stage clean-energy companies. The angel fund was launched by the California Clean Energy Fund, a non-profit that hired Preston to create the angel fund and then became a limited partner in the for-profit CalCEF.

  

Preston is confident the political flap won't have a negative impact on either the CalCEF angel fund, or in a new fund she expects to begin raising money for early next year.

  

At this point there has been no official announcement on plans for the second fund, which she says will be "much bigger" than the current fund's $11 million, adding that while "we have not come to complete agreement on the name, it will likely be CalCEF Clean Energy Ventures."

   

Despite the financial challenges that have prevailed almost since CalCEF was launched, it has produced a positive return on investment with its four fundings, which averaged about $750,000, Preston said.   

 

Although Preston emphasizes that there are no geographic restrictions on investments by the CalCEF angel fund, "on a practical basis, and because of the strong prevalence of clean energy companies in the Bay Area, we have not made an investment outside this area."

 

But she notes that she and her partners "have been to several other places in California, and elsewhere in the country, to explore possible candidates for investmernt."

"Clean energy has seen a bounce back in the last 18 months and at a greater rate than some other technology sectors," Preston said, adding that "within clean energy, certain areas are performing better than others when you look at global indexes.  For instance, wind is down, but smart grid related technologies are performing reasonably well."

  

Asked what kind of energy startups are likely to generate the most interest over the next couple of years, Preston responded: "Energy efficiency, smart grid and storage are my bets."

  

"Grid storage will be an interesting area to watch because the problem with wind power is that the wind blows more at night while most of the needs are during the day," she said. "We are really in need of storage technology."

  

Preston is enthused that a proposal she put together about four years ago for an income tax credit for investors in start-up companies, an idea that drew bi-partisan support in both houses of Congress before the economic chaos shunted it aside, has seen a revival of interest in recent months.

  

The Access to Entrepreneurs Act (ACE) may move forward this coming year, she says, but it will have to be without her assistance because the first priority will be launching the new fund while continuing to oversee administration of the CalCEF fund.

  

"Our goal is to do well while we are doing good." Preston says.  "Our first priority is to make money for our LPs, but because we invest in clean energy, we get to do good at the same time."

Continue reading
  1341 Hits
  0 Comments
1341 Hits
0 Comments

Ex-congressman Baird's ethics quest could gain national focus after 60 Minutes probe

Former Washington Congressman Brian Baird's long quest to bring a small note of integrity to the dysfunctional legislative body from which he retired a year ago has finally, with a 60 Minutes episode titled "Honest Graft," gotten a bit of national visibility for an idea whose time has long since come.

 

And it's possible that, as irate citizens across the country seek ways to express their frustration at the implications of the abject failure of the so-called supercommittee to come up with any agreement, Baird's idea may become a focal point for citizen action.

 

During the last three of his six terms representing the state's 3rd District, Democrat Baird sought unsuccessfully to pass, or even just gather support for, what he called the Stock Act. It would have barred members of Congress from doing stock transactions in areas they regulate, in essence, prohibiting their investing in a manner that those in the real world call Insider Trading.

 

For ordinary citizens, reaction to Baird's proposal would be a laughable "well, of course." But in a place whose mantra is "the rules we make for you don't apply to us," seeking to force action by the lawmakers on one small, self-imposed ethical constraint could become a rallying point for a fed-up public.

 

The thrust of the CBS segment that aired this month is that lawmakers often do make stock purchases and trades in the very fields they regulate. While ordinary citizens could be jailed for engaging in the kind of investment shenanigans that those in Congress involve themselves in, there's not even an ethical concern among lawmakers.

 

Baird may be able to gain far more visibility as a former lawmaker than he could as a member of Congress and the hope has to be that this first shot across the bow of Congress will echo down the months of the coming election year.

 

And a sure way to take this worthwhile campaign viral is to share in every possible social-media fashion 60 Minutes reporter Steve Croft's questioning of current House Speaker John Boehner and former Speaker Nancy Pelosi at their respective news conferences.

 

For viewers of the ineptitude with which both Boehner and Pelosi tried to answer Croft's questions about whether their investment practices were at least conflicts of interest, the thought that had to occur was "Who elects these people?" The answer, unfortunately, is people like us elect them. Shame on us.

 

Boehner, for example, bought a bunch of health-care-related stock during the health-care reform debate of 2009. And when Boehner's efforts to kill the so called "public option" succeeded, those stocks skyrocketed.

 

Pelosi, meanwhile, had gotten in on a series of lucrative stock Initial Public Offerings. One of those involved an enormous number of Visa shares that Pelosi purchased while she was working on legislation that would have hurt credit card companies. Two days after purchasing the stock at $44 a share, and after the bill was put on long-term hold, Pelosi's stock shot up to $64 a share.

 

Ideally, members of Congress will be pressed, in any news conference or appearance before business organizations or other groups in the coming election season, to explain why they fail to support the legislative concept for which Baird sought support in Congress.

 

Fortunately, Pelosi's struggles with the simple task of answering a question from the 60 Minutes reporter have become pervasive on YouTube, and should remain so down through election year as a backdrop to those questions posed to members of Congress seeking to stay in office. It should be watched by millions, and shared with millions more.

 

At a time when we're already dealing with "pledges" from candidates for political office, a much more logical pledge to press upon candidates than a no-taxes pact is: "Will you support the current version of Stock Act legislation in the House next year?"

 

And no candidate forsaking Congress for a run for state office should escape being forced to explain to their hoped-for statewide constituency why they lacked an interest in imposing ethical conduct at the most basic level on their fellow lawmakers and themselves by supporting Baird's efforts.

 

In this state, that would mean the question would be posed to Rep. Jay Inslee, who is running for governor. And why shouldn't he be pressed to answer that question? Hopefully, it will be posed early on in the campaign. 

 

Baird's 3rd District successor, Republican Jaime Herrera Beutler, announced earlier this month that she is signing on as a co-sponsor of a bill similar to Baird's plan, this one called "Stop Trading on Congressional Knowledge Act," sponsored by Minnesota Democrat Timothy Welz.

 

A total of 92 lawmakers have signed on as co-sponsors, including Washington Democrats Rick Larsen and Jim McDermott, though not Inslee.

 

But those wise in the way Congress works, or more accurately doesn't work, will note that the bill was assigned by House Leadership to the Subcommittee on the Constitution, about as distant from a subcommittee that has anything to do with ethics, finances or investments as they could get.

 

Howard Schultz' quixotic appeal to CEOs to halt donations to re-election campaigns of members of Congress because of their inability to progress beyond stalemate is a bit impractical because only candidates that CEO types contribute to would be impacted. Candidates supported by groups like unions and trial attorneys would actually benefit if Schultz' call drew CEO response.

 

But a call for denying donations to any member of Congress who doesn't pledge to support the specific legislation that Baird long championed might have a whole different outcome in terms of response from those seeking to remain in Congress. And since the demand for such a pledge would be coming from Democrat and Republican voters alike, it might be the seed that could grow into a renewed sense that there are things that those from all parts of the political spectrum can actually agree upon.

 

And it would thus represent a small step toward acceptability for a legislative body that badly needs to be viewed by the American public as not just trustworthy, but simply relevant.

 

Continue reading
  1186 Hits
  0 Comments
1186 Hits
0 Comments

52°F

Seattle

Mostly Cloudy

Humidity: 63%

Wind: 14 mph

  • 24 Mar 2016 52°F 42°F
  • 25 Mar 2016 54°F 40°F
Banner 468 x 60 px