Published May 2004

Business Briefs

American Quilt Works goes online, publishes booklet
Marysville-based American Quilt Works recently launched its Web site, www.americanquiltworks.com.

The online presence includes photos of customer quilts, favorite sites, a quarterly newsletter and a free quilt pattern, according to business owner Catherine Kessel.

Kessel, a quilt teacher and custom quilt maker, also recently published her first quilt booklet, “Liberty Sampler,” which includes the pattern, borders and fabric requirements for quilters to complete a 42-inch-square wall hanging. A photo of the completed quilt can be found on the company’s new Web site.

For more information, call 360-658-1086.

Valley General cuts staff positions,
closes baby clinic
Valley General Hospital is eliminating 10 employee positions and cutting hours for about five others following an estimated loss last year of nearly $430,000.

Seven of the 10 employee positions being cut this year are unfilled, spokeswoman Martha Dankers said. The three employees affected by the job cuts work in admitting, information services and managed care.

In addition, hours are being reduced for the equivalent of about five full-time employees.

The Monroe hospital has 480 full- and part-time employees and a $34 million operating budget.

Before moving to staff cutbacks, the public hospital cut consulting fees, materials, supplies and travel budgets, Dankers said. As one example, the hospital’s spring newsletter to the community has been eliminated, saving $10,000.

Collectively, the reductions will save $461,000, with $171,156 coming from staff cuts, she said.

The cuts were blamed on declining patient admissions, a trend seen at hospitals throughout the region, Dankers said. So far this year, admissions are down 9.6 percent over last year.

In addition, the state cut money to hospitals for caring for uninsured patients in emergency rooms. In the first two months of this year, the cost of caring for these patients totaled $207,858, she said, noting that last year, such charity care cost the hospital $438,018 for all of 2003.

The hospital also announced that it would close its healthy baby clinic on April 30.

Dankers said the clinic was being closed because Medicaid patients are now being cared for through the state’s Healthy Options program at area medical clinics.

TEAM Edmonds receives
funding for marketing kit
The Port of Edmonds Commission recently voted to award $10,000 to TEAM Edmonds, a committee of the Greater Edmonds Chamber of Commerce dedicated to enhancing the economic vitality of Edmonds.

The committee is currently working to develop a marketing kit by year’s end that would be shared and leveraged by business and community organizations to create a consistent message to brand Edmonds.

Along with existing funds, the port’s contribution gives TEAM Edmonds about $32,000 to complete the marketing kit, said Chris Guitton, executive director of the Greater Edmonds Chamber of Commerce.

Edmonds Hand Rehab expands services
Edmonds Hand Rehab extended its focused treatment services to now offer patients and physicians a full-service physical therapy clinic along with upper extremity therapy. The clinic, which is part of Integrated Rehabilitation Group, is located at 7907 212th St. SW, Suite 219.

“I’m pleased with the expansion of services and makes it easier for our physicians and patients to know that they can come to us with any physical therapy need,” stated Tracy Springman, clinic manager.

Stevens Pavilion named
Office Development of Year
Stevens Pavilion in Edmonds recently was awarded the Office Development of the Year Award from the Washington State Chapter of the Society of Industrial and Office Realtors.

With its sky-lit atrium and centralized waiting area, the three-story, 80,000-square-foot medical office building on the Stevens Hospital campus was deemed an outstanding example of cutting-edge office development, according to a news release issued by the hospital.

The award recently was presented to Joel Hadfield, former executive director of business development for Stevens Healthcare, and to John Teutsch founder of Teutsch Partners LLC, a key partner in developing the pavilion, which opened for service in August.

Cialis sales, marketing costs up
during first quarter
Lilly ICOS, the joint venture between Bothell’s ICOS Corp. and Eli Lilly & Co., reported in April that first-quarter sales of Cialis exceeded $108 million worldwide, compared to $203 million for all of 2003.

Sales in the United States, the world’s largest market for erectile dysfunction drugs, represented almost $33 million of that total from last quarter. That was up from fourth-quarter sales of $28 million following the drug’s approval by the Food and Drug Administration in late November.

Paul Latta, an analyst at McAdams Wright Ragen in Seattle, said the first-quarter sales figures didn’t meet his estimates, but they weren’t worrisome, either.

“They were a little bit less than we expected, but within the range of where they should be,” said Latta, whose firm has issued a “buy” rating for ICOS.

Lilly ICOS also reported that expenses also grew to $220.4 million for the quarter, compared to $60.7 million for the same period in 2003. Marketing and administrative costs accounted for $195 million of that total.

S. Everett apartment complex sold
for more than $23 million
Security Properties Inc. of Seattle is the new owner of Hearthstone at Merrill Creek after paying more than $23 million for the 220-unit apartment complex in south Everett.

Security Properties bought the property at 1901 Merrill Creek Parkway from the developer, Bellevue-based Schnitzer Northwest. The price paid for the property translates to approximately $105,000 per unit.

That’s believed to be the highest ever for the south Everett area, said Frank Bosl, a vice president with CB Richard Ellis. He and Jon Hallgrimson, a senior vice president with CB Richard Ellis, represented Schnitzer in the transaction.

“We think it’s a great property,” said Mike Fulbright, director at Security Properties, adding he’s optimistic about the apartment complex’s potential as Snohomish County grows.

He said about 5 percent of Hearthstone’s apartments were empty when the property changed hands. That’s below the 7 percent to 8 percent average vacancy rate for the Puget Sound region.

Built in 1999 and 2000 by Schnitzer Northwest, Hearthstone lies just west of the intersection of Merrill Creek Parkway and Hardeson Road. The three- and four-story buildings in the complex include “luxury” apartments with up to three bedrooms, with rents ranging from about $700 to more than $1,300 a month.

Fulbright said Hearthstone is Security Properties’ first purchase in Snohomish County, but the firm owns 26,000 units at other complexes nationwide.

CombiMatrix added to index
Merrill Lynch & Co. has added Mukilteo-based CombiMatrix Corp. to its nanotechnology index.

The investment company launched the index of 25 companies on April 1, but overhauled it a few weeks later after getting feedback from investors.

To be included in the index, a company has to have a “significant percentage” of future profits tied to nanotechnology, meaning microscopic products, according to Merrill Lynch.

CombiMatrix makes programmable semiconductor chips, known as microarrays, for DNA analysis and other research.

Boeing honors Everett supplier
A small Everett company that manufactures spare parts for older jets has been named Supplier of the Year by the Boeing Co.

Onamac Industries, 11504 Airport Road, is one of 13 suppliers worldwide to be honored by Boeing. The company has 78 employees, who produce more than 600 spare parts for Boeing military and commercial jets.

The award cites the company for its quick response times, ability to reduce costs, and investments in improvements.

Two other Puget Sound companies — Pacific Aero Tech of Kent and Clements General Construction of Covington — also received the awards.

Horizon Bank to expand presence
in Snohomish County
Bellingham-based Horizon Bank will open a new branch in Marysville this year and establish a new regional office in Everett next year as it moves to expand its presence in Snohomish County.

Expanding in the county is “the next thing on our drawing board,” said Dennis Joins, Horizon’s president and chief operating officer. “There’s a tremendous opportunity for us there. We just need to broaden our footprint to take advantage of those opportunities.”

Horizon will open its sixth branch this fall in the Plaza 88 shopping center in Marysville, at 3700 88th St. NE. The bank will build the branch on vacant land it owns in the center, Joins said.

Horizon recently acquired a building near the intersection of 100th Street SW and Evergreen Way, which will become a new regional support center for the bank’s southern branches.

The new center will open in late 2005, Joins said. The bank plans to move its Everett branch, now at 909 SE Everett Mall Way, into the new location, where the bank also will have commercial lending officers and a training center.

With the changes, Horizon will have six branches in the county and a new headquarters for running Horizon’s southern branches, Joins said.

“It will give us a bigger presence in Everett and Snohomish County as a whole,” he said. “We’re getting some good business out of it now. We’d like to get more of our share.”

As of June 2003, Horizon Bank had about $79.7 million in deposits in Snohomish County, giving it about 1.3 percent of the market share here, according to the Federal Deposit Insurance Corp.

Cal Ventures a top dealer for Cal Spas
Cal Ventures, a three-store retailer of furnishings for outdoor living, recently was honored as a top dealer for Cal Spas.

“We’ve earned an excellent reputation with our customers over the years. They return to our showrooms each year to see what’s new and exciting in backyard recreation, and they tell their friends, who also become our customers. We are proud to be a member of this community,” said Jim Luciano, president of Cal Ventures, which has stores in Lynnwood, Arlington and Milton.

Of the 500 Cal Spas dealers worldwide that competed for the award, 33 were recognized as outstanding dealerships.

Nominees sought for
New Freedom Initiative Awards
Businesses that have used innovative strategies to enhance the workplace environment and expand job opportunities for people with disabilities can submit their entries for the 2004 New Freedom Initiative Awards, said Hector V. Barreto, administrator of the U.S. Small Business Administration.

The award program is aimed at recognizing public-private partnerships and programs that have employed the use of innovative training, hiring and retention techniques to create a positive and measurable impact on the employment of people with disabilities.

Nominees eligible for the award include individuals, businesses (both large and small), and nonprofit organizations. There were 10 award recipients in 2003, including one individual, four nonprofit organizations and five businesses.

More information on the awards and the specific nomination criteria are available online at www.dol.gov/odep under the “New Freedom Initiative” tab or by calling the office of Disability Employment Policy at the Department of Labor, 202-693-7880.

The nomination deadline is May 21.

Christmas House finds
a home through 2008
The North Everett Boys & Girls Club and Christmas House have reached an agreement that will make one of the club’s two gymnasiums the official “Home of Christmas House” each year through 2008.

Last year, the North Everett Boys & Girls Club donated the use of their gym at 2316 12th St. to Christmas House, a nonprofit organization that provides holiday gifts for low-income families in Snohomish County.

“Finding a facility large enough and donated has always been our biggest challenge,” said Rick Kvangnes, president of Christmas House. “The Boys & Girls Club gym was by far the nicest facility we’ve ever had and allowed us to serve more families and children than any previous year.”

“Working with the Boys & Girls Club’s staff and directors is a real pleasure,” Kvangnes said. “They serve a lot of the same children and families we do, and both of us feel a long-term partnership would benefit those in need.”

Christmas House will occupy the club’s gym every year from approximately mid-November until after Christmas through 2008.

Last year, Christmas House served 2,407 families and 6,692 children.

Arts group changes name,
marketing strategy
The Roundtable for the Arts, which raises funds on behalf of arts organizations in Snohomish County, has changed its name to ArtsUnited.

The name change is part of an overall marketing refreshment program, according to the group, which held focus groups and one-on-one interviews to determine the goals of the organization and the future it saw for the arts in the county.

“It soon became obvious that ‘united’ was a theme word for us. We wanted to unite arts donors as well as provide unifying leadership to the sometimes-disparate art organizations,” said Frank McCord, president of ArtsUnited.

For more information on the group, call 425-353-5613 or 425-402-8513.

New legislation removes cap
on SBA’s 7(a) program
President Bush signed legislation April 5 that will increase loan authority for the U.S. Small Business Administration’s flagship 7(a) loan program by more than $3 billion, the agency reported.

The 30 percent increase in small-business loans for the current year will allow the SBA to lift a 3-month-old cap of $750,000 on 7(a) loans, returning it to its previous $2 million level, and drop restrictions on piggyback loans, the SBA said.

“The president’s action today will allow the SBA and small businesses the opportunity to get down to the business of financing growth and creating jobs for the U.S. economy,” SBA Administrator Hector V. Barreto said of the bill signing.

The new law increases the 7(a) program’s lending authority for this year to $12.5 billion, the SBA said.

Along with taking the cap off of 7(a) loans, the legislation raises the maximum on SBA Express loans to $2 million and allows the SBA to raise the maximum guaranty on loans up to $2 million to 75 percent.

Also, the law re-authorizes the 504 loan program and sets authorization levels for the Small Business Investment Company program through the end of the fiscal year, the SBA said.

New businesses, locations
n Sydney’s Bella Rosa Ristorante is the new name of the restaurant at the Best Western Tulalip Inn, 6128 Marine View Drive, Marysville. It will be a family Italian restaurant, which also will provide catering services under the name Clipper Cove Catering.

n Evergreen Fire and Safety has moved from 5116 196th St. SW in Lynnwood to 3618 164th St. SW in Lynnwood. The company can be reached at 800-765-2372.

n Massage & Bowen Northwest has moved to 707 Pine Ave., Suite A-102, in Snohomish. The business can be reached by phone at 360-568-7075.

n Slim & Tone, which provides a new 30-minute workout program for women, has opened at 12926 Mukilteo Speedway, F-1, in Lynnwood. The facility also has free weights, stability balls and resistance tubing, as well as personal trainers. For more information, call Eileen Burgess at 425-347-5148.

n Connections is a new bookstore opened by Lakeside Community Fellowship at 14619 28th St. NE in Lake Stevens. It will offer books, bibles, music and gifts. The number is 425-334-7402.

n Printer Ink Source, a company that refills printer ink cartridges, is set to open May 3 at 2729 Colby Ave. in Everett. It will be owned by Michael Scanes.

n G.I. Joe’s held a grand opening celebration for its Frontier Village store in April. The store is at 519 Highway 9 in Lake Stevens.

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