Published May 2005

Business Briefs

Northwest Composites nets
$400 million Boeing deal
Northwest Composites in April announced a $400 million contract to supply parts for the Boeing Co.’s 787 jet — and also announced a new parent company.

The Marysville company said it had signed a $400 million contract to provide sidewalls and window settings for Dreamliner interiors, as well as cargo linings, door linings and surrounds. The company will design, certify and fabricate the components for the 787. It did similar work for Boeing’s 767-400 program.

It’s a major win for Northwest Composites. The contract is equal to the entire 2004 revenues recorded by parent company C&D Aerospace of Huntington Beach, Calif.

Northwest Composites also is set to become part of French aerospace group Zodiac SA, which is acquiring C&D Aerospace for $600 million. The deal will make Zodiac the parent company both of Northwest Composites and its sister company in Marysville, Aerocell Inc.

C&D will become part of Zodiac’s airline equipment division, which makes seats and cabin equipment. C&D also has operations in Brazil, France and Mexico.

Smokey Point overpass
squeezed during construction
In late April, traffic over the I-5 Smokey Point interchange bridge was re-routed from the old bridge to the new one, making way for the demolition of the former narrow bridge that brought so much congestion to the busy intersection.

Unfortunately, using the new bridge during construction of the adjacent “south” bridge will limit traffic to only two lanes, one in each direction, without the previous left-turn lane. That will make congestion on the bridge worse than ever for the next 10 months until the full six lanes of the two bridges are opened.

Bothell’s Sonus plans stock sale
Sonus Pharmaceuticals Inc. plans to raise up to $50 million through the sale of new shares of stock, according to a statement filed with the Securities and Exchange Commission.

The Bothell-based biotechnology firm, which lost more than $5.4 million during last year’s fourth quarter, had more than $20 million in cash and securities at the end of 2004.

New retailers at Alderwood
Alderwood will add two new retailers to its lineup in The Village as Janeville and Janie & Jack join the retail mix this summer. New retailers also have opened inside the interior with the addition of Finish Line, Sweet Factory and Benderli Tailoring and Alterations.

With its opening in The Village, women’s apparel retailer Janeville will make its debut in Snohomish County, as will Janie & Jack, a retailer of children’s apparel.

Inside the Lynnwood mall, Finish Line offers sport-inspired footwear, apparel and accessories; Sweet Factory serves up sweet treats; and Benderli Tailoring and Alterations offers professional alterations.

Jury levels $17.1 million judgment
against Stevens; hospital plans to appeal
A mother who gave birth to a brain-damaged child at Stevens Hospital in 1998 won a $17.1 million judgment in April against the Edmonds medical facility and two physicians.

A Snohomish County Superior Court jury ruled that the defendants were responsible for not diagnosing and treating the condition of the child, who lost 75 percent of his blood in the womb before he was delivered by an emergency Caesarean operation.

He was born with serious brain damage, impaired vision and cerebral palsy because of a rare medical condition called fetal maternal hemorrhage. The hospital maintains that the condition could not be diagnosed.

The hospital is responsible for $13.7 million of the award, which will go to a former Lynnwood woman, Tami Lafferty, and her son. The jury awarded Lafferty $7.5 million. The remainder is to go to her son for past and future medical bills.

Jurors found the hospital was responsible for 80 percent of the damages and the two doctors are responsible for sharing the balance of the award. Another defendant, Edmonds Family Medicine Clinic, was not required to pay any damages, according to the verdict.

The hospital, which has been hit by financial losses in recent years, said it will appeal the huge verdict. Stevens is insured against such losses.

“We have the utmost sympathy for Tami Lafferty and her son. This difficult 1998 case involved a rare health condition of the fetus that was unpredictable and unpreventable,” said Dr. John Todd, Stevens’ chief executive officer, in a statement.

DYKEMAN named architect
for new elementary school
Everett-based DYKEMAN has been selected to provide architectural services for Everett Public Schools’ new Elementary School No. 17, the architectural firm said.

To meet the continued growth in the school district’s south end, the scope of the project will consist of the design and construction of a 56,000-square-foot elementary school as well as 4,000 square feet of covered play area, parking lot and play fields, DYKEMAN said. Construction is expected to be completed in August 2007.

This project is just the latest between DYKEMAN and Everett Public Schools. The two entities have worked together for more than 30 years on a wide range of projects, including new and remodeled elementary schools and high schools, feasibility studies, master planning, tenant improvements and interior design. Most recently, DYKEMAN completed the classroom additions to Henry M. Jackson High School and is currently working on parking additions/expansions for Everett High School.

Chamber board endorses
commercial flights at Paine Field
Adding commercial passenger flights to Paine Field Airport has won endorsement from the board of the Everett Area Chamber of Commerce, which believes the move will promote business growth.

Snohomish County officials recently studied the potential market for commercial flights at Paine Field, determining there was a demand for regional air service there.

The idea has long been opposed by many living around the airport who object to any increase in noise and traffic in the area.

But Everett chamber President Louise Stanton-Masten said commuter service would be a good thing for business.

“The ability to get on a plane and fly to San Francisco, Las Vegas, Portland or Spokane is important to economic development throughout Snohomish County,” she said.

She said the chamber’s board supports the idea, contingent on the ability to find money for construction of a terminal and for other required improvements for the airport’s infrastructure.

The chamber board’s decision followed a presentation by airport Director Dave Waggoner to the government committee.

Providence Physician Group
buying Mukilteo clinic
Harbour Pointe Family Practice, a clinic that opened in 1991 and has nearly 10,000 patients, is being sold to Providence Everett Medical Center’s Providence Physician Group.

The change will take place May 1, when the clinic will be renamed Providence Physicians Group Harbour Pointe. The Mukilteo clinic formerly was owned by Stevens Hospital in Edmonds.

Letters went out notifying patients of the change March 28, said Carolyn Bodeen, director of operations for Providence Physicians Group.

“Our goal is that everyone can stay with their current providers,” Bodeen said. However, health insurance details are still being worked out for about 200 patients covered through Arcadian Management Services.

Drs. Thomas Hafford, Katherine Bumstead, Rebecca Parrish and Alan Schenne and physician’s assistant Vivian De Valle will continue to treat patients at the clinic. Of the 13 people working at the clinic, two who work in billing and medical records will lose their jobs because Providence Physicians has centralized billing, Bodeen said.

Talks with Stevens Hospital about taking over the clinic began in February.

A sale price for the clinic’s equipment and supplies has not been finalized, officials said.

Dillon Works! adds
creative touch to casino
Mukilteo-based Dillon Works! Inc., a custom design and fabrication company, recently completed a variety of decorative elements for the second phase of expansion at the Black Oak Casino in Toulomne, Calif.

Known for its creative efforts for clients such as Walt Disney Imagineering, Marshall Field’s, Microsoft, IKEA and Sony Play Station, Dillon Works! provided metal railings and tree display columns in the casino’s casual dining area, millwork soffits in the sports bar, as well as conical column wraps, curved banquettes and settees in the Kid’s Fun Zone.

Klein Honda honored for performance
Klein Honda of Everett recently earned the Honda President’s Award for outstanding performance in 2004.

The dealership is one of only 149 out of more than 1,000 Honda dealerships in the United States to qualify for the award by meeting or exceeding the operating standards established for the year, Klein Honda said.

This is the third time the dealership has received the President’s Award.

Horizon Bank decides to convert
to commercial institution
Horizon Bank’s board of directors recently decided to convert the bank to a Washington state-chartered commercial bank from a state-chartered savings bank.

“Over the past few years, we have implemented our strategy of shifting the balance sheet towards a commercial community bank, focused on attracting commercial loans, mortgage loans, consumer loans and low-cost core deposits,” said V. Lawrence Evans, chairman and chief executive of the Bellingham-based financial institution.

“Assuming we receive approval from the Washington Department of Financial Institutions, converting our charter is the next step in our strategy to build a premier community commercial bank franchise,” he said.

Horizon Bank is the primary subsidiary of Horizon Financial Corp., a $933 million, state-chartered bank holding company. The bank operates retail offices, commercial loan centers and real estate loan centers throughout Whatcom, Skagit, Pierce and Snohomish counties.

County’s jobless rate falls to 5.1 percent
Snohomish County’s jobless rate fell to 5.1 percent in March, the lowest since the 2001 terrorist attacks spurred massive layoffs at the Boeing Co.

The county added 1,800 jobs during the month, according to the state Employment Security Department. And there were 1,700 fewer people on unemployment in March in comparison with February, the department reported.

Statewide, Washington’s unemployment rate dropped three tenths of a percentage point to a seasonally adjusted 5.2 percent, the lowest rate for the state since December 2000, and equaling the nation’s jobless rate for the first time since March 1998, officials said.

In Snohomish County, all the major job categories either added positions or remained stable in March, a “significant indication” of general improvement in the economy, said Donna Thompson, a labor economist for the state employment agency.

Boeing and other aerospace employers added 300 jobs in March, Thompson said. There were other increases as well in boat building, vehicle parts dealers, bars and restaurants, and schools.

For March, the county’s labor force was estimated at 337,300 people, with 320,000 working and 17,300 looking for work. Employment was up 700 from a year ago.

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