Please call me.

Rachel Pritchett, 475-3783.

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By Rachel Pritchett, Kitsap Sun reporter

For once, Port of Bremerton Commissioner Bill Mahan didn’t argue strenuously to continue the SEED incubator project during a Tuesday work session.

That was a surprise.

Mahan has been a booster of the clean-tech business incubator, viewing it as something that would bring new jobs and economic diversification and provide a foothold in an industry sure to be a big part of the future. He has tirelessly advocated for the Sustainable Energy and Economic Development project that envisioned the incubator spinning off new clean-tech manufacturers at the port. 

Now, with a $4.3 million shortfall predicted Tuesday if the incubator were built, hopes have dimmed that the bulk of the project will go forward.

It may have been doomed when former Commissioner Mary Ann Huntington was voted off the commission in 2007. Larry Stokes, who defeated Huntington in that election, has often voiced concern over SEED spending. The other commissioner, Cheryl Kincer, never fully came out for SEED. There was always the chance two votes wouldn’t be there.

But Mahan continued his lonely fight.

Earlier this year, he even recruited folks from the business community to come to a port meeting to say nice things about SEED. They did, but failed to build up a genuine and lasting network of support.

Maybe Mahan saw the writing on the wall. Under new port Chief Executive Officer Cary Bozeman, perhaps the chances of building the complex and expensive project became even more remote.

At Tuesday’s meeting, Bozeman had the port’s finance person share figures that showed a $4.3 million shortfall if the incubator were built now, full-scale and with a second floor.

What the number didn’t take into account was the possibility of building a smaller incubator. An effort is under way now to identify ways to cut costs of an incubator building. At one time, it was hoped the cost could be brought down to just over $5 million, which is the amount the port has for the project if it decided to match a $2.58 million grant. Bozeman’s finance person used the higher $9.5 million cost figure to calculate the $4.3 million shortfall.

When asked why the higher number was used, Bozeman responded, “It’s better to be on the conservative side.”

There was little discussion of a smaller incubator Tuesday. The feeling in the room was an almost fatalistic acknowledgment that based on those numbers they were seeing, the project seemed too risky.

Perhaps when the lower number comes out, the incubator will seem more likely.

If the bulk of the SEED project goes away, we may see the port’s focus turn to the undeveloped two acres it is purchasing above the Bremerton Marina.

Bozeman, seemingly undeterred by empty condominiums and a marina that remains two-thirds empty, envisions underground parking and buildings on top that might include retail, office, and more housing.

Also now under negotiation is $392,000 in federal funding for stairs and a ramp there.

Bozeman said he’s spoken with the city of Bremerton’s economic-development chief, Gary Sexton, about helping out.

Bozeman wants a development plan for the Washington Avenue land in place within three years.

Whether the port ends up trading one risky project in SEED for another on the Bremerton waterfront remains to be seen.

Bozeman said any waterfront development by the port would be in conjunction with a partner with the financial capability of pulling it off, thus reducing the risk. 

He’s already putting out calls.

“That’s the way we’re going to do everything from now on,” he said.

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Meanwhile Bremerton gas prices this morning were at $2.85 a gallon, down four cents from a week ago. Rachel Pritchett

Bloggers, 

AAA auto club reports Fourth of July weekend trveling will decrease 2 percent from last year, due to fuel prices and the recession. Some travelers may choose flying over driving,

Some 37 million travelers in the nation will hit the road this weekend. 

“Many Americans remain cautious about the outlook for their personal finances and these attitudes are reflected in the slight decline in travel we are forecasting for the upcoming holiday weekend,” said Robert L. Darbelnet, AAA President & CEO.

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Now at 8,331 …

NEW YORK (AP) — A dour report on job losses in June sent stocks sharply lower Thursday.

Major stock indexes were down about 2 percent after the U.S. unemployment rate hit a 26-year high. European markets were also down following similarly disappointing data on unemployment in the 16 countries that use the euro currency.

Recession-weary employers in the U.S. slashed 467,000 jobs in June, the Labor Department reported, far worse than the 363,000 that economists expected and a grim signal that the path to recovery will be bumpy. The jobless rate rose to 9.5 percent from 9.4 percent in May.

The report — one of the most closely watched economic indicators — disappointed investors who had become encouraged by positive signs recently that key areas of the economy including housing and manufacturing were showing modest signs of improvement.

The stock market rallied furiously this spring off of 12-year lows beginning in early March on hopes for a recovery, but the upward momentum stalled in mid-June as doubts began to emerge about whether the economy had really found a bottom. The June job report was the latest blow to the market’s confidence.

In midday trading, the Dow Jones industrial average fell 176.16, or 2.1 percent, to 8,327.90. The Standard & Poor’s 500 index declined 21.57, or 2.3 percent, to 901.76, while the Nasdaq composite index fell 44.71, or 2.4 percent, to 1,801.01.

The market’s recent rally pushed stock prices back to reasonable levels after they were severely undervalued, said Tim Courtney, chief investment officer at Burns Advisory Group.

With stocks prices back in more normal pricing ranges, “they look less cheap, so bad news like this really starts to sway prices,” Courtney said of the unemployment report.

Overseas markets also fell after a report showed unemployment in Europe rose to a 10-year high in May.

“This is part of the market recovery,” said Roy Williams, CEO of Prestige Wealth Management. “You’re going to get bad news.” Williams predicted the unemployment rate is likely to reach 11 percent.

Williams also noted, however that other recent data has shown the economy is beginning to improve. After the market’s surge from March lows, Williams said data like the jobless figures will give investors pause and sell stocks.

Declining issues outnumbered advancers by about 6 to 1 on the New York Stock Exchange.

Volume came to a relatively low 357.7 million shares ahead of the holiday weekend, compared with 432.4 million shares traded at the same point Wednesday. Markets will be closed Friday in observance of the Independence Day holiday.

Light volume can lead to more volatile swings in trading.

An upbeat report about May factory orders was not enough to boost traders’ confidence amid the weak employment numbers. The Commerce Department said total orders rose 1.2 percent in May, better than the 0.8 percent increase that economists had expected.

Markets kicked off the third quarter on Wednesday with gains after getting some reassuring data on manufacturing and housing. Traders were encouraged by a report showing more stable manufacturing activity and another indicating the fourth straight monthly rise in pending home sales.

Bond prices rose Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.49 percent from 3.54 percent late Wednesday. The yield on the three-month T-bill was flat at 0.16 percent compared with late Wednesday.

The dollar mostly rose against other major currencies, while gold prices fell.

The Russell 2000 index of smaller companies fell 16.97, or 3.3 percent, to 500.49.

Overseas, Japan’s Nikkei stock average fell 0.6 percent. Britain’s FTSE 100 fell 2.5 percent, Germany’s DAX index declined 3.8 percent, and France’s CAC-40 fell 3.1 percent.

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By Rachel Pritchett  |  rpritchett@kitsapsun.com

The folks at fireworks stands across Kitsap are gearing up for the final rush of sales — and most say the recession will have an effect, but won’t bring a big fizzle.

“If the recession were not a factor, I think we’d have a great year,” said Scott Rahm, who’s taking a vacation from his Puget Sound Naval Shipyard job to help run a stand outside the Rite Aid on Wheaton Way in Bremerton. Proceeds are going to help out the Bremerton High School football team and other BHS sports.

Still, he’s hoping people come out for a cause and help raise $20,000.

Tia Baines, also taking time off her Group Health job to staff a stand outside the Bremerton Fred Meyer, had confidence, too. 

“The economy’s down, but they want to release,” said Baines, who’s sold fireworks for 27 years, is married to a pyrotechnician and anti–
cipates selling $50,000 worth of fireworks for her and her distributor.

“They’re going to be more picky about what they buy,” she said.

In Port Orchard, several energetic teens were waving potential customers down at the Bethel roundabout this week, hoping to raise $15,000 for a youth mission trip to Montana through Manette Community Church.  

Drivers were honking support, handing the teens cash out their windows, and occasionally delivering the obscene finger gesture.

“Those are generally the three things that happen,” said Spenser Anderson, 16.

Nearby in another on Bethel Avenue, Chris Harvey, just one more parent using his vacation from his job to sell fireworks, was hoping to raise a few thousand for the building fund for his church, Evergreen Baptist Church of Port Orchard.

“We’re not sure with the recession,” Harvey said.

In Suquamish, where the bigger fireworks are found, Willy Pratt is moving his 8-foot-tall Styrofoam “Big Indian” out from his tiny ramshackle stand out to Highway 305. It’s his 32nd year selling fireworks.

Pratt expects his sales to be down as much as 15 percent this year, but know his regulars will be come around. At age 66, he’s getting a little weary of everyone trying to get him to come down on prices, but he knows this year they’ll be at it more than ever.

“Some people just dicker with you,” he said while sitting on a plastic chair in the shade in front of his stand.

Still, it’ll be OK for Willy, too.

“They’ll come. I know they will. I have my loyal customers,” he said 

Nearby, the second generation of Georges is now running the namesake behemoth stand.

Shellene Kurtz and Skylene, Serene, Marlin Jr. and Duran George have come together to help run the stand after a chaotic period following the 2008 heart-attack death of their father, Suquamish fireworks legend Marlin George. 

His death followed the passing of his brother, Bob George, who helped him protect the stand from theft for years by sleeping inside on a plywood bed overnight. He was armed with a hunting rifle and always slept with one eye open, the kids said. There was little theft.

A giant photo of the two is displayed at the stand.

“I miss him every minute,” Kurtz said of Marlin George.

“We have each other now,” Skylene George said.

The kids have made some changes. Where Marlin George might have invited a customer back behind the stand for a beer, everything is clean and sober now.

Alcoholics Anonymous meetings now take place behind the stand.

With the new longhouse at the “slab” in Suquamish, people will no longer be lighting off their fireworks there, and instead they can go to the side lot at George’s. 

People who want to shoot off fireworks across the water also are welcome to use George’s Lane to get to the beach, the George kids said.

The kids — they’re actually in their 20s — say they don’t expect financial fallout from the recession. Like Pratt, they are depending on “repeat offenders,” Duran George said. He expects as many as 500 visitors will hit the stand Saturday afternoon.

Fireworks stand owners expect family packs will be the customer favorites again this year. They range from only $15 at Baines’ stand in Bremerton or so to about $1,200 at George’s, typically bought by the rich waterfront homeowners on Bainbridge Island or Port Orchard, according to Duran George.

Communities in Kitsap County are reporting about the same number of stands this year as last, except for Bremerton, where the 13 permits issued is more than doubled from last year.

Along with the recession, that could spread a little bit less wealth among more stands.

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By Rachel Pritchett

rpritchett@kitsapsun.com

BREMERTON

Saturday and Sunday meals for the poor and hungry will continue in Bremerton, even though The Lord’s Neighborhood Diner has temporarily closed.

A group called Fresh Manna Feed Coalition has stepped in to offer meals between 3 and 5 p.m. both days at the Family Church of God Pentecostal church at 1003 Fifth St.

The free meals will begin this Saturday and continue throughout the summer until The Lord’s Neighborhood Diner reopens in September.

The Diner, at St. Paul’s Episcopal Church on Callahan Drive, was doing weekend feeding duty for years, but closed for the summer so organizers could set up some new policies and procedures.

Of the new effort, Bishop Job Sepetaio, who is with Fresh Manna and Family Church of God, said “Everybody comes.” Food for persons to take home will be on hand, as well.

When The Lord’s Neighborhood Diner closed, others scrambled to fill the weekend void, including the Salvation Army.

Maj. Jim Baker said he was preparing to offer space for any group. But his organization backed off when Fresh Manna Feed Coalition stepped forward.

Meals at the historic church already are taking place Mondays, Wednesdays and Fridays, Sepetaio said.

“We’re feeding a lot of people right now since the economy is down,” Sepetaio said, saying the number served has been in the hundreds.

The coalition consists of individuals and some Bremerton churches.

Persons wishing more information can call Sepetaio at (360) 550-7896. Donations can be sent to Fresh Manna Feed Coalition, P.O. Box 343, Port Orchard, 98366.

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Now at 8,546 …

NEW YORK (AP) — Investors are looking to keep stocks in positive territory on the last day of the second quarter.

U.S. stock futures are slightly higher Tuesday morning, extending modest gains logged the previous day and following mixed trading in overseas markets.

After a relatively quiet day of trading on Monday, investors are hungry for more signs that the economy is not only improving but growing. Later Tuesday morning, investors will get a reading on consumer confidence. Economists polled by Thomson Reuters are expecting June’s consumer confidence figure to rise to 57 from 54.9.

As the April-June period coming to a close, analysts say the market could be a bit more volatile as investment managers make last-minute changes to their portfolios.

With the benchmark Standard & Poor’s 500 index up 16.2 percent since the start of the second quarter, some money managers are likely to buy up stocks and other assets to bolster their quarterly reports to their clients.

Ahead of the market’s open, Dow Jones industrial average futures rose 20, or 0.2 percent, to 8,478. Standard & Poor’s 500 index futures rose 3.10, or 0.3 percent, to 924.30, and Nasdaq 100 index futures gained 4, or 0.3 percent, to 1,485.50.

On Monday, a surge in oil prices drove energy, industrial and material stocks higher and helped push the Dow up nearly 91 points. The S&P 500 index added 8 points, while the Nasdaq rose 5.

After months of economic data showing that the recession was not getting worse, investors have grown weary and nervous that the economy’s rebound won’t be as robust as they envisioned. This fear has put a dent in the market’s three-month advance that saw stocks jump more than 30 percent off of 12-year lows in early March.

On Wednesday, investors will get a key reading on the manufacturing sector, while Thursday brings the much anticipated monthly jobs report. Markets are closed Friday in observance of the Independence Day holiday.

Bond prices were slightly lower early Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.49 percent from 3.48 percent late Monday.

The dollar was mostly lower against other major currencies, while gold prices rose.

Light, sweet crude rose 7 cents to $71.56 a barrel in electronic trading on the New York Mercantile Exchange.

Overseas, Japan’s Nikkei stock average rose 1.8 percent, while Hong Kong’s Hang Seng index fell 0.8 percent. In late morning trading in Europe, Britain’s FTSE 100 was up 0.1 percent, Germany’s DAX index was up 0.1 percent, and France’s CAC-40 slipped 0.04 percent.

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Bloggers,

I’ll be writing more here soon on yesterday’s big Port of Bremerton meeting to prioritize efforts for the next three years. Look for more attention to the Bremerton waterfront, and maybe a development plan in place by then. 

Rachel Pritchett, rpritchett@kitsapsun.com, 475-3783

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NEW YORK (AP) — A report on manufacturing activity shows the sector contracted less than expected in June, posting its best showing since last August and another sign that a recovery may be near.

Manufacturing sectors overseas also are rebounding a bit, according to new reports, but other U.S. economic data were mixed. Construction spending fell more than expected in May, while pending home sales edged up.

The Institute for Supply Management, a trade group of purchasing executives, said its manufacturing index registered 44.8 in June, up from 42.8 in May. Analysts polled by Thomson Reuters had expected a reading of 44.5.

“A slow recovery for manufacturing is forming,” said Norbert Ore, chair of the ISM’s manufacturing business survey committee.

A reading below 50 indicates contraction. June’s reading marks the 17th straight month of deterioration in manufacturing.

Still, there is an encouraging pattern in recent ISM manufacturing reports. This is the second straight month that the index has been above 41.2 after seven consecutive declines. The ISM says a reading above that level is consistent with expansion in the overall economy — even though the manufacturing sector itself is still shrinking.

“This latest gain suggests the recession may finally have ended at the close of the second quarter, a mere 19 months after it started,” said Capital Economics’ analysts. “However, there is little evidence that this tepid recovery will turn into anything much stronger.”

Other countries’ manufacturing sectors also are recovering. Two reports from China, the world’s third-largest economy, showed small gains in surveys of manufacturers. Elsewhere, the purchasing managers index from the 16-nation euro zone showed a slower pace of decline in June, and the equivalent index in Britain hit a 15-month high of 47.

British manufacturing output rose for the first time since March 2008. Big Japanese manufacturers reported being slightly more optimistic about business conditions, but cut capital spending sharply.

While encouraging, the ISM survey hasn’t noted growth in manufacturing since January 2008. The manufacturing index includes new orders, production, employment, inventories, prices, and export and import orders. It is based on a survey of the Tempe, Ariz.-based ISM’s members from 18 industries.

On Wall Street, stocks rose after the better-than-expected ISM manufacturing report. The Dow Jones industrial average added about 105 points in afternoon trading, and broader indices also moved higher.

But not all the economic news was as rosy. A Commerce Department report showed that construction spending fell 0.9 percent in May, nearly double the 0.5 percent economists had expected, and activity in the past two months was revised lower.

Construction rose 0.6 percent in April, down from the 0.8 percent increase originally reported. A March increase of 0.4 percent was replaced with a decline of the same amount. That left the April gain as the only increase in the past eight months.

The National Association of Realtors, meanwhile, said pending home sales rose for a fourth straight month in May. The index of pending sales, which tracks signed contracts to purchase previously owned homes, rose 0.1 percent to 90.7, better than expected.

Housing and autos are two sectors with ongoing woes, Ore said, while manufacturers connected to the computer, electronics and petroleum industries might say their tides have turned.

However, a good sign for all industrial companies was shrinking customer inventories. Low inventories mean that businesses will need to restock from manufacturers, prompting new orders and production. The production index grew to 52.5 in June from 46 in May — the first growth reading after nine months of decline.

But new orders shrank to 49.2 after growing in May for the first time in 17 months. Growth in new orders is a perquisite for ramping up production and hiring.

The panic caused by the crash in financial markets late last year has finally worked its way through manufacturing, said Chris Waldman, economist for the Manufacturers Alliance/MAPI, an industry trade group.

However, a strong recovery in manufacturing is being crimped by weakening economies worldwide and a reluctance by businesses to ramp up capital spending — which means ongoing job cuts.

“Manufacturing is just not going to be a job producer,” Waldman said.

The pace of manufacturing layoffs may have slowed since this winter, but it has not stopped.

Farm machinery company Deere & Co. said Tuesday that 800 salaried employees, or 3 percent of its salaried work force, took a voluntary buyout offer. That’s four times as many as the company expected when it announced the program in April.

In June, Cessna Aircraft Co., which makes corporate jets, said it would cut 1,300 jobs by this summer on top of 6,900 earlier layoffs.

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Kitsap Sun staff

Bremerton

The Port of Bremerton has hired Scott Ware, the former editor of the Kitsap Sun, to help build public trust shattered when port commissioners quietly passed an unpopular property-tax increase to build the new Bremerton Marina.

Ware was hired on a six-month, $40,000 contract. His title will be special adviser for community outreach and sustainability.

“I believe Scott will help the port become more responsive to the public and develop a stronger dialogue with the community,” said new port Chief Executive Officer Cary Bozeman.

Ware served as Kitsap Sun editor for seven years before retiring at the end of 2008. Since then, the Poulsbo resident has studied sustainable business at Bainbridge Graduate Institute.

“Scott is uniquely well-suited to help us because of his credibility in the community, his reputation for integrity as a newspaper editor and his commitment to sustainability,” Bozeman said.

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