Monthly Archives: March 2009

Fed to Mull Recession Resurrection

WASHINGTON (AP) — Federal Reserve policymakers are gathering to examine ways to lift the country out of financial and economic turmoil as Americans fume over the government’s handling of AIG’s bailout.

Fed Chairman Ben Bernanke and his colleagues open a two-day meeting Tuesday afternoon, where they also will take fresh stock of financial and economic conditions. They are all but certain to leave a key bank lending rate at a record low to try to brace the economy, which has been stuck in a recession since December 2007.

Fed officials meet as public outrage over government bailouts of financial institutions such as American International Group Inc. has swelled.

Fury Growing Fast Over Fat AIG Bonuses

WASHINGTON (AP) — Senate Democrats vowed Tuesday to all but strip AIG executives of their $165 million in bonuses, as expressions of outrage swelled in Congress over eye-catching extra income for employees of a firm that has received billions in taxpayer bailout funds.

“Recipients of these bonuses will not be able to keep all of their money,” declared Senate Majority Leader Harry Reid, in an unusually strong threat delivered on the Senate floor.

“If you don’t return it on your own we will do it for you,” said Chuck Schumer of New York.

The bonuses were paid legally, part of a program that had been disclosed in advance in filings that American International Group Inc. made with the government.

Senate Democrats threatened to tax the bonuses at up to 91 percent through narrowly written legislation, said Schumer, if AIG does not return the money voluntarily. Republicans have said President Barack Obama should have done more to prevent the executives from accepting the bonuses in the first place.

Senate Finance Committee Chairman Max Baucus asked, “What is the highest excise tax we can impose that will stand up in court? Let’s find out what it is.”

In the House, Reps. Steve Israel, D-N.Y., and Tim Ryan, D-Ohio, introduced a bill that would that would tax at 100 percent bonuses above $100,000 paid by companies that have received federal bailout money.

“It boggles my mind how these executives can be so unaware of what the American people are going through,” said Ryan. He called his proposal “a wakeup call that the days of arrogance and greed on Wall Street are coming to an end. We will use any means necessary.”

The Internal Revenue Service currently withholds 25 percent from bonuses less than $1 million and 35 percent for bonuses more than $1 million.

As outrage over the American International Group Inc. bonuses rose across the political spectrum, the Obama administration said it was trying to put strict limits on how future government bailout dollars could be used. But sharp questions have been raised about what the administration knew about the bonuses — and when.

Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee, chastised the administration, saying Treasury Secretary Timothy Geithner should have blocked the payouts.

“I don’t know if he should resign over this,” the Alabama senator said. “He works for the president of the United States. But I can tell you, this is just another example of where he seems to be out of the loop. Treasury should have let the American people know about this.”

AIG also was raked over the coals at a banking committee hearing on regulating the insurance industry.

“One way or another, we’re going to try to figure out how to get these resources back,” said Christopher Dodd, D-Conn., the panel’s chairman.

“This is ridiculous,” exclaimed Sen. Jon Tester, D-Mont. He said AIG executives “need to understand that the only reason they even have a job is because of the taxpayers.”

Edward Liddy, the CEO of American International Group Inc., is to testify Thursday before a House subcommittee.

On Monday, President Barack Obama lambasted the insurance giant for “recklessness and greed” and pledged to try to block payment of the bonuses. Obama said he had directed Geithner to determine whether there was any way to retrieve or stop the bonus money.

The financial bailout program remains politically unpopular and has been a drag on Obama’s new presidency, even though the plan began under his predecessor, President George W. Bush. The White House is aware of the nation’s bailout fatigue; hundreds of billions of taxpayer dollars have gone to prop up financial institutions that made poor decisions, while many others who have done no wrong have paid the price.

Sen. Charles Grassley suggested in an Iowa City radio interview on Monday that AIG executives should take a Japanese approach toward accepting responsibility by resigning or killing themselves.

“Obviously, maybe they ought to be removed,” the Iowa Republican said. “But I would suggest the first thing that would make me feel a little bit better toward them if they’d follow the Japanese example and come before the American people and take that deep bow and say, I’m sorry, and then either do one of two things: resign or go commit suicide.”

Grassley spokesman Casey Mills said the senator wasn’t calling for AIG executives to kill themselves, but said those who accept tax dollars and spend them on travel and bonuses do so irresponsibly.

New York Attorney General Andrew Cuomo said he has issued subpoenas for the names of AIG employees given bonuses despite their possible roles in its near-collapse. Cuomo said his office will investigate whether the bonus payments are fraudulent under state law because they were promised when the company knew it wouldn’t have the money to cover them. AIG reported this month that it lost $61.7 billion in the fourth quarter of last year, the largest corporate loss in history, and it has benefited from more than $170 billion in a federal rescue.

Tuesday Dow Advances 47 Points

NEW YORK (AP) — Wall Street managed a tentative advance Tuesday as investors took in a mix of economic and corporate news and waited for the Federal Reserve to issue its latest assessment of the economy.

The government issued better-than-expected reports on housing and inflation, while Alcoa Inc. said it was cutting its dividend and Nokia Corp. announced it was laying off 1,700 workers.

The market fluctuated throughout the session. Investors are unlikely to make many moves ahead of the Fed’s two-day meeting that ends Wednesday afternoon, said Craig Peckham, a market strategist at Jefferies & Co. The Fed is widely expected to leave interest rates at their current historically low levels, but the market will be keen to see how the central bank sizes up the economy in its statement that accompanies its rate decision.

Still, the market was showing signs of keeping the more upbeat tone it has had over the past week, even after its four-day rally was cut short Monday. Peckham said it was encouraging that Alcoa’s dividend cut did not send “shockwaves” through the market, as it would have done just weeks ago.

“Investors are able to brace themselves for this kind of news” now, he said.

Brett D’Arcy, chief investment officer at CBIZ Wealth Management, said relatively flat trading the past two days is “a great sign” because it means investors are holding on o gains from week and aren’t trying to grab quick profits. That is an indication of positive momentum and a base forming for the market, he added.

Both the Dow Jones industrial average and Standard & Poor’s 500 index gained around 10 percent last week.

In early afternoon trading, the Dow rose 26.20, or 0.36 percent, to 7,243.17. The S&P 500 rose 5.73, or 0.76 percent, to 759.62, while the tech-laden Nasdaq composite index rose 19.29, or 1.37 percent, to 1,423.31.

D’Arcy said technology companies could be getting an extra boost as investors move back into those stocks after they fell sharply Monday. He said the industry’s relative fundamental strength makes it attractive for long-term investors.

The Russell 2000 index of smaller companies rose 4.37, or 1.13 percent, to 390.73.

Advancing issues outpaced decliners by about 8 to 5 on the New York Stock Exchange, where volume came to 361 million shares.

Tuesday’s economic data followed a handful of reports over the past few weeks that were better than expected; that gave some support to stocks.

The Commerce Department said new home construction rose unexpectedly to an annual rate of 583,000 in February from a revised 477,000 in January. Economists forecast construction would drop to a pace of around 450,000 units, according to Thomson Reuters. Building permit applications, a key measure of future activity, also rose unexpectedly.

Tim Courtney, the chief investment officer at Burns Advisory Group, said the report was encouraging and could be part of an initial recovery in the housing market.

“We could be in the very early stages of some kind of normalization” in housing, he said. A housing recovery is widely seen as a key to helping end the recession.

Separately, the Labor Department said wholesale prices rose 0.1 percent in February after rising 0.8 percent in January. Economists predicted the producer price index would rise 0.4 percent during the month. The government said core inflation, which excludes energy and food, edged up 0.2 percent in February after rising 0.4 percent in January.

While investors wait for the Fed meeting to end, Peckham said individual company announcements can have a bigger impact on the market.

Alcoa became the latest Dow Jones industrial to lower its dividend to conserve cash. The aluminum maker said after the market closed Monday it was cutting its quarterly dividend 82 percent to 3 cents. It also said it plans to sell stock and debt to help reduce annual costs by more than $2.4 billion.

“We’re seeing a management team remind us just how tough the fundamental economy is performing,” Peckham said. Alcoa fell 52 cents, or 8.5 percent, to $5.60.

Nokia, the world’s top mobile phone maker, said it will lay off 1,700 people worldwide to cut costs. Nokia fell 21 cents to $11.14. The mobile phone market has been suffering as consumers spend less during the recession.

Meanwhile, bond prices mostly rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.93 percent from 2.96 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, was flat at 0.23 percent compared with late Monday.

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

Oil prices rose $1.08 to $48.43 a barrel on the New York Mercantile Exchange.

Overseas, Japan’s Nikkei stock jumped 3.2 percent. Britain’s FTSE 100 fell 0.8 percent, Germany’s DAX index declined 1.9 percent, and France’s CAC-40 fell 1.4 percent.

Monday Dow Continues Four-Day Rally; Now at 7,226

NEW YORK (AP) — Wall Street rallied for a fifth straight session Monday after reassuring comments from Federal Reserve Chairman Ben Bernanke and encouraging news from another big bank. The Dow Jones industrials rose more than 100 points, following other world markets higher.

Bernanke said Sunday that the recession would probably end this year if the government’s efforts to revive the banking industry succeed, but he cautioned that the task would be difficult. In an interview with CBS’ “60 Minutes,” Bernanke said the government needs to get banks to lend more freely and financial markets to work more normally.

David Hefty, chief executive of Cornerstone Wealth Management in Auburn, Indiana, said Bernanke’s comments gave the market a lift.

“Absolutely it’s reassuring,” Hefty said. “The American people look to these people for that hope.”

Hefty said Bernanke’s caveat that the end of the recession is predicated on the success of the government support for struggling banks is still a major question facing the economy and markets.

Bernanke’s comments about a possible end to the recession and the need for a recovery in banking and lending were similar to but seemingly more optimistic than testimony he gave before Congress last month. Stocks bounced higher then, but in subsequent sessions plunged and took the Dow and S&P 500 to their lowest levels in more than a decade as investors succumbed to pessimism about the economy.

The market’s tone has changed dramatically in the past week as better economic news — including word that Citigroup Inc. had operated at a profit in January and February — had investors betting that Wall Street had finally hit a bottom. The Fed chairman’s comments Sunday helped reinforce the changing sentiment on the Street.

Wall Street also had good news Monday from Britain’s Barclays PLC, which also disclosed that it has been performing well in 2009. Last week, both Citigroup and Bank of America Corp., reported improving trends for January and February.

David Kelly, chief market strategist at JPMorgan Funds, said the comments from some of the world’s big banks are causing investors to re-evaluate their expectations.

“The statements from banks are very encouraging,” he said. “It’s premature to talk about a turn in the economy but the stock market is priced as if the economy isn’t ever going to turn around.”

In midafternoon trading, the Dow rose 116.76, or 1.6 percent, to 7,340.74. The Standard & Poor’s 500 index rose 11.37, or 1.5 percent, to 767.92, while the tech-heavy Nasdaq composite index dipped 2.66, or 0.2 percent, to 1,428.84.

About five stocks rose for every one that fell on the New York Stock Exchange, where volume came to 901.8 million shares.

“We’re starting to build a base here,” said Douglas Kreps, a managing director at Fort Pitt Capital Group. He said that each day that goes by without disappointing news can help further strengthen the market’s legs.

“Being able to go a week or more without bad news,” is a good sign, he said.

Gains on overseas market also fed the advance in the U.S. Japanese financial stocks surged on reports that the government would bolster their capital, while British investors were reassured by the Barclay’s news. Japan’s Nikkei stock average rose 1.8 percent. Britain’s FTSE 100 gained 2.9 percent, Germany’s DAX index rose 2.3 percent, and France’s CAC-40 rose 3.2 percent.

The KBW Bank Index, which tracks 24 of the nation’s largest banks, surged 7 percent to 27.39. Shares of Citigroup rose 77 cents, or 43.3 percent, to $2.55. Bank of America gained $1.12, or 19.4 percent, to $6.88. JPMorgan rose $1.42, or 6 percent, to $25.17, while Wells Fargo rose $1.05, or 7.5 percent.

Chris Johnson, president of Johnson Research Group, noted that some short covering was still helping to boost the market, though not to the extent as it did at the beginning of the rally last week. Short covering occurs when investors who sold borrowed stock on expectations the market would fall are forced to buy shares to repay their debts.

Investors were able to shake off more weak economic data. The nation’s industrial output fell for the fourth straight month in February, falling 1.4 percent and hitting the lowest level in more than 50 years of record keeping.

Momentum from last week’s rally is carrying over to support Monday’s trading. Hefty said gains are likely to continue into at least Tuesday.

“Investors have a stampede mentality,” Hefty said. “They stampede in and they stampede out.” He added that the current rally is probably not sustainable, and mostly just helping bring the market back to a range near the previous lows seen in November.

Bond prices fell Monday as investors gravitated toward stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3 percent from 2.90 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.23 percent from 0.20 percent late Friday.

The dollar mostly fell against other major currencies. Gold prices also fell.

Light, sweet crude rose 56 cents to $46.81 per barrel on the New York Mercantile Exchange.

The Russell 2000 index of smaller companies rose 6.99, or 1.8 percent, to 400.08.

Kitsap Auto Dealers Negotiate Rough Road

While some have had to consolidate space and trim staff, others say they can weather the recession intact.

By Rachel Pritchett

Few sectors of the national economy have been left untouched by the current recession, with cutbacks and changing strategies becoming the norm for many businesses.   

Large car American companies have been at the forefront of the issue for months now. And with the economy still stumbling, the effects have trickled down to the local level.   

With U.S. auto sales down 41 percent in February from a year ago, at least one Kitsap County dealership is significantly consolidating its operations. And others are reporting a shift in demand as their industry adapts to the recession.

“The economic climate certainly has forced us to circle the wagons,” said Rick Hern, president of Courtesy Auto Group of Poulsbo.

The dealership has combined its Chevrolet and Ford showrooms, consolidated its lots, and cut staff. It has also reduced its inventory 40 percent in the last six months, Hern said.

Courtesy also recently closed a Port Townsend dealership, with leaders eyeing reduced Port Townsend ferry service and an upcoming six-week closure of the Hood Canal bridge to replace its east half.

Consolidation of showroom space and other measures have also occurred at Haselwood Auto Group in the West Hills Auto Plex in Bremerton, and other dealers are thinking creatively these days to make it.

“Everybody’s hurting right now,” said Kevin Grey, general manager of Grey Chevrolet of Port Orchard, who said he has not had to lay off staff.

But auto dealers are noticing some changes that help the bottom line. Several interviewed say customers who need a set of wheels are choosing used cars over new cars. The shift is so strong, some said, that in some cases prices for used cars are rising with the demand.

Liberty Bay Auto Center of Poulsbo, which sells just used cars, has added a second used-car buyer to its employee stable, and the dealership is having to pay as much as 5 percent more per car.

“Our sales are up,” said Doug Haughton, director of operations for Liberty Bay.

Depending on the deal, that added cost might end up with the customer.

Kitsap customers have moved away from the economy cars and hybrids that began to gain favor last summer when gas prices were $4 a gallon. They’ve returned to their perennial favorite — pickup trucks — both big and small, new and used, some dealers said.

Also still selling nationally are Kias, Hyundais and Subarus, according to industry watcher

Lending is more difficult to get, dealers said, unless buyers have good credit. For buyers with marginal credit, “it is significantly more difficult to place those loans,” Hern said.

But money’s still out there.

Kitsap Credit Union, a leader in the local car-loan business, lent out more than $18 million in February for used- and new-car purchases, said Ron Rogerson, KCU senior vice president of marketing.

Many dealers’ eyes are monitoring the health of the nation’s automakers, particularly General Motors. GM this month reaffirmed its desire to steer clear of bankruptcy, and Ford Motor Co. and unionized workers agreed to contract changes that will cut costs for the troubled company, according to the Associated Press.

Strapped cities in Kitsap County are sorely in need of the lost sales-tax revenue they relied on during good times from local car sales during. Finance managers from Bremerton, Poulsbo and Port Orchard all reported less revenue from sales tax from cars.

In Bremerton, sales-tax receipts for sales of cars and car parts was down between 16 percent and 26 percent from December and February over those months a year ago. Andy Parks, director of financial services, called the drop significant.

In Port Orchard, sales-tax receipts from car sales dropped 24 percent between 2007 and 2008, according to Kris Tompkins, city treasurer.

In Poulsbo, budget writers decreased projected revenue from sales-tax receipts by 7.5 percent in the current budget, and that seems to be on target, said Finance Director Debbie Booher.

Meanwhile, car dealers, especially the ones who have been around awhile, are optimistic they can survive.

“We’re capitalized well to make it through this,” said Hern, of Courtesy Auto Group. 

“I’m part of the community. My father (John Hern) is part of the community. And we’re going to stay part of the community.”

Kitsap Business Briefs

Kingston Roasters 

Certified Organic


CB’s Nuts, the locally-owned, small-batch roaster in Kingston, has been certified as organic by the U.S. Department of Agriculture.

The state Department of Agriculture’s Organic Food Program conducted the in-depth organic certification evaluation process on behalf of the USDA National Organic Program.

CB’s Nuts sources conventional raw peanuts from Texas and organic raw Valencia peanuts from Sunland, Inc., in New Mexico. The raw products are roasted in CB’s Nuts’ certified organic facility and delivered to retail outlets across Washington and Oregon, including Central Markets, Town & Country Markets, Whole Foods, Metropolitan Markets, Haagen Stores, Top Foods, Thriftway, Red Apple Markets, Madison Co-op, PCCs, Sno-Isle Co-op and the New Seasons Stores in the Portland area.

CK Veterinarian
Buys NK Clinic


Dr. Craig Adams of Silverdale has purchased Poulsbo Animal Clinic and will continue to offer small-animal veterinary medicine, surgery and dentistry in North Kitsap.

Craig and his wife, Dr. Bethany Adams, both graduated from Washington State University of the College of Veterinary Medicine in 2003. They moved to Kitsap County in 2004 after spending a year in Champaign, Ill., where Craig worked in private practice and Bethany completed an internship in medicine and surgery.

For the past five years, Craig practiced at Kitsap Veterinary Hospital in Port Orchard, and also created a fish veterinary business in his spare time. Bethany practiced at VCA Central Kitsap Animal Hospital in Poulsbo for several years, but currently is staying at home with their young children.

Poulsbo Animal Clinic is located in the Poulsbo Village Shopping Center, 19494 F Seventh Ave. NE, and is open from 7:30 a.m. to 6 p.m. Monday through Friday. They plan an open house from 11 a.m. to 3 p.m. March 28. Reach them at (360) 779-4640.

Certification Allows More Patients for Bremerton Facility


Ashley Gardens, a memory care community in East Bremerton, received certification from the state Department of Health to care for additional residents. The facility now can care for up to 40 residents. “With the growing need in our community, we are pleased that we could expand our ability to care for Bremerton seniors,” said Connie Larkin, interim executive director. 

Poulsbo Company
Named Safest


Poulsbo’s General Construction Company was named one of the safest construction companies in America after placing first in the heavy division of the Construction Safety Excellence Awards from the Associated General Contractors of America.

General Construction Company was recognized for the strength of its safety program and its safety performance during 2008 at the AGC’s 90th annual convention in San Diego, Calif. Award winners were selected by a panel of distinguished construction safety professionals from the public, private and not-for-profit sectors.

On the Job

Rand Riedrich has been appointed president-elect and Michael Strube vice president of the Port Orchard Chamber of Commerce. Riedrich is a certified business adviser with the Olympic College/Small Business Development Center and Strube is a membership marketer with Costco-Silverdale. Patti Kirkpatrick, Port Orchard city clerk, Jay Seaton, financial adviser with Edward Jones Investments, and Dave Foote, executive director of United Way of Kitsap County, were appointed to the chamber board of directors to fulfill unexpired terms.

Peter Phibbs has been hired as pottery class instructor at Claywerks Ceramics & Pottery Studio in Bremerton. He comes from the Colorado Mountain College in Aspen, Colo., where he was head of the Ceramics Department.

Art Castle, executive vice president of the Home Builders Association of Kitsap County and secretary of the Kitsap Home Builders Foundation, has received a certificate from Washington State University for a Low Impact Development Technical Workshop series. It is based on attending each of the four two-day workshops in the series and completing a test on each segment of the series and a final test. 

Dan Weedin, a Poulsbo-based consultant and trainer and president of the Rotary Club of Poulsbo-North Kitsap, was a facilitator at the Rotary Pacific Northwest President-Elects Training program earlier this month in Seattle. Weedin was responsible for training 29 presidents-elect to help them improve their leadership, communication, and team building skills. Weedin is the current president of the Rotary Club of Poulsbo-North Kitsap and has been a Rotarian since 1993.


March 21

What: A first-time homebuyer class will be held March 21 by the Kitsap Housing Coalition in conjunction with the Washington State Housing Finance Commission and the Bremerton Housing Authority. The five-hour course is designed to educate prospective home buyers on the home buying process, available assistance programs, credit repair, planning and budgeting, how to choose a realtor and negotiating. The course is required for many available first-time homebuyer and down-payment assistance programs. The certificate issued is good for two years. 

When: 9 a.m. to 3 p.m.

Where: Westpark Community Center, 76 Russell Road in Bremerton.

Cost: Free.

Reservations: Seating is limited; contact Melanie Rowe at Kitsap Credit Union, (360) 662-2056 or e-mail her at


March 25

What: The Port Orchard Chamber of Commerce will hold a progressive business after hours gathering March 25. It provides an opportunity to network and enjoy refreshments.

When: 5 to 7 p.m.

Place: Solid Rock Cafe, Debbie Macomber’s A Good Yarn Shop, Springhouse Dolls and Gifts and Victorian Rose Tea Room, all at 1140 and 1130 Bethel Road across from the Port Orchard Post Office. 

Info: Call (360) 876-3505.


April 21

What: West Sound Technology Association and Kitsap Economic Development Alliance will co-host “A Visual History of the Puget Sound Tech Industry.” Puget Sound is home to thousands of thriving technology companies in a variety of sectors including software, aerospace, digital media, medical devices, telecommunications, Web services and more. Guest speaker will be Ken Myer.

When: 8 to 10 a.m.

Where: Silverdale Beach Hotel, 3037 NW Bucklin Hill Road in Silverdale

Cost:: $20 for KEDA and WSTA members; $25 for non-members

Info: West Sound Technology Association, P.O. Box 1102, Silverdale, WA 98383

Kitsap Sun staff

103 Condo Units Proposed Near Evergreen Park in Bremerton

By Rachel Pritchett


A developer of The 400 condominium project that was part of the downtown waterfront redevelopment now is proposing a 103-condo project overlooking Evergreen-Rotary Park and Port Washington Narrows.

In this economy, it’s too soon to set a definite timeline for construction and occupancy, Mark Goldberg of Tiferet LLC of Seattle said. 

However, recent project papers filed with the city of Bremerton allude to completion of the Evergreen-Rotary Park project some time between 2010 and 2014.

The building would be at the southeast corner of McKenzie Avenue and Sheldon Boulevard off the south end of the park. It would be near a proposed boardwalk that would link the downtown waterfront with the park. Goldman has been on an advisory panel for the boardwalk.

Four stories of high- and middle-income units overlooking the park and Smith Cove would sit atop two levels of parking with about 138 stalls. Main-floor retail space for uses like a coffee shop or an ice-cream store would line a public-plaza area off Sheldon.

The building would be 61 feet high off Sheldon. Exterior treatment would be brick, stucco, panel and plank.

As many as 200 people could live there, creating about 825 additional vehicle trips per day on adjacent streets, according to papers filed with the city. Vehicle entry to the lower story of parking would be off Sheldon. The entry for cars for the higher parking story would be off McKenzie.

Because a portion of the project is within 200 feet of the narrows, a Shoreline Substantial Development Permit is being sought. A public-comment period with the city’s Department of Community Development extends through April 7.

Several existing houses on the one-acre site, along with some garages, would have to be demolished.

Jeri Tucker lives just outside the city, but her 94-year-old mother lives at the foot of Pacific Avenue near the proposed project. Tucker fears construction will disturb century-old homes like her mother’s that have fragile lath-and-plaster foundations. Tucker also believes the proposed development is too intensive.

“A development of this size and type does not fit the character of the existing use,” she wrote to the city. Cars must edge by each other now on narrow streets; more congestion would only make things worse.

“Allowing the proposed development will hinder access to, and use of, the park by the community it serves,” she wrote.

Infrastructure like sewers would be overwhelmed, she said.

Correspondence from the city to the project’s architect states the current sewer system along Shelton couldn’t handle 103 more units, and the developer would have to replace and upgrade the sewer.

The building would have 150,305 square feet of space.

Goldberg has also developed other local residential projects like Waterside Lane off Wycoff Avenue and 25th Street and The Bridge off Campbell Way in Manette.

Will Economy Sink Foot Ferry Service on Summertime Sundays?

By Rachel Pritchett


Port Orchard Mayor Lary Coppola is floating an idea to bring foot ferries back on Sundays just in the summertime. But the economy may pull the plug.

Coppola wants his city to partner with the city of Bremerton and the Port of Bremerton to absorb the cost, roughly $24,000 for four months’ of Sundays, or $8,000 per partner, according to interim Port CEO Tim Thomson.

Last month, budget-strapped Kitsap Transit sunk all Sunday service provided by the steadfast fleet of tiny ferries that shuttle riders among Port Orchard, Annapolis and Bremerton.

Port of Bremerton leaders who met Tuesday were buoyant about Coppola’s idea. Seattle tourists and visiting boaters in Bremerton could hop aboard for a quick trip to Port Orchard for sightseeing, or back the other way to Bremerton for supper at Anthony’s, they contemplated.

A Sunday run between the Bremerton and Port Orchard marinas also would help with the new Kitsap Harbor Festival planned for Memorial Day weekend, which is to have events at both marinas, they said.  

“I’m in favor of it,” Commissioner Larry Stokes announced at the port study session on Tuesday. Port commissioners even talked about offering the service free to riders, compliments of the port, for a little added public relations. 

But Bremerton Mayor Cary Bozeman, who also heard about Coppola’s
proposal, fired off an e-mail to port leaders Tuesday that reminded them that financing would be tough on his end. 

The city’s sales-tax receipts are down the drain.

“To find new monies for anything is going to be very difficult,” Bozeman said.

No one knows yet whether Coppola’s idea would work without Bremerton’s participation, or whether the Sunday ferries could run just during summertime festivals and holiday weekends, to get the cost down.

Port commissioners directed Thomson to draw up a proposed interlocal agreement for later consideration.

The average annual ridership for Sundays was 495 riders, but much higher in the summer