Top 10 stories of 2008

From the national economic crisis to land acquisitions and developments, we look back on the past 12 months

Paige Richmond, Susan Schell and Marques Hunter

of the Gateway

At midnight, we’ll ring in 2009 with optimism. In the wake of one of the worst economic conditions since the Great Depression, we hope the next 12 months will bring the kind of change most Americans need. But before we get that far, we took a step back to remember the top stories from 2008, from Pierce County’s acquisition of Tacoma Narrows Airport, to the growth of Uptown Gig Harbor, to the toll rate for the Narrows bridge rising, then staying put. Where can we expect to go from here? Hopefully forward.

Our picks

The Peninsula Gateway newsroom and other staffers used a “Year in Review” ballot with more than 40 stories that were pulled from headlines and trends throughout 2008. Each staff member voted on their top 10 selections based on newsworthy values, the most important of which was community impact. Was there a story you felt we left off our list? Send your thoughts via e-mail to gatewayeditor@gateline.com.

Top 10 list

1. Economic crisis hits home

2. St. Anthony Hospital

3. Tacoma Narrows Airport

4. Crash at Harbor Inn building

5. City’s sewer outfall project

6. Growth at Uptown Gig Harbor

7. Discount remains for Good to Go!

8. Gig Harbor police sergeant arrested

9. Boys & Girls Club developments

10. (tie) Harbor History Museum

10. (tie) Olympic Drive construction

Honorable mention: Gig Harbor’s original fishing families are still out there — they’re just harder to find; Community loses icons (Rose Tarabochia, Nick Natiello, Bill Carter, Mike Stork, Ross Bischoff, Terri Hunziker, Theresa Malich, Don Thompson); Gig Harbor High School graduate earns Rhodes Scholarship; Key Peninsula Middle School wins national award; PenLight to spend $50 million for wind technology, looks to enter power generation business; Both sides of the aisle now represented in the 26th Legislative District; Peninsula High swimmer Lindsey Marchand breaks every school record but one relay event.

Others receiving votes: Eddon Boat cleanup process; Construction begins at state Route 16 and Burley Olalla Road; City of Gig Harbor attorney resigns; The first Gig Harbor Film Festival; Thunderbird sailboats return for 50th anniversary; Peninsula High boys basketball team earns second state tournament berth in school history; Community support for November house fire victims; Peninsula School District employee wins national award; Proposed development angers neighbors, splits council; Helicopter school shuts down at Tacoma Narrows Airport; Peninsula School District late start; Gig Harbor Canoe and Kayak Club lands third at nationals; Vaughn Elementary fourth-grader recovers from bicycle-trailer accident.

1. National economic crisis hits close to home

It was September when the talk of a recession started.

The country’s largest financial institutions were on the verge of bankruptcy before the federal government bailed them out. The Dow Jones Industrial fluctuated hundreds of points a day.

Complicated terms like sub-prime mortgages and credit default swaps would later explain the nation’s greatest economic crisis since the 1930s.

For Gig Harbor, the collapse of the housing market was a falling tide that lowered all boats. In October, the city saw its annual budget drop by more 25 percent — the result of decreased revenues from slowed housing and commercial developments, such as Quadrant Homes halting all work on a 120-home project in Gig Harbor North.

Three city employees were laid off and a handful of street improvements were delayed to make up for a $2 million revenue shortfall.

That same month, tightening credit markets caused a business deal between homebuilder Bennett Development and the Harbor History Museum to go bad, costing the museum $1.75 million in revenue and temporarily ceasing construction on the museum’s new downtown home.

Solutions for the crisis became the central point of the November election. Local candidates for two open state Representative positions in the 26th Legislative District suggested lowering property taxes, stimulating local businesses and retooling the state’s ferry system to correct an impending $6 billion state deficit in 2009.

For peninsula residents, the recession impacted pocketbooks. Trips across the Narrows bridges fluctuated and Pierce Transit ridership grew as gas prices rose and fell.

People donated less money to charitable organizations, as both the Gig Harbor Peninsula FISH Food Bank and the Key Peninsula Community Services Food Bank saw donations decrease.

Consumers tightened their purse strings over the holidays, and some local businesses reported up to 10 percent decreases in sales since October.

The fallout from the recession — which some economists say started more than 18 months ago — has been widespread, and it’s unclear when it will end.

Here’s hoping the biggest story of 2009 won’t again be the impact of the recession, but rather how the economy rallied and recovered.

— Paige Richmond

2. St. Anthony Hospital

This year was big for the medical field in Gig Harbor as construction on St. Anthony Hospital forged ahead.

“We are expected to open in mid-March,” said Gail Robinette, media relations manager for Franciscan Health Systems. “Of course, we would like to open as early as possible. The Milgard Medical Pavilion is slated to open in January.”

The medical pavilion is a separate building attached to the hospital with a sky bridge. The hospital site was abuzz with constant activity as the building took form. A healing garden also has emerged, and local artists have been commissioned to decorate the interior.

Franciscan has placed an emphasis on aesthetics and has worked to create a feeling of healing and well-being by opening the building’s interior with windows to capture natural light. St. Anthony also will have soothing colors throughout its open spaces, which hospital designers hope will offer families a peaceful setting for relaxation and reflection.

When the hospital opens its doors, it will be one of the largest employers west of the Narrows bridge. During the next few months, staff will go through orientation and training on the hospital’s new equipment, which will need to be installed and calibrated before use.

“We’re hiring trained doctors, nurses and lab technicians, but they have to be trained on the equipment,” Robinette said. “The individual equipment manufacturers come out and train people on the new technology. We will also have employee orientation for the hospital. The folks we hire have to be familiar with the building.”

The facility recently reached a fundraising milestone when it exceeded $9 million of its $10 million public campaign goal.

“We anticipate meeting the $10 million goal by the time the hospital opens,” Robinette said. “We had 564 individual donors, and out of those, 310 were first-time donors to the Franciscan Health System, which speaks to the enthusiasm for this hospital.”

— Susan Schell

3. Pierce County acquires Tacoma Narrows Airport

Pierce County took the reins of Tacoma Narrows Airport in Gig Harbor from the City of Tacoma in a $3 million acquisition that also included The Madrona Links Golf Course and the undeveloped parcel of land between the airport and the golf course.

Pierce County teamed up with the Peninsula Metro Parks District, which had an interest in recreational opportunities for the undeveloped land.

The original deal between the county and the City of Tacoma was for $5 million, but before the deal was sealed, an audit by the Federal Aviation Administration said the land couldn’t be sold for a profit and adjusted the value to $3 million.

The county will pay $1 million and PenMet Parks will pay the additional $2 million.

Terry Lee, the Pierce County Council member who represents the Gig Harbor and Key peninsulas, said the City of Tacoma still feels it’s a $5 million deal. So Pierce County agreed to give the City of Tacoma its interest in Cheney Stadium in exchange for the county’s interest in the County-City building.

Pierce County previously owned 50 percent of Cheney Stadium.

Lee said the next step will be to implement the Tacoma Narrows Airport Advisory Commission, which is currently being defined.

The advisory commission’s purpose will be to find middle ground between the City of Tacoma, Pierce County, PenMet Parks, business owners, pilots and citizens on issues affecting the airport and surrounding neighborhoods.

“The point is to decide what type of aviation-related uses and recreational uses will be appropriate,” Lee said. “We will encourage citizens that live around the airport to attend meetings and provide public comment with respect to what they think should occur up there.”

— Susan Schell

4. Crash at Harbor Inn building sparks change

For some Gig Harbor residents, the morning of Sept. 17 was like watching history repeat itself.

At 6 a.m., 25-year-old Seth Grigar drove his car nearly 80 mph down Pioneer Way, through a brick barrier and into the historic waterfront Harbor Inn Restaurant building.

Grigar, a Gig Harbor man, died in the crash, which was ruled accidental.

The collision nearly destroyed 1-2-3 Fit, the newly opened fitness center that replaced the Harbor Inn Restaurant, which closed in 2007.

Although no one was injured, owners and other building occupants felt unsafe there — especially since a similar accident happened once before. In 1989, an out-of-control dump truck crashed in to the Harbor Inn, killing a waitress. Due to a lawsuit, the City of Gig Harbor installed a flower planter barrier on Harborview Drive, in front of the Harbor Inn building.

But that barrier was destroyed in September’s crash, and residents pleaded with the city council to create something safe and stronger.

In 2009, they’ll get their wish: The city’s budget allots $400,000 for the design and installation of a reinforced concrete structure and lists the project as the second-highest street priority for the year.

The project also will include a yet-to-be-determined traffic calming device higher up on Pioneer Way, as another preventative measure.

— Paige Richmond

5. Sewer outfall project

The Gig Harbor Waste Water Treatment Plant project endured a number of obstacles before it held its official groundbreaking ceremony.

Earlier in the year, residents and business owners in the Finholm District were concerned about the construction disturbing business.

City leaders planned a $1.7 million on-shore fix to the city’s ongoing sewer issues. The initial impact affected local roads surrounding North Harborview Drive drive for four to six weeks.

Later in the year, the city struggled to gain permission from the U.S. Coast Guard to bore through the spit at the base of the harbor, where a lighthouse and “Welcome to Gig Harbor” sign now stand.

But through hard-earned efforts, city leaders gained permission.

In March, the project received its best news when state Rep. Larry Seaquist, D-Gig Harbor, sponsored a $1 million addition to the Capital Appropriations Budget one day before the legislative session ended. It passed full legislation just days later.

Finally, elected officials and city employees were on hand in early October to ceremoniously break ground on the larger $18.5 million plant.

The city has been involved in a bidding process, so actual construction isn’t slated to begin until 2009 or later.

Once complete, the new plant will increase sewer output from 1.6 million gallons to 2.4 million gallons per day.

— Marques Hunter

6. Growth at Uptown GH

What started out as a cluster of buildings on Point Fosdick Drive has turned into a major player in the shopping and hangout scene.

Anchored by the state-of-the-art Galaxy Theatres, Uptown Gig Harbor added many new stores in 2008 to create an outdoor shopping arena which includes eateries like Panera Bread and Jamba Juice, a Borders Books and Music store, a nail salon, and specialty shopping stores like Hush Baby and the Elandan Gallery.

Residents can take in live entertainment at Borders, catch a movie at the theater, ice cream or coffee at Ben & Jerry’s or Cutter’s Point, or shop for some new threads at “Bloom” or “Coldwater Creek.”

Organizers for Uptown Gig Harbor hope the later hours of the theater and book store will give consumers the option of staying and shopping well into the evening.

The Galaxy Theatres were the site for Gig Harbor’s first film festival, and it will host a live downlink next month with NASA astronauts, who will answer questions from Key Peninsula Middle School students. Two other Peninsula School District schools will be involved, and the public is invited to attend the Jan. 21 event.

The session will feature Expedition 18 astronauts Mike Fincke and Sandra Magnus.

— Susan Schell

7. Tolls increase by $1 in 2008, but not in 2009

In June, tolls on the new Narrows bridge increased for the first time since the eastbound span opened in 2007, and the decision was a contentious one.

The electronic rate jumped from $1.75 to $2.75, and the cash rate from to $3 to $4, based on a divided recommendation to the state Transportation Commission from the Citizen Advisory Committee.

The sole dissenter, committee member Jim Pasin, thought toll rates could be lower. He argued that the state Department of Transportation, which supplies the financial figures upon which the CAC bases its recommendations, was making a mistake by not including toll violation revenue in its projections.

When the toll-setting process started again in October, Pasin’s ideas were taken into account. Bridge trips fluctuated over the summer as gas prices increased, and revenue streams reflected a 5 percent dip.

WSDOT recommended a toll increase for 2009, but with the struggling economy on their minds, members of the CAC wanted to collect enough revenue to pay off the bridge debt without raising tolls for a second year in the row.

By asking WSDOT to factor in revenue from toll violations — in addition to deferring both $3.1 million in capital improvements and $5.2 million of debt repayment — the CAC found a way to keep toll rates steady at least until June 30, 2010.

That recommendation will be reviewed by the state Transportation Commission in January.

— Paige Richmond

8. Gig Harbor police Sgt. Dougil arrested

The prosecution of Gig Harbor Police Sgt. Matthew Dougil is one court case that keeps bearing legal fruit.

Dougil, an 11-year veteran with the department, was arrested and charged last May with two felony perjury counts and a misdemeanor count of making a false or misleading statement to a public servant.

The charges stem from a number of controlled drug buys Dougil conducted, and that has continued to bring legal challenges to the City of Gig Harbor, since Pierce County prosecutors now say they wouldn’t have filed charges against three individuals involved in the drug buys had they known about Dougil’s alleged misconduct.

One of those individuals, Zach Hartford, was paid $45,000 by the city in December in order to settle a claim that he was wrongly arrested based on Dougil’s actions.

It might not be the end of those claims: Another individual prosecuted through those drug buys, Billy Sehmel of Gig Harbor, has said he will explore his “options on a criminal and civil side of things.”

Dougil’s criminal case is scheduled for trial in February.

— Paige Richmond

9. Boys & Girls Club breaks ground, loses funding

By the end of the May, the long-awaited Gig Harbor Boys & Girl Club ceremoniously broke ground at its future Skansie Avenue location. At the time, about $10 million of the $14.8 million needed to pay for the youth center had been raised.

Only weeks later, rumors began to circulate that one of the club’s largest funding sources — the City of Gig Harbor — would reduce its pledged $750,000 donation.

In question was an agreement between the city and the Boys & Girls Clubs of Puget Sound about space and operations in the new facility to house a senior center.

Discussions about the pledge began five years ago, when the possibility of a senior center prompted the city to agree to such a large sum. But as the deal fell apart — the club offered a five-year rental agreement for the center, while the city wanted a permanent arrangement — some city council members questioned why the city was donating so much without getting what it wanted in return.

By July, the city agreed to donate $250,000, reducing its pledge by $500,000.

Residents flooded a city council meeting, questioning the future of the Boys & Girls Club and wondering whether a senior center ever would exist.

For now, the club is still slated for construction next year, and Rick Guild, president and CEO of the Boys & Girls Clubs of Puget Sound, said the project will continue regardless of the city’s funding.

The future of a senior center remains uncertain, as the city currently has no plans to build such a facility.

— Paige Richmond

10. (tie) Harbor History Museum developments

The Harbor History Museum pulled up roots from its wooden chalet-style building behind the sewer treatment plant in Gig Harbor to a massive waterfront structure at the corner of Harborview Drive and North Harborview Drive.

The facility had to be large enough to house the historic 65-foot purse seiner Shenandoah and have room for the restored 1893 one-room Midway School, both of which will serve as part of the museum’s interactive displays.

When the museum reopens next spring, the public will be able to participate in restoring the Shenandoah, and local fourth-grade students will have a chance to spend a day in the classroom and see what life was like in the 1890s.

While the Shenandoah’s hulk was trucked down the street on the back of a flatbed pickup without a hitch, the museum’s woes came in the financial form.

The museum launched a $2.5 million public campaign, but a $1.75 million real estate deal with Bennett Development hit the skids when the housing company was unable to finance a separate 5-acre parcel of property that belonged to the museum, citing the nation’s credit crisis.

Help came from a private donor who offered to provide a low-interest loan for the museum to build its administrative offices.

When the museum reopens, members of the historical society hope the building will be an anchor for tourism and a benefit to downtown businesses.

— Susan Schell

10. (tie) Olympic Drive construction project

Gig Harbor saw a big infrastructure improvement early in the year as the 56th Street NW and Olympic Drive NW project began last January.

A few stores cited a 25 to 50 percent drop in profits because roads nearby were closed for four days to expedite the project.

The road between 50th Street NW and 38th Street NW on Olympic Drive/56th Street was widened, along with a host of other improvements. It cost $5 million, but the city landed a sizeable grant from the Transportation Improvement Board.

A few months later, city officials reported the project stayed on budget and on time.

— Marques Hunter