Report to the
Jamestown S’Klallam Tribal
Citizens
March, 2009
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Jamestown S’Klallam Tribe
Economic Development Authority
The Jamestown S’Klallam Economic
Development Authority (EDA) was
established in 2005 as a political
subdivision of the Jamestown S’Klallam
Tribe. The EDA was formed by the Tribal
Council for the specific purpose of
providing oversight and direction to
certain new, and existing Tribal
businesses in order to further Tribal and
Tribal Citizen economic prosperity.
The functions of the EDA include
administrative support and oversight
for the divisions of JKT Development,
Inc., assistance for Tribal-citizen
owned businesses, researching new
enterprises and opportunities, and
implementing certain economic
development goals set forth in the
Tribe’s comprehensive plan.
Jamestown S’Klallam Tribe
Tribal Council
EDA Board of Directors
Jamestown S’Klallam
Economic Development
Authority
New Enterprises
JKTD, Inc Board of Directors
JKT Development, Inc.
JKTD Construction Division
Commercial Construction G. C.
Commercial Interiors Design Group
Jamestown Excavating
Jamestown S’Klallam EDA
Organizational Chart
Jamestown HomeBuilding
Jamestown Information
Technologies
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New Business Opportunities
The EDA evaluated a number of new
business and investment proposals in
2008. Proposals and opportunities are
commonly discovered through
networking or solicitation. In general,
the EDA’s approach to an investment
starts by asking the question:
produce Infinity Board™, an OSB
product, as well as their trademark
structural insulated panel system which
replaces conventional stick-built
construction framing. The EDA would
potentially establish a new business
dedicated to manufacturing the base
product and the component panel
system for distribution world wide.
“Is this a suitable Tribal Business?”
The initial qualifiers for determining
suitability are:
 Is there an acceptable risk vs.
reward?
 Will this business be profitable?
 Will this business generate jobs for
Tribal Citizens?
 Does this business align with the
Tribe’s goals and values, heritage
and culture?
The EDA has held discussions with
Global Products, Inc., a uniform, uniform
accessory, and equipment supplier
working primarily with the federal
government. At this time the EDA is
conducting due diligence and looking at
ways to leverage its affiliation with ‘The
Native American Group’, (Tribal
Commerce Consortium) to provide
goods and services throughout Indian
Country.
Qualifying opportunities are presented
to the Board of Directors for their
consideration. With Board approval,
the management will begin a
comprehensive due diligence process to
further evaluate the benefits to the
Tribe, the risks involved and the
Another very interesting feasibility
consideration is agriculturally based.
The EDA has been approached by a
Canadian concern with regard to raising
Wasabi as cash crop. This is too early in
the feasibility and due diligence process
for additional comment.
Current Business Support
One of the primary functions of the
EDA is to provide administrative
support and oversight for the divisions
of JKT Development, Inc.
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potential for profitability.
The EDA continues discussions with
Centric Ltd. to determine the feasibility
of a manufacturing facility in the U.S. to
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JKT Construction Division
Jamestown Excavating
Jamestown HomeBuilding
Jamestown Information
Technologies
center on an EDA portal which will
provide online public resources such as
job applications, client tools and other
information.
The EDA has centralized many of the
divisions’ administrative functions at
the home offices in Sequim. Providing
back-office services, and other business
development support allows division
management and staff to focus more
attention on service productivity and
client relationships.
The EDA is working with the division
managers to provide management and
supervisory skills training through the
Tribe’s Human Resources Department.
HR is providing Tribal government
managers a menu of courses, and has
generously extended an invitation to
EDA and JKT managers and supervisors
to participate.
EDA support services:
 Business Financing
 Business Planning
 Accounting/Payroll Support
 Human Resources
 Legal & Regulatory Compliance
 Feasibility Studies
 General Oversight
 Marketing Support
 Interim Management
 Risk Management
 Education & Training
Affordable Housing
The EDA continues to seek suitable
properties and partnerships to develop
affordable housing for Tribal citizens,
employees and the larger Sequim
community. The EDA is collaborating
with the Tribe’s Chief Operating Officer
to research affordable housing
potentially targeted for Tribally owned
property. Various community models,
types of construction and types of
ownership are being explored.
The EDA is actively assisting the JKT
Development, Inc. Construction division
to increase its bonding capabilities in
order to enhance its ability to procure
projects independent of joint ventures.
JKTC entered into a bonding
arrangement with ULLICO Insurance
Company for $5,000,000/project with a
$20,000,000 aggregate. Although
ULLICO is currently at the capacity of
its own limits, this bonding is a positive
step toward sustainable, independent
project work.
Through funding assistance provided
by the BIA and grant management by
the University of Washington, the EDA
was able to have Ben Pierson, an MBA
candidate from the U.W. Foster School
of Business, develop an in-depth
analysis and strategy regarding
Websites are under development for the
EDA, and all of the business divisions.
jktdevelopment.com is set to roll-out in
March 2009. Jamestown Excavating’s
website will follow later in the 2nd
quarter. Eventually, the sites will
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affordable housing. The analysis
focused on creating tools for the EDA to
better define its own affordable housing
ideas, accounting for various inputs and
local conditions. Mr. Pierson’s
concluding presentation to the EDA
Board of Directors, and the
accompanying analysis, provided the
EDA with a step forward in creating a
viable affordable housing development.
The EDA and its service division,
Jamestown Information Technologies
(JIT), continued its scanning and website
maintenance contracts for the Tribe’s
administration. JIT also served as the
design and production lead on a
number of marketing and IT projects,
including a financing information
package, and power point presentation
for the 7 Cedars Casino bingo hall
renovation project.
JIT implemented many Tribal website
upgrades for the Tribe, as well as
preliminary designs for an online
“Totem Pole Tour” scheduled to launch
in the 2nd Quarter of 2009. JIT also
provided mapping and technical
assistance for multiple grant
applications.
Tribal Citizen Enterprise Support
The EDA supported Tribal
entrepreneurship in 2008 with business
planning, and website development for
4 Directions Counseling and Consulting, a
Sequim-based service provider, owned
and operated by Tribal-citizen,
Patrick F. Adams. The EDA also
worked with J.M. Grinnell Contracting in
preparation of 2009 marketing
materials, and contributed to layout and
graphic design for a bid package that
successfully resulted in a contract
award.
EDA Administrative Projects
The EDA is the lead member of the
Aspen Creek Homeowners Association
and its Board of Directors, and provides
representation on the boards of the
Clallam County Economic Development
Council, the North Olympic Peninsula
Resource Conservation & Development
Council, and the Peninsula
Tribal Administration Support
The EDA continues to work with the
Tribal administration to provide
consulting and advice in many areas.
Notably in 2008 was our participation in
a comprehensive review of the Tribal
insurance program.
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Development District.
Looking Forward
In the short-term, the EDA is focused on
working with JKT Development
division managers to brace for the
continued downturn in the economy
and construction industries. The EDA
recognizes that a number of local
opportunities may come from projects
subsidized by the economic stimulus
package and is assisting wherever
needed to help position the divisions to
take advantage of contract possibilities.
The EDA is also working with the
managers to develop positive, steady
cash flow by exploring ideas for
expanding current businesses into new
service and product markets within the
industry (e.g. JKT Construction
subcontracting in commercial interiors).
The EDA’s long-term objective is
business diversification. The Board of
Directors is working diligently to
expand the business base of the EDA
into other ventures outside of the
construction industry. The business
development team is focusing on
investment opportunities in
manufacturing, assembly,
retail/wholesale distribution sales,
agriculture, and technology for their
potentially favorable risk/reward ratios,
as well as their potential for creating
jobs.
The EDA’s long term planning and
decision-making is guided by the
financial goals of the Tribe; most
notably economic self-sufficiency.
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JKT Development, Inc.
JKT Development Inc. (“JKTD”) is a
Tribally authorized corporation
organized for the purpose of forming,
supporting and operating tribal
businesses of various types.
JKTD holds a number of certifications
and recognitions that provide our
company with additional opportunities
for state and federal contracting. These
certifications include:
 SBA 8(a)
 SBA HUBZone
 Washington State MBE
 Federal DBE
 100% Tribally-Owned
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The certifications apply to each of the
JKT Development, Inc. divisions.
JKTD’s primary goal is to foster the
development of the Tribal enterprises
under its purview. Currently, there
are four divisions of JKT
Development, Inc.:
 JKT Construction
 Jamestown Excavating
 Jamestown HomeBuilding
 Jamestown Information
Technologies
JKT Development, Inc.
Board of Directors
JKT Development Inc.
JKT Construction
Division
Jamestown
Excavating
Jamestown
HomeBuilding
Commercial Construction G.C.
Commercial Interiors
Manager
President
Executive V P
Manager
Jamestown Information
Technologies
Manager
Foreman
Carpenter
Operators
Assistant
Carpenters
Technicians
Superintendent
Operations Manager
Project Engineer
JKT Development,
Project QA/QC Supervisor
Office Administrator
Organizational Chart
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Inc.
Construction Division - 2008
JKT Construction
JKT Development, Inc. Construction
Division (“JKTC”) specializes in largescale commercial, industrial and
government general construction
contracting. JKTC currently has active
projects in Georgia and Washington.
JKTC’s headquarters are located in
Bellevue, WA.
retail space, and possibly a fuel station.
In an effort to diversify revenue sources
and stabilize division cash flow, JKTC
expanded its operation to commercial
interior services subcontracting. This
includes: flooring, floor covering, office
furniture, interior design, fixtures and
other interior finishes. The division’s
interior project manager brings a wealth
of experience in the flooring and interior
design fields, and has been working on
several flooring contracts that have
expanding the client base. As an
extension of the flooring services, JKT
Development, Inc. has entered into
professional relationships with
prestigious suppliers such as Shaw
Industries and Mohawk. This area may
be our first SBA 8(a) program spin-off.
JKT Construction 2008
The construction division continues its
work with federal and Tribal clients,
either solo or through joint-venture
partnerships with construction leader,
PCL Construction Services, and Seattlebased firm, Takasaki, Inc. Among some
of the more notable current projects are
contracts with the U.S. Navy, Centers for
Disease Control, U.S. Army Corp of
Engineers and the Lummi Nation.
Looking Ahead
JKTC anticipates completion of the
Lummi Gateway Phase I by the end of
2009. The CDC electrical upgrade will
most likely begin in April and be
completed before the end of the year.
JKTC will continue to explore new
markets, partnerships and clientele for its
construction-related services. The EDA
will continue to work closely with JKTC
to improve the company’s bonding
capacity, as needed for higher dollar solo
projects.
JKTC is ramping-up to perform a $2.7
million electrical upgrade for the Centers
for Disease Control (CDC) in Atlanta, GA.
With a ‘foot-in-the-door’, JKTC
management is optimistic about a
successful project leading to additional,
and larger projects with the CDC. The
project is a joint-venture with Takasaki,
Inc.
Designs are underway, and work is
scheduled to begin on the Lummi
Gateway project for the Lummi Nation.
The project has grown from a $1.8 million
business incubator to a $6-8 million multiuse ‘Gateway’ center, housing offices, and
meeting facilities as well as providing
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Jamestown HomeBuilding - 2008
Jamestown Homebuilding (“JHB”)
specializes in custom-quality homes. JHB
builds custom and spec-homes in the greater
Sequim regional area, as well as offers a full
range of remodel and renovation work for
Tribal, residential and commercial customers.
Federal and Frontier Banks, and is optimistic
in securing construction loans for future
construction.
New Construction 2008
Since the downturn in both the economy and
the housing market new home construction
has slowed to a crawl. Spec-home
construction in Sequim is nearly non-existent,
and the custom home market continues to be
weak, but more promising. Homes that were
selling quickly and profitably eighteen
months ago now face tough competition from
foreclosures and good homes that are priced
low regardless of profit. In a recent example,
a comparable foreclosure home, adjacent to
JHB’s current Aspen Creek offering, sold for
$235,000. Built in 2005, the home originally
sold for over $360,000. Adding to this
dilemma are stricter lending requirements by
banks and mortgage companies.
Remodeling 2008
The HomeBuilding Division worked on many
remodel projects for the Tribe in the 3rd & 4th
quarters of 2008. In other projects, JHB
completed an addition and remodel to the
Tribal Youth Center, a remodel of the
reception area in the Administration building,
and the addition of a garage on one of the
Tribe’s rental properties. JHB is currently
working with Tribal citizens and members of
the Tribal staff on several remodel, and
addition projects. JHB is also collaborating
with the Tribe to improve the restrooms at the
scenic-pullout, enclose the MBR (Membrane
Bioreactor) wastewater treatment plant
mechanical components, and make further
improvements to the Tribal Youth Center.
JHB currently has two homes on the market,
one in Aspen Creek Development and
another in Eagle Mountain Estates. Although
JHB has available building lots, the division
has halted its spec-home production until the
sale of one of these homes. Utilizing the
services of a realtor has become critical to
maximize the exposure of the spec-homes and
to market custom homes. Fortunately, given
the financing crisis, JHB has maintained an
excellent relationship with its lenders, First
Looking Ahead
Since the slowdown, JHB has been
reevaluating all facets of its construction
economics. Its approach to future spec-home
construction will be looking at ways to build
lower-cost homes without sacrificing the
quality JHB has built its reputation on. This
includes lower cost materials, alternate
materials and trimming high-end details
while maximizing the features expected at a
mid-range price-point.
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Jamestown Excavating - 2008
Jamestown Excavating
Jamestown Excavating (JEX) conducts
commercial and residential excavation
services throughout Clallam and Jefferson
Counties.
Jamestown Excavating 2008
Jamestown Excavating had an
outstanding year in 2008. The division
exceeded its goals for direct costs,
overhead expenses, and net profit ratios.
JEX ended the year having completed 33
residential projects, 21 Tribal projects and
8 commercial contracts. After successful
training, the division project foreman
acquired his septic installation licenses for
both Clallam and Jefferson Counties.
Looking Forward
A priority for Jamestown Excavating in
the first half of 2009 will be to position the
division to react quickly on bidding for
federal stimulus package projects.
Stimulus funding could trickle-down to
Tribal infrastructure improvements
including extending the Olympic
Discovery Trail east of Heron Hall. Many
of the counties’ local governments,
utilities and transportation authorities are
gearing-up to compete for ‘shovel-ready’
project financing in the coming months.
JEX management will be working to
secure its place on the small-works rosters
and ready to mobilize on infrastructure
improvements throughout Clallam and
Jefferson Counties in 2009.
JEX’s main focus was on Tribal projects,
particularly the revisions to the North
Campus parking area, additional Heron
Hall parking, and the Olympic Discovery
Trail extension through the Tribal Center
grounds. In cooperation with Tribalcitizen owned J.M. Grinnell Contracting,
Jamestown Excavating completed the siteprep work for the Lower Elwha Tribe’s
new micro-casino.
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Jamestown S’Klallam
Economic Development Authority
Jamestown S’Klallam Tribe
Economic Development Authority
&
JKT Development, Inc.
2009 Board of Directors
Marlin D. Holden,
Chairman
Jack Grinnell,
Vice Chairman
Mathew C. Adams,
Treasurer
Celeste Dybeck
Linda Ruffcorn
Jamestown S’Klallam Tribe
Economic Development Authority
Douglas Sellon,
Executive Director
JKT Development Construction Division
J.R. Lunsford,
President
Jamestown HomeBuilding Division
Dave Hartman,
Division Manager
Jamestown Excavating Division
John Kertis,
Division Manager
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