AzBusiness magazine January/February 2013

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January // february 2013

Arizona Lodging & Tourism Association gives industry strong leadership, direction

Debbie Johnson is presiDent anD Ceo of the arizona LoDging anD tourism assoCiation.

$4.95

A ZRE : ARIZONA COMMERCIAL REAL ESTATE

JANUARY // FEBRUARY 2013

JANUARY // FEBRUARY 2013

Structural Shift in Tourism WomEn to WAtCh

.26

ArizonA CorPorAtE CounsEl

.47

industry lEAdErs of ArizonA

.71

GPEC

.89

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HaRD wORk anD HusTle aRe Back

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for full Schedule

Table Of Contents 6 CEO Series 8 First Job 10 Small Business 12 Health 16 Accounting 20 Banking 24 Dining 26 2013 Women to Watch 34 AzTech: HEAT

Jeri Jones of UnitedHealthcare talks industry changes HomeSmart International’s Matt Widdows delivers Carolyn Lefebvre drives growth for AutohausAZ.com Affordable Care Act will change the way we’re insured Should standards be different for private companies?

Are banks lending? Executives say, ‘Of course we are’ Ocean Prime brings the sea to the desert Profiles of 15 women will effect change in 2013 •Energy Roadmap expected to drive industry •15 female innovators who will make an impact in ‘13 • SkySong helps power the McDowell Road Corridor

47 Arizona Corporate Counsel 58 AzLTA 71 Industry Leaders of Arizona 89 GPEC

The finalists who are vying for 2013 ACC Awards • Tourism groups’ merger creates industry powerhouse • Sporting events create huge economic impact for state

Tourism hits a home run

One of the greatest holiday gifts I will ever get my parents were tickets to the 2007 Fiesta Bowl between Oklahoma and Boise State. My parents are tough to buy for, they don’t need anything, but they love sports. So even though they aren’t fans of either team, they love live sports.

What they got from that gift was the experience of seeing one of the greatest games in college football history — the teams scored 22 points in the final 1:26 of regulation and 15 points in overtime, culminating with Boise State completing three do-or-die trick plays to win the game in an upset.

What’s great for the tourism industry in Arizona is that we can give those memories to visitors on a regular basis. Between Cactus League baseball, college football bowl games, the Waste Management Open, NASCAr events at PIr and the Super Bowl coming again in 2015, the Valley is a sports memory-making machine. Sports also have an economic impact on Arizona that adds up to billions of dollars annually.

In this issue of Az Business magazine, we talk about the merger of the Arizona tourism Alliance and the Arizona Hotel & Lodging Association to form the Arizona Lodging & tourism Association (AzLtA), the political and economic power the new group will have, and how they will continue to utilize sporting events as a catalyst to attract more tourism dollars to the state.

Their initiatives are working. My father has already told me he’s coming in from New York this month to play some golf and check out the Waste Management Open.

A quick look at the companies that are leading the way • Record year for Greater Phoenix Economic Council • Economic developers help Arizona diversify economy • GPEC helps Valley attract more foreign investment

Cover photograph by Glory Shim.

2 AB | January-February 2013

Michael Gossie Editor in Chief michael.gossie@azbigmedia.com

Az Business on the Go: AzBusinessMagazine.com

This season, we made wishes come true I wish to go on a cruise vacation.

Jaryn, age 5

Avondale, Arizona

Make-A-Wish® Arizona would like to thank Go Daddy for their commitment to matching dollar-to-dollar up to $20,000 through the Season of Wishes® powered

by Go Daddy campaign.

Continue this year’s Season of Wishes® by donating today to help grant the wishes of Arizona children with life-threatening medical conditions.

Thank you for your support of 2012 Season of Wishes from your title sponsor Go Daddy:

Donate now at www.wishaz.org and help make wishes like Jaryn’s a reality.

This ad was generously donated by Stevens Leinweber Construction.

www.wishaz.org 711 E. Northern Avenue Phoenix, Arizona 85020

Shout Outs

DIVERSITY LEADERSHIP quarles & Brady attorneys Leezie Kim and Luis A. Ochoa have been named to Diversity MBA Magazine’s 2012 top 100 Under 50 Diverse Executive Leaders list. They were selected from a group of more than 300 highly competitive candidates from public and privately held companies as well as entrepreneurs and not-for-profit organizations for their achievements in their communities.

HELPING ITS PATIENTS Cancer treatment Centers of America in Goodyear has created the first and largest canceronly hospital owned and operated organic farm in the United States. CtCA has partnered with McClendon’s Select, one of the country’s top organic farm companies, to manage the 25-acre organic farm that will bring fresh, organic produce straight to the patients’ plates this winter.

NO MORE BOOKS The Brown Mackie College system of schools is adopting technology into education and converting students at its 28 schools nationwide to 100 percent e-textbooks and Apple iPad technology. Through the college’s Student Advantage Program, each incoming student will receive an iPad with the applications and textbooks necessary to make the technology an integral part of their overall educational experience.

HELPING A CHILD IN NEED Phoenix-based myList, a Facebook application that helps users discover, save and share things among their Facebook friends, teamed with Ironman athlete Brady Murray to raise money and awareness for rODS, racing for Orphans with Down Syndrome. Through this joint campaign, myList and Murray raised enough money to cover the cost of an adoption for a family that sought to adopt an orphan with Down Syndrome.

CHAMPIONING THEIR CAUSES > Polsinelli Shughart environmental and natural resources law attorney Margaret B. LaBianca has assumed the chair of the Environmental and Natural resources Law Section for the State Bar of Arizona after being elected by the Section membership. > twenty-one Polsinelli Shughart attorneys and staff — including cancer survivor Brian M. Flaherty, a Phoenix litigation attorney — put down their razors during November as part of the national “Movember” campaign to raise awareness of men’s health issues. The attorneys’ efforts raised $5,000.

4 AB | January-February 2013

PRESIDENT & CEO: MICHAEL AtKINSON PUBLISHER: CHErYL GrEEN VICE PRESIDENT OF OPERATIONS: AUDrEY WEBB EDITORIAL EDITOR IN CHIEF: MICHAEL GOSSIE EDITOR: PEtEr MADrID ASSOCIATE EDITOR: KrIStINE CANNON INTERNS: ArSELIA GALES • DANIEL ESCOBEDO • CArOLINA LOPEZ trAVIS MCKNIGHt • COOPEr rUMMELL • JULIA SWEM ART SENIOR GRAPHIC DESIGNER: CHrIStIN GANGI SENIOR GRAPHIC DESIGNER: MIKE MErtES CONTRIBUTING PHOTOGRAPHERS: COrY BErGqUISt • GLOrY SHIM DIGITAL MEDIA WEB DEVELOPER: ErIC SHEPPErD WEB & GRAPHIC DESIGNER: MELISSA GErKE MARKETING/EVENTS MANAGER: WHItNEY FLEtCHEr INTERNS: ABrIELLE SWISHEr • BrIttANY HArrIS OFFICE SPECIAL PROJECTS MANAGER: SArA FrEGAPANE EXECUTIVE ASSISTANT: MAYrA rIVErA DATABASE SOLUTIONS MANAGER: CINDY JOHNSON ARIZONA BUSINESS MAGAZINE SENIOR ACCOUNT MANAGERS: DAVID HArKEN ACCOUNT MANAGER: SHANNON SPIGELMAN • ArtHUr ALCALA ARIZONA COMMERCIAL REAL ESTATE ACCOUNT MANAGERS: StEVE KOSLOWSKI • ZOE tErrILL RANKING ARIZONA VICE PRESIDENT / SALES & MARKETING: LENOrE GrOBStEIN DIRECTOR OF SALES: SHErI KING EXPERIENCE ARIZONA/PLAY BALL DIRECTOR OF SALES AND MARKETING: SCOtt FIrLE SCOTTSDALE LIVING ACCOUNT MANAGERS: SUSAN HArKEN • MArIANNE AVILLA POWER BROKERS DIRECTOR OF SALES: CArOL SHEPArD AZ BIG MEDIA EXPOS SCOttSDALE SUPEr EXPO/NOVEMBEr SCOttSDALE SUPEr EXPO/APrIL EXHIBIT DIRECTORS: KErrI BLUMSACK • tINA rOBINSON HOME & DESIGN IDEA CENTER SHOWROOM MANAGER: JOANNE StANLEY ACCOUNT MANAGER: MArIANNE AVILA EVENT COORDINATOR: SArA FrEGAPANE Az Business magazine is published bi-monthly by AZ BIG Media, 3101 N. Central Ave. Suite 1070, Phoenix, Arizona 85012, (602) 277-6045.

The publisher accepts no responsibility for unsolicited manuscripts, photographs or artwork. Submissions will not be returned unless accompanied by a SASE. Single copy price $4.95. Bulk rates available. Copyright 2013 by AZ BIG Media. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.

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AB | January-February 2013 5

FROM THE CORNER OFFICE

By MICHAEL GOSSIE Photograph By COrY BErGqUISt

JERI JONEs CEO UnitedHealthcare

How is being CEO of UnitedHealthcare different from being CEO of another company?

In the healthcare industry today, where we have been portrayed somewhat as the evil-doers of healthcare and increased costs, we spend a lot of time trying to educate those in the marketplace about what drives healthcare. That may be different from what a manufacturing company has to do every day. I also find myself more involved with legislators than I think I would expect in a different industry.

How do you like working with legislators?

I have worked in two markets — Colorado and Arizona. Legislators in Colorado seem a little more reasoned in terms of making decisions. Last year, the Arizona Legislature seemed to be very caught up in not wanting to have anything to do with the Obamacare Act, as they saw it. It’s very unfortunate because they missed the boat on some opportunities and made some decisions in 2012 that hurt the industry in terms of keeping some federal dollars out of Arizona that would have helped the hospitals and kept some costs from being shifted to the business market.

What qualities does an effective CEO possess?

Leadership. If you have strong integrity and the ability to inspire people to do what they love to do, that is the key to being a good CEO. You also need to build a good team around you, have the right people in the right roles, and help them be the best that they can be in that role.

What qualities do you have that helped take you to the top of your industry?

One of the things I have been able to do over the years is be an effective coach and mentor. I am pretty strong in finding good people and helping guide them so they can realize their full potential and advance in their career.

6 AB | January-February 2013

What’s been the biggest change you’ve seen in your industry since you started?

The old days of the HMO where everyone paid a $15 co-pay, compared with today, where it’s very consumer driven. Part of the reason healthcare got as expensive as it has over the years is that no one paid attention to what the cost was. Now, they have to.

How is health insurance exchange (HIX) going to impact UnitedHealthcare?

We see it as an additional avenue to sell our business. Hopefully, it will be in a way that aligns all of the carriers with very simple comparisons so everyone will be selling the same benefit plans, and all the individuals looking will be able to identify quality versus value on the exchange, and it will be a simpler tool for them to purchase. The advantage of the exchange in Arizona is that people will be able to move in and out of plans depending on their financial situation, but they will be able to stay with UnitedHealthcare.

What advice would you give to other women who aspire to be in your position?

Stand strong, be confident, love what you’re doing, and you’ll definitely succeed.

VITAL STATS: JERI JONES  Holds a B.S. degree in accounting from Northern Arizona University and is a C.P.A.  After graduating from college, she traveled the country doing joint-venture audits of oil companies.  Before returning to Arizona in 2011, she spent 21 years in Colorado.  Member of the board of directors of the Arizona Chamber of Commerce and Industry.

In a perfect world, saving endangered species like whales and sharks would be everyone’s responsibility. The question is, how can we make this world more perfect? Right now, Embry-Riddle researchers are designing low-cost, unmanned aerial vehicles (UAVs) that will fly 400 feet above the waters of Galapagos Island National Park. While doing so, they will stream live video onto the web, so anyone, anywhere can monitor the area for the poachers who decimate our wildlife. Yes, at Embry-Riddle we aim for the stars. But we always keep home close to our hearts.

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FIRsT JOB

By MICHAEL GOSSIE Photograph By MIKE MErtES

MaTT WIddOWs

President and CEO, HomeSmart International What was your first job?

I was a paperboy for the Arizona republic and Phoenix Gazette.

When I started, I was actually so light that after I stacked my papers in my bike basket and started to ride, the front end came off the ground, and the bike stood up on end.

What lessons did you learn from that first job that still help you today? responsibility. I had to get up early and be on time with my deliveries, manage money and collections, and report to a boss once a week.

What was your first job in your current industry?

My first job in the real estate industry was working for Coldwell Banker as a realtor.

What attracted you to the real estate industry?

I had friends in the industry that were in land acquisition while growing up. Although I had no clue at that point what it actually involved, the first step in my mind was getting my real estate license and paying my dues.

What are the biggest changes you’ve seen in the real estate industry since you started?

technology. This industry predominantly used large books that were published multiple times per year for home searches. Can you imagine? But that’s how it was. We’ve come a long way since then, and that was only the early 1990s.

8 AB | January-February 2013

Has the real estate industry emerged from the collapse?

Absolutely. I’m pretty confident that we are out of it unless lawmakers do something crazy to somehow bring us back down. It may take some time to fully recover, but there is light at the end of the tunnel.

What accomplishment are you most proud of?

Well, it’s cliche, but I am most proud of my kids. I love them so much and having them at home after long days getting to where we are today would have been tough. They reset the day the second you walk in the door.

If you weren’t doing what you are doing now, what would you like to be doing?

That’s easy. I’d be a fireman — assuming I could get on. I still have aspirations of working at a volunteer fire station somewhere to fulfill that dream.

THE WIDDOWS FILE

Matt Widdows founded Phoenix-based HomeSmart International in 2000 and has built it into the fastest growing real estate brokerage firm in the United States with a network of more than 6,500 sales agents in 36 offices. HomeSmart is currently ranked as the largest brokerage firm in the Southwestern United States and among the top five in the country based on the number of agents. For more information on HomeSmart visit homesmartinternational.com.

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Lady OF THE Haus

Female-owned AutohausAZ.com thrives in in male-dominated auto parts industry

I

n 1996, a Phoenix woman and her husband purchased an automotive parts wholesaler by the name of Autohaus Phoenix, Inc. During the 10 years that followed, the couple transformed the company from a local distributor into an entirely internet-based retailer and wholesaler, distributing automotive parts to more than 115 countries under the name AutohausAZ.com.

But the real growth story began when Carolyn Lefebvre, president and CEO of AutohausAZ.com, purchased her husband’s 49 percent share of the business, claiming 100 percent ownership of the company.

“I bought him out when we got divorced in January of 2006,” Lefebvre says. “Since that time, we have grown by 317 percent (from $4.59 million in sales in 2006) to projected sales for 2012 of $17 million.”

Also, just two years after the buyout, the formerly highlyleveraged company had paid down every cent of debt on its books, internally financing all growth since that time.

And the company has experienced explosive growth. By 2011, AutohausAZ.com had outgrown its facilities and relocated to its current 51,000 square-foot home, nearly three times the size of the previous location.

In such a male-dominated industry, Lefebvre says that being a female-owned company has given AutohausAZ.com unique advantages that have aided its tremendous growth.

“I think more than anything, the woman ownership has helped build a corporate culture of people who care about one another and who want to help the company succeed — a close-knit group 10 AB | January-February 2013

much like a family,” Lefebvre says. “It’s that close-knit team that’s really been the driving force behind our growth ever since we became 100 percent woman-owned.”

At AutohausAZ, there is a saying that “customer service is a company-wide commitment, not a department.” It is Lefebvre’s belief that while it is not easy to earn respect and trust from customers, it is much more difficult to get it back once you lose it. This commitment to the customer has helped the company far exceed industry standards for conversion and customer retention.

“We’re doing extremely well with our commitment,” Lefebvre says, “but we don’t rest on our laurels. We’re always striving to find areas in which we can improve.”

This caring attitude has also fostered incredible employee loyalty. The average tenure at the company is more than 12 years, a number which, Lefebvre notes, would be higher, were it not for the many positions added out of necessity during the past several years of growth. Lefebvre says she honestly does not remember the last time an employee left the company.

“In short, it’s our focus on quality and people at AutohausAZ that gives us our momentum,” Lefebvre says. “truly caring about everyone on the AutohausAZ team builds employee loyalty which, in turn, helps us build customer loyalty, and this is what ultimately fuels our success.”

AutohausAZ.com 2850 S. Roosevelt, #102, Tempe, AZ 85282 (602) 276-9402

HEaLTH

By LOrIN PArKHUrSt

?

HeAltHy cHoIces With obamacare looming, businesses that have waited to implement changes have some decisions to make

T

he Affordable Care Act — more commonly known as Obamacare — is now a reality. So for business owners who have held off on preparing for changes to their employees’ benefits mandated by the ACA, it’s crunch time.

“Employers that have waited until post-election to make decisions and meet ACA compliance need to be ready to make decisions quickly and effectively now,” says Shay Bierly, director of client services for MJ Insurance’s employee benefits division in Phoenix. “reform has brought a heightened awareness to the need for Americans to become educated consumers regarding healthcare.”

An informed consumer typically makes a wise investment. And with the ACA in place, Arizona’s elected leaders will have the opportunity to establish it’s own Health Insurance Exchange (HIX) for consumers — both individuals and employers — to shop for the plan that will best suits their medical needs and pocket book.

The HIX will be an online marketplace of private insurers to be compared and purchased, all with the same minimum benefits required by the ACA. Open enrollment through the HIX will be available beginning in October.

Mike Cody, senior vice president of Lovitt & touche, one of the largest insurance agencies in the United States, says that “employers are required to communicate the existence of the exchange and how to access it by March 1.”

SORTING IT OUT

Creative fees and a plethora of plan structures are just two of the difficult considerations facing Arizona business owners.

12 AB | January-February 2013

Experts say the decision-making process will be a perplexing and time consuming. Considering that most small businesses don’t possess an expert understanding of the 906-page Patient Protection and Affordable Care Act, it is vital for them to establish a close relationship with a trusted insurance advisor in order to get up to speed and implement the necessary alterations to their benefits package. “(Employers need to) educate themselves on the options, understand their demographic needs and align their choices with overall company vision and goals,” Bierly says.

Meeting the needs of employees without over-insuring them and adhering to the new legislation is a tightrope best walked with a pro, experts advise. They will help the employer maneuver and utilize the future HIX to satisfy their staff, comply with the law, and keep their expenditures to a minimum.

“We have been providing educational seminars to large groups of clients as well as small private client meetings that are more specific,” Cody says. “In addition, we have a proprietary cost modeling tool that helps employers understand the financial impact to their bottom line.”

MAKING THE DECISION

The costs of providing healthcare for employees is exorbitant.

Though the law doesn’t address or resolve the rising cost of healthcare, the ACA offers some tax credits to small businesses for insuring employees. “(Blue Cross Blue Shield of Arizona) will be participating in a number of educational presentations on the topic of healthcare reform,” says Jeff Stelnik, senior vice president of strategy, sales

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HEaLTH

? and marketing for BCBSAZ. “Events will be held throughout the state, starting in early January.”

The goal of BCBSAZ’s presentations is to help Arizonans navigate the healthcare reform law in a way that maintains profitability for each business and promotes individual employee health.

There is a “Pay or Play” rule in the ACA. Under this rule the employers have the option to offer a minimum coverage to all full-time employees or pay $2,000 per employee. This is where the exchange will become a valuable tool in making the decision to pay or play.

“There are over two dozen changes for employers,” warns Jon E. Pettibone, chairman of quarles & Brady’s National Labor & Employment practice. “Nearly all the new rules carry large potential penalties if an employer does not comply with the rules.” to help businesses sort it out and stay compliant, quarles & Brady has prepared a 50-page guide to help employers understand the “Pay or Play” rule.

CONTAINING COSTS

A detailed analysis by a qualified insurance agent is key to making the right decision when it comes to providing adequate healthcare coverage for all employees and maintaining economic health for the the company. The bottom line for any company considering the right approach to healthcare reform is to determine if the coverage is fair, accessible and affordable. “quarles & Brady has been helping employers adopt strategies appropriate to them and develop strategic plans for compliance, minimizing costs or, in some circumstances, avoiding coverage,” Pettibone says. “We do expect employers will, in some situations, seek to reduce employees’ hours so that fewer employees are considered ‘full-time.’ A fair number of national employers have already stated publicly that they are exploring this option. This does raise some nondiscrimination concerns that employers should consider prior to implementing this strategy.”

It may be advantageous for companies to limit their staffing to fewer than 50 employees or to reduce a portion to less than 30 hours. This would eliminate some or all of their insurance obliga14 AB | January-February 2013

? tion and avoid any other penalties. Keep in mind that the hours employees work in the last two months of 2012 will determine their full-time status for all of 2014.

Another way to contain costs is through the implementation of wellness programs.

“The ACA allows for significant premium differentials based upon an employee’s engagement in your wellness program,” Cody says, “so it can be a powerful motivator for leading a healthy lifestyle.”

Stelnik suggests that implementing wellness screenings and encouraging personal responsibility are great tools to keeping a staff healthy and productive.

“Benefits such as on-site biometric screenings, flu shots and mammography accompanied by educational presentations and resources can make a tremendous difference in supporting a healthy workforce,” Stelnik says.

If you’ve waited to plan for healthcare reform, experts say the first thing to do is attend a healthcare reform seminar, learn how your company is categorized, understand what the law requires, and be sensitive to the needs of your employees.

“It’s not too late to begin educating yourself,” Stelnik says. “Businesses should consult a tax advisor or legal counsel to help assess their own situation to make the most informed decision.”

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aCCOuNTING By rEBECCA LArSEN

A numbers gAme momentum builds for plans that could soften accounting standards for private companies

P

rivate companies say they need to stop being treated like public companies. And now the accounting world has begun to listen to their complaints.

The debate about whether to soften accounting standards for private companies has gone on for years, but this time it seems to be moving toward action, although slowly. But this past summer, the parent organization of the Financial Accounting Standards Board (FASB) created a new Private Company Council to discuss possible changes in the U.S. Generally Accepted Accounting Principles, better known as GAAP. The theory behind the move is that the GAAP standards may not always be necessary for private companies, particularly small and medium-size businesses. The council will develop a framework for deciding whether the users of private company financial statements have unique needs and will look at ways to reduce the complexity and cost of preparing private company financial statements as is now the case under GAAP. Private companies contend that because they don’t raise capital 16 AB | January-February 2013

from the public, they shouldn’t have to meet the same expensive accounting standards that publicly traded companies do. In many cases, they are also much smaller than public companies. right now, the FASB is seeking feedback on possible changes that could be proposed by this new council.

“They’re only at the talking stage in these standards,” says ralph Nefdt, managing partner in the Phoenix office of the accounting firm of Grant Thornton. “But it’s a very important debate for standard setters.”

At the same time, the American Institute of Certified Public Accountants (AICPA) has issued its own proposed Financial reporting Framework that small and medium-size privately held businesses could use to prepare their financial statements when U.S. GAAP is not required. The AICPA is seeking comments on this proposal and expects to finish this framework by 2013.

In the case of the AICPA, a company’s management would have to decide whether or not to use the framework, and the institute would not have authority to require its use, says ron Butler, Arizona managing partner for Ernst & Young.

“Auditors’ reports for financial statements prepared under the

aCCOuNTING

‘It’s a very important debate for standard setters.’ proposed framework would indicate that they were prepared on a non-GAAP basis,” Butler says.

Among major concerns about softening standards for statements is that many companies might report a very different financial performance under the new framework. And whether lenders, creditors and other users of financial statements would accept statements prepared under the AICPA’s proposed framework remains to be seen. “Many contracts, regulations and laws require the use of U.S. GAAP,” Butler says.

In other words, there might be risks for businesses in using the AICPA framework because banks and investors might not accept anything other than GAAP standards. Some accountants might also resist the change.

But the AICPA’s plans could bring changes sooner. “This new framework could speed up the processes where an accounting change could occur,” says richard Goldenson, managing partner of CliftonLarsonAllen’s southwest region based in Phoenix.

He also said that the framework could simplify standards for small and medium-size businesses but not reduce them: “The accounting principles comprising the framework for small and medium-size entities are intended to be the most appropriate for the preparation of the financial statements based on the needs of 18 AB | January-February 2013

the financial statement users. Financial institutions in many cases do not require GAAP-based statements.”

Many small and medium-size businesses could realize cost savings because often they do not have the resources and expert staff to implement complex accounting requirements.

Some of the other key features of the AICPA proposal:  It would be a principles-based framework, available for incorporated businesses and unincorporated.  It is based on accounting principles commonly used or previously used for financial reporting.  Historical cost would be the primary measurement basis.  Fewer disclosures would be required than under U.S. GAAP.  Fewer adjustments may be needed to reconcile tax return income with book income.  It is intended to be used regarding issues that face small and medium-size businesses.

If the framework moves ahead as proposed, accountants, companies and regulators would have to go through an education process so that financial reports would be carefully executed. A company that wants to use the framework would need substantial lead time to switch over.

P

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BaNKING

By MICHAEL GOSSIE

Are bAnKs lendIng? despite shifts in the industry, bankers say they are still in the business of making loans

A

re they, or aren’t they?

Banks can only stay in business by making loans, not turning away customers who want to borrow money. So why does the public believe that banks aren’t lending?

“The truth of the matter is that when things were really bad a few years ago, banks weren’t lending,” says robert Sarver, CEO of Western Alliance Bancorporation. “The banking business, not unlike other businesses, tend to react and overreact, and sometimes we react too much when times are good, and we lend too much money on too liberal terms; and when times are tough, we don’t lend enough money and are too conservative.”

Banks are a business — a unique kind of business — that is under significant pressure to make a profit like any other like any other business. A typical bank, in healthy years, should earn a return on assets (rOA) of 1.1 percent to 1.5 percent. That translates into an return on equity (rOE), because of leverage, of anywhere between 8 percent and 18 percent, similar to most other businesses.

A bank makes its money by investing deposits into either securities or loans, both of which earn a return. typically, loans earn more than securities, and both earn more than what banks pay out to depositors. Although loans earn more, they come with a credit loss rate that a securities portfolio generally does not have. In 2009, in the depths of the economic crisis, a typical bank had a loan loss rate of 1.73 percent on its loan portfolio, which ate into the profitability of the bank. So what does a bank to do when it incurs such high loss rates in its loan portfolio? It invests in fewer loans.

But that is changing. Banks have increased their lending for four of the last five quarters, but Federal Deposit Insurance 20 AB | January-February 2013

Corporation (FDIC) acting chairman Martin Gruenberg is still taking a ”wait and see if the trend toward increased lending can be sustained” approach.

“Banks are lending today, and most banks have excess liquidity that they would prefer to put out in loans,” says Keith Maio, president and CEO of National Bank of Arizona. “Those that feel that banks aren’t lending are likely those who have had their credit compromised in recent years. Loan demand is down from consumers and businesses, particularly since the recession. The recession has caused many personal borrowers to be more conservative in their approach to leverage. Businesses tend to increase borrowing when their revenues are increasing, and they need to finance that growth.”

Sarver says that banks do want to lend, “but unfortunately there is a lot of regulation in our industry, which to a certain degree has stifled long-term growth because our capital requirements have almost doubled over the last five years; so that’s been another barrier to banks lending money.”

As an outgrowth of those regulatory changes, lending standards have tightened in certain consumer loan categories like mortgages, experts say. But while mortgage rules have changed, lending standards for business haven’t seen dramatic shifts.

“Commercial lending standards for owner-occupied real estate and commercial and industrial loans have not changed much,” says Kevin Sellers, executive vice president with First Fidelity Bank in Arizona. “For investment property loans, banks are requiring owners to maintain more equity capital in the properties and higher net operating income relative to the property debt service.”

According to Adam White, senior vice president of credit administration at Biltmore Bank of Arizona, bankers have always

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BaNKING

used the “Five C’s of Credit” to determine if a business is credit worthy. Those included: 1. Cash flow – history of positive cash flows and probability of recurring 2. Collateral – adequate collateral support 3. Capital – adequate capital to support normal business operations 4. Conditions – what’s affecting the business 5. Character – who are the people behind the business “In today’s environment, banks emphasize ALL five elements,” White says, “whereas, in the past, too much reliance may have been placed upon appreciating collateral values under unsustainable market conditions.”

Kevin Halloran, Arizona state president of Mutual of Omaha Bank, says that while there have been shifts in the requirements banks are setting for lending, he sees the industry taking steps toward normalcy.

“I believe lending standards have returned to the original norm,” he says. “In the early to mid-2000s, the banking industry required only limited borrower documentation relating to income and other basic information for residential loans. Now, the industry is requesting proper information to make sound decisions.”

On the business lending side of the equation, “lending standards over the past 10 months have loosened in both pricing and structure for both large and small companies,” Halloran says.

And while some banks have pulled back lending activity, it’s definitely not the case at many Arizona banks.

“Loans at our company have grown 8 percent this year, and in discussions with my colleagues at other financial institutions

22 AB | January-February 2013

in the Valley, they are experiencing similar results,” says Dave ralston, chairman and CEO of Bank of Arizona. “Loans are the lifeblood of a bank, and at Bank of Arizona, loan growth is our No. 1 priority. We are seeing increasing demand from credit-worthy consumers and businesses in the Valley.”

Halloran echoed ralston’s observations.

“Over the past three years, we have completed more than $500 million in new loans in Arizona,” Halloran says. “That includes commercial loans and commercial real estate financing across multiple industries, as well as private banking loans and residential mortgages. Our local commercial banking group has provided local businesses with working capital, revolving lines of credit, equipment loans, owner-occupied loans and merger and acquisition loans. Our commercial real estate group has provided loans in industrial, multi-family, senior and student housing, charter schools and multiple other real estate segments. So we have been — and will continue to be — a very active lender.”

A positive result in the changes in lending banks have been forced to examine in the wake of the recession is that banks have learned lessons that will create a stronger business model for the industry.

“Banks need to consistently monitor their concentrations in all lending sectors and understand they can only provide so much capital to any one industry,” Halloran says. “Arizona’s population grew so much over the past decade that it resulted in a substantial need for real estate lending. The concentration Arizona banks had in real estate negatively affected all Arizona banks. In the future, I believe all banks will be better at managing their overall balance sheet risk as a percentage of capital.”

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dINING

By MICHAEL GOSSIE

It’s prIme tIme

ocean prime combines ambience, service, presentation and amazing food to create a top-notch dining experience

R

ejoice, desert dwellers.

Ocean Prime at CityNorth has brought the ocean to us. And its scrumptious steak will delight even the most critical carnivore.

When you walk into Ocean Prime, you are struck by the blue lighting, expansive glass, illuminated bar and wine cellar, and clean-lined architecture that defines class and sophistication.

I’m a native New Yorker who doesn’t think hip exists west of the Village, so when I walk into a Valley restaurant that “wows” me, I’m impressed.

The weather was perfect, so we sat on the patio, with its outdoor fireplace giving it an even more intimate, romantic and comfortable feel.

From the white-jacket-wearing waiters to the table-side creation of the Berries and Bubbles Strawberry Smash — a mixture of Belvedere Citrus, Champagne, Bacardi Dragonberry rum, and Grand Marniersoaked berries — that our waiter poured over dry ice to create a delicious drink that looked like something straight out of a witch’s caldron, the service and presentation at Ocean Prime are both impeccable.

For appetizers, I cannot imagine picking two more delicious dishes than the Sonoma Goat Cheese ravioli with Golden Oak Mushrooms and Point Judith Calamari with Sweet Chili and Candied Cashews.

We also had Ocean Prime’s Lobster Bisque, which featured succulent chunks of lobster and a sweet corn fritter in the center of the bowl; and the Ocean Prime House Salad, which included some tasty candied

24 AB | January-February 2013

walnuts, spinach, Granny Smith apples, goat cheese, and a sherry mustard vinaigrette that brought all the robust flavors together. All four dishes featured flavors so heavenly that we pondered skipping the main courses and ordering another helping of each.

But thank God we didn’t. My mouth is watering at the memory of our main courses, so I will run through them quickly. All come highly recommended and despite the generous portions, you won’t want to leave any to take home. ✱ Yellowfin Tuna, Foie Gras, Carrots, Asparagus & Mushroom ragout: It tasted so fresh, I swear it must have swum right in from the Salt river. ✱ Shrimp Linguini, Spinach, tomato, Garlic Butter, Goat Cheese: Even Forrest’s friend Bubba would have a hard time finding worthy words to describe this sensational shrimp dish. ✱ Jumbo Lump Crab Cakes, Sweet Corn Cream, Succotash: Can you see the tear in my eye? That’s how good it was. ✱ Twelve-ounce Bone-In Filet: two words — it melts.

I don’t even have time to tell you about the sides, but do I need to say more than “Lobster Mashed Potatoes” and “Black truffle Macaroni & Cheese?” I didn’t think so.

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AB | January-February 2013 25

Women

2013

TO WATCH

some are leaders in education and innovation. others are the brains behind some of the biggest economic development groups in the state. regardless of their background, they all will be making an impact on Arizona in 2013.

26 AB | January-February 2013

anu bhardwaj Founder, trademission.US trademission.us Her background: Bhardwaj is a transplant to Arizona after having lived, studied and worked abroad for the past 15 years. She has a passion for global women’s issues and private equity and recently founded trademission.US and Women Investing in Women LLC, while serving as the founding co-president of 85 Broads Phoenix, a women’s network whose mission is to generate exceptional professional and social value for members.

Fun fact: “I met, married and moved to Stockholm, Sweden with my husband within a month — and no, this was not an arranged marriage.”

Her goal for 2013: “to build depth with old and new relationships while investing my time wisely in creating sustainable and scalable impact.”

SuSan anable Vice president of public affairs, Southwest region, Cox Communications cox.com Her background: The ASU graduate worked for the Arizona Senate research Staff before joining Cox Communications in 2001. She has been instrumental in creating legislation and regulatory policy that enables Cox to fairly compete and succeed, including passage of the Arizona Cable Customer tax relief Act and the creation of the Cox Advocacy Network, which has helped Cox engage employees in political advocacy.

Fun fact: She worked on a construction crew for a natural gas utility company in college and learned how to operate a bucket truck.

Her goal for 2013: “Increase community impact through the Cox Project StEM Initiative, a program to promote the great StEM education and workforce opportunities in Arizona.”

liSa borowSky

erin bradham Of counsel, Steptoe & Johnson steptoe.com Her background: Selected as a 2012 Southwest Super Lawyers “rising Star,” Bradham is a commercial litigator who represents insurance companies in Arizona and across the country in coverage and bad faith litigation. Her pro bono efforts have successfully secured asylum and other immigration relief for nine clients fleeing political persecution or harm in their home country. Additionally, Bradham is a co-founder of Steptoe’s Children’s Immigration rights Clinic and was honored as a top pro bono attorney by the Arizona Foundation for Legal Services and Education.

Fun fact: “I am a yoga fanatic. Yoga is a great way to clear my mind and spark creative solutions to tough problems.”

Her goal for 2013: “to first chair an insurance bad faith trial, to win asylum for a longstanding client whose case is being decided in 2013, and to make it to the bottom of the Grand Canyon and back.”

Partner, Davis Miles McGuire Gardner, PLLC davismiles.com Her background: The Valley native is a partner at Davis Miles McGuire Gardner, PLLC, where she chairs the HOA practice group. She has served on the Scottsdale City Council — where she chaired the Westworld Subcommittee and was a member of the Water Subcommittee — and on the Scottsdale Convention and Visitors Bureau’s Board of Directors.

Fun fact: She is a spin instructor and an avid skier, particularly at the Arizona Snowbowl in Flagstaff, which her father purchased 20 years ago and has been the operating partner since.

Her goal for 2013: “I’m looking forward to becoming more involved with my favorite charities and to traveling a bit now that my Council term is finished.”

holly daetwyler Director of forensic and valuation services practice, Grant Thornton grantthornton.com Her background: Daetwyler — who has expertise in assisting clients with complex litigation matters, financial statement fraud and neutral arbitration — was named director in the Forensic and Valuation Services Practice in late 2012. She is active with her firm’s Women at Grant Thornton program and with its community service arm, Gt CArES. She is also on the Auxiliary Board for Fresh Start Women’s Foundation.

Fun fact: While she asesses risk each day, she isn’t scared to take a little now and then via sky diving and other adventurous endeavors — she recently took up skiing.

Her goal for 2013: “Worked a ton the last 12 months getting some large projects completed. My goal is to re-engage in all the things I care about both personally and professionally. travel, friends and family and technical training and development.”

AB | January-February 2013 27

WOMEN TO WaTCH 2013 melanie hanSen COO and general counsel, Esio Franchise Company esiobev.com Her background: Before joining Esio in 2011, Hansen helped Gallagher & Kennedy expand its tax law practice, served as served as general counsel for Cold Stone Creamery, and held full P&L responsibility for target Corporation’s Northern Arizona district, where she helped generate $300 million in annual sales. In 2012, she helped launch Mesa-based Esio’s Hot & Cold Beverage System in more than 2,400 Walmart stores across the U.S. While at target, she was awarded the coveted Visionary Award in both 2008 and 2009.

Fun fact: “I am an NFL football fanatic. I have two fantasy teams, and I’m campaigning to be the first woman in my husband’s fantasy football league.”

Her goal for 2013: “Being a better wife, mom and boss. While it sounds idealistic, I believe small, actionable items can make a big difference in one’s life.”

aShley kaSarjian Associate, Snell & Wilmer swlaw.com Her background: Kasarjian is the author of the legal blog, Employment and the Law. Named the top Labor and Employment Law Blog of 2011 by LexisNexis, Employment and the Law offers detailed updates and analysis of the latest labor and employment cases, statutes and regulations. It focuses on the newsworthy issues that matter most to in-house counsel, Hr professionals and the business community.

Fun fact: “My favorite place is Canyon road in Santa Fe. When growing up, my grandmother and I would spend hours in the historic art galleries and studios.”

Her goal for 2013: “Learn something new every day, contribute more to my community, and be a positive role model for my son.”

28 AB | January-February 2013

amy hillman Executive dean of the W. P. Carey School of Business at ASU wpcarey.asu.edu Her background: In March, Hillman — a nationally renowned professor of management — will take over as dean of the W. P. Carey School when the school’s current dean, robert Mittelstaedt, retires.

Fun Fact: Her youngest Bernese Mountain Dog is named after her favorite company, Lincoln Electric. She’s been teaching a case study of that company for more than 15 years.

Goal for 2013: “to continue the W. P. Carey School’s leadership in business education. We’re committed to economic development through community engagement, cutting-edge research and student success.”

brea and halle holmeS Co-CEOs, Sweet Dream Girlz sweetdreamgirlz.com Their background: The two Phoenixbased sisters turned a frustrating search to find naturally made, eco-friendly face, body and hair products that came in fun fragrances especially for girls into Sweet Dream Girlz, the nation’s first natural beauty line created by tween and teen sisters. Their success has propelled them to be featured in USA today, Bloomberg Businessweek, and at the 2012 Nickelodeon Kids’ Choice Awards.

Fun fact: The sisters started their company in 2010 when they were 17 (Brea) and 10 (Halle).

Goal for 2013: “Continue to grow the business by fostering established relations with mass market retailers and allowing girls everywhere to be Sweet Dream Girlz from head to toe at stores everywhere.”

courtney klein johnSon Co-founder, Seed Spot seedspot.org Her background: Klein Johnson is an Arizona native who started her career as a student entrepreneur launching a nonprofit that empowers youth to create change. New Global Citizens now operates in 14 states and 33 countries. With a passion to help those with a dream, Klein Johnson now serves as the co-founder of Seed Spot, an incubator focused on supporting entrepreneurs who are developing products, services or technologies that improve people’s lives.

Fun fact: In the midst of launching Seed Spot, Klein Johnson trained for and completed the Soma Half-Ironman triathlon in tempe.

Her goals for 2013: “Support successful launch of Seed Spot ventures.

Finish writing my book. Complete full Ironman triathlon.”

WOMEN TO WaTCH 2013 michelle rider

Virginia nelSon First senior vice president – Arizona personal banking, business express, commercial and treasury management, MidFirst Bank midfirst.com Her background: Leads the bank’s Arizona retail Banking network of 24 branches, in addition to overseeing the Arizona and Oklahoma Small Business Lending teams and the Commercial Product and treasury Management groups. She serves as chair of Arizona Women’s Education and Employment (AWEE) Board of Directors.

Fun fact: A fifth-generation Arizona native, Nelson’s great-great grandfather, William Hawkins, was a member of the 1869 Powell Expedition exploring the Colorado river through the Grand Canyon.

Her goals for 2013: “Cherish family, lead by example, commit to excellence at work, serve the community, better leverage technology, and run my first half-marathon in January.”

President and CEO, WEStMArC westmarc.org Her background: rider is an Arizona native and graduated from NAU in 1996.

After interning for U.S. Senator Jon Kyl in college, she worked for political nonprofit organizations in Washington, D.C. She moved back to Arizona in 2002 and worked for the Greater Phoenix Economic Council before becoming president and CEO of WEStMArC in July of 2011.WEStMArC works to promote and enhance the economy and quality of life in the West Valley.

Fun fact: “People have been surprised that my best friend is a pit bull named Lolo.”

Her goal for 2013: “Correct misperceptions about the West Valley by promoting what it really is: the best region in the state for business opportunities, wonderful communities and special leaders.”

Patricia Soldano Chairman – Western region, GenSpring Family Offices genspring.com Her background: For more than 25 years, Soldano has been managing family offices, providing full-service, integrated family office services to wealthy families and clients around the world. Soldano developed Cymric Family Office Services into a multi-family office in 1996, and in January 2009, Cymric became part of GenSpring Family Offices.

Fun fact: “I like to dress-up for Halloween and I throw a pretty mean Halloween party for friends and family.”

Her goal for 2013: “Continue to serve my highly-valued client families with personalized, individually-tailored service; serve as a leader in the industry and continue to inspire and mentor young people looking to come into it.”

kara Sundeen Vice president of development, Fox restaurant Concepts foxrc.com Her background: You know that really beautiful patio at Olive & Ivy? How about the super industrial and masculine feel at The Arrogant Butcher? Or those cool herb boxes lining the entry at true Food Kitchen? All those unique touches that make dining at a Fox restaurant Concept memorable — from real estate selection to restaurant design and construction — are all handled by Sundeen, who has been with Fox restaurant Concepts for nearly a decade.

Fun fact: “I earned a master’s degree in sports management at the University of Denver and planned to be a sports agent ... until Sam Fox came calling.”

Her goal for 2013: “to put the foundation in place to support the growth of Fox restaurant Concepts in 2013 and 2014 while maintaining the boutique feel that makes the individual restaurants special.”

30 AB | January-February 2013

Sandra watSon CEO, Arizona Commerce Authority azcommerce.com Her background: As President and CEO of the Arizona Commerce Authority, Watson brings more than 20 years of economic development leadership to Arizona. She has helped attract hundreds of companies that have invested billions of dollars in capital and created more than 65,000 quality jobs. Under her leadership, the ACA will pursue an aggressive, five-year goal of facilitating the creation of 75,000 jobs.

Fun fact: She is also a two-time recipient of the Arizona technology Council Chairman’s Award, 2004 and 2010.

Her goal for 2013: “Strengthen Arizona’s economy by facilitating the creation of quality jobs through business creation (start up or innovation), expansion and attraction efforts in targeted, high-value base sectors throughout the state.”

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AB | January-February 2013 31

Coming August 2013

Who will be Arizona’s most influential leaders in 2013?

Arizona Power Brokers 2013 combines 400+ impressive executives in more than (50) industries with their best business advice and principles that help them succeed. They are leaders with so much experience, vision and influence that when they speak, the community listens.

These impressive leaders guide companies in every business category driving Arizona’s economy, they are the past, present and future of Arizona business.

Position your company in front of these impressive decision-makers all year long.

Categories such as: • Business Services • CEO’s & CFO’s • Commercial & Residential Real Estate • Finance/Banking/Wealth Management • Healthcare

• Manufacturing & Technology • Professional/Accounting/Law • Tourism/Entertainment/Sports • Who’s Who • Education and More

To nominate a deserving candidate, visit AzPowerBrokers.com Title Sponsor: Sample page

For more information about this must-have 32 AB | January-February 2013

8 Technology Timothy D. Cook CEO, Apple Inc. 800-275-2273 apple.com

Education: Auburn University (B.S.), Duke University (M.B.A.) Influence: Cook was VP for corporate materials at Compaq before he was hired by Apple’s Steve Jobs in 1998. He succeeded Jobs as CEO. Business advice: “So many people, particularly CEOs and top executives, get so planted in their old ideas and refuse or don’t have the courage to admit that they’re wrong. Maybe the most under-appreciated thing about Steve was that he had the courage to change his mind. It’s a talent.”

Bill Gates

Chairman, Microsoft 800-642-7676 microsoft.com

Education: Harvard College, did not graduate Influence: Gates is the former chief executive and current chairman of Microsoft, the world’s largest personal-computer software company, which he co-founded in 1975.

Business advice: “The most meaningful way to differentiate your company from your competitors, the best way to put distance between you and the crowd is to do an outstanding job with information. How you gather, manage and use information will determine whether you win or lose.”

Marissa Mayer CEO, Yahoo!

866-562-7219 yahoo.com

Education: Stanford University (B.S. and M.S.) Influence: Mayer was a long-time executive and key spokesperson for Google before she joined Yahoo! and became youngest CEO of a Fortune 500 company.

Business advice: “My personal success came from hard work.

For the first five years at Google, my colleagues and I pulled an all-nighter every week. Of course, we also had great technology and were there at the right time in the right industry.

But it couldn’t have been done without working really, really hard.”

Mark Zuckerberg CEO, Facebook 800-520-4671 facebook.com

Education: Harvard College, did not graduate.

Influence: Zuckerberg is a computer programmer and Internet entrepreneur who is best known as one of five co-founders of the social networking site Facebook. He is the chairman and chief executive of Facebook, Inc. Business advice: “All of my friends who have younger siblings who are going to college or high school - my number one piece of advice is: You should learn how to program.”

WHO TO WATCH Dick Costolo, CEO, Twitter 415-222-9670 twitter.com

Larry Page, CEO, Google 650-253-0000 google.com

Education: University of Michigan Influence: In 2004, Costolo co-founded FeedBurner, which he sold to Google before joining Twitter in 2009. In 2011, President Obama appointed Costolo to the National Security Telecommunications Advisory Committee.

Education: University of Michigan (B.S.), Stanford University (M.S.) Influence: Page is an American computer scientist and Internet entrepreneur who, with Sergey Brin, is best known as the co-founder of Google.

POWERBROKERS 2013

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annual book, please call 602.277.6045.

AB | January-February 2013 33

HEaT (HeAltHcAre, energy, AerospAce And tecHnology)

A cleAr Arizona energy consortium’s energy roadmap

I

magine Arizona as the energy hub of the Southwest — where major regional transmission lines tie into infrastructure in the state and serve a growing regional demand for energy. Arizona would be a place where an increasing percentage of jobs are related to the energy industry, whether in manufacturing, generation, transmission, energy efficiency, service or technology innovation. Many of these jobs would be higher-wage jobs requiring a skilled labor force fed by Arizona’s schools and universities. Arizona could be a hub of energy-sector jobs, with factories making equipment for the industry and power plants shipping electricity to neighboring states via new power lines, all contributing to a better economy.

That is the essence of the Arizona Energy Consortium’s Energy 34 AB | January-February 2013

roadmap, which the group hopes with be a catalyst for the state’s energy industry in the same way Arizona’s Bioscience roadmap helped the state increase bioscience jobs by 41 percent and helped increase the number of bioscience establishments by 27 percent during its 10-year plan.

“It was important to create this document to give the energy industry a unified voice and direction,” said Michelle De Blasi, co-chair of the AEC and a shareholder at Greenberg traurig. “The energy industry is going to be here forever. We are always going to need energy. So the roadmap was designed to make the industry better for everyone — consumers, developers, legislators. So it was critical that we get it right.”

This is the vision the roadmap hopes to realize over the next

By MICHAEL GOSSIE

direction puts state of path to build industry, create jobs

decade: Arizona is the energy hub of the Southwest, with a diverse energy mix supporting reliable transmission, a strong base of manufacturing facilities, increased numbers of higher wage jobs, and world-class research institutions, resulting in increased economic development for the state and region.

Once that vision is realized, De Blasi said the state can expect to reap these benefits:  Enhanced job creation and higher-wage jobs within Arizona  Increased state economic revenue  Enhanced energy export potential  Heightened energy self-sufficiency and national and state security  Increased transmission reliability

 Continued low cost energy “This roadmap is going to help Arizona be looked at differently from outside its borders,” said Chris Davey, co-chair with De Blasi of the AEC and president of EnviroMission, which is developing a solar tower in Western Arizona. “The roadmap will create a sense of certainty, which appeals to the finance community. So when they are looking to invest, that certainty creates a more attractive environment for developers and investors.”

Davey and De Blasi said they will be rolling out the roadmap this year, presenting it to groups throughout the state. For more information on the roadmap, visit aztechcouncil.org.

AB | January-February 2013 35

HEaT

World-class entertainment

right here

in the Valley Photo: Tim Trumble

ROADMAP CONTRIBUTORS The BEST of Broadway and so much more!

With the mission of Connecting Communities™, ASU Gammage underscores ASU’s vision with innovative programs that change lives and make a difference in our community.

Learn more about ASU GAMMAGE, the Frank Lloyd Wright designed performing arts center and the HEART OF THE ARTS in the Valley for nearly 50 years.

asugammage.com

The arizona Energy Consortium enlisted the help of a wide variety of experts from several different industries to review and/or provide input on the arizona Energy Roadmap. Here are some of those contributors: Arizona commerce Authority Arizona governor’s office of energy policy Arizona public service bridge strategy group brownstein Hyatt Farber schreck city of mesa, the office of the mayor cleantech open dircks dIrtt dmb Associates energy services coalition enviromission Faithful+gould greater phoenix economic council greenberg traurig the green chamber – greater phoenix golder Associates Hensel phelps Ikoloji Institute for tribal environmental professionals J.d. porter & Associates Kolbe connect matthew mcdonnell ormond group, llc rg schmelzer, Inc. salt river project stream energy tucson electric power Valley Forward Valley partnership

GET INVOLVED

under the leadership of the Arizona technology council (AZtc), the Arizona energy consortium (Aec) represents a credible, member-driven voice for Arizona’s growing energy industry. the Aec holds monthly stakeholder meetings to stimulate discussions concerning the current challenges faced within the industry. to learn more or to join, visit aztechcouncil.org.

36 AB | January-February 2013

2012

RESERVE YOUR SEATS FOR THE

MARCH 7, 2013 | 6:00 – 8:00pm Ritz Carlton | Dinner Reception Az Business Magazine is proud to host the 6th Annual Health Care Leadership Awards on March 7, 2012. We’ll honor the individuals and organizations that have made strides in helping Arizonans receive better health care.

Register at AzBusinessMagazine.com RSVP by February 28, 2013

For information on sponsorships, individual tickets and corporate tables, please email: events@azBIGmedia.com or call 602-277-6045.

and

Ray Sadowski

Avnet’s Board of Directors, Executive Board, colleagues, friends and family congratulate you on this well-deserved recognition as the Arizona CFO of the Year!* For decades we have relied on your practical and prudent advice. Your impact on Avnet is tremendous. Thanks to you, Avnet has become one of the most profitable companies in its industry. Through its many acquisitions, Avnet has become a global leader in the electronic components and computer products industries. Through the introduction of a value-based management initiative, Avnet has seen higher returns on capital employed. * Avnet Chief Financial Officer Ray Sadowski was selected by the Arizona Chapter of Financial Executives International (FEI), an association representing more than 15,000 senior finance professionals.

Senior Vice President, Avnet, Inc. Chief Financial Officer

AB | January-February 2013 37

HEaT

Women

2013

TO WATCH A look at some of the innovators who will be making waves in healthcare, energy, aerospace and technology

38 AB | January-February 2013

cheVy humPhrey President and CEO, Arizona Science Center azscience.org Her background: She oversees the $8 million operation of Arizona Science Center’s 185,000-square-foot facilities with more than 400 employees and volunteers. She is in line to become the next president of the Association of Science-technology Centers, an international organization representing science centers and museums with more than 600 members in more than 40 countries worldwide. She currently serves as its secretary-treasurer.

Fun fact: Humphrey secured the largest gift in the Center’s history – $3.5 million.

Her goal for 2013: “Maintain excellence as Arizona’s largest provider of informal science education while providing educators with professional development and resources supporting the new common core education standards.”

ruth carter Owner, Carter Law Firm carterlawaz.com Her background: After graduating from ASU Law School in 2011, she opened her own law firm in January 2012 and focused her practice on social media law, intellectual property, business formation and contracts, and flash mob law. She will deliver a talk entitled “Protecting Your Copyrights in Digital Media” at the South By Southwest Interactive (SXSW) in March 2013. She also wrote the book “The Legal Side of Blogging: How Not to get Sued, Fired, Arrested, or Killed.”

Fun fact: She was selected as an American Bar Association Legal rebel in September 2012.

Her goal for 2013: to help entrepreneurs, writers and artists turn their ideas into reality, to help them push the limits of what’s possible without crossing the line.

mary juetten

michelle de blaSi Shareholder, Greenberg traurig gtlaw.com Her background: De Blasi focuses her practice on environmental law, with an emphasis on natural resources matters.

She advises local and multi-national clients on energy and environmental sustainability, including the development of traditional and renewable energy power plants, climate change and greenhouse gas emissions. She is a leader in many community organizations, including serving as the co-chair of the Arizona Energy Consortium, which has recently released the Arizona Energy roadmap to further develop the state’s energy industry.

Fun fact: “I wanted to be an environmental attorney since junior high. Working for six years at NOAA starting in law school was an amazing way to begin my career.”

Her goal for 2013: “Continue to assist my clients’ growth and expansion, including improving the regulatory and business atmosphere in the areas where they are located.”

Founder and CEO, traklight.com traklight.com Her background: While earning her J.D. at ASU, Juetten combined her new knowledge of the law with accounting designations and 25 years of management, business and financial consulting experience to create traklight.com in 2010. traklight is an online software and service company that helps inventors, creators, start-up or small companies identify, secure and manage their intellectual property to reduce the risk of infringement and IP loss, all without any prior knowledge of IP. Fun fact: She played ice hockey in Canada and Phoenix.

Her goal for 2013: “I plan to spend more time outside with my husband: golfing and hiking. traklight will build upon our October launch and expand nationally in 2013.”

maryann guerra CEO, BioAccel bioaccel.org Her background: BioAccel was named the most promising initiative among the six winners of SStI’s 2012 Excellence in tBED (technology-based economic development) awards. In three years, BioAccel — whose mission is to transform high-risk technologies into new businesses and high-wage jobs — has supported 11 companies in Arizona, investing more than $4 million directly as well as helping get an additional $15.5 million in downstream funding.

Fun fact: “I love camping outdoors in tents. After gathering wood from the forest, I build the campfire, cook, then relax under the moonlight — with wine if possible.”

Her goal for 2013: “Personally: spend more time with my husband. Professionally: expand BioAccel’s overall capacity, validate BioInspire as a model and help launch the BioAccel Accelerator Fund.”

AB | January-February 2013 39

HEaT

kim kundert Vice president of clinical operations, Clinical research Advantage crastudies.com Her background: Kundert received the 2012 Silver Stevie Award — honoring the best and brightest female entrepreneurs and executives — for Female Executive of the Year in the Business Services category. Kundert is a driving force behind the rapid growth of CrA, a clinical trial management organization that has helped trial sponsors bring drugs to market more quickly and efficiently.

Fun fact: She was born in Germany on Christmas Day. Her goal for 2013: “My goal is to open 20 new clinical trial sites.”

Paula o’neal wichterman Vice president, medical private banker, National Bank of Arizona nbarizona.com Her background: Prior to joining NB|AZ, Wichterman spent 9 years in various advisor roles at two other lending institutions in both private banking and credit administration. In her role at NB|AZ, Wichterman is responsible for increasing NB|AZ’s focus on the physician and medical banking market.

Fun fact: “Being the Southern girl that I am, I LOVE to shoot sporting clays. It is a great stress reliever after a long week at work.”

Her goal for 2013: “I want to always inspire my family and friends. I try my best to lead by example. Whether it is at home or at work, I want to be the best that I can be.”

angela PereZ Partner, Snell & Wilmer swlaw.com Her background: Perez is an Arizona native who holds a biology degree from Harvard University and law degree from The University of Arizona. She practices law with a focus on clients in the biotechnology industry. Perez represents companies at all stages of their life cycle, from start-up to liquidity. Perez is committed to using her education and experience to facilitate the growth of Arizona’s biotech industry.

Fun fact: Formed Snell & Wilmer’s Bioscience and Healthcare Industry Group shortly after graduating from law school.

Her goal for 2013: “Contribute to the success of my firm and clients by providing sound legal advice; support Arizona’s biotech industry; and shower my young family with love.”

jeSSica langbaum Principal scientist, Banner Alzheimer’s Institute banneralz.org Her background: Langbaum is actively involved in research activities focusing on the use of brain imaging for studying the earliest evidence of Alzheimer’s and on the design and execution of preclinical Alzheimer’s treatment trials. Langbaum has published papers in leading scientific journals on cognitive training, brain imaging and Alzheimer’s disease.

Fun fact: Her family has been in Arizona for generations.

Her goal for 2013: “Enroll 100,000 people in our Alzheimer’s Prevention registry (endALZnow.org/registry), launch the Alzheimer’s Prevention Initiative (API)/Genentech trial, prepare for the next API-led trial, and potty-train my son.”

40 AB | January-February 2013

darcy renFro Vice president and coordinator of the Arizona StEM Network, Science Foundation Arizona (SFAz) sfaz.org Her background: renfro is leading the way for Arizona’s StEM — science, technology, engineering, math — education initiatives. She spearheaded the development of SFAz’s Arizona StEM Network, a first-of-its-kind strategic effort to help transform Arizona’s educational system. The Network will help teachers and students prepare for the state-adopted, internationally benchmarked Common Core Standards, higher-education and careers that will help ensure our state remains globally competitive.

Fun fact: Arizona is one of 16 states with existing StEM Networks.

Her goal for 2013: “Increase the access and quality of StEM opportunities for Arizona’s students and teachers to inspire excitement and achievement in math and science.”

HEaT joyce Schroeder

Virginia rybSki President and CEO, regenesis Biomedical, Inc. regenesisbio.com Her background: rybski has 35 years of experience founding, building and growing emerging bioscience companies and developing and launching advanced-technology, healthcarerelated products. She strategically positioned regenesis as a regenerative medicine business; raised $5.3 million in capital; has grown sales for 8 consecutive years; and helped it earn a spot on the Inc. 5000 list of the fastest-growing private companies.

Fun fact: She once jumped off the hanging cliffs in La Jolla to “fly” over the ocean.

Her goal for 2013: “Complete assembling clinical data for our lead product, Provant; to expand payers sources; and to enter the European Market.”

Chief science officer, Arizona Cancer Therapeutics arizonacancertherapeutics.com Her background: Schroeder, program co-leader in Cancer Biology and Genetics at the Arizona Cancer Center, is moving toward clinical trials for breast cancer treatment that inhibits metastatic breast cancer growth at cellular level, and it is non-toxic. In layman’s terms, this could block breast cancer growth without the toxic side effects of chemotherapy. She is also associate professor of molecular and cellular biology at the University of Arizona.

Fun fact: She is an avid Stephen King reader and loves Star Wars.

Her goal for 2013: “My goal for 2013 is to get our breast cancer drug approved by the FDA to be given to patients.”

lori Singleton Manager of Sustainability Initiatives and technologies, SrP srpnet.com Her background: Singleton’s primary focus at SrP is environmental and renewable energy issues. Under her direction, SrP has provided incentives to more than 12,000 customers who have installed solar energy systems on their homes and businesses. In addition, she is an active volunteer and effective advocate serving on the boards of Audubon of Arizona and the National Solar Energy Power Association.

Fun fact: “Ballroom dancing is my passion. For me, it not only helps keep me physically fit, but allows me to focus on something other than looming deadlines and work projects.”

Her goal for 2013: “As a Valley Forward board member, I will work to promote environmental quality statewide, elevate our state’s image and drive policy as the organization evolves into Arizona Forward.”

joy SeitZ Vice president of business and policy development, American Solar americanpv.com Her background: Since joining Scottsdale-based American Solar in 2009, Seitz has been a leading advocate for Arizona’s solar industry, making her presence felt everywhere that decisions are made about solar energy — city halls, Salt river Project and the Arizona Corporation Commission. Her company has designed and installed solar electric for more than 3,500 customers and created partnership with homebuilders including Shea Homes and AV Homes.

Fun fact: “I am a proud ASU West Campus graduate from the School of Global Management and Leadership, with an emphasis in finance.”

Her goal for 2013: “to put the power of solar energy into the hand of every homeowner. It is time that every Arizona homeowner understands that they can control what energy powers their home.”

42 AB | January-February 2013

loiS wardell Principal, Arapahoe Scitech arapahost.com Her background: Wardell’s technology focus includes unmanned aerial vehicles (UAVs) and associated sensor technologies. By developing partnerships with other innovators, she has been able to tackle technical challenges in emerging fields such as those in polar science. One example is a sterilization system for an ice drill that will access an Antarctic sub-glacial lake below a half-mile of ice to explore this unknown frontier on our planet.

Fun fact: Wardell has worked on all seven continents.

Her goal for 2013: “My goals include continued development of technology for exploration (both Earth and beyond) and to increase my focus on outreach activities to inspire students.”

HEaT: CEO PROFILE

By MICHAEL GOSSIE Photo By COrY BErGqUISt

ERIC MaRCus CEO, Marcus Networking marcusnt.com What does Marcus Networking do?

We are a technology and telecommunications company. We manage people’s infrastructure. The easiest way to describe it is you can give us an empty building, and we can cable it, bring in the dial tone, install the phone system, procure all the equipment, set up your private industry software, and then we can support it on a 24-hour basis. Our biggest customer base is medical providers. We work a lot with electronic medical records (EMr) and behavioral health.

How is being CEO of Marcus Networking different from being CEO of a company in a different industry?

It’s fun to be the CEO because I get to write my own rules. It’s nice to go out, meet with clients, build a relationship, and let them know that at the end of the day, the company will be there for them, and I will be there to support them.

How did you start in your industry?

I got into the It field in 1999, working for a software company that did network management. That company grew from about 15 employees to about 155. As that company grew, my responsibilities grew.

Were there challenges to launching a tech company in Arizona?

For startup capital, I had to use money I had saved working at my previous job. The biggest challenge I had was with credit capital to support projects. You can sell a project all day long for $100,000, but if you don’t have the capital to buy the equipment, you’re kind of dead in the water.

What qualities do you have that make you an effective CEO for Marcus Networking?

I am able to educate a client about what they need to do for their company and let them make the decision. It’s their money, their business, their infrastructure; and at the end of the day, it’s my job to be that consultant to educate them and take them from Point A to Point B and decide what is best to build them as a business.

What has been the biggest change you’ve seen in your industry since you started?

The advance of technology. What I mean by that is the cost of

equipment and the specifications of equipment like hard drives and bandwidth. ten years ago, a large hard drive was consider to be 73 gigs. Now, you can buy two- or three-terabyte hard drives for a fraction of that cost.

What changes do you see coming?

Equipment is going to get faster. As bandwidth becomes cheaper or larger, you’re going to see more teleconferencing and unified communication.

What is your greatest accomplishment?

Being in business for 10 years. Being a small business, it’s tough.

We had our best years through the worst times. This year, our business is up 50 percent, and I know there are companies out there closing their doors or downsizing. The thing I’m most proud is we can scale our business tomorrow; so if I found five salespeople in California tomorrow that wanted to come on board and start selling our product and grow our business, I could hire them tomorrow and start.

How were you able to weather the economic downturn so well?

We are in the medical industry. Doctors have to be on EMr systems. It’s mandated by the federal government, so the government has created a need for our services.

What advice would you give someone looking to start a tech company?

Make sure you’re very organized, and make sure you’re ready to sacrifice and be ready to work any day and any time. If we have a doctor call us at 3 a.m. and we don’t pick up that phone, we don’t have a job.

AB | January-February 2013 43

HEaT

By MICHAEL GOSSIE

sKy’s tHe lImIt Asu innovation center sparks economic revitalization along scottsdale’s mcdowell road corridor

N

o one would have guessed that a catalyst of innovation could rise from the ruins of a vacant shopping mall. And certainly no one could imagine that happening in the middle of a crippling economic downturn that affected the entire world.

But that’s what’s happened in Scottsdale.

“It is hard to think of a business attraction initiative the city has recently used that has not mentioned SkySong as a major attribute,” says Scottsdale Mayor Jim Lane. “SkySong has a national reputation, and as it grows, it will continue to elevate Scottsdale’s standing.”

SkySong, the ASU Scottsdale Innovation Center, opened in 2007 at the location that was once the Los Arcos Mall and has become one of the biggest success stories in the world when it comes to incubator and technology centers.

The vision for SkySong was to create a mixed-use project of 1.2 million square feet that would draw entrepreneurs and innovators into the project, give them the resources they needed to grow and thrive, and provide them an exceptional home for when their businesses began to take off. The vision started with Arizona State University President Michael Crow, who wanted to create the kind of technological and innovation-minded environment that would attract companies and job creation to the metro Phoenix area.

In addition to becoming home to more than 50 companies from 10 countries around the world, SkySong has become the anchor to what economic developers are calling Scottsdale’s McDowell road 44 AB | January-February 2013

Corridor, a community where innovation, technology, business and retailers have converged to create economic opportunities.

Scottsdale economic development officials say more than $200 million of new capital is being invested along the McDowell road Corridor. And the economic impact of SkySong — is instead was estimated to be $10 billion over the course of the next 30 years — is only expected to grow with the addition of SkySong 3.

“The targeted opening date for SkySong 3 is in 2014,” says SkySong spokesman tom Evans. “We anticipate a kick-off in construction activity in the second quarter of 2013. In the meantime, work is continuing on the new residential units that are part of the SkySong project. The $45 million, four-story project will include 325 residential units, and is being built by Mt Builders. todd & Associates is the architecture firm for the project. The first of those units will open for occupancy in October 2013.”

Evans says you can expect to see companies that mirror the spirit, energy and innovation of the firms that filled SkySong 1 and 2 when SkySong 3 opens.

“The businesses at SkySong share the spirit of innovation and technology that is so critical to the vision of SkySong,” Evans says. “Companies such as Jobing.com, Channel Intelligence and Adaptive Curriculum will serve as models for the new companies coming into SkySong 3 and for the smaller companies in the ASU SkySong incubator space. The companies at SkySong 3 will also continue the positive impact the project is having on the McDowell road Corridor, thanks to the success of SkySong 1 and 2 over the past few years.”

Innovation. Technology. Success.

S

kySong, The ASU Scottsdale Innovation Center has been one of the biggest success stories in the Valley economy over the past few years. It has fulfilled its mission of becoming a hub for companies from startups to Fortune 500 companies that thrive on innovation and technology. The unique culture at SkySong, as well as the on-site resources of Arizona State University, the largest and fastest growing research institution in the country, have helped companies at SkySong experience dramatic growth.

Now at 97 percent occupancy at its first two buildings, SkySong is preparing for the future. The project has begun pre-leasing on SkySong III and SkySong IV (below), with completion of the additional 300,000 square feet of office space scheduled for late 2013.

Whether your company is a larger organization looking for significant build-to-suit space, or a startup looking for ways to get a leg up in a superior working environment, we invite you to become another SkySong success story.

Visit www.skysongcenter.com for more information, or contact: ASU SkySong, Janice Kleinwort 480.884.1860 | janice.kleinwort@asu.edu SkySong commercial office opportunities: Andrew Cheney, Lee & Associates 602.954.3769 | e-mail acheney@leearizona.com

Rendering of SkySong III and IV

The Small Business

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Arizona Real Estate Achievement

NOMINATIONS ARE NOW OPEN The Arizona Real Estate Achievement Awards, AREA Awards, are Arizona’s most prestigious residential real estate awards. The entire residential real estate industry from real estate companies to communities, law firms and builders, and mortgage brokers and banks will be honored at the AREA Awards, presented by Az Business Magazine.

Visit AzBusinessMagazine.com to view award categories and to nominate a deserving candidate.

For sponsorship information call, 602.277.6045

46 AB | January-February 2013

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2013 ExcEllEncE in corporatE counsEl Acc Awards honor Arizonaâ&#x20AC;&#x2122;s most accomplished in-house attorneys Az Business is recognizing the vital role that in-house counsel plays in business with the Arizona Corporate Counsel Awards. The 15 finalists and winners will be honored Thursday, January 10 at the Ritz Carlton Phoenix.

AB | January-February 2013 47

2013 FINaLIsTs

{

Andrejs K. bunkse General Counsel Redflex Traffic Systems, Inc. Bunkse joined redflex in 2009 to create a legal department for the company, which has customers in 22 states and Canada, representing more than 250 cities — each operating under its own unique set of laws. redflex’s products have been scrutinized and have been subjected to a heavy defense litigation practice.

Under Bunkse’s management of a staff of six and a wide network of lobbyists, lawyers and consultants, his department furthers redflex’s efforts in setting positive legal precedent, improving legislative positioning, as well as defending a diverse set of external and internal legal challenges.

48 AB | January-February 2013

{

rebecca collins assoCiate General Counsel General Dynamics C4 Systems Collins was responsible for all employment law aspects in establishing General Dynamics C4 Systems — which has its roots in Motorola’s military business — as a separate legal entity. Through the last decade, Collins has handled the employment law aspects of approximately eight acquisitions, along with major internal reorganizations. Combined with organic growth, this resulted in the workforce increasing to almost 11,000 employees. Collins has managed the significant employment law challenges associated with rapid growth and is now managing the issues associated with workforce reductions necessitated by economic conditions and reductions by the Department of Defense.

{

Janice dinner assoCiate General Counsel Banner Health Dinner has been an integral part of the Arizona health community for the past 27 years. As in-house counsel for Samaritan Health, now Banner Health, she has been responsible for key operational components of the hospital system, including working with 13 Banner medical staffs in Arizona and with Banner facilities in other states to improve medical staff bylaws and their peer review processes; addressing hospital regulatory issues; serving as a legal and strategy advisor to the compliance department, risk management and to other attorneys within the legal department. As a resource to Banner’s lobbyist, she has proposed legislation and has analyzed the impact of legislation that has been introduced.

YOUR MARKETS MAY BE GLOBAL BUT YOUR LEGAL ISSUES ARE LOCAL At Squire Sanders, we combine the vast reach of a worldwide legal practice with detailed knowledge of the laws and languages we encounter in each market. We are as global â&#x20AC;&#x201C; or as local â&#x20AC;&#x201C; as you need. Squire Sanders supports the dedication of the ACC in promoting the professional and business interests of corporate in-house counsel around the world.

Joseph M. Crabb Partner +1 602 528 4084 joseph.crabb@squiresanders.com 37 Offices in 18 Countries squiresanders.com

2013 FINaLIsTs

{

John Fay General Counsel and viCe president of produCt development LawLogix Fay is responsible for drafting and negotiating all software agreements for LawLogix, a leading provider of I-9 compliance, E-verify and immigration case management software. Fay plays an integral role at LawLogix, lending his considerable legal and technical expertise to ensure that both the company and its products are in compliance with constantly changing laws and regulations. Fay is responsible for interfacing with members of the Department of Homeland Security to ensure regulatory compliance and overseeing product design and functionality. Since he joined the company, Fay has standardized and simplified all licensing contracts to vastly improve the procurement process with large client organizations.

50 AB | January-February 2013

{

chad Freed senior viCe president, business development and General Counsel Universal Technical Institute, Inc. Freed has been general counsel of Universal technical Institute since shortly following its initial public offering in 2003. Freed now presides over the development of a sophisticated law department, which includes five lawyers and 18 people dealing with general legal matters as well as the complex regulatory framework governing companies within the for-profit education industry. The last two years have included significant challenges relating to industry-wide scrutiny by regulators and legislators. Freed has become a subject matter expert with respect to federal and state governmental regulations as they affect the company, and serves as a value-added business counselor to senior management.

{

brad gazaway viCe president and Corporate Counsel The Dial Corporation Gazaway is a former corporate and securities attorney for Snell & Wilmer (1998-2003) and a 1992 graduate of the U.S. Naval Academy.

He graduated in 1998 from the University of Iowa law school. While working with Gazaway, other attorneys are impressed not only with his professional demeanor and practical approach, but also with his passion for the company and the pride he takes in the companyâ&#x20AC;&#x2122;s accomplishments. Both Gazaway and Dial value community involvement, opening their headquarters for a United Way tour, with Gazaway sharing his personal interest in helping those less fortunate with those who toured.

2013 FINaLIsTs

{

melanie Hansen Coo and General Counsel Esio Beverage Company/ Esio Franchise Hansen is recognized for her skill in taking complicated legal issues and boiling them down into a format that allows her company to move its business plan forward. Hansen recently oversaw the Esio Beverage Company’s national retail launch in 2,400 Walmart stores. During the process, Hansen dealt with nearly every major beverage company — including Kraft, Campbell’s, Brisk and Apple & Eve — and negotiated deals with Walmart, both international and domestic manufacturing partners, and oversaw technology patents.

“Melanie is both a brilliant legal and business mind and is uniquely gifted at balancing business and legal decisions without stifling business flow,” says Esio Co-Founder Lyle Myers.

52 AB | January-February 2013

{

george Hittner Corporate seCretary, General Counsel, viCe president of Governmental relations American Traffic Solutions

Hittner has overseen more than 150 lawsuits for AtS throughout the country, ranging from minor cases to multi-million-dollar class actions, with a 98 percent win rate since October 2008.

Some highlights: ● Under Hittner’s leadership, AtS has never lost a constitutional challenge to one of its programs. ● Hittner led the successful legal strategy which resulted in a decision by the 6th Circuit U.S. Court of Appeals that found the Akron, Ohio, intersection and speed camera safety ordinance legal and constitutional. ● Hittner’s focus on election law has protected the photo enforcement industry from illegal elections, including having three illegal elections declared invalid.

{

michael l.

Kaplan senior viCe president, General Counsel, and Cso StandardAero Kaplan was a partner at Greenberg traurig before leaving in 2010 to join StandardAero, which is part of Dubai Aerospace Enterprises and specializes aircraft engine maintenance, repair and overhaul, as well as nose-to-tail aircraft services, including airframe, interior refurbishment, avionics and paint services for general, commercial and military aviation. With more than 4,000 employees and customers located across the globe, Kaplan’s job requires that he regularly deal with sophisticated legal matters and manage risk in a wide variety of areas, including negotiating multi-million dollar contracts, commercial litigation, governmental relations, environmental, regulatory matters, and labor and employment.

A special recognition for something that happens everyday.

Congratulations to the 2013 Arizona Corporate Counsel Award Honorees

Banner Health is proud of the exceptional work Janice Dinner does every day on our behalf and is very deserving of her recognition as a finalist for the 2013 Arizona Corporate Counsel Awards.

She makes a difference to our organization in countless ways so we can make a difference to the communities we serve.

contact: Joel W. Nomkin, Phoenix Managing Partner phone: 602.351.8000 • email: JNomkin@perkinscoie.com

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AB | January-February 2013 53

2013 FINALISTS

{

Brandon Lombardi General counsel and secretary Sprouts Farmers Markets, LLC Lombardi represented Sprouts while at Greenberg Traurig, going back to when Sprouts was a relatively small, Arizona-only, family-run operation.

He developed the trust of its executive leadership so that when the time came in late 2011 that Sprouts’ current ownership — a large New York-based private equity group — determined that Sprouts needed its first in-house counsel, they sought him out. In the 10 months Lombardi has been at Sprouts, he successfully led Sprouts’ merger with Sunflower Farmers Markets, growing Sprouts to a 148-store chain of natural and organic grocery stores, with nearly 12,000 employees and $2 billion in 2012 projected revenue.

54 AB | January-February 2013

{

Harriet MountcastleWalsh Vice president and General counsel Honeywell International Since assuming the role of aerospace general counsel in 2005, MountcastleWalsh has forged a successful vision for the Honeywell Aerospace, Law, Contracts and Export (LC&E) function.

Some highlights: ● Developed policies, procedures and best practices to streamline functionalization and reduce total expenses by more than 35 percent. ● Consistently strives to upgrade talent in her 400-person department through hiring efforts and through a training, mentoring and development process. ● Enabled growth at Honeywell through the development of its patent portfolio and IP licensing. ● Proactive litigation management has helped reduce Honeywell’s spending on outside counsel by more than 50 percent.

{

Susan Navran executiVe Vice president, external operations Blue Cross Blue Shield of Arizona After serving many years as general counsel, Navran is currently serving in a business role. During her tenure as general counsel, Navran reduced the size of BCBSAZ’s outside counsel budget by hiring qualified counsel; created basic contract templates and parameters; improved communication within department and with customers through regular meetings, updates and intake processes; instituted client satisfaction surveys and improvements based on input; implemented rotation of lawyers to broaden access and knowledge of business; and instituted required reports and a regulatory filing log and follow-up procedure.

83957

Blue Cross Blue Shield of Arizona is proud to recognize our own Sue Navran and our stellar legal team for their nomination. And we applaud the accomplishments of all this yearâ&#x20AC;&#x2122;s nominees as well.

Your dedication to your field helps all of us reach higher.

RESERVE YOUR SEATS FOR THE

Awards February 7, 2013 | 6 p.m. - 8 p.m.

Ritz Carlton, Phoenix Visit AzBusinessMagazine.com or call 602.277.6045 to reserve your seat.

RSVP by January 31, 2013

AB | January-February 2013 55

2013 FINALISTS

Reason says: safeguards can prevent fraud and corruption.

Instinct says: nimble is better for driving growth.

Grant Thornton refers to Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd.

Con�ratulations

{

Amy Rasor deputy General counsel American Traffic Solutions Colleagues say Rasor has what it takes to create and maintain a well-oiled legal team as an in-house counsel. Some of her accomplishments include: ● Leading the legal aspects of two company acquisitions and countless lawsuits. ● After joining the legal team at ATS as the first associate general counsel, she was promoted to deputy general counsel the following year. She works with two other attorneys and two paralegals. ● Colleagues say Rasor is unequalled in her ability to foresee potential legal issues and head them off before they become a real problem for the company.

To Janice Dinner

2013 Arizona Corporate Counsel Award Nominee Janice serves as Associate Counsel for Banner Health and as a leader in the Health Care Legal industry for more than 27 years.

Janice, from all of us at Nussbaum Gillis & Dinner, but especially your husband and our senior partner, Dean, we are very proud of you.

N ussbaum Gillis & DiNNer

,

P.C.

AT TO RN EYS AT LAW

480.609.0011

www.ngdlaw.com 14850 N. Scottsdale Rd, Ste 450 Scottsdale, AZ 85254

BankruptcyLaw Law - |Commercial Commercial Litigation Litigation |- Construction Construction Law Bankruptcy Law Corporate Law Real Estate Estate Law Business Law Law Corporate Law -| Real Law -| Business

56 AB | January-February 2013

{

Michael Reagan executiVe Vice president and General counsel Kahala Corp Reagan has been Kahala’s general counsel since January 2000.

From 1993 to 1995, he served as a senior accountant with Deloitte & Touche in Phoenix in its audit division. He is currently a licensed attorney, as well as a licensed Certified Public Accountant (CPA), in the state of Arizona. Reagan holds a B.S. in accounting from the University of Arizona and a J.D. from Arizona State University. In Reagan’s 12 years at Kahala, the company has grown from a handful of employees to more than 250, from one brand to 14 brands, and the legal department has grown from one lawyer to six lawyers and 10 paralegals.

We Are Honored

Congratulations Are In Order Please join Honeywell Aerospace in celebrating Harriet MountcastleWalsh’s selection as finalist for the Arizona Corporate Counsel Awards. We are truly honored. Honeywell Aerospace innovates and

General Dynamics C4 Systems congratulates Rebecca Collins for being selected as a finalist for a 2013 Arizona Corporate Counsel Award in recognition of the outstanding legal support she provides to General Dynamics!

integrates thousands of products and services to advance safety, efficiency and comfort for user experiences worldwide.

Visit us online at aerospace.honeywell.com © 2013 Honeywell International Inc. All rights reserved © Copyright 2012 General Dynamics. All rights reserved.

AB | January-February 2013 57

AZ HOTEL & LODGING ASSOCIATION

By MICHAEL GOSSIE Photo By GLORY SHIM

Tourism groups merge to form the Arizona Lodging & Tourism Association and give the industry more strength and unity

GROUPS TAKE FLIGHT WITH POLITIcAL PUNcH

C

all it strength in numbers, or strength in unity.

“With the challenges that the tourism industry has faced over the past several years, our industry has had to come together to better vocalize the importance of tourism to Arizona’s economy,” says Debbie Johnson, a longtime advocate of Arizona tourism. “In doing so, it became evidently clear that the Arizona Tourism Alliance and the Arizona Hotel & Lodging Association had virtually the same missions and goals and could have a stronger, more cohesive voice if united; so the conversations of mergers began amongst the two organization’s leadership.”

Those conversations led to the two groups combining forces early in 2012 to form the Arizona Lodging & Tourism Association (AzLTA), with Johnson leading the charge as the group’s president and CEO. The new organization has a combined membership of almost 500 and has helped broaden the reach and scope of the tourism industry’s branding and message.

“Arizona must continue to think globally as well as act locally,” says Doug Yonko, executive vice president of communications for Hensley Beverage Co. and chairman of AzLTA’s board. “We are a premiere destination. However, competition for tourism dollars is fierce so we must stand together by working closely with the private and public sector and our legislature to ensure continued growth and increased market share of the tourism dollar.”

AzLTA’s leaders say the new supergroup will give the 58 AB | January-February 2013

Debbie Johnson, president and CEO of the Arizona Lodging and Tourism Association, led both the Arizona Hotel & Lodging Association and the Arizona Tourism Alliance before the groups merged.

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2013 59

AZ HOTEL & LODGING ASSOCIATION tourism industry the ability to speak from one unified voice, particularly on the legislative front, which will strengthen the industry.

“AzLTA unites hoteliers with key segments of the tourism industry — including Phoenix Sky Harbor Airport, many state convention bureaus, private business and the Arizona Office of Tourism,” Yonka says. “The economic impact of the tourism industry affects most businesses at some level and — very importantly — our state tax revenue stream. The tourism and hospitality industry represents the second leading driver of our state’s economy, subsequently it is crucial that the business community and our legislature continue to recognize and support this pillar of our economy.”

Along those lines, the goal of the AzLTA is to work with and educate state legislators, offering training to those in the industry through workshops and seminars, and uniting those industries that are impacted by tourism. Its specific mission, Johnson says, is “to unify, protect, educate and promote the interests of the Arizona lodging and tourism industry.

“This mission is a combination of the missions of the former two groups, which were similar in structure and tone prior to the merger, but now have greater value after the merger,” she says. “AzLTA, and the Super PAC that the organization recently created, is now recognized as one of the leading industry voices in the state.”

AzLTA PAC is the state’s 25th Super Political Action Committee (PAC), which is expected to send a message to lawmakers about the strength and impact of tourism across the state. A Super PAC requires a minimum of 500 people to donate a minimum of $10 each. The funds can then be used to show support for candidates who understand the value of tourism to Arizona.

“AzLTA will have a seat at the table where policy is shaped that could directly or indirectly impact our ability to attract visitors and businesses to our state,” Johnson says. “It will ultimately raise the awareness that Arizona tourism is the catalyst to economic development, job creation and tax revenue generation that positively impacts every Arizona resident.”

Yonko

Impact on Legislature

“What I hope to do is raise the awareness in the legislature that tourism is a key economic generator that creates jobs and generates much needed tax revenues,” says Kristen Jarnagin, 39, vice president of communications and government affairs representative at the Arizona Lodging and Tourism Association.

By building and fostering relationships between politicians and industry representatives, Jarnagin, an Arizona resident for 20 years, says she hopes to educate the legislature on the value of tourism and how it leads to funding for Arizona.

“Tourism tax revenues are critical for funding programs that we all rely on like education, healthcare and public safety,” Jarnagin says. “A lot of people are not able to connect those dots.”

With more than 15 years of experience in the tourism industry, Jarnagin says she understands the different ways tourism impacts Arizona and what steps can help make the state a viable destination for travelers.

Her primary objective within the next year is to gain increased funding for the Arizona Office of Tourism for marketing, so Arizona can have a presence in the marketplace.

“This is a very competitive industry,” she says. “There are so many other states that are warm and sunny like Arizona; there is California, Florida, Hawaii and Texas, and they’re all competing for that same tourism dollar.”

Jarnagin

AzLTA leadership

Chairman of the Board: Doug Yonko, Hensley Beverage Company Incoming Chair: Bruce Lange, Westin Kierland Resort & Spa Immediate Past Chair: Brian Johnson, Loews Ventana Canyon Resort Vice Chair: Ken McKenzie, Tempe Mission Palms Hotel Secretary: Mitch Nichols, Nichols Tourism Treasurer: Greg Miller, Destination Hotels & Resorts Executive Committee: Steve Moore, Greater Phoenix Convention & Visitors Bureau; Rachel Sacco, Scottsdale Convention & Visitors Bureau; Bob Hayward, VH&RA Chairman, Warnick & Company; Win Holden, Arizona Highways Magazine Board of Directors: Steve Barclay, Beer & Wine Distributors of AZ; Chris Bell, Musical Instrument Museum (MIM); Stacy Button, City of Flagstaff; Rich Carter, Troon Golf; Margo Christensen, Residence Inn by Marriott; Ed Conway, Sedona Rouge Hotel & Spa; Brent DeRaad, Metropolitan Tucson CVB; Jeff DiGregorio, Arizona Association of Bed & Breakfast Inns (AABBI); John Drum, Arizona Cardinals; 60 AB | January-February 2013

Lynn Ericksen, Hilton Tucson El Conquistador; Marc Garcia, Mesa Convention & Visitors Bureau; Danny Goldmann, Omni Tucson National Golf Resort; Linda Gorman, AAA Arizona; David X. Guzman, CHA, The FTG Group; Sherry Henry, Arizona Office of Tourism; Joe Hughes, US Airways; Mal Kenney, American Valet; Alan Klein, The Saguaro; Ricardo Landa, LandCorp Property Maintenance; Lonnie Lillie, Best Western Arroyo Roble Hotel; Paige Lund, Renaissance Phoenix Downtown; Robb McCreary, Talking Stick Resort & Spa; Valerie Miceli, Embassy Suites Phoenix-Biltmore; Jack Miller, Fairmont Scottsdale; Stephanie Nowak, Tempe Tourism Office; Deborah Ostreicher, Sky Harbor International Airport; Rui Pereira, Rancho de los Caballeros; Todd Raessler, The Phoenician; Don Rea, Your Source Golf, LLC; Fred Reese, Little America Flagstaff; Cal Sheehy, London Bridge Resort; Chrissy Souders, Republic Media; Jon Streit, Xanterra - Grand Canyon South Rim; Peter Sullivan, Global Spectrum

YoU bring the agenDa. Weâ&#x20AC;&#x2122;ll bring the aWesome.

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After your meeting, take a load off and stop into ZuZu for libations, relaxation, and some great food. Oh yeah, did we mention ZuZu was the winner of Best Bar voted by AZ Business Magazine? Yep, you heard right, top-notch accommodations with award-winning beverages. What more could you and your guests ask for?

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AZ HOTEL & LODGING ASSOCIATION

By MICHAEL GOSSIE

Arizona scores State uses big-time sporting events to pump billions into local economy

62 AB | January-February 2013

I

f you build it, they will come.

We did. And they have.

Over the last decade, the Valley has added Jobing.com Arena, University of Phoenix Stadium, built new spring training facilities, upgraded old ones and visiting sports fans have responded by pumping billions of dollars annually into the economy. And when the Super Bowl returns to Arizona in 2015, the big winner will be the Valley, which will score an economic impact of $600 million.

“If you take a look at the economic-impact studies that have been done for events such as spring training and the Fiesta Bowl and the Phoenix Open, the numbers are impressive,” says Steve Moore, president and CEO of the Greater Phoenix Convention and Visitors Bureau. “For example, the last time the Super Bowl was here, in 2008, if you added its economic impact to that of annual events like Cactus League, the Phoenix Open, the Fiesta Bowl, and the NASCAR events at PIR, you’re looking at a number approaching $2 billion.”

But economic-impact studies alone don’t tell the whole story, Moore says.

“The enormous media value of hosting Super Bowls, college bowl games, NASCAR events, and NBA and (Major League Baseball) all-star games simply cannot be purchased,” Moore says. “These big-time events also bring in corporate executives who use the games to entertain clients, and those executives and clients often return to town with their own corporate meetings.”

Arizona tourism leaders have utilized and marketed some of the state’s best features — sunny weather that guarantees no delays, desert scenery, excellent facilities and hotels — to become a major player in the world of sports. And the impact on the industry is staggering.

“Huge and immeasurable,” says Jesse Thompson, director of sales and marketing for Hotel Valley Ho in Scottsdale. “Every traveling team spends a night in town. Every team has loyal followers who travel to see their teams. And more than just the team travel, you have sportscasters, television crews, medical teams, referees,

AB | January-February 2013 63

AZ HOTEL & LODGING ASSOCIATION

and not to mention the hundreds of employees at these venues that service everything from security to bathroom cleaning. Also, all the ancillary travel revenues from cabs and taxis, airlines and airports, food and beverage, entertainment, and retail are huge considerations.”

Consider this: > Cactus League baseball will have a year-round economic impact in excess of $632 million this year; the average stay for fans will be four days; and most will spend $350 a day while they are here. “Spring training typically offers the biggest sporting-related economic boost we see every year,” says Ron Simon, general manager of Pointe Hilton Tapatio Cliffs Resort. > The 2012 Waste Management Phoenix Open pumped $222 million into Arizona’s economy — with direct sales tax revenue estimated to be $8.2 million — and non-local attendees spent an average of $300 per day. > When the Super Bowl rolls back into town, 85 percent of the 73,000 fans at the game will be from out of state; 65 percent of them will be key company decision-makers; another 50,000 fans will visit without tickets; and the average Super Bowl visitor will spend $2,000 while they are here. > Glendale alone draws between 4 million and 5 million people annually to sporting events that take place in Glendale’s Sports and Entertainment District, which contribute to the city’s increased hotel occupancy and sales tax collection throughout the year.

“The Fiesta Bowl and spring training are tremendous economic engines for Glendale and the West Valley,” says Lorraine Pino, manager of the Glendale Convention & Visitors Bureau. “Both of these events bring hundreds of thousands of fans to the region.

The hotel occupancy rate also reaches near capacity during spring training.”

But it’s not just high-profile athletes that drive sports tourism in Arizona. Beyond being known as a mecca for golfers, the Valley hosts high-profile events for amateur athletes that translate to big bucks for the tourism industry.

Events like Ironman Arizona and the P.F. Chang’s Rock ‘n’ Roll Marathon are huge economic drivers because they bring not only the athletes, but their families and friends out for support which drives room nights and retail dollars for the entire community,” says Tori McLaughlin, regional director of sales and marketing, West Coast for Kimpton Hotels & Restaurants, which includes both Hotel Palomar and FireSky Resort & Spa. But beyond the beautiful golf courses, hiking trails and weather, Arizona has built its sports tourism empire by creating its own “Field of Dreams” story and epitomizing the “If you build it, they will come” strategy.

64 AB | January-February 2013

“There has been a major investment in the construction of spring training stadiums, including the development of new stadiums and enhancements to existing ones,” Simon says. “We’ve also seen great development and growth of the entertainment and shopping areas surrounding Chase Field in downtown Phoenix and Jobing.com Arena and University of Phoenix Stadium in Glendale.”

With improving infrastructure and venues, Phoenix is extremely well positioned to successfully bid for even more mega sporting events in the future, experts predict.

“Arizona’s success has created destination envy, particularly in Texas, which actually enjoys an advantage over us because they have legislation in place that allows them to provide hostingobligation funds based on incremental visitor spending at these events,” Moore says. “In fact, both Houston and Dallas were chosen over the Valley during the last bids for the NCAA Final Four.

But we’ve become a better competitor due to the metamorphosis of Downtown Phoenix. We stressed this in our most recent Super Bowl bid. The fully expanded convention center, the 1,000-room Sheraton, light rail, CityScape, the new Westin and Hotel Palomar — none of these things were around in ’08, when the Super Bowl was last in Arizona. The NBA and MLB got a taste of the new downtown when they held their All-Star festivities here, and the NFL will get an even bigger taste in 2015.”

Thompson

Pino

Simon

McLaughlin

Moore

With so much to see and do in Glendale & the West Valley, you might want to plan your vacation in

Alphabetical Order.

Antiquing

Breweries

Cowboys

Dodgers Spring Training

Events & Festivals

Football AZ Cardinals

Golfing

Hiking

In - Flight

Jet Skiing

Kayaking

Lodging

Music & Concerts

Nightlife

Outstanding Culture

Quiet Nights

Reds Spring Training

Shopping

Theatre

Waterpark

Xeriscape Garden

Yummy

Poolside 2012 Visit

GLENDALE, ARIZONA

Your Guide to Glendale & arizona’s West ValleY

52

Ultimate Weekends…

And Things to Do Every Day in Between!

Urban Excitement

VisitGlendale.com

Visitor Guide Guide to Great Sports Pro sports is big in the West Valley

Where to See art in the city A cultural guide to the region

Give us a long weekend or a week-long vacation and we’ll fill it with non-stop fun. Call or visit us online and we’ll help you plan the perfect vacation from

A toZ.

Glendale Convention & Visitors Bureau • 5800 W. Glenn Dr., Suite 140, Glendale, AZ 85301 623.930.4500 • visitglendale.com

Z00

AZ HOTEL & LODGING ASSOCIATION

By MICHAEL GOSSIE

NEW FACES IN FUN PLACES Convention and visitors bureaus throughout the state get new leadership with a fresh vision

T

here were a lot of changes in Arizona’s tourism industry in 2012.

Not only did the Arizona Tourism Alliance and the Arizona Hotel & Lodging Association merge to create the Arizona Lodging & Tourism Association (AzLTA), some of the state’s most

prominent convention and visitors bureaus got new leaders. Brent DeRaad took over in Tucson in April, Marc Garcia became Mesa’s president and CEO in June, and Heidi Hansen assumed control in Flagstaff in November.

Here’s what they bring to the tourism industry’s table:

Brent DeRaad TiTle: President and CEO, Metropolitan Tucson Convention & Visitors Bureau Background: “I’ve worked in Arizona’s travel industry for the past 15 years, first at the Phoenix CVB, then in Scottsdale and now in Tucson. Previously, I worked in communications for the Fiesta Bowl, Arizona Super Bowl Host Committee and the City of Scottsdale.” aTTracTion To Tourism indusTry: “The Fiesta and Super bowls are tied closely to tourism, and the industry is incredibly important to the region’s economy. I was interacting with travel officials in my previous positions and found the industry intrigued me.” sTrengThs: “My background is in public relations, marketing and special events, all of which are critical to successful destination marketing programs. I enjoy developing ideas that attract incremental travelers and building the skill sets of those with whom I work.” sTrengThs of Tucson as a Tourism desTinaTion: “Tucson and southern Arizona complement the offerings of Metro Phoenix. Sabino Canyon, Mt. Lemmon and Madera Canyon offer abundant hiking and cycling in gorgeous desert terrain. Unique, family-owned restaurants, attractions, including Arizona Sonora Desert Museum, Old Tucson and Pima Air & Space Museum, along with Canyon Ranch and Miraval destination spas, set Tucson apart.” goal for 2013: “We will engage in a destination branding campaign for Tucson and southern Arizona in 2013. We will garner input on the region’s top tourism attributes from local stakeholders and outside customers to develop a new travel campaign. We need to increase the quantity of our Tucson messaging to targeted markets to increase the number of travelers to our region.”

66 AB | January-February 2013

StayInAZ.com VISIT AZLTA’S CONSUMER WEBSITE FOR ARIZONA LODGING. CONTACT KRISTEN JARNAGIN FOR MARKETING INFORMATION: KJARNAGIN@AZLTA.COM

© 2012 Arizona Lodging & Tourism Association. All Rights Reserved.

StayInAZ_HalfPgHorizAd2012_7.125x4.75_rev2.indd 1

8/21/12 11:00 AM

AB | January-February 2013 67

AZ HOTEL & LODGING ASSOCIATION Marc Garcia TiTle: President and CEO, Mesa Convention & Visitors Bureau Background: Garcia served as vice president of Visitor Marketing and Community Development for the Greater Phoenix Convention & Visitors Bureau (GPCVB). He was responsible for efforts to promote the destination’s multi-cultural heritage, increase and enhance multi-cultural attractions and market Greater Phoenix as a premier multi-cultural destination. Under his direction, the GPCVB booked more than 195 multi-cultural meetings and conventions, representing more than $183 million in direct visitor expenditures. aTTracTion To Tourism indusTry: “Being a native Arizonan, I love my home. I’m passionate about sharing the Arizona experience with visitors from around the world.” sTrengThs: “Knowledge of visitor products and how to sell them to the appropriate customer; and knowledge of the market and our history.” sTrengThs of mesa as a Tourism desTinaTion: “A mayor, city council, city manager and staff who recognize the value of visitors; cultural attractions like the Mesa Arts Center, the Goldwater Library, and outdoor recreational opportunities.” goal for 2013: “Elevate the Mesa brand, thereby increasing visitor spending and resulting tax revenue; and enhance communications between Visit Mesa, destination partners and stakeholders to maximize sales and marketing opportunities.”

Heidi Hansen TiTle: Director, Flagstaff Convention and Visitors Bureau Background: Hansen comes to the City of Flagstaff with more than 24 years of experience in sales and marketing. She worked for more than 11 years at the Arizona Daily Sun as the retail sales manager and presently advertising director. She also worked in the Phoenix Metro area for 11 years at the Arizona Republic and Independent Newspapers. aTTracTion To Tourism indusTry: “I wanted to make a greater contribution to the community by using my sales and marketing background in a sector that is critical in driving our economy.” sTrengThs: Hansen brings a track record of innovative and creative ideas, having implemented a number of programs to draw visitors to Flagstaff such as supplemental visitor guides and the popular “99 Things To Do” magazine. sTrengThs of flagsTaff as a Tourism desTinaTion: “Seasonality. Visitors have the opportunity to visit and experience all four seasons of the year as well as all the cultural and natural wonders of our region.” goal for 2013: “The CVB has an amazing staff and I am fortunate to be able to work with them. I hope to continue moving forward with programs they have in place so we can strengthen and expand visitation to Flagstaff as a destination for all seasons.”

Blessing McAnlis-Vasquez TiTle: Marketing project manager, Talking Stick: A Cultural and Entertainment Destination Background: McAnlis-Vasquez is an Arizona native, a graduate of ASU and Grand Canyon State, and an enrolled member of the Salt River Pima-Maricopa Indian Community (SRPMIC).

Attraction to tourism industry: “I saw an opportunity to share my culture with others and help our community create jobs and diversify our economy.” sTrengThs: “As a Community member, I’m in a unique position to market and promote the Talking Stick Destination ... I want to help create the very best for our community; something that we will all be proud of.” sTrengThs of The srPmic as ParT of arizona’s Tourism indusTry: “We (SRPMIC) have a very unique culture that is thousands and thousands of years old, which we are sharing with visitors via the efforts of our Talking Stick Cultural and Entertainment Destination partners. We know people want to learn about the Salt River Pima-Maricopa Indian culture, and we are eager to share it with them. Talking Stick is the first cultural and entertainment destination in Indian Country and is an exciting and innovative initiative.” goal for 2013: “Our goal is to introduce residents and visitors to our Community and become a premier destination. We hope you’ll visit soon.”

68 AB | January-February 2013

AHAA for AZ Business_Layout 1 12/18/12 12:28 PM Page 1

Come see over 2,400 of the worldâ&#x20AC;&#x2122;s most beautiful Arabian horses compete for the coveted title of Scottsdale Champion. Browse through the two big-top tents which host 300+ Commercial Exhibitors from around the world. View their showcase of art, jewelry, clothing, every equine related item imaginable and take time to enjoy a wide variety of food!

Tickets to the Scottsdale Show can be purchased through TicketMaster 800.745.3000 or www.ticketmaster.com.

If you are interested in visiting a local Arabian farm, visit our website for listings.

EXPERIENCE

THE FEBRUARY 14-24, 2013 WestWorld, Scottsdale, AZ

www.scottsdaleshow.com ARABIAN HORSE ASSOCIATION OF ARIZONA P.O. BOX 13865, Scottsdale, AZ 85267 | 480.515.1500 (p) 480.515.1122 (f) info@scottsdaleshow.com.

The Scottsdale Arabian Horse Show is proud to benefit the following charities: Cox Charities & March of Dimes. Photos courtesy of www.darryllarson.com and www.javan-photography.com

SEDAN MERCEDES SUV EXECUTIVE VAN LIMOUSINE SPRINTER MINI BUS MOTORCOACH

AB | January-February 2013 69

Need to meet high expectations? { Consider meeting at 7,000 feet.}

Impressed

Situated between the state’s highest peak and the world’s grandest canyon, Flagstaff has a rich history of culture and heritage that spans more than 100 years.

From the historic 1890s downtown to the technology infrastructure of innovation achievement, Flagstaff offers unique meeting opportunities, venues and services that meet the highest of expectations.

The destination for all seasons flagstaffarizona.org | 877.878.9277

“Over the last several years, I have had the pleasure of hosting numerous Continuing Legal Education Classes in the Executive Conference Center.

Each and every event has been absolutely flawless.

The pleasant, professional atmosphere of the venue and its staff provides an effective learning environment that not only allows the participants to be more focused, but enables them to be more productive as well.”

– Harry Beans, President of CLE West ECC Features: Ergonomic accommodations.

Close to airport and light rail.

Keep up with the Phoenix Convention Center:

192-seat lecture hall.

March 9 and 10 11am – 3pm

Phoenix Convention Center & Venues Executive Conference Center | Symphony Hall | Orpheum Theatre

Tickets on sale now! Visit devouredphoenix.com 70 AB | January-February 2013

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BUSINESSES IN FIVE KEY SECTORS RECOGNIZED FOR INNOVATION

A

z Business magazine is proud to present the Industry Leaders of Arizona (ILoA) Awards, which recognize the contributions and impact of Arizona-based companies in five key industries — alternative energy, distribution and logistics, healthcare, hospitality, and retail.

The finalists for this year’s ILoA Awards are profiled on the following pages. Winners will be recognized at the awards dinner that will be held February 7 at The Ritz-Carlton, Phoenix.

AB | January-February 2013 71

ILOA American Group

Leadership: Michael Schember, CEO; Daniel Krwickas, president and CFO Address: 75 W. Baseline Rd., #19, Gilbert Website: shipag.com What they do: Simplifies the shipping process for its clients by combining multiple options into a single website — whatever mode the client prefers.

How they lead: The management team at American Group has decades of combined experience on both the carrier and logistics sides. American Group partners with the best providers across multiple modes in order to give its clients unparalleled service.

Since it was founded in 2007, American Group has twice landed on Inc.’s list of the 5,000 fastest-growing companies in America.

Angel MedFlight Worldwide Air Ambulance

Leadership: Jeremy T. Freer, CEO; Ashley Sanders, CFO Address: 8014 E. McClain Dr., #220, Scottsdale Website: angelmedflight.com What they do: Provides medical flights for critically ill and injured patients aboard medically configured jets.

How they lead: Unsatisfied with industry standards of having dispatchers, salespeople or answering services fielding medical flight inquiries, Freer changed the air ambulance industry by staffing the flight coordination department with healthcare and case management specialists, viewing these in-office healthcare professionals as a crucial component to patient care.

Amtech Systems

Leadership: Fokko Pentinga, CEO; Brad Anderson, CFO Address: 131 S. Clark Dr., Tempe Website: amtechsystems.com What they do: Manufacturer of capital equipment and related consumables used in fabricating solar cells, LED and semiconductor devices.

How they lead: Amtech Systems is one of the leading capital equipment suppliers to the solar industry. Its customers include some of the largest solar cell and module manufacturers in the world. Amtech Systems is developing a new tool for the solar market — an ion implant system that will improve the conversion efficiency of a solar cell and reduce the overall cost of solar.

72 AB | January-February 2013

Arizona Neurological Institute

Leadership: Dr. Maninder S. Kahlon, CEO; Dr. Jatin B. Shah, CFO Address: 10474 W. Thunderbird., Blvd., Phoenix Website: arizonaneurologicalinstitute.com What they do: Provides neurological, physical and rehabilitative services.

How they lead: The management team at Arizona Neurological Institute believes that the quality of care that they can provide to patients is dependent on recruiting the most skilled and educated people they can find. They continually measure their performance and commit to improve it. Management believes that cost and quality are not on opposite ends of the spectrum, and by implementing a quality program, they will improve the total cost of healthcare to its patients.

Banner Health

Leadership: Peter Fine, CEO; Dennis Dahlen, CFO Address: 1441 N. 12th St., Phoenix Website: bannerhealth.com What they do: Operates 23 hospitals and other related health entities in seven states, including the Banner Health Network and Banner Medical Group.

How they lead: Banner Health is one of the few health systems in the nation to have successfully implemented enhanced electronic medical records into all of its hospitals. Bannerâ&#x20AC;&#x2122;s EMR is an enabling technology that is used by all clinicians that provide patient care in Banner hospitals. The implementation of this suite of tools transformed how care was provided and also improved patient safety through a constant automated review of patient data.

Cancer Treatment Centers of America

Leadership: Dr. Edgar Staren, CEO; Charles E. Ribbe, CFO Address: 14200 W. Fillmore St., Goodyear Website: cancercenter.com What they do: Offers a comprehensive, fully integrated approach to cancer treatment using advanced technology and a patientcentered approach.

How they lead: Known for delivering the Mother Standard of care and Patient Empowerment Medicine, CTCA provides patients with information about cancer and their treatment options so they can control their treatment decisions. In 2012, CTCA was honored as one of the 100 Best Companies of the Future and was also the winner of Az Business magazineâ&#x20AC;&#x2122;s Healthcare Leadership Award for Hospital of the Year.

AB | January-February 2013 73

ILOA Clinical Research Advantage, Inc.

Leadership: Mark S. Hanley, CEO; James Vesely, CFO Address: 2141 E. Broadway Rd., #110, Tempe Website: crastudies.com What they do: Clinical trial site network.

How they lead: While three of its competitors closed their doors over the last two years, CRA experienced 44 percent growth, becoming the country’s largest network with 38 sites in 17 geographic markets. CRA’s team did this by promoting the company’s innovative community-based research model, its level of professionalism and its unparalleled system for compiling operational metrics. This method worked, and in 2011, CRA made company history by securing 257 Phase II – IV clinical trials – a 145 percent increase over 2010.

Dircks Moving Services

Leadership: Chip Dircks, president; Mark Hudson, CFO Address: 4340 E. Mohave, Phoenix Website: dircks.com What they do: Moving, logistics and storage company that specializes in the transportation and storage of household goods, office and industrial equipment, and other commodities.

How they lead: Dircks’ management recognizes that its employees are the face of the company and are the ones that drive the business, so they operate an “open-door policy” business that encourages its staff to come up with better ways of conducting commerce and operations and rewards those employees that do.

Dircks’ won Mayflower’s Customer Choice Award in 2009, 2010 and 2011.

EVDI Medical Imaging

Leadership: Dr. James Lyons, CEO; Dr. Edward Hancock, CFO Address: 1125 E. Southern Ave., #300, Mesa Website: evdi.com What they do: Provides comprehensive imaging services – from simple x-rays to complex CT and MRI studies, to complete breast imaging services How they lead: EVDI’s experienced radiologists are members of Associated Radiologists, Ltd. – a group of more than 40 professional radiologists who have been providing superior care in the Valley since 1965. Over the years, ARL has established an excellent reputation for high-quality imaging and accurate interpretations. Each radiologist on EVDI’s team has the training, experience and expertise to deliver the best care, every time.

74 AB | January-February 2013

Lend a hand?

At Ernst & Young, we’re hands on when it comes to encouraging potential.

We proudly sponsor Industry Leaders of Arizona. It’s one of the ways we’re helping to make our community a better place to work and live. A brighter future starts with all of us.

©2012 Ernst & Young LLP All rights reserved.

1212-1414982

ey.com

ILoA

Goodmans Interior Structures

Leadership: Adam Goodman, CEO; Doug Klein, CFO Address: 1400 E. Indian School Rd., Phoenix Website: goodmans.info What they do: Office furniture dealership dedicated to creating great lifetime furniture experiences for healthcare, corporate, education and government clients.

How they lead: Goodmans was named the 2012 Business of the Year and Community Champion by the Greater Phoenix Chamber, and they were the first recipient of Office Furniture Dealers Alliance National Dealership Award in 2011. Goodmans is also the only office furniture dealer to receive Certified B Corporation status in the U.S. and Arizona. Goodmans was also named a “Trailblazer” in the commemorative magazine — “100 Best Companies in Arizona.”

Goodwill of Central Arizona

Leadership: Jim Teter, CEO; Tanya Perry, CFO Address: 2626 W. Beryl Ave., Phoenix Website: goodwillaz.org What they do: Turns donations from the community into dollars that fund programs that help individuals prepare for and find work.

How they lead: In 1992, Goodwill stores were remodeled to reflect a new emphasis on productivity, efficiency and respect for the community’s donations. That environmental shift has helped Goodwill eliminate negative views of “thrifting” and increase revenue from $2 million in 1992 to more than $80 million in 2011.

Because of that boost, Goodwill of Central Arizona ranks No. 1 nationally in job placement among Goodwills.

Green Choice Solar LLC

Leadership: Herbert Abel, CEO; Randy Buter, CFO Address: 15344 N. 83rd Way, Scottsdale Website: greenchoicesolar.com What they do: Solar integrator that provides a one-stop shop for solar systems, with in-house design, financing, installation, maintenance and monitoring.

How they lead: Green Choice has renewable industry veterans with more than 50 years of experience in the renewable market.

Its design team has designed and installed more than 550 solar projects worldwide. Its in-house engineers have P.E. and NABCEP certifications, and they are a SRP and APS qualified installer.

Green Choice has strong financial rapport from Morgan Stanley, the Biltmore Bank of Arizona and Key Equipment community.

76 AB | January-February 2013

Congratulations Industry Leaders of Arizona winners and finalists!

Cresa

is an international corporate real estate advisory firm that

exclusively represents tenants and specializes in the delivery of fully integrated real estate services, including: Transaction Management, Project Management, Global Accounts, Portfolio Strategies, Location Planning, Lease Administration, Capital Markets, and Facilities Services.

With more than 57 offices, Cresa is the largest tenant representation firm in North America. Through its partnership with Savills, one of the world's largest commercial real estate services firms; Cresa covers more than 255 locations in 40 countries. For more information, visit www.cresa.com.

Cresa Phoenix 2398 East Camelback Road, Suite 900, Phoenix, AZ Tel 602.648.7373 Fax 602.648.7339

ILoA Grimaldi’s Pizzeria

Leadership: Joseph Ciolli, CEO; Eric Greenwald, CFO Address: 15005 N. Northsight Blvd., Scottsdale Website: grimaldispizzeria.com What they do: Serves traditional pizza, cooked in a signature coal brick oven, in an upscale yet casual, family-oriented pizzeria.

How they lead: Grimaldi’s is an institution that has garnered more awards than any other pizzeria in the country with more celebrity sightings than most 5-star restaurants. Using only the freshest ingredients, a “secret recipe” pizza sauce, handmade mozzarella cheese and dough, Grimaldi’s serves traditional pizza — as it began in Naples, Italy.

Harmon Electric, Inc.

Leadership: Julie King, CEO; Dan King, CFO Address: 945 W. Deer Valley Rd., Phoenix Website: harmonelectriccorp.com What they do: Specializes in residential and commercial energy audits, lighting upgrades, new construction, repairs, and solar installation.

How they lead: Family-owned Harmon has evolved during its 37 years in business, remaining one of the few electrical contracting firms in business for this length of time. The company has expanded and evolved to serve the needs of the growing city and added services to accommodate demand for energy efficiency and alternative energy. Harmon Electric was part of the first group of solar installers to achieve the designation of Qualified Solar Installer by APS.

Macayo’s Mexican Restaurants

Leadership: Sharisse Johnson, CEO; Bob Myers, CFO Address: 1480 E. Bethany Home Rd., #130, Phoenix Website: macayo.com What they do: Family owned and locally operated Mexican restaurant for 66 years.

How they lead: Beyond growing its own chilies at its farm near Douglas, Macayo’s set out to find a way to get employees to think like owners. The first step was to open the books and share Macayo’s balance sheet with every employee. This accounting savvy has motivated employees to take ownership of cost savings and inspired them to continually find creative solutions to bringing down costs.

78 AB | January-February 2013

Your finances.

Your future.

Our focus.

UBS Financial Services Inc. James VanSteenhuyse Complex Director 602-957-5100 james.vansteenhuyse@ubs.com



2555 E. Camelback Road, Suite 600 Phoenix, AZ 85016 800-247-1754

We will not rest

©UBS 2012. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member SIPC.

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ILoA Mach 1 Global Services

Leadership: Jamie Fletcher, CEO; Debbie Wilcox, CFO Address: 1530 W. Broadway Rd., Tempe Website: mach1global.com What they do: Global freight forwarder offering a full portfolio of international and domestic transportation, supply chain management and logistics services to worldwide destinations.

How they lead: For more than two decades, Mach 1 has delivered industry-leading on-time service performance and one of the lowest claims ratios in the industry. Mach 1 measures its performance at every opportunity and openly shares key performance indicators with clients. Mach 1 boasts an industry-leading 98.15% “raw” on-time delivery rate and 99.9962% rate on intact, damagefree deliveries.

Massage Envy

Leadership: Dave Crisalli, president and CEO; Greg Esgar, CFO Address: 14350 N. 87th St., #200, Scottsdale Website: massageenvy.com What they do: Professional, affordable and convenient massage and spa services.

How they lead: Founded just a decade ago with the goal of bringing professional, convenient and affordable therapeutic massage to consumers, Massage Envy has built an unprecedented wellness platform with more than 800 clinics in 45 states with more than 24,000 employees. Massage Envy’s leadership also strives to educate the consumer and has ultimately changed the public’s perception of massage. Massage Envy contributes to massage research and education and is an active partner with massage therapy schools throughout the U.S.

Neonatology Associates LTD

Leadership: Dr. Ravi Gunawardene, CEO; Dr. Mahesh Kotwal, CFO Address: 300 W. Clarendon, #375, Phoenix Website: nalweb.com What they do: An integrated private practice of 30 neonatologists, 42 neonatal nurse practitioners, 2 physician assistants, a pediatrician and a clinical geneticist who provide multi-leveled service.

How they lead: For more than 42 years, NAL has cared for sick newborns throughout Arizona. Arizona’s original newborn consultation/transport system was set up by NAL neonatologists.

When you call NAL’s consultation/transport number, a neonatologist personally answers the phone because they know time is of the utmost importance when you make this call.

80 AB | January-February 2013

ILoA

NextCare Urgent Care

Leadership: John Julian, CEO; Ken Walsh, CFO Address: 2550 N. Thunderbird Circle, #303, Mesa Website: nextcare.com What they do: Offers walk-in medical clinics with licensed medical providers 365 days a year.

How they lead: On top of saving patients money and contributing to the health of the communities it serves, NextCare provides an exceptional alternative to costly emergency rooms, saving the government and commercial health plans tens of millions of dollars each year. That cost efficiency allows commercial health plans to lower their costs and government programs to invest in more meaningful programs to keep Arizonans healthy and safe.

PCA Skin

Leadership: Richard Linder, CEO; Chris McCrory, COO Address: 6710 E. Camelback Rd., #230, Scottsdale Website: pcaskin.com What they do: Skin healthcare company that produces and distributes a clinical grade skin care line and supporting daily use products.

How they lead: PCA Skin was the first cosmeceutical company to provide scientifically researched daily care products and professional treatments to the medical and clinical aesthetics markets and is acknowledged in medical textbooks as the originator of advanced blended chemical peel formulations. PCA Skin uses rigorous research and science to develop safe, highly effective products that deliver healthy, beautiful skin.

Phoenix Children’s Hospital

Leadership: Robert Meyer, president and CEO; Craig McKnight, executive vice president, finance and CFO Address: 1919 E. Thomas Rd., Phoenix Website: phoenixchildrens.com What they do: Offers Arizona’s most comprehensive pediatric medical care in an environment that’s 100 percent for children.

How they lead: PCH demonstrates its leadership by responding to community health needs with a commitment to world-class clinical care, research, education and advocacy. With a medical staff of nearly 1,000 specialists, PCH provides the most comprehensive pediatric care in the state with access to more than 55 subspecialties. PCH is the only Arizona facility to be named among the Best Children’s Hospitals by US News & World Report.

82 AB | January-February 2013

ILoA SuperShuttle International

Leadership: Brian Wier, CEO; Tom Lavoy, CFO Address: 14500 N. Northsight Blvd., #329, Scottsdale Website: supershuttle.com What they do: Airport shuttle business providing 24-hour-a-day door-to-door rides to and from your home, office or hotel and 35 U.S. airports.

How they lead: SuperShuttle pioneered the shared ride concept nearly 30 years ago and today is the largest, most recognized airport shuttle business in the country, providing rides for more than 8 million passengers each year. To minimize stops and maximize efficiency, SuperShuttle’s state-of-the-art dispatch system groups passengers by geographic area.

Wildflower Bread Company

Leadership: Louis J. Basile Jr., CEO; Cheryl Campbell, CFO Address: 7755 E. Gray Rd., Scottsdale Website: wildflowerbread.com What they do: Wildflower Bread Company serves breakfast, lunch, dinner and also caters event. Artisan hearth-baked bread is the soul of its success.

How they lead: When it comes to bread-making, Wildflower’s commitment is not simply to excellence, but to the preservation of a true art form. The finest natural ingredients are mixed, hand-shaped, slowly fermented and baked daily in European ovens.

Using time-honored traditions, each loaf of bread takes 72 hours to create. The result is fresh, hard-crusted bread ranging from airy and light to dense and delectable.

Wist Office Products

Leadership: Ian Wist, CEO; Peter Drozdowicz, CFO Address: 107 W. Julie Dr., Tempe Website: wist.com What they do: Award-winning customer service and a selection of more than 50,000 products ranging from office supplies and office furniture, to janitorial products and printing supplies.

How they lead: Wist experienced growth throughout the Recession, something that its industry peers cannot claim — and a hallmark of industry leadership. Wist’s success comes from a combination of a long-tenured staff who embody a higher class of service that drives the company’s success, and a leadership team focused on implementing progressive practices that maintain the company’s relevance in a crowded marketplace.

Z’Tejas Southwestern Grill

Leadership: Steven A. Micheletti, CEO; Allen Arroyo, CFO Address: 6909 E. Greenway Pkwy., #295, Scottsdale Website: ztejas.com What they do: Southwestern-style restaurant that takes traditional ingredients, spices and cooking techniques from across the South to create a taste without borders.

How they lead: Open communication with its customers is vital to Z’Tejas’ success. It was one of the first restaurants to utilize Facebook and Twitter, and was one of the first restaurants on fast-growing social media platform Pinterest. For Z’Tejas social media isn’t just about offering specials, it’s about engaging guests in their brand.

84 AB | January-February 2013

UMB congratulates the winners of the Industry Leaders of Arizona Awards.

UMB Bank is a proud sponsor of the 2013 ILOA Awards.

With almost 100 years of experience, UMB Bank understands the type of dedication and sound business practices it takes to achieve success. Weâ&#x20AC;&#x2122;re proud to be associated with leaders our community can count on for growth, development and innovation.

UMB Bank Arizona Robert Faver Chief Lending Officer 480.315.6813 Jim Patterson Chief Executive Officer 480.315.6814 Bank + Invest + Plan + Protect

Good people.

Good furniture.

Good business. goodmans.info

86 AB | January-February 2013

Office Supplies

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The power To save is all around you.

we’re honored to be named one of the industry leaders of arizona.

At Harmon Solar, we attribute our success to hard work, excellent customer service and a strong belief in what we’re doing: helping create clean, sustainable energy, one home or business at a time. Learn what the power of the sun can do for your business. 623-879-0010 or www.harmonsolar.com

how much can you save?

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AB | January-February 2013 87

EVDI is proud to be named a finalist for the 2013 Industry Leaders of Arizona Award.

Our dedication to providing patients with the respect and care they truly deserve is what sets us apart in the East Valley.

EVDIâ&#x20AC;&#x2122;s convenient outpatient centers are equipped with state-of-the-art imaging technology, providing comprehensive services from simple x-rays to advanced MRIs. And our staff of experienced, board-certified radiologists ensure that our reports not only convey accurate data, but the information needed to make a difference in your life.

Discover more about EVDI Imaging Centers at www.evdi.com.

EVDI.com 480 247 7040 88 AB | January-February 2013

2013

Weâ&#x20AC;&#x2122;re Building Alliances for Growth in Arizona.

Over $697 million in loan growth since January 2011*

James Lundy CEO Alliance Bank of Arizona

602.386.5500 *For the period 1/11-9/12.

A division of Western Alliance Bank. Member FDIC. 12/12

Western Alliance Bank is an affiliate of Western Alliance Bancorporation

90 AB | January-February 2013

alliancebankofarizona.com

GPEC

By MICHAEL GOSSIE Photo By MIKE MERTES

THE BUSINESS Of

diversity Economic development experts say Arizona’s economy needs to broaden its scope to create long-term stability

T

he recent economic downturn showed Arizona that an economy based on growth industries — like housing and construction — is not sustainable.

“A diverse economy will lead to a better and more reliable economy for Arizona,” says Barry Broome, president and CEO of the Greater Phoenix Economic Council (GPEC). “Expanding beyond growth industries will spur quality job creation, sustain and strengthen industries that are already here and help Arizona buffer itself against future economic downturns.”

To combat an economy that relies on growth industries, Broome says GPEC has worked diligently to diversify the state’s economy into sectors like renewable energy, advanced manufacturing, biomedicine and others by using a combination of broad-based tax reforms and targeted economic development programs. GPEC has also increased its focus on attracting more export industries to the Valley.

“Export industries are important because they are capital-intensive operations that pay higher-than-average wages and drive economic growth by creating wealth and propelling small businesses,” Broome says.

Broome points out that diversifying the state’s economy is about more than just bringing new businesses and new industries into the state. A diversified Arizona economy creates opportunities for the businesses already growing and thriving in the region by enlarging both customer bases and prospects for collaboration, in addition to strengthening regional supply chains. It will also stabilize the economy, allowing existing companies to better plan for the future and make decisions.

“Successful businesses from different sectors feed off of one another,” says Jim Lundy, CEO of Alliance Bank of Arizona and chairman of the board for GPWEC. “A more diverse economy ultimately benefits every business sector and enhances capital formation. Greater diversity spurs more competition for talent, and increased competition for scarce resources forces all businesses to ‘step up their game.’ The end result is a more vibrant economy, which in turn lays the foundation for additional success.”

92 AB | January-February 2013

Barry Broome, CEO and President of GPEC AB | January-February 2013 93

GPEC Jim Lundy

To help strengthen and diversify Arizona’s economy, GPEC is capitalizing on the state’s best selling points to convince businesses to move here.

“Over the past two years, Arizona has implemented many businessfriendly policies in an effort to attract more high-capital investment to the Grand Canyon state,” Broome says. “It has lower capital gains taxes and a corporate income tax rate that will go down to 4.9 percent by 2017, a $9,000 jobs tax credit, an R&D tax credit, and a $630 million tax credit program for export industries.”

Lundy points out that GPEC is engaged in targeted, direct recruiting efforts both nationally and internationally for companies seeking to expand their operations.

“GPEC is involved in developing smart state economic and tax strategies which help attract capital intensive, value-added manufacturing jobs,” Lundy says. “GPEC understands the role that the solar clean tech sector will play in the future and Arizona’s natural advantages to attract these companies. GPEC also understands the importance of attracting basic science and research investment, which lay the foundation for the technology jobs of the future. GPEC promotes constructive collaboration among the key political leaders at the local, state and congressional levels, as well as other critical economic development stakeholders such as (the Arizona Commerce Authority) and the Arizona Chamber of Commerce.”

GPEC leaders believe their efforts will pay off by not only diversifying the economy, which will lead to a more stable business environment, but will also bring the Greater Phoenix area more high-quality, high-wage jobs.

“We are engaged with many prospects in industries like renewable energy, manufacturing and logistics, emerging technologies, biotechnology and advanced business services,” Broome says. “We also place a strong emphasis on foreign direct investment, especially in China, where our strengths as a solar and renewable energy market are particularly well-known.”

Because Arizona is competing globally for talent and jobs, not just regionally and nationally, Lundy says the state needs to build on Arizona’s economic legacy in the high-tech manufacturing and aerospace sector, which illustrates our ability to attract and retain a highly skilled workforce.

“The high-paying jobs of the future will be created in states who make strategic investments in higher education, information technology, aerospace, healthcare delivery and bioscience and clean energy,” Lundy says. “This kind of diversified economy will in turn drive a healthy and less cyclical real estate sector.”

94 AB | January-February 2013

CEO Alliance Bank of Arizona Position with GPEC: Chairman of the board Notable personal accomplishment: “My wife, Michele, and I have been married 41 years and were fortunate to raise four children, all now adults and all engaged in interesting, productive careers in addition to starting their own families. While I have to give most of the credit to Michele, it is still my most notable accomplishment.”

Reason he joined GPEC: “I got involved four years ago when our nation, the state and the banking industry in which I work were all mired in the worst recession of our generation. I am a firm believer in attacking problems rather than complaining about them. GPEC has the same philosophy — don’t waste time complaining, work hard and force change. GPEC has taken a leadership role in getting Arizona back on track.”

View of GPEC’s impact: “(GPEC CEO) Barry Broome and his staff are clear thinkers and hard workers. They understand what it will take to build a more diverse economy and attract both capital and a skilled workforce to our state. GPEC will help Arizona’s economy make the transition to a robust and knowledge-based economy, less reliant on the real estate sector and posed to emerge as a leader in the western United States.”

Derrick Hall

President and CEO Arizona Diamondbacks Position with GPEC: Board member Notable personal accomplishment: “Marrying my wife and bringing three wonderful children into this world, but I would also include being diagnosed with prostate cancer at just 42 years of age so that I could have a platform to drive awareness on early detection and the importance of testing.”

Reason he joined GPEC: “I believe deeply in its mission and importance. I love this community and am confident there is no greater place to work and live. With those strong feelings, I believe it is my duty and responsibility to do all I can in assisting their recruiting efforts.”

View of GPEC’s impact: “GPEC wil attract countless companies and industries from less desirable markets and economies and wil help restore our reputation that has been damaged by legislation and recent educational scores, which are seemingly on the rise.”

Key to future growth: “Homebuilding again has the most potential.

This region has always thrived on that industry, which has taken a hit during this economy. Homebuilding wil not only recover, it wil bounce back with strength and momentum that wil propel us near the top again nationally.”

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GPEC

By MICHAEL GOSSIE

EAST MEETS WEST GPEC helps boost state’s economy by going into China and attracting more foreign direct investment

T

he Greater Phoenix Economic Council’s California 50 program — which aimed to fly 50 Golden State CEOs to Phoenix for an opportunity to tour and explore the region’s business-friendly environment — proved to be so popular that they expanded it to 100 a week after its launch.

But it may be GPEC’s pitch to CEOs even farther away that makes the biggest impact on Arizona’s economy.

“GPEC is focused on a specific region in China, defined by Shanghai and 10 other cities connected by high-speed rail,” says Ron Butler, managing partner at Ernst & Young in Phoenix and co-chair of GPEC’s International Leadership Council. “This region (known as the ‘Z Corridor’) features China’s largest concentration of industries, including solar, medical device, IT, pharmaceuticals, high-tech manufacturing and chemicals. GPEC has made tremendous strides over the past several years in China, particularly with solar and renewable energy companies. Now, the organization is looking to leverage those relationships and expand into other, capital-intensive industries.”

GPEC’s effort is significant, Butler says, because export industries and foreign direct investment (FDI) drive economic growth, create wealth within the region, and tend to be capital-intensive operations that pay higher-than-average wages. Currently, FDI accounts for 73,000 jobs in Arizona, and the state saw a 235 percent increase in FDI from 2005-2010, from just over $270 million to more than $904 million.

“By focusing on the Z corridor, a zone known for its solar, hightech, bio-medical, and chemical industries, GPEC has identified a region that can appreciate what Arizona and — more importantly Arizona workers — can do well,” says Ilya A. Iussa, assistant professor of law at Phoenix School of Law. 96 AB | January-February 2013

David Rousseau

President Salt River Project (SRP) Position with GPEC: Board member Notable personal accomplishment: “Starting and running a successful produce operation with my brother.”

Reason he joined GPEC: “Representing SRP at the highest level is consistent with our desire to encourage and support economic development in the communities we serve.”

View of GPEC’s impact: “I believe GPEC enjoys a unique vantage point from which multiple industry sectors can collaborate for the greater good.”

Key to future growth: “Education is our key to expanding the politics of technology, medical research and treatment and data centers.”

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GPEC

But it’s not just investment from China that is giving Arizona an economic boost within the solar and renewable energy industries. In addition to China’s Suntech, the region has seen investments from Spain’s Rioglass and Abengoa, England’s Faist, Germany’s Solon, France’s Saint-Gobain and Canada’s Cosma International.

“GPEC smartly targets the regions and countries that represent significant growth opportunities, like Canada, China and Western Europe, and works these markets with effective marketing and business development strategies,” Butler says. “Now, with a more concentrated effort underway in China and successful positioning as both a leader in the U.S. solar market and an on-the-record supporter of expanded free trade with China, the Greater Phoenix region is poised for amplified growth in FDI, particularly from China.”

Despite its success, experts say Arizona still has some work to do.

“Our neighboring states and biggest competitors far outrank us in national FDI and export-trade rankings,” Butler says. “California is first for FDI and second for exports, while Texas is second for FDI and first for exports. As such, we must continue evaluating our market for additional FDI and export industry opportunities, and look for ways to increase our competitiveness in these areas.”

Lawmakers have identified one area that needs to be addressed to gain a competitive edge on other states.

“One of the first things we should do is focus on developing a highly educated workforce that will attract companies and businesses looking to move their headquarters,” says Rep. Matt Salmon, R-5. “In addition, it is equally important for us to create a pro-business environment and that comes by reducing harmful regulations that hamper economic growth. Both would increase Arizona’s role in the global economy.”

In order to increase its global presence and become more competitive with neighboring states like California and Texas, Butler says Arizona must increase the number of export industries operating in the state.

“We can increase our competitiveness for these types of investments,” he says, “with a targeted economic development program for export industries, similar to the Renewable Energy Tax Incentive Program (SB1403), which has brought significant investments to the region and the Qualified Facilities Tax Credit (HB2815), which expanded the successful renewable energy program to include qualified, export-based investments.”

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Lynne Herndon

Phoenix city president BBVA Compass Position with GPEC: Board member Notable personal accomplishment: “Served on a fiscal policy task force that developed a fiscal policy strategy recommendation for the state of Arizona.”

Reason she joined GPEC: “Growing a state’s economic base is a critical component to a vibrant state. GPEC is a driving force in bringing new industry to Arizona which will enhance Arizona’s economy. BBVA Compass is very supportive of the work of GPEC in this state.”

View of GPEC’s impact: “GPEC is performing a vital service to Arizona, and the data of new companies and jobs brought to this state is evidence of this success. We will continue to see GPEC have a positive impact in Arizona well into the next decade.”

Key to future growth: “Arizona needs to diversify its economic base. We are seeking all industries to come to our state. Healthcare and light manufacturing have great potential. And now, given that housing is affordable in our state, Arizona should be attractive to many companies across a variety of industries for relocation.”

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GPEC

By MICHAEL GOSSIE

SUNLIGHT THROUGH THE STORM

GPEC helps region build solid foundation for the future amidst economic downturn

T

he economic downturn rattled almost every industry in Arizona at its foundation.

“The recession served as a necessary wake-up call for both the Valley and the entire state,” says Andy Warren, CEO of Maracay Home and Greater Phoenix Economic Council board member. “In the years leading up to the recession, many people in Arizona had a mindset that economic expansion was invulnerable to setbacks. The recession has changed that mindset.”

But in the middle of the unstable economic environment, analysts would have a hard time identifying Arizona as one of the states that was hit the hardest by the economic downturn if they looked only at GPEC’s success during that time.

In fiscal year 2012, GPEC helped 36 companies expand or relocate to the region — the most in the economic catalyst’s 23-year history. That topped GPEC’s previous record of 31 companies, which it set in 2011, giving GPEC its two best years when times were toughest and competition for companies was at its most fierce.

So how did GPEC achieve such success in a down economy?

“GPEC has distinguished itself as a true public-private partnership where the cities, county and business leaders have a working forum to collaborate around economic development issues,” says Don Smith, president and CEO of SCF Arizona and vice chairman of GPEC’s board of directors. “It also possesses an outstanding research capability that can reliability assist other economic development interests in making successful decisions. The strategies and tactics at GPEC are robust, and comprehensive, covering local, national and global interests on behalf of the state, and the ground game both internationally and domestically is exceptional.”

The economic impact of GPEC’s success is staggering. The 36 companies it assisted in 2012 will create more than 4,000 jobs for the Greater Phoenix region, will generate $178 million of net new payroll, and absorb or build approximately 3.8 million square feet with their phase one investments.

Companies GPEC helped relocate to the Valley include CyrusOne, one of the largest data centers in the country, and Silicon Valley Bank, an expan100 AB | January-February 2013

Andy Warren

CEO Maracay Homes - Phoenix Business Journal Notable personal accomplishment: “Between now and July 2013, Maracay Homes will open 10 new communities and 845 new homes, representing just over a quarter of a billion dollars in new home values.”

Reason he joined GPEC: “It was an obvious alignment with GPEC’s mission and what my industry needed since, particularly in Arizona, real estate and home building was in the center of the recession and job creation was — and is — the solution. I wanted to be a part of reversing that trend within the real estate marketplace as well as the state overall.”

Key to future growth: “We have really thriving industries that are driving a successful, growth economy. Arizona’s good weather, positive economy, diversified industries with flourishing spinoffs and ongoing growth opportunities will help drive our success.”

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GPEC sion from California creating 250 jobs at an average salary of $88,000.

Advanced business services, general business services, transportation and distribution, manufacturing and healthcare continue to drive the majority of GPEC’s relocation activity, with environmental technologies rounding out the lion’s share.

GPEC President and CEO Barry Broome credits part of his organization’s success to a major policy achievement for Arizona, the Qualified Facilities Income Tax Credit.

“Gov. Jan Brewer, House Speaker Andy Tobin, Senate President Steve Pierce and the entire Arizona legislature have worked hard to improve our business climate as evidenced by the Qualified Facilities Income Tax Credit,” Broome says. “Moving forward, key economic development programs are still needed to compete with other markets to attract high impact, export-oriented companies and investment — working together as we have done in recent years, I have no doubt we’ll get there.”

More than 11 percent of GPEC’s locates were international companies, primarily due to ramped-up efforts on the organization’s foreigndirect investment program and 16.7 percent were from California, another highly concentrated effort with partners throughout the state to draw investment to the Sun Corridor.

“We now have strong consensus that nurturing high-quality job growth is our top priority,” Warren says. “Leadership at the state level, municipal level and from the private sector are now fully aligned with a singular focus toward specific growth industries applicable to Arizona. We are creating a fiscal environment where Arizona is fully competitive with other growth-oriented states ... This clear mission and focus is on growth industries that will drive the future economy such as healthcare, clean technology, technology, aerospace and defense.”

John Welch

Partner Squire Sanders Position with GPEC: Board member Notable personal accomplishment: “It’s a tie between being married to my first and only wonderful wife for 23 years and helping raise two happy, healthy college-age youngsters.”

Reason he joined GPEC: “Arizona is a great place to live and do business. We all need to do what we can to try to make it even better.”

View of GPEC’s impact: “Competition between states is fierce for new business, and Arizona needs a driven, visionary leader of its efforts. GPEC definitely fits the bill...”

Key to future growth: “There are numerous reasons why Phoenix could and should be the hub of the solar industry in the U.S., and why solar energy should be a major focus of the U.S.’ energy policies and programs going forward. Not coincidentally, GPEC has been a major force in Arizona’s solar successes to date.”

102 AB | January-February 2013

Donald A. Smith Jr.

President and CEO SCF Arizona Position with GPEC: Board vice chair Notable personal accomplishment: “My 37-year marriage to my wife Dorothea, and the wonderful family we built together.”

Reason he joined GPEC: “Like most of GPEC’s business members, my business as a property and casualty insurer depends upon a robust, growing economy. I believe my efforts and those of our members at GPEC are creating growth opportunities for my business with existing customers as well as new prospects for the future.”

View of GPEC’s impact: “As the economic development organization for the largest population center of our state, GPEC is posed to be a leader for fundamental change, the likes of which have not been seen in Arizona since World War II. I believe the winning markets globally will have to successfully engage in attracting emerging industries, building knowledge-based workforces and creating global relevance.

GPEC has the vision, the leadership, the talent and the commitment to accept these challenges and help drive an economic revolution for our state.”

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