AzBusiness Jan/Feb 2014

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JANUARY // FEBRUARY 2014

25 GPEC BOASTS

YEARS OF ECONOMIC IMPACT YOUNG BUSINESS LEADERS UNDER 40 WHO ARE CHANGING ARIZONA BUSINESS

12 29 30 FINANCIAL WIZARDS WHO SHOULD BE MANAGING YOUR MONEY

ARIZONA CORPORATE COUNSEL AWARD FINALISTS

$4.95

BARRY BROOME, president and CEO OF GPEC

FINALISTS FOR THE INDUSTRY LEADERS OF ARIZONA

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Table Of Contents 6 Generation Next

A look at 40 innovative Arizona business leaders under 40 > Banking and finance > CEOs > Entrepreneurs > Healthcare > Law > Marketing > Real estate > Technology > Women in business

24 Dining

Food aficionados welcome Franco's back to the Valley

27 AzLTA

Arizona Lodging & Tourism Association packs economic punch > Remaining competitive in fierce tourism market > Tourism and commerce begin working closely together

44 Wealth Management

Learn from some of Arizona's greatest financial wizards

> Financial resolutions for the New Year > Wealth management experts offer tips to build wealth > Some of the greatest financial minds under 40

57 Industry Leaders of Arizona

Meet the finalists for the 2014 ILoA Awards

44 Arizona Corporate Counsel

State's finest in-house counsel take the spotlight for ACC Awards

105 Greater Phoenix Economic Council

> GPEC helps create an ‘opportunity oasis’ > Examining GPEC’s 25 years of economic impact > GPEC's plan for 2014 > The 10 greatest accomplishments for GPEC > How will Arizona’s next governor affect economic development?

Cover photo by Mike Mertes

Az Business on the Go: AzBusinessMagazine.com 2 AB | January-February 2014

GROWTH ISN’T JUST IN HOUSING ANYMORE Recently, there was a national report released by the U.S. Conference of Mayors which indicates that Phoenix will be among the fastest growing metro regions in 2014. Stop me if you’ve heard this one before: That report suggests the housing industry will drive the Valley’s growth with a 3.3 percent gross metropolitan product and a 2.8 percent employment growth during 2014.

But don’t be quick to assume all the Valley’s economic growth will come from the housing industry. Mayor Greg Stanton has spearheaded a second bioscience campus that will make North Phoenix a research hub and hotbed for bioscience jobs. And the Greater Phoenix Economic Council, which is celebrating 25 years as an economic catalyst for the region, is capitalizing on California’s increase on personal income tax and is working with the leaders of about 35 California companies and selling the benefits of relocating their businesses to Arizona. Those companies range in size from 300 to 10,000 employees and represent industries like financial services, manufacturing, life sciences and technology.

You can read about GPEC’s efforts and accomplishments in the GPEC supplement inside this issue. You can also read about how economic development groups like GPEC are collaborating with the leaders of the tourism industry to market the state as a destination for both recreation and business.

Before you delve into this amazing issue, I want to close by wishing the folks at GPEC a happy birthday. Thank you for an amazing 25 years.

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

Chef Paul McCabe and T. Cook’s invite you on a culinary adventure this season featuring our new Sunday Harvest Brunch.

For larger parties and private dining at T. Cook’s, call 602.808.0766.

Royal Palms

5200 E Camelback Road Phoenix, Arizona | TCooksPhoenix.com | 602.808.0766 /TCOOKSPHOENIX

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Shout Outs A leader in diversity

Quarles & Brady’s Phoenix and Tucson offices received the Inclusive Workplace Leader Award from the Diversity Leadership Alliance. The DLA award recognizes companies that are leaders in the area of diversity and inclusion and create an environment where individuals are treated and respected equally. “We’ve worked long and hard to create an environment in which any productive person can succeed,” says firm chair Kimberly Leach Johnson.

Man & Woman of the Year

Valley Leadership will honor Gary Trujillo, known for his unwavering commitment to advancing educational opportunities for Arizona’s underserved students, and Ellie Ziegler, who has dedicated herself to serving multiple philanthropic and nonprofit organizations, as the organization’s Man & Woman of the Year at an awards luncheon in March.

Inspiring other leaders

American City & County magazine selected Chandler Mayor Jay Tibshraeny as its Municipal Leader of the Year. The magazine has been the voice of state and local government since 1909. “Mayor Tibshraeny proves that through foresight and endurance, America’s local leaders can help overcome their community’s problems,” said Bill Wolpin, editor. “His story is worth sharing in the hopes that others will become inspired.”

PCH earns distinction

The Leapfrog Group named Phoenix Children’s Hospital to its annual list of Top Hospitals. The Top Hospital designation from The Leapfrog Group recognizes the best hospitals in the nation for providing the safest and highest quality health care services to patients.

Phoenix Children’s is one of only 13 children’s hospitals nationally to receive this honor and was the only children’s hospital in Arizona to earn this top award.

Spirit of Enterprise

The W. P. Carey School of Business at Arizona State University gave Spirit of Enterprise Awards to six businesses that are creating jobs, contributing to charities and introducing innovation. The winners of the 17th annual awards are Bluemedia, ComTrans, GPS Insight, Real Property Management East Valley, Valley Sleep Center and Vantage Retirement Plans.

4 AB | January-February 2014

President and CEO: Michael Atkinson Publisher: Cheryl Green Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Associate editor: Amanda Ventura Interns: Lauren Gephart | Sara Healy | Meg Krivanec | Alexa Renfroe Az BUSINESS MAGAZINE Senior account manager: David Harken Account managers: Ann McSherry | Shannon Spigelman ART Art director: Mike Mertes Graphic designer: Lillian Reid Graphics intern: Deborah Missel DIGITAL MEDIA Web developer: Eric Shepperd Digital manager: Perri Collins MARKETING/EVENTS Manager: Whitney Fletcher OFFICE Special projects manager: Sara Fregapane Executive assistant: Mayra Rivera Database solutions manager: Cindy Johnson SCOTTSDALE LIVING MAGAZINE Director of sales: Marianne Avila AZRE | Arizona Commercial Real Estate Director of sales: Steve Koslowski AZ BUSINESS LEADERS Director of sales: Jeff Craig RANKING ARIZONA Director of sales: Sheri King EXPERIENCE ARIZONA | Play Ball Director of sales and marketing: Zoe Terrill AZ BIG MEDIA EXPOS SCOTTSDALE HOME & GARDEN SHOW/MARCH SCOTTSDALE HOME & GARDEN SHOW/NOVEMBER Exhibit directors: Kerri Blumsack | Tina Robinson

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.

5 AB | January-February 2014

Lubna Ahmad Justin Bayless Dana Berchman Mike Bianchi Todd Bostock Alexandria Carlson Nathan Day Melissa DiGianfilippo Christina Dunn Jamie Fletcher Leah Freed Derek Flottum Melissa Ho Chris Johnson Xenia Kachur Jennifer Kaplan Firas Kittaneh Brian Koch Kevin Lange Timothy La Sota Megan I. Lennox Billy Malkovich Eric Marcus Kyle McIntosh Jason Miller Jackie Orcutt, Desirae Outcalt Gabriel A. Peraza Chris Pfund Jenny Poon Melissa Rein Christopher Rodriguez Scott Salkin Jathan Segur Mark Sholin Kelly Siegal Ryan Suchala Shawn Thiele Isabella Weems Kristina Wilson

6 AB | January-February 2014

NEXT NEXT GENERATION

Forty UNDER GENERATION

Forty

Meet 40 of Arizona’s most forward-thinking and dynamic business leaders who are 40 and under

L

FORTY UNDER FORTY eadership is crucial to success.

Whether it’s Little League baseball or a Fortune 500 company, someone has to take command for an organization to prosper.

As Arizona transitions from a state built on copper and cotton into a state whose economy relies on computers and healthcare, Az Business turns the spotlight on the next generation of business leaders who will be leading that charge.

Throughout this issue, you will meet a 17-year-girl who created a $250-million-ayear empire, a 26-year-old man who founded a biotech company that could revolutionize wastewater treatment and a woman who is changing the way cancer biopsies are being performed.

You will meet the next generation of great minds. The challenge, experts say, is keeping them here.

“If someone comes out of ASU or the University of Arizona with a science background and the bioscience economy has not come to fruition, they’re going to end up in San Diego, San Francisco, Seattle or Boston,” says Barry Broome, president and CEO of the Greater Phoenix Economic Council. “We have to start to align our economic strategy with the talent we have coming out of our schools. You have to provide them a future and an opportunity. You have to provide them a community that looks like them. One of the things I can say is Phoenix is a community for young people. Now,NEwe have to make sure we’ve XT got jobs for them.” NEXT GENERATION

GENERATION

7 AB | January-February 2014

NEXT NEXT GENERATION

FORTY UNDER FORTY

BANKING & Finance

Brian Koch, 35

Director of financial planning SRP srpnet.com Koch is responsible for SRP’s financial planning department, which crafts a six-year financial plan and a one-year budget. Additionally, the department provides extensive analytics and support for financial activities throughout SRP. Some of Koch’s challenges include how best to provide financial insight to SRP leadership and how best to manage sensitive cost data.

Jathan Segur, 34

Senior vice president of sales and marketing National Bank of Arizona nbarizona.com Segur is responsible for overseeing the executive banking department, which is comprised of 26 relationship managers and more than 50 team members statewide, along with managing the bank’s marketing efforts. At the age of 30, Segur became the youngest associate at NB|AZ to be appointed a senior vice president in the history of the company.

Ryan Suchala, 38 President Bank of Arizona bankofarizona.com

Suchala has served as president of Bank of Arizona since January 2009. He is responsible for the overall leadership, credit quality, staffing, efficiency and profitability for the commercial banking team. His banking affiliations include past chairman of the Young Risk Management Association as well as board member of the Risk Management Association.

8 AB | January-February 2014

Jason Miler: “It’s imperative to assemble a team of outside professionals, such as a business valuation specialist, exit planning consultant, attorney, tax and accounting professionals, and a financial planner.”

Transitioning leadership A thoughtful strategy can help business owners plan succession

By MICHAEL GOSSIE // Photo by LILLIAN REID

M

any business owners spend a lifetime building a company, only to find out too late there were simple steps they could have taken to maximize the value of their company before sale. Jason Miller, director of financial planning for BMO Private Bank, answers the questions every business owner should ask themselves before turning their company over to a new generation of leaders.

Question: When do I want to exit my business, and on what terms?

Jason Miller: Owners must clearly define their vision for the future of the business.

When do I want to exit my business? What role do I want to play in the business after exit?

Timing may be driven by circumstances out of the owner’s control, but this shouldn’t prevent forward thinking and planning.

Q: Who do I want to own/manage my business upon my exit?

JM: The answer isn’t always “the highest bidder.”

For many, the question of ownership succession raises some very poignant feelings. Perhaps they envisioned a son or daughter taking over, or maybe they have certain values or principles they want continued. Thoughtful decisions

should be Jason Miller, 32 made long Director of financial planning before a BMO Private Bank in Arizona transition is bmo.com/privatebank/us imminent.

Q: What can I do to maximize the value of my business in the marketplace?

JM: Steps can be taken to make businesses more attractive to potential buyers, such as several years of audited financial statements and a formally structured management team.

It’s important for owners to be objective about the value of their business and to think proactively about what they can do to make the business more attractive.

Q: How do I minimize the tax consequences of the sale of my business?

JM: If the business is to be sold to a third party, the owner needs to consider the implications of a stock sale vs. an asset sale. If the business is to be transitioned to employees, an Employee Stock Ownership Plan may be a useful exit planning vehicle. And when transitioning to family members, it may be advantageous to form a limited partnership and take advantage NEXT of available discounts prior to transfer. NEXT GENERATION

GENERATION

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Bank of America, N.A., Member FDIC. Equal Housing Lender. ©2012 Bank of America Corporation. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Borrowers should become fully informed by reviewing all loan and disclosure documentation provided. Programs, rates, terms and conditions are subject to change without notice. 00-62-0112D 02-2013 ARF36B68

9 AB | January-February 2014

NEXT NEXT GENERATION

FORTY UNDER FORTY

BANKING & FINANCE

Desirae Outcalt, 38

Operations officer The Biltmore Bank of Arizona biltmorebankaz.com Outcalt has increased loan growth by 200 percent while overseeing streamlined branch and deposit operations across the state and all marketing and advertising activities. She is also a founding member of Phoenix Suns Charities 88, which is a network of business professionals and emerging community leaders devoted to raising much needed funds for Arizona children.

Derek Flottum, 36

President Enterprise Bank & Trust-Arizona enterprisebank.com Flottum joined the Phoenix office of Enterprise Bank & Trust in January 2011 to build and manage the team responsible for the underwriting, acquisition and resolution of failed financial institutions. After successfully leading that team and providing a significant return to shareholders, Flottum was promoted to president and is now working to build the team and portfolio of the organic division.

Christopher Rodriguez, 31 Branch manager and mortgage loan officer Washington Federal washingtonfederal.com Rodriguez has taken one of Washington Federal’s lowest performing branches and made it into one of the top performers in about a year and a half. Rodriguez said it was imperative to build local business connections and personal referrals became the branch’s first focus. Equally critical was Rodriguez’s ability to develop a strong team to support client relationships and strong communication strategies.

10 AB | January-February 2014

CHRISTINA DUNN: “I was attracted to the banking industry’s fast pace, complexity of the business and the opportunity to affect the lives of people in such a meaningful way.”

Dunn deal The ability to drive change helps ASU grad succeed in banking industry

By MICHAEL GOSSIE // Photo by LILLIAN REID

C

hristina Dunn isn’t afraid to be different.

“I inherently have a drive to achieve results,” said the senior vice president of business operations for Bank of America.

“In my career, I have focused on driving change and challenging the status quo while focusing on the most valuable resource we have: our people.”

The ability to be adaptable has served Dunn well as the banking industry — which took big hits during the economic downturn — enters the era of a new economic normal.

“Regardless of location or position, it’s a critical time for the banks,” Dunn said.

“Decisions taken now will determine how well they are positioned to benefit from the recovery in developed markets, the new regulatory landscape and the next wave of expansion. Those decisions must result in a credible story for internal and external stakeholders. They also must result in a sustainable business model that delivers a return that exceeds its cost.”

Dunn said one of the most valuable lessons she had to learn in her drive to help her bank succeed was developing the

ability to trust others.

“My biggest challenge over my career has been delegation,” Dunn said. “For a long time, I felt like I needed to make the decision or do the work. It took time, failures and lots of experience to realize that the engagement and empowerment of the team leads to success that is shared.”

So how does Dunn think the future looks for her team and her industry?

“The world economy is slowly recovering from a very challenging period in history,” the Arizona State University graduate said. “Wary of further setbacks, many businesses and consumers will remain uncertain for some time and be reluctant to commit to major spending and investment decisions. This challenge makes it even more important for banks to focus on regaining consumer confidence NEXT and focus on customer service.” NEXT CHRISTINA DUNN. 34 Senior vice president of business operations Bank of America bankofamerica.com

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P h o e n i x ,

a r i z o n a

a Private christian University since 1949

Offering over 100 majors and concentrations for bachelorâ&#x20AC;&#x2122;s, masterâ&#x20AC;&#x2122;s and doctoral degree programs Learn more about GCU at 800-800-9776 | gcu.edu Follow us online at For more information about our graduation rates, the median debt of students who completed the program, and other important information, please visit our website at gcu.edu/disclosures. Please note, not all GCU programs are available in all states and in all learning modalities.

Program availability is contingent on student enrollment. Grand Canyon University is regionally accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. (800-621-7440; http://www.ncahlc.org/).

11 AB | January-February 2014

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CEO

Lubna Ahmad

President and CEO Invoy Technologies Ahmad has spent nearly a decade innovating and developing medical devices with an emphasis on biosensor technologies. In 2008, she founded Invoy, which is engaged in the development and commercialization of breath analysis devices for a broad range of applications. Invoy plans to offer patients the ability to monitor their health with a prescription-based breath analysis device.

Billy Malkovich, 34

CEO Mountainside Fitness mountainsidefitness.com Over the course of 12 years, Malkovich has worked his way up from front desk attendant and personal trainer at Mountainside to CEO. He helped lead the company through the economic downturn to where it stands today at $30 million in revenue, 10 locations and nearly 1,000 people employed in Arizona.

Jamie Fletcher, 30

CEO Mach 1 Global Services mach1air.com After graduating from ASU, Fletcher founded Mach 1 Global Services, an international and domestic freight forwarder that offers a full portfolio of transportation, logistics and supply chain services via air, ocean and ground. Mach 1 has more than 30 offices located in the US, Mexico and Asia along with best in class strategic partnerships around the globe.

12 AB | January-February 2014

JUSTIN BAYLESS: “My biggest challenge is trying to motivate different people with different skill sets — primary care physicians, psychiatrists, psychologists, social workers — and create a culture of excellence and innovation.”

The son also rises Bayless carries on father’s mission to stress importance of integrated health

By MICHAEL GOSSIE and LILLIAN REID // Photo by LILLIAN REID

J

ustin Bayless always planned to be CEO of his father’s healthcare company. He just wasn’t prepared to take charge so soon.

“The plan was for me to become CEO at age 30,” Bayless says, “but that was fast-tracked when my father had a nearly fatal heart attack.”

In 2010, at the tender age of 26, Bayless assumed leadership of Bayless Healthcare Group, the integrated healthcare company that his father, Dr. Michael Brad Bayless, founded in 1982, before its current CEO was even born.

“That succession plan which was supposed to be worked on and put together was fast tracked,” Bayless says.

That was nothing new for Bayless, who has always been on the fast track. He started his professional career by accompanying his father to work from the time he was 9 years old. He attended Morehouse College on a presidential academic scholarship and went to work after college as an investment banker at Morgan Stanley in New York City, where he developed capital market solutions to mitigate strategic, operational, credit and market risks. Bayless helped raise more than $1.7 billion dollars in equity financing for Einstein Noah, Fresh Del Monte, Burger King, Hanes Brand, Range Fuels and many other companies.

He returned to Justin Bayless, 29 work at Bayless President and CEO Healthcare in Bayless Healthcare Group 2008 as vice baylesshealthcare.com president and CFO before his father’s health crisis forced him to step into the role of CEO. “I lead by example,” Bayless says. “I was mentored by someone who taught me that perception is often reality. So even though I come at healthcare from the business side, I have learned to understand what goes on in our healthcare workers’ world and how to speak their clinical language so I can foster those relationships, which has helped our clinicians understand the business side.”

While unifying the fragmented worlds of business and healthcare workers and getting them on the same page is a major accomplishment, Bayless has a greater goal.

“I want to help people understand how integrated health benefits patients and clinicians,” he says. “All of our innovation is done for one thing: to improve value for patient and providers. Most companies have their mission statements hanging on the wall.

NEXT We try to live ours.” NEXT GENERATION

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ENTREPRENEURS

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Todd Bostock, 37

Owner Dos Cabezas WineWorks doscabezaswinery.com Bostock, who bought Dos Cabezas in 2006, is a pioneer in the Arizona wine industry and is making critically acclaimed wines that have garnered high scores from Wine Spectator Magazine and by Robert Parker’s “The Wine Advocate”. Dos Cabezas wines have even been poured at the White House.

Kyle McIntosh, 29 Founder MAC6 mac6.com FIRAS KITTANEH: “Getting customers to pay for high-priced items without touching and seeing them in person has always been our biggest hurdle,” said the CEO and co-founder of One Mall Group.

Cyberspace age Entrepreneur goes from selling slippers to mattress king of Web retailers

By MICHAEL GOSSIE // Photo by LILLIAN REID

F

iras Kittaneh became an entrepreneur by selling fluffy slippers at a shopping mall kiosk.

But unlike most college kids working at the mall, he was also doing cancer cell research, which helped pay for his college tuition.

“It’s still one of my passions,” the 32-yearold said.

His current passion helped him become a pioneer in the e-commerce space. After using the kiosk profits to open a retail store, Kittaneh closed his brick-and-mortar business and became CEO and co-founder of One Mall Group, a collection of retail websites that sell high-end housewares.

“I realized I’m not a bed salesman, I’m a marketer,” Kittaneh said. “It doesn’t matter where the traffic comes from, whether it’s online or retail. And right now, online is where it’s at.”

Kittaneh focused on items like mattresses — one of OMG’s most successful sites is amerisleep.com — because marketing bigticket items keeps small competitors from diluting the marketplace.

“There are high barriers in entering such a niche market and that challenge was very

attractive to me,” he said. “The reward is that high margins on sleep products offered great potential for success. Plus, we like the idea of providing a lifestyle product and leading the customers through the website to provide a complete life experience.”

That positive customer experience has translated into dollars.

“Our conversion rate is on par with e-commerce sites that sell products for less than $100, which is a significant achievement,” Kittaneh said.

The challenge, he said, is that “customers want everything NOW. “If they are desperate, they’ll just go to the local store,” Kittaneh said. “So we have to offer comparable service – and that’s super-fast shipping on heavy items that cost as much as $3,000. That’s a logistical challenge, but a service that’s necessary for our customers ... We also stand behind open, honest values and transparent manufacturing ideals, which NEXT helps every customer trust us implicitly.” NEXT FIRAS KITTANEH. 32 CEO, CO-FouNDER One Mall Group

McIntosh helped create the nation’s first manufacturing incubator. With a goal of “conscious capitalism,” MAC6 challenges start-ups to embrace purpose—not just profit—as a long-term business strategy. In return for the initial investment and the year of support, MAC6 receives 10 percent of the startup’s equity once it leaves MAC6.

Jenny Poon, 30

Founder CO+HOOTS cohoots.com

Poon — also owner of Eeko Studio, a boutique design agency — founded the only shared downtown Phoenix incubator that provides a professional, inspirational and self-sustaining space to grow and nurture entrepreneurialism. CO+HOOTS helps aspiring entrepreneurs collaborate on projects, share resources and generate more success to follow their dreams.

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HEALTHCARE

Mike Bianchi, 36

Associate administrator Banner Gateway and Banner MD Anderson Cancer Center bannerhealth.com Bianchi became the associate administrator for Banner Gateway Medical Center in January 2010. His responsibilities include all clinical and support ancillary services for the hospital. He has been instrumental in the Banner MD Anderson Cancer Center project development team. Peers say he has great strengths in critical thinking, interpersonal communications and diving in to do whatever needs accomplished.

Chris Pfund, 31

Co-founder Comprehensive Hospice and Palliative Care chpchospice.com Pfund is the youngest of the five business partners at Comprehensive Hospice and Palliative Care, which he co-founded in 2011 and provides physical, psychological and spiritual care to individuals experiencing a life limiting illness. Pfund’s background includes 11 years in healthcare, ranging from health insurance to hospice companies.

Shawn Thiele, 39

Deputy CEO Magellan Health Services of Arizona magellanofaz.com Thiele joined Magellan in 2008 and helped launch its suicide prevention and its race and equity initiatives to address health disparities in our community. In 2011, she became deputy CEO, handling account management, customer service, and she leads daily management of the business. She also plans Magellan’s ongoing efforts to transform the overall system of care in central Arizona.

14 AB | January-February 2014

KRISTINA WILSON: “Until we change the coaches’ perceptions of head injuries, it’s not going to change the culture. A lot has changed since the days when they were playing.”

Head cheerleader Phoenix Children’s Hospital physician raises awareness of concussions in kids

By MICHAEL GOSSIE // Photo by LILLIAN REID

W

hen the NFL acknowledged the connection between concussions and neurodegenerative diseases, the ripple effect was felt by 5-year-olds.

“Professional sports direct what happens on the youth level in many ways,” said Kristina Wilson, M.D., a pediatric primary care sports medicine physician at Phoenix Children’s Hospital. “If we have professional sports saying, ‘This is a major injury we need to take care of,’ parents definitely latch onto that and are more willing to say, ‘My kid needs to be evaluated.’”

The NFL’s admission of the severity of concussions has helped Wilson, who helped implement the Concussion Program at PCH, which treat patients who have suffered traumatic brain injuries.

“All the headlines about concussions have brought more awareness and support for doing what’s right in regards to head injuries,” Wilson says. “We see more kids than we used to. It’s not that kids are getting hit in the head more; parents are just more awareness of the signs and symptoms they need to look out for.”

Wilson’s efforts to educate coaches, referees and parents about concussions are a major reason for increased awareness in the Valley.

“Football, hockey, wrestling and soccer are

the biggest sports for concussion,” Wilson said. “I’d like to tell you there is a sport that I’ve never seen a concussion in, but that doesn’t exist.”

The Arizona Interscholastic Association, the state’s governing body for high school sports, mandated that students take a course in concussion awareness and pass a test before they play sports and several Valley districts require a baseline neurological test before students can play.

“Concussion isn’t an injury that just the child has to deal with,” Wilson says. “It’s an injury that will affect the entire family unit. The child’s school has to deal with it as well.”

That expansive impact is because concussions in children can cause irritability, lack of focus and concentration, sleep disruption and depression, Wilson says.

“Parents and coaches need to be aware of the many things that head injuries can impact,” Wilson says. “My goal is to look back and know that I helped kids enjoy playingNEsports, they XT had fun and they did it safely.” NEXT Kristina Wilson, 34 Managing broker Phoenix Children’s Hospital phoenixchildrens.org

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Recovery builds better communities

“Nothing defines the quality of life in a community more clearly than people who regard themselves, or whom the consensus chooses to regard, as mentally unwell.”

– Renata Adler, American author

A healthy behavioral health system is not just good for the members it serves. It benefits all of us by helping people with mental health and substance use issues toward recovery: Achieving wellness in mind and body. Going to school and working. Living a productive life in the community filled with health, happiness and meaning.

As we observe National Recovery Month this September, let’s remember that one in every four people in the United States is affected by mental illness. But recovery is possible, and it’s happening every day.

As the Regional Behavioral Health Authority for central Arizona, Magellan Health Services of Arizona invites you to learn more about the ordinary people who have overcome extraordinary challenges on their journeys to health, hope and recovery. Visit www.OneinFour. info. And for more information about Magellan Health Services of Arizona, access www.MagellanofAZ.com.

Magellan Health Services of Arizona is the Regional Behavioral Health Authority for central Arizona, which includes all of Maricopa County and part of Pinal County. Funds for services are provided through a contract with the Arizona Department of Health Services/Division of Behavioral Health Services (ADHS/DBHS) and the Arizona Health Care Cost Containment System (AHCCCS).

15 AB | January-February 2014

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LAW

Melissa Ho, 33 Shareholder Polsinelli polsinelli.com

Ho was voted “Best Under 40” by the National Asian Pacific American Bar Association. She was appointed by Phoenix Mayor Greg Stanton to serve as an advisor to the city’s ad hoc ethics committee and was elected to a three-year term on the State Bar of Arizona Board of Governors, the youngest such member.

Megan I. Lennox, 38

Partner Bryan Cave bryancave.com

Lennox was recognized by the Arizona Foundation for Legal Services & Education as one of its 2012 Top 50 Pro Bono Attorneys In Arizona. Before becoming an attorney, Lennox was a civil engineer with a focus on environmental engineering and hydrology and was also an environmental consultant for two international environmental consulting firms.

Gabriel A. Peraza, 29 Associate Sherman & Howard sah.com

Peraza is an emerging leader of his generation of trial counsel. A trusted, respected counselor of the law, he has represented clients before courts at both the federal and state levels and matters before alternative dispute resolution tribunals, including the American Arbitration Association (AAA) and Financial Industry Regulatory Authority (FINRA).

16 AB | January-February 2014

TIMOTHY LA SOTA: “My biggest challenge is keeping the friends I need to keep, even though I often have to engage in nasty hand-to-hand political combat.”

Fighting city hall Attorney uses background in government to clients’ advantage From staff reports // Photo by LILLIAN REID

T

imothy La Sota loves immersing himself in “David vs. Goliath” battles.

The way he sees it, he is not afraid to take on the giants because he believes the law will prevail and he knows the law very well.

“It is a sad fact even in America that every once in a while the bad guys are the people with the badges,” the 39-year-old shareholder at Tiffany & Bosco says. “When that happens, people turn to me.”

La Sota’s client list reads as a political who’s who. A few of his recent headlinegrabbing successes include:  Three Phoenix residents with Democratic ties accused District 6 City Councilman Sal DiCiccio of campaignfinance violations. The judge was “completely unconvinced” that DiCiccio did anything wrong and dismissed the matter altogether.  La Sota fought off a challenge to State Rep. Darrin Mitchell’s residency in Maricopa County Superior Court, the Arizona Court of Appeals and the Arizona Supreme Court.

Mitchell took his seat in January 2013 thanks to these legal victories.  La Sota represented Pinal County Sheriff Paul Babeu in conjunction with an

investigation by the Timothy La Sota, Arizona Attorney 39, Shareholder General’s Office. The Tiffany & investigation determined Bosco that Babeu had not engaged in any wrongdoing, and he handily won re-election.  Fought off a challenge to Surprise Mayor Sharon Wolcott based on an alleged "resignto-run law" violation. The investigation resulted in a clean political bill of health and Wolcott was elected mayor afterward.

“I attribute the success to my strong knowledge of the law in various realms that pertain to state and local government,” La Sota says.

Before entering public practice, La Sota built some of that knowledge base as chief of staff to Scottsdale Mayor Jim Lane and as a special assistant deputy Maricopa County attorney, where he represented the County Attorney’s Office at the Arizona Legislature.

“I don’t mind being the skunk at the garden party if that’s what it takes to help my clients,” La Sota says. “When the going gets tough, some lawyers head for the high hills and look for a way to drop the case, but I NEXT don’t. I circle the wagons.” NEXT GENERATION

GENERATION

Savor Every Moment Everyone is entitled to their perfect goodbye.

Comprehensive Hospice empowers your loved one to live every day to the fullest, in the comfort of their own home.

Hospice is about living, too.

chpchospice.com 602-795-9705

17 AB | January-February 2014

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MARKETING

Melissa DiGianfilippo, 30 Vice president Serendipit Consulting serendipitconsulting.com

DiGianfilippo has helped Serendipit double its profit year after year since joining Serendipit in 2010 and has been a vital part in Serendipit’s achievement as Best of Arizona Business in 2012 and 2013 for companies with seven or fewer employees in its PR depertment, along with having numerous PR campaigns be nationally awarded and recognized for their successes.

Melissa Rein, 28

Owner The Brand Consortium PR thebrandconsortium.com Rein has been instrumental in developing some of the largest and most successful publicity campaigns for a wide range of lifestyle, hospitality and entertainment companies and brands in Arizona and across the West Coast. Her multi-dimensional public relations, marketing consulting and branding programs have earned Rein awards for “Best PR Firm” and “Best Social Media Company.”

Kelly Siegal, 32

Vice president of growth initiatives Martz Parsons martzagency.com In eight years, Seigal has risen from account executive to vice president.

When the market crashed in 2008 and 95 percent of Martz’s clients were in the struggling real estate industry, Seigal revitalized the client base, brought the agency into the social sector and landed a new client — Zhu Zhu Pets — that she helped earn 2010 Toy of the Year.

18 AB | January-February 2014

CHRIS JOHNSON: “We felt it was time to create the agency of the future. Teaming with E.B. Lane, a leader in the advertising industry, provides the perfect complement to our digital offerings and it will best allow us to fulfill our ongoing mission to drive results for our clients.”

Leveraging the digital age Johnson’s forward-thinking vision builds marketing powerhouse

By MEG KRIVANEC // Photo by LILLIAN REID

C

hris Johnson has been able to identify and capitalize on opportunities throughout his career.

In 1995, he saw the potential of the Internet and its ability to help grow a local software consulting company at which he worked. He shared his vision with his boss and helped grow the company from 15 to 750 employees.

“At too young an age, I had a lot of experience,” Johnson says. “I think I was 26 and I was regional vice president and had 300 people reporting to me. It was a bit much.”

Shortly after that success, the tech bubble popped and Johnson was forced to lay off numerous people in an attempt to control costs. Johnson then worked as a consultant for a year before he felt the entrepreneurial itch and realized he should start his own business, so he founded Terralever, a full-service digital marketing firm.

Johnson says there is no such thing as a parttime entrepreneur.

“There is nothing more motivating than having it all on the line,” he says.

Johnson put a lot on the line in October when he merged his company with public

relations agency E.B. Lane to form LaneTerralever.

Johnson and E.B. Lane had been in talks for several months and had worked in partnership numerous times over the past 10 years.

Leadership at both firms thought it was the perfect time to go beyond a typical growth strategy of cautious acquisition and make a confident and bold step to blend two strong organizations.

As president of LaneTerralever, Johnson plans to apply the lessons he’s learned, as well as continue to adapt to the changing environment.

“I have learned to listen a lot more than I speak,” Johnson says. “I think I have learned a lot about how to build a good long term organization. Building a company is a completely different skill set (than being an independent consultant) and that is what I have been learningNEfor 11 years and will XT continue to learn.” NEXT

Chris Johnson, 40 President LaneTerralever laneterralever.com

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19 AB | January-February 2014

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Real Estate

Nathan Day, 30

President Cypress Development Group cypressdevelopment.com

Day is the developer behind “the greenest homes in Arizona” at Sterling at Silverleaf, the first and only Arizona community to blend luxury with ecoliving starting at $2.2 million. In November, Day’s Scottsdale-based Sterling Collection Development Group merged with luxury home builder Luster Custom Homes to form Cypress Development Group.

Kevin Lange, 33 Keyser keyserco.com

Lange has successfully participated in the leasing, selling and acquisition of more than 8 million square feet of transactions since entering commercial real estate in 2003. He currently sits on many distinguished boards, such as the Canada Arizona Business Council and Arizona Bio Consortium, where he is the founding partner.

Jackie Orcutt, 31

Associate director-Phoenix Industrial Services Group Cushman & Wakefield of Arizona cushwake.com Orcutt is an associate broker in Cushman & Wakefield’s industrial division, one of only a handful of women in that position. Since starting her career in 2007, Orcutt has been involved in more than 244 lease transactions, totaling in excess of 82.85 million square feet; and more than 42 building sales, totaling nearly 15.12 million square feet.

20 AB | January-February 2014

Alexandria Carlson: “Having a good mentor plays an important role in becoming successful. My broker, Sandra Wilken, is an incredible mentor and she’s helped me grow and hone in on my strengths and build my skills.”

An analysis of success Young managing broker’s innovative approach finds success in luxury market

By MICHAEL GOSSIE // Photo by LILLIAN REID

B

ecoming the youngest managing broker in the Valley wasn’t part of her plan.

“I kind of fell into real estate,” says Alexandria Carlson, the 31-year-old managing broker at Engel & Völkers Sandra Wilken Partners. “I graduated from George Washington University in 2005, randomly got a job with a commercial real estate firm and loved it.”

What Carlson didn’t love was the snow, wind and rain in Washington, D.C. So the native Phoenician, armed with a degree in international economics, moved home in search of a career and landed a job with Wilken.

“I loved residential real estate right from the start,” Carlson says. “Commercial is more transactional and cut and dry. Residential is more service oriented and that really played into my personality.”

Carlson’s made an instant impact. She was instrumental in redesigning Wilken’s website, executed an internet marketing campaign and led the firm into the technology era. After just two years, Realtor Magazine named Carlson as one of the nation’s “50 Realtors under 30 to watch” in 2010.

“It was actually good for me to start during the economic downturn because I never had a taste for how things were when you could buy a property if you had a pulse,” Carlson says.

“Learning from the bottom and working my way up definitely made me more humble than if I had started in 2005 or 2006.”

Most of Carlson’s clients are in the market for homes in Scottsdale, Paradise Valley and Biltmore that are priced between $250,000 and $3.5 million.

“You have to know everything that’s going on in your area and that plays into my strengths because I’m very analytical,” she says. “That’s helps me excel at pricing, excel at negotiating and establish the right value for the property.”

Despite having an affinity for economics and analysis, Carlson says it’s the personal aspect of residential real estate that helped her succeed.

“Having compassion for people takes you very far in this industry,” she says.

“Reputation and word of mouth also takes you very far. The more compassionate you are, the more they will refer you to their friends and family and thatNEhas definitely XT helped my business grow.” NEXT Alexandria Carlson, 31 Managing broker Engel & Völkers Sandra Wilken Partners sandrawilken.evusa.com

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TECHNOLOGY

Eric Marcus, 33

CEO Marcus Networking marcusnt.com Since founding the company in 2002 using start-up capital that he had saved from working at his previous IT job, Marcus has grown to serve clients in Arizona, California and Nevada. Marcus’ expertise in helping doctors and behaviorial health experts convert to electronic medical records — which has been mandated by the federal government — has helped his company explode.

Scott Salkin, 35

Founder and CEO IDS Technology Marketing idstm.com With no outside funding in 2007, Salkin launched IDS and has grown it into a multi-million dollar marketing firm focused on business-to-business technology companies.

Salkin was the organizing chair for the Arizona Technology Council’s StartupConnect AZ Conference, the state’s first ever conference focused on connecting and showcasing the state’s growing start-up, corporate and funding ecosystem.

Mark Sholin, 26

Founder and CEO Arbsource arbsource.us

Sholin founded the wastewater treatment biotechnology company in 2011, licensing technology from ASU. He was a PhD student and graduate research associate at ASU, helping develop precursors to the latest Arbcell product concept, until leaving in late 2011 to build Arbsource full time. He earned a degree in chemical engineering from the University of Arizona in 2010.

22 AB | January-February 2014

DANA BERCHMAN: “Technology is changing the way we engage with our residents in many new and innovative ways, including through the use of social media and mobile applications.”

Living the digital dream Berchman helps position Gilbert as a leader in technology

By MICHAEL GOSSIE // Photo by LILLIAN REID

G

ilbert was once known as the “Hay Shipping Capital of the World.”

Dana Berchman is on a mission to bury that branding.

“When our town manager, Patrick Banger, arrived in Gilbert from St. Louis two years ago, he laid out an aggressive plan to position Gilbert as a leader in technology and digital government,” says Berchman, who was named Gilbert’s first chief digital officer in April 2012.

“With the creation of my position and our department, we are setting a standard that is not often seen in municipal government.”

Berchman went to work immediately.

“We implemented a brand for our department, ‘Gilbert Digital,’ and I created unique positions, including digital journalists and a digital applications specialist,” says Berchman, a graduate of Gilbert High School and ASU.  She helped create a Social Media Advisory Research Taskforce to bring together the town and local businesses to share social media strategies.  Her team wrote, shot and produced the first Digital State of the Town, a 20-minute documentary that highlighted Gilbert’s accomplishments.

 She partnered with ASU and Intel to create a mobile application competition for students to encourage science and technology in high schools.

Berchman’s vision has reaped rewards for the town. It earned a 3CMA (City-County Communications and Marketing Association) award for its Digital State of the Town and a Digital Government Achievement Award for its SPARK Mobile App League.

“During the first six months I held this position, we developed and unveiled a Digital Roadmap, laying the foundation for the future of the department and outlining my vision to help establish us as leaders in digital government,” Berchman says. “One year later, we are leveraging digital tools and connecting with our residents like never before. Through our innovative use of technology, my goal is to continue to embrace new technology and engage with our residents through sleek web design, mobile applications, digital media and high-quality video production to showcase all NEXT that Gilbert has to offer to the world.” NEXT Dana Berchman, 34 Chief digital officer Town of Gilbert gilbertaz.gov

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WOMEN

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Leah Freed, 37

Office managing shareholder Ogletree, Deakins, Nash, Smoak & Stewart, P.C. ogletreedeakins.com Freed is one of just a few female managing shareholders of a major Phoenix law firm and has become a respected leader in the international law firm, which has more than 700 lawyers in more than 45 offices. Freed has experience defending employment-related lawsuits in state and federal courts.

Xenia Kachur, 26

Founder and CEO Kulira Technologies kuliratech.com

Isabella Weems: “I think passion and determination are often the keys to success in anything you do. I feel very fortunate to find success in doing what I love and I enjoy finding ways to inspire others to do the same.”

charmed life OF A TEEN In three years, Valley teen has created a $250-million-a-year jewelry empire

By MICHAEL GOSSIE

L

ike most 14-year-olds, Isabella “Bella” Weems dreamed of having her own car.

“I’ve always had a passion for fashion and jewelry ever since I was little,” the Gilbert high school senior says. “When I made the decision to save money to buy a car, I did quite a bit of research and brainstorming before coming up with the idea of personalizing lockets with charms to tell a story.”

That moment of brilliance led to the creation of Origami Owl, a custom jewelry company that uses independent associates – known as “designers” – and turns them into a sales force. The company, which Weems founded in 2010 at age 14, generated an estimated $250 million in revenue in 2013, a 10-fold increase over 2012.

So how did she do it?

“After some success selling out at house parties and local events, I decided to rent a (Chandler Fashion Center) kiosk for Black Friday 2010,” Weems says, “and it did really well. That was the moment I knew we had something special.”

Origami Owl now has more than 50,000 independent designers who buy the personalized lockets and charms at a discount and sell them to others at a marked-up price at jewelry bars or private parties. The company also employs nearly 400 people in the company’s Chandler headquarters.

So what does a teen tycoon do for an encore after creating a $250-milliona-year-company before she’s even old enough to vote?

“School always comes first and I am in the process of deciding what my next step will be after I graduate from high school,” Weems says. “I will always be involved with my company and would like to see Origami Owl become a household name, but I also have a passion for singing and writing music too. I love being on the road speaking to young girls about reaching their dreams and NE encouraging others to be XT a force for good.” NEXT Isabella Weems, 17, founder and owner of Origami owl

While still a student at the University of Arizona in 2011, Kachur founded Kulira Technologies, an advanced biomedical engineering company that designs solutions for surgical oncology using stateof-the-art biomaterials. Kulira Technologies is improving the process of cancer biopsies.

Jennifer Kaplan, 39

Owner and CEO Evolve Public Relations and Marketing evolveprandmarketing.com Kaplan is a familiar face in the Valley with years of start-up experience.

She co-founded PRIME 3, LLC, in 2005 before deciding to start her own firm in 2010. Her clients range from restaurants, retail, entertainment, real estate, medical, legal and nonprofit organizations.

GENERATION

GENERATION

23 AB | January-February 2014

DINING The taste of Tuscany Franco’s Italian Caffé takes tradition and delivers it to Scottsdale

By MICHAEL GOSSIE // Photos by MIKE MERTES

I

generally wince when someone suggests an Italian restaurant.

I grew up in an Italian family and never saw my grandmother open a can. I never saw her open a box.

When she made her “gravy,” she started with tomatoes. When she made her pasta, she started with flour.

So nearly every time I go to an Italian restaurant, I’m reminded of a classic “Goodfellas” line: “I ordered some spaghetti with marinara sauce and I got egg noodles and ketchup.”

But one day, the sky opened and a beam of light — I’m assuming it was the spirit of Grandma Gossie — led me to the homeland: Franco’s Italian Caffé in Scottsdale.

Franco’s is the creation of Tuscan-born Franco Fazzuoli, who had three wildly popular Italian restaurants in Phoenix starting in the 1980s before leaving the Valley in 2006 to follow his daughters to New York, where they were studying ballet. While in New York, he opened a well-received Italian restaurant in Greenwich Village.

“I wanted to sell my part of the restaurant and come back to Arizona sooner,” Fazzuoli says in his thick Italian

24 AB | January-February 2014

LEFT: Linguini and clams RIGHT: Franco Fazzuoli and his daughter Leela

accent, “but they wouldn’t pay me what it was worth because they told me, ‘Without you, it’s not worth anything.’”

Luckily for Valley diners, Franco is back. Here is what struck me: ➤ Franco’s creates the perfect blend of traditional and progressive. The pastas are all homemade, but they are created in a spectacular fashion that even I have never experienced. ➤ The staff — including Franco himself, who greeted us at the door and made every guest in the intimate establishment feel like they were the most important customer he has ever had — has an impeccable knowledge food and wine, the intricacies of Italian tradition and what makes each dish worth trying. ➤ The intimate and friendly atmosphere complements Fazzuoli's cuisine perfectly.

I remember when people would ask my grandmother what she put into her sauce that made it so robust and flavorful.

“Pazienza,” she would say. Patience.

That simple world — the lesson that is passed down from generation to generation in Italy — is what makes Franco’s stand atop meatball mountain in Arizona. Fazzuoli has mastered the art

of taking fresh ingredients, respecting tradition and having the discipline and patience to allow those ingredients to speak directly to our taste buds.

Here is where it gets difficult for me: I’m supposed to recommend dishes for you to try. I’m supposed to take a critical eye and dissect the menu items so you can have some guidance when you go to Franco’s.

But I can’t. EVERYTHING is superb.

So do what I did: Go to Franco’s with a group of friends and have everyone order something different. Ask for an extra plate if you need to and then sample everything. I guarantee that the parade of palate pleasers will have you scrambling for a thesaurus so you can figure out different ways to say, “Wow.” As for me, I want to believe that leading me to Franco’s was Grandma Gossie’s way of gifting me with a slice of heaven, lovingly presented on a perfect white plate. Or, in my case, about a dozen empty white plates.

Franco’s Italian Caffé 4327 N. Scottsdale Road 480.481.7614 francosscottsdale.com

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29 AB | January-February 2014

B

EL CH A y MI

G OS

Tourism and commerce groups collaborate to spark Arizona’s economic development

W

hen Ken Kendrick came to Arizona in 1989, he left heartbroken.

But he fell in love.

Kendrick traveled to the Grand Canyon state to watch his beloved West Virginia Mountaineers lose to Notre Dame in the 1989 Fiesta Bowl. But the majesty, energy and climate of Arizona left such an impression on Kendrick that he made Paradise Valley his home and became part-owner of the Arizona Diamondbacks in 1995.

“Events like the Tostitos Fiesta Bowl bring two broad areas of economic benefit to the community,” said Robert Shelton,

30 AB | January-February 2014

SI E

former president of the University of Arizona and current executive director of the Fiesta Bowl. “One is the quantifiable, documentable immediate economic impact — the percentage of people that came from out of state, how many hotel rooms they filled, how much money they spent each day. They are pretty hard and fast numbers.”

The second economic benefit, Shelton said, may be even more important to the long-term economic health of the state.

“Events like the Fiesta Bowl or the BCS Championship game demonstrate that the state of Arizona and the Greater Phoenix area is a destination and is a player at the national level,” Shelton said. “They show you can come and have airport connections everywhere. You can have a business infrastructure. You can have

all the major sporting teams. It’s a way of demonstrating that the fifth-largest city in the country and its surroundings play at the highest level. It’s harder to say four years after we hosted the national championship game that new businesses started up in Phoenix and Tempe and Mesa and Glendale because their CEOs showed up here as alumni at the game, but it does happen.”

Opening doors Kendrick’s move to Arizona illustrates Shelton’s point that tourism has long been a means to an end for generating

31 AB | January-February 2014

Clockwise from top: Debbie Johnson, Barry Broome, Ken Kendrick, Robert Shelton, Sherry Henry, Glenn Hamer (center).

business attraction leads. However, the two industries have recently realized that working together helps to bring more exposure to the state and both are working to collaborate and educate on the benefits of promoting Arizona.

“Arizona’s tourist destinations often serve as a window to our state’s quality of life and open the door to many business and economic development opportunities that contribute to our state’s economy,” said Sherry Henry, executive director of the Arizona Office of Tourism. “Because of this, our agency stays well connected to and collaborates with many economic development organizations, such as the Arizona Commerce Authority, ArizonaMexico Commission, Arizona Chamber of Commerce, Maricopa Association of Governments, Greater Phoenix Economic Council, Tribal entities, statewide chambers of commerce and convention and visitor bureaus. We’re all in the economic development business. We’re all here to promote Arizona’s assets and encourage growth and development that is important to our state’s vitality.”

32 AB | January-February 2014

The growing synergy between Arizona’s tourism industry and economic development group resulted in a plan to open a trade and tourism office in Mexico City. Economic development experts said the move makes a statement that Phoenix is open for business. Using the office to also promote tourism, particularly travel to take advantage of the Arizona’s superior medical facilities, could help lure Mexican companies to the area.

“Tourism stakeholders have to keep reminding policymakers that a healthy tourism industry isn’t a ‘nice to have’ for Arizona, it’s a ‘need to have,’” said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry.

“Tourism is so closely tied not only to the state’s identity, but to our ability to grow jobs, that we must look for ways to craft responsible policy that promotes the industry. We’re all in the business of jobs.”

Working together What the tourism and commerce industries have done over the last couple years that they had never done before is

work together to create a more cohesive marketing structure to make sure both sides were on the same page to take advantage of opportunities that presented themselves.

“We really provide economic development groups with the opportunities to go out and meet with business leaders,” said Debbie Johnson, president and CEO of the Arizona Lodging & Tourism Association (AzLTA). “So it’s advantageous to have our marketing plans on the same page and to make sure we’re communicating the value of events. We are making sure that when we have an opportunity, we share it with them and when they have an opportunity, they share it with us.”

One of the major unified efforts between tourism and commerce has been joining together on international trade missions.

“We’re going out together — both commerce and tourism – and talking about the advantages of Arizona,” Johnson said.

“So it’s not just from a visitor’s perspective or a business owner’s perspective. We bring in both sides of it.”

While tourism and commerce groups

33 AB | January-February 2014

Jewel of the desert: The Arizona Biltmore has been attracting business leaders and celebrities since 1929. Marilyn Monroe said the Biltmore had her favorite pool and famed song composer Irving Berlin wrote “White Christmas” while sitting poolside at the Arizona Biltmore.

have started to present a unified front, there is still a middle ground that both groups are trying to find as they try to create success for themselves while balancing the needs of the other side.

“Tourism is about getting people here to enjoy themselves,” said Barry Broome, president and CEO of the Greater Phoenix Economic Council (GPEC). “We’re about getting people here to do business with us.

A lot of people don’t want to take a trip to the Biltmore to get a pitch from GPEC.” Building on success To further enhance the symbiotic bond between tourism and commerce, Broome said economic development groups need to align themselves with the tourism industry and coordinate the branding in a way that conveys Arizona’s strengths as a tourism hot spot as well as the message from GPEC, the ACA and other economic development groups.

“The thing tourism does for us is it gives a quality of life brand,” Broome said.

34 AB | January-February 2014

“We talk to CEOs and ask them what they know about the market and they give us the tourism brand. ‘We know you’re a great place to visit. You have wonderful resorts. It’s a place that’s fun to golf. It’s great hiking and biking.’ The tourism piece gives us an advantage from the standpoint that we get to augment our quality of life position in the industry sectors through tourism.”

To further utilize the strength of hospitality to enhance economic development in Arizona, Broome said he would like to see the tourism industry interweave into their marketing message a theme that promotes Arizona as a hub for technology and export industries so tourism and commerce could lift their economic bases more aggressively together.

“The other piece that would be really awesome would be if convention organizers — when they have the leaders of industry associations in their space — could work with GPEC to present a case to those CEOs while they are here,”

Broome said. “There’s not enough of that happening. We need help from the tourism industry to get inside those rare opportunities, but at the same time we have to respect the fact that the tourism industry is trying to show those people a good time and entertain them.”

While both commerce and tourism leaders said there is no way to place a value on the marketing muscle the Valley gets when it is showcased during the Fiesta Bowl or the Super Bowl in 2015, the value generated by the growing collaboration of tourism and commerce may pack a longterm economic impact that exceeds the impact of mega-events.

“It’s important for us to continue to build upon the relationships we’ve set in place with economic development groups,” Henry said. “It’s all about telling the Arizona story. The more people who understand what Arizona has to offer as a place to live, work and visit, the more we can contribute to the economic success of our state.”

35 AB | January-February 2014

Game changer Experts say a special events fund could help the state win big economically with mega-events

By MICHAEL GOSSIE

I

f you ask the experts, Arizona should be THE go-to destination for mega-events.

“In terms of the physical infrastructure and the experience, Arizona is certainly at the top,” said Robert Shelton, executive director of the Fiesta Bowl and former president at the University of Arizona. “We have fantastic resorts to host alumni, major university donors, VIPs and teams. We have a stadium that is second to none — not only because of the newness and the seating and the sight lines, but also for the

36 AB | January-February 2014

field itself, which can roll out and allow the teams to play on real grass. So you have the stadium, the places for alumni parties, the perfect climate. All of that infrastructure is really strong.”

Arizona can show visitors an amazing time, but what it can’t do is show organizers the money. Whether it’s the state tourism office’s budget compared with other competitive states or the ability to bid on mega-events such as the BCS Championship game, the Final Four, the Super Bowl or national political

conventions, the opportunities for Arizona to play in these arenas and reap the economic benefits are endless. The question is, experts said, can we come up with the cash to compete with other destinations?

“Hosting events like the Super Bowl, the Tostitos Fiesta Bowl, the Waste Management Open and NASCAR races provide great opportunities to showcase Arizona’s signature beauty and diverse activities to a worldwide audience,” said Sherry Henry, executive director of the Arizona Office of Tourism. “Vibrant

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images of Arizona’s wonderful weather, unforgettable scenery and exciting attractions are broadcast to millions of people throughout the world, enticing them to discover more about our amazing destination.”

Those showcase events also pack a tremendous economic punch. In 2011, the last time the Valley hosted the BCS Championship, the Center for Competitiveness and Prosperity Research at ASU’s W. P. Carey School of Business estimated that the Valley’s festival of college football events — the BCS National Championship game, the Fiesta Bowl, and the Insight Bowl (now the Buffalo Wild Wings Bowl) — had an economic impact on Arizona's overall economy of $354.6 million. When the state hosts the Super Bowl again in 2015, the estimated economic impact could exceed $500 million.

“The Fiesta Bowl and the BCS Championship game come at what we call ‘our quieter times,’” said Debbie Johnson, 38 AB | January-February 2014

president and CEO of the Arizona Lodging & Tourism Association (AzLTA). “What we get from those games from a media point of view is huge. You have people sitting in Chicago, watching the BCS Championship while it’s snowing outside and they say to themselves, ‘I think I'm going to go to Arizona next January.’ That’s the kind of advertising and marketing that we just cannot buy if we wanted to.”

So how does Arizona get more megaevent dollars flowing into the state?

Officials have to bid on them, like they have successfully done recently with the 2011 Major League Baseball All-Star Game, 2015 Super Bowl and 2016 college football National Championship game.

“How the bidding process works is we put together an LOC — a local organizing committee — made up of business leaders, industry leaders and those leaders in the community that can make things happen,” Johnson said. “Usually, we’re bidding against various cities, depending on what the event is. The main thing you

have to figure out is if you can meet the hotel room block and whether or not you can raise the dollars that are requested.

There is always money that is needed to support a mega-event.”

To generate the dollars needed to bid on an event, Johnson said the tourism industry comes up with a chunk of it, private industry comes up with some of it and the rest comes from groups that see the benefits in hosting mega-events in Arizona.

“There really is good support for the mega-events we bring into the state,” Johnson said. “The problems arise when you’re hosting many events. It becomes harder and harder to get those funds. It’s one thing if you’re just looking yo host a Super Bowl every six or seven years.

It becomes a challenge when you’re also looking to host a BCS Championship game, a Major League Baseball All-Star Game and the Final Four. That’s when raising those dollars becomes a challenge.”

Where Arizona faces an even more difficult challenge, Shelton said, is when

39 AB | January-February 2014

"We have a stadium that is

second to none,

not only because of the newness

and the seating and the sight lines,

but also for the field itself, which can roll out and allow the teams

to play on real grass."

–Robert Shelton

it’s bidding against states like Texas that have special event funds.

“If an event can document a certain amount of economic impact, then the state has a pot of money that it returns to the event organizers in recognition of that economic impact,” Shelton said.

“So the state doesn’t put out any money unless the economic impact is there. That really helps, because staging these megaevents — whether it’s a Final Four or a Super Bowl — takes some money to put them together.”

Arizona does not have a special events fund, but experts said the state needs to establish a long-term economic strategy that includes some kind of funding mechanism to bid on and attract events that pack a major economic punch.

“It’s getting harder and harder to come up with the funds needed to successfully bid on these mega-events,” Johnson said.

“We can do it every six or seven years, but we cannot do it every year or every 40 AB | January-February 2014

couple years, which would give us the greatest economic benefit.”

Johnson said it’s critical for Arizona to create a special events fund because the impact goes beyond filling up hotel rooms and pumping up the tourism industry.

“It’s about all the people that come in for the event and generate a significant amount of tax revenue,” she said. “It’s about bringing money into the state that offsets our own residents’ tax liabilities. It brings positive recognition to our state and advertising that you cannot buy otherwise.

Plus, it brings in people who often end up moving their businesses here. There is story after story about people who came to Arizona for an event, fell in love with the state and moved their business to Arizona.”

For the state’s most recent bid for the 2016 college football National Championship game, Shelton said the honorary board included Sen. John McCain, Gov. Jan Brewer and five mayors.

Shelton pointed out that many political

leaders already support the state’s efforts to attract more mega-events and are already putting their names on the line to attract more big-money events to the state.

“From a financial perspective, the state would benefit in the short, medium and long run by establishing a special event fund where they wouldn’t be spending money that they don’t have,” Shelton said.

“They would just be allocating a portion of the new revenue that would come in as the result of the economic impact from a mega-event. That’s the kind of thing that needs to happen so we can play on a level playing field. From that level playing field, we can say, ‘You’re going to have great weather. You’re going to experience great resorts and dining and nightlife.

You’re going to have opportunities to visit Sedona and the Grand Canyon.’ All the things that make Arizona special then get featured if we can bid competitively on these mega-events.”

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43 AB | January-February 2014

WEALTH.MANAGEMENT

44 AB | January-February 2014

Dollars and sense Arizona’s top financial minds offer advice to build wealth and have a bountiful 2014

By MICHAEL GOSSIE

W

ith the dawning of the new year, many Arizona business leaders have visions of dollars dancing in their heads.

“While we see improvements in the market, the recovery is long, which may represent slow economic growth in specific industries,” says Mary Collum, senior vice president and private bank manager for National Bank of Arizona.

“We are advising clients to create a realistic capital plan, which includes projections for slow revenue growth and increased operating costs.”

For individuals, it’s the time of year when we make resolutions: to lose weight, eat right or spend more time with the family. But experts say financial resolutions sometimes fall through the cracks.

“I encourage all my clients to make time early in the year to meet in person with their team of advisors — their CPA, attorney and banker,” Collum says. “The team agenda includes a historical review, lessons learned, what opportunities lie ahead and what infrastructure they need to build now to ensure a successful future.”

Az Business magazine asked some of the Valley’s brightest financial minds

Mary Collum

Brett Bhesania

Trevor Bush

to offer advice and resolutions that will guide you to a prosperous 2014.

Brett Bhesania, commercial lender, Biltmore Bank of Arizona: “Although interest rates are still at historical lows, the rates on the debt are likely higher than what businesses are earning on their surplus cash. Paying down debt and reducing interest expense is one way to be more efficient with your cash.”

Trevor Bush, senior vice president and manager, Arizona retail banking division, Washington Federal: “Resolve to establish a budget and live within it while also saving for a rainy day. Even if it’s only $5 a week, it will add up over time.”

Candace Hunter Wiest, president and CEO, West Valley National Bank: “Sweat the small stuff. Most people are thoughtful about spending on major purchases, but it is amazing how much you can spend on routine items without blinking. Example: five Lattes a week can cost $960 a year.”

Michael Riley, Metro West Area president, Wells Fargo: “Commit to setting aside a portion of your paycheck to save for retirement or add to your savings account in case of an emergency. Simplify your day-today finances so you know where your

Candace Hunter Wiest

Michael Riley

money is going. Monitor your progress and be transparent; a household budget should not be a secret.”

Paul Rutkowski, managing partner, Nelson Financial Services: “ As we know, New Year’s resolutions are far too often temporary fixes. If you want to make a real change in your finances, then it must be a lifestyle change that is simple, specific and easily automated into your busy life.”

Todd Stoa, senior vice president and wealth advisor, UMB Bank: “I am always amazed at the number of people who don’t have an estate plan or haven’t reviewed it recently. Review your estate plan. Is your estate plan up to date?

Is it achieving the goals you need it to achieve for you and your family?”

Elaine Szeto, director of National Treasury management, Mutual of Omaha Bank: “For business owners, a valuable 2014 resolution would be to develop a solid payables and receivables strategy. A good banking partner can help leverage the latest Treasury Management solutions to extend payment windows, accelerate collections and put every dollar to work sooner to generate returns and grow your bottom line.”

Paul Rutkowski

Todd Stoa

Elaine Szeto

45 AB | January-February 2014

WEALTH.MANAGEMENT Deborah Bateman

Theresa Chacopulus

Alanna Fairfield-Lacey

Bateman, who has more than 35 years of banking experience, oversees the delivery of products and services for the bank’s high net worth individuals and is responsible for the NB|AZ Private Bank, NB|AZ Wealth Management and Executive Banking.

Bateman is also responsible for several of the bank’s key departments including Nonprofit Banking and the Women’s Financial Group.

Chacopulos serves high net worth clients, offering a customized approach to portfolio management. A 29-year financial services veteran, she holds the Certified Financial Planner (CFP ®) and Certificated Investment Management Analyst (CIMA ®) designations. She is insurance licensed in Arizona and has Series 7 and 66 registrations.

Fairfield serves the needs of high net worth clients by building and managing customized portfolios featuring comprehensive and forwardthinking banking solutions and wealth management services. She holds a bachelor’s degree in finance from Arizona State University and is committed to serving the community, currently with New Pathways for Youth.

Executive vice president, director of wealth strategies National Bank of Arizona nbarizona.com

Biggest mistake she sees clients make: The biggest mistake clients make is not having a well-organized plan that encompasses all facets of their personal finances. It’s important to understand the short- and long-term effects of each financial decision you make.

Best advice she ever received: I learned early on that it is important to set realistic goals and to have a wealth management plan in place that aligns with the needs and wants of your lifestyle.

Best advice she can offer: Take a planning-based approach that encompasses all wealth management issues, including charitable giving, tax planning, education, family support, etc. You want to ensure that you have all of your bases covered, not just investments.

46 AB | January-February 2014

Senior vice president Morgan Stanley Private Wealth Management morganstanley.com

Biggest mistake she sees clients make: Investing on their own and trying to time the fluctuations in the market is by far the biggest mistake. Emotion can drive individuals to sell positions near market lows and try to guess when to get back in.

Best advice she ever received: Make sure you create an Investment Plan for every client. All aspects of a client’s life must be considered before you can accurately provide a customized solution.

Best advice she can offer: Wealth management as an investmentadvisory discipline incorporates a number of aggregated financial services. My advice is to find an advisor that will properly manage these segments, in addition to working with your attorney, CPA or any of your professional advisors.

Vice president, private banking Mutual of Omaha Bank mutualofomahabank.com

Biggest mistake she sees clients make: Taking unfamiliar risks. Not sticking with what they know and what has worked for them. A lack of balance between growth and protection that is appropriate for their situation.

Best advice she ever received: Make a plan, stick to it, and work with trusted advisors, especially in areas unfamiliar to you. All of those things put you on the road to managing wealth.

Best advice she can offer: Take a comprehensive approach and assess your current and future financial goals at least annually, or if there’s been a change in circumstances, to see if they are aligned and suitable for your situation. What may have been an appropriate investment for you five years ago may not be the same today.

Surround yourself with trusted advisors who are experts in their fields to help you achieve your goals.

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WEALTH.MANAGEMENT Mark Feldman

Luke M. Johnson

Recognized as a Barron’s top independent financial advisor, Feldman possesses extensive credentials in the wealth management industry with more than 25 years of experience. He is a Certified Public Accountant and is a Certified Financial Planner™ professional.

Johnson specializes in portfolio management, retirement income planning, tax strategies and alternative investments. His honest and strategic advice has allowed his clients to successfully navigate the ever-changing financial markets of the last 13 years. Johnson provides tax-efficient investment opportunities designed specifically to meet the needs of each client. He is securities licensed, holding his Series 7 and Series 66 as well as his life and health insurance licenses.

CEO and managing partner Miller/Russell & Associates miller-russell.com

Biggest mistake he sees clients make: Most things that are difficult to achieve require hard work and a thoughtful strategy. Simple examples include managing our nutrition, excelling in the workplace or designing a spare room in our home. In most cases performing a challenging activity well is a product of a well-designed plan. Investing requires the same careful planning. Understanding what we are trying to achieve and building a well constructed, integrated plan substantially increases the chances of achieving success.

Best advice he can offer: If it sounds too good to be true, it probably is. Be careful of the investment that is “too good to pass up”…no matter who you know that may be investing in it. There is, however, one idea that is too good to pass up on and so brilliant that it captured a Nobel Prize. And it’s free.

It is called diversification. Combining investments that behave differently produces better results for a portfolio.

Investors of all sizes can easily benefit from this concept. Few do.

President and founder Legend Capital Group, Inc. legendcapitalgroup.com

Biggest mistake he sees clients make: Proper Asset Allocation is most important. We see many investors focusing far too much on Security Selection and Market Timing. These two factors only account for roughly 7 percent of a portfolio’s performance.

Asset Allocation is responsible for around 91 percent of your portfolio’s success. Own multiple asset classes based on YOUR investment objectives.

Best advice she can offer: Keep it reasonably simple and live by the following words: * Transparency – understanding clearly what you are invested in. * Diversification – proper asset allocation is key in building and preserving wealth. You don’t want all of investments behaving the same way. * Independence – Make sure your advisor is objective and aligned with your best interests.

Magaly Masci

Senior vice president and financial advisor Morgan Stanley Scottsdale morganstanley.com Coming from a long line of successful businesswomen and entrepreneurs, Masci believes part of her success lies in having leveraged matriarchal wisdom to provide her clients with a unique outlook on lifestyle development and wealth management. The native of France lives the mantra that one must do good whilst doing well.

Biggest mistake She sees clients make: Easily, poor or non-existent estate planning. Clients often fail to draft an estate plan in alignment with their goals, morals and values.

Best advice she can offer: Change your relationship with your money, and treat it with respect — you’ve earned it, after all. Remember that education leads to confidence, and confidence leads to success. Focusing on educating clients about their financial and estate planning options is an integral part of my practice. In order for clients to achieve financial security, they need to be educated about all of their options. t is in your best interest to receive as much education as possible about wealth planning, investments and successorship by working closely with a knowledgeable, caring and compassionate advisor. Clients do not need more financial information, they need financial wisdom, and wisdom only comes with education and experience.

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WEALTH.MANAGEMENT Ann McCartney

Curtis L. Smith

Scott Sollars

McCartney joined Enterprise Bank & Trust in 2011, bringing more than 25 years of financial services experience to the team. Her prior experience includes senior level positions with Keystone Commercial Capital, First National Bank of Arizona and Keystone Mortgage Partners. McCartney earned her M.B.A. from Thunderbird School of Global Management after securing her B.S. from Arizona State University.

Smith began his financial services career in 2002 with a focus of assisting professionals and corporate clients develop sophisticated strategies to accumulate, preserve and transfer wealth. Prior to joining Raymond James, Smith was a member of Wells Fargo’s Wealth Management Group and Morgan Stanley’s Private Client Group, where he had been recognized as a top financial advisor. Over the years, he has been featured in various local and national publications for his insight into the wealth management industry.

Sollars has more than 15 years of experience in investment management and consulting, as well as wealth management. He holds the Certified Financial Planner (CFP) certification and the Accredited Investment Fiduciary (AIF) designation.

Senior vice president, private banking Enterprise Bank & Trust enterprisebank.com

Biggest mistake She sees clients make: I have seen many customers who were invested too heavily in real estate burdened by cash flow problems and other worries. Clients who get comfortable with investment property sometimes forget to set and maintain a healthy limit on real estate relative to their broader portfolio, especially when you include personal and secondary residences.

Best advice She ever received: Avoid putting too many eggs in one basket.

In other words, don’t invest too much in a particular company, fund or asset, especially when there is an emotional connection. Diversification among and within asset classes helps reduce risk and improve performance.

Best advice he can offer: Seek the help of experts you trust and feel comfortable working with.

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Wealth advisor Raymond James wealthmanagementaz.com

Best advice he ever received: To always take a holistic approach toward helping people with all areas of their financial plan, not just one or two areas — for example investments and insurance.

To be transparent with everyone and always inform them of the pros AND cons of each investment and/or strategy.

Best advice he can offer: One of the most important things is to have a coordinated team approach with specialists in the areas of risk management, investment management, estate and tax planning, lending, banking and cash management, business advisory services, and investment banking.

Vice president and financial consultant Charles Schwab & Co., Inc. schwab.com

Biggest mistake he sees clients make: I primarily work with clients who are executives or entrepreneurs and are highly driven and willing to take risk in their lives. But when it comes to investing, it is important to consider personal risk tolerance (how much risk you are comfortable taking) and how much risk you should be taking relative to your goals and time horizon. If you want to retire in 2-3 years, for example, you might want to dial down the risks you’re taking in a portfolio. A person should only take the road to wealth one time.

Best advice he can offer: Everyone’s situation is unique, but the best advice is to first create a detailed financial plan and measure progress toward your goals.

Once you’ve done that, it’s important to measure progress relative to long-term goals and resist the urge to let emotions take over as a result of short term events. And for people who choose to work with a professional, it’s important to work with someone who takes the time to understand your personal situation and is willing to involve you in the decision-making process.

Steve Taddie

Dale A. Walters

Taddie is a respected economist contributing to the National Association for Business Economics (NABE) Outlook, the NABE Financial Industry Roundtable and the Western Blue Chip Economic Forecast. He is past president of the Arizona Economic Round Table, vice president of the Central Arizona Estate Planning Conference, and a member of the CFA Institute.

Walters has been serving clients for more than 30 years and has twice been named one of the top financial advisors in the U.S. by Mutual Fund Magazine.

Walters has led KeatsConnelly to numerous awards, including being named one of Arizona’s Most Admired Companies, Phoenix Chamber’s Impact Award for Company Culture, the Alfred P. Sloan award for Workplace Flexibility and the Better Business Bureau award for Ethics. He is a frequent speaker on U.S.-Canada financial planning and tax related issues, and is the author of “Buying Real Estate in the U.S. – The Concise Guide for Canadians,” and co-author of “Taxation of Canadians in America: Are You at Risk?”

Managing partner Stellar Capital Management stellarmgt.co

Biggest mistake he sees clients make: Not understanding the difference between preserving purchasing power and preserving principal. Over the course of a few years this is a tough distinction, but over a few decades it makes the difference between retiring and living well, or not. A preservation of purchasing power strategy helps insulate portfolios from the effects of inflation.

Best advice he can offer: Understand your emotional risk tolerance. It often takes a nasty market like 2008 to drive that point home, and if you wait till then, the markets will have managed you instead of you managing the markets. Because emotions are so powerful in times of crisis, understanding both financial and emotional risk tolerance is important.

CEO KeatsConnelly keatsconnelly.com

Biggest mistake he sees clients make: There are two mistakes that are opposite sides of the same coin; taking too much risk and taking too little risk.

Portfolios are not diversified enough — too few holdings and little or no diversification between large and small companies, growth and value, and U.S. and international — or they are all in cash or cash equivalents.

Best advice he can offer: Spend less and save more. In addition to saving a larger percentage of your earnings, starting to save earlier and working later is also a very good way to save more.

April Ward

Regional director, wealth advisor Stoker Ostler, a part of BMO Financial Group stokerostler.com Ward has been a professional in the financial services industry for more than 25 years. She joined Stoker Ostler Wealth Advisors in 2004. In her current role, Ward is accountable to grow the firm responsibly. Ward’s milestones at Stoker Ostler include pioneering the firm’s Women and Wealth Initiative and becoming its first female partner.

Biggest mistake She sees clients make: Allowing emotions to drive short-term decision making without spending the time necessary to understand how those decisions fit into your longerterm financial goals and objectives.

Best advice She ever received: Arm yourself with knowledge. For women, this especially rings true. Women intuitively know life events can unfold and impact our wants, needs and wishes. By finding a way to stay informed and educated on financiallyrelated topics, we will increase our likelihood of success the next time faced with a financial decision.

Best advice She can offer: Prior to retiring, pay-off your mortgage and build up after-tax accounts. These two steps, along with having the discipline to reduce discretionary spending during bad market years, will increase your opportunity for success throughout your retirement.

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WEALTH.MANAGEMENT: EMERGING LEADERS John Arnold, 37

Co-founder and CEO Southwest Wealth Strategies southwestwealthstrategies.com Arnold focuses on providing innovative and practical financial programs for clients, including fee-based asset management and retirement income distribution strategies.

He is passionate about fundraising for the Military Assistance Mission, which provides financial and morale aid to current Arizona active-duty military, their families and wounded warriors, regardless of overseas deployment status.

Clayton Janson, 37

Founder and CEO Phocus Financial Strategies Group phocusfinancial.com Dillan Micus: Under his leadership since 2006, AXA Advisors Southwest has grown from approximately $5 million to more than $18 million a year and averaged a 30 percent increase in staff each year – even during the recession.

Shifting the financial focus Many fail to plan how retirement funds will be distributed, Micus says

A

z Business: What challenges do you you see your generation facing in regard to wealth management?

Dillan Micus: In regard to helping people my age with their actual wealth management challenges, I empower my team to use our Retirement Income Distribution Strategy (RIDS).

Often, people spend all of their time focusing on pre-retirement accumulation, but fail to plan how those assets will be distributed during retirement, based on the things they want to actually do and places they actually want to go. This way of planning also neglects to address the most common risk factors that threaten one’s seemingly perfectly planned retirement years – longevity, inflation, taxes, interest rates, volatility and emotions.

Through RIDS, we help our clients organize their money

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into three buckets – a cash reserve bucket, lifestyle bucket and inflation fix bucket – thereby creating a greater level of certainty that they will be able to live the lifestyle they want to live in retirement.

Moving on to actual wealth managers in my generation, I see two clear challenges, both of which AXA seeks to turn into opportunities.

First, those in my generation are neither “starting out” in their wealth management careers, nor approaching retirement. More often than not, they are eager for autonomy. So, we give it to them via an uncommon approach to comprehensive planning I developed called “Firm of Firms,” which empowers our best people to launch their own firms with our back-end support. This, in turn, allows our clients to receive a very high level of support and resources through

Dillan Micus, 37 Executive vice president AXA Advisors Southwest axaadvisorssouthwest.com

one specific firm while getting the experience of other firms within the family of offices to focus on each integral part of financial management.

Second, those in my generation grew up very close to the “Me Generation,” but it is critical that those in my industry focus on being a “We” generation, meaning community engagement and servant leadership. I model this as a long-time member of the Boys & Girls Clubs of Greater Scottsdale board as well as my work as a Thunderbird. Our office also sets aside one day each year to volunteer together, even going so far as to put on our own charity event as a team.

Janson heads a multi-disciplinary team focused on providing financial, investment, insurance and estate planning strategies throughout Arizona. Last fall, he expanded into New Mexico. Janson also serves as chair of Weekend Jetaway, a culinary event set in a private jet hangar that raises funds for the Boys & Girls Clubs of Greater Scottsdale and the Pat Tillman Foundation.

Jameson Van Houten, 38

President and founder Stonegate Financial Group, LLC stonegatefg.com Van Houten founded one of the top boutique wealth management firms in Arizona.

He specializes in wealth management services to institutions, businesses and high net worth individuals.

Headquartered in Scottsdale, Stonegate manages more than $210 million for 190 clients throughout the U.S. He was awarded Most Outstanding Graduating Senior at ASU’s W.P. Carey School of Business.

WELL DONE, CJ. EXPECT TWICE AS MANY PATS ON THE BACK. First, a headline-grabbing merger that created the new LaneTerralever. And now, Chris Johnson has been named a next generation business leader by Arizona Business Magazine.

Congratulations, CJ. We canâ&#x20AC;&#x2122;t wait to see what you do next year.

(602) 258 5263 LaneTerralever.com

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CREDIT UNIONS Will they or won’t they?

Congressional tax on credit unions could put some Arizona businesses at risk

By MICHAEL GOSSIE

T

hings appear to be going well for credit unions.

The National Credit Union Administration reports that credit unions continued positive trends in most metrics during 2013, including loans, membership growth and net worth.

“Federally insured credit unions are on the right course,” says NCUA Board Chairman Debbie Matz. “Credit unions are serving their members and investing in their communities by making the loans needed to purchase homes, buy cars and go to college.”

But it’s not all good news. Despite the fact that credit unions are not-for-profit, other financial institutions and some members of Congress want to raise taxes and impose new fees on 96 million credit union members, representing 40 percent of all Americans. If passed, the tax on credit unions could drastically impact groups like seniors on fixed incomes, single working mothers and small business owners who all rely on credit unions for financial services at lower costs.

“Since the beginning of 2013, Congress has been considering comprehensive tax reform that includes all areas of the tax code,” says Austin De

Austin De Bey

Emma Garcia

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Bey, vice president of legislative affairs for the Mountain West Credit Union Association, which represents 132 credit unions and 3.1 million credit union members, including those in Arizona.

“Since credit unions are not-for-profit, they are exempt from federal income tax, althought they still pay other taxes such as property taxes, payroll taxes, etc.

With these discussions underway and likely to continue into 2014, all areas of the tax code are under consideration, including tax-exempt organizations such as credit unions.”

Experts in the industry say the tax on credit unions, if passed, will imperil the credit union movement that is helping those who have been traditionally underserved by banks.

“Credit Unions have a different business model,” says Emma Garcia, assistant vice president of marketing and community development at Desert Schools Federal Credit Union. “Credit Unions pass on tax savings to memberowners in the form of lower fees on services and better rates on loans. The Credit Union National Association estimates that consumers experience an $8 billion annual savings because of credit unions’ tax-exempt status. Credit unions help diversify the market, provide lower cost financial services, and give consumers an important and safe alternative.”

To combat the Debbie Matz

potential blow to the industry, the Credit Union National Association (CUNA), a trade group that represents credit unions, launched a new campaign to protect its members’ federal tax-exempt status.

The campaign, “Don’t Tax My Credit Union,” is intended to raise awareness among the communities that credit unions serve including local businesses, consumers and members who belong to credit unions about the importance of preserving the federal tax exemption that credit unions depend on as not-for-profit, member-owned cooperatives.

“Credit unions are engaging in this grassroots effort by engaging their membership,” De Bey says. “They are educating their membership through member communications — on websites, in newsletters and in branches.

In addition to education, they are asking their members to contact their representatives in Congress so they know the importance of the issue. Also, leadership in the credit unions have been meeting with Congressional members in the district as well as in Washington, D.C., to let them know the importance of the credit unions and their not-for-profit tax status.”

Take ACTION “Don’t Tax My Credit Union” gives those who depend on credit unions a way to reach out to legislators through an online letter. It can be submitted via the following link: donttaxmycreditunion.org/take-action/

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Lots of advisors suit up, show up and keep up.

But how many know when to speak up?

Team McGladrey Golfer Zach Johnson and his caddie, Damon Green.

Power comes from being understood.® A strong strategic partner should know you and your organization well enough to know when to step up with insights, suggestions and fresh ideas. And when you trust the advice you’re getting, you know your next move is the right move.

This is the power of being understood. This is McGladrey.

Experience the power. Go to www.mcgladrey.com.

For more information, contact Bryan Zall, Office Managing Partner – Phoenix at bryan.zall@mcgladrey.com or call 602-636-6032.

McGladrey LLP is the U.S. member firm of RSM International, a global network of independent accounting, tax and consulting firms. MCG-1213TB

CO M M E RC I A L R EA L E STATE ■ TE C H N O LOGY ■ M A N U FACTU R I N G ■ E NTE RTA I N M E NT ■ E D U CATI O N Az 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 — commercial real estate, technology, manufacturing, entertainment and education. 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 6 at The Ritz-Carlton, Phoenix.

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Cresa is proud to sponsor the Industry Leaders of Arizona and congratulates the 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, Corporate Solutions, Portfolio Strategies, Location Planning, Lease Administration, Capital Markets, Mission Critical Solutions, and Facilities Services. With more than 58 offices, Cresa is the leading 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 173 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 , www.cresa.com 58 AB | January-February 2014

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INDUSTRY LEADERS of Arizona

Arizona Diamondbacks

Arizona Summit Law School

Caliente Construction Inc

401 E. Jefferson St., Phoenix

One N. Central Ave., Phoenix

242 S. El Dorado Circle, Mesa

Leadership || Derrick Hall, CEO; Tom Harris, CFO

Leadership || Scott Thompson, president; Shirley Mays, dean

Leadership || Lorraine Bergman, CEO; Dr. Edward Hancock, CFO

Website || dbacks.com What they do || The Diamondbacks strive to provide industry-leading entertainment in a family-friendly environment while making a positive impact on its fans and civic partners.

How they lead || The team offers the lowest Fan Cost Index in Major League Baseball. In the community, the Arizona Diamondbacks Foundation and the D-backs’ organization have surpassed the $33 million mark in charitable giving since their inception in 1998. The unique corporate culture of the D-backs led Yahoo! to deem the club as “the best workplace in sports.”

Website || azsummitlaw.edu What they do || The American Bar Association (ABA) accredited law school offers traditional and non-traditional law students the opportunity to succeed through its student-focused curriculum and highly engaged faculty.

How they lead || The practice-ready curriculum equips graduates with the practical skills and ethical instruction, leadership, management and interpersonal skills necessary for career success. The school accommodates students’ diverse needs with options including full-time and part-time day and evening classes; trimester schedule for graduation in two years; and individualized bar-pass instruction through learning diagnostics and mentoring; and experiential learning opportunities via externships, internships and clinics.

Website || calienteconstruction.com What they do || Caliente, founded in Arizona in 1991, is a female-owned commercial general contractor that provides construction management services tailored to meet the distinctive needs of its diverse clientele.

How they lead || By embracing the latest technology, Caliente is known as the contractor who can meet the challenge of any type of construction project. This has strengthened its industry position and given Caliente a competitive edge. Caliente has also shown continued growth. In 2006, revenues were $23,500,000 with 30 employees. Today, revenues exceed $57,000,000 and Caliente employs 81.

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INDUSTRY LEADERS of Arizona

Casino Del Sol Resort, Spa & Conference Center 5655 W. Valencia Rd., Tucson

Entrepix, Inc.

FlipChip International

4717 E. Hilton Ave., #200, Phoenix

3701 E. University Dr., Phoenix

Leadership || Jim Burns, CEO

Leadership || Tim Tobin, CEO; David Husband, CFO

Leadership || David Wilkie, CEO; Gordon Parnell, CFO

Website || entrepix.com What they do || Entrepix remanufactures semiconductor fabrication equipment and develops products and services to significantly extend the lifespan of semiconductor manufacturing technology.

How they lead || Entrepix’ is defining a new class of supplier to the semiconductor industry — a “technology renewal partner” — and has become the third-party leader in this space. It launched the first ever foundry process center supporting re-manufactured equipment.

The company was spotlighted for this on the cover of the industry’s largest publication, Semiconductor International, whose cover is normally occupied by gamechanging innovations from companies such as Intel and Applied Materials.

Website || flipchip.com What they do || FlipChip International is a leading supplier of wafer level packaging technologies to a diverse global customer base in the semiconductor industry.

How they lead || FlipChip was founded in 1996 by industry leaders in automotive technology and semiconductor integrated circuit assembly. Their strategy was primarily developing and licensing the technology. After new owners took over in 2004, manufacturing was expanded and new technologies were introduced. Today, FlipChip’s technologies can be found in a wide range of products in consumer, medical, industrial and automotive applications.

Website || casinodelsol.com What they do || Casino Del Sol Resort encompasses a spa, conference center, five award-winning restaurants, Sewailo Golf Course, Anselmo Valencia Tori Ampitheater, a 5,000-seat openair concert venue and the Del Sol Marketplace, which includes a gas station, car wash, convenience store and smoke shop.

How they lead || In less than two years since opening its $100 million expansion, Casino Del Sol has earned a AAA Four Diamond designation and is the state’s only casino resort to earn the coveted Forbes Four-Star Award for its hotel and spa.

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INDUSTRY LEADERS of Arizona

FNF Construction, Inc.

GlobalTranz

Grand Canyon University

115 S. 48th St., Tempe

5415 E. High St., #460, Phoenix

3300 W. Camelback Rd., Phoenix

Leadership || Jed S. Billings, CEO; David James, CFO

Leadership || Andrew Leto, CEO; Greg Roeper, CFO

Leadership || Brian Mueller, president and CEO; Dan Bachus, CFO

Website || fnfinc.com What they do || FNF provides heavy-highway construction and general engineering work as a general contractor, subcontractor and manufacturer/producer of aggregate and asphalt rubber binder.

How they lead || FNF’s ability to self-perform much of the work on its contracts allows the company to better manage and support its subcontractors and keep projects on schedule. FNF supports its personnel with state-of-the-art equipment and in-house technical support which keep its workers safe and guides and educates employees on FNF’s innovative construction methods.

Website || globaltranz.com What they do || GlobalTranz is a privately held, Phoenix-based logistics company specializing in freight management services, including lessthan-truckload shipping, full truckload, supply chain management and domestic air/expedited shipping.

How they lead || By focusing on innovative technology, GlobalTranz optimizes the flow and storage of merchandise as the goods move within and throughout the customers’ supply chain. GlobalTranz has been recongnized as one of the fastest-growing companies in the country with annual sales of over $200 million. Globaltranz has doubled its revenue every year since its inception in 2003.

Website || gcu.edu What they do || GCU is a private Christian university that has graduated some of the Southwest’s best-prepared teachers, nurses and fine arts professionals.

How they lead || What was once a small, struggling university has come into its own as a world-class liberal arts institution. When escalating tuition made higher education nearly impossible for some students, GCU built a financial model that made earning a degree attainable and affordable. The model does not rely on taxpayer subsidies, yet keeps costs about two-thirds less than most private universities and lower than many public schools.

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INDUSTRY LEADERS of Arizona

Great Hearts Academies

IDentity Theft 911

3102 N. 56th St., #300, Phoenix

7580 N. Dobson Rd., Scottsdale

4900 N. Scottsdale Rd., #4000, Scottsdale

Leadership || Daniel Scoggin, CEO; Ward Huseth, CFO

Leadership || Matt Cullina, CEO; Sean Daly, CFO

Leadership || Hart Cunningham, CEO; David Tomizuka, CFO

Website || greatheartsaz.org What they do || Great Hearts Academies is a non-profit network of public charter schools dedicated to improving education in the Phoenix metropolitan area by developing a network of excelling preparatory academies.

How they lead || Great Hearts Academies has a 95 percent college placement rate, including many prestigious colleges and universities around the country. Students have an average SAT score of 1836 and ACT score of 27.4, which is 20 percent above the national average and higher than many private schools.

Website || idt911.com What they do || IDentity Theft 911 is a provider of identity management solutions, identity theft recovery services, breach services and data risk management solutions. The company works with insurance carriers to provide identity theft services to individual personal lines policyholders and crisis data-breach services for commercial insurance policyholders.

How they lead || Founded in 2003, IDentity Theft 911 is a premier consultative provider of identity and data risk management, resolution and education services. The company serves 17.5 million households across the country and provides fraud solutions for a range of organizations.

Website || integrate.com What they do || Integrate is the first closed-loop marketing technology platformâ&#x20AC;&#x201D;combining ad-serving tech and analytics, a paid media marketplace and full suite of marketing services.

How they lead || Integrate is the first closed-loop marketing technology provider to empower marketers and media buyers to plan, launch, analyze and optimize campaigns across performance, programmatic and traditional media. The Integrate AdHQ platform offers an endto-end solution that supports the entire lifecycle of paid media campaigns in one intuitive dashboard.

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Integrate

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INDUSTRY LEADERS of Arizona

Ipro Tech, Inc.

Jokake Construction Services, Inc.

Laser Options, LLC

6811 E. Mayo Blvd., #350, Phoenix

5013 E. Washington St., #100, Phoenix

3758 E. Grove St., Phoenix

Leadership || Kim Taylor, president and COO; Bret Lawson, CFO

Leadership || Casey Cartier, CEO; Dave Miller, CFO

Leadership || Jeffrey Masters, CEO

Website || iprotech.com What they do || Founded in 1989, Ipro is a global leader in the development of advanced software solutions used by legal professionals to streamline the electronic discovery process.

How they lead || Ipro pioneered the development of electronic discovery technology in 1989, when savings and loan scandals led to an abundance of paper documents needing immediate legal review. Ipro developed customized technology that greatly improved the process and speed in which litigation document collections could be produced and helped to establish the litigation technology industry as we know it today.

Website || jokake.com What they do || Jokake is a fullservice real estate solutions provider founded on delivering exceptional construction experiences through ground-up, renovation and tenant improvement construction for public and private clients.

How they lead || In June, Jokake launched its 30th anniversary celebration with a commitment to complete 30 community service projects in 12 months — one project for each year in business.

Since the initial announcement, Jokake’s employees have advocated for great causes, most of which are with nonprofits that they have been personally invested in for many years.

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Website || laseroptions.com What they do || Laser Options sells new and refurbished multi-function printers/copiers, provides managed print services to its clients and is a leading re-manufacturer of laser print cartridges.

How they lead || Since starting in 1993 as a re-manufacturer of laser printer cartridges and HP printer service, Laser Options has transformed itself into a fullservice business technology organization.

Since inception, Laser Options has put into place sustainability practices.

Whether it is its manufacturing and recycling process, the cars it uses or the vendors it partners with, customers know they are “going green.”

CONGRATULATIONS TO THE FINALISTS OF THE INDUSTRY LEADERS OF ARIZONA AWARDS. Your businesses continue to have a tremendous economic and philanthropic impact on our great state of Arizona. The Phoenix Suns are proud to be among this elite list of companies as we all work to “Ignite the Future” and establish a brighter tomorrow.

OM C .

S N U S

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INDUSTRY LEADERS of Arizona

MicroAge

Microchip Technology, Inc.

Mountainside Fitness

8160 S. Hardy Dr., Tempe

2355 W. Chandler Blvd., Chandler

1230 W. Washington St., #111, Tempe

Leadership || Jeff McKeever, CEO; Roger Rouse, CFO

Leadership || Steve Sanghi, CEO; Eric Bjornholt , CFO

Website || microage.com What they do || MicroAge is a leading provider of technology products and services. They serve customers from the data center to the desktop with computer products from industry-leading manufacturers.

How they lead || MicroAgeâ&#x20AC;&#x2122;s techsavvy account executives are experts at assisting clients with selecting information technology solutions that best meet their unique requirements. MicroAge possesses a vast sourcing capability which enables us to deliver on the most challenging of procurement requests. MicroAge continues to be a well-known name and a respected industry pioneer with a heritage of industry innovation spanning five decades.

Website || microchip.com What they do || Microchip Technology Inc. is a leading provider of microcontroller, mixed-signal, analog and Flash-IP solutions for thousands of diverse applications worldwide.

How they lead || Microchip is the semiconductor industryâ&#x20AC;&#x2122;s greatest Cinderella Story, having come a long way since its humble beginnings as a failing spinoff of General Instrument in 1989. Over that time, Microchip has had the most successful IPO of 1993, achieved the No. 1 ranking in 8-bit microcontrollers in 2002 and recorded its 91st consecutive quarter of profitability in June 2013.

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Leadership || Tom Hatten, president; William Malkovich, CEO; Tracy Taylor, CFO Website || mountainsidefitness.com What they do || Mountainside Fitness is the largest locally owned health club in Arizona, striving to help its members incorporate exercise into their lifestyle.

How they lead || With 10 locations, including the newest location inside Chase Field, the fitness centers provide more than 950 jobs. The company has experienced a 41 percent growth within the last three years, including employee growth of approximately 400.

The expansion placed Mountainside among the recipients of the 2012 Inc. Hire Power Awards as one of the Top 10 private business job creators in the state of Arizona.

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INDUSTRY LEADERS of Arizona

Phoenix Children’s Academy

Phoenix Suns

Rigid Industries LED Lighting

8767 E. Via de Ventura, #240, Scottsdale

201 E. Jefferson St., Phoenix

779 N. Colorado St., Gilbert

Leadership || Doug MacKay, CEO; Paul Malek, CFO

Leadership || Jason Rowley, president; Jim Pitman, CFO

Leadership || Jason Christiansen, CEO; Seth Anderson, CFO

Website || pcafamilyofschools.com What they do || Phoenix Children’s Academy operates a national network of 111 private schools, including preschools, elementary schools and middle schools in 15 states serving approximately 16,000 students.

How they lead || PCA is the sixth-largest company in its industry in the U.S. and the largest headquartered in Arizona. By developing centralized support functions to take the majority of the administrative burden away from its schools, PCA teachers and principals have more time to spend with children and parents. This has enabled PCA to tailor its educational services to the individual needs of each child.

Website || suns.com What they do || The Suns provide the finest in Arizona sports, entertainment and community leadership by striving to create sustained success on and off the court.

How they lead || Between offering a first-rate fan experience, giving back to Arizona children and families in need, and staying at the forefront of technology and innovation, the Suns have served as Arizona’s professional sports leader since our 1968 inception. Each year, Suns players and alumni make more than 1,000 community appearances and the Phoenix Suns Charities contributes more than $1 million annually to more than 125 local nonprofit organizations.

Website || rigidindustries.com What they do || Rigid Industries’ patented Hybrid and Specter optics and forward projecting LED lighting and quality products are designed, engineered and assembled in the United States.

How they lead || Rigid Industries recently ranked 150th on Inc. 500 magazines’ Fastest Growing Companies list for 2013. Additionally, Rigid leads the industry as the fastest-growing LED lighting manufacturer and the fifthfastest-growing in overall manufacturing in the U.S., proving to be one of the most innovative companies of 2013.

From 2009-2012, Rigid experienced an exponential growth rate of 2,528 percent.

72 AB | January-February 2014

Tech Respect for Our Community

UAT is honored to be a finalist for the Industry Leaders of Arizona Awards by AZ Business Magazine. We believe we are all made stronger

by Arizonaâ&#x20AC;&#x2122;s growing prominence on the world stage of advancing technology, and pledge to continue working with industry and government to craft a center of excellence where future technology leaders learn, experience, and develop innovations that create world change from within our community.

www.uat.edu

73 AB | January-February 2014

INDUSTRY LEADERS of Arizona

Scottsdale Golf Group

Speedie & Associates, Inc.

STORE Capital

6210 E. McKellips Rd., Mesa

3331 E. Wood St., Phoenix

8501 E Princess Dr, Scottsdale

Leadership || Marc Boggia, managing partner

Leadership || Gregg A. Creaser, CEO; Brett P. Creaser, CFO

Leadership || Morton H. Fleischer, chairman; Christopher H. Volk, president and CEO; Catherine Long, CFO

Website | |scottsdalegolfgroup.com What they do || Scottsdale Golf Group consistently delivers the ultimate in branded golf experiences for corporate clients and discerning golf customers — experiences that are on par with those enjoyed by professional golfers.

How they lead || Scottsdale Golf Group’s state-of-the-art teaching facilities utilize the finest computerized swing analysis equipment. Under the guidance of golf industry expert Shelby Futch, Scottsdale Golf Group has grown from the undisputed leader in golf instruction to become a master of club operations, management, and consumer marketing services.

Website || speedie.net What they do || Speedie & Associates is a consulting engineering firm that specializes in geotechnical, environmental and construction materials testing and special structural inspection services.

How they lead || From its inception 33 years ago, Speedie & Associates has embraced and maintained a philosophy of providing a superior level of customer service to every one of its clients. The firm believes that listening to its clients, hearing the essence of what they’re saying, and fully understanding their expectations are the most important first steps in providing a superior service experience.

74 AB | January-February 2014

Website || storecapital.com What they do || STORE Capital (the name stands for Single Tenant Operational Real Estate) is a leading provider of real estate lease capital for real estate intensive middle-market companies.

How they lead || STORE acquires customers’ commercial real estate they use to generate their profits and lease it back to them in a sale/leaseback transaction. A real estate lease is not just a debt financing substitute for customers, but it’s both a debt and equity substitute, while also offering reduced monthly payments.

This makes them less bank-dependent and more entrepreneurial, creating more efficient capitalization.

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See the difference Arizona Summit Law School can make by visiting AZSummitLaw.edu.

For more details about our school’s on-time graduation rates, job placement rates, the median debt of students who completed the program, student tuition and other costs, and other important information, please visit our website at AZSummitLaw.edu.

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INDUSTRY LEADERS of Arizona

Sun Orchard™ Juicery

Synergis Education, Inc.

University of Advancing Technology

1198 W. Fairmont Dr., Tempe

1820 E Ray Rd., Chandler

2625 W. Baseline Rd., Tempe

Leadership || Marc Isaacs, CEO; Jeff Anthony, CFO

Leadership || Norm Allgood, CEO; Scott Wenhold, CFO

Leadership || Jason Pistillo, CEO; Erika Garney, CFO

Website || SunOrchard.com What they do || Sun Orchard™ is a national craft juice company offering an unmatched selection of exceptional juice products to food service businesses of all shapes and sizes.

How they lead || Sun Orchard built its business on freshness, taste, quality, people and being one step ahead. Sun Orchard’s family of experts’ tree-to-table mastery allows it to quickly turn emerging trends into cutting-edge juice products, giving its customers a quick-to-menu advantage and back-of-house efficiencies.

Sun Orchard continues to work closely with its customers to help grow their businesses.

Website || synergiseducation.com What they do || Synergis Education is a premium, full-service provider of educational services designed for college and university leaders who are not satisfied with the status quo.

How they lead || Synergis Education assists its partner institutions in gaining regional prominence, enrollment growth and overall sustainability through continual improvement and best practices.

Synergis is unique among education services providers in that it is positioned to work with the entire adult higher education market, remaining agnostic as to the delivery methods (online, faceto-face, blended, etc.).

Website || uat.edu What they do || University of Advancing Technology (UAT) is the technophile’s college experience — a community uniquely suited to provide students passionate about technology an ideal place to live and grow.

How they lead || UAT students graduate to become technological mavens, cyber warriors, elite game designers and advanced computer scientists. The university’s commitment extends far beyond its student body. UAT hosts a myriad of on-campus events, including the annual Avnet Tech Games, The Leonardo da Vinci Society for the Study of Thinking and many other various user groups.

76 AB | January-February 2014

S p e e di e & A s s o c i a t e s i s p r o u d t o be s e l e c t e d a f i n a l i s t f o r t h e I L o A A w a r ds

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77 AB | January-February 2014

INDUSTRY LEADERS of Arizona

WebPT

Wespac Construction, Inc.

Wilson Electric Services Corp.

605 E. Grant St., #200, Phoenix

9440 N. 26th St., #100, Phoenix

600 E. Gilbert Dr., Tempe

Leadership || Brad Jannenga, CEO; Jacob Findlay, CFO

Leadership || John Largay, CEO; Don Mann, CFO

Leadership || Wes McClure, president; Todd Klimas, COO; Terry Oakes, CFO

Website || webpt.com What they do || WebPT is the leading web-based electronic medical record (EMR) and practice management solution for physical therapists, occupational therapists and speechlanguage pathologists.

How they lead || By creating an affordable, intuitive and technologically sound cloud-based electronic EMR solution for rehabilitation therapists — practitioners excluded from the government’s meaningful use incentive under the HITECH Act — WebPT brought all the benefits of EMR to small, private therapy practices that would have otherwise fallen behind. WebPT has helped more than 24,000 therapists adopt EMR since 2008.

Website || wespacaz.com What they do | Wespac is a commercial general contracting and construction management firm, offering a range of pre-construction and construction services in a variety of market sectors.

How they lead || Wespac has developed a specific system of project management tools to successfully complete the job. This comprehensive process is Wespac’s Systematic Building Approach™ (SBA™). The SBA™ is Wespac’s process to ensure constant communication, dedication, coordination and planning. Utilizing the SBA™, the team is able to ensure timely procurement of materials and equipment, keeping the build-out on track.

Website || wilsonelectric.net What they do | Wilson Electric is the Southwest’s leading, single-source provider of total facility solutions, including commercial construction, solar and operations technology.

How they lead || Wilson Electric invests in each employee-owner’s success through a rigorous, in-depth corporate training program. The program begins with new hire orientation and continues throughout employment, blending inhouse resources with industry experts.

Topics range from effective project management and safety procedures to manufacturer certifications. Because of this, Wilson’s safety record is one of the best in the state.

78 AB | January-February 2014

Great leaders inspire us Wells Fargo congratulates Sun Orchard for being recognized as an Industry Leader of Arizona. We applaud your success, and proudly provide the financial services to help Sun Orchard thrive.

wellsfargo.com/com ©2013 Wells Fargo Bank, N.A. All rights reserved.

WCS-1166637

®

2014 finalist industry leaders of arizona Thank you arizona!

Proud to be a local gilbert employer!

#150 fastest growing private company in USA #5 Top 100 manufacturing Companies #4 top 100 Arizona Companies

visit us at 79 AB | January-February 2014

We are.

is proud to be a finalist for the

2014 Industry Leaders of Arizona Awards Weâ&#x20AC;&#x2122;d like to congratulate all the finalists being honored!

www.FNFINC.com 480.784.2910

80 AB | January-February 2014

1820 E. Ray Road Chandler, Arizona 85225 480.656.8307 www.synergiseducation.com

81 AB | January-February 2014

2014

Excellence in corpor ate counsel ACC Awards honor Arizonaâ&#x20AC;&#x2122;s most accomplished in-house attorneys

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, in Arizona and around the world.

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83 AB | January-February 2014

2014 FINALISTS

E

ffective corpor ate counsel has never been more important than it is in todayâ&#x20AC;&#x2122;s new economy. Az Business magazine is recognizing the important and vital role that in-house counsel plays in the success of a business with the Arizona Corpor ate Counsel Awards (ACC Awards). The 29 finalists and winners will be honored Thursday, January 16 during a ceremony and dinner at the Ritz Carlton Phoenix. Here are the finalists, in alphabetical order:

Melissa Buhrig

Carolann Bullock

Vice president and assistant general counsel

Human resources legal attorney

Western Refining wnr.com

Since 2005, Buhrig has served as a founding member of the Western Refining legal department. Her responsibilities include corporate governance, compliance and securities matters for the company. Prior to joining Western Refining, Buhrig was a shareholder in Barfield Law, a Miami, Floridabased boutique firm representing commercial insurers and business leaders in corporate and litigation matters. Before that, she was a founding member of the satellite litigation department in the Naples, Florida office of Robins, Kaplan, Miller & Cirsi, a national law firm.

Intel Corporation intel.com

Bullock joined Intel in Chandler as an HR legal attorney in 2010 following an extremely successful career in private practice. Bullock joined Ryley, Carlock & Applewhite in 1995 and was elected a shareholder in the firm just four years later.

When she departed for Intel and the new challenge of an in-house legal role, she was chair of the firmâ&#x20AC;&#x2122;s well-respected Labor & Employment Practice Group. While in private practice, Bullockâ&#x20AC;&#x2122;s practice was devoted to counseling and defending employers faced with claims of sexual harassment, disability, gender, age, race, wrongful discharge and employment-related tort and contract claims.

84 AB | January-February 2014

CONGRATULATIONS to the arizona corporate counsel of the year award winners The State Bar of Arizona and the In-House Counsel Committee are proud to be the Presenting Partner of the ACC Awards Program.

85 AB | January-February 2014

2014 FINALISTS

Lawrence Cuculic

Bob Desmond

Ruth Franklin

Vice president and general counsel

Chief intellectual property counsel

Corporate contracts counsel

Best Western International, Inc.

Honeywell International, Inc. - Aerospace

onsemi.com

bestwestern.com

honeywell.com

ON Semiconductor

Franklin leads an international Cuculic manages the legal

Desmond is the chief IP counsel

team of six members including both

department for Best Western, the

for Honeywell Aerospace, a $12

lawyers and contract professionals

largest hotel chain in the world, in a

billion business unit of Honeywell

who are charged with negotiating

manner that is efficient, effective and

International Inc. which has more

semiconductor manufacturing

respectful. Cuculic is also actively

than 7,000 employees in Arizona.

sales agreements with customers

involved in managing strategic

Honeywell Aerospace’s Vice President

throughout the world. These

direction, providing guidance on

of Engineering and Chief Technology

negotiations can span many months

corporate legal issues, board and

Officer, summarized Desmond’s

and typically involve describing

board committee matters and

contributions to Honeywell Aerospace

every aspect of the manufacturing

managing relationships with external

as follows: “Bob has developed a

and supply processes within ON

counsel. Since his arrival at Best

world-class intellectual property

Semiconductor. Franklin is fond

Western, Cuculic has been thrust into

process within Honeywell Aerospace.

of saying that this is a job she is

various complex litigation, including

He has not only refined and improved

passionate about because it uses all

IP and antitrust class action matters.

our intellectual property portfolio, but

the various areas of expertise that she

Through his guidance, Cuculic

also created a sustainable process for

has built up over her career: detailed

spearheaded legal victories for Best

refreshing its contents and ensuring

lawyering, strategic planning and

Western that resulted in a complete

the true business value of the IP is

tactical negotiations.

mitigation of damages.

being properly realized. He has set the standard for Honeywell and the broader aerospace industry.”

86 AB | January-February 2014

87 AB | January-February 2014

2014 FINALISTS

Go Daddy in-house legal department Go Daddy godaddy.com

Led by former Executive Vice President, General Counsel and Corporate Secretary Christine Jones and current General Counsel Nima Kelly (photo), the Go Daddy Legal Department has grown from a onewoman team to nearly 100 strong during the past 10 years, with 55 percent of the team being women.

The department encompasses legal, network abuse, domain services, compliance, privacy and government relations departments. With guiding mantras of “do the right thing” and “know your client” the legal department is intimately involved with its clients’ operational aspects.

The department drives public policy in the Internet realm and still finds time to vigorously promote intradepartmental interactions.

88 AB | January-February 2014

Jill Harrison

John T. Jozwick

In-house counsel

Senior vice president and general counsel

W.L. Gore & Associates Inc. gore.com

Harrison has served as one of the corporate counsel at Gore for nearly nine years. She leads the medical device manufacturer’s product liability litigation and counseling practice globally. For much of her tenure at Gore, Harrison also led strategic counseling and litigation in the area of non-competes and trade for Gore’s Medical Products Division and provided extensive employment law counseling and litigation management for sales associates in the division.

Harrison also assumed a significant leadership role in developing and implementing an innovative integration program for new legal team members to effectively facilitate their participation in the company’s global legal team.

Rider Levett Bucknall rlb.com

Rider Levett Bucknall hired Jozwick by contract in 2002 for a temporary assignment analyzing claims made by subcontractors in a major wastewater treatment plant project. As word spread with clients about his expertise in analyzing construction disputes, forensic claims and construction defects, Jozwick was offered a full-time role. Under his direction, the company’s claims department grew from one temporary contractor to five full-time employees.

Jozwick also played a major role in developing advisory services into a significantly profitable service. Today, the advisory service line offers clients risk analysis, claims analysis, dispute resolution, expert witness and dispute avoidance services.

89 AB | January-February 2014

2014 FINALISTS

Alan Kelly Senior vice president and general counsel

Scottsdale Lincoln Healthcare Network shc.org, jcl.org

Kelly has been an in-house lawyer at Scottsdale Lincoln Healthcare Network for the past nine years. By creating an efficient and modern legal department, Kelly has been able to provide advice to everyone from executives to operational employees. His continued innovation led him to improve the SLHN Risk Management Department so that it can effectively manage all of the complex risk that a $1 billion company is faced with. Kelly’s strong leadership is as highly valued as his skills as an innovator. Johnathan Wallach, one of Kelly’s employees, said, “Alan has been a true mentor who actively promotes initiative in all people who work for him.”

Margaret Koppen

David Koval

general counsel

Vice president and general counsel

CYRACOM INTERNATIONAL, INC. smsc.com

kitchell.com

Koppen was previously Standard

Koval went to Kitchell in 2004 as an

Microsystems’ main transactional

employee for one of the company’s

attorney. Kim Van Amburg, senior

subsidiaries, Kitchell Contractors.

vice president and general counsel

In this role, he brought credibility

at Casino Del Sol Resort, said that

to the company through refining

during her 10 years at the company,

legal processes, streamlining and

Koppen was able to hone a “specific

creating uniformity in subcontractor

expertise in negotiating terms of

relationships and evaluating the

sale agreements with her employer’s

company’s risk. His results earned

customers,” some of which are

the respect of everyone at Kitchell

the world’s largest semiconductor

and he was eventually tapped by

companies. Koppen was instrumental

CEO Jim Swanson to oversee all

in “increasing efficiency, production,

legal activities for the 60-year-

and accountability without increasing

old company. Kitchell’s interests

the size of the legal department.” Her

include real estate development,

contributions to the company helped

commercial construction, program

double the company’s revenue. She

and construction management and air

also teaches the University of Arizona

conditioning wholesale supplies.

College of Law’s first-ever contract drafting course, which she developed.

90 AB | January-February 2014

Kitchell

91 AB | January-February 2014

2014 FINALISTS

Erin Lewin

Kelly LoCascio

Michael Mason

Senior vice president

Chief compliance office and executive vice president

Senior counsel, labor and employment

Angel MedFlight

Pinnacle West Capital Corp.

angelmedflight.com

pinnaclewest.com

and general counsel

Avnet, Inc. avnet.com

Lewin leads Avnet’s 98-member global legal department and provides advice and guidance to the company’s business leaders. “Erin has demonstrated her ability to effectively guide a global team that deals with a complex, multinational legal environment while serving as a leader who fosters collaboration and employee engagement for her team,” said Avnet CEO Rick Hamada.

In 2013, Lewin’s team oversaw the legal aspects of 12 acquisitions with a combined deal value of $367 million and combined revenue value of $1.2 billion, as well as the divestiture of two subsidiaries.

92 AB | January-February 2014

LoCascio has been with Angel

Mason is a strategic partner helping

MedFlight, a worldwide air ambulance

his internal clients solve legal

company, since 2008. In 2008,

problems in a changing industry.

LoCascio was named one of the top

Mason transitioned two years ago

50 pro bono attorneys in Arizona and

as a shareholder at a large national

stays involved in the community by

firm, Greenberg Traurig, to a role with

volunteering for the American Cancer

Pinnacle West. Mason often works to

Society, FreshStart and HomeBase

build consensus with various teams

Youth Services. She is a member of

to reduce the threat of litigation. He

the American Bar Association, the

challenges external counsel to be

Association of Corporate Counsel,

creative but cognizant of the costs

and the Executive Women’s Golf

of litigation. Mason served as the

Association. In addition to practicing

young lawyer representative to the

law and volunteering, LoCascio was

State Bar Board of Governors for

crowned Ms. Arizona Woman in

several years and currently sits on the

2007. This competition is part of the

Executive Council for the Labor and

Arizona United States Pageants. She

Employment Section for the Arizona

also ecompetes in triathlons.

State Bar.

Join in on the fun

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For more information, visit www.arizona.wish.org/wishball This ad was generously donated by Stevens Leinweber Construction

2014 FINALISTS

L. Richards McMillan

David Mulvihill

Carmen L. Neurberger

Senior vice president and general counsel

Vice president and general counsel

Senior vice president and general counsel

Freeport McMoRan

Make-A-Wish Foundation of America

Phoenix Children’s Hospital

fcx.com

McMillan has been senior vice president and general counsel of Freeport-McMoRan Copper & Gold Inc. since October 31, 2007. McMillan served as senior corporate and securities law attorney of FCX since 1995. The Tulane University Law School graduate joined FCX after a 30-year career with the law firm of Jones, Walker, Waechter, Poitevent, Carrère & Denègre, L.L.P., where he served as partner. McMillan served as head of Jones Walker’s corporate and securities section and also served as a member and chairman of the Jones Walker’s Executive Committee.

wish.org

Mulvihill is general counsel of Make-A-Wish, a national nonprofit organization with 74 chapters that grant the wishes of children with life-threatening medical conditions.

A substantial portion of Mulvihill’s time is spent protecting the MakeA-Wish name and trademarks from infringement by soundalike organizations and others. In connection with these efforts, he has worked closely with various state charity officials, as well as with the U.S. Senate Finance Committee and the Federal Trade Commission. Prior to joining Make-A-Wish, Mulvihill was a partner in a firm in Pittsburgh, where his practice focused on commercial litigation.

94 AB | January-February 2014

phoenixchildrens.org

A hospital that is a part of the ever evolving health care environment “requires a knowledgeable, talented and dedicated general counsel,” said Debra Stevens, director of marketing and communications for Phoenix Children’s Hospital. Neurberger not only possesses the knowledge and talent Stevens speaks of, but she essentially developed the hospital’s entire legal department. During this process, Neurberger was able to create a program which allows the hospital to manage and control its own risk.

She is also credited with developing and implementing a code of ethics, and improving the relationship between the legal and human resources departments.

2014 FINALISTS

Daniel Oseran

John M. Pons

Deanna Pickering

Privacy Counsel

Executive vice president and general counsel

Lumension Security, Inc.

eBay eBay.com

Cole Real Estate Investments, Inc.

General counsel lumension.com

colereit.com

Oseran has worked in the information technology and legal fields for more than a decade, ensuring legal compliance, designing network infrastrcuture and managing large project teams. He also enforced information technology laws on behalf of the 5th largest District Attorney’s office in the country, and prosecuted the first state level case of Internet anti-piracy in the United States. Oseran advises business units on developing privacy-protective products, campaigns, websites and other programs. He also manages internal tools to report compliance and communicate policies. Before moving to eBay, Oseran led Paypal’s innovation and continuous improvement of the IT control framework, including the integration of multiple compliance requirements.

96 AB | January-February 2014

Pons has been instrumental in guiding the legal department at Cole in supporting the company’s overall mission in the acquisition, management and disposition of real property. The company has seen tremendous growth, listed on the NYSE and has lined itself up for a merger/acquisition that is poised to make it one of the 15 largest REITs in the United States. Pons’ demeanor and guidance has helped make Cole’s legal department high-functioning, highly collaborative and highly engaged.

Before attending law school, Pons was a captain in the United States Air Force where he served from 1988 until 1992.

As the sole in-house lawyer, Pickering manages legal issues across the globe and is often called upon to do the dayto-day legal work, such as customer contract review, that helps the organization save money on outside lawyers. But as the general counsel for a software company with operations in North America and Europe and a sales force throughout the world, Pickering has to help the organization move forward with strategic initiative and work with other executives to manage risk, solve legal issues, and support and direct outside lawyers in a competitive and rapidly changing business environment.

We Are Honored

Congratulations Are In Order Please join Honeywell Aerospace in celebrating Bob Desmond’s selection as a finalist for the Arizona Corporate Counsel Awards. We are truly honored. Honeywell Aerospace innovates and integrates thousands of products and services to advance safety, efficiency and comfort for user experiences worldwide.

Visit us online at aerospace.honeywell.com © 2014 Honeywell International Inc. All rights reserved

Congratulations to all the

ACC Award Finalists Delivering Solutions For Our Clients 2929 N Central Ave, 21st Fl, Phoenix, Arizona 85012 (602) 640-9000 • omlaw.com

2014 FINALISTS

Daniel J. Quigley

Darrell Sherman

James Silhasek

General counsel

Vice president, general counsel, secretary

Executive vice president and general counsel

Taylor Morrison

Discount Tire

taylormorrison.com

discounttire.com

Tohono O’odham Gaming Enterprise desertdiamondcasino.com

Quigley began his representation of

Sherman joined Taylor Morrison as

Silhasek manages the legal and real

the Tohono O’odham Nation with

vice president and general counsel

estate departments and is specifically

respect to its gaming operations

in June 2009 and helped the

involved in all real estate acquisitions,

in 1995. However, it was in 2003

homebuilder launch a successful

matters of taxation and complex

that the Tohono O’odham Gaming

IPO in 2013. He is responsible for

business litigation. Silhasek began

Enterprise created its own in-house

the company’s legal affairs including

his association with Discount Tire in

legal department and hired Quigley as

transactions, governance, litigation

1980, while in private practice, and

its first general counsel. Quigley has

and regulatory matters. Prior to

joined the company in 1988. During

faithfully represented the Nation’s

joining Taylor Morrison, Sherman

his association with Discount Tire,

gaming interests through a time

was general counsel at Centex for four

it has grown to become the world’s

when it has experienced exponential

years in the Southwest and Mountain

largest tire and wheel retailer with

growth. Among his more noteworthy

States Regions and associate

more than 870 locations in 28 states.

triumphs are the successful campaign

general counsel at Del Webb/Pulte

Silhasek received his Juris Doctor

for the 2002 Indian Gaming Initiative

for five years. Prior to joining the

from Creighton University Law School

(passed by Arizona voters in 2002)

homebuilding industry, he was a

and a Master’s of Law in taxation from

and subsequent Gaming Compact

finance and real estate attorney at

Georgetown University Law Center.

negotiations with the State of Arizona.

the law firm of Snell & Wilmer in its Phoenix office.

98 AB | January-February 2014

Congratulations

Carmen Neuberger

GENERAL COUNSEL, PHOENIX CHILDREN’S HOSPITAL

and all this year’s honorees

your eMPloyees’ FaMilies deserVe the Care.

Make sure PCH is in your insurance network.

phoenixchildrens.org

99 AB | January-February 2014

2014 FINALISTS

Sprouts Farmers Market, Inc.

Karen Stein

Matthew Stockslager

Legal department sprouts.com

General counsel

Vice president and associate general counsel

The natural and organic grocery chain hired its first in-house counsel, Brandon Lombardi, in January 2012 and he set about assembling an in-house legal department that could provide the needed legal services with the quality, acumen and responsiveness that he and his fast-paced client demanded.

Sprouts’ recent success, including the IPO which was shepherded from commencement to completion by Lombardi and his team, serves as a model for how to aggressively, yet responsibly, build a business. That success could not have been achieved without Sprouts’ legal department.

That this 10-person team did not exist two years ago makes their accomplishments even more impressive.

IO io.com

Dignity Health dignityhealth.org

Stein oversees all legal and risk management functions of the company. She holds a Juris Doctor, with honors, from Emory University, an MBA from Loyola University with a concentration in finance, and a Bachelor of Science degree in business from the University of Maryland, where she graduated magna cum laude. She has practiced law since 1994, focusing on business transactions, licensing and intellectual property. Before joining IO, Stein practiced at the Troutman Sanders law firm in Atlanta and served as the assistant general counsel for the PGA Tour for 10 years.

Stockslager is the senior legal leader for Dignity Health’s Arizona and Nevada service areas, which includes six hospitals — including the world-renowned Barrow Neurological Institute — and more than 40 affiliated outpatient sites.

As one of three regional legal leaders reporting to Dignity’s general counsel, Stockslager supervises a staff of 11 and is the lead attorney for joint venture transactions and relationships across the Dignity system. He has helped implement a restructuring of the Dignity legal department, its work flows, reporting relationships and client accountabilities to facilitate Dignity’s implementation of healthcare reforms and to accommodate its growth strategy to become a national healthcare provider.

100 AB | January-February 2014

Kelly K. LoCascio, Esq.

Chief Compliance Officer/Executive Vice President 2014 Arizona Corporate Counsel Awards Finalist Kelly LoCascio has been the Chief Compliance Officer, Executive Vice President and attorney for Angel MedFlight since 2008.

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She has practiced law in the areas of Employee Retirement Income Security Act (ERISA), labor and employment, commercial litigation, and tenant’s rights.

Kelly received her Bachelor of Arts degree from the University of Nebraska. LoCascio then went on to earn her Juris Doctorate (J.D.) from The John Marshall Law School in 2002.

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101 AB | January-February 2014

2014 FINALISTS

Randall S. Theisen

Michael Walker

Stuart Zigun

Executive vice president, general counsel, assistant secretary

Senior associate counsel, labor and employment/ litigation

Emerson Network Power

Western Alliance Bancorporation

Insight Enterprises, Inc

of Western Alliance Bancorporation and its three bank affiliates — Alliance Bank of Arizona, BankWest of Nevada and Torrey Pines Bank — since February 2006. Theisen joined WAL from Squire Sanders & Dempsey and has more than 20 years of legal experience representing financial institutions in banking, corporate and financial services law. He was named a “Leading Lawyer 2006” and “Best of the Bar 2005.” He serves on the Business Law Committee and Consumer Financial Services Committee for the American Bar Association. He is also a member of the Arizona Bankers Association.

Colleagues say Zigun is the kind of Walker is the sole litigator and labor

attorney every business wishes it had.

and employment lawyer for Insight

Zigun has an exceptional depth of

in the United States and Canada.

understanding of his clients’ business

Insight is a Fortune 500 company

and products and is intimately

that provides hardware, software

familiar with the company’s strategy

and related services to business and

and direction. In more than 30 years

government agencies. Walker is

as an in-house counsel, Zigun has

“stunningly successful” at preventing,

never had an agreement he worked on

resolving and promptly defending

be litigated. This is a testament to his

claims that go through litigation in

ability to successfully resolve disputes.

labor and employment, commercial

Zigun, who earned an undergraduate

matters and in actions brought by

degree in industrial engineering

government agencies according to

from Cornell and his law degree from

Mark Rogers, association general

Boston University, has represented

counsel for Insight. Walker has also

large public companies that include

been able to reduce spending on

Raytheon, Motorola and Emerson.

several categories of work. “Above all, (he) is a practical problem solver and has excellent business judgment,” Rogers said.

102 AB | January-February 2014

emerson.com

insight.com

alliancebankofarizona.com

Theisen has served as general counsel

Assistant general counsel

FINALIST 2014 ARIZONA CORPORATE COUNSEL AWARDS

Congratulations

John Pons

Executive Vice President and General Counsel, Real Estate, Cole Real Estate Investments, Inc.

From all of us at Cole, we thank you for your outstanding leadership and commitment to excellence.

www.ColeREIT.com

103 AB | January-February 2014

104 AB | January-February 2014

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Celebrating

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107 AB | January-February 2014

2014

108 AB | January-February 2014

Celebrating

25 YEARS

AS AN ECONOMIC ENGINE

An opportunity oasis GPEC helps Arizona land Apple, add high-income jobs and leave the ‘Digital Desert’ behind

By ERIC JAY TOLL

I

t’s a catchy moniker; an alliteration that swirls off the tongue. A pair of words backed by the muscle of Fortune magazine saying Arizona ranks fifth nationally in technology; an idea riding a boost from Forbes magazine ranking the state ninth in technology opportunities.

Dice.com went as far as to place Arizona first in tech jobs in 2013.

At last, Arizona has a new brand. This is the “Digital Desert.” Move over Silicon Valley! Arizona is the technological up-

and-comer. Or at least for a moment in time, it was the Digital Desert. Before the concept even molded into a brand, it was gone. As great as “Digital Desert” sounds, it was left in the dust because Arizona is a lot more than silicon, zeros and ones.

Opportunity oasis “You could call it the ‘Digital Desert.’ We were ‘Silicon Desert’ before Santa Clara was ‘Silicon Valley,’ but we lost that brand,” Barry Broome, CEO of the Greater Phoenix

Economic Council, is looking out the window into the past. “It’s really not what we are today. It is too limiting a concept for the Phoenix market.”

There’s a beam in Broome’s smile. He’s basking in that major coup for the Valley.

A 2012 rush-job effort to score a $300 million Apple backoffice last year paid a handsome dividend a year later. Instead of the service center that went to Austin, Texas, Apple is pumping $1.3 billion into a 700-job manufacturing facility for vendor 109 AB | January-February 2014

2014

GT Advanced Technologies. The win means direct creation of around 2,000 new jobs in the Valley.

In the relaxed moment, Broome has not stopped looking ahead to what’s next for GPEC. His organization’s push for business development is part of what turned the Valley of the Sun into the “Opportunity Oasis.”

“Arizona is top ranked in new business formations,” he says. “We have more entrepreneurs in the population than anywhere else. Look at the incubators, the (Arizona State University) programs and the number of businesses that have taken off in the past couple of years.”

The Phoenix metro has strengths across a wide variety of sectors. Economic development experts say the Valley’s future is in biomedical and personal medicine, emerging technologies and innovation, aerospace and aviation, manufacturing and distribution, extended business services and renewable energy.

is engineering and electronics,” Broome projects. “This is where innovation, expansion and exports are going to take place. Our strength in Phoenix must focus on building and attracting these businesses.”

Engineering is more than civil and mechanical engineers. It’s a profession that crosses every business sector in the Phoenix metro economy. Electronics is not just televisions and tablets. Medical devices, home energy management systems, privately launched satellites and medical devices all incorporate electronics in various forms. The future comes from those firms that will use the two to innovate and generate new companies and products to push out of the Valley into the global economy.

Broome is cautionary. “We have to have the capability and capacity to accommodate the next economy — homegrown or newly relocating — if we can’t provide facilities and talent, we’re not going to be chalking up these wins.”

Future is E2 + C2 “We need to be going after future business for the Valley. The next economy

All pieces have to fit “Apple didn’t happen just because we made a good pitch. There were a lot of

110 AB | January-February 2014

pieces that had to come together.” He turns serious and enumerates with his fingers, “If First Solar’s building wasn’t available, no Apple. If Mesa didn’t have the right infrastructure and zoning in place, if the county and cities couldn’t come to an agreement on the tax breaks, no Apple.

“If we didn’t have the $25 million Arizona Competes fund or ASU Polytechnic and the Fulton Engineering School in the area, there’s no Apple. If we didn’t have a world class international airport or if SRP couldn’t come up with renewable energy, there’s no Apple. All of those pieces had to be in place to score a multi-billion dollar investment like that.”

“Break them down,” he presses his hands emphatically against the table, “It’s simply that we had the capability to move quickly and deliver solutions. We had the capacity to deliver a workforce, incentives, bandwidth, green power and permits. As a result, we closed the Apple deal in under six weeks.”

“Can we do this again and again? The future here is all about capability and capacity,” he muses. “That and engineering and electronics. Everything that is going

111 AB | January-February 2014

2014

to make us globally competitive is centered on the two ‘Es’ and the two ‘Cs.” GPEC 2014 Initiatives The coming year is going to be busy for GPEC. It’s possible the first results from the California initiative may come to fruition. In November 2012, when California voters passed a business tax increase, Broome invited 100 CEOs to Arizona to explore the business climate.

This kind of a sales cycle is a longterm effort. “People think that when you are recruiting businesses, a planeload of executives pops into the market and heads for the links,” laughs Broome.

“There’s this image of a bunch of suits lounging at a resort, then meeting officials for dinner at the Phoenician for the pitch. That’s so wrong.”

“Companies are looking for talent, and there is a lot of analysis, research and data generation,” he says. “We’re talking with California companies, and they have a simple bottom line: ‘Are we going to be successful in Arizona? Can we profit there?’” The effort is a two- to three-year process; 2014 is the only the second year in the cycle.

GPEC is investing time in the Midwest with an effort to capture manufacturing opportunities. Visits to firms in the

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Chicago area intend to sell the market as a regional headquarters or Pacific Rim manufacturing center. The metro’s logistics and proximity to ports in Southern California and Mexico make it easy for a business to ship to Japan, China and Asia.

Velocity to beat the future Between now and the beginning of March, Velocity, the most important initiative in GPEC’s history becomes public. Velocity is the Greater Phoenix Metropolitan Business Plan (MBP), an implementation and deployment program

Apple in the Valley: GPEC’s efforts helped lure Apple to the former First Solar plant in Mesa. Apple plans to pump $1.3 billion into a 700-job Arizona manufacturing facility, which means the direct creation of around 2,000 new jobs in the Valley.

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113 AB | January-February 2014

2014 “GPEC is funded and run by its member governments and private sector businesses. It’s a successful collaboration built a quartercentury ago. There are few organizations functioning as we do.”

–Barry Broome enumerating the strategic steps necessary to compete in the next economy.

GPEC has the responsibility to lead its member organizations and Greater Phoenix’s economy into the next century.

If the plan gathers dust on the shelf, the organization will be on the sidelines watching the market decline. Broome believes higher education, mayors and business leaders have the momentum to implement change.

“We’re unique among economic development organizations in the U.S.,” he explains. “GPEC is funded and run by its member governments and private sector businesses. It’s a successful collaboration built a quarter-century ago. There are few organizations functioning as we do.”

GPEC’s sophisticated research team is lead contributor to Velocity’s development.

A limited number of U.S. metropolitan areas are eligible for the Brookings Institution-Rockefeller Foundation metropolitan business plan program.

Other contributors to the Valley MBP include the Stanford Research Institute, ASU’s Morrison Institute, and Maricopa

114 AB | January-February 2014

Association of Governments.

The name “Velocity” was picked for a reason by the steering committee of mayors and business leaders. The next economy is underway, and the Phoenix metro is uniquely positioned to take advantage of the opportunities.

When Broome speaks of the two Cs, capacity and capability, he distills Velocity to its very essence, “The steering committee sees this as the prime innovation initiative for the Valley. It defines strategies for innovation and technology, education, entrepreneurial growth, and increased exports.”

GPEC research tracked fundamental changes in Arizona’s economy going back before the organization was founded. Thirty years ago, Phoenix was a manufacturing, defense and technology market. Valley businesses produced and exported from the region. That changed in the 1980s as the economy shifted to consumption-based business and the export economy declined.

With that fundamental change in the economy, Arizona’s per capita income

slipped precipitously. From aboveaverage incomes into the 1970s, Arizona is now at 88 percent of the national per capita income. The danger of being a consumption-based economy came as a slap in the face during the recession. The state was among those suffering the worst declines in all business and income trends.

If implemented as proposed in its preliminary versions, Velocity will change Arizona back to an innovation and entrepreneurial economy exporting its work. GPEC sees its role as more than snaring new out-of-area businesses looking to expand.

“We are going to grow our local entrepreneurs,” says Broome. “There is great potential, and (GPEC) will take the lead to point out what needs to be accomplished to ensure we have the capacity and capability of being a region of successful businesses.”

Looking across its domain from the GPEC vantage point, it’s clear how Broome sees the Valley over the next 25 years. He sees not the heart of a digital desert, but vastness of the opportunity oasis.

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AB | January-February 2014

2014

116 AB | January-February 2014

Celebrating

25 YEARS

AS AN ECONOMIC ENGINE

Maintaining velocity GPEC celebrates 25 years of being the Valley’s catalyst for economic development

By ERIC JAY TOLL

“I

t was a time of balkanized states.

The Valley was reeling from the savings and loan debacle.” Ioanna Morfessis, CEO of IO Inc., is reminiscing about the other big Arizona recession hit 25 years ago. “Cities were fighting each other for every economic development opportunity. There was no sense of the regional good.”

They were dark days indeed. Arizona was seen as the villain in the savings and loan crisis. Individual cities had economic development efforts. There was a nominal regional group, the Phoenix Economic

Growth Commission, but it essentially represented the business community with little or no government participation.

Other regional committees and chambers of commerce permeated the area.

Collaboration was an unheard word “The concept of working together was not well understood in economic development terms,” she remembers. Morfessis ran PEGC. “We started with the crisis and realized we would be stronger working together. It was a time of shuttle diplomacy.”

She took the lead with her organization

and in 1988, the idea of a public-private economic development partnership was born. “We ran back and forth between cities, the county, business leaders and the various chambers proposing the idea of a regional economic development group,” she recalls. “It was a shotgun wedding and very painful for all in the beginning.”

The Greater Phoenix Economic Council brimmed with a hoped-for culture of collaboration. “The biggest problem GPEC faced was overcoming the past rivalries. It was every city for itself and all competition was negative,” she almost

Impact of GPEC

Kathy Bollinger, president, Arizona West Region, Banner Health: “As the Valley’s largest healthcare organization and one who is proudly based here in Phoenix, Banner Health truly appreciates GPEC’s on-going efforts to nurture a successful bio-medical industry, foster economic regionalism and promote the region’s unique offerings in terms of its skilled workforce, economic vitality and quality of life.”

Ronald Butler, Arizona managing partner, Ernst & Young LLP: “GPEC is a visionary organization that has succeeded in driving an actionbased economic development strategy and instilling the concept of regionalism across the Valley. What makes GPEC special is its ability to work across municipal boundaries to drive investment and job growth. Thanks to GPEC, we truly understand the notion of the ‘greater good.’”

Brian Cary, manager of forecasting, research and economic development, SRP: “GPEC has grown from a modest beginning in the wake of the 1980s recession, and more recently the Great Recession, into the solid business attraction organization it is today.

GPEC provides data-driven analysis and information for its regional partners and business prospects to promote economic development.”

John Chan, director of community and economic development, City of Phoenix: “Over the past 25 years, GPEC’s standard of excellence to attract quality businesses to the region has created a legacy of economic development success. GPEC brings to the forefront the attractiveness and competitiveness of this region and their partnership is key in this global economy.”

Mark Clatt, area presidentSouthwest, Republic Services: “GPEC identifies transformative economic opportunities, and galvanizes business and community leaders to bring those opportunities to the Valley. GPEC has been first to market at key moments in California and China, while helping existing Valley companies sustain and grow their business.”

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2014 shutters with the recollection. “It was not a pleasant experience.”

The border wars were legion. Cities were racing annexations, jig-sawing boundaries to snare a shopping center here, industrial land there or a subdivision over yonder.

Those border wars explain some of the Valley city limit anomalies existing today and much of the sprawl.

“Cooperation was not part of the Valley DNA,” recalls Morfessis. The biggest forward move was creating the environment in which trust and reciprocity begins to evolve. “Once cities and businesses realized that we’re all in this together, it was time to establish a strategy for the Valley’s economic development future.”

GPEC: First of its kind The Greater Phoenix Economic Council was the first organization of its type in the U.S. It was an unheard move to build a board of directors composed of mayors, supervisors and private sector leaders.

The GPEC funding was split between public sector contributions and business community dues. When everyone sat at the same table, the economic development culture changed.

Morfessis became GPEC’s first CEO serving for 10 years. Rick Weddle was the

second executive with a six-year tenure.

Current CEO, Barry Broome, has been at the helm for nine years.

Sharon Harper, president and CEO of the Plaza Companies, sat on that first board of directors, a role she still holds today. “GPEC was a very complex vision,” she remembers. “It took a collection of strong leaders to put this tremendous effort together.”

Harper believes that the council has achieved and exceeded the expectations of its early days in the late 1980s. “We grew from seven cities to the county and all Valley cities, plus two in Pinal County.”

Private sector participation increased significantly as well. Harper says that the organization funding is nearly split evenly between the public and private members.

“GPEC is held in high regard, not just in the Valley, but across the country and in the international community,” she says.

Harper chairs the board’s international initiative, “We’re increasing our international effort and bringing results home.”

International efforts ahead She sees in GPEC’s next 25 years more international efforts. “We’re evolving programs for businesses in Mexico, Canada, China, Latin America and Western Europe.” The program is starting

to pay dividends with new foreign capital investment showing up over the last six months in 2013. New businesses from the Netherlands, Germany and Canada have sunk North American roots into the Valley of the Sun. Harper is enthusiastic about the synergy created for Arizona by GPEC with the Arizona Commerce Authority, Tucson Regional Economy Opportunities and the Northern Arizona Council of Governments. “Phoenix is the biggest market,” she says. “What we do here also helps the rest of the state rise in market visibility and awareness.”

GPEC’s big gun is its ability to rapidly compile accurate information, gather resources and save businesses time when they start looking at the market.

“Barry has great depth in his staff. The organization works together and with others as a well-run operation.”

Pulling the teams together “GPEC is vitally important to APS and other Valley utilities,” says board member Tammy McLeod, a vice president with Arizona Public Service. “The main reason is that it is capable of pulling (Valley) mayors together and avoiding in-fighting between cities.”

McLeod, too, is proud of the council’s

Impact of GPEC

Lynne Herndon, city president, BBVA Compass: “GPEC aggressively markets and showcases the Phoenix region and Arizona to companies in other US states as well as foreign countries so that the region can attract robust new businesses to the area which is great for our economy.”

Tammy McLeod, vice president and chief customer officer, APS: “GPEC’s work bringing political and business leaders together from across the Valley has created one of the nation’s strongest economic development efforts. The results speak for themselves. The Phoenix metropolitan area has become a competitive choice for businesses to relocate and grow.”

120 AB | January-February 2014

Ed Novak, shareholder, Polsinelli: “In many respects, GPEC has been the driving force behind the growth of business in the Valley. It serves the critical role of bringing business leaders, public office holders and other stakeholders together to create economic incentives at a state and local level. GPEC has been instrumental in successfully selling Arizona’s value proposition to foreign and domestic business.”

Don Smith, president and CEO, CopperPoint Mutual Insurance Company: “As a member of the GPEC Board, I have observed a remarkable level of public/ private cooperation that is unparalleled anywhere else in the state ... I believe that this partnership owes its success to the leadership and dedicated professionals at GPEC who brought this model to maturity over the past 25 years.”

Greg Stanton, mayor, City of Phoenix: “Time and time again, the Greater Phoenix Economic Council has proven itself as a valuable and necessary partner to drive economic growth in our region. I’m grateful to have them play an important role as we move Phoenix into the future.”

602.247.7600 121 AB | January-February 2014

2014

GPEC’S 2013

MILESTONES * GPEC capitalized on California’s increase on personal income taxes by targeting CEOs with a California 50 campaign. The result? More than 60 calls within the first week, so the campaign was extended to 100 CEOs. GPEC is currently working with approximately 35

staff. “We have a vibrant and hard-working team. GPEC is built on a very professional staff, and its abilities are well-recognized across the country.”

The strength for GPEC is its broadbased business community roots. The organization started as an opportunity to coordinate business efforts with government, but its role, says McLeod, has broadened. “Over the past 25 years, GPEC has started targeting wins to be businesses that substantially contributed to the overall community, not just move here. It builds both quantitative and qualitative

California CEOs from companies ranging in size from 300 to 10,000 employees and represent industries like financial services, manufacturing, life sciences and technology. * GPEC capitalized on key national and international themes, which led to more than 1 billion media impressions. PR efforts surrounding the International Trade Commission hearing on solar tariffs in China, GPEC’s California 100 campaign and the Arizona Talks Immigration panel in Washington, D.C. resulted in solid media placement for GPEC.

results for Arizona.”

Buyer’s remorse sometimes happens after a large purchase, but it’s a term rarely heard in relation to a business relocation. “GPEC mitigates the remorse issues,” explains McLeod. “It helps the new company’s leadership connect into the local community. GPEC’s efforts help those new roots take hold.”

“The legacy since (GPEC’s) founding is the spirit of collaboration it created,” she says. “That’s a word that was never heard 25 years ago.”

McLeod says that the organization

* GPEC is further developing a system to uncover and pursue emerging tech firms that have a viable funding source. Early identification of these enterprises during the capital infusion process, will afford GPEC the chance to grow technologies within the region’s innovation ecosystem. * GPEC delivered on several business development metrics including number of jobs, high-wage jobs and average high-wage salary. Year-end projections suggest GPEC will finish with one of the organization’s Top 5 job performances in the last decade.

is now laser-focused on Velocity (See related article, “An opportunity oasis,” on Page 108). “The strategic plan is going to implement bold moves for the future of the economy. It will drive the types of education offered by Arizona State University and University of Arizona, as well as the community colleges and technical schools.”

Velocity, the name given to the business plan, is a major public-private initiative that will have strong role in the types of businesses GPEC helps grow in the Valley of the Sun during the next 25 years.

Impact of GPEC

Hyman Sukiennik, vice president, Cox Business: “The GPEC team listens clearly to the feedback they receive from prospective metro companies and aligns meaningful tactical steps to turn opportunity into reality.

They have been very effective at making sure that scarce resources are aimed precisely at those industries and sectors that represent valuable jobs and the long-term economic health of our community.”

Karrin Taylor, executive vice president, DMB Associates: “GPEC convenes business executives and political stakeholders to drive an agenda to improve our region’s competitiveness making Arizona a better place to do business. And GPEC’s aggressive pursuit of strategic industry sectors, based on robust analytics and matched to our labor pool, has seen incredible success over the past few years.”

122 AB | January-February 2014

Gerrit van Huisstede, regional banking executive, Wells Fargo: “When I settled in Phoenix 24 years ago, I learned a lot about the ‘five C’s’ that drove the Arizona economy — copper, citrus, cotton, cattle, and climate. GPEC has helped us take a smart approach and change that mix over the years to attract new employers, more modern industry sectors, and higher paying jobs.”

John Welch, managing partner, Squire Sanders: “GPEC’s biggest contributions are really two-fold. First, GPEC has managed to bring all of the constituent cities together in a unified, Valley-wide business development effort. Second, GPEC continues to put the Valley’s best foot forward through its use of metrics and statistical analyses that enables it to be one of the leading economic development organizations in the country.”

Quinn Williams, shareholder, Greenberg Traurig: “As GPEC’s former chairman and board member, I believe one of GPEC’s most important contributions was establishing a regional economic identity – a vital and necessary prerequisite to attract business and industry to the Valley. GPEC also developed nationallyrecognized public-private partnerships as a platform for regional economic success.”

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2014

GPEC’s

10

GREATEST ACCOMPLISHMENTS

The Greater Phoenix Economic Council is celebrating its 25th year as one of Arizona’s best economic catalysts. Here are 10 ways GPEC impacted Arizona’s economy during its first 25 years:  Launched the first statewide partnership to attract foreign direct investment.

Arizona’s foreign direct investment rank has since increased from 29 in 2005 to 25 in 2012 and the alliance has opened China as a market for doing business.  Authored and led the passage of the Renewable Energy Tax Incentive Program, which was later expanded to include other export industries. Now known as the Qualified Facility Income Tax Credit, this and other programs such as the Governor’s Competitive Package, have led to the delivery of high-impact projects such as Apple.  Released a pre-sequestration analysis that called for action in saving aerospace and defense industry jobs.  Introduced a five-year strategy designed to shift from quantity to quality job growth.

The plan mandated that every one in six new jobs created be in a high-wage industry. At completion, GPEC assisted in the creation of 22,000 new jobs in five years, with more than 60 percent of those jobs in high-wage industries.

124 AB | January-February 2014

 Earned the highest ranking as “Best in Class” organization by national siteselection consultants in 2011.  Launched several successful CEOs in economic development organizations across the country.  Reached its 100,000th cumulative new job total in 2013.  Provided fact-based analysis that led to the passage of sales factor, which has in turn resulted in securing major investments

by Intel in Arizona.  Assisted in the expansion of “trophy” U.S. companies with major operations here: AVNET world headquarters; Vanguard; Charles Schwab; SUMCO; Medtronic; Fender Musical Instruments headquarters, Intel, USAA, PayPal, Amazon, Apple and many others.  One of the longest-standing true public-private partnership in the country— a distinction limited to only a few other economic development organization in the U.S.

125 AB | January-February 2014

126 AB | January-February 2014

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127 AB | January-February 2014

Celebrating

25 YEARS

2014

AS AN ECONOMIC ENGINE

GPEC’s 2014 action items Business development Scale California initiative: Substantial interest in GPEC’s California 100 campaign has translated into more than two dozen companies evaluating Greater Phoenix. As GPEC looks to convert these prospects to locates, it will deploy more resources to California markets and articulate Arizona’s business case to executives seeking to leave or expand out of the state.

Mine opportunities in Chicago: GPEC will expand current efforts in Chicago, increasing its presence and outreach to the market that many Arizonans formerly called home. GPEC will study market similarities and juxtapose those areas in which Greater Phoenix has a solid advantage. GPEC will also recalibrate its messaging, historically designed for site-selectors, and cast a more refined communications net targeted at executives.

128 AB | January-February 2014

technology (ICT). An in-depth look at the region’s ICT assets and overall evaluation of industry trends will equip its communities with intelligence beneficial to their respective retention efforts.

Size up competition: GPEC will broaden its normal business development travel to include trips that delve into better understanding industries in the competitor markets of Austin, Salt Lake City, Las Vegas, Dallas and Denver. Austin, for example, has a storied past in technology yet continues to surface in rankings and maintain its reputation as an innovative city.

Visits with market experts and research due diligence will help GPEC identify how Greater Phoenix stacks up.

Implement a regional science and technology initiative: Building on the work from FY13, GPEC will coalesce business and community leaders to execute an economic growth plan designed to transform Greater Phoenix into a knowledge-driven economy.

The purpose of the initiative is to lead the nation and the world in new technologies and innovation, and ultimately increase the region’s prospects for greater prosperity and economic sustainability.

Competitiveness AND MARKETING Advance the market intelligence program: Following the rollout of its findings from the aerospace and defense analysis and presequestration report, GPEC will continue monitoring this industry to assess the impact from sequestration. GPEC will also expand the market intelligence program to researching information communications

Bridge international markets: GPEC will focus on implementing an international marketing campaign that includes increasing awareness for Greater Phoenix and its market offerings. It will also strengthen ties with Washington, D.C.-based agencies that serve as points of entry for foreign companies, gaining more visibility among firms seeking to invest in the U.S.

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129 AB | January-February 2014

2014

130 AB | January-February 2014

Celebrating

25 YEARS

AS AN ECONOMIC ENGINE

The politics of growth Experts say if Arizona’s next governor doesn’t have a broad vision of what economic development really means, we’re in for a fight to grow the economy

By ERIC JAY TOLL

T

his is a turning-point election for Arizona. Seven candidates seek the governor’s post, the most important elected position in Arizona. Economic development and business leaders are concerned about the state’s image in the global market and what it will take to make the area competitive in the next economy.

The new governor will need to take the branding lead.

AZ Business spoke with all but two potential candidates. One responded to

questions by email and the other never responded to the invitation. While the interviews covered a range of topics, each candidate shared their key vision for economic development in Arizona.

In the free-ranging conversations, some in person, some over the phone, candidates were frank, sincere, and all are dedicated to taking Arizona into the next economy. Interviews are highly condensed to focus on candidates’ top priorities.

Responses are in alphabetical order.

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2014 Ken Bennett, Prescott “My policy is to create a business climate that changes Arizona’s economic development policy from a ‘lasso’ to a ‘magnet,’” says Arizona Secretary of State, Ken Bennett, a Republican candidate. “Arizona will be recognized by the international business community as ‘the’ place to do business.”

Bennett sees four pillars of Arizona economic development, “Cost, talent, time and image. These are drivers for a business deciding to do business in Arizona.”

Cost, according to Bennett, is covered with his “…broad tax policy creating a better financial environment for business growth.”

“Talent is our biggest asset,” he says and defines the need for quality education as the full spectrum: “Pre-K through 20 need resources to provide the best education to turn out the best workforce.”

“We need to cut startup time for business,” he says. “Not only regulations, but improving logistics and upgrading infrastructure.”

The state’s image as a magnet for business will polish itself with the other pillars’ successful implementation, Bennett says.

Doug Ducey, Scottsdale Arizona State Treasurer Doug Ducey, Republican, responded to questions by email. When asked what “economic development” will mean in his administration, he responded, “Economic development is a growing healthy economy that spurs the creation of jobs – quality jobs that provide benefits and decent wages. It’s also about creating an environment that supports STEM-based education and training at all levels to feed the state’s

132 AB | January-February 2014

talent pool needs, and supporting a culture valued by companies (to encourage their investments) and both students and workers (so they want to move to or stay and work in Arizona).”

Responding to a question about policies he envisions implementing, Ducey wrote, “I wholeheartedly believe the primary part of the government’s role economically is to set a level playing field so companies of all sizes can compete. We’ve seen this dynamic play out all across the country; states that reduce taxes, maintain fiscal discipline, and encourage growth are successful at creating jobs.”

Fred DuVal, Phoenix The lone Democrat running for governor, former Arizona regent Fred DuVal says rebranding Arizona as a place for entrepreneurial success is his job one. “He says, “We have a diverse, interesting and compelling collection of talent in this state.

Combine (entrepreneurialism with talent) and we are able to build and expand our local economy.”

DuVal believes are biggest challenge for succeeding in the global economy is building an effective workforce. “The state is moving forward,” he says. “It is important to continue investing in the new products of the future throughout our knowledge institutions.”

“We need to attract more venture capital.” DuVal is concerned.

“Arizona is behind other states in breaking into the markets because capital is inadequate for growth and expansion.”

“When we cut funding for education and innovation, we’re sending the wrong the message to businesses outside the state,” he explains. “We need a governor who is going to be part of the economic development effort.”

One of Arizona’s fastest growing communities, the Town of Queen Creek offers businesses access to highly educated and affluent residents, a rural lifestyle with city style amenities and an award-winning plan for growth.

Stop by and see how your business could call this beautiful community “home.”

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133 AB | January-February 2014

2014 Christine Jones, Scottsdale “The role of the next governor is to direct our economy for the state’s next 100 years,” says Republican gubernatorial candidate Christine Jones, former legal counsel for GoDaddy. “As a leader in a fast-growing company, I learned it takes real partnerships to make things happen in business.”

Jones has three priorities for economic growth to set the foundation for the coming century. “We have to facilitate our local startups to ensure they survive and grow. Any program developed must include incentives to help our own succeed.”

Jones says it’s important to bring in corporate headquarters or major regional presences. “When a company puts roots in a community, it does more to succeed and is less likely to abandon the area.”

The capstone for her economic development vision is increasing foreign direct investment. She explains, “I plan to invite increased foreign spending in Arizona businesses. The governor needs to encourage this global investment.”

The governor as advocate-in-chief for the state’s economic development is a major role for the top state official, she says.

“Business leaders should know that the governor’s office is going to contribute to success of the right businesses.”

Steve Pierce, Prescott “The policy set by the governor in the next term is going to determine the type of state we leave for our grandchildren,” projects State Senator Steve Pierce.

“Job one for my administration is to develop a healthy, business economy and jobs that pay well for the people who live in Arizona.” He says, “We have strong opportunities to increase our trading with other regions. Mexico is our largest trading partner and we must strengthen that connection.”

134 AB | January-February 2014

Pierce, a Republican, sees opportunity in improved infrastructure, “With public-private partnerships (P3), we can move major infrastructure projects forward. I-11 and freeway improvements are needed.”

Procedural improvements he wants to implement are a program, “If agencies can simplify processes so that the state is working with businesses, we can better accommodate the growing and changing needs of business.

Pierce pays attention to economic development in rural areas, “Our rural communities have significant assets, and we need to do more to match those with growing local businesses and new firms entering the state.”

Scott Smith, Mesa Mesa Mayor Scott Smith, not yet an official candidate, uses four words to wrap his Arizona economic vision: “We can do it.”

“Define our strengths and build the economy from those assets,” he says. “It’s proven in Mesa and can work Arizona.”

Smith is referring to Mesa’s HEAT initiative: healthcare, education, aerospace and technology.

Smith sees Arizona’s competitive opportunity as promoting its strengths.

“Whether it’s the Sun Corridor or Safford, there are assets that can be deployed to build strong local economies,” he says. “The future is definitely in metropolitan and regional economies.”

Smith believes that the role of government is to facilitate economic development, but that doesn’t mean a hands-off role. “Companies are looking for talent, and to provide a world-class talent pool, we need to focus on education from preschool to graduate school,” he says.

“The recession devastated education funding at all levels, and it has to be restored or we cannot compete.”

He is enthusiastic about the Sun Corridor, “This is our greatest global strength. The Sun Corridor makes us a major league market of opportunity for local and incoming businesses.”

134 AB | January-February 2014

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12/10/13 9:32 AM

Congratulations GPEC for 25 years of outstanding commitment and service to our community!

Barry Broome, President and CEO, and his team have done an outstanding job of promoting the Greater Phoenix area as a “Perfect Climate for Business”.

Principals Scott Carson, Erik Peterson, and Nikal Conti say, “We feel that the GPEC organization plays a critical role in attracting new business and ensuring a bright and healthy future for our community”.

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And from everyone at PHX Architecture, “Thank you, GPEC!”. | 480.477.1111 | INFO@PHXARCH.COM 135 AB | January-February 2014

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