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MARCH // APRIL 2022
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THE MOST INFLUENTIAL DIVERSE BUSINESS LEADERS IN ARIZONA FOR 2022
DIVERSE BUSINESS LEADERS
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CREDIT UNION TRENDS
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ARIZONA CORPORATE COUNSEL AWARDS
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FROM LEFT: Delma Herrera, Cox Communications; Michael Jones, Delta Dental of Arizona; Angela Hughey, ONE Community.
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Table of Contents 6
Trendsetters
14
Leadership Profile
Stepping up when we need it the most
16 Influential Diverse Business Leaders 26
Credit Unions
32
Healthcare
26
34 Association for Corporate Growth 42
Arizona Forward
48
Technology
52 San Diego 54 Tourism
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56 Marketing Dining 58 60 Arizona Corporate Counsel Awards 97
HX East Valley P Partnership
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I went to 14 different schools before I graduated from high school. I went to schools where everybody looked like me. I also went to schools where hardly anybody looked like me. While it was tough being the new kid in each situation, it afforded me the opportunity to be exposed to people of different religions, races, socioeconomic status, ways of thinking and ways of talking. One thing I learned: People love to talk. David Eaker But not a lot of people act. While issues of race and diversity have been at the center of discussions for decades, they have taken on added significance in the wake of social issues and injustices that have arisen in the past several years. There is a lot of talk. Now, there needs to be more action. That’s why people like David Eaker are important. David is the campus president of the Refrigeration School Inc. in Phoenix, which provides training for people looking to pursue a career in HVAC (heating, ventilation, air conditioning), welding and electrical fields. He has gone above and beyond to help Black and minority students find successful and thriving careers in the skilled trades. We need more people like David Eaker. People like David Eaker make a difference. In this issue of Az Business, we celebrate those people making a difference when it comes to paving the way for stronger efforts toward diversity, equity and inclusion. We profile some of the most influential diverse business leaders in Arizona. They are changing the face of Arizona business — both literally and figuratively. Read about them. Talk about them. And then find a way to promote more of them. Be like David Eaker. Make a difference.
On the cover: FROM LEFT: Delma Herrera, Cox Communications; Michael Jones, Delta Dental of Arizona; Angela Hughey, ONE Community. . 2
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Michael Gossie Editor in chief michael.gossie@azbigmedia.com
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SPOTLIGHT
President and CEO: Michael Atkinson Publisher: Amy Lindsey Vice president of operations: Audrey Webb EDITORIAL Editor in chief: Michael Gossie Staff writers: Kyle Backer | Erin Thorburn Interns: Keetra Bippus | Haley Smilow
MESA STRIVES FOR LIMITLESS ACCESSIBILITY Visit Mesa continues to help the City of Mesa transform into one of the nation’s most accessibility-focused and friendly travel destinations. Notably, Mesa received designation as America’s first-ever Autism Certified City and the first U.S. destination to adopt the Hidden Disabilities Sunflower program. Additionally, local and out-of-town visitors seeking accessibility accommodations can find everything they need on Visit Mesa’s City Limitless website (accessiblemesa.com). Here, travelers can view where to stay, attractions and entertainment, outdoor venues, dining options and several more resources. In its commitment to making Mesa an increasingly inclusive, accessible destination, Visit Mesa maintains an equal dedication to exploring innovative resources. Last fall, Aria, an on-demand visual interpretation service app, became available to visitors. Persons who are visually impaired or have low vision can download Aria to their phone for guidance within Mesa city limits.
Social media intern: Gabriella Herran-Romero Contributing writers: Alison Bailin Batz | Rana Lashgari | Steven G. Zylztra ART Design director: Bruce Andersen Art director: Mike Mertes Marketing designer: Heather Barnhill MARKETING/EVENTS Marketing & event specialist: Lynette Carrington Digital marketing specialist: Chrissy Souders OFFICE Special projects manager: Sara Fregapane Database solutions manager: Amanda Bruno AZ BUSINESS MAGAZINE Senior account executives: David Harken | April Rice Account executive: Maria Hansen AZ BUSINESS LEADERS Director of sales: Sheri Brown AZRE | ARIZONA COMMERCIAL REAL ESTATE
SHOUT OUT “I’d like to congratulate the Arizona Corporate Counsel Awards finalists who are recognized inside this issue of Az Business magazine. Thank you for boosting Arizona’s business community.” Amy Lindsey, publisher AZ Big Media
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Director of sales: Ann McSherry EXPERIENCE ARIZONA | PLAY BALL Director of sales: David Ealy RANKING ARIZONA Director of sales: Sheri King 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 2021 by AZ BIG Media. All rights reserved. No part of this publication can be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from AZ BIG Media.
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TRENDSETTERS
Metro Phoenix has evolved into a hotbed for innovation. To showcase how startups are powering the Valley’s economy, Az Business has compiled a list of 22 startups to watch 2022.
ActiveClass
This Tempe-based startup aims to increase student retention in higher education by fostering more authentic online interactions.
AerialSphere
This startup is the only company to combine 360-degree aerial imagery with location data, giving companies new vantage points to make more informed decisions.
Heads Up Health
The company aims to reducing costs on healthcare systems by providing efficient ways for individuals to self-monitor their health and share data.
HUUB
Better Agency
Jenny Poon, the founder of CO+HOOTS, founded this small business support network that helps entrepreneurs connect.
Bluetail
This Scottsdale startup is fundamentally changing how real estate services are initialized, managed and delivered at scale.
EnPower
This Phoenix company makes software to help resellers list their items on multiple online marketplaces at once.
This maker of cloud-based software for the insurance industry won the software-as-aservice (SaaS) category at Venture Madness. This Phoenix startup has built a software platform to digitize and organize all the paper records that come with owning an airplane. This startup is driven to solve today’s energy challenges by building better batteries.
Equipifi
Equipifi, a Scottsdale fintech startup, is building a software for banks and credits unions to enter the Buy-Now-Pay-Later (BNPL)market.
FreightVana
This third-party logistics company in Phoenix helps connect companies selling their wares to the carriers that distribute them.
Fullbay
Fullbay is cloud-based shop management software built specifically for heavy duty repair shop, helping technicians get more done in less time. 6
PayGround
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Lessen
PayGround aims to simplify the process of paying medical bills by giving patients a single app from which to pay all their bills.
Postscript
This Scottsdale startup is a powerful, easy-touse SMS platform for Shopify stores.
Protecht
Protecht understands what the online economy needs in order to generate a more secure financial experience.
RadiusAI
List Perfectly
This computer vision analytics company provides real-time data to help create greater operational efficiency in healthcare, retail and critical infrastructure.
Mosaic
RevolutionParts creates an online parts store that helps increase and streamline sales to both consumers and repair facilities.
Navi Nurses
Its mission is to transform the medical billing experience by merging the worlds of technology and healthcare to solve patient and provider pain points.
Paradox
This Tucson-based startup makes a respiratory assist device called Hespiro and was named as a winner in the Arizona Innovation Challenge.
This startup uses software as a general contractor to manage construction on behalf of homebuilders, enabling them to build more homes more efficiently. Founded by a pair of Valley nurses, this startup helps during health transitions, such as when patients return home from the hospital. Its flagship product is Olivia, the AI recruiting assistant obsessed with improving and reinventing the candidate experience.
RevolutionParts
Rivia Health
SaiOx
Virtuous
This startup helps charities use software to create personal connections with givers by truly understanding what makes each giver tick.
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TRENDSETTERS
SPONSORED BY
Small business Chef
Claudio Urciuoli NEW FAST-FINE DINING CONCEPT COMES TO GILBERT
LUNCH MONEY BRIGHTENS UP CHANDLER
There was a method to Erin Dragoo’s madness. “When I was in high school, my mom would give me $20 at the beginning of the week for lunch and expect that it would last me until Friday,” Dragoo says. “It never did. I would take the money she gave me and go spend it at the mall. Shopping brought me so much more joy than eating lunch ever did.” From that feeling, Dragoo created Lunch Money, a gift shop and women’s clothing boutique in Chandler that aims to promote the fun in everyday life. Lunch money offers a wide range of hand-selected inventory and the store has a very quirky colorful aesthetic that makes it to most Instagrammable retail location in the Valley. “Lunch Money is everything I would spend my lunch money on,” Dragoo says. “And I hope that the women of Chandler get as much enjoyment out of my store as I do.” Learn more: www.lunchmoneyaz.com.
Source restaurant and market is set to open its doors this spring in Gilbert, bringing to the East Valley a relaxed fast-fine dining environment boasting ultra-Mediterranean flavors, style and curated music. “We are honored to share our passion for serving high-quality food that is both delicious and nutritious through Source,” says co-founder Akshat Sethi, who together with Chef Claudio Urciuoli of Palaphx fame are building Source. Source is an organic ingredient-driven, fast-fine dining restaurant centered around the flavors of the Mediterranean. Serving sandwiches, salads, pizza and a variety of mezze, tapas and Venetian-style cicchetti along with a finely-curated selection of natural wines, Source will have a retail market boasting house made breads, wines and other goods to go. Source will be located at 3150 E. Ray Rd. within The Epicenter at Agritopia. Learn more: www.eatatsource.com.
La Canasta Mexican Foods celebrates 60 years in Arizona La Canasta Mexican Foods, the home of My Nana’s Best Tasting products, is celebrating 60 years of business in 2022. Today, under the leadership of Josie Ippolito – the company has its sights set high on growth, expansion and new product development. In 1962, Richard and Carmen Abril opened La Canasta Mexican Foods in Phoenix. Their goal was to supply the Hispanic community in Phoenix with fresh flour and corn tortillas. Today, La Canasta makes 2.5 million tortillas daily in its Phoenix-based manufacturing facility. “Without the driving force of my mother, Carmen Abril Lopez, and her determination to be a successful Hispanic woman-owned business, we wouldn’t be where we are today,” says Josie Ippolito, president of La Canasta. “Being present from humble beginnings and realizing how our business has evolved over the years is amazing.”
Learn more: la-canasta.com 8
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TRENDSETTERS
BestCompaniesAZ celebrated 20 years of recognizing Arizona’s Best Companies with the selection of its 100 Best Companies in Arizona. They’re the ones you read about because of all the good they accomplish. The innovation. The community service. The fun activities. They are major, established multinational brands – and they are also tech upstarts. Here are the 100 Best Companies in Arizona, according to BestCompaniesAZ.
TRAILBLAZER
Companies that have pioneered and sustained their exceptional performance by all metrics over 20 years, representing the best of the best.
+ American Express + Axon + CarMax + Charles Schwab & Co. + Cox Communications + Deloitte + Desert Financial Credit Union + Dignity Health Arizona + Freedom Financial Network + GoDaddy + Goodmans Interior Structures + Homeowners Financial Group + HonorHealth + Intel Corporation + Jennings, Strouss & Salmon + Mayo Clinic + Medtronic + Quarles & Brady + USAA (United Services Automobile Association) + Vanguard
The 100 Best Companies in Arizona
WINGS
FUTURE
Innovation, empowerment, freedom, creativity (and maybe disruption) shine at the forefront of these companies.
With great potential for growth and representing a new era of business in Arizona, these are the organizations we want to watch for the future.
+ Bishop Fox + Blue Yonder + DPR Construction + Duffy Group + Equity Methods + Grant Thornton + Insight Enterprises + Integrate + Keap + Kforce + KUBRA + McCarthy Building Companies + Microchip Technology + NortonLifeLock + Qwick + Rose Law Group + Ryan + UnitedHealthcare
HEART
+ Bell Bank + Elevato + Heart & Soul + LifeGuides + LiveRamp + Lucid Motors + On Q Financial + Opendoor + Peloton + Robinhood + The Nerdery + Upgrade
Through building relationships with employees, customers, and in the community, these companies show how much they care.
+ Arizona Charter Academy + Arizona Diamondbacks + ASU Enterprise Partners + Banner Health + Blue Cross Blue Shield Arizona + Cancer Treatment Centers of America, Phoenix + CBRE + Family Life Radio + Farmers Insurance + Grand Canyon University + Habitat for Humanity Central Arizona + Intuit + Learning A-Z + Lovitt & Touché, A Marsh & McLennan Agency LLC Company + Make-A-Wish Arizona + Orchard Medical Consulting + Phoenix Children’s Hospital + Spear Education
STAR
At the height of their powerful success, these companies are masters of their fields, inspiring confidence in customers and employees alike.
+ Accenture + ADP + Better Business Bureau Serving the Pacific Southwest + Burns & McDonnell + Camden Property Trust + CBIZ + CDW + Copperpoint Insurance Companies + Credit Union West + Cresa Global + Discover Financial Services + General Motors Company + Kitchell + Northern Trust + Sonora Quest Laboratories + Stryker Sustainability Solutions + Sundt Construction + Taylor Morrison + Voya Financial + Waste Mangement 10
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COOL
Top organizations with strong, unique workplace cultures, where they know how fun can help create the best work ever. + AB&R (American Barcode and RFID) + CAPTRUST (formerly MRA Associates) + Clear Title Agency of Arizona + DriveTime Automotive Group + Fennemore + Ideas Collide + LaneTerralever + LAVIDGE + PayPal + Quicken Loans + Rocket Media + Workiva
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TRENDSETTERS
SPONSORED BY
>> Excellence in equality GoDaddy, the company that empowers everyday entrepreneurs, received a 100 percent on the Human Rights Campaign’s 2022 Corporate Equality Index, the nation’s foremost benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality.
Taking the lead
>> Dude ranch royalty
Littler, the world’s largest employment and labor law practice representing management, has appointed Kristy Peters and Andrea Lovell — both former Most Influential Women in Az Business magazine — as office managing shareholders of its Phoenix location. They are succeeding Shawn Oller, who stepped down to continue focusing on his practice and other firm initiatives. “With a highly skilled team dedicated to exemplary client service, we are well situated to further expand our capabilities while recruiting top talent in the market,” Peters and Lovell said in a joint statement.
Tanque Verde Ranch, a dude ranch owned by Cote Family Destinations, announced the induction of former general manager Rita Cote into the Dude Ranchers’ Association Hall of Fame. The Hall of Fame represents more than 100 of the best dude ranches in the west.
>> Bridging the digital divide Intel has partnered with Dell Technologies and Chandler Unified School District to give 4,000 laptops to students. This initiative aims to ensure all students have a high-powered computer to bridge the digital divide and will ultimately accelerate student learning.
>> Sizzling startup environment
Mike Bianco
Scottsdale is ranked No. 1 in the latest Fastest-Growing Startup Cities report from York IE, up from the No. 10 spot in the third quarter. The Top 3 recent funding rounds in Scottsdale are Paradox ($200 million Series C), Lessen ($170 million Series B), and FlipOS ($136 million Series B).
>> Mental health help The Sierra Tucson experienc has come to Metro Phoenix with the opening of Sierra at Scottsdale Outpatient Mental Health Care, which treats those struggling with anxiety, bipolar disorder, depression and other mental health concerns, along with those who have co-occurring substance use disorders.
AvAir takes off
Kristy Peters and Andrea Lovell 12
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Chandler-based AvAir earned the No. 1 position on Airline Economics’ Aviation 100 “Parts Supplier of the Year” rankings. This ranking is judged on several criteria including parts stocked, clients and number of employees. Mike Bianco, CEO of AvAir also secured a place on the prestigious “CEO of the Year” rankings by Airline Economics’ Aviation 100 awards.
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LEADERSHIP PROFILE GAME-CHANGER: “This is an opportunity to bring to Arizona a lifetime of experiences in the world of equity, in ensuring that opportunities are made available to as many people as possible so that they can meet their full potential,” says José Luis Cruz Rivera, president of NAU. (Photo by Bruce Andersen, AZ Big Media)
NORTH STAR
José Luis Cruz Rivera brings lifetime of innovative leadership to his role as president at Northern Arizona University By MICHAEL GOSSIE
I
t’s not often that someone goes from being an engineer to being president of an iconic Arizona university, but that’s exactly what José Luis Cruz Rivera has done. “It was a very accidental change for me,” says the first Latinx president of Northern Arizona University. “I was an electrical engineer and I thought that I would spend my life as a faculty member teaching, doing research and service work. Early in my career, I had an opportunity to get engaged with governance through the Department of Electrical and Computer Engineering. That allowed me to really see the effect higher education has on people — and not only on individuals, but the multi-generational impact that it has moving forward.” A leading national advocate for policies to expand opportunities and improve educational outcomes for all students —
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especially those who have historically been underserved — Cruz Rivera hopes to make a major impact on Arizona educational and business sectors. Az Business: What attracted you to NAU? José Luis Cruz Rivera: The first thing is the beauty of the place. Seventeen years ago, my wife and I had an opportunity to travel and among the places we went to were Sedona, the Grand Canyon and Flagstaff. We said at that time, “One day we want to live here.” And so when the opportunity arose, it was just a chance to really see if we could make that happen. AB: You talk about the “new NAU.” What is your definition of the new NAU? JLCR: NAU has a 122-year history of serving the people of Arizona, primarily first-generation students and Native American students. We have just been
designated as a Hispanic-serving institution. So we have this long tradition of providing a collegiate residential experience to underserved communities across Arizona and have done so with distinctive excellence in fields like allied health, education, sustainability, business, you name it … but Arizona ranks near the bottom in the country in terms of educational attainment. That’s where we see the new NAU coming into play. NAU has 20 sites across the state and we can leverage that ensure that we’re not only providing opportunities for the high school graduates, but also perhaps those midlife workers with careers that need some upskilling or re-skilling to benefit from the new economy shaping up in Arizona. So the new NAU is going to come then and fill that space of brokering opportunities for more people in Arizona. AB: We know you’re still pretty new to the position, but what are your goals as president of NAU? JLCR: I hope that our university in the next few years will not only be recognized as the leading engine of opportunity in Arizona, but also nationally recognized for its proven ability to deliver equitable postsecondary value. That is the overarching theme. We’re working with the campus community and our stakeholders to figure out exactly what it is and the five big things we’re going to do over the next few years that will get us there. But I will say that’s sort of the vision, and I think that we’re very well positioned to do that.
DIVERSE BUSINESS LEADERS TO WATCH IN 2022
THE INCLUSION EQUATION
As the nation struggles with social justice issues, Arizona businesses look for ways to create a more inclusive and diverse workforce
By ERIN THORBURN
D
iversity in the United States has been one of the country’s longest and most profound challenges. Throughout the decades, minority groups have fought for voting rights, desegregation and equal opportunity across the board. Fast forward to 2022, and the fight continues.
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Black Lives Matter, #MeToo and Asian Americans for Equality movements keep reminding the nation there is still work to be done. One area that continues to be a call to action — now, more than ever — is diversification within the U.S. workforce. And, here close to home, many Arizona businesses are stepping up to answer the
JULIA S. ACKEN
DELMA HERRERA
GUIDO DE KONING
CHRISTINE GANNON
MONICA VILLALOBOS
call, taking honest appraisals of their workplace inclusion (or lack thereof) and deciding how to best prioritize and incorporate employment diversity. “At Cox, we believe that our diversity gives us strength in business with diversity, of thought, innovation and serving the communities where we live and work,” says Delma Herrera, vice president of field sales, West Region, for Cox Communications.”Diversity is not just the right thing to do, it is the profitable thing to do. Having diverse leaders combined with a diverse workforce is proven to be good for business, by growing the business and delivering a great experience to an increasingly diverse customer base and community.” Why now more than ever? According to the U.S. Census Bureau, projected growth among Hispanic, Asian and multiracial groups will achieve majority status by 2044. Additionally, a report published by the Bureau of Labor Statistics reported that the Black population in the U.S. workforce is projected to rise from 31.9 million (in 2016) to close to 36 million in 2026. The tides are turning and, therefore, businesses will need to change their views and practices concerning employment diversity. “Approaches we’ve used in the past to quantify a diverse workforce may not be working,” says Christine Gannon, CEO and founder at Brightworks Consulting Creative. “What every business needs right now is diversity of thought and innovative team members who can build and maintain a positive reputation of the organization.” One circumstance literally forcing “diversity of thought” has been the pandemic and its trickling side effects. According to Inc. 5000’s Boss Magazine, “The sectors disproportionately staffed by women have taken the longest to bounce back, and unemployment among females took a sharper dip than for men.” Additional surveys and studies demonstrate that Black employees experienced higher unemployment rates compared with white employees during the pandemic. AB | March - April 2022
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DIVERSE BUSINESS LEADERS TO WATCH IN 2022
“If leadership doesn’t represent the diverse population of the organization, making real progress will be difficult.” — CHRISTINE GANNON
But not all takeaways of the pandemic’s effect on diversity have been grim. “While COVID-19 has had several negative repercussions for businesses, it also represents an outstanding opportunity for improvements in the workplace that could benefit both employees and employers,” says attorney Julia S. Acken, chair of Jennings Strouss’ Diversity and Inclusion Committee. Acken goes on to explain that because many employers adopted flexible work schedules, allowed remote work and introduced other malleable workplace approaches, it has made the workforce “more open to diverse groups of employees with different backgrounds.” Starting at the top As with most business strategies and implementations, change begins with management and executive leadership — and diversity and inclusion in the workforce is no different. “Shifts or changes within an organization must have buy-in from the top down to gain momentum,” says Monica Villalobos, president and CEO of the Arizona Hispanic Chamber of Commerce. “It is key to the implementation of any diversity, equity, access and inclusion (DEAI) effort; otherwise it’s like rolling a boulder up hill.” Villalobos references a McKinsey study, in which racially diverse executive teams provide 35% higher earnings before interest, taxes, depreciation, and 18
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amortization (EBITDA) and 33% more long-term value creation. While Fortune reported a record number of women holding the position of chief executive officers of Fortune 500 companies in 2021 (with 41 female CEOs), that’s still only 8.1%. And, another McKinsey report reflects that of the 23% of female employees holding a C-suite level job, only 4% are women of color. “If leadership doesn’t represent the diverse population of the organization, making real progress will be difficult,” Gannon says. “The leadership team must show a strong representation of the diverse nature of the workforce.” When leadership reflects representation, it leaves a lasting impression, according to Guido de Koning, senior vice president of people operations at Upgrade. “I’ve seen the impact that diverse leaders have on others that are contemplating their career,” he says. “A Black physician became a physician precisely because as a young boy he met a Black physician. He didn’t think it was possible for him to become one until that very day. He ended up becoming a highly successful physician leader, with a great impact on his community.” Diving into diversity solutions In addition to having and encouraging diverse leadership, some Arizona businesses are embracing a variety of actionable and innovative strategies to further implement diversification. “I am a big proponent of training by independent third parties,” Acken says.
“No one likes to admit that they might have a lack of diversity in their workforce, or that they, themselves, may have certain subconscious biases that impact their decision-making at work. But until you can admit these things, you cannot remedy the problem.” Acken goes on to note that there are several talented and creative professionals in Arizona (and nationally) who can help businesses identify some of the issues that might be hurting their ability to diversify, and who specialize in unveiling these subconscious biases that perpetuate a lack of diversity. “At Upgrade, we use employee resource groups (ERGs) as a way to facilitate and cultivate diversity in our workplace,” de Koning explains. “We currently have ERGs for Pride, Hispanic Heritage, Working Parents and Black Professionals.” Villalobos echoes de Koning’s assessment in utilizing ERGs, adding that, “Supplier diversity and recruitment are additional areas that can be easily measured — holding companies accountable for DEAI across race, gender, ability and other disadvantaged groups.” In closing, Aken says, “I have complete faith in Arizonans’ ability to continue improving the workplace by creating a more welcoming, inclusive, and equitable environments.” This issue of Az Business celebrates the amazing meting pot that defines Arizona business as we cast a spotlight on some of the most influential diverse business leaders in the state. Meet them over the next few pages.
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DIVERSE BUSINESS LEADERS TO WATCH IN 2022
Edmond Baker, MD medical director Equality Health
Sandra Bassett president and CEO West Valley Arts
Garland Brown co-founder Weiss Brown
Elizabeth S. Chatham partner Stinson
After serving in the U.S. Army, Dr. Baker began a career at DuPont, where he became the first African-American account manager. After 15 years, he left his job to pursue his dream of medicine.
Bassett has a rich background in executive and managerial positions in the for-profit sector for brands such as Dr. Pepper Snapple Group, Hostess Brand and Mars. She is also a professional musician.
Brown is a technology lawyer that helps companies from startups to publicly trade corporations with matters ranging from Internet law, intellectual property, licensing and general counsel services.
Chatham is a successful, experienced and agile immigration attorney assisting Fortune 500, fast growth companies and educational institutions in navigating the complexities and nuances of corporate U.S. immigration law and compliance.
Delma Herrera
Vice president of field sales, West Region Cox Communications Background: Born in Nogales, Sonora, Mexico, Herrera is responsible for leading field sales in the Arizona, Las Vegas, and California markets. She also helped establish Hola the National Latino(a) employee resource group at Cox. Source of pride: “As a child of immigrants, I am proud of living up to the dreams my parents had for us. When my parents discussed the opportunity presented to my father to immigrate to the U.S. with his job, the main driver for that decision was that his children would have better opportunities in this country. He sacrificed so much, first leaving his entire family behind, then sleeping on the floor in the back of the carpenter’s shop where he worked. From my parents, I learned that no matter what we do in life, we had to give it our all, never just ‘try.’ We must put in the hard work, learn the job and then do it better than anyone thought it could be done. No matter the professional accomplishment, I am most proud of living up to the dreams our parents had for us.”
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Marcos Garay director of multicultural banking National Bank of Arizona Garay is an accomplished senior executive with extensive international experience and operating success in financial services in the U.S. and Mexico.
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DIVERSE BUSINESS LEADERS TO WATCH IN 2022
Angela Hughey President and founder ONE Community
Background: As president of ONE Community and ONE Community Foundation, Hughey works with LGBTQ, business and political communities on issues of diversity, equity and inclusion and their impact on our economy. In 2013, she launched the UNITY Pledge to advance workplace equality and equal treatment for LGBTQ individuals, which has become the nation’s largest equality pledge with 3,400 business signers. SOURCE OF PRIDE: “This January, we launched the bipartisan Equality and Fairness for all American Coalition (EQFFAA) nationwide to advance federal civil rights protections for LGBTQ Americans. The coalition is composed of diverse business, LGBTQ, elected, and faith leaders, and also paved the way for the introduction of the bipartisan Equality and Fairness for all Arizonans Act at the State Legislature to update Arizona’s nondiscirmination law to include LGBTQ people. I am proud of our efforts and commitment to unite not divide.” VALUE OF DIVERSE LEADERSHIP: “Diverse leadership cultivates diverse talent and diverse perspectives, which leads to better problem solving and solutions for businesses and organizations.”
Sheila Kloefkorn president and CEO KEO Marketing Kloefkorn is a marketing expert who has helped hundreds of enterprises increase revenues by hundreds of millions of dollars. She is also an advocate for LGBTQ rights and was part of the first female couple to get a marriage license in Arizona.
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Tomás León president Equality Health Foundation With over two decades of experience in diversity and inclusion, health equity, policy advocacy, philanthropy and marketing communications, León brings an innovative, purpose-driven approach to advancing equity, diversity and inclusion in healthcare to underserved communities.
Tom “Mando” Kapita principal Terracon A native of Zambia, Kapita is tasked with strengthening and expanding Terracon’s GeoDesign services. He is responsible for client development and management, mentoring and managing staff, and project review approval in charge of GeoDesign project quality review.
Tanya M. Muñiz CFO Valley of the Sun United Way Muñiz has held various leadership roles within United Way and in the community. She serves on the United Way Diversity and Inclusion Council, where she led efforts to leverage the diversity of Latinos/ Hispanics to create more inclusive economies.
Desirae Outcalt vice president Bell Bank Outcalt has worked her way up in finance – starting as a part-time teller at an Arizona credit union and eventually running its second largest branch. In her current role, she specializes in helping those who have complex treasury needs.
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DIVERSE BUSINESS LEADERS TO WATCH IN 2022
Michael Jones
President and CEO || Delta Dental of Arizona Background: Jones leads Delta Dental of Arizona and the Delta Dental of Arizona Foundation, which has invested more than $16 million in community outreach in the past 10 years. Jones served as managing director Midwest healthcare provider lead for Accenture before joining Delta Dental in October 2021. Prior, he served as managing partner at M. Jones & Associates and in executive-level roles at BeTheMatch and CIGNA Behavioral Health. Goals: “I want to build on Delta Dental’s stellar reputation in the market as I collaborate with the board, our executive team, employees and our provider partners to improve the oral health of even more Arizonans. I also look forward to championing oral health initiatives for at-risk populations through the foundation.” Importance of diversity: “I believe that diversity (multi-faceted representation) and inclusion (valuing different perspectives) promotes an enlightened environment with an enhanced ability to problem solve, innovate and positively impact a community’s growth potential. Diverse leadership brings a wealth of first-person, authentic experiences that inspire unique thinking and an inclusive workforce.” Pearlette Ramos CEO, Three Extraordinary Women Ramos is a transformational leader, lawyer and DEI advocate. She co-leads a nonprofit, Sisters Talk About Race, with a goal of ending systemic racism. She is also a member of OneAZ Credit Union’s board of directors.
Robin Reed president and CEO, Black Chamber of Arizona Reed has more than 40 years of experience as a business owner, serial entrepreneur and business consultant. He is also president of Occam Sustainability Partners, and principal and partner with EmFluent.
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Humphrey Shin Phoenix market president FirstBank
Krizia Verplancke attorney Davis Miles McGuire Gardner
Lee Yaiva CEO Scottsdale Recovery Center
Shin has been at FirstBank since 2004, when he started as a management trainee. Shin has helped FirstBank’s Arizona assets grow by 14.3% to $1.1 billion in the last year.
Verplancke practices in the areas of complex commercial litigation, real estate litigation, employment litigation and general civil litigation. She was named named 2019 Latina Leader of Tomorrow by the Latina Mentoring Project.
Yaiva brings 16 years of experience in behavioral health and addiction treatment to his role. He has served as the tribal liaison for numerous campaigns incorporating a holistic approach to health and healing.
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FINANCIAL SERVICES
CREDIT REPORT Here’s why Arizona credit unions are seeing record growth and success By KYLE BACKER
O
n Dec. 6, 2021, the National Credit Union Administration (NCUA) reported that federally insured credit unions added 4.9 million members throughout the year, increasing total membership across the country to 128.6 million in the third quarter of 2021. Many individuals and businesses are choosing to bank with a credit union, and that trend is clearly represented in Arizona.
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OneAZ Credit Union has experienced record-breaking membership growth of around 7% annually, according to CEO Kim Reedy. “Historically, we used to have around 10,000 to 12,000 new members joining us each year,” he explains. “In 2020, that number was the largest we’d ever had — 16,000 members. Then, last year, we were at 19,000 new members.” Tyler Woodward, assistant vice president of strategy and product management at Desert Financial Credit Union, notes that the organization is serving more people than ever before. “At the start of 2020, we had just over 320,000 members. We ended 2021 with 390,000 members, meaning we’ve grown by just over 20% in the past two years.” Credit unions are integral to the functioning of the economy in times of calm and calamity. Here’s why many Arizonans are opening accounts with these institutions, how they provided relief throughout the pandemic and what potential challenges lie ahead. Unique institutions For the uninitiated, the distinction between credit unions and traditional banks may seem murky, but there are important differentiators. Elisa Ross, vice president of marketing, sales and service at Hughes Federal Credit Union says that credit unions are unique in that they “are member-owned financial cooperatives in existence for the benefit of the member/owners.” In other words, a credit union does not have stock that is traded on Wall Street like the big banks. Rather than paying dividends to stockholders, Reedy explains, “Our profits go right back to our members in the form of higher deposit rates, lower loan rates and more branches. We are nonprofit, and we give our returns to our membership and the community. That’s the fundamental AB | March - April 2022
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FINANCIAL SERVICES
philosophical difference between the banks and us. We want to improve lives. We don’t try to maximize stock price.” A common misconception is that credit unions aren’t as sophisticated in their operations as big banks because of their organizational structure. Jason Paprocki, COO at Arizona Federal Credit Union, says, “That can be true on an exception basis, but in our case, we have a full suite of services for both consumers and small businesses. Deposit accounts, loans, insurance, investments — we can do anything that a big bank can, including the ability to connect with other credit unions and get our members access to over 30,000 ATMs nationwide, which provides the convenience level of a large national bank. You don’t have to give up anything to go to a credit union.” Moreover, since the people who bank with a credit union are the owners, they reap the rewards of wise business decisions. Woodward notes that over the past five years, Desert Financial’s giveback bonus has returned $54 million to members. Another advantage of banking with these types of institutions is how they benefit Arizona’s economy and focus on the community, according to Keysha Webb, vice president of remote delivery and innovation at Vantage West Credit Union. “I don’t think people understand that their dollars stay locally. When people apply for a loan, that’s handled within our state,” she says. “We’re also proud of having local decision makers to help decide what rates we’re able to provide or what Arizonans are looking for when it comes to pandemic relief.” A helping hand While the economic recovery has progressed more smoothly than expected during the initial wave of the pandemic, there have been significant hardships borne by people and businesses alike. In response, credit unions in Arizona sought to alleviate stress where they could. “At the beginning of the pandemic, we jumped into action,” says Jennifer Kimmell, senior vice president and chief marketing officer at TruWest Credit Union. “We provided a variety of options for our members based upon their needs, from skipping one or two payments to doing a complete loan modification. “About 95% of our members who requested loan relief were able to resume payments as agreed on those loans,” she says. “We’re proud of that because it shows that we worked closely with members to help them make the right decision as they got on their feet and back to business as usual.” Many credit unions had similar assistance available for their members, including mortgage forbearance, waived ATM fees and 28
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JENNIFER KIMMELL
JASON PAPROCKI
KIM REEDY
financial counseling. Businesses were also offered relief, primarily in the form of paycheck protection program (PPP) loans. Webb notes that Vantage West processed approximately $26 million in PPP loans to help keep local companies afloat and workers employed. Likewise, Desert Financial transacted over $100 million in PPP loans, according to Woodward. Adds Paprocki, “I’ve been in this industry for 29 years, and this was the fastest any program came together. This was a unique scenario where we were learning about PPP loans as an institution at the same time as our members.” To help alleviate the anxiety of people wanting to access PPP funds, Arizona Federal created a queue on its website where people could provide their contact information to hold a place in line as more information was released and applications became available. “We we’re hopefully saying, ‘You’ve trusted us with your financial needs to this point. We’re learning as fast as we can, so trust us going forward and we’ll be there to help you out,’” Paprocki explains. Root and branch The public health crisis caused by the coronavirus meant that most businesses shut down or reduced capacity as scientists raced to develop a COVID-19 vaccine. For credit union members, that meant their banking needs had to be met primarily through digital means. As a result, mobile banking activity has skyrocketed since March 2020. Reedy reports that OneAZ saw an increase of 30%; Paprocki notes Arizona Federal had an initial jump of approximately 50%, which has since settled to about 15% above pre-pandemic levels; and Woodward says Desert Financial’s online banking system had twice the number of logins in December 2021 compared to January 2020. Even if people were reluctant to use the internet to deposit a check or monitor their balance, many have since grown to appreciate its ease of use, including Woodward’s father. “My 30
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TYLER WOODWARD
dad just didn’t trust it at first. But he was forced to use it and now that’s what he does all the time,” he explains. “It’s like any other technology, right? Once you start to use it, you realize the convenience and it becomes part of your habit.” If members can do so much from the palm of their hands, what does that mean for the future of branches? “Our data shows that 40% of our branch transaction volume hasn’t come back,” Kimmell says. “The volume hasn’t left, it just moved channels to online banking.” Complicating matters further is the lack of qualified workers. “Labor is a real problem,” Kimmell continues. “TruWest recently decided to close some of our slower branches on Saturdays to keep our bigger branches open. We closed 50% of our Arizona and Texas branches last Saturday because we had to redeploy employees to other locations due to illness. “Labor shortages have a longer-term effect than just keeping branches open on Saturdays,” Kimmell says. “Credit unions traditionally grow talent. They hire a teller and then 40 years later, that person might be your CEO. Stories like that run rampant throughout the credit union industry. I’m one of them.” Still, many in the sector believe branches will continue operations, even if they become smaller and more focused on financial advice. During the early stages of the pandemic, Paprocki recalls conversations about branch banking being forever changed. “But we realized that the branch is still here to stay, and we don’t have any plans to close any of them, because we think they’re still the destination for consultation and problem solving,” he says. “You still can’t replace sitting across from someone when you’ve got fraud on your account, or you’ve lost a card.” Reedy adds that OneAZ is fully committed to its branch system, with plans to add approximately 10 new locations over the next 10 years. “More people are seeing the advantage of being a member of a credit union and coming to us,” he concludes. “We’re here to help them improve their lives.”
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HEALTHCARE
UNMASKING A PROBLEM Difficulty hearing people talk while wearing face masks has caused many to discover hearing impairments By ERIN THORBURN
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hroughout the pandemic, many of us have observed how face masks have impacted people’s ability to hear clearly. Think about how many times you’ve needed a mask-wearing restaurant server to repeat the special of the day. Or, maybe you’ve caught yourself staring blankly at your child, friend or coworker when asked a question you couldn’t quite decipher through an N-95 or cloth mask. KORY CASTRO For many, these “every once and a while” occurrences may be annoying or frustrating. For the 466 million deaf and hearing-impaired people in the U.S., face masks — while serving their safety functions — have led to lasting challenges. Communication barriers such as not
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being able to read lips, missing facial cues and mannerisms have compounded feelings of exclusion and declining mental and social health for people with hearing problems. Coinciding with the challenges of this existing hearing impaired and deaf population is another group: People who have come to learn that they may have a yet-to-be diagnosed hearing condition. An ah-ha hearing (or not) moment “It’s a little bit hard to gauge if we are seeing a huge surge of people coming in because they’ve been wearing masks, or, in particular, because other people are wearing masks,” says Kory Castro, board-certified hearing instrument specialist and co-owner at Beltone West. “But I can say that it’s not a conversation I’ve ever had before with a patient before the pandemic in regards to masks.” Castro goes on to explain that communication difficulty due to face masks, for many patients, has been more or less the straw that broke the camel’s back. “I noticed that people were starting to recognize that maybe they did have a problem before and now they’re starting to admit to themselves that it’s actually an issue that they need to get some help for,” he says. Crash course: How face masks affect communication When discussing hearing difficulties or loss, it’s common to focus on the ears, specifically on how well those ears process sound. But, Castro helps reveal that there’s more to the story. It’s important to link hearing loss with the ability to communicate effectively, and this includes observing how others speak.
“A lot of people don’t recognize that a big component of speech recognition is visual cues. If you aren’t receiving that kind of signal from somebody, then it can be a little bit more difficult understanding what somebody is saying,” Castro adds, “especially if you have hearing loss.” And here’s where face masks make things complicated. For deeper insight into how face masks affect communication, Castro offers a practical demonstration — and one you can try yourself. “If you were to take your hand and cover your mouth and talk, all those consonants that you hear just become more muffled. And that’s what masks are doing. Not as bad as me covering my mouth with my hand, but definitely to a point. And those masks or face coverings are affecting the speech range that covers high frequencies which cover the consonant sounds.” Interestingly, consonants fall into a higher frequency range which also happens to be the range for moderate hearing loss. “Most people with nerve damage hearing loss or sensory neural hearing loss — which is most common and is typically age-related or noise-related — have trouble processing high frequencies,” Castro says. Hearing aids here we come? If you have occasional to frequent difficulty understanding people wearing face masks does it automatically mean a hearing impairment diagnosis is in your future? Or, that hearing aids are on the way? Not necessarily. One of the best things Castro advises, should you find yourself asking people wearing masks to repeat themselves several times and/or are age 55 and older, is to get a hearing test. This will at least set a baseline moving forward. “There’s still definitely a stigma around hearing loss and hearing aids,” Castro says. “However, the technology has improved immensely over the last few years. And it’s not like it was for grandparents 50 years ago. It’s a much more sophisticated device. It’s definitely able to help a lot more people.” According to the National Institute on Deafness and Other Communication Disorders, an estimated 28.8 million adults in the U.S. could benefit from using hearing aids. Among adults ages 70 and older with hearing loss that could benefit from using them, fewer than one in three ever have. Additionally, when it comes to diagnosing hearing loss, it’s important to be proactive. “The longer it goes untreated for those people, the more difficult it becomes to treat later on in the future,” Castro explains. While not all mask wearers will accommodate those with hearing loss and impairment, if you want to be supportive to a hearing-impaired family member or friend, there are things you can do. Castro suggests wearing transparent face shields or masks with clear, plastic “windows” so your mouth is visible. It’s also helpful to speak slowly and enunciate your words. And try not to yell. “When you raise your voice, you’re really just raising the part that they already can probably hear just fine. And so to them, it sounds louder but it’s not any clearer,” he cautions. And, if they haven’t already, you can gently suggest scheduling a hearing test (and maybe one for you too, it can’t hurt!). AB | March - April 2022
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ASSOCIATION FOR CORPORATE GROWTH
LET’S MAKE
A DEAL With upwards of $2 trillion chasing deals, is now the time to sell your business? By KYLE BACKER
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hen Christopher Rogers, member at Jennings Strouss Law Firm and president of the Association for Corporate Growth (ACG) Arizona, is out with friends and they ask about his legal practice, he says he works in mergers and acquisitions (M&A). “When I was growing up and somebody mentioned M&A, I thought of Gordon Gekko in ‘Wall Street’ and these complicated, big deals. And sure, those happen, but M&A is a broad term that describes financial transactions that can encompass the sale of a family business for $200,000 or investments into earlystage companies. All deals aren’t like when Facebook bought Instagram,” he notes. Even though they don’t always make the headlines of the Wall Street Journal, small to mid-size acquisitions are big business, according to Christine Nowaczyk, Arizona corporate banking executive for BOK Financial and chair elect of ACG Global’s board of directors. “Main Street companies represent a significant portion of the national economy and GDP (gross domestic 34
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JIM AFINOWICH
CHRISTINE NOWACZYK
product),” she says. “It’s these middlemarket companies that rely on groups like ACG and its member professionals to be resources and help businesses grow by accessing capital or guiding owners through succession planning, whether it be a sale to employees, a third party or to private capital.” Rogers describes the association as a nexus for people in the M&A space to network and foster a sense of community. “We often think of those in the M&A field as just the investment bankers,” Rogers says. “But it takes all kinds. There are people who come from an insurance perspective, bankers who provide debt to finance transactions, brokers, accountants and lawyers. There’s this great mishmash of people in the M&A space and they all bring their own viewpoints and talents to help these things become possible. It’s where deals get done.” Uncommon 2021 Last year brought a raft of changes. Vaccines that vastly reduce the lethality of COVID-19 became widely available for Americans. A new administration entered the White House. Businesses continued to struggle with supply chain issues as inflation rose to rates not seen since Ronald Reagan was president. 36
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RICK SHAPIRO
“People thought that once the pandemic started the M&A market was going to completely tank. From my experience, both professionally and anecdotally, that wasn’t the case. We still had a robust market,” Rogers notes. Indeed, the business of selling businesses boomed, with 2021 recording historic levels of M&A activity. So why were businesses being bought up at an impressive rate? One cause was pent-up demand. Rick Shapiro, president and CEO of The Wheatley Group, explains, “the 2021 uptick was driven partly by a backlog of deals that hit the pause button to ride out the uncertainty of 2020.” Elise Thorpe, principal at Lovitt & Touché and past ACG Arizona president, agrees that initial pandemic-related closures led to deals being postponed until 2021, but adds that the coronavirus wasn’t the only reason for elevated M&A activity. “There were concerns around changes to capital gains taxes,” Thorpe says. “Businesses owners wanted to avoid a big tax bill, which also helped spur the high levels of activity in 2021.” Some business owners were calling Jim Afinowich, founding principal at IBG Fox & Fin, hoping to close a deal before the year’s end.
ELISE THORPE
“If you look at the discussion about potential increase in capital gains taxes, it was upwards of 20%,” he says. “Imagine selling a business for $10 million. If you closed on January 1, $2 million more goes to taxes than if you closed the day before.” Nowaczyk also observed a rush to exit over the last year and a half due to anticipated tax changes. On the other hand, Shapiro believes it was a minor factor. “Taxes change depending on the administration in power. Sometimes they’re up, sometimes they’re down,” he says. “Regardless of the fact taxes may go up, private equity continues to do transactions and make acquisitions, notwithstanding the various challenges.” The year ahead Even if a backlog of demand and the specter of tax hikes spurred dealmaking in 2021, Shapiro notes that there’s still an abundance of dry powder in the market, or capital that needs to be deployed. “As a result,” he contends, “2022 could reach comparable levels as was manifested in 2021.” This sentiment aligns with the results of ACG Global’s 2022 M&A Outlook Survey, which found that 80% of its members maintain a positive outlook for M&A activity in 2022.
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“My job is as much a matchmaker as it is a salesman — trying to find the right buyer to match with the right seller.” — JIM AFINOWICH
Afinowich has heard the current market being described as “frothy” because of low interest rates and ample dry powder. He estimates there was $1.5 trillion of private equity looking for businesses before the pandemic, and now there is upwards of $2 trillion chasing deals. “There’s more money out there to be invested than there are good investments to put the money in. That creates a very good market,” he says. It will take time to absorb that demand, which is why Afinowich thinks M&A activity will keep pace in 2022. From Rogers’ perspective, he also sees signs of continued momentum. “There may not be that same pent-up pressure this year as there was between 2020 and 2021, but you still have attractive valuations, which supports the willingness of business owners to look at selling their business,” Rogers explains. He adds that favorable economic indicators, such as low unemployment, a high performing stock market and the availability of cheap debt create a fertile environment for dealmaking in 2022. Nowaczyk also believes that the market is going to continue to be strong, but the landscape is changing. “Investors realize that there’s a lot of overvaluation in the market, and I think people are hoping that it will normalize more in 2022,” she says. The dry powder in the market and low interest rates are positive indicators, but Nowaczyk predicts that may change by the end of the year. “You’re going to have 38
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changes to the tax laws, interest rates will start to rise and you’ll see a change in valuations that will impact activity in 2022,” she says. Time to retire? With plenty of private equity looking to acquire companies, Arizona business owners can negotiate a deal from a position of strength. Thorpe mentions that she has multiple clients that are either on the buying end or are being purchased. It’s a good time to sell, so long as the time is right for all stakeholders, according to Nowaczyk. “What we’re seeing now is that owners are exiting the business because their valuation meets their expectation level or because it’s just the right the right time for them personally,” she says. “You have to realize that business owners generally only get one shot at this — and for most, the company represents their life’s work. A lot of people feel like now’s the right time.” Shapiro echoes Nowaczyk’s sentiment: “There are lots of lenders looking to finance transactions and interest rates are still relatively low. There’s also an abundance of prospective buyers out there — whether you’re talking about private equity or strategic corporate buyers — looking to acquire smaller companies, where there might be synergistic value,” he says. This doesn’t mean that every company will immediately be bought up should the owner choose to sell. An investor sees the
acquisition of a business as an asset, and he or she will take time to evaluate their options. “When you talk about money in private equity, those people are professional buyers. I was talking to a gentleman who runs a private equity company recently, and he said they look at 500 or 600 deals a year and close on three or four,” Afinowich explains. “My job is as much a matchmaker as it is a salesman — trying to find the right buyer to match with the right seller.” Companies that are prime candidates to sell have certain characteristics that every buyer looks for. Afinowich notes that risk tolerances vary, and businesses with solid fundamentals and predictable earnings often get more offers. “We typically go to market without a price on a business and run a gentlemanly auction process with buyers competing against each other. When they know there’s competition, they often pay substantially more,” he says. A recent deal Afinowich worked on received bids ranging from $12 million to $18 million, with the latter amount winding up as the sale price. The owner mentioned that without a professional broker, he would’ve taken the initial $12 million offer, but instead secured a 50% increase. Afinowich concludes that owners need to make preparations before looking for buyers. “It’s kind of like getting a house ready to sell,” he says. “You put a fresh coat of paint on it and clean it up.”
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TIPS FOR POTENTIAL SELLERS Allot yourself the proper amount of time to make the sale. “All of us advise owners that it generally takes a couple of years to position the business for a sale to maximize the valuation,” says Christine Nowaczyk, Arizona corporate banking executive for BOK Financial and chair elect of ACG Global’s board of directors.
Highlight your advantages. “Understand how your company is distinguished from — and superior to — the competition,” notes Rick Shapiro, president and CEO of The Wheatley Group. “Mitigate your weaknesses and enhance your strengths.”
Hire the experts. “Mergers and acquisitions is a team sport,” says Jim Afinowich, founding principal at IBG Fox & Fin. “I’m biased, but you need an intermediary like me, a good attorney, accountant and financial planner.” “The first thing a business owner should do when contemplating a transaction is put a team in place. That starts with getting a competent sell-side advisor — somebody who knows how these deals come together,” says Christopher Rogers, member at Jennings Strouss. “A good investment banker knows how to maximize value in a transaction in ways that the principal of the company might not be able to do themselves.”
Ensure financials are in order.
Focus on people and policies. “Have the right management team in place, along with systems and procedures that make a business more attractive,” Afinowich suggests.
Resolve any outstanding lawsuits. “You don’t want to have any problematic legal issues when you go to market, because who wants to buy something that has looming or existing lawsuits?” Shapiro says.
Don’t take the first offer.
“It’s about removing excess costs. Maybe there are lifestyle costs in the business or employees on the payroll that aren’t integral to the operations,” Nowaczyk explains. “Upgrade your financial statements and understand the true cash flow of the business.”
“Around 99% of the time, that first offer will not be the best offer. And when a buyer says to you, ‘this is my best and final offer,’ my opinion is that they’re just beginning to negotiate,” Shapiro contends.
“A business advisor can help you clean up any messes and get your finances are ready to put it on the market,” says Elise Thorpe, principal at Lovitt & Touché. “There are a lot of companies out there that don’t know what that needs to look like.”
“Say someone contacts you out of the clear blue and they’re interested in buying your business. They offer you a good price, you think, ‘I’m going to save a broker’s commission.’ We have a saying in our firm that one buyer is no buyer,” Afinowich says. “You ought to have multiple buyers in the mix, not just one. That’s going to maximize your value.”
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ARIZONA FORWARD
CHANGING ELEMENTS
Here are the finalists for Arizona Forward’s Environmental Excellence Awards By ERIN THORBURN
L
ook no further than to the 2020-21 Arizona Forward Environmental Excellence Awards finalists as proof of how much Arizona Forward has helped shape the environmental progress and wellbeing throughout the Grand Canyon State. Each project — from those in the Climate Action category to finalists in the Healthy Communities group — represents a unique and valuable environmental contribution to the state. And, the variety exemplified in the awards finalists’ pool further showcases how far Arizona Forward has come over four decades in operation. Joining Climate Action Solutions and Healthy Communities categories, additional Arizona Forward Environmental Excellence Award nominations were gathered in the areas of Circular Economy, Buildings, Structures and Landscape Design, Art in Public Places, Environmental Education and
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Communication, Technology Innovation, Natural Environment Preservation and the renowned Governor’s Award. “Looking back over the past 40 years at all of the projects submitted in Arizona Forward’s Environmental Excellence Awards program, it is easy to see the vision, hard work and collaboration by the business community, municipalities, architects, engineers and others,” says Lori Singleton, Arizona Forward president and CEO. Singleton encapsulates the impact Arizona Forward and its colleagues have achieved over the years: “The breadth and depth of the projects symbolize how Arizonans can come together for a more sustainable future,” she says. “The program continues to lift up environmental stewardship and hopefully will inspire excellence for the next 40 years.” Here are the finalists for the 40th Annual Environmental Excellence Awards. Winners will be announced March 19, 2022.
COLORING OUR WORLD: Park Central, which has be redeveloped by Plaza Companies and Holualoa Companies, is an Environmental Excellence Awards finalist in multiple categories.
Circular Economy Solutions finalists Best practices and/or programs that reduce waste and improve productivity of resources, enabling a circular system that achieves positive environmental and economic results. • Arizona Students Recycling Used Technology: (AZ StRUT) • Florence Copper Production Test Facility: Florence Copper • Water Conservation in Semiconductor Manufacturing: Intel Corporation Buildings, Structures and Landscape Design finalists Civic, commercial or institutional buildings, structures or landscapes that represent elements that preserve environmental quality, incorporate sustainability, integrate with the natural or built environment and create aesthetic appreciation. Civic • A sante Branch Library: City of Surprise, Maricopa County Library District • City of Flagstaff Municipal Court Facility: City of Flagstaff Municipal Court, CGL Companies, Kinney Construction Services • Fraesfield and Granite Mountain Trailheads: City of Scottsdale, SmithGroup • Highline Canal Multi-use Path Project: City of Tempe, Coffman Studio • USS Arizona Memorial Gardens at Salt River: Salt River Pima Maricopa Indian Community, J2 Engineering & Environmental Design, BCA Architects Commercial or Institutional • A rizona State University Hayden Library Reinvention: ASU, Ayers Saint Gross, Holder Construction Company • A rizona State University Student Pavilion: ASU, Weddle Gilmore Black Rock Studio • Coconino County Medical Examiner’s Facility: Coconino County, Kinney Construction Services, APMI • Helios Education Foundation & Vince Roig Convening Center: Helios Education Foundation, Architekton, Betts Real Estate Advisors
Climate Action finalists Solutions-oriented actions to address climate risks in Arizona with a future-focused perspective that demonstrates measurable improvements in areas such as carbon reduction, heat island mitigation and water availability. • Arizona Grand Resort & Spa: Classic Hotels & Resorts, ON Advertising • Arizona Trail Rainwater Collector: Arizona Trail Association • Avondale Drive Electric Project: City of Avondale • Cool Pavement Program: City of Phoenix – Street Transportation • Driving Energy Innovation Forward – APS Solar Communities & Take Charge AZ: Arizona Public Service • Flagstaff’s Carbon Neutrality Plan: City of Flagstaff • Goodyear Bicycle and Pedestrian Path Shade Study: City of Goodyear, Coffman Studio • Low Impact Development Concepts for the Granite Reef Watershed: City of Scottsdale, Coffman Studio
Historic Preservation and Adaptive Reuse • 225 W. Madison: Maricopa County, Facilities Management Department • The Charles T. Hayden House (La Casa Vieja) Rehabilitation: City of Tempe, Motley Design Group, Hensel-Phelps Development, Adobe Technology Commercial or Civic • Gilbert Regional Park Phase 1A: Town of Gilbert, Marc Taylor • Hotel Adeline: ESI Ventures, Young Design Group, Development Services, Profab Construction, Studio 11 Design • Paloma Community Park Phase 1: City of Peoria, Valley Rain Construction, Hunter Contracting, Environmental Planning Group • The Grand at Papago Park Center: Papago Park Center • Western Maricopa Education Center Northwest Campus: Western Maricopa Education Center, SPS+ Architects, Logan Simpson Design, McCarthy Building AB | March - April 2022
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ARIZONA FORWARD
SURPRISE FINALIST: The City of Surprise’s Asante Branch Library is an Environmental Excellence Awards finalist in the Buildings, Structures and Landscape category.
Site Development finalists Contributions that enhance the urban environment within largescale commercial, industrial and public work sectors and could include projects related to waste or water treatment facilities, roadways, bridges, canals and other types of infrastructure. • Salt River Siphon Repair: Central Arizona Project, AchenGardner Construction • The Grand at Papago Park Center: Papago Park Center • The Newton District: Venue Projects, John Douglas Architects • Twin Peaks/Blue Bonnet Gravity Sewer Project: Pima County, Engineering and Environmental Consultants, Town of Marana • Valley Metro Greenfield Bus Operations Center: Valley Metro, Veregy • Western Maricopa Education Center Northwest Campus: Western Maricopa Education Center, SPS+ Architects, Logan Simpson Design, McCarthy Building Art in Public Places finalists Creative works of art visually accessible to the general public that contribute to aesthetic appreciation, add to a sustainable-based culture and encourage sustainability (public or privately owned). • Good Trouble Bucket: Joan Baron and Gloria MartinezGranados, Arizona Commission on the Arts • Miami Pots: Town of Miami • Park Central: Plaza Companies, ON Advertising, Holualoa Companies • The Grand at Papago Park Center: Papago Park Center • Traceries: Scottsdale Arts • Veterans Reflection Circle: City of Surprise • Water=Life: City of Mesa 44
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Healthy Communities finalists Projects, policies or plans that promote the health and wellness of communities in rural or urban areas and could include neighborhood revitalization, community redevelopment and cross-sector collaborations. • Desert Sky Park: Town of Gilbert, Hunter Contracting, KimleyHorn Associates, Siteworks Landscape Development and Maintenance, Pacific Aquascape International, Kimbrell Electric, Overton Builders • Edison Eastlake Community Master Plan: Gorman & Company, Norris Design • Equitable Engagement in Sedona’s Immigrant Community: City of Sedona, Northern Arizona Institutions for Community Leadership • Gilbert Regional Park Phase 1A: Town of Gilbert, Marc Taylor 2020-21 Heathly Communities fnalists • Heritage at Surprise: City of Surprise, Gorman & Company • Liberty Wildlife Feather Repository: Liberty Wildlife • Optima Kierland Center: Optima, J. Lauren PR • Paloma Community Park Phase 1: City of Peoria, Valley Rain Construction, Hunter Contracting, Environmental Planning Group • Park Central: Plaza Companies, ON Advertising, Holualoa Companies • Phoenix Metropolitan Urban Forestry Roundtable: City of Phoenix, Arizona Sustainability Alliance, American Forests • Rio Salado Oeste: Dig Studio • U-Haul Healthier You: U-Haul International • Water Quality Improvement and Community Development
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ARIZONA FORWARD in Greenlee County: Gila Watershed Partnership of Arizona, Southeastern Arizona Clean & Beautiful, Friends of the Frisco – The Rivers of Greenlee County Environmental Education and Communication finalists Achievements in education and/or communication that are designed for a wide audience and produce increased awareness, change in behavior or a deeper appreciation of sustainability initiatives. • A rizona Water Blueprint: ASU Kyl Center for Water Policy, ASU Morrison Institute for Public Policy • Bats & Agave Initiative: Collaboration for Conservation & Education: Freeport McMoRan • Conserve and Protect Golden Ale: Mother Road Brewing Company, Arizona Game and Fish Department • Ensuring the Health of the Verde River for People and Nature: First-ever Report Card: The Nature Conservancy, Friends of the Verde River • Recycle Right Wizard Regional Partnership: City of Phoenix, Keep Phoenix Beautiful • Walkable Cities – Revitalization, Vibrancy, and Sustainable Consumption: Carlos J. L. Balsas, Ind. Scholar, State University of New York Press
Natural Environment Preservation finalists Improvements to the natural environment through projects such as hiking trails, riparian areas, preserves, trailheads, parks and habitat restoration. • Fraesfield and Granite Mountain Trailheads: City of Scottsdale, SmithGroup • The Path to Protection at Oak Creek: Arizona Department of Environmental Quality, Arizona Department of Transportation, Arizona State Parks & Trails, United States Forest Service, National Forest Foundation & Conservation Legacy, Oak Creek Watershed Council, Natural Channel Design.
Governor’s Award finalists Creative initiatives that foster the economic vitality and longterm sustainability of Arizona’s future. Encompass projects, public policies and/or collaborative efforts that make Arizona a better place to live, work and play. • A rizona Water Blueprint: ASU Kyl Center for Water Policy, ASU Morrison Institute for Public Policy • Coconino County Forest Restoration Initiative: Coconino County • Conserve and Protect Golden Ale: Mother Road Brewing Company, Arizona Game and Fish Department • Innovative Water Conservation and Sustainability: Central Technology Innovation finalists Arizona Project, N-Drip Innovative products or processes that use technology to • Optima Kierland Center: Optima, J. Lauren PR encourage sustainable outcomes and demonstrate an economic • Phoenix Household Hazardous Waste: City of Phoenix – Public benefit to positively address environmental issues. Works • East Line Solar: Array Technologies • Pinal Valley Recharge and Recovery Facility: Arizona Water • Florence Copper Production Test Facility: Florence Copper Company, Hunter Contracting, Carollo Engineers, Clear Creek • Innovative Water Conservation and Sustainability Partnership: and Assoc., City of Coolidge, City of Casa Grande, Central Central Arizona Project, Colorado River Indian Tribes Arizona Project • North Gateway Materials Recovery Facility Retrofit: City of Phoenix • SkySong – The ASU Scottsdale Innovation Center: Plaza • Pinal Valley Recharge and Recovery Facility (PVRRF): Arizona Companies, ON Advertising, Holualoa Companies, University Water Company, Hunter Contracting, Carollo Engineers Reality • ROBO Ride: City of Peoria Autonomous Vehicles Project: City of Peoria • The Grand at Papago Park Center: Papago Park Center • ShareTheRide.com Relaunch: Valley Metro • Twin Peaks/Blue Bonnet Gravity Sewer Project: Pima County, • SolarAPP+: Automation to Accelerate Solar Adoption: City of Engineering and Environmental Consultants, Town of Marana Tucson, Pima County Development Services • Western Maricopa Education Center Northwest Campus: • Tres Rios Wastewater Reclamation Facility Nutrient Recovery Western Maricopa Education Center, SPS+ Architects, Logan Project: Pima County, HDR Engineering Simpson Design, McCarthy Building Companies
WATER WORKS: Intel
Corporation’s water conservation efforts earned is a spot as an Environmental Excellence Awards finalist in the Circular Economy Solutions category.
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TECHNOLOGY
PIECES OF THE PUZZLE A look behind the scenes of Phoenix’s explosive growth in technology
Steven G. Zylstra Technology
I
n my bi-monthly technology column for Az Business magazine, I often cover leading technology companies and the innovators helping to grow our technology ecosystem into a nationwide and global leader. The outstanding products and services they produce in Arizona deserve most of the credit for our growth and we rightfully celebrate their contributions. However, a wide variety of organizations are involved in the development of our technology community and Arizona’s economy as a whole. Each plays a different role while often collaborating on statewide programs and events, advocating legislation, and creating opportunities for networking and education. In this column, I recognize a few local nonprofit, trade and government organizations for their contributions. The Arizona Technology Council is a nonprofit that serves as the first point of contact for all Arizona technology companies looking to solve problems using innovative tech-enabled solutions. We strive to eliminate impediments that Arizona technology companies face by assessing each member segment’s needs and proactively identifying and enhancing resources. We also help them maximize
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all the resources the Council has to offer, including numerous events, educational forums and business conferences that bring together leaders, employees and visionaries to move the technology industry forward. Another critical organization in our state’s technology ecosystem is the Arizona Commerce Authority (ACA). One of the crucial roles of the ACA is to attract new businesses in technology and other industries to our state, as well as provide numerous resources to current and prospective companies. The ACA uses a three-pronged approach to advance the overall economy: recruit outof-state companies to expand their operations in Arizona; work with existing companies to grow their business in Arizona and beyond; and partner with entrepreneurs and companies large and small to create new jobs and businesses in targeted industries. There are key synergies between the ACA and Council. We collaborate on many different programs and events aimed at attracting technology companies, and work together on advocating pro-business, pro-growth and pro-technology legislation. One example is ACA CEO and President Sandra Watson and I being sent by Gov. Doug Ducey to the U.S. Capitol to discuss the importance of STEM education in Arizona and express STEM opportunities and challenges present within Phoenix and other communities around our state. Serving a role similar to the ACA’s but solely focused on the Phoenix metropolitan area is the Greater Phoenix Economic Partnership (GPEC). It actively attracts and grows quality businesses and advocates for the competitiveness of the region. As an economic development organization, GPEC works with 22 member communities, Maricopa County and almost 200 private investors to accomplish its mission and serve as a strategic partner to companies across the world as they expand or relocate. GPEC is heavily involved in the growth of the technology community and has launched several campaigns focused on rising technology sectors. A recent example
is GPEC’s “Connect Place” campaign, which promotes growth and investment in all things smart city, Internet of Things and more. This campaign has helped further establish Phoenix as a national leader in these types of technologies and has attracted investment in the city from leading companies like Waymo, Intel, Uber and a variety of startups focused on connected innovation. Additional resources for technologies companies, both current and prospective, are the Arizona Chamber of Commerce and Industry and the Greater Phoenix Chamber. Both organizations advocate pro-business, pro-technology legislation and provide services to help businesses across sectors grow and remain prosperous. Each Chamber works closely with regional organizations like the Council, GPEC and the ACA, along with our respective members, to understand the needs of the technology community and champion pro-growth policies, develop solutions to workforce challenges and more. There is also a deep, wide network of organizations focused on advancing opportunities across various technology subsectors. One of the most important examples in our state is the Flinn Foundation. In 2002, the Flinn Foundation created the Arizona Bioscience Roadmap, which laid out the primary strategy for turning Arizona into a national powerhouse for bioscience. One of the roadmap’s five overarching goals is to turn Arizona into an area that cultivates bio talent. Two of the key strategies outlined within this goal are to greatly improve science, technology, engineering and math (STEM) education and attract/retain top graduate students, doctoral, postdoctoral candidates and physician-scientists. Carrying out these strategies has been a joint effort of technology, bioscience and additional business sectors, and has allowed Arizona to jump from a Tier 5 to a Tier 2 bioscience innovator during the past 20 years. The growth of STEM education is another critical factor in our ability to achieve prominence as a national
technology hub. There are many organizations contributing to this cause and one that is leading the way is the SciTech Institute, a collaborative initiative of the Arizona Technology Council Foundation and the ACA. The Institute works tirelessly to give back to the community by inspiring the next generation of STEM leaders through its Arizona SciTech Festival and Chief Science Officers (CSO) program. The SciTech Festival is the SciTech Institute’s annual celebration of STEM that succeeds in exciting and informing attendees on how STEM is propelling Arizona forward. The festival achieves its success through an engaging series of expos, workshops, conversations, exhibitions and tours held in diverse neighborhoods throughout the state. Even in the midst of the pandemic, the Institute was able to keep STEM education thriving through a plethora of in-person and virtual events in 2021. Launched in fall 2015, the CSO program seeks to enhance the workforce and employability skills of student CSOs and their peers; foster a global network of diverse STEM leaders prepared for college, careers and civic engagement; and increase the engagement of STEM professionals, higher education and community organizations with K-12 schools as both partners and mentors. The initial cohort included 78 Arizona schools and 138 CSOs. Today, there are more than 720 CSOs in 10 states and four countries with new programs being launched every year. There are hundreds of other organizations large and small contributing to the growth of the Arizona technology industry, and they all deserve recognition, particularly for their resiliency over the past few years. For every innovator making a difference and elevating our technology industry, there are many organizations working behind the scenes to support them. The Arizona Technology Council is proud to be a member of this tight-knit and hardworking community. Steven G. Zylstra is the president and CEO of the Arizona Technology Council. AB | March - April 2022
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SAN DIEGO
10
THINGS TO DO IN SAN DIEGO
By ERIN THORBURN
S
an Diego’s natural beauty, recreational offerings and endless entertainment opportunities make it a perfect place for Arizonans to visit. A hop-skip-and-jump flight or a doable day’s drive make this seaside destination a welcome reprieve from desert life. Whether it’s to escape the scorching summer sun in favor of beaches and breezes, a quick romantic weekend getaway in early spring or an extended family adventure at Birch Aquarium and Sea World, San Diego simply doesn’t disappoint. And, in addition to its tried-and-true locales, several new experiences and activities are arriving in the spring and summer for travelers of all ages to enjoy. Take a look at 10 San Diego must-dos during your next trip to the Golden State.
1. Liberty Station. Seattle has Pike’s Place Market; Philadelphia has the Reading Terminal Market and San Diego has Liberty Station. A former Naval Training Center, Liberty Station compliments many of the nation’s popular indoor/outdoor recreational and entertainment markets. Unique to Liberty Station — in addition to dining and shopping options — is an entire Arts District, where visitors get a firsthand look at the work of in-residence artists — from paint and easel creations to performance-based art. You could spend a full day at Liberty Station and still not see and enjoy all there is to offer. 52
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2. Sesame Place. “Can you tell me how to get, how to get to Sesame Street?” If you know the song, you’ll probably want to add Sesame Place to your San Diego visit itinerary. A generation of Sesame Street O.G.’s can relish in the nostalgia invoked by Big Bird, Oscar the Grouch, Cookie Monster and friends. New generations can experience the charm that is Sesame Street. And together, old and new generations can partake in seven Sesame Street-themed rides, 11 water attractions (including one of the largest wave pools in Southern California), daily parades, shopping and more!
3. Little Italy. Encompassing 48-blocks, Little Italy feels like its own contained slice of Southern Europe, with endless eateries and entertainment, including a newer addition — “Little Italy Food Hall,” a 10,000-square-foot open-air piazza. But Little Italy serves up more than Italian cuisine. Folks love five-star favorites like the Mediterranean-influenced Herb & Wood. Plus, after filling your belly, you can enjoy monthly events such as live music and comedy night.
BIRCH AQUARIUM
LEGOLAND
Photo courtesy of Birch Aquarium
Photo courtesy of Joanne DiBona
4. Michelin Star restaurants. Speaking of food, San Diego never disappoints in this department. Gastronomy gurus and laymen alike won’t want to miss a Michelin dining experience. To earn a Michelin star (on a one to three-star scale) means a restaurant has achieved a crème de la crème distinction. Among San Diego’s elite Michelin options are the Addison, serving a rotating seasonal-based menu; Jeune et Jolie, featuring French cuisine; and Soichi, showcasing Japanese fare (visit the SanDiego.org blog for a full list of Michelin Star restaurants). 5. Barrio Logan. If you are a lover of art, cultural diversity and outright awesomeness, Barrio Logan is a must-stop on your San Diego itinerary. Tucked beneath a collection of freeway overpasses amidst Chicano Park’s 70 lively, historic murals, Barrio Logan entices the senses with flavorful, iconic Mexican music and food (be sure to check out the infamous homemade tortillas of Las Cuatro Milpas — the line is worth it). Chicano park features several seasonal events, including the popular annual April “Chicano Park Day,” with a multitude of art and vendors on display. 6. San Diego Zoo. It’s a treasure trove of animals from around the world. In addition to various wildlife exhibits, activities abound at the San Diego Zoo including Wildlife Care Specialist Talks, Botanical Tours and add-ons (for an extra fee) such as the Early Morning Cheetah and Exclusive VIP experiences (where you can receive a personal, guided tour of the zoo). In March, the zoo debuts its Wildlife Explorers Basecamp, where visitors can interact and play amongst desert, rainforest and other habitats while learning all about the importance of wildlife conservation.
7. Birch Aquarium at Scripps. If seeing baby seahorses is on your bucket list, or you’ve been clamoring for a look at a leopard shark, Birch Aquarium beckons you. But those aren’t the only sea creatures you’ll glimpse. In addition to a plethora of sea life exhibits, Birch Aquarium offers “behind-the-scenes” tours (that’s where you can see baby seahorses), interactive elements such as tide pools and — coming soon — The Beyester Family Little Blue Penguin habitat (summer 2022). 8. LEGOLAND. For LEGO enthusiasts or fans of the LEGO movie franchise, LEGOLAND is a must visit. There are ample opportunities for master builders to perfect their craft, rides the whole family will enjoy, and plenty of shows, activities and additional attractions to check out. Among newer additions, LEGOLAND has added THE LEGO® MOVIE™ WORLD with new rides, attractions, restaurants and shops. And, in March 2022, the park debuts the Ferrari Experience, showcasing a lifesize LEGO Ferrari F40, in which participants get to test and race their very own LEGO Ferrari. 9. Sea World. If you can’t get enough of San Diego’s sea-life samplings, Sea World is eager to please. Whales, walruses, seals and eels are a small collection of aquatic animals in residence. And, if you’re looking for added entertainment, the park provides an ongoing live orca encounter show (warning: you may get wet!). Thrill-seekers have a number of rides and roller coasters from which to choose, including the Emperor roller-coaster making its debut in March 2022. 10. San Diego speakeasies. After a day full of activity (maybe from partaking in one of the experiences above), what better way to wind down than with a signature cocktail from one of San Diego’s speakeasies. Realm of 52 Remedies, Young Blood, Raised by Wolf, False Idol and Noble Experiment, are a few notable hotspots — several of which will have you in awe of their entertaining atmosphere (such as False Idol’s Tikithemed bar). AB | March - April 2022
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TOURISM
VIP treatment(s) For Arizona’s top resort spas, relaxation is all in a day’s work (and big business) By ALISON BAILIN BATZ
A
ccording to Statista, the global market size of the spa and spa serves industry is expected to grow to more than $133 billion by 2027. Arizona, declared by Forbes as one of the nationwide leaders in the spa and wellness space, continues to innovate and push the industry to new levels each day. Here are how local spa industry leaders are massaging the bottom line and thriving in one of the most competitive markets in the world:
Fairmont Scottsdale Princess Proving that one is good but two is twice as nice, the Fairmont Scottsdale Princess now has two spa destinations on the resort grounds. The first: Well & Being Spa, a 44,000-square-foot palace to pampering that offers everything from aerial hammock yoga and float fit yoga to an aromatherapy blending bar and desert-inspired massage and body treatments. Setting itself apart for its amenities as much as its treatment offerings, the spa features a scenic rooftop pool complete with food and drink offerings as well as unique co-ed indoor/outdoor soothing heated spas that are connected to each other almost like a grotto. And then there are the indoor, single sex areas, offering indoor cold plunge and whirlpool 54
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areas, as well as steam, sauna and ample mediation space. In addition to that, in mid-2021 Fairmont Scottsdale announced the opening of Sisley-Paris Spa at Well & Being Spa. Founded in 1976 by Hubert d’Ornano, Sisley is a French, family-owned company specializing in innovative and exceptional, high-quality cosmetic products. The international luxury beauty brand is the benchmark in phyto-cosmetology, sourcing the best natural plant extracts to obtain the most effective skincare results. The spa-within-a-spa concept at Well & Being is its own private six-room treatment facility complete with an experience attaché and other high touchpoints. As the newest, and largest addition to the global Sisley
Spa portfolio, the Sisley Spa Paris at Well & Being offers a retreat inspired by the beauty and serenity of Havasupai Falls and the surrounding blooming Sonoran Desert. LEARN MORE: scottsdaleprincess.com The Phoenician When the iconic Phoenician completed the biggest renovation and refresh in the storied resort’s 30-year history in recent years, among the most sweeping of changes was The Phoenician Spa, which is an eyepopping and built-from-the-ground-up, three-story building of its own, complete with what feels like miles of personal space — including luxurious spaces to sleep — sauna, steam room, a rooftop pool, 24 treatment rooms, nail lounge, Drybar and
LAP OF LUXURY: The Fairmont Scottsdale Princess has two spa destinations on the
resort grounds — Well & Being Spa and Sisley-Paris Spa at Well & Being Spa. (Photo courtesy of Fairmont Scottsdale Princess)
shower to regulate the body. Guests may then retire to the relaxation lounge until treatment time. And the treatments? They continue to be cutting edge. In addition to standard and seasonal offerings, The Phoenician Spa offers everything from massages for the expectant mother, to a first-of-its-kind, three-step Keravive treatment for healthier, fuller hair. LEARN MORE: thephoenician.com
even a lifestyle shop. To ensure ample time to completely indulge, and improve the benefits of your treatment, the spa invites guests to arrive about an hour before any service to take part in a wellness ritual. A hot-and-cold contrast hydrotherapy, the ritual starts with a five-minute sauna as its dry heat allows for muscle recovery and pain relief. It is followed by at least a five-minute steam so the wet heat can flush toxins from the body and improve breathing. Next comes a 30-second cold shower to stimulate circulation and a five-minute rest period before retreating to the Vitality Hot Tub, which boosts the immune system and promotes overall relaxation, and one last 30-second cool (not cold this time)
Hotel Valley Ho VH Spa for Vitality + Health, a bright, 8,000-square-foot urban spa complete with relaxation deck and 24hour high-tech fitness center located at the midcentury modern boutique hotel, differentiates itself through transformational services. For example, to welcome spring in right, the spa features a Coffee + Cream seasonal menu through the close of April. Treatments include an energizing Café Au Lait Facial and nervous system-reactivating Coffee CBD Scrub + Massage from which to choose. Beyond that, there is a service line of treatments meant to feel like a journey for all of the senses on the regular spa menu, including an Istanbul-inspired Hammam Experience that cleanses, exfoliates, mists and massages with savory aromatics such as coffee, lemon blossom, quince, tangerine and fig from the exotic East; and the Round-The-World Ticket, two hours of nonstop bliss using hot stones, dry brushing, Hypervolt percussion massage, cupping, a hair masque, Quenched Hands and Feet, and a CBD-infused massage that concludes with a special CBD beverage or snack. LEARN MORE: hotelvalleyho.com CIVANA Wellness Resort & Spa CIVANA’s sole mission is to wrap guests in a warm cocoon of mindfulness, movement, relaxation, spiritual journeys and good, old fashioned massages and
facials. Let’s start with the actual spa. The two-story, 22,000 square-foot space centers around the theme of “healing through water” and features 23 treatment areas including one Watsu® therapy pool, two couples treatment rooms, three wet treatment rooms including a Vichy shower, five facial rooms, and 14 massage rooms. There is also a communal area of hydrotherapy immersions – the Aqua Vitality Circuit – that includes a European-designed Kneipp hot/cold wading pool, therapeutic soaking pool, a cold deluge shower, and the five-climate KLAFS SANARIUM. Beyond the actual spa, however, the entire resort is set up as a wellness center and restorative escape, often one that can be enjoyed together. There is a full menu of daily programming throughout the resort that draws upon varied disciplines and techniques and includes fitness, culinary, and personal and spiritual growth with everything from spirit animal workshops to aerial yoga classes. But wait, there is more. In recent months, the resort also launched “A Path to Connection,” a package that encourages travelers to find deeper connection with loved ones. Focusing on being with vulnerability, the package elements combine CIVANA’s commitment to “happiness first, healthiness always,” while offering new curated wellness experiences that create a safe container to explore vulnerability. Guests who embark on these experiences will be provided space and given tools to better understand, empathize, forgive themselves and others as well as explore acceptance, love and belonging. What does this mean? Think programming featuring conscious breathwork, intention burning ceremonies, intimacy workshops and even full shamanic journeys. LEARN MORE: civanacarefree.com AB | March - April 2022
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MARKETING
FROM POLOS TO PENS
Promotional marketing company HP2 stays attuned to the latest trends in branded materials in the face of supply-chain challenges.
By KEETRA BIPPUS
M
arc Hawkins was into marketing well before he was the face and owner of HP2, a Phoenix-based promotional marketing product company. Prior to starting his own company, Hawkins worked his way up from a truck driver with Miller Brewing Company to
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the marketing manager. It was there that he realized he had a passion for marketing and decided to follow it. After working with other promotional companies, Hawkins decided to be his own boss, launching HP2 in 2004. Now, almost two decades later, this family-owned business has a robust and loyal customer base and has been ranked No. 1 for
Promotional Products by Ranking Arizona five years running. Trends in promotional items Over decades working in the promotional marketing industry, Hawkins knows many of the short- and long-term trends that keep consumers interested. Hawkins notes that different wearable
In fact — and perhaps not surprisingly — a study by the Advertising Specialty Institute (ASI) in 2020, found that 89% of consumers had a promotional writing instrument. And, as technology evolves, so have pens. Now, many companies opt for stylus pens in place of more traditional ink substitutes. Drinkware is another big trend in the promotional product world. People want water bottles that last. Research from the previously mentioned ASI study found that 78% of consumers owned promotional drinkware. The variety in types of drinkware and the popularity of the Yeti brand has helped propel this product trend, Hawkins explains. As for Phoenix-specific promotional items, Hawkins identifies a clear, ongoing trend. “Polo shirts are always really important because we’re in a golf environment,” Hawkins says. “Lightweight shirts, breathable shirts, and clothing adapted to the weather and the heat we have in the summer do well here.” In keeping with Arizona’s environmental elements, anything that protects from the sun — above and beyond light-wear clothing — such as branded lip balms with SPF and sunscreen, hats, sunglasses and umbrellas are common and successful branded products. How does HP2 keep up with the trends? To keep up with the latest trends in promotional product marketing, Hawkins and many of his market colleagues stay up to date with industry-specific publications like the PBB and Counselor magazines. There are also several nationwide trade shows with thousands of vendors displaying their products. One such show is in Las Vegas and features 15,000 products, as well as countless vendors. HP2 has also built a great reputation in Arizona as one of the most acclaimed companies in the region and state. Because of their reputation, Marc says that many suppliers come to HP2 to show them new promotional items have cycled in and out of products on the market. The company also popularity throughout the ages, with thick has a showroom with different products for cotton t-shirts as one of the most popular items as of late. Technology products have also clients to look through and purchase. been trending the past ten years, with power Deciding what promotional banks, chargers and speakers as examples. products are right for you As far as marketing products that have To help dial in to what products work stood the test of time, Hawkins says, “Pens best for their clients, HP2 asks a series of have always been No. 1.”
fact-finding questions. This begins with basic questions about the type of company and its size, then queries become more specific based on those answers. “Let’s just say, for instance, a company is considering polo shirts,” Hawkins says. “We ask: ‘Do you have a color scheme? Do you have a logo? Do you have a budget?’ There are a lot of key questions we ask to try to get us from a big view to a narrow view to figure out a clearer picture.” Jamie Hoffman, hospitality manager at SanTan Brewing Company and client of HP2, gets all his promotional products from HP2. “You can’t be a brewery and not have shirts and hats,” he says. Adding that HP2’s “products are great and their customer service is even better.” Challenges in the supply chain Like most businesses, HP2 was impacted by COVID-19. A majority of promotional products within the industry are made in China, so supply for items was — and continues to be — limited. Fortunately, despite supply chain issues and a period of working from home, the company managed to retain all of its employees. The company prides itself on its customer service and giving back to its employees. “We’ve been fortunate to be here for 19 years in the promo world. We have a great team; we call ourselves the HP2 family,” Hawkins says. “And one thing we love to do is give to our family.” HP2 also has a wide variety of clients. Although HP2’s big brands and companies may bring in the most income for the company, Hawkins explains that they almost never say no to any client that comes through their doors. He believes that his and his sales representatives networking through churches, schools, neighborhoods and other companies is what has really built up their clientele. “If you came into our shop and said ‘I need five shirts for a bridesmaid party,’ we would make it happen,” Hawkins says. “In the business that we do, we’re face to face, we’re handshake to handshake. We keep the client informed about what’s going on. They can always call our number and somebody will answer.” AB | March - April 2022
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DINING
Prime time Prime, A Shula’s Steak House takes fine dining to new heights
SPECTACULAR VIEW: Outdoor seating
area at Prime, A Shula’s Steak House, overlooking the pools at Gila River Resorts & Casinos — Wild Horse Pass.
By MICHAEL GOSSIE
E
xceptional flavor combinations. Modern decor. Great ambience. Spectacular views. All those elements blend together to create the quintessential dining experience at Prime, A Shula’s Steak House. Prime opened in January as a part of a $180 million expansion project at Wild Horse Pass. The one-of-a-kind dining experience begins before you’re even seated at your table. As guests arrive to the hotel lobby, they will ascend to the top floor by a dedicated glass elevator. Rising 150 feet over the desert landscape, Prime takes over the rooftop of the new tower at Gila River Hotels & Casinos — Wild Horse Pass and offers stunning views of the Estrella Mountains and breathtaking Arizona sunsets. Beyond the sensational scenery, Prime offers an invigorating take on the traditional steakhouse experience including perfectly prepared steaks, bold, craveable interpretations of classic dishes and signature wines paired with attentive service that puts guests front and center. Leading the charge is celebrity chef Demetrio Zavala, who was influenced
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by his European, Mediterranean and Mexican roots when creating the menu for Prime. If the name sounds familiar, it’s because Chef Zavala has competed in — and won — Food Network TV cooking shows, including “Chopped” and “Chopped: Grudge Match.” But don’t think Prime is just all glitz and glamour. The true star of this show is the incredible food. Some cannot-miss items: • The Stuffed Alaskan King Crab ($27), brilliantly prepared with cayenne, garlic butter and bread crumbs; Tuna Tartare ($19), blended with yuzu, ginger and chili; Prime Salad ($13), with mixed greens, tomato, asparagus, oven-dried tomatoes, cucumber, radish, croutons and gribiche vinaigrette; and Wild Mushroom Toast ($12), are the perfect starters to begin your night of deliciousness. • When it comes to steaks, Prime’s 16-ounce ribeye ($58) surpasses any other steak you’ll find in the Valley. Acknowledging the fact that the Valley is a steak-lover’s paradise, that’s saying a lot. If you really want to take it over the edge, you can add grilled shrimp ($12), grilled scallops ($18) or Alaskan king crab
(market price) and have the best surf and turf Arizona has to offer. • If red meat is not your thing, the Roasted Chicken ($31), with sherry chicken jus and lemon-thyme Brussels sprouts; and Roasted Sea Bass ($51), with mussels, fennel and a vermouth froth, will make you book a reservation so you can come back for more. Prime is a fine-dining foodie’s dream destination. Prime sets a new standard for culinary excellence in Arizona — and beyond. And just when you think your experience cannot get any better: Think again. After dinner, the venue transitions to 11ven at Prime, a place where crafted cocktails and live DJs pair effortlessly with the fabulous perspective of the Valley. It’s Prime time. Prime, A Shula’s Steak House Location: 5040 Wild Horse Pass Blvd., Chandler. Part of Gila River Resorts & Casinos — Wild Horse Pass. Hours: Tuesday-Thursday, 5 p.m.-10 p.m.; Friday and Saturday, 5 p.m.-11 p.m.; closed Sunday and Monday. Phone: 520-796-1972 Information: playatgila.com
3603 East Indian School Road, Suite A, Phoenix S.E. Corner of 36th St. & Indian School in the Gaslight Square Brunch Sat & Sun 9am - 3pm (Brunch Drink Specials) Dinner Wed - Fri 4pm - 9pm • Closed Mon & Tues
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ARIZONA CORPORATE COUNSEL AWARDS
PUTTING POLICY INTO PRACTICE How corporate counsel can avoid missing great opportunities to engage on the local level
W
hen thinking about lobbying and government relations, it is far more likely for corporate counsel to envision a scenario when state or federal policy might impact business interests. However, this limited perspective results in missing a great opportunity to engage on the local level, where policy most directly impacts daily business operations and employees. From business development policies that might include job creation subsidies to utility regulation, policy development and implementation at the local level can often occur without 60
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substantial business input. The business community will immediately feel the impact of these policies. Therefore, it is both valuable and beneficial for corporate counsel to engage on the local level to improve the business environments in which they operate. While we often represent Fortune 500 companies with well-established government relations strategies, some of our most impactful work comes from representing companies engaging at the local level for the first time. For such clients, our first job is educating business
Rana Lashgari Government relations
leadership on the potential policies and proposals which could impact their business. At the local level, this begins with understanding the unique structure and procedure at each municipality. Because the process varies greatly between each jurisdiction, a one-size-fits-all approach, or one that emulates state and federal government relations strategies, might not find success. For example, some municipalities have very active subcommittees tasked with developing policy recommendations related to business and economic development
before such issues progress to council for final approval. In other jurisdictions, the economic development director leads economic policy, and a strong relationship and understanding of the department priorities are needed to engage on relevant issues. Even a city council’s structure can hold influence, and this is when private industry has the highest likelihood of success in impacting outcomes. For example, not all cities have a “strong mayor” system. In those jurisdictions, the mayor constitutes only a single vote and business advocates will need to lobby a coalition of elected officials to influence a policy or change an ordinance. Once there’s a familiarity with the various structures and policy timelines, it is imperative to understand the potential impact of local policy on the specific business or industry. For businesses entering the local market or looking to expand into a new market, positive relationships at the local level can be critical to their successful transitions. As it relates to real estate for such businesses, local jurisdictions almost exclusively control the zoning required for commercial development. Additionally, understanding the policies and political climate can help businesses access resources such as funding, grants, public contracts, job creation subsidies, development incentives, tax incentives and housing resources for their employees. The budgets of some large municipalities can dwarf the GDP of many countries around the world. Thus, the ability to access funds allocated for community or business development is just one of the many available opportunities. Consulting with municipal government relations experts who track and follow the development of such policies greatly improves the likelihood of attaining these various incentives. This will well position a business client long before the news media reports many of these programs. Sometimes the impact of local policies and regulations may not be initially clear. For example, city planning can include long-term infrastructure changes that might indirectly impact business operations many years down the road. City council decisions made today can create significant future changes to urban development cores, transportation
corridors or public transit lines which may impact brick and mortar locations, either negatively by impeding access or positively by providing more convenient access for employees or customers. These factors are important to consider for a business selecting a location or planning long-term operations. For businesses dependent on workforce access to maintain operations or growth, partnerships brokered early between businesses and municipal agencies can lead to targeted funding for job training, apprenticeship or certification programs valuable to maintain employment pipelines. For innovative businesses, antiquated local building codes or permitting can stifle success and early advocacy to update such codes might be highly valuable. Certain companies might be surprised to learn that smaller municipalities have far more advanced network infrastructure, such as wellestablished fiber optic networks across their jurisdiction. These are just a few examples to highlight the importance of monitoring local municipal policies on a deeper level early and often. By the time many of these policies make it into the headlines of the media, it is often too late to change or redirect such policies. Once establishing a deeper understanding of the scope of municipal policies, business clients can choose whether to adopt a proactive, reactive or neutral strategy toward local engagement. First-time clients typically become engaged at the local level in reaction to a harmful policy or regulation. With the right expertise, information and strategy, it is possible to stop, reverse or amend such policies before they are officially adopted. Armed with a deeper understanding of how critical local policies can be to successful business operations, business or industry clients may choose to maintain engagement at the local level. Companies can determine whether they choose a proactive or neutral municipal lobbying strategy. For all clients — at a minimum — it is important to build positive relationships and educate local leaders on their business, goals and operational needs regularly. If this is done correctly, most city or council officials will incorporate this knowledge into their policy development from the start instead
of resorting to a highly reactive lobbying strategy. For clients who recognize value in a proactive strategy, corporate counsel can help identify specific policy recommendations intended to improve business conditions. Based on these recommendations, a proactive lobbying strategy can be developed to educate local leaders and promote identified policy recommendations in a single municipality or across multiple jurisdictions. With the growth of corporate social responsibility and environmental, social and corporate governance policies within the business sector, there is no better time than now for corporate counsel to incorporate advocacy at the local government level into the overall company strategy. Rana Lashgari, Esq., is president of Arizona Municipal Strategies, a leading municipal lobbying, procurement and government relations firm in Phoenix.
2022 Arizona Corporate Counsel Awards Each year, Az Business magazine — in partnership with the Association of Corporate Counsel, the State Bar of Arizona, and title sponsors Cresa and Ogletree Deakins — recognizes the important and vital role in-house counsel plays with the Arizona Corporate Counsel Awards. Finalists represent the finest legal expertise across all industries in the private, public and nonprofit sectors. Winners will be celebrated at an in-person awards dinner event on March 24, 2022 at The Scottsdale Plaza Resort. Meet the finalists for the 2022 Arizona Corporate Counsel Awards on the pages that follow.
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ACC AWARDS 2022 finalists
Cory Barnwell
Chief legal officer VensureHR Vensure Employer Services provides PEO solutions and human resource outsourcing to small and mid-market businesses across the country. Through its subsidiaries, including VensureHR, the company processes more than $9 billion in payroll and supports more than 300,000 worksite employees. With services including payroll, medical and voluntary benefits, workers’ compensation, risk management and HR administration, Vensure companies support a broad spectrum of industries, allowing small business owners to costeffectively manage HR functions.
Arizona State University Office of General Counsel The Office of General Counsel (OGC) fosters the dynamic educational environment of Arizona State University in support of its mission as The New American University. Its goals are to provide, manage and coordinate quality legal services for the university; minimize legal risks and costs; reduce litigation; and ensure legal compliance and do so efficiently, reliably and professionally. The office also represents ASU in litigation matters, administrative proceedings and significant transactions.
Edwin ‘Ted’ R. Ashton
Co-founder // Arete Financial Solutions Ashton is a pioneer in providing legal services in Arizona. In 2020, a modification to the Arizona Rules of Professional Conduct allowed attorneys to combine their efforts with non-lawyers in a combined practice offering legal and other professional services. With the new rules in place, Ashton helped create Arete Financial Solutions, which allow clients to receive complete financial care from a team of professionals acting in concert for the client’s benefit.
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David Bixby
Chief legal officer and general counsel Banner Health Bixby joined Banner (then Samaritan Health System) in 1998 as senior vice president, chief legal officer and general counsel for the organization. He came to Banner with nearly two decades of service at Lewis and Roca (now Lewis Roca Rothgerber Christie). Bixby earned a bachelor’s degree in history and literature from Harvard University and a law degree from Yale Law School. He is a member of the Arizona Bar, the American Health Lawyers Association and the American Corporate Counsel Association.
Steve Burdumy
Managing director and chief legal officer Footprint Burdumy brings extensive legal experience in corporate, securities, M&A, divestiture and financing transactions to Footprint. His role as chief legal officer includes managing all legal affairs on behalf of Footprint, including intellectual property matters. Prior to Footprint, Burdumy served as the executive vice president, chief operating officer and chief legal officer of Transformative Pharmaceutical Solutions (TPS), where he oversaw all business, financial and legal operations.
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Stephen Beaver
Senior vice president, general counsel and chief legal officer Benchmark Beaver leads Benchmark’s global legal, compliance, ethics and intellectual property matters. He also serves as Benchmark’s corporate secretary. Beaver has more than 20 years’ experience in managing legal matters including litigation, contracts, labor and employment matters, trade secret and intellectual property matters, corporate controls, governance and business processes. Beaver joined Benchmark from Aspect Software in Phoenix, where he held the position of senior vice president and general counsel.
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ACC AWARDS 2022 finalists Marina Carpenter
Malisa Cagney
Senior corporate counsel Freedom Financial Network Cagney has more than 10 years of progressive legal experience serving highly regulated financial services clients from both outside and inhouse counsel perspectives. Her prior experience includes collections, bankruptcy, insurance, advanced legal research and general practice. Cagney’s specialties include building and leading legal teams; managing outside counsel; litigation; negotiation; compliance; risk management; escalated lawsuits and complaints; writing, reviewing, and litigating contracts; strategy, policies, procedures, training, and oversight; and legal audits.
General counsel Arizona Coyotes Carpenter has achieved — and continues to achieve — excellence in her field and has made significant, observable changes to the culture for the Coyotes. She has broken barriers as a woman and mother in sports and touched and enriched the lives of many employees by serving as a role model and mentor. She is a 2021 recipient of the Women Influence & Power in Law Award and was recognized in 2018 as one of Hockey’s Top 40 Under 40.
Steve Cook
Head of legal Nikola Corporation Cook became head of legal for Nikola in October 2021. Prior to that, he served the company for two years as senior corporate counsel, contract. Nikola Corporation is an American company that has presented a number of zero-emission vehicle concepts since 2016. The company has stated on several occasions that it intends to take some of its concept vehicles into production in the near future. Nikola Corporation is based in Phoenix. 70
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Martin Demos
Senior vice president and general counsel Valleywise Health Demos faced unprecedented challenges and stresses as the health care system was overwhelmed with COVID-19 patients during three surges. Since the outset of the pandemic in early 2020, Demos has been working up to 16 hours a day, often seven days a week. He’s had to keep the hospital in compliance with an array of executive orders and policies and become intimately involved in the health system’s decision to dramatically increase the use of telehealth.
Mick Dragash
Tracy Donahue
Senior director, associate general counsel, global head of litigation PayPal Donahue is global head of litigation at PayPal and is part of a team that manages disputes, regulatory inquiries and litigation. She initially joined eBay in January of 2014 as part of its litigation team and went to PayPal in July of 2015 when PayPal became its own public company. She handles a wide variety of matters involving consumer protection, state and federal financial laws and regulations, and commercial disputes.
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Executive vice president, general counsel, chief compliance officer, corporate secretary Cavco Industries Dragash leads both Cavco’s legal and compliance functions. Dragash brings years of experience to Cavco. From June 2015 to September 2017, he was general counsel of Swift Transportation Inc. Before that, he was general counsel and chief compliance officer for Gordon Trucking. Dragash also had stints as associate general counsel at DHL Supply Chain Solutions and Walmart Stores from 2004 to 2010.
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ACC AWARDS 2022 finalists
Melissa Goldenberg
Senior vice president and general counsel Phoenix Suns and Phoenix Mercury Goldenberg’s work behind the scenes helped both the Suns and Mercury make it to the finals in 2021. An advocate for voting access Goldenberg worked with state officials and officials at Arizona Veterans Memorial Coliseum to secure that the stateowned venue would be open to the public in 2020 as a voting center. She previously served as corporate counsel for Western Alliance Bancorporation.
Christie Hammerle
Director-legal // GoDaddy Hammerle is a legal process management guru and continually strives to process improve and streamline functions to provide her internal clients with the most cutting-edge service. She studies the law and practical implementation issues and challenges closely and strives to meet staffing challenges for the business in creative ways, including through mastering and improving leave and accommodation processes through a stretch assignment. Before joining GoDaddy, she was a member of GoDaddy’s outside employment and litigation team.
Michelle Guina Alarid
Senior counsel — store operations and services PetSmart Alarid has led this retailer’s COVID-19 response for the past two years, which is a huge challenge with operations in all 50 states and given the proliferation of local and state issues in this ever-changing situation. Alarid accomplished this by becoming an OSHA guru in her own right, while also handling other major compliance areas of responsibility. She is also active in Retail Industry Leaders Association, as well as other activities.
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ACC AWARDS 2022 finalists
Chad A. Freed
General counsel, executive vice president and secretary STORE Capital As a senior legal and business executive with comprehensive experience in delivering business-oriented solutions to complex legal, real estate, corporate development and compliance matters, Freed serves as STORE Capital’s general counsel, executive vice president and secretary. Throughout his corporate legal experiences, Freed has overseen SEC compliance, corporate governance, risk mitigation, and corporate contractual lease relationships with institutional real estate landlords.
Stephanie King
Melanie Hansen
Chief legal officer and executive vice president, people Source Global Hansen has worked with Source Global since 2019. Prior to that, Hansen served as the general counsel of Massage Envy Franchising for approximately six years, where she led the development of the company’s commitment to safety and helped grow the national franchisor to over $1.5 billion in system-wide revenue. Hansen began her in-house career as the general counsel for Cold Stone Creamery.
David Koeninger
General counsel Arizona Cardinals Football Club Koeninger has served as general counsel for the Cardinals for more than 13 years, but his path to the NFL was an unexpected one. He was originally headed toward a career as a professor of English literature when he realized it wasn’t for him and dropped out of a PhD program at Loyola University in Chicago, after completing his master’s degree. A year later, he entered Stanford Law School.
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Chief legal officer and chief of staff Paradox AI King joins Paradox from DLA Piper, where she was a corporate and securities partner. King has been recognized as an emerging leader in the Arizona legal community, leading more than $1 billion in strategic transactions and serving as outside general counsel to dozens of growth-stage technology companies across the country, managing all aspects of their legal representation from formation to scale to exit.
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ACC AWARDS 2022 finalists Eric Krich
In-house counsel and vice president of risk and compliance Integrate Krich serves as in-house counsel for Integrate, a rapidly-growing marketing software company that provides a SaaSbased platform to streamline, automate and orchestrate demand marketing. He works with Integrate’s employees, customers and global partners to ensure that compliance, governance and data privacy are not only in place, but to help them navigate this complex challenge. While initially focusing on data protection in North America, over the past several years focus shifted to global data protection with an emphasis on the European Union.
Cherry Malichi
Corporate Counsel Progress Residential Malichi is a highly accomplished senior professional with years of experience practicing law with Fortune 500 financial companies. She has demonstrated athe bility to lead and direct legal staff including lawyers, paralegals and operational units. Malichi is a well-respected member of the Indiana and Arizona Bar with outstanding legal expertise and has a talent for fostering strong relationships with colleagues and industry stakeholders. She is also known for her ability to anticipate and deal with unexpected events.
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Nona Lee
Executive vice president and chief legal officer Arizona Diamondbacks Lee is in her 22nd season with the Arizona Diamondbacks and serves as executive vice president and chief legal officer, overseeing all legal issues for the organization. Before dedicating her time solely to the D-backs, she served as associate general counsel (2000-04) and vice president and associate general counsel (2004-05) for the Phoenix Suns, D-backs, Phoenix Mercury, Arizona Rattlers, Chase Field, US Airways Center and Dodge Theater.
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ACC AWARDS 2022 finalists
Michael McCoy
General counsel and chief legal officer Avnet For over a decade, McCoy has lent his legal expertise to Avnet, a leading global technology distributor and solutions provider. Serving more than 40 countries and a variety of industries, Avnet yields close to $19 billion in annual sales. Prior to being named general counsel and chief legal officer in 2020, McCoy was an ex-pat living in Brussels Belgium, where he served as general counsel, international, overseeing Avnet’s legal teams in EMEA and Asia Pacific. Now, McCoy oversees Avnet’s legal operations, trade compliance, ethics and security.
Jay McGrath
Chief legal officer Troon With 25-plus years of legal and hospitality industry expertise, McGrath’s focus centers on the golf and hospitality markets. Since joining Troon in 2001, he has aided the company’s growth including expanding from golf management services for 30 facilities (when he started) to now more than 625 locations as the world’s largest golf management company. Today, McGrath continues to manage oversight of Troon’s legal, human resources, compliance functions and execution of company acquisitions.
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Stephanie McRae
General counsel TGen McRae is part of a powerhouse team at Translational Genomics Research Institute (TGen), a local nonprofit medical research institute engaged in groundbreaking research in genetic components of complex diseases. In addition to providing her legal expertise to TGen, McRae also serves on the Board of Directors of the Ben and Catherine Ivy Foundation, an organization dedicated to improving diagnostics and treatment options for patients with brain cancer.
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ACC AWARDS 2022 finalists
Rachel Molina
Senior counsel — labor and employment PetSmart Working for Swift Transportation, a national employer with more than 20,000 employees, gave Molina invaluable experience that parlayed perfectly into her role at PetSmart, which she started in May 2019. For the first year and a half of her time at PetSmart, Molina was the only solely dedicated employment attorney, handling all employment-law-related matters for a national employer with more than 50,000 associates.
Carmen Neuberger
Executive vice president of legal affairs, general counsel Phoenix Children’s Hospital In the 14 years since joining PCH, Neuberger has played an integral role in its growth from a single hospital in Phoenix to one of the nation’s largest and most respected pediatric health systems with more than 40 sites of service across Arizona. With Neuberger serving as strategic adviser, the organization has undertaken massive expansion projects across Metro Phoenix, including new freestanding hospitals in Gilbert and Glendale, and facilities in Avondale.
Whitney Meister
Senior corporate counsel Best Western Hotels & Resorts Named one of the Best Lawyers in America, Employment Law – Management during her time in private practice, Meister now provides legal advice, training and risk management strategies relating to all aspects of the employment relationship, including outside counsel for Best Western Hotels & Resorts. Additionally, Meister manages public accommodation issues hotel-industry-wide, supports and advises the human resources department on effective strategies to minimize risk, and provides direct support to Best Western’s other corporate departments and hoteliers.
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ACC AWARDS 2022 finalists
Kristin Paiva
General counsel Massage Envy Paiva leads the legal and safety teams at Massage Envy. In her role, she oversees legal and risk management concerns, franchisee compliance, and transactions. Paiva’s background includes more than 10 years in private practice litigating disputes on behalf of a wide variety of national, regional and local clients in both federal and state courts, as well as in arbitration and mediation. Paiva embraces the vision of a highlycollaborative, growth-orientated team environment.
Jonathan Perez
General counsel True Food Kitchen Perez is general counsel of True Food Kitchen, the innovative health-driven restaurant brand founded by Sam Fox and pioneer in the field of integrative medicine, Dr. Andrew Weil. In his role, Perez leads the legal and compliance function and oversees the human resources department in support of True Food Kitchen and its people. Prior to joining True Food, Perez served as president and general counsel for the Tilted Kilt Franchise.
PetSmart legal department
The Petsmart legal team, led by Senior Vice President and General Counsel Lacey Bundy, handles all legal tasks for the Phoenix-based retailer. As of 2020, PetSmart has more than 1,650 stores in the United States, Canada, and Puerto Rico. Its stores sell pet food, pet supplies, pet accessories and small pets. Petsmart also offers dog and cat adoption via in-store adoption centers facilitated by the nonprofit PetSmart Charities.
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ACC AWARDS 2022 finalists
Mark Reynolds
Vice president, senior litigation counsel Meritage Homes Since joining Meritage Homes in 2009, Reynolds has been instrumental in assisting the organization navigate the fluctuating homebuilding market. As vice president of litigation and claims management, he helps ensure the organization’s brand integrity and is known for his collaborative nature and commitment to lead with integrity above all else. Prior to Meritage, Reynolds served as in-house counsel with Wendy’s International, Inc. (as well as several additional subsidiaries).
Pinnacle West Capital/APS Legal Department Led by Executive Vice President, General Counsel and Chief Development Officer Robert E. Smith, the Pinnacle West Capital/ APS legal department handles all legal matters for the Phoenixbased, investor-owned electric utility holding company. APS is recognized for its strong customer growth, healthy finances, principled environmental, social, and governance focus and innovative energy solutions to meet the changing needs of its customers. APS is committed to power Arizona’s future with electricity that is 100% clean and carbon-free by 2050.
Michael Rafford
Senior vice president, general counsel and corporate secretary Isola USA Corp. Rafford has exhibited the highest form of strategic, proactive thinking in managing the various matters – transactional, regulatory and litigation – that come before him. These matters have ranged from active involvement in defending some of the earliest, most aggressive “patent troll” litigation in the country, to managing complex international plaintiff’s patent litigation, to supervising the transition of internal structures, processes, and personnel from publicly-owned to privately held company, to dealing with a wide variety of employee, vendor and other disputes.
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ACC AWARDS 2022 finalists
Christy Rosensteel
General Counsel and vice president of people operations Freestar Rosensteel is an experienced in-house counsel with broad, high-level experience working closely with senior management in human resources, business development, marketing and promotions, operations, finance and sales. She is effective at balancing legal requirements against the needs of the organization, ensuring strong business performance in compliance with applicable laws and regulations.
Clay Scheitzach
Danny Seiden
General counsel Valor Global Recognized as one of “Arizona Capitol Times’” 2020 Leaders of the Year in Public Policy, Seiden continues his 16-plusyears legacy in global public affairs and government relations in service to Valor Global. His legal expertise and contributions to Valor Global include handling complex legal matters in private practice and public sector service. Alongside his role with Valor Global, Seiden is an adjunct professor at Sandra Day O’Connor College of Law at Arizona State University and is a board member and chair of the Legal and Regulatory Reform Committee for the Arizona Chamber of Commerce. 88
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Executive vice president, secretary, general counsel DriveTime Scheitzach was named executive vice president, secretary and general counsel for DriveTime in March 2018. Scheitzach, who most recently served as a senior vice president, assistant general counsel and chief compliance officer for Conduent, an international business process services company, has more than 19 years specializing in business and corporate law. He received his bachelor’s of science at the University of Texas and his MBA and JD from Texas Tech University.
Timothy Shaffery
Chief legal officer Smith Bagley Practicing law for upwards of 26 years, Shaffery has served as Cellular One’s chief legal officer since 2012. Of his many professional accomplishments, he is recognized for his gift in crafting win-win agreements, despite challenging circumstances and socio-cultural barriers. Of note, Shaffery helped raise the telecommunications service reach of Navajo, Hopi, Zuni and Apache tribes from approximately 27% (when the company began 25 years ago) to 80%, enabling tribal residents to have greater access to mobile phone service as well as broadband data.
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ACC AWARDS 2022 finalists
Douglas Shamah
General counsel WebPT Shamah is an experienced general counsel with a demonstrated history of working in high-growth technology and healthcare companies. He is skilled in privacy law, Software as a Service (SaaS), healthcare, mergers and acquisitions, corporate law, intellectual property and employment law. Earlier this year, he was instrumental helping WebPT, the leading outpatient physical rehabilitation SaaS platform, acquire one of its chief competitors, Clinicient and its subsidiary Keet.
Laura Showalter
Senior attorney Pinnacle West Capital/APS With more than a decade of experience in labor and employment, Showalter is known for her leadership and execution of complex projects for Pinnacle West Capital/APS. In addition to handling projects involving multiple internal and external stakeholders, Showalter manages all employment claims and litigation in Arizona, California, New Mexico, Colorado and several other states for Arizona’s largest public utility. She is also recognized for her diplomatic and pragmatic approach as a thought leader in the labor and employment space.
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Michael Silhasek
General counsel Discount Tire Silhasek was recruited by Discount Tire in 2019 to create an emerging technologies group in the company’s legal department. Silhasek is responsible for managing a wide array of legal matters that touch on intellectual property, robotics, fleet services and the electric vehicle market. Discount Tire operates in 36 states in the United States, and is the largest independent tire and wheel retailer in the world. The company is headquartered in Scottsdale.
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Robert E. Smith
Executive vice president, general counsel and chief development officer Pinnacle West Capital/APS In addition to 25-plus years of legal experience, Smith’s longevity within the energy industry spans upwards of two decades. In his current role, he oversees all aspects of APS legal affairs and corporate secretary functions, in addition to managing the company’s growth plans and strategies. Smith also serves as chair of the board of directors for Global Action, as well as serving on the board of trustees of the El Faro Ephraim Foundation and the finance committee and advisory board of the Musical Instrument Museum.
Trevor Steege
General counsel Arrivia During the pandemic, Steege stepped up to support Arrivia — a travel-based technology company — helping the organization effectively transition to a remote workforce. His forward-thinking and expedient approach to problem solving has been instrumental in additional aspects in his role as general counsel. In his nine years in practice, Steege helped secure prominent mergers and acquisitions and partnerships, as well as navigating and binding an on-site management team and a private equity leadership, earning him the title of “peacemaker.”
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Troon Legal Department
It may have begun with one facility, but now, Troon — a professional club management company — has expanded to 625plus locations and 655-plus golf courses. As part of prioritizing their clients’ needs, Troon provides its own in-house legal team. This highly-experienced, collaborative legal department works tirelessly to cover all legal functions from reviewing documents and contracts to any other task affecting each club and its ability to succeed and prosper.
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Matthew Walls
Assistant general counsel HonorHealth HonorHealth’s journey in Phoenix started in 1927, with rich and robust roots that have led to the expansion of six hospitals in Phoenix and Scottsdale, five of which achieved Magnet status (the gold standard of nursing care designated to only 6% of the nation’s hospitals). In service to HonorHealth, Walls contributes his legal specialties in employment law and human resources. His expertise and skills set includes wage and hour, discrimination, harassment, human resources advising, insurance litigation, mediation and arbitration.
Trulieve (formerly Harvest Health) Legal Department Since its inception, Trulieve — formerly Harvest Health — has been recognized not only for specializing in curated cannabis products and dispensaries, but also for its work with charitable organizations. From 2013 to date, the company has donated upwards of $500,000 to local charities involving veterans, seniors and patients in need. Working tirelessly to move the organization’s endeavors forward is Trulieve’s legal department — led be General Counsel Nicole Stanton and consisting of six attorneys (doubling in size from the company’s start). Since going public in November 2018, the Harvest legal team closed 20 transactions in multiple states totaling more than $500 million.
Peter Witty
In-house counsel Cable ONE Witty, who’s legal career spans upwards of two decades, currently manages inhouse counsel for Cable ONE, a leading broadband communications provider, serving more than 1.1 million residential and business customers in 24 states. Witty oversees all of the company’s legal, regulatory and compliance functions. Prior to joining Cable ONE, he served as general counsel and secretary for Gas Technology Institute (GTI) and various positions with Abbott Laboratories.
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2022
40 YEARS
OF PROSPERITY PHX East Valley Partnership celebrates four decades of guiding the region’s economic growth
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FABULOUS PHX East Valley Partnership has helped create four decades of economic wins and economic expansion for the region By ERIN THORBURN
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hat is now the PHX East Valley Partnership may have “officially” launched in 1982, but as former association President and CEO Roc Arnett tells it, its origins started much earlier. More than a decade prior, individuals throughout the East Valley became a united front, focused on advocating for the region’s development and growth. Ultimately, this collection of like-minded people formed an advantageous organization that — 40 years later — continues to affect positive change throughout the East Valley and beyond.
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ROC ARNETT
DENNY BARNEY
JENN DANIELS
JOHN LEWIS
PHX East Valley Partnership early days As PHX East Valley Partnership commemorates its 40th anniversary, there is much to reflect upon. The desire for transformation and dedication to regional collaboration is something group has always prioritized. According to Arnett, before the PHX East Valley Partnership came to fruition, the desire for growth and alignment was already brewing. By the early 1980s, eastside pioneers agreed to put their weight behind Bruce Babbitt for governor if he agreed to appoint East Valley members to influential state boards and commissions. Both missions came to fruition, and thus, the East Valley Partnership was born. One of the early victories of EVP occurred in the formation and voter approval of Proposition 300. “The half-cent sales tax for Maricopa County ultimately helped build the Valley’s freeway system, including the East Valley’s Loop 202 freeway and US 60 extension, as well as other significant arterials,” Arnett explains. Additionally, early EVP members participated in the transitioning of Williams Air Force Base into what is now Phoenix-Mesa Gateway Airport, as well as contributing to the establishment of the Arizona State University Polytechnic campus, Chandler-Gilbert Community College and the East Valley Maricopa County Court Complex.
Continued progress through collaboration For the first 20 years, Arnett served as EVP’s president and CEO. Following the leadership stints of Arnett and former Gilbert Mayor John Lewis, Denny Barney, a former member of the Maricopa County Board of Supervisors, took up the baton. During his time at the helm of PHX East Valley Partnership, Barney says one of his greatest joys was seeing the many companies that discovered the benefits of doing business in the East Valley. “I have enjoyed working alongside a talented and collaborative group of leaders to advocate on issues such as education and transportation that are critical to our region,” Barney says. Collaboration has been a common thread uniting past and present EVP leaders, as well as those who have worked with them. Current EVP President and CEO John Lewis (who returned to the organization after a missionary assignment in Phnom Penh, Cambodia) recalls his first glimpse of unity at work, which came shortly after moving to the East Valley in 1985, three years after EVP was established. “I quickly learned that our community leaders had great vision as they prepared for future residential and commercial AB | March - April 2022
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PHX EAST VALLEY PARTNERSHIP subdivisions, schools, roads, utilities, recreational parks and public safety needs,” Lewis says. “I was amazed and inspired with the foresight that was part of planning for the future. And I was grateful for the regional cooperation that was occurring to ensure that both large and small cities would be able to adequately prepare for the impending growth.” Jenn Daniels, former mayor of Gilbert and Arizona Transportation Board member adds, “Overall, the East Valley is interconnected in that our economic development in one city impacts another, and it’s what helps us be able to get to that 30,000-foot level.” Daniels cites Boeing, Deloitte and Intel expansions as perfect examples to showcase the East Valley’s unity, resulting in economic expansion and workforce development for the region and state. Another collective accomplishment for the East Valley, thanks to the efforts of the PHX East Valley Partnership, is the Superstition Vistas. The project encompasses 175,000 acres of Arizona State Trust Land just east of the Maricopa County line in Pinal County that tracks from south of Apache Junction to north of Florence. The project, which began under the tutelage of Arnett in 2003, was a long-term vision combining sustainable urban and rural living. “The EVP’s Superstition Vistas Project growth is actually happening now,” Daniels says, “and we’re seeing the benefit of new infrastructure in the area, which has been a key focus for
EVP for many many years.” In December, Brookfield Residential and D.R. Horton announced that the first two communities to take residence in Superstition Vistas are slated for a 2023 opening, with commercial, recreation and school zoning to follow. Looking ahead As the PHX East Valley Partnership moves forward, it continues to set its sights on regional cooperation and growth — not only for the East Valley, but also for the entire Greater Phoenix area. “When I look at the partnership and see our members serving in busy leadership positions — but who make time to build our region’s future — I know the organization’s founders would be proud,” Barney says. “After all, their bright idea has helped to guide thoughtful planning for the region and Greater Phoenix, unite a skilled labor force that is nearly 800,000 workers strong, contribute to a thriving economy — locally, regionally and nationally — and create a quality of life that is second to none for the region’s 1.6 million residents.” “We will continue to advocate for infrastructure such as transportation and water needs,” Lewis adds, “knowing that there are several important action items to complete in 2022.” “It seems to me the entire Valley is on the cusp of even greater phenomenal growth and development,” Arnett says. “The PHX East Valley is poised to receive its fair share.”
PHX EAST VALLEY MILESTONES Here are some milestones that reflect the progress and development in the PHX East Valley, according to Roc Arnett, founder and former president and CEO of PHX East Valley Partnership. The PHX East Valley Partnership is a conduit, acting as a convener, advocate and promoter of the region.
2004: The Proposition 400 half-cent freeway and mass transit sales tax is extended for 20 years 2006: PHX East Valley Partnership and East Valley leaders initiate the Superstition Vistas development envisioning process
1982: Local leaders establish East Valley Partnership
2008: First miles of the Valley Metro light rail in the East Valley open for ridership
1985: Proposition 300, which enacted a half-cent sales tax for freeway construction, wins approval
2011: Pinal County approves Superstition Vistas conceptual plan
1989: Towns of Queen Creek and Fountain Hills incorporate
2014: New Chicago Cubs “Wrigleyville” Cactus League complex opens. Chandler Regional Hospital opens its first major expansion
1990: Construction of the Loop 202 freeway begins
2016: Waymo begins testing autonomous vehicles in the East Valley
1992: Williams Air Force Base Economic Reuse Advisory Board is established. Chandler/Gilbert Community Colleges are established
2018: Chandler, Gilbert, Mesa, Queen Creek and Tempe continue downtown redevelopment efforts and the PHX East Valley becomes a hotbed for jobs
1994: Williams Gateway Airport opens 1996: ASU Polytechnic Campus opens and ASU Tempe Campus expands 2001: Red Mountain Community College Campus opens
2021: Brookfield and D.R. Horton break ground on residential and commercial projects in the Superstition Vistas area. Banner Health and Dignity Health begin construction on expanded medical facilities. Intel announces historic $20 billion investment in Chandler
2003: Mesa Arts Center opens
2022: PHX East Valley Partnership celebrates its 40th anniversary
1999: Tempe Town Lake opens
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ELECTRIC VALLEY
Electric vehicles are transforming transportation and they are doing it in the PHX East Valley By KYLE BACKER
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n Feb. 10, 2022, the U.S. Departments of Transportation and Energy announced that nearly $5 billion will be made available to states over five years as part of the Infrastructure Investment and Jobs Act. Arizona is expected to receive approximately $76.5 million over that period to help create a national electric vehicle (EV) charging network. U.S. Transportation Secretary Pete Buttigieg says, “A century ago, America ushered in the modern automotive era; now America must lead the electric vehicle revolution. The president’s Bipartisan Infrastructure Law will help us win the EV race by working with states, labor and the private sector to deploy a historic nationwide charging network that will make EV charging accessible for more Americans.” According to the Department of Energy’s Alternative Fuels Data Center, Arizona currently has 873 public charging stations and ranks seventh in the nation for adoption with its 28,770 registered EVs. One of the people helping Arizonans drive electric is Jason Church, COO for Courtesy Automotive Group. “We’ve been EV focused since the Chevy Volt first came out in 2011. We got behind that in a big way and sold a whole ton of those vehicles,” he says. “As our dealership group has grown from Courtesy Chevrolet to Courtesy Kia, Chrysler and Volvo, we’ve discovered that every manufacturer wants
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to be EV-centric now.” Volvo spun off a separate company to lead its foray into EV production called Polestar. As a Volvo dealer, Church had the opportunity to bring a Polestar retail location to Scottsdale Fashion Square, where folks can custom order a Polestar vehicle and have it delivered to their home. Other automotive companies such as General Motors, Volkswagen and Toyota have pledged to exclusively manufacture EVs in the coming years. To that end, General Motors announced in February 2022 that it is hiring several hundred employees for software-based positions at its Arizona Information Technology Innovation Center in Chandler. The center’s work will, as the company states, “tackle solutions and services redefining GM’s products as the company moves toward an all-electric future.” Church adds, “When major manufacturers start using their most powerful brands and associating them with EVs, it’s no longer an experiment,” he says. “Most automakers are committing to EVs and building factories to produce them.” Arizona is poised to benefit greatly from the surge in EV demand and production. Indeed, the Grand Canyon State is already home to multiple EV manufacturers and continues to attract critical links in the supply chain. From Atlis’ electric trucks to Zero Electric Vehicles’ gasoline-to-EV conversion kits, the East Valley has become a regional hub for the automotive industry’s evolution.
TAKING CHARGE: Volvo has spun
off a separate company to lead its foray into electric vehicle production called Polestar.
EVs in the East Valley Detroit casts a long shadow in the world of vehicle manufacturing. Nicknamed Motor City, Detroit was home to the first factory to produce the Ford Model T, which is credited with igniting the U.S. public’s love affair with automobiles and making them available to the masses. Nearly 120 years later, people like Bill Jabjiniak, director of economic development for the City of Mesa, are attempting to recreate a similar dynamic. Jabjiniak explains that the area around the Phoenix-Mesa Gateway Airport is seeing a boom in EV industrial users. “There’s this feeling that this section of Ray Road is becoming a technology hub centered on electric vehicles, which is exactly what we want,” he says. “There’s also a tier-one supply base here, with
engineering firms and suppliers that are coming too.” One of the companies to choose to locate in the area is ElectraMeccanica, which broke ground on May 15, 2021. The $35 million facility will produce the company’s flagship EV, the SOLO — a single-seat, three wheeled car with a 100-mile range. Approximately 200 to 500 people will work at the factory once fully operational. “A cluster is starting to form,” Jabjiniak notes. “Exro Technologies manufactures intelligent electric motor and battery control systems. They are located right next to ElectraMeccanica on Ray Road,” he says. “We also have a homegrown entity called Urbix Resources, which started in our incubator. They manufacture graphite products, which are used in advanced storage cell design to extend the life of a battery.” Karla Moran, principal economic development analyst for SRP, adds, “We’re starting to make a name for ourselves in the EV world and we’re starting to see more companies gravitate to our region. Some of the recent locates focus on battery technology and battery recycling. We’re going to continue to see more of this trend over the next couple of years as more companies view Arizona as a viable option.” This concentration of EV-related businesses produces positive ripple effects that strengthen the overall ecosystem, according to Julie Ibara, plant manager at ElectraMeccanica. “It’s important for us to have suppliers that are committed to the area, whether it be for parts, services or equipment,” Ibara says. “If we’re going to spend millions of dollars on capital equipment to run the plant, it’s nice to know that other OEMs (original equipment manufacturers) in the area are using the same suppliers because that means there’s going to be a service base here. Should we have something that causes downtime on the production line, we should be able to recover a lot faster because we’re calling someone in from the Valley rather than Detroit.” Intentional success While there’s a “birds of a feather flock together” dynamic at play in Arizona’s growing stature as an EV powerhouse, it’s not the only reason that manufacturers have chosen the Valley. Speed to market and the availability of land are tantalizing AB | March - April 2022
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JASON CHURCH
JULIE IBARA
advantages, but Jabjiniak contends they are only part of the equation when a company is looking to locate in Mesa. “The East Valley has very high educational attainment. In Mesa, about 38% of people have an associate degree or higher,” Jabjiniak notes. “If you think about the Phoenix-Mesa MSA (metropolitan statistical area) the labor force has increased by 19.33% over the last 10 years. That gives you 2.5 million workers within a drive time that is realistic. We’ve got the land, buildings, infrastructure and talent for all these companies.” Ibara, who moved to Arizona to open the ElectraMecannica plant, adds that the Valley is an easy sell because the highways are efficient, schools are good, neighborhoods are safe and the weather is pleasant. “I know that the state and local governments, along with the PHX East Valley Partnership, put this transportation plan into effect decades ago, projecting what was going to happen with not just automotive manufacturing, but manufacturing in general,” she says. “I hope their dreams are coming to fruition, because the planning is amazing.” Even with the apparent benefits of locating in Arizona, the EV industry still faces bumps in the road. Ibara notes that having a workforce pipeline is vital for manufacturers. That’s why she wants to connect with high schools, technical colleges and universities to create internships for students. “While we might put some people into assembly and building the car, anybody that 108
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has an affinity for vehicles and electronics — we’d love to have them. And you don’t necessarily need a college degree to get a job building cars,” she says. Not only does a healthy EV ecosystem require workers to manufacture vehicles, but it needs technicians to service them. Church notes that all Courtesy Automotive Group’s technicians will be electrically certified, which he believes will put the company ahead of the curve. “There’s an evolution in training where we need to service and repair internal combustion engines, but our team must also be well versed in managing the latest updates on batteries. And given the technology, manufacturers can do software updates over the air without taking the car in for service. People aren’t coming in for oil changes either, so the maintenance schedule is further out. “The equipment you need at the shop was completely different as well,” Church continues. “When you pull a battery out of a car, there are these hydraulic lifts that go under it and bring the battery down. There’s quite a bit of training necessary to make sure the technicians are grounding the battery and being safe.” Taking charge One of the largest roadblocks for EV adoption is range anxiety, or a fear of not having enough charge to complete daily tasks like commuting or running errands. In a sprawling metropolitan area such as Greater Phoenix, this uneasiness is especially acute. The $76.5 million coming to Arizona from the Infrastructure
CATHERINE O’BRIEN
Investment and Jobs Act will be a boon but not a panacea. “That’s why we’re working with so many different partners in getting charging infrastructure in place,” explains Catherine O’Brien, EV lead at SRP. “What can we do as SRP to work with the cities and help them create EV ready building codes for homes and commercial space? How can we offset some of the costs of retrofitting a building with charging stations?” Answering those questions is part of SRP’s goal to support 500,000 EVs in its service territory by 2035. For its part, the City of Mesa is currently developing an EV charging master plan that will address current and future needs, while taking stock of the existing charging infrastructure. “That way we can prioritize infrastructure deployment in a rational and cost-effective way going forward. Then you start to think about our fleet of vehicles for the city and how those are changing. We’re getting our first electric firetruck, and that’s huge,” Jabjiniak says. “When you start to invest in that technology, you have to have the support to go with it. Charging stations are just part of that.” Church concludes that the future of transportation will be electric. “It’s not a fringe thing anymore. Wall Street has gotten behind EVs. And some of that manufacturing is happening in Arizona because we’ve got the space, people and the economy. Just look at all the brands that are flocking to Arizona. There’s a huge opportunity for us to be the Electric Valley, and I think we’re well placed to achieve that objective.”
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FLYING HIGH With seven added nonstop routes and new arrivals like Gulfstream and Amazon setting up shop near the airport, Phoenix-Mesa Gateway Airport has become a major economic driver for PHX East Valley By ERIN THORBURN
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hoenix-Mesa Gateway Airport is flying high. In fact, November 2021 marked the busiest November on record for the travel hub, with 147,285 passengers making their way to various destinations. And, speaking of destinations, the steadily growing Gateway Airport offers nonstop service to upwards of 60 cities, including seven added routes courtesy of Allegiant Air (as of November 2021). And, while Arizona’s passengers reap the benefits of the airport’s convenient and expanded offerings, the local economy flourishes as well, with $1.8 billion in annual earnings. But, it’s not just the airport itself that is soaring to new heights; the surrounding region is rising in industrial development, retail options, office space and more.
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History in the making Before it was the bustling region it is now, Phoenix-Mesa Gateway Airport was formerly Williams Air Force Base (AFB). In its 52 years in operation, the base played a pivotal role as the U.S. Army Air Corps’ top pilot training facility. It graduated more student pilots and instructors than any other base, with upwards of 26,500 service members earning their wings there. Now, decades later, the airport and region continue to make history as one of the PHX East Valley’s most prized economic development generators. “It’s exciting to see just how much the area is going to continue to grow,” says Aric Bopp, executive director of economic development and innovation zones for Arizona State University (ASU). “As much activity has taken place in the PhoenixMesa Gateway region, I think we’re just scratching the surface.” Bopp goes on to explain that in terms of development, the entire region isn’t even halfway there, “whether it’s at SkyBridge Arizona, the Northeast side of the airport, south of the airport along the Pecos Road corridor, or the campus that ASU controls as our poly innovation zone,” he says. “All of these projects are just incredibly exciting and still in early stages of development.” Growth and development have always been a staple of Gateway Airport and the surrounding region. This includes an original Airport Master Plan and Updated Master Plan that were created to accommodate the needs of airport facilities and infrastructure, both in the coming years and decades. The facilitation and success of the Master Plan Update has been guided by Gateway Airport leadership and staff in partnership with financial assistance from the Federal Aviation Administration (FAA), Arizona Department of Transportation (ADOT) and Phoenix-Mesa Gateway Airport Authority (PMGAA). It’s partnerships and collaboration that continue to be the wind beneath the economic wings of progress for the Gateway Airport corridor. “Everybody sees the benefit and value of coming together and working together,” Bopp says. “You have a wonderful development group consisting of developers and land owners that understand the big AB | March - April 2022
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ARIC BOPP picture that are making a good return on investment, but are not being overly greedy in the process, seeing the impact it’s having on the community and the region.” Bopp also credits education partners in the region such as the East Valley Institute of Technology (EVIT), ChandlerGilbert Community College (CGCC), ASU, and University of North Dakota (UND), as examples. Additionally, he points to district council member Kevin Thompson, “who is the biggest advocate and proponent of development, smart development and smart growth in the region,” according to Bopp. “Utility providers such as SRP, Union Pacific, the water team at Mesa, and the regional wastewater treatment facility that serves both Gilbert and Mesa,” have also been instrumental to the area’s growth and success, according to Bopp. Economic development generator According to the Phoenix-Mesa Gateway Airport Economic Benefit Study Executive Summary, revenues for the Gateway Airport are projected to reach up to $3 billion by 2027, with more than 26,500 in jobs generated. As for the future outlook of the Gateway Airport, Ryan Smith, director of communications and government relations for Phoenix-Mesa Gateway Airport Authority, says, “When it comes to transportation hubs, growth begets more growth. When you have pockets of economic activity, it tends to build upon itself. You see a rise in growth being next to an airport with two converging highway systems, along with a significant rise in population.” And the local population is taking full advantage of the convenience and 112
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provisions Gateway Airport and the extended region offer. “People have figured out that they can conveniently fly out of an airport that’s close, convenient, and with low-cost carriers that offer fares that are affordable,” Smith says. But affordability and convenience are not all that locals recognize about the Gateway Airport’s significance to the Greater East Valley — and state. Its value as an economic driver is becoming increasingly more evident. “I think it’s important for the general public to understand the value of strategic investments in our community,” Smith says. “There was a time in Mesa when Ray Road really didn’t exist and did not connect our roads all the way over to Ellsworth. The City of Mesa invested in that corridor, invested in some water and sewer infrastructure and built a new water treatment facility. They’ve made strategic investments in Southeast Mesa, and now we’re enjoying the benefits of some of those investments.” And, going back to the notion that “growth begets more growth,” businesses from near and far are relocating to the Gateway Airport corridor to invest in current and future opportunities. Gulfstream, for example, announced in November 2021 that it would build its first facility in Arizona, taking residence in a 225,000 square-foot facility in Gateway. “I think the announcement about Gulfstream relocating and opening up a service center here at Gateway Airport will be a huge catalyst for additional growth,” Smith says. “I think you’ll see suppliers and other supply chain businesses see the value of being located here.” Alongside Gulfstream, Amazon, already with an existing and prominent presence in the PHX East Valley, is anticipated to take
KEVIN THOMPSON up residence near the Gateway Airport, adding several warehouse projects. “We just recently announced Gateway East,” Smith says, “which will be nonaeronautical development on the east side of the airport. That will kick off hundreds of thousands of square feet of retail, office and industrial development. Again, creating jobs, creating economic opportunity, creating an economic benefit for the entire East Valley.” Real estate development and investment firm CRG is developing The Cubes at Mesa Gateway, which when complete will comprise approximately 4 million square feet of speculative and build-to-suit space. The Cubes sits on a 268-acre piece of land that had been on the market for some time. “As investments in the Southeast Valley continue to grow, people have larger appetites,” says Steve Larsen, managing director at JLL. “Almost 300 acres is a very big pill to swallow. But you’ve got groups that are buying into what is going on in the Southeast Valley, and CRG capitalized on that. We already have multiple users looking for upwards of 500,000 square feet with offers being traded. We have tremendous activity from Fortune 100 companies that are currently evaluating The Cubes. We think this is going to be the premier site for large box industrial in the region.” Near The Cubes development, Ryan Companies is building Confluence at Mesa Gateway. Positioned on 35 acres, the development will feature six speculative industrial buildings ranging from 32,000 square feet to 176,000 square feet. As for future announcements of new arrivals, we can anticipate hearing more as we soar through 2022 and beyond.
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IN-DEMAND DESTINATION
East Valley tourism organizations, city leaders, and local businesses unite and collaborate in dynamic ways to help tourism sector recover and reignite By ERIN THORBURN
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n an article published by Money Inc., featuring “The 20 Greatest Business Comebacks Stories of All Time,” Apple, Marvel and General Motors were among notable companies on the list. Together, these businesses (and others) faced extreme financial hardship — some even falling into bankruptcy. Yet, despite their adversity, they made their way back, ending up stronger and more prosperous than before. As we speak, one of Arizona’s most valuable industries is making a comeback. With the collaborative and unifying efforts of PHX East Valley tourism groups and efforts like the Visit Arizona Initiative, Arizona’s tourism industry may also end up better, bigger and broader than it was before. Everyone loves a good comeback story They don’t refer to Metro Phoenix as the “Valley of the Sun (and fun)” for no reason. For a long time, Arizona has remained a top tourism destination because of all the sun and fun to be had. And there are numbers to prove it. Preceding the pandemic, in 2019, Arizona’s tourism sector experienced a record year. Overnight visitation totaled 46.8 million (up 2.8 % from 2018) and tax revenue earnings tapped out at $3.78 billion (up 4.2% from the prior year). And then ... COVID-19 reared its ugly head. By 2020, visitation to the state plummeted 31% and visitor spending decreased by 41%. For an industry that up until the pandemic had largely flourished, the economic blow was painful and widespread. “We had a tough row during 9/11 and some hemorrhaging in the economy again during the Great Recession, but nothing like this,” says Marc J. Garcia, president and CEO of Visit Mesa, “where an entire industry was forced to shut down.”
As destabilizing as the pandemic was to Arizona tourism, Garcia and his East Valley colleagues didn’t let the bleak pandemic outlook staunch their creative thinking and approach. “What I’m really proud about with our organization, in particular, is how quickly we responded to the needs of our partners,” Garcia says. One notable campaign in Mesa was the “We’ve Turned Main Street Into a Mile Long Drive-Thru.” “Every lunch hour and evening it was like a traffic jam down Main Street with people supporting local businesses,” Garcia says. Mesa’s tourism neighbors in Tempe adopted a similar strategy, getting boots on the ground. The City of Tempe Economic Development Office initiated a weekly strategy call that included the Tempe Chamber of Commerce, Downtown Tempe Authority and the Tempe Tourism Office. “This group — called ‘TEAM Tempe’ — met weekly to find ways to support local businesses, develop programs to create business opportunities, encourage local residents to spend locally and created a virtual job fair to help businesses find employees,” says Michael Martin, interim president and CEO for Tempe Tourism. In addition to combining creative strategies and working collaboratively, many East Valley communities turned to Arizona’s natural resources to promote tourism during the pandemic — and continue to do so. “Fountain Hills leveraged outdoor community assets and attractions such as recreational parks, hiking trails, and golf courses to continue attracting visitors in a safe manner,” says Eric Prochnow, economic development and tourism specialist for the Town of Fountain Hills. AB | March - April 2022
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MARC J. GARCIA
Coming back, starting closer to home Amidst their proactive road to tourism recovery, Garcia and Martin — and many of their local tourism counterparts — realized their marketing strategy would have to take a necessary and urgent detour. “Instead of marketing outside of Arizona, focusing on ‘heads in beds,’ this pandemic showed us we needed to get closer to our local partners, business and residents,” Garcia explains. “We had to pivot our marketing efforts from our traditional target markets to local and regional drive markets,” Martin says. “While we have included these markets before, they became the primary focus.” Despite variants of COVID making for an uncertain future, East Valley meeting and event planners and industry leaders remain hopeful. And they have a reason to be optimistic. According to research conducted by Destination Analysts in mid-January, an estimated 80% of American travelers have trips currently planned in 2022, with upwards of 70% planning to travel. “Over time, the recovery has exceeded expectations. We are already experiencing strong indications that recovery is taking place,” Martin says. “In Tempe, that means an increase in the total number of rooms sold compared with the peak year of 2019. We are also seeing a strong recovery of our average daily rate.”
KIMBERLY JANES
MICHAEL MARTIN
relaunch or expand festivals, arts, culture, and community events across the state. Recipients of the initiative funding range from Visit Mesa and the Town of Fountain Hills to the Arizona Jewish Historical Society, Ballet Arizona and other tourismrelated entities. “The Visit Arizona Initiative will prove to be a Godsend and go a long way to help our industry recover,” Garcia says. “Funding from the Visit Arizona Initiative Partnership has been vital in reigniting Arizona’s tourism efforts throughout the state,” Prochnow adds. “These types of programs directly help Arizona’s tourism sector by bringing back events, attractions, and activities that people have missed throughout the pandemic.” Examples of events and attractions aided by the Visit Arizona Initiative include the partnership of the Desert Botanical Garden and Frank Lloyd Wright Foundation’s Taliesin West, enabling the Chihuly in the Desert exhibit to be featured at both locations. For tourism advocates, like Visit Chandler, the initiative helps “amplify tourism marketing efforts,” according to Kimberly Janes, tourism program manager for Visit Chandler. “This type of targeted investment has not only helped to revitalize the industry,” she says, “but it has also highlighted how important tourism is to Visit Arizona Initiative: AKA the comeback kid growing Arizona’s economy.” The collaborative efforts of Arizona’s tourism organizations continue to aid in the She’ll be coming ‘round the mountain (literally) industry’s recuperation. And their efforts As the Visit Arizona Initiative funds toward restoration have been further bolstered by the Visit Arizona Initiative. In go to work, and tourism organizations continue to apply creative and robust October 2021, Gov. Doug Ducey and the recovery measures, the tourism sector Arizona Office tourism announced that 43 is coming around the corner. And, in businesses and organizations statewide addition to Arizona’s sun, fun and Sonoran would receive upwards of $9.4 million in mountain desert-scape, there is still plenty Visit Arizona Initiative Partnership grant of Valley beyond the mountains, open for funding. The relief funds are intended to 116
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ERIC PROCHNOW
development. Parts of the East Valley are booming in new development, with tourism opportunities abounding. Newer arrivals in Mesa include Bell Bank Park, the 320-acre sports and entertainment mecca; as well as Cannon Beach, the state’s first surf park. But, it’s not just new development that’s enticing people to travel to destinations in the East Valley. It’s also forward-thinking programs such as Mesa’s designation as the first-ever autism-certified city in the United States, as well as Visit Mesa’s Hidden Disabilities Sunflower Program, that provides and invites a more inclusive tourism perspective and experience. And, where new development can’t occur on a larger logistic scale, as is the case for Tempe, they are turning to a different strategy. “As a landlocked city, Tempe is adapting to becoming a more vertical community,” Martin says. “This means smart redevelopment and thoughtful ways of thinking of land use. Currently, the Omni Tempe at ASU and the VIB Tempe hotels are under construction. ASU’s Novus corridor will be adding a new arena for ASU Hockey. And the innovative, car-free development called Culdesac Tempe is now under construction and will bring new amenities to Apache Boulevard.” Arizona’s tourism comeback may take a while, but rest assured, if the East Valley has anything to say about it — they’re proactive and prepared to take whatever steps are necessary to continue to build on the industry’s momentum. “Overall, I think the outlook is quite positive,” Janes says. “From everything I have been reading and monitoring, I anticipate that we will continue to see strong travel demand as people look to connect with family, friends and loved ones with short getaways to escape the day today.”
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PHX EAST VALLEY PARTNERSHIP
EAST VALLEY LEADERS LOOK AHEAD TO THE NEXT 40 YEARS By ERIN THORBURN
W
hat better time to envision the next 40 years for the East Valley than now? As the PHX East Valley Partnership celebrates four decades of rich, dynamic history, we turn to some of the region’s movers and shakers for their predictions of what’s ahead (as well as some of their personal favorite East Valley places, spaces and activities). Queen Creek Mayor Gail Barney LOOKING AHEAD: “In 40 years, Queen Creek will more than double in age! Incorporated in 1989, we will continue to see the thoughtful planning come to life through more roads, public safety infrastructure and parks and recreation amenities. Our northeastern tier will also be booming with the completion of State Route 24 bringing more jobs, dining and shopping — an extension of the hometown we all know and love.” EAST VALLEY FAVORITE: “My favorite East Valley activity is visiting our agritainment destinations. They offer unique experiences that embrace our agricultural heritage — something quite near to my heart as a farmer myself.” Fountain Hills Mayor Ginny Dickey LOOKING AHEAD: “Our extraordinary hometown qualities will endure: unmatched views;
generous volunteers; fun activities; thriving businesses; healthy lifestyles and safe neighborhoods. Additionally, development of State Trust Land will offer residential options, parks and more. Plus, visitors will flock to the Dark Sky Discovery Center as our iconic Fountain reliably marks the top of each hour.” EAST VALLEY FAVORITE: “One of my favorite activities is walking. Whether in the McDowell Mountain Preserve, along the Overlook with panoramic views of Fountain Lake and Four Peaks, or on one of our urban trails, it is ever-changing and always enchanting.” Maricopa County Supervisor Jack Sellers LOOKING AHEAD: “Technology changes so
rapidly that it’s hard to imagine life in 2062. Things that were fantasies in 1982, like making calls from my ‘Dick Tracy” watch, are now commonplace! We need to take advantage of technology. And we need to make a smart plan to deal with inevitable growth, so people are more productive, safe and secure.”
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GINNY DICKEY
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Tempe Mayor Corey Woods LOOKING AHEAD: “Tempe’s affordable housing objectives are realized. Our City reaches and exceeds our Achieve65 education goal. Tempe expands our world-class transportation infrastructure. Our city’s environmental climate remains healthy, and we continue to be an innovative place for small, medium and large companies.” EAST VALLEY FAVORITE: “House of Tricks in Tempe.”
JOHN GILES
JACK SELLERS
Apache Junction Mayor Chip Wilson LOOKING AHEAD: “Apache Junction recently celebrated its 40th, so we’re in great company with the PHX EVP. We’ve grown from a small rural community into a burgeoning destination. In the next 40 years, we will welcome our first masterplanned community, add key regional transportation corridors and bring highquality employment opportunities to the home of the Superstition Mountains.” EAST VALLEY FAVORITE: “There are few things that bring more joy than saddling up, riding our horses from our backyard into miles of incredible desert trails, and enjoying the beauty and majesty of the Superstitions. After appreciating the quietness, wildlife and clear skies, our must-stop eatery is Mickey D’s Cafe, a hometown favorite.” Mesa Mayor John Giles LOOKING AHEAD: “Right now, we’re laying the
groundwork for the Mesa we will become in 40 years. By then, fiber will be installed to every home and business, we’ll be a carbon neutral city and we’ll continue to attract Fortune 500 companies with an educated workforce. All while being a safe and compassionate community.” EAST VALLEY FAVORITE: “Koreatown in Mesa’s Asian District has always been a favorite of the Giles family. Mesa’s Asian District is also home to dozens of Asian eateries, cafes, mega-grocery stores, retailers and more.”
CHIP WILSON
COREY WOODS
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